There are, of course, perks and benefits of being an employee. This is not necessarily your fault since, for centuries now, our society and educational system have trained us to become “workers”. ![]() they shy away from risk and subsequently see no need to become educated in finance.ĭo you currently consider yourself an Employee? Majority of people around the world are, without a doubt, employees.they seek out work that will provide them with a stable source of regular income and.Typical characteristics of “Employees” are: They usually go to the office everyday, work at least 40 hours in a week, and depend on monthly salary as their primary source of income. The E (“Employee”) quadrant is a classification for people who make money by “working for other people”. What does the E (Employee) quadrant in Robert Kiyosaki’s Cashflow Quadrant represent? ![]() Here’s a more detailed explanation of each quadrant. ![]() A person who follows these two quadrants can passively make money, that is, even if they don’t spend a lot of time working on the quadrants - sometimes, even if they do not work at all - they can still make a lot of money. In contrast, the right-hand side quadrants, “B (Business Owner)” and “I (Investor)”, are called the Passive quadrants, wherein income is not directly proportional to the time and effort spent. Therefore, to earn money, people in these quadrants must actively work, which is why these two quadrants require a lot of time and effort before one can become rich. The left-hand side quadrants, “E (Employee)” and “S (Self-Employed)”, are the Active quadrants because people have to spend time and effort in order to earn. Where are you currently in the Cashflow Quadrant? These are the quadrants adopted and followed by the rich - which is why they become richer and richer - and something the poor does not understand or does not follow - which is why they continue to be poor. The “Rich Dad’s Cashflow Quadrant” simply talks about four ways to make money.
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