Kiyosaki Quadrants

Kiyosaki Quadrants better known as Cashflow quadrants depict where and how an individual earns their income. Why should you know them? Because it's not just about income but mindset also and that’s the key difference.

The four mindsets or quadrants are E, S, B and I. E is for employees, S is for self employed or small business, B is for big business and I is for investors.

E prioritizes job security, S seeks total control and despises delegation, B builds systems and delegates with technology, people and capital, I is where money makes more money. 

Think of an employee working at any store representing the E, a small shopkeeper doing everything himself as an S, a chain like Mcdonald’s as a B and major shareholders in companies or real estate as an I.

The major distinction between a S and a B is that in a S, the owner needs to be physically and mentally present in order for business to survive and run whereas B runs on systems either created, deployed or purchased by the owner. Systems do the heavy lifting, not the owner and because of this B’s are way more scalable and sustainable.

E and S pay higher taxes both financially and in life and are characterized by lack of time and money freedom. B and I have tax advantages both with their money and their time. The sooner you shift your mind to enter the B and I quadrant, the more scalable your businesses and investments will be, the more time you will spend on activities that actually matter.

So, are you willing to take on the challenge of education and time necessary to enter the B or the I quadrant?