Most people have no idea about cash flow quadrants. Are you one of them? If so, no problem. Today we will look at the same ones that have divided the entire population of our world into different classifications. These cash flow quadrants are:
E quadrant: You have a job and you work as an employee in a company / organization
S Quadrant: You are self-employed and own a job
B Quadrant: You are a business owner and you have a team to work for you
Quadrant I: You invest money in different businesses and the money works for you
This gives you a very clear idea of what classification you are in and the financial situation you currently have. Mostly these four quadrants have four different attitudes and values. Many people will be surprised to learn this. Let’s look at it in detail:
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E means “employee”. More than 65% of the world’s population falls under the E quadrant. These people work for others. You have heard the elders advise you: study from the heart, have good grades and grades and you will get a beautiful job. Earning a high-profile degree such as an MBA, engineering, etc. is considered necessary to obtain a high-paying job.
Now no matter how big a scale of work you have, but that would be just a job. Whether you have the seat of an executive director or a clerk, you will be appointed in accordance with certain rules and regulations. Both executives and employees receive a salary at the end of the month and privileges along with it. However, there is a hell of a difference between the level of a high-ranking officer and a clerk, but one thing is exactly the same: if you stop going to the office for some reason, you will no longer receive a salary.
Also, a fixed salary is sufficient only to cover monthly expenses, savings as mutual funds and / or purchase of shares on the stock market. This cash flow quadrant provides you with security and a stable salary every month to keep you satisfied. But have you ever thought that this security is only a temporary thing? The money comes only if you continue to go to the office regularly. If you are fired or retired, no more salaries will arrive. In addition, you cannot continue to work in old age. You need to do something about retirement before it comes. Therefore, job security is only for the time before retirement.
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S means self-employed or small business. People who work for themselves and own this job fall into this category. For example, you run a store / store or website on a small level or on your own. This quadrant brings more satisfaction and freedom because you don’t have to work for someone else. You’re your own boss. However, it is also like the E quadrant. You or your staff need to work to keep the money coming. Therefore, people in this quadrant are also forced to work constantly.
B means business. This category includes owners of medium or large businesses. Moving and staying in this quadrant requires a lot of effort, patience, time, experience and experience and above all leadership qualities. If you want to move into this quadrant, you must have all these qualities. Here, you are the boss and you are in the driver’s seat. Your team and workers work for you, rather you go to work or visit the office every day. All you have to do is monitor business operations and make decisions. If you are a great leader and entrepreneur, you can raise your business and team to the highest level of success and achievement.
This quadrant gives you the freedom of time and money. The best advice for moving into this quadrant is that you should start a small business and expand it gradually. You can continue to work to earn a steady monthly income while also spending a few hours a day on your business.
Quadrant I: The superior quadrant of cash flow
I for the investor is the advanced level of ownership and business management. When you have a lot of money, you don’t have to do anything. Rather, money will do everything for you. This quadrant gives you the highest level of freedom – freedom of time and money.
After completing 10 to 12 fruitful years in business, you can become a successful investor. However, extensive experience and knowledge of market ups and downs is required. Planning and joining successful business groups make it easier for you to move into this quadrant.
The E and S quadrants are called poor or mediocre quadrants per person. These people cannot enjoy life because they have to work to make money. These two are called active income quadrants. No work; no money, it’s that simple.
While in quadrants B and I, as long as you run the business and invest wisely, you don’t have to worry at all. This “passive income” keeps coming. If you want to be rich and build wealth, you can only do so in quadrants B and I. But first you will need to change your thinking patterns and have the attitude of a business person and an investor.
You can gradually and continuously move from the first and second quadrants to the third and even forward. This is entirely possible. So don’t wait and start planning now. When you decide to change your destiny, nothing can stop you from achieving your goal.