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Quadrants of The Money Flow

The document discusses the cash flow quadrants according to Robert Kiyosaki, which divide the ways of generating income into four quadrants. The left side includes employees and self-employed individuals who work to receive a salary, while the right side includes business owners and investors who put money to work for them. Most people are in the first quadrant working for others, but the goal should be to move to the quadrants on the right side.
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0% found this document useful (0 votes)
23 views4 pages

Quadrants of The Money Flow

The document discusses the cash flow quadrants according to Robert Kiyosaki, which divide the ways of generating income into four quadrants. The left side includes employees and self-employed individuals who work to receive a salary, while the right side includes business owners and investors who put money to work for them. Most people are in the first quadrant working for others, but the goal should be to move to the quadrants on the right side.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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QUADRANTS OF MONEY FLOW (Robert Kiyosaki)

SUMMARY

It is a thought that divides 4 ways of generating income, splitting into two.

sides: Left side and right side. On the left side is the production of

linear incomes are found among employees and self-employed individuals, and on the right side the

business owners and investors. The same person can occupy, according to

to the way in which it generates its income, more than one quadrant; but from where it obtains the

the majority of its income defines its future. The people on the left side will NOT ACHIEVE their

economic independence, while the people on the right will. The people

The people on the left side will always work to have money, and the people on the right side

will put your money to work.

First Quadrant

Most people are in the first quadrant, that is, they work for

earning money (a basic salary). On this occasion based on what I have read, I have made a

preamble on why we should not be in that quadrant:

Some reasons for not getting a job

Reason 1 - You have no freedom

It takes a lot of effort to turn a human into an employee. The first thing that

What you have to do is end the independent will of the human being.

Reason 2 - Limited experience

You may think it's important to get a job to gain experience. But

that's like saying you would need to play golf to gain experience playing golf.
Second quadrant

In this quadrant, people decide not to work for anyone else and become entrepreneurs.

believing that it sets up a business, when in reality it is self-employment. It no longer works.

for other people, but they continue to work for money and will not achieve independence

economic. They are the seller, accountant, collector, designer, etc. They are the business, and

if they do not work, the business does not generate income.

Self-employment is the activity of a person who works for themselves.

directly in economic units (a trade, a profession or a business) of their

property, which manages, directs and obtains income from them. It is a

alternative to the labor market when someone needing employment is unable to or not.

he wants to find an employer. In this case, he becomes an entrepreneur.

Third quadrant

People in the Self-Employment quadrant should aim to be

Business owners, that is, they must ensure that the business runs whether they are there or not.

they present. They must learn to trust other people, document their

experience and create manuals, invest in technology that saves time and money, etc.

In summary: Create a money-making machine. Create your own system. When

I managed to do this; it will have the "blueprints" that will allow you to build other identical machines.

and replicate their business, just like KFC, McDonald's, etc. In these

For example, the owners of the chains have more people in the first quadrant.

generating income for them.

Specifically to the individual who has possession of a certain thing, good,

Object or person is popularly known as the owner of the business.


Fourth quadrant

And the last quadrant is that of investors. Where people can be found

whatthey invest their moneyin the systems created by business owners. People

who believe in other systems to create money, and contribute money to

buildmore machines like these.

In the business context, investment is the act by which certain

goods with the intention of obtaining income or rents over time. The

Investment refers to the use of capital in some type of activity or business, with the

objective of increasing it. In other words, it consists of renouncing a consumption

actual and certain, in exchange for obtaining future benefits that are distributed in the

weather.

Which quadrant am I in?

So far I am located in the second quadrant, because I decided to undertake and still

I am in the stage of self-employment but with an eye towards the third quadrant.

In which quadrant do I feel comfortable and would I like to stay?

Well, it's clear that my aspirations are for self-improvement; I would like to be in any position.

from the last two quadrants to put the money to work for me and achieve

financial freedom.

Activities we need to do to reach the quadrant.

I must have financial knowledge, have strategies, and good projects in order to be able to

to keep me where I want to go, for the path there is not easy therefore

At the moment of arrival, I must not neglect myself to maintain and thrive.

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