![\"Ian](\"https:\/\/i0.wp.com\/images.prismic.io\/wealthfit-staging\/570ba0728966156bda2c75b7aba733d1d8ed2586_ian_chandler_contributor.jpg?resize=40%2C40&ssl=1\")
by Ian Chandler<\/strong>WealthFit ContributorLast updated Dec 22nd, 2020<\/p>\n\n\n\nIn This Article<\/h2>\n\n\n\n- What Is The Cashflow Quadrant?<\/a><\/li>
- Benefits of Using the Cashflow Quadrant<\/a><\/li>
- How Do You Change Quadrants?<\/a><\/li>
- If You\u2019re An Employee\u2026<\/a><\/li>
- If You\u2019re Self-Employed\u2026<\/a><\/li>
- Cashflow Quadrant: Becoming An Investor<\/a><\/li>
- Employee, Investor…Where Do You Want To Be?<\/a><\/li>
- Continued Learning: Cashflow Quadrant & Investing<\/a><\/li><\/ol>\n\n\n\n
When\u2019s the last time you took a moment to zoom out and think about the trajectory of your professional life? It\u2019s easy to allow your career to go on autopilot and even easier to lose sight of your goals. The best way to evaluate is by using what’s called the cashflow quadrant.<\/p>\n\n\n\n
This is why it\u2019s helpful to have the resources to evaluate your development and track the progress of your vocation. <\/p>\n\n\n\n
The cashflow quadrant, developed by Robert Kiyosaki, is one particularly useful resource you can use to analyze your professional life.<\/p>\n\n\n\n
You\u2019ve probably heard of Robert Kiyosaki<\/a> before: he is one of the most influential business authors today and is best known for his Rich Dad book series, including his 1997 bestseller Rich Dad Poor Dad<\/em>. <\/p>\n\n\n\nIt\u2019s the second book in that series, Rich Dad\u2019s CASHFLOW Quadrant<\/a>, that we\u2019ll be using as a reference today, exploring Kiyosaki\u2019s \u201ctitular cashflow quadrant\u201d.<\/p>\n\n\n\nIt\u2019s a surprisingly simple concept that has an enormous amount of utility for your career. <\/p>\n\n\n\n
If you\u2019re ready to learn about the cashflow quadrant and how it can help you make pivotal professional changes, let\u2019s get started. <\/p>\n\n\n\n
What Is The Cashflow Quadrant?<\/h2>\n\n\n\n
First, let\u2019s take a look at the quadrant itself:<\/p>\n\n\n\n![\"Cashflow](\"https:\/\/i0.wp.com\/images.prismic.io\/wealthfit-staging\/ce79780c49fdee52b43faa94917e6216e0a43169_01_employee-to-investor.jpg?w=640&ssl=1\")
<\/figure>\n\n\n\nThere are two important things you need to understand about the cashflow quadrant.<\/p>\n\n\n\n
First, the letters each represent a type of worker:<\/p>\n\n\n\n
- E <\/strong>stands for employee.<\/strong><\/li>
- S <\/strong>stands for self-employed.<\/strong><\/li>
- B <\/strong>stands for business owner.<\/strong><\/li>
- I <\/strong>stands for investor.<\/strong><\/li><\/ul>\n\n\n\n
We\u2019ll talk more about these four categories in more depth later on.<\/p>\n\n\n\n
Second, the cashflow quadrant is split vertically into two halves. In other words, E and S are paired together, and so are B and I. <\/p>\n\n\n\n
This will become important later on when we take a look at the four categories.<\/p>\n\n\n\n
Benefits of Using the Cashflow Quadrant<\/h2>\n\n\n\n
First, the cashflow quadrant will help you understand<\/em> and change<\/em> the specific quadrant you\u2019re in. <\/p>\n\n\n\nAs Kiyosaki mentions in his book, the quadrant will specifically benefit employees and self-employed individuals who want to become business owners or investors. <\/p>\n\n\n\n
Kiyosaki calls this the path to financial freedom, which you gain when you stop working for money and start having money work for you.<\/strong><\/p>\n\n\n\nSecond, the quadrant is also great for anyone who wants to evaluate (or reevaluate) their career. <\/p>\n\n\n\n
That\u2019s because it forces<\/em> you to take a step back and look at your entire<\/em> professional life. <\/p>\n\n\n\nNo matter what your goals are, the cashflow quadrant will help you put them into perspective and think about the big picture<\/em>.<\/p>\n\n\n\nFinally, it\u2019s beneficial to simply use the quadrant as an exercise. It makes you think about how you earn your money and what your work life is like. <\/p>\n\n\n\n
By extension, it makes you think about how satisfied you are with your current quadrant.<\/p>\n\n\n\n
Let\u2019s take a closer look at each quadrant.<\/p>\n\n\n\n
E \u2013 Employee<\/h3>\n\n\n\n
The E quadrant is where most workers reside \u2014 an employee who works for a business or organization that provides them with a paycheck and benefits. In return, employees provide their skills to their employer and trade their time for money.<\/p>\n\n\n\n
Employees prioritize long-term job security, which is decided by their employer. Employees with a high degree of job security have problems to face. If employees don\u2019t work, they don\u2019t get paid. And along with self employed individuals, employees pay the most<\/em> in taxes.<\/p>\n\n\n\nS \u2013 Self-Employed<\/h3>\n\n\n\n
A self-employed person is their own boss. While an employee works under a management structure, the self-employed person owns their job because they work for themselves.<\/p>\n\n\n\n
Although being self-employed seems like a huge improvement over being an employee, the two quadrants actually have many<\/em> similarities. <\/p>\n\n\n\nThey both pay high taxes and trade their time for money. Just like an employee, when self-employed people stop working, they stop earning an income.<\/p>\n\n\n\n
B \u2013 Business Owner<\/h3>\n\n\n\n
Business owners don\u2019t just own their job; they own a system. Business owners are leaders who outsource work to experts and prefer to delegate<\/a> work instead of taking it on themselves.<\/p>\n\n\n\nAs a result, the business owner doesn\u2019t have to work nearly as hard as employees or self-employed people. <\/p>\n\n\n\n
As Kiyosaki notes<\/a>, business owners \u201ccan leave their business for a year or more and return to find their business more profitable and running better than when they left it.\u201d<\/p>\n\n\n\nLike investors, business owners pay much less in taxes<\/a> than the employed\/self-employed and have much more freedom. <\/p>\n\n\n\nBusiness owners can take vacations<\/a> and still <\/em>make money, and they don\u2019t<\/em> have to actively work to earn an income.<\/strong><\/p>\n\n\n\nI \u2013 Investor<\/h3>\n\n\n\n
Whereas the self-employed own their jobs and business owners own systems, investors own assets that make money for them.<\/p>\n\n\n\n
The investor is the person who has earned money in one or more of the other quadrants and has put that money to work<\/em> for them. Investors often purchase assets like company shares and real estate.<\/p>\n\n\n\nAccording to Kiyosaki, the B and I quadrants are where true financial freedom is. <\/strong><\/p>\n\n\n\nAlthough financial freedom can be found in all four quadrants, Kiyosaki recommends the B and I quadrants for their unique benefits. <\/p>\n\n\n\n
People in these quadrants pay far less in taxes<\/a> and don\u2019t have to work to make money.<\/strong><\/p>\n\n\n\nNow that you\u2019re familiarized with the quadrant, there are a few questions you need to ask yourself:<\/p>\n\n\n\n
- Which quadrant(s) am I in right now? (Remember: it\u2019s possible to be in more than one quadrant \u2013\u2013 for example, dentists can own practices and still work for themselves.)<\/li>
- Now that you know which quadrant you\u2019re in, which quadrant do you want<\/em> to be in?<\/li>
- What do I need to do to move to the quadrant I want to be in?<\/li><\/ul>\n\n\n\n
These questions might reveal more to you about your career than you think. <\/p>\n\n\n\n
If it\u2019s been a while since you last thought about how you earn your money \u2013\u2013 and whether you\u2019re satisfied with it \u2013\u2013 then this exercise will be a real eye-opener.<\/p>\n\n\n\n
How Do You Change Quadrants?<\/h2>\n\n\n\n![\"Feet](\"https:\/\/i0.wp.com\/images.prismic.io\/wealthfit-staging\/b59486778b0bfa480f2385c589993c87fd246cc0_02_employee-to-investor.jpg?w=640&ssl=1\")
<\/figure>\n\n\n\nChanging quadrants is one of the most common questions about the cashflow quadrant, and it\u2019s easy to see why. <\/p>\n\n\n\n
Maybe you\u2019re a self-employed freelancer who\u2019s suffering from burnout<\/a>, or maybe you\u2019re a business owner who wants to expand and seek other income sources. <\/p>\n\n\n\nHow do you go from one quadrant to another?<\/p>\n\n\n\n
There are many ways to move quadrants, but Kiyosaki recommends that most who aren\u2019t business owners jump to the B quadrant before going into investing. <\/p>\n\n\n\n
That doesn\u2019t mean you can\u2019t start an investing career \u2014 it just means that developing good business skills will help you learn how to invest more wisely.<\/p>\n\n\n\n
The good news is that starting a business<\/a> is a lot easier than you might think. There are countless resources available to you that will allow you to build a business with little more than your laptop, some capital, and a generous dose of perseverance.<\/p>\n\n\n\nBut knowing how to actually get a business up and running isn\u2019t everything you need to move quadrants. <\/p>\n\n\n\n
It all depends on which quadrant you\u2019re in right now and which one(s) you want to move to.<\/p>\n\n\n\n
If You\u2019re An Employee\u2026<\/h2>\n\n\n\n
If you\u2019re in the E quadrant, then the B quadrant is an ideal next step. <\/strong>Why? <\/p>\n\n\n\nBecause you don\u2019t have to deal with the uncertainties of starting a self-employed career, and you can keep your day job while you work on a business in your spare time.<\/p>\n\n\n\n
The biggest problem with starting a business is risk<\/em>. <\/p>\n\n\n\nThankfully, the risk of starting a business<\/a> is lower than ever before thanks to all those abundant resources available to budding entrepreneurs.<\/p>\n\n\n\nIf you\u2019re thinking about creating your first business, you have a lot of options. One approach is a side hustle <\/a>or a micro business<\/a>. <\/p>\n\n\n\nThis is a small, simple business that may require a small upfront investment and can be grown into a passive income generator.<\/strong><\/p>\n\n\n\nStarting a micro business requires a fraction<\/em> of the time and money required to start a small business, so it\u2019s a great option for employees who are pressed for time and money. <\/p>\n\n\n\nYou can continue working your 9-5 and<\/em> scale your micro business without burning out. This means that you can very easily transition from the E quadrant to the B quadrant.<\/p>\n\n\n\nFurthermore, many micro business owners find that they can quickly scale their businesses<\/a> and even sell them<\/a>. <\/p>\n\n\n\nDon\u2019t let the term \u201cmicro\u201d fool you \u2013\u2013 these businesses can be seriously profitable. <\/p>\n\n\n\n
They can give you the capital needed to start a small business (or even multiple small businesses).<\/p>\n\n\n\n
If You\u2019re Self-Employed\u2026<\/h2>\n\n\n\n
If you work for yourself, then you\u2019ve already developed some business skills you\u2019ll need to move into the B quadrant. <\/p>\n\n\n\n
You know how to network<\/a>, how to find the right people for the right jobs, and maybe even how to manage others if you\u2019ve worked in teams.<\/p>\n\n\n\nWhen you\u2019re first starting out, you might try building a business that you can sustain yourself (since you\u2019re already accustomed to working for yourself). <\/p>\n\n\n\n
There are many micro businesses that meet this criteria, such as:<\/p>\n\n\n\n
- Amazon stores<\/a><\/li>
- precious metals businesses<\/a><\/li><\/ul>\n\n\n\n
However, to fully make the move to the B quadrant, you\u2019ll need to put your existing skills to work and pick up some new ones, such as leadership skills<\/a>. <\/p>\n\n\n\nKiyosaki emphasizes that a great business owner is a great leader, so the sooner <\/em>you feel confident in your leadership abilities, the better.<\/p>\n\n\n\nCashflow Quadrant: Becoming An Investor<\/h2>\n\n\n\n
Kiyosaki says that the best time to get serious about investing is after you\u2019ve developed your business acumen by building successful companies. <\/p>\n\n\n\n
One benefit of this approach is that you\u2019ll have an increased cash flow once you\u2019ve built businesses. <\/p>\n\n\n\n
The more successful your businesses are, the more<\/em> money you\u2019ll be able to put into investing<\/a>.<\/p>\n\n\n\nOf course, you don\u2019t need a ton of money to start investing. You can begin with even $1,000<\/a> or less. But investing really pays off once you can put some serious money into it.<\/p>\n\n\n\nThe I quadrant, according to Kiyosaki, is where money becomes wealth<\/a><\/strong>. This is when you stop working for your money and make it work<\/em> for you<\/em>. <\/p>\n\n\n\nWhen you become an investor, you use money to make<\/em> money.<\/p>\n\n\n\nRemember: many people reside in more than one<\/em> quadrant. There are certainly some people who are just investors, but it\u2019s more common to see, for example, a business owner who\u2019s also <\/em>an investor.<\/p>\n\n\n\nEmployee, Investor…Where Do You Want To Be?<\/h2>\n\n\n\n![\"Entrepreneur](\"https:\/\/i0.wp.com\/images.prismic.io\/wealthfit-staging\/980cda3612c18d366b2b8437a9e56b413c32d062_03_employee-to-investor.jpg?w=640&ssl=1\")
<\/figure>\n\n\n\nRegardless of your goals, the cashflow quadrant poses a vital question: Are you happy with how you\u2019re making your money?<\/strong><\/p>\n\n\n\nTake a second to think that over. <\/p>\n\n\n\n
Ultimately, how you earn your income matters. <\/p>\n\n\n\n
The quadrant you\u2019re in will inform your financial freedom, or lack thereof. As Kiyosaki argues, it\u2019s much easier to achieve financial freedom in the B and I quadrants. <\/p>\n\n\n\n
You don\u2019t have to rush out and start buying stocks<\/a>, but you should take some time to think about where you want your professional life to take you. <\/p>\n\n\n\nYou are the ultimate master of your fate AND your finances \u2014 and using the cashflow quadrant can help you get to where you want to be. <\/strong><\/p>\n\n\n\nContinued Learning: Cashflow Quadrant & Investing<\/h2>\n\n\n\n
Now that you know the intricacies of the cashflow quadrant and how to use it to make changes to your professional path, don\u2019t stop there. Learn more about investing with these free (and WealthFit approved<\/em>) resources: <\/p>\n\n\n\n- Use this unique strategy<\/a> to teach your children how to invest <\/li>
- Find out how to read a stock<\/a> in 60 seconds <\/li>
- Here\u2019s how to balance your portfolio<\/a> with businesses, commodities, paper Assets, and real estate<\/li>
- Check out these 7 ways to invest in real estate with little money<\/a><\/li>
- Learn how to start a business selling gold<\/a> and other precious metals<\/li><\/ul>\n\n\n\n
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The Cashflow Quadrant: How To Go From Employee To Investor by Ian ChandlerWealthFit ContributorLast updated Dec 22nd, 2020 In This Article What Is The Cashflow Quadrant? Benefits of Using the Cashflow Quadrant How Do You Change Quadrants? If You\u2019re An Employee\u2026 If You\u2019re Self-Employed\u2026 Cashflow Quadrant: Becoming An Investor Employee, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":385,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-381","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":3,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381\/revisions"}],"predecessor-version":[{"id":395,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381\/revisions\/395"}],"up":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/385"}],"wp:attachment":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/media?parent=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
When\u2019s the last time you took a moment to zoom out and think about the trajectory of your professional life? It\u2019s easy to allow your career to go on autopilot and even easier to lose sight of your goals. The best way to evaluate is by using what’s called the cashflow quadrant.<\/p>\n\n\n\n
This is why it\u2019s helpful to have the resources to evaluate your development and track the progress of your vocation. <\/p>\n\n\n\n
The cashflow quadrant, developed by Robert Kiyosaki, is one particularly useful resource you can use to analyze your professional life.<\/p>\n\n\n\n
You\u2019ve probably heard of Robert Kiyosaki<\/a> before: he is one of the most influential business authors today and is best known for his Rich Dad book series, including his 1997 bestseller Rich Dad Poor Dad<\/em>. <\/p>\n\n\n\n It\u2019s the second book in that series, Rich Dad\u2019s CASHFLOW Quadrant<\/a>, that we\u2019ll be using as a reference today, exploring Kiyosaki\u2019s \u201ctitular cashflow quadrant\u201d.<\/p>\n\n\n\n It\u2019s a surprisingly simple concept that has an enormous amount of utility for your career. <\/p>\n\n\n\n If you\u2019re ready to learn about the cashflow quadrant and how it can help you make pivotal professional changes, let\u2019s get started. <\/p>\n\n\n\n First, let\u2019s take a look at the quadrant itself:<\/p>\n\n\n\n There are two important things you need to understand about the cashflow quadrant.<\/p>\n\n\n\n First, the letters each represent a type of worker:<\/p>\n\n\n\n We\u2019ll talk more about these four categories in more depth later on.<\/p>\n\n\n\n Second, the cashflow quadrant is split vertically into two halves. In other words, E and S are paired together, and so are B and I. <\/p>\n\n\n\n This will become important later on when we take a look at the four categories.<\/p>\n\n\n\n First, the cashflow quadrant will help you understand<\/em> and change<\/em> the specific quadrant you\u2019re in. <\/p>\n\n\n\n As Kiyosaki mentions in his book, the quadrant will specifically benefit employees and self-employed individuals who want to become business owners or investors. <\/p>\n\n\n\n Kiyosaki calls this the path to financial freedom, which you gain when you stop working for money and start having money work for you.<\/strong><\/p>\n\n\n\n Second, the quadrant is also great for anyone who wants to evaluate (or reevaluate) their career. <\/p>\n\n\n\n That\u2019s because it forces<\/em> you to take a step back and look at your entire<\/em> professional life. <\/p>\n\n\n\n No matter what your goals are, the cashflow quadrant will help you put them into perspective and think about the big picture<\/em>.<\/p>\n\n\n\n Finally, it\u2019s beneficial to simply use the quadrant as an exercise. It makes you think about how you earn your money and what your work life is like. <\/p>\n\n\n\n By extension, it makes you think about how satisfied you are with your current quadrant.<\/p>\n\n\n\n Let\u2019s take a closer look at each quadrant.<\/p>\n\n\n\n The E quadrant is where most workers reside \u2014 an employee who works for a business or organization that provides them with a paycheck and benefits. In return, employees provide their skills to their employer and trade their time for money.<\/p>\n\n\n\n Employees prioritize long-term job security, which is decided by their employer. Employees with a high degree of job security have problems to face. If employees don\u2019t work, they don\u2019t get paid. And along with self employed individuals, employees pay the most<\/em> in taxes.<\/p>\n\n\n\n A self-employed person is their own boss. While an employee works under a management structure, the self-employed person owns their job because they work for themselves.<\/p>\n\n\n\n Although being self-employed seems like a huge improvement over being an employee, the two quadrants actually have many<\/em> similarities. <\/p>\n\n\n\n They both pay high taxes and trade their time for money. Just like an employee, when self-employed people stop working, they stop earning an income.<\/p>\n\n\n\n Business owners don\u2019t just own their job; they own a system. Business owners are leaders who outsource work to experts and prefer to delegate<\/a> work instead of taking it on themselves.<\/p>\n\n\n\n As a result, the business owner doesn\u2019t have to work nearly as hard as employees or self-employed people. <\/p>\n\n\n\n As Kiyosaki notes<\/a>, business owners \u201ccan leave their business for a year or more and return to find their business more profitable and running better than when they left it.\u201d<\/p>\n\n\n\n Like investors, business owners pay much less in taxes<\/a> than the employed\/self-employed and have much more freedom. <\/p>\n\n\n\n Business owners can take vacations<\/a> and still <\/em>make money, and they don\u2019t<\/em> have to actively work to earn an income.<\/strong><\/p>\n\n\n\n Whereas the self-employed own their jobs and business owners own systems, investors own assets that make money for them.<\/p>\n\n\n\n The investor is the person who has earned money in one or more of the other quadrants and has put that money to work<\/em> for them. Investors often purchase assets like company shares and real estate.<\/p>\n\n\n\n According to Kiyosaki, the B and I quadrants are where true financial freedom is. <\/strong><\/p>\n\n\n\n Although financial freedom can be found in all four quadrants, Kiyosaki recommends the B and I quadrants for their unique benefits. <\/p>\n\n\n\n People in these quadrants pay far less in taxes<\/a> and don\u2019t have to work to make money.<\/strong><\/p>\n\n\n\n Now that you\u2019re familiarized with the quadrant, there are a few questions you need to ask yourself:<\/p>\n\n\n\n These questions might reveal more to you about your career than you think. <\/p>\n\n\n\n If it\u2019s been a while since you last thought about how you earn your money \u2013\u2013 and whether you\u2019re satisfied with it \u2013\u2013 then this exercise will be a real eye-opener.<\/p>\n\n\n\n Changing quadrants is one of the most common questions about the cashflow quadrant, and it\u2019s easy to see why. <\/p>\n\n\n\n Maybe you\u2019re a self-employed freelancer who\u2019s suffering from burnout<\/a>, or maybe you\u2019re a business owner who wants to expand and seek other income sources. <\/p>\n\n\n\n How do you go from one quadrant to another?<\/p>\n\n\n\n There are many ways to move quadrants, but Kiyosaki recommends that most who aren\u2019t business owners jump to the B quadrant before going into investing. <\/p>\n\n\n\n That doesn\u2019t mean you can\u2019t start an investing career \u2014 it just means that developing good business skills will help you learn how to invest more wisely.<\/p>\n\n\n\n The good news is that starting a business<\/a> is a lot easier than you might think. There are countless resources available to you that will allow you to build a business with little more than your laptop, some capital, and a generous dose of perseverance.<\/p>\n\n\n\n But knowing how to actually get a business up and running isn\u2019t everything you need to move quadrants. <\/p>\n\n\n\n It all depends on which quadrant you\u2019re in right now and which one(s) you want to move to.<\/p>\n\n\n\n If you\u2019re in the E quadrant, then the B quadrant is an ideal next step. <\/strong>Why? <\/p>\n\n\n\n Because you don\u2019t have to deal with the uncertainties of starting a self-employed career, and you can keep your day job while you work on a business in your spare time.<\/p>\n\n\n\n The biggest problem with starting a business is risk<\/em>. <\/p>\n\n\n\n Thankfully, the risk of starting a business<\/a> is lower than ever before thanks to all those abundant resources available to budding entrepreneurs.<\/p>\n\n\n\n If you\u2019re thinking about creating your first business, you have a lot of options. One approach is a side hustle <\/a>or a micro business<\/a>. <\/p>\n\n\n\n This is a small, simple business that may require a small upfront investment and can be grown into a passive income generator.<\/strong><\/p>\n\n\n\n Starting a micro business requires a fraction<\/em> of the time and money required to start a small business, so it\u2019s a great option for employees who are pressed for time and money. <\/p>\n\n\n\n You can continue working your 9-5 and<\/em> scale your micro business without burning out. This means that you can very easily transition from the E quadrant to the B quadrant.<\/p>\n\n\n\n Furthermore, many micro business owners find that they can quickly scale their businesses<\/a> and even sell them<\/a>. <\/p>\n\n\n\n Don\u2019t let the term \u201cmicro\u201d fool you \u2013\u2013 these businesses can be seriously profitable. <\/p>\n\n\n\n They can give you the capital needed to start a small business (or even multiple small businesses).<\/p>\n\n\n\n If you work for yourself, then you\u2019ve already developed some business skills you\u2019ll need to move into the B quadrant. <\/p>\n\n\n\n You know how to network<\/a>, how to find the right people for the right jobs, and maybe even how to manage others if you\u2019ve worked in teams.<\/p>\n\n\n\n When you\u2019re first starting out, you might try building a business that you can sustain yourself (since you\u2019re already accustomed to working for yourself). <\/p>\n\n\n\n There are many micro businesses that meet this criteria, such as:<\/p>\n\n\n\n However, to fully make the move to the B quadrant, you\u2019ll need to put your existing skills to work and pick up some new ones, such as leadership skills<\/a>. <\/p>\n\n\n\n Kiyosaki emphasizes that a great business owner is a great leader, so the sooner <\/em>you feel confident in your leadership abilities, the better.<\/p>\n\n\n\n Kiyosaki says that the best time to get serious about investing is after you\u2019ve developed your business acumen by building successful companies. <\/p>\n\n\n\n One benefit of this approach is that you\u2019ll have an increased cash flow once you\u2019ve built businesses. <\/p>\n\n\n\n The more successful your businesses are, the more<\/em> money you\u2019ll be able to put into investing<\/a>.<\/p>\n\n\n\n Of course, you don\u2019t need a ton of money to start investing. You can begin with even $1,000<\/a> or less. But investing really pays off once you can put some serious money into it.<\/p>\n\n\n\n The I quadrant, according to Kiyosaki, is where money becomes wealth<\/a><\/strong>. This is when you stop working for your money and make it work<\/em> for you<\/em>. <\/p>\n\n\n\n When you become an investor, you use money to make<\/em> money.<\/p>\n\n\n\n Remember: many people reside in more than one<\/em> quadrant. There are certainly some people who are just investors, but it\u2019s more common to see, for example, a business owner who\u2019s also <\/em>an investor.<\/p>\n\n\n\n Regardless of your goals, the cashflow quadrant poses a vital question: Are you happy with how you\u2019re making your money?<\/strong><\/p>\n\n\n\n Take a second to think that over. <\/p>\n\n\n\n Ultimately, how you earn your income matters. <\/p>\n\n\n\n The quadrant you\u2019re in will inform your financial freedom, or lack thereof. As Kiyosaki argues, it\u2019s much easier to achieve financial freedom in the B and I quadrants. <\/p>\n\n\n\n You don\u2019t have to rush out and start buying stocks<\/a>, but you should take some time to think about where you want your professional life to take you. <\/p>\n\n\n\n You are the ultimate master of your fate AND your finances \u2014 and using the cashflow quadrant can help you get to where you want to be. <\/strong><\/p>\n\n\n\n Now that you know the intricacies of the cashflow quadrant and how to use it to make changes to your professional path, don\u2019t stop there. Learn more about investing with these free (and WealthFit approved<\/em>) resources: <\/p>\n\n\n\n ______________________________________________________________________________________________________________<\/p>\n","protected":false},"excerpt":{"rendered":" The Cashflow Quadrant: How To Go From Employee To Investor by Ian ChandlerWealthFit ContributorLast updated Dec 22nd, 2020 In This Article What Is The Cashflow Quadrant? Benefits of Using the Cashflow Quadrant How Do You Change Quadrants? If You\u2019re An Employee\u2026 If You\u2019re Self-Employed\u2026 Cashflow Quadrant: Becoming An Investor Employee, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":385,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-381","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":3,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381\/revisions"}],"predecessor-version":[{"id":395,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/381\/revisions\/395"}],"up":[{"embeddable":true,"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/pages\/385"}],"wp:attachment":[{"href":"https:\/\/investapal.com\/TV\/wp-json\/wp\/v2\/media?parent=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What Is The Cashflow Quadrant?<\/h2>\n\n\n\n
<\/figure>\n\n\n\nBenefits of Using the Cashflow Quadrant<\/h2>\n\n\n\n
E \u2013 Employee<\/h3>\n\n\n\n
S \u2013 Self-Employed<\/h3>\n\n\n\n
B \u2013 Business Owner<\/h3>\n\n\n\n
I \u2013 Investor<\/h3>\n\n\n\n
How Do You Change Quadrants?<\/h2>\n\n\n\n
<\/figure>\n\n\n\nIf You\u2019re An Employee\u2026<\/h2>\n\n\n\n
If You\u2019re Self-Employed\u2026<\/h2>\n\n\n\n
Cashflow Quadrant: Becoming An Investor<\/h2>\n\n\n\n
Employee, Investor…Where Do You Want To Be?<\/h2>\n\n\n\n
<\/figure>\n\n\n\nContinued Learning: Cashflow Quadrant & Investing<\/h2>\n\n\n\n