Robert Kiyosaki's 4 quadrants

When I was in my teens, I was introduced to the Rich Dad book series. It changed the way my brain thinks. Robert Kiyosaki's book series has important life lessons that may be something known by many investors, businesspeople today but during that time, it was a new concept.

When I grew up, I always had this dream of becoming a banker, maybe a film director but never thought of what financial freedom was until I read the pages of his book.

This is the famous four quadrants that is replicated and copied throughout the investment world for decades and has then created lots of gurus. Robert is currently in a position where I've seen critics criticizing him but from my view he has done the world something great and that is to teach us the importance of financial education.

The Quadrants explained from my prospective:

note: there are two variables here which are time and money

E - Employees
This is when a person works for a wage and has to commit their time to get a wage. Usually a person who falls in this category has to trade their time for money. Time is usually something scarce and it really stinks to get to work on Monday and hopefully Friday comes soon.

SE - Self Employed
This is a category of people, I guess is like me in some ways, finding side hustles and still moving up the ranks. Trading my time for cash with no leverage yet. I got lots of time. Still trying my best to get into the next quadrant.

I - Investor
Investing money so money can create more money. This requires an investing time and knowledge to built a sustainable income. I have yet succeeded in this criteria. For those who are in this quadrant are individuals like Bill Gates, Mark Zuckerberg, Paul Graham and etc. They have invested money that they have made earlier and now their investments into different companies have made so much money, they don't have to work for the rest of their life.

The last quadrant
BI - Business Owners

These individuals have the leverage of people who work for them and earn money for them and it's pretty risky when the economy isn't doing well. These individuals have very limited time but lots of cash. Sometimes, they have sleepless nights figuring out the different methods of building up their company.

Which of the quadrants do you want to be in? If you want to read more on this, do grab a book from the rich dad series by Robert Kiyosaki's. They have been written more than twenty years ago but it is still relevant today. I am going to set up an Instagram page for wealth building.

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