PANDAPATAN, SITTIE ASHRY I.

ROBERT KIYOSAKI: CASH FLOW QUADRANTS

1. Explain Robert Kiyosaki's concept on the 4 quadrants, respectively.

 Employee- the E quadrant: your income is derived via a salary
which you cannot control. No matter how hard you work, your income
will always be capped. You have to have a job.
 Self-employed - the S quadrant: describes the majority of people
who call themselves ‘business owners’ — even those with a number
of employees. In this quadrant, the company is entirely dependent on
the owner’s time. And if he or she stops working, their income stops
as well. This is where you own a job.
 Business owner- the B quadrant: the realm of entrepreneurs, people
who design systems — machines comprised of people and processes
to generate a profit. This is where you own a system.
 Investor- the I quadrant: Investors use money to create more
money. They don’t have to work because their money is working for
them. Money works for you in this quadrant.

2. What do you think are the implications of each quadrant?

 The Cashflow Quadrant is a system for categorizing people based on
their sources of income: E, S, B, or I are the options. E stands for an
Employee, someone who earns money by holding a job. S is Self-
employed, earning money for themselves. B stands for Business,
meaning someone who owns a company or system that generates
money for them. And I is an Investor, someone who earns money
from their various investments.
3. Knowing such concept, how does this influence your perspectives in
your future endeavors?
 Kiyosaki talked about four approaches to building wealth. Yet only
two can help you to break free of the day-to-day grind. This concept
influenced me knowing where I stand in a way that each of us falls
into different quadrants, that we could be an employee, business
owner, self-employed, and an investor. It is indeed a flow. We can
shift from being an Employee to self-employed and then to being a
business owner and then to being an investor. And as for my future
endeavors, I could be aware of how will it be for me to start from to an
employee to making money work for me, and how it could help me
frame what it means to be in such quadrant.