One of the great people who have given their hearts to humanity is the man called Robert Kiyosaki, he is a total package for financial solution. Since I will like to be rich and wealthy I have decided to make him my teacher. Robert Kiyosaki is great at illustrations and his artistic mind makes it possible to create a diagram like the "cash flow quadrant" diagram.
I personally have interest in that diagram because it relates to me as an entrepreneur. For a very long time after coming in contact with this diagram and thinking that I know and understand it, I realised lately that I didn't notice one detail on it. I didn't realise the movement or direction of the arrows on the diagram.
In the diagram, the arrows begin at the E, moved to S, then to B and lastly to I. What is it about the arrow representation? Why does the movement of the arrows matter? Can we not have the arrows move in another directions? Say, starting from S quadrant, to E and then to B and I, just something random.
In reality, does it happen that way or is it only there for theoretical/paper representation?
In real life situations, I have seen people from the E (Employee) quadrant make moves to become an I (Investor), does this work? Does it make sense? If it does work then why should the arrow directions or progression matter?
Presently, I believe the progression E - S - B - I is the way it should be followed, or rather a proper route to follow, a path of gradual growth.
Well, only Robert Kiyosaki himself will know why he puts the arrows like that, he will be the one to explain the importance of the details in the diagram, but what I will do is to share my understanding about the diagram and to pass across information to you, the information that the great author has made his message to humanity for financial literacy and wealth building.
As an entrepreneur, your major focus is to be a good leader and to help your community raise great leaders also. A leader with financial literacy will be a beautiful one. Apart from that, you want to live a comfortable life and provide for your family, each and every human wants that, and that is why I am passing this information.
Which quadrant are you living in presently? As for me, I'm currently living in the B quadrant, I am relatively new here, I spent the last ten years in the E and S quadrants but I believe I have the vision for a B quadrant. The vision which is to "make myself a better person and create a system to make others better also". It's service to the people.
I started my entrepreneurship journey when I was seventeen years old, after my secondary school education. I was never a fan of salary work, I love my freedom since I was a little child, so I was always focused on developing my skills. I was making customized T-shirts for the people around the hood and I was good at graphic designing. I also got printing jobs from most graphic projects I made for people. I was living in the S quadrant.
Then at some point, I needed more money to do a capital project, I needed one thing or the other as an investment in the vision, like when I wanted to do packaging for the Quadoowear Luminous Tshirts in 2011 and when I needed some cash to travel to Cotonou in 2014, all these times I needed extra cash, I would get a salary work around. Yet, I didn't join a salary work that did not go in line with my skills, so, even if I am getting some money at the end of the month, I have also improved my skills greatly. I never lost focus just because I had salary work, because it was my vision that made me go look for a work in the first place. These times, I was able to learn what it feels like to be an employee. I was living in the E quadrant.
Either way, living as an employee E or as self employed S, I never worked for the money, I worked for the knowledge. I was enjoying every bit of pain I passed through because I have a clear idea of what my future looks like, I know I would be having big corporations that will employ plenty people, if I don't feel this pain, I will not understand what they might feel when I have the employees. I want to be a good employer to my workers, I want to be sure that I have felt what they feel.
I was preparing for "Now" ten years ago, all I did was to focus and kept building the dream. The dream of becoming a successful business man. What Robert Kiyosaki called the third quadrant of the Cash Flow.
I was preparing for "Now" ten years ago, all I did was to focus and kept building the dream. The dream of becoming a successful business man. What Robert Kiyosaki called the third quadrant of the Cash Flow.
Let me tell you what the quadrants represents:
Employee (E Quadrant)
This category of people live their lives as employees. Most university graduates have been trained to earn income from this quarter. You either work for people or for the government.
Self Employed (S Quadrant)
People who live here have their own businesses, they are their own bosses. Here, nobody pay you salary, you don't have to work if you don't want to, but if you don't work, you don't make any income. You have to be present in person to make income. Tailors, Barbers, mechanics, photographer etc are examples of self employed people.
Business Owner (B Quadrant)
The business owners who have from 20 to 500 employees and above are those that live in this side. These people make jobs available for the masses and by doing this, they don't have to be there in person to make income, their business make money weather they are sleeping or playing or on vacation.
Investor (I Quadrant )
People who live here are investors, they make their money work for them. These people make their money by investing in companies, start-ups or majors and in assets. Here, your money works for you and you don't have to be present in person to make money. Wherever you are, whatever you do, your money keeps piling up.
All the four quarters explained here has their individual and unique lifestyle , they have their problems and advantages. Each of them has different requirements that must be met by the people living in the quadrants.
Over the years, I have lived making my income from E and S quadrants, and now I am living in the B. The B quadrant for me is more demanding than the E and S, as a B quadrant person, you are a leader, and your leadership skills will help you here, your job here is to cater for people, you cater for your team, your business partners, followers, customers and fans.
When I was in the E and S quadrants, I don't have to pay salary, I don't have to provide logistics, I done have to bother myself about customer satisfaction, I just work and get paid. But it's different here, you must put others first before yourself, that is how to be successful here.
Over the years, I have lived making my income from E and S quadrants, and now I am living in the B. The B quadrant for me is more demanding than the E and S, as a B quadrant person, you are a leader, and your leadership skills will help you here, your job here is to cater for people, you cater for your team, your business partners, followers, customers and fans.
When I was in the E and S quadrants, I don't have to pay salary, I don't have to provide logistics, I done have to bother myself about customer satisfaction, I just work and get paid. But it's different here, you must put others first before yourself, that is how to be successful here.
How ever you choose to make your income, always learn how money works. Don't work for money, let money work for you. Seek genuine financial freedom and wealth building, you can get the best of these financial tips all-day from Robert Kiyosaki.
This is my understanding about the 'Cash Flow Quadrant' by Robert Kiyosaki.
Written by: Alli Quadri Olalekan (Light)
CEO Quadoowear.
CEO Quadoowear.
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