CashFlow Quadrant
This is an animation for the cashflow quadrant offered by Robert Kiyosaky in his book "Increase your finatial IQ getting richer by getting richer"
Who Needs the Most Financial IQ?
For those who may not have read my second book in the Rich Dad series, Rich Dad’s CASHFLOW Quadrant, I will briefly explain. The CASHFLOW Quadrant is about the four different groups of people who make up the world of money.
E
Employer
E stands for employee, and it is a person who is paid to work for an organization or for another person.
S
Small Business
S stands for small business, self-employed, or specialist. It is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business
B
Big Business
B stands for big business, 500 employees or more. Powerful and influential businesses and financial organizations (= ones with a lot of influence) when considered as a group
I
Investor
I stands for investor. It is a person or organization that puts money into financial plans, property, etc. with the expectation of achieving a profit.
For people whose career path is in the E quadrant, they may not think they need much financial intelligence. The same is true for those in the S quadrant.
My poor dad, as a schoolteacher in the E quadrant for most of his life, did not place much value on financial intelligence. That is until he lost his job and entered the world of business. In less than a year, his savings and retirement were gone. If not for Social Security and Medicare, he would have been in serious financial trouble.
My mom, being a nurse, wanted me to become a doctor. She knew I wanted to be rich, and the richest people she knew were doctors. She wanted me to stake my claim in the S quadrant. Obviously, those were the days before malpractice insurance costs went through the roof. Again, being a nurse, she did not see much need for financial intelligence. Her solution for me was to simply get a high-paying job. As you know, there are many people with high-paying jobs who have no money.
If you want to be an entrepreneur who builds a B quadrant business, or a professional investor in the I quadrant, financial intelligence is everything. For those in the B and I quadrants, financial intelligence is essential because it’s the intelligence that gets you paid. In the B and I quadrants, the higher your financial intelligence is, the higher your income will be.
Rich dad said to me, “You can be a successful doctor and be poor. You can also be a successful schoolteacher and be poor. But you cannot be a successful entrepreneur or investor and be poor. Success in the B and I quadrants is measured in money. That is why financial intelligence is so important.”