Understanding The Cash Flow Quadrant (Employee Vs Business Owner)

On this very write up i will be talking about the four  types of people that leads the world of business today, some visible differences between the Employee and a Business Owner, the cash flow of income percentages  in-between them to help you determine where you are now and where you would like to be in years to come.

EMPLOYEE VS BUSINESS OWNER

Now lets start by defining this two differently.

The difference between Employee and Business Owner;

Employee: Is any individual or person who provides labor to a company/organization or to another person(s) in order to get a commission commonly  referred to as "salary" without any leverage, they're being encouraged to work harder by providing them (employees) with incentives. Whilst 

Business Owner: Is one with a specific commercial enterprise or establishment, hires people to work for  him with the ability to earn high returns when operating at a high capacity utilization,  operating leverage.

Now with believe you have understood the above definitions lets dig deep into things right here, i  remember reading a book by Robert Kiyosaki where he explained the Cashflow between the poor and the rich.

In Robert Kiyosaki's book (CashFlow Quadrant) he talks about  the four types of people that makes up the business world today which are {E} stands for Employee, {S} stands for Self-employed, {B} stands for Business owners while {I} stands for Investors. 

Now here is a break down to the above categories;

Take another look at the image on this post above and observe the diagram on it, you will see that most of the money comes from the side of B and I (i.e Business owners and Investors) that is where 90 percent of the whole wealth is coming from. The B and I side have the mastered system and they also have mastered leveraging their time.

Now did you know anyone can become part of that right hand and wealthy side but there's is a barrication wall. That barication wall is usually the way that personally you think or maybe your mindset.

Your mindset now determines which side you really are on.

What exactly is your mindset?

Are you to remain on the E and S side or to move on the B and I side of the graph?

Do you still want to remain an Employee without any leverage? 

Do you want to become a so-called Self-employed personnel without a leverage?

Think wisely, think about your future and times you are wasting working tirelessly for another person, think of a permanent source of income for yourself, thinks of B  and I side where 90 percent of wealth comes from. 

See you at the top,

From Obim Special.