The Best Strategy To Earn Big

Did you ever hear this while growing up? Just go to school and try to get good grades and that is the way to secure well-paid jobs.

I bet that 95% of you have been raised to believe that this is THE road to financial success. I know for sure that this path may be suited for some people but definitely not for everyone. We don't just aspire for a life that is just sufficient for us to survive. We need something that is able to fulfill our dreams and desires and obviously gives us satisfaction and happiness. Happiness is the ultimate thing that all of us want. If you don't agree with me then you don't need to move ahead and waste time.

In Rich Dad's Cashflow quadrant Robert Kiyosaki explains that there are four different paths to become wealthy, but some of them are more efficient than others. 

The cash flow quadrant is a simple model that explains that wealth can come from four different sources, which quadrant you belong to depends on where most of your income comes from. 

The four different quadrants are:

E- The Employee

S- The Self-employed

B- The Business Owner

I- The Investor

Kiyosaki calls the Cashflow quadrant, the path to financial freedom, which you gain when you stop working for money and start having money work for you.

The left side of the CASHFLOW Quadrant

On the left side of the quadrant are Es and Ss i.e. the Employee and the self-employed respectively. These are the people who pay most in taxes and trade their time for money. Each individual in this left section of the Cashflow quadrant has a diverse set of mindsets.

E- The Employee

In this quadrant E, the employee has a job. 

The employee gives his or her energy, time, and skills to an employer in return they get a paycheck and some benefits. From this employees can make little to a lot of money. But when the employee stops working or the company shuts down, they get the shock of their lives i.e. no more income. So, this active income source was never in your hands. 

This is where most of the people, struggle and strive to reach and they end up draining themselves completely with nothing left in their hands. This long-term lack of control over income is the primary problem of the E quadrant. The employee's success, security, and freedom are totally in the hands of the employer.

S- The Self-employed

The small business owner or self-employed strives for control. He or She achieve financial success by becoming highly specialized in any demanding field. And you might find him say something like I'm looking for a job where I can be compensated well for my skills and time where I am in charge.

The S quadrant includes doctors, lawyers, dentists, accountants, and many other trade workers. Even a shop owner comes in this category of self-employment as his shop will be functional and will generate income only till his shop is open. 

Many self-employed people earn very large incomes, but like the employee, when they stop working so does their income. These are the people who work the hardest and the longest.

The right side of the CASHFLOW Quadrant

On the right side of the quadrant are Bs and Is i.e. the Business Owner and the Investor respectively. They pay the least in taxes and create or invest in assets that produce cash flow for them even when they're sleeping.

B- The Business Owner

Unlike the S quadrant, the people in the B quadrant don't own a job. They own a system or a product that makes money even when they aren't working.

The business owner strives for Freedom. He achieves financial success by creating a profitable business system. Business owners look to hire people that are smarter than them to run their business. They look to delegate as much as possible, not keep all the work for themselves. The best business owners know they could leave their company for a year and come back to find it still profitable and running better than they left it.

The wealthiest individuals in the world typically own businesses. These include Bill Gates of Microsoft, Jeff Bezos of Amazon, and Mark Zuckerberg of Facebook.

Business owners can take vacations and still make money, and they don't have to actively work to earn an income.

I- The Investor

The investors own assets that make money for them, contrary to Self-employed and business owners who own jobs and systems respectively. The people in this quadrant have earned money in other quadrants and now, they want that money to work for them.

According to Robert Kiyosaki, the B and I quadrants are where true financial freedom is.

People in the B and I quadrants pay far less in taxes and don't have to work to make money.

Before moving ahead in this article and also in life ask yourself some questions.

Which quadrant represents you? 

Where do you earn most of your income? 

What about your spouse? Your friends? Your relatives?

Are my expenses more than my income?'

Am I afraid to take risks?

Which part of the cash flow quadrant would you like to transition to? 

I'd love to hear from you in the comments section below.

The Leap from Left to Right

The biggest questions that I would like to ask each and every one of you is: 

Do you want to change the direction of your financial future and operate on the right side of the quadrant (B and I)? 

Are you motivated by a dream of financial independence and prosperity?

To transition to the right side of the quadrant, you must be able to control the direction of your cash flow.

Now, you may start thinking that you need to get some University degree to execute this transition to the right side of the quadrant- but that's not the case.

If you want to invest time and money to learn something new, then concentrate on learning how to operate on the B and I side of the CASHFLOW Quadrant. No degree program can teach you, how to become successful in B and I quadrant. But you can teach yourself by reading Rich Dad's CASHFLOW Quadrant and going through my blogs.

If you wish to know the ways and means to transition to the right side of the CASHFLOW Quadrant, drop a comment below.

I know the way...

So if you have decided that 2021 is your year to improve your financial situation, take all the steps you can toward the right side of the CASHFLOW Quadrant. Nothing can stop you from achieving this, not even this pandemic if you are determined.

Nothing can stop you until you choose to be stopped.

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