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*The Cashflow Quadrant Explained – How You Earn Income Matters*
The CASHFLOW Quadrant represents the different methods by which income or money is generated … Different methods of income generation require different technical skills, different educational paths, and different types of people.”
Robert Kiyosaki, Cashflow Quadrant
The Cashflow Quadrant. It’s the main idea of *Robert Kiyosaki’s* book by the same name. And it’s a powerful one that has guided much of my own entrepreneurial path to seek financial freedom.
As you can see, each quadrant represents a different way to generate income. Some people earn money in only one quadrant, while some people earn money in all four. There are advantages and disadvantages to each.
But the two quadrants on the right side (B & I) are the primary paths to financial freedom. The majority of Kiyosaki’s book teaches the unique skills and mindsets required to succeed on this path.
numbers so that you can confidently analyze and buy profitable rental properties. It also includes Coach’s rental analysis spreadsheet.
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Let me explain a little more about each of the four quadrants:
*E – Employee*
An employee has a job. This is where most people earn their income. The job itself is owned by a business, which could be a single person or a large corporation. The employee gives his or her time, energy, and skills to an employer in exchange for a pay check and benefits.
Employees can make a little or lot of money. But when an employee stops working (or when the business stops), their income stops, too.
This long-term lack of control over income is the primary problem of the E quadrant. An employee’s financial destiny, security, and freedom is dependent upon the whim and the success of their employer.
*S – Self-Employed*
Many employees get tired of their lack of control and choose to work for themselves. The self-employed still work, but they own their job.
The S quadrant includes dentists, insurance agents, restaurant owners,

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