CASH FLOW QUADRANT
Robert Kiyosaki
This is understanding where our income flows. It was divided into two main sections. The left side means “poor side or active income side” and the other side means “rich side or passive income side”. What’s the difference? In specific explanation, active income means “you is working for money” while the passive income means “Money is working for you” .
Now, this quadrant is subdivided into four. The first quadrant is “E” which means “EMPLOYEES” . The second is “S” which means “SELF-EMPLOYED”. The third one is “B” which means “BUSINESSMAN” and the last quadrant “I” which stand for “INVESTOR”. Where do you belong to these four quadrants? Sa poor side ka ba? or sa rich side ka ba?Let’s examine it one by one:
Quadrant 1 – EMPLOYEES
The first quadrant means Employees or in short you have a job. It belongs to the poor side but Im not speaking “mahirap” cause what I mean mababang uri ng pinagkakakitaan. Siya yung may Boss. Siya yung sumusweldo ng 15th and 30th of the month. Siya yung kailangang gumising ng 6AM para pumasok in order para magawa ung trabaho. But employment is good. This kind of active income have a limit or limitado. Kung 10k per month ka hanggang 10k per month ka lang. Pero depende sa trabaho mo. They WORK HARD for money. And they word hard para lang mapromote para sa mas mataas na posisyon.The higher they climbed the ladder, the higher they pay is. Sad to say, the higher their pay is, the higher also their taxes. It sad to say that dadating ang time na if hindi ka umalis sa pagiging employment, you will get tired. And it’s not them getting rich, it’s their bosses, it’s their company. They not own their time dahil ang binabayaran sa kanila is time. They exchange their time to money. At the same time, pag hindi sila pumasok , walang kita. In short, NO WORK NO PAY. If the time is come na magkakaedad na sila , they get retired and also wala na rin silang kikitain. They are slavery by their boss but I repeat it Employment is good. They are the support of our economy. This quadrant is the mindset of many Filipinos.
Quadrant 2 – SELF EMPLOYED
Engineers,accountants,Doctors,Dentists,Lawyers,Celebrities,Athletes etc,. Those are example of Self Employed. They work for themselves. Sila lang mismo ang nakakaalam ng trabaho nila. The difference with the employees is that self-employed own their time since they don’t have superiors. They are independent. They love to be an independent. At the same time, they not want to work for others instead they want to work for themselves. Just like Manny Pacquiao our national athlete for the field of boxing.He is example of Self employed. Kapag wala siyang laban, wala rin siyang kikitain. Another is Marian Rivera and she is a celebrities. Kapag wala siyang project , wala rin siyang kikitain. Just like an employed as I said already they are the same regarding for the active income, NO WORK NO PAY.Self Employed is the same as employees. And if they stopped working, they will also stop receiving income. This two active income have a principle that they applied. They applied the SINGLENESS or sila lang mismo gumagawa ng trabaho para sila ay kumita.
Quadrant 3 – BIG BUSINESS OWNERS
They love delegate tasking. Yes, hind sila katulad ng employee na sila sila lang mismo gumagawa ng trabaho nila. This 3rd quadrant applied the principle of law of leverage. This people hired another people to delegate the task or para mahati yung trabaho niya. Kumukuha siya ng mas matatalino sa kaniya, mas magagaling at mas malalakas sa kaniya at sila ang magtatrabaho para kumita ang business owner or in other words they hire people who are more intelligent than them to do the work for them. They have built a solid system and they own it. They have built their resources to make this possible. And the result is they can leave their work. Insted of working , pwede sila magbakasyon,pumunta sa ibang bansa at iba pa. They can leave all they work but still earns money because there were people working for them. Example dito ay si Ninong Henry Sy(just kidding).Si Henry Sy aang may ari ng lahat ng Sm mall, pero nakita mo ba si Henry si nagbukas ng pinto?nag map ng sahig?Nagchecheck ng bag mo?d ba hndi? Pero sino ang pinakakumikita sa Sm? Probably syempre si Henry Sy. He use the system of leverage which I said earlier , kumukuha sila ng mga tao para magtrabaho para sa kanila.
Quadrant 4 – INVESTORS
These people have already build their assets. They not working for money anymore. There money is working for them instead, the assets they have accumulated works for them providing them constant income even if they don’t work. Example nalang natin, kunwari may 50 million pesos ka then nilagay mo sa banko and that money creates an interest for 1% per annum or per year and it increase by 500,000 per year without working. Imagine this , nilagay mo lang pera mo sa banko at wala ka ng ginawa kundi nagliwaliw,nagcounter at nagdota then after 1 year may 500,000 kana.These are people who are called “living on interests”. They are living thru the interests of their assets and investments. Money works for them. They have invested their money to have more money. Business owner and Investor are considered as passive income. Because they master their system and they not work hard, they WORK SMART.
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