Cash Flow Quadrant If you’ve read Robert Kiyosaki’s book The Cashflow Quadrant you’ll know what the letters E B S and I stand for. E is for employment and S is for self-employment. With either option you are selling your time in exchange for money.
B is for business and I is for investments. These are sources of passive income. You receive cash even when you are not selling your time.
It is possible to become self employed and then to gradually delegate the work so you are not involved in the day to day running of the operation. Here you have transferred a source of income from the S quadrant to the B quadrant.
Robert Kiyosaki says that most people are safest sticking to the E quadrant rather than attempting to become self-employed. However, while remaining in the E quadrant you can invest your positive cash flow in the B or I quadrants.
In addition to your main job you might consider getting a second part time job – also in the E quadrant. However, one possibility which is attracting more and more ordinary people worldwide is to set up a little internet business. Another idea is to try network marketing.
You can read more about passive income, internet income and network marketing elsewhere on this site. Also, you may be interested in reading our review of Robert Kiyosaki’s book The Business of the 21st Century.
Regardless of the exact business you decide to go into, the key idea is to shift a great part of your income over to the right hand side of the cash flow quadrant.
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