The Cashflow Quadrant- The E Quadrant: Path to Freedom

The Cashflow Quadrant- The E Quadrant: Path to Freedom

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Financial freedom as an employee

We recently highlighted the importance of taking charge of your financial destiny, regardless of where you are in the Cashflow Quadrant. In the previous articles we established the patterns of employees in the E quadrant and the things that matter to them. The question remains, “How can a person in the E Quadrant become financially free?” In an earlier article, from the Money Principles series, remember we mentioned the importance of setting aside 10% of your income to contribute towards your financial freedom by making that income multiply. There are two options that you can consider:

  • Transitioning from the E quadrant and becoming a Business owner in the B Quadrant and eventually to an Investor the I Quadrant.
  • Investing your savings in a profitable investment in the I Quadrant e.g. real estate

Going from the E Quadrant to the B Quadrant helps you to generate cash flow that you can then invest in the I Quadrant. This is a path recommended by Robert Kiyosaki in the Rich Dad series of books because most people don’t have the capital requirement to really invest in the big investment portfolios.

I should point out that before making that transition it is very important to get the right financial education so that you make the right financial decisions. Many people have lost their fortunes and life savings because of making poor decisions having very little financial education. The results can be devastating as seen during the economic crash in 2007.

Prayer should be preceded by any decision that you choose to make. God gives wisdom to anyone who asks of Him. He will show you what you need to do, the people you should talk to and the decisions you should make. Every big decision in life, like your finances, should be taken to the Lord in prayer and you can be sure He will guide you to make the right choices.

However, a person in the E Quadrant can also become an investor in the I Quadrant. It’s important to have good background knowledge when going into any kind of investment lest you disastrously lose your money. This could be investing in real estate where your properties will constantly generate income for you or other kinds of business that you’re interested in and have a good understanding.

This is the route normally taken by people that are not keen on becoming business owners. They will invest in businesses that don’t require their presence. To become a successful business owner requires that you learn more than just technical skills which most people are not willing to learn. In the next section we will get into detail about the world of self-employed people in the S Quadrant.

Thank you for taking the time to read this piece. We would love to hear your views and comments about what we have shared. Feel free to share this information with your friends and family on the social networks. Stay tuned for the next article and until next time,

Be all you can be!

About the author

Sija Mafu is an Online Enthusiast, Personal Development Fan, Global Business owner and a Master in The Art of Living. Also as a devout Christian, his vision is to see young people take responsibility for their lives and create bright futures for themselves, their families and society at large.

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