As we conclude this series we are going to be looking at the final quadrant of the Cashflow Quadrant. This is probably the most fulfilling quadrant of the four. In this case your money works for you to make even more money. You’ll normally hear these people speak about the stock market, bonds, property, dividends, etc that are related to investing. Many of them have had experience in the B–Quadrant where they generated that extra cash flow to put into investments.
Robert Kiyosaki in his Rich Dad, Poor Dad series of books strongly recommends education when entering into the world of investing. Many people invest by chance as if to suggest that they are gambling. Part of that education comes from having an understanding of various industries which is why becoming a business owner first before being an investor is of great benefit in the long run.
Like we shared in the previous posts the people on the right side of the Cashflow Quadrant think differently from their counterparts on the left side of the quadrant. Some of the investor characteristics include:
- Complete control of their time
- Sound investment insight
- Have multiple streams of income from their different investments
- Some are also venture capitalists
Having some form of investment should be everyone’s goal regardless of which quadrant you start from. Since most people start on the left side of the quadrant (E and S) education and applying yourself is important so that you move towards the right side of the quadrant. Most people don’t have the large capital requirements to get into really profitable investments hence Robert Kiyosaki advises that we take a certain path to financial freedom.
If you are starting from the E–Quadrant or S–Quadrant you need to work towards becoming a B–Quadrant business owner to generate cash flow and receive real life business education. The excess cash flow is what you then put towards profitable investments. Stay tuned for the next post as we discuss further about the I–Quadrant. Until then,
Be all you can be!