Our 21st Century Economy
This presentation offers information to help you understand economic choices in today’s economy. The 4 Quadrants are based on the works of Robert Kiyosaki, author of Rich Dad, Poor Dad and other bestsellers.
Understanding how you create money
Are you ready to change the way you look at your career, your money and your life?
To understand why our business opportunity is such a valuable tool in the creation of your financial future, it is important to understand the Cash Flow Quadrants.
THE E QUADRANT
The upper left quadrant is the E Quadrant, which stands for Employee. If you work for someone else, no matter how much income you make, you are an Employee. That means you trade your time for a salary or income. If you’re in the E quadrant, you have probably been taught to value job security, good benefits and a steady income. If you ever stop working, so does your income. Most people are employees.
Many people who seek freedom from the “rat race” of the perpetual “work for money” trap move from the E to the S quadrant.
THE S QUADRANT
The lower left quadrant is the S Quadrant, standing for Self-Employed. If you work in your own business, you are in the S quadrant. Most professionals such as doctors, lawyers, plumbers and consultants fall into the S quadrant. If you are in the S quadrant, you probably value freedom, independence and a hands-on approach. Many people in the E quadrant who want more freedom move to the S quadrant.
Unfortunately, people in the S quadrant are often the lowest-paid people because they invest so many hours of “sweat equity” for so little payoff. In fact, 95% of all S quadrant businesses fail within 5 years. And even when bringing in a good gross income, if your business depends on your presence to function—as do most professional offices—you have little to no time freedom.
In both the E and the S quadrants, your income is limited by the amount of time you can work. You must rely on your own efforts to advance in your career or increase your income. If you ever stop working, so does your income.
To create time and financial freedom, you have to move to the B or I quadrant.
THE B QUADRANT
The upper right quadrant is the B or Business Owner Quadrant. Business owners differ from self-employed people because they don’t have to work in their businesses to get paid. People in the B quadrant build (or buy) their business as an asset and get paid whether they work or not. They own their businesses (or assets) and hire other people to work for them and manage the business.
It’s the B quadrant rather than the S quadrant that provides financial independence and time freedom.
THE I QUADRANT
The lower right quadrant is the I, or Investment Quadrant. People in this quadrant invest in pre-existing assets such as businesses or real estate. They also get paid whether or not they work. However, moving into the I quadrant requires a very large capital investment.
The people in the B and I quadrants invest in assets rather than trading their time for dollars. Assets such as real estate, franchise businesses or stock produce income all the time, even when these people sleep.
More importantly, people in the B and I quadrants have both money AND the time to enjoy it, and their income stream is unlimited because they are not trading time for money.
95% of the people in the USA create their income in the E and S quadrants.
However, 95% of our economy is generated from the B and I quadrants. What does this mean?
It means that 95% of Americans have to share only 5% of the money being generated.
In Which Quadrant Do You Want to Live?
E & S Quadrants
|
B & I Quadrants
|
If you are interested in how our business can help you move your quadrant, read Gaining Control of Your Time & Money, or go to our next online segment, The Economy & Our Industry.