Financial Freedom

If you aspire to financial freedom, read Robert Kiyoski's book "Rich Dad; Poor Dad".

In his book, Kiyosaki uses a simple concept which he calls 'The Cash Flow Quadrant" to explain how money is earned. He shows this in a diagram consisting of four quadrants . In each quadrant, he assigns a letter representing the way an individual earns his income. The letters are as follows:

E: Employee — Working for someone else

S: Self-employed or Small business owner — Where a person owns his own job and is his own boss.

B: Business owner — Where a person owns a "system" of making money, rather than a job to make money.

I: Investor — Spending money in order to receive a larger payout in return.

Most will not.

There is one exception, though. Those who earn high incomes do have the means to reinvest their earnings.

However, people in “E” and “S” are less likely to have the freedom of time to enjoy their money!

In the case of the self-employed such as a taxi driver, electrician or a dentist, their ability to earn stop when they fall sick or take time off.

“B” and “I” hold out the only promise of financial freedom. Those in “I” would not bother with reading this. However, most of us are not in “I”. And for many, our idea of financial wellness is to be able to enjoy the freedom of time with our loved ones and hobbies such as travel while being able to achieve a level of income for life to support this. You do not need to have huge capital to make this possible.

What you need learn is how to move gradually from “E” or “S” to “B”. In a while, you will come to learn of a sensible money making system that enable you to make that transition to “B”.

It is important to appreciate where you are in the quadrant if your goal of financial wellness is one of freedom and independence.

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