4 CASH FLOW QUADRANTS-4 MINDSETS

 

Money is an essential ingredient for a comfortable living.Many of us(In fact all of us) work for money.There are many view points from different people on money.But In this article let me explain you an interesting classification that I have come across recently when I was reading a very famous book by Robert kiyosaki “RICH DAD AND POOR DAD”.

“Money is an idea that is more clearly seen with your mind.”

The cash flow into our bank accounts can be classified into four different types as listed below

1. EMPLOYEE
2. SELF EMPLOYEE
3. BUSINESS OWNER
4. INVESTOR

Any person who earns money falls into one of these quadrants.let me demystify these a little bit.

1.EMPLOYEE

People in this quadrant generally work under some one or a company.Majority of the working class falls under this category.They are obsessed with income security and regular income.They are devoted to improve the financial status of the company that pays them.Frankly speaking every one comes under this category at some point in their lives.

2.SELF EMPLOYEE

They work for themselves.The fancy term for this could be freelancer.People work on their own interest or take up a project from the client and finishes it according to their interest.One massy example could be the pakoda makers in on the streets.They are largely self sufficient.

3.BUSINESS OWNER

The people in this quadrant use their skill to set up an organization and provide livelihood to many people.Business owners have distinct advantages they can control production, hire employees and find creative ways to pay taxes, such as writing off business expenses and taking advantage of changes in the economy.They run their own enterprises.

4.INVESTOR

Investors are those who take what they earn and invest it in real estate, savings, bonds and other forms of dividend-producing assets. The goal of investors is to stop working altogether and to live off the income from their investments.There are also angel investors like garyvee,naval ravikanth who have multiplied their money through investing in companies.

Now lets come to the point I wanted to make

Does the cash flow quadrant only tells us about the way people make money?Surely not.It gives us a key insight on how people think.Earning money is all about the mindset and the way people think.

A 9 to 5 employee working for a big company gives his hundred percent working for the company just because it pays him the dollar yet a geek living in the silicon valley who is equally capable to earn the same job spends his time building a large company which would provide employment to many people.hence the classification states above is not just about the cash inflow but also the mindset.

“MONEY MEANS MIND SET ”