I chose to be self-employed out of training because I wanted to be my own boss. Something else to consider, employees, along with self employed individuals, pay the MOST in taxes. Sometimes people want to stay in this category as it typically has a higher long-term job security. Again, continuing to trade even more time for money. If people in this quadrant want more money and don’t want to move to the right side of the quadrant, they must work MORE hours. Starting a practice these days is very expensive.They’re graduating with more student loan debt. More doctors are falling into this category due to two things. You’re literally making money while you sleep. With passive income, you’re able to leverage people and money to increase your wealth, even while you’re busy doing other things. Unfortunately, most doctors and other high-income professionals NEVER shift to this side which can lead to burn out. This is where we start generating passive income. Kiyosaki states that we need to focus on moving over to the right or the “ rich side” of the quadrant. If not, I’ll always trade time for money. “ Watch out for that first step, it’s a doozy!” – Ned Ryersonīeing in the S category is what pushed me to start focusing on moving over to the right side to build passive income. In order for them to make money, they must perform…or they don’t get paid.Įach day they start from zero which reminds me of Bill Murray’s movie, Groundhog Day.Įveryday he started from zero and repeated the same thing over and over again never getting anywhere new in life. Most physicians and dentists are in these categories as you can see from the pictures above that they mainly trade their time for money. They’re either employees or are self-employed. Kiyosaki claims that most people are on the left side or the “ poor side” of the quadrant. This will become important later on when we take a look at the four categories. The E and S are paired together on the left side, and B and I are on the right. Next, the Robert Kiyosaki Cashflow Quadrant is split vertically into two halves. Let’s dig into exactly what the cashflow quadrant is all about.įirst, the letters represent a type of worker (I’ll explain what each entails in more detail shortly):
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