The CASHFLOW Quadrant, is a concept developed by Robert Kiyosaki, the author of 'Rich Dad, Poor Dad'.The letters in Cash flow Quadrant are E,B,S,and I.It shows the potential of wealth creation among people with different work profile.
The EBSI letters are as follows.
E: Employee – Working for someone else.He earn a fixed salary per month.There are certain limits for the income potential of an employee.
S: Self-employed – Self employed person doesn't have a boss.He have freedom.But,income is depended upon working time.
B: Business owner – Business owners make money with a sound business set up.He utilise other's time,money and sills to make money.
I: Investor – Investor focus on various passive income opportunities.Money work for them,without active involvement.They invest in real estate,equities,precious metals,art etc.
As per Kiyosaki's words, an employee or self employed person may never accumulate wealth. But,Business Owners and investors create wealth and attain financial freedom.
Kiyosaki point out four major ways to accumulate wealth.These are:
2. Real Estate
3. Investments in financial markets.eg:stocks, bonds, funds etc.
4. Commodities such as Gold, silver and other metals.
A common man should aware of this fact,if he want to create more money and wealth.Anybody can become a business owner or investor over a period of time with small and regular investments.