The Robert Kiyosaki Cash Flow QuadrantThe Robert Kiyosaki cash flow quadrant consists of: Employees, Self employed/Specialists, Business owners, and Investors. 
The first part of the Robert Kiyosaki cash flow quadrant focuses on the employee. The employee is either paid hourly or on a salary. Employees exchange their time to perform a certain job for an amount of pay.
Now the companies that hire employees want to pay them as little as possible. The reason is that employees usually are the company's largest expense.
When you exchange your time for money, there is only so much money you can make. There are only 24 hours in a day. And as long as you exchange your time for money you will ultimately remain a slave to the clock.
For some people, being an employee is a "safe bet." Someone tells you what to do, when to do it, and how to do it. Does that sound like freedom to you?
You read the Robert Kiyosaki cash flow quadrant's left side first and then you read the right side.
The division of the Robert Kiyosaki cash flow quadrant is the vertical center mark. So the employee and specialist/self employed are grouped together and the business owner and investor are grouped together.
The second part of Robert Kiyosaki's cash flow quadrant is the specialist/self employed. These people usually end up working more hours for a nice salary. They are using 100% of their own efforts to create income. This still makes them a slave to the clock.
Their income is limited because they only have 24 hours in a day. They aren't leveraging their time or money so earnings are confined to a certain amount of time.
So being a doctor or a lawyer still puts you in the same boat with the employee. Yes they make a lot of money, but they still are exchanging their time for money.
The educational system in this country teaches people to become employees and specialists instead of business owners and investors.
And isn't time what it's all about? You find yourself at work looking at the clock wishing it was time to leave. Now think about that. The average person must work 40-45 years before they can retire.
So you have spent 40-45 years wishing your life away to get to your weekends, holidays, vacation, etc.
Over 75% of your time is spent for work. You have to get ready for work, drive to work, work, and then drive back home from work.
No wonder people take the "safe bet."
The third part of Robert Kiyosaki's cash flow quadrant is about the business owner. This mind set is totally different from the previous two discussed. As a business owner you are leveraging your time and money.
Business owners hire people to do jobs that they can't do. Not meaning physically, but because they are trying to run a business. So you hire people to do the dirty work.
This will allow the business owner, you, to do more with your time. Think of the company your work for. Regardless of how little or big the company is, they hired you to do their dirty work.
And as a business owner if you have employees, you want to minimize cost, so you pay the employee as little as you can.
The fourth and final part of Robert Kiyosaki's cash flow quadrant is the investor. The investor uses money as their leverage to generate revenue. Investors look for business opportunities, stocks, bonds, hedge funds, etc. that will produce high returns.
This approach is using your business IQ to increase your net worth. Since you are not bound to a clock to make money, the business owner and investor can make money in their sleep or on vacation.
The most important similarity about the investor and business owner is leverage. Without leverage, you can only make so much money on your own efforts. So I ask you, would you rather make money on 100% of your own efforts or 1% of 100 people's effort?
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