Where are you in the ESBI Quadrant?


One of the first eye openers for me is the Robert Kiyosaki’s Cashflow Quadrant. So far, it is the single and most powerful idea that I absorbed from Kiyosaki as it helped me improved my education on financial literacy.

There is no doubt that each one of us has interests in improving our financial situation. Before you can begin your journey to financial freedom, you need to figure out exactly where you are because if you don’t know where you are, you can’t know where you’re going. So, where are you in the ESBI Quadrant?

As a recap here are what the letters in each quadrant represent:

Employee: Employees earn income by working for other people.

Self-employed worker: Self-employed people earn income by working for themselves – they own their jobs.

Business owner: Business owners earn income from the businesses they own

Investor: Investors earn income from their investments – from money generating more money

Everyone is at least on one spot of the quadrant. Generally speaking, people in the B and I quadrants reach their financial goals more quickly than people in the E and S quadrants. The good news for you, if you inhabit the left side of the quadrant, is that you don’t have to be stuck there. You can move to the right side. Indeed, if you want to be financially free you have to move to the right side. Moving quadrants is a matter of choice and financial education.

Changing quadrants means altering who you are, how you think, and how you look at the world. The change is easier for some people than for others simply because some welcome change while others fight it.

Think about how you generate most of your income. In which quadrant do you primarily fall? Knowing the answer will help you chart your course into the future.

Where Did Robert’s Rich Dad & Poor Dad Fit In?Robert’s poor dad worked hard, but on the left side of the CASHFLOW Quadrant. By working hard, he got promoted and gained more responsibility, but as he climbed the ladder, although he earned a higher salary, he never had much to show for it beyond longer hours at work and higher tax bills.

 

Robert’s rich dad worked hard on the right side of the CASHFLOW Quadrant. He climbed his own ladder, and the higher he climbed, the more time he had for his family. When his business reaped profits, he expanded the business and simply hired more people to do the work. If his investments did well, he reinvested the money and made more money. Most importantly, even as he made more money than Robert’s poor dad, he paid even less in taxes due the advantages on the B & I side of the quadrant.

If you’re like most people, you’re on either the E or the S quadrant. But the simple fact that you are reading this blog entry means you’re contemplating becoming a B or an I. You’re getting ready to move beyond what you think is job security and toward financial freedom.

So where are you in the ESBI Quadrant? As for me, I’m still in the E-Employee Quadrant but I’m also doing the S-Self Employed Quadrant. Occasionally, when opportunity arises, I also shift to the right particularly in the I-Investor Quadrant for my money to work hard for me. This is through investments in UITFs, stocks, and mutual funds. When time comes, I would like to devote more of my time in the left quadrant to have more free time and achieve financial freedom.

Source: Robert Kiyosaki’s Coaching Program


Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

16 responses on “Where are you in the ESBI Quadrant?

  1. Hi,

    “Occasionally, when opportunity arises, I also shift to the left particularly in the I-Investor Quadrant for my money to work hard for me.”

    Sorry, but I thought it was worth pointing out. Did you mean right?

  2. Employee right now, with rakets/projects on the side. And yes, I want to be financially independent one day. I work hard and save hard…but ultimately as an army of one, it can be taxing.

    I heard one 60-year-old self-made rags-to-riches businessman say that businessmen “are born with the DNA of doing business, not made.” He also said that mentoring by an actual entrepreneur may be more important than business school. Any thoughts on this? 🙂

    • I have to agree with what Bellum Tan, the Ambassaor of Robert Kiyosaki’s Rich Dad to Asia told us when I attended the Rich Dad Event last week at Diamond Hotel:

      “Friends you hang out with will determine your future.”

      I think that even though a person is said to be born with the DNA of doing business, if he is not properly acquainted with the right people, then he won’t be successful. Definitely, mentors are very very important. It is crucial to a businessman’s success.

  3. Alas, I’m just an employee, but with multiple rental properties and private equity investments. It just takes time to change. Give me 10 years, and i’ll probably give up my day job.

    Kiyosaki’s principles are sound. What he should do is write a book on how to market yourself and become a millionaire!

  4. “Friends you hang out with will determine your future.”
    I have to agreed with this statement. You hang out with the rich, you will understand how the rich think and how they make money work hard for them instead of we working hard for money.

  5. first i thank to my god father robert sir ,i am from india , i realise my situation in the ESBI quadrant now i start my work to become businessmen and after invester sir ,u r my only inspirational motivator of my life.thank u so much of your guidence for the poverties.

  6. Unfortunately at the moment I am just an E. I am looking for ways to become a B and I am currently concerned about the I area – markets aren’t as safe as they used to be and returns are minimal!

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