TAKE A LOOK AT THE CASHFLOW QUADRANT – RHONDA SWAN
The CASHFLOW Quadrant is divided into four different types of people.
S= Self-Employed or Specialist in a Field
B= Big Business
So, a look at the quadrant on the left side is the E and S individuals. These guys pay out the most for their taxes and trade by the amount of money and time they put in.
On the other side are the B and I individuals. These guys pay the least in their taxes. They create and/or invest in assets that work to bring in money while they are sleeping, or out on vacation.
I believe that there is a dividing line between the two. One side is struggling to make it in our economy and the other is gaining profits hand over fist.
EMPLOYED AND SELF-EMPLOYED ARE STRUGGLING
In my opinion, it is the E and S individuals that are struggling the most. These are the employees and self-employed individuals that are having a hard time finding well paying jobs. Not only are the jobs scarce, but there hasn’t been a single year where the cost of living hasn’t raised significantly.
These guys only have their time to trade for a living, which puts them at a disadvantage. Time is not high demand.
BIG BUSINESSES AND INVESTORS ARE PROSPERING
However, those that fall into the B and I category are steadily becoming richer and richer. Big businesses sit on top of endless piles of cash and assets. Investors are able to pick the best of the best assets at low prices.
They have something that is of worth in our economy….money.
WHAT THE E AND S QUADRANT IS HOLDING OUT FOR
Those in the E and S quadrant are waiting for the day that the economy picks up and there are more jobs on the market. Even if that does happen, they are still at the mercy of their bosses to pay them well and keep them on staff.
Until the job market picks up, these individuals will continue to spiral down. They may not have the best chance once the market picks up either.
THOSE IN THE B AND I QUADRANT DO WELL NO MATTER THE CIRCUMSTANCES
You know that saying the rich just keep getting richer? Well, that is true of those that are in big business or investors. While the economy is down, they are buying up all the assets as low prices.
When the economy rises, they will continue to cash in on the all the investments they made. Thus, they get richer and richer.
WHAT SIDE OF THE QUADRANT DO YOU FALL ON?
If you are in the E and S side of the quadrant, are you ready to move over? If so, then it is time you put your focus in the right places. Here are some things you can do to get on the other side:
- Invest in your financial education
- Begin a side business
- Start investing for cash flow
This requires hard work, but we know you can do it. I don’t want to send you away without resources. If you want to see the blueprint of how we went from the E and S side to the B and I side, check out our blueprint here.