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In this episode Joel and Antonia talk about the Cashflow Quadrant model of making money developed by Robert Kiyosaki, author of Rich Dad, Poor Dad.

In this podcast on the Cashflow Quadrant you’ll find:

  • The Cashflow quadrant was developed by Robert Kiyosaki.
  • Most people walk through different parts of the cashflow quadrant.
  • Visualize a quadrant, draw four boxes.
  • Top Left Box = E (Employee)
  • Top Right = B (Business)
  • Bottom Left = S (Self-Employed)
  • Bottom Right = I (Investor)


  • Employee. In Robert’s theory, we all typically start our lives at the top left of the quadrant. We literally trade our lives and hours with a form of compensation from an employer. We start working for someone else based on giving the skillset to the employer.
  • Self Employed Quadrant – You own a job, you are the business, and whatever you offer (services and skills) is coming from you.
  • Business Owner – You employ more people, scaling up to the leadership role. Does not require the owner’s presence. A one degree of separation from being self-employed.
  • Investor – Create and buy own investments.
  • Looking at this model, which one of these quadrants are you in? Where are you at? How does it affect your relationship with money?
  • All of these levels are mindsets. When you’re self-employed, you see a direct correlation of your efforts vs the money you earn.
  • Both being an employee and self-employed are the highest tax positions to be in, which means you are going to pay the most.
  • What’s the scaling difference that happens when you level-up from being self-employed to becoming a business owner? When you begin investing, you start seeing business as complete assets.
  • Warren Buffett and Charlie Munger are one of the wealthiest people who are investors.
  • It’s not about money, it’s about value.
  • The wealthiest people don’t think in terms of time and money, they think about systems and value creation. True wealth is not about the salary you draw, but it’s how about the systems and business you’re investing and the value that you create.
  • You may run into one of the quadrants and feel like it’s not comfortable for you. However, even if it doesn’t come natural to you, it’ just a phase where you can learn so you can graduate to stage where it’s natural for you.
  • The model helps you to understand how people can help in your business.
  • We all possess all these great components in our personality type that help in wealth generation.
  • If you are having challenges getting up to the next quadrant, look for someone who can help you, preferably someone with a different personality type.
  • You might just love being self-employed, and you don’t want to scale, maybe you’re comfortable in being an employee, and that’s fine.
  • If you want to make a big impact, if you want to be a game changer, your relationship needs to changes to how you’re engaging with value.
  • When you want to make and bring value to the world, you need to get out of the employee mentality.
  • What value are you going to create for the world? Where are you at in the cashflow quadrant right now? What do you think are some of the powerful lesson that you need in order to move to the next quadrant?
  • Affluence brings influence. If we have a more sophisticated relationship with money and value, we will make smarter choices for the society. We will feel more empowered as people so that we can make starter choices for the society.
  • Whatever you do, when you bring value, you will be rewarded back for it.

Things we reference in this podcast:

The Cashflow Quadrant

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  • Joel Mark Witt
    • Joel Mark Witt
    • April 2, 2015 at 12:29 am

    Thanks Jonathan for the comment.

  • Jonathan
    • Jonathan
    • April 1, 2015 at 10:36 pm

    Creating value in the world, BAAAD AAASSS!

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