The Cashflow Quadrant

WHAT IS THE CASHFLOW QUADRANT?

WHICH QUADRANT DO YOU GENERATE YOUR INCOME FROM?

The CASHFLOW Quadrant represents the different methods by which income or money is generated. First group is an employee which is earns money working for someone else or a company. The second are Self-employed people earn money working for themselves, such as doctor. A business owner owns a business that generates money, and investors earn money from their various investments-in other words, money generating more money.

Different methods of income generation require different frames of mind, different technical skills, different educational paths, and different types of people. Different people are attracted to different quadrants.

While money is all the same, the way it is earned can be vastly different. If you begin to look at the four different labels for each quadrant, you might want to ask yourself, "Which quadrant do you generate the majority of your income from?"

Each quadrant is different. To generate income from different quadrants requires different skills and a different personality, even if the person found in each quadrant is the same. Changing from quadrant to quadrant is like playing golf in the morning and then attending the ballet at night.

Yet, regardless of what we "do" professionally, we can still work in all four quadrants. For example, a medical doctor could choose to earn income as an "E," an employee, and join the staff of a large hospital, or work for the government in the public-health service, or become a military doctor, or join the staff of an insurance company needing a doctor on its staff.