Unlocking Wealth: Understanding the Cash Flow Quadrant

The cash flow quadrant summarized as follows. There's basically four quadrants that you'll find yourself in at any stage of your life. The first quadrant is you're an employee, which means that you have a job, okay? And the reality is you're at the mercy of an employer and you've got perceived comfort and certainty. So the second quadrant is self employment, which means you own a job, you trade time for money and that's where the vast majority of pts sit. And there's nothing wrong with that as long as you acknowledge that self employment or owning a job is all about cash flow and taking that cash flow to invest and turn into assets. Then the third quadrant is being a business owner which means you own a system and typically that system can one day be sold. And the last quadrant is an investor, which means you own assets and those assets become your employees. So the aim of the game is to get money in the investor quadrant, but the decision that you need to make as a self employed person or a business.