The Cashflow quadrant
A person who wants job security falls into the E or Employee Quadrant. A self-employed person falls into the S or solo and smart, the B stands for small business owner, and I stands for big business Investor. Rich Dad encouraged “Learn to build businesses and invest through businesses”.
The Tax Laws are different for all quadrants. The employed get taxed first then they get their income. The businesses are taxed after they spend, so they are taxed on the small amount left after expenditures are paid.
It took Rich Dad 20 years to pour a foundation of wealth by steadily growing businesses, from restaurant chains to stores and real estate. By the time his son Mike, the author’s best friend, was old enough to take on the job of running the family empire, they had cash in billions in several banks, and investments in a better part of Hawaii.
It takes a Choice to go down the path of the rich. It is a very personal decision to decide to forever be poor, middle class, or learn to grow businesses and become rich. The Choice is yours.
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