Cashflow Quadrant

This is by far one of the most important things any Filipino needs to learn in their lifetime or anyone for that matter.  The Casflow Quadrant.

The Cashflow Quadrant was introduced by Robert Kiyosaki best known for his book Rich Dad Poor Dad.  He also wrote the book Cashflow Quadrant that explains it more in detail.  The Cashflow Quadrant is fairly simple.  If you imagine a plus (+) sign, the upper left Quadrant is an E, the bottom left  is an S, the upper right Quadrant is a B, then an I.

He explains that there are four kinds of people who make up the world of business: E for Employees, S for Self-Employed, B for Big Business like Microsoft, Intel, or Apple, and I for Investors like Warren Buffet.  This is what makes the Cashflow Quadrant.

On the left side of the Quadrant that make up Employees and Self Employed, 90% of the world's population is either an employee or self-employed individuals but only contain 10% of the wealth.  How unfair is that.

On the right side of the Quadrants that make up Big Business and Investors, 10% of the world's population is either one of them and contain 90% of the world's wealth.

It seems that is more intelligent to be a B or an I person rather an E or an S.  However, it takes a lot of money to invest which is why many cannot invest.  And with a B, it takes Millions of Dollars to develop a B Quadrant Business and it has a 90% failure rate within the first 5 years and 90% failure rate within 5 years after that.  So it is so risky.

So how can the average individual ever create a B Quadrant Business and perhaps have enough money to become an I as well?  Economists, Robert Kiyosaki, Donald Trump and many others are strongly promoting Network Marketing to be an effective way for many Employees or self-employed to merge into the B Quadrant.

But there are many good and bad network marketing companies out there so  you do have to do your due diligence when choosing the right network marketing company for you.  Aside from that, network marketing like any other business takes effort to build and grow.  So it's not really a get rich quick scheme, though some network marketing companies market themselves as so.  Also do research on the products or service that they provide, because good products will make  your network marketing business thrive or die...