The cash flow quadrant depicts different sources of income generation. These can be classified into four major categories abbreviated as E,S,B and I which stands for Employee, Self Employee , Business owner and Investor respectively. This concept was given by a man who is known as “Global Financial Guru” named Mr. Robert T Kiyosaki in his book Rich Dad Poor Dad which is considered one of the Amazon’s best-selling book globally. It is a powerful concept and a roadmap to understand how one can achieve financial freedom.


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1)Employee –

An employee is a person who has a job and a owns a source of active income. Active income means
one get paid when they work actively on regular basis but whenever you stop working the money
flow stops as well.
E.g., A Doctor working on a Government Hospital is an Employee. The biggest pro of being an
employee is one has a stable income on regular basis if they work regularly but there is limited
growth in terms of money. The income is not in your control, the organization controls it. Secondly,
Time freedom, financial freedom and security is capricious.
2)Self-Employee –
One who owns a job or small business. For e.g. A doctor running his own clinic, A teacher opening
their own coaching center, A shopkeeper running his own shop etc. They are also dependent on
active income but they have more control than an Employee. The income too stops when they stop
working or any turnover is not generated.

Decoding E and S (Active Income) –

It’s shocking that according to the author Robert T Kiyosaki around 95% of the population resides on
E and S category but it generates only 5% of income which is active income. It can be also termed as
Bucket carrying Profession – If your job is gone the money is gone from the next day. There is a large
amount of competition in both the fields with little scope of growth.

3)Business Owner –

The B quadrant can be considered as the second-best source of income. B stands for Business
owners. This category may require little or no investment but may earn you multi-millions in a single
month. Anyone can grow in this field if they learn and implement skills and Time leverage needed to
run their business. You own a system and people work for you. A successful business owner is
financially stable, spare time and has passive income.

The concept of Time leverage –

Time leverage refers to the strategic use of tools, systems, techniques, and resources to
maximize the output and results achieved within a given amount of time. It involves making
conscious choices to optimize tasks and processes, allowing individuals to accomplish more
with less effort and time.
Example –
An employee works 8hrs for an organization on daily basis and achieves a salary of Rs.25,000
in a month but an organization recruits and breaks the cycle of 24 hours.
1 person * 8hrs = Rs.25,000
1000 persons*8hrs*25,000 =Rs.25,000,000 (Average Turnover of an owner)
The live example of a business owner are Mr. Ratan Tata from Tata Group of Companies,
Dhiru Bhai Ambani from Reliance Industries, Mark Zuckerberg for Facebook. They expanded
their network through skills and time leverage which resulted in their unimaginable
networth. In the 21st century even a common man can slowly switch to B category to gain
financial and time freedom through Micro-franchise, Networking etc. for achieving Passive
income (less efforts or no efforts but more money).
4)InvestorA person who makes money by investing money. According to the author it is the best source of
income where a person doesn’t need to give any efforts but has financial and time freedom as you
make money work for you.

Decoding B and I (Passive Income)-

Here, the data changes completely ,5% of the global population owning 95% of the wealth.
Shocking but true. When you build a pipeline which brings water to your home life becomes more
easy with less stress along with security.
ConclusionEvery quadrant has its own importance according to a person’s need and everybody needs more
money as its 21st century (the era of Artificial Intelligence). Therefore, an individual must be eager to
learn skills and must know the concept of Time leverage so that he is not replaced and lose his work.
A common man deserves a regular source of income which is great in respect to position, power and
active income but also a future security. Therefore, the people in this current decade also must
understand the value of passive income through genuine sources or platform.
Written by –
Ms. Bidisha Roy
Assistant Professor
Department of Biotechnology

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