Which quadrant do you belong to ?

[LearningMan]

I picked up a Robert Kyosaki book ( ie- Cashflow Quadrant ) yesterday from our home library and was once again re-visiting the famous Cashflow Quadrant.

I am just curious to know which quadrant forum members think they fall into ?

 

[The Y-man]

I put employee - as that is what I still identify myself as (if you ask for my occupation, I will quote my Employment position)

However, it just occured to me that the greatest portion of income comes from self-employment.....

Cheers,

The Y-man

 

[Rolf Latham]

S for

Psychotic

working hard to get to the B

ta
rolf

 

[MichaelW]

LearningMan,

How do I tick "all of the above"...

I guess if I look at the relative weightings of my income streams then I'd have to say I'm still predominately an employee, but I do have a company now that is doing my development and I am still actively investing in both property and shares.

Once my property development gets underway I think the business owner category will deliver more profits than my salaried income.

Cheers,
Michael.

 

[LearningMan]

Michael - Robert K suggests shifting to B & I quadrants. I assume this is for main income streams.

I also consider myself in the the ''E'' quadrant for now. My IP and MF investments are growing nicely and I hope to be in the ''I'' quadrant within the next 2 years.

All good fun !

 

[rj]

Im actively involved in B and I at the moment - although I still need a J.O.B. so I guess Im still stuck there as well.

RJ

 

[Aceyducey]

All of the above.

Cheers,

Aceyducey

 

[lizzie]

all but the "e". i consider my investing my self employe (s) business (b), which operates and "i".

as the b's aren't bringing a positive cashflow in total at the moment i could also be none.

i like to think i'm an i, but honestly i think i'm probably an s at the moment.

 

[alexlee]

E&I. Just a guy who has a day job and invests on the side.

 

[Jamie]

How do I tick "all of the above"...

Im actively involved in B and I at the moment - although I still need a J.O.B. so I guess Im still stuck there as well.
RJ

If you read Kiyosaki's Cashflow Quadrant, his point was that there is no "all of the above":

To be in the B or I quadrants, it isn't enough to just own an investment property or run a business - the business or investments must be self sustaining without your active input.

According to Kiyosaki, if you own a business that requires your physical or mental exertion to make money, then you're self employed. If you invest in property but require a salaried job to get the loan, then you're an employee. The fact that you run a business doesnt put you in the business quadrant, nor does owning an investment property make you an investor.

I think Kiyosaki's point was that to reach the B and I quadrants, you must have achieved a level of investing that provides a truly passive income, or run a business that makes you money whether you are involved or not.

Please note these are not my opinions or beliefs - just some background on exactly what it is I think he was trying to say.

Jamie.

Heres a pic of what he was talking about:

 

[Peter Parker]

E & I

E puts food on the table and is helpful when applying for loans.

I provides capital growth. Although it produces as much gross income as E close to 100% of it goes onto repayments/holding costs so doesn't contribute to living costs.

Each quadrant is pretty self-contained, though there is a small trickle from E to I (savings & superannuation).

If -ve geared IPs are purchased and these need to be propped up this trickle will become a torrent. But eventually it will reverse and strengthen the other way.

 

[LearningMan]

LearningMan,

How do I tick "all of the above"...

I guess if I look at the relative weightings of my income streams then I'd have to say I'm still predominately an employee, but I do have a company now that is doing my development and I am still actively investing in both property and shares.

Once my property development gets underway I think the business owner category will deliver more profits than my salaried income.

Cheers,
Michael.

Michael, how may I contact you via email ?

 

[Xenia]

I and S at the moment.
I'm working on being a B

 

[MichaelW]

If you read Kiyosaki's Cashflow Quadrant, his point was that there is no "all of the above":

To be in the B or I quadrants, it isn't enough to just own an investment property or run a business - the business or investments must be self sustaining without your active input.

Jamie,

OK, that makes me definately an "E" then, working on becoming an "I", but probably a few years away from truly passive investment income without my having to lift a finger exceeding current salaried income. But its the endstate goal I've set.

Cheers,
Michael.

 

[asdf]

Nice thread mate. Still very much an E and after coming back from a 2 month hol, am trying to find how I can get over to I and B quick fast!!

Those of you who are not an E, how much more interest margin do you have to pay to get your loans? And if/have you maxed out yet on the low and no-docs? Any plans to overcome that hurdle?

As an aside, I think ASIC recently dropped their incorporation fee to $400 and annual filing fee to about $250. Anyone confirm?

 

[Dazz]

Cashflow wise I'm an E....via an S.

Creating wealth wise I'm an I.

So, according to RK.....I suppose I'm an E with rubbish I's.....joy !!!!

 

[see_change]

I have no delusions ...

I'm in S.... . For most of the time I actually enjoy it

Though at the moment I'm putting the focus I've picked up through investing over the last few years into making it a more profitable S , with some other income generating employees.

I'd be curious to know how many of the people who placed themselves in B , could walk away from their Business and have it generate the same income that it does with them being there. That's the real aim of having a business according to RK .

See Change

 

[geoffw]

I'd be curious to know how many of the people who placed themselves in B , could walk away from their Business and have it generate the same income that it does with them being there. That's the real aim of having a business according to RK .

That was my original aim with a B. And there's no way I'll get there.

My B is now another capital growth thing, along with properties. With the addition that my equity is being increased much more rapidly than an IP, due to a 10 year P&I loan.

The growth is dependant on profit- whcih I have some sort of control over- much more than an IP. I can influence sales to some extent, and reduce running costs to another extent.

In an IP, I am totally dependant just on market rents.

 

[Rolf Latham]

Out of my entire client base and people I know well, there are really only 6 REAL "true" Bs

one with a huge IT business, one as franchisor of a good size franchise model, and 4 in mlm.............interesting seeing that I have about 500 people on the database that have "their own business".

Having your own business is "plebs" like me, we think we have it made, its not until we go away for 2 weeks and realise oh bugger, what have I done

ta
rolf

 

[Kennethkohsg]

Dear All ,

I am basically an "Investor" while at the same time trying to move over to "Business Owner" Quadrant.

Cheers,
Kenneth KOH