Where are you in the Cash Flow Quadrant?

Robert Kiyosaki's book "Rich Dad, Poor Dad" may be one of the most controversial books in personal finance but it is an absolute staple. I had a mentor tell me that regardless about how I felt about it, I had to read it. So, I picked up the book and loved it. 

In "Rich Dad, Poor Dad" Robert references his real dad and his rich "dad" who was actually his friend's father. The importance of the book highlights the differences on how each of us think about money and how your mindset about money can be your greatest asset or biggest downfall. Do you use money as a tool to grow or as a finite amount that can only be spent? 

One of the most useful tools that Kiyosaki references is the Cash Flow Quadrant. This quadrant illustrates the different ways that we all make money. It shows how the rich get richer and the poor get poorer because the rich are utilizing tools that the poor are not. 

As you can see, 95% of people trade their time for money. If you don't work - you don't get paid. Only 5% of people are business owners or investors that are able to make money without physically doing something. 

Passive income is the way to sustain and grow your life. Are you making efforts to become a business owner or investor or are you stuck at employee and self-employed? 

Learn how to make money passively instead of working yourself silly for every dime you make.