You own a job. You are the system, and if you stop working, income stops.
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You have a job. You trade time for a salary and often value security above all else. S (Self-Employed/Specialist): You own a job
The right side of the quadrant focuses on freedom and leverage. Income is generated by systems or investments, continuing even when you are not actively working. You have a job
The cash flow quadrant is a diagram that categorizes people into four quadrants based on their financial characteristics. The quadrants are:
The framework is divided into two sides: the left, which focuses on security and active work, and the right, which focuses on freedom and leverage. E (Employee) : Values job security and steady benefits.
In the latter half of the book, Kiyosaki outlines a practical guide to making the shift:
