Hello, this is Todd and in this content, you will learn how to manage my money with financial intelligence. A super interesting concept that can have a very important impact on your life is the cash flow quadrants concept. Understanding these quadrants will allow you to understand, where you are today and where would be the most suitable quadrant. You should be to reach the long-awaited financial independence. The concept of quadrants simply makes a distinction in the way in which we generate income according to professional activity. The first time I came into contact with this concept was in Robert Kiyosaki’s book. The book called Financial Independence, The Rich Dad Guide, Well, like it or not, we all rank at least one of the four quadrants what are they is the quadrant of the employee, the self-employed of the investor and the entrepreneur. The ranking is determined? How the income is generated? Which quadrant are you in today? Do you know?
HOW TO MANAGE MY MONEY WITH FINANCIAL INTELLIGENCE
Well, we will now discuss the each one of above questions. The employee is the one who earns your money working for a business owner or the government as in the case of civil servants. The vast majority of people is in that situation. For the employee, involvement can be low, medium or even high everything will depend on your hierarchical level within the organization or company. We know that higher positions tend to demand more responsibilities. The employee’s limitations are tied to the figure of the boss or the employer because in the end, who decides. If the employee will grow in the company is the boss or the owner of the company and it is also worth remembering that the employee will never earn more than the business owner. The source of your income comes from your own work. So in general it is possible to state that whoever is in this quadrant in the employee’s quadrant.
The more successful in theory more money, but less free time. The self-employed the freelancer is a professional who makes money through your own work. The example of the self-employed professional that we can mention are the doctors lawyers, dentists, among others. For the self-employed person, work involvement is high why every effort comes from your own personal dedication.
The main limitation of the growth of this type of professional. It’s your time because if he doesn’t work he has no income and the yield potential is limited to the question that a day has only 24 hours, right? And finally, like the employee, the source of his income is generated by your own work And for those who are in this quadrant, in the autonomous quadrant, the more successful in theory more money, but less free time. The entrepreneur or business owner he makes money by making others work for him. They are the business owners from micro and small, like a corner store, say even large companies like multinationals.
Read also: Is an entrepreneurial profile fundamental to having your own business?
For a business owner the involvement of work can be high because he will make the vast majority of the company’s strategic decisions. The limitations of the entrepreneur are few, because the entrepreneur, in a certain aspect. He has a range a variety of performance possibilities, that is, it can follow several paths. In addition, it is worth remembering that depending on the stage of the company, the entrepreneur may not be present at the company to continue making money. In that case your involvement can be quite low and the earning potential of the entrepreneur is unlimited because the source of your income comes from your own work together with work or labor of other employees, other people.
It is possible to say that for those who are in this quadrant that the more successful more money and if possible also more free time. Now we have reached the last quadrant to speak which is the investor quadrant. The investor makes money from the money that is, he makes money work for him. An example of this is investments in shares, in public securities in investment funds in real estate and other things more. For the investor, the involvement of employees is low, that is, the investor does not need to get his hands dirty. The limitations are also few because in this case the investor has many investment possibilities in different area.s
The investment potential is limited to the volume of capital invested and the nature of the investment, i-e each investment has its characteristics specific profitability characteristics and also risk. As to the origin of the investor’s income, we can say that it comes from own money work. For those in this quadrant, it is possible to state that the more successful, that is, the more investment success you will have more money and also more free time. The most fascinating thing about the quadrants concept is to understand it doesn’t matter which quadrant.
You are in today, if you seek to achieve a freer life with more financial plan freedom with more time for you, for your family. You too may be in the investor’s quadrant is the easiest quadrant that anyone can be and has the power to generate income, generate wealth making money work for you.