Richdads-CASHFLOW-Quadrant-

CASHFLOW Quadrant
An E works for the system.
An S is the system.
A B creates, owns, and controls the system.
An I invests money into the system.
The pattern rich dad was talking about was the pattern we naturally
gravitate to when it comes to money.
“When a person feels the need for money,” rich dad explained, “an
E will automatically look for a job, an S often will do something alone,
a B will create or buy a system that produces money, and an I will look
for an opportunity to invest in an asset that produces more money.”
Why It’s Hard to Change a Pattern
“The reason it’s hard to change a pattern is because money today is
essential for life. In the Agrarian Age, money wasn’t that important
because the land could provide food, shelter, warmth, and water
without money. Once we moved into cities during the Industrial Age,
money signified life itself. Today, even water costs money,” said rich dad.
He went on to explain that when you begin to move from, let’s say,
the E quadrant to the B quadrant, the part of you that is addicted to
being an E or afraid that life will end, begins to kick and fight back. It’s
like a drowning person beginning to fight for air. Or a starving man who
will eat anything to survive.
“It’s this internal battle that makes it so hard. The struggle between
who you no longer are and who you want to become is the problem,”
rich dad explained to me over the phone. “The part of you that still seeks
security is in a war with that part of you that wants freedom. Only you
can decide which will win. You will either build that business, or you’ll
go back to finding a job—forever.”
151