Understanding the 4 quadrants in making money

in LeoFinance3 days ago

Everyone wants to make money and become rich. Some people want to make money to cover their basic needs in life, and some people have different dreams. Based on our dreams, we might need the money required to fulfill them. There are four quadrants. We can categorize the people who make money into four quadrants. In this article, we are going to see the four quadrants and which one is the best quadrant to make money and fulfil our dreams.

E - Employee

Most people are in this quadrant, where they go for a job and earn money. This is common, and some people are satisfied being in this quadrant and continue to do so as long as they earn enough. There are many successful people just from this quadrant alone.

S - Self Employed

When people want to do something different than being just an employee, here comes the professionals like Doctors or Lawers or other self employed professionals who have their own profession and make money from that. They are their own boss and they decide to work whenever they want and they have some previlages and freedom in their life.

B - Business

This is the interesting quadrant for the regular people. This is where most of the work is not done by an individual but instead by other people in the business and money is earned. For bigger dreams, business is good because it is a collective earning and profits can be very good. Based on the number of employees we have and the type of business we do, revenue can happen.

I - Investor

Last quadrant is the investor. These are the people who pick the right opportunity and do the investment and grab a good share of profit from that investment. In this quadrant, people don't even have to be an employee, or professional or a businessman but they can still make nice money by doing the right investment.

Stay in the right quadrant

If we do some research work, we will be able to understand that 80 percent of the money in this world is in B and I. For someone who is getting started with making money from alternative sources can have a look at this and transition their life from their current quadrant to the right quadrant. Most of people start in the E quadrant and when they wish to transition to B or I, they have to first be a little stable.

It is better to switch to the S quadrant and then have an establishment there and then move to the B and I quadrants. Some people comfortably stay in the E quadrant and still be investors. That's also a good strategy. They gradually become a good investor and make enough money before they retire and have enough cash flow for their retired life. This is also a good thing. Some people who start thinking about these things at a very early stage transition from the E quadrant to the S quadrant and then to the B quadrant and then finally end up in the I quadrant. Do a self-analysis to understand in which quadrant you are right now and start doing the transition.


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I learned a lot from this post. Knowing about the four quadrants of earning money is very important. Thank you for the post.

Wow! Didn't know about this up until now. Thanks for the information. A person can be E, B and I, I think.

Very educative. Thanks for sharing

Dope read…the 4 quadrants always remind me that u can’t be free until u separate time from ur money

S depends if it's worth it compared to E, more taxes, no paid holidays, no paid sickness...

This is a very interesting topic. But I also read that to be an investor you have to be a good Employee and set aside part of the salary, build capital so that you can invest wisely, Unless one inherits a good amount of money so that the investment will get enough interest for a living.

Most people start as employees, but if they want to build wealth, they should aim to move into business or investing. The idea is to work smart, not just work hard.

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I really like self-employment, I want to do my own work and stay away from the boss and unreasonable abuse.

I am really having eyes for the B and I. Without doubts, diligence will be needed. Thanks for this reminder

This is a discovery
I didn’t know this earlier
Thanks

A lot of people did not really know how money works and so they just want to get the money without not knowing how it works