4 cashflow quadrants
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You still need to give your time in exchange for an income.
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If the business continues to run smoothly and provide you with an income, it’s truly a business if not, you’re in the self employed quadrant. But according to Kiyosaki the true definition of a business is one that can continue without you, while still providing you with an income. This is often incorrectly called ‘running your own business’. The quadrants are self explanatory, but it’s worth spending some time on the self-employed quadrant. One model that comes in handy when analysing the different ways in which people take control and provide an income for themselves is Robert Kiyosaki’s four cashflow quadrants. But because it relies on Lady Luck and other people whom you can’t control (who knows what surprises might be in that Will), these two recipes tend to flop. Winning the Lotto or inheriting are other ways to financial freedom. What other recipes are there for financial freedom? Robert Kiyosaki’s four cashflow quadrants In essence, you’re already financially free when you earn enough and you leap out of bed excited about your day. But there are also other recipes for financial freedom, like finding the work you love, work you never want to stop doing.
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Generally, the FIRE movement follows the recipe of living frugally and saving aggressively so that it’s possible to retire earlier than normal, leaving enough time to enjoy this freedom. There are no rules for how you choose to spend your time. Financial freedom could involve doing paid work, volunteering, or no work at all. The most common definition of ‘financial freedom’ is being able to live the life you want on your own terms. Financial freedom and the four cashflow quadrants By Lizelle Steyn