Episode 75: Cash Flow Quadrant Recap


In this opportunity, I will do a recap of the cashflow quadrant. I’ve spoken about this many, many times, but it’s really important that you understand the quadrant. There is a book that was written by Mr. Robert Kiyosaki called the Cashflow Quadrant. And basically it’s just a quadrant it’s four squares with a letter in each square: E, S, B and I.

So the E is for an employee. The S is for a self-employed person. The B is for a business owner and the I is for an investor.

Why is this so important?

Well, primarily because the people on the left side of the quadrant could be paying an excess of 50% of their money in taxes. For every dollar that you earn, 50% of it could be going away to taxes. Especially if you live in California, California is one of the highest tax states in the union.

I live in California. But fortunately, I pay no taxes legally.
Why? Because I am on the right side of the quadrant!!!

The right side of the quadrant is what’s called a business owner or an investor. That would be me. I own many businesses, and I am a very active investor. Because of that. I am rewarded by doing what the Government wants me to do, and that’s providing the jobs in the housing. I actually make my money just like our amazing President, Mr. Donald Trump. The reason why he actually gives his salary back as the president is because we hate that kind of money. We don’t like any money on this side of the quadrant. Why? Because it’s the highest taxed.

Let’s just talk about the year in tax forms that you get with these types of income. So on the left side of the quadrant, as an employee, you’re probably getting a W-2 or as an ex-employee, lets you say the independent consultant, maybe a ballplayer sports professional or entertainer, you may be getting what’s called a 1099. Those are attorneys, the doctors, the let’s just say sports professionals, the independent consultants, they are the S people, right, the E and the S people.

So between federal state and payroll taxes, they give you paying over 50% of their money to taxes. And if you’re paying 50% of your money in taxes, another 40% of your money in housing that’s only 10% left. So instead of clipping coupons, it’s best for you to work to get to the right side of the quadrant as expeditiously as possible.

How do you do that?

Basically, just do the 10 steps that are in my book, Escape the Madness: The 10 steps to Get Out of The Rat Race, and you could do it really quickly because money has been free for 10 years.

On the right side of the quadrant, be that a business owner or an investor, which is where I am and where you could strive to go, if you so choose, you can actually pay zero to 20% of your money to taxes. Guess what our amazing president did for us. He reduced corporate taxes to 21%. Isn’t that wonderful before that, I think it was like 39%.

So that’s not a clue as to what you should be doing, then take it as a clue right now. I don’t really care if you like President Trump or not, that is not my concern. But if you want to be able to get yourself to pay less taxes and stop asking for his tax returns, and our impeachment, then move to the right side of the quadrant as fast as possible. Yeah, you can be what we are a business owner and are an investor and be able to generate money, actually tax-free and make an earn a lot more by partnering with the government. Now, I must admit, I didn’t know this either. Because I went to school. I was told to go to school, get a job and work until you’re sixty-five or whatever.

It’s time for you to stop the brainwashing!!!

Why would you go and learn how to earn money to give 50% of it away?

Lord knows it doesn’t go to any good purpose. It only goes to incompetent bureaucrats that are running the federal government, state and local government. So why would you want to do that I would never want those idiots wasting $1 of my hard-earned money. And the way to do that is by partnering with the government by doing what they want me to do and that’s provide jobs and housing on the right side of the quadrant.

So basically, it is your job to work really quickly to move from the left side to the right side. And how do you do that? Well, that’s in my book, Escape The Madness: The 10 Steps to Get Out of The Rat Race.

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