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The Business of the 21st Century Summary

Image The Business of the 21st Century

Simple Short Summary: ESBI quadrant, which decides how your retirement will be when you stop working, shows four kinds of folk starting from Employee, Self-employee, Business, and Investor.

Reading Time: 3 minutes

The Business of the 21st Century, One Key Idea, Summary

As you realize early, you never earn enough cash to sit back and relax unless you belong to the business and investor quadrant.

Earning money costs your freedom while earning passively you can sit back and relax.

Thus, start finding sources to generate passive income because it does not require your presence.

Do you use your cash to create more assets or liabilities?

You should save money, spend less, and should look for opportunities to create passive income.

With the right mindset towards job, life, and money, you able to achieve financial freedom. To achieve financial freedom, invest in the right bond or stock and stop working for others.

Nowadays, ample opportunities present in the market think from an investor’s point of view.

The ESBI Quadrant of Robert Kiyosaki

The ESBI quadrant of Robert Kiyosaki shows four categories: employees, self-employee, big business owners, and investors.

The Employee Quadrant:

The E-quadrant belongs to an employee who works for a company to receive a paycheck. Working for a company, you collect enough cash, but once you stop working, your income stops completely.

Thus, you change company to get a slightly better raise however, it appears better to have a job than being unemployed known as zero-quadrant.

To earn cash, you work for a company, plan your future and run your life however, the chance shows you enter in rat race. In rat race, you work diligently, earn cash, pay taxes, and buy more.

However, an employee drives by the fear of losing a job because it is necessary for its survival. If he lose his job, he soon enters into financial troubles.

Sadly, folk follows the rat race pattern in society.

The Self-employed Quadrant:

This quadrant belongs to self-employee folk who works of its own including freelancers and small startups.

You decide to become your boss and start your small business, but starting the business consumes all your spare time, and even now taking a day off means no earning. Even you are liable for your problems because you are the boss.

You work hard, and your efforts pay result. You start your business and migrate yourself from the E to S quadrant. Hooray!

Still, your income stops once you stop working, and even you pay taxes to the government, and in tough times you borrow money to run your small business.

To gain financial freedom, employees and self-employees invest their cash and become investors.

The Business Quadrant:

With the business skills and marketing knowledge, you breed your business and enter into the B quadrant.

In the business quadrant, company workers work for you. You hire intelligent folks, control production, and find a creative way to pay taxes and grow your business.

Once your business starts growing, you hire even more experienced and expert folk to enlarge your business. The business cash flow considers as passive income because your presence is optional.

Even if you retire, your income keeps growing.

The Investor Quadrant:

In the last quadrant, your money works for you.

When your business starts generating cash, you should invest your money and become an investor.

In fact, Investing in a fruitful business, the business generates extra cash, and with time, you achieve your goals and gain financial freedom.

Hence, become an investor and stop working 9-5, but also gain knowledge about investing, otherwise, you lose your money.

Favorite Quote From The Book

“Wealth is the product of man’s capacity to think.” ― Robert T. Kiyosaki

“It’s not about income, it’s about assets that generate income.” ― Robert T. Kiyosaki

“Your mind is infinite, it’s your doubts that are limiting.” ― Robert T. Kiyosaki

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