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Are you an Employee, a Self-Employed Contractor, a Business Owner, or an Investor? Or some combination them? If you want financial freedom, you should aim for owning a business and investing in assets rather than trading hours for dollars.
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This is the cash flow quadrant made popular by Robert Kiyosaki. E stands for Employee, S for Self-Employed, B for Business Owner, and I for Investor. Employees trade time for money. Self employed do the same. However, business owners leverage employees to make money and investor leverage their money to make money.
The left side quadrants value security, while the right side quadrants value freedom. One side is generally poorer, while the other side is generally richer.
If you’re looking to build wealth, and more importantly, achieve financial freedom, you need to stop trading hours for dollars. Build businesses, acquire real estate, and invest in assets. It’s the only way to quit the rat race.
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