In this chapter, we will take a closer look at the key differences between each quadrant of the CASHFLOW Quadrant.
Robert Kiyosaki often uses the phrase, “Hear their words; feel their souls,” to emphasize that the language people use reflects their deeper values, beliefs, and motivations. He suggests that a person’s attitude toward money and work can often reveal which quadrant they belong to.
The E (Employee)
According to Kiyosaki, employees are typically individuals who prioritize security and stability. Words like “job security,” “benefits,” and “retirement plan” often reflect this mindset.
People in the E quadrant generally prefer predictability in their financial lives. They tend to avoid uncertainty and feel more comfortable with fixed salaries, structured roles, and clearly defined benefits. For them, peace of mind often comes from financial stability rather than high risk or uncertain rewards.
Employees exchange their time and skills for a consistent income. This includes everyone from entry-level workers to top executives—what defines them is not their position, but the fact that they work under a contract and receive compensation from an employer.
The S (Self-Employed)
Kiyosaki describes self-employed individuals as people who prefer independence and control over their work. He refers to them as “do-it-yourselfers.”
Unlike employees who seek security, those in the S quadrant tend to respond to uncertainty by taking full responsibility for their outcomes. They prefer relying on their own abilities rather than depending on a boss or organization.
People in this group believe that effort and skill should directly determine income. They often value autonomy highly and dislike having others decide their worth or work methods. This mindset is common among professionals such as doctors, lawyers, consultants, electricians, artists, real estate agents, and small business owners.
Many self-employed individuals are perfectionists who take pride in their expertise, often believing that no one else can perform their work at the same level. This strong commitment to quality helps them succeed, but it can also make delegation difficult.
As a result, they may end up overworked, since they continue handling most tasks themselves. Even when they train others, those individuals may eventually leave to start their own ventures.
For Kiyosaki, the defining trait of the S quadrant is not the occupation itself, but the desire for independence, control, and freedom in how work is done.
Stay tuned to dive into the other two quadrants.
