ESBI

The ESBI quadrant is defined in the book Rich Dad Poor Dad by Robert Kyosaki. E is for Employee, S for Self Employed, B for Business and I for Investor. Rich Dad claims that the highest return falls in the 2 right quadrant. And between B and I, there is pros an cons.

As an employee, one has to face the boss, boss's customers, deal with suppliers and contractors etc to get the monthly salary which is usually small in comparison.

As a self employed, one has to face customers, deal with suppliers and contractors, employee etc to make his earnings.

So to avoid having to face customers, report to a boss or deal with suppliers, the B and I quadrants are the way to go.

Being a business owner, one may need alot of cash to own businesses like Warren. However as an investor, one still need cash but not as much as a business owner. So think about which quadrant you want to build your future.


- Posted using BlogPress from my iPhone