Preamble

This book carries many references to the B-quadrant. This is the B-quadrant as defined by Robert Kiyosaki, first in his book Cashflow Quadrant. He assigns it to a ‘way of thinking’. He says there are 4 ways to live life as defined by our thinking.

The ‘E-quadrant’ is of the
‘Employee’ who has a job. The ‘S
quadrant’ is of self-employed
persons who have businesses or are
professionally engaged. Both these
quadrants operate on an exchange

of time for money… making the
person’s physical presence critical, while the work is done for someone else’s system. Income is generated ‘actively’ (when the person stops, income stops).

Then we have the right quadrants. The ‘B-quadrant’ where ‘Business owners’ own and operate a System. And the ‘Iquadrant’ where ‘Investors’ invest money in systems. In the right quadrants the system / money works for its people. Income for the people here is thus generated ‘passively’ (income does not stop even when the person is away). For example, as an author I could work in the S-quadrant, writing and selling my books. Or I could plug into the publishing ‘System’ and let a royalty income come to me.

Another example. McDonald’s is a System (B-quadrant) to make burgers and it probably sells more burgers in one city than all the hamburger stands (S-quadrant) put together all over the world. The System works for the McDonald’s owner and his income is ‘passive’. Contrast this with the burger stand owner who could even work 15 hours a day, but his income would always be ‘active’.

Now the question is, would most people prefer to have an active income or a passive income? Then why are most people (90%+) in the left quadrants? And why is most of the world’s wealth (90%+) controlled by the few in the right quadrants? The answer is Education. Most of us do not get educated by (or stay in the company of) B-quadrant people.

Why? Because we just don’t know that we can. We think we must earn and live our lives based on the education we received in school. The right quadrants are risky, we think.

This is, in fact, not true. On the contrary, since there are fewer people – and an abundance of wealth – on the right side, many people on the right are very willing to mentor people who choose to switch.

Robert Kiyosaki says, “Poor people (left quadrants) work; Rich people (right side) network.” Just like we learn to work, we need to learn to network. This is what makes successful network marketers exemplary B-quadrant people.

- - The B-quadrant stands for ‘abundance’ (as opposed to limiting beliefs) and ‘collaboration’ (as opposed to competition), as it holds more money and less people. The distribution ratio between the left and right quadrants is badly skewed today… but even as it moves from 90:10 to 80:20, the world will be impacted like no other social change. - - As long as you’re working for money, you’re in a rat race. Once you have a system work for you, you rise above it… that is life in the B-quadrant.