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"The ESBI"
The Cashflow Quadrant Concept
Income Strategies | Career Guidance | Resources For Employers & Employees

Robert Kiyosaki, renowned author of Rich Dad Poor Dad and numerous other books, developed the Cashflow Quadrant concept. Kiyosaki’s Cashflow Quadrant is sometimes referred to as "The ESBI." The ESBI is a very powerful tool that illustrates how the nature of one’s income can have a profound impact on one’s ability to accumulate wealth and achieve financial independence.

As an Employee, you are essentially trading time for money. Your income is predictable, which is the primary benefit of being an employee; however, the sky is not the limit because you are effectively limited by time. You can only work so many hours in a day. It should be emphasized that there is nothing wrong with being an employee if that is what is most appropriate for you.

As a Self Employed individual, you are still limited by time because there are only so many hours in a day that you can devote to revenue generating activities. Residual and passive income are possible; however, your income is no longer predictable.

As a Business Owner, you have successfully managed to created a system that makes money for you even when you personally are not working. Time is no longer a limitation because you are effectively utilizing additional people and resources to generate revenue. The sky is now the limit and you have time freedom.

As an Investor, your money is now working for you. There is risk associated with your investments, but you have achieved financial independence and time freedom.

Related Concepts

There are a number of related concepts that can be applied to the ESBI Cashflow Quadrant, which include, but are not limited to:

  • Time

  • Taxes

  • Debt
  • Linear Income vs. Leveraged Income

  • Linear Income vs. Residual Income

  • Active Income vs. Passive Income

The Big Question

The big question that many businesspeople ask is how to make the transition from being Self Employed to being a Business Owner. For most in business for themselves, that is typically the primary objective. The answer, in short, is to find a way to create a system that you can use to make money even when you personally are not actively engaged in revenue generating activities.

The way in which this is accomplished is different for every businessperson depending on one’s industry as well as the nature of one’s business. Creating a profitable system for any business involves assuming a certain amount of risk, and of course, there is no guarantee that any business will be successful. However, for those that successfully manage to complete the transition from being self employed to being a true business owner, the rewards can result in financial independence and time freedom.

For those who truly have the entrepreneurial spirit, be aware of the fact that you can spend
your time building someone else’s dream, or you can spend your time building your own.

Question: Feeling dissatisfied with your job or lost when it comes to your career?
Action Step: Do some self reflection!

The 4 List Exercise
What You Can Do Well & What You Enjoy Doing

Life is a journey, and at times, an unpredictable adventure. If you are feeling lost when it comes to your job or career, be aware of the fact that you are not alone. The global coronavirus pandemic left millions of people feeling lost and unsettled. In an effort to gain clarity, it can be very helpful to do an exercise in which you make four lists:

  1. Your Skills
  2. Your Talents
  3. Your Interests
  4. Your Passions

Skills vs. Talents:

Skills can be taught and skills can be learned. Skills can be developed through instruction, study, and practice. However, when it comes to our talents, these are our natural God given gifts and abilities with which we are born.

Interests vs. Passions:

Passions are those interests that exist on a much higher level. For some, their passions are why they get up in the morning. It is important to have passions in life, both inside and outside of the workplace.

Making these lists may involve some self-reflection, and if you are willing to invest the time necessary to do it, it can save you a lot of time, energy, and effort in the long run. This is because if you are able to identify that sweet spot where all four of these things overlap, then you will be able to substantially enhance the likelihood that you end up pursuing the most appropriate career path for you. This is very important because, as Americans, we spend such a substantial portion of our lives working. Therefore, if you do not truly love what you do, then it can really have a significant impact on your quality of life.

At the end of the day, if you can successfully manage to identify that sweet spot where your Skills, Talents, Interests,
and Passions overlap, then it is much more likely that you will not only love what you do, but also be successful at it.

So few people in this world can say that they truly love what they do, but if you can say that, then what you have is not merely be a job, but rather a fulfilling career that will more than likely bring you a substantial amount of personal satisfaction and enjoyment.

Question: Feeling dissatisfied with your job or lost when it comes to your career?
Action Step: Take an assessment and learn about yourself!

The Kolbe A Index Assessment

  • If you are feeling lost, this is a resource that you should definitely consider utilizing. It has helped so many both personally and professionally.

  • The Kolbe A Index Page


Question: Need some guidance regarding your next career move?
Action Step: Work with a Career

Career Coaching

Bob Kolf

Founder & Executive Director of Job Seekers' Garden Club of St. Louis
Career Coach

Question: Looking to take your career or your business to the next level?
Action Step: Work with a Soft Skills Mastery Expert!

Soft Skills Development

Every day that we wake up, we have an opportunity to learn something new, grow as individuals, and contribute something to society. This of course means that we
have to go out into the world and interact with others. The most successful individuals are those that have mastered the ability to interact and communicate effectively.

Bill Hurston, CPA

Soft Skills Mastery Expert | Soft Skills Academy


Question: Need some help starting a business?
Question: Want to take your business to the next level?
Action Step:
Work with a Business Coach!

Business Coaching

Matt Barbey

Business Coach | Time For Success

Date of Video: 10/27/2021

Helping You Transform Your Vision Into Your Reality

All entities listed are separate and unrelated to C.M. Carrillo Financial Advising.

All entities listed are separate and unrelated to Prosperity Wealth Management, Inc.

Prosperity Wealth Management, Inc. and C.M. Carrillo Financial Advising do not receive any compensation when individuals take an assessment offered by Kolbe Corp.

Prosperity Wealth Management, Inc. and C.M. Carrillo Financial Advising do not receive any compensation when individuals utilize the business coaching services of Matt Barbey and/or Time For Success.

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