What are the Differences between the Employee and the Business quadrant

There are a number of fundamental differences between working in the E (or employee) quadrant and the B (or business) quadrant. These terms were coined by Robert T. Kiyosaki when he talked about the differences of generating your income from the different "quadrants". Actually there are four seperate quadrants all together, but only these two concern us here. The main difference is rather obvious: An employee earns money by having a job and working for someone else. A business owner owns a business that generates money or "cash flow". Many people are satisfied being employees all their lives while other people would not work for someone else under any circumstances.


As an employee, even a self-employed one, money is normally only earned as long as you are physically present. If you are not literally at work, where does your income come from? Business owners, however, including people who have their own home business, can earn money even if they are traveling the world, or spending quality time with their families. This is because they have something that turns work into wealth, and that thing is LEVERAGE. But we are rarely taught how to obtain leverage in this society. As a general rule, we were condition to go to school and find a job, trading our valuable time for someone elses dollars. But you need to do more than that to really gain leverage. By owning and running your own Home Business, instead of being dependent on a paycheck and the illusion of job security, you gain control of your cash flow and ultimately how your time is spent. That is real freedom. When you own your own business, you own the entire business system, instead of being part of the system.