Defining Success Using the Four Quadrants

The notion of success is different for each person. Some may say that success means getting rich, having a good reputation, or having a good family. It is indeed a versatile word, which is why it is tough to clearly define the meaning of success. To make it easier to define success, one would need to know where they would want to succeed. This is where the four-quadrant cashflow comes in to help us. 

Source: https://inspiredmoney.com.au/blog/the-cashflow-quadrant/

The quadrant can be separated into two parts; the right side of the cashflow quadrant represents financial freedom, while the left side represents active income. The common standard to be successful and what most people view as success are people who are successful in the left side of the quadrant. People who have high-paying jobs at reputable companies, people who are lawyers, and people who are doctors, are the types of people who would qualify as a successful person to most. 

However, it is also notable that a few people would choose the more untraditional path of success or the right side of the quadrant. In that quadrant, there are business owners and investors. Business owners are different from self-employed people or entrepreneurs. Business owners use money to recruit people who are smarter than they are to take care of their business. This means that they can leave their business and their business will still grow. 

Here is a summary of the four quadrants: 

• Employee

As its name suggests, this quadrant includes people who work for and are employed by other people. To be successful in this quadrant, one would usually think that they will need a high job status and high pay. This is how most people view success. 

• Self-Employed 

The self-employed category includes people who are doctors, lawyers, and entrepreneurs. According to Robert Kiyosaki, those people are the people who own their jobs as they cannot be easily replaced. Entrepreneurs are people who own small to medium businesses that still need their care. One would usually think that they need to earn the highest money and be considered good at their job in this quadrant. 

• Business Owner

Business owners are, as mentioned, people who recruit people who are smarter than them to create a running business with them involved. According to Robert Kiyosaki, one would be a successful business owner if they could leave their business for a year and it would still develop. 

• Investor

Investors, as the name suggests, are people who invest in things such as real estate, commodities, stocks, and business. Usually, the more money they make, the more successful they seem. 

At the end of the day, success cannot be defined easily. It could help to know in which quadrant you would want to fall into. However, it is important to consider other things such as your calling, passion, skills, and dreams. One could view success as having incredible sums of money, but some people may disagree, and say that success is achieved when they’re comfortable with their money. The most important part is to know what brings one happiness in their life. 

Source: 

Carson , C. (2020, August 30). The cashflow quadrant explained – how you earn income matters. Coach Carson. https://www.coachcarson.com/cash-flow-quadrant-how-earn-matters/

Francis, C. (2022, February 16). Rich dad fundamentals: The cashflow quadrant. Rich Dad Fundamentals: The CASHFLOW Quadrant. https://inspiredmoney.com.au/blog/the-cashflow-quadrant/

Kiyosaki, R. T. (2020). Cashflow Quadrant Rich Dad, Poor Dad. FBV.