Kiyosaki's Cash Flow : The Missing Sector

A lot of people know the famous cash flow quadrant illustrated and made popular by Robert Kiyosaki. But if you do not know what is the meaning of the diagram above I will explain to you in the most simple way I can do.

Let’s start with the left side of the quadrant.. The Poor Side

E = Employee
We were trained in our schools to be a good employee. Am I right? I know I am right. Parents always tell their children to go to school, get high grades and you will land in a good job with high pay. I do not despise being an employee. I am also an employee until now. I love being in this sector. With ups and downs of the business I am still here and getting my monthly salary. But I need to sit in the office for 200 hours a month; take the commands of my boss, please the customers, cooperate with colleagues, beat deadlines, etc.. etc.. For me this is a challenge to conquer every day. And I am happy for the current company I am with.

But in this quadrant the earnings are restricted. Almost all time of your day was occupied by your job. You must work so you can earn.

What if you cannot work anymore?

S = Self-employed
This is where my siblings were trained for. They have their businesses. They are their own boss. Their income depends on how hard they work.

Multi-Level Marketing is definitely in this sector.

I tried to be like them and because I saw there is a lot of money to be harvested in there but in 6 months I surrendered. I had my own computer shop back then and even it is generating money I chose to close it down because I am not happy to be in there; totally tied up and doing all the necessary paper works and thinking how to get the business going. Stressful!

I will repeat my question from employee's group. What if you cannot work anymore?

Now, let's jump to the right side... To Rich and Financially Free Side

B = Business Owner
So what's the difference between self-employed and Business Owner? You are a self-employed if your business cannot run without you. Business Owner is a person whose business keeps going even without his direct supervision.

Sounds relaxing right? It is not hard to jump from the left side to this quadrant. It is so easy. You just need the proper knowledge in the business and get the most trusted people you know. Utilize their time and pay them for the work they have done for you and your industry.

How do I know it is simple. Me and my husband have rental apartment business in the Philippines. I asked my dad to work for me and pay him for every project we build. He supervises the construction and thinks how to lessen the expenses building them. My sister does the necessary paperworks in city hall, Meralco and Maynilad. My sister-in-law is hands-on when choosing the tenants, checking their monthly rentals, and getting all the problems that arises in the compound. All we do is sit here and wait for their monthly rental report. No stress! You help to give a living for others. Nice, right? To own a system?

I = Investor
In this sector, money is working for you. The best! Isn’t it? These are the people where compound interest is their best friend. Today it is easier to invest in real estate, stock market and bonds. Nowadays, many companies also offer mutual funds. But please be careful as a lot of scams ride the hype of investing. In this quadrant, you have more time to spend with your family. This is definitely a freedom we are looking for.


The cash flow quadrant is not just representing the flow of money coming in and out from the person, it also represents someone’s financial status. So I learned that there is a sector that Kiyosaki might missed out or just totally ignored it. Haha. It is the “U”.

U = Unemployed
Maybe Kiyosaki never include this sector because there is no inflow of money in this ring. But I want to highlight this status. Some are really unlucky and picky to land a job and some are very lazy to have one. And as my father always tells, if the people really wants to earn a living, there will always be a way. Unemployment is equal to laziness.

So please people! Wake up and work your a$$ off! Do not be a big liability to others.


Before the year ends, take some time to think over and start looking for opportunities for you and your family to go to the right side of the quadrant!  We can all do this! Pray and work hard!

I Love SMRT (Singapore's MRT System)

If you can see the  situation of citizens of other countries when riding their trains you will surely give thanks to Singapore government and SMRT for the service they are doing for the public. But good performance is not enough for this people behind SMRT, they are aiming for excellence that is why even LTA and NUS entered the scene in studying how to de-congest the trains on peak hours.

NUS announced a behavioral study on public who uses mrt  in their way to work. And I am a so lucky registrant to be picked as a participant. So how this does work? 

1. $15 voucher or ezlink top-up. It seems that this is a welcome treat for participants

2. $40 -- and everytime you tap-out from mrt at 8:15 a 20cents will be deducted to that. 

3. $25 full participation incentive after the study. 

Why I chose to join? Well, I want to go to office 30 minutes earlier to increase more my points on my clients' grading system. Yes! My clients have DLV that I need to key-in as early as possible to get a high grade. Second to lessen the stress for me; less people in the train, lesser stress. A fantastic way for me to discipline myself. Third to help in decongesting the train and lastly to avail the 2 privileges that was promoted by LTA (Travel Early, Travel Free & INSINC). 

Now it ends, I only failed once and was deducted a 20cents on my $40. For sure I will continue what I have begin. It is more refreshing and more fulfilling to travel early in the morning. 

Have You Asked Your Parents If They Are Proud Of You?

I'm always longing for a conversation with my mom. She can talk all day and night about her past. The past that holds her darkest time, my mom and dad's struggles, and how they mapped it to success.

My mom never got a chance to be in college. She really wants to finish studies and be an employee but she needs to assist my grandmother in everything they are in to. She told me that she even walked a mile selling fish to their neighbourhood. 

She went on to many hardships. She and her friends sold cooked food at employees in Philippines' Central Business District. She envied the staffs at first, the uniforms and well-groomed hair, high heels and the scents of their perfumes but when she befriend them and know how much they earn, a spark of hope lighted on her head. She earns more than the employees and inculcated in her mind that business will get you successful, financially, and not being an employee. 

Business after business until she settled for a second-hand lumber firm. When I was born all was okay. Mom and dad have spare money for all our the needs and wants. Mom provided insurances with mutual fund to dad and my two brothers. I had educational plan. When Ate reached her 18th birthday, a 4-storey building was built to be our new home. She bought parcels of land in different places for us to build our future houses when we got married. Would you imagine she even got a land for our final resting place or if we want to be cremated she got also lockers for our urns?

My mom have an Alzheimer and that disease is faster than it seems. Every time I call home, I always ask her, if she still knows me, if she still knew her past, if she knew what's happening around, if she knew my pains and my husband's success. And before hanging up the phone, I never forget to ask her if she is proud of me and my siblings. She always answers me back "Oo naman!" and one by one she will enumerate the reasons why.

After reciting her reasons she will next remind me of her golden rule. "Di baleng ikaw ang masaktan kesa ikaw ang makapanakit, di baleng ikaw ang niloko kesa ikaw manloko, di baleng ikaw ang nakawan wag lng ikaw ang magnakaw." When I was a child I always answered back "oo na, paulit-ulit naman" but now I really appreciate her rule. That made me and my siblings better persons.

That's how our talk goes every time I call. I love how satisfied she is when she remembers all her experiences and saw the fruit of her labour. 

Thanks Nanay for all the sacrifices, we are reaping the benefits today.