#managingfinances
Take a good look at this diagram. I love to refer to it as The quadrant of life.
Please note that:
E represents the employed salary earners
S represents the small business owners or the self employed
B represents the Big business owners
I represents the Investors
It has been estimated that 90% of the world's population fall under quadrant "E"and "S" and control 10% of the world's wealth and cash;
while 10% of the world's population live in quadrant "B"and "I" and control 90% of the world's wealth and cash.
This is a rough estimate of the actual cash flow of the world to day. Infact, some economists argue that this diagram is being fair to the poor as they claim the ratio is now 95 : 5.
How to know where you fall in the quadrant of life.
E.
Those who fall into the E quadrant must have a job that pays salaries not a voluntary position.
S.
Those who fall into the S quadrant must have a trade or business that actually pays something no matter how little.
B.
Now this is a tricky part where you get to hear that your idol isn't a big business man. But he makes millions you may think but for now, a big business must meet the following standards:
- Must run 24hrs a day, meaning it must be patronized 24hrs a day it doesnt matter if the patrons are in different continents, it doesn't matter if its just one dollar that is being made. It must run 24hrs a day.
- It must have at least 500 staffs at all times. It can have 10,000 staffs but we don't want to hear that the staffs are on contract and at certain times in the year, they all are off duty as the contract stipulates. We don't want to hear there are 499 staffs plus me the owner making it 500.
- It must be able to run without the presence of the CEO or Founder. We don't want to hear there is nobody that can do it like me so i must be there always so that the business won't run down.
I.
This quadrant is very simple, you must have at least 100million dollars in investment. We don't want to hear that the capital plus the dividend is equal to 100million. No, you must have 100million in investment. It can be in real estate, stocks, joint ownership, treasury bills etc. Money sitting in your account doesn't count.
I wish to drop my pen here now. I hope you all ponder on this: The difference between the rich and the poor is INFORMATION!
Next time on #managingfinances, we will be looking at how to navigate through these quadrants. Do have a great day.
Take a good look at this diagram. I love to refer to it as The quadrant of life.
Please note that:
E represents the employed salary earners
S represents the small business owners or the self employed
B represents the Big business owners
I represents the Investors
It has been estimated that 90% of the world's population fall under quadrant "E"and "S" and control 10% of the world's wealth and cash;
while 10% of the world's population live in quadrant "B"and "I" and control 90% of the world's wealth and cash.
This is a rough estimate of the actual cash flow of the world to day. Infact, some economists argue that this diagram is being fair to the poor as they claim the ratio is now 95 : 5.
How to know where you fall in the quadrant of life.
E.
Those who fall into the E quadrant must have a job that pays salaries not a voluntary position.
S.
Those who fall into the S quadrant must have a trade or business that actually pays something no matter how little.
B.
Now this is a tricky part where you get to hear that your idol isn't a big business man. But he makes millions you may think but for now, a big business must meet the following standards:
- Must run 24hrs a day, meaning it must be patronized 24hrs a day it doesnt matter if the patrons are in different continents, it doesn't matter if its just one dollar that is being made. It must run 24hrs a day.
- It must have at least 500 staffs at all times. It can have 10,000 staffs but we don't want to hear that the staffs are on contract and at certain times in the year, they all are off duty as the contract stipulates. We don't want to hear there are 499 staffs plus me the owner making it 500.
- It must be able to run without the presence of the CEO or Founder. We don't want to hear there is nobody that can do it like me so i must be there always so that the business won't run down.
I.
This quadrant is very simple, you must have at least 100million dollars in investment. We don't want to hear that the capital plus the dividend is equal to 100million. No, you must have 100million in investment. It can be in real estate, stocks, joint ownership, treasury bills etc. Money sitting in your account doesn't count.
I wish to drop my pen here now. I hope you all ponder on this: The difference between the rich and the poor is INFORMATION!
Next time on #managingfinances, we will be looking at how to navigate through these quadrants. Do have a great day.
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