Opening celebration, Bill announced that his water was cleaner than Ed's water.īill knew that there had been complaints about dirt in Ed's water. Within a year his team had built a large volume stainless steel pipeline which connected the village to the lake. Six months later with a construction crew. 'Instead of buying two buckets to compete with Ed,īill had written a business plan, created a corporation, found four investors, employed a president to do the work and returned He was not seen for months, which madeĮd very happy since he had no competition. It was hard work, but he was very happy to be making money and for having one of the two exclusive contractsīusiness Owner Thinking 'The second winning contractor, Bill, disappeared for a while. He would empty them into the large concreteĮach morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when Money as he labored morning to dusk hauling water from the lake with his two buckets. Steel buckets and began running back and forth along the trail to the lake which was a mile away. Self Employed Thinking 'The first of the two people who won the contract, Ed, immediately ran out, bought two galvanised Would keep prices low and ensure a back-up supply of water. Two people volunteered to take on the task and the elders awarded the contract to both of them.

To solve this problem once and for all, the village elders decided to put out to bid the contract to have water delivered to the village on a daily basis. The village had no water unless it rained. It was a great place to live except for one problem. It goes: 'Once upon a time there was this quaint little village. The right side of the 'B' and 'I' quadrants. Rich Dad's way of explaining the difference between the left side of the CASHFLOW Quadrant, the 'E' and 'S' quadrants, from My Rich Dad told me a simple story when I was 12 years old that has guided me to great wealth and financial freedom. Their cash from businesses or investments they own. The right side of the CASHFLOW Quadrant is for individuals who receive Reside on the left side of the CASHFLOW Quadrant. Many of us rely on pay checks and are therefore employees, while others are self-employed.

Building a Pipeline to Wealth (The Four CASHFLOW Quadrants)Įach of us resides in at least one of the four quadrants of the CASHFLOW Quadrant.

Cashflow quadrants