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The ESBI System and Personal Finances

The ESBI system or quadrant was first introduced by Robert Toru Kiyosaki, a leading American entrepreneur, businessman, and author. This system creates a perception of how a person generates his income, referring to the state of their economic entities. How do individual incomes come here? It’s the cash flow interpretation that intertwines the ESBI system and personal finances together.

Where do ESBI System and Personal Finances Coagulate

ESBI system simply refers to the 4 major earning platforms in economic systems. These are the employee(E), Self-employed or small business owners (S), Big-business owners(B), and investors(I). All quadrants have their different incoming sources but can be rounded up into 2 forms of income. Passive and active income. A proper understanding of the incoming sources makes a person know how stable is one’s personal finances. This model is vital for understanding what is entrepreneurship and financial freedom. Each section has its own risk and benefits, it depends on a person to look at their situation and evaluate do they want a change it or stay where they are.

Financial Prospects of the ESBI Quadrants


Employees trade their time for money. Institutions pay them for their time and skillset. They can’t decide their earnings and benefits, not even their holidays. On the contrary, they have a fixed secured amount of paycheck and increments. Meaning they have less risk with also low benefits. Our human subconscious brain resists negativity. Subconsciously, we don’t take risks. But it also affects in comparative depression when we don’t get enough for our handwork just for playing safe. Surprisingly, employee quadrants only own 10% of the world’s wealth while having 90% population of the globe.

Self-Employed or Small Business Owners(S)

Remember your family barber, grocery shop, or the pizzeria you always go to. They are small business owners who have made their own source of living. They are self-employed meaning if they choose to stop working then they will stop earning as well, same as employees but they are in the process of making their business big. Important to realize that they are not entrepreneurs they are just self-employed.

Big-Business Owners(B)

Big-business owners are the people behind managing and owning large corporations. In brief, earning money wasn’t their main goal instead they made a process that earns money for them. They can decide the unlimited amount of benefits or income they want, also deciding their vacation at will. For the purpose of building a common source of money, their experience helps them to sustain cash flow by focusing on investments.


Investors are the personals or corporations who invest their earnings for profit. It can be on any asset or financial instruments, commonly stocks-bonds, real estate, venture capital, angel investments, etc. These are the people who make their money work for them. They take a high risk with also gaining a high amount of profit. Investors are the endgame of reaching financial freedom.

ESBI System and Personal finances in Career

“No matter how much money you make, you need to change your mindset to be truly free”-Robert Kiyosaki

Schools don’t teach us about money, let alone financial freedom. The ESBI quadrant with individual money plays a major role before graphing a career path. Up to the present time, a person’s understanding of where the money comes from is still under the cloud. To this end as the world has paced around money it a necessary to understand cash sources before maximizing wealth. So it’s vital to have a grasp of our own personal finances to have a start for financial freedom.

A piece of Advice is “the more financial problems you solve, the more financial IQ you build, and the more financial IQ you have the more rich you become.”

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