ESBI Career Progression
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A framework for understanding career progression and wealth building, moving from employee to investor status. Based on Rich Dad Poor Dad's quadrant system.
The Four Quadrants (ESBI)
-
E (Employee)
- Starting point for most people
- What parents typically encourage through education
- Trading time for money with a stable job
- Limited income potential and freedom
-
S (Self-Employed)
- First step toward independence
- Example: Going from barista to freelance web designer
- Higher hourly rate but still trading time for money
- More freedom but income ceiling exists
-
B (Business Owner)
- Key transition from selling your time to selling others' time
- Creates systems and processes that work without you
- Example: Growing from solo designer to agency owner
- Requires learning delegation and management
- Reading "E-Myth" helps understand business as a machine
-
I (Investor)
- Final evolution where money works for you
- Complete freedom to do what you want
- Focus on return on investment rather than active work
- Example: Warren Buffett style investing
Key Transitions
-
E to S Transition
- Often requires identifying opportunity in current workplace
- Can lead to significant initial income jump
- More enjoyable work as you choose your path
-
S to B Transition
- Critical realization about leveraging others' time
- Need to accept others may do worse job initially
- Must build systems and processes
- Can lead to significant wealth creation
-
B to I Transition
- Requires accumulated capital
- Shift from operating to investing mindset
- Focus on long-term wealth building
- Most freedom but requires investment knowledge
Framework Value
- Helps understand progression of wealth building
- Creates clear path from employment to financial freedom
- Each stage requires different skills and mindset
- Not understanding these stages can leave you stuck in one quadrant
11:29 - 12:03
Full video: 54:50SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.