Let’s review the model below. It contains 4 quadrants (Racers, Builders, Flashers, and FI:RE) surrounded by 4 boundaries (Employment, Investments, Assets, and Liabilities). Everyone lives in one of the 4 quadrants. We visit other quadrants but primarily live in one.
The boundaries: The key factor is physical or psychological presence. If you need to be physically or psychologically present to make money, then you have job. In contrast, investments don’t require your presence. Assets make you money, liabilities take money away from you.
The quadrants: If you answer YES to 2 of the 3 questions in a single quadrants, then that’s your HOME quadrant.
1. Do you have a job? Do you need to be physically or psychologically present somewhere to make money?
2. Do you have some debt?
3. Do you need your salary to meet your monthly expenses?