![]() The distinction between S’s (small business owners) and B’s (big business owners) is subtle, in part because B’s often start off as S’s. B’s need to be skilled in delegation and leadership, as well as have a high degree of financial literacy. A B’s income is the profit from their business, and their business is considered an asset. People in the B category own their business and generate income by its profit, though they no longer do the day-to-day labor of making it function. People in the B category control not only a business, but a business system. According to Kiyosaki, this is the surer path to financial freedom. While in the E and S categories you generate income in exchange for the work you do, in the B and I categories income comes primarily from assets you own. Kiyosaki says that while lower-, middle-, and even upper-middle-class parents teach their kids the out-of-date financial path we just outlined, rich parents teach their kids the income generation strategy of the Business owner (B) and Investor (I) categories. ![]() Like most economists, Sethi sees some inflation as a part of a healthy economy.) The B and I Categories: The Way to Wealth However, Sethi does not have the same doomsday outlook about the impact of inflation on the economy as a whole as Kiyosaki has. (Shortform note: In I Will Teach You To Be Rich, personal finance author Ramit Sethi agrees with Kiyosaki that saving your money means you’ll lose some to inflation. He says when you save money, you’re really just letting it lose value due to inflation. Kiyosaki is adamant that parking your money is one of the worst things you can do with it. Reason #5: Inflation Will Dilute Your Savings (Shortform note: While the rich do use everyman investment tools like Roth IRAs, they also have access to stock deals and assets that are inaccessible to most.) When your pay jumps, so does your tax bracket, and there are fewer tax benefits in the E and S categories, and far more in the B and I categories.
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