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Different Platforms To Generate Income.

The book rich dad poor dad involves the concept of the cash flow quadrant, the four different cash flows include; employees, small business owners, big business owners and investors. This is why you need to browse through a website page to learn more about how these steps are accomplished.

For you to make more money as a person, then you are required to think outside the platform of being employed. Having your own business is key, whereby you are able to control your own paycheck rather than letting another person determine what your income will be and when to get it. The different cash flow quadrants enables a person in making wise decisions on his current positioning and his future.

An employee occupies the first quadrant. An employee is the most common way of making money for most people even though it is the most in effective way to make money as it is less secure and that the employees trade their valuable time to benefit the employers. Employees suffer a number of tax disadvantages, compared to those people who own business. Being on this cash flow quadrant limits you as person on your financial and career growth, however it also has some great benefits as it is one of the most secure, most stable, safe and most common way to make a living.

Small business owners normally occupy the second quadrant. The main problem of being an employee or self-employed to your own business is that you are directly trading your time for money, and when you aren’t trading your time then as a result you don’t make money. Here your financial stability is always on a bargain, because it is not always the case that you will be fit to do the job.

A big business owner occupies the third cash flow quadrant as illustrated in the book “Rich Dad Poor Dad”. Big business owners normally don’t have a ceiling to their earnings as they are not limited by time compared to the small business owners. They often choose to invest more capital so as to earn more than employing less capital. On this way the big business owners are able to earn more and secure on their source of income.

An investor occupies the last quadrant. An investor is the person who will put their finances in a project in hope for a good return. They normally invest on big plans and ideas. It involves a lot of risks and thus has very few participants.