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.

People who have control of their income, make more money than those who don’t. Making more money as a person goes hand in hand with starting your own business and avoiding being employed. In looking at these different categories of making money, you will be able to have a clear picture of your current position and with regard to the different categories look at where you would like to position yourself in the future in accordance to the cash flow quadrant.

An employee occupies the first quadrant. This quadrant is the most common way to make money as it is regarded more secure but in real sense, it involves making the rich richer. Employees normally have great tax burdens compared to business owners. This is because the owners can write off some of their tax liability and actually lay it on his employees.

The second cash flow quadrant involve the small business owners, having a small business, mostly results to a substantial reward to the owner. The main problem with being an employee or self-employed is that you are directly swapping time for money, and when you aren’t swapping your time, you aren’t making any 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.

The third quadrant normally involves big business owners. Big business owners have greater sources of income compared to small owners and this separates their proceeds. They often choose to invest more capital so as to earn more than employing less capital. This way they are able to leverage and have a system set and secure to have a source of money, the catch is that not everyone is able to raise enough capital that will enable him to start a big business and be able to run it.

The fourth and last quadrant of cash flow includes an investor. It is a person who invest greatly in projects so as to have great returns in the future. They normally invest on big plans and ideas. There are some risks to this mainly due to little finances.