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Ways To Have A Source Of 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.

Essentially, if you want to make more money as an individual then you have to be in control of the amount of money you make. 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. 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.

The first quadrant involves the employee. 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 businesses do involve substantial earnings to their owners. Unfortunately most of the owners of this kind of business end up by trading their own piece of work for a job that in most cases don’t offer a regular pay or any kind of security per say. There is a great compromise on your financial stability as you are only able to earn by exchanging your valuable time.

In the third quadrant we have 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. 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. 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. It involves a lot of risks and thus has very few participants. …