Understanding Cashflow- Money genarating ways.
As Kiyosaki discusses in His book “THE CASHFLOW QUADRANT ” a table is divided into four areas. E and S quadrants are on the left side, and B and I quadrants on the right side. The diagram below better explains it. You can be in all quadrants, but most people are not. The goal is to progress through the arrows and become more on the right side of the table. E Employee (E) – Otherwise known as a job Self-Employed (S) – Small business owners or self employed (Doctors, and lawyers) Business Owner (B) – Big businesses (500 and more employees). Businesses that are selling products and predefined services. Investor (I) – People like Warren Buffett Active Income On the left side of the table is active income. You are trading time for money. In order to make money you must perform something. Every day you start from zero. Passive Income On the other side, it is passive income. You do not have to be present to generate income. Things lik...