What I Can Teach You About Funds

Ways To Have A Source Of Income.

You might have heard of the book “Rich Dad Poor Dad” as it is one of the most read and familiar books as it brings out four different structures where people make money, this structures are referred as the cash flow quadrant as it involves employees, small business owners big business owners, and the 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. Creating your own business is key to make more money. The different cash flow quadrants enables a person in making wise decisions on his current positioning and his future.

The first quadrant involves the employee. Being an employee is the most common way of getting a living for most people as it is the most common and simplest way to make money, yet often the most ineffective way to make an income as the employees trade their valuable and limited time for money and the employer takes the advantage. 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. 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. 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 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.

Here in the last quadrant involves different investors. An investor is a person who allocates huge capital with expectations of future financial returns. He or she puts money behind an idea or a project to enable it to grow and run swiftly so that in the long run it can give birth to profits. It involves a lot of risks and thus has very few participants.