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The Cashsflow Quadrant

The Cashsflow Quadrant

The Cashflow Quadrant is a concept from Robert Kiyosaki's "Rich Dad Poor Dad" which represents the different methods by which income is generated:

  • 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

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MORE IDEAS FROM THE SAME ARTICLE

There are 2 types of income:

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: You do not have to be present to generate income. Things like real estate...

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