#4 CASHFLOW QUADRANT HOW TO#
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The trick is that they use other people’s money to get those assets.In reality, humanity is craving for freedom. Investors never go broke because they are good at finding assets that provide steady income. The more the number of investments that an investor has the more money they make. What investors mainly do is that they look for firms or businesses with the potential of making more profits, and then they make their investments in that particular business and get their dividend at the end of the day. These two are different in that unlike a business owner who puts up initial work for the business to run, an investor does not put in any initial work for him to earn. Most of the time, people tend to confuse investors with business owners. The main reason why investors choose to invest what they earn into dividend-producing assets is so that they can stop working altogether and keep earning from what they have invested in. All you have to do is to invest your earnings into real estate, shares, or bonds, as long as it is an asset that will produce good dividends. This is to say that you do not need to be involved in any work for you to get money. As an investor, all you have to do is to make your money work for you. What business owners basically do is that they create something sort of a machine that is used to magnify your efforts and can eventually stand on its own without any of your efforts.Īccording to Kiyosaki, investors are at the highest level of being financially secure. Remember, even when they do not work, the people they have employed are working to bring money to them. When a business owner wants to make more money, they will mainly focus on expanding their business and employees with skills. What they have is a system that makes money for them even when they are not working.īusiness owners also know that they cannot be successful on their own, and for that reason, they hire people who have the skills and the talent that they need for their business, to help them in making money.Ī business owner is usually an employee and the advantage that they have over the people in the first two of the cashflow quadrant is that they can fire or do layoffs without worrying about anybody taking the business from them. Unlike the people in the first two quadrants, business owners do not own any job. This quadrant consists of people who are aware of the different skills that they have, and since they are also self-employed, they have turned these skills into running their businesses. When these people need more money, they work for more hours so that they can pay their bills. The moment they stop working, money stops flowing.

They need to be active and to do active jobs so that they can get money. The only way that they can make money is through working. In addition to that, they do not like hiring other people to work for them since they believe that no one does it better than them. However, the disadvantage comes in that these individuals struggle to take some new projects to work on, and as a result, they will be wasting more time struggling to find something to work on rather than making money.

#4 CASHFLOW QUADRANT FREE#

The good thing about people in this Cashflow quadrant is that they are not bound by any contracts like the employees, but are free to choose when and how frequently to work. People who fall in this category are traders, freelancers, lawyers, dentists, and any other person who is a highly paid professional.

#4 CASHFLOW QUADRANT HOW TO#

This is mainly because they know how to make their own money. People who fall in this quadrant are slightly better off than those in the first quadrant.

4 cashflow quadrant