The Cash Flow Quadrant - Where to Get income

Employment - The Cash Flow Quadrant - Where to Get income

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We have to think about getting revenue if we want to survive in this life. There are many sources of revenue that we can take advantage of. Some population rely on the wages they get from their regular jobs. Some population make money out of their investments. In this article, we will tackle on the cash flow quadrant or the distinct revenue streams that you can take advantage of.

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Employment

There are four groupings in the cash flow quadrant: Employee, Self-employed, business Owner and Investor. The employee and Self-employed groups are on the left side of the quadrant. In order for them to earn money, they must take an active role in the business along with doing the paperwork and hand-operated labor. The business Owner and Investor groups are on the right side of the cash flow quadrant business model. Both groups rely on passive revenue to make money. They spend on a business and are not necessarily required to do all the work.

Employee Group - They are working for an owner or a corporation. They take orders from their superiors. Oftentimes, they just aim for job security: they want to contribute their house necessities like food and school fees. Their revenue is just minuscule to their wages and bonuses. If the business stops giving them money, they would have no other income.

Self-employed group (or Small business Owners) - These population have their own business. They are their own boss. They do not take instructions from anybody. They work as they please. However, because of reserved supply limitations, they oftentimes do all the work by themselves. They control their business minimal leverage.

Business Owner Group - Like the former group, they have their own business but they are not necessarily doing all the work on their own. They don't control the business by themselves but instead delegate these tasks to their employees. They build systems that are followed by the workers under their company. Their revenue stream is not minuscule to a regular wages but is dependent on their productivity and profits. They have financial free time in personal choices such as clothes, education, and lifestyle.

Investor group - This group is in the far right of the cash flow quadrant business model. Many small business owners dream of one day acquiring the investor status. The population in this group earn money by investing their money. They do not need to work because their money is the one doing the work for them. They wisely spend some of their funds on revenue assets such as properties and businesses.

If you want to get rich, you must make your way into the investor group. Some of us might start as employees but we must strive to bring ourselves up to the investor ladder. We must make minuscule steps for us to transition from a salary-dependent employee to a profit-earning investor. Being an investor is a sure road for you to enjoy garage financial freedom.

I hope you have new knowledge about Employment. Where you may offer used in your everyday life. And most significantly, your reaction is passed about Employment.

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