If You Read One Article About Funds, Read This One

Different Platforms To Generate 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. In order to learn more about these issues, you may need to view a website page.

For you to make more money as a person, then you are required to think outside the platform of being employed. Having your own business is key, whereby you are able to control your own paycheck rather than letting another person determine what your income will be and when to get it. Having a glance at these different platforms of earning, will enable you as a person to have a better outlay of your position and where you would like to get placed in the future.

The employee is in the first cash flow quadrant. 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 suffer a number of tax disadvantages, compared to those people who own business. Employees lack the leisure to lay off most of their tax burdens as they are normally controlled and governed by their employers.

Small business owners normally occupy the second quadrant. The main problem with being an employee or self-employed is that you are directly swapping time for money, and when you aren’t swapping your time, you aren’t making any money. In this case your financial stability is always at stake, because at times you will not be in a position to offer your time for money, as you may be sick or attending to an emergency, or even you wanted to take some time off for vacation.

In the third quadrant we have big business owners. Big business owners normally don’t have a ceiling to their earnings as they are not limited by time compared to the small business owners. The big business owners normally establish systems to create their wealth, for instance, instead of selling ice cream on the roads by exchanging their time for the job to earn, they will invest on some good capital to buy five different ice cream tracks and thus employ people on those tracks. Big businesses owners have a wide source of their income for instance they would always choose to invest more to a business and earn more from employees than employ themselves for their limited time. 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. It is a person who invest greatly in projects so as to have great returns in the future. 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. There are some risks to this mainly due to little finances.