Summary

The CashFlow Quadrant is the four ways income can be generated: 1. You can get a job; 2. You can be self employed; 3. You can build and own a business system of some type; and 4. You can invest in other businesses. Most people spend the majority of their time working in the first two quadrants. The only problem is that to build assets which may decline in value (houses, possessions), they take on greater amounts of debt, locking them in to working harder still to earn more to service more debt. The financially astute, however, maximize the amount of time spent on activities in the 2nd and 3rd quadrants. The objective is to build their assets until that source of cashflow covers life style expenditure.