The Cash Flow Quadrant represents the division of people into four categories or hierarchies. It is up to each person to decide where he or she falls and which hierarchy seems most appropriate.
The poor
Of course, there are many more types of cash flow quadrants, so the poor may be known as employees. The principle, however, is always the same: the poor are the ones who are the most likely to be in need of help. This type of person is usually spending more than they are spending because their economic situation is so far behind them, and as a result, they are often drowning in debt. They live paycheck to paycheck and often use the current month\’s paycheck to pay off last month\’s debts. These people are trapped in a vicious cycle from which it is difficult to find a way out.
Middle ClassThe middle class is perhaps the largest class of all. They are the people everyone surrounds themselves with. They may be successful doctors, lawyers, and executives, or they may be ordinary workers and clerks. They are people with set hours and steady paychecks. No one would think that is a bad thing. After all, that has been their goal since elementary school. To have a good, stable job with social status. The problem, however, is that while these people advance in their careers, their income is always dependent on the time they sacrifice to their jobs, and they rarely achieve the financial and temporal freedom that they often imagine. These people often have no time to spend with family and friends and make do with one major holiday a year. But that is normal. Isn\’t it?
EntrepreneursPeople who own various companies, patents, online stores, etc. They are people who are trying to build something in their lives that will function over time without them. They build something that is transferable or easy to learn for their successors and can be done without constant supervision. The goal of these people is to build a passive income and pursue what fulfills, furthers, and entertains them in life.
Investors
Here we find a small percentage of the world\’s population. These people have already built assets to generate passive income and are increasing their wealth only through good investments. Their money often generates more money with little or no effort. This stage is the goal of most people in the entrepreneurial group.
