Cashflow Quadrant
Financial Freedom Tips and Strategies

First, there is Kiyosaki's buckets and pipeline story to explain what he means by Passive Income. The story is about a village which wanted a water supply from a lake located a mile distant. Two local entrepreneurs won contracts for water supply. Ed bought a couple of buckets and ran back and forth between the lake and village 'hauling buckets'. He earned money from day one. Bill's strategy was to build a pipeline between the village and lake. He didn't earn anything for a year until the pipe was finished. Then he simply switched on the tap. Is there a way you can design a passive income pipeline for your home based business?

Second, there is a description of the four types on income - employment, self employment, business and investment - and the type of thinking needed for each income type. You could broadly classify employment and self employment as 'sweat income', whereas business and investment are 'passive income'.

Third, there is a section specifically on how to get started on self employment or business income. There are particularly interesting comments on business systems including franchises and network marketing. Robert T Kiyosaki suggests you check out The EMyth if you want to develop your own turnkey business.

The teachings of Robert T Kiyosaki have had a huge impact on my approach to business over the past ten years, and I know that this is true for others too.

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