Four Quadrants of Income Sources

The concept of the "Four Quadrants of Income Sources" is often associated with Robert Kiyosaki's book "Rich Dad Poor Dad" and his Cashflow Quadrant. In this model, income sources are categorized into four quadrants based on how individuals generate their income and their level of involvement in the income-generating activities.

The goal of understanding the Cashflow Quadrant is often to shift from the left side (E and S) to the right side (B and I), where individuals have more control over their time, financial independence, and the potential for generating passive income. Kiyosaki emphasizes the importance of building assets and investments to achieve financial freedom and reduce dependence on earned income from a job or self-employment.