Cashflow is the movement of money into and out of individuals and businesses. Cash flow is realized when you purchase an investment and hold onto it. Then, every month (or quarterly or annually), that investment returns money to you.
"People who can't control their cashflow, He/she will work for the man who can control."
As stated in Rich dad poor dad, there are three basic cash-flow patterns: one for the rich, one for the poor and one for the middle class.
This is the cash-flow pattern of the poor:
Poor people have only one stream of income(job). The income coming from the job and all the income spends on expense. They don't have money to buy assets or liabilities.
This is the cash-flow pattern of the middle class:
This cash flow pattern is considered typical and smart by our society. After all, the people who have this pattern probably have high-paying jobs, a nice home, cars, and credit card. This is called the "working-class dream."
Rich people have a multiply stream of income. The income is generated from the Assets in the maximum amount. It is not like that rich people have expenses but compares to the income they have it nothing.
This is the cash-flow patterns of all the people who are in a society.
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