Most people assume that their financial standing is defined by how much they earn, how much they’re worth, or some combination of both. And there’s no doubt that this has some bearing.
Forbes magazine defines “rich” as a person who earns in excess of $1 million per year (about $83,333 per month, or just under $20,000 a week), and “poor” as someone who earns less than $25,000 a year. But even more important than the quantity of money you make is the quality of money you make. In other words, not just how much you make, but how you make it—where it comes from. There are actually four distinct sources of cash flow. Each is quite different from the other, and each defines and determines a very different lifestyle, regardless of the amount of cash you earn.