Shared by SALMAN
Today, I want you to Share with you a very interesting subject. A subject which has never been taught in school. A subject which only a few know
about. And that is the subject of money. At the end of this email you will finally understand the BIGGEST difference between the rich and
the poor and why the rich are getting richer and the poorer are getting poorer.
But before I get into that you have to understand the 4 different ways in which you can make money, and which option you should follow and
which ones you should try to avoid if your goal is financial freedom.
4 Ways of Making Money
(The CashFlow Quadrant)
1. Employee – For generations parents have been giving the following advice to their children, “Son, go to school, get good grades and find a safe secure job. Save money and buy a house.” We have been psychologically programmed by our society to be work for someone else. To be independent. The advantage of this quadrant is that you master what you have studied for. For example you study medicine and work in a hospital. You gain experience after some time and become good at what you do. The disadvantage is if you want to earn more money you have to exchange more time or expertise (like a master’s degree) to your boss.
2. Self Employed – This is the dream of many people. To own their own small business. Most professionals like doctors (specialists), lawyers, engineers fall under this quadrant. The advantage of this quadrant is that you have control; you are your own boss. There is no one above you to tell you what to do except yourself. The disadvantage is that in order to earn money you have to spend more time running your small business. So the more money you earn, the less free time you have. When you’re sick or you travel, you make no or very little income for you as the business cannot run without your presence. A good example is a cardiac surgeon who starts his small cardiac surgery hospital. For cardiac procedures to be done, he has to be there otherwise he won’t make any money. That’s why Self Employed people are so busy struggling trying to make ends meet. They have very little or no free time.
3. Business – If you want to be financially free, then this is the best quadrant to be in. This is where the majority of the wealthiest people in the world are. But the surprising thing is that more than 85% of the top entrepreneurs don’t even have a college degree. Examples of those who quit high school before establishing a successful business are Bill Gates (the founder of Microsoft and the second richest person the world), Michael Dell (The founder of Dell Computers), Mark Zukerberg (The Co founder of facebook and the youngest Billionaire) and many more. Unlike the S Quadrant, in the B Quadrant, you don’t have to be the smartest to succeed. You just have to be smart enough to hire the smartest people in your team. Success in the B quadrant it’s not about what you know, but it’s about who you know. Here you build a system and hire the smartest and best people to work for you. The more people you have, the more money you make. That’s why they say, “The A students work for the C students and the B students work for the government.” That is not just a saying, but it is reality. Look around. The richest people weren’t the smartest in school.
4. Investing – There are 2 types of investors. Those who invest because they have no money and those who invest because they make a lot of money. Here I’m specifically talking about the 2nd group. The rich and wealthy generate a lot of money in their businesses. The extra money they make, they invest in their rich friend’s business and earns a percentage of the profit. That is why Bill Gates (2nd richest in the world) and Warren Buffet (3rd richest in the world) are best friends and they all invest into each others business. Here money works for you. The company you invested in does all the work and generate income, and you get a piece of that pie.
Why are the rich getting richer? Simple! They generate income on the right side of the quadrant. And the right side of the quadrant gives them something which the left cannot. And that is leverage. Leverage is defined as the ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is an advantageous-condition of having a relatively small amount of input yield a relatively high level of output. Thus, doing a lot with a little. Their income does not depend on how much time they spent, but on how much leverage they created.
In order to change your income, you need to change your quadrant. For more information about the Cash Flow Quadrant, make sure you go to a nearby bookshop or online and get the book Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom by Robert Kiyosaki. In the next email I’m going to specifically talk about how you can shift to the right side of the quadrant and give you different types of businesses, their advantages and disadvantages and which one you can choose from to generate a high income with very low capital.
Now Guys, you now have information which only less than 10% of the people in the world have. We have always been taught by society to go to school, get good grades and look for a safe secure job. To be successful in the 21st Century Guys you don’t need a job. In fact in today’s economy, a job is much more riskier.
Stayed tuned for more emails. See you at the TOP!
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