4 Ways of Earning Money Explained

Those who have read Rich Dad Poor Dad know about its 4 quadrants – or ways to make money. We have Employee E(workers), Self-employed S(self-employed), Investor I(investor) and Businessmen B(entrepreneur).

Let’s take a look back at that whole story. The quadrant looks like E and S are on the left while B and I are on the right. It is best to have a combination of both left and right sides.

Unfortunately, all our lives we are taught only how to be a worker (E) and work for someone else. This is the most precarious position because very few things depend on us and we have little opportunity to legally evade taxes and contributions. Here and there what a tax relief and that’s it. In other words, they yell at us the most here.

Over time, some workers want to become their own boss and then move on to S, self-employment. They open their craft or company and work 12-16 hours a day. Even if they have employees it still doesn’t mean they have become businessmen (B). This group (S) also includes artists, actors, singers, athletes and all those who earn their own money. If you do not have any special talent or you are not a consultant, it is difficult to become rich only in this quadrant.

I – investor is a category that has finally become popular in Croatia in the last few years. People are slowly realizing that money can work for them if they invest it well. Everything is still in its infancy, but there is hope.

The surplus money earned by the self-employed and workers should be invested and thus improve their financial situation. In addition, they increase their security because they are now on the right side of the quadrant, and not just on the left where everything depends on them.

Business is the category that Richdad praises the most, and it is somehow my favorite. There is no limit to how much you can earn and you can start with very little money as opposed to investing where you still have to have something.

The difference between S and B is huge although at first glance they seem very similar. Namely, the one who does everything independently and even if he has a registered doo and several employees is not free and cannot earn as much as the one in the B quadrant can.

The test question of whether you are S or B is this: can I completely leave my business today, go on a trip around the world for a year and when I return that my business is even better run and even more profitable than it was when I left it?

If the answer is YES – then you are a businessman. If the answer is: are you normal so without me everything would go to hell in a week! then you are S. 🙂

Why is it important to think about which quadrant we are in and which one suits us best? Because we have to be aware that by staying in E we can find it very difficult to become rich and financially free.

Even with a huge salary we can’t be free because if we lose a job or get sick very quickly that money will melt away. Being a businessman, one who creates new companies and is their owner, or being an investor who invests in companies that others have created is the surest way to become financially free.

I wouldn’t go into more detail about quadrants because everything is perfectly explained in the book Cashflow quadrant.

I would like to talk a little about the huge fear and resistance that most people have when they have to / want to move from the left (E, S) to the right (I, B). Quitting and starting your own business is very, very difficult. More psychologically difficult than it is really difficult.

Working alone (S) and leaving your job to others to move to the B quadrant is something that causes tremendous stress especially if you are one of those people who went to the S quadrant because he believes that if you want to do something fair you need to do it yourself.

How to overcome it? Little by little. For starters, it’s good to keep your current job because it gives us security. During this time, in our free time instead of watching television and other nonsense we can read and educate ourselves. We can learn all about investing in stocks, running a business, etc. etc. We can also open a company and do something small through it until we gain security and the business starts.

However, the most important thing is to give yourself time. Some things just don’t go overnight. If we work on it constantly, over time our perspective will change. The key is to constantly read, think about it, talk to other people who have already succeeded.

We will suddenly realize that we are on the right sid. 🙂 We will catch ourselves in thinking that is fundamentally different from everything we have been taught so far. We will realize that there is enough money for everyone and that the only change needed is the one in our head. In the way of thinking.

“Successful people ask themselves better and better questions and get better and better answers”

Anthony Robbins

Instead of wondering why the boss hates me and why I’m so incompetent ask yourself how do I create abundance in my life?

Btw. if you are wondering why I am incompetent the mind will very quickly find an answer in style: well because you cannot remember anything because you do not have enough intelligence because you were born that way because you cannot concentrate because you are simply stupid and do not understand anything. How satisfied are you with the answer? And not really. But it is precisely this internal communication that is the key to our success.

Everyone knows how they can make more money and here the story is always the same (create something new and useful, meet some people’s need) however everyone has their own inner story of why he can’t do it. Enough excuses to get to work.

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