Mini-Lesson 2: There Are Only 4 Ways People Earn Money

Some time ago, I read a book by Robert Kiyosaki called The Cashflow Quadrant. It completely changed how I viewed the world of business.

In the book, Kiyosaki explains that there are only 4 ways that people earn a living in this world:

Cashflow Quadrant

You are either:

1. Employee – You have a job and work for someone else. You are someone else’s slave.
2. Self-Employed/Small business – You own a job and you are a slave to your own business.
3. Big Business Owner – You leverage other people’s time and effort, so you do not need to be there for the business to continue making profits.
4. Investor – You make your money multiply.

These four ways are grouped into two groups: Active income and Passive income. Employees and self-employed are active, whereas big business and investors are passive.

Active Income – Trade your time for money, If you don’t show up, you don’t get paid. When you stop, your income stops. If you get sick…too bad. Time = Money. You work for money, and since time is limited to only 24 hours in a day, your income is also limited accordingly. 90% of the world earns their money this way, yet they only share a measly 10% of the world’s wealth.

Passive Income – You make money whether you work or not. This leverages the hard work you did in the past and continues paying you. Money works for you, and is unlimited in earning potential. 10% of the world earns their money this way, yet they share a whopping 90% of the world’s wealth.

So which way do you earn your money now? Which would you prefer? Active Income or Passive Income?

Do you know how to transition from the left side to the right side of the quadrant? If not, then now is the best time to subscribe to our free newsletter to find out how.

Here’s to your success!

Bill