New Career

It has been a year from my last post but today I saw that people are still coming here so I thoght to myself why not continue to write.

well I tried some systems of making money since last year and now I started my own game development company.

the Idea behind the system is simple I will make games and put some ads in them, then I will spread them across the web including facebook , other websites needs games and I need people to play the games so we help each other.

I don't sell the games, instead I wait for the ads to make me passive income.

How to make a system

Take a look on the left upper corner of the page, this is the cashflow quadrant.
This chart shows the four ways of earning money.
E- Stands for employee.
S- Stands self employed.
B- Stands for business.
I-stands for investor.

As I wrote before to get rich you need a system.
Just going to work every day, paying something like 50% tax and depositing your cash in the bank wouldn't make you rich (It doesn't count as a system).

A good system is a one that will make you cashflow without you having to physically working for it.
The practical definition of wealth is how much time you'll be able to live without working.
When you are an employee the moment you would stop working is the moment when you will stop getting money.

To make a system I recommend you to use the right side of the cashflow quadrant.
A business is a wonderful system, when you own a business you make other people to work for you, also a company can give you tax advantages.
You can start a part time business so you won't have to quit your job, but it is very important that you will start and don’t just dream.

If you wish to start a business it is very important to have a plan and learn how to run a business, you don’t want your company to end like the 9 of 10 companies I talked about in the previous post.

I also recommend that what you will invest, no matter in what quadrant you are.

Being in the right side is not better then the left side it's just a matter of personality and aspiration.
http://www.amazing-airplanes.com

why most of us fail?

9 of 10 of the small or home businesses are crumbling during the first 5 years of its operation.
9 of 10 of those who survive are crumbling later, why?

First
Because so many people are trying to start their small business without ever learning
How money works.
They don't have a right plan and they don’t know how to run their business soon they fall into depth and stop their business in lost.

Second
Usually in those little businesses a little amount of people takes care of all the business.
So they have too much pressure and they usually don’t have the skill for everything.
In conclusion their work is not good as a cooperation work.

Third
Often after some few years of really hard working people get tired and don't want to continue with the business.

Now you know how a bad system works, next time I will how to make a real system that do work.
So watch for updates.

What it means to be rich

There is a saying: "You need money to make money".

This is a lay!

We live in an age called the age of information, which means that information is the main power.
You don't need money to make money in the age of information.
If you have what it takes in terms of emotions and don't fear of risk, you have what it takes to become rich.

Being rich means having less security and comfort about your financial state.
Don't get me wrong here, investing for example, doesn't mean gambling or even taking risk.
If you want to Invest, not in the safe low interest zone but in the big money zone, all you need to do is just learn about money, when you know all the rules it is easier to win.

Being rich doesn't mean just investing.
To be rich you need to make a system.
Poor people are working for money, rich people are making a system work for them.
A system can be an investment where your money is working for you or a business where other people are working for you.

So, you need to build a system, this system must be stable and must be based on the principles I'm going to present in the next post.

How to leave the rat race

I want to share with an inspiration I got From Robert kiosaki's book, rich dad poor dad.

95% of the population of the world doesn't know how to manage money, as a result these people will never get out of the rat race, which means they will be stuck in a never ending cycle of going to work to pay mortgages for the things they are buying such as a new car or a new house.

These people believe that if they will work harder and earn more money they will be able to go out of this cycle, but they are wrong. As they get more income they are creating more expenses. The main two things a person can do to escape the cycle are those:

1. You need to understand the difference between an asset and a liability.

To go out of the rat race your assets, (which are the things that gives you money without working for it all the time, like an investment).

Should be higher than your expenses.

If you buy liabilities before you'll have enough assets, it will be very hard for you to make the money work for you in the future.

So before buying any liabilities you must have assets that will cover the expenses of your liabilities.

2. The second thing you will need to do, is to learn about money.

By learning accounting, investing and marketing you will have great advantage in the world of finance.

These days schools don't teach you how money works, you can have good grades and even be a doctor but it does not assure you success when it comes to money.

So you must learn things yourself in courses, books and so on, and pass these learning to your kids in order for them to be successful.