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.
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Saturday, September 6, 2008
Friday, September 5, 2008
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.
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.
Thursday, September 4, 2008
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.
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.
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