Robert Kiyosaki's CASHFLOW Quadrant

Robert Kiyosaki's cash flow quadrant

References to the books of R. Kiyosaki on our lazy blog have already been met more than once before, for regular subscribers this is not a new topic at all. The author's work is devoted to millions of pages of reviews, comments, reviews and forums in Runet. There is also a huge range of opinions regarding the relevance of Kiyosaki's business philosophy in relation to Russian realities. Most recently, we got acquainted with Anton's article, this article can be considered as a continuation of the topic. Along with this article, I recommend reading:

Outstanding Business Coach and Writer

I have been blogging for over 6 years now. During this time, I regularly publish reports on the results of my investments. Now the public investment portfolio is more than 1,000,000 rubles.

Especially for readers, I developed the Lazy Investor Course, in which I showed you step by step how to put your personal finances in order and effectively invest your savings in dozens of assets. I recommend that every reader go through at least the first week of training (it's free).

Robert Kiyosaki is a dollar billionaire, host of trainings and seminars for entrepreneurs, founder of an original trend in business literature and author of several dozen books on the topic of business success, of which the most famous was Rich Dad Poor Dad (the third best-selling book in the United States). ).

Kiyosaki's books have been translated into dozens of languages. This is perhaps the most popular author ever written on the topic of success in business and finance. The circulation of his books is approaching 30 million copies. Many of his books, incl. and this one, Robert co-authored with writer and businesswoman Sharon Lechter, and one, Why We Want You to Be Rich, with Donald Trump.

What is the Cash Flow Quadrant?

There are many definitions for a quadrant. So, in geometry, this is a plane divided by two mutually perpendicular lines. There is also an example from modern mythology: in the fantastic saga Star Trek, the α, β, γ and δ quadrants divide the Galactic space into 4 parts. The cash flow quadrant of Robert Kiyosaki, in relation to different categories of the working population, is graphically displayed as follows.

• E (employee) - employed;
• S (self Employed) - working for himself;
• AT (business— owner) - the owner of the business;
• I (investor) is an investor.

P intersection of quadrant areas

Of course, no typology exists in its pure form, and the above categories overlap to some extent. For example, some employees, especially in sales, are motivated by bonuses and other incentives, which requires these people to take an entrepreneurial approach to their duties. Or square S , whose representatives have already taken a step towards independence from the notorious "Uncle". But their day-to-day activities are largely like the rat race (because their income depends on the customers), and is often accompanied by stress and excessive overwork. The category of hired workers includes not only the personnel of enterprises and institutions that carry out other people's instructions and orders, but also outwardly respectable and highly paid top management. After all, they also play the role of performers hired and tightly controlled by the owner of the business. Stock traders who are professionally engaged in, but do not invest part of their earnings in assets to generate new income, cannot be called investors. They are more likely representatives of sector S or sector E (if they work for a brokerage structure and are on its staff).

Thus, the essence of Kiyosaki's philosophy can be defined as follows: it's not about how much money you have, but about your position in relation to money. You can earn a million a month, and be a dependent hired TOP manager, or you can have a Cash Flow of 40k rubles. and at the same time feel yourself, and, in fact, become financially independent.

Security and freedom: left and right sides

The cash flow quadrant is conditionally divided into left (E and S) and right (B and I) sides. This is influenced by the values ​​that are a priority for representatives of one side or another: for the "left" the most important life value is safety ("Safety"), for the "right" - Financial freedom ("Freedom"). Sector "I", according to Kiyosaki, provides maximum opportunities for achieving financial independence. However, the vast majority of people do not become investors. For the same reasons, this majority never dares to start their own business. They are afraid to lose what they have acquired, to be left without guaranteed social props. It is impossible to induce such people to independent action even by a potential benefit that many times exceeds the possible losses.

The transition from the left side to the right is a slow and painful process. This means changing the habits, style of thinking, stereotypes of behavior that have been established over the years. Such a transition requires the development of new skills in dealing with money, property, in a different way of communicating with people, incl. relatives: most likely, they will not accept the changes that are happening to you meekly. Kiyosaki himself cites the typical objections of people close to him: "You just have to get a decent job"; “You put a lot of things in your life at risk”; “Imagine that you lose, what will you do?”. Therefore, it requires courage and perseverance from a person. The process of transition from employment and a sense of financial security to financial freedom is, first of all, the process of transforming your consciousness.

Is it easy to achieve financial freedom?

What price are you willing to pay to achieve financial independence? R. Kiyosaki's answer is this: you will need determination, a passion for success, a desire to learn how to properly manage your assets. On this path, especially at its beginning, pitfalls await the novice investor. Kiyosaki says that quite a few people rely on external authorities and trust them to manage their money. He believes that this is a dangerous path, because. in such a situation, you are unable to control your own risks.

But this does not mean that financial fiduciary management should be viewed as an unacceptable risk. It is important to listen to the experience of predecessors, enlist the advice of the Mentor and first carefully analyze the risk profile of the manager, the history of managing other accounts, and collect as much information about him as possible.

Freedom is the dream of mankind and one of the main social values. However, people achieve it in different ways. Someone escapes reality into downshifting, someone resorts to various stimulants of the illusion of freedom, the description of which is not the subject of a lazy blog. R. Kiyosaki, using real examples from his own biography, shows how to achieve freedom without deviating from reality, remaining in the real economic field and enjoying life at the same time. This book is also a good reason to think about what we are ready to achieve in order to achieve the financial freedom we so desire.

Kiyosaki believed that a person could find true security rather in the right side of the quadrant. If you do not have the skill to handle money, even a lot of money, by itself, does not give confidence and true peace in your life.

If you learn how to manage money correctly, and set your goal to be in quadrant B or quadrant I, you are very likely to be on the right path to financial well-being and, ultimately, on the path to freedom.

Here are just a few tips from Robert Kiyosaki's book on how to achieve financial success:

• start thinking about your own financial future, plan it, set financial goals for yourself;
• control your cash flow: without this condition, even having a lot of money, you cannot become rich;
• it is necessary to clearly distinguish between risk and danger. Instead of risk aversion, the author recommends learning the art of financial risk management;
• improve your financial literacy constantly, learn and ;
• build up your and gradually reduce that do not bring you income;
• try to hit the sector firstBand get there:

a) business experience

b) sufficient cash flow to support your future investments in the sectorI;

• look for mentors: a mature investor always seeks and uses the experience of those who are more experienced than him;
• do not be afraid of failures and disappointments, be prepared for them, use them as a lesson and an opportunity for internal change.

Sincerely, Sergey D.

Translation from English done O. G. Belosheev Adapted from: RICH DAD’S Cashflow quadrant (Guide to Financial Freedom) by Robert T. Kiyosaki, 2011.

© 2011 by CASHFLOW Technologies, Inc. This edition published by arrangement with Rich Dad Operating Company, LLC

© Translation. Edition in Russian. Registration. Potpourri LLC, 2012

* * *

My rich dad used to say, “You can never be truly free without financial freedom.”

And he also said: "But freedom also has its price."

This book is dedicated to those who are willing to pay that price.

Editor's note
Times change

Since the first edition of Rich Dad Poor Dad was published in 1997, the economy, and investing in particular, has changed a lot. Fourteen years ago, Robert Kiyosaki's words "your home is not your asset" defied conventional wisdom. His views on money and investing, incompatible with the traditional point of view, caused a wave of skepticism, criticism and indignation.

In 2002, Robert's book Rich Dad's Prophecy encouraged us to prepare for an inevitable financial market crash. In 2006, a deep concern about America's deteriorating middle class led Robert Kiyosaki to co-author the book Why We Want You to Be Rich with Donald Trump.

Robert is known around the world as a passionate advocate for financial education. Today, as we grapple with the fallout from the collapse of the subprime mortgage system, record mortgage foreclosures, and a global economic crisis that still rages on, Kiyosaki's prophetic pronouncements seem to be coming true. Many skeptics turn into believers.

When Robert was preparing the new edition of his book "Cashflow Quadrant" in 2011, he realized two important points: his ideas and concepts have stood the test of time, and the investment environment and conditions for savers have changed significantly. These transformations, which have and will continue to have a major impact on people in the I quadrant (investors), prompted Robert to update and correct an important section of this book, the Five Levels of Investors chapter.

Acknowledgment

Thanks to the phenomenal success of Rich Dad Poor Dad, we have made thousands of new friends all over the world. Their kind words and friendships—and their amazing stories of perseverance, passion, and success in applying rich dad's principles to their lives—inspired us to write The CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom. We therefore thank our friends, both old and new, for their enthusiastic support that exceeded our expectations.

Foreword
What is the purpose of your life?

"What do you want to be when you grow up?" - This question was asked at one time to most of us.

As a child, I had many hobbies, so it was easy to choose.

If something seemed interesting and prestigious, I wanted to do it. My dream was to be a marine biologist, an astronaut, a Marine, a merchant marine, an aviator, and a professional American football player.

I managed to achieve three goals from this list - to become an officer of the Marine Corps, a sailor and a pilot.

I knew for sure that I did not want to be a teacher, a writer or an accountant. Teaching activities did not attract me, because I did not like school. I also had no desire to become a writer, because I failed my English exam twice. And I did not spend two years on an MBA for the simple reason that I hated accounting, which was a required subject in the program.

Now, ironically, I'm doing all the things I never wanted to do. Even though I didn't like school, I own an education company and have been teaching people around the world because I love it. Although at one time my inability to write in English caused two flunkies in English exams, today I am best known as an author. My book Rich Dad Poor Dad has been on the New York Times bestseller list for more than seven years and is the third best-selling book in the United States. Above it are only "The Joy of Sex" and "The Road Less Traveled". On top of that, the book Rich Dad Poor Dad and the CASHFLOW series of board games I created dealt with the very accounting that I hated for so long.

But how does all this relate to the question “What is your purpose in life?”.

The answer is contained in a simple but extremely profound thought of the Vietnamese Zen Buddhist master Thich Nhat Hanh: "The path itself is the goal." In other words, the purpose of your life is to find your path in life. However, the concept of the path cannot be identified with your profession, title, amount of money received, successes and failures.

Finding your way means finding out what you were sent to this earth to do. What is the purpose of your life? Why did you receive this great gift called life? And what gift do you give life in return?

Looking back, I realize that the education I received did nothing to help me find my way in life. For four years I studied at the nautical school as an officer of the merchant fleet. If I had chosen a career with Standard Oil and served on oil tankers until retirement, I would not have found my way. If I had stayed in the Marine Corps or switched to civil aviation, I would not have found my way either.

If I had stayed in the Navy or in the Air Force, I would never have become a world-famous best-selling author, have been featured on Oprah Winfrey's TV program, written a book with Donald Trump, and created an international education company that trains entrepreneurs and investors around the world.

How to find your way

The CASHFLOW Quadrant is one of the most important books I've written because it helps people find their way in life. As you know, most people at the very beginning of life receive a standard installation: "Go to school and get a good job." But the education system teaches us how to find jobs in the E or S quadrants. It doesn't teach us how to find our path in life.

There are people who from an early age know exactly what they will do in the future. They grow up confident that they will become doctors, lawyers, musicians, golfers or actors. We have all heard of child prodigies - children with exceptional abilities. However, it should be noted that these talents are manifested mainly in the professional field and do not necessarily determine the life path of a person.

So how do you find your way in life?

My answer is: "If I only knew!" If I could wave a magic wand and magically reveal your path to you, I would.

But since I don't have a magic wand and can't tell you what to do, I can only tell you what I did myself. I just trusted my intuition, my heart and my inner voice. For example, in 1973, after returning from the war, when my poor dad began to persuade me to study further, get a master's degree and get a job in the state structure, my brain went numb, my heart sank, and my inner voice said: “No way!”

When he advised me to go back to work for Standard Oil or get a job in civil aviation, my brain, heart and inner voice again said no. I knew that work in the sea and in the sky was finished forever, despite the fact that these professions were considered prestigious and well paid.

In 1973, I was 26 years old and all paths were open to me. I did much of what my father advised me to do, graduated from high school, got a college degree, and acquired two professions—a merchant marine officer and a helicopter pilot. But the problem was that these professions were just childhood dreams.

At 26, I was old enough to understand that education is a process. For example, when I wanted to become a sailor, I went to a school where officers of the merchant fleet were trained. And when I wanted to become a pilot, I went to the Navy flight school, where in two years the guys who could not fly were turned into pilots. Therefore, before starting a new learning process, I had to know what I was going to become.

Traditional schools have served me well. I acquired two professions that I dreamed about as a child. But, as an adult, he found himself in an extremely difficult situation, because there were no signs anywhere with the inscription “The Right Way”. I knew what I didn't want to do, but I didn't know what I wanted to do.

Everything would be simple if I wanted to get just some new profession. If I wanted to be a doctor, I could go to medical school. If I wanted to be a lawyer, I would go to law school. But I knew that life could give me much more than the opportunity to go to another school for the sake of obtaining a document giving the right to engage in another type of professional activity.

I didn’t realize it before, but at 26 it was time to start looking for my path in life, and not just another profession.

Miscellaneous education

In the last year of my career as a Marine Corps pilot, when we were based in Hawaii, not far from my hometown, I already knew that I wanted to follow in the footsteps of rich dad, the father of my friend Mike. Shortly before I retired from the Marine Corps, I took weekend courses for aspiring real estate salespeople and entrepreneurs to gain the knowledge needed to be an entrepreneur in the B and I quadrants.

Also, on the advice of a friend, I signed up for a personal development course in the hope of finding out who I really was. Studying in personal development courses did not fit into the framework of traditional education, because I did not attend them for a diploma or a license. Unlike the real estate courses, I had no idea what exactly I would be taught. All I knew was that it was time to take courses that would help me understand myself.

At the first lesson, the instructor drew the following diagram in a notebook:

She then said, "In order to reach the highest level of development, a person needs physical, mental, emotional and spiritual education."

Listening to her explanations, I realized that the main goal of traditional educational institutions was the mental, or mental, development of students. This is why many of those who did well in school struggle in real life, especially in the world of money.

After a few more lectures on the same day off, I understood why I didn't like school. It became clear to me that I loved studying but hated the education system.

The traditional teaching method was a great environment for high achievers, but not for me. She depressed my spirit by trying to motivate me through fear: the fear of making a mistake, of failing, and of not getting a job. This system tried to program me to choose a career as an employee in the E or S quadrants. I realized that the traditional education system is not a place for a person who wants to become an entrepreneur and join the representatives of the B and I quadrants.

Author's note. Perhaps that's why so many great entrepreneurs didn't finish school or dropped out of university. Among them are General Electric founder Thomas Edison, Ford Motor founder Henry Ford, Apple founder Steve Jobs, Microsoft founder Bill Gates, Disneyland founder Walt Disney, and Facebook founder Mark Zuckerberg.

After the instructor described in detail the features of these four types of personal development, I realized that I had spent most of my life in a very harsh educational environment. After four years in an all-male nautical school and five years in the Marine Corps, I was very strong emotionally and physically, but my development was one-sided. It was dominated by an aggressive masculine principle. I lacked feminine energy and softness. And this is not surprising, because they made me a Marine Corps officer who knows how to remain emotionally calm under any pressure, able to kill and ready to die for his country.

If you've seen the movie "Top Gun" starring Tom Cruise, then you had the opportunity to get some idea of ​​this male world and the bravery of military pilots. I liked this world. I felt good in it. It was the world of modern knights and warriors. There was no place for whiners.

The course program ended with a seminar during which I penetrated into the depths of my emotions and slightly touched my spirit. I cried like a child because I had something to cry about. I have done and seen things that no one should ever do. Filled with tears, I hugged a man, which I had never allowed myself before, even with my own father.

That Sunday evening, I was very sorry that the personal development courses were over. The atmosphere of tenderness, love and frankness reigned at the seminar. Monday morning I was to be surrounded again by selfish young pilots trained to fly and kill and die for their country.

After this seminar, I realized that it was time to change. I knew that it would be incredibly difficult for me to develop kindness, gentleness and compassion in myself. To do this, it was necessary to cross out everything that I had been taught for many years at the nautical school and flight school.

I never returned to the traditional education system again. I had no desire to study for grades, diplomas, promotions, or licenses.

If I signed up for courses or attended seminars, it was only to get better. I was never interested in grades, diplomas, or training certificates again.

But my father was a teacher, and for educators, nothing is more important than grades in school, college studies, and graduate education. Degrees and diplomas from prestigious universities are for them the same insignia as medals and sashes on the chest of pilots of the Marine Corps. People who have not finished high school are looked upon contemptuously by these intellectuals as a lower caste. Masters look down on bachelors and are in awe of doctors of science. At 26, I already knew that I would never return to this world.

Editor's note. In 2009, the prestigious Saint Ignatius de Loyola University of Lima awarded Robert an honorary PhD in Entrepreneurship. This rare award is received mainly by political figures, such as the former president of Spain.

How did I find my way

I know some of you are now asking, "Why does he spend so much time talking about non-traditional training courses?"

The thing is, that first personal development seminar rekindled my love of learning, just not the kind that we are taught in schools. After completing the workshop, I developed an irresistible craving for this form of learning, leading me to attend workshops on a wide variety of topics in order to satisfy my desire to learn as much as possible about the connections between my body, mind, emotions and spirit.

The more I studied, the more I became curious about the traditional education system. I started asking questions like:

Why do so many kids hate school?

Why do so few kids love school?

Why do so many highly educated people not succeed in the real world?

Do schools prepare people for life in the real world?

Why do I hate school but love studying?

Why do most school teachers live in poverty?

Why are we taught so little about money in schools?

These questions led me to become committed to learning outside the confines of the educational system. The more I studied, the more I understood why I did not like school and why educational institutions are not able to benefit their students, even excellent students.

When curiosity touched my spirit, I became an entrepreneur and educator. If not for it, I would never have become the author of books and the creator of games that develop financial intelligence. Spiritual education led me to my life path.

It seems that our paths in life should be sought not in the head, but in the heart.

This does not mean that a person cannot find his way through traditional education. I'm sure a lot of people do just that. I just want to say that it is unlikely that I myself could find my way in a traditional school.

Why is the path so important?

We all know people who make a lot of money but hate their work. But at the same time, we know people who don't make a lot of money, and we also hate their work. In addition, we know those who simply work for money.

One of my classmates at the Merchant Marine Nautical School also realized that he did not want to spend his whole life at sea. Instead of sailing the oceans for the rest of his life, he went to law school after graduating, spent three more years becoming a lawyer, and going into private practice in the S quadrant.

He died in his early 60s, a very successful but unhappy lawyer. Just like me, by the age of 26 this man had mastered two professions. Despite his hatred for the legal profession, he continued to practice it because he had a wife, children, a mortgage and bills to pay.

A year before his death, we met at a reunion in New York.

“All I do is clean up the dirt that rich people like you leave behind. They pay me a measly pittance. I hate those for whom I work,” said my former classmate.

"Why don't you do something else?" I asked.

“I can't afford to quit my job. My oldest daughter is going to college.

This man died of a heart attack before she could finish her studies.

Through his professional training, he earned a lot of money, but was in the grip of violent emotions. His spirit died and the body soon followed.

I understand that this is an exceptional case. Most people don't hate their jobs as much as my friend did. Nevertheless, this example accurately characterizes the problem that arises when a person falls into the trap of a profession and cannot find his way.

In my opinion, this is a direct consequence of the shortcomings of the traditional education system. Millions of people drop out of school to work for the rest of their lives in jobs they don't like. They know that something is missing in their lives. In addition, millions of people fall into a financial trap. They earn too little to survive and want to earn more but don't know how.

Without a clear understanding of the other quadrants, many people go back to school to get a new job or to apply for a raise in the E or S quadrants instead of learning about life in the B and I quadrants.

The reason I became a teacher

The main reason that led me to become a teacher in the B quadrant was the desire to give people the opportunity to get a financial education. I wanted to make this education accessible to everyone who wants to learn, no matter how much money they have or what their GPA is. That's why the first product of my Rich Dad company was the CASHFLOW game. She can teach people in countries I can never get to. The main advantage of this game is that it forces some people to teach others. Such training does not require highly paid teachers or classrooms. The CASHFLOW game has been translated into sixteen languages ​​and is available to millions of people around the world.

Today, Rich Dad offers financial education courses and experienced coaches and mentors for personalized learning. Our programs are especially needed by those who wish to gain the knowledge necessary to move from the E and S quadrants to the B and I quadrants.

Of course, there is no guarantee that all these people will be able to move into the B and I quadrants, but in any case, they will know how to get there if they have such a desire.

The CASHFLOW Quadrant by Robert Kiyosaki and Sharon Lecter is more like a tutorial than a textbook. It will allow you to dig into the very essence of the structure of modern society, which is divided into four main parts according to the field of activity and the type of their thinking. Namely, thinking contributes to success, achievement or failure. The book will give strength and confidence, inspire the desire to change on the way to a happy and free life. The author will help the reader to determine his own affiliation to a certain type, tell how, if desired, to move to another.

Most people are running in circles in the so-called financial trap. They belong to the working class. Once you start working for someone else, it's too hard to stop. It's scary to take risks. But, if you judge correctly, then this work is risky. After all, tomorrow it may not be. Unfortunately, those who work harder and longer will never become rich and successful. There are others who work for themselves, but their income also depends on their personal participation in the work.

The author of the book believes that by becoming financially literate, people will be able to become financially free. There is much less risk in starting a business than it seems at first glance. This is a well-coordinated system that can work properly and generate income even in the absence of the owner. You need to gather your courage, muster up the courage and get out of the oppressive circle. Everyone's success depends only on himself, and the book will help you understand what you need to do to achieve this success and become independent.

The work belongs to the genre of Economics. Business. Right. It was published in 2011 by Potpourri. This book is part of the Rich Dad series. On our site you can download the book "Cashflow Quadrant" in fb2, rtf, epub, pdf, txt format or read online. The rating of the book is 4.31 out of 5. Here, before reading, you can also refer to the reviews of readers who are already familiar with the book and find out their opinion. In the online store of our partner you can buy and read the book in paper form.

Our thinking - the thinking of a society accustomed to receiving a huge amount of information about everything in the world - due to an overabundance of available news and rumors, has become selective and at the same time ossified. The majority chooses for themselves a one-sided view of all events and the regime in which we live. A significant role in this was played by money, or rather financial policy and corporations of many thousands, in which many people work, who do not even really understand where is black and where is white. We love to take apart things that we understand, but we rarely bother to examine ourselves. And this process, probably, could become one of the most important studies.

What is the CASHFLOW Quadrant about?

Robert T. Kiyosaki and Sharon L. Lechter, authors of the worldwide bestselling book Rich Dad Poor Dad, have written the long-awaited sequel to CASHFLOW Quadrant, which helps readers understand the financial system that has entangled the whole world, of which much of modern society has become unspoken prisoners. . This book, which you can download in different formats - fb2, epub, pdf, txt - on the site site, tells about the structure of humanity, which the authors divided into four groups according to the type of thinking: workers, self-employed, businessmen and investors.

The peculiarity of this section is precisely in the fact that Kiyosaki and Lecter focused not on the financial condition, but on how a person thinks. They reveal the essence of each of the groups, describing in detail their characteristics, which determine exactly where a person can attribute himself. The researchers analyzed the patterns of obtaining money and the processes associated with them, referring to the many factors in the human psyche that prevent him from becoming rich. The CASHFLOW Quadrant covers common mistakes and how to avoid them, which are easy to implement.

What does the CASHFLOW Quadrant teach?

You can download an audiobook or read the Cashflow Quadrant online at BookSearch to find out exactly what you're doing wrong when you're trying to make more money. The simple truth that people who are willing to work long and hard but are afraid to take risks and start their own business will never become rich teaches us that we should not be afraid of difficulties and change not only our actions, but also the very way of thinking.

This book helps to shake off the model of getting money that does not bring us enough wealth, makes us start thinking in other ways, not hoping for retirement, which, according to Robert T. Kiyosaki and Sharon L. Lecter, is one of the remnants of the industrial age. which is worth getting rid of. This book teaches not to be afraid to desire wealth, because money is not evil, it does not bring decline, but helps to buy the most important thing - freedom. It is this attitude to finance that should live in the head of a modern person who is educated enough not to embark on an empty existence for the sake of earning money alone as the main value and goal.

Who is this book for?

You can buy a book or download it on our website in any convenient ipad, iphone, kindle and android format without registration and SMS, if you want to become rich and successful, get valuable lessons from the "Cash Flow Quadrant" by T. Kiyosaki and Sharon L Lecter.

DOWNLOAD FREE BOOK CASHFLOW Quadrant

Robert Kiyosaki is the famous teacher of billionaires. His popular book, Rich Dad Poor Dad, has become a reference in many networking companies.
Money Quadrant: There is a cash flow in which we earn money, spend it, invest it, lose it, and more. If you cut this cash flow across, you get four sectors.

So, we all start our labor activity when we are 18 years old, we work hard until we are 55-60 years old. It's probably not a secret for anyone that there are four types of legal income, now I'll tell you a little about them.

The first sector is employment.

Employment is a sector where you exchange your time for money, while you receive money only if you are present at your workplace, if you are not there, you do not receive anything.

You get the money that was specified in the contract, and you do not have the opportunity to get more by working in the same place. Your salary depends only on the increase in the volume of work, and hence the increase in the time of work.

This is not welcome, as there is no time left for the family. The money that a person receives from an employer is the minimum that you need to exist.

When you work in this sector, you try to work as little as possible, but get as much as possible, and the employer, in turn, tries to make sure that you work as much as possible and get as little as possible.

People who stop being employed and start working for themselves are called self-employed.

Second sector - Private entrepreneur.

People who open their own business are called IP (Individual Entrepreneurs). As a rule, these people have a higher income than people who are employed, thus it can be said that the income of individual entrepreneurs depends only on how well and constantly they will do their job.

An individual entrepreneur is engaged in his business for 24 hours a day, and at the same time he is completely deprived of free time and is forced to fence himself off from his family and completely immerse himself in the work of the enterprise.

There are a number of advantages of this sector:

1. Income, which is more than in the first sector.
2. You work for yourself.
3. You have 100% of the income from your business.
4. Luxury goods appear.

But there are also a number of disadvantages:

1. Huge investments are needed.
2. Work becomes the "FIRST" home.
3. Huge risk of burnout, tk. all 5% survive in this sector, this is the "SHARKS" of their business.
4. Problems related to tax
5. You pay all expenses from your wallet

In other words, there are more minuses than pluses, these are not all the minuses that can be listed.

Let's take an example. A dentist, he is tired of working in clinics for the state, and he decides to open his own clinic. The deed is done, in the tax order and it starts to work. He works, receives a high income for six months, but the work takes its toll and he needs to rest. He takes his wife, children and goes to rest, say, in Egypt for 1 month. We had a good rest, the dentist gained strength. Arriving home, he realizes that there are no customers, competitors have taken everyone away, there is no money either, and he has to start all over again.

Why did it happen? The fact is that while he worked, he received money, since he had 100% of the income and, accordingly, he himself had to work 100%, but since he left for a whole month, then the work got up for the same period, because no one was working. Consequently, his competitors who worked got his customers and their money. It's embarrassing, but true. The dentist did not like it either, and he moved to the third sector ...

The third sector is Business.

I would like to talk specifically about this sector. As we have already understood, employment and sole proprietorship are in one half of the money quadrant. Why do you think? The fact is that 80% of people are in these two sectors and they receive only 20% of all money, therefore, 20% of people and 80% of money remain, but where do they go? Now I will try to explain to you.

Business is also a kind of entrepreneurship, but there are also differences, significant differences that make it more attractive and possible. Just like in an individual entrepreneur, you work for yourself and receive exactly the income that you earn, but there is one significant difference, in Business there is a team of people who help you throughout your work.

Mr. Ford once said "Take all my millions from me, take all my production, take all my property, but just leave me my team and I will get everything back." We draw conclusions, it is not money that makes a person rich, but his faithful people, his team.

Who is the team - these are people who are engaged in each in their field of activity, each person in the team is an individual. Most often, the team includes people who have certain skills in a particular area, but there are also those who have neither work experience nor education, such people are called “blank sheets”; they are taught what they want to do within the company. The team is selected at the whim of the leader, as they must be trainable, sociable, purposeful, not conflict.

The advantage of Business over IP is that during the absence of the head, the business will not stop, since there is a certain team for this. Therefore, the leader must coordinate the actions of his team, thereby developing his business. Let's go back to our dentist.

... Having moved to the third sector, he opened two more clinics and appointed his dentists in them, i.e. he does not work there himself, but his people. Everything goes well. There are three clinics, but the trouble is, the dentist has a problem, he broke his arm and cannot work in the clinic.

He goes on sick leave and doesn’t work for two months, but it’s not scary, because people continue to work, and the income still goes, in other words, he worked himself, say 8 hours, and received income, now that he has two more clinics appeared, his work remained the same, but here's one thing, now his business is open 24 hours. How did it happen?

The answer is simple, since there are three clinics, and each one works 8 hours, then using arithmetic, we get 24. In other words, they work the same amount, but get much more.

How did it happen that having opened a network of clinics, it turned out that this network works 24 hours. This is the most important principle of business. First you work for money, then the money works for you. Working 8 hours for a business, we then get 16 hours of business work for us.

And each time, expanding our network, we increase the business hours, that is, there are only 24 hours in a day, but a business can work 25, 50, and 150 hours a day. Say FANTASTIC! But they didn't guess.

This is just one advantage of the business, now consider the second.

The second advantage is that there is time for personal life, since money works for us, and not for money, we have the most valuable thing, time, which has always been lacking. Having free time, we are already starting to devote it to our family and ourselves.

The third advantage, the income that we have, exceeds the income many times over than in the first and second sectors. This allows us to discover new opportunities and achieve our goals that were previously unavailable. We become independent people in terms of money.

The fourth advantage is the minimum risk of burnout, of course it exists, but there is no life without risk, which is why it is the most profitable sector in the quadrant.

I think that's enough about business, since you can talk about it endlessly, and the last:

There are several ways to start a business.

1) Franchising is the purchase of a turnkey business. We have a ready-made business plan that pays off in a certain period of time and then goes into profit.

2) Become a unit of the Business, i.e. act as an intermediary, but this is a very bad option, since we are all intermediaries, and this does not lead to anything good.

3) Open a business within the huge companies that are already in this sector, or simply become its partner. Nowadays, this is the easiest and most relevant way.

The fourth sector is the investment sector.

I think it’s not worth talking about it for a long time, as everyone knows what investments are. A few words about the sector. Investments are money invested in property: real estate, movables, gold, bank and much more. This is a kind of Dividend income, income without active actions. It can also include a pension. The investment sector is exactly the sector where each of us would like to be, but there is one thing, but how to get there?

So, it is impossible to get into the investment sector from the employment sector, since there is always not enough time or money there. It is extremely difficult to get there from the entrepreneurial sector, as constant risk and other external factors will constantly distract. The best way to get there is the Business sector, that's where the money and time are.

As we discussed above, 80% of people with 20% of money are on the left side, so where are 80% of money and 20% of people? They are located on the right side, namely in the Business and Investment sectors.

I wish you good luck with the elections of your sector and I hope that my article will help you.