Only 4 Legitimate Ways to Make Money
My Story
One day I graduated from high school and needed to transition immediately into adulthood. My parents sent me off to a travel and tourism school in Kissimmee, Florida, where I learned about working as an airline stewardess, working in hotels, and other areas of travel. I returned to Baltimore and got a job a hotel making $5.20 answering phones as a PBX operator. That was far from the dream of traveling the world. But I knew I needed a job. Nothing else ever entered my mind. It’s the responsible thing to do, right?
I was going on 50 years old when I heard about Robert Kiyosaki’s Cash Flow Quadrant. Basically, it says there are 4 ways to make money:
As an Employee
You have a job. You work for someone else or some other organization, helping them to fulfil their dream and/or mission. You give your time in exchange for getting a salary.
It’s difficult to attain wealth as an employee- if that’s all you do is work for someone else. This is where you’ll find most Americans.
On any given Monday, we’ll likely find you at work- not stretched out on a beach somewhere.
Self-Employed
You own a job. You work for yourself. Depending on what your business is, you make the phone calls to line up business, perform the work or deliver the product, do the administrative tasks, etc. You may outsource parts of the business, but as a self-employed person, you are responsible for making sure everyone gets what needs to be done, completed on schedule. Many times, everybody really comes down to “just you.” I jokingly refer to this a self-employee. You give your time in
exchange for getting revenue.
It’s difficult to attain wealth as a self-employed individual if that’s all you do- because your time is limited. You can only do so much.
On any given Monday, we’ll likely find you grinding- not stretched out on the beach somewhere.
Business Owner
You won a system. People work for you. Someone else is overseeing the day-to-day operations, delivering the services and/or products, and handing administrative task; freeing up your time, while you still make money. You may stop in any time you want, but you are making money by leveraging the use of people and systems to create.
It’s easier to attain wealth as a business owner, because you are leveraging other resources to allow you to do more.
On any given Monday, we might find you stretched out on the beach- if that’s what you wanted to do.
Investor
You own investments. Your investments are working for you. Investments can range from stocks, bonds, real estate, intellectual property, etc. You put money into things that will generate more money for you- without having to be highly hands on. For example, you invest in a mutual fund and it rides out over the course of decades building compound interest and potentially growing exponentially.
It’s easier to attain wealth as an investor- with proper financial counsel and/or education. You make a return on allowing others to use your money in exchange for a handsome interest/return.
In Conclusion
You will find it difficult to attain wealth if all you do is work for someone or work for yourself. To come out ahead, consider how to get from Employee/Self-Employee to Business Owner/Investor. In the meantime, use them all. Start small, get educated, and grow as you go.
