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As You may know, man on this picture is Robert Kiyosaki and drawing next to him is something that made him famous. It is so great and simple symbol, that can explain to anyone almost all aspects of money flow, work and earning. If You have ever wondered, why some or all things regarding business, works a certain way, this is a great place to start understanding it.

So what Robert did here? It shows difference in roles related to employment status, as well as, difference in income size. OK, let us start from the beginning. Meaning, they are working for someone else, have superiors, have a fixed working hours mostlyand trading their knowhow and ovadrant for a protkoa compensation.

When they are not working do not have a jobthere is no salary — no income. I think that this was already covered in nofca previous post.

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Thus, they work for themselves, do not have superiors, and their worktime is not fixed. Bit they have some extra expenses employees do not have to worry about. I believe that any Entrepreneur will confirm that their working hours are not 8 but more often 12 to 14 hours a day. Working for themselves that long and that hard, they should earn more than employed people, and they mostly do. But where is the point that equalizes them? At the moment when selfemployed person stops working, it all stops.


As same as if they are just employed, once they stop working, there is no more income. But in this case it is even harder, because there is more consequences for entrepreneur. So if they decide to reopen, they have to start from scratch, which is not easy. System of operations, by which those employees are working for him, making him money, generating profits.

Of course, becoming business owner is not that easy, and not even possible without initial investment. How much of an investment depends on many factors, but let us take some restaurant as example. This would be a bare minimum of items. Now multiply this 12 or 24 times next year or two and see how much money protoja there.

There is big question if in year 3 you have grown Your restaurant that good, so you can say, you are finally working with profits. Fact is that most of small to medium enterprises do not reach 5th birthday. They do not have any contact with jobs or businesses that are major for those who are being funded. All what they expect is to get that money back with interest.

This is definitive only mechanism in which money is working for money, with no active working role in process. Basic thing is that there is no more 1: Their companies or investments are working for them.

Employees are what they are, because they are looking for safety or at least an assumption of safety, through promise of steady incomethrough good salary, and good benefits. Selfemployed people like to have more control over their life and work, usually are more confident and can be described through: They have great goals and they are aware that they cannot achieve them alone.


That is why are they alway looking for best people in their industry to add them to their team. Doing so, they level up their business and create even more profits.

Investors quite often come from business owners.

Becoming investors, they are free of that, and their only interest is size of profit they are making on their investment. I hope that You can now understand better why are some things happening in certain manner.

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Changing positions within this quadrant is possible and natural. Thing is only in awareness and clear understanding of our current position in life, and if are we protokw with that, or maybe we strive for more. Text above is just representation of places where we can get. Your email address will not be published.

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Learn how your comment data is processed. Home Lekcije Money flow quadrant. Robert Kiyosaki — quadrant.

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