Article by Marcus Abreu

In order to understand how you can make hard cash you need to first pick up what are the different ways to make money and what makes the difference between those that hard cash seem to flow to and the ones that always seem to work like a dog. But if I can quote GI Joe- “Knowing is half the battle!” There are several ways that you can make money. I have seen it stated in many different ways but the most excellent is in Robert Kiyosaki’s book Cash Flow Quadrant. He separates folks into four general quadrants with Employee and Self employed on the left hand side of a cross and Business owner and investors on the right hand side of a cross.

So lets divide the people in the way Robert sees them just as a matter of ease.

1. Employee- This quadrant is pretty self explanatory. These are people that work for a living, for the most part these are the worker bees. The folks that go to school to get a good job so that they can get a good pension and retire comfortable. The challenge here is that for most folks this will not be their payoff. There will always be more month at the end of the hard cash. Many of the folks in this quadrant when in financial predicament believe that the way to fix it is to either work more hours, get another job, or go back to school to get a better carrier. Einstein’s quote fits beautifully in this context “We cant solve problems by using the same kind of thinking we used when we created them.”

This is the main thinking that all of schools are based on. Even schools as Harvard Business School most folks graduate to be high paid employes. The sad thing is that these folks work just as hard as those that are very well-to-do they just see the world differently.

2. Self Employed- this is the next group of people. This one is a little more subtle, because many people that maintain that they are small business owners are in reality self employed. Here you have the “work until you drop” retirement plan. Although I have seen many comfortable people in this quadrant the price they pay is very high. The majority of “millionaires next door” seem to lie in this quadrant, according to Thomas J. Stanley and William Danko. These are usually professionals such as lawyers, doctors, bankers. If they know how to handle their cash and with a little good fortune they can end up as investors and get out of the rat race. Interestingly for the most part they end up laboring well beyond the age of 65.

3. Business owner- This quadrant is the first quadrant in which the bona fide wealth lies. I’ve heard but I can’t prove it with fact that- 3 out of 4 of the richest people in the world are business owners. But not just small businesses, but in big business. These are people that work ON their business and not IN their business as Micheal Gerber would state. These are not usually small business owners. These are folks that if they left their establishment for a month the corporation can continue growing. Unlike the small industry owner or self employed where the business is dependent on them, the big trade owner has created an entity that is independent. Being in this group usually means having to deal with specialized knowledge. Very few people will be able to make it in this quadrant it requires a mentality that most folks don’t have. But these folks can make the most of leveraging other peoples time and efforts. Just think of corporations such as Microsoft and franchises like McDonald’s.

4. Investor- this is the other quadrant where treasure resides. This quadrant is great but you need to learn how to invest. Investments such as real estate, silver and gold and the stock market. These are not to be confused with the people that purchase mutual funds and 401k hoping that they will have a retirement. These are the people that realize that they need to be actively involved in their financial future and find the right people to guide them to that end. They take personal responsibility for their investment decisions.

The goal of Robert’s quadrant is to simplify the concept of where you want to be in order to make the most hard cash. The goal is to transition from employee and self employed to business owner and investor. I think that Network Marketing allows you to be able to run a business in which you don’t have to know how to hire and fire. You don’t have to deal with workman’s comp, social security, and all the other headaches that come along from owning a big business. You don’t have to have specialized knowledge or large reserves of cash to get started. It is a multi-million dollar business that when set up properly you can leave for a month or a year and still get paid. Network Marketing is a business where you can take advantage of the same things the big business owners take advantage of such as leverage. And still have a simple business. Awesome, right!!

Where are you and where do you want to be? Are you an employee or self employed, are you a business owner or investor? What is the easiest most productive way to become a business owner or investor? Realize that not everyone that starts their network marketing business will be successful. Possible failure is the payoff of any business or profession. I do suspect that most folks will fail at any endeavor, it is life. It seems like the 80/20 rule is universal, sometimes 90/10.

About the Author

Dr.Marcus states “I do believe that some of the people that fail it is not because their lack of trying it is because lack of skills.” If you feel that there has to be a better way. If you are willing to make a change in your life. Check out free training he is offering.

Tagged with: Four • General • Money • Types • Ways

Filed under: Socially Responsible Mutual Funds

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