More specifically, you’ll have to determine what products or services you’re going to provide, and who you’ll offer them to. You must decide exactly how you’re going to become self-employed. This is an understandably scary step for people. If I was ever going to move to the wealth-building side of the Cashflow Quadrant, I was going to have to shift to Quadrant #2. And while I felt like I was building a business (it was a mostly commission-income situation), I still had a boss as well as the risk of being fired. That meant my income potential was limited. Very few people ever get rich going this route. After all, it’s safe and relatively predictable, and can even provide a comfortable living. On the positive side, I had regular hours, a steady paycheck, and important benefits, like health insurance.Īll those advantages are why most people stay employed through their entire working lives. When I graduated from college, I got a job in a brokerage firm. And if you’re not actively working, you’re not earning any income. Translated, it means you can only make so much money. The basic limitation is that you only have so much time. But it’s where I was when I read Rich Dad, Poor Dad.Īs an employee, you’re trading your time for money. It’s the standard advice, but it’s far from the best path toward building wealth.
You go to college, get a degree, get a job, hopefully stash money in your retirement plan, then retire when you’re 65 or 70. It’s what people are trained to do, and the course most follow. That’s because each enables you to leverage people and money to increase your wealth, even while you’re busy doing other things.
The second two, Business Owner and Investor, are on the “rich side” of the Quadrant.
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