Copyright (c) 2007 WealthBeing
Cashflow Quadrant identifies four ways in which individuals can earn money: as an employee, as a self employed worker, business owner or investor. In Robert Kiyosaki's book, to be truly financially independent, people must operate as an investor and business owner rather than as an employee or self employed worker. This is because as a busines owner you are able to generate 'passive income' through your business, even when you are on holiday or taking a break. An employee has obvious tax disadvantages and a self employed person only earns money when working. Once they stop, so does the money.
Athough many recognise the potential in this argument, individuals will often choose to stay working as an employee, even in jobs they hate. Some of this is to do with fear of the unknown or their capacity to deal with risk. Being an employee feels more comfortable. They like to point out those business owners who have failed. The statistic that 9 out of 10 new businesses fail is enough to reinforce the message that being a business owner is hard work and full of risk.
There are many successful business owners and investors in the world
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Got a Question? Ask.
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Frequently Asked Questions
Is there standard hours for a salary employee?
By: employee | 10-10-2007
is there standard hours for a salary employee?
Employee child care benefits
By: SheilaTK | 20-09-2007
How can I start child care alternatives for my employees?
Is the Graphic Design market profitable as a self-employed worker?
By: Bella | 08-10-2006
Hi, people lately tell me I am very good with my hands and that I should consider studying graphic design and illustration I am not that young anymore and I was wondering how is the market in this field? Is there a chance to make a living as a self-employed? Or should I try the advertising and graphic design firms/multimedia production companies?
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