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Cash Flow of Life

Where you want to get your income from.

Cash flow of life

Before you start making money you need to determine from what section of the cash flow of life you want to generate your income from. This is the way I see it and many others too, there are four parts to the cash flow of life. The first part is the employees section. That’s where most middle class people generate there income from. The next part to the quadrant is the self employed section. The self employed are the ones who own businesses but think it would be done better if they did it themselves, then if other people did it for them. The last two parts of the quadrant is the business owner and the investors. Business owners, the ones who have employees working for them and can generate income without being there. Investor are the one that risk there money in a category that they are knowledgeable about, be it real estate, stocks, or any other type of investments.

 

The employees

 

People that are employees usually use words like “safe”, “secure”, and “what if”? The employee section of the quadrant is a section that is mostly made up of the emotion fear. People in this particular section of the quadrant might have thoughts like “what will my friends think of me if I fail” or “ this is not a good time to start a business” but in reality this is not there mind speaking it is there emotions. They are scared to lose and fall, but you don’t have to lose or fall, they can win and get to the top where they really want to be.

Self employed or Business owner

 

There is a difference between people who are self employed and business owners. People who are self employed do not have employees and can not generate cash flow with out being there. In other words they are the company. For example, a person who owns a small plumbing company would be considered self employed because if he didn’t work their would be no income. People that are self employed also might have control issues, they want to be the boss they don’t want to have one, but they also think they can do a better job then the employees they hire. Business owners are practically the opposite. They love to surround themselves with people that know more about a subject then them. While people who are self employed say things like “If you want something done right do it your self.” Business owners say things like “Why do it your self, when you can just hire someone else to do it.” An example of this would be, William H. Gates. You know him, biggest software company in the world. If he doesn’t go to work he still makes money.

 

Investors

 

The investors generate money with money. This is where the super rich make their mark. They have no need to work for money, because they have money working for them. Investors turn money into wealth. Although investors do the same thing there are still deferent types of investors. One type of investor is the one that doesn’t like to risk much and the other likes to risk it all and is not afraid to lose. If you want to become truly wealthy, not rich. This is where you start building.

 

Conclusion

 

There are many ways to generate cash flow and increase your wealth; you just need to find the way that’s right for you. You need to try different ways to generate income. You also need to know the difference between business owner and someone who is self employed, and admit that you need help sometimes. The most important part of all you do not let your emotions take over your thoughts and do the thinking. Brains=Success Emotions=Confusion

 

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  1. ksims19simsk

    On September 25, 2009 at 10:21 pm


    great work!

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