Jun 22, 2009

Income generation methods

Everyone needs income. Only those who have enough for their needs say "money is not important".
Let us understand the ways available to us for earning income.

Robert Kiyosaki in his book "The cash Flow Quadrant" explains the 4 ways of earning income

1. (E) Employee :- These are people who are in jobs trading their time and knowledge for a fixed income. They are working for others dreams. Robert Kiyosaki says that very few people have created wealth following this path. Why would you work hard all your life for something which you can't own, pass it to your children or sell it ? You retire with a 40-40-40 plan. Work 40 hours a day for 40 years and retire with 40 % of income to maintain your lifestyle.

2. (S) Self Employed or Small Business:- These are people like CA, doctors and consultants who are trading their time and knowledge for income. Also the business people who have to be always present to run their business ie shopkeepers, small manufacturers etc.

3. (B) Business :- Big business people who use a system, leverage their time and money by building Teams from E & S quadrants ( workers, contractors and investors) to run their business. Their business runs even in their absense because of the system and thus, they are free to use their time to expand their business, diversify or even enjoy. These are people connected with their Inner Passions (Dreams) and living that passion daily. They are charting their own course and are master of their own destiny.

4. (I) Investors :- These are people who have enogh income coming from their investments to take care of their lifestyle. They are not working for money but their money is working for them. But to invest you have to have a lot of money, time freedom and most important, a certain EQ.

Left Quadrants (E) & (S) 90 % people are here chasing 10 % money. They are working for money and have ACTIVE income. They are " Living their lives at the mercy of others".

Right Quadrants (B) & (I) 10 % people are here enjoying 90 % of the worlds wealth. They have created PASSIVE income and do not have to work for money any more.

The basic difference between the Left & the Right side is the core values or their way of thinking. Those who attempt to move from Left to Right without changing their thinking, have to face a lot of struggle from within. Some of the areas of struggle are :-

1. Creating a deep passion & commitment without letting their Dreams becoming hazy.
2. Belief in a system & belief in their own capabilities
3. Moving out of their comfort zone
4. Resistence to learning the right things
5. Changing our own habits and developing the habits of successful people.
6. EQ or the emotional qoutient responsible for our actions, reactions, fears and decisions.

Anyone moving forward faces problems but a successful person calls it challenges and overcomes them to keep moving forward. A WINNER NEVER QUITS AND A QUITTER NEVER WINS.

Choosing the right quadrant for your income generation

1 Identify your dreams. Don't mix them with income generating path which are just means to get your actual dreams.
2 Choose a quadrant which will help you achieve your dreams and look for different possibilities in that quadrants which meets your requirements.
3 Be passionate about your dreams and the path you have chosen and pursue it with clear Focus and inner clarity.

Consult some knowledgable people

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