Why Insurance

This is famously created by Robert Kiyosaki, author of Rich Dad Poor Dad, the New York Times bestsellers list for 6 years.

Our salary or income whether we work as an employee, designer, freelance, doctor, own cafe or business, investment profit, they fall under one of these 4 quadrants.

There is no right or wrong way of making money, it’s about which one serves you best and makes you happy and fulfilled in the process of earning your income in the long run.

Employee

Being an Employee, you have a job that you sell your time for money. Usually they need to work for a fixed number of hours, and by end of the month, they get paid for the time they worked. We only have 24 hours a day, there is always a ceiling to how much they can work and earn.

It offers high sense of security in the beginning, but not in the long run because if they lose their job, they can’t survive.

Self Employed

S stands for self-employed or skilled professionals such as cafe owner, freelancers, lawyers, sales, and anyone who is highly paid for his skills.

It offers lots of flexibility to choose when and how frequently to work. But they usually struggle to take some new projects to work on, and as a result, they will be wasting more time struggling to find something to work on rather than making money.

The common words they use, “I can do the job better than anyone else.” The only way that they can make money is through working. The moment they stop working, money stops flowing. When these people need more money, they work for more hours so that they can pay their bills. Thus, they are busy working, and usually exhausted over time.

Business Owner

B stands for business owner. They leverage on system to create wealth. The system allows our effort multiplies by building a team, and therefore profit is multiplied, too.

The reason business owner in this quadrant can generate multiplied income is because 1 X 10 teammates = result of 10 people, and 10 X 10 = 100.

So their focus would be hiring and building their people to be successful, to create value to the marketplace. However, it is not free money as it takes time to build people to expand.

Investor

I stands for professional investor. According to Kiyosaki, investors are at the highest level of being financially secure. As an investor, all you have to do is to make your money work for you. This is to say that you do not need to be involved in any work for you to get money. All you have to do is to invest your earnings into real estate, shares, or bonds, as long as it is an asset that will produce good dividends.

The main reason why investors choose to invest what they earn into dividend-producing assets is so that they can stop working altogether and keep earning from what they have invested in.

What investors mainly do is looking for investments that can generate profits/passive income. The more the number of investments that an investor has the more money they make. The trick is that they use other people’s money to get those assets. Downside is, they need quite a sum of money to make more money.