Home Based Business, part two

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By BirteEdwards


Road to Financial Freedom

In an earlier article I talked about economics throughout history, as I see it. I also talked about man's inalienable human right to economic or financial freedom and that we today have a greater ability to choose how to move from economic dependence to economic freedom

The reason from all this talk is that I am seeing a continuous growth in the home based business. In fact the whole idea of working from home has always existed, but in different terms than of today.

One man and one book in particular opened my eyes to looking a work and income generation in a new and different way and to the option of choice, and what is involved to move from dependence to freedom. This man was Robert Kiyosaki with his two earliest books, Rich Dad Poor Dad and The Cashflow Quandrant.


Books that influenced me

Rich Dad Cashflow 101 Rich Dad Cashflow 101
The RDPD Cashflow Board Game. Great fun, and a great teaching tool for young and old. Played it many times and with quite young children.
Price: $158.00
List Price: $229.99
The Science of Getting Rich - Using The Secret Law of Attraction to Accumulate Wealth The Science of Getting Rich - Using The Secret Law of Attraction to Accumulate Wealth
His teachings and writings influenced me profoundly even before his star appearance in The Secret
Price: $57.77
List Price: $89.95

The Cashflow Quadrant

He begins by outlining the four basic ways of generating income. He also further explains that the vast majority of people actually live under the illusion that they through hard work can obtain financial freedom. In all his books he goes totally against the concept that hard work is the solution to financial freedom. He says "smart" work is the solution.

The reason the concept is known as a quadrant is that there are four ways of generating income.

1.  as an employee - E
2.  as a self-employed - S
3.  business owner - B
4.  investor - I

The vast majority are in the two first. In fact, Kiyosaki says, there is practically no difference between E and S, and even considers S to be worse than E, as the self-employed does not have the same benefits that an employee has such a pension plans, health insurance and paid holidays. If the self-employed does not work, generally there is no income.

Self-employed are small business owners. To be in B means to have a business with 500 or more employees. To be B is to have a business that will generate income without the need for the business owner's constant presence.

There are only very few in the fourth category, investors, who are able to make a full time income generator from investments. Kiyosaki also explains that many find themselves in more than one category.

It used to be rare that people were both employed and self-employed at the same time. However both of these may be trying their hand in four. Many self-employed have believed that they are in category three with a strong interest in four.


The Road to Home Based Business

With the growth of the home based business more and more are in the self-employed group, but with aspirations of moving into category three, true business owner. To move from being employed to self-employed is easy for some, and a staggering undertaking for others, due to the ingrained concept of work stability, pension plans and health care supplied by the employer.

Many dream of becoming rich, and you can actually be that in all four categories. But you have to determine for yourself what rich is. There is a difference between rich and financially free. Many need to make a mental and emotional leap in order to move from the E and S, to the B and I.

Once we have made the mental and emotional change needed to into the business owner and investor categories, it is time to understand what options are available. To take actions within those options at too early a stage will generally lead to disappointment and failure.

Disclaimer

I wish I could put @ on this but there is too much from other sources.

You could also visit Lessons of Life Coaching for more and varied views on marketing, self development, and more.

Comments

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Pete Maida profile image

Pete Maida  says:
4 months ago

He is really big now. They are advertising his seminars on TV all of the time.

Pearldiver profile image

Pearldiver  says:
4 months ago

Hello Birte.. Good on you for this thought provoking hub. The ability to think outside the box is both a skill and a hinderance unless you completely filter the negatives that you will encounter with so many lazy thinkers and at that point you can gain the benefits of the skill. Shalom my friend.

BirteEdwards profile image

BirteEdwards  says:
4 months ago

@Pete, he has been around for quite a while now, and still growing, because his message is sound. I read him first time some 8 years ago.

@Pearldiver - you hit it right on. To be successful, to achieve anything, we have to think outside the box, and stay with it, not let anyone or anything interfere.

mayhmong profile image

mayhmong  says:
4 months ago

I can't imagine myself being in category 3. If that were to ever happen, I'll be the niciest boss to the good ones and be a pushover to the slackers. mwahaha!

BirteEdwards profile image

BirteEdwards  says:
4 months ago

may - with that attitude you most definitely can be in B (category 3). Who says that a boss has to be awful to the good workers. You have to be on your toes with the slacker ones.

Nobody says we all have to be in any one of the categories. Each one is legitimate and needed. Bot no one should feel trapped in any one of them.

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