Money Making Online

Based on Kiyosaki’s work

There are 4 types of people as for making money refers: the employees, the self-employees, the business owners and the investors.

However you can extend that division a little to other aspects of the life because these 4 types of ways to make money embody 4 types of personalities, too.

The employees don’t like uncertainty. Many times, they prefer the security from an employment than the opportunity of earning a lot of money by a business that has certain level of risk. They like to have a written contract that assures to them that for one or two years they won’t have to worry about the money because they will have a stable income. For an employee, the security is more important than the freedom. In fact, sometimes it is more important the security than the salary, and sometimes they prefer stay in employments with low-wage instead of taking a risk by being a self-employed or even by going to another employment where they would have a better wage but where they could be only hired temporarily (for example while the business is starting up itself). For many employees the fact of having to work many extra hours, neglecting to the family and even by doing a task that they hate, is compensated with the fact of receiving a “safe” income and saving for their retirement. It is not really that they like to live to work (with some exceptions) but the fact of seeing themselves one day without knowing how they can get money to put food in the table terrifies them. However, many employees don’t think in this: nowadays the job market is so unstable that is really risky to think that our future will always be safe in the hands of the boss, the company or the government.

The self-employees care less the security and they prefer to do the things by themselves, without depending on other people (although everybody always depend somehow on the other ones). Generally, the self-employees think that they are very talented in their profession or business and usually, they are very talented. A self-employee like to work for himself. With a job where they don’t have autonomy, they will get bored and even will become rebellious. Many employees that confront their bosses and discuss the orders belong to this type of person and after their bosses fire them or they abandon their job, many of them go and create their own business where they are generally who do all the tasks: from porter to president of the small firm, because besides of the limitations of resources in order to create a big business, the self-employees usually distrust too much of the other ones and they don’t like to delegate in some employees’ hands their business or to associate themselves with friends in order to create a big company. The problem with those self-employees is that this distrust forces them to work harder than any other person. We can listen from them some sentences like this: “now I work 20 daily hours, but I am satisfied by working for myself and not for my boss”. If that makes them happy, the self-employees can be very prosperous, but many times if they don’t invest their money appropriately so they don’t need to work so much in the future, then they will be aged very soon and will neglect to their families because they must compete with other self-employees and even with big companies. In those circumstances, sometimes the only way to obtain contracts is by lowering the prices in a great percentage although the work is more intense, even.

The business owners love to take risks, whenever the recompense seems big, although it doesn’t mean they do the things in a scatterbrained way because nowadays a true business owner must have basics in topics like administration, accounting, computer science, finances and marketing. It doesn’t mean that they have to be expert in all those topics, but they must know at least its more useful basics. The business owners care less the security and they adore the freedom to create a company and the satisfaction given by the progress. The difference with the self-employees is that the business owners only like to do the most important work: the thinking. They delegate the operations of their company to skilled people in the respective matters. The business owners like to surround themselves with intelligent people and they trust in those. They want to work with the best people. The business owners are leaders. They know that nowadays 9 of each 10 businesses will fail, but even so to think about an employment is not in their possibilities unless they are in an extreme situation. They are always creating and when the difficulties come, they prefer to continue the battle instead of resigning themselves to simply to look for financial security. Many times, we can see a business owner who is not rich with some financial difficulties, with some debts and selling their car to pay the employees. In that point, the employees admire the courage of them but also feel some pity for them. Then, in next years, many times these business owners have a lot of money gotten with the help of the perseverance, creativity and intelligent collaborators. And the employees, on the other hand, will continue thinking that hopefully they always will have a job and be fighting in order to save some money for their retirement.

The good investors hate to cling to the financial security and they are risky by investing the money in order to earn a lot. A real investor is financially free because his revenue overcomes to his expenses and he has enough money and some good investments to live without working during a lot of time. However, they hate to cling to the financial security and for that reason they always are looking for opportunities where the money works harder for them and so they should never work for money. If you really want to become rich, you should be visualized in this level, and need a long-term plan to be here. To arrive at this level we need three things: education, experience and money surplus. The good investors know about finances and accounting, they know how to read financial reports, they know about the Stock market, they understand the terms of the economy, they are informed, they are not only giving their money to a broker, so he can diversify the investments portfolio and maintain the money in a safe state, they make decisions supported in their advisers in order to invest in businesses that have the possibility to generate some big recompenses. The good investors have experience because during years they have risked with their money by losing it many times and by earning a lot of in other cases; with the years they acquire financial wisdom that helps them when they need to identify good opportunities. The good investors have money surplus; they don’t use the money of their children and they don’t get a mortgage loan to invest; if an investment fails, they will have less money, but the normality of their lives is not affected too much.

I want to be rich and have financial freedom. Then, I want to become a good investor. But, I can not become a good investor if I don’t have money, because one of the conditions in order to have financial freedom is to have money surplus. Therefore, my road to arrive there, is by building businesses that can generate me enough amount of money to begin to invest, first by using low-risk investments and when I have enough money, I will take more risk, and simultaneously I will learn topics like the accounting, finances, stock market and economy.

It is not an easy task, but if I don’t win the lottery or I don’t get an inheritance, I don’t see another road.

The good news: with Internet there are many more ways of creating a business without having a lot of money and with the advantage of the exponential growth that it give us. What do you think?

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Robert Kiyosaki

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