Those of you who are familiar with the teachings of Robert Kiyosaki is known about his “Cash flow Quadrant” book and how it enters into many details with regard to the 4 specific groups that we people all fall under.
The 4 groups are called the quadrant of cash flow and goes as follows:
The Employeethe Self-employedthe Business owner and the Investor.
The ideal quadrant for any person who wants to have wealth is to be under the Business or Investor quadrant.
Because it allows you to take advantage of leverage to its maximum potentialthat means that you can follow to increase your income working the same amount of time (if not less), against an employee or self-employed person that only you can do “x money per hour” worked.
Now, Robert Kiyosaki emphasizes continually improving on how to become an Investor, because this is the quadrant that allows passive income to be generated. This is the ultimate goal, to become an investor that can generate passive income regardless if he/she gets up for work or not (and This is my personal goal).
So, in order for this to be achieved in the fastest way possible, Mr. Kiyosaki suggests that build and grow companies to create the cash flow that allows you to “invest”, and, finally, to become a rich “full-time” investor.
Then, what the heck does all this have to do with Forex trading?
You see, there is a false belief that travel the Internet by means of which people tend to believe that the trade is no more than a simple job, when in reality they have no idea of how powerful this “alleged work” of truth in what affects your life!
First of all, let’s get something straight. The Forex trade can be nothing you want it to be:
- It can be a pastime which is very cost-effective hobby that can be added).
- It may be “another job” (as many call it online).
- You can be a business.
- It can be an investment and wealth creation vehicle.
If you understand HOW the structure of your Forex trading correctly, you will be on the greatest journey of your life, Guaranteed!
So have patience with me as I first explain exactly what occurs and the difference between the Business of the quadrant and the Investor quadrant:
#1 Business owners to develop “systems” that contain the employees for them.
These “business systems” are nothing more than step-by-step rules and parameters that the employee must meet in order to two on a consistent daily basis, also known as “jobs”. Some of these rules may be:
- The days that the employee works.
- The time that The employee works per day.
- The whole of the responsibilities of the job with success, whatever the business may be.
In contrast, the owner of the company will pay the employee a salary, while the owner of the company, it creates the cash flow that then allows you to “invest”, with the ultimate goal of creating a residual income.
#2 Investors create their own money systems that create more money for them.
These “investment systems” are nothing more than the input, risk management and exit rules for the investor of two to stick to grow your portfolio over time in a systematic way and in a professional manner.
It is the starting point to get the big picture yet!?
The Forex market, or any other type of trading, contains an amazing composition that not many other types of businesses provide.
You see, in a Forex trading business to automatically take advantage of 3 of the best quadrants, even though you still have not realized!
Now, let me share with you exactly how this applies to the operations of career change:
The Business Of The Quadrant:
The “owner” of the Forex trading Business develops a system for your “employee” can make his “work”.
This system contains the hours worked per day, days worked per week and the responsibilities of the job, that is to say, to control and manage the risk accordingly.
The Investor Quadrant:
This person develops a money making system that allows you to earn money FROM money.
He is also the owner of the Forex trading Business. This business is your INVESTMENT.
The Employee Quadrant:
This is the person who has the “risk management”, working for the Forex Trading firm.
You are paid a monthly salary for doing their job correctly.
But what’s interesting here, is that YOU are all three quadrants, built in a single.
You are the owner of the company that created the cash flow that allows you to invest and earn more money.
You are the investor who invests money and makes even more money.
You are the employee that the offices of the company and is paid a salary.
The interesting part is that because you are the owner of the company, the investor and the employee all in one, to take full advantage of leverage.
What does this mean for you?
- Work a set number of hours per day, as an employee, with the difference that your income grows exponentially over time with no additional work involved.
- You are the owner of a business that grows consistently and generates cash flow which in turn allows you to invest.
- You are an investor with a business that generates a steady cash flow, that you can now re-invest and make even more money out of your money.
Finally, one of your objectives should be established as a proper business entity not only to protect, but also to take advantage of the huge reductions in taxes that the government will give.
So get to work! And remember, you are an investor with a positive cash flow business and with a very hard job based on the performance of the employees.