According to Robert Kiyosaki, author of the worldwide bestselling Rich Dad Poor Dad book, people are financially divided into four groups. The first two groups are classified as active income people. They are called active because they have to exchange time for money. If they stop working, they stop earning money. Active income people include:
1. The employed - Employees work for a system (a business, a government, whatever). This is not a favorable setup for wealth accumulation and financial liberty.
2. The self-employed - Self-employed people are a system. If they stop, there is no system left to work on its own. They, like the employed, must work, must exchange their time for money, otherwise, they are not paid. This is also not a favorable setup for wealth accumulation and financial liberty, although it does have the added benefit of allowing for greater financial growth than being employed.
The next two groups are where you usually find the rich and wealthy, and more importantly, the ones who have both financial and time liberty. These are the favorable setups for wealth accumulation and financial liberty and this is where you need to move to. These are called passive income earners. They are called passive because they do not have to exchange time for money. In other words, they have both financial and time liberty. Passive income people include:
3. The business owner - she or he owns a system but does not work in it. A business owner has set up a business in such a way that it is a system that can be run by anybody (just like a McDonald's franchise). They then hire workers to plug into the system, work for them, and bring them money.
4. The investor - she or he invests in a system but does not work in it. An investor has investments in systems that work for them and make them money.
Do you see the key difference between these two groups, the active and the passive earners? The people in the first group have to exchange time for money. If they do not give up their time, they are not paid. The people in the second group do not have to do that. They may initially need to spend time setting up the system, but once it is built, they no longer have to exchange their time for money. They take back control of their time and this enables them to live life as they wish. The system works for them and brings them money even while they sleep! How good is that?
The system is the solution. It allows for predictable, good results and frees up your time so that you can do other things that you enjoy or even start other businesses (because you have the free time to do so)!
So the question is, how can you move quickly from the active to the passive camp? Well, there are several ways, but the most affordable, yet most overlooked, is network marketing. T. Harv Eker, multi-millionaire and author of the best-selling Secrets of the Millionaire Mind, says this about network marketing in his book:
"...network marketing can be a dynamite vehicle for wealth. But, and this is a big but, don't think for a minute that you are going to get a free ride. Network marketing will only work if you do. It will take training, time and energy to succeed. But if you do, incomes in the range of $20,000 to $50,000 per month - that's right, per month - are not uncommon."
Have a look at what Robert Kiyosaki has to say about network marketing. He says it is a great asset-producing vehicle, one that allows you, unlike other businesses, to create assets that create more assets that create more assets that create more assets.... In other words, you recruit representatives (assets that add money to your pocket), who in turn recruit their own reps (more assets that add money to your pocket), who in turn recruit their own reps (more assets that add money to your pocket)...
So what makes network marketing so good when done in the right industry and with the right company? Well, other businesses grow linearly while network marketing grows exponentially (rapidly becoming greater in size)! Do you need another reason?
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