How And Why Money Works?

Money Functions And Reasons

In this post, I am going to reveal how and why money works.

Because truth being said, MOST people only WANT to make money but they DON’T really understand how it works other than conventional but now obsolete wisdom from their teachers and peers.

At first glance, it may seem trivial as you probably assume like most people that you know everything.

But hold on your horses!

If you think you do, why do you need a job in the first place or still working for your boss?

Author Of Wealth And Investing Books

With all that aside, I believe you have probably heard of Robert Kiyosaki and even read his books.

Such as Cash Flow Quadrant, Rich Dad Poor Dad and recent Fake Money, Fake Teachers, Fake Assets which drew a lot of controversy.

According to him, there are 4 ways to make money.

4 Quadrants Of Making Money

1. Employment

The first way is what everyone knows since we have been conditioned by our parents and teachers from young to believe that getting a job is the first step to make money.

While it is true that you can get a fixed salary every month and bonus come end of every year, you do not have time and location freedom.

For your time is basically locked up by your boss in what he perceived as your time bank with which he will dictate when you turn up for work, how long you should work and how you perform as your net worth.

Since you do not have capital but simply using your time to trade for money through what you are employed to do.

Unless you are a working parent, you have very little room to negotiate as employee.

2. Self-Employment

The second way is self-employment is which you can do a side hassle, freelance gigs or start a small business yourself or with a close buddy.

Does not matter if business is on-or-offline.

While you have time and location freedom, cash flow can be a problem in the initial weeks, months or even years depending on what and how you promote to others.

3. Business Ownership

The third way is to start a business on a bigger scale.

As in brick-and-mortar businesses like shops, restaurants and offices what your ex-bosses do.

You rented those property spaces and hired a few people to work for you and lessen your burden.

Besides making them happy, you also have to make your customers and landlord happy.

As well as your family and yourself if you have enough money left after paying for those every single month until your rental contract with landlord ends.

Before you even start a business and make profits, you need big capital to cover all these in contrast to self-employment.

4. Investing

Not but not least, I will touch upon investing.

Unlike the previous 3 which requires more of your time, effort and some money, this one requires more of your capital I prefer to reterm money as and mental strength.

Regardless of what you invest, I need you to understand that winning and losing money is part and parcel of all investments.

The sooner you realize and accept this as a fact, the better it is for you and people around you .

Having said that, let me ask you if you are a business owner or intend to start a business.

1. How do you raise capital?

2. Can you raise capital without borrowing or even looking for angel investors?

That brings me back to Robert Kiyosaki.

Robert Kiyosaki's foster daughter

Do you know what he tells her when she is still young and studying?

This is what he tells her:

“Instead of studying and trying to master various subjects in schools, why don’t you just focus on one and be really good at it?

At the same time, we as parents can help you to invest so that over time while you are developing your skill, your money will also compound and grow over time.”

So having said that, the answer to how and why you should make money works for you is investment.

That brings to people a new set of questions in their minds.

1. What should I invest in?

2. Who should I invest with?

3. And most importantly, can the person I learn and invest with be trusted?

That is exactly why I created this site to address those questions.

In my future articles and videos.

Meantime, you can also watch my video version on this below.