A Blog in Review

Read Part 1 - How it all began 

A couple of chapters into the book “Retire Young, Retire Rich” I discovered I really needed the book “Cashflow Quadrant” to better understand what was going on.  This is the gist of what I learned in ”Cashflow Quadrant”:

There are four ways to make money:

1. As an employee - which was what I was
2. As a self-employed small business owner - which was what I could have been if I had remained as a dentist and opened my own practice
3. As a large business owner
4. As an investor

It seemed that 95% of people were making money through methods 1 and 2 - which Robert Kiyosaki said was the hard way because you had to trade time for money.  If you had to stop working for whatever reason, you wouldn’t be able to earn any money.  Not only was it hard, we were also being punished by the government by being heavily taxed!  Only 5% of people were making money through methods 3 and 4 - the easy way.  Best of all, it didn’t even require their own personal effort to make the money!  Dang!  I really had to get a piece of the action.

Just a note - the main difference between being a self-employed, small business owner and a large business owner is that the small business requires your presence for it to survive.  If you stop working, the business will eventually die.  A large business is one where you could take a holiday for a year and come back to find yourself richer than before you left.

Although Robert talked about becoming a large business owner and an investor by starting with nothing, I confess I couldn’t quite get my head around that idea of making money without first starting with money.  What interested me then was what Robert said about Network Marketing.  He said it was a good route for some people to get from earning money through method 1 and 2 to method 3.

There are really three ways you can earn money through method 3:

1. Start your own business (but one that doesn’t require you to operate it - or at least one that has the potential to be self-sustaining without your personal time and effort going into it)
2. Buy a franchise (like McDonald’s - but that’s pretty damn expensive)
3. Start a Network Marketing business

Options 1 and 2 didn’t seem feasible for me, so I decided it was time to become a network marketer. 

Part 3 - My Experience in Network Marketing

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