How Do People Get Rich?

I admit that indeed, the concept of a wealth is difficult to understand. Wealth distinguishes us from others and turns the palms upside down. The key is knowing where and how the money flows. That distinguishes the rest of us from the rich. That’s why the rich are on holiday Austria, while the rest are wrestling in front of the computer. Let my humble writing tell you a bit.

Cashflow Quadrant

If you have read Robert Kiyosaki’s “Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom“, you might know the concept of wealth is where are you in the quadrant. If you haven’t, let me show you:

 

Cashflow Quadrant wit an arrow
Cashflow Quadrant with an arrow

 

At the bottom, Employees in E quadrant do certain functions and get paid either an hourly wage or a salary. The income is 100{2b74503c6d54fbb70c5b6b7318afd0dccb2199033ff1b0afa192bc55eb8e68dc} derived from his / her work activities. That means they have only one income factor and cannot be multiplied. If they do not work, then they do not get the money. They cant leverage because their income is directly proportional to the number of hours worked. But, Buddy, why do they still want to be in a cubicle? No, they want to leverage their income and their life, but they tend to choose secure and safe jobs.

Small business and self-employed people belong to S quadrant. They have a running business, but they do not invest in the business. Therefore, they have a stagnant business waiting for time to crush them. B quadrant is where the fun begins. Business in this quadrant has a system. This system has failed several times to reach the peak of glory.  In starting a business, we can imitate how the business in this quadrant works. Or use a franchise. Why not join a proven business?

Under capitalismman exploits man. Under communismit’s just the opposite.
– John Kenneth Galbraith

Investor works on different strategy. This is where you no longer have to rely on your efforts of even the efforts of others, your money is working for you. And OMG! you are just living off the payouts. Most people cannot start in this quadrant but can make their way into it. Learning is the key. These are the investments that will allow you to retire. It can also be things like real estate, trademarks, copyrights, and royalties.

Are you in the right quadrant?

How Do People Get Rich?

 

Take my money
Take my money

This post below was originally appeared on Quora by Ali Alshamsi. Simply follow the cash flow model from the bottom to the top!.  Starting from the bottom sequence of “having a job” to “multinational business”. Maybe you’ll feel small and intimidated (me too!). However, that is not a problem, as long as you have a great mind.

A job

Single job
A job

Owning a business with one product

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Owning a business with two or more products

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Owning multiple businesses

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Investing in a business

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Investing in multiple businesses

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Investing in stocks

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Investing in FOREX, Commodities, CFDs, Futures, and Bonds

 

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[td_smart_list_end]

How do I get started?

If you born into a wealthy family, you are lucky. You can copycat your dad’s business and make it better and better. Sadly, most people are not lucky enough to be at the highest level. Up here you may feel very unlucky for not being able to boost your financial ability. How can I earn $ 10 Million dollars to build a big business? How do people get rich? To be honest the picture above makes me feel small but also teaches me about how money flows.

For example, let me tell you the secret.

Of course, there are very many ways to achieve success and increase income.  But the only way I know and need the ability to use the computer and be patient (yeah!). Lately, many young people started out with YouTube and blogs. And please do not underestimate it. Content-creator businesses like YouTube, Blogs, and so on use the multiplication principle. Everyone will probably laugh when they hear someone has a blog with $ 1 income per day. Sounds small, is not it? Allow me to help you count.

Generally, $ 1 is generated from 1000 times ad impressions, that is how many times the ad is viewed by people. This is called the impression of CPM (Cost Per Mile). Once you know what a CPM is, a new variable will be named:

Ads per page = Average number of ads per page opened.
Page per visit = How many pages are opened by blog visitors per visit.
Revenue = Ads per page x Page per visit x Impression CPM.

Blogs that have 3 ads per page, 2 pages opened per visit, and a $ 1 impression CPM mean getting $ 6 per 1000 visits. So far, $ 6 per day. Still sounds small huh? At first, it was hard to get 1000 visits per day. Do not worry. Social media has boosted the income of many people in a remarkable way. Suppose you write a very interesting post and post it on Facebook.You have 1000 active friends (who may be separated from thousands of other “friends”) who click on a link to your blog, you already have 1000 visits. Then 10 percent of 1000 friends that means 100, reshared to the page. If the average friend of a friend has 1000 active friends and who then visited your blog there are 100 people, then your blog has 100 x 100 = 10000 additional visits!

Now we have $ 66 per day in the right pocket. Now how do I fill my left pocket?
Let me use shortcut, dirty way. You can create 9 fake Facebook accounts that each have an active friend who is exclusive to each other. If each account has 1000 people viewing and 100 of them are sharing then our count will be more complicated. If the previous count is valid again then we will be difficult to fill the pants pocket with 9 x $ 66 = $ 594 per day. Don’t want to create multiple accounts? then, advertise it!

So far, that sounds impossible, right? $ 600 per day sounds impossible, but it is there and proven. With 100 visits per day, using the above count, we’ve earned $ 60, I think that’s enough even to live in some big cities around the worlds.

Blogging is hard, I know it when I write on this blog. But you know, investment is not dangerous. Financially illiterate is a catastrophe. What we call the multiplication principle here can be used in other business processes that you like, not just blogs.

 

Spongebob - See you soon!
Spongebob – See you soon!

 

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Published by

Faruq Sandi

Loves cats, computer, and linux terminal.

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