Self-employed: How to become a wealthy one?
Do you always prefer doing your work alone? Are you not satisfied with other people skills, so you want to be always in control? If your answer is yes, then you are definitely in the self-employed quadrant.
What is the Self-Employed Quadrant?
Self-Employed Quadrant is the second section of the Cashflow Quadrant. As what I have stated in my previous articles, Cashflow Quadrant shows the different kinds of people and how they earn money. I got this concept from the famous Robert Kiyosaki, whom I idolize because of his unique concept about money.
So how do you know if you belong in this section?
1. You don’t want to Rely your Job on other People
If you want to be always your own boss and prefers to do everything on your own way, then you are definitely in this quadrant. Often, when it comes to matters about money, you don’t like to be dependent in other people. The primary reason in this is that you solely believe that you know everything. This may be true because you have dedicated your life learning what you know the most. Common example of profession that exemplifies this kind of behavior are doctors, engineers and even accountants. They take additional classes and trainings to increase their knowledge which in return earn them more money.
2. Your Earning depends on your Working Time
Even though you have the biggest amount of money in terms of hourly pay, your income solely depend in your working time. Basically, if you don’t work, you will have no earning. This is where Self-employed people mistakenly identify their profession as a business. Let me give you an example.
Let us say you have a small clinic in your neighborhood. You think that it is a business because you own it, right? So, you work in the clinic 6 times a week, almost 8 hours a day. Sometimes you also do overtime. In that situation, it is clear that you don’t have a real business. Real business is something that even though you are not present in there, it is still generating income for you.
3. You have Insufficient Funds
Another major factor that determines if you are in this quadrant is the amount of tax deducted to you. People in the self-employed quadrant often think that they should study more, go to school and attend training so that they can get higher credentials. With this credential they can request for higher pay in their chosen profession. But little they know that the higher your rank is, the higher the tax they get in you. This means that the bigger your income, the bigger the tax deducted to your paycheck. This scenario is somehow depressing because even though you work very hard, you will not completely get what you deserve.
How to be a Successful Self-Employed?
Now that you already know that you are in the Self-Employed Quadrant. Your next question is how to be a successful one? The answer is in this diagram.
Shift from the Self-Employed to Business Quadrant!
People in Self employed quadrant usually has a hard time shifting to business quadrant. It is because their mindset is completely different with those in the B quadrant. As what I have said earlier, people in S quadrant is not into working with other people. In other words, they hate working with others. It is because they feel that, them alone can do everything that they need to finish.
This is where they completely differ with those in the B quadrant. People under this quadrant works well with others. They know the potential of their co workers so they manage to put them in a team for the greater benefit of the business they have.
Although the behavior of people under S can be changed, they will really find a very hard time changing their way of thinking.
So how do you shift from S to B Quadrant?
The answer is simple, follow the SRI Method.
S – Save
When you first receive your paycheck, instantly get 10-15 percent of it and deposit it directly in the bank. You need to save so that you will have a funds to use for investment. Although this can be a hard task, make it as a habit. Because in the future this will be a good practice.
R – Research
You should also do your research. It is the most important thing to do because you really need to know what you are getting in. When you get home after your work, spend some time researching on real business that you want to venture in. It may be real estate, stocks or even online marketing.
It doesn’t matter what business you build, but you should always put into your mind that this should be something that you really want and you are willing to give your effort and time.
I – Invest
After researching, you can now invest the money that you have saved. Remember, be cautious in investing and always diversify. But this doesn’t end in here. You should go again in the first step which is to save, and do it as a cycle. Never stop learning! Learning is the most crucial factor that determines if you can have success on your chosen business.
You should also have lots of patience. Your success won’t happen just in one night. So take one step at a time and enjoy the ride.
Let me end this with one question.
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