Is Self-Employment a Great Cashflow Option?
Robert Kiyosaki, author of Cashflow Quadrants, discusses what he calls the S quadrant. The S stands for self-employed, which describes one way that people can enable cash to flow into their lives. Many people around the world are the primarily workers or professionals in their ‘businesses.’ Let’s discuss self-employment.
What Does It Mean to Be Self-Employed?
Being self employed is typically thought of as working in your own business, as opposed to working for someone else’s business. However, you can start working for yourself today, even if you are working in someone else’s business. It all a matter of perspective.
You are an employee when you are working for someone else, but you don’t have to think of yourself in that way. Think of yourself as self employed. Even if you’re flipping burgers, you’re in the business of selling your labor, right? And business people think differently than employees.
The word “employee” often carries connotations of slavery, as in the expression “wage slave.” It is associated with a loss of control, a sense that the “boss” is the one calling the shots. What an awful thought! There is a better way.
Be In Business Starting Today
My employers have never been more than customers to me. If I didn’t like the terms or price, I negotiate or go elsewhere. There are opportunities everywhere, after all. This attitude has meant I’ve never felt trapped in a job I didn’t like. I look at jobs as business opportunities, and choose the best one at any given time. If my own business is a better one, as it is now, then I do that.
There is nothing sadder than bitter workers who feel cheated and dependent on an employer. I have had terrible employers, but they never made me bitter. In any business you sometimes work for customers you don’t like, if the pay is worth it.
Many years ago I worked at a casino. As a reservation casino they could get away with not paying minimum wage. With the tips, we made good money, in fact more than any of the five other casinos in the state. Most of the workers were bitter, though, because the employer wasn’t doing what they were “supposed to do.”
They had their employee mentality, and so felt cheated. As a businessman, I could look at it objectively and see they were paying more than other potential buyers of my labor. They certainly were a “problem customer” in many respects, but I chose to do business with them, so I couldn’t feel bitter about it.
How To Be Self Employed
It helps to have money in the bank. “Wage slavery” is only true to the extent that you’ve put yourself into that position. It takes only a few weeks to find another customer for your labor. Anytime you feel you can’t quit your job tomorrow, you’re probably not arranging your financial affairs properly. Any smart businessman plans for ups and downs.
Here is what you need to do to support your new perspective: put a little money aside, keep out of bad debt (only debt that produces income or profits is good debt) and keep your fixed expenditures low. Take responsibility today for your choices. You are in business, selling labor, skills and knowledge.
You are opening your mind to the possibilities of better jobs and business activities. These are nice advantages, but not the best reason to adopt this attitude. You see, even if you stay at your job for thirty years, you will feel free, and not dependent. This is YOUR business decision, and the freedom that comes with this acceptance of responsibility is the best reason to take this perspective. Starting today, you are self employed, if you want to be.
Being self-employed may appear much better than being employed by another organization. However, consider also that when becoming self-employed, you are owning a job. If you go on vacation, your business goes on vacation. If you become sick, your business may become sick because you or the primary professional is normally the only one working to bring in the company’s income. As a self-employed professional, you also pay a huge chunk in taxes. These are just a few of the challenges of being self-employed.
FYI: We will highlight a little about taxes soon. Note: I am not a financial advisor nor tax professional. It is always best to speak with an accountant about taxes.
Let’s chat more about the cashflow within the other two quadrants soon. Chow for now!
Psss….If you are ready to jump into the B quadrant because you may know about it already, want to lower your taxes (obtaining some tax breaks) and want to control your cashflow, CLICK HERE to learn what my husband and I have been doing for a little over two years.