Being an employee or an entrepreneur isn’t so much a measure of what you do for a living as it is a statement about your mindset. There’s a huge difference not only between how they make money, but in how they think about themselves. Many self-employed entrepreneurs say that when they wake up every morning, they are unemployed. They know that unless they go out and make something happen, they won’t have any income that day.
Employees on the other hand have no such fears—provided of course that they still have a job. Running a little late? No problem, you’ll still get paid. Feeling a little under the weather? No problem, stay at home and collect a personal day. Sometimes it gets to the point where employees are more concerned about their benefits—which they begin to consider as entitlements—than about actually providing value to their employer. And this is fine, as long as the employer tolerates it. But make no mistake about it—an employee who forsakes value in favor of the entitlement mentality is ultimately at risk of losing that precious job.
So back to that statement about entrepreneurs waking up unemployed. Yes, they realize that unless they accomplish something meaningful during the upcoming day—by somehow adding value to society—they won’t have any money coming in. But they also know—and here is their motivation—that if they create massive value during the day, they will reap massive rewards. Every day that Bill Gates woke up “unemployed” while he was starting Microsoft carried him one day closer to becoming the richest man in the world. That’s how the entrepreneur’s mentality works.
If you are in any way concerned about building long term wealth, but think about your income through the lens of an employee, you have a problem. You need to recast your approach and adopt an entrepreneurial spirit. And this doesn’t mean quitting your job and starting a little craft boutique at the local flea market. That’s a hobby and maybe a small business, but it isn’t an entrepreneurial approach.
What you need to do is to find a way that you can start an enterprise which will allow you to generate a huge cash flow. Then you need to invest your profits wisely—in other words, by doing it yourself instead of relying on a purported “financial advisor.” If financial freedom and tremendous wealth are goals you’re serious about, lose the employee mindset and start thinking like an entrepreneur.
In his ground breaking book Rich Dad’s Cash Flow Quadrant, wealth creation guru Robert Kiyosaki teaches that there are four quadrants for creating cash flow—Employee, Self-Employed, Business Owner, and Investor. Long-term financial security and abundant wealth is primarily realized by business owners and investors. People who are self employed, or who are running small businesses find it much harder to build massive wealth. His principles are proven and his logic is flawless—anyone seriously interested in financial success should study his work.