Does it take money to make money?

To answer the question above, we need to understand the few ways to make money. Most of the time, it does not take money to make money. The 4 ways of making money mentioned by Robert Kiyosaki are the followings:-

1. Being an employee: no money is required to make money. Employees trade their time for money. As long as you have time, you can earn money. There is hardly any volatility on the income as the salary is fixed when the employment contract is signed. However, the increment of the salary can be very slow.
2. Being a self-employed: in this category, the income earn can be higher or lower than the employee. People are choosing to be a self-employed due to the flexibility in working hours. The income they earn normally tied with how much time they spent to work and the expertise/skill of the person. This can be a part time in addition to the normal day job. This can help to increase the income easily.
3. Being a business owner: in this category, huge income can be earned. The level of income depends on how well the business solves the community’s problem. When people are struggling, with good business idea, great income can be generated. Business idea can also raise fund from the public, hence, you don’t actually need money to start any business if your business idea is good.
4. Being an investor: in this category, money is required to generate more money. An investor can grow money even better. The investors’ monies are normally channeled to the businesses on the 3^rd category above. Business owners contribute idea, investors fund the operation to get more passive income.

After understanding the above, you shall understand before you can invest, you shall have money. To get more money, you can either be an employee, be a self-employed or be a business owner. To earn more as an employee, you need to have more skill or work longer. To be a self-employed, your expertise is highly relevant to your income level. To earn more as business owner, your service/product must be able to solve a problem. The bigger problem you solve, the higher income you will get. Investors like solution to big problem and they will fund the great business ideas.

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