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Employment and Cash Flow Quadrant: How to get passive income? [Part 2.]

Cash Flow QuadrantThe article discusses the employment – one of four categories of the Cash Flow Quadrant, to which belongs most of the working population, plus summaries of the advantages and disadvantages of this category.

Why do most people going to work?

The traditional system of school education has been systematically preparing us for it. We have been told to found so-called “Good and secure job” and so most people will automatically follow this advice without much thinking…

There is a 95% chance that 95% of what you can and you know you’ve learned from someone who belongs to a 95% income group…

Most of the people with whom we come into contact during adolescence, they are employees – whether they are teachers, educators, parents and family members – all of these people are unlikely to teach us much of anything about how to run business or invest, or how to create passive income or assets.

If we don´t know anyone who runs business or invest, we choose the path based on well-known example – find a job and work for someone else whole life…

And even when it is govern with a number of restrictions, it is “safe” because “everybody does it”. It is thus a “normal” although 150 years ago was normal something completely different:

  • Most people had their own business or
  • farm and it was handed down from father to son.

Despite the fact that today is less and less opportunity to find a truly “good and secure job”, which would also allow a person to live according to his / her own ideas, rules and wishes and was sufficiently flexible with unlimited income potential at the same time…

Would You rather watched a video instead of reading? Here it is…


Income of people who are employed, is earned purely on the basis of their active efforts:

A typical day for these people is following: They get up and go to their employment and for 8 hours (or more) out of their families to work on a dreams of somebody else. Often with no possibility to earn income what they truly deserves, or one that secures them for retirement, provides a better lifestyle or ensures that they can travel despite the fact, that they often perform in activities quite well…

  • If people in employment alone do not work, they do not earn money.
  • If they do not come to work, they do not get paid.

Most people in employment don´t have in place any functional system for them that would serve them without their simultaneous active contribution of work. In fact, they are the system themselves – they work for someone else (the company owner / government).

It’s a real example of Sisyphus work – I come, I suppress one “ball” up the hill and the next day I have to come back because my ball roll down the hill again. And the next day continue again and next day again. Employees start every day from scratch.

Cash Flow Quadrant - employment


In fact Employees at work don’t create anything for themselves.

Employees themselves don´t own the place, where they work.

Therefore they can not, unlike entrepreneurs, start where they left off yesterday and build on their previous effort and increase their monthly income.

Employees often doing a very good job and doing it 5 days a week, 11 months a year, 40 to 45 years of their life to be around 65 years old, and found that regardless their lifetime earnings, they just fall on retirement income about £700 per month (or less)…

Because they simply not created any passive income.

Employment is such a little bit of modern slavery…

Yes, it’s a strong statement, but for people who have employment as only one source of income is like modern slavery – their “boss” indirectly decide…

  • where they will live,
  • how they dress,
  • to what restaurants they go to eat,
  • how many children they will have,
  • what kind of car they would drive,
  • where they would go on vacation,
  • to which school their children will attend,
  • and so on…

And the sad fact is that when they retire, they will no better off.

Is employment the safest way to go through the life?

Many people are in this category, because they are convinced that this is the safest way to go through the life.

However, they are always surprised by what is happening when the company where they work, does not thrive well, and their warm & safe place is suddenly not so warm & safe now. And they can feel frightened that they will be fired soon.

Yes, of course, work has certain advantages but also many disadvantages…

Benefits of Employment:

  • Relatively stable and predictable income, which with a bit of discipline can be used to start your business or investment.
  • You do not need to worry about your tax return (= which can also be a disadvantage)…
  • Employees rely on the fact that they have a certain number days of vacation.
  • They have some employees benefits – a car for private purposes, phone, laptop, education, housing allowance, allowance for meals, refreshments workplace free, week or two of vacation, flexible hours, sometimes 13-th salary.

Disadvantages of Employment:

  • They are going to and from work as everybody else – so in the morning and afternoon people participate in regular busy traffic.
  • Their income is generated solely on the basis of their active efforts – no passive income, no financial freedom.
  • For Employees does not work any functional system that would earn money for them without their simultaneous active contribution.
  • Government will take a tax without asking them how much it would it be – they don´t have any mechanism to change it and then they are again taxed when they are shopping…
  • They can not use too many tax savings and they are those one who pay the most in taxes.
  • Inappropriate working group or environment – politics and gossip in the workplace
  • They do not have full control over their lives – someone else determines the conditions and rules …


[I spoke with one lawyer who works for a multinational company and one rule applies here, which is unwritten custom in order to not have problems in this employment: “Everybody has to be in work earlier than the boss and leave home after him…!”

Too bad ‘the boss’ does not have a family and so he shows up before nine in the morning and leave around eight in the evening four days a week, 48 weeks a year and the lawyer has a young family and he almost doesn´t see his newborn son…]


  • Employees do not have the freedom to plan their time – they can not take a holiday whenever they like – their holidays are subject of the decision of another person or a company-wide holiday…
  • The biggest jump in their earnings they experience when they got from the school to their first job – then most of the employees can expect only a slight increase in wage from 1-10% per year – when they have a luck.
  • They must constantly look at what their boss think or the organization for what they work.
  • They often live a life full of constraints and often fear and frustration.

If you are in this very category of the Cash Flow Quadrant, then your safety is and always will be limited.

I do not wish you that and I would be glad if your job would provide you everything you want from life till the rest of your life. My experience however teaches me that those who consider their employment as warm and safe today, will think differently over the next 3, 5 or ten years.

Employment – What could be the solution?

If you are in only this category of the Cash Flow Quadrant – you have a job and want to change it, because you want to have more passive income, you want to have more freedom and peace in your life, then you need to start thinking about how you could generate additional revenue.

And now I do not mean that you should find another job where you would need to put another X hours a day for you to able earn a few hundred pounds on the top of what you have now.

You need to think in a way of how to increase your income and how you can “scale” without depending on your own personal time. Ie. you need to find a way for you to do business or invest.

Do not wait in your job with folded hands and do not wait for the time when you would really need some solution to solve your finance really bad…

“Dig the well until you are not thirsty…”

Move your earnings to others categories of the Cash Flow Quadrant.

And you do not necessarily need to leave your job – start a business or investing part time.

Start part-time to create something of yours, start step by step to create a system that over 2 or 3 years will be the base for your liberation from your daily job.

If you do not want to bother yourself with it alone and you prefer to get a proven system that I have already in place or you do not have sufficient resources to be able to invest, then click here.

Following articles…

If you are interested in topic of Cash Flow Quadrant more, then read following chapters to deeply analyze its various categories:

Finally, on the topic of employment and Cash Flow Quadrant …

  • If you are young and just after the school and you are starting your working live, I do not think it’s wrong decision to go find employment and learn the basics of discipline and accountability that are required, and also make your first money.
  • However, if you already have your emplyoment a long time, I think it is necessary to retain your employment for now in order to have money to start your business on a part time or for your first investment.

In both cases, however, look for ways how you can start creating passive income and how you can move from the left side of the Cash Flow Quadrant to the right side in a near future, earn more money than now and eventually achieve financial and time freedom and have more peace in your live.


If I can assist you in this area, please contact me.

I wish you a great day and look forward to our personal meeting.



PS: Do you want to move to the right side of the Cash Flow Quadrant sooner than others?

I discovered a way a person can get it´s passive income “to live a life without borders” by building a business from home, and I have a system that anybody who has a dream and wants to fulfill it can manage. This does not require selling and the best part is that it does not take much time either – maybe 30 to 60 minutes of concentrated effort / day.

Do you want to know more about it? Contact me…


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Robert is an entrepreneur, a writer, a coach and visionary mentor who´s life mission is to help people achieve business, financial and life goals through coaching, mentoring and network marketing. Robert has written several ebooks - the very last one is: Magic words of the Masters of life... (avalaible in czech language only). Do you want to know more? Click here...