Monday, June 28, 2010

Basic financial abilities and career quadrants

There are four important financial abilities which we need to learn before mastering the ability of controling finance:


  1. Accounting : to learn some basic mathematical skills concerning accounting
  2. Investing: to get the experiences of investing in appropriate items 
  3. Markets: to know the flow of markets 
  4. Laws: to avoid any damages from ignorance of regulations in your own country

According to Robert Kiyosaki, the categories of career can be divided into four quadrants:

E     |    B                   E: Employee            B: Business owner
-----|------      ==>     
S     |     I                   S: Self-employed     I : Investor

The left quadrants are quite different from the right due to the way you get your salary. You have to get the only money while working personally if you are in the left quadrants; however, if you are in the opposite side of quadrants, that means your money can grow by its own certain operation.  

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