Four types of ways to earn money

In some advanced countries special education courses called “financial literacy” (1) are held by the government or academic institutions that teach people the principles of financial management of personal life. 

In Iran, there is still no national curriculum for teaching “financial literacy” and students have no proper reference in this regard.
Especially students who want to invest in a particular field soon (such as information technology), may not have a clear idea of ​​the business world and financial issues.
 Concepts such as “deposit interest”, “inflation” or “retirement insurance plans” are subjects that are taught in these courses. But one of the applications of “financial literacy” is to get acquainted with the different ways of making money.
In this article you will be introduced to the classical classification of different types of monetization. This classification has been cited frequently in various articles and books (including the one presented at the end of this article).

It all starts with finding a job

For most young people, both those who enter the job market after graduation and those who postpone work until after college, work begins with finding a job.

 This is so obvious that only a few think about it. A large group of job seekers are so engrossed in the employment and employee paradigm that they have no idea. Many remain in this working world for the rest of their lives, or at least until retirement.

 Of course, being an employee has its benefits. Insurance and other statutory deductions are calculated at the end of each month and deducted from your salary and deposited into your bank account.

You don’t have to worry about how and how much this money is made. Your main concern is having enough rights and being satisfied with your employer.

Of course,

the work environment should be pleasant and appropriate. Some even advance to the top levels of a company’s management, but still get paid and have no direct responsibility for financing the company.

There is no shortage of labor and labor woes. In addition to inadequate salaries, hidden competition between employees of a company and resentments that lead to resignation or dismissal are among the many problems in the corporate world.

 Some employees think they are too smart, so they decide to pursue higher education by completing specialized or technical courses so they can increase their salaries, but remain employees, even if they are university professors.

Only a handful of employees are really smart and eventually ask themselves who these bosses are and where they came from. Can we also be an employer?

Can we be our own boss? Aren’t we happier then? Maybe all the business profits can go into our pockets …

Relatives face the great challenge of growth. If they do not grow, their incomes will drop and they will eventually go bankrupt. But if they grow, they don’t have enough power to respond to the customer, they still fail.

The “employer” world

Moving from the “employee” world to the “employer” world is a major transformation that only a few have the audacity to test. It is a risky decision to want to pay for ourselves. But the temptation to “just be my own boss” does not give up.

 “How do I register my own business?”, and  “How do I market myself and get my product or service to the public?”, “How do I set up a business?” And ” How much can I earn? These are questions that come to mind in a young employer.

But the important thing that many are not aware of is the important difference between the two types of employers.

There are some important differences between “selfishness” and “entrepreneurship” that may not be apparent at first glance, but these differences gradually become apparent.

Who are the “relatives”?

Too many new employers consciously or unconsciously turn to “self-care”. Shopkeepers, doctors, lawyers, freelance sales and marketing experts,

some technical technicians (such as electricians, welders and carpenters) and a large group of computer programmers , web designers, and professional software professionals like Photoshop are in the category.

These are the people who, through contracts or common tariffs, offer their products or services directly (without being employees of a particular company),

become their own boss, and pay their own. Sometimes it is necessary to have one or two people in charge of their daily affairs.

 Usually, a secretary or salesman or a bureaucrat or one or two of these people are involved in small business logistics, salaries, and help spin things around.

Relatives face the great challenge of growth. If they do not grow, their incomes will drop and they will eventually go bankrupt.

 But if they do not have enough power to respond to the client, they will still fail. Some relatives are following the traditional path of specialist physicians and conveying heavy growth pressure to clients. You must have had the experience of waiting for hours at a specialist doctor’s office.

 Sometimes you have to wait in the waiting list even for the day of the appointment, the weeks or the months. Traditionally, specialist physicians do not care about this expectation.

They have no solution to this problem or they do not want to think of a solution.

That made love easy at first but the problems …

Some relatives, after months or years of work, find that the benefits of this method are not much better than they expected.

 The anxiety of getting enough wages at the end of each month is in the background of their thinking and not a worry at all.

 Some business matters, such as accounting and dealing with subordinate employees and clients, have nothing to do with the art and craft that one knows for himself and is skilled at and cannot ignore.

Some self-evident problems, such as the length of a self-employed person’s work hours than an employee’s, gradually cause discontent.

and Some are tired or retreat in the face of the challenge of growth and return to a safer and less workable corner.

Only a few relatives decide to expand their business after months of facing the challenge of growth. For example, a specialist and popular physician decides to team up with a specialist but less qualified physician and respond better to many applicants.

Occasionally, several physicians form teams together and visit a clinic. Such practices are common among computer programmers.

An expert programmer will team up with a less experienced programmer to lessen the pressure. It is a great decision and a fate that only a small group of relatives have the audacity to do.

In the Middle East,

including Iran, which has less experience in team work , the challenge of growth has hampered the development of many of its own firms.

 But the first major node in the business of young companies is the internal struggles of employers who, on the one hand, cannot give up the pleasure of doing technical or artistic work,

and on the other, they cannot entrust to other experts and their peers or know how to Share the benefits of doing what is no longer their own personal endeavor with other team members.

 The partnership that was to pave the way for the challenge of growth is itself a new nightmare. The problems go far beyond organizing things like accounting and customer service.

 The challenge of growth remains unresolved, a newer challenge: the challenge of managing and leading a business.

The Entrepreneurial World

Those who enter the “entrepreneurship” paradigm have accepted that they have to hire and create jobs for them. Anxiety for your end-of-month salaries was not low, now you have to worry about your salaried employees.

At this point, there is a fundamental shift in the entrepreneur’s mindset, and he first realizes the importance of mechanizing the process of business turnover.

The second most important node in many young businesses and companies is the “cash flow” (2). Simply put, managing cash flow, that is, the art of having enough cash saved each month to tackle the problem of “timely incomes”.

For example,

you received a check for a product or service provided to a natural or legal person, but the check is still not obtainable because the customer failed to provide the necessary funds.

In such a situation, if you do not have enough cash in your account, you will not be able to pay your employees salaries in a timely manner. It is not possible for employees to pay the wages of a customer.

In this case, one of the sources of revenue has failed and you must either look for new sources of revenue or use your temporary savings.

Most businesses are always faced with the challenge of cash flow, and that challenge never ends. Many companies are bending the pressure of this challenge.

But few businesses decide to go beyond this challenge and solve the problem at a higher level. They are looking for an investor and sponsor.

The first important node in the business of young companies is the internal struggle of employers who on the one hand cannot give up the pleasure of doing technical or artistic work and on the other hand cannot entrust the trust and work of other experts and their peers.

The World of Investing

The latest episode of the Challenge of Growth reveals the importance of the entrepreneurial world of investing. Working with capitalists, investors and sponsors is a whole new challenge. This is the challenge that so-called “startups” face.

 The types of investors and the amount of investment risk and financial interaction between the entrepreneur and the investor is a complex subject not covered in this article, but it is important to know where the story of business progress ultimately comes from.

In the next issue of Network Monthly, you’ll read more about startups and investing methods.

For more information

Many books have been written about success in work and life. Many of these books follow a motivational approach.

That is, they are trying to activate your dormant motives, potentials and talents. But few books and theories have anything to do with your motivation.

 They are just trying to portray reality in the world of work and life as it is, and then convince you that some paths are better (but not easier) than others. The book Foursquare Turnover by Robert Kiosaki, a well-known real estate investor, is one of those books.

 Reading is useful for everyone and all ages and offers important tips on career choices in life. This book thoroughly introduces the reader to the advantages and disadvantages of each of the four methods of earning money,

and explains how money flows into the community economy among these four groups, and ultimately encourages the reader to choose one of two models if they are to become rich. Choose “Entrepreneurship” or “Investment”


(1) Financial Literacy

(2) Cashflow

(3) Start-up means an entrepreneur who has just started and still needs to find funding and investor.

(4) The exact name of this book is Rich Dad’s Cashflow Quadrant: The Rich Father’s Cash Quadrant: A Guide to Financial Freedom.

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