Cash Flow Quadrant

There are 4 ways to make money:

I. THE RAT RACE
1) Get a job and work
2) Self-employed (you own your job)

II. THE FAST TRACK
3) Business Ownership (your business has employees)
4) Investors (not day-traders but folks who put their together their own investments.

This actually is not a bad way to look at things.

When you own a business, you have people doing the work and you make money off of them. Like Network Marketing structures, business owners sit on top of something like a pyramid scheme. The employee takes only a part of the value he adds to the business; the owner takes the rest.

Investors have to know what they're doing. That's why they have to have owned companies themselves. That's how they can really evaluate the good ones from the bad ones.