how money works


Most of the people in this world are working for money. Because they only knew one way to earn, i.e. work in a company and get paid. But we do not know, working on paycheck-to-paycheck life will not make us rich. Sometimes you may think about what I want to convey in my articles. Even you may seem I am not talking with you in line with your thoughts. This happens because our school & college education never taught us how money works for us. They only teach us to work for money and earn a paycheck.

Gary Vaynerchuk (Belarusian – American Entrepreneur) once said, “I didn’t fail school, the school failed me. Schools fail entrepreneurs every day because it is not built for entrepreneurs its built for workers”.

And in my opinion, he said perfect because in schools or colleges we generally talk about good grades and get placed in some good companies. But we do not know those good companies will give you good salaries and you get trapped in the rat race.

But if we have financial intelligence, high chances to become an entrepreneur and reach financial freedom.

Our motto in our life should be to make money work for us instead we work for money. Till the time we do not know how money works we cannot ask for money to work for us.

money works with financial education


Robert Kiyosaki one of my favourite author and my mentor taught us the cashflow quadrant. Here he beautifully explains how money can work for us. He categorized people in 4 broad categories. His categorization has been based on how people generate income.

Most of the people in this world including me are in the E & S category. There are only a few peoples in this world to shift from E & S to B & I category. He categorizes into a two-dimensional cartesian system which in mathematics we called quadrants.


The E Stands for an employee.

In this quadrant people generally talk about security. According to Robert Kiyosaki, people say,

“I am looking for a safe, secure job with good pay and excellent benefits”.

This is generally happening in today’s world. Because we make our society to talk only about job income is the only income source.

But they forget that, income from a job is an easy way not the only way. The E quadrant peoples work for money.


The S stands for self-employed.

Self-employed are those peoples who want to work his own. He keeps himself busy in his work. Self-employed peoples are specialists.

Doctors, Lawyers, and Dentists are the perfect example of a specialist.

Income in the S quadrant is better than the E quadrant. The income is in control of self-employed peoples.

But the income in E Quadrant is in control of your working organization or employer or your boss.

The similarity in E & S is that you must work hard and give extra time to generate income.

The S Quadrant peoples also work for money.


The B stands for business owners.

In S quadrant, peoples do not delegate their work. But in B quadrant business owners love to delegate his work to E & S peoples. According to Kiyosaki, business owners think,

“why to do it yourself when you can hire someone to do it for you and they can do it better?”

According to their business size, they hire peoples who do their work. The business owners’ main work is to have a network with clients only. The efforts required to generate income is no or less than B & S quadrant peoples.

In B Quadrant, peoples have more time to do some other necessary works. In B quadrant people’s money works for them.


I stand for an Investor.

The people in this quadrant could be any, even from other quadrant peoples from E, S, or B quadrants.

In the I quadrant, peoples do not have to work all day as in E & S quadrant.

Investors invest money in other people’s business and generate income. The E & S quadrant people generally feel more secure when they entered the I quadrant.

In the I quadrant money works for you.

Let us understand the below infographic carefully.

how money works infographic

Some peoples from E & S quadrant try to change their quadrant and try to enter B & I quadrant. But few of them make it. This is because of their mindset.

In different quadrants, peoples have a different mindset. If somebody wants to enter another quadrant, they must change their mindset to enter it.

If E & S want to become B & I, they must change their mindset and thinks like a businessman and investor. Just to keep in mind that it is very difficult to change your basic mindset. It requires a lot of determination and discipline. That is why only a few peoples have changed their fortune.


It is not much important how much money you have. What important is how much you keep and how long that money works for you. Lots of peoples in my network are earning more than me but some of them are growing on debt plans. All their money is going into expenses. They are working for money.

Kiyosaki believes that people should learn as much as possible about finances. He also believes that real financial education occurs outside the classroom.


15 thoughts on “HOW MONEY WORKS? (PART-1)”

    1. Trying to be B or I is always better rather spend the whole life in E or S wherein the end you are at the same place.

  1. Manpreet kaur

    we must struggle to setup a business rather to struggle in finding a job…
    very good article

    1. Very well said.. we must start to struggle to build our business rather than to find a job.
      But this depends upon circumstances but must start with.


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