Page 57 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

#2: protecting your money, you will find out why the kind of income a
person works for makes a big financial difference. Earned income is the

hardest income to protect from financial predators. That is why working for
earned income is not the financially smartest thing to do.
Many self-employed people do not own a business. They own a job. If
self-employed people stop working, their income also stops or declines. By

definition a job is not an asset. Assets put money in your pocket whether
you work or not. If you would like to know more about the differences
between the E, S, B, and I quadrants, I encourage you to read my second
book in the Rich Dad series, Rich Dad’s CASHFLOW Quadrant.

Why the Rich Get Richer

Looking at the diagram below, it is easy to understand why the rich get
richer.

One of the reasons the poor and middle class struggle is that they work
for money and a steady paycheck. The problem with working for money is

you have to work harder, longer, or charge more to make more money. The
problem with physically working harder and longer is that we all have a
finite amount of time and energy.
One of the reasons why the rich get richer is that every year they work to
build or acquire more assets. Adding more assets does not require working