Creating a Passive Income System

I’ve been reading the second book in the Rich Dad, Poor Dad catalog - It is titled “The Cashflow Quadrant” - and it discusses the different types of workers:

E: Employee
S: Self-Employed
B: Business Owner
I: Investor

Basically, I’ve come to realize that while I work for myself, make my own hours, find my own clients, and I don’t have a boss… I fall under the “Self-Employed” category, which is essentially a glorified Employee. I have nothing that is an actual “Business” which I could sell, or which makes me money without me working for it. I still have to work for every hour that I get paid.

This was a little kick in the pants. I’ve got several websites that might someday function as a Business System for me, but I thought the quicker solution might be to finally go ahead an hire some help. I put up a post on Craigslist, weeded out the weirdos, and met with two fresh-faced college kids. Each one has 10-15 hours a week to give to my projects.

I’ve got a few new things coming down the pipeline, and we’ll be starting work on the first project Monday. This client wasn’t able to afford my normal hourly rate, so it was the perfect opportunity for me to pass along some work to my ‘employees’. I will pay them an hourly rate, and keep the difference.

I realize that this is far from operating as a real Business System, but it is a first step.