Why it's important to earn?

Q1. Do you think that for us earning money should be a life Goal?

A1. Yes, earning money should be a life goal as one should be financially independent. Often there is a debate that money is not everything in life but someone has rightly pointed out that one should say that after having sufficient money.

Though happiness should also be a major goal in life and should be a priority but to meet the basic needs of food, shelter, clothing, and now the internet, it’s imperative to have sufficient money.

As a student, we are often not taught about the concept of money in schools and colleges nor we are paying much attention to it at home or social circles. If we do not understand the value of money at a tender age we find it difficult to manage it when we start earning.

The concept of money is very well explained in the book “Rich Dad, Poor Dad” by Robert Kiyosaki. The key message of the book is: “Take responsibility for your finances or get used to taking orders for the rest of your life. You’re are either a master of money or a slave of it. Your choice.”

2. What are the various channels of earning money?

A2. The different channels of earning money are paid internship, freelancing opportunities, entrepreneurship, and part-time job employment. According to Robert Kiyosaki, we can classify into 4 distinct modes of cash flows in 4 quadrants B, S, E, and I which are Business owner, self-employed or small business owner, Employee, and Investor. Each quadrant represents the different methods by which income is generated. For example, an employee earns money by holding a job and working for some else or a company. The self -employed are people who earn money working for themselves, either as solo operators or through their own small business. A business owner owns a large business (typically defined as 500 employees or more) that generates money. Investors earn money from their various investments- in other words, money generating more money.

80% of people fall in the category of E and S. Employee values security and self-employed person value Independence. On the other hand, a business owner builds wealth and investor believes in financial freedom.

3. Which personality traits impact earning?

A3. The personality traits which impact earning are:

Growth mindset, empathy, creativity, predominately for Self-employed

Conflict management, Trust building, Negotiation predominately for Employee

Communication, Influencing & Decision making predominately for Investor

Purpose, Passion, Perseverance predominately for Business owner

This is an excerpt from the discussion organisaed by MentorKart on the topic "How to earn while a student" on 10th October 2020.