In this article I explore the most common mis-conception PT's have between being a business owner and being self-employed and explore how being a Business Owner or an investor can allow creation of more passive income. The above is largely taken from 'Cash Flow Quadrants' which was part of Robert Kiosakis famous Rich Dad Poor Dad book. 

A quick overview of the cash-flow quadrants:

E - Employee

S/E - Self Employed 

B - Business

I - Investor

Passive - without any action

Active - requiring action Many PT's consider themselves to be Business Owners (B) but Business Owners can step away from their businesses and their business will still generate money passively - without them showing up. If you're a PT then what happens to your income if you dont show up for work? The answer for most PTs here - it stops. So most PTs are not business owners, they are Self-Employed. Self Employed (S/E) is usually much better than being Employed (E) because of the relative freedom to choose hours of work, who to work with and the tax deductability of certain expenses however, it does not give freedom to STOP working and as soon as work stops so does the money flowing in!  Many PTs want to start growing their wealth and are making lots of sales, have good client retention and are charging higher and higher prices each year. This is great effort and comes with alot of hard work but it is limited in that if work stops, money stops. So the best way to start growing wealth in a way that allows more freedom is to either start investing some funds, which requires savings, or start a business that provides passive income or both. Given the time-constraints most PTs have and their high income a good way to start can be to focus on the investment first or entirely.  A common way that PTs try to grow their wealth is by having more clients and charging more money per client and whilst this can produce higher revenues it doesnt neccesarily translate to a better balanced life  as it means that work takes up more and more of thier time. Higher revenues dont always translate to more saved money either as another common trap for PT's is to spend more porportionately to the increase in earning more.  Now consider a PT that reguarly invests or has a Business that provides a passive income stream. That PT is able to build passive income that gives them more FREEDOM as it doesnt require them to show up all the time to produce a part of income. So now there is a clearer distinction between what is a Business and what Self-Employed means and how focusing on passive vs active income can allow more freedom what can you do to start maximising your wealth?  In the same way that someone in the gym can accelerate their gains working with a PT, the fastest way to achieve results with your wealth is to work with a wealth coach who can assist you in planning for your life and financial goals. 

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