Cashflow Quadrant- what side are you on?

Have you read the book Rich Dad Poor Dad by Robert T. Kiyosaki and recall the section where he explains the Cashflow Quadrant.  My only regret is that I did not read that book sooner but I guess I better get over it and move now in the right direction.  This is something no one is taught in School!!

 

 

 

 

 

 

 

 

 

Starting at the E at the top left quadrants.  Some models have E shown as J for Job but in this image E stands for being an EMPLOYEE of someone else.  So ask yourself, when you want a raise, who do you ask, “someone else” is the answer.  When you want a promotion or new assignment or do not want to do something, who do you ask for permission? The answer is SOMEONE ELSE.

I see many people go from E to S (self-employed).  The problem with S is 4-5 years 80% self-employed fail but if you survive 5 years you will make more money than having stayed in the E quadrant.

The goal is to get out of S and into the B quadrants since B stands for Business Owner – where you have others working for  you.  J. Paul
Getty said it best,  “I’d rather have 1% of the effort of 100 men than 100% of my own effort”.   He also goes on to say ” The #1 guideline to success is you must be in business for yourself. When you work for someone else, you sell your time at wholesale to your employer, who then re-sells it at retail to the customer”.  The B quadrant frees you to become more focused on working “on the business” rather than just the technician “in the business” as Michael Gerber describes in his book, E-Myth Revisted.

I the investment quadrant, the next transition is to move your focus to I so that your money is working harder than you especially when you are resting, enjoying your life,  or simply sleeping.  Not to say that you move everything to I but keeping the balance in B (Business Owner) and strong I (Investments) creates options and flexibility.  So which side would you rather be, left or right side of the quadrant?  RIGHT side of the Quadrant where you are creating a fortune for this generation and future generations.

Is this easy and possible for a E to get to I?  Not easy but very possible through focused goals.   My goal is that more of my clients see how to get from E to S to B and then I faster so that they can truly enjoy their dreams. 

This has been my simple view of the quadrant and I truly would love to meet Robert Kiyosaki one day and thank him for simplifying this view further.  Would love to hear from you — how is it working for you.

When I started this post, I noted that I wish I had read this book sooner and are wondering why?  I invested in a “home based and self-employed” option because it appeared to be less expensive.  Yes, I love what I do, but to get to the B quadrant for me, I need more people working for me.  Had I considered this prior to my purchase, I would have selected a different  model that was not dependent on me but having a team and staff that we could train.  My path to get to the right side of the quadrant is longer but possible which is why I like to educate my clients on the potential.  Do not look at entry cost, look at your end game and then determine how to fund the option which will help you get to the end game faster.  Or as in my own example, understand and be aware of what I need to do differently to move to the Right Side!

p.s. my gift is any grammar errors or typos.. please excuse them since it is Friday night and I really wanted to get this typed while my sister was on the phone and we were planning to go out for ice cream.  I’ll proof over the weekend. Thanks for your patience.

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Posted in Education, franchise, Inspiration
One comment on “Cashflow Quadrant- what side are you on?
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