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

CNN Interview on Joblessness


If you have been unemployed for any period of time and wondering what are the options listen to this short video.

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Quotes To Live By

This page is my collection of quotes that have inspired me over time. My intent is that it will be a collection from various successful and wise individuals.

Feel free to add something from your own collection to share with the group.

When you have either friends or loved ones trashing your confidence, you may want to read Teddy Roosevelt speech titled today, Man in the Arena, (only a portion is shown here but you can google to search for the entire speech:

“…It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold and timid souls who know neither victory nor defeat.”

The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. – Henry Ford
If you plan on being anything less than you are capable of being, you will probably be unhappy all the days of your life.Abraham Maslow

I don’t know the key to success, but the key to failure is trying to please everybody.Bill Cosby

Willpower is the key to success. Successful people strive no matter what they feel by applying their will to overcome apathy, doubt or fear.Dan Millman

Opportunity is missed by most people because it is dressed in overalls and looks like work.Thomas Edison

Beloved, I desire above all things that you may prosper and be in health, as your soul prospers.” 3 John 2

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us… And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.”  – Marianne Williamson

“Blessed are those who can give without remembering and take without forgetting.”

“Aim for service and success will follow.” ~ Albert Schweitzer

“There are two ways of spreading light: to be the candle or the mirror that reflects it.”

~ Edith Wharton

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3 F Words

Question, why do some people succeed and some do not in transitioning to being their own boss? A speaker who has been coaching individuals for over 7 years shared today at a meeting that people will succumb to one of the 3 F words and to what other people think they should do. The 3 F words that typically take someone off track to start their journey towards their dreams for business ownership and control of their lives are:

1. F – FEAR
2. F – Franchising
3. F – Financing

1. Fear – could be fear of failure, fear of appearing as a failure, fear of peer pressure to conform or fear of _________________. My suggestion is to write your personal fear or describe “what is holding you back from moving forward” Describe this feeling, this sense, this something that may be sitting in your gut or heart depending on where things sit on your when you cannot make up your mind. By describing, you can then look at it and then ask “on a scale of 1-10, how real is it?”

2. F – Franchising – If you follow our system of validating and researching franchises, ask the right questions which we can help you with, this F word should be put to rest. At the end of our validation process, you will know if the Franchise you are considering is right for you. As yourself:

A. Will owning this _____ business/franchise help me reach my goals?
B. Can I see myself growing to do what it takes to be successful?
C. Are there a number of successful owners currently operating and happy?

I can probably spend more on this F word, but we have some great tools and resources to overcome this F word. The spouse, partner or significant other may need help with this F word since they may not have the details and my suggestion is get them to the meetings with the representatives and franchisees you are interviewing. Get them involved, have them part of the process of validation and research.

3. F – Financing – show me the money. If the desire is strong, the credit rating is good, we can help you find resources to get beyond this. Never let money get in the way. If money is truly the gate keeper, we can identify a stepping stone strategy – plan b that gets you moving in the right direction but your ultimate dream may have to wait a bit longer.

Getting to your dreams is not an instant or drive through process — it is a journey and sometimes you need a guide to show you how you get there. That is what we do — we coach, guide and support you.

Lastly, in the beginning I said, that people will succumb to other peoples opinions. Let me share a quote from Jim Rohn, “let the views of others educate and inform you but let your decisions be a product of your own conclusions”.

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Please, Sir, May I Have Some More?

Please, Sir, May I Have Some More?.

I found this blog post interesting and inspirational especially when I think of the many times in my life and career feeling vulnerable.  Being afraid of not having enough skills, enough money, enough friends, enough time — are things I can relate but also hear it in my clients – yours could be different.   The author suggests we reject this orphan spirit feeling and feel empowered that we are never truly alone.

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Learning from the young and restless (not the soap opera)

I’m in between making calls — we all have to do that to generate leads right?  How many of us really like it at 5 p.m.  so instead of calling I started reading my various email subscriptions and was totally blown away with the articles of these youngsters – 12-17-18-21 year old creating companies, products and services and I was extremely motivated to keep reading.  Business Insider

Working with many client who are typically over 45 who say they want to create financial growth and want control of their lives but stop short of making changes in their lives had me thinking about why they stop and these young entrepreneurs do not.  It makes me think of the times I went with someone new skiing for the first time — ok it is summer and probably 100 degrees outside my door but I had to think cool thoughts so skiing comes to mind.  Remember going skiing for the first time – FEAR of breaking bones, FEAR of losing control and FEAR of being embarrassed as your headed down the slope.  Thinking about my clients fear as well as my own fear of leaving my salary job with a great company to start this business with my sister keeps me humble. Reading about these youngsters gets me motivated to tell myself  what Jim Rohn wrote,self-preservation has a tendency to lead to poverty”.

The article on these youth should be read by everyone –it appears they have had the fear factor as well as failure of many attempts but they did it — they kept their focus on their strong desire to win and make something happen — kudos to all of them.  They list the 6 traits to make an audacious amount of money:

1. Support – don’t go it alone

2. Hard work – nobody said it was easy

3. Passion – love it or leave it

4. Perseverance – how to take a punch and get back up

5. Naivety – because you just don’t know any better

6. Humility – No, you don’t know everything  — read the specific stories here get inspired and get acting as if you cannot fail!

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Becoming a New Billionaire Bob Parsons’ 16 Rules for Success

I was recently looking for tips on success and was surprised to find a great list from Bob Parsons who will be a billionaire once he sells GoDaddy.   Bob Parsons sold his first company to Intuit for $64M and is about to sell Go Daddy web hosting company making him a billionaire — his simple rules for success may be worth reading and/or downloading.

I personally can relate to several and as he says he learned the hard way — haven’t we all?  His rule #3, about quitting something which could be the project, team, company — you name it — success was just around the corner or as Earl Nightingale also said we are “3 feet from gold”.  What is your favorite rule from Bob’s 16 rules?

#3.  When you’re ready to quit, you’re closer than you think.
There’s an old Chinese saying that I just love, and I believe it is so true.  It goes like this: “The temptation to quit will be greatest just before you are about to succeed.”
Share your favorite or which one you think can make the biggest difference in your life if you adopted it starting today!
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