Where Do You Belong?
“If you believe that success tomorrow depends on what you do today, you will treat today differently.” Is what you are doing today going to get you the financial goal you want tomorrow? If not, there is a need to take a critical look at a new direction, a better way to achieve your future financial goals. Show me a farmer, who refuses to make use of modern farm implements, I will show you a poor farmer who probably will work hard all his entire life. Progressive people look for better ways or means to achieve their ends, stagnant people stick to their old ways and ideas.
E B E – employees, S – self-employed/small business owners
S I B – business owners, I – investors
The diagram above is called the cashflow quadrant. It describes the different people in the business world. Anyone who cares about securing his financial future needs to understand each quadrant. They are also different vehicles that can be use to get to one’s financial goals.
Employees
• To be a better employee, go to school and get a good grade. In fact, the school system programs us to be employees.
• Linear income – A linear income is an income that varies directly with effort. If your effort stops, your income stops. Income that depends on your single effort does not create wealth. It only makes you a living.
• No quality time for family and for personal and spiritual development. The time spent at work and on traffic does not leave time for other important things of life.
• Job is not willable. Why spend all your active years on something you cannot will to your children? Start minding your own business; you don’t have to quit your job immediately.
• Job security is now a thing of the past. Technological advancement, mergers and acquisition, monetization, reconstruction, etc often claim jobs.
• Income from employment has no tax advantage.
Self-employed/small business owners
• They believe if you must do it right, you must do it yourself.
• They are usually the smartest in the business. The business survival depends on their physical presence and effort.
• Their major challenge is lack of capital.
• Competition also contributes negatively to their survival.
• Very few small businesses survive their first five years.
Both ‘E’ and ‘S’ quadrants are poor plan for financial success. They have little or no leverage. Leverage is the ability to do more with less. Using the concept of leverage, you can earn more and work less.
Fear and financial ignorance make millions of people remain in the ‘E’ and ‘S’ quadrants.
Business owners
• They work hard to build systems or networks. They have people work in their systems or networks. They have leverage on the time and effort of the people working in the systems or networks. It is the collective efforts that create wealth.
• Residual income – A residual income is an income that keeps recurring long after the effort that generates it has stopped. It is income while you sleep, travel, eat, play, etc.
• They have tax advantage.
• They are the major player in the ‘I’ quadrant.
• Time freedom and financial freedom.
• The Government want to be their partner as they help create jobs.
Some Qualities of the Business Owners
• They don’t worry too much about what might never happen.
• They possess the ability to have delay gratification.
• They believe failure is an integral part of success.
• They possess people skills.
• They take calculated risk.
• They do their due diligence.
Investors
• They have money work for them. They leverage on paper assets (e.g. stocks, bonds, mutual funds) and real estate.
• They possess all the qualities of the business owners.
• Just like the business owners, they have unlimited income potential.
“The richest people in the world look for and build networks; everyone else looks for work.” Robert Kiyosaki
Good news
Everyone can now build and own network without all the headaches of building and owning a corporation. Everyone can now gain the education necessary to move to the ‘B’ quadrant for free or at a very low cost. The information age has made it easy for ordinary people of the world who are open, to get rich faster. You may want to attend our free international business seminar in our area office close to you. Send a text message with your name and location to 08038362450. You can also send an email with your name and location to theperfectbusinessconcept@gmail.com.