I was introduced to Robert Kiyosaki* some years ago, not personally but to his many books and audio’s.
His books, Rich Dad Poor Dad, and Rich Dad’s CASHFLOW Quadrant had a huge impact on me, especially when I understood the Cashflow Quadrant and the stark fact that at least 80% of people live on the left quadrant!
I will attempt to explain.
Employee Quadrant
In the Employee Quadrant – is where most people are. They are employed and effectively trading their time for money. In other words they are paid what the job is worth, not what they are worth. If they don’t go to work they don’t get paid.
Self-Employed Quadrant
In Self Employed Quadrant many are driven by the urge for more freedom and therefore either start out here or migrate to this quadrant where they want to work for themselves. Although they may have more freedom there is still the issue that if they don’t work they don’t earn money. Thus still a case of trading time for money. In many instances people effectively end up buying another job with long hours and comparatively lower hourly rates.
Now it was the right hand side of the quadrant which got my attention!
In the Business Owner quadrant people have a system and typically have people working for them. It is no longer an individual’s hours that bring an income, but the system they have set up. A true business system allows people to develop an income without being present. Those who work in this quadrant make themselves recession-proof, because they control the source of their own income.
Investors just like business owners do not get paid by the hour, but have money working for them. This can be investments in assets such as property, stock and shares and businesses etc. Essentially they make their money work for them!
So How Did This Affect Me?
Having reached a point in my life where I realised that more and more people are being affected by economic crisis’s and were helpless as to what they could do to secure their financial future.
It became clear to me that diversification has many clear advantages, including low start up costs, no capital required, ability to control your time, business development and support system and unlimited passive/residual income potential, hence why I made the decision to do what I am currently doing.
In summary there are 2 types of people, the ones that sit back and worry about how they will survive in the economic climate and those that look at what ways they can create more value to others through offering them an alternative solution in addition to what they are currently doing.
Which type are you?
If you haven’t given this a thought before now I would encourage you to take control of your financial future and look at diversifying your income now!
Equally if you would like to investigate the dynamics of Independent Business Ownership within this growth market, I’d be delighted to speak to you. It may just be the call that allows you to take control of your time and future financial security.
* Robert Kiyosaki is an American businessman, entrepreneur, investor and motivational speaker and is the founder of the Rich Dad Company, a private education company that provides personal financial and business education to people through books, seminars and educational products all over the world.
