Think Like The Rich: Where Are You?

•  “One of the reasons the rich get richer is that they make money as investors, not as workers. The rich are on the right side of the CASHFLOW Quadrant.” 

•  CASHFLOW Quadrant

• Employee: earn income by working for other people.
• Self-employed worker: people earn income by working for themselves—they own their jobs
• Business owner: earn income from the businesses they own
• Investor: earn income from their investments—from money generating more money

• Changing quadrants means transforming who you are, how you think, and how you look at the world.

• While E types often respond to the fear of not having money by seeking security, Ss respond by taking the proverbial bull by the horns, working ever harder to rack up hours and hourly wages.

• “For the E type, a benefit is a security blanket.”

• “S types respond to the fear of not having money by working harder. Eventually they may burn out trying to do everything themselves.”

• For people in the S quadrant, independence, the freedom to do things their way, and the desire to be respected are much more important than money.

• Being a successful B requires technical business skills, know more than just how to build superior products or services, know how to build the solid network of business systems without which their offering won’t sell and skilled in the art of leadership.

• B’s motto is O-P-M (other people’s money) and O-P-T (other people’s time).

• “Many people have great ideas but very few have fortunes. To be a successful B, you have to do more than just have a great idea—you have to understand business systems.”

• “I types use money to make money. They don’t have to work because their money is working for them.”

• Wealth is measured in time, not money. It is the number of days you can survive without physically working and still maintain your standard of living.

• “To achieve financial freedom, you need to understand the difference between job security, financial security, and financial freedom.”

• “Once you have knowledge, you can lay in wait for opportunity and seize it when it goes by.”

• If you’ve followed the path to financial security, you’ve got your feet planted on the left and right sides of the CASHFLOW Quadrant. Starting from the E or S quadrant, raised your financial IQ and learned to be a true investor.

• Being good in more than one quadrant is much better than being good in just one.

• Reining in your ego will help keep you from veering off the path to financial freedom.

• There are two good reasons to enter the B quadrant first:
• Succeed as a B and you have a greater chance of developing into a powerful I.
• If you have a business that’s up and running on its own, you’ll enter the I quadrant with two prerequisites: the free time to hunt for good opportunities, and the cash flow to support the ups and downs of investing.

• “On the right side of the quadrant, you gain time and therefore freedom—to make money, to give it away, and to be with your loved ones.”