Cash Flow Quadrant
Hello my prosperous hearts!
A couple of days ago, I provided information on my favorite money management system (and even gave you the option to receive a FREE tool) … I thought I would continue my 21 day blog challenge by providing information on something else that changed the way I think about money.
When I started my first network marketing business, I was introduced to some of the most incredible, compassionate, intelligent, & success minded people … And one of the first books they told me to read was Rich Dad Poor Dad by Robert Kiyosaki.
This book completely made me change the way I think about money. And it all started with this fancy little “Cash Flow Quadrant”:
The YouTube video attached with this post will go a little more in depth about this odd little photo (as well as some of the differences between a rich person’s income statement and a poor person’s) but I’ll break it down pretty quick and easy for you here.
The Cash Flow Quadrant defines how different people generate their income (money).
Cash Flow Quadrant Breakdown
The left side (Employee, Self-Employed):
focuses on earning income
greatly value a safe, secure job or career
trading time for money
95% of the population
5% of the wealth
The right ride of the cash flow quadrant (Business Owner, Investor):
focuses on creating assets to provide their income source
use OTHER PEOPLE’s time & money
values financial freedom
5% of the population
95% of the wealth
The following photo really helped put things into perspective for me:
This is one of the many reasons why the “98%” movement really gets my goat, but that’s another blog for another time.
I would highly suggest you pick up this book and begin the wonderful journey of increasing your financial knowledge. You’ll thank yourself in the long run. It’s really the only kind of knowledge you need to become wealthy, honestly. — But don’t take my word on it. Every wealthy person I’ve ever met or read about has said the same thing.
INCREASE YOUR FINANCIAL EDUCATION!
So what would you like to do? Work 40+ hours a week for 40+ years to “retire” and live off of 40% of what you were making before? Or would you like to determine the level of income you have and be master of your life?
John Paul Getty (who at his death was worth $2 billion) said, “I’d rather have 1 percent of the efforts of 100 people, than 100 percent of my own efforts.”
Can you guess which part of the cash flow quadrant he was in?
Thank you once again for joining me today! If you liked the information I provided here, please be sure to join my mailing list to receive money management tips, ideas on debt reduction, information on increasing your wealth, and so much more! — You’ll even receive that FREE downloadable money management tool as a thank you.
(And be updated when I update the tool, since I’m planning on improving it here soon.)
~ To Your Success ~