Freedom Group International is offering the opportunity for you to be on the B-side of the Cashflow Quadrant. This is the opportunity for you to make a substantial amount of Residual Income. 98.3% of all self made millionaires earned their money thru Residual Income. Now, the question is where are you in the Quadrant and where do you want to be?
Robert Kyoskaki explains in his book, "Cashflow Quadrant" that the B-Side is the side who are truly financially secure and successful!
In these steps we will find out where you are in the Cashflow Quadrant and what steps you need to take to be on the right side.
1. What is the source of your income or cashflow? Is it from paychecks? business income? rental income? dividends? So where are you now? Answer this question before you go on. Your answer gives you a first indication of where you are in the Cashflow Quadrant.
2. What is your mind set? Here's the encouraging thing-- Your mind set is more important than where your current cashflow comes from. You must begin to change quadrants mentally/emotionally before you can change quadrants financially. Is this something you're actively working on now? Begin today.
E | B
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S | I
E = Employee
S = Self-employed or small business owner
B = Business Owner
I = Investor
The Left Side of the CashFlow Quadrant-
E - the Employee receives income from a job. An employee can be a janitor or a president of a company. E-type people are looking for security.. a safe, secure job with lots of benefits.
You might hear an E -type person saying:
How much do we get for overtime?
How many paid holidays do we have?
Most people have the E mentality. They will not work for free even if the currently free work may bring B -quadrant results in the future. Thus, most E-types work for 40-50 years for salary or wages, yet when they retire, many of them still struggle with money issues. Most don't realize that it is possible to become financially free, that if you have a dream, a plan, and good mentors you are likely to achieve it in 5-10 years. Some are so afraid of risk they don't bother to learn more. The core of the E-mind set is emotional: the need for security rather than the yearning for freedom. If E's were educated on the alternatives, however, they might begin to think outside the box.
S - the Self-employed are those who want to "do it on their own”. Examples of S-type people: direct-commissions salespeople like real estate agents, professional people like lawyers, doctors and independent contractors, or small business owners like owners of restaurants or small family businesses.
S-type people may be heard saying things like:
"My usual commission is 6% of the total purchase price."
"My fee will be $1000 for the job."
"My hourly rate is $50/hour."
And they give advice such as:
"If you want something done right, do it yourself."
( S -types have difficulty trusting or delegating their job to others.)
Even though Self-employed people may "own"their business, they actually just "own"a job, because the definition of Self-employed is that they have to keep working in order for the income to continue. Most E -types who want to quit their job to go "do their own thing" move into the S-quadrant, so the "S"could stand for Satisfaction as well. However, this is the quadrant of very hard work, and sadly, 9 out of 10 small businesses fail due to financial or physical exhaustion. This is a challenging quadrant to remain in!
E | B
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S | I
The Right Side of the CashFlow Quadrant --
B - the Business owner receives his income from a business that he doesn't have to work in. Here is the difference between S-quadrant and B-quadrant business owners: " A B -quadrant business owner can leave his or her business for a year or more and come back to find it running better and even more profitably. An S-quadrant business owner often cannot afford to stay away for any length of time. In most cases, if a self-employed or small business owner stops working, his or her income stops coming in."(Kiyosaki, "The Business School"p.30)
Note: Most people who are successful in the B -quadrant continue to work and drive their business, but mostly because they want to, not because they have to. They keep working because they are passionate about what they do. (For example, Bill Gates is still working!) However, successful B -quadrant business people have more money than they need and they put their excess money into I-quadrant investments. Bs have more time and money freedom than S-quadrant people. B-quadrant business is an ideal to reach for and it takes consistent work. It's about working smarter, not harder.
According to Robert Kiyosaki, there are 3 kinds of B -quadrant businesses:
- C -type corporations (like Microsoft);
-Franchises; and
-Network Marketing businesses.
Kiyosaki says that to successfully build a C -type corporation or Franchise into a B-quadrant business ("walk away income") takes "at a minimum 5 years of work and $5 million"(pg. 50, "The Business School.") He also says: "Network marketing businesses give all of us access to what used to be the domain of only the rich"(pg. 54, "The Business School".) According to Kiyosaki, network marketing is the only B-quadrant business that is affordable for everyone and comes with the benefit of a life-changing business education if you find the right upline team.
Finally, since success in the B -quadrant requires significant personal & leadership development, B -quadrant success is integrated with success in other life areas.
I - the Investor derives his income from investments like Real Estate and Paper Assets (stocks, etc.) Being in this quadrant is not easy, either. It takes quite a few years + financial capital to learn investing successfully. Kiyosaki says: "When I decide to learn something new, for example, investing in real estate, I still allow myself 5 years to learn the process. When I wanted to learn how to invest in stocks, I again gave myself five years to learn the process. Many people invest once, lose a few dollars, and then quit. They quit after their first mistake, which is why they fail to learn. My rich dad would say, 'A true winner knows that losing is part of the process of winning. It is only the losers of life who think that winners never lose. A loser is someone who dreams of winning and does everything possible to avoid making mistakes.' I still give myself five years to make as many mistakes as possible. I do this because I know that the more mistakes I make and learn from, the smarter I will be in five years. If I make no mistakes for five years, than I am no smarter than I was five years ago. I am only five years older."(pg. 40, "The Business School for People Who Like Helping People")
E | B
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S | I
E = Employee
S = Self-employed or small business owner
B = Business Owner
I = Investor
Where are you heading?
Which quadrants are you in? Which quadrants are you aiming to go to?
A person can be in several quadrants at the same time. However, in order to get financially free (to no longer have to work a job) you need to have all your living expenses be met by income from the right side of the cashflow quadrant.
A key difference is that the left side of the quadrant ( E and S ) earns you linear income (you have to keep working for it) while the right side ( B and I ) earns you residual income. Once the proper foundation is set, residual income grows without much effort. You could be earning $50,000 residual income one year and $75,000 residual income the next year, yet it's not from your increased efforts, but instead from a solid foundation you've set up. The key is to create a system that increases your income.
Freedom Group International has that system. It's time to fire your Boss and take control of your life and financial stability. Stop living paycheck to paycheck and build a network that will increase your Cashflow. Become the next self made Millionaire! Just follow our system and duplicate your efforts, and you will definitely see a change in your lifestyle. Are you up for the challenge?
One of the Biggest Things in owning your business is Tax Advantages, Please take a look at this for it is critical in your day to day operation.
Listen to World Renowned Financial Advisor and Best Selling Author of Rich Dad, CashFlow Quadrant, Retire Young Retire Rich, Tax Loop Holes, etc.
Track1 (Business Opportunities)
Track2 (Building a Business)
Track3 (Electronic Commerce)
Track4 (Emotional Intelligence)
Also, listen to Robert Allen's Multiple Streams of Income audio.
