Let’s talk for a moment about money – more importantly how people make money – and how it pertains to the cashflow quadrant. The world of business is made up of two different types of people: rich people and poor people. Now if I were to ask…
What is the difference between a rich person and a poor person?
You would most likely respond…
One has a lot of money and the other doesn’t.
…or some similar answer. That answer is certainly true and, on the surface, these groups appear to live on two separate sides of the cashflow quadrant, but the difference lies deeper than what meets the eye.
What Is The Cashflow Quadrant?
The cashflow quadrant is Robert Kiyosaki‘s vision of a simple grid that defines how money is generated in the world. Now I know above I said there are two types of people in the world of business, but there are actually four. The left side of the quadrant is home to the poor – employees and the self-employed; the right side is home to the rich – business owners and investors. The differences that set the two apart are based on the core values in which each person believes. Employees’ values are set on security that comes from a steady paycheck; the self-employed value freedom that comes from working for themselves; business owners value a good system that comes from having knowledgeable people working for them; investors value financial freedom that comes from making their money work for them.
Get On The RIGHT Side of the Cashflow Quadrant!
Rich people are those who are considered financially free. They own businesses where employees (from the left side) work for them and ultimately make money for them. The rich are also investors – putting their money to use by buying into something that will provide profitable returns. Most are currently living on the left side of the cashflow quadrant, but wouldn’t it be great to make a transition to the right side of the cashflow quadrant, a.k.a. the financially free side?
Where does Network Marketing fall in the Cashflow Quadrant?
While there is no fool-proof way to guarantee financial freedom overnight, there is a way to gradually and safely move along the cashflow quadrant. Simply change your values to that of a rich person. Also, starting your own part time or full time business will allow you to continue the progression from employee to business owner/investor.
Now, many might initially think that a network marketing business would be considered self-employment, and they would be right….sort of. You see, as a network marketer, your team “counts” as systems and people who work for you. So, as you build your team, you will evolve from self-employed to business owner – from the left side of the cashflow quadrant to the right side of the cashflow quadrant. (FYI, this transition is considered to occur somewhere around a downline size of 500.) Excellent! Plus, you will have the full support of your network marketing company and industry as you reprogram your values, and you can always count on your team and team leader/sponsor to gas you up along the ride.
I hope you found this useful. For more information about Rich Dad, Poor Dad book, just follow the links!
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All of this will certainly help you along your progression of the Cashflow Quadrant!