“More important than the how we achieve financial freedom, is the why. Find your reasons why you want to be free and wealthy.” – Robert Kiyosaki
Are you tired of making your boss rich? With the agony of each week; tolerating your boss, struggling to live from paycheck to paycheck and with all the hard work not being appreciated by your boss, how else can you believe in achieving career success and financial stability with that? Isn’t it better to live a life where you can do every thing that you want to do? Isn’t it better to have more time to do things that matters more? Imagine living your life with more freedom to spend vacations with your family whenever and wherever you want. The key to this kind of life is getting out the rat race and onto the fast track to financial freedom.
Financial Freedom is when your passive income from your investments exceed your total expenses without you having to work; leaving you with a positive cash-flow. Having financial freedom provides you with the ability to have freedom and wealth.
Given an excellent business opportunity, one can easily find his/her road towards a successful journey to financial freedom. However, achieving that takes time, education and experience. Time is something that the rich values, they spend most of their time and energy building a business that will provide them with more freedom and wealth. To better understand how to build a successful business; first let’s take a look at how the rich thinks and where they keep their money.
Living in America
America is said to be the land of great opportunities. People from different parts of the world have come ashore to find their own successes in life. However, in the last few years, hundreds of thousands Americans have lost their jobs. A number of people and big companies have filed for bankruptcy with nowhere to turn to,except to start a small business. Apparently, less than 10% of the country’s population is earning 200,000 a year. Whatever happened to the opportunities that the land was once known for?
With the current economic situation, America is no longer living in the Industrial Age where most people go to school to learn a profession to get a safe secure job. Most people go to school to learn a profession they never learn about financial education. For these people end up being in deep debt and working hard to earn money instead working smart by having their money work for them. They end up spending considerable amount of money for their education on academic and technical skills, working hard in school to make good grades in hope of landing a great paying job. They seem to not get their money’s and their hard work’s worth.
It is time to stop believing that looking for financial security with a great paying job is the answer to your financial problems. In our current financial crisis has resulted to lowered wages; a prime case of the law of supply and demand. With that, some employers take advantage of the situation, paying low wages but expecting more work among their remaining employees. In addition, there are not enough jobs to complement the rapidly growing numbers of unemployed and job-seekers. The lay offs and inflammation as well as the job outs experienced because of the country’s economic situation only proves that job security is somewhat not that secure.
The Different Types of Cash-Flow Quadrants
Robert Kiyosaki talked about the four quadrants in business in his book “The Cash Flow Quadrant”; the employee,self-employed, business owner and the investor. This is known as the E, S, Band I quadrants. The employee relies on a job security and benefits to make aliving; the self-employed owns a job of their own, they end up getting themoney they want but ends up with little free time for themselves; the businessowner build systems create jobs for others and gets passive income by makingmoney work for them; the investors are the one’s don’t own anything but hasfull or part control when they invest in other people’s business systems. Withthat, it is at the business owners and the investors’ quadrant that the richkeeps their wealth. Now you might say how about the self-employed or the “S”quadrant. They might run their own business and make good money; however theydon’t have financial freedom.
The Difference between the Rich vs. the Working Class
The working class is the employees, who are the middle class and the poor; they work hard to earn money and don’t get the money they want. The rich is the business owners;. They tend to work less yet earn more millions. There is no difference from the rich business owner, the middle class and the poor employees. The only difference is in the way that they think. The employees choose to turn to their savings, mutual funds and 401 k’s to try to achieve financial freedom. The business owners choose to invest their money into business systems which can serve as their leverage for gaining more financial successes. They are fully aware that it is not smart to rely on savings for it loses value each year.
The business owners invest in systems that have exponential growth, having the leverage of compound interest and cash-flow. They make use of other people’s money, time, and resources as a source of leverage to help them build their wealth, which provides them to get more done in less time. They keep their wealth in business systems, such as Real Estate, Network Marketing, Online Business, and other investment that provide a positive cash-flow.
What makes successful business owners rich?
You may have heard that 9 out of 10 businesses fail; that means one business successfully makes it. Lets go in, a little deep to find out why the successful business makes it. Most people believe that it is money that makes a person rich. However, becoming rich is more about what that person does with his time. Successful business entrepreneurs know that financial successes are dictated by how well a person maximizes his time in finding out ways of being more effective managing his money. Most of these entrepreneurs spend their spare time learning and educating themselves on how to become successful. These entrepreneurs never stop educating themselves to be, more financially educated.
This life going education keep them prepare when the markets has its ups and downs,they still know how to make money. One thing that is prevalent among successful business owners is their relentless taste for looking out more ways of increasing,creating and earning from business cash flow systems. They invest into assets that are built around a great business system that will produce large amounts of cash flow; the rich also create corporations that will protect their assets;they understand that people and money management is a big key to their success.
They develop exit strategies like trusts, wills, and other types of business agreements during their absent of the investments; and they work with mentors and advisors on assisting them with their investments. They know the difference between money making assets that put money in their pockets, and liabilities which will take money out of their pockets. Business is very much like a game.All successful business owners have taken risks. What makes them increase their chances of winning is their continual education which is basically comprised with lessons from their past mistakes or failures and their continuous drive to find success and expand their empire.
To find success in the “B” or “I” quadrant requires more than financial education. It often requires a change in care emotional thinking, feelings, beliefs and attitude. Most successful people act out of passion and love for what they do. To be successful in business, you have to create a business that you are passionate about. With the number of business ventures that you can get into you will surely find one where your passion lies. Then educate yourself on the ins and outs of that business, to find better ways of providing services to your customers. Building a great system around it that will produce great cash-flow and leverage.
If you are currently compromising time for money and bear the agony of standing long hours of work, it is time to re-think your plans of achieving financial freedom. Learn the ways of a business that you love and stay committed on its growth and all your hard work will be rewarded with an income that you haven ever dreamed about. Hence, a successful business is a sure key to an abundant life.