Cashflow quadrant

In the year 1985, Robert T. Kiyosaki and Kim, its(the wife, doesn't have residence. They do not had work and only had a few rest of savings. Credit card they retrieval ultra vires have, and they are life in a Toyota obsolete cacao with chair reclining which is functioning as bed. Sometime they do work of fiber and gets some dollars passim. At that moment they are covered doubt which in. a safe work ideas and guarantees with monthly salary slip felt hardly lures. But because security and safety of job(activity is not which they are searching, they always struggles. Lives by day to, by the side of financial deep ruination.

The year, 1985, be year is ugly in life they, at the same time longest. Whose also telling that insignificant money clear have never felt haves no money during stripper. They know, they can always get salaried work of safe height and guarantees. They all college graduate skilled worked good and strong job(activity ethos. But they don't look for work security and safety. They look for financial freedom.

In the year 1989 they have become millionaire. Though seems to succeeding financially in people eye, that moment they remain not reaches their dream. They have not reached for real financial freedom. Still be required time until the year 1994. When that is they have no more require working for a lifetime they. Both of them has obtained financial freedom. Robert age 47, Chyme 37.

Very often we hear people to say, " Required money to yield money."

Robert is not in agreement. From poor condition (don’t have home) in the year 1985 so becomes millionaire in the year 1989 and then reaches financial freedom in the year 1994, they don't require money. They don't have money when starting it, even they have debt.

Nor required [by] high formal education. Robert has college diploma, and as honest of s(he tells that reaching financial freedom not related to what studied in college. Many successful people leaved school bench without taking diploma college. People like Thomas Edison, founder General Electric; Henry Ford, founder Ford Motor Co.; Bill Gates, founder Microsoft; Ted Turner, founder CNN; Michael Dell, founder Dell Computers; Steve Jobs, founder Apple Computer; and Ralp Lauren, founder Polo. Education of important college for traditional profession, but not for way of this people gets big properties. They develop themselves business that is success. And that is formerly is strived Robert and Kim crucially.

So, what required?

Mind Your Business with Financial Intelligence

Does You till now strive and makes rich others? Since childhood most people program to manage others business and makes rich others. This thing is started subconsciously with advice words as follows:

1. "You must go to school and gets good value so that can have safe work and guarantees with high salary and subsidy that is good."
2. " You must strive so that can buy your dream house, because your house is asset and your infestation which is most valuable."
3. " Mortgage profits us because government to give withholding for payment of its(the interest."
4. " Buys now, latter payee," or " Small advanced money, light monthly installment," or " may be admission and saves."

Man that is off hand follows the advice words often becomes:

1. Officer, makes superior and owner of rich company.
2. Debtor, makes rich bank and creditor.
3. Tax payer, makes rich government.
4. Consumer, makes many rich other business.

Rather than looking for their own financial throughway, they assist others to find financial throughway of they. Rather than managing their own business, they strive for a lifetime manages others business.

CASHFLOW QUADRANT

According To Robert Kiyosaki in its(the book " CASHFLOW QUADRANT", there is four quadrants that is possibly becomes source of production of someone.

This diagram is CASHFLOW Quadrant.


E S
_ _

B I


Letter in each quadrant represents:

E for employee ( officer)
S for self-employed ( free worker)
B for business owner ( owner of business)
I for investor ( investor)

CASHFLOW QUADRANT represents various different methods to get money or production. For example, a " E" gets money by working for others or company. People " S" gets money by working for own self. A "B" has business yielding money, and " I" gets its(the money from various their investment - equally, money yields more money.

A "E" ( officer) can be company director president or company broom worker. All important is not do they do, but agreement ties which they to have with people or organization employing them.

In group "S" ( free worker) we find " professional" passing the time higher education through years in school bench, like for example medical doctor, lawyer, and accountant. Also in this group there is people who takes education line outside, or beside, traditional stream. This group covers salesman and owner of small business like tradesman at retail, owner of restaurant, contractor, consultant, therapist, journey agent, grease monkey, plumber, carpenter, clergy/priest/rabbi, electrician, hair dresser, and artist.


A " B" almost be fighting against from " S." They love to orbit their x'self with clever peoples from fourth categorized. Not like " S" distaste delegates work ( because assuming nothing that can do it is eminently), a " B" real liked delegates work.

Main difference between " S" and " B" be, a " S" has a work while a " B" has a system and then rents people who is having competence to implement the system. Or by the way of other can be told, in most cases " S" be the system. That is because of they cannot walk off its(the business for old time.

On the contrary, they which is " B" real can leave effort for they are during one years or more, and at the time of returns to finds business they is more profiting and runs is better compared to when they to depart from. In type business " S" pure, if the " S" go during one years or more, very possibly there are never business remaining when they to return.

Owner of business " B" can have the day off forever because they to have a system, not a work. If " B" be having the day off, its(the money still pouring. Plenty (of) man which able to make easier burger from McDonald's, but only McDonald's what has system which has presented burger billion. Bill Gates from Microsoft doesn't make excitement product. He buys others product and builds sophisticated global system in vicinity.

"I" ( investor) makes money with money. They is unnecessary worked because money they to work for them. Quadrant "I" be arena plays at rich faction. In quadrant it doesn't matter people yields money, if hopes one day would be rich, they in the end must enter quadrant "I". In quadrant "I" this is money turned into properties.

That Is CASHFLOW QUADRANT, actually only explains difference about way of receive production, don't know that is as "E" ( officer), " S" ( free worker), "B" ( owner of business), or "I" ( investor).

Difference of fourth fundamental of the quadrant terangkum hereunder:

E : You are officer working for others or company.
S : You has work and you tied with the work.
B : You has system and others to work for you.
I : Money works for you.

CHOOSES YOUR QUADRANT

Most of we have ever heard that secret obtains big properties is:

1. OPT - Other People's Time (Others Time).
2. OPM - Other People's Money (Others Money).

OPT and OPM is found in right side Quadrant. Most man working in left side Quadrant is OP ( Other People) which time and its(the money utilized by them residing in right side Quadrant. In left side, the " E" and " S" possibly has work security and safety. But, only by becoming " B" or " I" in your Quadrant right side will reach for security and then financial freedom.

By choosing type business "B", rather than type business "S", You will obtain long-range advantage applies "others time". One of weakness becomes "S" what is success is: the success means must strive harder. Equally, work that is nicely yields harder job (activity and longer office hours.


In designing business in right side Quadrant, successful mean increases system and entangles more people. Equally, we work slimmer, yields more money, and enjoys more lee ways.

In All Quadrant is required [by] financial intelligence. If we like to operated in right side Quadrant, that is side " B" and " I", You have to be more be clever than if choosing is silent in left side Quadrant as " E" and " S". To be "B" or " I", You should be able to control towards such cash your flow flows.

PROPERTIES AND CASH FLOW

Robert Kiyosaki defines properties as: " Number of days where you can stay without working in physical ( or without whom also in your family works in physical) and remain to maintains level of your life."

For example: If your expenditure was Rp. 1.000.000,- per month, and if you had saving Rp. 3.000.000,- hence your properties are around 3 month or 90 days. Properties measured in set of time, non money.

So, important is not especially about how many money which you yields, but more about how many money which you keeps, how the money firm works for you, and how many generation which you able to take care of with the money. That is so-called financial intelligence.

Some last year, an article writes down that most of rich man receives 70% their production from investment, or from quadrant "I", and less than its(the 30% from salary, or from quadrant " E". And if works as "E", hence very possibly they are their own company officer.

For most others, that is poor faction and middle-weight, at least 80% production they come from salary in quadrant "E" or "S" and less than 20% comes from investment, or from quadrant " I".

Many people believed that only productively more moneys, financial problem of they would completed. But, in most cases, this thing only generates monetary problem larger ones. Main reason of people haves an affair finance is because they have never got Lesson about management of cash flow. Without this practice they finally gets finance problem, then they strived harder with confidence that more moneys will solve problem them.

So, if you wish to manage Your own business, step of following as CEO your life business are control cash your flow. If You did not make it, yields more moneys never make you to increase rich… even, more moneys makes most of people increasingly poor because they often go expends it and increasingly in embedded debt each time gets increase of salary.

As expressed by Robert Kiyosaki in its(the book " Rich Dad Poor Dad," there is three patterns cash flow base. One for poor group, one for group of middle-weight, and one for rich group. This is pattern cash flow for poor group:

And this is pattern cash flow middle-weight:


Pattern cash this flow assumed " normal" and " intelligent" by our public. Because people who has this pattern possibility is having work with high payment, house good, car, and credit card.

This called as "working class dream."

Has pattern cash flow middle-weight of course normal in Era Industry, but that thing can be dangerous in Era Information. Along with growing it financial intelligence, many mans is starting realizes financial difficulty they are experiencing, though public assumes them " normal financially."

When the understanding arises, you must start thinking like rich man rather than like middle-weight eager beaver. By changing your way of thinking like rich group way of thinking, you will start looks for pattern cash flow like this:

This is idea pattern of mental taught by Robert Kiyosaki.

He doesn't suggest you to become addiction of work with high payment, but that you develops idea pattern which only centrally at asset and inclusion in the form of capital gain, dividend, rent money inclusion, residual inclusion of business, and royalty or liability income.

For You which wish to succeed in Era Information, faster starts develops financial intelligence and emotional to think in this pattern, faster you will feel more safely financially and finds financial freedom. In world where there is increasingly a few work security and safeties, pattern cash this flow felt more sensible. And reach this pattern you need to see world from side " B" and " I", not only from quadrant " E" and " S" only.

In Information Era, its(the hard work idea meaning doesn't be the same with Era Agrarian and Era Industry. In Information Era, man is working hardest physical will be paid [at] least. So, expression "uses brain, doesn't use muscle" its(the intention do not use brain in quadrant " E" and " S". What intended is use brain in quadrant " B" and " I". That is way of thinking Era Information, what makes emotional and financial intelligence of vital importance is the existing as does in front.

TOWARDS FINANCIAL FREEDOM

Tax and debt is two main reasons most people have never felt safe financially or have never reached financial freedom. towards street security or freedom is found in right side CASHFLOW Quadrant. You need to see forwards go beyond work security and safety. Had arrived its(the time knowing difference between work security and safeties, financial security and safety and financial freedom.

Work Security And Safety Pattern

People with this pattern often good achievement in its(the work. A lot pass the time through years in school, and through years experience of in work. Its(the problem, they only know a few about quadrants " B" and " I". They feel not safe financially because they had been trained just for obtaining work security and safety or profession.


To be more safely financially, Robert suggests, besides doing their work in left quadrants, they also better get wise to right quadrant.


Financial Security And Safety Pattern

There is two way towards financial security and safety for a " E":

Rather than entering money into retired account and hopes obtains best, this circle indicates that they feel is sure their knowledge would, either as investor and also officer. Like when we get wise to a work in school, Robert suggests we also learning to be professional investor.

And like this is security and safety for a "S":

This is pattern explained in book "The Millionaire Next Door", what written by Thomas Stanley. This is a real book good.

Average of American millionaire is free worker, life economizes, and does long term investment. This pattern expresses financial life Way of them.

This line, "S" towards " B", often is gone through many big entrepreneurs, like Bill Gates.

This does not walk easiest, but according to Robert, this is one other best.

So, has knowledge in quadrant multiple , especially one in left and one in right, far better than only clever in one sides. In view of average of rich man obtains 70% result from right side and 30% from left side Quadrant. From observation, nonchalant how many also money yielded by someone, they will feel more safely if operates in more than one quadrants. Financial security and safety mean has strong stepping in both sides CASHFLOW Quadrant.

Financial Freedom Pattern

This is pattern suggested by Robert. This is way towards financial freedom.

This is real financial freedom because in quadrant "B" people works for you, and in quadrant " I" money works for you.

You free to work or don’t work. Your Knowledge in both this quadrants has given you are freedom of physical of as fully his(its from compulsion works.

If You sees the super rich, this is their pattern in Quadrant. Radian around " B" and " I" indicates inclusion pattern of Bill Gates from Microsoft, Rupert Murdoch from News Corp., Warren Buffet from Berkshire Hathaway, and Ross Perot.

WAY SUGGESTED

Robert often interrogated by people in left side Quadrant, "Does you suggest?" He suggests way like this:

This way also is taken people like Ross Perot, Bill Gates, and others.

Robert doesn't suggest for direct to enter quadrant " I" because this quadrant requires you had is mint of money and leeway.


In reality is, investment requires knowledge and capital which many. Sometime is required many capitals and time to obtain the knowledge. If you didn't had knowledge and capital, tries to become investor is action of suicide.

In most cases, people didn't had much time and money, thus they then submits other question," Why quadrant " B" formerly?" Robert gives two reasons:

1. Experience and Education. If first of all succeeded as a " B", You will get better opportunity to round into a " I" strong. If first of all develops settled business instinct, you will become better investor. Real investor invests at " B" what is successful with stable business system. Very ice to invest in at a " E" or " S" which is not knows difference between a systems and a product… or which is not has skilled of good leadership.

2. Cash flow. If having working well business, you mean had leeway and money to sustain fluctuation of quadrant " I". Many people from quadrant " E-S" his(its monetary finite so limited of they is not ready to account financial loss in the form of anything. Only in once market swing they are direct went broke. Many investors succeeded losing of time, as well as money, before starting wins.

First of ally develops is skilled become "B" good, you also prepares money required to go forward to become good investor. Business which you develops as a "B" will give you are bank roll which will support you are when obtaining knowledge to be good investor. After having knowledge to be good investor, you will understand why "Not always is required money to yield money."

The good news was, now easier than formerly to succeed in quadrant " B". Even not easy to obtain work with minimum wage, now has been formed system for more and more people to find financial success as "B".

WAY OF LEARNING BECOMES A "B"

When move to quadrant "B", remembers that purpose of you are have a system and entangles people who will implement the system for you. You can develop itself system or you can look for a system to be bought. The system is bridge which will enable you to cross safely from left side to right side CASHFLOW Quadrant… your bridge towards financial freedom.

There is three main types of common business system used to be the existing, that is:

1. Traditional company of type C(Corporate) - where you develops Your own system.
2. Franchise business (franchise) - where you buys a system which there [are].
3. Network marketing (network marketing) - where you buys and becomes part a system which there [are].

Having the power each and weakness, but all finally does the same thing. If it is operated truly, each system will give regular influent without too much effort physical of from the side of owner… after run. Its(the problem is how to implement it.

Way Of Robert learning becomes a " B" be with apprentice. And like that way of many people learning. The way is called "on-the-job training." By the way of this are many empires of tightly closed family business endowed from generation to generation.

Its (the problem, not many man which able, or fortune enough to study aspect "at the opposite of [screen/sail]" to be a " B". Most corporate management training program only limited to that - company only train you to be a manager. Only a few teaching way to become a " B". " B" successful will develop a system which able to run without their involvement.

According To Robert, there is three ways which able to make you to reach side " B" swiftly.

1. Searching a counselor.
Counselor is someone who has done what is wishing you does… and success in doing it. Doesn't look for an adviser. Adviser is someone who is informing you are way of doing it, but he/she xself have never done it. Most of adviser resides in quadrant " S". This world full " S" what tries informs you are way of becoming " B" or " I".

Even with a counselor and experience of through years, this first method hardly extorts energy. Creates Your own system requires many trial and error efforts, legal cost paid in advance, and job(activity paper. These all happened is at the same when you to try develops your people.

2. Effort for Franchise.
Other way studies system is by buying an effort for franchise. By buying it, you buys a system which has run and has "tried and proven its." There is many franchise business that is good.

By buying franchise business system, you can focus attention at effort to develop your people. Buys system to remove one big variables when you are learning becomes a " B". Unhappily, this franchise business, more than anything else famous, usually very expensive. Reason of many banks will loan money to a franchise business, not to small business has just, be because bank knows the importance of good system to minimize their risk.

3. Network Marketing.
As does experienced by franchise business, law system initially copes prohibits marketing of this network. Every new system or idea in this era often classified as " compromising and odd". Initially, Robert also thinks marketing of network is a deception. But after through years studies various network marketing systems, and sees some its(the friends is success in type " B" this, Robert changes mind.

After removing its(the prejudice and starts checks network marketing, Robert finds that there is many mans that is very seriously and seriously builds marketing business of network that is success. When meeting the people, s(he sees their business impact at lives and financial future of others. Robert starts really esteems network marketing system value. With filling fee that is proper (often around $200), people can buy membership and directly starts building their business. Because technology progresses, this organization fully runs automatically. Confused generated by job(activity paper, order processor, distribution, accountancy, and continuation process, almost everything managed by network marketing software system. New distributor can focus all efforts to build business they are rather than worrying of usual problems arisen in establishment early stage of a small business.


One of stripper friend Robert, what yields dollar billion multiple in business real estate in the year 1977, recently enlists as marketing distributor of network and starts building its(the business. surprised Robert sees it is seriously builds a marketing business of network because explains s(he doesn't require its(the money. When Robert enquires its(the reason, s(he explains like this:
"I am school and learning becomes CPA ( Certified Public Accountant), and I have title MBA in finance-related. Time people asks way of me to become as rich as this, I tells about transaction real real estate millions of dollar which I does and about hundreds of thousand passive inclusion dollars which I receives every year from the business. I then sees some backing-ofves or holds off. We all knew opportunity they to do investment real estate millions of dollar like very thin me and even null. Besides doesn't have reasoning of correct education, they also do not have capital extra to be invested. So, I start looks for way which able to assist them to reach level of the same passive inclusion which I develops from real estate… without having to returns to school during six years and finishes 12 years to invest in real estate. I believe, marketing of network gives people opportunity to build passive inclusion which they require when studying way to become professional investor. That is because of I suggest marketing of network to them. Even as of example only have a bit of money, they admit of invests ' sweat equity ' during five years and obtains more than enough passive inclusions to start does investment. By developing their own business, they had leeway to learn and has capital to be invested in my transaction larger ones."

Having taken steps some researches, my friend joint forces with a marketing company of network and starts building marketing business of network with people who before all wish to invest in with his(its. Now marketing business of its(the network works well like also its the investment business. He tells to Robert, " Initially I do it because wish to assist people to get money to be invested, and now I make money out is great from a new business."

PERSONAL FRANCHISE BUSINESS

That is why now Robert suggests people to consider network marketing. Buys famous franchise business often requires money millions of dollar. Marketing of network like buying person franchise business, often only requires less than $200. Many marketing of network requires hard work, but success of in quadrant it doesn't matter is hard working. Robert x'self doesn't obtain inclusion as network marketing distributor.

Robert recommends way is finding an good organization to assist you cross to right side Quadrant. The key not especially at its(the product, but at education that is on the market the organization. There is organization of marketing of network which only wish you to sell their system to your friends. And there are organization which purpose of mainly is educate you and assists you success.

From its(the research to network marketing, Robert finds two important things of which you able to study from program they which is important element to be a " B" what is success:

1. To succeed, you must learn conquers having cold feet refused, and desisted worries will which be told others about you. Very Often Robert met man is arrest; detaining x'self just because worried of will which was told their friends if they did thing differing. One of best phrase repeatedly s(he tells to their/his self is, " What do you say to myself is not my business. All important is my opinion about myself x'self." That Is Why Robert works in sales department Xerox Corporation during four years. Not because of s(he likes copier, but because s(he wish to eliminate diffidence and haves cold feet refused.

2. Learning leads people. Works with various man types who is different is most difficult something in business. Ability to fit in with others and can give inspiration to them is a real valuable skilled. a skilled of which able to be studied.

Transfer from left quadrant to right quadrant is not especially which you does, but especially about who is yourself now. Learning way of facing rejection, way is not affected by opinion people about yourself, and learning way of leading people, hence you will find prosperity. That is because of Robert supports organization of marketing of his(its first commitment network is develop you are as a man, not especially as a salesman. Robert suggests looks for organization which:

1. Be organization which has proven is good and has good achievement and distribution system and compensation program which have been succeeding during through years.
2. Has business opportunity which able to succeed you to implement, which you able to trust, and you can for fully confidence to others.
3. Has long-range education program always takes place, with aim to develop you are as man. Absolute self confidence taste needed at right side Quadrant.
4. Has strong tuition program. You wish to learn from the counsellors, non adviser. That is people who has become leader in right side Quadrant and is wishing you success.
5. Has your people who respects and likes.

If an organization fulfills fifth of the criterion, then you sees its the product. Too much people see product and non business system and organization residing in back of the product. If we like to became salesman, a " S", hence product is all important. But if we like to rounded into a "B" long-range, system, education for a lifetime, and its(the more important people.

One of friend and friend Robert having knowledge in this industry reminds about time value, one of our most valuable asset. Real success can be reached marketing intracorporate of network when your commitment to time and hard worked in short term to yield long-range passive inclusion in gross. After successfully builds strong organization below(under you, you can call it day and inclusion would continuously flow from operation of organization which you has woke up. But, primal key reaches success with marketing of network is really long-range commitment from the side of you, like also from the side of organization, to form you becomes leader of business which you wishs.

SYSTEM IS BRIDGE TOWARDS FREEDOM

Until some last year, someone opportunity to succeed in quadrant "B" there's only for they which dare and rich. Robert and Kim surely pertained dare to because they are not rich. Reason of so much people is trapped in left side Quadrant is because they feel risk to develop their own system too big. For they, cannier if(when they still stay in well guaranteed and safe position by having a work.


Now, especially because development of technology, risk becomes owner of business that is success has is far decreased… and opportunity has business system x'self available for all people.

Franchise business and marketing of network removes difficult part of system development x'self. You ready to buy rights a proven have been system of its the power, and then your duty only develops your people.

Assumes this business system as bridge. Bridge which will give way to you so that can cross safely from left side CASHFLOW Quadrant to right side… your bridge towards financial freedom.

Reason of I introduce you with CASHFLOW Quadrant is to give you are a few opinion? sights about who is yourself, is your enthusiasm, and personal like does finally wish you tired. I have confidence that any people can find their way are each towards financial throughways, nonchalant from quadrant such they operate. But in the end, you must find your own way.

Remembers: "Your boss duty are giving you are work. Your Duty to make yourself x'self rich."

Does You ready for desisting transports water pail and starts building duct flowing money to sustain your life, your family, and your life style?

Anything which you decide, remembers this. Financial freedom of course free, but not cheap. Freedom has price… and for me the matter good match for the price. Secret level of is this: To be free financially is not required high formal money and also education. Nor needs ice. On the contrary, the price of freedom is measured with dream, ambition, and ability overcomes we disappointment are natural when coping reaches for it. Does you volunteer pay [for] the price?

I have met with people who will pay [for] the price, and people who no. This last per forced to pay [for] other price.

Manages your own business possibly will felt is difficult and sometime bewilders, especially initially. There a lot must be studied, nonchalant how much your knowledge. This is process for a lifetime. But the good news is part difficult to this process located in initial part. So After You makes commitment, really becoming life increasingly easy. Manages your own business not difficult to done. What required only common sense?