Don’t Fail To Fail Enough Times

View making mistakes as an essential step in building your business, and as a huge sign of progress.

Many people aren’t a success, as Robert Kiyosaki says, because they fail to fail enough times. They let fear hold them back. In his book, The Cashflow Quadrant, he talks about the four types of people who make up the world of business:

  • “E” for employee
  • “S” for small business or self-employed
  • “B” for big business (500 employees)
  • “I” for investor

Every person spends the majority of their time in one of these four quadrants. So how do you know which one you’re in? Just look at where most of your cash flow is coming from.

Most of the population is made up of employees who rely on their paychecks. Others are self-employed, working in commission roles like being a real estate agent.

These individuals are on the left side of the quadrant. As we’ll see in the diagram below, each one of these people share common characteristics.

Picture2.jpg

Examining this chart will help you see where you are today, as well as where you want to be in the future.

Achieving financial success and freedom is much easier and can be achieved much faster in the B and I quadrants.

Profits are better than wages. Wages make you a living. Profits make you a fortune.”—Jim Rohn

I myself made the decision to shift over to the right side of the Cash Flow Quadrant a few years ago, and it has been the single greatest decision of my entire life.

Most people fear making that shift because they perceive it as being “risky.” But it depends on how you define risk. In my view, trading away time for money in a job (and choosing not to start a business) is a guaranteed path to financial mediocrity.

That to me is “risky.”

Over 90% of all wealth comes from people who control their own lives. They’ve mastered systems and their time. And although anyone can become wealthy, there is a limitation wall.

That limitation wall is the way you presently think (your mindset). You can see a lot of the symptoms of the employee mindset; it’s plagued with excuses and a scarcity mentality.

Cashflow-Quadrant-1.jpg

CASHFLOW QUADRANT

By: Robert T. Kiyosaki