In Robert Kiyosaki's best selling book The Cashflow Quadrant, he outlines the four ways to make money in the world. There are Employees "E's", Self Employed people "S's", Business Owners "B's and Investors "I's".
The natural progression for a person in life is usually:
- Start out as an employee
- Evolve into a self employed person
- Next they may become a Business Owner
- Finally, they become an investor
As I move through the quadrants in my life, I notice that my thinking and mentality change radically as I transition from one Quadrant to the next.
When I was an employee, I was trading time for money every day. My mentality was "If I wanted $1000, I needed to work 59 hours at $17 dollars an hour". If I wanted more money, I needed to work more hours.
When I was in the self-employed quadrant, I was trading ACTIONS for money. I knew that "If I wanted to make $1000, I needed to sell $33,333 worth of product, which would take 250 phone calls, 10 meetings and 2 closes." The self-employed world is a world where actions = dollars and if I wanted to make more money, I needed to perform more actions.
Right now, I am bridging the gap from a "Self Employed" mentality into a "Business Owner" mentality and instead of wondering "how many hours did I work today?" or "what actions did I perform today?", I begin to ask myself:
What did I create today?
When you bridge the gap from Self Employed to Business Owner, instead of trading time or actions for dollars, you build systems, teams, informational products, relationships, strategic partners, web sites, web systems, brands, ad campaigns, databases, and Joint Ventures. The amount of money you make directly correlates to how well you build your "machine" and the assets that you CREATE on a daily basis.
My thinking has changed by 180 degrees. 8 Months ago, I woke up in the morning, thinking of my goals and would make lists of ACTIONS required to bring me results. This type of thinking was purely tactical. I was focused on TACTICS and not STRATEGY.
Now when I wake up in the morning, I have a list of projects that I need to move forward, every single endeavour is creative. Everything I create compounds and everything I create is meant to last for life. Sometimes I will create something quickly just to get it running and will come back to upgrade it, but I am now tracking my daily creations and the STRATEGIC effects of setting up systems, pipelines, JV's, strategic partnerships, referral systems, syndications and many more long lasting and compounding creations.
Unfortunately, I see self employed people every day who were brave enough to make the leap from Employee to Self Employed, but didn't have the foresight or mentoring to think STRATEGICALLY and become creation focused rather than time or action focused. So many entrepreneurs, real estate investors and sales people become trapped in the world of TACTICS and never become STRATEGIC in their daily actions.
Focus on creations and systems, these creations compound over time and create massive leverage and wealth when accumulated over time. Break the link between time and money, then break the link between actions and money. Create every day and let your creations compound - This is how you bridge the gap.
Thanks for reading,
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