Wednesday, 31 January 2018

If you want to be rich, you should jump to the B and I

Left side of the Cashflow Quadrant: E’s and S’s
Employee –Desires job security, a steady paycheck, no financial risk, and the benefits provided by their jobs (retirement, insurance, time off, sick days, etc.). Sense of entitlement is high with the employee and they trade hours for money. They also pays the highest tax rate.
Sole Proprietor – Is their own boss and not be dependent upon other people for their financial security. These include doctors, lawyers, and anyone who is self-employed. They desire independence and tend to be controlling, not trusting others to do the work as good as they can. Their income is tied directly to how much they work and if they do not work, they don’t get paid. They basically “own” a job.
Right side of the Cashflow Quadrant: B’s and I’s
Business Owner – Starts businesses and hires employees to delegate as much as possible. They work “on” the business and find competent people to work “in” the business. They desire to create a business that can run on its own without them. They focus on creating systems for the business to make money without them.
Investor –Looks for ways to make their money, as well as the money of others work for them. They desire to work less so they can spend their time however they want while not being tied down to a job. Escapes high taxes by deferring their taxes to a future date or utilizes the Incometax rules to pay the lowest tax rate of all the other groups. They receive 70% of their income from investments and less than 30% from a job.
If you want to be rich, you should jump to the B and I side of the quadrant ASAP
The rich focus the majority of their efforts on the Business and Investor side of the Cashflow Quadrant because that is where the real wealth and money is. The good news is, if you are starting in the Employee category you can move to any of the other quadrants at any given time. It IS entirely possible to move from E to I very quickly.

No comments:

Post a Comment

Note: only a member of this blog may post a comment.