Welcome to Show 58 – Cashflows! This show was inspired by yet another book :). Business of the 21St Century by Robert Kiyosaki. Tonight I discussed Cashflow Quadrants (ways our income is generated) and the mindset we most likely have depending on which quadrant we live in. Link below to listen!
Each quadrant defines the different ways income is generated. How do we make the money we make?
S: Self Employed
B: Business Owner
Most of us would assume our financial standing is based on or defined by how much we earn or how much we have coming, this may be true but where the money is coming from is just as important – the quality of the cashflow. More often than not, each cashflow quad also determines our lifetsyle.
From the cradle to the grave we are taught to learn, live and love in the E Quadrant; operating under the philosophy that we should go to school, get good grades, get a good job with benefits, work there for 40+ years , retire, die. I know deep down inside that you know there is more to life than this. I know we’re talking about income but do you really think you were put on this earth to go to school and then work at a job that most likely has nothing to do with what you went to school for, you work there, helping contribute to someone else’s wants, desires and dreams for half your life only to get a small retirement check, if you get anything… I know ya’ll smarter than that!
The motivation for transitioning from E to the S Quad comes from the urge for more freedom, self determination. However, according to Kiyosaki, the S Quad is a trap due to the fact that you didn’t fire your boss, you just changed bosses. You are your own boss in the S Quad but if you stop working, the money stops coming. In other words you took on more responsibilities than you let go of by becoming self employed. At least you’re your own boss though, that’s a step in the right direction.
The difference between the S and B Quads, In the S Quad- you work for yourself. In the B Quad- the business works for you. In the B Quad you can make yourself recession proof depending on the businesses you own.
I Quad is like playing monopoly – turning businesses and properties into assets (generates you income)
**Many think houses, cars, etc are assets, they are actually liabilities.
4 Quadrants are also attached to 4 mindsets. According to Kiyosaki, the quadrant that you live in is not based entirely on external circumstances. Quadrant based on who you are at your core strengths, weaknesses and central interests. Changing the way we think is what allows us to move through the quadrants – not just simply changing jobs or going from E to S. Key mindset phrases of each quad: Security (E), Independence (S), Wealth-building (B), Financial freedom (I)..
E: Security- secure a job with benefits
S: Independence- do it yourself so you can do things your way
B: Wealth building- build a team of other people who are good at what they do
I: Financial freedom- financial freedom valued. The money is working instead of you
Each individual of each quadrant invests in different ways. Different people, different mindsets, different quadrants, different values. We have to change the way we think so that we can navigate from employee to business owner. Let’s become business owners ya’ll!
On and On – Erykah Badu
Welcome to Jamrock – Damien Marley
Money in the Bank – Swizz Beatz
Stir Fry – Migos
For the Love of Money – O’ Jays
Blem – Drake
Real – Kendrick Lamar
Ballin – Bibi Bourelley
Money Showers Instrumental – Fat Joe x Remy Ma x Ty Dolla
Hand in Hand – Dj Quik
THANK YOU FOR LISTENING TO YOUR MUSIC IN 432 HZ – THE NATURAL VIBRATION OF THE EARTH