Just as you shouldn’t build a luxury home on a shaky foundation, I STRONGLY ADVISE YOU NOT TO BUILD YOUR FINANCIAL FUTURE on a shaky foundation. From my experience, Robert Kiyosaki’s belief concept of transforming your life from rags to rich is the best. For those of you who haven’t read Robert Kiyosaki’s “Cash Flow Quadrant” yet, I would recommend reading this great book today, but to save you reading here’s the synopsis (which doesn’t do this book justice). His observational journey to wealth theory is that everyone starts out as an EMPLOYEE. Then, through discontent and ambition, they finally strive to become SELF-EMPLOYED. Then, through frustration and maturity, they become master delegators who become BUSINESS OWNERS. Then after we earn enough excess cash they start to become INVESTORS.
He calls this transition from EMPLOYEE to SELF-EMPLOYED to BUSINESS OWNER to INVESTOR the “Cash Flow Quadrant.” To start making this transition you must make 7 movements. And the key to these movements is this, NOTHING WILL MOVE UNTIL YOU DO.
Move 1: Form an LLC – My friend, you are going to have to form a Limited Liability Company. You cannot use your business to invest if you do not have a business. Form this business today. If you don’t know what you will do, just sign up as a consulting company and find out later.
Move 2 – Start a Successful Business or Buy a Successful Business – You need to start building or buying a business now. Next year it is already too late. How do you start? I highly recommend that you buy into an existing successful franchised business if you have no idea what you want to do. Because? Because when you buy a franchise, you are buying a highly regulated entity that has a proven track record of success using scalable systems that produce quality products and services that will make you money. You could spend 10 years starting businesses that fail. The US Small Business Administration consistently reports that 9 out of 10 small businesses fail. That doesn’t have to be you, but it will be you if you can’t or aren’t willing to build replicable systems. Having built award-winning systems over the years, I personally would rather buy an existing entity. It will save you the headache and heartache. Now if you are passionate about delivering a product or service and if you are crazy enough to believe that you will be able to build systems that work, then I HAVE FAITH IN YOU AND ENCOURAGE YOU TO TAKE ACTION. What are some good franchises to buy?
1) Subway: they are everywhere, because people like them. I literally eat them almost every day. Does it cost money to buy this magnet for the customer? Yes. Does it make money? Yes. Is it right for you? I don’t know. Watch it and make a decision.
2) McDonalds – They are everywhere too. When you throw up the Golden Arches, people will flock to your business. Because? Because they are consistent. People from Mexico to China to Delaware go to McDonalds. Does it cost a lot of money to buy a franchise? Yes it’s for you? I don’t know. Watch it and make a decision.
3) Oxifresh.com – These guys are a powerhouse in carpet cleaning. Its turnkey system allows investors to buy franchises with very little investment. Can you make a lot of money cleaning carpets? Yes it’s for you? I don’t know. Watch it today and make up your mind.
4) And the list goes on…
Move 3: Start gaining practical knowledge relentlessly (and start berating general academic knowledge):
I can see value in having an MBA, but I can see more value in learning to run a business. Read Napoleon Hill’s “Think and Grow Rich” at http://www.naphill.org, read John Maxell’s “21 Laws of Leadership,” read Michael Gerber’s “E-Myth,” and then read “Rich Dad, Rich Dad.” poor”. ” by Robert Kiyosaki. Do you have to read all this? Yes. Study the rich and do what they do. But you will have to immerse yourself in practical, continuing education. Make no excuses. Unplug the TV. Turn off the phone, put down your bowling league and start learning.
Movement 4: Become personally free of debt
Endless studies have continued to show time and time again that taxes and interest are the biggest expense for most Americans. Just stop and think about that for a second. After paying off your 30-year mortgage, you will have paid off your house twice. After paying off your car, you will have paid for your car almost twice. Imagine going to the parade with his significant other when the real estate agent grabs him and whispers quietly in his ear, “Now all the house prices you hear about are actually half of what they’ll cost you.” “. it’s sanity.
If you ever want to build deep levels of wealth, you must decide today that you will no longer borrow money for things that don’t make you money. I know it seems hard to believe that most American millionaires are first generation self-made millionaires, but this is the truth (for more information on this phenomenon please visit – http://www.thomasjstanley.com)
My friends, most of today’s millionaires grew up in the poor or middle class part of their local community, lived frugally, built businesses, bought real estate, and kept busy working on their plan. Then someone discovered that they weren’t so poor anymore. You can do this for
Move 5: You must save 20% of what you earn (minimum)
I’m sure you’ve heard the phrase “it takes money to make money.” And while I think it may generate a considerable amount of sweat for you and your business, the reality is that you will need some capital to take advantage of the opportunities. When I was running DJ Connection, I always loved hearing about different DJs who were “going out of business”, because this meant I could buy their equipment for pennies on the dollar. Since I had cash, I could always take advantage of these opportunities.
Move 6: Resolve that you will not deviate from your master plan
As you accumulate some money, you will begin to notice that the temptation to buy things you don’t need will always be there. The more money you have, the more salespeople will call you trying to convince you that you simply can’t afford to miss out on this amazing opportunity or opportunity. MLMs, country club membership sellers, and always fun time-share people will come calling. The Kirby vacuum guy will be knocking on your door, the designer drapes and plantation shutter people will be knocking on your door, the reverse osmosis water filtration people will be knocking on your door, and the personal life coaches will be coming to your door. call him. Don’t say yes to their offers and don’t deviate from your plan. Stay the course, it will be worth it.
Move 7: Decide that you will never be an employee again (although you may work for others)
The differences between what an employee and a self-employed pay in taxes are dramatic. Tax laws are different and everyone’s mentality is very different. Employees want to have as much as possible automatically deducted from their paychecks throughout the year “to be on the safe side.” The self-employed person wants not to pay a penny of taxes until the end of the year so that his money is working for him all year. The employee sees a tax refund as a bonus, while the self-employed sees his annual tax bill as a necessary evil and a frustrating fee he must pay for the privilege of doing business in this great country.
Tax strategies that may be legal for freelancers may be illegal for employees. These differences are monumental when it comes to investing. Although many employees hold on to their jobs because of their “job security” and because of their “paycheck,” they actually have much less job security than the self-disciplined person who is self-employed.
As an employee, your money will never work for you. You are working to earn money for someone else. As a self-employed person, your money will generate money for you. After all, you must be self-disciplined to get ahead and you must be autonomous. Decide right now. Make the mental choice. Will you be deeply rich? Will you be profoundly poor? Or will you be middle class?