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How does money flow into you and your company?
Transcription
Where are you financially?
Hi I’m Brian Pombo, welcome back to Brian J. Pombo Live.
This is a show and I apologize about my hair, I was wearing a baseball cap all day, and never quite got everything to lay back down. But it’ll be my hair will be better tomorrow, okay.
So that what we like to talk about on this show is business concepts and ways to be able to use your business, to change your life and make it better and make it make other people’s lives better because of it.
And so if you’re thinking about that, the best thing to do is to always bring things back to principles.
Yesterday, I talked about the difference between principles, strategies and tactics, you can go back and watch that if you want to be caught up the day before that talking about kind of the primary fundamental principle necessary in order to move your life forward.
Especially if you’re thinking in the business mindset. It’s really the foundational principle of all of Western civilization, and so what brings that back up to today?
Well, I’m going to, I’m taking you on a little bit of a journey. When it comes to principles, I wanted to start off with some of these definitions. Because we got common vocabulary we can use, that we can get a whole lot further because these are, these are definitions and words that don’t necessarily use this way you weren’t taught them in school and the same function.
I’m taking great Liberty with some of these ideas. In fact, I’ve had people come back to me saying, well, that’s not what common sense means and everything, it I’m using different definitions for college common words and phrases that you may have heard before, and using them in a very specific way.
So hopefully, we can talk about the definition, the meaning behind these things and not get caught up with the words that I’m using, because then everybody’s going to define these things differently over time.
And nothing is more true than what I’m going to talk with you about today, and I’ve discussed this before, and you’re probably already familiar with it, but it’s a good thing to bring up again because I I’m always amazed how many people I run into that are not familiar with Robert Kiyosaki cashflow quadrant.
Now, why would I be bringing up this idea tonight, when it comes to principals, two main reasons.
One, we’re going to talk about definitions and some words that we’re going to be using over and over again, and we’re going to be using them in a different way than you’re probably used to.
Two, this is one of those things that if you’re going to define where you’re going, you need to know where you are.
And when it comes to business, we’re talking about financial nature, initially, because it has to do with you as a person. Now, I work with two different types of people in my business.
One is a person that’s a business owner that’s been a business owner that’s successful, that’s moving forward, or an executive that is running the business.
They’re moving forward, and they already have a successful business, but they’re looking to take it to the next level.
The other type of person I talked to a lot is a person that’s either hasn’t owned a business or is looking to go into a new field, and is looking for the end result, and doesn’t really know where to go next.
They know what they want out of life, but they don’t know how to get there. And so these are the two different types of people I deal with.
Either one can find themselves in a place where they need to come back to some of these principles. And first, you have to define where you are before you can define where you’re going. We’ll talk tomorrow about where you’re going, but let’s talk about where you are.
Okay, this is an idea that Robert Kiyosaki introduced called the cashflow quadrant and he says that if you’re making money on a regular basis, you’re making it out of one to four different places.
Okay, you’re either making money as an employee. That’s the first one employee employees defined as a person that works for money based on the amount of time that they put in now they could be salaried, but either way, they’re trading time for money.
They stopped putting in the time, they stopped making the money. It’s direct money for time, associated with the amount of money that’s been made.
Most people are either there or they’re in this self-employed and how he defined self-employed is you’re still tied to time for money.
So as soon as you could be self-employed and be making a whole lot of money, but as long as you’re not putting in the time, that money doesn’t come in, so this could be $1 that owns their own practice, this could be a lawyer that owns their own firm.
And if they don’t have anyone else there, they’re the only ones that are making it happen. It’s not going to happen if they’re not there.
So 90-95% of everybody is out there. In a free-market economy, if you’re making money on a regular basis, and you’re not getting a paycheck from the government, this is directly related out there on the free market.
95% of people are making their money either as an employee or self-employed or hybrid of the two. The next level is a business owner and this is one of the things I say about definitions.
The way Kiyosaki defines a business owner is a person that owns a business that they are not self-employed with. So that business can’t exist outside of their time.
Now, it doesn’t mean that they don’t add to the business, it doesn’t mean that they can’t make the big business bigger, it doesn’t mean that they don’t spend time in the business, it means that the amount of money they’re making is not tied to the amount of time that they’re putting in.
So they can go off on vacation, they can come back and they’re making the same amount of money, it’s not tied to a time-related deal.
That this is a person that truly owns a business, that’s an asset that’s producing on a regular basis outside of what they put into it.
Then you have the investor.
An investor is a person who takes money, puts it into a system, like a business, like one of these own businesses, they put money into a system that already exists, and makes money back purely based on that, once again, it’s not a time-related thing.
So there’s a major difference between ends. So you have about 5% 5-10 percent of everybody that’s over on this side, most of the people are here.
Very few of the people are over here, most of the money is made on this end, most of the wealth that’s created is graded on this and where it is not on this end, only a 5% 5-10 percent of everything is made over here, the real production happens on this end.
So what’s the difference between somebody who’s at one end or the other education, intention, whether they’re a person follows through and actually builds a business or finds investments that they could put money into and has the money has the capital available to do it.
It’s a whole lot of its education because we’re not taught in school that you have a choice.
But you do have a choice that sees the first that says, see my first video on the principal, you have a choice on where you can be.
But it takes a different way of thinking. And it takes you knowing that the choices are there. If you don’t know the choices are there, then you don’t have a choice.
Once you know the choices are there, now you do hopefully you can see that there it’s available. Now you have a choice.
Now you have the ability to do it as long as you know, who to talk to how to go about doing and so forth.
Part of what I do, if you’re a business owner that’s already successful, if you’re an executive that’s already moving forward, and looking to take things to the next level.
This is one of the best options you have is my book, 9 Ways to Amazon-Proof Your Business. You can get a free copy at AmazonProofBook.com.
This you got to decide where you’re at and where you want to be. And if you want to be somewhere different. We’re going to talk about that tomorrow.
So come on back tomorrow and we’ll go over that.
In the meantime, get out there and just let the magic happen.