Are you mainly an employee, or self-employed, or a business owner or an investor? Only two of these categories will lead you to financial freedom and a life worth living. Do you know which two?
In his best-selling book, Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom, Robert Kiyosaki says that the business world is made up of the four types of people above.
On the left side of the quadrant
E – Employees
Employees have a job. Most people fall into this category. They say things like, “I'm looking for a safe, secure job with benefits.” They are employees because their core value is security. There is nothing wrong with this, but this is often a false sense of security. Businesses close, downscale and lay people off all the time.
If you are an employee, to earn more money, you have to work more hours or be with a company that pays you more.
S – Self-employed
Self-employed people or small business owners own a job. This is only slightly better than being an employee because of more personal freedom and slightly more financial freedom. The self-employed still basically trade their time for money. They say things like, “If you want to get it done right, do it yourself.” Although self self-employed people own their small business, this means that the business rather owns them.
To earn more money if you are self-employed, you have to work more hours or increase your hourly rates.
On the right side of the quadrant
B – Business owners
Business owners own a business system. They do not trade time for money because they have the right business model and other people working for them. Business owners say things like, “I am looking for a good model, a good network and the best people to help run my business.” Unlike self-employed people, they don't want to run the business by themselves.
Because business owners sell a product or service through their business and with the help of other people, they don't have to work harder to make more money. They utilise the tax benefits of their businesses.
I – Investors
Investors make their money work for them. They receive passive income. They have investments like real estate or shares that generate a cash flow, and they maximise the tax benefits of their investments. Investors say things like, “How can I get my money to generate the best return for me?”
Investors have true financial freedom because their investments increase in value over time.
Where are you on the Cash Flow Quadrant?
If you work mainly for (false) security and trade your time for money, you are still on the left side of the Quadrant. If you really want financial freedom, however, you need to be on the right side of the Quadrant. You need to learn how to build a business, invest your money and earn a passive income.
If you are not sure on which side of the Quadrant you currently fall, look at where the majority of your income comes from. Most estate agents still regard themselves as employees. Your core values, your outlook on life, your life stage and even your interests will determine on which side of the Quadrant you find yourself. Only a small percentage of agents become business owners and investors.
It doesn't have to be like that.
Become a business owner
In his runaway best-seller, The Millionaire Real Estate Agent, Gary Keller says, “If you don't know where you're going, I guess any model will do. But if you're trying to become your very best and achieve the most you possibly can, you'll need big models to match your big goals.”
He continues, “In the sales business, everyone, whether they realise it or not, is following a model. The difference between everyone else and top achievers is that top achievers purposefully choose big models in they key areas that matter.”
After studying and interviewing thousands of the most successful agents in the world, Gary Keller distilled their secrets into a model anyone can replicate. According to Keller, four models stand out as the key to unparalleled success in your real estate business. These models are your Economic Model, your Lead Generation Model, your Budget Model and your Organisational Model. We have written about the Organisational Model and your ability to grow in Keller Williams before.
You can pick up your copy of the book to start applying these models as the basis to your property business. Alternatively, contact us for a confidential, friendly business consultation to move your real estate business from the left side of the Cash Flow Quadrant to the right.
Become an Investor
In another best-selling book, The Millionaire Real Estate Investor, Gary Keller says, “A high income doesn't necessarily translate to financial wealth… You can work for money or your money can work for you. On one path you only get paid for what you do; on the other you get paid no matter what you do.”
In this book, Keller guides you on a path to turn your real estate investments into actual net worth that shows up on your balance sheet. If you're thinking, no way, I am not in that league, fear not. Like success in your sales career, investing is no more complicated than you make it to be.
As an estate agent, you get to know about the best real estate investment opportunities before anyone else. Keller wants you to regard yourself as an investor first and as an estate agent second. By following a proven investment model, educating yourself and staying close to what you already know, which is real estate, you will be able to become a real estate investor.
To discover how easy it is to take your first steps as a real estate investor, grab your copy of the book or schedule a consultation with us.
Immediately start earning passive income
At Keller Williams our associates have an unparalleled and unlimited opportunity to participate in the growth and productivity of their Market Centres and to receive a financial reward for their efforts. As a Keller Williams associate, not only will you receive your commission, but you will also be able to earn a passive income.
KW associates who are instrumental in attracting productive agents to Keller Williams are rewarded with passive, long-term income without investing any capital. Although our agents do not assume financial, legal or management responsibilities, they are rewarded for growth with a portion of the revenue, as if they were owners.
Some call it The Gift, Gary Keller describes it as an equal opportunity, unequal reward, passive income opportunity.
Are you going to move to the right side?
To discover how rather than having a job, you too can own a business worth owning, immediately start earning a passive income and become an investor, contact us for a confidential business interview.
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