The quadrant of money flow

E = You have a job

A = You generate your own employment
D = You have a system and people who work for you
I = Money works for you.
It required?
It requires a dream, a lot of determination, a great willingness to learn quickly,
and the ability to correctly use the capital that God has given us, as well as
knowing from which sector of the money flow quadrant to generate your
income.

Advantages of D and I
The advantages are tax, for most people who work on the left side of the
quadrant, there are few tax advantages. However, tax advantages abound on
the right side of the quadrant.

WHAT'S IMPORTANT
For my rich dad, this was the important thing:
1) Have plenty of time to raise your children.
2) Have money to donate to charities and projects that he supported.
3) Offer jobs and provide financial stability to the community.
4) Have time and money to take care of your health.
5) Have the opportunity to travel with your family around the world.

CHANGE OF QUADrant
Changing quadrants often involves a change in the essence of who you are,
how you think and how you look at the world. Change is easier for some
people than others, simply because some welcome change and others fight
against it.

WORD S OF THE E QUADRANT

A person from the E quadrant, employed, could say: “I am looking for a stable
and secure job, with a good salary and excellent benefits.”
WORDS FROM THE A QUADRANT
Someone who comes from the A quadrant, Self-employed, could say: “My
fees are $35 an hour” Or my normal commission is 6% of the total price” Or “I
can't seem to find people who want to work and get things done.” good” OR
“I've been working on this project for more than 20 hours.”

WORDS FROM THE D QUADRANT

Someone operating from the B quadrant, a business owner, might say, “I'm
looking for a new president to lead my company.”

WORDS FROM QUADRANT I

An individual operating from the I quadrant, or investor, could say: “Is my
money flow based on an internal rate of return or a net rate of return?”

LEADERSHIP
It is the ability to bring out the best in each person. To have money and
success in business you need training in technical skills such as reading
financial statements, marketing, sales, accounting, administration, production
and negotiation, as well as learning to work with and lead people. This is the
most difficult.

CHARACTERISTICS OF THE PEOPLE OF THE QUADRANTS

E = The E says things like: “I'm not interested in money.” For them the idea of
security is more important than money.
A = (Self-employed) For this group, money is not the most important thing in
relation to their work. Independence, the freedom to do things your way, and
to be respected as experts in your field, are much more important than money
itself. There are many Type A people who hesitate to hire and train other
people because once trained, they often end up becoming their competitors.
D = (Business Owner) The true motto of a true D, Why do it yourself when
you can hire someone to do it for you, and who can do it better. A D owns a
system and then hires competent people to operate it. Being a successful D
requires: Owning or controlling systems and the ability to lead people.
I = (Investor) They make money from money. They don't have to work
because their money is working for them. This quadrant is the favorite place
of the rich. Ultimately, if someone wants to be rich one day, they will need to
enter quadrant I, no matter which quadrant they are making their money in. It
is in quadrant I where money becomes fortune.

DEFINITION OF WEALTH
It is the number of days that one can live without physically working or without
someone else in the family working physically, being able to maintain the
standard of living.
What matters is not how much money you earn, but how much you keep and
how long that money worked for you.

INVESTMENT STRATEGY
Warren Buffet is saying that a concentrated portfolio or focus on a few
investments, rather than a diversified one, is a better strategy. To their way of
thinking, concentration rather than diversification requires one to be smarter,
with more agile ideas and actions. The true investor also welcomes volatility.

D EXAM:
Can you leave your business for a year or more to come back and find it more
profitable and running better than when you left it? Yeah ….. NOT….. If the
answer is yes, you really are an entrepreneur.

FINANCIAL INTELLIGENCE
It's not so much how much money you get, but how much money you keep,
how hard that money works for you, and for how many generations you keep
it.

QUADRANT OF TAX ADVANTAGES

PROFIT QUADRANT
In the earnings quadrant the employee only gets his money in the profit
quadrant. Income, while the rich get their money in the asset through their
investments.

The employee always earns his money (earned income) in the E quadrant,
making the process a repetitive cycle. The rich man makes his money in
quadrant I with his investments.

RECOMMENDED PROCESS:
Going from A to D and then to I, it is recommended to read the book: The
Millionaire Next Door by Thomas Stanley.

QUADRANT OF FINANCIAL FREEDOM

This is true financial freedom because in the B quadrant people are working
for you, and in the I quadrant, your money is working for you. You are free to
work or not. Your knowledge in these two quadrants will completely free you
from physical work.
THREE KINDS OF BUSINESS SYSTEMS
 Traditional corporations where one develops one's own system.
 Franchises where one buys an existing system.
 Network Marketing: Where one buys and becomes part of an existing
system.

The difficult part about building a company from scratch is that you have two
big variables: The system and the people who build the system. The chances
of failure increase if there are cracks in people and in the system. Sometimes
it is difficult to know where the problem is, whether the person or the system
is failing.

If you want to read a great book about starting your own business system, get
the book E-mith The E Myth by Michael Gerber. This book is unique for those
who want to learn how to develop their own systems.

Investors reject many projects because the people creating them have little or
no experience in creating and managing business systems. Just because you
can sing doesn't mean you understand the marketing system, or the finance
and accounting system, the sales system, the hiring and firing system, the
legal system, and the many other systems that are necessary to keep a
company afloat. company and lead it to success.

THE LEVELS OF INVESTORS

0- Those who have nothing to invest
1- Those who borrow
2- The savers
3- The smart investors
4- Long-term investors: In fact, they invest in their training before acquiring
any investment, they obtain an advantage by investing periodically and,
whenever possible, they invest with tax advantages. Most importantly,
they seek advice from competent financial consultants.
5- Sophisticated investors: They are focused and generally low diversified,
and have had enough losses, which provides them with the wisdom that
only comes from making mistakes and learning from them.
6- Capitalist investors: They can create a business and an investment
opportunity simultaneously. Level 6 investors create the investments that
others buy.

PHRASE: Money should not be seen with your eyes but with your mind. Most
people invest 95% with their eyes and 5% with their mind. They often buy
emotionally and not rationally and that is why 9 out of 10 investors do not
make money if they act this way.

TRAIN YOUR MIND

What is the first step in training your mind to see money? The answer is easy.
The answer is financial literacy. This begins with the ability to understand the
words and number systems of capitalism. If you do not understand the words
or numbers, it would be the same as speaking a foreign language and in
many cases each quadrant represents a foreign language.

Investing is not risky. What is risky is not being trained.

DERIVATIVE
A simple definition of “derivative” is something that comes from something
else, an example of a derivative is orange juice. Orange juice is derived from
an orange. Taxes or mortgages are derivatives, because they derive from the
land. Your banker wouldn't call a mortgage derivative, he would say it's
secured by land different words same meaning.

YOUR BALANCE SHEET

Cash flow of a poor person, or of a young person still living at home with their
parents:
Cash flow pattern of a middle class person:

This is the cash flow pattern of a rich person:

And that's how your savings and checkbook get into the bank's balance
sheet.

Your financial summary

Either way the bank gets its savings
Bank financial summary

NOTE : The more people you are in debt to, the poorer you are. It said rich
dad. And the more people owe you, the richer you are. That's the game.

LIST OF OPINIONS NOT FACTS

• You should marry him. He will be a good husband

• Find a secure job and stay there for life
• Doctors make a lot of money
• They have a big house. They must be rich.
• They have big muscles. It must be healthy
• This nice car has only been driven by a little old lady.
• There is not enough money for all of us to be rich
• The earth is flat
• Humans will never fly
• He is smarter than his sister
• Bonds are safer than stocks
• People who make mistakes are stupid
• He will never sell at such a low price.
• She will never go out with me
• Investing is risky
• I will never be rich
• I didn't go to college, that's why I'll never get ahead.
• You should diversify your investments
• You shouldn't diversify your investments

Conclusion: The point is that most people's lives are determined by their
opinions, rather than by facts. For a person's life to change, they first need to
change their opinions and then start seeing the facts.

FINANCIAL PICTURE OF THE MIDDLE CLASS

Income : Employment

Expenses: Payroll taxes, property taxes, mortgage payment, credit card

payment, sales tax, car payment, food, clothing, entertainment, recreation,
unnecessary expenses, etc.

And on the balance sheet the liabilities are: Mortgage, car loan debt, credit
card debt, consumer debt, college loan debt.

THE MODELS
An E works for a system
An A is the system itself
A D creates, owns and controls a system
An I invests in the system

HOW HE BECAME RICH

Kiyosaki, when the real estate market was really bad, bought as many small
houses as he could with his wife with the little money he had. When the
market improved, they gave the four houses as part payment and bought a
large hotel. They did not have to work as the cash flow came from their hotel,
apartment houses and mini-deposits, it paid for their lifestyle.

WAY OF BEING
You must strengthen your thinking (BE) so that you can take the actions (DO)
that will allow you to be financially free (HAVE).

BE – DO – HAVE

It is recommended to read the book: Emotional Intelligence by Daniel

Coleman.

Words are the most powerful tools available to human beings. What a person
says and thinks becomes reality.
LOSERS DO THE SAME THING
1) People who maintain marriages where there is no more love
2) People who stay in jobs with no future
3) People who hold on to old clothes and things they will never use
4) People who stay in cities where they have no future
5) People who maintain friendships with people who pull them back.
6) Security instead of freedom
7) Avoiding risk rather than learning to manage risk
8) Play it safe and don't play smart
9) I can't pay it, instead of How can I pay it?
10) Is it too expensive before long? Is it worth it in the long run?
11) Diversify instead of centralize
12) What will my friends think? More than What do I think?

Recommendation : One of the best books on the subject of money and risk
management is: Trading for a living, by Dr. Alexander Elder. Another: The
Materialist Philosophers by Robert Heilbroner, this book is mandatory for
those who want to be in the D, I quadrant.
Other books: The Crest of the Wave by Robert Pretcher, and The Great
Expansion Coming by Harry Dent. Unlimited Wealth by Paul Zane Pilzer. The
Wealth of Nations by Adam Smith.

MAGIC WORDS : To sell a property. "House for sale. Desperate owner. No

bank loan is necessary. Small advance. Comfortable monthly payments”

TIP: Build a business and buy real estate.

THE 7 STEPS TO YOUR FINANCIAL PATH

1) It's time to mind your own business
2) Control the flow of your cash
3) Know the difference between risky and risky
4) Decide what kind of investor you want to be
5) Find mentors
6) Make disappointment your strength

DEBT : Good debt is the debt that someone else pays for you, and bad debt
is the debt that you pay with your own sweat and blood. That's why he loved
rental properties. He encouraged me to buy rental properties because the
bank gives you the loan, but your tenant pays for it.

PASSIVE INCOME : It is the income from capital gains, dividends, residual

income from businesses, rental income from real estate properties and
royalties.

The reason there are so few wealthy men who have reached their present
position through their own efforts is that very few individuals can tolerate
disappointment. Instead of learning to deal with it, they spend their lives
avoiding it.
THE KEY
The key to getting rich is the ability to convert earned income into passive or
portfolio income as quickly as possible. He said taxes on earned income are
the highest. The least taxed income is passive income. That is another reason
why one prefers to have money working hard for oneself. The government
taxes more money on the money you work hard for than on the money you
put to work hard for yourself. That is why the key to financial freedom and
great wealth lies in the person's ability or aptitude to transform earned income
into passive and/or portfolio income.