Managing For What You Want
In Cash Flow Quadrant, Robert Kiyosaki explains that there are four ways to make money. You can be an employee (E), working for someone else for a salary. Alternatively, you can be self-employed (S), a business owner (B) or an investor (I). If you compare the E and S quadrants to the B and I quadrants, you’ll find some important differences.
E’s and S’s have jobs. E’s work for someone else. S’s work for themselves. Either way, they work for their money. When they don’t show up to work in the business, work doesn’t get done. In contrast, B’s and I’s don’t need to show up to work every day. In fact, Kiyosaki says that a good test to determine if you are an S or a B is to ask, “Can I leave?” If you are a B you can leave for extended periods without impacting the operation or your income. If you are an S, you can’t.
There’s another good test that will tell you if someone is an E or S versus a B or I. Ask them what they want. If someone is an E or an S they are likely to tell you what they don’t want. “I don’t want debt.” “I don’t want conflict.” “I don’t want weeds.” E’s and S’s expend a lot of energy trying to keep bad things from happening.
Ask a B or an I what they want and they will tell you. “I’m trying to create…” “I want to provide…” “Within 5 years I want to have…” Most of their energy is focused on creating a positive outcome. Of course, working through problems and challenges is part of running every business, but there is a long-term positive vision of the future that drives business owners.
Focusing on the negative can be motivating. It’s fight or flight. But whether fleeing or facing the thing that’s attacking us, focusing on the negative is expensive, exhausting and demoralizing.
I’ve found that instead of running away from the bad, running towards a dream tends to enrich us financially and spiritually. Of course, we need to know that the dream is economically and financially viable. (The processes we teach in the Ranching For Profit School can help you vet your vision to determine if it is a dream or a nightmare.)
Managing for what you want is a more powerful way to manage. It is a more powerful way to live.