What’s Your Mindset?

2008 December 10

After spending some time recently with some close friends and family members that I hadn’t seen in awhile, the question came up of “How is so and so doing?” and “How come they are not doing business with you?” 

Now to those of you whom don’t know me that well yet, I’ve had an Entrepreneurial spirit since as far back as I can remember.  Which means I’ve had multiple businesses and am always working on one.

It also means that I understand the Cashflow Quadrants and I invest my time in the S, B and I Quadrants currently.

For those of you not familiar with the cashflow quadrants as taught by Robert Kiyosaki, I’ll give you a quick overview. 

You see there are 4 ways that money can flow to you and these are represented by the quadrants.

1 – You have the E quadrant which stands for Employee.  As an employee you have a job and trade your time for dollars.  Taxes are taken from your paycheck and you only earn money while you are on the clock.  There is usually no way of creating leverage and you are limited on how much you can earn.

2 – The S quadrant which stands for Specialist, Self-Employed or Small Business.  This is where most E’s go when they want to do it themselves.  This is one of the toughest places to be, because you have to cover all the bases of running a successful business.  It’s usually very tough to create much leverage and you are usually still trading time for dollars and you are also the last one to get paid after all operating expenses. It can also stand for Satisfying.

3 – The B quadrant which stands for Big Business.  This is where you have created leverage with other people’s time, energy, effort and money.  You now have other people out there being productive helping to make you money.  You get all types of tax breaks for your business and have others running it for you.

4 – The I quadrant which stands for Investor.  This is where you put your money to work for you.  You leverage your money thru investments in things like real estate, stocks and other types of assets.  This is where your money makes you more money so you don’t have to.

So back to my story…..

I told my close friends and family members that we were not doing any business together because we had a difference in mindset when it came to creating money.

They asked what I meant and I explained that some people think and live in the E quadrant. They have an employee mindset.  That’s really what the quadrants represent to me, a mindset of how you think and what you do.

I personally do not have an E quadrant mindset.  In fact there is nothing that bothers me more than operating in that space. 

Why would I waste my time building someone else’s S or B when I can spend that time building mine? 

I only want to invest my time into things that are going to create leverage, residual cashflow and win/win for all involved.  I also enjoy the satisfaction of creating something from nothing and the processes that take place doing that.

The people they inquired about operated in the E quadrant and personally I opereate in everything except the E.  So therefore we have a difference in thinking, a different way of looking at and analyzing things and a difference in mindset.  And that’s why we were not doing any business together.

The richest people in the world operate in the B and I quadrants.  That’s where I want to B!

So what’s your mindset?

Shawn King


P.S. If you are not familiar with the quadrants and want to learn more, here is a link to Robert Kiyosaki’s book  Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom  I consider this essential reading for everyone who deals with money.

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2008 December 10

[...] 2 – The S quadrant which stands for Specialist, Self-Employed or Small Business . This is where most E’s go when they want to do it themselves. This is one of the toughest places to be, because you have to cover all the bases of running …[Continue Reading] [...]


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