ESBI = the acronym.
Employee, (you earn a wage)
Self-employed (you own a job)
Business, (you pay others to work for you)
Investors (your money works for you)
OPT = other people’s time
OPM = other people’s money
The goal is to go from the employee or self-employed into big business and investing. That’s where big money is made and where the tax incentives are.
When it comes to investing, diversification, mutual funds, and blue-chip stocks are basically another way of saying safety and security.
There are three types of business systems:
- Traditional C corporations – where you develop your own system
- Franchises – where you own an existing system
- Network marketing – where you buy into become part of an existing system
When you think of investing don’t necessarily think of stocks and bonds. Investing can take many shapes and forms. Instead what you should be focusing on is the principles of investments.
Without risk, there is no investment. The safe jobs, the safe investments, the safe businesses; there are truly none of them. Without risk, you can’t hope to become financially free or earn money.
The rule should be that if you take on debt and risk, you should be paid. Whether that’s in rental property, starting a business, or investing. What people need to understand is that people pay you to take the risk. If you buy shares of the stock in a company you were taking the risk.
Your profit is made when you buy, not when you sell.
When a person feels the need for the money an E will automatically look for a job, an S will often do something alone, a B will create or buy a system that produces money, and an I will look for an opportunity to invest in an asset that produces more money.
The problem with changing quadrants is that we’ve been conditioned to think in conventional wisdom. We operated out of fear instead of risk.
Living below your means = crushing the spirit. Instead, expand your means so that you can enjoy all that life has to offer.
The ability to read numbers, financial systems and business systems give you vision that mere mortals don’t have. If you want to build a large world-wide business, numbers mean everything, not words.
How to become rich: think differently. The book Think and Grow Rich by Napoleon Hill is not titled Work Hard and Get a Job and Grow Rich.
In order to be financially free, we need to learn how to make mistakes and manage risk.
One of the best ways to change quadrants is to change the way you speak. Instead of saying I can’t, think of ways that you can. Ban negative self-talk and internal dialogue.
You own a business, it’s a good idea to begin with your business.
Take baby steps when learning about your financial successes. How do you eat an elephant? One bite at a time.
