Kiyosaki's Buckets of Water Analogy strongly impacted me
Saturday, March 8, 2008 at 01:23PM P.4 Chapter 4 is what I most remember from reading Cashflow Quadrant. Chapter 4 is what to look for when choosing a Network Marketing company; more about that in another post. P.4 is the buckets of water analogy. This was indeed an Oprah light bulb moment for me! Talk about an AHA! This story illustrated the difference between being self-employed and being a business owner. I always thought I owned my own business but after reading this I realized it owned me! Can anyone relate? Click here to purchase a copy of Cashflow Quadrant. When he asks the question if you went away for a year what would your business look like; I realized that I was my business. Chief, cook, and bottle washer. If I stopped the money stopped. He explained that there were only 3 types of assets. He defined asset as something that puts money in your pocket and a liability was something that takes money out of your pocket. For example your car is not an asset, well it is, for the bank not you. If you stopped working tomorrow your car would not feed you, nor would your house for that matter. He was by no means saying don't buy a house he was just saying understand the vocabulary. The 3 asset catagories are Real Estate, Investments and owning a business. There are 3 types of business: the WalMart model which cost a lot of money and took a long time; the franchise model which costs a lot of money and finally network marketing or the private franchise model. Kiyosaki recommends that you own your own business "B" business before you enter into the "I" quadrant. With both real estate and investments you need to have the money to lose. If the money you invest wasn't descretionary you shouldn't be using it. So the only truly viable business for most people is network marketing. It has been much maligned over the years but then so was franchising initially and now I believe it makes something like 34% of the GNP. The internet has changed the rules and truly made a level playing field for individuals like you and me. If you want to get properly educated on how to build a viable online business you need to read The Renegade Network Marketer and get the best Internet Marketing and Affiliate Training available for the best value.i