One of the Keys to Never Working a Job Again is Leverage
Today, we will discuss one of my favourite words - LEVERAGE.
I know most people vacation really well for three to five weeks of the year. You work really hard for 45-50 weeks of the year to have a few weeks of fun. I bet those are often some very well planned weeks. I remember when I used to have a normal job and just so look forward to those vacation days. We used to plan them so carefully to make sure we got maximum value back.
But hey - here’s a thought…..what about designing a life that feels like you’re permanently on vacation?
My wife and I now live our ideal life (not trying to make you jealous – ok maybe a little!) here in Valencia, Spain with our two kids – but we didn’t get here by accident! We have spent many years planning and setting goals thereby basically, designing our life.
So the first topic I’m going to discuss with you to help you get there is leverage, one of the most important things ever when it comes to designing your life. Here you can see the famous cashflow quadrant by Robert Kiyosaki
The usual scenario for most people is you get paid for the hours you work. If you stop working, your employer stops paying. This is ideal if you need money today and need to get paid right away which is the scenario for most people. The biggest issue with this is that someone else owns your life. I usually share my story of being in the banking world and pretty much having to ask when I can go to the bathroom. If you want anything to do with designing your own life then regular employment has nothing to do with that long term. For the short term - absolutely!
The next scenario is the self-employed person. Someone who’s figured ‘I know how to do this, I don’t need a boss, I’m going to start my own business’. Sounds great, but if you’ve done it or are doing it you know first-hand about the headaches.
Your business owns you
Employees who will never care as much as you
You are still needed every day
Still trading time for money
First in office, last to leave
Last to be paid
Solution? You have to be able to create money in your sleep. I know!! How can you possibly create money while you sleep?
Leverage - the ability to do more with less
I chose to get into the network marketing industry. Yes the whole pyramid scheme, scam, lose all your friends and family type of industry. The longer I am in it the more horrible opportunities I see not to mention the bad practices from certain distributors who are not professional. However, there is also a movement of many ethical and professional people who build a solid business in this industry. There are so many examples of people who are able to create an incredible life where they have options.
When starting out you are essentially self-employment but eventually, I was able to take a big step back and receive income in my sleep, on vacation…..continuously.
If you have a look at Kiyosaki’s Cashflow Quadrant the process of building a network marketing business is all about building this bridge from self employment to big business. The only way to walk across this bridge is if you link arms with enough people who are willing to come with you.
I suggest to anybody looking to get into the industry to do it on part-time basis at first so that you do not have incredible stress just to pay your bills. Also, this is a business and it requires investment on your part. Not huge investments but I still recommend for people to be using products/services from your company. Also, you will need products to demo. One of the most important investments is in yourself with books, audios and attending events. As you gain more and more leverage you find yourself at a point where the ‘extra’ is enough….or more than enough! Now you can go full time.
The big business quadrant is when you own a large business that takes away you as the focal point in the income generation. You can actually step back and go on holidays for even a year and your business runs without you.
The last quadrant is the investment quadrant and this is where my father has done extremely well. He has been able to invest his money and leverage that to make it grow into something substantial. Here is a blog when I did a very short interview with him.
If you haven’t read them I’d recommend ‘Rich Dad Poor Dad’ and also ‘Cashflow Quadrant’ by Robert Kiyosaki. He has also written a book about the advantages of building a network marketing business called ‘The Business of the 21st Century’