In the quest for increase and financial growth there are really just two options:
- Spend less
- Make more
Pretty cut and dry.
Here in the Increase Academy, we choose to focus on the latter. We want to make more.
There is a time and place for both, but as we know in John 10:10 Jesus came to give us an abundance.
I say let’s all choose abundance. Let’s be the guy who always pays for meals when we go out, let’s be the guy who hosts the parties and caters in great foo…you get the picture.
So let’s do some straight talk on making more money so we can be that generous guy we all want to be.
The chart below is from the book “Rich Dad, Poor Dad” and it changed my life.
This is the “Cashflow Quadrant.” The goal here is to get your brain from the left side of the quadrant to the right side of the quadrant.
Get your mindset of the “E” and “S” side and begin to think on the “B” and “I” side.
Let me walk you through this:
Employee: You work for a lawn company. They tell you when to be at work and determine how much money you make. You are a slave to your job. If you don’t go to work, you don’t make money. But you have little responsibility, show up, take orders.
Self Employed: You own a job. You start a lawn company but you are also the main employee. You have to mow, get the jobs, collect the money, do the paperwork. You are still a slave to the job, because if you’re not there the company doesn’t function, and no money comes in. The one good thing is that you can make more money than an employee. However, you will have less free time than an employee, you will wear many hats (you’ll do mutiple, if not ALL the positions in the job) and you’ll have all the responsibility and pressure.
Business Owner: You start a lawn company, but instead of you working, you hire a crew to handle all the work for you. Your time is now free to get more jobs, hire more crews and grow your business. Your time is much more free and your income is unlimited. This is the second best option.
Investor: You help a business owner by giving him the money to buy the lawn mowing equipment he needs and money to advertise. In exchange, he gives you 10% of every lawn he mows. You invest your money, but not your time. You go about your day, doing what you enjoy and watch as the money flows back to you. You don’t work, instead your money works FOR you. This is the best position to be in, it provides the most freedom and the most income. You can then take your earnings and invest in more opportunities and repeat the process.
Where Do I Start?
Great question. Most often people move from the E to the S, to the B, to the I. In that order.
They start working for their company and learn the business inside and out, let’s say a mechanic shop. (E)
Then they take what they’ve learned and start their own mechanic shop. Usually by themselves doing it for friends and family, then the referrals start coming in. (S)
Now it can be tricky to move from the E to the S. It takes faith, courage, good planning and God’s direction.
Most people who have the “entrepreneurial spirit” stop here. They think they are business owners, when really they just own a job.
I found this out the hard way. I was 19 years old with a lawn business thinking I was a business owner. However, if I didn’t mow, I didn’t get paid! I didn’t own a business, it owned me!
About half way through the summer, I started to HATE mowing lawns. But I couldn’t quit because I had lawns to mow and money to make.
Now this isn’t necessarily a bad thing. I was in control of how much money I made, up to as many lawns as I could handle, but if I knew then, what I know now, I would have done it way differently.
I would have hired my little brother and his friends to mow the lawns. If the lawn paid $45 dollars, I would have them do it for $10 an hour. They could do the lawn in an hour and then move on to the next. I would have made about $20-$25 per lawn and they would be happy because they were young and $10 an hour is a good wage.
Then I would have continued mowing myself until I had enough lawns to pass onto them and make a good income.
That would free me up to get more lawns and start more crews. Thus moving me over to the (B) side.
I hope you are getting this. There is a better way to do things than what we have been taught.
We don’t have to follow the expected protocol of society.
Someone out there owns the businesses.
There is NO REASON why that can’t be you.
That luxury apartment complex you see downtown? Someone owns that and makes a profit off every person that lives there.
You could be an owner instead of a renter.
It just takes a mindset shift and a step of faith.
This course in example of what we call “passive income.”
I put in exhaustive hours up front to research it, create it, and market it.
But now it pays me over and over and I no longer have to work on it. (Besides maintenance and interacting with the community – which I enjoy!)
This course, combined with my other websites required A LOT of upfront work. But not much on the back end. With some of my online businesses, I don’t have to touch them but just a few hours a month.
This is contrary to what most people have been taught. We are taught to trade our time for dollars.
When you start a job, you and your boss make an agreement.
The agreement is this: You will do what I say, and I’ll give your $12 per hour, and you will do it for 8 hours each day. And you agree to it.
Now the passive income model (Similar to the “I” for investor) says work up front, put in the hours and the hustle, but then it can pay you without you being there.
One of my websites made a huge sale when I was on vacation with my wife on the beach, and brought me a $7,000 profit. I made $2,300 while I was at the hospital having our first baby!
I didn’t have to trade my time for those profits. Yes, I worked my butt off at first. But now it pays great dividends.
This pretty much how it works:
If you are interested in this business style, I HIGHLY recommend the book by Timothy Ferris “The 4-Hour Workweek” I LITERALLY copied his examples to build my online businesses. (It’s definitely NOT a Christian book by any means, but the content and tangible action steps are solid.)
In a nutshell, I made connections with online manufacturers. I found a product that had very little competition on the internet and made a website for it.
Here is what one of my businesses looks like:
1. Customers find my website, make the purchase, and pay me online $847.
2. I then transfer my cost to the manufacturer which is $410.
3. The manufacturer ships the product to my customer, and I keep the remaining $437 as my profit.
To run this business, I transfer money and send 1 email. It takes me about 8 minutes of work to make $437.
That’s my kind of business!
Now I know I make it sound super easy. And at some levels it is, but what I want you to know is that you can figure this out too.
Anyone can do this. There are hundreds of ways to make money passively. I’ve added some resources in the Bonus Module that will help get you started if you’re interested.
I truly believe that business ownership and investing is the best way to increase your wealth.
Owning a business (if done right) gives you time freedom, and your income potential is limitless.
Take those profits and start investing them wisely and have your money work FOR YOU, instead of you working for money.
I hope this mindset shift is sinking in. It definitely changed my life and I am so thankful for it.
Take some time and meditate on this new way of thinking towards making money.
How can you move to the B and I side of the Cashflow Quadrant?
Take a look at your current job, talents or skills. Is there a way you could branch of and do your own business if you want?
Take a look at the resources in the Bonus module and start gaining the knowledge needed to increase your business!
Free Course: Create a Simple, Online Income - FAST.
(Let me show you just how simple it is to make an extra $500 on the side)