Stevenglobal Forex
Business Learning

"When a person feels the need for money," rich dad explained,

an 'E' will automatically look for a job,

an 'S' often will do something alone,

a 'B' will create or buy a system that produces money,

an 'I' will look for an opportunity to invest in an asset that produces more money."

"The reason it's hard to change a pattern," said rich dad, "is because money today is essential for life. In the Agrarian Age, money was not that important because the land could provide food, shelter, warmth and water without money. Once we moved into the cities during the Industrial Age, money signified life itself. Today, even water costs money." Rich dad went on to explain that when you begin to move from, let's say, the 'E' quadrant to the "B" quadrant, the part of you that is addicted to being an "E," or afraid that life will end, begins to kick and fight back. It's like a drowning person beginning to fight for air, or a starving man who will eat anything to survive.  “It's a battle that goes on inside of you that makes it so hard.”

"The part of you that still seeks security is in a war with that part of you that wants freedom. Only you can decide which one will win. You'll either build that business or you'll go back to holding a job-forever."

Do you really want to move forward? Click to Enlarge

Today, understand the emotions when a person says: "I can't take risks. I have a family to think about. I must have a secure job Or "It takes money to make money. That is why I can't invest." Or "I'll do it on my own." I feel their thoughts, for I have had those thoughts myself. But looking across the Quadrant and having achieved financial freedom from the "B" and "I" quadrants, I can faithfully say that having financial freedom is a much more peaceful and secure way of thinking.

DIFFERENCES BETWEEN "E"AND "B" Core emotional values cause different points of view. The struggle in communication between owners of a business and the employees of a business is often caused by differences in emotional values. There has always been a struggle between the "E" and the "B" because one wants more pay and the other wants more work. That is why we often hear, "I'm overworked and underpaid." And from the other side we often hear, "What can we do to motivate them to work harder and be more loyal without paying them any more?"

DIFFERENCES BETWEEN "B"AND "I" Another is the constant tension between business operators and the investors in that business, often called the shareholders, the "B" and the "I”. One wants more money to operate with and the other wants greater dividends. A conversation at a shareholders meeting may sound like this: Company managers: "We need a private jet so our executives can get to their meetings faster." Investors: "We need fewer executives. Then, we won't need a private jet."

DIFFERENCES BETWEEN "S"AND "B" In business transactions, I have often seen a bright "S," such as an attorney, a "B", business owner, and when the transaction is completed, the attorney becomes silently disturbed because the "B" makes millions and the "S" earns an hourly wage. Their words may sound like this: Attorney: "We did all the work, and he made all the money." The "B": "How many hours did those guys bill us for? We could have bought the whole law firm for what they charged us."

DIFFERENCES BETWEEN "E AND "I”. Another example is a bank manager who gives an investor a loan to buy some real estate. The investor makes hundreds of thousands of dollars, tax free, and the banker gets a paycheck that is taxed heavily. That would be an example of an "E" dealing with an "I" that often causes a mild emotional reaction. The "E" might say: "I give that guy a loan, and he doesn't even say 'Thank you.' I don't think he knows how hard we worked for him." The "I" might say: "Boy, those guys are picky. Look at all this useless paperwork we have to do just to get a lousy loan."

Different quadrants, different core values.

The main reason so many people struggle financially is not because they lack a good education, or are not hard working. It's because they're afraid of losing.

Fear of "being" a loser affects what people "do" in strange ways. I have see people who bought a stock at $20, sell their shares when they reached $30 because they're so afraid of losing what they've gained, only to have the stock go to $100, split and go up to $100 again. That same person, having bought a stock at $20, will watch it go down to, $3 and still hang on, hoping the price will come back up... and they may hang on to that $3 stock for 20 years. This is an example of a person "being" so afraid of losing, or admitting they lost, that they wind up losing.

Winners "do" things almost exactly the opposite. Often, the moment they know they took a losing position, i.e. their stock price starts to go down instead of up, they will sell immediately and take their losses. Most are not ashamed to sly they took a loss, for a winner knows that losing is part of the process of winning, When they find a winner, they will ride it up as far as it can go. The moment they know the free ride is over and the price has peaked, they cut and sell.

The C4SHFLOW Quadrant The key to being a great investor is to be neutral to winning and losing. Then, you don't have emotionally driven thoughts such as fear and greed doing your thinking for you.

SUMMARY

If people are not able to control their emotional thoughts, the journey of crossover is not recommended. The reason things look so risky on the right side of the Quadrant to people on the left side is because the emotion of fear is often affecting their thinking. If a person cannot control their emotional thoughts, and many cannot, then they should not attempt to make the crossing. I encourage all of you wanting to make the crossing to make sure you have a long-term positive support group with you and a mentor on the other side guiding you.