Aug 292013
By the hour, by the task, by the relationship, or by ROI

I’ve had the privilege to expand my formerly fixed pie mindset into that of a lifelong student with an ever growing pie mindset due to being on the ‘path less traveled’ which I’ve been walking down these past 3+ years.

In this time, I’ve read north of 100 books, listened to somewhere between 500 and 1,000 audio recordings, watched over 50 DVDs, read hundreds of blog posts, and been to between 100 and 200 different events where I am surrounded by creators/builders/eagles/climbers. All of these, summed up, has completely been transformational. Not an overstatement in the least!

As part of the above, one particular book, amongst many, serves as the inspiration/foundation stone for this post – that being ‘Cashflow Quadrant’. It was one of the first dozen books I read when I discovered what true education really was ( = liber/liberty/how to think ), and I constantly recommend it in the present, and will do so into the indefinite future:  It is THAT crucial — a must read.  In fact, I believe it should be required reading in all high schools, regardless of if public, charter, private, Christian, or one of the many home school curriculums.

Taking a high level view of the acres of material in this book leads back to the title of this post. There are four/4 quadrants —  each of them will appeal to people based on their core values, their personality traits/temperaments, and their willingness to be a student (read: humble, honeable, hungry).  Each of these can also be attached to one of the short descriptors;  let’s unpack them one by one, then will close off this post with a summation.

By the Hour

E > Someone who ‘lands’, chooses, or is shuttled here through the ‘system’ and/or programming most usually thinks in chunks — hour(s). Extended further out: days, weeks, with a mindset of “hump day”, or Friday is more important than any other day of the week. This is due to an ingrained mindset where he/she measures things in such time increments which are short term in focus and perhaps also in vision.  Often, someone in this quadrant will say he/she “has no time”, or is “very busy”. Chalk this up to a priorities/urgencies root issue, and the age old difficulty in being unable to do anything about the time v. money 1:1 exchange.

By the Task

S > Here is a quadrant where one also tends to be shuttled or programmed to put up stakes, although there is a definitive difference b/w it & its cousin, ‘E’. A person(s) here now thinks more along the lines of – how much can I earn (income) for task “X”, “Y” ?  Example is the trading of time for an appointment which requires the other party to pay ( e.g., Doctors, dentists, accountants, certain types of coaches/counselors, stylists, consultants, lawyers ). So, to extend, it is in the best interests of the person to squeeze as many clients-customers into a given time period as possible. The outlook here can usually be longer than a day or a week, although a person here can oft-times employ others, so he/she may also be marking off in his/her head the time between ‘now’ & when payroll is due.


We’ve now traversed the metaphorical wall/chasm between sides of the squared quad. What is the difference between them, one who has yet to read this landmark book may inquire?  Quite straightforward:  One’s incoming information, and subsequent thinking (and actions/application of the former two). Another way to say it:  You are no longer depend”E”nt nor are you a member of independent”S” Inc. (so to say)


By the Relationship

B >  The least understood corner real estate, yet within lies the most profound answers to many of life’s perplexing issues/questions. Such as?  :  Why can’t I ever seem to get ahead? — Why don’t I think I have enough time in the day to do everything I must get done? ( yet, the day is just as long as it was millennia ago ) — Why is there more week/month than what is in my paycheck ( net income ) ?  Just who are the folks who own (not manage!) those ‘chains’ = franchises that I spend all of my waking time or currency in?

When you quite likely have made your way into this quadrant, since a very small number will be born here, you will find that your thinking requires a reboot. And, furthermore, that much of what you learned before quite likely will need to be unlearned over time. To “B”, you are no longer the magic elixir. You’ve instead discovered interdependent life — its all about Resolution 11: Systems (Holism) & working in concert with a proven, duplicatable system. This system often takes the form of a recurring inflow of life changing information or, in some cases, it is a reference manual/guide/book that you can use over + over + over again to get the same result.

How does relationship(s) tie in?  This way:  Since you are interdependent, you are interlinked in many cases with others in common purpose. The others will either ensure your financial security through their prosperity; and/or they will be your extended term clients/customers as you have earned their unshakeable trust and loyalty; and/or, lastly, you are seeking to grow your tribe and expand your network, so you must know people skills and sharpen the human relations art & science abilities that are not nearly as well taught as an “E” or an “S”‘er. Folks here also have a strong understanding of financial fitness & are coming to the realization that you don’t retire — unless the word is re-defined to mean that you are retiring from your obligations.

This leads to the final corner >


I > This is rarified “air”, as the % of those occupying the ground in this bottom right real estate are most always those who spent a good deal of time as a “B”, and they’ve earned their stripes and have become truly free:  In both time and in money. So, they can now put their money on the line in great big chunks, and become real investors. No, if you are “investing” in a corporate-industrial age retirement vehicle such as a 401(k) nor an industrial age one like a defined benefit pension plan.

In those two latter examples, you are not spending money, however, you have not leveraged money to get an ROI on money. The leverage here is purely monetary as opposed to a system from its cousin to the north, the ‘B’. Instead, this is building or creating of an asset(s) that kicks off cash flow. The book describes the levels of investors far better than I could attempt to dissect, so dear readers, please be sure to read, or re-read, this seminal book, then pay it forward to your friends, family, and especially, the younger generations.

In this quadrant, to cap it off – you are receiving so much inflow of currency from your dependent ‘E’ & independent ‘S’ neighbors across the wall, that your well being is set. You are a living breathing example of the maxim of financial fitness that its NOT where the $ starts, but rather, where it ends up that COUNTS.


In wrapping up, please be willing to always change. It is hard, however, beating one’s head against cement and expecting cement to crumble!  If you have those questions above, or simply are a student and wish to gain wisdom and knowledge to then turn around to apply & then pay forward to another, you have found (A) one of the best books ever written, and (B) a post here in the blogosphere which has attempted to explain it all from a slightly different perspective than others likely have already. ( since this book has sold so many copies, I know there are tons of links online talking about it! )

Be the best you can be. Live. Learn. Grow, And may you find & earn your dreams.

Aug 032013
Mindset -- Thick skin, soft heart > Soft skin, hard heart --

Your mindset is a very large input factor – its impact is much like a rock that ripples the standing, still waters on a lake once a person skips it across the surface.

So, after hearing a talk by a very accomplished business owner/entrepreneur about 6 weeks ago, and re-visiting my notes from her ** talk, I was inspired to blog about some of the contents of her talk, adding some of my own color to her words.  It was a very enlightening perspective!

First >

Being offended.

Have thick skin & a soft heart when it comes to being offended. Our culture is far too close to the soft skin, hard heart than it should be, which causes needless friction in relationships. Let alone, one’s mindset is impacted, as he/she is always either carrying a chip on his/her shoulder(s), or is always being overly concerned about what to say & when to say it. Manners matter, yet having empathy and grace are better.

Second >


If someone has more credentials, certifications, or other ‘flair’ than the person next to you, please don’t have the mindset that this individual is more intelligent, smarter, or more impactful to society. There’s nothing at all amiss about pursuing these as you go after what you want ( ‘Define’ step ), however, your mindset must be centered on the value of people as far more than their career/occupation/job. The latter is just a small part of our lives. Let alone, the fact that self-directed (liber/leadership) education doesn’t bring with it any of these “tokens”, however, this path is just as valuable,and unquestionably so.

Third >

Being an employee & lacking understanding of being an owner/entrepreneur.

As with the second, neither of these pathways are “wrong”, however, oft-times, with the last century having been a force-shift culture rather than the previous 125 years, there is a mindset that someone who is an owner has to put their entire life on the line by signing a stack of papers, or having a name on a building. Let alone that entrepreneurship is ‘risky’, or requires a ton of time to get ahead versus a 40 hour employee’s average week. Not the case!  Here, again, mindset makes all the difference. Have thick skin if you are an owner facing questions like this; have a soft heart if you are dealing with an owner who is chasing his/her dream of freedom

Fourth >

The desire to always win an argument.

Dale Carnegie taught us all about four score years ago that one never really wins an argument. Sage wisdom from the past, as usual, is timeless. However, when your skin is not thick, you may be far more defensive, less humble, et al., so I can clearly can tell why she included this in her talk about mindset.  Instead of winning an argument, and losing the battle, let alone the’ ‘war’, how about digging into people skills books, audios, and surround yourself with those whom will make you better?

Fifth >


One possible way to approach image is to compare it to one’s reputation, as opposed to what one truly is, inside-out. A person is far more than how he looks on the surface, how much schooling/education she has, etc. Being materialistic, judgmental of someone’s choice of clothing without knowing details, critiquing his way of talking; all of these are image-conscious. It’s far more valuable to re-focus your mindset on something that will edify and glorify others.

and, lastly, Sixth >


We’ve all made them; in fact, Dr. David Schwartz, in his landmark book, ‘The Magic of Thinking Big’, dedicated a whole chapter to ‘Excuse-itis’!  So, let’s not reflexively judge others, nor beat ourselves up if we’ve come up with excuses. These are signs of the latter from this blog’s subject – a hard heart and thin skin. Rather, turn the excuses into reasons! And, have a thick skin and grace when it comes to dealing with others who have not yet reshaped their mindset to one of solutions, rather than problems.


** – all credit for the outline/core themes from this post to Mrs. Terri Brady. Her talks are always a value add to my life. Visit her blog @ for an excellent dose of success, wealth, and interpersonal development thinking.