Economics is one of the central tenets of Max Living. We aim to help people progress to financial freedom, whatever that means for them, and give them tools and resources that help them exert more control over events in this part of life. If you’re worried about your financial future, chances are you will not be able to give very much attention to the other key areas of Max Living.

In Rich Dad’s Cashflow Quadrant, which is described as Rich Dad, Poor Dad Part II, Robert Kiyosaki helps readers see how they can reach financial freedom. Kiyosaki writes, “If you are ready to begin your journey or are already on your journey to financial freedom, this book is written for you.”

Readers of Kiyosaki should already be familiar with his “ESBI” Quadrant, with four distinct categories of earning—Employee, Self-Employee, Business Owner, Investor. Kiyosaki states that “financial freedom can be found in all four of the quadrants, [but] the skills of a ‘B’ or ‘I’ will help you reach your financial goals more quickly. A successful ‘E’ should also become a successful ‘I’.”

Part one of the book explains the differences between quadrants, and will help you see where you are now. Part two is about personal change—who you have to be rather than what you have to do. Part three provides seven steps that get you on the “right side” of the quadrant—Business Owner and Investor. These include “take control of your cash flow,” “know the difference between risk and risky,” and “seek mentors.” In this last step, Kiyosaki encourages readers to consider who they spend their time with. What quadrant are they in?

Whether you have or haven’t read any of Kiyosaki’s other books, Rich Dad’s Cashflow Quadrant is recommended reading because it helps you evaluate where your money is coming from and how you can move to the “B” and “I” quadrants. Kiyosaki doesn’t provide specific “here’s how you make money” advice. If success is a journey from one point to another, then what Kiyosaki does is give you a compass to help you navigate—in this case, from “E” and “S” to “B” and “I”. I’m confident you’ll find it useful.

A new edition of Rich Dad’s Cashflow Quadrant will be released on May 10. You can purchase it then from Amazon.com or Barnes and Noble, or you can find a used copy from numerous outlets.

In the current geopolitical climate, one thing we can’t control is the price of gasoline. With turmoil and conflict in the Middle East dominating the headlines in recent weeks, the price of oil is up significantly. We’re all feeling the pain at the pump. “Cause and effect,” some would say; others would call it “pricing gouging” and flagrant speculation.

While we can’t control the price of gas, we can control our attitude about the situation. We can also control the way we mitigate the effect it has on our wallet:

• Find opportunities to carpool.
• Plan your daily travel, or weekly if you can, and combine trips as much as possible.
• With other parents, plan a schedule of picking up and dropping off kids at school, athletics, etc.
• Make sure your car is running optimally.
• Use public transportation or a bicycle.

These are just a few ideas that will help you minimize the impact of higher fuel. By acting on the things you do control, you don’t have to feel like a victim of fate. And of course, you can more effectively control the money going out of your wallet.

What people want is a shortcut to wealth, but what often happens is that it’s the ethical corners that get cut. And yet, as we’ve been told seemingly for centuries, it’s “slow and steady that wins the race.”

Speaking financially, making regular deposits into a savings or 401(k) account can have the same impact of a six-figure windfall…except you can literally bank on the deposits. Inheriting or otherwise suddenly receiving $300,000 is something most people simply can’t count on. In the absence of any guarantees of future wealth, we can make our own guarantees by working hard now while keeping one eye on the future.

Likewise, your dreams need regular “deposits.” If you’re not working on your dreams, who is? It’s essential that you frequently swing a figurative hammer and keep those dreams alive.

How we view problems is an indicator of our wealth and success, or lack thereof.

Author and speaker T. Harv Eker teaches that:

Poor people base their decisions on fear and say things like, “What if it doesn’t work?”;

Middle-class people base their decisions on false hope and say things like, “I hope this works”;

and wealthy people base their decisions on faith and accountability and say things like, “It will work because I’ll make it work.”

Problems are opportunities waiting to be turned into triumphs. Train your mind to find solutions, and take responsibility for implementing those solutions. Think wealthy to become wealthy.

Suggested reading: Secrets of the Millionaire Mind by T. Harv Eker

Where are you on the CASHFLOW Quadrant? Rich Dad, Poor Dad author Robert Kiyosaki explains.

*If you’re reading this in an RSS reader or e-mail, you may need to click the title of the post to view the video on our blog*

A high form of production is to use systems to duplicate our efforts in order to produce the greatest amount of value for the greatest amount of people.

Most small businesses fail because the owner does everything himself without creating duplicable business systems.

Robert Kiyosaki calls this the difference between hauling buckets and building pipelines. This is also the difference between true business owners and the self-employed.

Bucket haulers are limited in the amount of value they can create because they alone can only do so much in a day.

But pipeline builders can create virtually unlimited amounts of value because they duplicate and replicate their processes of production. It is also through sustainable systems that we can have intergenerational impact for centuries to come.

Exponentially increase the value you provide by duplicating yourself through business systems. Specifically to network marketing, this means building a team, rather than relying on product sales.

Building pipelines, as opposed to hauling buckets, will ultimately serve more people than you can serve alone.

Recommended Reading: The E-Myth Revisited by Michael Gerber and Cash Flow Quadrant by Robert Kiyosaki

“Success…to laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty, to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded.” - Ralph Waldo Emerson

Share your definition of success by commenting below.

“How long it took you to catch them?” The American asked.

“Only a little while.” The Mexican replied.

“Why don’t you stay out longer and catch more fish?” The American then asked.

“I have enough to support my family’s immediate needs.” The Mexican said.

“But,” The American then asked, “What do you do with the rest of your time?”

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take a siesta with my wife Maria, stroll into the village each evening where I sip wine and play guitar with my amigos. I have a full and busy life, señor.”

The American scoffed. “I am a Harvard MBA and could help you,” he said. “You should spend more time fishing and with the proceeds you buy a bigger boat, and with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats.”

“Instead of selling your catch to a middleman you would sell directly to the consumers, eventually opening your own can factory. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then Los Angeles and eventually New York City where you will run your expanding enterprise.”

The Mexican fisherman asked, “But señor, how long will this all take?”

To which the American replied, “15 to 20 years.”

“But what then, señor?”

The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.”

“Millions, señor? Then what?”

The American said slowly, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take a siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos…”

Who seems richer, the fisherman or the businessman? Don’t forget to enjoy life’s true treasures – family, friends and happiness – while you’re seeking monetary wealth.

The story is told of two businessmen who took a business trip to an undeveloped region in Africa.

Upon arriving, the first thing they noticed was that no one was wearing any shoes.

The first businessman said, “We don’t want to do business here because there is no opportunity.”

However, the other businessman said, “Wow, look at all this opportunity.” He called his office and said, “Send me all the shoes you can.”

Many network marketers start out enthusiastically but fizzle out quickly.

They begin to see barriers where there were once opportunities. Instead of seeing potential clients, they only see closed doors.

Perspective Determines Prospective Clients

Your perspective is the life and soul of your business. Opportunities will be all around, but if you fail to discern them, you have buried your own business.

Innovative businesses continue to see a market for their products, and aptly supply it.

Businesses that have the competitive edge are the ones that can recognize this faster. To be a successful network marketer, you must hone the skill of seeing the glass half full.

When I was CEO of a nutritional company, we had a distribution in Trinidad and also serviced the entire Caribbean. I was invited to present in Guyana.

When I arrived I began to look at the quality of life of the people. 13 percent were HIV positive and many lived in poverty. I didn’t see an opportunity because I thought our product was too expensive for them to buy.

As I voiced my concerns to my liaison, he told me something that changed my perspective.

He simply said, “These people have no hope. They have no job opportunity. They have no choice. And you are providing an opportunity for them to have a choice. Yes, it looks like they can’t afford the product, but they can’t afford not to.”

At that moment I had an epiphany because I realized I was the one putting up barriers, not the people or their circumstances!

Being flexible in your approach is key when dealing with varying demographics.

How we view potential clients will determine how effective we are in any business endeavor.

Here’s another example:

A telemarketer at a Fortune 500 company was the top seller in his branch. Every week during the company’s ongoing sales competition he took the top spot and won all the incentives, even though the competition was stiff.

His managers became inquisitive about how he did it week after week.

He told them it was simple:

“Even if I have doubts in my mind about selling to a certain type of client, I leave my judgments at the door and sell just as hard as I would to the best potential customer.”

The employee was taken off the phones to train other employees in selling effectively. While training, he found that those who had the lowest sales were “afraid” to offer services to “certain types” of clients.

These employees had put up their own barriers.

Network marketing is all about the work you put in. Those who are successful exhibit tenacity through perceived difficulties.

If you see no opportunity to work, you will sit on your laurels and not earn a dime. The key is to work regardless of what the circumstances or clients look like, and leave your judgments at the door.

You might find that where you only saw rubble, there is a field of glistening diamonds.

Years ago I worked for a man who, at the time, was the richest man in the state of Utah. I ran one of his companies and we became close.

I quickly learned that his whole goal in life was to make more money.

When I first started working for him, another Utah man was richer. He celebrated when his net worth superseded that of the other man.

He would criticize philanthropists for diminishing their net worth. Accumulating wealth was his entire focus.

I don’t mean to criticize this good man unfairly. The fact is that he did a lot of good in the world.

I’ve just learned for myself that if I focus on acquiring and accumulating, without sharing my blessings with others, I can never progress beyond my current level.

One of my favorite books is Self-Wealth: Creating Prosperity, Serenity, & Balance in Your Life. The authors write:

“If you have included in your self-wealth plan a specific goal of providing a significant part of your newly-acquired wealth to others, and if you are passionately intent to follow through, your motivation is far stronger.”

I have found this to be true in my own life.

When I was younger, I used to dream of being a millionaire. Now that doesn’t mean much to me. Now I have bigger, more philanthropic goals — and these motivate me far more than my previous selfish goals.

I don’t hold myself up as a Mother Teresa. I simply know the motivational power of having goals bigger than personal comfort and pleasure.

Anyone can become a millionaire. But few become truly great by making their goals bigger than themselves.

Are you one of them?