Blog | Entrepreneurship

Women, Are You Financially Free?

Are you waiting for an emergency to change your financial life? Are you dependent on someone else? If so, it’s time to become financially free.

In looking at women and their money habits, I’ve got to ask, what causes women to act, to make changes in their financial life, and what causes women to do nothing?

R. Buckminster Fuller, the inventor, architect, and futurist said that the word “emergency” comes from the base word “emerge.” I’ve written about this before, that it often takes an emergency or wake-up call for women to emerge, to step up and take the lead. It’s when the crisis is in our backyard that we leap into action.

Or, on the other hand, perhaps you haven’t quite put your finger on what you should focus on? That’s OK! I’ve got an idea for you to consider; but first, here’s some background info:

There are four different ways to make money:

1. Employee

2. Small business/self-employment

3. Big business

4. Investing

If this philosophy sounds familiar, it’s a Rich Dad staple that’s called the CASHFLOW Quadrant. Every person who generates income resides in at least one of the four sections (quadrants), and where you are is determined by where your cash comes from.

Many people are employees who rely on paychecks. Others might be self-employed. Employees and self-employed individuals reside on the left side of the CASHFLOW Quadrant. The right side is reserved for those individuals who receive their cash from businesses or investments they own.

While financial freedom can be found in all four of the quadrants, the skills of a B or I will help you reach your financial goals more quickly. Most notably, successful Es need to become successful Is to ensure their financial security  during retirement and downturns in the economy.

In the B quadrant, people are working for you; in the I quadrant, your money is working for you. You are free to work, or you can choose not to. Don’t the B and I quadrants sound like a magical place to be? Trust me, they are.

When talking with women all over the world, however, there seems to be four different categories that they fall into when it comes to them and their money:

1. Comfortable and Dependent

2. Comfortable and Not Dependent

3. Uncomfortable and Dependent

4. Uncomfortable and Not Dependent

Being comfortable is when your financial life is working. When you can sleep through the night without worrying about bills to pay. Being uncomfortable is when you are constantly stressed about your money situation, you’re losing money, you’re not where you want to be and have no problem getting into arguments with your partner over it.

Being dependent is when someone other than you is providing for you financially. This may be your husband or partner, your parents, the government through social and medical programs or the company you work for. Here’s the litmus test - if this person or organization disappeared, would you find yourself in a financial struggle?

On the contrary, independence represents true financial freedom. You are in total control of your financial life. It doesn’t matter, financially (emotionally is a whole other thing), if your partner, family, government programs, or your job or business disappeared, you would be financially fine.

True entrepreneurs aren’t “comfortable”

Women tend to seek comfort, and find security in it. The truth is, comfort can be fleeting. Problems, changes, and unforeseen incidents happen. So even though you and I may be comfortable today, it could all change.

True entrepreneurs would absolutely never consider taking a well-paid and “secure” job for comfort over chasing their own dreams to build something. In fact, the goal of a true entrepreneur is to build a company that will eventually produce revenue without them.

Transitioning to the right side of the Quadrant

So why don’t some women act proactively? Typically, it’s because they’re COMFORTABLE. “Don’t fix what ain’t broke.” is the common line. It takes a self-aware woman, with a bit of ambition to go from being comfortable to wanting more.

Now I ask you: Do you want to change the direction of your financial future and operate on the right side of the quadrant (B and I)? Are you motivated by a dream of financial independence and prosperity? Good! It can be yours.

To be a B or I, you must be able to control the direction of your cash flow. Those with B and I skills will be able to more easily identify and seize opportunities for financial reward. B and I folks focus on creating assets to provide their income source using other people’s time and money. Above all, they value financial freedom.

Now, you may think you need to go back to school to pursue an MBA or some other degree that will help you figure out how to make more money or acquire the skills inherent in those who live in the B and I quadrants—but that couldn’t be further from the truth.

If you’re going to invest the time and money to learn something new, then focus on learning how to operate on the B and I side of the CASHFLOW Quadrant. No degree program will teach you how to be a successful investor. But you can teach yourself by reading Rich Dad’s CASHFLOW Quadrant and attending some of our workshops. Sure, an investment of time and money is required, but you’ll experience a much better return on your investment than you would with a traditional education.

Now is the time to take off that restrictive seatbelt, and make a right turn!