- July 1, 2021
- Posted by: folafinancial
- Category: Finance & accounting
We are officially in the 2nd half of 2021! This is a great time to check in with ourselves to see if our income goals are matching what’s in our accounts!
So let me as you this question…
That’s right, your income ID? This one little letter could be the difference between you working for your money and your money working for you!
Five years ago I read Rich Dad Poor Dad by Robert Kiyosaki, where I learned about the four ways to produce income. Think of each of the below quadrants as your income ID:
After reading the book, my perspective about wealth shifted drastically.
Back then, I was working at a “Big Four” accounting firm trading my valuable time for money … and it wasn’t even much. A 65k salary is around 45k after taxes… A six figure salary sounds good, but that does not mean you pocket 6 figures.
In fact, most individuals that make six figures pay close to 40% of their income to the IRS and State & Local governments. Ouuuchhhh!
Just to put it into perspective, I have clients that net around 1-2 million and pay less than a 28% effective tax rate (both federal and state combined).
I started Fola Financial 3 years ago, and moved into the S quadrant (self- employed). I was determined to free myself, but noticed that I was still trading much of my time for money .
The thing about entrepreneurship is that you typically do start there, but the goal is to eventually move into the B quadrant (Business owner), which is focus on when advising my clients.
Yes, contrary to popular belief, there is a huge difference between being self- employed versus a business owner.
If your goal is “financial freedom”, you want to move into the B & I quadrants ASAP.
Over the past 3 years I buckled down and turned Fola Financial into a B business. Meaning that if I need to take a 3 month break, the business will still operate on its own due to the systems and processes I implemented, and of course my amazing staff.
I grew a passion for passive income and moving into the I quadrant (Investor) in 2019. With my current real estate portfolio, I make more than enough in monthly cash-flow to cover my monthly expenses, so technically I am already “financially free”. (This doesn’t even include income from Fola, my other businesses, or my stock portfolio).
I share this because as we are living in such unprecedented times, it is important to be aware of how the decisions you make now affect the life you will have in the next 5-10 years.
If your goal is to live financially free, learning how to shift your income ID to B or I, ideally both is better, is key!
Want to meet with Fola Financial to discuss your plan to achieve your goal income ID? Click below to schedule a consultation or browse our services!