http://cpteh.blogspot.com/2014/09/get-out-of-e-easier-said-than-done.html

If we have been working for years ... or if we are new to work-force, we could easily stay in that zone ... the E-quadrant. It is the ''secure'' and comfort zone for many. Yes, I was in E-zone for 20plus years ... I was teaching in private colleges(Stamford, Inti, Sinaran and Taylors) over these years ... and I was tempted to move to another college when I was offered a better pay after I quitted recently!!

It is very tempting ... to stay in ''employee'' category. WHY?

One of the main reason is ''security''. We human are trained since young to seek for security!! To be secure(financially?) means ... we will be able to pay our bills and expenses, without worrying much about money. That is the main worry, actually!

Let us take a look at the E-S-B-I again. Found this nice writing and decide to put it here(for my own keeping, every of my blog-posts is for my own pleasure reading).


The E is for Employee. Employees work for salaried or hourly compensation. Employees can be the maintenance man of a Fortune 500 company to a leading executive of that same company. Employees care most about security. They typically do not like the feeling of uncertainty and therefore search for security blankets such as benefits packages, retirement plans and paychecks.

 
The S is for Self-Employed. Self-employed people tend to be very independent, do-it-yourself types. They want to run their own show and create their own destiny. They tend not to like having their income dependent on others. They have no problem having their income tied to their performance and believe that if I do more than everybody else (or am better at it), I should get paid more than everybody else.

People in this group tend to want to be the best at what they do and feel nobody can do their job better than them. Doctors, lawyers, salespeople, Small Business Owners, Artists, Actors and Mechanics are all examples of people in this quadrant. Independence, freedom to do things the way they desire and being applauded as the best at what they do drive them more than anything else.

The B is for Business Owner. Like a self-employed person, the business owner has an entrepreneurial spirit. However, their approach is different. These types like to delegate and surround themselves with great talent from all four quadrants. Instead of being do-it-yourself types, they prefer to hire or recruit the experts who are just as or more proficient. People in this quadrant strive to build and own a SYSTEM and have others run their creation. These types tend to be great leaders.

The I is for Investor. These types love to make their money work for them. They are great investors who look at investments from a business owner's perspective. Because of their skill of making money with money, the experts in this quadrant tend to invest large amounts of capital for other people. To quickly summarize, E's have a job, S's own a job, B's own a system which other people run on a day-to-day basis, and I's have money working for them. I like to think of business owners as people who build or create assets. Investors, on the other hand, acquire existing assets. For both business owners and investors, they care most about Time Freedom and Financial Freedom.

taken from : http://patricesrobinson.wordpress.com/2013/09/09/cashflow-quadrant-%E2%80%A2-4-ways-to-produce-income/



There you are ..SECURITY is what we seek for if we are in E-quadrant. As I mentioned in my previous post, unless u r paid RM15k and above(with expenses less than RM5k ... so that, saving is RM10k per month) ... it is difficult to be financially free being employed. NOT for lecturers ... just too difficult as our salary is below RM5k(many below RM4k).

To get out of E just means ... we are letting go of our security!! That is most difficult part that I found myself in ... emm ... merely months ago!! I was very reluctant to let go of my full-time job as I am being paid(not much, tho) for the few hours of teaching ... a job I loved! But, thanks to the new system, more paperwork ... and as I was drowning, I pulled myself out ... as I m going to be drown, anyway. Being in E, I do not have the freedom, flexibility and able to increase my ''value''.

Unless something forced us out of E(such as retrenchment), we will still feel that being in the rat-race, competing with our colleagues ... and hoping for higher increment/bonus ... and the cycles go on for years ... till retirement(60yrs old).

So .... you think you want out of E and have own B.

http://www.entrepreneur.com/article/234894

I thought of that too ... 8 years ago. I started to know my bro-in-law who has been successful doing biz(in KK), packaging/selling cooking ingredients and such. I was naïve ... I was working from 8 to 5pm with Inti College then. So, I started ... taking raw ''keropok ikan/udang'' from him, goreng, pack it and sell. He told me that was how he started some 25yrs ago!! I was inspired. But .. I do started to read more financial books back then. I have nothing much to lose ... except the RM1k capital I put in. Oh yes, I have to borrow that RM1k from my aunt. Pathetic, but determined.

zzzz ... poor me, with wrong mindset. Let us read the article below :

Mindset is probably the major determinant of success in pretty much every walk of life. In other words, the thinking patterns you habitually adopt largely govern the results you achieve. But different circumstances and situations require different mindsets, something that anyone looking to leave paid employment and strike out on their own, must be aware of. Unfortunately, not all would-be entrepreneurs understand the dramatic mindset shifts required, without which business success is unlikely. So how, as a one-time employee, will you have to think differently to succeed?

1. You're responsible for all decisions - good and bad. Entrepreneurs have an incredible opportunity to create something from nothing, in a way that's not possible working for someone else. But this means making big decisions about what must be done, when and how. You can't wait for things to happen, or for someone to tell you what to do, you must make them happen. Successful entrepreneurs also understand that opportunities may be short-lived, and so develop a sense of urgency that helps them achieve their goals.

2. You need to hold both short and long-term visions simultaneously. Work for others and you are mainly responsible for ensuring that what needs to be done now, is done. As an entrepreneur, you have to project your mind forward, thinking about the potential pitfalls and opportunities that lie around the corner, and making decisions based on uncertainty. This requires you to come to terms with the fact that what you do, or don't do, today, will have an impact on your business three months, even five years down the line.

3. Feeling uncomfortable is your new 'comfort zone.' As an employee, you're used to thinking 'inside the box' rather than outside it. As an entrepreneur, there is no box. You see what others don't, test new ideas, seize new territory, take risks. This requires courage, a thick skin and the ability to keep going despite rejection and skepticism.

4. Learning is a continuous journey. As an employee, you have a job description, requiring a specific skill-set. Being an entrepreneur involves learning many new skills, unless you have the funds to outsource what you're not good at or don't want to do. That could be learning to set up a spreadsheet, getting investors on board, marketing your ideas, crafting your perfect pitch, or using unfamiliar technology. What needs to be done, has to be done - there is no room for excuses.

5. Numbers don't lie. Where numbers are concerned, it's enough for most employees to know what's coming in and what's going out. As an entrepreneur, you'd better learn to love numbers fast, because your cash flow is what will keep you in - or out of - business. Ultimately, it's your sales, costs, profit and loss that will either give you sleepless nights or an enviable lifestyle. But without the guiding light of numbers, your business will be continually heading for the rocks.

6. Love your business, but be objective. As an employee, you can go on doing something you dislike just for the salary. As an entrepreneur, you will need to love your business because of the effort and long hours required. But you mustn't fall into the trap of thinking and acting like an employee in your own company, working 'in' rather than 'on' the business, a 'technician' rather than the person who steers it forward.

7. Enjoy breaking rules. As an employee, breaking the rules could mean dismissal. Entrepreneurs on the other hand, aren't interested in the status quo - they're always looking for ways to do things differently. That means acquiring a global perspective, always peering over the horizon, or at least towards it, to where the next big thing is waiting.

8. Time isn't linear. As an employee, you have a timetable to work to. As an entrepreneur, while you might not be tied to a desk or computer 24/7, you will always be thinking about your business, what it's doing well and what it could be doing better. There will be no respite - you will live and breathe it.

9. Start now. Most people under-estimate the time it takes to make the transition to entrepreneur, so it's sensible to start shifting your mindset while you're still employed, perhaps even setting up a business to run alongside. This could give you the opportunity to develop skills and build experience while still enjoying the safety-net of a salary, something that at some point you will almost certainly need to give up if you want to grow your business.

So, employee or entrepreneur? Is it time to switch? The choice is yours.

Ok ... so, I failed in my first venture and burnt RM1k capital, plus hours and hours of effort into it. You could find me goreng-keropok after college, from 6pm till 12midnight. haha ... wonder how I could be so determined. Hmm ... certainly not your normal lecturer-kinda.

I spent hours reading those financial books ... to change my MINDSET, the way I look at money, and personal finances as in general. From buying being frugal ... how to increase income ... to buying an insurance policy, I read about it. I want to learn about these so much.

It was VERY difficult time ... I vaguely can remember how I struggled and managed to pull myself out of that hole ... and still in a piece. I guess it is the "nothing to lose" and "never say quit" kinda attitude doing me well. Yes, it was always inside me. I could re-start everything ... re-learn and do well. Thank God for giving me such a unique attitude!!

Back to the topic ... why is it difficult to get out of E, besides security?

ATTITUDE.

Majority employees want easy-way out ... if possible, our colleagues or someone else do the job, it is not my job or ... time is up, I want to go home. These are employees attitude, which I hv seen over the years in my teaching line. Most lecturers DO NOT love their teaching job ... they are there because it pays them a salary, being employed. What to expect? So, they wont go extra-mile ... and too tough for them to re-learn new things.

To get out of E, we need SKILLS. It could be technical skills(which was my choice, to learn how to trade/invest) ... or entrepreneurship skills. It could be management skills ... we need to have the ATTITUDE to learn ... these skills, in order to be able to do something else, besides doing our job day-in day-out.

Do not be-little the skills we are picking up ... we might be able to utilize them, in future. Ever read ''successful stories''? DO read. We do not do things simply because it could give us this-that in short-term. Those instant-gratification mindset wont work here ... we need to use the term "susah dulu, senang kemudian" which appropriately used here, but too difficult for most of us ...

Until we could get that ''security'' out of our system, we will continue to be employed. That is comfort-zone.

Until we have the right ''attitude'' to go extra-miles ... to learn some skills, we will be comfortably stuck in whatever we think we could do.

I was a Math teacher ... for past 20plus years. I always thought that I could only teach Math, nothing else. I will not even bother to listen to anyone speaking about stock-market and viewed that as gambling. I was so rigid(my mind) ... and the only thing I loved is MATH. Nothing more. So, even I was lowly paid, I was comfortable ... teaching Math as I simply feel comfortable.

But, merely 8 years ago ... 1-2 years before I knew what market is, I started to learn about it. It took me time to open-up my mind ... change the way I see markets, or MONEY ... and things started to be unfold.

Nothing comes easy ... for sure. But, I guess we need to LOVE what we are doing. Otherwise, we will not be happy doing things in daily basis and hard to find the passion(to last).

Plan now if you are thinking of getting out of E. Remember, if u r ... then, u are the minority. Many around you will think of u as ''xiao'' ... or them might even dis-own you. The risk is there ... are u sure you want to risk it all? If I was in my late 20s or early 30s, I will be glad. But, I started to change my mindset when I was 40years old.

Age is just a number ... never too late to start anything. That I believed. But, I still feel that if I have known about this so-called financial mindset when I was in 30s, I will be well-off now.

Regretting? Never ... do what is best NOW. Plan ... and get out of E .. if you have a dream.

If not ... it is ok. Continue to be comfortable ... now, where is my coffee?

Time for another class 4pm. I had classes since 9.30am this morning.

Note : I will write about E as I was in E for 20plus years. Now, I am in S ... so, I will write more about S ... and B ... and I.

TEH