Episode Transcript
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Speaker (00:00):
If your income stopped
today, how long could you
(00:03):
survive?
If that question makes younervous, this episode is for
you.
Speaker 2 (00:08):
Welcome back,
everybody.
Kenny Johnson here, recordingfrom the new baby room.
That's right.
we are getting some work done onour house right now and we had a
den, which was our sort of cavethat, was the TV room, the, just
like the take a nap room.
And as we are adding anotherfamily member to the household,
(00:31):
here I am.
And I just want to give huge,huge praise for, all you
contractors out there who aredoing work.
granted you are the sometimesbane of my existence in regard
to frustrations and things nothappening the way I want them to
go.
but also you are the ones thatkeep us going.
(00:55):
moving forward, I was acontractor in the landscaping
business for 10 years.
And, I have just a huge respectfor those that are doing that.
And of course I'm not perfect inmy management skills or,
investing, skills.
So there's no perfect person outthere.
(01:16):
But, the guy that I'm workingwith now, he's just doing a
great job.
he worked really late today andI actually wasn't happy that he
was working late because I feellike he needed to be home, but,
it's looking really good.
So guys, today's episode, we'regoing to be talking about a book
review.
this book is going to be.
One of the books that wasinstrumental in my early,
(01:40):
mindset, development.
And honestly, I could do withanother reread of this one
because it just has, I would saytimeless truths.
this is a Robert Kiyosaki bookand it is not rich dad, poor
dad.
As some of you are probablythinking, this one I would
actually say is better than thatbook.
Rich Dad Poor Dad gets all thefame and glory in regards to,
(02:01):
oh, that book changed my life.
however, this book reallyshifted how I view money,
really.
It's how I view money, how Iview my time with money, which I
think is always that, just neverending epiphany thing of wow,
what if I did this and oh, I'vebeen doing it wrong.
the book is called CashflowQuadrant.
And what I love about this bookis it really spells out in a
(02:26):
black and white way how moneymoves.
And there's four quadrants.
We'll get into that soon.
we're going to dive into thatbook today.
so if you're someone who isfeeling like you're lit in a
little bit of a rat race, andI'm not trying to say, Hey,
change this one thing and yourlife will all of a sudden align.
But one of my goals throughthese episodes is I wanna be
(02:47):
able to supplement, to free up,to give hope, to give, a release
valve to my dad out there whois, just grinding away.
the grind isn't all bad.
sometimes, I get big highs whenI get a victory in my job and I
try to look for, I try to findthose victories.
Even if I feel like I had a badday, I try to find what was it
(03:08):
that happened today that I canget excited about.
but I know I get the mostexcited when I'm freed up,
stress, stress free with thefam.
Feeling good about my future,trusting in the Lord for,
everything, my daily bread.
and just doing what I would sayis being a good steward of the
resources that God's giving me.
(03:29):
So in that way, I do feel likeworking till, seven, eight
o'clock every day, or not beingable to turn it off, that's a
problem.
And we deal with those issues indifferent ways.
and of course my opinion may bedifferent than yours, but my
goal in reaching the audiencethat I want to reach is, Hey, I
know you want to be with yourfamily more, or you want to be
(03:52):
able to turn off the work.
and you want to be fully presentwhen you show up with your wife
and with your kids.
you want to be able to give toyour community, to your
neighbors and just, your church.
Like you want to have somemargin in your life.
And, as your, If you'resucceeding and working hard in
your job, let's find some waysthat we can make better use of
(04:16):
our time, and invest wisely sothat the returns that we get
from our financial position willallow, for more options for you
presently with your kids as wellas down the road in the future.
All right.
the book starts with the ideaof, feeling trapped.
have you ever felt trapped inthe daily grind and you're
(04:37):
trading your time for money withno end in sight?
I have definitely felt this way.
And in my thirties, earlythirties, I was determined to
find another way.
What if I told you that thisother way, involved stepping out
of the endless cycle of workinto financial freedom?
(04:57):
Sounds great.
today we're going to be divinginto Robert Kiyosaki's Cashflow
Quadrant.
And I'm gonna be telling you howyou can shift from being an
employee or self employed tobecoming a business owner or
investor.
Those are the four quadrantsthere.
my story, it begins with,feeling like I needed to provide
for my family, and had noconcept of what that meant.
(05:21):
Time wise, it meant I need tomake this amount of money.
don't care what it takes to getthere.
I have all the energy in theworld and I'm highly motivated.
And, once I can hit this number,I'm good.
I'm gold.
And sadly, when my marriagestarted, drifting and I would
say eroding and I realized Iwasn't really knowing my son,
(05:45):
who was three at the time, as,as well as I wanted to, I felt
like this was just normal to begone a lot.
something had to change I wouldsay I wasn't really focusing on
my health.
went to church when I could,evenings, I can remember
actually working all day,getting home at.
Let's just say six o'clock andthen once dinner was over
(06:09):
opening up my computer and justgetting back to work and that
was fun in my mind because I'mgetting so much done, but I'm
looking back and just nodding myhead saying, Oh man, what was I
thinking?
a lot of time and energy putinto something that
unfortunately wasn't giving methe returns I wanted.
if you're listening and you'rehopefully not feeling that way
(06:29):
presently, but maybe you havestepped into that role or maybe
there's seasons of your job oryour life that you're in that as
well.
And let me tell you this folks,I feel very much in that role.
Um, maybe more so recently asI'm building this business of,
syndications with differentpartners and in capital raising,
(06:51):
my background is very heavily inthe real estate world, doing
single family home rentals andfixing flips and, and I find
myself as that employee andbeing drawn occasionally toward,
man, I could just fix these.
These yard problems on thishouse, or replace these light
fixtures, or, clean this thingand save some money.
(07:15):
so that is the that's the topictoday is, am I wrong in thinking
that way?
Are you wrong?
And say, man, I could save moneyby just doing this myself.
and how often are you doingthings?
and this is one of those thingstoo, where if you're managing
your schedule.
You don't just look at one hour,you've got to look at basically
all 24 hours of the day andthat's seven days a week and
(07:35):
maybe even go into like, 12weeks of the first quarter and
start seeing like, where's mytime going?
I have a friend right now whois, contractor painter.
And him and I have been in thesame journey, I've probably been
a little bit in front of himjust in regards to starting,
investing into homes, but he'sbeen around homes, I would say
(07:56):
most of his, career as thecontractor and I inspired him
and encouraged him to, take thatleap to be more of the investor
and to, let your money work hardfor you or, find money to borrow
and let that money work for youand make sure, obviously you're,
paying people back and makingyour payments on time and all
that good stuff.
he experienced his firsteviction this week and, he's
(08:17):
kept telling me stories aboutit.
And I've been through aneviction and boy, it is one of
the worst experiences you canhave.
I tell you this story because.
You can fall into some trapsalong the way of being an
investor.
The traps are, Hey, if I buythis rental or if I invest in
this thing, I don't have toworry anymore.
It's all taken care of.
(08:39):
I hired a property manager.
I, I don't, I partnered withthis guy and he has a flawless
record.
And there's just, there's noperfect investment out there.
there's a lot that have very lowrisks for many reasons, but
buying a rental and managingthat, you're opening yourself up
to some pitfalls of some timesucks, some energy sucks.
(09:03):
And, um.
and that's not the end of theworld.
I'm not saying my friend here isdoing everything wrong, but I
think he's realizing, man,there's some things I just, I
wanna avoid.
I don't wanna put myself in thisposition again.
one of the reasons why I gotinto capital raising is I bought
a lot of homes at once.
I bought 10 houses in 2023, andI thought I was doing everything
(09:24):
right because I was, investingand buying these things and
letting my money work for me.
but very soon I realized thatthe project management side of
flipping homes and, convertingthese, projects into rentals was
no easy task.
And even now, two years later,managing these crews to get
(09:45):
things done is a struggle forme.
And I don't know if I'll ever,feel like I've got everything
done right.
Where I am, letting my moneywork for me and I'm financially
free and someone else is doingall this stuff for me.
No, as the owner, you're in thetrenches.
you're liable for anything thatgoes wrong and you can build a
team around you.
And that's really what I'munderstanding more in experience
(10:07):
now.
But, man, it's been so nice tobe able to join teams that are
already up and running.
and then just learn from themand promote them and figure out
how to make their business groweven bigger, to bring investors
into, these other very wellexecuting teams right now and
(10:28):
operating teams.
All right.
the four quadrants, I want toexplain them and, and just make
sure for those that maybe youhave heard this book or, I've
not heard of this book.
There's just some base workthat's laid here.
So the four quadrants are E andS.
Those are on the left side.
And then on the right, there's aB and an I.
(10:50):
the E stands for employee, andthis is on the left side.
And the employee exchanges timefor money.
And there's limited control overincome.
So I would say that it's amajority, that's a majority of
this world today, is theemployee quadrant.
the next quadrant is the S andthat stands for self employed.
(11:11):
So there's more control here.
you own your own business, butyou're still trading time for
money.
So when I started flippinghomes, that was not me.
I would say becoming a, Iinvestor that was me or even
being a business owner.
which is the other one I was, myown boss, but I was still.
(11:31):
the other two quadrants that Italked about, those on the right
side, B for business owner.
this is leveraging systems andteams to create income.
And the example that was used inthe book was if you as a
business owner can leave yourcompany for six months and when
you get back, your business isdoing better.
(11:52):
Then when you were there Thenyou have reached that B.
I think they even said But thisisn't just like a you and two
guys deal.
This is a more robust B businessand Then the last one is I,
investors.
investors make money work forthem through assets and you hear
(12:12):
this and I want to encourageyou, if you're an employee or a
self employed person, you don'thave to stay there.
You can learn new skills, investstrategically and make the
shift.
So my call to action is thinkabout where you are in the
quadrant today and what's onesmall step you can take toward
becoming a business owner orinvestor.
(12:33):
don't be discouraged if you'relike, man, I've been an E my
whole life.
And Kenny's trying to tell me,I've been doing it wrong because
I think the truth is thatthere's a lot of benefits in
being an employee or a selfemployed person.
some of us love our jobs.
is it possible?
Yes.
There's things that I think wewant to all have that freedom
(12:55):
in.
And that's where I can come inand help if you're someone who
feels like, man, I'm justlooking for some more freedom.
I have limited control over myday to day.
and I would think that'sbecause, and I am just tied to
the income of this property.
If I don't have this job, if I'mnot performing, I'm not there, 6
(13:16):
AM, leading these meetings or,I'm on call, there's a Saturday,
someone came in, one of ourclients needs help and I have to
be available for them.
that's where I feel like, let'ssee how we can make a step out
of that.
when you really feel like thevalues that you have are not
lining up with your company'svalues or your just decisions in
(13:38):
your role right now.
and you feel like, man, if thisjob goes away, like our income
is in jeopardy.
real estate investing allows asupplement to that.
this is not an episode to say,quit your jobs and become an
active real estate investor.
this is really meant to say,understand how money is working
(14:00):
through you.
Do you only get paid when youclock in and clock out?
or there are things that aremaking money for you while
you're not doing anything, Ithink one of the best feelings
that I've experienced recently.
And I'm someone that really, Iget like tired spending money.
if I ever go shopping, which isone of my least favorite
activities, just, buying thethree things or doing research
(14:22):
to find the right TV or whateverit is.
It is just, it drains me.
However, when I am spendingmoney on an employee that I was
working with me or, buying aflip home.
And getting that funded, that isone of the like best feelings
ever of just, Hey, I've justspent money on something that's
(14:42):
going to be making money.
So like investing in theseassets, buying assets, things
that make money for you,investing in people when you're,
I don't know if it's called, Idon't know if it's called envy
or not, but when I talk topeople who have a team, we had
Zach Springer on the episode andhe told me about.
He's got, five team members andhe's teaching them how to sell.
(15:02):
I get man, that is, that's soexciting.
Like you're impacting people andequipping them and seeing, and
hey, it comes with downsides.
There's maybe drama, there'sthere, there are problems,
everyone has their ownmotivation tick, but, man, it's
so exciting to be able to builda team, all with, a goal in mind
and to hit that goal.
as you are, going through yourtime, blocking, time management,
(15:28):
figuring out, where am I at?
Am I balanced in all mydifferent, hats and the health
and the spiritual and, financialand my marriage and my kids?
I would encourage you toanalyze.
Am I spending a lot of my timein the E?
Or S categories, or am I takingsteps to be more of an eye or a
B as a business owner orinvestor and, and what those
(15:52):
benefits would be for you.
I'm going to end with just alittle personal story.
I have been really getting worndown, last couple of weeks, my,
my health hasn't been great withjust some sicknesses and.
it's just lingered for a whilewhile I'm finally back.
I feel like I'm, I've been inthe gym, I feel like I'm making,
(16:13):
better use of my time, justmore, more engaged with like
tasks.
however, I get, I have beengetting worn down a lot.
My wife and I both, with ourdaughter, she's just been, she's
been hard.
She's got a lot of energy.
She is almost four now.
And if you're in this stage, youknow exactly where I'm coming
from and you're probably, forthose that are out of this
(16:35):
stage, I'm sure you're smilinglike, Oh yeah, I remember that.
But, I had something reallyexciting happen today.
We've just been really pouringinto her, my wife and I, trying
to be patient.
she's just bouncing off thewalls, screaming, she's, she's
zero to a hundred with, nothrottle.
It's just really, it's, andthen, and it's something that
I'm thankful for to a degree.
(16:56):
She is, my son has not been likethat.
So she's a new person to us inthis way.
But tonight, I'm laying downwith her.
We're trying to get her tosleep, going through the bedtime
routine.
And I was just praying for herand trying to be as
Understanding as I can with,what she's thinking about, and
she's got all these littlequestions about Anastasia, and
(17:19):
princesses, and Star Fox, justlike random stuff.
And, I feel like I answer allher questions the best I can,
and then we're laying there andshe says, Hey dad, can I tell
you something?
And I was like, yeah.
And she sits up a little bit,and I look up at her and she
goes, I just want to let youknow I love you.
And I was like, oh boy, that'sspecial.
(17:40):
So I was very encouragedtonight.
So hey, for my dad's out there,whether you're a girl, dad or a
boy, dad, find those moments andhold onto them, hold onto them
tight.
We got an interview coming upnext week with a guy named
Vaughn Bethel and he is local tome in South Carolina.
He's someone that I've.
known from a distance in regardsto, his line of work, he, has a
(18:04):
company called REI Junkies,wholesaler, gets a lot of deals
and, tries to, to sell them topeople like me to have them
flipped, or he holds ontohimself.
So I'm excited to see, what he'sup to now and hear how he's,
utilizing his gifts andstrengths to, be successful at
home and in the business.
(18:24):
So guys, thanks for joining metoday on the invested fathers.
find me on LinkedIn.
I'm very involved on LinkedInright now.
If there's anything I can do foryou, please reach out and invest
wisely.