Showing posts with label wealth. Show all posts
Showing posts with label wealth. Show all posts
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want to make money? understand the multiplying effect

How much money do you want to make every
year? If you haven’t seriously asked yourself
that, you should. Why wouldn’t you? It’s a
very easy question to answer. And until you’ve
really thought about it, it’s impossible to
determine how you’re going to get there.
When I was in my early twenties, my father
sat me down and asked me that same
question, point blank. The advice he gave me
after fundamentally changed the way I
thought about work and led me to my current
career.
I told him I wanted to make $100,000 a year.
At the time, I thought that was a lot of
money. You’ll work for about another 30 years,
he told me. So how much money would I make
in my lifetime? I did the math: $3 million.

He asked, was I happy with that amount? If I
wasn’t, what was I going to do about it?
My father was a smart man. Three million
didn’t seem like a lot of money over 30 years,
given taxes and living expenses. The math
didn’t add up: Life is short, and it didn’t
seem like enough for a lifetime of work. When
I looked at the last paycheck I had received, I
wasn’t happy.
My father told me the only way to create
wealth was to find a business opportunity
that had a multiplying effect and that didn’t
require my presence. It took me some time to
figure out what that meant. The latter part
was easy enough. He explained, “A doctor can
only help so many people in a day and in a
year. A lawyer can only try so many cases.” To
create great wealth, I needed to find
something that didn’t require my hands or my
presence. Fair enough.
The second was trickier: What did having a
multiplying effect mean? He told me that I
needed to piggyback on or create something
that would be used over and over again -- that
people never stopped needing. In other
words, he explained to me the idea of
collecting a royalty. That made sense to me.
And it’s what spurred me to start licensing
my ideas.

Today, there are many examples of businesses
that share these qualities. App developers, for
one. Franchises are another. And of course,
there are countless examples of more
traditional methods, like the stock market,
bonds and real estate.
For me, the concept of the multiplying effect
was tremendously attractive. Some people
derive pleasure and contentment from being
masters of their craft, from working day in and
day out with their hands. That’s not me. I
wanted to make money and I wanted to be
able to do new things, to constantly challenge
myself in new ways.
How much money do you want to make? How
are you going to make it? Finding my
multiplying effect -- writing a book, offering a
course and licensing my ideas -- has allowed
me to live where I want, have people working
for me elsewhere and be my own boss. It is
incredibly freeing. It works for me.
I’m not saying it’s for everyone. But I want
you to critically ask yourself how much you
want to make. And do the math.

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A Millionaire Mindset in 30 Sentences - Part One

original article: Dragos rouas

One of the most common questions from media people after my first successful exit as an entrepreneur was: “ After 10 years of online business , are you a millionaire now ?”. The value of the transaction was confidential, so I decided to give them a somehow foggy answer : “Well , I was a millionaire while I had the business , I just didn’ t have it transformed into cash…” Without exception, they were puzzled by this answer . That reinforced once again for me the very popular obsession for money as a number. I wrote about money as an energy form before , so I won’ t talk about it again, feel free to read that post if you haven’t read it yet. Basically , for me,  the most important thing about money is not its number or social value , but the raw energy it provides to you .

Being a millionaire out of an online business is not so rare these days anyway , so the question was even funnier to me. But the “being a millionaire obsession ” is still very common , and as I said , that question was one of the most frequent questions I had to answer , and not only from media people , if I think a little bit . And then I sat down and tried to understand what is a millionaire .

From a financial standpoint is clear: a guy with more than one million in bank. But from my own standpoint it wasn ’t like this. Being a millionaire is not a question of money into bank . I was very honest when I responded that I was a millionaire before selling the business , and this is how I felt . I think being a millionaire is more of a mindset than a bank statement. Being in a millionaire mindset means you can access that amount of money if you want . You just can . It ’s not compulsory, or needed . But it ’s like an insurance. If you need that amount, you can have it . By selling the asset’ s of your company , for instance. And than I started to think about the elements of such a mindset . I thought about what I have done in the last 10 years , and how all of this rearranged in this mindset . I come up with around 30 sentences, which I will try to describe below. Keep in mind that these are my personal experiences only, and they may or may not apply to your own lifestyle, expectations or goals . Also , this is not even remotely a manual of how to become a millionaire .

As I told you , I don’ t know much about it and by reading this post you won’ t learn how to put a million cash in your bank account. All I know is how I created a millionaire mindset , without having the physical money. Weather you should manifest or not the physical money is entirely up to you . I will try to split the list into 10 sentences per post. Here we go, with the first 10:

1 . Don ’t buy stuff you don’ t want just because you need to spend money, buy something you really really want

That’ s a tremendous money saver . It deals with all your impulse shopping crisis , or social pressure for cool gadgets , or you name it . If you manage to really buy things just because you need them , and not because you need to spend money in order to have some thrills and chills out of it , you ’ re half way there . You’re piling energy .

2 . Don ’t be afraid to want things , regardless of their money value

That could be interpreted as contradicting with the first sentence but it isn’ t. It ’s about giving yourself freedom to want what you really want , without putting a tag or a limit on it. It might costs millions of dollars , but allow yourself to want that thing , even if you don’t have millions of dollars . Yet. You will attract that money. Eventually .

3 . If you really really want to have something, just have it , don’ t fantasize about having it

Again, you might think this is opposed to the last sentence , but it isn’ t. It ’s about really going after what you want, until you have it. Just go and have that car , or that computer, or that relationship if you really, really want it . Don’t settle for less. It might feel like you don’t have the resources for it at that exact moment, but that ’s an indicator of the fact that you don’t want that thing enough. Yet .

4 . Carry more cash in your wallet

Might sound dumb, I agree. But it just works. Make your wallet capable to accommodate your day to day operations . If you aim for millions of dollars but you are not able to pay your parking lot , you won’t have those millions, that’s for sure . Carry more cash but don’ t spend more cash if you don’ t need that ( that would be sentence no. 1 , in case you already forget it ;-) )

5 . Understand what people want from you

The easiest and most enjoying way to make money is to get it in exchange for the value you provide. If you ’ re going to make money this way, it ’ s crucial to know what people want from you . It ’s incredible how most of the people are making assumptions about what they are supposed to give. Just make sure that you know exactly what people want from you . And, if you can , deliver .

6 . Understand what you can offer to people

Closely related to no. 5 . If you get to know what people want from you , start finding what you can offer. Maybe they are asking you something impossible or two draining form you ? Look inside yourself , assess your skills and values, and see where you can do best. And then try to connect with people that seem to be in need for what you seem to have to offer. And deliver .

7 . Don ’t argue , win or lose Especially if you work in partnerships, this is one useful way to gain some time on your side

. You will have different opinions at some point , that’s for sure . Trying too hard to win a fight with your associate (or your client , or your employee) will just kick you off the road. Accept the fact that you can either lose or win , and chose one. And then move on .

8 . Don ’t think about the money , think about what you can do with the money

This is difficult because there is a whole management pressure to think in terms of budgeting stuff. In terms of: x money for x things. Instead, try to use : I want to do this thing , and for that I will need that amount of money. It ’s not about forgetting the budgeting , but about trashing away the numbers in money, and only think at their creative support for your purpose .

9 . Keep a healthy lifestyle Can’t stress enough on this one.

Not wasting your body and mind energy is the greatest gift you can make to yourself , regardless of your millionaire status . And starting to have a congruent body vibration will soon attract similar vibrations around you . If you ’ re wasting your time in dully yet spectacular activities , which in turns puts your body to unneeded stress, then expect some delays in your goal to become a millionaire . Money likes healthy people .

10. Say only what you want to say Don’t speak if you don’ t have to, just because you can .

That sentence can have a dramatically impact on your activities . Some people will want to take your mind with their mind , just to play you , or to abuse you . Although it might be useful from an experimental standpoint, if you really want to attract more money , just say only what you want to say , and don’ t allow yourself to be fooled around . It ’ s much more complicated than it sounds , I know… So, that’s it for the first part , hope it was at least some food for thoughts . In the next post I’ ll share my next 10 sentences for a millionaire mindset . Meanwhile , feel free to comment on those first 10.

also related: the millionaires mindset

you may also like: Billionaires are actually smarter than us,Study shows.

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The Millionaire Mind

What do millionaires know that the rest of us don’t? Perhaps not as much as you think. The secret to becoming a millionaire might be readily accessible to all of us and could boil down to having fun at work, applying self-discipline and forming a plan and sticking to it. Below are some characteristics that many millionaires share and if you follow and model millionaire behavior yourself you could be on the path to creating wealth and security for yourself and your family far beyond your expectations: Work hard at a job you truly enjoy and have a passion for. Millionaires love their work and consider it their calling in life. You cannot put the “heart and soul” effort it takes to succeed at something if you do not find joy in doing it. Be disciplined, committed and tenacious in achieving your goals. Too many of us give up too soon and fall short of reaching our potential. If only we had stayed the course and remembered that you can’t reach the finish line if you drop out of the race. Note the seemingly simple guy or gal living next door to you could be a millionaire. Frequently the average millionaire is not flashy in their spending habits and indeed they are quite conservative in how and where their money flows, it’s never spent freely or thoughtlessly. Millionaires always pay themselves first for they realize that it is they, themselves who they are truly working for. Saving consistently and investing wisely is the cornerstone of millionaire behavior. Establishing a financial plan, either with the assistance of an investment advisor or on their own, and then working their plan is a primary objective. A millionaire devotes financial resources to appreciating assets, not depreciating assets. Examples of appreciating assets include those investments which typically gain value the longer you hold them (i.e. real estate, stocks, bonds, mutual funds) and deprecating asset examples include those investments which typically drop in value once you acquire them (i.e. autos, electronics, appliances, clothing). Millionaires know that making money overnight is not the goal or the key to creating wealth but maintaining good wealth creating habits and building wealth slowly but surely is. more on the mollionairrs mind read: baininvestor.com

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Do Skirts Get Shorter When Wealth Declines?

George Taylor, an economist at Wharton School in the 1920’s, claimed there was an inverse relationship between the state of the economy and skirt lengths. Today we discuss whether or not rising skirt lengths could fuel economic growth with new research suggesting that men exposed to sexily-dressed women increase their preference for expensive status goods. Taylor made the following argument. He said that in good economic times women shortened their skirts to show off their silk stockings but when times were bad they lengthened them to hide that they couldn’t afford stockings. So when the economy boomed skirts were short and when it lagged skirts were longer. I don’t think there is any evidence that this theory held up in the long run, but more recently some of my favorite marketing / evolutionary biology researchers decided to have one of their grad students (okay, that is pure speculation on my part) get dolled up in a mini skirt to see if men in an experimental setting changed their preference for status products when the experiment was conducted by a woman dressed in a manner that would have made George Taylor blush.* Here is how the experiment worked. The experimenter (an attractive young woman) asked each participant to view ten images, each for one second. Each of the ten images contained a picture of six products arranged in a wheel. The products were both functional (i.e. rolls of toilet paper) or status (i.e. a Porsche, Aston Martin or Maserati). After they viewed the images, the experimenter then instructed the participant to make a list of as many of the products as possible in 25 seconds. Presumably the products they listed were the ones that they most immediately recalled from the images. Pretty simple experiment. The interesting part is that in half the experiments the experimenter dressed in plain clothing (think farm girl with glasses) and in the other half she wore a jean mini skirt, a low cut top and heels (an early version of the paper is available here with pictures of the experimenter in both of her guises and an example of the product images). It turns out that men who indicated that they were in a committed relationship recalled roughly the same proportion of status goods when the experimenter was in her sexy clothes (33%) as when she was in her plain clothes (35%). The men who indicated that they were single, however, recalled significantly more status goods when the experimenter wore a mini skirt (43%) than they did when she was in her farm clothes (33%). Independent of their relationship status, both types of men recalled a lower proportion of functional products when the experimenter was in her mini skirt. I suspect they were distracted. The evolutionary argument is that when a single man is in the presence of an attractive, young woman his preference for products turns to those that can help him secure her as a mate. He assumes, perhaps subconsciously, that the products that will attract her are those that indicate his wealth. This raises an interesting point. As women’s fashion has evolved over time in a way that makes women more conspicuously sexual, has this changed men’s preference for products that more conspicuously demonstrate their wealth and status? The answer to this question is probably no. One of the fundamental principles of economics is that the price of a good is related to its relative scarcity. If scantily clad women are scarce, then their price is high (where here the “price” is the amount a man must spend in order to demonstrate his affluence to a relatively attractive woman). When scantily clad women increase in abundance, however, their price is bound to fall as men no longer need to compete with each other over the relatively scarce good. In fact, as hemlines go up, conspicuous consumption of status goods might fall for precisely this reason. What has become relatively scarce over the past few years is affluent men. Can this be driving fashion trends that suggest shorter hemlines this season? Maybe that is the real effect that George Taylor observed all those years ago.
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