Modern American society has become one of dependence.
We have become spoiled by government handouts and ideologies that say, “Society owes us.”
Society owes you nothing, and sadly, nobody but your spouse and mother give a damn if you are successful or not. In fact, your spouse and mother may like the idea of you working in a “steady” and “secure” job your entire life.
If you wish to become a successful business owner, you must decide right now that you are the only one that can make it possible. Don't wait for the lottery, and don't dwell on your misfortunes. This is self-pity, and it will get you nowhere.
As we stated earlier, most successful people have buckets of failures in their lives. The difference is, they keep trying, while failures give up or never try in the first place.
To become successful, stop whining about the status quo, your upbringing, and the odds stacked against you. Pick up your shovel and start digging yourself out of the rut, today.
So, the seventh step to achieving wealth beyond reason is to accept personal responsibility for your own success.
What does it mean to “accept personal responsibility” for your life?
In the context of this book, accepting personal responsibility means:
· Recognizing that you are in charge of your life, which includes the choices and goals you set for yourself.
· Acknowledging the decisions you make as yours, and any credit for success, or blame for failure, rests entirely upon you.
· Taking care of your physical and mental health.
· Understanding that nobody cares about your financial future as much as you do.
Therefore, the impetus to achieve your financial goals must come from you. Nobody else is responsible for motivating you to succeed.
Accepting personal responsibility has many rewards, including a sense of self-reliance, rugged individualism, and the satisfaction of cutting your own trail through life.
On the other hand, refusing to accept personal responsibility can hurt you in a number of ways.
Failure to accept personal responsibility can:
· Foster of an attitude of dependency upon others.
· Destroy your ability to create and maintain positive relationships with others.
· Set you up for failure when your network of supporters tires of propping you up.
· Sabotage your ability to deal with fear and the uncertainty of the marketplace.
· Cause your physical and mental health to deteriorate.
People who are overly dependent upon others typically feel life is unfair, have a negative outlook on life and the opportunities life offers, and frequently place blame for their personal on others.
None of these characteristics are conducive to the wealth building process.
As a wealth builder, I had to learn to look inward for motivation and ideas. While it is helpful to maintain relationships with professionals, and to depend upon them for advice on such things as taxes, legal issues, and health matters, this does not excuse you from exhausting all of your personal resources prior to seeking help.
For example, I use an accountant to assist with my taxes, but throughout the year I maintain accurate records of my profit and losses, and strive to keep abreast of changing laws that may impact my tax status. And when it comes to health, I try to exercise regularly and eat a balanced diet. Yet every couple years I get a physical.
So, how do you become more responsible for your life?
You start by setting realistic goals and mapping out specific plans of action to achieve these goals. Follow this with the recognition that you alone are responsible for achieving these goals, and make the deliberate decision to work towards your goals.
I have found that with clearly defined goals, the motivation and energy to assume personal responsibility falls into place with mathematical precision.
Millionaire Secret #8
Creating Personal Wealth is a Numbers Game
If you can create enough sources of cash flow, outside your normal day job, you can realistically replace the need for a full time job.
Imagine, making the same money you make working 40 plus hours a week, dealing with traffic jams daily, putting up with slobs, and stressing over job security, without the headaches and hassles.
Is it possible?
Yes.
Therefore, the eighth step in your progression to personal wealth is to crunch the numbers, start small, and dream big.
One of my favorite pastimes is to crunch business opportunity and income producing numbers. If I wanted to replace a job that provided me with a $40,000 gross (before taxes) annual income, I would need to make $3,333 dollars per month, $769 per week, or $109 per day.
Hey, this is fun.
I only need enough alternative forms of income to generate $109 per day, and I could spend my future enjoying life, expanding my business ventures, and investing wisely for a secure future for my family.
For this example, let's think in terms of a round number, say $100.
What could you do to create $100 of cash flow into your hip national bank 365 days per year?
One hundred dollars may sound like a lot to make each and every day, using your own wits and not depending on a government handout or an employer’s paycheck, but it is a realistic number, starting from where you are at today.
I will not ask you to spend 40 plus hours a week hustling around town bothering people, or engaging in illegal or unethical activities. You can do this honestly and be proud to share your moneymaking ideas with your mother.
Consider this example. If you sold a product online for $10, you would only need to sell 10 units to make $100. If your item sold for $25, you would only need to sell 4 units. Or, if you sold a product for $769 profit, you would only have to sell one unit per week.
Using the vast array of mediums to market and sell products today, you could feasibly replace your job income with a fraction of the time and effort you expend serving the goals and dreams of your employer.
As in any business venture, there are risks, setbacks, and disappointments. However, if you will use due diligence in all of your decisions, seek expert advice whenever possible, and persist while others dropout or quit, you can do this.
You need to start by reading more about this concept. I recommend you read these books immediately:
The Automatic Millionaire, by David Bach
Rich Dad, Poor Dad, by Robert Kiyosaki
Multiple Streams of Income, by Robert G. Allen
It has been said that we are what we eat. This may be true, but I believe we are also what we dream. What are your dreams? Your goals? Your ambitions?
Finding success in any business endeavor begins with a dream, which must then be developed into concrete goals, as I discuss in the Life Plan Worksheet later in this book.
Once you have established specific goals, break these goals into tasks, and then into steps. For example, if you have a dream to create an income outside your primary job, this dream could become a goal to make $20,000 profit per year selling products on Ebay.
This goal could then be broken into tasks of identifying a hot product line, finding sources for your merchandise, and learning how to become a Powerseller on Ebay.
I use Ebay as an example only. There are dozens of other online opportunities available.
At this point in the goal setting process you must transform the tasks into steps. One step may be to visit local auctions and thrift shops for merchandise, another step may be to open Ebay and Paypal accounts, followed by actually listing items for sale, shipping the products and providing customer service.
Each step in this process must be deliberately accomplished to achieve success, but it all starts with a dream. Therefore, we are what we dream.
As a home-based entrepreneur you need to take a look at a variety of opportunities. Keep your expenditures and fees low, if not zero, and then choose 1-3 ideas that you feel would inspire you to take action.
Fortunes have been made on one idea, cleverly marketed, produced, and delivered to the customer.
Millionaire Secret #9
Use Other Peoples’ Time and Money
While the previous principle states that you must take action for yourself, please do not interpret this to mean “by yourself.”
Capitalism and personal wealth are built on the concepts of labor utilization and capital investment. In other words, using people and their money to build your empire.
Note that I did not say “abusing” people and their money. When you use people you treat them fairly and with respect. When you use other people's money, you repay it, with interest.
The service industry provides a clear example of this concept.
If the owner of a security agency is able to charge $20 per hour for security services, and pay his or her labor $10 per hour, plus an estimated 25% of gross labor costs in social security and worker’s compensation payments, the owner of this agency is able to realize $7.50 per hour in gross profit.
If the agency was able to land contracts sufficient to bill for say, 10,000 hours in a month, he or she could see over $75,000 per month in gross profit. This is the power of leverage in the form of utilizing the talents and resources of other people.
This concept befuddles the professional sector, such as doctors, dentists, and lawyers, who can only bill for services they personally provide.
Thus, the ninth step in acquiring wealth is to use other people’s time and money in an ethical and fair manner.
Consider a similar case of using borrowed money to make investments. If you had $10,000 to invest in a piece of income producing real estate, how much property could you control? There are some zero down deals out there, but generally, the down payment is going to represent about 10% of the property value.
Therefore, your $10,000 nest egg will control a $100,000 property. Rent on this property will average in the neighborhood of 1% of the value, so you may see $1,000 per month in rental income.
In this scenario, you have successfully used $90,000 of other people’s money to buy and control this property. What if you were able to obtain a loan for 100% of the property value?
With zero upfront cash invested, and a positive cash flow from rents, (with a breakeven scenario at minimum, keeping in mind maintenance costs and potential vacancies) your return on investment (ROI) is infinite.
With any real estate transaction, due diligence and professional assistance is critical to your success.
Seeking professional assistance is a perfect example of leveraging yourself by utilizing the talents and skills of other people.
A typical lawyer has spent approximately 6-7 years in college, three of those dedicated to the study of law. When you seek a lawyer’s advice, you are paying for access to this knowledge—a small fee compared to the alternative of years of your life spent in training, or hefty lawsuits from disregarding the law.
Likewise, the careful use of associates can propel your personal financial rocket into the stratosphere. Consider the example of the referral marketing business model, known as network marketing.
Through network marketing you are able to multiply your efforts to sell products through a team of like-minded associates. One look at the top income earners reported by www.businessforhome.org will show you how powerful this concept can be.
This is the power of the leverage and the wealth building potential inherent to using other peoples’ time and talents. And by the way, using the leverage of other people's time and money creates financial empires.
When an empire builder uses other people's money and labor he multiplies his potential, much like a hand tool magnifies the strength and utility of your hand.
Could you imagine taking lug nuts off your car without a wrench? Likewise, can you imagine building a business without the services of other people, the advice of legal and accounting professionals, or the backing of venture capitalists or lenders?
“The exploitation of people, or the taking of money with no intent to repay is wrong.
However, the fair use of other people's time and money is ethical, and is the key to building wealth in a capitalistic society.”
Your Millionaire Opportunity
Millionaire Secret #10
Stay Positive and Enthusiastic
Negative dead heads are everywhere.
Unfortunately, many of them are the people that love you the most.
People don't consciously destroy other people's dreams, but if you're not careful, all the good Samaritans around you will convince you that you cannot get ahead.
But don’t be too quick to blame others. In actuality, we are our worst enemies. Lack of confidence, a bad attitude, and self-criticism is more harmful than exposure to negative people, and must be overcome if you expect to find the motivation to master a market niche or climb the obstacles to success.
Recent bestselling books, such as “The Secret,” and “The Law of Attraction,” reflect the continued popularity of this subject. While positive thinking in itself will not make you wealthy, a good attitude, peppered with a dose of self-confidence, is the tenth step in your success ladder.
In Richard Bach's story Jonathan Livingston Seagull, Jonathan is ostracized for attempting to do things that normal seagulls shouldn't do.
His attempt to get ahead and prosper is scorned by the other seagulls until he is banned from the flock. Flying alone, he discovers the joys of life outside the realm of rotten fish and crowded beaches.
While this book is about 35 years old, its message is relevant to your pursuit of wealth today. I strongly recommend you buy a used copy from Amazon (by the way, selling used books on Amazon is a great home-based business).
Richard Bach's story is a metaphor for man and holds valuable lessons for all of us.
Are you struggling to rise above the crowd? Or to separate yourself from mediocrity and failure?
The harder you try, the more people will tell you it's impossible. Misery loves company, and the last thing people want is to see you rise above them.
Your job is to ignore the negative dead heads and remain focused on your goals.
Where do you get your information? Whose advice do you seek and/or follow? Where and how do you spend your free time? Who do you associate with?
The answers to these questions can be revealing and disturbing.
You may want to adopt these personal rules:
· Accept business and investment advice only from people who are currently making at least twice what you make.
· Do not let failures tell you how to succeed.
· Do not accept the opinions of losers as gospel.
· Do not spend your time with losers or unmotivated people.
· Do the most productive thing possible at any given time.
The best way I know to keep a positive mental attitude, and stay on track with your wealth building program, is to model yourself after successful people. Join clubs like Rotary International, Toastmasters International, The Jaycees, your local Chamber of Commerce, or whatever professional organization is in your community.
I'm not suggesting you join them all, just join one or two and become a reliable, active member. You'll rub shoulders with the doers in your community, meet influential people, and see success in action.
An element of positive thinking is the reliance upon luck for your success. While luck has its place in any endeavor, people are often misguided by their definition of luck.
Luck is a nickname for hard work, perseverance, and making the right choices relevant to opportunities. Plain and simple, counting on luck is for losers. I believe luck comes to those who prepare for it.
How do you prepare for luck?
You prepare for luck by educating yourself about the business and investment opportunities you're interested in, focusing your energies and financial resources on building your empire, and being at the port when your ship comes in.
The bottom line: Don't count on luck to make you wealthy. Successful people make their own luck. They don't wait for it.
“Having a positive mental attitude will not create success or financial wealth in itself.
However, a good attitude will see you through the tough times and motivate you to keep trying while others have long since packed their bags and gone home.”
Your Millionaire Opportunity
Millionaire Secret #11
Create Passive and Portfolio Income
The true meaning of wealth is freedom.
· Freedom to choose when and where you will spend your life.
· Freedom to choose whom you will spend your life with.
· Freedom to buy the things that make life pleasant, and to travel to the places others only dream about.
In short, wealth gives you time freedom.
Wealth is not the money in your bank account, but the freedom that money gives you.
If you ever wish to free yourself from the chains of slave labor you must first establish automatic pilots. Automatic pilots are investments and businesses that essentially run themselves or are run by others while still managing to throw off income to you.
Owning a piece of rental property managed by an agent and creating a positive cash flow is an example of an autopilot.
Thus, step eleven in the wealth building process is to create passive and portfolio income.
I know a young man in my community who purchased four single-family homes, became licensed by the county to operate the homes as group homes for developmentally disabled adults, and recruited and trained staff to run the homes.
Less than five years later he is a multi-millionaire, and rarely spends more than 10 hours per month monitoring his business.
Not every business is suited for absentee ownership, and tight control mechanisms must be put into place; but, the potential for wealth creation in businesses that do not require the owner’s presence is phenomenal.
If you could do something to create an automatic pilot that gave you $100 per month, could you repeat it? How many $100 a month autopilots will it take to equal your current income?
Automatic pilots are the true representation of wealth because they provide you with an income, while allowing you the freedom to enjoy it.
As stated earlier, passive and portfolio income is generally created from the ownership or control of assets, including those listed below:
· Income producing real estate
· Stocks and bonds
· Interest from savings
· Royalties from intellectual property
Your challenge in this important step is to figure out how and where to acquire income producing assets.
It doesn’t happen by spending more than you earn, failing to save and build a capital base, or spending your saved money foolishly on worthless doodads that depreciate the moment you purchase them.
Creating automatic pilots is the essence of Warren Buffett’s philosophy of investment. While he remains highly involved in the day-to-day activities of his businesses and investments, Buffett has created multiple streams of income, becoming a billionaire in the process.
In a previous principle I discussed how a hypothetical security guard firm could create wealth for the owner. Taken a step further, the business owner could recruit and train a manager to oversee the daily activity of this business. He could also contract with an accountant to do his billing, taxes, and payroll.
The long-term success of operating a hands-off business like this will be contingent on the owner’s creation of an operations manual, enforcement of quality standards, and strict billing and payroll control mechanisms. This is doable, and happens every day in the business world.
Robert Kiyosaki repeatedly makes this point in his Rich Dad, Poor Dad books.
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