Archives for January 2019

When it comes to managing and investing money, the rich are very different from the non-rich. From my five-year study of the rich and the poor, I discovered that there were certain common money management mistakes the rich never seemed to make.

The Rich Avoid Uneducated Risk Taking

The rich do their homework. They study investments for months before deciding to invest any of their money. They eschew those emotion-based “can’t lose” investments that always seem to do the very opposite. The non-rich don’t do their homework. They don’t study investments. They take uneducated risk.

The Rich Avoid Fad Investing 

The rich don’t always take the advice of their “experts”, but they do seek feedback from them regarding potential investments. They don’t seek out investment advice from their friends or family, unless their friends or family happen to be “experts”. As a result, they don’t fall victim to investing their money in hot tips or the latest fad.

The Rich Don’t Panic 

Because the rich have spent many years building their wealth, they have the financial resources, the liquidity, to weather the volatility of the stock market. As a result, they do not panic, like the non-rich tend to do, when market conditions turn south. The rich stick to their plan and ride out the down markets, and continue to buy, while everybody else is selling.

The Rich Don’t Put All of Their Eggs in One Basket

Most of the non-rich have their money tied up in a retirement account or some singular investment account that is invested primarily in the stock market. Conversely, the rich diversify their investing. They have their money invested in many baskets:

• Some of their money is in the stock market
• Some of their money is invested in real estate rental property
• Some of their money is invested in limited partnerships
• Some of their money is invested in TICS
• some of their money is invested in triple net leases
• Some of their money is invested in private equity funds
• Some of their money is invested in bonds and other fixed investments

The Rich Do Not Depend on Hope and a Prayer

The rich use financial advisors to help them craft a well-thought out financial plan that they will follow for many years, or until the financial goals of the plan are achieved. The non-rich do not create financial plans. They wing it. Their investment strategy is hope and a prayer.

The Rich Do Not Succumb to Unbridled Optimism

The rich make investments anchored in reality. They do not go into investments with rose-colored glasses on. They understand that investing is a long-term propositioin. They expect the stock market to go up and down, numerous times, while they are investing in it. The non-rich see only the upside while investing. When the market does eventually turn, their rose-colored glasses break and they run for the hills, pulling their money out as fast as they can.

The Rich Don’t Liquidate

Because the rich follow a plan, they don’t liquidate their investments at the first sign of market volatility. They stay invested. And they continue to invest, even when the market is down.

The Rich Avoid the Herd Mindset

The rich do not follow the herd when it comes to investing. They follow their plan. The non-rich make investments based on what everybody else is doing. Their plan is to follow the herd.

When you think of successful entrepreneurs, what images immediately come to mind?

Do you see a well-dressed individual surrounded by a posse, jet-setting from one exciting place to the next in private planes, exotic cars and yachts?

Or do you see someone sitting all alone in their sweat pants, behind a desk, computer or stack of books at 5 am in the morning working, all alone?

To the outside observer, the entrepreneur’s journey is invisible. But to the entrepreneur, that journey is real, unforgettable and not at all an easy one.

With some entrepreneurs, their journey towards success makes them feel like they are running at breakneck speed on a treadmill, where, despite their best daily efforts, little to no progress is made.

For other entrepreneurs, their journey feels like a slow walk through hell. A hell in which they must overcome one hurdle after another, one let down after another, one disappointment after another, one problem after another or one rejection after another.

Lastly, there are the entrepreneurs who are consistently ignored. Important people, people with power and influence, don’t respond to their emails, don’t return their phone calls and cancel important meetings at the last minute.

The early stages of being an entrepreneur are like being stuck in a cave for many years, the outside world oblivious to their amazing talents, skills, products or services.

Perhaps the worst part about the entrepreneur’s journey is knowing that, with just a little luck, everything could change in a heartbeat. But that luck, unfortunately, eludes them for many years.

In short, it’s not a life you would wish on your worst enemy, let alone a family member or friend.

So, what keeps most entrepreneurs in the game? What magical superpowers do successful entrepreneurs have that allows them to persist for so many years, before success eventually visits them?

Three things:

1. Belief in Themselves
2. Eternal Optimism and
3. Love For the Work That They Do

Successful entrepreneurs just believe they are good enough, or will become good enough to succeed.

Successful entrepreneurs are optimistic that they will succeed and that all of the hard work and struggle will pay big dividends down the road.

Successful entrepreneurs love the work that they do. That love of work, or passion for what they do, is the source of their energy, motivation and enthusiasm, despite the stifling nothingness or constant hardships they must endure.

So, the next time you see a successful entrepreneur, don’t envy their wealth. Instead, envy their ability to survive the journey.

Success is a process. So, if you want to change your financial circumstances, you need to adopt a financial success process that automates success.

#1 Create a Blueprint of the Life You Desire

The success process always begins with a vision of the ideal, future life you desire. This could be ten, fifteen or twenty years into the future.

That future life is actually the realization of a collage of dreams that forms the picture of your ideal, perfect, future life. Each dream is something very personal that you desire – the ideal job, $1 million in your investment accounts, a vacation home, no debt, good health, etc.

Your dreams must be what You want. Not what others want for you. Putting your ladder on someone else’s wall will eventually lead to unhappiness and a life of drudgery. As Steve Jobs said in the 2005 Stanford commencement address: “Your time is limited, so don’t waste it living some Else’s life.”

Pursue YOUR dreams. Not those of your parents, teachers or some other significant influence in your life.

Below is the process to create a blueprint of the life you desire:

1. Create a Script of Your Ideal Future Life – Pretend it is ten years into the future and you are writing in your journal. Describe in detail every amazing thing about this ideal, future life of yours. Also, describe your journey over the past ten years – Exactly what happened over the past ten years? Shoot for 500-1,000 words.
2. Identify Each Dream – Define each specific dream that is a component of your ideal, future life,
3. Create Goals Around Each Dream – Build individual goals around each dream. In order to realize a given dream, it may require that you accomplish numerous goals. Once you accomplish those goals, your dream will be realized. Think of each dream as a rung on a ladder. Every time you realize a dream, you climb that ladder, dream by dream, until you reach the top. At that top sits your ideal, future life.
4. Create Habits Around Your Goals – The final step requires that you forge daily habits (goal habits) that, when accomplished each day, brings you closer to achieving each individual goal.

Building new daily habits isn’t difficult if you know what to do. It simply takes time and consistency. Consistency is the key.

#2 Grow Every Day

Becoming that ideal version of yourself requires that you grow into the person you need to be in order to realize financial success. You do that by forging growth habits:

• Learn everything about your job and the industry you are in.
• Learn everything about the dream you are pursuing.
• Learn everything about the people who can help open doors for you – the influencers.
• Learn everything about significant current events. They might come up in conversation with someone who may be a future door-opener (influencer).
• Every day, learn at least one new fact related to what you do. Document those new facts. I use a Fact Binder for this.
• Every day, learn at least one new word. Document your new words. Use them in conversation that very first day you learn the new word. Write down your new words. I use a Vocabulary Binder for this. It’s broken us into various sections: Words to Use in Writing, Words to Use in Speaking, Words Specific to My Industry/Profession. The words we use create perceptions. Being good with words makes you sound articulate and more intelligent. You want others to see you as intelligent.
• Learn something outside your comfort zone; something that will challenge your thinking and force you to re-evaluate your beliefs. The wrong beliefs will hold you back in life,

#3 Change Your Inner Circle

We pick up most of our habits from those in our inner circle: parents, teachers, family, friends, co-workers, neighbors, mentors, coaches, etc. Those who you associate with frequently will infect you with their habits. For those who desire to become wealthy, it is therefore paramount to associate with individuals who are on the same path you are on.

• Those on the Saver-Investor Path in my study surrounded themselves with other individuals who shared their smart money habits.
• Those on the Corporate Climber Path in my study forged Power Relationships with senior executives within their company and/or their industry.
• Those on the Virtuoso Path will in my study had close friends and colleagues who were also seeking to become the best at what they did to make money.
• Those on the Dreamer-Entrepreneur Path in my study surrounded themselves only with individuals who helped mentor, encourage and support them during their journey.

The common thread among all of the different types of self-made millionaires in my Rich Habits Study was the intentional, conscious effort they made to associate with like-minded individuals.

In short – choose your path to wealth and then surround yourself with others who are on the same path.

#4 Change Your Outer Circle

Your outer circle includes individuals you do business with and individuals you respect and with whom you periodically seek advice from.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Very few who know, will tell you the truth about success, as an entrepreneur – Successful Entrepreneurs Owe Much of Their Success to Luck

If you are pursuing a dream, running a small business or you are an entrepreneur, much of your fate is in the hands of lady luck.

Luck comes in many forms but it is always an unexpected, unanticipated, unplanned occurrence that rockets you from ordinary to exceptional, from unsuccessful to successful and from a financial Lilliputian to a millionaire.

I learned a great deal about luck from the 177 self-made millionaires who were kind enough to share their stories with me for my Rich Habits Study.

But, I also learned that luck, for those 177 millionaires, was luck they created.

How?

One of the common threads among the 177 self-made millionaires in my study was persistence. They never quit trying, even when success took decades to achieve.

Becoming persistent, therefore, is critical to success, and wealth is just a byproduct of success.

So, how do you become persistent?

Habits.

With habits, feelings and emotions do not matter. How your day is going, doesn’t matter. If you’re not feeling well, or you had a fight with your spouse, you will still engage in your daily habits.

Habits, once formed, take control of your mind and body and dictate what you do on a daily basis.

Habits, by their very definition, are persistent routines. When you adopt daily routines around your business, a dream you are pursuing or goals you trying to accomplish, those habits make persistence automatic.

This is why forging the right habits is so important to success – habits force persistence.

The beauty of persistence is that, eventually, the persistent get lucky – luck is a byproduct of persistence.

And habits create persistence.

Researchers at Harvard University studied 123,000 individuals at the age of 50 and followed them until they died.

They found that there were five factors, or lifestyle habits, that contributed to a longer life span. Individuals who possessed these five habits lived a much longer life than those who did not.

1. Healthy Weight – Individuals who consume fewer calories and have a Body Mass Index between 18.5 and 25. Another way to look at this is pounds per inch:
   • Men – 2.2 to 2.5 pounds per inch of height.
   • Women – 1.9 to 2.3 pounds per inch of height.
2. Daily Exercise – 30 minutes or more per day of moderate exercise.
3. Moderate Alcohol Consumption – No more than 1 glass of wine, beer or alcohol per day.
4. Non-Smoker – Individuals who do not smoke cigarettes.
5. Healthy Diet – Individuals who consume mostly fruits, vegetables and whole grains and avoid eating red meat, saturated fats and sugar.

Men who had these five longevity factors lived an extra 12 years.

Women who had these five longevity factors, lived an extra 14 years.

The good news is that it is not too late to change your lifestyle and adopt these habits. Doing so will increase how long you live.

What happened in the past no longer matters.

Those who become wildly successful all have one common Rich Habit – Future Thinking.

They do not harp on the past – they focus on the future.

They do not beat themselves up over mistakes – they focus on the new education those mistakes taught them and how they will use that education to do it better next time.

They do not focus on what went wrong – they focus on how to fix what went wrong – solutions.

They do not look at the bind they are in – they focus on solutions that will unbind them.

Your past is gone. Whatever your past did to put you in your current circumstances, now is your chance to fix what you can fix.

For the next 12 months:

• Set goals that make your skin tingle.
• Pursue dreams that make your heart sing.
• Build new relationships with people who make you feel good about yourself.
• Develop some new skill that will make you better and more marketable.
• Join a non-profit and meet the amazing people who run it.
• Run, bike, exercise aerobically.
• Start to lift weights or do hi impact exercises (push-ups, squats, jumping jacks, etc.).
• Create a vision of who you would like to be in 12 months. Put that vision in writing. Read it every day. Your new vision will put your subconscious into overdrive.
• Read inspirational books, articles, blog posts.
• Listen to uplifting music.
• Develop one new revenue stream.
• Force yourself to overcome just one fear.

Lastly, look in the mirror every morning and smile because you know something others don’t – you are about to embark on a journey that will transform you into someone who will be better, someone others will admire, someone who you always knew you could be – an amazingly successful, healthy and happy person.

The past is filed away and no longer relevant.

However, the new past you are about to create, your future, is going to be something that will give you great pride. You are about to amaze yourself. You are on the precipice of transforming your life into the dream life you always knew you could have.

You are no longer a prisoner of your past. You are going to create a future that will set you free.

Your miracle is about to unfold.

Believe it! Believe in yourself.

There are those, like me, who believe in you and who are cheering for you.