Millionaire Mind | Wealth Files part 8

Rich People believe “you can have your cake and eat it too.” Middle-class people believe “Cake is rich, so I’ll only have a little piece.” Poor people don’t believe they deserve cake, so they order a doughnut, focus on the hole, and why they have “nothing.”

Millionaire Mind | Wealth Files

In the last post I talked about Wealth Files 8,9, and 10.  Today I am going to discuss the next few.

If you enjoy reading this then please go back and read all the rest I have done.

Wealth Files #11
Rich People choose to get paid based on results.  Poor People choose to get paid on time.

The first wealth principle that comes from this is that there is nothing wrong with getting a steady paycheck, unless it interferes with your ability to earn what you are worth.  There’s the rub.  It usually does.

Poor people prefer the security of an hourly paid job or salary. However what they don’t realise is that this security comes with a price and that is wealth.

Rich people prefer to be paid on results  or at least partially.  That is why so many CEO’s have a share portion as part of their salary package.  Others get paid once the results have happened, e.g the task is to get so much percentage improvement so they get paid on the percentage increase achieved rather the amount of hours spent doing the work.

The big thing is never to have a ceiling on your income.  The only way you can never have a ceiling on your income is to own your own business and Harv says that Network Marketing can be a dynamite vehicle for wealth.

Other options are to exchange your job to a contract.  The only way to earn what you are really worth is to get paid based on your results.  Harv’s father said “you’ll never get rich working on straight salary for someone else.  If you’re going to get a job, make sure you get paid on percentage.  Otherwise, go work for yourself!”

Wealth File #12
Rich People think “both.” Poor People think “either/or”

Rich people live in a world of abundance.  Poor people live in a world of limitations. Of course, both live in the same physical world, but the difference is in their perspective.  Poor and middle class people come from scarcity.  They live by motto’s such as “there’s only so much to go around, there’s never enough, and you can’t have everything,”   And although you may not have “everything.” as in all the things in the world, I do not think you can certainly have “everything you really want.”

Here is what we mean by both
Do you really want a successful career or a close relationship with your family? Both!
Do you want to focus on business or have fun and play? Both!
Do you want money or meaning in your life? Both!
Do you want to earn a fortune or do the work you love? Both!
Poor people always choose one, rich people choose both.

The most important question to ask yourself is “How can I have both?”

This is an example from Harv what having both can mean.

He was preparing to deal with an unhappy supplier that believes that Harv’s company should pay for certain expenses that the supplier had that weren’t originally agreed to. Harv’s feeling was that estimating his costs was the suppliers business not Harv’s.  Harv was more than willing to negotiate a new agreement for next time but was big on keeping agreements that were already made.  Now in his “broke” days Harv would have gone into this conversation with the goal of making his point and making sure that he didn’t pay the guy one more cent than originally agreed.  And even though he would have liked to keep that supplier, this would probably have ended up as a huge argument.  He would have gone in thinking either he wins or I win.  Today however he is going into this discussion completely open to creating a situation where he is not going to pay the supplier any more money and the supplier is going to be extremely happy with the arrangements made.

Nowhere is “both” thinking more important than when it comes to money.  Poor and many middle-class people believe that they have to choose between money and the other aspects of life.  Hence they work on the assumption that money is not as important as other things.

People who are rich in every sense of the word understand that you have to have both.  just as you have to have both your arms and legs, you have to have money and happiness.

How many times were you told as a kid that you can not have your cake and eat it too? I know I was told it many a time.

This is the Wealth Principle that relates to this

Rich People believe “you can have your cake and eat it too.” Middle-class people believe “Cake is rich, so I’ll only have a little piece.” Poor people don’t believe they deserve cake, so they order a doughnut, focus on the hole, and why they have “nothing.”

Wealth File#13
Rich people focus on their net worth.  Poor people focus on their working income

How many times do your friends ask you “How much do you make?”  Most of our friends do not ask what is your net worth but that is the way rich people talk.  They concentrate on net-worth not income.

There are four factors that determine your net worth.  They are:

  • Income
  • Savings
  • Investments
  • Simplification

Rich people understand that building a high net worth is an equation that contains all four elements.  Because all these factors are essential.

Lets go into detail about what each of these are.

Income – This comes in two forms – working income and passive income.  Working income is the type of income we earn from active work.  It is the pay-cheque from our job, or profits or income taken from a business.  Working income required time and labour be invested to create it.  It is important because without it none of the other parts of net worth can be achieved.  Working income is how we fill the financial funnel that enables us to create savings and investments.  Passive income is money earned without you actively working.  Think of royalties for work done in the past, or a residual income.

Savings – This is pretty explanatory.  Saving some of your income for a future time. It is an imperative part of Net Wealth.    This is where you learn money management by saving a portion of your income for future times.  It is only once you have learned to save a significant amount will you have the funds to do the next part of the Net Wealth equation of investing.

Investing – This is where you make your money grow.  You can invest in the the share-market, Property or businesses or anything else that will grow your money.  The better you are at investing the more your money will grow. If you are going to invest you need to learn all about it, choose something you want to learn about, and then study it.  My husband and I have done courses on options trading and one of our friends has had some good success with it.  My husband keeps a good eye on what the sharemarket is doing and generally aware of currency markets as well.

Simplification – this is creating a life where you need less and less money to live the life you want.  It goes hand in hand with saving money, whereby you consciously create a lifestyle in which you need less money to live on.  By decreasing your cost of living, you increase your savings and the amount of funds available for investing.

A great way to look at this is as if you are driving a bus with four wheels.  What would the ride be like if you were driving on one wheel only?  Probably slow, bumpy, full of struggle, sparks and going in circles.  Sound familiar?  Rich people play the money game on four wheels.  That is why their ride is fast, smooth, direct and relatively easy.  The bus is a great analogy because most likely you will want to bring other people along on the ride.   Do you want to join me on that bus ride?  As I sure would like you to join me.

Tracking your Net Worth means you will focus on it and where your attention goes, energy flows and results show.

If you are getting value from these posts please leave a comment below.

If you want to join me on this journey to wealth and self discovery then click any of the banners on this page or leave your email address below and we can do this together.

Have a great day.