Share this book!
1) Print out as many copies as you like (yes, it’s 200 pages).
2) Email this PDF to your friends. –or–
3)...
3
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Copyright 2012 Santa Maria Group,...
5
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Special Thanks
Cover Design:
Ms. ...
7
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To David and Dain,
I was told, “A...
9
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Table of Contents
BE RICH, NOT PO...
The Seventh Financial Law of Prosperity ................................................................... 103
Start Livi...
11
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13
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BE RICH, NOT POOR
The world is f...
financially independent to your standards. If you can’t, then you have some
work to do.
Your ticket to ride the “Money Tra...
15
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currently have. You will never e...
The Ten Financial Laws of Prosperity before you can enjoy a lifetime of financial
independence.
During your financial jour...
17
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Everyone’s financial story is wo...
the seed that anyone can invest in real estate and show you how it’s done.
Where you go from there is up to you.
There is ...
19
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CHAPTER 1: THE SECRET INGREDIENT...
Living at the group home was hard for Jerry. He no longer slept on the streets,
but he had little privacy. He got a job as...
21
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Jerry spent the next few months ...
Laws Action
1. You Must Believe Manage your beliefs, intelligently develop a plan,
and take purposeful action.
Twelve Ques...
23
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Why Rich, Not Poor?
Why do you w...
nothing wrong with getting rich first and mulling over the finer points of
philosophy later!
The Secret Ingredients
You ma...
25
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needed in the recipe to be rich ...
What You Think is What You Get
You are directly responsible for what you have in life. It is your very thoughts
that deter...
27
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Your brain is the perfect cause-...
desired result. The stronger your belief, the greater amount of time and effort
you will expend to achieve that result.
Ev...
29
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of help the mansion’s owner is s...
This story was designed to probe your beliefs about money. Having money
doesn’t automatically make you a good or bad perso...
31
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thought can combine with purpose...
Greatness can only be achieved through significant effort.
How Much Money Do You Want?
If you were to ask the average pers...
33
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Step 1: How much money do you ne...
Financial Law of Prosperity is You Must Believe. The formula to be rich is 80%
belief and 20% everything else. This means,...
35
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MY PLAN
1.My long-term financial...
financial goal and what you will do to earn some of the income that will
contribute to your long-term financial goal.
Most...
37
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Share this book!
1) Print out as...
39
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CHAPTER 2: THE FIRST FINANCIAL L...
Dad worked hard and dreamed of a day when he could retire in comfort. He
learned too late in life that it takes more than ...
41
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money you use to pay expenses, s...
human tendencies to your advantage. When money is received, set aside at
least 10%, and your spending will adjust accordin...
43
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A man and his wife had the good ...
In the wake of this social conditioning is a widening gap between the rich and
the poor, with a middle class that’s rapidl...
45
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The solution to financial slaver...
Saving money is the one disciplined act that gives a person the resources
needed to begin the process of investment. Once ...
47
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The people who get rich and stay...
Share this book!
5) Print out as many copies as you like (yes, it’s 200 pages).
6) Email this PDF to your friends. –or–
7)...
49
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CHAPTER 3: MAKE MORE MONEY
If yo...
“I don’t have…” she started, but the words were lost in her sobs.
“I don’t have anywhere to go,” she finally managed.
Roxa...
51
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“I’ll do you one better,” Roxann...
man for free because she wanted the experience, but he insisted on paying her
in some fashion.
For the next few months, Na...
53
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Summary of the Ten Financial Law...
Get Into the Fast Lane
The infamous American bank robber, Willie Sutton, had it right when he said,
“Go where the money is...
55
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Time Is A Limited Resource
Peopl...
Why invest hours of your day watching television and playing on the Internet,
when you can put your “time currency” into r...
57
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are not richly rewarded by socie...
Two Ways to Make Money
There are only two ways to make money in this world: with your brain or your
brawn. There’s an imme...
59
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you are working with your brain....
BRAIN-work and BRAWN-work are the only two ways to make money. The
money that can be made with BRAWN-work is limited by yo...
61
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Remember that one product, idea,...
Scaling your system of moneymaking to massive proportions is
the difference between making a million dollars and a billion...
63
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CHAPTER 4: GREED IS A MONSTER WI...
Alexander financed his lifestyle with the income he got from a series of
moneymaking schemes he offered to hapless investo...
65
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imagined that so many people wou...
or quickly discard, items that burden you with high ownership costs. Having
possessions and privileges in your life doesn’...
67
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The Lifestyle Trap and Human Nee...
2) Safety: We all need to feel safe and secure in our environment. We cannot thrive
if we are afraid. Feelings of safety c...
69
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Everything we do, whether a posi...
When you are caught up in a lifestyle trap or have a spending problem, the
reason why has nothing to do with other people ...
71
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gets money, and has access to mo...
time it took to create the source of money that supports that particular lifestyle.
Anyone can be rich if they are willing...
73
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Direct Indirect
Price paid for t...
Be Rich : The Ten Financial Laws of Prosperity
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Be Rich : The Ten Financial Laws of Prosperity
By Dan Dulin and Greg N. Weiler II

Published in: Economy & Finance, Technology
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Be Rich : The Ten Financial Laws of Prosperity

  1. 1. Share this book! 1) Print out as many copies as you like (yes, it’s 200 pages). 2) Email this PDF to your friends. –or– 3) Post this PDF on your website, facebook, and BLOG. –or– 4) Email a link to the PDF download www.BeRichBook.com Experience this book differently. (3 Hours, 48 Minutes) Download the AUDIO BOOK from www.BeRichBook.com BE RICH The Ten Financial Laws of Prosperity That Determine if You Are Rich, Poor, or Somewhere In Between. By Dan Dulin and Greg N. Weiler II ________________________________________________
  2. 2. 3 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Copyright 2012 Santa Maria Group, LLC. All rights reserved. This abridged version of Be Rich: The Ten Financial Laws of Prosperity was intended to be shared for non-commercial use only. You have our permission to email, print, post this file online, and share it with others free-of-charge, provided you make NO changes to its original digital file format or edits and modifications to its contents. All commercial uses of this material including, but not limited to: binding and selling it as a book, or eBook, or audio book, are strictly reserved. The Ten Financial Laws of Prosperity™, TaxiLoco™, and BRAIN-work™ are trademarks of Santa Maria Group, LLC. Disclaimer, legal notice, and all-around don’t blame us statement. We live in a litigious society and some people like to point the hairy finger of blame for their poor choices at everyone but themselves. Therefore, you get our standard disclaimer spiel with a twist. This book is for educational purposes only. Read it, laugh, cry and enjoy yourself. We make no guarantees that the information contained herein will actually be able to help you. Because, let’s face it, you might be happy with the way your life is right now or don’t want to do the real work it takes to make lasting changes. Before attempting any technique or following recommendations, ideas, instructions, rules, processes or any other bright idea in this book, make sure you consult with a professional accountant, tax advisor, financial advisor, insurance advisor, real estate advisor, and attorney. All of the stories in this book, along with the people portrayed in them, are fictional, except for the stories that the authors tell about themselves. Any character that resembles a real person, living or dead, or anything resembling a real event are pure coincidence. Phew! Vs 10/08/2012
  3. 3. 5 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Special Thanks Cover Design: Ms. Roberta Schultz Buenos Aires, Brazil http://robertaschultz.daportfolio.com/ Consulting: Mr. Paul Sammis Phoenix, Arizona The hours we spent in economic debate, discussions over world events, and your friendship are missed. Rest in peace. Mr. Gregory N. Weiler San Juan Capistrano, California
  4. 4. 7 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << To David and Dain, I was told, “All roads lead to Rome,” but I have learned that some circle the mountain a few times before getting there. Have the courage to face your personal challenges, be quick to correct your mistakes, and never take yourself so seriously that you cannot laugh at your follies. This book holds the key to a lifetime of financial abundance and the secret to true wealth. Use this knowledge to take action with an unwavering belief that you can accomplish your goals, and a magical transformation will occur. You will be part of a small minority of people that can proudly say, “I achieve.” With love, Dad
  5. 5. 9 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Table of Contents BE RICH, NOT POOR 13 CHAPTER 1: THE SECRET INGREDIENTS 19 The First Financial Law of Prosperity............................................................................ 21 Twelve Questions for the Gold........................................................................................... 22 The Secret Ingredients.......................................................................................................... 24 What You Think is What You Get..................................................................................... 26 What Does Money Mean to You? ...................................................................................... 28 Positive Thinking and “Luck”............................................................................................ 30 How Much Money Do You Want?...................................................................................... 32 The Plan....................................................................................................................................... 34 CHAPTER 2: THE FIRST FINANCIAL LESSON 39 The Second Financial Law of Prosperity....................................................................... 40 Anyone Can Do It, but Few Will Try................................................................................ 41 Modern Slavery......................................................................................................................... 43 CHAPTER 3: MAKE MORE MONEY 48 The Third Financial Law of Prosperity........................................................................... 52 Get Into the Fast Lane .......................................................................................................... 54 Time Is A Limited Resource................................................................................................ 55 Knowledge That’s Richly Rewarded................................................................................ 56 Two Ways to Make Money.................................................................................................... 58 The BRAIN-work Challenge ................................................................................................. 60 CHAPTER 4: GREED IS A MONSTER WITHIN 63 The Fourth Financial Law of Prosperity........................................................................ 65 The Lifestyle Trap and Human Need............................................................................... 67 The Lifestyle Fence ................................................................................................................ 70 The True Cost of Ownership............................................................................................... 72 CHAPTER 5: YOUR THREE GIFTS 75 The Fifth Financial Law of Prosperity............................................................................ 78 Your Three Gifts....................................................................................................................... 80 A Random Act of Kindness.................................................................................................. 82 The World Needs More Heroes ........................................................................................... 83 CHAPTER 6: A TWIST OF FATE 86 The Sixth Financial Law of Prosperity........................................................................... 90 Your Emergency Fund........................................................................................................... 91 Avoid Major Loss with Insurance ..................................................................................... 92 When You are Dead or Mentally Gone............................................................................ 95 When Disaster Strikes ........................................................................................................... 96 CHAPTER 7: FINANCIAL SLAVERY 100
  6. 6. The Seventh Financial Law of Prosperity ................................................................... 103 Start Living Debt Free ......................................................................................................... 104 Credit In Our Society Is Like Heroin To a Junkie .................................................. 105 Another Way to Look at Debt........................................................................................... 108 Negotiate Your Debt.............................................................................................................. 109 How To Eliminate Your Debts.......................................................................................... 109 CHAPTER 8: THE ART OF MAKING MONEY 113 The Eighth Financial Law of Prosperity ...................................................................... 114 Inflation- The Hidden Tax.................................................................................................. 117 Two Mules Teach the Art of Making Money............................................................... 118 The Miracle of Compounding ........................................................................................... 120 The Golden Rules of Investing......................................................................................... 121 CHAPTER 9: PROTECT YOUR MONEY 127 The Ninth Financial Law of Prosperity ........................................................................ 132 Base Hits.................................................................................................................................... 133 The Paradox of Modern Money ........................................................................................ 136 Business Cycle Risks and Currency Manipulation.................................................. 139 The Golden Rules of Protection ...................................................................................... 143 Chapter 10: HOME SWEET HOME 149 The Tenth Financial Law of Prosperity........................................................................ 152 “Intelligently” Pay Off a Home Loan............................................................................. 154 Think Correctly About Home Ownership.................................................................... 159 Turn Your Home into an “Investment” ....................................................................... 160 ADDITIONAL RESOURCES FOR YOU 165 BONUS Chapter: Making Millions in Real Estate 167 The Keys to Successful Real Estate Investment ..................................................... 168 Eight Ways to Invest in the Same Property............................................................... 168 2013-2020 Forecast: The Decade of Economic Decline....................................... 168 ACKNOWLEDGEMENTS & RECOMMENDED READING 173 ABOUT THE AUTHORS 177
  7. 7. 11 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com <<
  8. 8. 13 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << BE RICH, NOT POOR The world is forever the same yet always changing. Forge and bend it to your vision and you will find the stuff that makes dreams come true. Today we celebrate your financial awakening. It starts the moment you believe you can be rich and want to do something about it. Consider your awakening a fork in the road. Down one road you will find a lifetime of financial independence, while the other leads to a life of financial struggle and despair. When you choose the road to financial independence, you take the route less travelled. You will quickly separate yourself from the majority in this world who are precariously close to financial ruin. Whether you are rich, poor, or somewhere in between, the choice has always been up to you. Awaken and enjoy a lifetime of financial independence. Poverty weighs heavily on the human spirit. It robs you of your peace of mind, limits your personal freedoms, and subjects you to one of the oldest forms of discrimination—the discrimination against another based on their ability to pay. Nonetheless, poverty is a choice. If you choose to believe you will be poor, you have condemned yourself to poverty. If, however, you choose to believe you will be rich, a world of opportunity is open to you. There are two financial classes of people in this world: those who are financially independent and those who are not. If you can quit your job, leave a business, give up any outside financial assistance, and do almost nothing all day without having to worry about maintaining your current lifestyle, then you are
  9. 9. financially independent to your standards. If you can’t, then you have some work to do. Your ticket to ride the “Money Train” is in this book. You will learn The Ten Financial Laws of Prosperity, the Art of Making Money, the Golden Rules, and how to get started. By mastering the Laws, following the Rules, developing an intelligent plan, and taking purposeful action, you can expect riches that exceed your wildest dreams. If you are a little less committed to action but follow this system, The Ten Financial Laws of Prosperity will still produce profound positive financial results in your life. If, however, you are content working for others, mistakenly believe that someone else will take care of you when you are old or sick, and cling to a belief that riches are far beyond your grasp, then this book will look good collecting dust on your nightstand. Imagine what your life would be like if you didn’t have to worry about money. You could buy whatever you desire, retire at any time, travel anywhere, and spend your days as you please. You could help the less fortunate, give to family and friends, and be financially happy. This could be your future. The missing pieces to your money puzzle and the answer to the question, “How can I get rich and STAY rich?” are in this book. This book is for anyone interested in becoming financially independent and preserving wealth for life. Financial independence is the stage in life where your money grows on its own and covers all of your lifestyle costs. It means you are your own boss and agonizing over money is now optional (yes, for some people, all the money in the world still isn’t enough). Only by following The Ten Financial Laws of Prosperity can you hope to accumulate and retain vast sums of money. They are the rules to the “get rich, stay rich” game. Complete mastery of the principles in this book will decrease the amount of time it takes to get rich. Ignorance will make a lifetime of financial independence impossible. The Financial Laws of Prosperity can be bent but never broken, because they are as inescapable as the passage of time. It doesn’t matter who you are or what you
  10. 10. 15 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << currently have. You will never experience a lifetime of financial independence and true wealth without adhering to these Laws. Financial independence is a lifestyle. Proclaiming yourself “rich” one day, and proceeding to ignore The Ten Financial Laws of Prosperity will quickly drive you to the poorhouse just as surely as gambling away all of your money at a Las Vegas casino. To get rich and stay rich, you must constantly prove yourself to be a good steward of money. There’s a huge difference between having money at one point in your life and achieving a lifetime of financial independence. Therefore, the achievement award for financial independence only gets handed out after your death. Die rich and you get the award—die poor and your funeral costs will be one more burden you pass along to the ones you leave behind! Poverty is both a mentality and a lifestyle. If you think poor, you will act poor. This is evident with people who suddenly get a large amount of money (lottery winners, inheritance, legal settlements, etc.), only to have it rapidly disappear out of their lives. These people spend their money in such an unsustainable fashion that they have nothing to show for it in a short period of time. They identify with being poor and then act poor on a grand scale. As a general rule, poor people spend all of their money; this, of course, is what makes them poor. If you want to know real financial heartache, make a lot of money and then lose it all. If you happen to make it back, you will never stray too far from The Ten Financial Laws of Prosperity again. We are all at different points in our financial journeys, but subject to the same Ten Financial Laws. Countless athletes, actors, singers, business people, entrepreneurs, lottery winners, recipients of large inheritances, and others have skyrocketed to the top of the world’s financial Who’s Who list only to go broke and then disappear into the shadows of history. Despite what pop culture teaches, there are NO shortcuts to becoming and staying rich. You must master
  11. 11. The Ten Financial Laws of Prosperity before you can enjoy a lifetime of financial independence. During your financial journey, you will always find someone richer than you. This has nothing to do with fairness, trust funds, or a lucky roll of the cosmic dice. What they have is theirs for a reason, and that reason may not be apparent to you. What you think about people with true riches will determine your own financial success, because your thoughts reveal your personal beliefs about money. Negative beliefs will prevent you from becoming rich just as surely as spending your days at home “flopped” on the sofa, watching television, surfing the Internet, and playing video games. Many people spend years wanting to be rich and wonder why they can’t reach this goal. They work hard for others and are disappointed when the rewards they receive don’t measure up to their expectations. These people have yet to realize that as long as they answer to somebody, they will never make the money they truly deserve. The trick to making a lot of money is to become self- reliant. Only then can you break the chains of financial limitation imposed on you by others. Having an abundance of money is not true wealth or a measure of your total happiness. To have true wealth in your life is to be rich in thought, friendship, love, joy, spirituality, compassion, gratitude, and generosity. It has absolutely nothing to do with the material possessions acquired with money. A life with an abundance of money and lacking in sincere, fulfilling connections to other people is a life saturated with loneliness and despair. The Fifth Financial Law of Prosperity will teach you to Help Those in Need, but true wealth dwells in and must come from your heart. No cause is greater and no deeds more worthy than helping the needy. It is these selfless acts that define our own humanity and add purpose to our lives. For many, this simple and rewarding concept will take years to understand and longer still to act on, even though it’s an essential component to the attainment of complete and total happiness.
  12. 12. 17 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Everyone’s financial story is worth telling. This book tells the stories of people who have struggled to reach financial independence and connects those stories to the principles contained within these chapters. The people in these stories are fictional, but the lessons imparted are timeless because they speak to circumstances anyone could encounter in life. I am no better than you and have made my fair share of mistakes. I’ve squandered money, been caught up in the “lifestyle trap,” taken foolish risks, made bad decisions and, on occasion, had to worry about where my next meal would come from. It took two major financial setbacks before I was willing to change my whole approach to financial independence. Each setback was painful. I collected debt and financial obligations that only added stress to my life, sent my personal relationships into turmoil, and dragged me further from my financial goals. But I embraced these setbacks and learned from them. Within each, I found seeds of opportunity, seeds that eventually grew into the idea for this book and provided me with the inspiration to create new businesses. What causes some people to become sustainably rich while the vast majority of society continues to struggle financially? The answers are not so obvious, and even the rich can’t completely explain it. The purpose of this book is to bridge that gap in knowledge and eliminate the guesswork. By the time you finish reading, you will be able to answer this question and, more importantly, do something about it in your own financial life. At the end of this book, I have included a bonus chapter (paperback edition and Kindle version only) on real estate investing titled: Making Millions in Real Estate. This bonus section contains a number of techniques that real estate investors use every single day to make money. Reading this section will not immediately turn you into an expert real estate investor, because expertise in anything comes from time, experience, and knowledge. Its purpose is to plant
  13. 13. the seed that anyone can invest in real estate and show you how it’s done. Where you go from there is up to you. There is no exclusivity on who gets to be rich. It all boils down to your beliefs and your ability to execute a meaningful plan. Anyone can do it, but few will try. Make the choice to incorporate The Ten Financial Laws of Prosperity into your life and reap their rewards. Riddle: In this world of mice and men, do you see the Lion? (Would you like a hint? Look in the mirror.)
  14. 14. 19 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << CHAPTER 1: THE SECRET INGREDIENTS Believe you can and discover a world of unlimited possibilities; believe you can’t and forever find none. Jerry had been living on the streets of New York City for several months. He was a tall, likable man in his mid-30s with dark hair and a deep tan. He was an Iraq War veteran who bounced from one low-paying job to the next. Jerry was no stranger to hardship, but tonight he was in the wrong place at the wrong time. Two men had just run past him as he turned the corner onto an otherwise deserted street when, suddenly, a snarling German Shepherd leapt toward his face. Instinctively, he raised his arm to protect himself. The police dog latched onto Jerry, dragging him to the ground. Sharp teeth ripped into his arm, sending pain throughout his body. “Stop struggling!” the police officer shouted at him. He then turned to the dog. “Release!” Jerry went limp as the dog let go of him. The officer leashed the animal and radioed headquarters for Jerry to be rushed to the hospital. Officer O’Malley found Jerry wandering the streets a few days later. He had read the hospital report and learned that the man his dog had mistakenly attacked was homeless and between jobs. He felt compelled to help and made arrangements for Jerry to stay at a local group home.
  15. 15. Living at the group home was hard for Jerry. He no longer slept on the streets, but he had little privacy. He got a job as a taxi driver and started to spend his spare time at the public library where he found solitude. The library changed Jerry. He developed a thirst for knowledge and a love for reading. Books helped him realize there was more to life and that he deserved better. He began to believe in himself and made enough money from his job to move into a small apartment. Jerry got into the habit of saving a little from each paycheck, but it was hard to make ends meet. He grew tired of struggling financially and made the conscious decision to become rich. He didn’t know how he would create his fortune but he knew the answer was out there. He took advantage of his job as a taxi driver to interview business people he picked up as riders. He gathered their thoughts on success and talked to each of them at length about how they made money. At the library and on the Internet, he would diligently research any new idea and moneymaking concept that interested him. Time passed and Jerry began to notice that more of his passengers were using smartphones. People raved about these gadgets. Jerry recognized the start of a new trend and was determined to capitalize on the opportunity. He created a list of different ways to make money from smartphones. A few of these ideas turned into complete failures. Undeterred, he continued his search for a moneymaker. Jerry’s golden idea came to him after a near-miss accident with a bicyclist. A biker swerved into oncoming traffic and Jerry nearly hit him. It was a seed of inspiration. He went home that night and sketched out an idea for a smartphone game he called “TaxiLoco.”
  16. 16. 21 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Jerry spent the next few months refining the idea for TaxiLoco He hired a programmer and graphic design artist using an outsourcing website, and soon his game was ready. He posted a simple sign in the back of his taxi to market it. The sign sparked the curiosity of a passenger who identified himself as a freelance reporter. The reporter talked to Jerry about the development process for his game. Jerry didn’t give the conversation a second thought; it was only one out of an entire day of conversations he had with riders. But one week later, Jerry’s game, TaxiLoco, was featured in an article in a prominent national newspaper about emerging smartphone opportunities. Before he knew it, his game went viral and Jerry became a very rich man, selling millions of copies. The First Financial Law of Prosperity The First Financial Law of Prosperity is You Must Believe. Only when you truly believe that you can create financial abundance in your life will you intelligently develop and follow a plan to produce the desired wealth. Belief comes before money. The single most important thing needed to create financial abundance is unwavering belief. Think you can do something and there is room for doubt; know you can do something and harness the limitless creative power of your mind to make it a reality. In practice, the exact formula to be rich is 80% belief and 20% everything else. This means that once you truly know you will be rich, you’ve taken the single most important step toward achieving your goal. Belief is the foundation for creating a lifetime of financial independence. Summary of the Ten Financial Laws
  17. 17. Laws Action 1. You Must Believe Manage your beliefs, intelligently develop a plan, and take purposeful action. Twelve Questions for the Gold In this book, there is a series of twelve questions that I ask you to write the answers to. I know that many readers won’t bother answering the questions, will dismissively breeze through this book, and then wonder why their money situation never improves. So why not go for the gold and answer the twelve questions? The questions are easy. They are designed to help you clarify your thinking about what you really want financially. How can you achieve a goal if you don’t know what the goal is? Simply saying, “I want to be rich” or “I want more money,” and then doing nothing to change your financial situation doesn’t make any sense. Look around. Billions of people take this exact approach. Invest the time to answer the twelve questions. They will help you clarify your financial goals and get you started down the path to complete financial independence.
  18. 18. 23 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Why Rich, Not Poor? Why do you want to be rich? The answer to this question will reveal your true motivation to be rich. Some reasons are more motivating than others. Fill in your answer: “I want to be rich because __________.” Does your answer inspire you or is it just a bunch of words? Answers to this question will vary, but having material possessions, stacks of cash, or being able to afford luxuries aren’t the real reasons why you want to be rich. Once your basic needs for survival—food, shelter, clothing—have been met, what you are truly searching for is a feeling or a satisfaction of human need that you think money will give you. In Chapter Four, we will discuss the human needs for safety, love and belonging, to be valued, and to find purpose in life. With a little reflection, you’ll find your reason for wanting to be rich. You must have a compelling enough reason why you want to be rich if you are going to have the proper drive to be rich. Your motivation to be rich is fueled by your desire, or want, for this outcome. Do you have enough “fuel,” or desire, to motivate you past any obstacle to become rich? Time will tell. If you think money will solve all of your problems, you are going to be disappointed. Money is only a catalyst for obtaining your material desires. It can’t eliminate all of your problems and make you truly happy. Your problems are the challenges of life that push you to be better and make you grow as a person, and you cannot truly be alive without them. Everyone thinks that money will make them happy, but happiness is a feeling that comes from within and has nothing to do with the size of your wallet. That being said, there’s
  19. 19. nothing wrong with getting rich first and mulling over the finer points of philosophy later! The Secret Ingredients You may have heard about the paradox of belief—whether you think you can or can’t do something, you are right. Any reason you can invent or person you can blame for not having financial abundance in your life is just a convenient excuse. Excuses hold you back from getting what you want. Cast them aside to open a world of opportunity. Your beliefs are the only real obstacle to becoming rich and, more importantly, staying rich. “Why am I not rich?” Ask yourself this question, and if you want to be an overachiever, write down the answer(s) to uncover the reasons holding you back. Review your answer(s) to determine if:  You blame others or certain circumstances for your financial situation,  You feel as if you are lacking in some quality, trait, experience, or resource. You may have some great reasons on your list, but do you really want to sacrifice your financial independence for a handful of excuses? Rip up the list, crinkle it into a little paper ball, and take the three-point shot with it into the trash. Get all of that nonsense out of your head because it’s the wrong way to think. Belief in yourself and an unyielding determination to achieve a desired result are the only resources you need to be rich. They are the secret ingredients
  20. 20. 25 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << needed in the recipe to be rich and you already have them locked away inside of you! Everything else stems from these two components. Belief comes before money; so don’t worry about how to create your financial independence. Know that you will create your financial independence. Begin by developing the unwavering belief that you will be rich and can achieve your financial independence by working at this goal every day. When you believe in something so strongly, you know with every fiber of your being that it will be true—the object of your belief will appear in your life. This does not occur by magic or trickery. You will make it happen. It is only through consistent and cumulative daily action that larger goals can be achieved. Believe you can and you will—believe you can’t and you won’t. Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I shall have the belief that I can do it, I shall surely acquire the capacity to do it, even if I may not have it at the beginning; … —Mahatma Gandhi (1869-1948)
  21. 21. What You Think is What You Get You are directly responsible for what you have in life. It is your very thoughts that determine if you are rich, poor, or somewhere in between—just as surely as they determined what time you got out of bed this morning. Your thoughts are the foundation for your beliefs and a governor over the action you will take to accomplish a goal. A belief is what you think to be true. It’s a collection of thoughts that help you rapidly interpret and evaluate the world around you based on your experiences. Beliefs can give instantaneous meaning to circumstances and events and are designed to help you survive and prosper in your environment. Everything you do in life originates from the process of thinking. This is important because your thoughts motivate you and determine the actions you will take to accomplish a goal. If you believe you can do something, you are more likely to do it. The results or experiences generated from your actions create more thoughts as feedback. This feedback can positively or negatively reinforce your original belief. Let’s say, for example, that you have a belief that it’s GOOD to take the bus to work. You take action and ride the bus. However, you get an undesirable result because the bus was slow and made you twenty minutes late. Based on this feedback, or new thought, your original belief about taking the bus to work has been altered. You now believe taking the bus to work is BAD, because it will make you late. This new distinction will affect all future decisions about taking the bus to work. This continuous process of thought to belief, belief to action, action to result, and finally back to thought is called the “Thought-to-Result Cycle.”
  22. 22. 27 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Your brain is the perfect cause-and-effect feedback loop, much like audio feedback from a speaker that gets louder and louder when an open microphone is placed too close to it. Your dominant thoughts reverberate, get more intense, and cause you to take appropriate action, even if this action is to do nothing. To have an abundance of anything in your life, you must have the “right” dominant thoughts looping in your brain because your thoughts motivate you. Once your thoughts are aligned with your desired goals, they will compel you to act accordingly. Your dominant thoughts manifest themselves in your life for good and bad. For instance, poverty thoughts produce poverty, hopeless thoughts produce hopelessness, happy thoughts produce happiness, greedy thoughts produce greediness, and loving thoughts produce love. The current state of your life is a direct reflection of your dominant pattern of thinking, even if you are not consciously aware of it—because there is both a conscious and subconscious level to thought. To effectively change anything in your life, you must first start by correcting your own thinking. The very process of thinking affects your motivation. Your dominant thoughts shape your beliefs and govern the amount of action you will take to achieve a
  23. 23. desired result. The stronger your belief, the greater amount of time and effort you will expend to achieve that result. Everything you do and have in life is a direct reflection of your dominant pattern of thinking. The only real enemy or ally to your success is your own thinking; learn to control your thoughts or your thoughts will control you. Sow a thought and you reap an action; sow an act and you reap a habit; sow a habit and you reap a character; sow a character and you reap a destiny. —Ralph Waldo Emerson (1803-1882) What Does Money Mean to You? You decide to meet a friend for lunch, and, on the way to the local restaurant, you notice a magnificent mansion surrounded by acres of meticulously manicured grounds. As you pass, you see the groundskeeper finishing his work under the warm summer sun and several expensive cars parked in the driveway. Posted on the ornately decorated gate is a sign—“Now Hiring: Cook, Maid, Chauffer.” You recognize that an extremely rich person lives at the mansion, and it doesn’t take you long to start speculating about them. STOP! Take a few moments to consider some traits, characteristics, and the personality of the mansion’s owner. What do you think about the amount of money it would take to own a house like this? What do you think about the type
  24. 24. 29 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << of help the mansion’s owner is seeking? Do you think this rich homeowner is a good or bad person? If you had the money, would you live in a house like this? Why or why not? GO! You continue on your way and meet your friend for lunch. During the meal you tell her about the beautiful mansion. Before you can finish the story, your friend excitedly interrupts you and explains she’s met the mansion’s owner. She tells you the owner:  Contributes large sums of money to help the less fortunate buy food, get job training and obtain affordable housing  Is the benefactor of several orphanages that have a wonderful reputation for finding homes for displaced children  Volunteers at a local animal shelter, nursing abused cats and dogs back to health Helped his former cook, maid, and chauffer start their own successful businesses What would you say about the mansion’s owner now? How many negative thoughts did you originally have of the owner? Do you believe you deserve to live in a beautiful house and have lots of money? If you don’t think you are worthy, take a few moments to consider the reasons why. Could these reasons potentially hold you back from achieving your financial dreams?
  25. 25. This story was designed to probe your beliefs about money. Having money doesn’t automatically make you a good or bad person. Money doesn’t create a person’s character—it only helps to reveal it. Money is an accelerator of your ability to fulfill your material desires and cannot be categorized as “good” or “bad”. The way you think about money is important. Negative thoughts about money will influence the amount of action you are willing to take to achieve your financial independence. The only real enemy or ally to your financial success is your own thinking. Your thoughts must be controlled. It is only through honest, careful, and objective self-examination that you can reveal your negative thinking about money. To effectively change anything in your life, you must first start by correcting the way you think about it. Once your money thoughts are congruent with your financial desires, your thinking will motivate and drive you to reach your financial goals. Positive Thinking and “Luck” Some people believe that desire and positive thinking alone can bring financial abundance into your life. If this were true, we would all be rich and happy. But greatness can only be achieved through significant effort. Desire and positive thinking alone can do little to change your finances without the employment of purposeful action. Thought, desire, and action are part of a larger system that you will use to create a lifetime of financial independence. Your thoughts are a relatively weak form of energy compared to the measurable force used to create work. The physical act of moving a coffee cup across a table, rather than just thinking about moving it, illustrates how directed
  26. 26. 31 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << thought can combine with purposeful action to create a meaningful result. If you had a belief that you couldn’t move the cup because you thought it was glued to the table, you might never have attempted to move it. This is a testament to the power a belief has over your decision to take action. Not all of your actions will yield intended results. Some actions create totally random or unexpected circumstances, which can produce the phenomenon known as opportunity or “luck.” There is a direct correlation between the amount of purposeful action you take and the amount of opportunity or luck you experience in life. The benefits that opportunity or luck may bring you can’t be calculated early in your journey to financial independence. However, these benefits will have a significant positive impact on your ability to achieve your goals. For instance, let’s say you have a great idea for a new whiz-bang product, but you have no idea where to get the money you need to bring the product to market. You decide to go to an entrepreneurial workshop given by local business professionals. While at the workshop, you meet a businesswoman who is excited about your idea and offers to bring your product to market. You never would have met this woman if you had skipped the workshop, and you would have missed this opportunity or lucky chance to bring your product to market. It’s important to emphasize that opportunity or luck only occurs when you act. This is why it’s critically important to take purposeful action. Desire and positive thinking can do little to help you accomplish your goals without the use of purposeful action. Directed thought and action combine to create measurable results. Some of these results create totally unexpected opportunities, or lucky events, which can have a significant, positive impact on your financial life. It’s important to remember that opportunity, or luck, and measurable results can only happen when you take action.
  27. 27. Greatness can only be achieved through significant effort. How Much Money Do You Want? If you were to ask the average person on the street what it would take for them to be rich, they might respond with a “lump sum” dollar amount they think makes a person rich. One million. Five million. Ten million. Whatever. The average person doesn’t think too much about what it takes to be rich for life, or about the need for a steady income to continue paying for their lifestyle expenses. All money gets spent over time; income is a steady inflow of cash while lump sums are received once. A lump sum financial goal is a very important part of becoming financially independent, but it should be a calculated number based off of the income you need to support your lifestyle and not a random guess. A financial goal gives you a money target, provides clarity, and keeps you focused. Your ultimate goal should be to obtain a lifetime of financial independence. Complete financial independence means that you receive enough income to maintain your standard of living, and provide for your future financial needs without having to work for your money ever again. Most people work for their money, trading their limited time for an income. But to be rich, money must “work” for you by producing the income needed to support your lifestyle without the sacrifice of your valuable time. What amount of money do you need working for you to support your desired lifestyle? Everyone has different financial needs. Without clearly defining what your needs are, financial independence can be an elusive goal. Grab a pen and define your long-term financial goal by completing these simple steps:
  28. 28. 33 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Step 1: How much money do you need to receive, on a yearly basis, to achieve complete financial independence? I need $____________ per year. Step 2: Divide the answer in Step 1 by a conservative interest rate. This is the minimum rate of return you anticipate to receive on your money and can be anywhere from 2% to 25%, depending on your risk tolerance. I prefer to use 10% for this calculation, because it’s an easy number to work with and a decent rate of return. The answer from Step 1, $____________, divided by the conservative interest rate expressed as a decimal ______ (10% = 0.10), equals your long-term financial goal amount of $___________________. For example, divide $500,000 in income per year by 0.10, and you get a $5,000,000 financial goal. PASSIVE INCOME ÷ INTEREST RATE = YOUR FINANCIAL GOAL Step 3: How much time will you give yourself to reach your long-term goal and amass the money needed in Step 2? _________ years. Step 4: What will you do in order to receive some of the money you need to contribute toward your long-term financial goal? Maybe you will be a great doctor, entrepreneur, lawyer, teacher, police officer, engineer, fire fighter, inventor, real estate investor, salesperson, yoga instructor, bartender, or insurance agent. Maybe you will create and manufacture something brilliant. Your possibilities are endless, but you must choose something to focus on that will produce some sort of income to get you started. If you are already doing something, that’s fantastic. You already have a head start. I will: _______________________________________ (If you are not sure what you will do, keep reading and revisit this question later.) At this point, you may doubt that you can achieve your long-term financial goal. It can be daunting to wrap your mind around how to go from barely making ends meet to having complete financial abundance. Remember, the First
  29. 29. Financial Law of Prosperity is You Must Believe. The formula to be rich is 80% belief and 20% everything else. This means, once you truly know that you will be rich, you’ve taken the single most important step toward achieving your goal. A person who believes they can accomplish a task with absolute conviction and takes purposeful action will always succeed. If you think you can do something, you leave room for doubt; know you can do something and you will harness the limitless creative power of your mind to make it a reality. The Plan When you truly believe you will be rich, you will develop and follow a plan to be rich. Consider your plan a roadmap to your destination. Like all travel plans, your exact route isn’t cast in stone. You will encounter detours, hazards, alternate routes, pit stops, and delays. Some of these encounters will bring you closer to your destination—others will take you out of your way. Only by knowing your final destination can you determine if you are headed in the right direction. Follow the steps below to create a simple plan. Step 1: On a sheet of paper, copy the following sentences and fill in the blanks with the information you gave in the previous section’s exercise.
  30. 30. 35 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << MY PLAN 1.My long-term financial goal is $___________, and I will achieve this goal by _____________ (date). 2.I will earn some of the money that will contribute to this financial goal by doing _________________ (what you are going to do to earn an income). 3.What’s my next step? ____________________ Step 2: Post your plan in a place where you will see it every morning. Step 3: Each morning, ask yourself, “What’s my next step?” Once you have the answer, you have your next task(s) that must be completed or worked on TODAY. Step 4: Always evaluate your plan and keep it simple. What’s working? What needs to change? Are you going in the right direction? Do you need to add to the plan? Do you need to learn a new skill or acquire a resource? If you are not getting the results you desire, don’t be afraid to adjust your plan and take a different approach to accomplish your goals. Don’t forget to update your plan when you finish reading this book. When you start working your plan, some of your actions will produce opportunity or luck. Once you identify such an event, seek to exploit that situation to your utmost benefit. You don’t need to create the world’s greatest plan to achieve financial success. Don’t worry about having the “right” job or making “enough” money. Your plan is a starting point. It will evolve over time as you uncover new opportunities. However, it’s critically important to have a written plan that clearly states your
  31. 31. financial goal and what you will do to earn some of the income that will contribute to your long-term financial goal. Most people wander through life and settle for what they get. These people are unmistakable; you will come upon them drifting along life’s highway, squandering their precious time and mired in their own dramas. Distinguish yourself from the wanderers by having an intelligent, executable plan, which will give you clear direction and purpose. Only settle for what you want from life. Remember, no great achievement can be accomplished without the plan to first make it happen. A fool with a plan can outsmart a genius without one. —T. Boone Pickens, billionaire
  32. 32. 37 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Share this book! 1) Print out as many copies as you like (yes, it’s 200 pages). 2) Email this PDF to your friends. –or– 3) Post this PDF on your website, facebook, and BLOG. –or– 4) Email a link to the PDF download www.BeRichBook.com Experience this book differently. Download the AUDIO BOOK from www.BeRichBook.com
  33. 33. 39 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << CHAPTER 2: THE FIRST FINANCIAL LESSON “Make a buck, spend a buck” is the exact formula for poverty. I was 8-years-old when I received my first financial lesson. My father and I were driving home on a lonely Maryland highway one dreary winter day. I was staring out the backseat window, listening to the car’s wiper blades sputter and groan to clear the freezing rain from the windshield. Most car rides with Dad were spent in silence, though he would occasionally make an effort to explain some life lesson that, once completed, typically left me more confused than enlightened. Our talk about “the birds and the bees,” for instance, baffled me for an entire decade. “Son, I want to talk to you about money,” Dad announced. “When you have a job, you have to understand that you must save for the future by putting ten percent of everything you make directly into your savings account. Once your money is in the bank, you must never spend it. If you do this, you’ll be OK.” He asked me to repeat it back to him, and then my financial lesson was over. Savings account, bank, money, job, and percents—my head was spinning. Dad, however, was satisfied with our little talk. So, I figured there was no sense in adding to my confusion and didn’t ask any questions. Unfortunately, the money education I received from my father never got any better than that. Even though he did his best to teach me what he knew, my father had little financial success in his own life.
  34. 34. Dad worked hard and dreamed of a day when he could retire in comfort. He learned too late in life that it takes more than hard work to become financially independent. He tried to improve his financial situation by investing, but his efforts yielded mixed results because he didn’t fully understand the nature of money. Like most people in this world, Dad relied on the recycled opinions of the financial “experts” for investment advice and never bothered to learn any real money management skills for himself. Dad eventually went into semi- retirement and got to do what he loved most, but he could have done it years sooner had he approached things differently. Like any responsible parent, my father tried his best to educate me financially. He gave me good advice, but he was never a rich man. Dad didn’t realize his struggles with money made more of an impression on me than his teachings. And it was from his struggles that I learned the greatest lesson of them all— learn from the mistakes of others. The Second Financial Law of Prosperity The Second Financial Law of Prosperity is Save for The Future. Take at least 10% of your primary income and save it for future investment. The remainder of your income will go toward your living expenses. By strictly following the Second Financial Law of Prosperity, you will create a supply of money that can eventually be put to work to generate investment income. Your money, once invested, will create more money on its own and help you reach your long-term financial goal. Investment is only possible, however, if you have been disciplined enough to save your money. Always save 10% of your earnings before you pay any debt or spend any of your money on living expenses, necessities, and luxuries. Also, keep your savings separate from the
  35. 35. 41 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << money you use to pay expenses, so it won’t tempt you. Never, under any circumstances, spend the money you’ve saved on anything but investment. Summary of the Ten Financial Laws Laws Action 1. You Must Believe Manage your beliefs, intelligently develop a plan, and take purposeful action. 2. Save for The Future Save 10% of your primary income for future investment. Anyone Can Do It, but Few Will Try People tend to spend everything they make regardless of how much they make. As your income increases, so does your tendency to spend. The opposite is also true. As your income decreases so does your spending. Use these natural
  36. 36. human tendencies to your advantage. When money is received, set aside at least 10%, and your spending will adjust accordingly. You can save 10% or more from your income no matter what your current financial situation. For some, this will be hard to do. The simplest way to accomplish this goal, however, is to simply do it. Most of what you buy doesn’t really serve your long-term interests or even give you much satisfaction. What spending categories can you modify or eliminate? Meeting the 10% minimum savings goal becomes easier each time you do it, because as you watch your savings grow you will get greater satisfaction from knowing your money is bringing you closer to complete financial independence. The key to adhering to the Second Financial Law of Prosperity is to understand your priorities. Do you want to have the freedom and security that money can bring, or do you want to work forever trying to make ends meet? There are plenty of things you can worry about in life. Why make money one of them? The Second Financial Law of Prosperity is designed to help you improve your future. By setting aside a portion of your income today, you lay the foundation to achieve your long-term financial goal. In doing so, however, some of your immediate desires must go temporarily unfulfilled. We all have an unlimited number of wants and it’s impossible to satisfy them all. The intelligent rich know there are limits to what their money can buy. To be rich and stay rich, you must understand that spending all of your money is the fastest way to poverty. The Second Financial Law of Prosperity is a test of your readiness to receive greater riches. If you consistently save a portion of your income and never spend it, you will prove worthy of receiving more money—slowly at first, then at an ever-increasing pace, and from unexpected sources. If, however, you continue spending everything, financial abundance will always elude you.
  37. 37. 43 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << A man and his wife had the good fortune to possess a goose which laid a golden egg every day. Lucky though they were, they soon began to think they were not getting rich fast enough, and, imagining the bird must be made of gold inside, they decided to kill it in order to secure the whole store of precious metal at once. But when they cut it open they found it was just like any other goose. Thus, they neither got rich all at once, as they had hoped, nor enjoyed any longer the daily addition to their wealth; … —Aesop’s Fables Modern Slavery It’s in your long-term best interest to be rich. Anyone who relies on someone else for their money is vulnerable to extreme financial disappointment. If you are not self-reliant, you are swimming in troubled waters. People who get rich and stay rich depend on themselves—they make their own financial dreams come true and so must you. Thought is the only real divider between the rich and the poor. Thought used to be a personal affair, but by combining psychology with traditional marketing, what you think is now greatly influenced by modern advertising. In our society, poverty is deliberately seeded and grown like crops of tomatoes with people exposed to a constant message of entitlement. We are encouraged to spend and live in excess, to constantly want more. This message is everywhere and practically inescapable. From cradle to grave, twenty-four hours a day, seven days a week, advertisements tell us, “You want it, you deserve it—now go and get it!”
  38. 38. In the wake of this social conditioning is a widening gap between the rich and the poor, with a middle class that’s rapidly disappearing. The culprits behind the message are a consortium of large businesses—“Big Business,” as I like to call them—that encourage people to stay in a perpetual state of overconsumption. They have no interest in building a wealthy society, because they wouldn’t profit immediately from it. Their methods of control are debt, psychology, and messages of entitlement designed to convince people to spend beyond their means. Billions of people worldwide are trapped in a state of financial slavery because their expenses are greater than or equal to their income. These people are in a perpetual state of financial angst because they must labor to make money and struggle to pay their bills. After the bills are paid, there’s typically nothing left over for savings and investment. This spending pattern is why the poor only get poorer. The poor are Big Business’s army of working financial slaves, because they will give their hard-earned money to everyone but themselves. Their spending is an invisible chain of slavery around their necks. Their belief that they deserve and are entitled to all the privileges money can buy without having the cash to pay for them leads to debt and never-ending payments, which is nothing more than a modern form of slavery or financial servitude.
  39. 39. 45 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << The solution to financial slavery is personal responsibility. If you want to hold someone accountable for your servitude, look no further than your closest mirror. Free yourself by making the choice to follow the Second Financial Law of Prosperity. Step up, take responsibility, and commit to real change—always save a portion of your income before you pay your bills. If you want to be rich, then start by exercising self-control. Change your mindset from “What can I spend?” to “How much can I save?” Rich and poor people think differently about money. The rich, or financially independent, think in terms of financial creation, savings, and money growth; to them, there’s an abundance of money in the world and opportunity is everywhere. The poor, or financially dependent, think in terms of getting paid, paying bills, spending, and scarcity; to them, little opportunity exists in the world and riches are available only to a privileged few. If you want to have a lot of money in your life, adopt the mindset of the rich. To experience a lifetime of financial independence, you must modify your spending habits and change the way you think about money. The financially independent save a portion of their income before they pay bills, and then invest their savings to make more money. The order of money flow is important—save money first, not last.
  40. 40. Saving money is the one disciplined act that gives a person the resources needed to begin the process of investment. Once your money has been invested properly, it will begin to create more money on its own and will be a contributing factor to the achievement of your long-term financial goal. The successful investment of money is the reason the rich get richer, and it’s what you must learn to do if you want to join them. There will always be a class system of rich and poor in society—“haves” and “have-nots.” It’s been this way for thousands of years. The system is fair because anyone can change sides—no one has to be poor unless they choose to be poor. To firmly set your feet on the road to riches, you must obey the Second Financial Law of Prosperity and save at least 10% of your earnings. Stay focused, and don’t let anything sway you from this task.
  41. 41. 47 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << The people who get rich and stay rich are self-reliant—they make their own financial dreams come true.
  42. 42. Share this book! 5) Print out as many copies as you like (yes, it’s 200 pages). 6) Email this PDF to your friends. –or– 7) Post this PDF on your website, facebook, and BLOG. –or– 8) Email a link to the PDF download www.BeRichBook.com Experience this book differently. Download the AUDIO BOOK from www.BeRichBook.com
  43. 43. 49 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << CHAPTER 3: MAKE MORE MONEY If you are a bricklayer, be the best bricklayer in town. If you are a smart bricklayer, get other people to lay the bricks for you in many towns. Nancy was a young, single mother. She had gotten pregnant as a teenager and, at her mother’s insistence, married the child’s father only to have him leave her a few months later. She was intelligent and had planned on going to college after finishing high school, but something always got in the way of that dream. Nancy was struggling to pay her rent. She was living on her own and had a full- time waitressing job. But every month it got harder to pay her bills. Desperate to avoid eviction, she made an appointment to talk with the manager of her apartment building. Roxanne politely listened to Nancy’s hardship story, but was unmoved. She had managed apartments for over thirty-four years, and every story was the same: someone couldn’t pay rent and wanted to make it the building owner’s problem. “You’ve got to pay the rent or get out,” Roxanne stated. The severity of the situation was too much for Nancy. The calm resolve that she displayed at the start of their meeting turned to panic as grim images of her future flashed through her mind. The thought of living on the streets and losing her daughter to the child protection authorities made her cry uncontrollably.
  44. 44. “I don’t have…” she started, but the words were lost in her sobs. “I don’t have anywhere to go,” she finally managed. Roxanne attempted to remain unsympathetic, but the genuine emotional pain of this young woman brought down her defenses. She reached for the box of tissue on her desk and handed it to Nancy. “Look,” she began, “I don’t know what you are willing to do to make some extra money, but I need some part-time help cleaning vacant apartments. If you want the work, it’s yours. But if you screw up, I’m going to fire you and then evict you. If this works out, you can pay me the rent after you get your first check.” Nancy agreed to take the job, and, within two weeks, she had enough money for rent. A few months passed, and she settled into a routine of working long hours at two jobs while still handling the responsibilities of raising her daughter on her own. She yearned for her free time on the weekends and dreaded Mondays. She was making ends meet and keeping her daughter happy. That was all that mattered. Roxanne soon approached Nancy and asked her to work on the weekends renting apartments for her. Roxanne told Nancy that she believed this would be a good opportunity to learn about property management as a career. Nancy had developed a lot of respect for Roxanne over the last few months and didn’t want to disappoint her. Nancy agreed and found herself saddled with a third job. With three jobs, Nancy became a scheduling whiz. Bills were easily paid, and she only had time for what was important in her life. Within three months, Nancy was making more money renting apartments on the weekend than she made cleaning them during the week. Working three jobs and raising a child on her own was difficult, though. So Nancy soon approached Roxanne to see if she could give up her cleaning job.
  45. 45. 51 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << “I’ll do you one better,” Roxanne said. “I just moved my full-time rental agent to the assistant manager position. His old job is yours if you want it. Besides, you can make the same money working this new job as you can with the other three combined.” Nancy began working with Roxanne daily. With years of experience in property management, Roxanne was a wealth of information and Nancy soaked it up like a sponge. With Roxanne’s encouragement, she enrolled in property management classes at a community college and with the local apartment association. Each day, Nancy got better at her job. It wasn’t long before she was promoted to assistant manager and received another pay raise. A few years passed and Nancy got an opportunity to become a manager at another apartment community within the same company. With this new job came another raise and more responsibility. By this time, she had earned a degree in property management and was very capable of doing the job. After five years, Nancy grew restless with her current level of success. She began to wonder if there was something else beyond the standard 9-to-5 grind. She had come a long way from near homelessness, but was no longer satisfied and felt trapped by the same old routine. Nancy knew there had to be something more to life. She was determined to find a path leading to an even better future. Nancy gave herself a five month goal to find something new. She continued to educate herself by participating in property management workshops, reading, and staying involved with her local apartment association. It was at one of these association meetings that a new opportunity emerged. She met a real estate investor who was having trouble renting apartments at one of his larger properties, which was costing him a lot of money. Nancy offered to help this
  46. 46. man for free because she wanted the experience, but he insisted on paying her in some fashion. For the next few months, Nancy worked in her spare time to train the investor’s staff and rent his vacant apartments. Once she was finished, the investor handed her a $10,000 check for her consulting work. In that moment, she found the inspiration she needed to start her own company. Nancy’s positive beliefs, desire, and hard work paid off again with another new opportunity. She was now in complete control of her financial future. The Third Financial Law of Prosperity The Third Financial Law of Prosperity is Make More Money. Create multiple sources of income to help accelerate the wealth-creation process. 80% of the money that you make from these other sources of income must be saved for future investment. The remaining 20% can be used for other lifestyle expenses. Multiple sources of income can take years off the time required to reach your long-term financial goal. For some, additional income will be earned from working extra jobs and other similar endeavors. For others, it comes from starting a new successful business. Increase your ability to make money by using your time wisely, learning new skills, and exploring new opportunities. Your ultimate goal is to create a sustainable income without the need for your physical labor and any significant ongoing investment of your personal time. To accomplish this, however, you must be an efficient manager of your personal resources.
  47. 47. 53 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Summary of the Ten Financial Laws Laws Action 1. You Must Believe Manage your beliefs, intelligently develop a plan, and take purposeful action. 2. Save for The Future Save 10% of your primary income for future investment. 3. Make More Money Create multiple sources of income and save 80% of this extra money for future investment.
  48. 48. Get Into the Fast Lane The infamous American bank robber, Willie Sutton, had it right when he said, “Go where the money is and go there often!” I’m not advocating bank robbery, but merely pointing out that some things pay better than others. It doesn’t matter what is going on around you. Somebody, somewhere is making buckets of money. You must find the people who are making lots of money, and learn to do what they do. Copy them. Study their habits, read their publications, and research the industries in which they are involved. Try your best to meet them and, if you can, become friends. If you do get to meet with them, make sure you are prepared and ask lots of questions, including: 1) If you had to do it all over again, where would you start? 2) What words of advice would you give to someone wanting to duplicate your success? 3) What’s the best way to make money in today’s business environment? 4) What were some of your biggest mistakes that delayed your success? There are many roads to riches. Talk to the travelers who have already paved their roads with gold, because the successes of others can be duplicated and improved on. By learning successful moneymaking strategies from other people, you can take years off your journey to become financially independent. Learn how to make money without having to “reinvent the wheel” or waste valuable resources on trial and error. Like a modern highway, the road to riches has more than one lane, so shift gears and get into the moneymaking fast lane!
  49. 49. 55 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Time Is A Limited Resource People will spend more time to entertain and distract themselves than they would ever consider using to become financially independent. It takes a significant time commitment and level of maturity to be rich. This is more than most people are willing to give. How someone spends their time affects whether or not they will become rich. Do you find yourself talking on the phone, texting, emailing, surfing the Internet, and playing video games when you should be doing other things? I’m not going to begrudge someone for distracting themselves when they could be working toward their financial freedom. After all, our society needs its share of financially poor laborers if it’s to function properly! People who willingly trade their opportunity to become financially independent for a distraction are the “Rather Be’s” of the world—you know—“I’d rather be doing this” or “I’d rather be doing that.” Time is a limited resource. I understand that the dog needs to be walked, you have to spend time with family, you’ve got plans for the weekend, your friends need face time, you’ve got to squeeze in a round of golf, and you need some personal time. We all have responsibilities and pleasures that occupy our time. If, however, you intend to be rich, you must learn there’s a time and place for everything, and everything you do must be done smartly. The passage of time can be a threat to the achievement of your financial independence. Be judicious and guarded with your time because it’s the most precious resource you have. Time is the currency of self-improvement and must be spent wisely. Spend more time educating yourself and developing multiple sources of income, and spend less time on things that trap you in your current lifestyle.
  50. 50. Why invest hours of your day watching television and playing on the Internet, when you can put your “time currency” into research, interviewing successful people, and learning how to go from flat broke to financially independent? The time you take away from the things you would rather be doing and give to the things you should be doing to be rich, is a sacrifice you must make to reach your financial goal. Your time is the most precious resource you have. Spend it wisely. Time is the currency of self-improvement. Knowledge That’s Richly Rewarded Your brain is your greatest wealth creation asset. You must fill it with information that will help you to achieve your goals. If you want to make money, you must develop and foster skills that are highly rewarded by society. Learn to specialize. A college education is an important part of this process, but not critical if you are committed to self-education. Statistically speaking, college graduates make more money, thanks, in part, to their demonstrated ability to set and achieve long-term goals. This doesn’t mean you should go to school, collect a plethora of degrees, and burden yourself with mountains of debt on the mistaken belief that multiple degrees will automatically make you rich. Education without purpose can be a cleverly disguised distraction from the achievement of your long-term financial goal. And let’s face it—some college degrees have more value to society than others. Knowledge alone is no guarantee you will be rich. Look no further than your typical school teacher and you will discover some of the most educated people in this world are nowhere close to becoming financially independent. Teachers
  51. 51. 57 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << are not richly rewarded by society for the job they do, so they must pursue riches outside of the classroom if it’s important to them. Some teachers do get rich, and they will tell you that knowledge was only a part of that process. Knowledge by itself is not power. It’s possibility. The power to become rich is hidden within knowledge and can only be extracted when it’s combined with intelligence and purposeful action. You must learn and then successfully accomplish an endeavor that has a high value to society if you want to make lots of money. Possessing a richly rewarded skill is the most common way, but not the only way, to create your financial independence. Whatever you decide to do, the learning process never stops. Successful people constantly educate themselves. They read books, take classes, read trade and financial publications, do research, attend seminars, listen to audio books, learn from other successful people, and explore new ideas. You must continually fill your brain with useful knowledge as well and apply it to society’s problems in a meaningful way. Your best tool for creating riches is the grey matter between your ears. Again, a college degree is not a prerequisite for financial independence. Bill Gates didn’t have a college degree before he founded Microsoft and went on to become one of the richest men in the world. But he was highly educated and possessed specialized knowledge. If you want to make an abundance of money, you must become educated in something that’s financially rewarding and then take purposeful action. Knowledge by itself is not power. It’s possibility.
  52. 52. Two Ways to Make Money There are only two ways to make money in this world: with your brain or your brawn. There’s an immense difference between these two methods, because one can be scaled while the other cannot. One has virtually unlimited income potential, while the other is limited by personal involvement and time. The single most important factor in determining which category a money-making opportunity falls into is your involvement. If you work somewhere that requires you to be present, you are working by brawn. This means you are the critical element to the economic equation that determines your income. And without your participation at some level, money won’t be received. Maybe you own the company, are salaried, get paid hourly, receive a commission, or are an independent contractor. The one fatal flaw to your business model is you. There’s just one you and only a certain number of hours in a workday, which limits the things that can be accomplished. To get better results, you push these limits by working harder and longer, but there are still only 24 hours in a day. “BRAWN-work” has limitations that will drain you both physically and emotionally, and could end up killing you. The total number of hours you can work in a day is an absolute boundary to your productivity and, therefore, limits the amount of money you can make. Alternatively, if you have investments and a business that makes money but requires little or none of your time to manage, you are working with your brain. Like BRAWN-work, the acid test for “BRAIN-work” is the extent of your involvement. Can you walk away from whatever you are doing for a few months and not experience a significant drop in income? If so, this is a good indicator
  53. 53. 59 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << you are working with your brain. People engaged in BRAIN-work have removed themselves as the critical part of their money-making system. They work because they want to, not because they have to. True BRAIN-work is neither physically nor emotionally draining. BRAIN-work eliminates the boundaries on scale, allowing you to automate and grow. For instance, after Ray Kroc bought McDonald’s from the McDonald brothers, he did not stand around cooking hamburgers for hungry customers all day long. He perfected his Fast Food Business Model, and then he grew, or scaled, his business from a handful of locations to over 32,000 restaurants worldwide.
  54. 54. BRAIN-work and BRAWN-work are the only two ways to make money. The money that can be made with BRAWN-work is limited by your personal involvement and time. BRAIN-work has no such limits and can be scaled. Intelligently scaling your system of moneymaking to massive proportions is the difference between making a million dollars and a billion dollars. If you want to be rich—and I mean roll-around-in-your-own-private-vault rich—you need to work using your brain and then scale up your successful moneymaking system. The BRAIN-work Challenge True BRAIN-work eludes most people, even though the rewards are well worth the efforts required to create it. BRAIN-work is defined as a system of making money that requires little or no ongoing involvement from you. It is a virtual cash machine. It can make you money while you sleep. There are many ways to create BRAIN-work; it can be as simple as having a series of passive investments, a traditional business others manage for you, or an automated Internet business that works for you around the clock.
  55. 55. 61 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Remember that one product, idea, or design you have rolling around in your head? You know, the one that always makes you think, “This would be a great idea if….” Now, imagine sharing your idea with people in every corner of the planet and then getting paid for it. Can you afford to pass on that prospect? Everyone has an expertise or a moneymaking idea about something. What could you do to make money utilizing BRAIN-work? I challenge you to develop a BRAIN-work system of making money. If you already have a BRAIN-work system of making money, create another. The key to developing any successful business is to discover a need, void, or want in the marketplace and then use your talents to satisfy it. Maybe you can invent something useful, improve on an existing product, create a new process for doing something, or sell a critical service. Is there something you do and know about in your current BRAWN-work job that can be changed to BRAIN-work? There are thousands of things that you could do, but “I don’t know” isn’t one of them. If you approach this challenge with an open mind and take intelligent action, you will find a BRAIN-work method of making money. After you’ve generated a few ideas for BRAIN-work, your next step is research. The answers to all the reasons why you can’t complete this challenge and any problems you encounter along the way are contained in a book, found on the Internet, understood by someone else, and taught in a class. Find the solutions you need to create your BRAIN-work. It’s critically important that you believe you can create BRAIN-work. If you get stuck, find another way. If your BRAIN-work turns out to be a bad idea, find a better idea. Whatever happens, you must not give up. Your success depends on your idea, your determination, and your ability to execute a meaningful plan.
  56. 56. Scaling your system of moneymaking to massive proportions is the difference between making a million dollars and a billion dollars.
  57. 57. 63 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << CHAPTER 4: GREED IS A MONSTER WITHIN To live life the hard way, work for your money, spend it all, and make no provisions for the future. Alexander was a greasy-haired, boisterous, fat man completely obsessed with living the lifestyle of the rich and famous. A bachelor in his mid-50s, he was the center of his own universe, and people seemed to shuffle in and out of his life like the regular cadence of waves crashing upon a rocky shore. There was no separating him from his vanity; it was his identity, and to be deprived of it would be the loss of his sole purpose in life. Alexander liked to be the center of attention. He traveled to exotic places and sought to be seen at the trendiest spots in town. He bought the latest fashions, the newest luxury automobiles, expensive jewelry, and other flashy status symbols. To him, it was important to maintain the appearance of a lavish lifestyle, because it was the tool he used to demonstrate his wealth and gain the respect of others. Even with all of the wonderful luxuries that surrounded Alexander, he was a troubled and lonely man. The people in his life all shared his core values, and his relationships with them were never wholly gratifying. He didn’t realize his vanity cost him what he needed most—true love and belonging with people who really cared about him.
  58. 58. Alexander financed his lifestyle with the income he got from a series of moneymaking schemes he offered to hapless investors. Money made, money spent—every dollar he received was funneled back into his ever-growing lifestyle. Only Alexander benefited from his business dealings, and his generosity went as far as his own interests would allow. In his wake, he left tangled wreckage from the hopes and dreams of the naïve who had trusted him with their money and were poorer for their experience. Extravagant lifestyles are expensive and difficult to maintain. Eventually, Alexander’s income couldn’t keep pace with his ballooning expenses. His credit cards maxed out, banks refused to lend him money, and there was no one new to pay into his investment ideas. His world started to crumble. He became reflective about his financial hardship, but never seriously considered changing his lifestyle. He needed more money and he needed it fast. Alexander decided to create another type of investment, and told everyone he knew that it would double their money every few weeks using the power of the Internet. He produced charts and graphs to prove that his idea worked and promoted it as the “Magical Money Machine.” A few people invested in this magical machine and, for a while, it worked. Early investors doubled and even tripled their money. As news of this magical machine’s success spread, thousands of people lined up to invest with him. His machine had saved him from financial ruin. He now had more money than he knew what to do with, and he spent it on anything he fancied: a Beverly Hills mansion, a yacht, vacation homes, and a private jet were just some of the things he purchased. He was a playboy at the zenith of his popularity and the toast of the town. Alexander, however, had a secret. Like all of his past investment ideas, the Magical Money Machine didn’t really work. It was an elaborate hoax that he had concocted out of desperation. It was nothing more than a “Ponzi scheme,” paying early investors with the money received from later investors. He never
  59. 59. 65 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << imagined that so many people would jump at the opportunity to invest with him merely by promising them outlandish returns on their money. His machine had appealed to their greed, and they couldn’t resist such a fantastic opportunity to satisfy it. Alexander’s money problems soon returned. His lifestyle expenses exceed his income once more, and the Ponzi scheme was on the verge of collapse. He knew it was only a matter of time before his investors figured out they had been cheated. The day came when Alexander simply vanished. Some people suspected foul play while others thought that he went on an extended vacation and would return shortly. At first, it didn’t occur to anyone that he had skipped town with the remainder of their money, but that’s exactly what Alexander had done. He was never seen or heard from again. The Fourth Financial Law of Prosperity The Fourth Financial Law of Prosperity is Live a Sustainable Lifestyle. Avoid the lifestyle trap and maintain a sustainable standard of living that will help you accomplish your long-term financial goal. You must first create a sustainable source of income (discussed in Chapter Eight) before you can have a sustainably affluent lifestyle. It’s important to consider the long-term effects of your buying decisions. Everything you can buy, possess or control has a cost of ownership, which can keep you from achieving your financial goal by saddling you with extra expenses and costs. Accumulate assets that contribute to your financial goal, and avoid,
  60. 60. or quickly discard, items that burden you with high ownership costs. Having possessions and privileges in your life doesn’t automatically mean you have a problem with your lifestyle. However, your lifestyle spending (housing, utilities, food, clothing, charitable giving, dining out, entertainment, travel, fuel, insurance, bills, taxes, etc.) must never be allowed to grow out of control and exceed 90% of your total income. The Ten Financial Laws of Prosperity are less about squeezing your personal finances into one-size-fits-all percentages as they are about intelligently managing expenditures while creating and protecting your wealth. It’s important to remember that the application and interpretation of these Laws can vary with individual circumstances. Summary of the Ten Financial Laws Laws Action 1. You Must Believe Manage your beliefs, intelligently develop a plan, and take purposeful action. 2. Save for The Future Save 10% of your primary income for future investment. 3. Make More Money Create multiple sources of income and save 80% of this extra money for future investment. 4. Live a Sustainable Lifestyle Avoid the lifestyle trap, and recognize that the things you buy can have unforeseen ownership costs.
  61. 61. 67 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << The Lifestyle Trap and Human Need A person’s lifestyle, or the way they live, is a physical expression of their values and beliefs. People often spend beyond their means in an attempt to achieve their ideal lifestyle. Over time, more and more of a person’s financial resources go toward maintaining their lifestyle, leaving little money for anything else. This behavior is known as a lifestyle trap, and unwittingly costs its victims their financial independence. A lifestyle trap diverts a person’s attention away from the long-term effects of their reckless money management, and focuses it on the immediate need to sustain their current standard of living. What drives these lifestyle spending decisions? Are “new,” “more,” “different,” and “better,” the only driving forces behind the purchase of goods and services? Is keeping up with the Jones really that important? As it turns out, there are psychological reasons for this type of human behavior. In his book Motivation and Personality, Abraham H. Maslow explains that all humans attempt to meet a certain ranking, or hierarchy, of needs. He describes five levels of human need and the relative order in which people will attempt to satisfy those needs. According to Maslow’s theory, a person cannot satisfy needs ranked higher on the hierarchy without first satisfying needs at the bottom. This means that we will satisfy our basic needs for survival before we attempt to do anything else. For example, it would be hard for you to pursue your need for “love and belonging” if you were lost in the woods freezing to death. Below are Maslow’s five categories of human need and the primary order in which they can be satisfied: 1) Physiological: These basic human needs are necessary for our survival. They include: air, water, food, shelter, clothing, and sleep. You can’t survive without meeting these needs, so they are first on the hierarchy, and the most important.
  62. 62. 2) Safety: We all need to feel safe and secure in our environment. We cannot thrive if we are afraid. Feelings of safety can come from physical health, law and order, justice, financial wellbeing, and irrevocable human rights. When we feel safe in our environment, we will pursue our next level of need. 3) Love and Belonging: Once a person has met their basic needs for survival and safety needs, he or she will seek to have meaningful relationships with other people. We are social beings with a need for love, belonging, and acceptance. These needs can be met through friendship, family, intimate relationships and other social interactions. 4) Esteem: Once a person feels love and belonging, he or she will seek to be valued and accepted for the contributions they make to his or her peer groups and society. Esteem needs can be met through personal and professional achievement, volunteer work, receiving recognition, and gaining respect from others. 5) Self-Actualization: When a person has achieved all of their other needs on this hierarchy, he or she will seek self-actualization, or the desire to find meaning and fulfill his or her purpose in life. Everyone must discover how to bring meaning and fulfillment to their lives with the talents they have been given. Without a purpose, we become dissatisfied and lose our appreciation for life. You must find and fulfill your purpose to discover how wonderful and satisfying life can truly be.
  63. 63. 69 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Everything we do, whether a positive or negative behavior, is an attempt to meet one or more of our five human needs. Sometimes, a person will get stuck trying to meet one level of need and cannot progress to the next level. To understand why people do the things they do, you must first understand what needs they are trying to satisfy with a particular behavior. Money, for instance, can be used to meet nearly all of your physiological needs (food, water, shelter, etc.), though once you move beyond the basics needed for survival, you begin to use money to meet your emotional and mental needs farther up the hierarchy. This is the point where satisfying your human needs, spending money, and the desire to live a certain lifestyle all collide. How do you use money to meet your five needs? Human needs typically are uncovered by the feelings associated with and the motivation behind a purchase. For instance, if you trade in your perfectly good car for a newer model to get respect from your friends, you are trying to satisfy your need for Esteem. If you bought the car as a gift to win back your significant other, you are seeking to satisfy your need for Love and Belonging.
  64. 64. When you are caught up in a lifestyle trap or have a spending problem, the reason why has nothing to do with other people and everything to do with you. Everything you spend money on is an attempt to meet one or more of your five human needs. To break a cycle of needless spending, you must identify which of these needs you are trying to satisfy with your purchases, and then consider the long-term financial consequences of your actions. Is the short-term benefit of your spending worth the ultimate sacrifice of your financial independence? You must find and fulfill your purpose to discover how wonderful and satisfying life can truly be. The Lifestyle Fence Society tends to measure prosperity by where a person lives, their profession, and what they own. There’s also another measure of prosperity based on the perceived quality of the material things that a person has in his life. If someone were to drive up to an expensive high-class hotel in an economy car, rather than a luxury automobile, many would expect the parking valet to inform the driver that the employee entrance is at the rear of the building! Driving an economy car in our society is not considered to be a sign of prosperity, but if you drive a luxury automobile people automatically assume that you are rich. It’s this misconception of what it means to be rich that helps set up people for a lifetime of financial failure. We have been conditioned from an early age to believe wealth means material possessions, and if we have the right “stuff,” we are rich. Not surprisingly, when most people get money, they try to live up to this societal image by spending it all on—you guessed it—stuff. While it is undeniable that the rich have more possessions and privileges simply because they have money, most people fail to recognize what it really takes to become sustainably rich—hard work, creativity, time, and discipline. So, naturally, when someone with this stereotypical belief
  65. 65. 71 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << gets money, and has access to money in the form of credit, they spend it in an effort to attain the appearance of wealth. People, who use money and credit to fit in with society’s stereotypes or images of wealth, are pretenders and spenders. They will always struggle to maintain a lifestyle they haven’t really earned. These people have yet to understand that they must first create a sustainable source of income before they can have a sustainably affluent lifestyle. There’s no harm in looking over the lifestyle fence and saying, “Gee, I wish I owned that big house and luxury sports car.” For some, this will be the defining moment in which they change their approach to acquiring money and decide to become financially independent. Most people, however, will continue chasing a lifestyle they can’t sustain over the long-term. They will never experience a lifetime of financial independence, because they are clueless about what it really takes to be sustainably rich. Having possessions and privileges in your life doesn’t necessarily mean you have a problem with your lifestyle. The Ten Financial Laws of Prosperity allocate up to 90% of your total income to be spent on your lifestyle, though your 90% won’t match someone else’s 90% if you have different income levels. For example, a person who makes a million dollars per year can spend nine hundred thousand dollars of that income on their lifestyle. This allows them to buy a lot more stuff than someone who only makes fifty thousand dollars per year. Spending only becomes a problem if your expenses exceed your income and you are not saving a meaningful amount for future investment. The Ten Financial Laws of Prosperity work universally for everyone, but not everyone is willing to do the work needed to achieve their financial independence. When a person who is poor looks at the lifestyle of the rich, they tend to see only the benefits of money and not the hard work, discipline, and
  66. 66. time it took to create the source of money that supports that particular lifestyle. Anyone can be rich if they are willing to do the work required to accomplish this goal. However, they must understand that they need to create a sustainable source of income before they can have a sustainably affluent lifestyle. The True Cost of Ownership Have you ever stopped to consider the long-term effects of your buying decisions? Price is what you initially pay for an item. But what you might not realize is its true cost of ownership over time. Everything you can buy, possess, and control has a cost of ownership. These costs can be obvious, like a monthly service fee for your telephone, or something you never really considered before, such as depreciation on your car, the amount of time it takes to maintain an item, or the cost to feed and care for an animal. A direct cost of ownership is any monetary cost directly attributable to an item you own. The price you pay for something is a direct cost. Another direct cost is depreciation, or an item’s loss of value over time due to its use and obsolescence. Other direct costs include add-on sales, service fees, storage costs, taxes, maintenance costs, loss from spoilage, fuel, and insurance premiums. An indirect cost of ownership is any nonmonetary cost attributable to an item you own. Compared to direct costs, indirect costs are a little harder to spot. Common indirect costs include the amount of unpaid time and physical effort spent taking care of an item owned or in your control. Your unpaid time and effort spent cleaning a fish bowl is an indirect cost of goldfish ownership. Example: The ownership costs of a boat
  67. 67. 73 >> Get the most recent edition of this book and AUDIO version at www.BeRichBook.com << Direct Indirect Price paid for the boat Time spent cleaning Insurance Time spent maintaining Maintenance Wear & tear on your tow vehicle Docking fees Time spent in boating class Fuel Time spent preparing for use Registration fees Other? Add-ons: lifejackets, boat hook, rope, trailer, etc. Depreciation (loss of value) Storage fees Other? Everything you have in your life has a cost of ownership that can be measured by the direct and indirect costs associated with it. Things with a high cost of ownership make you poorer. Things that create more resources than they consume make you richer. Anything that makes you richer and is a store of value can be considered an asset. Assets create more resources than they consume or have intrinsic value; therefore, the benefits of ownership should always outweigh any associated ongoing cost. You must own and cultivate resource-producing assets if you want to have a lifetime of financial independence. Ownership of anything can be debt and obligation in disguise. The vast majority of people spend their money on things that have a high cost of ownership, making it virtually impossible for them to become financially independent. They accumulate possessions and services that constantly nibble at their wallets and steal away valuable time that could have been better spent on more productive endeavors. Avoiding the purchase of goods and services with a high cost of

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