9 Mar 2009
My very steep mountain I plan to climb. (My Mission in life)
This entry is about my mission in life, and my mindset right now.
My goal, is to be very wealthy. I don’t really have a personal need to be wealthy but I have felt for a long time now that it is my calling in life to be so. The reason for this is that I can help many people out, so that I can leave a legacy for my children and their children and to help the Kingdom of God in all of this. I want to be the one who builds schools, churches, community housing projects and so on. I have had a desire for this for many years but have gotten distracted a few time. Now I feel like I am behind schedule, I have this huge goal and to accomplish it I need to act now and act aggressively. I need to have a very steep slope to my net worth mountain.
The good news is that in times like this, with economic turmoil and such it is actually easier for a smart person who sees the trends to gain massive wealth. I can buy stocks in good companies for huge discounts. I can buy houses for cents on the dollar. These things will always rebound, they may take some time but they will. I can take advantage of the huge wave of people who are eager to snatch onto the dream of finally being their own boss, I can consult with them and make tools for them to get there easier, because I have been there my whole life. Of course I will charge for this service.
My goal is to have a net worth of $5 million dollars by the time I am 40 years old, and $10m by the time I am 45. (I am 33 now) I will consider any donations I have made to be part of my net worth. To get there I would need to earn a huge amount of money. I will invest most of that money until I get to my goal. This is a very steep mountain to climb. I have made money at this rate in the past buy I grew my company too fast and trusted people who screwed me and soon I was bleeding 10k+ per month. I have learned that lesson but I do know that I can not do all of this myself. I need to use other peoples money and other peoples time to get to where I need to be. If I do everything that needs to be done I will never make it, never even get close, I have to hire others to join me. For over 10 years now I have always had at least a few people who work for me, people who I can call when I make a sale.
So to make this goal I need to really start to climb, to earn huge amounts of money. Well that is actually much easier than you may think it is. There is more opportunity now simply because the market is totally inefficient right now. This means that prices are all over the place for the same item, mostly caused by crazy desperate people who are selling things at fire sale prices. This lets us take advantage of research and work to find the best price on something and sell it to someone who does not do the research. This can be done on houses, cars, computers, information, labor, and almost anything else that can be bought and sold. You can buy cars for $5k that sell for $10k the next week. You can buy houses for 20k that were once worth 200k and sell them for 80k with ease. I just bought over $1500 in computer parts from a guy for $100 simply because he got them from a guy who went out of business and had no idea what they were worth. Money is just sitting there everywhere waiting for someone to pick it up.
Right now is the best time I have ever seen in my life to buy Real Estate, and probably the best time there will be. You can buy a house now for such a low price that you can rent it out and have the rental payments cover the entire cost in under 5 years. You can then hold on to these houses for 10 years and sell it for many times the purchase price. This is the main way I plan to make my long term money, but I need to fund this with short term money. My plan for this is to sell websites, sell business opportunities, such as this one or this one. I have another huge idea in the works that I think will make a million dollars in the next 3 years as long as it is done right. I need all of this because I have a high goal.
Mindset is Key.
Less than half of a percent of the population in the US has a net worth over $1 million dollars, and with the current market that number is falling. Most of the population is deep in debt and the ones that are not don’t have a huge net worth. Most people simply do not posses the entrepreneurial spirit, they do not have the mindsets required. They do not even have this as a goal. There is probably less than 2% of the population that is serious about being an entrepreneur, about being truly wealthy and free. For me and these others like me we must have a different mindset from the rest of the world. What works for the normal, happy to have a job, people in this world actually hurts us. And what works for us does not work for them.
There is about 10% of the population that thinks that they are an entrepreneur, people who have gone out and created for themselves a business, or they dabble on the side trying to run a small home based business but most of these do not have the correct mindset. They simply do not see it. For years many of my friends have fallen into this group, and for years I have talked to them, tried to show them the way. Given them books on the subject like the awesome E-Myth by Michael Gerber. All with very little result, they almost never get it, and they just can’t figure out why even when I tell them directly, so for the most part I have stopped. I love to deal with the people who have the right mindset already. You can tell someone simply does not get it when they keep saying “You can’t do that” but in reality there is very little we can not do. We can buy houses for 10 cents on the dollar and not use one cent of our own money, we can sell a service to a client for one price and then hire someone else to perform that service for a much lower, yet still fair price. We can do something once and get paid for that work for a long time to come.
To have the correct mindset you must realize that there are different rules for us. I have found that people like Donald Trump, Robert Kiyosaki, Ric Edelman, Dean Graziosi and Adrian Cartwood can equip you with the correct mindset. For the other people who are not entrepreneurial they can listen to people like Suzy Orman, Clark Howard and David Ramsey but for us much of the information they say is toxic to our mindset. They focus on what to do with the money that you earn, how to divide it, how to save it and such, and they focus very LITTLE on simply making more. They focus on how you should not used debt at all. I agree with all of this for “normal” people. I think that normal people should only take on debt to go to college and buy a meager house, and maybe to buy a first car. They should save their money for retirement and live a very frugal life. They should max out their 401k and invest in mutual funds. (For all people even these I strongly suggest that they separate their home equity from their home, it make much more sense.)
But for us E-Type people this is crazy talk. I know I can do much better in life than that sort of existence. If we have a good idea we should borrow to make it happen if we don’t have the resources ourselves. We should keep an eye out for the needs of others and look for ways to fill those needs. We should delegate anything that we can to free up our time to focus on growing our business. We should focus on increasing our income 10 times as much as we focus on where it all goes.
E-Type people should give away money with abandon to worth causes. I personally believe in Christian education and I help out many children go to private Christian schools, third world children who would not have a good education if I did not help out, now they have a chance to be something great in the future. Almost every millionaire I know gives away more money per year that most people earn. I remember a few years ago my Grandfather walked into his local church and gave them $100,000, just a few months before he died. I remember growing up with my uncle and seeing him write checks for $5,000 when a missionary came to his local church. I remember he would always give us $10 or so every time the offering came by and we would dump it in, teaching us to give. I have a good friend locally who makes over $50k a month and gives over $10k of that away each month. We are blessed to be a blessing, the more you send out the more you will get — people just don’t get it.
I really hope that you have gotten inspired by all of this. I was inspired by the 7m7y project recently. And just this week by two other great guys. We really