Archive for April 2012
I am in the studio today working on our new exciting wealth training project – Millionaire Training Systems – Real Strategies by Real Millionaires. In this program I will teach about how to get out of debt, crete cash-flow and building abundance. This will be a six DVD set where we will go into great detail on the techniques that I use to create more wealth in my own personal life and strategies that I have also seen in the lives of other millionaires. For those who would like to get a set we will be including about $500 worth of bonus materials for the first 100 that order. The project will be available in about two weeks. If you are interested to take advantage of that offer let us know and we will make sure you don’t miss out.
A secret lesson in growing wealth
By Douglas Vermeeren
There are many financial programs, seminars and advisors that provide the promise of financial abundance and instant changes to your current financial situation. Yet many of these programs offer complex strategies on money management and investment that either require a degree in economics to implement or in the end don’t provide the pay off that they promise. Is there a formula or system that will work to create greater financial security and an abundance financial future? Is there a strategy that will work for everyone, even those who don’t have extensive financial education?
Some gurus suggest there is no such thing as a blanket answer that will provide a solution to the financial challenges that so many people face today. But is there? And if there is, where do I find it and what do I do with it once I possess it?
There is a solution. One that will will work for everyone. The only difference will be in how it is applied. The challenge for most people is that this solution has been a secret. When you hear what it is you may not agree that it’s a secret, because it is so simple. But just because an idea is simple – don’t mean it is well understood. In fact, we generally measure how well something is understood by how common it is practiced. If that is the measurement of how well something is understood – then this is one of the greatest secrets ever revealed to mankind about money. Here’s the secret to become debt free, financially abundant and achieve incredible prosperity. Are you ready?
The Secret: It’s not how much money you make, it’s how you spend it!
The illusion: Most people think that how much they spend day to day is not really going to make a difference to their overall experience financially. But this is far from the truth.
The way money is spent in your life will either create freedom and opportunity or take it away. Too often people assume that incredible opportunity and extreme freedom are given only to those with a lot of money. Again, that freedom and opportunity are found in how the money is spent. We see examples are around us (especially among celebrities and professional athletes) who make millions of dollars but become victims of vice and in a short time find themselves with a shrinking experience of freedom and opportunity until their popularity and money have both vanished. on the contrary we also see many who begin with very little money and ultimately become highly freedom and experience an abundance of opportunity. Such was the case with Warren Buffet who at his first job made close to $12,000 annually but later became one of the wealthiest men in the world.
So how should you spend your money for greater financial success? Before I answer that it is important to remember that every purchase you make is an investment. You are trading your money for what you value most. Having said that keep in mind that there are purchases that return value (appreciate) and purchases that do not return value. (Depreciate)
The difference between high net worth individuals and those in poverty situations is found in where they spend their money. A recent study demonstrated that people in poverty situations, or paycheck to paycheck survival mode typically spend an average of 97% of the income on purchases that do not appreciate or provide a return in value. This could include things like entertainment, shopping, eating out and so forth. So what amount do you think high net worth individuals spent on items that appreciate in comparison. I am always amazed when I ask this question at seminars. Attendees usually shout back answers like 50%, 60% or even as high as 80%. Is that what is required to become financially abundant – to dedicate the vast majority of your entire income to your future financial self. It doesn’t sound like fun.
Thank goodness that is not what is required. In fact, the difference is quite small. High net worth individuals actually spend only an average difference of 5% on assets that appreciate. But that 5% makes a huge difference. It reminds me of the saying that a large ship is steered by a small rudder. This is true in wealth building as well. The difference in the large things comes down to consistency and effectiveness in the little things.
One of my favorite life experiences so far has been to stand on the Great wall of China. Although the Great wall can be seen from outer space, when you get up close its interesting to see that it is really made up of small tiny bricks. This is the same way financial abundance is created. Small moments assembled to create significant victories.
One other thought: You may have heard about the expression – ‘Disposable income.” I don’t believe it exists. Disposable means to throw away. If you are in the habit of throwing money you will never be financially free. There is no such thing as disposable income. And if you have been throwing away your money – stop it.
Remember how you spend your money makes all the difference.
So what can you do about it?
– Start looking more carefully at your purchases every day.
- Consider what these purchases are costing you monthly and yearly
- Explore where you can better use your money
Remember it doesn’t take a large shift in your money to make a difference. But it does require that you make some changes and you become consistent in better spending habits. As you do this you will find greater financial abundance and more freedoma nd opportunity.
Douglas Vermeeren is the CEO of the Monthly Millionaire Mentor program (www.TheMonthlyMillionaireMentor.com) He is also the author of Guerrilla Millionaire, Self-made Millionaires for Dummies, The Millionaire Myth, Millionaire Wisdom. He is considered one of the top wealth trainers in the world today. You can find out more at www.DouglasVermeeren.com
What you believe can make you a money magnet!
By Douglas Vermeeren
In 1993, Collin was a young man just out of college when he firsthad the idea. He got it by driving through his community on a saturday afternoon. Everywhere he looked it seemed that people were having garage sales. As he stopped and poked around here and there the idea hit him. At college he had had his first brush with something new called the internet. Everyone he talked to suggested that this new network would change the world. As he wandered through the garage sales the idea came. What about starting a website that would allow people to sell things worldwide? Later that night with the idea still fresh in his mind he flicked on his TV and saw a live car auction. That’s when the idea really caught fire in his mind. What about creating an online auction site where people from around the world could bid on items that people wanted to sell? The idea fascinated Collin and he continued to think more and more about it. The idea seemed wonderful. A week went by, then a month, then a year. You might be thinking that Collin was the founder of what became ebay, but he wasn’t. In fact, Collin never even tried to build his website. When I met Collin is 2009 he told me about this experience and this great idea he had and reminded me that ebay had reported revenues of 7.7 Billion dollars last year. I could tell he wasn’t very happy about that.
I asked him about why he hadn’t tried to do something with his idea when he had it. He was ahead of his time and he most likely would have been extremely successful. He told me the answer came down to one single thing.
He didn’t believe he could do it.
If you’re wondering what the first essential ingredient of becoming a money magnet is… well, that’s it. You have go to believe that you are able to do it. Believe is a powerful thing. Henry ford said it best that whether you believe you can or believe you can’t either way you are right. I know believe sounds like a very elementary thing to start talking about, but in my ten years or so of teaching success and achievement, believe is the #1 thing that keeps people from greatness. It’s not necessarily that people either believe or disbelieve they are capable – it’s that they either don’t really believe they are worthy or ready to receive what they really want or they believe they are entitled to what they want but they don’t understand that you have to do more than just believe. You actually have to do something with the believe.
Let’s talk about both.
First the idea that people don’t always believe that they are worthy or capable of the success they are seeking. Specifically financial success. There is a principle in psychology known as investment bias. Basically what it says is that our minds feel that in order to receive a specific reward there is always a price to be paid. In other words the theory is that you have got to believe that you have invested enough effort, time, energy, resources or whatever it is in order to feel worthy o receive.
While it is true that in order to be a money magnet there are things you will have to do. But there is a slight problem with the theory of investment bias and wealth. People generally have no idea what a sufficient investment should be to be worthy of a specific return. As a result many people continually find themselves feeling more and more unworthy even though they are giving tons and tons of effort, resources, time and energy. How much of a payment is really required? People don’t know so they keep paying and thinking themselves unworthy? If you don’t see value in what you are contributing it is very difficult to be compensated and attract money.
So how do determine if you’ve paid the price? Do you ask someone else? Do you make a chart and record your hours? Do you find someone in your field and gauge your worth by how you feel your efforts measure up to theirs and value yourself in the same monetary way? These are all way that will reenforce your feelings of unworthiness. All of those methods are based on a competitive comparison. History has always demonstrated that comparisons like this will always leave you feeling like you are behind someone else. There is a place for competition, but it does not belong beside your belief in yourself. We’ll talk about where belongs later.
Yourself worth is something that only you can decide. You must decide that you are worth it and that you can be a valuable contributor. When you decide to believe in yourself and recognize that you are worthy to receive you will have activated the first element of creating your money magnet. The way to create more feelings of worth and worthiness is contains in the second part of this discussion on belief.
You’ll remember I said the second thing I encounter often about belief is people who believe they can do it because they feel it with all their heart, but they do nothing about it. It reminds me of the kid that goes onto American Idol thinking he is the next big thing, “I am the next American Idol.” Then he get s up there to sing and yikes, it is disastrous. He has no skills. Believe is never enough if you don’t have the skills. A true believe in oneself means that you become personally engaged in pursuing the thing that you really want. If you want to become a true money magnet you will believe it enough to start learning and doing the things that will make it more likely you can succeed. So how does this tie into the first part about worthiness?
Here’s the deal, remember the idea of Investment Bias. The psychology theory that states we must feel as though we have paid a price before we are entitled to something? Well, if you start believing enough to seek after the skills your feelings of worthiness will grow.
So before we move onto the next principle my challenge to you is Believe enough in yourself to actually do something about it. And my reminder is that until you do believe, and I mean firmly believe you can’t be abundant and wealthy nothing is going to change.
Douglas Vermeeren is the CEO of the Monthly Millionaire Mentor program (www.TheMonthlyMillionaireMentor.com) He is also the author of Guerrilla Millionaire, Self-made Millionaires for Dummies, The Millionaire Myth, Millionaire Wisdom. He is considered one of the top wealth trainers in the world today. You can find out more at http://www.DouglasVermeeren.com