By: Steve Siebold
Doesn’t it seem like the rich keep getting richer while the middle class is stuck in the same old spot?
Economic inequality is a hot topic right now, and many people go as far as accusing the wealthy of having some sort of unfair advantage. Those are easy accusations to make, and they resonate well with some people. But the truth is, there are no unfair advantages.
Everyone has the same opportunity to acquire wealth.
The biggest thing holding back most people from striking it big are their thoughts, beliefs and philosophies about money. The differences between how the wealthy and the middle class look at money are as extreme as they are numerous. It’s as if the two groups are living on completely different planets.
So what are the money-making secrets of millionaires?
1. The wealthy focus on earning.
The masses focus on how to protect and hoard their money. The wealthy also know saving is important. But they know earning money is even more important. Most people are more concerned with the modest gains they accumulate from their savings and investments than they are with using their billion-dollar minds to create a fortune. Instead of focusing on clipping coupons and living frugally, the wealthy reject the nickel-and-dime thinking of the masses and focus their mental energy where it belongs: on the big money.
2. The wealthy use leverage.
In the minds of millionaires, leverage is everything. The wealthy strategically focus their efforts on the most profitable areas of their businesses while leveraging their contacts, credibility, and resources to maximize the results of every action they take. The middle class sees hard work as a badge of honor. The wealthy sees success as a more important badge of honor.
Think about what you were taught about hard work growing up. If you’re not exactly raking in the money, make a decision to let go of any limiting beliefs you have about hard work, and start thinking about how you can use leverage to become more successful.
3. The wealthy think about money in non-linear terms.
The masses trade time for money. This creates the belief that making money is a linear process directly connected to time. The average person believes the only way to earn more money — with the exception of raises and bonuses — is to work more hours.
Millionaires know big money requires thinking about it in non-linear terms. They are masters at generating money through ideas that solve problems. They realize there is no limit to ideas; therefore, there is no limit to how much money they can earn. Fortunes can be created almost overnight with the right idea at the right time, but only if the creator understands this non-linear phenomenon.
4. The wealthy see money through the eyes of logic.
The wealthy see money for what it is and what it’s not, all through the eyes of logic. Unfortunately, few people are able to think about money without clouding the subject with negative emotions, which come from dozens of middle-class beliefs that are ingrained in our minds when we are young. Emotions have a useful place in our lives.
But when it comes to thinking about money, put your emotions on the shelf and let reason be your guide. When you stop thinking about money through the eyes of emotion, you are free of the psychological chains binding you and free to earn all you can. Decide today to use logic to dictate your financial strategies and emotion to motivate yourself to stick to it.
5. The wealthy believe being rich is a right.
The average person believes being rich is a privilege awarded only to lucky people. World-class thinkers know in a capitalist country they have the right to be rich if they’re willing to create massive value for others. They believe if they make life better or easier for others, it’s their right to be rich. They’re always thinking of new ways to build a mousetrap — and are often scorned by the masses for being materialistic, self-absorbed and greedy.
The great ones believe they have the right to be as rich as the value they create. Stop believing self-made millionaires are just lucky. Start believing you are worth every dollar you earn and more.
The most important thing to remember about money is that regardless of your education level, IQ score, or performance in school, you have everything it takes to become a millionaire and earn all your desire. Stop thinking about money in terms of fear and scarcity, and start thinking about it through the eyes of freedom, possibility, opportunity and abundance.
If you’re rich, keep thinking the way you’re thinking. If not, maybe it’s time to change the way you think about money.
Steve Siebold is author of “How Rich People Think” and a self-made multi-millionaire who has interviewed 1,200 of the world’s wealthiest people during the past 30 years.
I hope these insights will help you as much as they did for me and more!
Source
How to Earn More and Work Less
Do you want to continue working 50, 70, 100 hours a week the rest of your life?
Good! Neither do I.
Do you want to be able to take time off whenever you want to, without worrying about what's going to happen to your business?
So do I!
There's a saying in the corporate world: "Don't make yourself irreplaceable. If you can't be replaced, you can't be promoted." As an entrepreneur, this is still true in its own way. Let's think of "being promoted" as earning more and working less. You can raise your prices, but until you can remove yourself from being directly involved in doing the work that generates the income, there's always going to be a limit to how much you can earn, and it can only increase very slowly.
Passive income, on the other hand, is income that does not require your direct involvement. Some kinds of passive income you may be familiar with include owning rental property, royalties on an invention or creative work, and network marketing. If you want to earn more, work less, and have a decent retirement, you're going to have to start creating income streams that do not require your direct involvement. Whether you're just starting your business, or you've been running it a while, the sooner you start thinking about how you are going to shift your business model to create more passive income, the sooner you can achieve personal and financial freedom.
Let's look at two basic types of passive income, and a third type of income that, while technically not passive, is a key strategy for earning more and working less.
Residual Income
Residual income is revenue that occurs over time from work done one time. Some examples include:
- An insurance agent who gets commission every year when a customer renews his policy
- A network marketing or direct sales rep's income from her direct customers when they reorder product every month
- An aerobics instructor who produces a video and sells it at the gyms where she teaches
- A marketing consultant who creates a workbook and sells it in e-book format on the Internet
- A photographer who makes his photos available through a stock photography clearinghouse and gets paid a royalty whenever someone buys one of his images
- A restaurant or retail owner who has grown to the point of hiring a trustworthy manager
As you can see, there are many different ways to generate residual income across a wide variety of businesses. It may be recurring income from the same customers, or the sales of a product to new customers. It may require no personal involvement whatsoever, such as an e-book sold on a web site, or it may require some personal interaction, such as the insurance agent calling the customer to remind them about their renewal and ask them if they want to change any of their coverage. Often, it's something that you can delegate to an assistant.
Note that this is different from merely recurring income. Recurring income may still require your involvement to earn the income, e.g., a coach or consultant on a monthly retainer, or a caterer who delivers lunch every Monday to the local school board. While this "active recurring income" offers welcome stability, it also tends to tie you down, and you still have limits on your earning capacity based on your own personal production capacity.
Leveraged Income
Leveraged income leverages the work of other people to create income for you. Some examples of leveraged income include:
- An e-book author selling her e-book through affiliates who promote the product
- A network marketer who builds a downline and receives commissions on the sales made by people in his downline
- A general contractor who makes a profit margin on the work done by sub-contractors
- Franchising your business model to other entrepreneurs (the ultimate leveraged income)
Again, there are many different models in many different businesses. The key is that you are making money off of other people's labor, rather than primarily your own. Note that leveraged income may or may not also be residual income. When you combine them, that's even better.
Active Leveraged Income
This is a term I use to describe income that requires your direct participation, but that you can make more money by having more people involved. This generally involves a one-time event, such as:
- A seminar or class
- A conference or convention
- Concerts and dance recitals
- Raves and other parties
Although these require your direct participation, your earning potential is much higher than if someone were just paying you a direct hourly rate. Fill a room with 1,000 people paying $50 each and you can cover your facility cost, promotional cost, and staffing fees and still have a nice chunk of change left over.
Applying It
Now is the time to think about how to apply this in your business. Can you create a product that people will buy over and over again? Can you engage others to sell your product? How could you make money off the work of others?
The sooner you answer these questions, the sooner you'll have financial and personal freedom.
Source: http://entrepreneurs.about.com/od/gettingstarted/a/passiveincome.htm
