If you look around you will notice that some people are more successful when it comes to money than others. Infact most people you will bump into in life are 2 paychecks away from being completely broke, that is if they haven’t already got themselves into credit card debt already.
Yet despite this there are those people who seem to break from the pack and have worked out a way to be successful when it comes to money and finance, but what makes them like that?
The reasons this happens is that different people are at different stages of their evolution. The best model I have seen explain this observation comes from a variation of Rich Dad Poor Dad and goes a little something like this…
E Employee. Person grows up and quickly works out that money gets you things you want so takes the quickest path to cash, a job.
S Self-Employed. Person looks at boss then says, “I can do a better job than him” so quits and becomes self employed thinking that they are a business owner (they aren’t).
Most people stop here.
B Business Owner. Person gets sick and tired of all the hassles and long hours of working for the worst boss in the world, themself, so learns what a real business looks like makes one giving them all their time back.
I Investor. Person gets very rich and money becomes less about how to get it and more about how to manage the risk verses return equation so becomes an investor.
Now here is where it gets interesting, most people who get to B and I went through E and S. Infact they have done like a billion surveys of those people who have a net worth over a million dollars and found that most people are self-made. This should come as good news for you because if they did it, you can too.
So you may be asking the question “How do you go from E or S to B and I?” here are a few pointers.
1. Get clarity on what each category looks like
Seek out people in your community and ask them what their business looks like to give you a better understanding of what to aim for, it will do you a world of good.
2. Learn while you earn
It takes time to setup a business and get enough capital to become and investor, so while you are stuck in E or S learn as much as you can and study others who are successful on those areas.
3. Take more risks
The number of times I have asked someone to help run a business for me and have turned down the offer because of their “job” is quite amazing. The sooner you quit your job or put yourself into a position where you can’t back out, the sooner you will be in a position to take even more risks and thats when you really take off.
4. Stack the odds in your favor
Rich people don’t gamble, period. They stack the odds in their favor. An example of this is in the stock market, the seasoned trader learns as much as he can and learns to master his emotions and systems knowing that the return will be there as long as he keeps on taking shots.
Enjoy
Mike McMahon
