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There are six universal laws that lead to abundance. Learn and master these laws and you become limitless. Most people are trapped in a scarcity mindset. This is the poverty mindset. Follow these laws to replace that mindset with the mindset of the successful and wealthy. The mindset of abundance.
Law 1: Power of Failure
Failure is a good thing. When you can understand and accept this, you will have mastered the first law.
When someone fails, a person with the poverty mindset makes fun of them. They mock that person for trying. The poverty mindset is about keeping other people down so that you’re own failures don’t look so bad. It’s about living in a world of comparison.
A person with the wealthy mindset will ask them what they learned from their failure. They will focus on the positive aspect. They are focused on the process more than the event.
Failure is a single event on the road to success.
In order to obtain infinite wisdom, you need to understand how to leverage failure. You can turn failure into success as long as you have the correct mindset.
If you don’t fail, you will never succeed. Nobody gets everything right on the first try. When that happens the success is often built upon a foundation of luck. And eventually that entire business collapses.
But there is a difference with perception.
People often confuse a temporary setback with permanent failure. Losing your job or losing your business is not total failures. They are just events in the course of your life.
I have been fired from jobs. I now make more money and I have more freedom than every single person that ever fired me. I would be horrified if I had to trade lives with someone who had fired me in my youth.
Does that make me a failure? Am I defined by a single moment in my past? Of course not. That is completely ridiculous.
A failure right now is just painful because you haven’t made it to the next success yet. You cannot fail unless you give up.
When you have enough failures, then you’re going to end up succeeding so long as you learn from the failures.
When things fall apart is when we learn the most. Because we have to.
Don’t give the past dominion over you. Getting fired should have no power over you – whether it happened fifteen minutes ago or fifteen years ago. The past cannot affect your future, unless you allow it to.
Don’t give the past control over your future. The past is not a good predictor of the future. Just because you toss a coin 10 times in a row and get heads, doesn’t guarantee it’s going to be heads the next time.
Wise people learn from others. I lived on my friends couch because he was a millionaire and I wanted to be one too. I wanted to learn how to make money, how to handle money and how to understand money.
I have learned from his success and his failures. My life has been filled with a string of mentors who taught me how to build a successful business and how to design the life that I’ve always dreamed of.
Don’t let a failure in the past be your excuse for inaction. If you try and fail you get the EXACT same result as if you didn’t even try in the first place.
The only thing that might get hurt is your emotions. Home runs can’t be hit from the dug out. Moronic risks have an unlimited downside in the long term and limited upside in the short term.
Intelligent risks have unlimited upside in the long term and limited downside in the short term.
There is never perfect timing and waiting for “someday” just wastes time. I know so many people who want to take action but are just waiting for the right moment. They tell me all about the novel they haven’t written yet. And when I ask why they get defensive and launch a dozen excuses at me about how it isn’t the right time.
Do not be afraid of failure.
Don’t let fear of failure drive you to inaction.
Law 2: Sift Wisdom
In order to obtain infinite wisdom, you need to understand how to leverage wisdom by disseminating information correctly. Some people have no idea what to do with knowledge. They just take it and shove it on a bookshelf somewhere. Eventually they forget it. That knowledge just fades away.
There is a very big difference between facts and anecdotal evidence. I know a lot of people that believe things that are completely untrue. They could have found out the reality with less than fifteen minutes of fact checking online.
Recently a woman saw a picture of Steven Spielberg in front of a dead triceratops. This famous author was really upset and posted online about how this type of hunting should be banned. She was very upset and couldn’t believe this type of hunting is still allowed.
I hope that right now you realize what I’m about to say.
Number one – there is no living triceratops on the planet right now.
Number two – it was a picture from the set of Jurassic Park.
Number three – it was a picture of a movie director in front of a robot.
I honestly can’t believe that I actually have to say these but it turns out a LOT of people were just as upset when they saw the picture. The animal isn’t even killed with a gun in the movie, it is sick from eating the wrong plant. Even in fiction the animal isn’t hunted or killed.
This is just kind of amazing to me. But I see people all the time who quote Twitter as fact. It’s kind of embarrassing when a journalist quotes a blog or Twitter as a source. You might as well start quoting graffiti that you see in truck stop bathrooms. It is just as reliable.
Stop for a moment. Stop right now. That triceratops story.
Did you instantly believe it or did you go look online and fact check? I just told you to start doing that. Don’t take things for granted. It really is a true story but you shouldn’t believe it until you double check.
It’s like Ronald Reagan said, “Trust but verify.”
Those might be the three wisest words ever assembled in the English language. Never make a serious decision based on anecdotal evidence. I see people do it all the time and it destroys their career and reputation. One source is not enough.
Successful people are self-aware and understand personal and confirmation bias and try to adjust their mindset to keep this in mind.
Look at the recent barrage of stories where a reporter goes out to find a specific story and then writes about it without double-checking. The story they find matches what they expected to find, so they don’t double-check any of the sources. This is the reason that Rolling Stone is being sued by a number of people and had a swath of firings. Confirmation bias cost a lot of people their jobs.
When people only understand one part of a story without seeing the entire picture you get anarchy. You get people making decisions that seem logical – until they see the entire picture.
Then their decisions look terrible within the greater context. You must be a person who waits until they have all the facts before making a decision. That is wisdom. Most people seem to think they make logical decisions, but once they have ALL the facts, their decisions seem idiotic and stupid.
Look how often people react emotionally when they have only heard one half of the story. They react from emotional and are out in the street protesting before they hear all the evidence.
Then when there is evidence that contradicts their emotion, they assume that it is fake. They don’t want to admit to themselves that they acted foolishly.
The top 1% don’t like to blame others, they get the facts and ask the right questions, and if a plan falls through, they don’t blame, but learn. The 99% like to blame and not learn; they are neither responsible nor accountable. The 99% likes to use “they” and have an “us vs. them” mentality.
Take the time to separate fact from fiction. Be slow to act. When you have all the information, you can then take decisive action. Take the time to be sure that you know all the facts before you lock yourself into a decision.
Act from a place of wisdom not emotion.
Law 3: Time
Time is the most valuable resource in the universe. Each person only has a certain amount of time in their life. You cannot buy more time in this life with money. Time should be treated with reverence and respect. Do not waste your time or anyone else’s.
To align yourself with prosperity, you need to understand time leverage. You must be systematic and efficient. Simply dedicating sixty minutes a day to a positive endeavor can give you results that last a lifetime.
If you spend sixty minutes a day exercising you can extend your lifespan by up to forty years.
That’s a great tradeoff that most people choose not to make.
Sixty minutes of not investing in yourself simply gives you guilt for a lifetime.
Most people in America watch FOUR hours of television a day. Of those four hours at least twenty-five percent is commercials. The average person spends the amount of time watching commercials that they should spend exercising. That is the perfect example of wasting time.
The problem with watching television is that there is no beginning and no end. You can easily sit down and watch six hours straight without thinking. It sucks your life away and you waste so much time on nothing.
When preparing for a course of action, take the time to plan correctly. Rushing into a project without a plan usually takes much longer than correct preparation. Failure to plan is planning to fail. This builds on top of Rule #2. Wait to make a decision until you have the correct information. That will keep you from wasting more time.
Learn to delegate efficiently. These days you can hire people to do any task you can imagine. To create the cover of a book would take me hours and hours in Photoshop. It’s something that I’m ok at, but not great. You can hire an American to do the job for around $750. Or you can hire someone internationally for $5. The end product will look exactly the same. Any task imaginable can be outsourced now. There is no excuse for using your time inefficiently.
It might seem hard to write out a training plan for someone to follow. Training someone to do a task on your behalf can feel like a risky proposition. You can simply record a video now of you teaching the task on your computer. You don’t have to write out a complicated set of steps.
Let’s say that an hour of your time is worth $50. That is what you get paid per hour. Any time you spend on tasks that are worth less money, is wasted time. You could have ten people working for you at $5 an hour easily.
That means that for one hour of work you put in, you get ten hours of work out. That is true efficiency. Think of ways to multiply your time to get a greater return. Stick to what you are good at, what you can accomplish quickly and what gives you the greatest return on your time financially.
Do not invest time in social media for mindless activity. Who cares what someone you haven’t spoken to in seven years ate for lunch today. The successful don’t waste time on Facebook and Twitter. They create the content that the poor waste time consuming. Or they get the poor to unwittingly create the content for free. The rich then take this free content and sell it back to the consumer.
The perfect example is Facebook. All of the content is made by the users. All of the posts and pictures and status updates are all made by users and given to Facebook for free. Facebook then sells advertising and people buy from Facebook.
They make money selling something that the masses unwittingly provide for free. And don’t be fooled into thinking they are the only ones. Any site with user-generated content is doing this. Take a look at Reddit. Or Amazon. Where do all those reviews on Amazon come from?
Focus on successfully managing time, files, systems and people. The broke have no idea how to manage anything. They are locked into a poverty mindset and it causes them to use time inefficiently.
How much time every day do you waste checking email over and over again. Or constantly checking to see if you missed anything on Facebook? Stop doing that. Check email once a day at most. That will give you back so much of your time.
Invest this newly freed time in you. You could spend the time you used to spend watching TV at night school and become a lawyer or college graduate within four years. Or you could do something even more valuable. Spend your time reading high quality books and learning things. Reading news websites does not count. That content will not make you smarter or teach you any skills.
Always be seeking new knowledge or ways to be more efficient. You can always be improving as a human. Leaders are readers.
You are your own university and you learn from taking action the fastest. The things you don’t know are because you have never tried. If you hate reading, you can switch to audiobooks. You can turn these times from a waste into profit:
⦁ Toilet time
⦁ Waiting time
⦁ Work down time
⦁ Driving time
Treat your time with the respect that it deserves. Don’t let limiting beliefs keep you from using your time wisely. There is nothing stopping you from hiring people for micro tasks right now.
Law 4: The Power of Law
The entire tax system was designed by the rich to keep their money in their pockets. Have you ever looked at what major corporations pay in taxes? Most oil companies and presidential candidates are paying less than you do.
They are billionaires and they pay just a few hundred bucks in taxes a year. You can manipulate the system or you can let it manipulate you.
To align yourself with prosperity, you need to understand legal leverage. The wealthy know how to protect their assets and reduce their financial, taxation and litigious liabilities. They know that semantics and technicalities make huge differences.
Your average person has nearly zero understanding of the tax code. Even if you are working for a company you can start your own LLC. You can turn many of your personal expenses into business expenses this way.
Did you know that if you live abroad you don’t have to pay any taxes on the first eighty thousand dollars that you make? Or that you have two extra months to file your taxes. How about this, the United States is one of the only countries on Earth that tries to tax you on money you make living in another country.
That is the reason so many of the wealthy change citizenship. They understand how to protect their wealth.
If you want to earn and keep wealth, understanding taxes is necessary. Nothing else affects your net wealth as much as tax, except for maybe death or divorce. Do you even know current inheritance tax rates?
Let me make it a little simpler.
What other organization can take 30% of your net gains every year? Or even 50%?
Refusing to learn how taxes work and how the laws can work on your behalf will always stand between you and manifesting wealth.
Law 5: Wealth
Let me tell you the story of two people with the exact same skills.
I have a friend who is a much better writer than me. I read one of his books and was instantly filled with a jealous rage. I aspire to always improve and he is just so naturally talented. He spends months or years writing each book. He puts out a book every one to two years. He does all the work himself and puts in a lot of hours to create his finished product.
I take high paying writing jobs. I take ghostwriting projects and help people write autobiographies all the time. It’s not glamorous, but it’s high paying work. He is too good for this kind of work. I then take the money from these projects and hire a stable of writers to create short books for me that I release under a variety of pen names.
He works really hard and creates wonderful books. He puts in an unbelievable amount of effort. Yet I generate between fifty and one hundred times more content than him, every single year. Over time that compounds.
His entire income is based upon his work. He spends a year on a book and then has to hope that it sells or it turns out that the entire year was a wasted investment.
Instead I put effort into creating a system that builds wealth and results for me – the initial results were very slow, but the results are exponential. It took me a while to develop the series of books that I wanted to develop. To figure out which spaces are the most profitable.
That initial system building took time, but my system is self-sustaining. I can take money made from books that I paid someone else to write. I can take that money and hire someone else to write another book.
The money I make keeps working on my behalf all the time. This is just one single tiny microcosm of how you can do this. You can invest your wealth and resources in things that continue to grow and make you more money.
The truly wise invest in wealth generating technology. Their research is focused on finding new ways to create wealth.
Most “good” financial advice is actually really bad advice given to you by finance institutions to give them money to do riskier investments for a higher possible return on investment (ROI).
These institutions take your money by telling you to invest in non-risky portfolios… so they can leverage your money and use it for risky things.
The perfect example of this is the Global Financial Crisis.
Who ended up paying for all those risky investments? It wasn’t the wealthy that suffered. The poor paid off those debts via taxes. Those government bailouts came directly from the pockets of the poor. The very people that crisis hurt the most.
The successful understand that diversification is only doable and useable after they have enough funds worth diversification. Otherwise they only dilute their road to success.
This is one of the biggest mistakes that people make when trying to make money online. They get a serious case of “shiny object syndrome.” They see a course on how to make money on Facebook. They buy the course and spend a week or two trying it. Then they see a course on how to make money using LinkedIn, so they give up on Facebook and spend their time on that new exciting course.
They keep investing money in projects that they then treat like hobbies. The people who make money treat money with respect. If you have a spreadsheet to track what you invest in training and websites and hosting and all of those online costs, then you are taking money seriously. Track how much you spend and how much you bring back in.
People that treat business like a hobby don’t ever succeed. They think they are diversifying because they know a little bit about how to do a lot of different things. Master one way of making money before you move on to the next one.
People approach me all the time with big ideas for making money new ways. But I tell them that I only know about making money a few ways and I stick to those. There is no reason for me to increase my risk.
The 1% understand that compound interest is only useful once you have enough money to compound. Otherwise you’re just collecting pennies and pocket change. They only bother with “compound interest” once they have a million dollars to compound. Otherwise they’ll be spending literally 25 years of their life to make enough money for it to be worth compounding.
Compound interest is used by the rich to pay bills not to build wealth. The rich make their money with their business systems, and then later put the cash into places that accumulate compound interest to pay for living expenses. Poor people try to use compound interest to get rich! The secret is that compound interest only works once you are actually rich.
Before you go into any venture you need to understand scalability. Can this business grow exponentially? Or is the only way to make more money by putting more time into the business.
If you’re going to put in the same amount of effort and time for one outcome make sure you spend it on the right thing don’t mess around with some things that will take 10 hours of work for a task that will make $100 or they can choose another task and make $100000.
This is the difference between opening up a hot dog stand and building a business online. You can grow an online business exponentially. There are no physically limiting factors. Many online businesses are infinitely scalable. They can always make more money.
You can also leverage borrowed money. Understanding good debt vs. bad debt is very important – most people think getting a car loan is an “asset.” It’s even an “asset” according to the tax office. But in reality a car loan is a bad debt for a liability.
Cars lose money from day one and cost you money to maintain. Only if the car is for business use and the money it makes far outweighs the costs, then can it only be an “asset” a personal car is always a liability. A car is always worth less.
Every single day the value goes down. You will never get back the investment you put into a car.
Let’s make it even simpler:
⦁ Good debt helps me make money.
⦁ Bad debt drains my money
You can use money to make wealth. That is the correct use of wealth. Don’t spend money on things you don’t need or that will lose you more money in the long run.
Law 6: Relationships
To align yourself with prosperity, you need to understand relationship leverage.
Qing. Li. Fa. is an ancient Chinese negotiation tactic. Work the friendship/relationship angle first (Qing). If that fails work the logical angle (Li) where you try and persuade them with facts. If that fails then you work the legal angle (Fa) last.
A lot of people in our society use the “legal solution” as their primary and only solution… that brings a lot of problems. They go to the lawyers first when a relationship approach would have solved the problem much faster and cheaper.
Successful people put them selves in the position to meet the right people at the right time. They network and attend events or join forums. They surround themselves with like minded people who are on the same path as them. People who can help them and whom they can help in return.
People with the poverty mindset try to get as much out of the other person as possible in a deal. Even if they win the deal they want, they have made an enemy for life. Someone who is waiting and watching for the right moment to seek their revenge.
When successful people network and broker deals they look for a win/win situation or they don’t broker a deal – period.
They would rather be taken advantage of a little bit to keep the peace than to squabble over small things. This might lead to resentment but they know ultimately it will help them reach their goal faster.
They do so much more work that their business partners know it would not be possible to replace them. They don’t think in terms of how much work should I do for my pay. They think in terms of if I do an awesome job and end up even working for free, would this help me achieve my goal faster. If so great. If not they learned who is out there to take advantage of them and will have more experience next time.
Remember that favors are a muscle, not a jar. You don’t collect favors owed to you like debts. Do favors freely for the people around you. If you can help someone, then do it. You never know how that favor might come back to you in a positive way.