Two Only Ways to Wealth

I won’t be politically correct here. As long you work for a fixed salary you’re not going to be wealthy, period. There are exceptions like multi-million fixed contracts with top athletes, but you better stop considering that right now. If it was realistic, you wouldn’t be reading this blog.

There are realistic ways to make good money but none of them is a fixed income job.

Remember, whenever someone pays you a fixed income, your time is bought wholesale at a huge discount!

Ideally, we want to BUY time, not sell it, but while it’s not always possible we try at least to sell our time as high as we can! It’s a resource that we can’t replenish so no need to sell it cheap unless your financial situation is a true disaster.

We have two options to consider: a good one and an OK one.

1. Good way to make money – business. You own a company. Ideally, you organize a process, which is run by people whos’ time you bought wholesale (aka fixed salary and maybe some bonus as an incentive). You do strategic planning and stuff like that. It doesn’t happen overnight, but that’s the goal which means true financial freedom. Before it happens (let’s call it “The Event”), you have to work hard, but you invest your time in a correct way, which in the long run gives you more free time than most people ever have. We can’t cheat time, but this option is as close to it as possible.

For people not familiar with the financial side of running your own company – you won’t believe how much more a company owner makes vs. someone who works for a salary even in the case of small business. Don’t forget: company is an asset. You can grow it while getting a continuous cash flow or you can sell it and cash out. Small bonuses like being your own boss are included.

Of course if you’re a little girl who pees in pants every time she hears words “risk” or “responsibility” starting your own company may not be for you, but you better remember that the biggest risk possible in life is not taking any risk, which is a sure way to a guaranteed misery.

2. OK way – performance-based pay. Some people may be in a situation when they need an instant income. That’s not always the case when starting your own business, which often requires initial investment and time to gain financial momentum. In this case performance-based job is an OK option. Examples? Mostly sales (door to door, real estate, insurance, you name it). You get commission for every sale you make. Watch out that it’s not capped, some employers include this little innocent trick in contracts. Idea is to get a clear direct correlation between performance and income. Two benefits here: if you work well you make a good money and such an experience prepares you psychologically for running your own business (The Goal), which makes you closer to The Event.

Why do I talk about sales only? Because even if you have a professional education and skills in law, web design etc. doing it on your own means starting your own one-person business. In other words, great idea, but not suitable for every situation. In sales you can use the power of an already established company and brand to your advantage. Of course if some company offers you a performance-based job as a lawyer or software developer, good, but then again, unlikely you would read this blog hence no need to talk about it here.

The rest of losers like me who want to make good money despite being losers, stay tuned!

Starting Point to Success

Most people think success is about education, money, family connections etc. It certainly is if you have one or more of the three.

But here’s the story to think about:

Two former classmates from the same neighborhood. Same education, no money. Pretty much the same job. Then one started a business. He did everything himself until one day he invited his friend to work for him. It was hard work, but economy in the country was in terrible condition and the job paid well. Guy agreed. Nearly twenty years passed. The second guy, now a 40+ man still works for the first guy. That second guy has an average salary for the city they live in while the first guy has a semi-passive income from the same business, which is larger by at least one zero on the right.

The story is true, those two guys work in the same business as me and I see them every day.

Now you may think there’s something I probably just overlooked. Yes, I’ve read Gladwell’s “Outliers” too, I agree there are many hidden factors in most success stories but I’ve seen enough of such stories myself to make independent conclusions.

Let’s listen to what the second guy says about himself: “I’m just not like him (the first guy). I can’t run business, handle the stress. Whenever I could, I always picked a simple job, which felt comfortable.”

See the difference? Is it outside? No, it’s INSIDE! Iside one’s head or wherever the “self” is located.

I’ve seen enough proofs to this thesis to never argue about it anymore. What’s the most amazing is that almost anyone can dramatically change his/her life by changing the way he/she thinks and feels about the reality.

Did I just hear “working hard” in heads of some people reading this post? Yes, sometimes you have to work hard. But the first guy in our story worked hard only in the beginning and the achievement is financial freedom, while the second guy works hard all these years. The “achievement” is a mediocre salary and a guaranteed income decline when he retires.

Here’s the truth: lower paid people who work for others work hard. They are not lazy and their bosses are not workaholics. Far from that! Hope you didn’t think I’m a Marxist, because I’m in the “bosses” camp myself.

But what’s the difference again if bosses sometimes work less while making much more money and having more freedom to enjoy it?

BELIEFS and FEELINGS are the difference. They are the cause why one works hard all life, lives and dies poor, while another works smart, lives high and dies rich unless he decides to give away all his wealth to charity.

Obviously, you need practical skills to turn your beliefs into reality. In the near future we’ll talk about that, but for now think about the story and try to guess, which beliefs and feelings make a difference between guys one and two. You are welcome to post your versions in comments to this post here or on our Facebook page.

Have a good week!

How to Succeed from Scratch

Let me guess: you were not born rich. You are not a math genius. You’re not a world class athlete. You know that you’re not the kind of person Wall Street or Silicon Valley employers hire. But you want to be well off. As well off as those people who work at Wall St. or Silicon Valley. People keep telling you it’s impossible, but you still believe it is. Good news for you: it really IS!

When I wrote in “About” that I didn’t have a capital to start with that was an understatement. I was born in a family of teachers in a country, which was about to collapse and when it eventually did, teachers were among the poorest people. Gangsters and merchants were well off. I wasn’t tough enough to become a gangster and didn’t have a capital or skills to become a merchant. Neither did I have skills in coding or math, which would make me valuable enough in hi-tech industry. It felt like I’m doomed to be poor.

My parents told me to become a teacher too while I kept thinking how to break that circle and praying for it to happen. No idea if it was my prayers or my thinking, soon I realized the only way to make money for me was selling something. But I didn’t have money! However, as you probably guessed, I found a way out. In this blog I explain how it happened, how you can do the same and what exactly should be done to achieve what everyone believed you would never achieve.

Stay tuned…