Originally Posted by
giddyboy
THE LEVERAGE OF YOUR MIND
Your brain is your most valuable leverage. David defeated Goliath because he used the leverage of his brain. He knows that, small as he is, he can't defeat Goliath w/ hand-to-hand combat. So he used a slingshot.
If you want to win or succeed at something like financial success or freedom, be ready also to fail. Failing is part of winning...Most people only want to win and not fail (even once), that's why they eventually fail. Winners make failing part of their winning strategies.
For example, statistically, 9 out of 10 businesses fail. You have to be ready in your mind to fail 9 times out of 10 before you become successful in business.
Change your mindset by expanding from time to time your context and content. Context is like a drinking glass. Content is like water in the glass. Now let's double the analogy. Let's say the glass is your mindset or reality. Let's also say that the water is money poured into your reality. A poor or middle class mindset is like a small glass. If money comes pouring in too fast or suddenly, they don't know what to do with it so the money spills off. They spend the money on liabilities instead of assets (coz that's all they know and within their comfort zone). Then they go back to being poor, and sometimes even in worse situations than before. The cycle goes on and on.
That's why the poor gets poorer and the rich gets richer. It is never the fault of the gov't why it is that so. It is the fault of the individual. To get out from a poor mindset, one has to expand their context and think like how the rich thinks.
One way of expanding context is by increasing your financial literacy.
THE LEVERAGE OF YOUR PLAN
Create an exit strategy first. And then create a plan based on that. Let's say your goal is to retire at age 65 with a lifestyle of, say, 50,000 pesos a month. Create a plan based on that target. And then work on that plan and monitor it from time to time. Be creative. The goal may not even be long term. Let's say you want to acquire a new car in 1 year.
THE LEVERAGE OF THE B (business) & I(investor) QUADRANT
Earned income (like working for a job) is not the best kind of income. It takes taxes even before it gets into your hand for spending. It is not money working hard for you but it is you working hard for money. Unlike income from business, though risky on many people's mindset, you spend the income first before taxes are deducted. Earned income is also incremental unlike income from business that, if successful, is exponential. I am not suggesting you quit your job and invest in business. THE BEST SUGGESTION is keep your job and while having a start up or small business. That way, in case your business fails, you have a fall back w/ your earned income.
Did you know that rich people even thinks investing in mutual funds are more risky than having a business? It's not even that rich and poor people think differently. THEY THINK THE OPPOSITE.
source: "Retire Young, Retire Rich", Robert Kiyosaki
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