How the Rich Think by Steve Siebold Part 7

Working for money vs working for fulfillment.

This is ultimately why I want to get rich.

You have to do something to get rich vs you have to be something to get rich

Plays it safe with money vs takes calculated risks

Have to have money to make money vs believes in using other people’s money

Jobs are the safest way to earn money vs believes outstanding performance is the safest way to earn money

If I remember right the book talked about how switching jobs a lot isn't a problem if you're an outstanding performer.

Believes in financial scarcity vs believes in financial abundance

a.            Do you believe you have the potential to earn as much money as you wish?

i.                No.  

b.            If not, why not?

 .                I almost feel like money is this imaginary thing and that making gobs and gobs of it will have to happen by someone bestowing it upon me or something like someone showing me how to do it step by step.

c.            I think having a house in bountiful paid off ($250,000) plus two or three rentals to cover living expenses would be enough for me so approximately 450k.  My tentative plan is to save up enough money to be able to quit my job to work on business and try and have said business already going by the time I quit and then I can just grow that thing once I quit.  Aside from quitting and going that route though I don’t know how I could muster enough desire and time to really work on something because otherwise I’m just too comfortable with my life as is.  And the next time a house with big potential in bountiful pops up I may just go ham and take a big risk and flip it to try and make a profit on it like the last one we lost out on.

Money as a weapon vs money as a tool

a.            Top 5 reasons I want to be rich:

i.                Stress of raising a family and being retired and able to provide for all my needs when I’m unable physically to work

ii.                Enjoy the finer things in life and have more conveniences like a second car (both nice), go on trips, restaurants, go to the gym

iii.                Be able to help other people and enrich their lives and give them opportunities and help them when they’re unable to help themselves.

iv.                Have fun.  Take people/family out to do things.

v.                Do what I really want to do.

Aren’t worthy of great wealth vs they deserve to be rich

a.            Whether you believe you deserve to be rich or not, you are right. I think that quote is attributed to Henry Ford. Its all in the head people.

Denies the importance of money vs knows money is a critical component of life

a.            “Money isn’t everything… but it ranks right up there with oxygen." Loooove this quote since its true and funny.

How the Rich Think by Steve Siebold Part 6

underestimates the wealth building power of referral marketing vs knows referral marketing creates millionaires

focuses on pleasurable activities vs focuses on money making activities

I.e. video games, TV, Movies, Sporting Events vs learning about investing and doing it.

sees money as a finite resource vs sees money as an infinite resource

earns money doing things they don’t like to do vs gets rich doing what they love

believes rich people are ruthless vs believes rich people are generous

lottery mentality vs an action mentality

a.            definitely know that for a time that i’ve relied and hoped on silver blowing up to make me rich. While still an outstanding undervalued asset it doesn't replace action and getting my skills up NOW to make a business go.

b.            On a scale of 1-7, 7 being strongest, how strong is your desire to be rich?  I think today my desire is like a 4 or a 5.

waiting to be rescued from financial mediocrity vs knows no one is coming to the rescue
Again touching on hitting it big with a certain investment vs taking action to get it done without it.

Rich people are smarter vs rich people are more savvy

a.            Ask Richard Gonzalez to be a millionaire mentor for me about money.

Money as controlling vs money as liberating

a.            Interesting how “You have to study business/nursing/tech/etc in college because that is where the money is at” is a subtle, but true way of helping condition people to surrender to money.  I.e. you can’t possibly make money doing anything other than that.  People naturally poo poo certain majors strictly on the post graduation median reported incomes ranked from highest to lowest even though a lot of people love pyschology and music and learning about all subjects (general studies).  They surrender to higher income majors when logic dictates that if one becomes an expert in anything they love doing and figure out a way to provide value and solve problems for people with that thing there isn't any reason why they couldn't make more money than those high median incomes.

Money changes people vs money reveals people
The book explains this as magnifying what somebody already is before/after they get rich. If you're kind you'll be even more kind with money. I think the example he used was Mother Teresa. While personally not wealthy she did have TONS of clout and connections to those that did and with that clout, connection, and money she did so much good.

a.            10 things I like about myself:

i.                I like to go out to eat with my wife.

ii.                I like playing video games.

iii.                I like to read.

iv.                I like to serve the young men in the church.

v.                I like to have people over for dinner.

vi.                I like to go on vacation.

vii.                I like to play sports.

viii.                I like to spend time with my brothers/siblings.

ix.                I like spending time with my kids.

x.                I like to sleep.

How the Rich Think by Steve Siebold Part 5

Road to riches paved with formal education vs road to riches is paved with specific knowledge

I really like this point because while formal education is ok and good I only think it is if it is teaching concrete skills that can contribute in the marketplace. The rich go to seminars and classes and read books to give them venture specific knowledge that they can use immediately.

money is earned thru labor vs money is earned thru thought

worries about running out of money vs thinks about how to make more money

a.            Sooooooo good…”poor people spend this time worrying about what they’ll do if they lose their job, get sick, or exceed their budget through poor planning or bad luck. Most of this worry is a waste of time, not to mention the negative, destructive psychological impact it has on their minds and the physiological havoc it wreaks with their bodies. Living in fear isn’t living; it’s surviving.”

b.            Wealthy people are often criticized for being obsessed with money, but the truth is, it’s the poor, working, and middle class that spend the most time thinking about it.

c.            If the masses would upgrade their limiting beliefs about money and redirect their mental energy to new and exciting ideas, they would experience financial abundance.  This totally jives with what James Altucher says.

d.            Money flows to great ideas like water. The secret is learning how to turn on the faucet.  This is what I need to figure out how to do!!!!!!!!!!!

e.            How much time do you spend worrying about money compared to the time you spend engaged in creative problem solving?  I definitely spend way more time on money problems then creative problem solving.  Hopefully my sessions with Tyler will help me with that.

thinks about spending vs thinks about investing

a.            To further exacerbate their frustration, they’re scolded by financial experts who insist they discipline themselves and trim their spending….holy shiizzzz tell me this isn’t MMM to the T.

b.            The world-class answer is to double or triple your income and create enough wealth so you can enjoy the good life to your heart’s desire without worries.

c.            Decide to double your income in the next 2-5 years. You don’t have to know how to do it yet. The first step is to decide to make it happen.

sees money thru the eyes of emotion vs sees money thru the eyes of logic

a.            a middle-class thinker can’t teach you how to become a world-class thinker.  Someone living a restricted existence can’t tell you how to live an unrestricted existence. And a poor person can’t teach you how to get rich. These statements are obvious to any rational thinking person operating from a logic-based mindset.

b.            “A wise man should have money in his head, but not in his heart.”

How the Rich Think by Steve Siebold Part 4

building wealth is a solitary effort vs building wealth is a team effort

a.            I know this is a true statement because that is at least how andrew carnegie did it and i know the vast majority of the middle class are doing it the solitary route, i.e. their 401ks or solitary wealth building and not partnering with people either in business or investments.  I need to find a team member who wants to do the copy writing and social media blogging for my business.

I also want to work with people to try and do a flip someday.

worries about money vs dreams about money

a.            They’re after money so they don’t have to worry about money, and then once its taken care of they know they’re mentally and physically free to focus on their highest and best self and reach self actualization.

I loved that quote and I love how the different mentalities of the rich allow them to feel more natural and receptive as they're working and working on their businesses and jobs.

money is negative vs money is positive

a.            the rich keep charities afloat, tax base for infrastructure of countries

i.                List of things I’d do if I were a millionaire:

1. Sleep in
2. go out to eat more
3. buy new wardrobe of clothes including shoes, suits, ties, pants, shirts, belts
4. I’d go to fiji, greece, visit europe, africa, australia, see mt everest
5. I’d buy a nicer reliable car for me and ashlee and maybe a beater car as a second car
6. i’d buy a motorcycle
7. i’d buy ashlee a nice bike
8. i’d buy a nice tablet
9. i’d like to work out with a personal trainer and get in really good shape
10. i’d start even more businesses
11. i’d buy a nice projector or tv to watch movies and sports and play games on
12. i’d get a nicer house for the kids to play in and then i’d also hire out the yard maintenance of the whole thing
13. i’d buy rental properties to diversify my income
14. I’d likely go on a mission at some point

rich people are shallow vs rich people are strategic

a.            The rich see themselves as honest and strategic, and make no secret about their desire to build their financial empire. They are straightforward and direct in their approach. They have no interest in manipulation or unethical practices. Their chief aim is to get rich, in an honest, aboveboard manner, by serving others.

I love how people blast the rich, when really on the whole they can't possibly be rich and be shallow as people see through that and reward accordingly.

How the Rich Think by Steve Siebold Part 3

being rich is a privilege vs being rich is right

funny cause the middle class just finished participating in the largest lotto in history years after this book was written

I wrote the above because I believe the book says that the middle class doesn't think they deserve to be rich and good.

money is complicated vs money is simple

a.            Do I believe I have what it takes to be rich?  To be honest I’m not really sure.  I can of course make and have made a steady paycheck for years, and I’ve got some freelance work, but suuuuper sporadic and that is why I have my doubts about it.

b.            When I read his comment of, “Just for today, keep telling yourself that making money is simple” and how that’d make me feel before I even finished reading that I felt a calm and easiness within me.  It quickly left, but initially I felt it.

I think my hesitation and doubt stem from a legit lack of knowledge on money and how to make it on my own. While we went to the library a lot growing up and read plenty of books and had lots of books in the house growing up I don't ever really recall reading anything about investing and making money (serving people and providing value) until out of college. By then I was thoroughly indoctrinated in the middle class way of thinking and doing things to make a living in a linear fashion.

This year I'm wanting to read at least one book per month on investing subjects I'm interested in and working on business outside of my regular 9-5 job.

rich people are crooks vs rich people are ambitious

a.            Because of the average person’s unwillingness to accept full responsibility for his or her results, they are eager to criticize society’s most successful in an effort to minimize their achievements and justify their own mediocrity.

Loved that above quote. I see this all the time. People knocking the president's of their companies or their peers in church who are wealthy or friends or family or people they're dating. Its everywhere and prevalent the personal attacking of the rich to help hide their own insecurities. It happens all the time in school with bullies. I love this video that pokes fun of this very thing.

https://www.youtube.com/watch?v=CUvFeyGxaaU

How the Rich Think by Steve Siebold Part 2

hard work vs leverage

I was DEFINITELY taught about hard work growing up and even just a few weeks ago when my dad came to visit and we were talking about whether or not to have more kids he made the comment that the more kids you have the more you can teach them to share and work hard, which of course is debatable in and of itself, but that is for another time.

Aside from seeing my parents buying a home using leverage via a mortgage I'm not sure I was witness to leverage on a big scale. I did work for a guy in high school that hired a bunch of people to go and do estimates for his company to do sealcoating thus leveraging more manpower to scale up his business beyond himself.

I'm a newbie when it comes to using leverage to do things like trading stocks on margin or big investment money in flipping a house and using other people's money to do so.

money is the root of all evil vs poverty is the root of all evil

a.            Critical Thinking Question: Are you ashamed of your desire to be rich?  I am when I read MMM knocking people wanting to drive heavy barka loungers.

b.            Action Step: Decide to be proud of your ambition, and ignore people who tell you wanting to be rich is wrong.  I guess I got to ignore him.  

I left the questions in and my answers unedited.

I love how this book turns on its head middle class thinking. People could and probably do get supremely offended when they hear that the rich think poverty is evil and thus people who are in it must be evil. I think he is 100% right in his assessment however. Just think about crime. Does someone who has all the accutrements of life need to go and rob a neighbor, bank, or convenience store or steal a car to get the things they need to survive in life? Of course not.  

If someone has everything they need are they free to devote themselves to their highest and best self it isn't very likely they will opt to do evil even though it does happen on occassion, which reminds me of a point made consistently throughout the book.

Being rich does one thing to someone. It amplifies who they really are. If they are sad or angry or generous and giving they will still be that, but on amplified level. Hence why some rich people still aren't happy even with "ginormous piles of moneeeey".

How the Rich Think by Steve Siebold Part 1

I loved this book!

I love how he systematically dissects middle class thinking versus world class thinking.  We all know who the middle class are.  The world class are the wealthy in the world.  The 1%.  The people who own most of the world's wealth.

I may break up my review of this book into several posts because I have a lot of notes and thoughts on this book.  Each chapter of this book is about a page to  a page and a half long is all.  I also liked that it had some questions for the reader at the end of chapter and a lot of great quotes and other books to read that will help someone further their education in thinking rich, improving their investing knowledge, and some self help and gender specific books, which I plan on reading a lot of because I want to be well versed in it all.

My review, which is for myself to look back on, will be commentary on a lot of the chapters of how I and the middle class think versus what the world class rich think.

Each chapter starts with what the middle class or the masses do and separates it with a versus and then what the world class think.

Saving vs earning

I actually thought I was gonna skip the first chapter, but after thinking about it for a quick second it is true that for me growing up in the home and in school I was encouraged way more to save money vs earning money.  My parents paid off their mortgage when I was just a kid in middle school and were always conservative in their finances.  They also made great money.  

Now saving money isn't a bad thing and is THE key to investment and improving our world because without it there aren't funds to do things.  I think my thoughts were just that it is interesting to note that while I had this fundamental lesson taught to me in the home, at school, and at church, I know that earning money and investing and all the various avenues of doing that weren't touched on nearly as much.

linear vs non-linear (exponential)

The middle class thinking of making money from their jobs and investments in a linear fashion. That entails saying if I put in X number of years or hours at my job then I will make X amount of money and so the longer I work the more I will make, but strictly in a linear fashion.

The rich though earn money in a non-linear fashion, often earning more in one day then a middle class person would earn in an entire year.

The Automatic Millionaire

I just finished reading the book the automatic millionaire by David Bach.  He espouses many of the financial principals already out there like saving up one month's emergency fund, then paying half of what you save towards debt (the past self) and the other half to your self (the future self).

He had interesting tactics for credit card debt as far as consolidating your debt, talking directly to a supervisor when you call.

He advocates for buying a home versus renting.  Statistically the average renter in America has a net worth of less than $4,000.  Homeowners, on the other hand, have an average net worth of $140,000.  Pretty stark contrast.

There are a surprising amount of automatic programs out there for saving outside of the traditional  401k plan.

I also learned that an IRA is just like a checking account that is a holding account for your money and you have to decide where to put it.  Not that you still don't get to decide with a 401k plan, but it was something I don't think I quite understood.

Overall I think if someone is in credit card debt and struggling financially that this book would be helpful, but if someone wants to be more proactive in their investing/financial approach there are likely better ways of doing it.