How To Magnify And Multiply Your Wealth
Let me give you an example. Let’s compare a doctor and Madonna. Now who creates more value? Who creates more value per person? I would say a doctor because a doctor can save your life, a heart specialist. Madonna can only make you feel good about yourself by listening to music. But why does Madonna make, a million times more than a heart specialist?
Why? Because Madonna has this thing called scalability or leverage.
Now, let’s talk about magnification.
For a doctor, he spends 3 hours on a patient but he can only save one patient. But for Madonna, in those 3 hours of singing in a concert, 5,000 people hear her songs so her value is magnified.
For myself, when I was starting out my mobile disco business, how did I magnify myself? By running disco parties so by playing that one song, I reach out to 200 of my friends magnifying my value versus just selling stationery. That is how you magnify your value.
Right now, for the training sessions I conduct, one training session is about a hundred to 200 people so our value is magnified
The next thing is multiplication. How can you do something once and you’re paid again and again and again over and over again? Back to the Madonna example, Madonna may spend 3 hours to record an audio CD and she just has to spend that 3 hours
But every time the CD is sold, she’s paid again and again and again and again for the next 20 years. But for the doctor who spends those 3 hours on the heart patient, he only gets paid once. So that’s where you must learn how to create incomes such that it multiplies. And I would say that there are a couple of ways.
The first way is to leverage on intellectual property. Your intellectual asset, Coming up with an idea, a patent, an invention, you can license it to someone and each time that product is sold, you get paid again and again and again. Let me give you an example here. There was this gentleman that came up with this idea. It all started with a problem. He bought a bunch of batteries. And he was frustrated because he didn’t know whether the battery was flat or was because his tape recorder didn’t work.
So what he did was he took a metal device to put it at the ends of the battery, to test the energy of the battery. And he found that he the batteries still had energy. And he said, wouldn’t it be cool if every single battery that was sold came with this battery tester? It was not a difficult invention. It was a matter of putting these 2 diodes together to measure the electricity. So he approached, Duracell and said, you know guys, I got this fantastic invention. It’s a small piece of metal that allows people to test the power of the battery when they buy and use the battery.
And you know what? I am not going to sell you this invention. I am going to rent it to you. If you use my invention, just pay me 3 cents for every battery you sell. Now 3 cents may not be worth a lot but imagine if Duracell sells millions of batteries a year worldwide. And this guy gets 3 cents for every battery. This guy gets millions of dollars a year in royalties again and again and again. What could be your idea? If lets say you are a fantastic cook, you’re a fantastic chef, could you come up with an idea for a recipe and for example, license that idea to a food manufacturer who sells frozen food in the supermarket and get paid a royalty or a license every time? Like Sarah Lee for example, everytime you buy her cake, she gets paid a percentage of that.
These examples illustrate the power of scalability, leverage, magnification and multiplication. How can you apply it for yourself? Think about it, the rewards can be potentially huge.
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus CD ‘6 Ways To Achieve Anything In Life’ at http://www.PavingTheWayToTheTop.com
The Way Millionaires Really Live
Many people have the wrong idea about what being a millionaire is all about. Many also equate instant gratification with happiness. They believe that millionaires live lavish lifestyles and all that self-indulgence brings lasting happiness.
Well, from my research and my own observations of the many self-made multi-millionaires I know, I find that most self-made, sustainable millionaires DO NOT live this way. What does sustainable mean? It means a person whose millions of dollars will last a lifetime and not just a couple of years.
Officially, Bill Gates is ranked as the richest man in the world with a net worth of $46 billion. Unofficially, figures put IKEA founder Ingvar Kamprad as the world’s richest with a net worth of $53 billion. One of the reasons he managed to accumulate so much money is because of his frugal nature. Up to today, it is said that Kamprad flies economy, drives an old Volvo and even waits until the afternoon to buy his fruits and vegetables, when the prices drop significantly.
If he were alive today, Sam Walton (1918-1992), founder of Wal-Mart would be the richest man in the world with an estimated net worth of $90 billion. If you take a look at Forbes list of the ten richest people in the world, five of them are the Waltons who inherited their money from Sam. How did this once poor farm boy accumulate so much wealth? Again, he was well known for sharing rooms during business trips to save money, flying only economy and wearing clothes from his own discount store.
Another fascinating example is Warren Buffett, officially ranked the second richest man in the world today with a net worth of $42 billion. Even with all this money, it’s said that Warren will not buy a brand new car as he thinks it’s just not worth the money. Back in the ’60s, Warren remarked that if he spent $20,000 on a new car, it would be worth little or nothing in ten years, He also knew that he could achieve a 25% annual compounded return on his $20,000 if he were to invest it. Going by this return, investing $20,000 would bring him $158,518 in ten years, $1.26 million in twenty years and $9.96 million in thirty years! She figured that $9.96 million was just too much to waste on a car!
When many people learn of this frugal trait of millionaires they often think to themselves, ‘Why make all this money if you cannot enjoy it?’ Well, here’s the answer, most millionaires get their joy and fun not from spending money but from doing what they love to do! To them, money is just a means of measuring their success.
This is why, even with all the money in the world, they still work hard to build their businesses and empire. This is because they are driven by passion for what they do and a sense of mission. If spending money brings you enjoyment, you will never be rich. However if making money brings you enjoyment, then your wealth is guaranteed.
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus report ‘Get Out Of The Rat Race Now’ at http://www.SecretsOfSelf-MadeMillionaires.com
Profiting From Bank Foreclosures
Most of us think of properties that have gone into foreclosure as old, beat up places that no one would want to buy.
However, the truth is that in today’s unstable economy, more and more gems are going into bank foreclosure simply because the owners of these properties have fallen on hard times. While mortgage lenders work with homeowners for a while to avoid the foreclosure process, eventually those who cannot pay their home loans lose their homes.
Many people realize that they can benefit from foreclosures by buying REO foreclosure properties. REO stands for real estate owned, and these properties are usually owned by the lender that held the mortgages.
When a homeowner cannot pay the mortgage back, the bank will repossess the property, evict the homeowner, and then look to quickly unload the home before losing any more money. Because the lenders goal is to get rid of the property without losing any money, rather than make a huge profit off of it, those who purchase these REO foreclosure properties can often turn them around and sell them for a decent profit.
Is there risk involved with this process? As with any investment opportunity, there is. However, because there is almost always a demand for homes, buying bank foreclosure properties is a fairly solid investment. The trick to making it work is knowing what type of home to buy. Not all foreclosures are going to be easily sold.
If you are stuck sitting on a property for several months, paying a mortgage payment each month, you may lose money on the deal. Certainly you will put yourself in a financial bind for those few months you are holding the property. To successfully invest in bank foreclosures, you must be able to recognize the types of properties that will resell well.
Also, the amount that of equity in the mortgage is important when you are investing in foreclosures. Remember, the banks goal is to avoid losing money on the deal, not making a huge amount of money. Therefore, the bank is going to offer the property for sale at a price that is close to the amount still owed on the mortgage.
For example, if you are interested in purchasing a property that you think will bring $250,000 on the market, but the previous homeowner still owes $230,000 on the mortgage, you are not going to get the home for much less than $250,000. You will not make much money investing in this piece of real estate. However, if you can find a home worth $250,000 that is for sale for $200,000, you will make a nice profit from this sale.
In order to make bank foreclosure investing work, you must know the real estate market in your area and be able to tell the approximate value of a home.
While there is tremendous potential for those interested in investing in REO foreclosure properties, there is also a tremendous amount of competition in this field. Many investors who have a decent amount of capital to use in their investments already have relationships with mortgage lenders.
This means that the lenders alert them to properties before they hit the open market. For this reason, the average real estate investor needs to find these properties before they go into bank foreclosure in order to make a profit. These homes are called pre-foreclosure homes.
The biggest reason that pre-foreclosure homes are the best investment for the new investor is because there is less competition surrounding these homes. Also, the sellers and the bank are generally quite motivated, because selling the home before it goes into bank foreclosure saves everyone both time and money.
Investors are willing to give you their money to work with to purchase these homes because they are usually available for a deep discount.
Mike Kar is a real estate investor and mentor who has been helping people succeed in real estate investing and offers an infoproduct on real estate investing even if you have bad credit, no credit and no money.
Visit http://www.propertyforeclosureprofits.com
Creating Value With Your Time
Besides taking steps too increase your value, you must also increase the time you spend creating value to boost your income. If you are self-employed, then you are usually paid by the hour or by the job. So obviously, when you work longer hours and more days, your income will increase!
Now you may be saying to me, ‘I am already working 18 hour days! How much harder can I possibly work?’ Or if you are working for somebody else you may be thinking, ‘ this does not apply to me. As an employee, my hours of employment are fixed from 9am to 6pm. I do not get paid more for working longer hours.’
Well, when I talk about increasing the time you spend creating value, I do not necessarily mean that you must work longer hours. Rather, you must spend more of your time only on activities that create the greatest value that generate the most profits for your company.
Whether you are an entrepreneur or an employee, you will have a list of things that you must do daily as part of your role. You will find that not all the things you do create the same amount of the value. There are some activities that create high value while some activities are low in value. I
In fact, I have discovered that for most average income earners, they only spend 20% of their workday doing truly high value creation activities while they spend 80% of their time on low value activities like checking email, attending unproductive meetings, chit chatting, complaining, waiting, finding lost item, stuff that does not generate profits or help clients meet their goals.
High-income earners are the opposite. They tend to spend 80% of their time on high value creation activities like business development, closing sales, innovating new revenue streams, marketing strategy, following up with prospects, strategizing on how to improve productivity, managing projects, getting feedback from client, stuff that lead to high customer satisfaction and higher profits!
If you can find a way to help people get what they want, they will pay you for it. If you can help your boss or company get what they want (i.e. higher profits), then you will be rewarded for it.
Why is Bill Gates the richest man in the world? This is because Gates has created the greatest value in the world. Because of Microsoft products, millions of people have been able to work more efficiently and achieve their personal & business goals.
So start keeping track of how you send your time each day and focus more of your time on high value creation activities and your income will increase.
Spend your time on high value activities and you will maximize you income, making you a millionaire in no time. Focus on serving people first and give them what they want. When you do that, I can guarantee you that will create a lot of wealth in your life. Create value for others and you will create wealth.
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus report ‘Get Out Of The Rat Race Now’ at http://www.SecretsOfSelf-MadeMillionaires.com