Ever noticed that the more you need money, the more it seems to gallop away from you?
Back when I was struggling to get all of the rules of share trading clear in my mind, I tried applying for a credit card.
“Ha!” they laughed.
“You’re self employed, and you’re a share trader! You’ve got no hope in hell. Better find a new day job”. (Well – they may not have exactly said that, but this is certainly what I heard.)
We’ve all noticed the same type of thing.
However, now that I don’t need their stinking credit though, I get sent around 1 or 2 applications a week to upgrade my credit limit, or take the next ‘platinum plated embedded with real rubies American Express’ card!
The more you need money, the less comes your way.
It might not be fair, but that’s the way it is.
As a real estate investor, this principle holds true as well.
When we are hungry for the results and focused on making money to the exclusion of all else, profits just slip away from us.
We ‘force investments’. Plus, the more we try to hold tightly onto our profits, the more they run through our fingers like water.
Let’s have a look at why this happens and to work out some strategies that you can apply immediately to join the affluent investors out there who attract money easily and effortlessly.
There are secrets I am about to reveal in this article that I have never discussed before, even with members of my Mentor Program, so realise the GOLD I am handing you here.
It could just make the difference between your life always being a money-chasing struggle, and a life where money is magnetically attracted to your account.
If this is your goal, there are some key principles that you’ll need to focus on –
1) Broke vs Poor
I’ve been broke, but I’ve never been poor. There’s a huge difference.
Broke describes a situation where you don’t have enough money in your account to cover your lifestyle. You can get out of this situation by changing your circumstances, or you work harder, or when you apply yourself to making money from a different vehicle.
Being ‘poor’ is when your brain is twisted into thinking you don’t deserve the money, it’s someone else’s fault that you don’t have money, or there’s some other external factor standing in your way. Money just darts away from poor people with this type of mindset.
The best thing you can do for the poor is not to be one of them. It might sound harsh, but it’s true if you think about it.
The more cash you’ve got, the more you can give away. I’m not going to mention details as I find that sort of thing crass, but I’ve donated substantially to worthy causes, and worthy people. It’s liberating for them, but also for me.
If you give with feeling, you’ll find that money comes back to you in even greater chunks than you gave.
A word of warning though – Don’t be petty and begrudgingly give it away, just to get the boomerang effect.
For some reason, it just doesn’t work this way. You’ve got to give it away with the right intention, and feel good about your contribution to society.
Many investors feel a sense of emptiness, even when they were making money hand over fist. Unless they find a way to add deeper meaning to their lives, they will eventually self-sabotage, or just tinker with their systems until their profits erode.
Traders and real estate investors who rip out some of their profits and give back to their community feel more content.
Try it, even with a small contribution. It will help change any ‘poor’ thinking habits you may have picked up over the years.
2) Delayed Gratification
Sometimes you’ll have to go on faith that some of the things I suggest will actually work, even if they’re a bit painful.
I can tell you when I was pursuing my past goals, my thoughts and actions changed first – well before my circumstances caught up. This means that you have to work as hard on your mind-set and habits as you do on your trading plan.
So tell me – what happens when you get a bit of extra cash?
Chances are, if you’re like the majority of the population, you’ll spend it. Most times, the cash is already spent before it hits your account.
Now let’s say you get a lovely big fat windfall of extra cash. Cash to splash. Cash that can buy you real things and help you make a real impact.
Well, there’s a good chance you’ll spend that too.
If you ask my accountant, he’ll tell you that he’s never seen a trader, a real estate investor, or an entrepreneur who has made a windfall profit who hasn’t subsequently taken it up a level in their lifestyle.
Be warned though.
I am NOT saying you shouldn’t reward yourself. Yes, you definitely need to reinforce good behaviour and good trading patterns. What I am saying though is that you should be careful about the size of the reward, and also, make sure that reward is completely deserved before you indulge.
Even if it means that you have to delay buying something that you could already afford, to act as incentive, this will help you reinforce good trading patterns.
I say to my Mentorees, “once you’ve sorted out your trading plan, and you’ve done twenty trades exactly according to this plan, then definitely, buy yourself something tangible to reward yourself”. Twenty trades is an achievable goal and will provide both incentive and a pat on the back for a job well done.
Plus, it sets you up for a life-time of effective trading habits.
3) Keep $100 notes on you
Even if you’re as broke as can be, it’s important that you don’t stay down in that pit in your thinking.
One of the quickest ways to ‘lift’ your mindset is to keep a $100 note in your pocket or your wallet. I know a bloke who carries $2000 on him, even if he’s just going down to the milk bar.
Notice, I’m not saying spend the $100. I’m just suggesting that this can give you a really effective emotional trigger so you’ll realise “there’s more where that came from”.
4) Focus on money generally, but don’t expect a specific trade or to make the difference.
If you’ve had a religious background growing up, this may seem to contradict everything you’ve been taught. I can tell you though that unless you focus on your goal, you’ll never make it.
There is nothing wrong with thinking about money and focussing on what you are aiming to achieve.
I love the Gene Simmons (from the band KISS) quote, as I feel this sums it up best:
“If at the core of every thought you have, when you wake up in the morning to when you go to sleep at night is… ‘How Can I Make More Money?’… you will be shocked at how much money you will make.”
Money is not a dirty word. You’re working for it. You deserve it. Go and claim it from the sharemarket and revel in the rewards.
The problems start when you need the sharemarket to provide a certain amount of profit so you can stay afloat. Novice full-time traders with the goal of making $5000 per month fall into this trap all the time.
Money is lumpy in real estate. Sometimes you’ll be making huge, vast bucketloads of the stuff. Other times you may run into a dry patch.
That’s all part of being in the game. Adjust or perish.
5) It takes Work
Yes I know that the share market and real estate spruikers are out there shouting about how ‘you can make money while you sleep’ and ‘you can be a full-time trader, after learning my system for 3 days, even if you only have $500 to your name’. Or you can buy two properties with $2 or your lunch money.
Let me tell you though, this whole ‘declare war on work’ attitude just doesn’t cut it.
If you want to sit down and slide uphill, you’re in for a shock.
Rewards come to those who apply discipline, skill and a level head.
These qualities take ages to generate, and if you’re expecting it to happen over-night, you’ll be sadly disappointed.
You’ll need to give yourself a minimum of 3 – 5 years, the support from experienced Mentors to help guide you, and enough equity to apply effective money management strategies.
Anyone who tells you otherwise is creating a pretty little fairy tale that just isn’t true. It’s a nice thought, and it would be nice if it were true – but it’s not, so deal with it or get out of the game.
6) Sit on top of the mountain
Surround yourself with others who have achieved what you are aiming to achieve.
Hang out with those a few years further down the track. Immerse yourself in their thinking.
Absorb the way they think, not just their investment methods. Look at the mind tricks that have become second nature to them.
Sit on top of the mountain with them, and enjoy the view.
Instead of coming from a position of need, you’ll come from a position of power.
Don’t struggle up the mountain with your climbing companions who know less than you do, or have fallen into bad habits.
Find the guy or gal who has scaled the walls you are scrambling up. Sit up there with them, and live your life from a mindset perspective, as if you’re already there.
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