- Understand that where you end up in life is a result of your own actions.
- Understand that you are not the smartest person in the world (more on this later)
- Understand that I am not solely talking about money.
- Understand that you do not become rich by yourself.
- Understand that you have much more to learn.
- Understand that the 3 keys to systematic success:
- Long-term Vision
- Delayed Gratification
- The Power of Compound Interest
Long Term Vision:
Stephen R. Covey coined the phrase ‘Begin with the end in mind’. How do we convey this abstract message? A wise man once told me – if you want to figure out how others perceive you start with what you would like said about you at your funeral. Write it out, literally. Draft your own funeral speech. For me I would like to be known as a person who finished the race and fought the good fight. It’s kind of pointless to order an Uber if you are not sure of your destination.
Let’s take a play from Elon Musk’s playbook. A famous quote from Elon Musk – “My proceeds from the PayPal acquisition were $180 million. I put $100 million in SpaceX, $70m in Tesla, and $10m in Solar City. I had to borrow money for rent.”
The Power of Compound Interest:
The easiest way to visualize the power of compound interest – imagine a snowball that starts rolling down a hill. As it rolls further down the hill more and more snow gets packed together causing the snowball to grow. Compounding Interest doesn’t have to work against you. Einstein is quoted saying, ““Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
A billion dollar company behaves like a billion dollar company way before it is a billion dollar company.
With these three concepts we can stop looking at our respective business as some particular product; no, we begin to look at our respective product as a business. What does that mean? Let me give you an example – Ray Kroc (He is known for franchising the McDonald’s business) didn’t look at McDonald’s as a decent burger joint, no, he looked at his product (the McDonald’s Business Plan) as a successful business model. Ray Kroc wasn’t in the business of burgers, shakes and fries. Ray Kroc was in the business of franchising. He sold to hungry customers, however these hungry customers were Entrepreneurs looking for a successful business model. The true product is the business model. There is much more to be said on the matter – I recommend reading two books that will delve into this subject better than I can; those books are: “I will teach you to be Rich” By Ramit Sethi and “Choose Yourself” by James Altucher. Both books together will probably cost you about 8 or 9 bucks through Amazon.
And as always, thank you for reading.