Would your spending be invisible to the world or would it cause fair-weathered friends to flock to you?

Hey You,

It’s #2.

Question: What would do or buy if you had a million dollars in cash sitting in front of you right now?

It’s all yours and you can do anything you want with it.

This question is the sole focus of Eben Pagan’s 4th Fast Start Session of his Self Made Wealth Program.

So, take out a sheet of paper or go to your trusty dusty journal write for 10 or 15 minutes and just jot down quick sentences that you’ll know what they mean. Not necessary for you write a whole story. What would you do and what would you buy if there was a cool mil in cash was sitting in front of you right now?

Make your wish list now and come back when you’re done and see what your list means.

Now, skim your list and look for all the Assets; things that would grow in value over time and things that would throw off other value or wealth or cash flow.

How many of the things on your list are assets as opposed to things where you’d spend the money and you’d have nothing to show for it or would depreciate in value or are ways to get rid of the money in a way that you’d never get it back. For example: Ultra luxurious dinners, High end clothing, brand new vehicles, boats, planes, posh hand bags, $4,000.00 umbrellas, 80” plasma T.V.’s for every room in the house including the bathrooms, etc.

Look at your list and see what percentage fall into this category.

Trailer Park Mindset vs. Oracle of Omaha Mindset

Warren Buffet, who as of this moment, is the 3rd richest person on the planet, lives in a home that a teacher could afford to finance himself into. Don’t know what Warren’s driving these days but back in 2006 he auctioned the 2001 Lincoln Towncar he’d been driving for 5 years on eBay to raise money for a charity. What’s awesome is that shortly after this, he bumped Bill Gates off of the pedestal of Richest Man On Earth. This means the soon to be wealthiest man alive had been putting around in an 5 year old sedan, a car your local bank manager could’ve easily financed his way into.

Most of the times when Eben has had people do this he’s found that 95-100% of the things listed are liabilities.

Something like “Buying a bigger home,” is more times than not about someone’s ego getting in the way and lusting after having a “Bigger Dick” than their buddies at work so they can show off as opposed to… looking for the absolute best value that would grow over the long term and then take this much money and dump it in mutual funds because then I could be using the yield off of that to pay my property taxes and the other fees on the home every year.

Most people just want the shiny objects so they can put on a show for other people.

So be honest. Go put a star next to the things that would actually be assets, things that would grow in value and throw off cash over time.

Our programming around money is not to go buy geese that lay golden eggs. Our programming is go buy golden eggs so we can have the gold right now. If you want to shift your wealth, you have to shift the way you see the world so that when you come into a little money, an asset or create some value in the world, that the first thing you think of isn’t “How I can I get rid of this and get an experience or something that declines in value and will never come back?” but rather “How can I take this resource and create an asset, a goose that lays fat golden eggs over and over and over?”

Now make another list by asking the question…

“If you had a million bucks in cash, how could you use it to buy 3 or 5 golden geese? What could you buy that would be assets, that would grow in value and throw off cash flow over time so that you can keep collecting that cash flow for life?”

Just asking yourself these questions separates you from 95% of population. If you don’t know the answers, you can go out and find them, preferably from people who don’t just talk about it, but actually do it with their own money, successfully and have done so for many a moon with comforting consistency.

Words to Live By: “If You Can’t Explain It, Don’t Invest In It.” Warren Buffett

Talk soon,

Note Taking Nerd #2