Why should I read this?
This is the story that I have always loved. So the story is like this that once there was a business manager whose age was close to 40. He was always short of money so he makes an appointment to meet a financial advisor so that he can get some advice related to finance. So what happens now is that on the day of the appointment, he reaches his office to meet that financial advisor. There were two doors outside that office, one of which had “Employed” written on it and “Self-Employed” on the other. The man opens the door written “Employed” because he himself was an employee. And when he opens that door and goes inside, he finds two doors again.
One of the doors read “Earning less than $40,000 in a year and the other read “Earning more than $40,000 in a year” Now that manager’s earning was less than $40,000 a year so that’s why he opens the first door. On entering, he again finds two doors, one with the words “Saving more than $2,000 in a year” and the other saying “Saving less than $2,000 in a year”. Now because that man’s savings account just had only $ 1,000, so he opens the second door and goes inside and sees that he has come back to the same place from where he went inside the first time in the office.
Actually the thing is that if you choose the same choice, then you do not reach anywhere instead you stay on the place from where you had started. You will always come back where you left. Because to proceed further, you have to open different doors so that you can get different results. But how to get these results? If you want to know what we have to do to move forward, then read this summary.
Chapter 1: We live in a world of copy cats –
If there is one thing we are all good at, it is copy-catting. But the question is that because we copy almost everything, then why have we not copied any way to create wealth till now? Our copying habit starts from the day we are born. We copy the language of our parents, we copy their moves, we copy their lifestyle. In school, we learn to write by copying the letters, then we learn to drive, we pay the instructor to teach us how to copy him. And the better we copy him, the more we learn to drive better.
However, like everything else in life, copying has its downsides.
Just because we keep copying everything, it does not mean at all that it is a good thing. Now consider only this thing that when you copy a bad habit, because the person you are copying must be right, it is not necessary, is it? For example, take this story for example, in which a man has a shop of clocks. Every day an old man passes by the man’s shop and looked at the clocks. He took out his pocket watch and saw something and went on his way. The store owner was very surprised to see this habit of that old man. So one day he came out of his shop and asked the old man what he was doing.
To which the old man replied that “I blow the whistle every day at 5 o’clock, so I make sure of the exact time by looking at these watches while passing by.” After listening to the old man, the shop owner laughed loudly and said. “I set the time of my clocks every day listening to your whistle.” In fact, both of them were copying each other. And both of them thought that the other person was right, but they just looked up and were wrong. So “why didn’t we find any method to copy to create wealth?” The answer to this question would be that we copy the way of job track and not the track of wealth creation. So why is it so?
Actually this is because most of the people think that job is the only way to fulfil their financial dreams. So now you should choose wisely, like 95% of those people who are on job track, and probably by the age of 65 who would have gone bankrupt, would you copy the same thing. Or would prefer to copy 5% of people who are on the wealth creation track and who may have become financially independent or maybe even wealthier before the age of 65.
Chapter 2: What is True Wealth?
The meaning of true wealth is not only that you can buy things but true wealth gives the ability to be free which means you have so much money, so much time to do whatever you want, whenever you want and here Keep one thing in mind that having enough money is never enough. You should also have enough time because lost time never comes back.
You will find many such high paid doctors or engineers, but if you ask them if they are free, then their answer will be NO! Because those people are not really free. If anything ever happens to them and they have to quit, they will not be able to survive without the same lifestyle that they are used to.
This is called income creation which means that you trade your time in exchange for money. And you don’t earn anything in it unless you do something personally. This is a kind of trap or as our authors like to call it “time-for-money-trap”. Income creation is temporary, it is not long lasting, once you have stopped working for some cause like suppose you are not able to work due to some disease then just tell how will you afford? No, you don’t have any answer for this. Well then how can you afford a luxurious life that doesn’t depend on whether you work or not?
But this can happen when you have a residual income. Residual income basically keeps earning money for you whether you go to work or not. This sounds like a bit of a dream, doesn’t it? Well, luckily it’s not fictional. This is not a dream. Let’s make a fictional character we’ll call him John. John has been saving 10% of his income since 40 years and he has invested this money very wisely. And when he retired, he had more than one million dollars invested, of which he used to get 10% every year and this amount is equal to $100,000. So in a way, he is earning this money without doing any work and this is his actual wealth.
Chapter 3: Trading Your Time for Money –
Nowadays we have 50/50 plan, we work 50 hours weekly every year for 50 years and when we retire, we get only 50% of our life time earnings. And the problem is that what we used to earn earlier, it was not enough even then, imagine that when we will get only 50% of it, then how will we survive after retirement? This is a basic example of linear growth. To calculate linear growth simply, we use the following equation: “H” (Hourly Wage) x “N” (Numbers of hour Worked) = “I” (Income). It simply means that what you give is what you actually get and when you are not able to give that much, how can you get more.
To explain the limitation of linear growth, let us understand it with an example. There are two people who do two different jobs. Let’s name the first one as John. Now John works as a flower seller at one place. From this work, he earns 10$ every hour and if he takes out the transportation from home to work and also works daily, weekly 6 days, then he earns 600 $ week. And if he works 50 weeks every year, then he will earn on $ 30,000 a year. If seen, this is not even such a small amount because many people can only dream that they wish they could earn so much. Although this is John’s maximum income of $ 30,000 every year, he can never earn more than this.
And he is not able to spend much time with his family nor does he ever take a break. His income is based on his linear growth. He gets paid only once and once he gets the payment, he has to race again. In this way, he is trading his time in exchange for money.
Now we take the second character. This is Mark who is a general practitioner in medicine line. He earns $150,000 per year which is a substantial amount. However, even then he has to work 10 hours a day and 6 days a week, so in this way he is a slave of his work. He returns home exhausted from work, unable to spend time with his children. He is not living the life he had imagined. And the real problem is that whether you earn $ 30,000 a year now or $ 150,000 if you leave the job once, then your earning is zero. The CEO of a company earns a lot of money. Maybe on $3 million a year or more when his employee makes only $20,000 a year, why is that? This is because the CEO knows how to leverage money. His employees are his leverage so he earns 1% of the effort of his 100 employees instead of 100% of his effort. And that’s what leverage is. Although just having leverage is not enough, you should also know how to use it or else it is useless for you.
In this next chapter, we are going to explain the same thing to you.
Chapter 4: Work Smarter Not Harder –
Let’s go back to the time of August of 1888. Asa Kendler bought the exclusive rights to a carbonated Fountain of Drink named Coca-Cola for $2,300. It was a huge success as almost every drug store at that time used to have a fountain of this drink where visitors could drink Coca-Cola for 5 cents. However, one day Kendler took a decision that really changed history.
One day a friend of Kendler’s came to his office and gave him an advice in exchange for a small fee. After thinking comfortably for some time, Kendler paid him the fee. His friend came up to him and said softly “bottle it”. What was it then, before the bottle of Coca Cola came, people had to go to the drug store to drink it. Therefore, the entire profit of the company was dependent on how many people would go to the drug store with an effort to drink Coca-Cola. But by bottling the drink, leverage was created.
The company leveraged time, effort and location by putting its product in the bottle. And now that their product was on sale in bottles, one could imagine a 6-pack fountain of Coca-Cola being enjoyed in their own home! So this is leverage, so that you can do your work in a smarter way instead of harder or in other words, it is a way to earn more money in less time.
Leveraging Your Way Through Franchise –
Nowadays franchise business is very much in trend. Almost 60% of America’s goods are supplied through the franchise. This is a good business but it also has a huge down side and that is its start-up cost. Now for example, not everyone is rich enough to spend $1 million to get a McDonald’s franchise. And the worst part is that you will not get rich with just one franchise, for this you will have to take multiple shops. But the good news is that there is also another alternative franchise system whose start-up cost is so low that it can be started even in 500$. You can get paid 1,000 times for the work you do only once. Now you will ask how? Let’s see its answer in the next chapter.
Chapter 5: Exponential Growth –
Ociyolamcarty was 88-year-old lady who was living a very tough life. For a living, she used to do laundry and iron the neighbor’s cloths for which she used to charge a bundle for 2$. And after World War II, she increased its price and bundled it at 10$. Despite all this, she was able to earn only $ 9,000. When she was 40, she started saving some money. This savings kept on increasing with time. And in the summer of 1995, she donated $ 150,000 from his savings to a charity. Now the question is that such a woman whose income is below average, how could she donate such a huge amount? She used to invest some portion of her savings in something every year.
Instead of spending money, she used to invest it. And we call this thing “compounding”. Let’s explain it further. Let’s say you invested $10,000 in Xerox 25 years ago, today your $10,000 will turn into 40 million dollars. This is an alternative way of franchising. Franchising is undoubtedly a good thing but you should have a huge amount to start it but it is not so in compounding. You can earn a big profit after some time by starting with less money. So now how can you earn big profit from a small amount without any long time weight? So the answer is network marketing. And we will read about it in the next chapter after Synergism.
Chapter 6: Synergism –
Erst Hemvi was trying his best to sell his waffles at the 1905 World’s Fair. He kept on promoting it, yet no one bought his waffles.
And the worst thing happened to him was that there was a line of people outside his very next store where ice cream was being sold.
Then one day the ice cream seller ran out of plates, so he asked Erst to borrow some plates. Erst did not have plates, but he thought why not roll the waffles in such a way that the ice cream could be held in it. And thus the ice cream cone was formed, which people liked very much. And then the ice cream cone became famous all over the world and even today it is everyone’s favorite snack.
This ice cream and waffles story is a perfect example of synergism. Two good products or concepts which are completely different from each other yet when combined, a new great product or concept is created. Now imagine that you have taken the charge of creating a perfect synergism of wealth creation. Such a powerful synergism that will touch everyone’s life on this planet, which is affordable and a duplicate synergism can be available to everyone. Well, it is quite simple and I would like to call it a marriage of franchising and exponential growth. So what will be the result of their marriage? Network Marketing, The Ultimate Synergism.
Chapter 7: Network Marketing –
Duplication is the way in which franchising can be made successful. And the key to create wealth is Compounding. So if we combine these two, then network marketing is formed. For network marketing, simply join a company that is already implementing this system. For example, they will give you a product that you have to sell and when you sell it, you get 25% commission. It may not seem like a huge amount, but if you teach this to even one person every month, then good luck, your commission has increased because when that person sells further, then you will get commission out of that too. And when that person teaches this to someone else, then your commission will increase further.
This is a pyramidal structure. The more people involved, the more your commission will be made. And my dear, this is the only way to copy the way of creation of Wealth. It is just like franchising but the only difference is that you do not have to spend million dollars for start-up, but you will have to spend very less money and instead of going to daily office, you can work from home.