Here’s what we’re talking about today… cash vs. credit – “Wealthy money” vs. “poor money”.
Tabu among many (you?). My 2 cents on the subject…
It’s a reflection of how wealthy think about money vs how the poor think about money.
First thing you should understand is that cash and credit are both actual money. But how you use that and how you feel about that determines your ability to make proper investments into your own success.
We talk about this all the time with our clients… “Oh men I’ve been scammed at certain level. I just don’t have the cash to invest to XYZ.” And we’ll talk to them about credit.
And these people are curtulary hardwired to despise credit. They believe it’s a actually a bad thing.
But when you dig into businesses that are larger and that have done some amazing things, they use credit ALL the time.
Credit is a good thing as it gives you leverage.
How?
Cashflow. You leverage someone’s else’s money that’s interests free. You don’t just stack up debt. That would be stupid. But you can leverage someone’s money for your own benefit.
And investment isn’t just something like “someone is willing to give me credit, let’s spend that!”
And it’s not either so much important that you believe in the solution you’re investing into (obviously you should, that’s given), but there are too many variables you don’t know and won’t EVER know upfront. Sure you see testimonials and case studies and logic, and jada jada. That’s all good.
But “the bet” must primarily be on you, NOT the solution. You must believe in yourself and your own ability and determination to actually turn investment into positive experience and positive ROI.
And people come to us and are like “I can’t invest, I don’t have cash, I have to save all upfront then I’ll pay…etc.”
This reveals their inability to bet on themselves. They feel that they don’t have the discipline it takes to make it work by going through the process (again, process should obviously work when executed as instructed).
That’s why they’re afraid of it. It’s not just that they are deficient in cash, but in confidence also.
I have no problem dropping 3,5,7k in someone or even 70k in something. I did it. I’m doing it. And I’ll do it. Because I have the confidence in myself I’ll recoup that investment. And if worst case scenario happened, and for some reason I don’t get results; whether service provider totally sucked and he blew it or something. I’m ok with that.
Whaaaat?!
Again, vet who you work with. Talk to people on the phone. Feel them. Check their SM profiles etc. Don’t fall for every scammer out there. Follow them for some time, go through their material etc.
But the model for making a decision is 2-fold and goes something like this:
- What are the NEGATIVE consequences of NOT being able to move forward or in this particular area? And get a handle on that.
- And then also what is the likelyhood of me being able to make this money back in the next 12 months as a results of this investment? (doesn’t have to be business growth, it can be life coaching or yoga or anything)
And if you have a decent likelihood of getting it back in 6-12 months, I recommend that investment is made on credit, because you’ll be able to monetize that WITHOUT utilizing or cutting into your own current cash flow.
This romanticism exists among people that paying in cash is cool thing. Well it’s not.
Why “eat” your current cash flow when you can utilize someone’s else’s money?! If you’re ABLE to make an investment and not cut into your current cash flow, than there’s nothing romantic in that. Buying cars or homes in cash? I don’t think so.
I could have all the money in the world in my accounts and I’d still use credit all the time. Because ROI of money I have “on hands” is (and should be) always higher than interests I get from credit. Capish?
Now piece of warning. You don’t wanna go too far ahead of yourself either. Don’t be stupid. You have to prioritize and have focus. You should invest into one mentor, before you invest into 3-4 others. You wanna make sure that your output is being kept up by your action and your results. Does this makes sense?
There’s something else…
…Your growth and your comfort zone are on the opposite sides.
I learned a habit to put myself into a corner. I learned that when I’m going to make an investment, my skin is in the game, so I HAVE TO take action.
And that’s the problem with lots of this info products… like $4. You have this people that will buy everything and NEVER implement anything. And that’s a problem. It’s comfortable. It’s entertainment. Growth? Never.
Let’s wrap this up…
Today we explored 2 different ways of looking at ROI. So if you don’t have the confidence to leverage the credit, then it’s probably deeper issues going on with you.
Thoughts?
Until next time,
– Alan
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Lessons:
- Credit is a good thing and can be used as a driver/kicker when you have your “skin in the game.”
- Investing with cash is NOT cool. Always invest with credit (ROI must be higher than interests on credit).
- You must always bet on yourself 1st, only then on solution you’re investing in.
- Make decisions with 2-fold model (read above).
- If you believe you can recoup investment in 12 months (or earlier) make the investment.
- Focus & prioritize. Invest in 1 mentor/help at the time.
- Your growth and your comfort zone are enemies. Put your skin in the game for good if you want growth to happen.
- Book a call even if you believe you can’t afford to work with us and be surprised at how much we’re ready to help you succeed.
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