Our view of the world is colored by our perceptions; our perceptions are colored by experience; our experience is adulterated by media influence. The secret to financial wealth is between the ears. How you think has as more to do with wealth creation than hard work. It is possible to work hard and accomplish nothing useful. Only with the correct mindset is value created.
Tony Robbins is fond of saying, “The past does not equal the future.” I think he is right. The average man or woman spends too much time worrying about every failure they experienced in life. Moving from mediocre to significance requires burying the past: the good and the bad. Past success isn’t good enough to ride on and failure doesn’t define you unless you allow it to.
There are only a few seemingly minor differences between happy, well-adjusted, successful, wealthy people and the masses. Believe it or not, wealthy people do NOT consider money their most valuable asset; time is. Money can be lost and having money always requires investing it or burying it in the ground. Both options carry their own unique risks. Rich people know money is easily replaced. In a world of fiat money (issued by decree) the government just prints more when things get tight.
Time is another issue. Whereas, you can always rebuild from a failed financial venture, time wasted is never recovered. The best one can hope for is a learning experience applicable to future endeavors. The financially successful of our communities know every moment should provide value. Sleep nourishes, quiet time allows for reflection, work feeds the soul and reading feeds the mind.
The Neighbors You Keep
I worry at times the FIRE (financial independence/retire early) community will implode. The group is diverse with people from all walks of life. Jealous and selfish people have plenty to gain by harming the movement. Perceptions are all important.
Think of a new friend you meet at a financial conference. You hit it off and share stories. You feel a strong affinity with your friend until you are shocked to learn she has AIDS. She never changed, your perception of her did. And that is wrong. If she was a nice person to talk with, she is still a nice person even if you learn she has a disability or disease.
Judgmentalism is a damning disease that destroys everything around it. It is so easy to judge others. The Bible even has a verse warning of such behavior, where Jesus preaches to take the beam from your own eye before the sawdust from your brother’s. (Matt 7:3-5) Many religions warn against judging other as it leads to you being judged.
Walls are easy to build; near impossible to tear down! It is easy to stay within your own comfortable group. But if you are well on your way to financial independence, you need to share with people beginning their journey. Most people would rather continue their foolish money habits. Those who come to camps, meet ups and conferences (FinCon and the various FI camps around the world as examples) are eager to learn. Sticking tight to your click encapsulates your knowledge and experience. Only with open arms can they learn and grow. In fact, the only way for you to move another step higher is to share your experience! If you stagnate you risk tumbling back down the hill. It’s happens faster than you think. Billionaires have gone broke!
We can also judge people by where they live. Our initial impression is shattered when we discover our new friend lives on the wrong side of town. Once again, nothing changed except your perception.
Let’s hit closer to home. Your favorite accountant lives in a sleepy part of a quiet state. Yet, in this quiet neighborhood, the district attorney in the county where my office is planted went to prison on federal and state charges of bribery. A few of the convictions were overturned; most were not. Justice went astray for a long time in my community.
More recently, the district attorney in the county I live was booted out of office. His wife was accused of activities which could be construed as federal felonies! People get sick of that behavior from elected officials.
My county has a long history of poor behavior. The drama of the Netflix documentary, Making a Murderer, took place seven miles from my doorstep! To make matters worse, one of the key players in the investigation, Mark Weigert, is now running for sheriff and is likely to win! You can watch the documentary where Weigert gets a 16 year old kid, Brendan Dassey, in a secluded room and grills him for hours without his parents or an attorney present. Dassey has an IQ of 73 and a verbal IQ of 69 according to the documentary. Making a Murderer is chilling to watch. How anyone can take pride in cracking a kid with a low IQ is beyond me.
If we saw this happen in a third-world nation we would be up in arms. Since it happened right here in the good ol’ US of A we stand in stunned silence. Do we hate everyone from Wisconsin or my county? I sure hope not! Every community has things it would rather not talk about. Once again, we shouldn’t judge people without knowing all the facts. (And you never have all the facts.) Judging someone on a past fact diminishes you and invites others to return the favor.
Perceptions can cost a community or individual. Poor choices a lifetime ago can extract a current cost if you allow it. Perception has a powerful hold.
Wealthy people make mistakes all the same. The only difference is that they don’t allow perceptions to derail their aspirations. Never allow someone else’s perception to alter your focus. Lesser people will always want you to quit. Winners don’t do that!
Your Most Valuable Asset
While average people are concerned with the perception people have of their work ethic, status and affluence, the wealthy are laser-focused on the most valuable asset anyone possesses: time.
Warren Buffett, Bill Gates, Elon Must and Jeff Bezos all have the same amount of time each day as you. What each does with that time determines the level of value created. Create massive value and financial wealth is sure to follow.
When you are more concerned with the actions, past and present, of other people, you are allowing your perceptions to be twisted. This will make you average, mediocre. Your desire for all the benefits financial independence brings will be derailed because you allowed your precious time to be wasted by unimportant dramas.
Tony Robbins is right, the past and future are only loosely connected. Past mistakes mean you tried. That’s more than you can say for most. Mistakes do not define you; how you handle them does. If you quit because you’re worried what others might think, you rob the world of your talent and experience! All the time invested learning those skills is squandered. You have wasted the most valuable asset any human being possesses. Rich people don’t do that.
If your dreams involve early retirement (retirement at any age) then you must use your time wisely. Business ventures will fail. Ideas that sounded good at the time will fall flat. Screwing up is not the problem. Never screwing up is! The only way to never screw up is to never try. If you never try, all you have is delusions of grandeur.
Carry It with Pride
I don’t walk around telling people my net worth. Money is a score card for determining value created in my practice. As much as I avoid talking purely money, people tend to come to the conclusion quickly I have a significant financial pot of goodies.
People develop a perception of me fast. The same happens to you. Then the gloss wears off. My human side is exposed, warts and all, and the weaknesses and failures are revealed. Business ventures that ended with a dead thud remove the illusion, the perception, everything I touch turns to gold. (I butchered that goose a long time ago for stew meat.)
Successful people make mistakes. Big ones! It comes with the territory. You’ll also notice the failures don’t distract the successful from the true prize.
Elon Musk is a modern example. He made a fortune with PayPal and instead of sitting on his hands he risked it all on SpaceX, Tesla, Solar City, and now The Boring Company. Any one of these ventures could cost him his financial fortune.
But Musk knows money is not real wealth anymore than the scorecard in a bowling game is skill. Value must continually be created! He had to risk it all to do something of real value. His rockets are unique in their performance. Nobody has anything like it. Automotive manufacturers told us electric vehicles were not a viable option until Musk made it a reality. Now the simple-minded are playing catch up.
I don’t encourage mistakes. They happen easy enough on their own. But you should own your mistakes. Wear them with pride. They are a reminder you are human and remain motivated to create value. Scars are a badge of honor. When they lay you to rest, pray your skin isn’t smooth and soft. Pray to be covered in scars of experience. Yes, it is painful. But it is the only way to live life with meaning.
Our Deepest Fear
I’m going to close with a quote from Marianne Williamson:
Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, and fabulous? Actually, who are we not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so other people will not feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It is not just in some of us; it is in everyone and as we let our own light shine, we unconsciously give others permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.
I can’t say it better.
More Wealth Building Resources
Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?
Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.
QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.
A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.
Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you.