8 Secrets of the Truly Rich
By Bo Sanchez
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| Truly Rich Club |
Part 2: As for continuation of 8 secrets of truly rich, let us do some recap from part 1. The 3 out of 8 secrets are: Be totally responsible for your success, Enlarge your psychological wallet, and Get rid of crazy religious beliefs. 1-3 secrets deals about the right mindset of being truly rich. 4 - 8 secrets deals about the way how to become rich.
4. Be Completely Committed to Your Dreams
As for the 4th secrets, Bo starts this chapter by defining three levels of desire: Wish, Want, and Commitment.
When we WISH we just hope for something to happen but actually do nothing to fulfill that wish. Usually, nothing happens at this level.
When we WANT something, we put in a little action to fulfill that want. Unfortunately, the passion won't last long and we give up and abandon the goal after a while.
The third level is COMMITMENT. When we are committed, we start to believe what we say and we work hard toward achieving that dream for the long run. If we want to be rich, we have to be COMMITTED.
Also in this 4th secrets, Bo defines three types of living: Moviegoer, Actor, and Actor-Scriptwriter.
Moviegoers watch the movies of their lives, admiring some parts and criticizing other parts but beside from that, they don't do anything else.
Actors are those that don't only watch the movie of their lives but also can control a big part of their lives. They enjoy some level of control but they are limited in such things as deciding the ending of the movie.
Actor-Scriptwriters are those that don't only watch, don't only act, but actually create the entire movie from their minds. They determine what they want to do and how the movie will end. You have the power to create the life you want. Be the scriptwriter of your life.
The book suggested on by committing to our goals and dreams, it is important to do the following:
Write down your Dreams!
Read your Dreams Everyday!
Apply the Power of Focus.
Apply the Power of Attraction.
Read your Dreams Everyday!
Apply the Power of Focus.
Apply the Power of Attraction.
Bo explain that by writing our dreams we open ourselves to life's river of abundance. Be as specific as we can get. And when we read what we wrote daily, we multiply the power of that river tenfold.
If we're doing this every day, don't be surprised at how money-making opportunities will open up before us. Actually, they're already there, waiting for us to discover them. The universe adjusting to our expectations.
5. Raise your Financial I.Q
The 5th secrets. Financial Ignorance is Expensive
Some people think that buying books and attending seminars about personal finance are a waste of time and money. But what those people don't know is that being financially ignorant is actually more expensive. You may be an expert in your current profession but knowing How money works is a totally different field of expertise.
From these 5th secrets, Bo suggested and explain.
A. Avoid Bad Debt Like Bad Bacteria
Bo suggests the following crucial actions you need to make if you are buried under a lot of debt.
*Declare your Freedom Day
Set a target date when you want to be debt-free and call if your Freedom Day. Read, think, and pray about it daily. Focus on your freedom and not on all your debts.
*Create New Ways of Pleasure
Examine your lifestyle and cut back on your expenses. Find new and simple ways of joy, and pleasure. Preferably, find substitutes that are free or much more less expensive but that can provide the same level of pleasure or even more.
*Schedule Your Steps to Freedom
Schedule your debt payments. Start paying off high-interest loans first. Try looking for loans with lower interests, where you can transfer your current high-interest loans.
*Don't Borrow When You Can't Afford it - Period!
As Bo says, "Don't borrow to buy consumer goods ever again. If you don't have money right now to buy it, then don't buy it." If you can't discipline yourself to use credit cards then get rid of them.
*Negotiate with Your Creditors
Banks and other lending institutions are ran by human beings after all. Meet with them regularly and assure them that you'll pay. Negotiate with them. Ask them if they can lower the interest rate. Don't back down simply because they say it's policy. Everything is negotiable.
B. Protect Our self Adequately
Most of us are under-insured. Some don't even have insurance at all. We need to protect ourselves so that our families who live and depend behind us will have sort of an "income replacement" when we die. Bo suggest that insure ourselves equivalent to 10 times our family's annual expenses. (Example: if your family spends Php. 100,000 a year, you will need a Php. 1 million insurance) This way your family can have more than enough time to look for a new income source. Better yet, they can be financially wise and invest the entire amount in a fund that earns 10% a year.
This way, the Php. 1 million will earn Php. 100,000 a year which is the same amount your family was spending while you were alive. This way, they're provided for the rest of their lives!
C. Build Your Retirement Fund Now
Dying young can be a problem and it would be important to protect your family through insurance. However, living too long can also be a problem. In a survey on people above 65 years old, around 40% have to keep on working to survive, around 30% depend on their relatives to survive, around 8% depend on charitable institutions, and only 2% are financially independent. In order to protect yourself from living too long, you need to build your Retirement Fund now.
Here's how to Build your Retirement Fund.
1. Automatically save 20% of your monthly income.
2. Invest as Early as You can. The earlier you save, the more you'll have in the future. (The power of compounding interest)
3. Don't Put Your Retirement Fund in the Bank.
Instead, Bo suggest that we must become Investors and put our long-term retirement funds in mutual funds, bond funds, equity funds and stocks. Although these instruments present more risk, money put in these instruments for the long-term have produced far greater yields compared to regular bank deposits.
6. Ride Something to Wealth
In the 6th secrets. Bo encourages us to ride as many vehicles to wealth as we can. We can choose to ride bicycles, cars, or even airplanes to wealth!
By riding vehicles to wealth, Bo emphasized the importance of having multiple income streams. It doesn't matter how small the income stream is as long as there is an inflow of cash. Another point he stressed was the importance of profit over wages. Profit, of course, is achieved by running your own business as oppose to receiving wages as an employee.
Bo used the analogy to going from one place to another to illustrate the importance of riding vehicles to wealth. Let's say you want to get from site A to site B, one can either walk, ride a bicycle, ride a car, or ride an airplane to reach site B.
The difference is on how fast each vehicles will get you to your destination. Definitely walking will take you the longest time to reach site B while riding an airplane will most likely get you there faster.
Walking to reach our goal equates to leaving our money in regular savings accounts and time deposits. Although our money earns interest, it'll take years before the earnings become meaningful. On the other hand, Bo's riding a bicycle by investing his money in Investment funds. Investment funds can either be UITFs, Mutual Funds, and Stocks. By investing our savings in this Investment funds, we can potentially earn more and reach our goal faster as like riding a bicycle.
Faster than riding a bicycle is to ride a car to wealth. Bo Sanchez compares riding a car to starting your own business which can help us to gain wealth much faster compares on riding a bicycle. He wrote that 74% of millionaires in the world are entrepreneurs. He suggest use your core gift with passion and earning from it. In order to figure out what your core gift is, try answering this questions: "What do you enjoy doing?" and "Where are you good at?"
If you are passionate about your business, then the chances of succeeding are much higher than when you just feel obliged to enter to it because you think it's a good opportunity.
When your business or investment becomes big then it would be like riding a plane to wealth! The bigger your money or investment are, the faster to achieve your dreams! The more money you have, the more money you can use to generate income, the faster it is to become wealthy.
Although it took 10 years or more to achieve first million, the second million can come in a couple of years or even faster depending on how aggressive you are.
7. Have a Bias For Action
From the 7th secrets. Bo shared that while we are taught to aim before we fire, he used "Ready ... Fire! Aim ...(And fire again ... Aim ... fire again..nth)" on his every projects. Bo, of course, doesn't encourage recklessness. That is why the first step is "Ready." He just wants to discourage what most of us are likely to end up doing - that is to keep on aiming but never do fire.
As one of the Truly Rich Principles, Bo wrote "For pioneers, perfectionism is never a good strategy." We must allow ourselves to fail. And when we do, we must then learn to forgive ourselves and bring ourselves to act again.
Lastly, in whatever we do, we must learn how to hustle! To hustle means "to believe that there's a solution to almost any problem - take it upon yourself to find it!" -Bo Sanchez-
8. Win in All Areas
The 8th secrets. Bo encourage everyone to have a balanced life. Believing in the power of our beliefs to define our reality, he admonish that everyone must need to win in the 7 major areas of life. He mentioned that everyone needs to ...
1. Strengthen Relationships
2. Grow in Emotional Maturity
3. Use Our Core Gifts
4. Get Physically Healthy
5. Gain Wisdom
6. Build Money
7. Nourish Our Spiritual Life
In the succeeding sections Bo describe a few things he has learned in his own life that when applied in our own lives will help us achieve success in all major areas. For one, he says that we must follow our inner compass and do everything with passion. It would also help if we learn to define success our own way and not define it through how others see success. He preaches that we must give our best in everything that we do.
We must learn to compete with ourselves and stop comparing our achievements with others. And most importantly, that our harvest will depend on how much we give - "The more, you give, the more you receive."
Every time I open this book I learn something new. This is one of the reasons why I've decided to share this. I hope you learned also a few things from this post. Happy Investing...
