User Power
Value/Post Ratio
273%
- Jun 24, 2014
- 1,578
- 4,302
Because I don't want to waste my money on 24 carat gold canes.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Welcome to the only entrepreneur forum dedicated to building life-changing wealth.
Build a Fastlane business. Earn real financial freedom. Join free.
Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.
Free registration at the forum removes this block.
User Power
Value/Post Ratio
107%
- Sep 23, 2013
- 649
- 693
- 34
uhh, not having money sucks... That's why we want it now. It's really that simple.
Just because I want it sooner than later does not reflect on any of my business decisions.
Side note: Companys who focus on a single metric and do everything they can to hit that metric, generally get there faster. There is actually a couple case studys on this.
Just because I want it sooner than later does not reflect on any of my business decisions.
Side note: Companys who focus on a single metric and do everything they can to hit that metric, generally get there faster. There is actually a couple case studys on this.
Often my "likes" are just a show of support.
For me it is liberation and freedom from dysfunctional b.s. To know I can move beyond small people and a small town that has small thinking. Most of all to teach my son he can do anything he puts his mind too and it doesn't matter what the world says or thinks about him. I do what I do to be the example for future generations. My legacy! My grandfather had big dreams for me. He had to quit school in 8th grade to help feed 11 siblings. I promised I would get an education. He was filled with wisdom and was a responsible man. Maybe not a millionaire, but he was a billionaire at heart and soul.
I graduated after he died and now I'm going beyond the promise I made. If he was here today, he would be very happy and very excited for me to be at this point. lol He was always taking action, I'm not sure why he never went for entrepreneur etc. He could have, but instead he enjoyed helping disabled veterans, volunteering, and working in the blue berry fields until he was 80 years old. lol He never let his brain go dead and never sat at home and was lazy. He was always doing something and enjoyed life.
I am his legacy, and being a path cutter and teaching my child to rise above dysfunction of society opens new avenue's for my grand children. Whether that works or not, I can't tell you, but I know that was my mission from the start 19 years ago. This isn't just about me. It's about being the example to others. People need you to succeed for them to succeed. While I may some day get the rewards of money and fulfill my dreams, it leaves foot prints to follow in success instead of dysfunction and sidewalk mentality.
I graduated after he died and now I'm going beyond the promise I made. If he was here today, he would be very happy and very excited for me to be at this point. lol He was always taking action, I'm not sure why he never went for entrepreneur etc. He could have, but instead he enjoyed helping disabled veterans, volunteering, and working in the blue berry fields until he was 80 years old. lol He never let his brain go dead and never sat at home and was lazy. He was always doing something and enjoyed life.
I am his legacy, and being a path cutter and teaching my child to rise above dysfunction of society opens new avenue's for my grand children. Whether that works or not, I can't tell you, but I know that was my mission from the start 19 years ago. This isn't just about me. It's about being the example to others. People need you to succeed for them to succeed. While I may some day get the rewards of money and fulfill my dreams, it leaves foot prints to follow in success instead of dysfunction and sidewalk mentality.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
User Power
Value/Post Ratio
74%
- Aug 20, 2012
- 658
- 484
- 31
LMAO! Nice Neil Young reference!
I think the scariest part about building something is differntiating between working on a failed project for years and telling yourself "Just be patient, all good things come in time", when in reality it has failed and you're just wasting time !
I've never been a person with a lot of patience
User Power
Value/Post Ratio
188%
- Jan 2, 2013
- 976
- 1,836
I would rather have it young than wait 'till 65.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
User Power
Value/Post Ratio
89%
- Oct 18, 2014
- 372
- 331
- 31
Well the biggest reason is opportunity cost. I have other goals and dreams that financial freedom will be a gateway for. The thing is, it's also a race against time.
For example, I am in my early twenties, if I want to compete in an NCAA sport and then also have other goals, I have to prioritize them. Financial freedom that comes quick would be best for me.
I understand where you are coming from though. The process is meaningful. However, the last few years of my life, although have not been spent in grinding as a businessman, have been very enlightening and eye opening. I have learned so much that people learn in their process to get to the top, so I consider all of it as a process that was necessary for dramatic inner change.
In that perspective, it has been very long for me, but in terms of working on a business, no it hasn't if you consider about a year not long.
For example, I am in my early twenties, if I want to compete in an NCAA sport and then also have other goals, I have to prioritize them. Financial freedom that comes quick would be best for me.
I understand where you are coming from though. The process is meaningful. However, the last few years of my life, although have not been spent in grinding as a businessman, have been very enlightening and eye opening. I have learned so much that people learn in their process to get to the top, so I consider all of it as a process that was necessary for dramatic inner change.
In that perspective, it has been very long for me, but in terms of working on a business, no it hasn't if you consider about a year not long.
Teach others to step out of the million boxes in society and create their own reality versus following the crowd.
To become my full potential
To be different
While most have no faith in society or human nature, to be the example there is someone that makes a difference among many others who make it a better world.
To inspire others to move out of their dysfunctional families and reach their potential
You can't tell people what to do. They'll argue with you every time.
All you can do is show them by example.
It will also liberate me from the past illusion that others still hold on too
I won't ever have to depend on someone else for help ever again for anything
I will be independent emotionally, mentally, spiritually, physically, and financially. Something, most people aren't able to do.
The honest answer though, is you can't get anywhere in life without someone's help. To say do it yourself is a fallacy and a lie. When I look back the last four years of my life I wouldn't have gotten here without the help of strangers that gave me a book, a website, a link, mentoring, training, wisdom, their time, and in some cases money, understanding, empathy, unconditional love, respect, and dignity.
I've learned to be like them by their example without expectations, but from the heart to help humanity. I've learned there are different personalities, mindsets, agenda's and motivation's. But most of all it's not about "You". It's about the world.
So to get their fast is to make an impact on society versus money. The money will follow naturally.
To become my full potential
To be different
While most have no faith in society or human nature, to be the example there is someone that makes a difference among many others who make it a better world.
To inspire others to move out of their dysfunctional families and reach their potential
You can't tell people what to do. They'll argue with you every time.
All you can do is show them by example.
It will also liberate me from the past illusion that others still hold on too
I won't ever have to depend on someone else for help ever again for anything
I will be independent emotionally, mentally, spiritually, physically, and financially. Something, most people aren't able to do.
The honest answer though, is you can't get anywhere in life without someone's help. To say do it yourself is a fallacy and a lie. When I look back the last four years of my life I wouldn't have gotten here without the help of strangers that gave me a book, a website, a link, mentoring, training, wisdom, their time, and in some cases money, understanding, empathy, unconditional love, respect, and dignity.
I've learned to be like them by their example without expectations, but from the heart to help humanity. I've learned there are different personalities, mindsets, agenda's and motivation's. But most of all it's not about "You". It's about the world.
So to get their fast is to make an impact on society versus money. The money will follow naturally.
Last edited:
User Power
Value/Post Ratio
170%
- Jul 28, 2013
- 1,278
- 2,172
Fast is just an expression of "right".
The faster you get there, the more "right" you are.
I think people want to be right because they hate the anxiety and mistreatment and feel that being right enough will magically stop them getting mistreated.
I've seen a few different reactions
- Desperation (these people rush for money then piss it all away)
- Sturdiness (these people get aggressive and twitchy, and build slowly, and relax as money slowly improves, until they finally accept an amount and grow as a person)
- Entitlement (these sometimes make a real business, but don't learn as much from it as they should have, and proceed to either fold and deal in their chips, or play big until they think of it as a sport)
- Whiney-ness (they sit around stagnating and complaining and attacking, and flattering, and never seem to go anywhere, but IF they do go somewhere, they are pretty well respected, but never take risks, never inspire)
So,
- don't whinge, take risks
- don't deal out, remember its not a game
- don't accept your lot, but accept the pain of moving slow
- don't take a dollar, that you won't respect
This is the path I followed
Because I'm not an idiot without integrity or backbone.
I do take my time to build a fortune. It is one of my staple principles. AND I cop SH#T for it.
You know why you will cop sh#t?
a) whingers look around for people to poke, (sadistic because of them fearing eventual failure they try to pretend they are already a success by putting people down)
b) entitled people need to vent their bitterness at not having been given the silver spoon, they see this in all people around them and so attack anything that seems justifiable
c) sturdy folk are good at putting burdens on other peoples shoulders, and ask for immediate fixes, even though in their head they are not ready for success
d) desperate a##hats want to flatter you and stab you in the back quietly, because they believe it is always done to them
You will cop sh#t because they want to be RIGHT, and the faster they can see you have results after what they say or do, the more they'll like you.
But success doesn't work like that, so take your time, even though they cr#p a lot.
The faster you get there, the more "right" you are.
I think people want to be right because they hate the anxiety and mistreatment and feel that being right enough will magically stop them getting mistreated.
I've seen a few different reactions
- Desperation (these people rush for money then piss it all away)
- Sturdiness (these people get aggressive and twitchy, and build slowly, and relax as money slowly improves, until they finally accept an amount and grow as a person)
- Entitlement (these sometimes make a real business, but don't learn as much from it as they should have, and proceed to either fold and deal in their chips, or play big until they think of it as a sport)
- Whiney-ness (they sit around stagnating and complaining and attacking, and flattering, and never seem to go anywhere, but IF they do go somewhere, they are pretty well respected, but never take risks, never inspire)
So,
- don't whinge, take risks
- don't deal out, remember its not a game
- don't accept your lot, but accept the pain of moving slow
- don't take a dollar, that you won't respect
This is the path I followed
Because I'm not an idiot without integrity or backbone.
I do take my time to build a fortune. It is one of my staple principles. AND I cop SH#T for it.
You know why you will cop sh#t?
a) whingers look around for people to poke, (sadistic because of them fearing eventual failure they try to pretend they are already a success by putting people down)
b) entitled people need to vent their bitterness at not having been given the silver spoon, they see this in all people around them and so attack anything that seems justifiable
c) sturdy folk are good at putting burdens on other peoples shoulders, and ask for immediate fixes, even though in their head they are not ready for success
d) desperate a##hats want to flatter you and stab you in the back quietly, because they believe it is always done to them
You will cop sh#t because they want to be RIGHT, and the faster they can see you have results after what they say or do, the more they'll like you.
But success doesn't work like that, so take your time, even though they cr#p a lot.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Well, isn't the point of the FASTlane, to get there FASTer?
People want to get there faster because they'll be able to enjoy the freedom having made it will bring. You'll kind of be doing the same thing, like starting other businesses, etc. But I don't aree it will be all the same...This time, you'll be able to travel any place in the world you want to a nice hotel, making life more enjoyable... you'll be eating great food all the time because you can afford it... if you workout, it will go better because you'll be able to afford a massage therapist a couple times a week or month... You won't have to worry about going to a restaurant with a girl you like because it will hurt your bank account...You'll pay off debt if you have any... You'll help your parents off if they need it, and you may not have 15 years to do that, etc,etc,etc
Now I'm not saying you should be thinking about getting there the fastest all the time, because that will be counterproductive and will hurt how you approach your business. But understanding people who want to get there fast is not that difficult.
People want to get there faster because they'll be able to enjoy the freedom having made it will bring. You'll kind of be doing the same thing, like starting other businesses, etc. But I don't aree it will be all the same...This time, you'll be able to travel any place in the world you want to a nice hotel, making life more enjoyable... you'll be eating great food all the time because you can afford it... if you workout, it will go better because you'll be able to afford a massage therapist a couple times a week or month... You won't have to worry about going to a restaurant with a girl you like because it will hurt your bank account...You'll pay off debt if you have any... You'll help your parents off if they need it, and you may not have 15 years to do that, etc,etc,etc
Now I'm not saying you should be thinking about getting there the fastest all the time, because that will be counterproductive and will hurt how you approach your business. But understanding people who want to get there fast is not that difficult.
It makes a big difference, if it means real wealth as defined by MJ (family, health & freedom). I must know, I am 54 and have not yet achieved true wealth.
Someone once told me (a CEO of a company) that I would never make it in business.
I'm neutral to most things but tell me I cant do something, i'll prove you wrong.
This is why I want Fastlane
I'm neutral to most things but tell me I cant do something, i'll prove you wrong.
This is why I want Fastlane
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
I agree, especially about those who make these ridiculous goals to earn X amount by X date. You know what I'm focused on? My first $5. I want ONE customer to use my current service for 30 days, and then make the conscious decision to sign up. That's all I want. That ONE customer. That will validate everything, and there's no stopping it after that.
This is so true. I am so anxious waiting for my inventory to reach Amazon. Like I literally can't sit still. I need to relax haha
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Personally I like the idea of learning. I actually crave it every day now. If I haven't spent at least learning something valuable for 30 minutes I label my day as wasted. It's been a major mind switch over the past year. Therefore, I apply getting there so fast as "I want to become the best I can, as quick as I can" and move on and learn something else and repeat.
Of course, sometimes time is what makes you the best at a certain topic and you cannot race to it. You have to learn to respect it and not cheat the system, just help it advance instead of creating friction. Eg: Read a post about AdWords for 30 minutes instead of watching a TV show or a YouTube video.
I think the main reason why everyone wants to get there so fast is fear. Fear that time will run out. Fear that there isn't enough time for them to fulfill their dreams. Fear that they won't succeed.
Of course, sometimes time is what makes you the best at a certain topic and you cannot race to it. You have to learn to respect it and not cheat the system, just help it advance instead of creating friction. Eg: Read a post about AdWords for 30 minutes instead of watching a TV show or a YouTube video.
I think the main reason why everyone wants to get there so fast is fear. Fear that time will run out. Fear that there isn't enough time for them to fulfill their dreams. Fear that they won't succeed.
Wow! This post really had me thinking, especially now that the year is closing out. thank you @biophase, I've always appreciated your style of writing and philosophy on business.
To the question; Why do I want to get there so fast?
to escape my current reality, the fact that I cannot buy a plane ticket to visit my incredible sister and her family in the U.S. and spend christmas with them is just one of the reasons, I want to be in the fastlane.
But to be honest, do I really need to have $1,000,000 yearly income by 30yrs to achieve this goal, am I craving so badly to improve my standard of living that it drives me to set unrealistic goals that stresses out my mind and my business. Ofcourse not.
To the question; Why do I want to get there so fast?
to escape my current reality, the fact that I cannot buy a plane ticket to visit my incredible sister and her family in the U.S. and spend christmas with them is just one of the reasons, I want to be in the fastlane.
But to be honest, do I really need to have $1,000,000 yearly income by 30yrs to achieve this goal, am I craving so badly to improve my standard of living that it drives me to set unrealistic goals that stresses out my mind and my business. Ofcourse not.
User Power
Value/Post Ratio
171%
- Jun 11, 2015
- 179
- 306
"There" for me isn't necesarily getting to my first million, its getting to a point where I have control over just how much I need to invest the majority of my time earning money.
There are things that I can do now that I simply won't have as much freedom to when I'm 30-35 whatever way I look at it, when kids and family will take more of a precedence. I also don't want to reach a point where I have a family and am 24/7 flat out. I do want to be able to be around my kids and not have my main downtime being work time.
Getting there by 30 isn't so much a deadline for me, but more of a want. As much as I'm enjoying the journey, 'needing to worry about keeping enough petrol in the tank' is more onerous than being able to just sit back and enjoy the ride.
There are things that I can do now that I simply won't have as much freedom to when I'm 30-35 whatever way I look at it, when kids and family will take more of a precedence. I also don't want to reach a point where I have a family and am 24/7 flat out. I do want to be able to be around my kids and not have my main downtime being work time.
Getting there by 30 isn't so much a deadline for me, but more of a want. As much as I'm enjoying the journey, 'needing to worry about keeping enough petrol in the tank' is more onerous than being able to just sit back and enjoy the ride.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
User Power
Value/Post Ratio
107%
- Sep 23, 2013
- 649
- 693
- 34
It's simple - Because where they are sucks. The journey when first starting isn't fun.
Prince Rain
New Contributor
User Power
Value/Post Ratio
55%
- Nov 29, 2012
- 11
- 6
The younger you get there the better of course. Being at your prime and having whole life still ahead of you. As time is primordial fuel which will not get back. Plus still looking good lol.
Last edited:
D
DeletedUser396
Guest
Eddie Guiliani: "See the king of the hill can only go down."
Arnold Schwarzenegger: "Or stay up."
Eddie Guiliani: "But the wolf on the hill is not as hungry as the wolf climbing up the hill."
Arnold Schwarzenegger: "That's true, he's not as hungry. But when he wants food, it's there."
Arnold Schwarzenegger: "Or stay up."
Eddie Guiliani: "But the wolf on the hill is not as hungry as the wolf climbing up the hill."
Arnold Schwarzenegger: "That's true, he's not as hungry. But when he wants food, it's there."
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Andy Black
Help people. Get paid. Help more people.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Speedway Pass
The journey IS the fun bit.
I used to love motorbike trips.
It wasn't about getting TO The South of France, it was about GETTING to The South of France.
EDIT: Great thread @biophase
I realized this last week. You gotta love the process. It's about the game... money's just how you keep score.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Fantastic thread @biophase thanks for starting it.
I created a formula for wealth that kind of describes what (in my experience and to me) wealth is all about. I think it breaks down to several elements that all added up make for a great life. We need a way to remove financial stress, enjoy freedom at our current level then enjoy the rest of our lives either enjoying or building those reserves or income streams. We need financial relief now and financial security for the future. These are two separate needs though often mixed into one goal and I believe this is where the dissonance comes in.
I think if we were to examine the path to wealth in order to find the fastest way to get there it would be sensible to start with a definition. I personally don't believe wealth is measured accurately by how much money you have but more relevantly by how far you are from financial stress. I start at financial stress because that's where our current pain is coming from and given that everyone's current financial pain is different from everyone's else we need to remove the number and replace it with a variable. I use "X".
So, let's say that X represents your current financial stress - your bills, payments and current expenses. When explaining this I start with $1,000 a week because the number is easy to work with and most people I've spoken to who are currently living low income or lower middle class lives agree that they could pay their current bills for $1,000 a week or if that's too much could upgrade to live a pretty decent normal middle class life for $1,000 a week. So $1,000 a week would equal "X".
This is just a starting point of course. Being able to pay your bills is not a wealthy life but if you could make $1,000 a week at least you'd be able to pay your bills and for another week financial stress is minimised but you probably would still have debt burdens and the worry of needing to do it all again next week so that's the start of your financial concerns taken care of for this week but what if you could earn that $1,000 in an easier way than having to trudge off to work every day? So the first wealth goal (in my way of thinking) would be to try to eliminate the horrible job from my life and try to make the money (and time) I need in a more "free" or at least more enjoyable way. So, if I could "earn a living" from home - even if my income remains the same and covers all my current bills - I'd have taken a big step towards freedom and wealth.
Obviously we need more than our expenses to live a wealthy life though so our next step/goal/aim is to increase that income and start to build cash reserves and net worth but here's what happens to a lot of people; as soon as they earn more money they start to live a better life by surrounding themselves with better housing, transportation, luxuries...etc and that's all cool and great fun but the problem is that now with the greater rent and payments they're financial stress levels have increased so they find themselves feeling "not much better". I think this is because they "drag" their stress along with them every time they make more money. This is why making more money doesn't always make people feel better. The "trick" to feeling wealthy is having more money than you need. How much you need to feel wealthy is debatable but your current essential financial expenses are not. They're an exact and measurable amount.
So how much does someone need to "feel" wealthy? In my experience and by running it past many people an easy number to remember is double. Twice your essential expenses in income is all you need to feel wealthy. Obviously it doesn't have to be a hard number like twice/double but what happens at about that level is the law of diminishing returns kicks in. Once you get far enough away from a danger (or stress) the danger diminishes to the point where any further distance doesn't feel much better.
So now, a good next goal would be to make twice your essential income or "2X" or ($2,000 a week). If you could get to a passive or enjoyable $2,000 a week but maintain only $1,000 a week in essential expenses you'd have another $1,000 a week to spend on fun and luxury and would be living a pretty good life. A much better life than nearly everyone on earth but of course that's just stage one for folks like us but here's the best part. Now you have $1,000 a week to do with whatever you like without it affecting your ability to maintain your current living arrangements. it's spare money. You can save it, blow it, invest it, give it, spend it, pay off debts with it...do anything you like because it's "spare".
Then, from that point you'd have the time and spare cash to start thinking of bigger and better things to do and eventually (if it's what we want to do) build large businesses that bring loads of great value and make us lots of fantastic spare money. So, wealth comes early but growth is forever. This is why this is such a great thread. @biophase makes the point that the journey is the best bit and so it is but it's even better if you "feel" wealthy as soon as possible and that won't come from achieving some magical popular number of dollars. Wealth needs a far more specific definition so we can all get to it as soon as possible and then we can grow from there to become whatever we need to be. The danger comes when people who are wealthy (using my definition) but don't know it or feel it because they're not "millionaires".
Don't misunderstand, I want to become a permanent "ultra-millionaire" just as much as anyone else and the more money we all have the more we can help other people around us. I have zero problem with making or wanting to make millions as fast as possible - the faster the better but given the formula I use to determine "wealth" or more accurately "financial freedom" at $2,000 a week or $100k per year is a lot easier to obtain and maintain than having a one-eyed goal of "millionaire" before even considering yourself wealthy. It happens much earlier than that. Not that finding a way to double your income is an easy thing - especially passively but as soon as you get there (presuming you know you've arrived) the rest of your wealth journey will be a fantastic ride and it'll never matter where you end up or how much money you have or end up having. Get wealthy ASAP then enjoy your growth.
I even came up with a simple wealth formula.
2X=F/H+P
Where:
X = Essential Expenses
F = Financial Freedom
H = Hobbies
P = Passions
So if you have at least twice as much income as you need for essential expenses you will feel financially free enough to enjoy your hobbies and pursue your passions be they personal or business growth. I call it "The 2X Method".
Now, most of us in here are pretty eager beavers and will probably grow pretty fast so what happens if one week you make $3,000? Personally, I'd spend $1,000 on essential expenses, spend as much as I needed of the next $1,000 on fun and luxuries and bank the rest. I like to bank excess cash so I can build a buffer for real emergencies (a bargain is not an emergency) and to eventually build up enough cash reserves in the bank to be able to live at "2X just on interest alone. Then, as I grow more (if that's what ends up happening) I'll just keep building my cash reserves and always living at "2X".
For example, let's say I make $10 million and decide to bank it at 5%. Super safe regular and dependable income of $10,000 a week (roughly and gross of course) and no financial stress. If I did manage to achieve $10,000 a week using the 2X formula I'd be able to comfortably spend $5,000 a week on essential expenses as well as another $5,000 a week for fun and luxuries. How awesome a life would that be?! But let's say you lose half in tax - fine, now I have $5,000 a week which I split into half and always at all times keep my essential expenses (which bring us all that financial stress we all hate so much) and I'd still have $2,500 for expenses and $2,500 a week for fun and luxury.
What about debt? I believe it's not the debt that stresses us out so much as the payments. Yeah, it's a grown having a debt but if you want to pay it off you can do it with your extra cash as doing that will be both fun and a luxury. So, no matter how much you make, if you spend more than half your income on essential expenses you'll always feel financial stress. Conversely, even if you don't make much, as long as you can try to keep your essential expenses down to half your income you'll always feel "kind of wealthy" - especially if you can do it passively. I know this for a fact because I've lived my life like this for the last 5 years knowingly and probably another 5 years before that without fully appreciating it.
I explained this to my butcher some months ago and he was stunned to realise that he was already wealthy because he was making about 3X. I draw that little formula out on the butcher's paper right there in the shop and he was stunned. It's a simple way to get wealthy fast while allowing for and encouraging growth while having fun and enjoying a little luxury along the way.
So it's not the journey to wealth that's the best part. It's the journey of growth while maintaining wealth that's the really fun part. Achieve relative wealth first then use that power to propel yourself to anywhere you want to go and if you use the "2X method" you'll always be wealthy no matter how much money you make. Oh, and here's the best part about that little stash of income generating bank deposits...if you build the right financial structure you can put that money into a trust, you're the main beneficiary while alive and receive the (for example) $2,000 a week but if you die the trust deed directs the income to the next listed beneficiary i.e. your kids, then their kids...etc. You do the big work once, set up the "family income" and become the financial hero for generations to come.
So while "wealthy" may come earlier than expected by using my 2X formula, there is still much work and growth to be done. You want to make sure you leave enough so that inflation makes it last at least a few generations. So in a way we can eat our cake (achieve rapid wealth) and have it to (build massive wealth as a legacy for others). All we have to do is shift our focus a little and accept a few new definitions.
I created a formula for wealth that kind of describes what (in my experience and to me) wealth is all about. I think it breaks down to several elements that all added up make for a great life. We need a way to remove financial stress, enjoy freedom at our current level then enjoy the rest of our lives either enjoying or building those reserves or income streams. We need financial relief now and financial security for the future. These are two separate needs though often mixed into one goal and I believe this is where the dissonance comes in.
I think if we were to examine the path to wealth in order to find the fastest way to get there it would be sensible to start with a definition. I personally don't believe wealth is measured accurately by how much money you have but more relevantly by how far you are from financial stress. I start at financial stress because that's where our current pain is coming from and given that everyone's current financial pain is different from everyone's else we need to remove the number and replace it with a variable. I use "X".
So, let's say that X represents your current financial stress - your bills, payments and current expenses. When explaining this I start with $1,000 a week because the number is easy to work with and most people I've spoken to who are currently living low income or lower middle class lives agree that they could pay their current bills for $1,000 a week or if that's too much could upgrade to live a pretty decent normal middle class life for $1,000 a week. So $1,000 a week would equal "X".
This is just a starting point of course. Being able to pay your bills is not a wealthy life but if you could make $1,000 a week at least you'd be able to pay your bills and for another week financial stress is minimised but you probably would still have debt burdens and the worry of needing to do it all again next week so that's the start of your financial concerns taken care of for this week but what if you could earn that $1,000 in an easier way than having to trudge off to work every day? So the first wealth goal (in my way of thinking) would be to try to eliminate the horrible job from my life and try to make the money (and time) I need in a more "free" or at least more enjoyable way. So, if I could "earn a living" from home - even if my income remains the same and covers all my current bills - I'd have taken a big step towards freedom and wealth.
Obviously we need more than our expenses to live a wealthy life though so our next step/goal/aim is to increase that income and start to build cash reserves and net worth but here's what happens to a lot of people; as soon as they earn more money they start to live a better life by surrounding themselves with better housing, transportation, luxuries...etc and that's all cool and great fun but the problem is that now with the greater rent and payments they're financial stress levels have increased so they find themselves feeling "not much better". I think this is because they "drag" their stress along with them every time they make more money. This is why making more money doesn't always make people feel better. The "trick" to feeling wealthy is having more money than you need. How much you need to feel wealthy is debatable but your current essential financial expenses are not. They're an exact and measurable amount.
So how much does someone need to "feel" wealthy? In my experience and by running it past many people an easy number to remember is double. Twice your essential expenses in income is all you need to feel wealthy. Obviously it doesn't have to be a hard number like twice/double but what happens at about that level is the law of diminishing returns kicks in. Once you get far enough away from a danger (or stress) the danger diminishes to the point where any further distance doesn't feel much better.
So now, a good next goal would be to make twice your essential income or "2X" or ($2,000 a week). If you could get to a passive or enjoyable $2,000 a week but maintain only $1,000 a week in essential expenses you'd have another $1,000 a week to spend on fun and luxury and would be living a pretty good life. A much better life than nearly everyone on earth but of course that's just stage one for folks like us but here's the best part. Now you have $1,000 a week to do with whatever you like without it affecting your ability to maintain your current living arrangements. it's spare money. You can save it, blow it, invest it, give it, spend it, pay off debts with it...do anything you like because it's "spare".
Then, from that point you'd have the time and spare cash to start thinking of bigger and better things to do and eventually (if it's what we want to do) build large businesses that bring loads of great value and make us lots of fantastic spare money. So, wealth comes early but growth is forever. This is why this is such a great thread. @biophase makes the point that the journey is the best bit and so it is but it's even better if you "feel" wealthy as soon as possible and that won't come from achieving some magical popular number of dollars. Wealth needs a far more specific definition so we can all get to it as soon as possible and then we can grow from there to become whatever we need to be. The danger comes when people who are wealthy (using my definition) but don't know it or feel it because they're not "millionaires".
Don't misunderstand, I want to become a permanent "ultra-millionaire" just as much as anyone else and the more money we all have the more we can help other people around us. I have zero problem with making or wanting to make millions as fast as possible - the faster the better but given the formula I use to determine "wealth" or more accurately "financial freedom" at $2,000 a week or $100k per year is a lot easier to obtain and maintain than having a one-eyed goal of "millionaire" before even considering yourself wealthy. It happens much earlier than that. Not that finding a way to double your income is an easy thing - especially passively but as soon as you get there (presuming you know you've arrived) the rest of your wealth journey will be a fantastic ride and it'll never matter where you end up or how much money you have or end up having. Get wealthy ASAP then enjoy your growth.
I even came up with a simple wealth formula.
2X=F/H+P
Where:
X = Essential Expenses
F = Financial Freedom
H = Hobbies
P = Passions
So if you have at least twice as much income as you need for essential expenses you will feel financially free enough to enjoy your hobbies and pursue your passions be they personal or business growth. I call it "The 2X Method".
Now, most of us in here are pretty eager beavers and will probably grow pretty fast so what happens if one week you make $3,000? Personally, I'd spend $1,000 on essential expenses, spend as much as I needed of the next $1,000 on fun and luxuries and bank the rest. I like to bank excess cash so I can build a buffer for real emergencies (a bargain is not an emergency) and to eventually build up enough cash reserves in the bank to be able to live at "2X just on interest alone. Then, as I grow more (if that's what ends up happening) I'll just keep building my cash reserves and always living at "2X".
For example, let's say I make $10 million and decide to bank it at 5%. Super safe regular and dependable income of $10,000 a week (roughly and gross of course) and no financial stress. If I did manage to achieve $10,000 a week using the 2X formula I'd be able to comfortably spend $5,000 a week on essential expenses as well as another $5,000 a week for fun and luxuries. How awesome a life would that be?! But let's say you lose half in tax - fine, now I have $5,000 a week which I split into half and always at all times keep my essential expenses (which bring us all that financial stress we all hate so much) and I'd still have $2,500 for expenses and $2,500 a week for fun and luxury.
What about debt? I believe it's not the debt that stresses us out so much as the payments. Yeah, it's a grown having a debt but if you want to pay it off you can do it with your extra cash as doing that will be both fun and a luxury. So, no matter how much you make, if you spend more than half your income on essential expenses you'll always feel financial stress. Conversely, even if you don't make much, as long as you can try to keep your essential expenses down to half your income you'll always feel "kind of wealthy" - especially if you can do it passively. I know this for a fact because I've lived my life like this for the last 5 years knowingly and probably another 5 years before that without fully appreciating it.
I explained this to my butcher some months ago and he was stunned to realise that he was already wealthy because he was making about 3X. I draw that little formula out on the butcher's paper right there in the shop and he was stunned. It's a simple way to get wealthy fast while allowing for and encouraging growth while having fun and enjoying a little luxury along the way.
So it's not the journey to wealth that's the best part. It's the journey of growth while maintaining wealth that's the really fun part. Achieve relative wealth first then use that power to propel yourself to anywhere you want to go and if you use the "2X method" you'll always be wealthy no matter how much money you make. Oh, and here's the best part about that little stash of income generating bank deposits...if you build the right financial structure you can put that money into a trust, you're the main beneficiary while alive and receive the (for example) $2,000 a week but if you die the trust deed directs the income to the next listed beneficiary i.e. your kids, then their kids...etc. You do the big work once, set up the "family income" and become the financial hero for generations to come.
So while "wealthy" may come earlier than expected by using my 2X formula, there is still much work and growth to be done. You want to make sure you leave enough so that inflation makes it last at least a few generations. So in a way we can eat our cake (achieve rapid wealth) and have it to (build massive wealth as a legacy for others). All we have to do is shift our focus a little and accept a few new definitions.
I'm just working hard enough to get out of the situation I'm in. I don't know how long it'll take, and money may or may not be an indicator of my happiness, but I'm not stopping until I get there.
Andy Black
Help people. Get paid. Help more people.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Speedway Pass
Bump
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Iwokeup
Aut viam invenium aut faciam
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Good bump.
I've been having this conversation with myself EVERY. SINGLE. DAY.
As in, what's the balance between speed for speed's sake, and executing well at a slower pace?
For me it's not panic or anything....but rather a sense that I want to achieve that next level of security as quickly as possible. But I've found that when I choose balls-to-the-wall speed over rapid but well executed daily progress, the wheels fall off in other areas. And for the record, I'm married with children and I love my family, and I refuse, refuse to leave them behind.
Which in turns is both frustrating and exhilarating as my family (especially my sons) get to see Dad being "Lord Business"
and incorporating those lessons into their own lives (one son: wants to start importing goods from China and the six year old is all about the lemonade stand with cross and up sells this summer).
The other lesson? It takes TIME to learn some things, and I'm kind of dumb that way...I only learn by doing and (sometimes) F-ing up. Hah!
Anyway, thanks for letting me share.
I've been having this conversation with myself EVERY. SINGLE. DAY.
As in, what's the balance between speed for speed's sake, and executing well at a slower pace?
For me it's not panic or anything....but rather a sense that I want to achieve that next level of security as quickly as possible. But I've found that when I choose balls-to-the-wall speed over rapid but well executed daily progress, the wheels fall off in other areas. And for the record, I'm married with children and I love my family, and I refuse, refuse to leave them behind.
Which in turns is both frustrating and exhilarating as my family (especially my sons) get to see Dad being "Lord Business"
and incorporating those lessons into their own lives (one son: wants to start importing goods from China and the six year old is all about the lemonade stand with cross and up sells this summer).
The other lesson? It takes TIME to learn some things, and I'm kind of dumb that way...I only learn by doing and (sometimes) F-ing up. Hah!
Anyway, thanks for letting me share.
Oh SHIT, a doctor said that.
Sponsored Resources: Jumpstart Your Fastlane
- MJ's New Book/Novel Is Here... The Great Rat Race Escape!
- Not sure how to start? This free book will teach you how to build a successful web design business
- From a Napkin Sketch to Reality, Get your Product Done! (Or anything!) #noobfriendly!
- LLC and Corp Formation and Registered Agent Service in all 50 States, Virtual Mailbox, Remote Online Notary Services
- Growing Your Business in The New World Economy (How-To + A Challenge)
- You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program
- How to Make Real Progress with High Profit Skills in 2022...
- YouTube Video Editing, Long, Shorts, IG Reels, TikToks, Superspreader Media Gets it Done!
- Grow Your Business In The Next 30 Days With Our Social Media Agency's Done For You Service
Post New Topic
Must Read Books...
Download FREE and share!
Download
Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore
Latest Posts
New Topics
-
-
EXECUTION: The Journey To Save Myself From Bankruptcy, Correct My Wrongs, and To Financial Freedom. (Zack's Personal Execution Thread).EXECUTION- Started by ZackerySprague
- Replies: 0
-
-
-
Fastlane Insiders
View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!
Join Fastlane Insiders.