RICH DAD POOR DAD | S5 – E41 | LESSON VII | Overcoming Cynicism

Overcoming Cynicism

“The sky is falling! The sky is falling!” Most of us know the story of Chicken Little who ran around warning the barnyard of impending doom. We all know people who are that way. There’s a Chicken Little inside each of us.

As I stated earlier, the cynic is really a little chicken. We all get a little chicken when fear and doubt cloud our thoughts. All of us have doubts: “I’m not smart.” “I’m not good enough.” “So-and-so is better than me.” Our doubts often paralyze us. We play the “What if?” game. “What if the economy crashes right after I invest?” “What if I lose control and I can’t pay the money back?” “What if things don’t go as I planned?” Or we have friends or loved ones who will remind us of our shortcomings. They often say, “What makes you think you can do that?” “If it’s such a good idea, how come someone else hasn’t done it?” “That will never work. You don’t know what you’re talking about.” These words of doubt often get so loud that we fail to act. A horrible feeling builds in our stomach. Sometimes we can’t sleep. We fail to move forward. So we stay with what is safe, and opportunities pass us by. We watch life passing by as we sit immobilized with a cold knot in our body. We have all felt this at one time in our lives, some more than others.

When violence breaks out in a city, gun sales go up all over the country. A person dies from rare hamburger meat in the state of Washington, and the Arizona Health Department orders restaurants to have all beef cooked well-done. A drug company runs a TV commercial in February showing people catching the flu. Colds go up as well as sales of cold medicine.

Most people are poor because, when it comes to investing, the world is filled with Chicken Littles running around yelling, “The sky
is falling! The sky is falling!” And Chicken Littles are effective, because every one of us is a little chicken. It often takes great courage to not
let rumors and talk of doom and gloom affect your doubts and fears. But a savvy investor knows that the seemingly worst of times is actually the best of times to make money. When everyone else is too afraid to act, they pull the trigger and are rewarded.

Rich Dad Poor Dad | S5 – E20 |Lesson III | Mind Your Own Business

In 1974, Ray Kroc, the founder of McDonald’s, was asked to speak to the MBA class at the University of Texas at Austin. A friend of mine was a student in that MBA class. After a powerful and inspiring talk, the class adjourned and the students asked Ray if he would join them at their favorite hangout to have a few beers. Ray graciously accepted.

“What business am I in?” Ray asked, once the group had all their beers in hand.

“Everyone laughed,” my friend said. “Most of the MBA students thought Ray was just fooling around.”

No one answered, so Ray asked again, “What business do you think I’m in?”

The students laughed again, and finally one brave soul yelled out, “Ray, who in the world doesn’t know that you’re in the hamburger business?”

Ray chuckled. “That’s what I thought you would say.” He paused and then quickly added, “Ladies and gentlemen, I’m not in the hamburger business. My business is real estate.”

Rich Dad Poor Dad

As my friend tells the story, Ray spent a good amount of time explaining his viewpoint. In his business plan, Ray knew that the primary business focus was to sell hamburger franchises, but what he never lost sight of was the location of each franchise. He knew that the land and its location were the most significant factors in the success of each franchise. Basically, the person who bought the franchise was also buying the real estate under the franchise for Ray Kroc’s organization.

Today, McDonald’s is the largest single owner of real estate in the world, owning even more than the Catholic church. McDonald’s owns some of the most valuable intersections and street corners in America and around the globe.

My friend considers this as one of the most important lessons in his life. Today he owns car washes, but his business is the real estate under those car washes.

The previous chapter presented diagrams illustrating that most people work for everyone but themselves. They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage.

When I was a young boy, we did not have a McDonald’s nearby. Yet my rich dad was responsible for teaching Mike and me the
same lesson that Ray Kroc talked about at the University of Texas.
It is secret number three of the rich. That secret is: Mind your own business. Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts.

Our current educational system focuses on preparing today’s youth to get good jobs by developing scholastic skills. Their lives will revolve around their wages or, as described earlier, their income column. Many will study further to become engineers, scientists, cooks, police officers, artists, writers, and so on. These professional skills allow them to enter the workforce and work for money.

Rich Dad Poor Dad

Stephen Covey’s “Smart Trust” Matrix

We’re back with another blog, although it’s been a long time making personal development blogs! Much apologies, but here’s an excellent Matrix, along with my explanation, in the podcast down below.

Learning how to extend “Smart Trust” is a function of two factors — propensity to trust and analysis — which are juxtaposed on the matrix.

“Propensity to Trust” is primarily a matter of the heart. It’s the tendency, inclination, or predisposition to believe that people are worth of trust and a desire to extend it to them freely.

The degree to which you have this tendency may be due to your inherent personality, to the way important people in your life have (or have not) trusted you, or to your own experience (good or bad) in trusting others — or, most likely, to a combination of these factors.

“Analysis” is primarily a matter of the mind. It’s the ability to analyze, evaluate, theorize, consider implications and possibilities, and come up with logical decisions and solutions. Again, the degree to which you have “strong analysis” may be due to a variety or combination of factors, including your natural gifts or abilities, your education and the way you think, your style, and/or your life experience.

As you think about these two factors — propensity to trust and analysis — how would you rate yourself on each? Do you typically tend to trust people easily, or do you tend to be suspicious and hold things close? Do you tend to analyze, theorize, and ponder over thing — or do you give problems your cursory attention and then move on?

To what degree do you think your present tendencies add to or reduce your ability to extend “Smart Trust?”

Podcast

High Trust Organization Dividends – Increased Value, Accelerated Growth

Oh, yes! We’re getting into high trust organization dividends now. Remember, when you add up the cost of all these taxes that are imposed in low-trust organizations, it’s apparent what the connection is between low trust, low speed and high cost.

Increased Value

The second dimension is customer value. As a result of the last five dividends, high-trust organizations are consistently able to create and deliver more value to their customers. This customer value, in turn, creates more value for other key stakeholders.

Stephen Covey

So, I thought about this recently with the last company I was working for. Remember I told you that it was a complete mess. The customers were the stakeholders. If it wasn’t for one customer, that place would be beyond quiet because she was able to bring friends in to study with her.

Nonetheless, after they relieved me, it was clear to the stakeholders that they weren’t cared about. The management had romanticized about what they wanted and not what the stakeholders wanted. This will doom your business if you let this happen. Failure will come so fast that you won’t know until your doors are locked up.

Accelerated Growth

High-trust companies outperform low-trust companies, not only in shareholder value, but also in sales and profits. Research clearly shows that customers buy more, buy more frequently, refer more, and stay longer with companies and people they trust. Plus, these companies actually outperform with less cost. It’s “Jim,” the donut and coffee guy writ large. The net result is not just accelerated growth, but accelerated profitable growth. As Vanguard Investments CEO John Brennan said, “Trust is our number one asset…..as customers learn to trust us, they generate surprising amount of growth.”

Stephen Covey

Customers buy more, buy more frequently, refer more, stay longer with companies and people they trust. That reminds me of one of my students. They’ve been with a language center for three years, so obviously the retainment is apparent, but now they’re going to start losing customers because of the bureaucracy, politics and not giving a damn about stakeholders.

Arsenio’s ESL Podcast: Season 3 – Developing Speaking – Negotiating & Collaborating

I’m bringing negotiating and speaking back for one week! Maybe two. Just for these last couple of weeks. Upper Intermediate will surely have it, so stay tuned for that! Here’s a speaking bank and talking about different jobs in the world.

1. What do you think?

2. What do you think about…..

3. What about you?

4. Do you agree?

5. Don’t you think so?

 

Yes, I agree.

Yes, you’re right.

Sure.

Ok.

I think you’re right.

That’s true.

I agree with you.

I see what you mean.

That’s a good idea.

 

I see what you mean, but…

I suppose so, but….

I’m not sure.

Maybe, but…

I agree up to a point, but…..

Here are some jobs. I want you to grab a friend and talk to each other about how these jobs POSSIBLY improve/not help society.

Scientist

Journalist

Architech

Entrepreneur (career)

Firefighters