Rich Dad Poor Dad | S5 – E48 | Lesson VIII | Steps to Develop Your Powers #6 Use Assets to Buy Luxuries

A friend’s child has been developing a nasty habit of burning a hole in his pocket. Just 16, he wanted his own car. The excuse: “All his friends’ parents gave their kids cars.” The child wanted to go into his savings and use it for a down payment. That was when his father called me and then came to see me.

“Do you think I should let him do it, or should I just buy him a car?”

I answered, “It might relieve the pressure in the short term, but what have you taught him in the long term? Can you use this desire to own a car and inspire your son to learn something?” Suddenly the lights went on, and he hurried home.

Two months later I ran into my friend again. “Does your son have his new car?” I asked.

“No, he doesn’t. But I gave him $3,000 for the car. I told him to use my money instead of his college money.”

“Well, that’s generous of you,” I said.
“Not really. The money came with a hitch.”

As I said earlier, if a person cannot master the power of self- discipline, it is best not to try to get rich. I say this because, although the process of developing cash flow from an asset column is easy in theory, what’s hard is the mental fortitude to direct money to the correct use. Due to external temptations, it is much easier in today’s consumer world to simply blow money out the expense column. With weak mental fortitude, that money flows into the paths of
least resistance. That is the cause of poverty and financial struggle.

Rich Dad Poor Dad

Darren Hardy: Chapter 4 – Momentum

Harnessing The Power of The Big Mo

It’s like when in the morning when I wake up on fire, do a podcast, drop clothes off at the dry-cleaning, do my Instagram posts, and a few other things.  It’s all about momentum.  You guys have experienced the Big Mo one way or another.  It could be during your workouts, commute to work (responding to tons of emails), or even using “down-time” as “power-time.”

Isaac Newton’s Law of Inertia sums it up.  Couch potatoes stay couch potatoes.  People like Gary Vee, who’s always on the run, stays on the run.  It’s all about getting in that successful rhythm.

The same thing happens when a rocket is launched off the launchpad.  Recently I was watched the beloved Elon Musk shoot off a rocket into orbit on Space X (YouTube).  At first, it was ridiculously slow.  I said, “that’s how fast rockets are?”  However, after a few minutes, that bad boy was traveling at an astounding rate per second.  The hardest part was getting off the ground.  Kind of like a plane taking off.  At first it’s a little bit slow, but after about 800 meters, it’s going pretty fast until the pilot lifts the wheel and up-up-and away!

You’re going to need a lot of energy to break the initial inertia – but once you get going, watch out!

Ever wonder why successful people tend to get more successful… the rich get richer… the happy get happier… the lucky get luckier.

“But momentum works on both sides of the equation—it can work for you or against you. Since the Compound Effect is always working, negative habits, when left unchecked, can build up steam and send you into a tailspin of “unlucky” circumstances and consequences.” – Darren Hardy

Like when you initially get acquainted with the “ugly group” at school.  The negative habits, plus the consequences, will come pouring in.  This is the law and this is how it works.  Also, it’s hard to break out of it.  You can’t just “jump-out” a gang without severe consequences.

How do you get “Big Mo” to pay you a visit?

1. Making new choices based on your goals and core values
2. Putting those choices to work through new positive behaviors
3. Repeating those healthy actions long enough to establish new habits
4. Building routines and rhythms into your daily disciplines
5. Staying consistent over a long enough period of time”

When the iPod was initially launched in 2001 (I had no idea!), they had a 30% revenue growth.  However, the next year it went to -33%.  2003 was still in the negative but in 2004, and when I started to see it on TV shows on MTV, it went into a 18% surplus.  60%……70%.  BOOM!  This is momentum.