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June 28 - July 4, 2023
no one shrinks their way to wealth.
no one shrinks their way to wealth.
The scarcity mindset says, “I can’t afford it.” The abundance mindset asks, “How can I afford it?”
The scarcity mindset says, “I can’t afford it.” The abundance mindset asks, “How can I afford it?”
Your ability to reduce your spending is finite and has limits. You can only reduce so much before it’s impossible to reduce more. But production is infinite. There’s no limit to the amount of value you can produce for others, thus the amount of wealth you can create for yourself.
Your ability to reduce your spending is finite and has limits. You can only reduce so much before it’s impossible to reduce more. But production is infinite. There’s no limit to the amount of value you can produce for others, thus the amount of wealth you can create for yourself.
Those who budget tend to spend a lot of their time thinking of how to cut back and conserve rather than to focus on problem solving or generating income.
Those who budget tend to spend a lot of their time thinking of how to cut back and conserve rather than to focus on problem solving or generating income.
Creating value builds wealth.
Creating value builds wealth.
If you commit to a value-creation mindset, surround yourself with others who share abundantly in ideas and innovation, and seek to produce more than you consume, you become part of the “Producer Paradigm.”
If you commit to a value-creation mindset, surround yourself with others who share abundantly in ideas and innovation, and seek to produce more than you consume, you become part of the “Producer Paradigm.”
Being a producer empowers, enlightens, and opens your eyes to a wealth of opportunities.
Being a producer empowers, enlightens, and opens your eyes to a wealth of opportunities.
Money is one of many forms of currency. Other measurements of wealth include recreation, relaxation, and rejuvenation (e.g. spending time with family, gardening, working out, etc.).
Money is one of many forms of currency. Other measurements of wealth include recreation, relaxation, and rejuvenation (e.g. spending time with family, gardening, working out, etc.).
Rather than applying that ingenuity on cutting back, you can apply it to making more. Spend time with those who manifest Producer energy and vision. Continually look for problems to solve and people to serve and support. Continue to think productively and create value, and your satisfaction and wealth will follow.
Rather than applying that ingenuity on cutting back, you can apply it to making more. Spend time with those who manifest Producer energy and vision. Continually look for problems to solve and people to serve and support. Continue to think productively and create value, and your satisfaction and wealth will follow.
Budgeting restricts, while producing value expands—even if it means spending today.
Budgeting restricts, while producing value expands—even if it means spending today.
Consumers think in terms of scaling back and cutting costs. Producers ask questions like, “What would hiring a new associate in my business or delegating things that drain my energy free me up to do?” Yes, you’d be spending more, but you’d also be buying time. What else could you do with that time?
Consumers think in terms of scaling back and cutting costs. Producers ask questions like, “What would hiring a new associate in my business or delegating things that drain my energy free me up to do?” Yes, you’d be spending more, but you’d also be buying time. What else could you do with that time?
In fact, the next time you feel stuck, frustrated, or depressed, call someone you know whom you can deliver value to. See where it takes you. Simply speaking with someone who relies on the service or expertise you provide automatically shifts your mindset into the Producer Paradigm because you feel valued.
If you shift your mindset toward abundance, you approach finances by thinking about efficiency rather than restriction.
Shifting into the Producer Paradigm starts with simply being mindful about your money—how much you’re making, how you’re spending.
1. Pay yourself first.
2. Be accountable.
3. Have the right tools.
4. Be honest about your financial situation.
5. Cultivate strong relationships.
6. Ask yourself better questions.
budgeter will wake up and say, “There’s never enough money. I don’t have the resources.” A Producer, however, will ask, “What would it take for me to be able to create more value in the world, and therefore, get paid? What are the things I’m uniquely gifted or equipped with? Who do I know? What can I do to better myself and others?”
No one stuck in a budgeting game and mindset can find true financial freedom.
On one hand, those who focus on price alone—spending the majority of their time looking for deals and ways to save—get stuck in reduction and scarcity thinking.
Financially free people look at value first, cost second, and price third.
• How can I add value?
Like all assets, constantly improve yourself to prevent stagnation. The more you invest in yourself, the wealthier you become.
“The richest people in the world build networks; everyone else is trained to look for work.” - Robert Kiyosaki
It is time to scrub the phrase “pick your brain” from your conversations. This implies a withdraw of Mental Capital. Think instead of how you can add value, build a relationship and therefore learn as you spend time with the individual. Think deposit first.
Rather than budget and cut back, instead invest in your knowledge and develop your relationships.
Don’t budget your way broke. Invest in yourself.
If you want to budget, budget your time, not your money.
To free up cash, forget about your daily coffee or cable bill. Instead, analyze your taxes, loans, insurance, and investments.
Use a Corporation to Get Tax Advantages If you haven’t incorporated with a legal entity, such as an LLC, S Corp, or C Corp, you’re likely overpaying on taxes. Business owners get more tax advantages than employees.
Home Office Deduction: If you make phone calls or use a computer, you can create a dedicated workspace in your home and deduct it as a home office expense. • Phone, Internet, and Utilities: With a home office, you can also deduct your phone, fax, and internet expenses associated with your business, as well as a percentage of utilities. • Car: Any time you drive for business purposes you can deduct your expenses, including gas, mileage, and service expenses. Having a home office may even justify writing off a higher percentage of your vehicle. • Travel: You can deduct any travel for business
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“Don’t tell me what your priorities are. Show me where you spend your money and I’ll tell you what they are.” - James W. Frick
value first, cost second and price is only a consideration, not THE consideration.
If you kill productive expenses, you eliminate your opportunity for leverage and growth.
Once you understand the four types of expenses, it’s time to classify your spending. Look at your bank statements for the past thirty days. You will want to categorize your expenses into one of the four quadrants, as outlined in illustration.
If you’re merely focused on cutting expenses, you less likely to invest in your education.
