mindset | The Caleb Barney Collection

Getting your money to work for you

We “wanted to have our money work for us, rather than spend our lives physically working for money.” – Robert Kiyosaki in Cashflow Quadrant

When you are an employee working for someone or a corporation, you have the least amount of freedom. You are told how much vacation you get, what benefits you may or may not have, how many hours to work, and how to do your job.

When you are self-employed, you own your job. You have a little more freedom with the choices you make, but if you stop working (if you go on vacation, get sick, etc), the money stops coming in.

When you are a business owner, you have systems and processes in place so employees can continue working without you being present. You are still working, but rather than being the bottleneck where how much production or revenue is created depends on you and your time constraints, you could literally leave for a month or more and come back to a still-functioning business. Or, as Michael Gerber says in The E-Myth, instead of working in your business, you are working on your business. Instead of focusing on the day-to-day tasks, you’re focusing on big picture goals to move your business/company forward. Do you think Jeff Bezos packages the items you ordered on Amazon and ships it to you (the employee) or does he focus on new acquisitions to grow his business?

Lastly, you can be an investor. A professional investor gets their money to work for them, providing passive income. The greater amount of income your investments make, the longer you can afford to not work if you don’t want to. The money is working in your place. Eventually, if you can get your income from investments to cover all of your expenses, you technically won’t have to work another day in your life (barring something catastrophic happening to your investment).

Over the next couple of days, I plan to lay out my background for where I’ve been, where I am now, and what my goals are for the future (regarding obtaining financial freedom). I encourage you to comment in the section below to share any information about yourself, your plans, or what you think of my plans.

Action —> Competence —> Confidence —> Success

Taking action will help increase your competence, which will give you more confidence. The more confident you are, the more likely others will be drawn to you, increasing your likelihood of success.

If you want to be successful in anything, it all starts with taking action. Whatever you are afraid of, that’s probably what you need to do. Charge towards your fears or what is difficult for you. Chances are, it’s difficult for others as well, and when you’re willing to do what others aren’t, you’ll see results that they won’t get. Take action. Ryan Holiday paraphrases a famous Marcus Aurelius quote (shown below) with the title of his best-selling book, “The obstacle is the way.”

The obstacle is the way — “The impediment to action advances action. What stands in the way becomes the way.” – Marcus Aurelius

If you’re afraid of prospecting for new clients, that’s probably because you are uncomfortable doing it and you need to do it. You have to take action to actually get better at it. The more you practice something, the more competent you’ll become, and the more competent you become, the more confidence you will earn.

It will be difficult to make the decision to deliberately put yourself in a position where you might fail, but you must do this. It is the only way to get better quickly. You can read or talk with others who have done it before you all you want, but eventually YOU need to take action. The sooner you realize this and start doing it, the quicker you can achieve your dreams.

Strategy is the determining factor for dreams and nightmares

“Without hard work, a great strategy remains a dream. Without a great strategy, hard work becomes a nightmare.” – James Clear

Nothing will get done without someone rolling up their sleeves and making it happen.

Reading about ideas isn’t very difficult, although not nearly as many people read as they should.

Thinking about ideas is a little harder, as you have to give yourself time to think and permission to think of ideas that may fail on the first several iterations.

Actually working to complete an idea is the hardest. A lot of people read about ideas or talk about ideas, but never act on them. Taking action is the hardest of the three and usually requires the most effort.

But, while I agree that working hard will help take you far, what if you’re working towards the wrong thing?

If you don’t have the right strategy, your work ethic can only take you so far. You are only as good as your strategy.

For example, say you want to build a business. You can work really hard at building your website, making a logo, looking into forming an LLC, and interviewing an assistant, but if you haven’t come up with a strategy to find customers, you’re going to fail. In this scenario, you can easily put in 40, 60, or even 80 hours per week and not see any results that are helping to keep your startup in business.

Figure out what is important to you (what your goals are) and then come up with a relevant strategy to help support those goals. Otherwise all of your hard work will become a nightmare.

Pain is subjective: How to get comfortable with the uncomfortable

“The reason his fights look so easy is because his training was so hard.” – Paraphrased from Joe Rogan when he was talking about Floyd Mayweather.

Train to make the uncomfortable not phase you. If that is your baseline and you’re used to facing obstacles, it will become your new normal. But to someone who hasn’t faced those same difficulties, when they suddenly are thrown into a tough situation, it will be harder for them mentally, physically, and emotionally.

How do you get comfortable with the uncomfortable?

A huge part of it is mental fitness. Mental fitness is more than just being mentally tough. Being tough (or being able to endure) is just one aspect of your mental fitness, but being able to understand concepts, to think outside of the box, to have a good memory. and to be flexible in a changing environment all contribute to being mentally fit.

The other part (the “easier” part) is physical fitness. Again, you want to be physically tough and able to hold up to pressure, but physics fitness also includes strength, endurance, flexibility, mobility, balance, coordination, having a healthy heart and joints, etc.

If you are mentally and physically fit, it will be easier to overcome challenging situations. So what are some things you can do to become fit?

Train your body consistently to lift heavy weights for low reps, to lift light weights for high reps, to sprint short distances at fast speeds, to walk/run/bike long distances at slow speeds, to occasionally work with very little sleep, to occasionally work with very little to eat, to think fast and make quick decisions, to analyze and think slowly, to deal with the heat, to deal with the cold, to read/write/draw, etc. These are just a few examples…

There are so many ways you can train your body and mind at the same time. Do a difficult task daily, one that pushes your existing comfort levels, because the more difficult you make your training, the easier your life will be. If your training is harder than the actual event, you’ll remain strong physically and, more importantly, you’ll remain strong mentally and emotionally. This will give you the edge you need over your competition.

Pain is subjective – it changes based on the perspective of who is going through the experience. Running a mile at a sub 6-minute clip is easy for those who do it consistently, but for the untrained person, this will probably be very painful. What will you do today to increase your fitness and increase your pain threshold?

Finding Happiness

When it comes down to it, I believe our ultimate goal should be to be happy. That should be the “why” behind all of our actions. But we need to break this down further to truly understand it. We should not confuse short-term happiness for long-term happiness, or vice versa. For many people, their short-term happiness hinges on doing something that feels pleasurable at the time, but comes at the expense of their long-term happiness.

For example, going on a spending spree occasionally is fine, but doing that everyday will make you go broke in the long run and you’ll have to delay retirement.

Eating pizza or doughnuts is really enjoyable at the time, but do it everyday and you’ll likely be working your way towards all sorts of health problems.

Taking a day off from working out or reading to let your body and mind recharge is great, but to never work out or read puts your body and mind in a deficit over time.

You need to find the balance between short-term happiness and long-term happiness. The easiest way to do this is to find enjoyment in the process of everything you do. If you can find as much overlap as possible where what you want to do in the short-term is actually benefitting you kn the long-term, that’s when you’ll really feel supercharged instead of like you’re always sacrificing happiness now for happiness in the future (or vice versa).

So, what helps to shape our happiness? Usually, it is some combination of striving to be our best selves (mentally, physically, spiritually, relationally, and financially), of feeling a sense of accomplishment by doing something difficult, of contribution (helping others/volunteering/giving back), and of gratitude (being thankful for what we have and not comparing ourselves to others). Find ways to intentionally incorporate actions that push you towards this and you’ll find happiness much more often.