“I hated every minute of training, but I said, ‘Don’t quit. Suffer now and live the rest of your life as a champion.’” – Muhammad Ali
Do what you need to do now, even if you don’t feel like it, so you can set yourself up for success and reap the rewards later.
Does a farmer plant seeds only when he feels like it? No, because then when he needs to harvest his crop, it won’t be there!
Success takes time, it takes hard work, and it takes consistent action. If you work out once, you’re not going to have six pack abs. If you save money to invest one month, you’re not going to be able to retire off of it. But if you do those things consistently over time, you’ll eventually achieve things that most people aren’t disciplined enough to do.
“Suffer” now. “Sacrifice” now. Live below your means, take care of your mind, body, and spirit now. Do these things consistently and continued take massive actions daily, weekly, and monthly towards your goals, and you will achieve success. Think about your future self, not just about what you feel like doing right now.
Are you doing something because it actually makes sense – because you want to do it or because it is providing some value to you or serving a purpose? Or are you doing it because you’ve already “invested” so much time, money, or energy doing it and you think about everything that would have been wasted if you quit now?
In reality, you can’t get back the time, money, or energy you’ve already spent. You can’t recoup that. So the question becomes, are you willing to waste more time, money, and energy now just to see the project through? Are you willing to “throw good money after bad?”
Take a step back and ask yourself this question… “If I didn’t have ANYTHING invested in this and I have all of the information that I have today, would I still invest in doing this task?” If the answer is no, then it’s probably best to let it go.
We only have a finite amount of these resources. When we say “yes” to making suboptimal choices, we are inherently saying “no” to making better choices. We can’t be in two places at once. Most people have to make either/or decisions when it comes to buying things because we don’t have unlimited money. And our energy waxes and wanes, but if we keep beating our heads against a wall and doing things that don’t serve us or energize us, we will feel depleted of energy long before we need to. Don’t continue to do something that doesn’t work just because you have a sunken cost – it will only cost you more time, money, and energy in the long run.
Work on increasing your different types of capacities…
⁃ Physical: Build a strong, healthy body so that you have the energy and strength to tackle projects and obstacles
⁃ Mental: Build a strong mind by reading books/articles, listening to books/podcasts, attending seminars, and surrounding yourself with others who are smarter/have more experience than you. Prepare your mind to become great at problem solving. Make sure you always remain teachable.
⁃ Emotional: Get used to “failing” and being told “no.” Learn from those mistakes to get better. Strengthen your resolve and do not be discouraged when things don’t go your way.
⁃ Time: Everyone has 24 hours in a day. Automate tasks which need to be done, eliminate tasks which don’t, and delegate tasks which cannot be automated, but aren’t the best/most productive use of your time. If you try to do everything, you will always be stuck doing everything. Learn to delegate tasks that are not necessary for you to do. These can be things that you’re good at, but don’t enjoy doing OR things that you’re not good at and don’t enjoy doing. Teach/train others how to do those tasks well and they will be an extension of yourself! Then when they outgrow that task/position, have them teach/train others to become extensions of themselves! The growth compounds exponentially AND it frees up your time to focus on more impactful activities that only you can do.
There are four sectors of the Cashflow Quadrant – E (employee), S (self-employed), B (business-owner), I (investor)
The Cashflow Quadrant describes four ways of making money – as an employee, a self-employed individual, a business-owner, or an investor. You are not limited to earning income in only one category at a time.
The most common way to make money (and what most people are trained for in school) is to be an employee. As an employee, you’re working for a company or organization and trading your time for money. You generally have the most “security” but the least amount of freedom as an employee (think W-2). You work the hours your employers set, follow their rules/handbook, and as a result, get paid a set wage (usually based on an hourly rate, but sometimes as a salary). Examples of this are everywhere – the cashier at the store you go to, the secretary at your office, a warehouse stocker, a janitor, teacher, office administrator, etc.
The second way to make money is as a self-employed individual (think 1099). Here, you don’t have a “boss,” but instead you are your own boss. It sounds great, but essentially you own your job here. You still trade time for money, but now you trade off some of the safety/stability of working for someone else and having a guaranteed paycheck for having to earn new business everyday. If you don’t sell something, you don’t get paid. Examples of this include lawyers, real estate agents, the owner of a landscaping company where the owner is doing a fair amount of revenue-generating/business-sustaining work, etc.
After that, you can move to the right side of the quadrant and start leveraging other people’s time or money to make you money.
In the business owner quadrant, you move yourself out of operations. You are no longer physically doing much of the work. Instead, you have employees doing the work on your behalf. You have scaled to the point where not everything hinges on you. If you decide to leave for a few weeks (or months), the business will still make money because of the people you have working for you, and the systems/processes you have in place. Think of Jeff Bezos, Steve Jobs, and Bill Gates as examples of this, but it can be on a much smaller scale too. Do you think any of them are out selling their products on an individual level, making the product, or packaging the product? Can they leave for vacation (or pass away) and have the company still survive (or thrive)? They leverage other people’s time so they can accomplish more.
Lastly, we have the investor quadrant. Anybody can be in the investor quadrant as long as they are investing in an asset that produces returns positive returns. The ultimate goal in the investor quadrant though should be to have your investments produce enough passive income to cover all of your expenses. once you get to that point, you won’t have to work another day in your life. You can choose to work, trillion time for money or being a business owner and working on your business, but you do not have to work. There are many ways to invest in assets, whether that is through index funds, mutual funds, cryptocurrency, and my personal favorite – real estate. Here, you leverage either your own money or, preferably, other people’s money to work and earn more money. The idea is that your money is working for you even when you’re sleeping.
Where I’ve been
As I write this, I’m now 31 years old. I’ve been working in some capacity for over half of my life now. I started working part-time jobs in high school on an alpaca farm, at a pizza shop, and landscaping. I took the first quarter off from work in college, but other than that I worked a minimum of 25 hours per week throughout the school year (and 40+ hours per week in the summer) at an office, as a personal trainer, and landscaping. After graduating, I began working 55-60 hour weeks at a food packaging plant, as a personal trainer and CrossFit coach, a gym manager, and a salesperson/project manager. I understand what it means to be an employee – trading time for money. I decided that this wasn’t the best path for me, even though I see how it makes sense to many people. The problem I had with it was two-fold. First, no matter how productive I was, my income was always capped. I could help the company make record profits, but it didn’t necessarily translate to an equal payday for me. But don’t hear what I’m not saying – I didn’t necessarily need to be paid in equal proportions to what I earned for the company. The business owners were the ones who took the risk to build the business and who spent the time, money, and energy in developing systems for me to succeed. It’s just that I knew my income and my family’s future would be capped if I stayed there. The second limiting factor for me as an employee is that I love learning and trying to implement new ideas. But as an employee, I had to stick to the rules and keep following what was working. I felt my innovative side was being stifled and I wanted to make my own rules. This led to my career change last year…
Where I am
As of June 2020, I became a licensed Realtor in the state of Ohio. The primary locations I focus on are Medina, Cuyahoga, Summit, Lorain, and Wayne counties. I generally work with people looking for a primary residence, and it ranges from first-time homebuyers, people looking to upsize, or people looking to downsize. That being said, my wife and I invest in rental properties and we work with other investors ranging from single family rentals/house flips, small multi-family, or commercial properties (such as apartments).
I’m now on a great team (The Casey Team) and working with an amazing brokerage (Russell Real Estate Services).
But even though I’m on a team, it’s still a 1099 (self-employed) profession. If I don’t sell houses, I don’t make money. I can cold call, door knock, show houses, and write offers, but if I don’t perform and close deals, I don’t get paid. It’s a 100% commission career and it can be stressful at times. But here, the harder I work, the more money I should make. My income isn’t capped.
As I mentioned, my wife and I do invest in real estate, but we also invest in the stock market with our IRA plans and her 403b. We also have the kids set up with UTMAs (Uniform Transfers to Minors Act) so they will be off to a good start once they become of age. We do not touch any of the cashflow from the rentals, dividends, or increases in equity that we receive from these investments and rather re-invest them so they can grow larger for us. This is similar to the example used for “make thy gold multiply” told in The Richest Man in Babylon.
Where I’m going (my plans)
My goal is to be able to retire by age 50. I don’t ever see a time when I want to stop working – I enjoy work, learning, and improving myself everyday. But I don’t want to have to work. If my family and I want to go on a long vacation, I want to be able to pick up and go.
With that being the end goal, I need to change a couple of things. First, I need my investments to produce a greater return. My goal is to do that through buying one new rental property every other year for the next 5 years, then hopefully increase to one per year (or more) for the following 15 years. We would hire a property manager so we are not handling the day-to-day items and it becomes a much more passive system.
I also want to move from the S (self-employed) quadrant to the B (business-owner) quadrant. While I don’t have any plans to open a brokerage, mortgage company, or title company, I would like to eventually be a partner on the current team I’m on and to get more Realtors on our team. Then we can have them out making deals while we help provide the support for them (with leads, office administrators, inside sales agents, stagers, photographers, etc). This will take time to build, and we will have to write up processes (and tweak them as we go). But this would eventually free me from the trading time for money conundrum that so many of us face.
If you have any tips or suggestions, feel free to leave them in the comments or to message me directly.
Work smarter, then work harder. It takes both to become the best at your profession.
Take the 80/20 rule first. 80 percent of your results come from 20 percent of your effort. This is where the “work smarter” portion comes into play. If you ignore the 20 percent of the work that is getting the most results, you’ll be working tirelessly and seeing almost nothing in return. So make sure you are smart about where you are focusing your attention.
From there, you have to work harder if you want to achieve excellence. The first 80 percent of the results should come relatively easy just by doing the right things. But if you truly want to be in the top 1 percent, you’re going to have to work really hard in addition to working smart.
Make sure you are working in this order though (smarter then harder). You don’t want to work really hard and feel like you’re going to burn out because you’ve wasted all of your time and money…Once you get 80 percent of the results, you will have stabilized your income enough so you can afford to take on greater challenges.
