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Today I had lunch with Troy MacDonald, the leader of the local Winnipeg Property Investor's Network and we were talking about mindset.
Mindset is perhaps, one of the most important assets in business or entrepreneurship.
Most people think that money is holding them back from reaching their dreams, but in fact, money does not exist. The only thing holding them back from reaching their dreams is in fact mindset.
When I was 22 years old I made the choice to go into real estate investing. I had literally no money and no experience... all I had was passion, a gut feeling that real estate was where I wanted to go and a very strong reason why I wanted to pursue real estate.
All I had was guts and passion. The little money I did earn as a guitar teacher was invested primarily in real estate education, seminars, and books. Since many of these educational seminars are extremely expensive ($1500-$30,000) and all of my cash from my job went into funding my education, I learned how to operate my real estate business and my other businesses with no cash.
I was on the NO CASH DIET.
If I found a property I wanted to buy, I was unable to buy it because I had no cash and often no credit, so I had to raise the money. I had to learn how to "bootstrap" and keep my operating budgets razor thin. I also had to learn how to motivate and keep team members on the team and working for me with no cash. None of this is particularly easy to do, but I was forced to learn the skills because my passion told me to go into real estate and I "jumped in" feet first.
Cash is never a problem for me today in my business because I started with none, have operated with none, acquired all of my property with no cash, renovated buildings with no cash, motivated teams with no cash, travelled with no cash and have learned how to live with no cash.
My mindset has transformed from a "cash required" mindset to a "no cash required" mindset.
Many people who get into real estate or business think that they need cash for all of the above:
Their mindset is lazy.
Most people think that business is like walking into a McDonald's and buying a Big-Mac. If they want the Big-Mac, they have to buy it cash. If they don't have cash, they can't buy the Big-Mac. Nothing could be further from the truth.
There are many ways to get a no money down Big-Mac, but you need to be creative.
Unfortunately, having cash makes you lazy in your mindset and although I am excellent at operating with no cash, I am not immune to the laziness that comes with having cash.
Whenever I have a windfall profit and suddenly "have cash", I quickly find out how stupid I can be as I spend my windfall profits on stupid, meaningless purchases. I don't go out of control, but I definitely notice that my intelligence goes "down" when my personal cash goes "up".
Understand that money is a drug, the more you have, the more you want. If you have none, money cannot control you. It's very liberating.
In the movie Wall Street 2, there is quote I will never forget. One character asks the other "how much money do you want?" the answer is "more".
We are all programmed to be the same. We always want more money.
We have some... then we want more, If we have more... we STILL want more. There is no end to the madness and the only cure for the "more" disease is a "No cash diet".
In ancient times, fasting or taking all food out of a person's diet for a few days was a way to purify the body of addictions. It was a way to keep the mind in control of the body and not have the body control the mind with it's cravings and addictions.
Today we have lost the idea of fasting for the most part and let our addictions rule our decision making.
Money is no different. To stop a money addiction, you must fast from money - go on a "no cash diet".
Of course, choosing to be on the "no cash diet" is extremely painful, scary, socially disturbing and many people would rather be dead than live on the "no cash diet".
The truth is, I am no different, I hate being on a no cash diet because it's very painful. However, as Dr. Nido Cubein says: "Pain is mandatory, suffering is optional."
Throughout my life, my passion has forced me into a situations where I had no options but to go on a "no cash diet" to chase my dreams because I literally had no other way.
I wanted to participate in real estate as an investor as a young man, not an old man and refused to become a realtor. I bought the home study course to become a realtor 3 times and have never had the stomach to open it. My only option for pursuing my passion was to operate as a real estate investor with NO CASH.
Since starting in real estate, I find myself in situations over and over again where I am operating a business that is hopelessly undercapitalized but I know how to work the business and grow it to be successful because I have lived on the "no cash diet".
The best way to get on the "No cash diet" is to literally quit your job, have no plans on getting another one and start up a business on nothing but guts and passion. HOWEVER, I do not recommend this for anyone, there is extreme risk with doing something like this... Plus your girlfriend/wife will hate you and potentially divorce you.
I have quit my job with no plans of ever becoming an employee again 3 times and twice I have been forced back into employee-land because I could not assemble a proper business.
The decision to go on a "no cash diet" is a big one, and a decision that 99% of people never choose to pursue because they favour comfort and security over freedom.
Truthfully, I think that many entrepreneurs get themselves into stupid and risky situations that force them into a no cash mindset. I don't think anyone is really born with the mindset because it is too abstract to comprehend. Usually the mindset is created through a combination of the following:
- Job Loss/Job Quitting
- Starting a business blindly on passion
- Over leveraging to pursue a dream
All of these situations have a pain threshold and have their own risks. However, if you find yourself going through some of those experiences listed above, you will find out that once you get over the initial shock of getting out of your comfort zone and exploring your deepest fears, you will find (if you are mentally tough enough to survive) that you do not need Cash for any aspect of your life.
If you can survive through one of the more traumatic experiences above, you will see money for what it truly is. Money is absolutely worthless and it does not even exist in the first place.
Money is an enslavement tool that governments print it out of thin air when they need it. Why should governments be the only ones allowed to print? Why don't you print some too?
Once you have removed yourself from being a slave to money and realize that you no longer need it, you will learn to become "the master of money" and see it as a tool build and chase your dreams.
Although no one is born with a "no cash diet", Children who become entrepreneurs often come from parents who are either:
- Dead, or
Dead or incompetent parents forces children into a "no cash diet" early in life and the children never become addicts of the money-drug. These types of children become shrewd, creative and are often wildly successful.
While I type this article at 99 words per minute, off the top of my head, 3 multi millionaire entrepreneurs who had dead or incompetent parents are:
Those of us who learn the "no cash" diet early in life are the ones who have the most time to build and reach for their dreams. I had the luxury of being forced onto the diet at age 22 while many of the men above were forced onto it at age 11 or 12. No matter what your age, consider what a "no cash" diet is and how you can emulate one to free yourself from the money-drug that rules 99% of the population.
Thanks for reading,
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