Which of the 7 Money Laws are You Breaking in Your Real Estate Business?

real estate agent money problemsScary Stats:

  • Last year more than 2.5 billion dollars was spent just in the U.S.A. alone on downloading cell phone ring tones.
  • Only 40% of North Americans have ever reviewed their credit standings.
  • Only 40% of North Americans have ever used a budget.
  • 40% of North Americans don’t pay their credit card balances each month.
  • 1 in 7 North Americans have 7-10 maxed out credit cards each.
  • Average North American is spending 119% of what they earn each month.
  • In 2000 – 26 billion equity was taken out of homes, In 2004 – 139 Billion, In 2005 – 450 billion and 2006 – 620 billion. The money was used 35% for home improvements, 16% miscellaneous purchases and the rest on debt consolidation.

North Americans are spending money they don’t have, on things they don’t need, to impress people they don’t know.

Question? Do you think there is a problem?

Can you see why so many are unable to reach financial prosperity?

Have you ever wondered why some people seem to get rich easily and others are destined for financial struggle?

Is the difference found in their education, intelligence, skills, timing, work habits, contacts, luck or their choice of jobs, business or investment?

The shocking answer is… none of the above!!

Let’s talk about the inner laws of money. What do I mean by the inner laws of money?

Write this down….“It is not enough to be in the right place at the right time. You have to be the right person in the right place at the right time.”

Question – How are you? How do you rate you? How do others rate you? How do you think about money? What are your beliefs about money? How do you feel about you and your money? Do you truly feel that you deserve financial prosperity?

Napoleon Hill said – “Poverty is a state of mind and nothing else.”

Stuart Wilde said “The key to success is to raise your own energy. When you do, people will be naturally attracted to you. And when they show up…..BILL EM.”

Jim Rohn said “Your income can grow only to the extent you do.”

Zig Ziglar said…“Formal education will make you a living; self-education will make you a fortune. Money is something that we attract and not pursue.”

Have any of you heard of the Law of Income? – the law of income says that “You will be paid in direct proportion to the value you deliver according to your marketplace.”

Research shows that 80% of individuals will never be financially free in the way they would like to be. “If you want to change the fruits, you will first have to change the roots.”

T. Harv Ecker sums it up brilliantly. “Your financial destiny is determined by your own money blueprint.”

What does he mean “your money blueprint”? What are things you have heard, seen, experienced in your blueprints about… Money? About being rich? About rich people when you were a child? As an adolescent? As an adult?

Do any of these sound familiar?

  • Money is evil.
  • Rich are greedy.
  • Rich get richer…poor get poorer.
  • What am I made of? Money?
  • Money doesn’t grow on trees. Etc. etc.

You can redefine your blueprint using the Wealth Principle: The Wealth Principle is – TFAR (Thoughts, Feelings, Actions, Results) – Thoughts lead to feelings. Feelings lead to actions. Actions lead to results.

Example “The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change your financial success permanently is to reset your financial thermostat.”

Reset your thoughts which will then change your feelings, which will then change your actions, which will change your results and your financial success.

Ecker said ….“If you shoot for the stars, you will at least hit the moon.” Poor people don’t even shoot for the ceiling in their home and wonder why they are not successful.

This is simple arithmetic. Your income can grow only to the extent that you do.

Remember the first element of change is awareness. Are you aware of your own blueprints? Watch yourself become conscious. Observe your thoughts, your fears, your beliefs, your habits, your actions and more importantly your inactions. Put yourself under a microscope. Study yourself and your success and money blueprint. This is your formula for change:

 

  • Awareness – consider specific thoughts, feelings, incidents, emotions around money
  • Understanding – write them down and how they may have affected your current financial life
  • Disassociation – Can you see how your current wealth is only what you learned, what you know and what you believe
  • Declaration – I am going to reset my financial thermostat. I am going to reset that belief right now

 

George Clason wrote these words in his book “The Richest Man in Babylon.” Money is the medium by which earthly success is measured. Money makes possible the enjoyment of the best the earth affords. Money is plentiful for those who understand the simple laws which govern its acquisition. Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago. Let’s take a look at Clason’s Babylonian money laws.

George Clason 7 Money Laws

  • Law # 1 – A Part of all you earn is yours to keep. The most powerful and most important message you read and hear from all experts in financial prosperity. “PAY YOURSELF FIRST.” Clason refers to this as “Starting thy purse to fattening” He uses the story of the humble egg merchant. If the egg merchant put ten eggs in his basket each morning and take out only nine by evening. Eventually what will happen? It will in time become overflowing. Or how about every ten coins you place in your purse you take out and use only nine. Your purse will fatten and soon will build increasing weight and bring you great satisfaction. Create a second account that is difficult to access and take that one egg, take that one coin and let it build and overflow over time. Just like this merchant you too create an account at a different bank and set up automated withdraw into this account, that can’t be readily accessed to build up your purse.
  • Law # 2 – Control your expenditures. “BUDGETING” All men are burdened with more desires than they can gratify. We have this false idea that we can gratify our every desire. Clason states there are limits to your strength, limits to the distance you may travel, limits to what you may eat and limits to the zest you may enjoy. The key to controlling your expenses is taking the time to really identify your fixed expenses and eliminate or minimize your non fixed expenses. Discipline yourself to live lean and mean. Pay yourself your fixed expense amount at beginning of the month. Review Constantly – identify habits, implement cost savings i.e. basic cable or even no cable. Apply the same principle to your business accounts.
  • Law # 3 – Make your gold multiply. “INVEST” The greatest opportunity and wealth building strategy we all have is buying what we know… Stocks, Bonds, Mutual, Commodities, Mortgages, Rentals, Loans etc. Clason states that a man’s wealth is not the coins he carries in his purse but it is the income he buildeth, the golden stream that continually flows into his purse and keeping it bulging. Amortization in wealth building is key… Example: Only $5,000 per year or  $416 / month Invested. Over 10 years – at 5% becomes 66K at 15% becomes 116K…    Over 20 years at 5% becomes 173K at 15% becomes 589K.
  • Law # 4 – Guard your treasures from loss. “INVEST WISELY, CONSERVATIVELY” Start by investing small amounts and learn to protect and grow those first. Clason said every man is tempted by opportunities where it would seem that he could make large sums by its investment in the most plausible projects. So often we are urged by friends or family to eagerly enter these high return investments. Remember the risk or penalty is probable loss. TIP – borrowing to invest. Ask your advisor for their personal net worth statement. WORDS OF WISDOM –  Invest only where the principal is safe and where the principle may be reclaimed if needed and where you will not fail to collect a fair return. Consult with wise men. Secure their advice and let their wisdom protect your treasures.
  • Law # 5 – Make Of Thy Dwelling a Profitable Investment – “OWN A HOME” To a man’s heart it brings gladness to eat the figs from his own trees and the grapes of his own vines. To own his own domicile and to have a place he is proud to care for and put confidence in his heart and reward behind his endeavors. Discipline yourself to pay this home off. Blessings to the man who owneth his own home. Greatly reduces his cost of living and making available more of his earnings to build his wealth.
  • Law # 6 – Insure a Future Income – “SAVINGS” It behooves a man to make preparation for a suitable income in the days to come, when he is no longer young and to make preparations for his family should he be no longer with them to comfort and  support them. It is important you maintain savings and have funds put away for many different reasons. Health, emergency expenses, major financial setbacks or economic down turn. you will get old. You may get sick. You will die one day and you should be prepared. TIP – wills, insurance life & disability
  • Law # 7 – Cultivate, Study & Learn – “BECOME A STUDENT” Constantly improve yourself and become more skillful. Act on these principles and have the discipline to learn and implement them. Then begin to teach them to others including your own children. Clason reminds us “There is more gold in Babylon my students than you could dream of. There is abundance for us all.”

One thing you can do as a real estate agent is turn your financial situation around. If you are in a strong financial position already I applaud you. I trust that you find one or two disciplines that you can implement in your personal and business finances and start your journey to a stronger financial future.

Strength and courage,

Wade

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Money Problems in Your Real Estate Business? Learn the 7 Money Laws Now