09: Rising from Poverty to Wealth
In this episode, we’re switching gears a bit. We want to talk about how studying poverty can teach us principles that ultimately lead to wealth.
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1. We should cease blaming others for our choices and their consequences, including financially, and instead accept personal responsibility/accountability for our own future.
2. We should exercise faith in our capacity to merit a better future, including financially, amidst the abundant opportunities that surround us.
3. We should regularly assess our own personal “capital”—not only the financial sort but also ALL other sorts—to determine which types we’re currently lacking, and perpetually strive to improve ourselves in whatever ways we remain deficient.
4. We should nurture the right mentality through regular positive self-talk, along with visualizing the results that we seek, while remembering that thought without action accomplishes nothing.
5. We should associate regularly with the sort of people whom we want to become so that we can learn to emulate their success.
6. We should learn from others how to qualify for what we want, rather than remaining endlessly dependent upon others to give us things that we never earned, and we should also nurture gratitude for everything that we receive.
7. We should expect 20% of our efforts to yield 80% of our results, according to the Pareto Principle, and learn to prioritize our efforts accordingly.
[00:56] Zach asserts that people are responsible for their own poverty (or wealth).
[01:16] Thomas and Zach explain that our mindset is crucial in determining our economic status.
[02:21] Thomas summarizes Napoleon Hill’s discovery that accepting our control over our own choices, along with the consequences thereof, rather than blaming our circumstances entirely on external factors, invites success not only in business but also in other aspects of life.
[04:21] Zach notes that Westerners are likelier than Easterners to believe that we each determine our own destiny.
[04:56] Zach likes to encourage a self-control mindset by asking himself the question “what’s the worst that could happen” and then determining whether-or-not he can accept the answer.
[05:50] Thomas asserts that wealth results from success at supplying people with goods/services that they demand, that some people’s affluence doesn’t automatically impoverish everyone else, and that the poor should learn to become rich rather than seeking wealth that they didn’t earn.
[07:03] Zach introduces Vilfredo Pareto’s observation that 20% of people control 80% of wealth, and asserts that coercive redistribution-of-wealth defies natural law.
[07:48] Thomas elaborates upon the Pareto Principle that 20% of causes yield 80% of effects, and also promises an future podcast episode devoted entirely to this subject.
[08:44] Thomas and Zach note how a salesperson’s mentality influences his/her success at pitching, and provide two examples.
[10:48] Zach and Thomas agree that the American dream remains possible, and that Americans enjoy more opportunities than ever before.
[11:34] Zach notes that thoughts are meaningless unless they translate into actions—so, although positive mental affirmations can help us, we also need to work.
[12:21] Zach explains how we can progress more easily whenever we surround ourselves regularly with people who already demonstrate the qualities that we’re striving to develop, and Thomas provides two examples.
[15:31] Zach lauds Jeff Bezos’ efforts to encourage Amazon employees to treat every day as Day One.
[17:04] Thomas remarks that poverty is relative, that even the poorest Americans are rich compared with the poor in some other nations, and that prosperity can also change over time.
[19:41] Zach urges listeners to emulate success in order to become successful.
[19:51] Zach asserts that having money is not essential to earning money, and Thomas elaborates why financial capital is less important than other forms of capital.
[22:42] Zach talks about his “holistic harmonization” spider chart that he uses to regularly evaluate his own capital in all of its forms, and then recommends regular self-assessment to others.
[25:37] Thomas observes that people who need financial help often need even more help with other aspects of their lives, such as budgeting.
[26:17] Thomas relates a personal anecdote about how, whenever we obtain things too easily, we may foolishly treat them too lightly, and Zach responds with a personal anecdote about how we value things more when we earn them.
[30:01] Zach advocates that it’s better to help people to become self-reliant than to give them money.
[30:34] Zach recommends visualizing yourself already being the sort of person and/or living the sort of lifestyle that you want.
[32:03] Thomas adds that wealth (like capital) exists in more forms than only the financial ones, and that there’s more to life than money alone.
[33:08] Zach urges listeners not to neglect other important aspects of their lives in their pursuit of money.
[33:34] Thomas urges listeners to nurture gratitude for whatever they have or else they’ll never achieve happiness.
[33:59] Zach encourages constant self-improvement.
[34:28] Zach and Thomas present this episode’s Projects of the Week.
Zach Smith: (00:00) Funded Today Nation, welcome back to the Funded Today podcast. We just wrapped up our “Presentation “P” Series” this last week so if you’ve not listened to those yet you want to go back and download them. On today’s episode we already switched gears a bit we want to talk about “how studying poverty being poor can teach us principles that ultimately lead to wealth”.
Announcer: (00:22) The Funded Today Podcast is hosted by World-Renowned Entrepreneurs and Business Experts Thomas Alvord: and Zach Smith:. To get a help with your next big business idea or to take your business to the next level go to fundedtoday.com.
Zach Smith: (00:37) Welcome back I am Zach Smith.
Thomas Alvord: (00:39) And, I’m Thomas Alvord.
Zach Smith: (00:41) And in our last episode we wrapped up our “Presentation “P” Series” with Director Video of Funded Today Devan Butler, definitely checkout that interview if you want to learn how to create a viral video that converts. In today’s episode we’re going to talk about the lessons we’ve learned working with people in poverty. You’re poor and it’s your own fault, wow what’s going on there, when I go there right off the bat - you’re poor and it’s your own fault tell me a little bit more about that?
Zach Smith: (01:09) You know, really if you look at poverty, and I want to define it first right, “Poverty” is a poor mindset. One of the definitions of Poverty is a state of being inferior in quality or insufficient in amount in any regard or in any topic. Poverty is much more than just finances, I think so much begins with the mind and what you believe. What is your mentality right? Do you have a wealth mentality or a poverty mentality?
Thomas Alvord: (01:42) And, some people might think that’s just bogus but it’s true. No you can’t just say your affirmations every day and think you’re going to become rich, but you have to have the right mentality and I think a lot of people have a poverty mindset.
Zach Smith: (01:54) I really love that Thomas everybody they think about poverty like oh poor he doesn’t have any money but I think as you mentioned wealth starts with the right mindset. It kind of reminds me of “Napoleon Hill’s Classic” the book “Think and Grow Rich” you really should check out that book. It’s all about getting the mindset right, so you can think like those that are rich.
Thomas Alvord: (02:15) Well and I love that book for those who haven’t read it. Napoleon Hill back 100 years ago or so maybe eighty years I can’t remember exactly when he went and he interviewed the most successful people of the time and found that they had this mentality of wealth and this mentality that they were going to achieve something. It reminds me of something else which you may have heard of Zach which is the “Locus of Control” that some I learned in college maybe other people have heard of people who have an internal and an external locus of control which basically says what dictates the outcome, what is in control is it you or is it your external circumstances, so if somebody has an internal locus of control they believe that they are in control because the locus of control or the location of the control is internal it’s within them.
The external would be the environment that it’s because of the government or because of other people or because of their upbringing or because of whatever that dictates and controls what they’re able to do or what they’re able to become. And this doesn’t just apply to business and making wealth like literally it’s kind of interesting looking at an internal and external “locus of control” just kind of on a side note I remember something that really stood out that’s kind of interesting is typically we actually ascribe an internal locus of control when somebody else does something that’s not good, and we ascribe an extra locus of control when something happens that’s bad that we do. So for example let’s say you’re late to work, you’re late to work not because you’re lazy but because of the traffic or because of your flat tire, because of things outside of you but if somebody else is late to work well it’s because they don’t know how to get up on time or they’re lazy right you actually ascribe an internal locus of control.
Thomas Alvord: (04:18) That whole idea of who is really in control of things I kind of experienced that a little bit, I had a chance to live among the Chinese for a couple years, and growing up I guess I always thought I had a lot of control of things but when you compare Western to Eastern thought back in the east they are a lot more socialistic I guess you could say, they believe that a lot of things they simply don’t have control over. They have a different locus of control and it really does go back to that question well who is really in control and one little exercise that I like to do to kind of help myself get the right mindset with regards to control and what I can control and what I can’t control is I simply think so what, what’s the worst that can happen and I think it helps me to go there, what’s the worst that can happen will if I don’t do this podcast today then I’m going to have to do it tomorrow, if I don’t go to the gym today then I’m going to lose out on my goal to be able to bench X number of pounds by this day, if I don’t do my meditation and reading today then I’m going to be a little bit deprived spiritually and mentally, and I think always ask yourself what’s the worst that can happen and then seeing if you’re able to accept that can help you have confidence over the things you control, and to realize there’s many things that you can’t control, so what that’s okay.
Zach Smith: (05:50) And you know what’s so interesting about that is remember a couple years ago and people still talk about it the 1% right look at all these wealthy people the 1% as if that one percent made you poor which is ridiculous because most of those 1% people created companies and products that people absolutely love it’s like Oh I hate all these people who are wealthy, look at this dude I’m texting all my friends on my phone to come to the rally, it’s like dude don’t you realize these 1% people are making your life and have made what has made America amazing, and people feel like Oh here’s one person who successful it means that they’re shorting me or somehow wronging me right. There is this mentality and it’s so backwards I look at it and I think dude instead of saying look at this 1% everyone else is poor, why don’t you ask the question what is this 1% doing that have allowed them to get to where they’re at instead of complaining about it, because I’d always hear about the 1% and then I was like wait a second I’m the 1% but I don’t feel like I’m anything special, I don’t feel like I’m wronging people, my kids and my wife and I live in a home and I’m just a regular person just like anyone else.
Thomas Alvord: (07:06) Your observation is very similar to what Vilfredo Federico Damaso Pareto everybody heard that name before, the guy that did the “Pareto Principle” 80-20 observed it was a natural observation that 20% of the people in his country owned 80% of the wealth.
Zach Smith: (07:23) And that was 200 years ago.
Thomas Alvord: (07:24) He didn’t go and research anything he just said hey this is the case this is what I have observed 80-20 20% of everybody controls 80% of all of this wealth. So the reality is when we’re talking about redistribution of wealth when we’re talking about how can we fix poverty we are literally going against the laws of nature. We are talking about defying nature if we go about that course of action it’s impossible. Right and I look at it and say this is amazing, if you’re doing something that’s not getting you the results, and if you’re not familiar with the 80-20 principle we’re going to have a whole episode on it and how it applies to your personal life, how it applies to your business again for those not familiar 80-20 basically says inputs and outputs or disproportionate. So the work you do, the effort you do that the output the results you’re going to get the revenue you’re going to make it’s disproportionate there are some things that if you do they generate such larger returns then other things you do and so you got to realize it’s not off or not and you just got to find what are the things that if you tweak or focus on new things you’re going to get those exceptional results.
And again part of it and what we’re talking about here is mentality and you know what’s interesting Zach is I’ve even noticed with some of our client specialists, our sales reps even at Funded Today when they come in their mentality really dictates and influences how they’re even able to pitch somebody have you seen that? I think of one of our client specialists from a couple years ago he helped the whole company basically shift their mindset and shift their horizon. We were selling a particular service for “X” number of dollars and without any permission from us he decided to start selling it for significantly more, double, triple even and when we saw one come in kind of at the higher mark that we’ve ever seen we thought oh what is this and then another, and then another he believed in Funded Today so much he believed the value of our product so highly that it would help so many people that he was selling it for what he believed them because he believed that people were paying it, such that nobody was paying the amount that we normally charge. And not only that Zach he didn’t come from a mindset of poverty and there’s another rep who I won’t say his name where it felt like he could hardly ask anybody for any money because he thought everyone else was poor because he was projecting at the time his current state of being.
So he was thinking everyone is poor so how can I pitch on this because they don’t have the money, so if you have that mentality that mindset of poverty there’s no way you’re going to be able to go make money because you’re going to think everyone else doesn’t have money, but there’s people with tons of money even when I walk around sometimes I’m like yeah okay I make a couple million a year, but man there’s other people again 80-20 I don’t know who they are but maybe it’s someone at the gym, maybe it’s someone here at church, maybe it’s someone else they’re probably making like $50 million a year and I don’t even know they don’t have the regular person, but there’s people who have tons of money and yeah there’s a lot of people who don’t have money but you have to have a mentality and a mindset of wealth and not poverty.
Zach Smith: (10:47) So Thomas deep question for you since it seems like we’re going pretty deep today, is the American Dream broken?
Thomas Alvord: (10:52) No absolutely not it’s alive more than ever I think there’s more opportunity then there’s ever been and the capital required and we’ll kind of dive into that a little later but the things necessary to create new systems to build new things back in the day if you were building a company you might not have had mail chat or if you needed something more robust there wasn’t sand grid or spark posts, or these other API platforms that allow you to easily create a mail system in a few days like it’s incredible and absolutely not the American Dream isn’t alive and if anything if you look at how much wealth there is the opportunity is greater than it’s ever been.
Zach Smith: (11:32) No I agree with you if you want it you can have it but I don’t think positive affirmations do it for you right?
Thomas Alvord: (11:39) Well of course not.
Zach Smith: (11:40) I’m going to be a millionaire I’m going to be a millionaire, I’m going to be rich you can say those in the mirror all day long it’s fufu right you have to put in the work as we say at Funded Today 90% of our success is simply just doing it, if we do things we experience results work matters, execution trumps all while I’m absolutely all about positive affirmations and getting that negativity out of your life, you have to actually go and do the things you want to do, if you want to become the person that you’re dreaming about every single day. So keep that in mind I have something that I heard recently and I’m trying to remember the person I heard it from but he talks about your internal thermostat he says if you’re at 70 degrees and maybe Thomas is it 85 degrees that it could actually be a pretty good analogy because Thomas has that passion and a vision I’m a little bit more reserved. You return to where you are most comfortable so let’s say you open up the windows and there’s a breeze, a huge storm and it comes in and that storms like 50 degrees. Well guess what your internal thermostat your house is going to take definitely degrees regulate it and get a backup to 70. And Thomas is going to warm it all the way back up to 85 degrees and that’s the problem we return to where we are most comfortable so if we don’t shift our mindset and our comfortability level is at that poverty level we’re never going to reach that mindset necessary to be wealthy because we’re not at that level, and I think that is so important to understand. Now how do we increase our internal thermostat? Well for me it’s very simple you go to places that are unfamiliar to you where you want to be, so for me if Thomas is 85 and I’m 70 I start hanging out around Thomas and I start picking up some of his heat and eventually I get closer to 85 than I do 70 the whole idea of surrounding yourself around those five people and then you become the average of them that’s the internal thermostat and that’s how you raise you heat.
Thomas Alvord: (13:47) What’s so interesting about that Zach is I recently was looking at some of the people who founded other companies that we’re all familiar with, and very often they didn’t just happen to be there but they have a venture that’s worth a billion dollars plus but guess what a few years back they were with another venture or were part of the initial team or the co-founders of another ventures that was worth a billion dollars. For example if you look at the Founders of “Quora” which is the Question and Answer site which is awesome and I love I believe the guy’s name is “Adam D’Angelo” and “Charlie” - I forget his last name.
Zach Smith: (14:30) “Charlie Cheever” yeah.
Thomas Alvord: (14:33) They were some of the I forget if they were one of the Founders at Facebook or one of the first people I think they were like the top 100 people at Facebook, but then they left and they created Quora, and then there is the guy who founded “Asana” that helps you keep do your teamwork tasks and stuff his name is “Dustin Moskovitz” and he was one of the Co-Founders of Facebook, so what exactly what you’re saying right Zach is it here you have people, and where was their thermostat, they were with people who knew how to create things that worked, that got mass adoption and not only did they have that social circle they also knew how to do it and they had their mentality, so yeah I agree a 100% with you.
Zach Smith: (15:24) Have you heard the saying “The Rich Get Richer” I don’t think it’s all “The Rich Get Richer, The Poor Get Poorer” darn it, no it’s not that at all it’s because of who they are surrounding themselves by that they get these opportunities that they’ve expanded their money and that leads them to greater and greater success. One of my favorite letters of all time is Amazon’s first letter to shareholders 1997 Jeff Bezos everybody’s heard of it if you haven’t read this letter check it out we’ll link to it in the show notes, here is what he writes and this is in 1997 Amazon’s pretty successful here but it’s not what it is in 2018 by any means here’s what Jeff says “Amazon.com passed many milestones in 1997, by year-end we had served more than 1.5 customers yielding 838% revenue growth to $147.8 million and extended our market leadership despite aggressive competitive entry, but this is day one for the Internet and here is the key part that I love, if we execute well for Amazon.com” I love that, he’s says it’s day one and he’s done $147.8 million in revenue, he’s got all of his crazy competition and is 1997, and Amazon still says Day 1 in every single shareholder letter.
Thomas Alvord: (16:42) Very, very inspiring that is the mindset but he’s not just saying we’re going to be the best No, he says if we execute well he understands the value of putting in the work dealing with competition expanding his market share. Another thought I want to share Zach about mindset and poverty and wealth is literally it is all relative, the poorest people here in the United States are absolutely rich by standards of people who might be in poverty in Africa or India or somewhere else.
Zach Smith: (17:19) That’s the stepping stone that everybody can live if you were listening to this podcast right now you are in the 0.0001% of the entire global population of what seven billion plus now that can help you realize you already have such a competitive advantage over almost everybody on the planet.
Thomas Alvord: (17:39) Well what’s interesting as well is you look at Jeff Bezos and we have a colleague that has worked with us on Amazon, and Amazon marketing and he used to be one of mid-level executives or maybe he was top-level I can’t remember at Amazon and they had come up with a new product or service that would generate I believe what was it like $100 million in revenue a year for Amazon and Jeff Bezos they table it they’re like we’re not doing this at all from what we’ve heard unless an idea will make the company at least a billion dollars in extra revenue they’re not even going to look out it’s a waste of time, but if you think about it if they’re doing over $100 billion in revenue a year what’s 1% it’s like okay it’s not worth our time to create a whole new venture, and so even looking at Jeff Bezos letter to the shareholders in 1997 right hey we grew revenue to $147 million well if this other idea had come out at that time saying hey we can generate revenue and it was I guaranteed for another $100,000 they probably would have jumped on it, but things again are always relative so I don’t care if you’re a billionaire listening to this or if you make I don’t know how much minimum wage it doesn’t matter the principle is applied to everyone these principles literally apply to me and apply to Zach and to share for example how I’m applying it I went and I got some books from Ogilvy and some other masters of marketing because I wanted to get into the mindset of how do these people create agencies that become worth billions of dollars. I don’t know how to make an agency and provide services and consulting that’s worth tens of millions but not billions, so I myself need to get into that mentality, so wherever you’re at again it’s always relative and even Jeff Bezos right now is poor by the standards of how wealthy who will presumably be in 20 – 30 years, so again what’s your mindset.
Zach Smith: (19:41) That’s such a good example I mean it's all just about putting yourself in the shoes of those who you want to become emulate success, become successful. I want to switch gears now just a sec Thomas and I want to talk about our second topic today why money is not the most important factor I think everybody always thinks well of you just give me some money I can do it I can do what you guys have done give me a million bucks, I’ll make it happen why is that not true let’s dispel that myth once and for all.
Thomas Alvord: (20:11) I remember listening to somebody else who is an expert multi-millionaire and he was sharing yeah money - money is not that big of a deal it doesn’t matter and at the time I didn’t have much things were going well and I thought yeah easy for you to say but once you get to where you and me have got you realize there’s a lot more capital than simply financial capital. Right there is different types of capital, you have intellectual capital, your social capital, your emotional capital, your financial which obviously we’ve talked about your physical capital, right your health, your technological, your spiritual so there is so many more types of capital then just financial capital, and financial capital really is not that big of a deal if you look at how much money is in Silicon Valley and how much money are in hedge funds right those money – are that money is chasing ideas and chasing the next big thing there not a lack of money in the world. Now for some people getting off the ground having the time to put in the time to build something to create something with a full-time job maybe a family maybe with school yes it’s hard but again the other types of capital are so much more powerful because guess what if I gave a million dollars to somebody who didn’t have any intellectual capital wasn’t super bright didn’t have any ideas it wasn’t really connected and have that social capital emotionally they weren’t stable they didn’t have the drive and the persistence to keep pushing physically they weren’t healthy technologically they didn’t know how to create things in the day and age that we live, spiritually you know maybe they were bankrupt they weren’t honest if I gave them a million bucks what would that do to them, nothing. But let me ask you this let’s say tomorrow Facebook and Instagram tank you think Zuckerberg is going to be poor, but let’s assume he goes bankrupt he has absolutely nothing, you think he is going to be poor heck no because of his social capital and his emotional and his intellectual the guy’s going to be a billionaire after he falls down he’s going to pick himself right back up. so there’s so much more power in other types of capital than just the financial capital.
Zach Smith: (22:35) I love that, I have something that I have created over the last couple years for myself that kind of hits on capital I didn’t necessarily call them capital but I love how you have said that because that’s exactly what they are. We have all of these different types of capital and what I do to analyze my capital is I created this thing called “Holistic Harmonization” and I basically create a little spider chart and in the middle it's Zach Smith: and I say who is Zach Smith: and then coming out from that spider chart is my “intellectual capital” “my social capital”, “my emotional”, “my financial”, “my physical”, “my technological”, “my spiritual” and then on each one of those things I ask myself on a scale of one to ten where am I at now? I hate the idea of balance. Balance is like black and white like a teeter-totter either you’re up or you’re down you can’t really be in a teeter-totter and be perfectly balanced that’s the same thing with white there is no such thing as balance there’s such thing as harmony, it’s like playing a piano when you play the piano it’s a bunch of different notes that come together to create something beautiful that’s how we are as human beings.
We have all of these different types of capital and if we rate those assets that capital that we own on a scale of one to ten we can quickly see where we need to improve and have a capital score essentially, a rating of where we are at any given point in time, and we can see where we need to improve and where we are doing just fine. I’ve done this in my life I’ve had times where my emotional capital was probably a one or two I’ve had times when my financial capital was pretty low or worrisome. I’ve had times where my physical capital was bad in fact just this last year I decided to start going to the gym a little bit more because I was getting a little bit heavy and I’ve always been an athlete my whole life I’ve had times my technological capital was down, I remember coming back from a couple years of serving the people in China when I lived in Toronto and I didn’t know anything about all the different tech things.
I remember I don’t think I had a Facebook account at the time, my technological capital was low and by doing this self-assessment by holistically harmonizing your life you can figure out where you need to improve, and where you’re doing just fine and here’s the funny thing almost every successful entrepreneur I know and by successful I mean these guys that uber, uber wealthy more so than Thomas and myself are a lot of people that I know these guys are so harmonized, you go to the gym and they’re the most jack guy in the gym, you play sports with them they’re the best person you’ve ever played against in sports, obviously their financial portfolio is perfect their technological savvy is on par they know everything that’s going on their network is perfect, their social ability to connect with people is great and I’m not amazed by that I know it is because of these different types of capital and the way that they holistically harmonized their life. It’s great just like you said earlier Thomas people didn’t go and create Quora because they had money they had all of the other capital combined let’s call it the Funded Today Capital we’ll brand it and that is what allowed them to start these new big ideas and ventures, money does not matter.
Thomas Alvord: (25:36) And now that we’ve looked at these different types of capital that takes me to the next point which is the more I give and maybe I could even say we if you found it to be the same case and in your life but the more we give the less money we give because often what people need is not money it’s something else maybe it’s not their income, but maybe it’s how they spend and how they budget and they just need to learn how to do that better for their personal finances. I was let’s see four years ago I was doing summer sales I might have shared this before right I had a law degree, I had a master’s degree I was an attorney with the Utah Bar I had a bachelor’s degree of course and different things I was trying they were not working out, and so literally I had to pick-up I said goodbye to my wife and a month old baby or a year old I forget how old he was and left to Nebraska 14 hours away and I literally was going around knocking door selling Direct TV I was doing that because hey here’s an opportunity a friend was doing he said it would be good I figured hey I’ll go do this I could make the revenue I need for a year in - just during the summer and then work on the other stuff that I had been trying to work on.
So I went and one of the guys who went and I’ll just call his name Mark even though that’s not his name, Mark have a warrant out for him because I believe he had a ticket like a speeding ticket or parking I think it was a speeding ticket, and he hadn’t paid it and so there was a warrant out and so he was super and he was doing pretty good right and he was younger he had just gotten out of high school and things were hard in his life right his dad had passed away a few years back and you know he was growing up just with his mom right, so life was tough for him right and I think it was $500 or maybe it was $200 I can’t remember right it was a couple hundred he needed money to pay it off because when he went door-to-door he was worried right, he was worried that somebody would like call the cops on him or stop him and say let me see your license right because sometimes people hate getting bugged and they’re like let me see your license or the cops will come guess someone will call who someone’s knocking on my door bugging me I said, Hey you know what I’m going to help you out I went ahead and I paid off his ticket and I kid you not now he’s ready to go right the sky’s the limit he can go knock doors without any worry I think was the next day or two days later he went home was like okay that was stupid like I literally just wasted my money and I should have said hey I’ll lend us money to you right or have people be accountable I love – I love the quote by Thomas Paine which says I think it’s Thomas Paine “that which we obtain too cheaply we esteem too lightly; it is dearness only that gives everything it’s value” and that’s true right he didn’t value what I had given him and so he didn’t treat it well he didn’t care for it it’s not the finances it’s not the money that people need in terms of helping others it’s more than that and often it’s one of the other types of capital maybe it’s the emotional the desire the drive to go do something.
Zach Smith: (29:02) That’s so good “that which we have obtain too cheaply we esteem too lightly” my mom and dad growing up I used to play a lot of different sports and we were middle class my dad was a schoolteacher and my mom didn’t really do too much just been in jobs to make ends meet and when I want to play sports I would have to pay for 50% of everything that I played so if I want to play baseball I wanted to have the nice baseball mitt and the nice baseball bat so I would save my money and we’d go to SavOn Sporting Goods and we’d go check out all the different bats and maybe it was a couple hundred bucks and I’d breakout my money and I give $100 bucks in the my dad will give $100 bucks and I still remember those possessions probably more so than any other possession or gift that was given to me, so that that quote that you said from Thomas Paine really rings true in my own mind. It’s the idea of self-reliance hoping people help themselves and helping people help themselves is often not just about giving money I’ve had people in my life say Zach just give me a million dollars it’ll change my life, and then I ask well what are you going to do with a million dollars?
Well I’m going to buy a car and buy a nice car a cast we’re going to buy a house if you pay cash for that too I’m going to invest the money here’s the thing you don’t know how to invest what you have now so what’s me you giving you a million dollars going to do for you. Remember start acting like the million but once you’re there you’re just not going to be as comfortable a millionaire as you would be otherwise you’ll feel out of place it’s so true I heard a story again and I’m trying to remember who I heard this from but it was recently and what he did is he would go in have a successful sales month he was doing some sales for - oh I know who it is it's Ed Mylett, Ed Mylett the really, really famous guy who had tons of success for World Financial Group love that guy great role model to, Ed Mylett would go to Ritz carlton Maybe once every couple months when he started to have some success this guy really came from nothing and he achieved greatness he worth hundreds of millions of dollars now, and he would go to Ritz Carlton and he’d valet his car and he’d stay in the nice place you know couple on a $500, $600 bucks a night probably maybe a $1,000 and he’d stay there for a night or two.
And by doing that he was emulating the lifestyle that he eventually won it so that that territory that millionaire billionaire status was not unfamiliar for him when he got there it tasted like he remembered and I think there’s something powerful to that if we can visualize that success if we can give ourselves moments like that so that once we get there we’re not unfamiliar so that it feels comfortable hey I belong I think that’s how we ultimately get to that next level.
Thomas Alvord: (31:54) And after talking about becoming wealthy I think it’s also important to realize just like there’s different types of capital your life and wealth is not defined on how much money have. You could be you could be poor and have a wealthy like poor financially or not have tons of money and still have a wealthy life and you could be financially super rich billions of dollars and have a very poor life or a life of poverty if your relationships aren’t good, if you’re not happy if you’re not healthy right, so in talking about all these things let’s not lose focus kind of about what you were talking about rights Zach about that harmony with everything on our lives right it’s not just about money but you guys are listening to the podcast or gals or everyone out there listening to this probably because you want to start a business or make more money or learn that’s what we’re sharing but again don’t lose focus that other things are also just as important.
Zach Smith: (32:57) So powerful, so true literally if that’s your focus I want to make a bunch of money I’m going to be a millionaire once I have a million dollars in the bank account when you get there you will be completely depleted of all of the other capital the Funded Today Capital that you need to maintain that level “stayed harmonized now and you will find that not only are you happier but once you get there you’re not going to have to make any changes. You’ll be comfortable with the life that you created for yourself.
Thomas Alvord: (33:29) And really wherever you end up getting you’re still this whatever your goal is if it’s ten million then you hit that and now this want more so really it’s also just being happy and grateful and content for where you’re out of not looking for the next thing because the next thing is not going to make you happy because once you get there you’re going to wait for the next things are really whatever your situation is just being grateful and being happy is again real poverty and wealth is relative so wherever you are out be grateful be happy you are the best person you can possibly be right now, but if you don’t change a year from now you’re not going to be where you need to be two years from now five years from now a decade from now, but right now right now as you’re listening to that podcast you were perfect now it’s up to you to get to that next level whatever that next level means for you. And now my favorite time of the week move product of the week and for me my product of the week might become the most funded flashlight of all time on Kickstarter it is called the economic statistics G1 PRO by DanForce, the DanForce G1 PRO This is the world’s first modular flashlight think survival mode think the only flashlight you’re ever going to need DanForce G1 PRO is a modular customizable flashlight that adapts to any lighting situation. The G1PRO comes with a very high performance chip it will produce up to 1080 lumens high-powered batteries and it even has an emergency power bank, a weapons mount, a bike mount, compass, color filters, tactical pouch lantern fitting, pressure switch and many more useful features check it out that’s the DanForce D-A-N-F-O-R-C-E. This is pretty cool it’s already raised $200,000 still 31 days left love this product love the people behind it as well the DanForce G1 PRO.
Zach Smith: (35:21) For me the product of the week is the “KeyWe Smart Lock” it's Indiegogo InDemand right now and it’s an absolutely amazing smart lock. It’s super slick it’s super powerful basically unbreakable it connects both as Z-Wave and Bluetooth, so you can connect it to pretty much any device and you can open it pretty much in any way you could ever need possible right. You can have an auto lock and unlock based off the time of day you can have your pass code to work you can have a pass code that only works one time if you need somebody to get in your house but then leave and never use it again you can have a guest key that works for a certain duration and then there’s even a mechanical key in case the lock runs out of battery. So that’s the “KeyWe Smart Lock on Indiegogo InDemand check it out. We hope you enjoyed today’s master class if you want to get funded today it starts with the right mindset. Next time we’ve got a really, really special guest for you I’m so excited the Director of Client Specialist of Funded Today Curtis Child is stopping by and you’re not going to want to miss it. We got an internal joke going on and it’s really become somewhat of a prophecy at this point I’m right Thomas?
Thomas Alvord: (36:32) Curtis Child is the Crowd Whisperer he’s got an eye for knowing which new ideas are going to win and which are going to lose if you’re an investor and you want to make sure you’re making the right bets or if your new business owner with multiple ideas and you don’t know which if any to first pursue this episode is for you so we’ll see you next time and remember don’t wait until tomorrow get Funded Today.
Announcer: (37:00) Funded Today is the worldwide leader and rewards based crowdfunding on a Kickstarter and Indiegogo. Combined they have raised over $200 Million dollars and counting for thousands of new ideas and inventions worldwide, if you’ve got an idea for a new product or invention visit www.fundedtoday.com to speak with one of their experts.
References and Resources
- Funded Today: Podcast: “Achieving Goals like Multimillionaires”
- Funded Today: Podcast: “Leveraging the Pareto Principle (80/20)”
- Funded Today: Podcast: “Living Happier by Improving Perspective”
- Venture Beat: Amazon.com 1997 Letter to Shareholders
- Wikipedia: Pareto Principle
- Wikipedia: Think and Grow Rich
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