Have you ever wondered how people become rich? How do some people become billionaire and Millionaire? Do you think there is a formula for their success?
Today I’m going to tell you about Grant Cardone. Grant Cardone is an investor, entrepreneur, and author. And according to some sources, their net worth is more than $ 800 million. He has written a book called “The Millionaire Booklet”.
Now before you think that this article is nonsense and it is a Get Rich Quick scheme, then I tell you a story which is said by Grant Cardone in this book.
Grant Cardone was in a charity event and everybody was paying as much as they could. People were donating their time, their energy and their money. And when all the money was collected, they were still $ 1 million less to complete their goals.
And then after that, a man suddenly came from the crowd and signed a $ 1 million check without thinking anything. Everyone became very scared and only then Grant Cardone realized that every person in the world would like to be like that man. And that’s what I want to tell you through this article.
Grant Cardone has described 8 processes in this book to become Millionaire. And this can be a life-changing for you if you apply it correctly in your life.
1. Take Decision Like a Millionaire
The first step to becoming a millionaire is not the easiest to do but is the foundation of wealth. You have got to get rid of your old mentality. Most of us were taught to play on defense with our money. To be grateful for what we have and to be resourceful to make our money last longer. Many people were told that you don’t need much money or money will make you happy.
While those things might be good values like appreciation and resourcefulness you can understand that they can also limit your earning potential. Being rich and being happy have nothing to do with each other. The most important thing is to make the decision to become a millionaire. Without making that decision chances are you won’t be.
2. Understand the Millionaire Math
In order to be a millionaire, you got to make it real. In order for our goal to be achievable, you got to think of it as a possibility. Think about this about 80% of millionaires are self-made. In 2015 alone about 500k households become millionaires in the United State. That’s good to know but how can you actually earn a million dollars.
Let’s do the math.
You can make a $50,000 salary for 20 years and you’ll make a million.
Or you can a salary of $100,000 and it’ll take you 10 years. Or 4 years if you earn a $250,000 salary or $114 per hour every hour of the day or if you’re feeling the entrepreneur spirit you can get 5000 people to buy a $200 product.
That will make you a million or 2000 people to buy a $500 product or 10,000 people to buy a $100 product. And we can keep going in all the different ways you can actually do it.
Think of all the different ways you can achieve your goal. The best part of this is that you don’t have to just choose one. First, understand that you can do it. Especially today with the internet. Then we can move on the practical strategy.
3. Try to Double Your Income
In order to be rich, you will need to increase your income. Make this your mission. Your goal for every month makes more money than the last month. You can start by increasing the income you already have. If you are a salesman, you gotta sell more. If you’re a personal trainer, you gotta train more people. Then you can start creating other sources of income related to your primary source.
If you start to develop another income unrelated to your current one, the secondary income can distract you from your primary one and then you wind up with only one source of income again. So if you’re a personal trainer, you can start selling workout supplements. For example or start-up a YouTube channel and start selling there too. Do anything you can to prove to yourself that you can increase your income.
The creation of wealth is not about saving or investing. Not at first but to increase your income.
4. Find Your Money?
This is a simple question that many entrepreneurs don’t ask themselves. You don’t need to make money. You need to connect with people who already have it in exchange it for your product or service. These people have your money.
Make a list of the people who have your money and spend as much time as possible with them to make sure you get your money. And since you already did the math, you have a good idea of how many people have your money in order to reach your goal.
Remember the more people you can help, the more money you will make.
5. Stay Broke
There’s something that might happen when your income starts to grow. You start spending more money. Once you start making more money you gotta stay broke. Cardone says that once you start making more money you gotta stay broke. When Cardone was starting to make a little more money he moved all of his surplus money into what he calls his secret accounts. These accounts were out of his reach.
This is what you will have to do. If you don’t trust yourself with money the money gets bored. If it sits around in your checking accounts chances are it’ll get spent. And purposely staying broke and moving all of your surplus money to another reach account you force yourself to produce even more sources of income.
Unlike most people, you won’t increase your spending as soon as your income grows.
6. Save Your Money Only To Invest
Don’t just save to save. Most people save money for their dream house, a new car or even for a rainy day. But Cardone says to save money only to invest. If you look at the average person they are saving money for a rainy day and once they do that they start saving money to buy bigger stuff. But if you look at the people who became rich they saved money to invest.
You can start investing when your primary source of income is strong and dependable. Because every investment has a bit of risk and you don’t want to put yourself at risk. That is one of the reasons why income is the starting point of wealth.
Cardone says that he will not buy a deal if it isn’t a sure thing. If he looks at the worst case scenario and still makes money he goes all in. This is the scariest part and one of the main reasons why many people are not rich because when you start investing, you might deplete your secret account. Because the money that you worked so hard for and spent time building is not in your safe account anymore. But instead is working for you to build more income.
7. Generate Multiple Flows of Income
This is the holy grail of wealth. To have multiple flows of income, you will feel much more confident when you know that the more flows of income you have, the less your wealth and financial security will be at risk and the easier you will sleep at night. A mistake that many people make is that they walk away from sources of income.
Most people try to replace their income. The rich try to focus on adding more flows. Cardone says that you should never walk away from a stream of income no matter how small it is. Unless you absolutely have to.
The second mistake of creating passive income. Cardone mentions is that many people try to build extra flows of income that they’re not familiar with or is unrelated to the first. This causes many people to lose focus on the first one causing them to lose it and now they’re back to only one flow.
Sometimes smaller than the first one. By creating extra flows of income that supplement your initial one, you are able to strengthen both simultaneously. The example of the fitness trainer earlier is a great illustration of this concept.
In the beginning, you work a lot to develop multiple flows of income. But once your income starts to grow, you can make this process faster with money. Because now you have enough to invest. At this point, your focus should strengthen your current flows of income and produce more to secure your financial freedom even more.
8. Repeat Reinforce and Hyperfocus
Developing yourself is one of the most powerful ways to keep growing, not only your income but your life. You should dedicate time to develop yourself and become better in all areas of your life. Whether that is social skills developing a network or being more persuasive or influential and a few words of warning.
Many people with the middle class or even poor mentality will tell you that you work too much. But they might even criticize you because you became a threat to their status quo and their comfort zone.
So just be ready for some of your normal friends to lose interest in you and be ready to meet people who are as hungry as you are. And this was my take on Grant Cardone millionaire booklet Which I think packs a lot of information for a very small book.