What makes you wealthy ( Emanuel James Rohn )

0:00Hey, it's a straw baby. Why can't you click, sir, Marie Anderson? How y'all doing? How's it going today? I hope everybody is doing well. If you're not doing well, let's find a way to get well, look well, and of course, be well. Right now we get ready to listen to Jim Rune. What makes you wealthy? Here's usually the philosophy of the rich. I knew philosophy rich invest their money and spend what's left. Let me give you sort of the simple philosophy of the rich and the poor. Here's the philosophy usually of the rich and the poor. Poor people spend their money and invest on the left. What's left? What's left? What's left? What's left? There's usually what? Not much left. Not much, not much.

1:01Here's usually the philosophy of the rich. The rich invest their money and spend what's left. It's just a little turn of semantics. A little turn of semantics is like the turn of the set of the sale. It takes you in a whole different direction. Find a good place in one year or a place of average, mundane where you don't really want to be. Just that little simple shift of philosophy. Here's the key is the key. Think like the rich. Invest your money first and spend what's left. Don't spend your money and that's what's left. Think like the rich. The whole key is like styling style. When I gave this little class one time at a school class, the teacher said, you know, you must not promise people that with a little bit of investment every month that they can, you know, make their fortune because people nowadays are overloaded.

2:02They're spending everything they make. You know, the standard of living is right up there. And I said, well, this is where it all begins. For people spend their money and it takes 20, 20, 20, 20. The rich invest their money and it spend what's left and what's left and what's left. I said, could we think of someone and this was a long time ago, of course, that makes $2,000 a month. She said, yes, no problem. We can probably find someone that makes $2,000 a month. I said, all but this couple, this family tell you it takes to pay all the bills and just keep their head a bit more. I said, well, 2000, I said, could we possibly find somebody not far from here that makes $2,500 a month? Right? Maybe even both working combined. $2,500 a month, $500 a month more. What would this family say it probably takes to pay all the bills

3:07and keep your head above water? What would they say? $2,500. So I said to her, what happened to this $500? How did it disappear? Why did the investor door some reason appeared to find the return is unbelievable? She said, I never thought about that. Four people spend their money and invest what's left. The rich invest their money and spend what's left. It isn't the state of America's economy that makes the difference in your philosophy. Here's usually the philosophy of the rich, a new philosophy.

4:13The rich invest their money and spend what's left. $1. Here's what I suggest that kids do with a dollar. I've got them all persuaded that it's okay to become rich and powerful, financially independent. And if you've got a dollar, I tell my kids, here's what you do with it. To begin with, never spend more than 70 cents. And here's a good plan for the remaining 30 cents. I suggest you take 10 cents out of every dollar and give it to charity. Here's why nothing teaches kids character better than generosity.

5:17It helps you teach so many things, generosity, supporting worthy projects, taking a piece of what you've been blessed with and turning it back to help people who can't help themselves, worthy projects, charity. And the time to start is when the amounts are small, I'm telling you that if a kid understands this, he'll give you a dime out of every dollar once they understand. And it's easy to give a dime out of a dollar. It's a little tougher to give 100,000 out of a million. Somebody says, oh, if I had a million, I'd give 100,000. I'm not so sure that's a lot of money. We'd better start you early so you'll be ready when the big stuff comes. So 10 cents for charity. Here's the next 10 cents. 10 cents for active capital. Active capital. Active capital to try to make a profit.

6:18We live in a capitalistic society where the money belongs in the hands of the people not in the hands of the government. So you should turn part of your wages into capital and turn capital into a profit making enterprise. It can be a piece of property. It can be anything by sale. It doesn't matter what it is. Try to show a profit. And this is where I teach kids how to have two bicycles, one to ride and one to rent. Active capital fund. Because here's what I teach kids. Kids will be happy to learn this. Profits are better than wages. Kids need to know that. The benefits of living in a capitalistic society. Kids can start a cool aid stand before they can get a job. Kids can clean out their rooms, have a garage sale to earn some profit. It doesn't take a kid long to figure out that profits are better than wages.

7:19And that's what America is all about. A profit. And here's what's exciting about making a profit. You can make a profit long before you can legitimately earn a wage. There are no limits. Your profits can sometimes accelerate much faster than your wages. Teach your kids early. Profits are better than wages. Wages make you a living. Profits make you a fortune. The formula sounds simple. The harder part is having the discipline to actually live by it. That's why we created the self-discipline hacks playbook. A practical system for building consistency, controlling your habits, and following through on the decisions that move your life forward. You'll find it linked in the episode description. Now, back to the lesson. And we should all try our hand at making a profit since we live in a capitalistic society. How long will it take to triple your wages currently? A while?

8:22But profits? There's no limit. My gosh, once I understood this, I went bonkers. Profits. The whole world benefits if we all leave more profit. Leave a profit. Make a profit. I talked to a man who rents a lot of apartments. He said, Mr. On, you wouldn't believe it. Most people, when they leave the apartment, it's trashed. I said, you've got to be kidding. He said, no. What a reputation. Everything you touch turns to trash. Gets dirty. Got to turn that around. One of the best ways to train yourself is to leave a profit. A friend of mine has made money on every car he's bought. Why? Because when he traded it in or sold it, it was always better than he found it. It was always better than he found it. The key for parents is to touch a life and leave it better than you found it.

9:25Touch a business and leave it better than you found it. Touch a job and leave it better than you found it. Whether you stay six weeks, six months, six years, always leave it better than you found it. Make a contribution. Leave a profit. What a world this would be if everybody left a profit. Not a piece of trash. A profit. Now, here's the third 10 cents. And you can become as wealthy as you want. The first 10 cents goes to charity. The second 10 cents goes to active capital. And the third 10 cents is for passive capital. Passive capital means let somebody else use some of your money. You're the passive partner. They're the active partner trying to make a profit. They'll pay you interest. And one of the most valuable things for your future is called compound interest. Nothing more valuable.

10:27And I suggest 10 cents for passive capital. Let someone else use it. Pay you interest on it. Now, here's what else I teach kids. It's a Bible philosophy. And here's what it says. The borrower is servant to the lender. Excellent information. The borrower is servant to the lender. And if you've taught this properly and asked kids what do you want to be, here's what they'll tell you. They'll say I want to be one of those lenders. That's the power position. If you're interested in power for the future, influence for the future. Being ruler over much, I'm telling you the key is to be one of those lenders. Not a spender. No. A lender. Now, if you can't reach this little formula right now, if you can't start here, here's what you do. Start where you can and work toward it. 70, 10, 10, and 10 is the ideal.

11:30And it doesn't matter if you're trying to lose weight or to get your health in order or to get your finances in order. Here's the key. Set up the ideal and work toward it. Set up the ideal and work toward it. Qualities that can increase your chances of success. Two very important qualities. Number one, patience. Number two, persistence. Let's talk about patience for a moment. Patience is what? Learning to handle the passing of time. Now, once you've had an appetite for success and you start going for it, now you've got to learn to handle the passing of time. Here's why. It takes time. It takes time to build a corporate work of art. It takes time to build a symphony orchestra with flawless music and harmony that sends you on flights of ecstasy. To be remembered long after the orchestra has shut down and the lights have gone out.

12:31It takes time to put harmony together. It takes time to build a life. It takes time to build an enterprise. It takes time to get through school. It takes time to develop and grow. So give your enterprise time. Give your business time. If you're in management, give your people time. If you're a parent, give your kids time. Don't be too short, too quick. Give them time. Now, not forever. But time. It takes time. Here's the ultimate challenge. You've got to have patience with yourself. It takes time to make changes in habit and discipline. It takes time to correct old errors in judgment. And to finally give up old blame and pick up new responsibility. I'm telling you it took me some time. I used to blame the government and blame taxes and blame the company and blame the marketplace. It took me a long time to give that up.

13:32That was a pretty comfortable list to explain my empty bank account. Penies in my pocket. Nothing in the bank. Not doing well. Embarrassed by my situation. It took time to give that up. And only blame myself. That took a while. So have patience with yourself. Number one. And number two, while you're dealing with the passing of time. Number two is to keep doing it. Be persistent. Be tenacious. Keep doing it until. As long as you are patient and persistent. It's hard to elude success. As long as you maintain patience and persistence, tenacity. There's only one person, just one person that will draw the line between success and failure. One person. And that person is you. So be patient. Be persistent. You need both patience and persistence together. And here's why.

14:33Lack of patience is probably the worst enemy of ambition. While your ambition keeps growing, keeps moving, keeps looking for new ways to succeed. Impatience tends to grow frustrated. Impatience won't allow for persistence. Impatience wants to give up. Impatience calls discouragement failure. But your ambition won't let you give up so easily. Not if you're persistent. What others may call failure. Ambition calls a learning opportunity. A chance to make adjustments along the charted course to success. Ambition knows something else too. Ambition knows that the longer the achievement is incoming, the more valued it is. So let me give you a few aspects of patience. Some examples that might help illustrate just how valuable it is. There are six aspects of patience. And here's number one. Knowing when an opportunity is right. And when more preparation is needed.

15:36Let's say you're opening up a restaurant specializing in fresh seafood. You're all excited to get going. Get the money coming in instead of it all going out. You're all excited. So because you're all excited, you want to open early. Your impatience gets the best of you. And so you do open before your scheduled grand opening. Customers start coming in. They're all excited about this new great restaurant. And everybody wants some fresh seafood. They're all ordering fresh seafood from the menu. But now you panic. You haven't got any. You're not ready. The fresh seafood chip won't come in for a week. Impatience has just killed the restaurant. Now let's say you've got a great new product that's scheduled to come out on the market in the next several months. Everything's going according to plans. So you start planning your ads. Start planning big public relations events. You're so sure that it's going to happen that you said a date.

16:39The engineers told you that the product's not ready. But you're sure it will be. You start planning everything. Invite lots of people, influential people, buyers of your product. You're so excited that you went ahead without the product actually being done. Come the week of the grand unveiling. The engineers come to you and say it still doesn't work. Your impatience just lost you credibility in the marketplace. That's number one. Be patient in knowing the difference between when the opportunity is right. And when more work needs to be done. Here's number two. Remain alert. Even if opportunity doesn't come right away. Make sure that your patience allows you to keep your eyes open and ready for opportunity. Keep looking. Be patient. Number three. Keep preparing for opportunities. Even if there's a delay. Even if things aren't going just the way you think they should. Keep your disappointments at bay.

17:40And keep getting ready for opportunities. Be prepared. Always be prepared. Don't let impatience allow you to give up. Number four. Inpatients. Take the little setbacks in stride. Take the little successes in stride. Don't let small disappointments discourage you. Don't let the little successes dilute you. Avoid the emotional role-ecoaster that will always, always disrupt your plan. Number five. If you're waiting on the decisions of others, be patient. You cannot control the decision-making abilities of others. You cannot control their timing. If your project was to come up before the board in one meeting and time ran out. And they moved your project to the top of the agenda for the next meeting. Be patient. Don't be frustrated about what you have no control over. And number six. Take a vacation from your ambition.

18:42If you've been working day after day, week after week, month after month without a break. Take a vacation from your ambition. The patient person, secure in their ambition, knows that the drive and ambition will still be there. Even after some time off. As a matter of fact, with some time off, the ambition will have a stronger pull than ever. When you come back to it. Persistence is patience in action. Persistence is creative. Always looking for new opportunities. Persistence is courageous. It doesn't give in to fear. Persistence is hopeful. It doesn't let discouragement through the door. Persistence is positive. It keeps you on track with your plans and your goals. And the last thing that persistence is is cheerful. Not gloomy. Cheerful. Persistence knows that gloom and depression and disappointment waste energy.

19:43Cheerfulness creates it. Patients and persistence are both required for success. And as we end this side, please remember that success and failure are also intricately intertwined.