Once you have decided upon your values, vision, mission, purpose, and goals, the next step is for you to analyze your starting point. Exactly where are you today, and how are you doing, in each of the important areas of your life, especially as they relate to your goals?
Jack Welch, CEO of General Electric for many years, once said that the most important quality of leadership is the “reality principle”. He defined this as the ability to see the world as it really is, not as you wish it were.
If you want to be the best you can be and achieve what is truly possible for you, you must be brutally honest with yourself about your point of departure. You must sit down and analyze yourself in detail to decide exactly where you are today in each area.
We have passed from a world based on material limitations into a world that is determined by mental concepts. We have moved from the age of things into the “Psychozoic Age”, the age of the mind. Wealth and opportunities are contained more in the person you are and the way you think than in the assets you have acquired in life so far. Your future lies more in your ability to apply your mind and intelligence to your work and your life than it does in your current job or situation.
To achieve something you’ve never achieved before, you will have to think in ways you have never thought before.
Throughout your life, you must constantly thinking about all the things you can do, in every area, to increase the probabilities that you will be successful in achieving your goals. You should leave nothing to chance. You should refuse to wish or hope, or trust to luck. You must take control of your situation. You are responsible.
Though there are occasions when a firm hand is needed, I learned early that one of the most important qualities of a leader is listening without judgment, or with what Buddhist call bare attention.
In The Tao of Leadership, John Heider writes:
The wise leader is of service, yielding, following. The group member’s vibration dominates and leads, while the leader follows. But soon it is the member’s consciousness which is transformed. It is the job of the leader to be aware of the group member’s process; it is the need of the group member to be received and paid attention to. Both get what they need if the leader has the wisdom to serve and follow.
In Zen it is said that the gap between accepting things the way they are and wishing them to be otherwise is “the tenth of an inch of difference between heaven and hell”. If we can accept whatever hand we’ve been dealt – no matter how unwelcome – the way to proceed eventually becomes clear. This is what is meant by right action: the capacity to observe what’s happening and act appropriately, without being distracted by self-centered thoughts. If we rage and resist, our angry, fearful minds have trouble quieting down sufficiently to allow us to act in the most beneficial way for ourselves and others.
Imagine that you’re out at sea on a boat, voyaging to a far-off destination. Your boat springs a leak, which immediately becomes your priority. You jump down and start bailing water to prevent going under, but forget that nobody is left to navigate the ship. One day, after doing nothing but bailing water for who knows how long, you poke your head over the bow and wonder where the heck you are and how you got there. This is the purposeless life. People can become so preoccupied with just staying afloat that they fail to realize that nobody is at the helm.
Unfortunately, clarifying purpose takes time – quiet, uninterrupted time – which is something many of us feel we don’t have. We rush from one obligation to another without a “50,000 foot” view of where we’re going. It may seems self-indulgent to stop and reflect on questions of meaning and purpose, but journey will demand it.
The most surprising feature of business as it was conducted was the large attention given to finance and the small attention to service. That seemed to me to be reversing the natural process which is that the money should come as the result of work and not before the work.
My idea was then and still is that if a man did his work well, the price he would get for that work, the profits and all financial matters, would care for themselves and that a business ought to start small and build itself up and out of its earnings. If there are no earnings then is a signal to the owner that he is wasting his time and does not belong in that business.
Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will urn 5 per cent, or 6 per cent, he ought to place it where h can get that return, but money placed in a business is not a charge on the business – or, rather, should not be. It ceased to be money and become, an engine of production, and it is therefore worth what it produces – and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.
I determined absolutely that never would I join a company in which finance came before the work or in which bankers or financiers had a part. And further that, if there were no way to get started in the kind of business that I thought could be managed in the interest of the public, then I simply would not get started at all. For my own short experience, together with what I saw going on around me, was quite enough proof that business as a mere money-making game was not worth giving much thought to and was distinctly no place for a man who wanted to accomplish anything. Also it did not seem to me to be the way to make money. I have yet to have it demonstrated that it is the way. For the only foundation of real business is service.
- Step number one is to have a desire. You must have an intense, burning desire for your particular goal.
- Believe. You must absolutely believe, deep in your heart, that you deserve the goal and that you are capable of attaining it.
- The third step to goal achievement is for you to write it down. A goal that is not in writing is not a goal at all.
- Analyze your starting point.
- Decide why you want a particular goal in the first place. Make a list of all the ways that you will personally benefit by achieving that goal.
- Set a deadline. If your goal is big enough, break your deadline down into sub deadlines. When you break down your goals into daily and hourly amounts and activities, you will be astonished at how much more you get done.
- Determine the obstacles that are standing between you and your goal. You can apply the 80/20 Rule to the obstacles and difficulties blocking you from achieving your goals. This rule says that, in most cases, 80 percent of the reasons you are not attaining your goals are internal. They are within you rather than in the world around you. Only 20 percent of the obstacles are contained in your external situation or in other people.
- Determine the additional knowledge, information, and skills you will require to achieve your goal.
- Determine the people whose cooperation and assistance you will need. Relationships are everything.
- Make a plan to achieve your goal. A plan is an organized list of tasks that you will have to complete to get from where you are to where you want to go. A plan is a list of activities organized by time, sequence, and importance.
- Visualize your goal each day as if it were already attained. Imagine the pride, satisfaction, and happiness you would experience if you were already the person you wanted to be, with the goal that you want to enjoy.
- Back everything you do with persistence and determination. Resolve in advance that you will never give up. You must decide, in advance, that nothing will stop you. Then, when you face the inevitable obstacles and difficulties that occur, you will be psychologically prepare. You will bounce rather than break.
The investment had to make sense today, not tomorrow. I say this because too many people have the buy, hold, and pray strategy. Rich dad always said, “Your profit is made when you buy, not when you sell.” Every property we bought had to have a positive cash flow on the day we bought it, and it had to have a positive cash flow even in a bad economy.
Know the difference between being an investor and a trader. We were investors when we were willing to buy and hold the properties for their cash flow. We were traders when we knew our entry as week as our exit strategy. In other words, an investor buy to hold. A trader buy to sell. It you want to retire rich, you need to know how they are different and how to be both.
If you can understand this principle of investing, you will understand what the velocity of money means. It means you want your money back as quickly as possible so it can be reinvested to acquire other assets.
Robert T. Kiyosaki