Wealth Creation Is Simple But Not Easy!

I had a great conversation with one of my high-achieving internet mentoring clients today, Susanne Jorgensen, of http://www.thesinglesgym.com/ about the oft-repeated concept of “It’s Simple, But Not Easy” - she is really starting to understand what I mean - and I realised that it was so important that it warrants its own article.

I often say to potential Money Gym clients, when out and about speaking, that Wealth Creation is simple but not easy, and what I mean by that is that making money in each of the Four Lanes of the Wealth Highway is really simple to do, but it’s not at all easy or everyone would be doing it!

So why is it so difficult? 

We all know intellectually that we have to get off our “assets” and take action but why is that so incredibly hard to do?  Because our self esteem, our deepest emotions, our limiting and negative beliefs, our incorrect assumptions get right in the way!

Firstly, there is our cynicism to get over.  We really deep down believe that if wealth creation were as simple as everyone makes out, everyone would be doing it and from that we infer that it can’t be true.  It’s a con, it’s a cult, it’s just a scam.  I was the worst!  I often say that my hair and skin have improved enormously since becoming a wealth coach, because I’m not so cynical about better quality beauty products anymore!  In the same way that I invest in knowledge I invest in self-care and I now watch the adverts to see what works!

I never imagined before I got into this wealth creation stuff, that becoming a millionaire were so simple.  I can remember the relief I felt when Gill Fielding (one of Channel 4’s Secret Millionaires and my first wealth mentor) told me that!  She said there is only three ways to make a million (I’ve discovered a fourth since then…) and I thought, great, I can do three things!

For example, I learned from Greg & Andy at Passive, that all you need to do in the property “Lane” is buy one x one bedroom flat, every year for five years, rent it out, and within 10-15 years you will be a millionaire.  If you could buy two x one bedroom flats every year, you would get there twice as fast.  Four a year, and four times as fast.  Then you can live off your equity, tax free, for the rest of your life.

Why would you want to make it any more complicated than that?  But people do, because they believe that it must be harder than that (or it’s not going to work?)

In the business “lane” you just need to build a business that will sell for a multiple of profit, to put a million in your pocket.  So say the multiple in your industry is x10 times profit, if you build a business that makes £100,000 a year profit, you will be able to sell it for a million.  If your multiple is x3 then you need to make £333,333 per year profit.   

See, simple.  So why isn’t everyone doing it?

In fact, it’s quite simple to make a million a year!  I wrote an article on that just recently, working out how you would most simply do it in each of the Lanes:  Property, Business, The Stockmarket and the Internet. 

But is it easy?  No, for all the reasons in this article.  But it’s certainly possible because other people have done it, and more are doing it everyday.

Now we get into the realms of “Ah, but is it possible for ME?” and this is where a healthy dose of self-awareness comes into play.  For example, it would be no good for ME choosing to make a million a year trading the stockmarket because my brain is just not wired right, I’m not analytical or detail orientated enough. 

However, the vision, tenacity and big picture thinking required to build a business that might make me a million a year, might just be possible for me.  And making a million a year in property is certainly possible, as long as I outsource the doing of it (which I do, to Passive Investments).

Another challenge is that there is so much information coming at us from all directions, so we get overwhelmed and don’t know where to start.  And making a start is the most important thing of all.  Just getting the file out, as time management guru Mark Forster always says.  This is where a support group (or mastermind group as they are also known) can be so helpful.  If it’s an email orientated group it can be even better, as they are able to be more objective.  They don’t know you and don’t socialise with you, so they don’t have to worry about upsetting you, and they can be more honest!  Our Money Gym google group is one of the hidden gems in our environment, because as soon as you join, you are right into it - throw your challenges out there and get constructive, helpful, supportive but honest feedback within minutes!

We are so terrified of making the wrong choice we make no choice at all!  On my Ecademy profile I say that my preferred modus operandi is “Ready, Fire, Aim” and I get lots of jokes about how many toes I have left but it’s true.  I did the Kolbe personality test and my preferred method of taking action is FAST, so I have an advantage it’s true, but I can often go off and do something too quickly and then crash and burn.  However, if I try something and it works, then the momentum carries me on.

That’s reminded me about the pain barrier “grown-ups” experience when learning something new - we want to be good at something right away!  When something goes wrong, or doesn’t work as we expect it to, we often just give up, saying “that doesn’t work!”

So the property investor whose property doesn’t let right away, or who experiences problems with boilers or tenants, or the market doesnt’ rise in their area by the expected 10% per annum THAT YEAR, says “that property investing lark, tried that, and it doesn’t work” while the more experienced investor plans for those eventualities and quietly gets on with it, knowing it’s working for them and will continue to do so.

Or the internet marketer says “we are not selling any ebooks - this internet marketing doesn’t work” meaning that they are selling the odd one or two, but not as many as they want to.  When you analyse the figures you can see that the levels of traffic are so low, no wonder they are not selling the quantities that they would hope too.  Or the traffic is right, but the sales letter is wrong, or the sales letter is right, but the “buy now” button has the wrong code on it.

To be continued later this week….I would love some comments (click the comments link below) and to hear about your challenges if this strikes a chord?