Money Mindset – Financial Success Not About Money?

Many people think that wealth comes from owning your own business, holding a high paying job, investing in real estate or the stock market, or perhaps even winning the lottery. But you’ve only got to look at the number of people who fail financially to realise those strategies aren’t as reliable as they seem on the surface.

Too many businesses to count close their doors in the first five years or operation, the stock market is volatile, fortunes have been both made and lost in property booms and high salary earners are just as likely to be high spenders.

What’s the solution then?

IMG - Paul Blackburn According to Paul Blackburn, Founder of Australian training company Beyond Success, the secret to accumulating wealth is to make sure it’s not about the money. He says, “the first step in becoming independently wealthy is to recognise that money doesn’t matter, despite it probably being the biggest motivator for most people wanting to go into business. While it may be a great ride to getting rich, the most important lesson you can learn is to measure your success in terms other than monetary ones. Money is a scorecard. It won’t make you a better person and it won’t solve your problems. Millionaires know this. That’s why they are millionaires. They love what they do, and the money is just a bonus.”

Interesting thought – and Blackburn isn’t the only one saying it.

Money magazine calls it “seeking something bigger than getting rich”.

IMG - Donald TrumpDonald Trump, world famous entrepreneur and property magnate, says, “Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game.”

Blackburn goes on to talk about the importance of a positive mindset when it comes to money. He says, “Our early childhood messages about money are buried in our subconscious, and they can influence our behaviour in ways of which we aren’t even aware.”

He suggests that while we all need money, and have plenty of good uses for it, our focus needs to be on other measures of success if we plan to do really well. The need for challenge, excitement, creativity and personal satisfaction – these are the things Blackburn encourages us to bring our attention to.

Although Blackburn emphasises the importance of mindset when it comes to money, and he certainly has some insightful things to say about that, he’s not all talk of affirmations and meditations. He and his company have an arsenal of success strategies that is heavily loaded with practical tools anyone can use to improve their financial lives.

He might encourage us to master our beliefs and ensure it’s not about the money, but he understands we’re going to have to deal with the practicalities of finances and offers great tools to help us do that.

We’ve found some really great, share worthy things we thought you’d like. All of them come from Blackburn’s company Beyond Success…

The first is an absolutely awesome free tool Beyond Success uses with their clients. It’s called the Debt Terminator. Featured below are an except from a book explaining the tool, the instructions on using it and the link to download your copy of it!

Beyond Success Debt Terminator

If I could show you how to be debt free in 5 to 7 years counting your credit cards, the car and the house and you don’t have to change your job – would you want to know about it?

Or would you think there has to be a catch?

The answer to that question will be quite revealing.

If you think there’s a catch it’s time to get your money beliefs sorted out. Here is a typical example for demonstration purposes:

Debt Terminator
It’s simple really but we just don’t get shown during our normal education.

1. Find a way to get your hands on $400/mth. You can do this by cutting down waste, chopping into lifestyle (Foxtel, beer, chocolate, cigarettes) or just plain pulling beers in a pub on Friday and Saturday night.

2. Put this extra money onto debt #1 and pay it out quickly.

3. Once the initial debt is removed, take the regular payments on #2; add the payments you were making on #1 and the $400. This will also pay down the second debt quickly. Check the spreadsheet for exactly how many months.

4. Now that there are two of your initial debts out of the way, make the normal repayments on # 3, along with the payments that you were previously making on #1 & #2 AND the $400. You’ll see this third amount eradicated with amazing speed compared to the way it was going to go under normal circumstances.

5. Rinse and repeat all the way down your list. You’ll be debt free in 5 – 7 years.

The bank will lend you whatever you want (up to 80% of the value of your house – probably) for a share or property portfolio and you can quit pulling beers forever.

Be warned, your mates will call you lucky or proclaim that you lost out on a heap of ‘lifestyle’ pulling those beers.

You’ll notice that pretty much any Aussie with an ounce of go in them could use this system but 95% of the population will retire and be dependent on a pension – something governments have been saying for 20 years that they can’t afford. So the price differential is this.

Work a bit smarter for 5 – 7 years and be set for life or just keep plugging away in the standard fashion buying big screens and new cars and retire to life of pulling beers until you die – just to feed yourself.

Here’s a look at the instruction sheet they provide with the software:

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Click below to get  your copy of this great little tool:

Debt Terminator

We’ve tested this program out and it’s genuinely easy to use. It does all the working out for you – all you need is your financial information and a copy of Microsoft Excel.

If you’re interested in what Blackburn has to say about money mindset, there’s a few things worth checking out.

Below are a few of our favourite quotes from one of Blackburn’s books, Monkey See Monkey Don’t: What you need to know in today’s world that your parents didn’t know to teach you.

“It’s simple really. Money is no more than an idea, and as such responds beautifully to a change in mindset. The biggest issue we have with money is our relationship with it; most people have an emotional relationship with money when they need to have an intellectual relationship with money.”

“Above all, embrace the idea that all wealth is created – not stolen, moved or distributed based on worthiness. Opportunities for creating wealth are everywhere – so get out there and get on with it!”

“Success in the financial arena relies on our ability to realise that money in itself is just an idea. We don’t have to look at a fifty dollar note for too long to realise it’s just printed plastic with an intrinsic value of a few cents. The value of a currency is the result of an agreement between us all – we use it as a medium of exchange for goods and services.

If that agreement fails, the currency collapses because it reverts to its intrinsic value – printed paper or plastic. When this happens the population almost automatically switches to using a medium of exchange that has more stability. When the Zimbabwean currency collapsed the government started printing 100 billion dollar notes (which would only purchase a few groceries), but by the time they were in circulation people had started using US dollars.

What does this mean for us?

The bottom line is that if we are to succeed financially, money can never be more than an idea. The idea of money is fantastic in theory, but it does have a few practical downsides we need to be aware of if we are to master it. And let’s face it – money is either a master or a slave.”

He’s got another great book titled, Resolving The Money Riddle: How I Went From Sweet FA To $10 Million Per Year In 18 Months. You can download the first chapter for free if you want to try the book out.

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A quick look at that chapter:

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You can download your copy of that chapter by clicking here…

Click here to get the book on special.

The budget template that Beyond Success recommends comes from Harvard bankruptcy professor Elizabeth Warren.

The basic idea is to separate our wants from our needs by creating a percentage budget. Let’s have a look at the Beyond Success budget template and what they had to say about it:

Budget Template Budget Template pg2

This budget is designed to work for any income level. Its’ purpose is to help you live your life while building financial security and minimising the chances a setback will send you over the edge. It provides the balance that will give you a long-term sustainable approach to your finances.

The template is this, as percentages of your total income:
50% needs
30% wants
20% debt reduction and savings

Needs are must have expenses you cannot do without – things like rent or mortgage payments, utilities, transport, insurance, food, education, loan payments and childcare. For an expense to qualify as a need, ask yourself if you can do without the purchase for six months. If you can live in a safe and dignified way without it, then it is not a need.

Wants are holidays, gifts, entertainment, clothes, eating out etc.

Debt reduction and savings includes consumer debt, emergency funds, superannuation contributions and savings accounts.

Limiting your must have expenses to fifty percent of your income can be very difficult for most people, but it is worth it in the long run. Keeping within that limit gives you flexibility, helps you figure out what you can really afford and provides balance.

Whatever you do, don’t get discouraged. Remember, the percentage budget is a goal to work towards, not something you’ll achieve overnight.

Beyond Success has also made available an audio recording of a coaching call from one of the programs Paul Blackburn personally runs. The program is titled “The Big Five” and covers a lot of ground in a short space of time, including money mindset.

Blackburn starts the call by talking about his passion for educating people about money mindset. He says he feels money is one of the most misunderstood subjects in the world. Over the course of an hour, Blackburn lays out four key skills and secrets, then finishes with the one technique he feels it is most important we all master.

That technique?

Being effective rather than simply efficient. According to Blackburn, there are a number of key things you need to be doing so you can be consistently effective. In short, they are:

• Create a success ritual

• Keep your mind on the big picture

• Work in brief periods of intensity, then break

• Keep your education relevant and up to date

• Choose your peer group carefully

• Get a good mentor and listen to them

If you’d like to listen to the full recording (it comes highly recommended from us!), you can download here:

Click here to download

Finally, if you’re still looking for more, you can check out Paul’s blog on the Beyond Success website. It isn’t only about money, but there’s plenty of great content there. This is one of our favourites:

IMG - Shark TankHave you seen Shark Tank? It’s got me hooked. And my GM (aka daughter Julie) tells me the US version is even better. Budding entrepreneurs who pitch their dreams to a panel of seasoned players who’ve made it big in the business world. It’s fascinating to watch as these guys learn what works…and what clearly doesn’t.

And while it’s important to know your numbers when you’re standing in front of a panel of potential investors, it’s equally important to know your market. What strikes me in watching this show is just how many people have failed to do their market research. Sure they might have a great product, but is anyone asking for it? In other words, do they even have a market. Take the coffee guy for instance. Obviously he loves his coffee. But how many kids are going to want espresso written across the front of their teddy bear?

In developing a new business idea one of the most important things to consider is what the market is asking for. What do your potential buyers actually want? What is it that will meet their need, fix their problem, take away their pain. And it may be that the brilliant idea you thought you had is actually not a goer at all. Because nobody really wants it.

Having your own business is the best way I know to break free of selling your time for money. But as Stephen Covey says ‘First things first’. Before you go throwing thousands of dollars at your great idea, check out what people are asking for.

And if they’re not asking for your product, chuck it away now – and go get another one they really do want. Only then can you begin to develop it.

So what’s your big idea?
Have you done your market research? http://www.beyondsuccess.com.au/shark-tank/