Let’s talk about the formula for getting rich.
If you‘ve been struggling to save money no matter how hard you try, this episode is for you! Today I’m sharing something I learned from Bob Proctor a long time ago. It’s called the formula for getting rich.
What will blow you away is how incredibly simple it is – yet it’s unbelievably powerful in turning things around. It’ll take you from feeling like you’re not going anywhere financially to suddenly powering ahead.
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When I first started my personal growth journey, I was broke and on the bones of my butt. So of course, I was a personal growth junkie. I went to every seminar, I read every book and all the courses (that I couldn’t afford and didn’t even complete)
But one of the best things I ever did was ‘You Were Born Rich’ by Bob Proctor. And the formula for getting rich is one of the most profound teachings from that course.
When I finally understood this, it turned my world upside down. I went from feeling like there was never enough money to save or get ahead, to the total opposite being the case.
So before we get to the formula for getting rich, let’s talk about the formula for staying broke. This is what most people do.
Here it is:
INCOME – EXPENSES = SAVINGS
They take their income, subtract all their expenses then save what’s left. Now, what do you think the problem with that might be? That’s right – usually there’s little or nothing left .
Because Parkinson’s Law kicks in. Parkinson’s Law basically says that the amount of resource required to accomplish any given thing is the amount of resource available. This applies to all sorts of things, including money. It means that if I have $5,000 available to go on a holiday, I’ll go on a $5,000 holiday. And if I have $50,000, I’ll go on a $50,000 holiday.
For most people, as their income grows, their expenses grow to match. They get a pay rise and think, “Great! I can upgrade my car, live in a fancier house, update my wardrobe.” And the money quickly disappears.
Then they’re left wondering why they’re not getting ahead financially.
I saw this over and over again in my finance business. People on higher incomes had much higher expenses. More expensive cars, bigger car loans, bigger homes, bigger mortgages. In fact, the people on lower incomes often did better in terms of getting ahead, saving and creating wealth for themselves.
Maybe that’s because they knew what that I’m about to share with you….
But first I want to hear from you!
Let me know in the comments if this is ringing some bells. Have you also found that extra money kind of just disappears for you because Parkinson’s law kicks in?
Okay, let’s move on to the formula for getting rich (cause I know that’s what you want to find out about)
But before we go there, let me point out that this is mainly a shift in perspective. It’s a shift in attitude and mindset that needs to be mirrored in the way you MANAGE your finances.
So here it is – the formula for getting rich:
SAVINGS + EXPENSES = INCOME
So you might notice that this includes exactly the same 3 variables as the formula for staying broke. We’ve just shuffled them around – but the meaning is totally different.
What it now says is that the amount of money for savings, ie, wealth creation, PLUS your expenses needs to equal your income.
So although it’s the same three variables, we’ve got a total change in focus, perspective and mindset because we’re not just saying, “Hey, I’ll save what’s left,” anymore.
What we’re now saying is, “I have a financial goal, wealth I want to create for myself and I’m going to prioritize that. And I have expenses just like everyone else. And so if I add those together, that gives me the income goal I need to shoot for.”
And guess what? Chances are, if you’re reading this, you’re a business owner or entrepreneur – which means your income potential is unlimited!
Even if you don’t have a business, you can have a side hustle or invest. You can do all sorts of things to increase your income. And by shifting things around, you’re prioritizing what’s most important to you and creating a goal and a focus to help you achieve it.
By approaching things through the lens of the formula for getting rich, you achieve 3 very important things.
Number 1:
A mindset shift. You prioritize your goal and can set an income target to help you achieve it. And when you have the vehicle of a business, you’re able to plan for success. By now prioritizing growth and financial stability, you’ve shifted your mindset.
Number 2:
Looking at your finances via the formula for getting rich also helps you set up your money system to achieve those goals. You can set things up to prioritize that goal and chip away at it until it’s achieved.
Number 3:
The third really important thing is that you’re no longer just leaving your financial destiny to chance. You’re not plodding along like an unconscious victim anymore. You’re putting yourself in a position of power and taking charge of your financial future and destiny.
What’s really cool is that at the end of the day, this is nothing more than a shift in perspective. You’ve simply chosen to no longer look at life one way & chosen to look at the same thing in a totally new way.
It’s just a shift in perspective, but it changes everything.
To be able to implement the formula for getting rich, you need to have the correct infrastructure in place. If you haven’t done it yet, be sure to jump on my free workshop to help you organize and tidy your banking.
These 35 minutes will help you get the right structure in place to implement the formula for getting rich. We also cover important principles to help you succeed in your business and achieve your financial goals.
The link is below so you can get started right now.
There are also a couple more episodes below you might want to watch next.
It’s your time to create more abundance – both inside & out.
xx Miriam
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