For most, escaping the 9-5 lifestyle is simply a dream that will never come to pass. But for those who do attempt to live like a millionaire without having to be a millionaire first, there is a predictable and repeatable process for breaking the shackles. While it was key that you understand the principles of 80/20 and Parkinson’s Law, it is imperative for you to learn the DEAL to being a part of the New Rich.
In order to take advantage of the shift in the new global economy, we have to unpack the process it takes for a person to enter the strange and unfamiliar world of the New Rich. From here on out, you are going to be a DEAL maker and conveniently this will also serve as the structure of our new workflow. DEAL is an acronym: Define, Eliminate, Automate, Liberate.
Today we are only going to focus on the first step in the personal transformation process: Define.
To be a part of the New Rich we first have to explore the difference between what the New Rich (NR) value as compared to Deferrers (D). A deferrer is a person who works their whole life for the pot of gold called retirement at the end of the rainbow. But retirement is only one objective/goal that differentiates the New Rich from the Deferrer. Let’s look at some of the other key distinctions that Tim elucidates for us:
D: To work for yourself.
NR: To have others work for you.
This subtle difference of who does the work is a real mind bender for someone who works at the office. But let’s keep going.
D: To work when you want to.
NR: To prevent work for work’s sake, and to do the minimum necessary for maximum effect (“minimum effective load”).
One of my favorite quotes by Frederich Nietzsche says something that man uses work as a form of entertainment. You aren’t working because you are simply bored are you?
D: To retire early or young.
NR: To distribute recovery periods and adventures (mini-retirements) throughout life on a regular basis and recognize that inactivity is not the goal. Doing that which excites you is.
Have you ever considered breaking up your retirement years and distributing them across your whole life? This thought alone got me buying a one way ticket to Hawaii the first time I read it. The second time, I went to Barbados to compete in a grueling mountain terrain half-marathon called ‘To Hill and Back’, which happened to be one of my fondest memories. The third time I read it, I bought plane tickets to Mexico for a month long excursion with my family.
D: To buy all the things you want to have.
NR: To do all the things you want to do, and be all the things you want to be. If this includes some tools and gadgets, so be it, but they are either means to an end or bonuses, not the focus.
Stuff really doesn’t make life better. Case and point: if my newborn son is more entertained by wrapping paper instead of the actual present, chances are that you and I are not all that much different.
D: To be the boss instead of the employee; to be in charge.
NR: To be neither the boss nor the employee, but the owner. To own the trains and have someone else ensure they run on time.
There really is nothing like being the boss. But I really enjoy paying the boss to do what he does best, being accountable to me for the results that I am looking for.
D: To make a ton of money.
NR: To make a ton of money with specific reasons and defined dreams to chase, timelines and steps included. What are you working for?
Money is entirely worthless if you aren’t giving it purpose for being in your life. And this is more than just giving your money a budget or putting it to work through investments. This is about understanding that there are experiences in your life that you want and trading money for those experiences is more important than simply having the money.
D: To have more.
NR: To have more quality and less clutter. To have huge financial reserves but recognize that most material wants are justifications for spending time on the things that don’t really matter, including buying things and preparing to buy things. You spent two weeks negotiating your new Infiniti with the dealership and got $10,000 off? That’s great. Does your life have a purpose? Are you contributing anything useful to this world, or just shuffling papers, banging on a keyboard, and coming home to a drunken existence on the weekends?
I hope you felt that mic drop moment too.
D: To reach the big pay-off, whether IPO, acquisition, retirement, or other pot of gold.
NR: To think big but ensure payday comes every day: cash flow first, big payday second.
I have fretted over this key distinction for a long time. We all want the big payday, but what we all really crave is to know that my income requirements are being taken care of by the cash I made today – and every single day after that.
D: To have freedom from doing that which you dislike.
NR: To have freedom from doing that which you dislike, but also the freedom and resolve to pursue your dreams without reverting to work for work’s sake (W4W). After years of repetitive work, you will often need to dig hard to find your passions, redefine your dreams, and revive hobbies that you let atrophy to near extinction. The goal is not to simply eliminate the bad, which does nothing more than leave you with a vacuum, but to pursue and experience the best in the world.
The reason that the New Rich and Deferrers diverge so radically in terms of goals and objectives is that they value completely different things and they orient their activity around entirely different beliefs. Conveniently, Tim has has listed 10 beliefs that the New Rich have that differ from Deferrers, and it is these beliefs that will ultimately begin the process of jettisoning a person (you) out of the office:
- Retirement Is Worst-Case-Scenario Insurance.
- Interest and Energy Are Cyclical.
- Less Is Not Laziness.
- The Timing Is Never Right.
- Ask for Forgiveness, Not Permission.
- Emphasize Strengths, Don’t Fix Weaknesses.
- Things in Excess Become Their Opposite.
- Money Alone Is Not the Solution.
- Relative Income Is More Important Than Absolute Income.
- Distress Is Bad, Eustress Is Good.
While beliefs and orientations are important steps in Defining your own personal transformation, in the next post in this series we are going to continue to Define ourselves by exploring our fears and re-awakening the excitement that comes with pursuing our dreams.