Look, this week the Chicago Cubs ended a 108-year championship drought. The Cleveland Indians now have baseball’s longest championship drought—68 years. This is true in sports and personal finances. Whenever you are in any kind of drought, the goal is to simply make it rain. I’m not talking about taking a wad of cash and throwing it in the air—I’m talking about getting multiple new income streams pouring in. If your financial situation as a bit dry, you need to start giving money more attention.
Money always moves toward those who are the most committed and respectful of it. While many people say they want more money, most never achieve it. Why? It’s simple—too many money mistakes. In baseball, you call it an error when you blunder a catch or make an errant throw. In honor of the Cubs ending their 108-year drought, I’m giving you today 5 common errors to avoid with money so that you can avoid having a financial drought.
1. Diversifying: Wall Street sells you on the idea of diversifying because it benefits them. As my friend, Mark Cuban says, “diversification is for idiots.” If you want to get rich you have to know when to shove all in. Find a vehicle and place your bet. Andrew Carnegie said, “the way to get rich is put all your eggs in one basket and then watch that basket.”
2. Saving to Save: People go broke saving money. Money that sits around will find another place to go. Money gets bored. Money wants to see action and it wants to be put to work. To get rich you must move surplus money into investments that will create more income producing activities.
I save to invest, I don’t save to save.
3. Being a premature baller: So many middle-class people try to impress others with their cars, clothes, and watches. I didn’t buy my first luxury car until I already had millions. When I finally made those purchases, it no longer mattered that they were poor investments. The very rich–the real ballers—may appear to be flaunting their money with extravagances but in reality, they are not because they own that watch on their wrist, not Mastercard.
4. Depending on one income flow: No matter how big the one flow is you should never depend on just one flow of income. I knew an executive in 2008 who was earning about $350,000 a year (she was in the 1%) and suddenly that income shut down. You need to create multiple streams of income that continue to drip into your wealth basket.
This is not to be confused with diversifying. You are fortifying your financial position by getting income from different sources.
5. Resting on your laurels: Comfort is the most dangerous part of finances. The middle class is built on comfort, settling and making just enough to get by. The wealthy never get enough wealth and never seek comfort. They look for abundance and always strive for more. Don’t get comfortable with your money situation—keep pushing for more.
If you are going through a money drought, let’s end it today just like the Cubs ended their drought last night—take advantage of my training special. You can get on the #1 Online Sales Training for 90% OFF for a limited time. Check out the deal here.