How to train yourself to have a Millionaire Mindset.
The concepts mentioned in the video:
1.) Marginal Growth Theory
2.) Kaizen Method
3.) Six Sigma Method.
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How to improve yourself 1% everyday;
1.) Read every single day .
2.) Stay positive.
3.) Go deep, not wide.
4.) Find a mentor who is at 10x better position than you are and you like that person.
5.) Stick with 1 thing more than 6 months.
Why people don’t improve 1% everyday;
1.) Lack of self discipline.
2.) Addiction to instant gratification.
3.) Prioritizing other people’s opinion over succeeding.
4.) Short shightedness.
How do you improve yourself?
3700% in one year? That’s a huge number. That’s like getting 37 times better than where you are, who you are right now. So It’s not like improving yourself 100%, 200%, doubling your progress, trickling your progress. Just improving yourself 3700% and who’s making that claim? Well, that’s not me, this is the number that comes out to in the marginal growth theory.
So you’re going to be seeing a chart somewhere on the screen right now that shows the aggregated marginal growth, a chart that if you improve yourself 1% every single day, initially it looks like nothing is happening, but after a while you see that the rate of progress skyrockets, which is consistent with another theory that you guys hear quite a bit and it’s believed that Einstein said that it’s the eight wonder of the world, which is the compound which you’re going to see a graph or what that looks like, which is pretty much the same thing.
If you go deep on something and keep building your knowledge base and your experience on that very thing. Initially you don’t see a lot of growth, but over time you see a swift separation from the baseline. It’s almost vertical. And if you’ll look at the growth charts of major corporations like Amazon and Apple and Walmart, which I’m going to put on the screen right now, it follows the same trajectory because of this theory of marginal growth.
And you want to say to yourself, well, what does this have to do with me? I’m not Apple, I’m not Walmart. I’m just a person maybe trying to make a living or trying to get better at things. Yeah, but a lot of times what fools people is that they buy into the idea of instant gratification. They want to get 300% better yesterday without really understanding the laws of the nature.
So at that level of growth, almost perpendicular, doesn’t really exist without compounding or it can not have the longevity unless you’re following this marginal growth theory. So I want to condense this concept and bring it to you on a personal level, how you can improve yourself 1% every single day. So the innate problem with this theory is that how do you measure if you improve yourself 1% a day? Is there some kind of tool for you to plug yourself into and tells you that, oh yeah, today is 1.5%? Nothing like that. It’s just a number to put things in perspective so that that means you’re doing something that improves you. You’re better off today than you were yesterday. Because it’s contrary to the actions of many people in the modern society. Many people are looking for things that will give them results today. And they’re so afraid to even plan for the next six months, a year, because that seems so far out.
But what we forget is if you’re planning to live for another year, you’re going to go through life regardless. Why not go through it by improving yourself at least 1% every single day. And how, since you’re not a corporation, we’re going to talk about how to do that as an individual, and what kind of difference it will really make in your life.
1% growth theory
So this 1% growth theory has different names. You might’ve come across them. If you’re into reading and looking at concepts like this. The Japanese version of this is the Kaizen method. I’m going to put the symbol up there and this is being used by many of the major multibillion dollar corporations overseas and the US version of the similar method is the six Sigma method.
If you’re curious about these concepts, you can certainly look up books on both topics on Amazon and there is a great amount of information about how that works, but if you don’t want to go through all that information, I’m going to sum it up for you how this is relevant to you right now and how it would apply to your success.
Now, why? Why is this important? Why would I not want to improve myself 120% tomorrow versus 1% every single day? Let me make it more relevant to you regardless of your age group. I’m going to show you a chart in a second that show you your median income, per age group, through a job, right? So let’s say you don’t own a business, you currently hold a job in the United States based on the age groups that you’re in. You’re expected to make certain amount of income.
What is crazy is that contrary to this theory, as you get older and have a job, your potential to make way more income than than when you were younger drops. What I mean by that is between the ages of 20 to 45 you see an incremental increase in your income when you have a full time job, but 45, 50, and after 50, you see that that income kind of stabilizes. Then it starts going down because as a job holder, the marketability of your skills and yourself goes down. The employers think that the aging you can be replaced by someone younger and more energetic and they can pay less amount for the same amount of work for them.
So when you think about it, let’s say you’re giving your 30 years to a profession only to find out that as you need more income, as you get older, you need more income because your life gets more complex, right? Maybe you’ve been married for 20 years and now you have kids and your kids are married and things like that. You just need a lot more resources. Your value for the company drops, so that’s contrary to the 1% rule. That’s why if you’re planning to hold onto a job for another five, 10, 20 years, I want you to keep that in mind. It might not be in your best interest.
Are there any exceptions? Absolutely. Always is. So there are jobs out there that can literally make you a millionaire, right? If you’re working for a boss, you have a certain type of comp plan that allows you to have no ceiling and you can make as much money as you want to based on the value you add to the company. And I know people, personally, who became millionaires by holding the job because their company allows them to earn that much. Their skill set is there. But that’s a very small percentage of the population. For the remaining of that, time flies and without you noticing you’ve been putting your time into your profession, your job, this certain segment of the market only to find out that your income will drop and your income can drop drastically.
Now personally, from my community of students, I personally know people who worked at the same bank for like 30 years and they were making $200,000 a year only to find out they get fired. Your fired, like how do you replace that income? Right? Whereas if you own a business and apply the Kaizen method or the six Sigma method, your chances of making it and adding more value and improving yourself every single day is way more possible than if you’re holding a job.
That’s why it’s important. So you’re probably looking at this chart where you see the income brackets. I want you to match it against your age group and compare to how much you’re making right now. A lot of people are barely getting by because of their jobs and they’re hopeful for the future that things will get better.
Well, I got bad news for you. If you look at this chart, it doesn’t look like it’s going to get much better. Temporarily, if you’re 25 years old right now and 10 years from now, yeah, you’ll be making more money by default because you have experience in a certain area. But you’re not going to double, triple your income most likely. And after that point, it’s got a downhill.
So wherever you are in your life, it’s very important that you follow this 1% rule. Not to improve your job, but to improve yourself so your skills are more marketable for your own business. So hopefully this makes sense so far. If it does, then the question is, all right, [inaudible 00:08:25] this is cool and nice, but how do I improve myself 1%? So let’s go through that. I’m going to check my notes real quick.
So the first way, one way to do that, best way to do that is reading every single day. So your excuse cannot be, I don’t have money to buy books. Come on. Most of the principles that are valid today that will add to your success have been released 50 years ago. New books are fine, but most of the things that you need to learn are in the old books and you can’t buy them for like 99 cents or a dollar or sometimes you can even find them free online. Amazon.com is pretty economic to buy books.
You have to build, you have to get into the habit of reading books every single day. And you probably have heard the statistics that if you’re a pretty average person, you’re probably reading anywhere from zero to 10 books a year. Someone who is doing over a $100,000, $200,000 level, they’re reading anywhere from 10 to 20 books. Someone who’s a millionaire, that means that their net worth is either $1 million or they have million dollars cash in the bank. They’re reading anywhere from 25 to 50 books a year.
And someone who is at the CEO level, whose net worth is tens of millions of dollars are reading 80 plus books a year. So of course you can argue the validity of this for a CEO, because I do know of CEOs who run pretty big companies and I can tell you that they really do not have time to read 80, 90 books a year. But that does not mean they don’t educate themselves. They get the level of education they would be getting from 80, 90 books through different means, conferences, their group meetings and conference calls and things like that. So they’re definitely educating themselves.
So when you look at this, one of the easiest ways to add 1% to your life to improve it every single day is get into the habit of reading, reading good material. I’m not talking about reading somebody’s blog. Actual books that they are proven, read the reviews and things like that.
The second part is don’t try to gain knowledge on everything. People nowadays, they follow YouTube, Facebook, and things like that and they have interests in everything and they want to be good, they want to be average at everything cause you can’t be good at everything, right? So you got to give up that idea. So it might, the idea might be popular right now that you have a tendency to try to learn everything. Watch every show out there and do your Netflix and your Facebook and be on every social media. You’re not missing out a lot. Trust me.
Instead I need you to go deep. Pick something that you have passion for. Go deep, don’t go wide. You can’t really build expertise on everything, but you can build expertise if you go deep on one specific topic.
When you read the biographies of multimillionaires, they spend on average 15 to 20 years on a specific topic, whereas the average person, they job hop or they course hop or the business hop every six months or a year. Right. I think about the average person investing into a training course. They started the course and two months later they want to go ahead and look online to find something else. That’s the average person. That kind of reflects their success ratio as well. They’re not going deep in a specific industry.
So if you want to be successful, if you want to improve yourself by 1% try to do that in an industry, in the same industry. Very successful people who are making millions of dollars. They tend to stay in the same industry for a very, very long time.
And this doesn’t have to be industry. This could be something that you’re passionate about. When you think about DaVinci, do you think he was playing baseball one day and doing drawing the other days? Michael Jordan, do you think is really good at playing basketball and also playing soccer? No, he’s good at one thing and one thing alone because he had thousands of hours of practice in that very thing. So you have to define your mountain, if you will, and try to own it instead of trying to own and conquer the entire globe, that’s not the goal.
Have a positive mindset
The other thing is to improve yourself 1% you got to have a positive mindset. Stay positive. Just make yourself believe that you’re not entitled to anything. That nature, God, whatever you believe in does not owe you a thing. All right, so it’s your job to earn what it is that you need to earn. A lot of people get disappointed because somehow they are either brought up or they have the mindset to believe that they need to receive something without giving anything back.
I’m sorry, but it doesn’t really work that way. If you believe that, you’re going to get disappointed many, many, many times. You earn everything that you have, right? If you go against that, you get punished severely by life because it just doesn’t work that way. For that reason, stay positive. Take full responsibility for your actions. Remind yourself every day that I am responsible for my actions, I decide on my destiny. I am in full control of my decisions and actions, but no one else, myself, right?
So believe in yourself and stay positive. People get negative and get depressed when they think that they’re not in control and something good was supposed to happen and it just didn’t happen. I get countless emails from people saying, listen, I was expecting this money to come and it just didn’t come and now I can’t pay my bills.
That could happen to anybody, obviously, but it feels like if I were to pull this person to the side and had a conversation, it almost feels like they were expecting whoever is sending this to solve their problem. They had no control over this, their lives, and now this thing happened, did not happen. Now they’re in a tough situation, right? Do not leave yourself in a situation like that, ever. Try to take control of your live no matter what.
How do you improve yourself by 1%?
All right. The next one is how do you improve yourself by 1%? Find a mentor that you agree with. You can’t really get mentorship from someone that you don’t like because you’re going to be in constant back and forth mental battle with that person, disagreeing with them and trying to prove yourself right versus them wrong, so find a mentor that you like.
You share similar philosophies, not the same thing, and make sure that this person is at least 10 times better off than where you are. That’s very important. You don’t want to have a mentor who’s just like you and who’s going through the same troubles as you’re going through because that’s like having a buddy. That’s your friend. Your friend circle is like that. Your mentor is someone who’s been through certain things and who’s experienced certain growth and who knows way better in certain areas than you do. You might be better and you might have excelled in other areas in life, but for this specific instance, you want to work with someone who’s done really, really well for himself and for others and work with that person.
Last thing is, probably one of the most important things is, whatever you decide to do, just make a decision to stick with that thing more than six months. Don’t just give yourself, it just disappoints me when I get an email. Someone says, well, I’m going to give this a try for 30 days. If that’s your goal, don’t give it a try at all. Right? Are you going to get results in 30 days? Yeah, possibly. But if you’re going to experience the passion, the bigger outcome, you might not even see that right now. Most people give up on things in less than 30 days. Don’t be average, but try to program yourself to think like a millionaire and act like a millionaire. Act like a CEO.
When you think about it, I used to work for a corporation. The annual revenue of the corporation was around $3.5 billion. The CEOs, one of the responsibilities he had was to plan for the next six months, next year, and the next five years. How many of you actually plan for the next five years? People barely plan for next week and they want to give it a try to something for the next 30 days. There’s no point, especially if you’ve made up your mind to build a business. 30 days is nothing. You will make some money for sure, but if your goal is to just make some money, well go talk to your boss and have them give you a raise. You’re going to get better, faster results that way.
But if you’re building a business and if you want to get to 15, 20, 30, 40k, 100k, you got to be all in. Initially, maybe you have a job and you’re doing this on the side. You’re doing your business on the side, which is okay but your mental side, your mindset should be all in. Because if you walk into something one foot in and one foot out, you’re not very committed, and someone who’s very committed will beat you.
It’s like comparing yourself to someone who reads 50 books a year and who’s in the same business as you are versus you read one. Who do you think will do better a year from now, three years from now, five years from now? That person’s improving themselves more than 1% a day. So when you multiply that by five years, you’re here, that person is like totally perpendicular to where you are. So if you don’t want to give up, if you want to stay positive, you have to improve yourself 1% a day.
The reality of what will happen
Now let’s talk about the reality of what will happen. Probably 99% of the people who watch this, will watch this. They might like this, but they will do nothing with that. So that’s why I want to talk about why people do not do this. Why? If this is reality, if this is the real thing, why would someone not go ahead and say, you know what? This is a great idea. Because this is not my idea, right? The concept of marginal growth, the Kaizen method, the six Sigma, I didn’t come up with these. These are proven, so there was no argument whether they are real or not. They already do exist. It’s just I was trying to bring it home and kind of hone it into your life so you can personally start using this.
But this doesn’t usually happen and I want to kind of go through a list of reasons why somebody will not follow this, right? The first reason is not enough discipline. This does require daily discipline. Many people lack that. They want instant results. They want instant gratification. That’s like the marshmallow experiment, right? So about, I think it’s 15 years ago, a bunch of scientists wanted to do some experiment on kids. So they group a couple of kids and in front of them on a plate, they put one marshmallow and they said, here’s the deal. If you want to eat this marshmallow right now, you’re free to do so. But if you wait 30 minutes or I don’t remember the exact time, the X amount of time, and do not touch that, we’re going to double it. So you’re going to have to be able to have two marshmallows. If you wait another 15 minutes, I’m going to give you three.
So you get to eat more or just being a little more patient. So it’s your decision. Go ahead. And most of the kids just went ahead and grabbed one marshmallow and ate that. Some of them waited for the two and a small percentage of them waited for the three of them, right? They showed real patience and they tracked these kids for the next 10, 15 years. And what ended up happening is those who showed patience and waited to receive three of them, they were way more successful than the one who wanted instant gratification.
Instant gratification is plaguing our society. And you can tell that by the growth of social media channels because social media channels, they give you instant gratification without, I don’t know how old you are, but if you remember a time without the social media channels, there was really no real way for you to get likes for your pictures. You would need to be doing like a mass text to your friends of one of your pictures drinking coffee and someone might say, yeah, a little awkward, but sure, looking good. But on social media channels we can put a picture and everyone is liking it. You’re instantly having this celebrity effect immediately and that triggers in your mind all right, so I’m happy. So your happy hormones are released and you want to do more of that. As you do more of that, you get more results. You do more and more and more.
That turns into an addiction, a bad habit that you were spending a very productive amount of your time on social media channels. So this instant gratification is the reason that people, many people will not follow this 1% rule because you know it’s just a lot easier to hope for something that will work by tomorrow than improving yourself 1% for the next 365 days. Then if you do that, you’re going to automatically turn that into a positive addiction. So you’re going to keep doing that. But many people don’t have discipline. They want the instant gratification.
The other part is people overestimate how much they can get accomplished in 30 days and underestimate how much can be done in one year. That’s why a lot of people, when they think of like projects or the business opportunities, they always think of in terms of like the next 30 days to 60 days, right?
30 days or 60 days is very important because if you do have quick wins within that period of time, that kind of solidifies their belief in that thing and you just keep pushing forward. But the 1% method makes it indifferent for you. Whether you’re seeing any results or not, you’re going to stick with that because you know you, you’re convinced that if you stick with that you’re to do a way better than anybody else who do not have that passion for that. And most people will fall through, so you’re going to be one of the few people at the end of the year who knows a lot about this. You probably heard the cliche thing that if you spend 5,000 hours on one thing, you become a world class expert. It’s very true because if you’re improving yourself by 1% one year, and imagine you do this for two or three years well at the end of probably the fourth year, you’re one of the few people who is best at what you do, right?
Look at the piano players. Most of them, or golf players. Most of them start at age six and by the time they’re age 25 they are way ahead of someone. The compounding effect got them to a level that someone who’s starting at 25 there’s really very little chance that they can catch up to that person, right? Because the gap is too much to close.
So the other reason people do not do that is they’re not trained to stay focused for longer periods of time. People get distracted. We all have smartphones that keeps ringing off the hook all the time with these notifications and things like that. So it’s a good idea to change the settings on your phone and if possible, delete all the applications that distract you. Any kind of phone games you play on the phone, all social media channels and if you need to keep them, just change the setting so it doesn’t send you the notifications. You get those notifications, they keep constantly interrupt you. So you cannot have those deep focus moments that you need in order to grow by 1%.
The last one is that because of the instant gratification thing that I mentioned, people no they are more interested in impressing others then succeeding. Those are two different things. That’s why you see a lot of ads with people with supercars and Lamborghinis and things like that and the fancy houses and models next to them and they want to give this perception that that’s what success looks like. And people start thinking that, oh, this is what success is supposed to look like. So I should go ahead and buy an expensive suit or I should go ahead and buy something very expensive and pay 40 grand for a Rolex watch and wear that and show it off to people and so on. So those people are busy impressing others than actually succeeding.
So when you work on these five areas, nothing can stop you from improving yourself by 1%. So I just wanted to leave you with that. I wanted to make sure that everyone understands this concept of marginal growth and how it can be applied to your life every single day. Hopefully this makes sense. If you haven’t subscribed to my channel, click on the button below and click on the bell icon so you get notified of any new video that I come up and publish here. I haven’t done these value videos in a while, so I wanted to get it in front of you.
Hopefully you like it. Please comment below and let me know what you think and I’ll see you on the next lesson. Take care.