Today we’re going to run over a book I really enjoyed called Rich Dad, Poor Dad by Robert Kiyosaki.
Kiyosaki helps break down some financial knowledge into easy to understand stories and concepts. This book focuses on shifting your mindset to think like the rich do. Work smarter, not necessarily harder.
Raise your hand if you missed the “invest in Amazon” train. Is your hand up like mine? Now, keep your hand up if you also missed the Bitcoin train. Mine’s still up too. Okay, last one. Keep your hand raised if you’re tired of missing the next big thing.
If you’re tired of missing out on opportunities, you’ve got to start acting on them early on. Do your research, identify potential pros and cons of a potential opportunity, and take action before you miss the train. In all sorts of investments, people tend to jump aboard when things are taking off. As soon as things start looking bad even in the slightest bit, people jump off the wagon, and that’s where they incur losses.
Like I always stress, action is key here. Sitting back and being indecisive will leave you in the dust while those that take action see success. If you never take risks, you’ll never potentially reap rewards. Now you should take action for new opportunities in general, don’t just look for the “next big thing.” Thinking of what will be big in 10 years is tough. Technology is always changing, a lot happens in 10 years. All we can do is make the best judgments possible with the available information. To be honest, I’m not even sure what’s happening next month, so I personally won’t try to guess what the next 10 years will look like. The only constant is change.
I want to review some things that seem like common sense. You may have heard some of them before, but they are extremely important. Be sure to truly understand them follow them closely.
3 Tips For Spotting Opportunities
1. Pay attention to things that a few people are starting to talk about, but the masses don’t yet know about.
Bitcoin is an example. I remember hearing a small amount of people talk about Bitcoin years ago. I had no idea what it was, most people didn’t. Heck, most people still don’t quite understand what it is or how it works. Those folks that got into it years ago and held onto that investment are the ones who benefited immensely recently.
2. Do your research. Is this really a viable opportunity that has legs?
Don’t just take your friend’s advice on investing in a new opportunity. Start reading up on the topic, listening to any relevant podcasts, and watching YouTube videos to learn more. Learn all the ins and outs and what risks you may be taking in the event that you decide to invest time or money in something new.
3. Diversify your portfolio.
Seems like common sense, but common sense isn’t always common. Don’t put your life savings into the next cryptocurrency in hopes that it will become the next Bitcoin. That’s how people lose everything when things don’t work out. Split time and money into various areas across multiple industries. Try to invest in things you have researched and understand. Invest in what you know.
When Investing Money, Always Remember:
Buy low and sell high. When markets are doing poorly and stocks drop, that is the time to buy (everything is on sale!). Don’t buy after everyone and their mom has invested in a stock. At that point, you’ll be the sucker buying it at it’s peak. This also goes for reselling items, which I’ve been pretty successful at. Find items at clearance racks or garage sales and sell them online at regular price for a profit.
Never invest more than you’re willing to lose. When investing, assume you will lose all the money you are putting in. Plan for the worst, and hope for the best. People get into trouble when they invest more than they are willing, or can afford, to lose.
Note: this should not be construed as financial or legal advice. This post simply expresses some of my personal opinions and how I choose to invest my own time and money.
Welcome to Season 2 of the Entrepreneur Motivation Podcast. If you were here for last season, you’ll remember we covered a lot of topics from inventing a product to online tools I recommend checking out.
This season will be a little different. I’ll be running through some of the important points I’ve come across in various books I’ve read. Whether you’ve read them before or not, I’ll be sure to offer some fresh perspectives and highlight key takeaways. I definitely recommend you check the books out that I’ll be running through, as my short podcast can’t truly do them justice.
How can you stay motivated when things get tough and all odds seem to be against you? Can you think of a friend or colleague who remains positive, no matter what the circumstances? They always seem to find the good in any situation and be doing better than everyone else. A positive attitude is a huge contributor to one’s level of motivation.
Think of someone you know who always has something negative to say. No matter what the situation, they’re always complaining. Maybe when you go out to eat at a restaurant, this person mention that the food is “too hot,” “too cold,” or “took too long,” even if the restaurant has 5 stars on Yelp and everyone was impressed.
Nobody likes a “Negative Nancy”
If you’re a positive person, keep up the good work! If you’re more like the negative character mentioned above, you have some improvements to make in your mindset. Try to re-frame your thinking from negative to positive. Let’s look at a few examples and how we can re-frame our thinking from negative to positive.
Scenario A: You are laid off from your oil & gas job due to the industry downturn
Negative thinker: “This stinks, I can’t believe they laid me off. I’ve been loyal for all these years and they didn’t appreciate anything I did. Now I’m going to have to find another job, learn everything all over again, and build my network from scratch.”
Positive thinker: “Well, I was fortunate to have gotten laid off later in the game. Others weren’t so lucky. Fortunately, I’ll get a few weeks’ pay with my severance package and can file for unemployment until I get back on my feet. This might be a great opportunity to finally make some career changes I’ve been wanting to make and network with new people.”
Scenario B: A car accident is blocking all lanes on the freeway and your commute home will now take an hour longer.
Negative thinker: “Wow, this is so annoying. I was going to try to watch today’s episode of The Walking Dead. Now I’m going to have to watch it tomorrow.”
Positive thinker: “Geez, I feel sorry for the people involved in the wreck. I hope that they’re okay. I’m fortunate to be healthy and unharmed. I can always use this extra hour to catch up on a few podcasts I haven’t had time to listen to lately.”
Ever notice how positive people are much more fun to be around? They are not buzzkills like their Negative Nancy counterparts.
I was extremely inspired by a video I came across recently. In this video, Randy Pausch talks about the fact that he is going to die soon and there is nothing he can do about it. He chooses to remain positive. He says “I can’t control the cards I’m dealt, just how I play the hands.” He goes on to say that “the brick walls that are in our way are there for a reason. They are not there to keep us out. They are there to give us a way to show how much we want it.”
Don’t complain; just work harder.
You can purchase a copy of Randy’s book, The Last Lecture, by clicking here.
Happy New Year! I don’t really believe in “New Year Resolutions” and explain why in this episode. It’s important to set and achieve goals constantly throughout each year, but setting huge goals for an entire year without breaking them into smaller ones is a recipe for failure.
Feel free to reach out with questions or comments at chrisbello.com and remember, less dreaming, more doing.
“But Chris, it’s important to set goals! You always say so yourself!” Yes, goals are critical to translating dreams to reality. But if you are waiting for the New Year to set goals, you’ll see them fall through like most do year after year.
When you set goals for an entire year, you end up setting unrealistic goals without specific deadlines. That is simply a recipe for failure.
You should constantly have goals that you’re conquering and replacing with new ones. It’s good to set deadlines of when you’d like to achieve certain goals and then break your goals into steps to really get into specifics.
If you want to lose 10 pounds, don’t say “I’m going to lose 10 pounds in 2018.” That’s too generic. Say “I’m going to lose 10 pounds in the next 5 months.” That’s only 2 pounds you need to lose a month, which seems more realistic, right? Now that you’ve reframed the daunting task of losing 10 WHOLE POUNDS into losing 2 pounds a month, it doesn’t seem that hard.
Take it a step further.
To continue with the weight loss example, come up with a meal plan or find one online to hold yourself to. Meal prep on the weekend to make sure you always have a fridge full of healthy meals and don’t get tempted to order pizza twice a week.
I personally use a white board to keep track of everything I’m working on as well as the steps I need to accomplish to push each thing forward. I recommend getting one like this on Amazon or checking sales locally through platforms like Facebook Marketplace or Letgo to snag for a good deal.
I got the below whiteboard with markers and all for just $10! It was brand new and only had a slight ding on it, hence the great price. I plan on setting up an office in my house with this board on the wall so I can constantly see my goals, cross them off the list once complete, and add new ones as needed.
A good planner can also be helpful in keeping tabs on all your to-do’s on a certain day. There’s just nothing quite like physically crossing things off a list. I have used apps such as Wunderlist which can work great, but as you know, a message pops up at the top of your screen and quickly distracts you. Then you forget what you were on your phone to do to begin with. For this reason I think a separate, pen and paper method can be useful. Here’s a 2018 planner to consider getting.
What’s the point of my post?
So the point of this post is to tell you that you shouldn’t set New Year Resolutions. You should constantly set goals and update your list as you crush them. Like Matthew McConaughey says in his Best Actor speech, “My hero is me in 10 years.” Always strive to be better. Push yourself every day to be a better you. Now go out there, and start crushing your goals. Don’t wait “until the New Year.” Start TODAY.
Today’s focus will be on market validation, testing, and feedback. Different people look for different types of things in products or services, and you can’t make everyone happy. I’ll review how to segment your target customers, identify various needs, and take that information into account when getting feedback.
Feel free to reach out with questions or comments at chrisbello.com and remember, less dreaming, more doing.
Shifting your mindset: getting from “I can’t afford it” to “how can I afford it?”
Those who have known me from childhood know I can sometimes be a bit frugal. I grew up in a good, middle class family and my parents always taught my brothers and I not to waste food, to buy only what we really need, and to keep expenses low. Combine that upbringing with the fact that I studied Supply Chain in college and you get someone who really can cut down on waste and unnecessary expenses.
Even into my late 20’s, I still take the extra 2 minutes to find free street parking and try to avoid paying for the $20 parking lots when I go out in Downtown Houston. However, I’ve learned how to splurge on things I want to splurge on, things that are important to me. I’m the type of guy that buys in bulk to save money but won’t hesitate to drop $2400 on skydive certification classes (I actually saved $400 overall by paying the total amount upfront, so you could argue I even saved money on that deal). I also stay with friends or family when I travel sometimes so that I can spend $400 on getting scuba certified in Koh Phi Phi, Thailand.
Driving a Mercedes SLS and Audi R8 on the Las Vegas Motor Speedway: $500
Splurging on things you want feels good. But you must do so in moderation. Never let your lifestyle exceed your means. If you’re making $100K and living like you’re making $1M a year, you’re going to run into problems. If you’re making $100K and live as if you make $50K, you’ll find yourselves stashing up savings quickly and being able to use money for vacations or a few nice things that you want and can easily afford.
People ask me all the time “how can you afford to go on these amazing trips?” or “don’t you have student debt or car payments?” I’m pretty happy to say that I’m totally debt-free (other than my mortgage of course). My student loans are paid off, my Honda Accord is paid off, and the full statement balance of my credit cards is paid in full each month. What people don’t see is how I usually wear basic clothes that aren’t really name brand (unless Zara counts). I cook most of my meals and get something reasonable when I do go out to eat, which saves a ton of money. For $50 that you spend eating a mediocre dinner, you could get enough groceries to feed you for a few days. You can get chicken breast, ground turkey, and vegetables for probably around $20.
Mt. Fuji! What you don’t see is that I stayed with a high school friend and pitched in a few bucks for the ride from Tokyo
I truly appreciate everything I’m able to experience since I better understand the value of money. I feel like a few kids I’ve known that always got anything they every wanted from their parents take so many things for granted. For the average kids who don’t get their every wish granted, working hard and being able to afford those things later on in life is that much more rewarding.
Ziplining in Mexico was pretty neat: I think it was around $200? I stayed with my cousin for free on this trip.
I feel that the frugal mentality that has been ingrained into my head from my childhood will never truly leave. Even as my savings grow and when (not if – Law of Attraction at play) I become a millionaire or billionaire one day, I feel like I’ll still live within my means and spend my money on experiences over things. Because at the end of the road, we can’t take stuff with us. But hey, if you’ve got the money and that Ferrari makes you feel happy, go for it!
Before You Splurge, Ask Yourself Some Questions:
Do you need it?
If not, why are you getting it? Do you want it? If so, how badly do you want it? Think about if you’ll have buyer’s remorse after spending your money. If you really want it and think it’ll be worth it, go for it.
Can you afford it?
If you have to check your bank account to see if there’s enough money in there to pay for something, you can’t afford it. When you’ve saved enough to where you can comfortably buy something with cash on the spot, you can likely afford it and can consider moving forward.
Will you remember it 5 years from now?
If you want it and can afford it, see if you’ll remember it 5 years from now. A new cell phone or TV probably won’t bring a smile to your face years from now. A one-month backpacking trip through Southeast Asia definitely will.
Will the opportunity vanish soon?
Are you planning on getting married, having a kid, or starting a career that will hinder your ability to do something you want to do? If so, consider jumping on the opportunities available to you now. Take that trip before starting your full-time career or pop 3 kids out. Go skydiving, drive a moped in Vietnam, and sleep at a train station in Germany before you end up taking yourself too seriously.
Trip to New York: I crashed on my friend’s couch so I could spend whatever on food and the trip.
What I like to splurge on:
Good food at highly rated restaurants – I don’t eat out often, so when I go to a nice restaurant from time to time, I try to get whatever is recommended even if it means paying a little more.
Experiences – skydiving, scuba diving, parasailing, traveling, tours, and more. I love doing things that make memories (and also great photos).
Views in Beaver Creek, Colorado. Pitched in a little to stay with my buddy who was going with his parents.
Your mom was right. Who you hang out with tends to define you. If you’re hanging out with people who are okay with the status quo and don’t have drive to do more, they’ll pull you down to their level. If you want to level up, you need to elevate your peers.
Find mentors who have been there and done that, have a proven track record, and are willing to show you the ropes or even just grab a cup of coffee. This episode dives into the importance of mentors and network.
Feel free to reach out with questions or comments at chrisbello.com and remember, less dreaming, more doing.
When you have a huge “million dollar idea” that you’re nursing from scratch, you may do hours, weeks, and months of work without seeing a single dollar of return. I know firsthand that this can be extremely frustrating. You want the product to be finalized as fast as possible, but these things take time. Once your design is done, you want to roll it out right away, but you might find that it has to be done in phases.
Sometimes, it’s nice to just make some “quick & dirty” money while you wait for the big plans to come to fruition.
And no, I’m not implying you should become a stripper, although I heard strippers make a ridiculous amount of money a year. I really have to credit the podcast Side-Hustle School for helping me adopt this hustle mentality. You can create a side-hustle literally in a few hours and start acting upon your ideas. For me, flipping items for a profit (also known as reselling) became my side-hustle where I started seeing really good returns with little time and money invested.
One way to make easy, fast money: flipping, or reselling, for profit
To get into specifics, I flip products that I find for huge discounts at garage and estate sales. Sometimes there are warehouse or business sales when they are trying to clear out old stock or if they are shutting down. I price check similar or the exact items online to ensure there’s enough profit margin in there for me to feel like it’s a safe bet. One of my favorite flips was when I found 2 pairs of hiking shoes for $25/pair and sold them for $120 each on eBay within a week. I also had a Buddha statue that I bought for $25 and sold for $100.
More recently, I came across a small cell phone accessory store that was selling some plastic bins and tables. The plastic bins, as I learned later, are actually called “bus tubs.” They were for sale for $1/piece. I bought 5 just since they were so cheap, but I didn’t think much of them. Within 10 minutes of posting these on Facebook Marketplace at $5/piece, I had five people who had messaged me who were interested. I immediately knew I could raise this price to at least $10/piece. I found the same, exact bus tubs for sale on Amazon at $18 a pop, so even at $10/piece, people would be getting a steal. I sold the 5 the next day for $25, profiting $20.
I returned to the store and bought 77 more bus tubs (everything that would fit into my Honda Accord). $77 for 77 tubs. It’s taking some time to sell, but I know that it’s an item people want and can use for storing various things. If I sell them for $5 each, I’ll make $308 in profit. If I sell them for $10 each, I’ll make $693 in profit. I’m aiming to meet in the middle, to sell some for $10 when people are willing to pay that and others for $5 if they’re looking to pay a little less.
Flipping can be easy, but you have to develop a knack for finding the deals without spending too much of your time. You also have to start learning what types of items will sell quickly and which ones you might want to avoid.
The Bottom Line
Of course, flipping isn’t the only side-hustle out there. There are other ways you can make money as well. You can offer services with skills you may have, but you have to market yourself so others can find you. The beauty with selling products is that you don’t have to convince people of their value. The value and price is defined by the marketplace. Where I might have a tough time selling someone on my ability to transform their website, they don’t really think twice to purchase brand new hiking shoes for $120 that I have in the original box (and paid only $25 for 🙂 ).
Find yourself a side-hustle if you haven’t already, and try to find something you enjoy that makes you money, preferably. At least find something that helps you make a pretty decent amount of money per hour when compared to your regular job. I probably spent a total of 2 hours finding the hiking shoes, taking pictures of them, and then boxing and shipping them once they sold. I profited $190 for 2 HOURS of my time. That comes out to $95/hour of “income.” Fun fact, if you were to get paid at a job at a rate of $95/hour, your annual salary would be $190,000. Sure, you’re not working or getting paid for 40 hours a week with the side-hustle, but it’s money that you didn’t have and made in a short period of time.
Let’s do some math. Assume you have a “good” job and get paid $30/hour. You’d have to work 3 hours to get paid $90 (actually, a little less after taxes and all that good stuff). Imagine having a side-hustle where you’re averaging $95/hour profit or more. You would be profiting close to 3 times what you’re getting paid at your day job per hour of time. Can you see the potential here? It’s not just about money, it’s about time. If you can make more money in a shorter amount of time, you can clear up more time to do things you love and want to do. For 8 hours of your time at a good job at $30/hour, you’d make $240 in one day. That’s only $50 more than you could have made if you flipped the two pairs of hiking shoes like I did.
