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DISCLAIMER/ LEGALESE
Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques and ideas in these materials. Examples in this report are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person reading this report. We do not purport this as a get rich scheme. Your level of success in attaining the results claimed in our materials depends on the time you devote to the program, your finances, knowledge and various skills. Since these factors differ according to individuals, we cannot guarantee your success or income level. Nor are we responsible for any of your actions. Our products or services may not be for you. You must determine this for yourself, and seek the advice of a qualified professional. For these reasons, your purchase and use of our information, products and services should be based upon your own due diligence and judgment on how best to use our products. You should not view our company's products and services as responsible for any success or failure of your business; we provide a tool that you can use, that has worked for us.

COPYRIGHT NOTICE

Copyright 2008-2009 by West Loh and Andrew Grant. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted, in any form, or by any means, electronic, mechanical, recorded, photocopied, or otherwise, without the prior written permission of West Loh and Andrew Grant. It may not be given away, traded, sold or given as a bonus without prior permission. It is for your personal use only. It must remain on your hard drive and for your own informational purposes. If you have received this book without consent, please contact us at: info@money-mind-set.com or visit us and you will be rewarded. This publication is designed for informational purposes only. This is not a free book and cannot be given away or sold without prior permission of West Loh and Andrew Grant.
We are open to Joint Venture opportunities. Please contact us at the email above.

2008 - 2009 West Loh and Andrew Grant

PERSONAL WELCOME FROM ANDREW GRANT


After several years in the finance industry, I was sick and tired of seeing honest, hard-working people just like you get legally swindled of their precious earnings. I like to prevent that happening to you. Confusion, myths and outright lies are being fed to you on how to achieve Financial Freedom. The fact is that the majority of people who give advice telling you how to manage your money are no closer to being financially free than you are! What gives me the right to make such outrageous claims? Well, I was one of those advice givers. In fact, I managed over 50 other financial planners, and I had all my government licenses and accreditations to boot. Ive personally advised hundreds of low and hundreds of high net worth clients - and witnessed how the confusion, myths and lies given by well respected financial institutions and their advisors condemned people just like you to a life time of work and toil at a 50 hour per week job that they dont even like. Heres the thing. This blatant misinformation is deliberate.. But LEGAL! It has been calculated and regulated by those who make massive gains. preying on your financial ignorance. Its time someone spoke out. Have you ever heard a qualified financial planner tell you keep working and putting away money, so when you retire (at around 65) you will have a sizeable nest egg of money which you can then retire with and live the life of your dreams? This usually means a house by the beach, lots of free time walking on that beach with the partner of your dreams, lots of travel and a luxury boat and car as well. The harsh reality is.. Over 95% will NOT have enough money saved to even fund a retirement that maintains their current standard of living. Hundreds of thousands of hard-working citizens will not be able to fund a retirement plan thats barely even more than welfare. What makes this utterly ludicrous is that the planners, financial institutions and governments know it.

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3 Yet they still allow the confusion, myths and lies to continue. The truly scary thing is that the people trying to plan and invest are generally amongst the smarter ones in our society who actually make the effort to plan for their retirement. The statics show that most people do not even plan to be financial free by retirement. Lets face it; most people dont want to have to work for money just to pay the bills. Do you really want to have to work? Do you really want to be doing something you would prefer not to be doing..for most of your life just so you can pay the bills? Thats exactly the plan theyre selling you, and sadly the plan that over 85% of people are buying. Worse still, most are not even prepared.for what happens after 65. A very scary thought. Let me be clear, Im not saying you shouldnt work. What I am saying is that you should have the choice to work if you want to, not because you have to. You should love what you do so much that if you didnt get paid youd still do it. Wouldnt that be incredible? True Financial Freedom is having passive streams of income that do not require exchanging hours for money. Most people just dont have a clue on what it really takes to develop, maintain and keep the passive income streams that give true financial freedom. Heres an interesting question to ponder: have your advisors demonstrated to you that they have achieved financial freedom? Can they honestly prove that they make enough money via passive income sources so that they dont need to work? I can tell you right now that these people are just as tied to their job as you are and are falling into the same trap themselves (either that or they get rich selling you financial plans and funds). I know for a fact that most of the 53 financial planners that I use to manage could hardly make it from pay day to pay day. Yet they would give advice on peoples lives and money. Heres a great analogy. You want to get in serious shape. You read all the books you can, watch all the shows on TV and you even buy a gym membership. Then

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4 you come to see the advisor. Its an incredibly overweight person who wreaks of smoke and is already out of breath just from walking from the reception to the consult room. Would you seriously take advice on dieting and fitness from this person? Guess what? This is EXACTLY the level of advice you get when it comes to money. The only difference is, you cant SEE that the person is in really bad financial shape. Anyone can afford one expensive suit. I hope Ive made my point. So why should you listen to me? Well, because Ive done it. I have developed, maintained and increased my passive income sources with enough money to maintain my lifestyle indefinitely for the rest of my life (and my wife and kids) without needing to work for a single day for the rest of my life. I dont tell this to impress you but to IMPRESS UPON YOU the importance of this message. I dont want you to become another Australian Bureau of Statistic (you know the one that says at age 65, 95% of people will either be dead or dead broke) This book will reveal what drove me and my secret keys to success. As stated Ive studied and worked as a financial planner. Ive also owned and run a management consulting firm advising both large and small business on how to make money. I have made a lot of money doing those things. However, the money wasnt passive. It was active income - trading my limited hours for dollars. The harder I worked the more I made, but the more I made, the less of a life I had. The depressing thing for me was that after studying many of my successful clients, I noticed that they were following exactly the same pattern being slaves to their jobs. Sure they had more money but they also had more bills. This is why they werent truly wealthy - if they stopped working they stopped earning. It also amazed me as a Financial Planner to see that no matter how much people earned they would always adjust their spending to just a little more than their earning. This would lock them into a money trap that was close to impossible to get out of. I could see I was heading down that track and I made a decision. That was NOT going to be me.

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5 I set a goal: to make $10,000 of passive income per month within five years. This would allow us (my wife and I) to make enough money to keep us in the lifestyle that we had developed without the need to work. I spent tens of thousands of dollars on learning the systems of people who seemed to have cracked the passive income code. After 4 years of study and research was no closer to having a regular source of passive income. Then we found the missing link that profoundly changed our lives and made our income SKYROCKET. I was shown how to identify and remove my subconscious mental blocks to success. I learnt and applied the skills that helped build a passive income money mind set. Within weeks of doing this we started to make regular passive income. Within six months we were averaging $20,000 of passive income per month. Life has never been the same since. Get ready for the journey of your life. If you are willing to play full out, complete all the exercises without excuses you will see a radical transformation in your income. One more thing. This book is co-authored by a close friend and associate of mine, West Loh. West has an MBA and a few other degrees but he practically tossed those aside and is living his dreams now that hes learned and applied the Money Mind Set techniques were about to share with you. Ive worked closely with West personally to write this program and he has also interviewed over 20 multi-millionaires to create this program. Hes got some amazing things to share with you, so dont let your guard down on any of the chapters hes authored. Thats it for now. Buckle your seatbelts up and get ready for the ride. Well see you at the end!

Andrew Grant, West Loh and The Money Mindset team

2008 - 2009 West Loh and Andrew Grant

Table of Contents
1. Laying the Foundation for Financial Freedom 2. Why Mastering your Programs Will Make You a Millionaire 3. Understanding the Four Types of Money 4. To Tap Into Riches, You Must Leap Out Of Your Comfort Zone 5. The Tried and Tested Formula for Successful Financial Change 6. Designing Your Financial Destiny 7. The Biggest Lie Ever Told about Wealth 8. Compounding: The 8th Wonder of the World! 9. Lessons from Paul Blackburn: The 1 Million in 1 Month Interview 7 17 25 32 40 46 53 59 66

2008 - 2009 West Loh and Andrew Grant

Chapter 1 Laying the Foundation for Financial Freedom


As you can see, the main focus of this chapter is learning to lay the foundation for your own Financial Freedom. What I mean by Financial Freedom is earning enough passive income (money that you're not exchanging your hours for) so you can maintain the lifestyle you want, without having to go and work for it. Now let me be clear. I'm not saying that you shouldn't work. What I am saying is that you should have the choice to work if you want to, not because you have to so you can maintain your lifestyle. True Financial Freedom is having passive streams of income that don't require that you exchange your hours for money. But before we look at the foundation to Financial Freedom, let's first look at why most people are not Financially Free, and why most people don't even know how to go about getting there. A lot of it comes back to what we are commonly taught about making money. Most of the information we're given about making money comes from financial institutions (like banks and investment companies), the media, schools, government, and even our well meaning friends and family. Unfortunately, it's often a case of "the blind leading the blind". The simple fact is the majority of people who give advice on making money ARE NOT THEMSELVES FINANCIALLY FREE. How do I know so much about this? A few years ago I was a licensed and government-accredited Financial Planner. I managed over 52 other Planners, and I personally advised hundreds of people on their personal finances. During this time I saw how the information given by well respected financial institutions, their sales people (who are often presented as advisors) and government has condemned people just like you to a life time of hard toil at a job. You see the "big dream" that's sold, is that around the age of 65 when you retire after a lifetime of hard work, you'll have heaps of money. This will be a result of the cunning and savvy investments that you've made through your retirement plan, or superannuation. This will mean a house by the beach, lots of free time

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8 walking on that beach with the partner of your dreams, lots of travel and probably a boat and car of youre choosing as well. BUT, the reality for many is that they won't have enough money saved to fund a retirement that even just maintains their current standard of living, let alone gives them the lifestyle of their dreams. So why aren't you given better advice? Why aren't you given better investment opportunities so that you can retire financially free? The sad truth is that most people (even those giving advice on the subject) just don't have a clue about what it really takes to develop, maintain and keep the passive income streams you need to give you true financial freedom. And the reason for this is that the majority of them have not done it themselves. Here's a simple test. Ask anyone who wants to give you financial advice to demonstrate to you that they have achieved financial freedom. Can they show you that they make enough money from passive income that they don't have to work? Most people who give advice on how to handle money are tied to their jobs and have not achieved financial freedom. This was certainly true of the 52 financial planners that I managed. Most of them could hardly make it from pay day to pay day. Yet they would give advice on investment. Would you seriously take advice on dieting and fitness from a morbidly obese person, who could not get motivated to stop smoking and get to the gym? Well in many cases this is the level of advice you get when it comes to money. Now don't get me wrong. Often the people giving the advice are well intentioned, and well educated. However 9 times out of 10 they are broke, or couldn't go for more than a month without a pay cheque without causing them financial strain. So why should you listen to me? Why should this program be any different? Simply because I've done it. I have developed, maintained and increased passive income sources that give me enough money to maintain my life style without the need to work. And now I'm going to show you exactly how I did that.

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9 Before I discovered the secret to financial freedom I worked hard. I studied, and worked as a financial planner. I owned and ran a successful management consulting firm, advising businesses both large and small on how to make money. I have made a lot of money doing these things. However the money was not passive - it was active income. I was trading my limited hours for dollars. The harder I worked the more money I made. But the more money I made the less of a life I had. The depressing thing for me was that after studying many of my successful clients I noticed that they were also slaves to their jobs or businesses. Sure they had more money that the average person, but they also had more bills and generally less time. And if they stopped working they stopped earning. It also amazed me as a Financial Planner, that no matter how much a person earned they would always adjust their spending to just a little more than they were earning. This would lock them into a money trap that would seem impossible for them to get out of. It would therefore commit them to a life of working in a job they hated just to be able to meet their bills. I did NOT want to head down that same track. So I started to look for what I needed to know and do to become Financially Free. I set a goal to make $10,000 in passive income per month within five years. This would allow my wife and me to make enough money to maintain our existing lifestyle without the need to work. To achieve this goal, I studied, talked to and befriended people who had actually done it - not just told others how to do it (an important distinction!). I spent tens of thousands of dollars on learning the systems these people used - the ones who'd cracked the passive income code. But after 4 years of study and research, and thousands of dollars spent on learning, I was no closer to having a regular source of passive income. It was then that I found the "missing link" that made all the difference. The bit that was missing was so fundamental and so crucial to my success, that once I learned AND APPLIED it I began to make regular passive income within weeks. Within six months I was averaging $20,000 in passive income per

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10 month. I well and truly achieved my goal of making $10,000 in passive income per month within five years. And since then I've gone on to make much more. Now understanding and applying this "missing link" is not easy. But it is well worth the effort! It's important first of all to understand a couple of key concepts. The first concept is the Mental-Emotional-Physical success triangle. Even if you've see the triangle before, I doubt that you've applied it in the way I'm about to show you here. Applying this triangle has taken me from working 7 days a week in my own business, to today enjoying a 7-figure income from truly passive sources - money I don't have to "work" for. Here's a diagram of the triangle:

Deceptively simple, I know. But understanding this triangle will give you a loaded springboard for the rest of the program. If you dont understand it youll be treading water. So keep reading on.

If you want to be truly successful in any area of your life (including financially), you need to have a solid foundation in each of the three areas - mental, emotional and physical. Like any triangle, if you remove one side what happens? Thats right it collapses. It may not happen instantaneously. In fact, it might take months or even years. But neglect one side at your peril. Lets use an example. Since many of you will be accessing this through the internet (and probably own one or more online businesses), well use that framework. Let's look at how the triangle applies to building an internet business, and what you need to focus on in each of the three areas.

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11 PHYSICAL: To succeed in an internet business you need to have certain physical things in place - a computer, modem and internet connection. You also need a good working environment a quiet, well-laid-out office. As well, you need dedicated time to work on your business. And you might have $2,000 in start-up capital to invest. MENTAL: This side of the triangle is about the KNOWLEDGE and learning you need, about business models, marketing strategies, and technical skills you need for your internet business to succeed. You may gather this knowledge from books, seminar programs, audios or videos. You could also attend live events or get some mentoring support. All this feeds into your mental development. EMOTIONAL: This is generally the most neglected side of the triangle. The emotional side is about identifying and eliminating any subconscious blockages you have to success. These are the emotional stumbling blocks that unknowingly hold you back. Remember, EVERYONE has them. It's just a matter of how strong and how many. Let's look at how to apply each side of triangle to your goal of Financial Freedom. As you're going through this you'll be given exercises to do. Please get yourself a good quality notebook to put all of your answers into. If you prefer to type your answers, please set up a separate folder for this on your computer.

MENTAL The System


Ask yourself this question What system do I have in place to make money? If you dont currently have a system or you dont have a system that makes money in the way that you'd like (you have to work long hours in a job you hate, for example) you should ask What system do I need to have in place to make me money? Generally speaking, its not the people you have working for you, but the system you implement. Most people have flawed systems of making money. So, please write what is my current system for making money. Then come up with your answers. Well evaluate them later. If its just one thingI have a job, dont worry. The first step in changing anything is first identifying what youd like to change. By the way, this is the default system for the vast majority of people. The sad part is most of them are already resigned to this system for the rest of

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12 their lives until they retire (sad for them, not you). Unless youre earning multimillions, this is a seriously flawed system.

PHYSICAL The Investment and Commitment


The other reason most people are not financially free (particularly if they have their own business), is that the level of investment and commitment wasnt high enough. Theyre just not 100% committed to making things happen. They cut corners on what they need to provide time-wise, equipment-wise, and costwise. Two questions for you here: 1. 2. Whats my investment? Whats my level of commitment?

In a nutshell are you really prepared to pay the price? Unfortunately, 90% of people think they are, but when it comes to the crunch, they arent prepared. This explains the 10% of people who achieve far greater results in any endeavor, including finances. Another price youll have to pay is the cost of changing who you are. Theres going to be some people you make uncomfortable when you become successful in an area. Youll have certain friends that you just dont click with anymore, and those you just dont have anything in common with anymore. This includes relatives. It might even include your spouse. If you choose to take the leap, youll either pull those around you up, or those around you will pull you back down to where they are comfortable. What do you think happens the majority of the time? Youre right. So don't be surprised if you feel the need to cut some ties.

EMOTIONAL The Programs


This is a huge area, and we'll cover it in even more detail in the next e-class. To give you a quick introduction though, our emotional programs are just like computer programs they are commands or files that run the same way every time they're executed. Our programs sit at the sub-conscious level of our thinking. Often we're not even consciously aware of them. They are the things that keep us "stuck" in our existing situation. They are our underlying beliefs that

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13 dictate our conscious behavior. Often these beliefs serve us well. But sometimes our beliefs hold us back from achieving our goals. I found that two of my sub-conscious beliefs that were holding me back from being financially free were that "Opportunities to make passive income are scarce" and that "Passive income is hard to generate". So guess what? Because I had the first belief, I found very few passive income-making opportunities. Those I did find, I was so scared of messing up (because they were so rare and precious) that I didn't give them 100% effort. So of course I blew it. And in the process I "proved" my belief that "Passive income is hard to generate". Before I made a single cent in passive income I had to identify and eliminate any sub-conscious beliefs that were holding me back. Below is an exercise you can use to identify any sub-conscious programs you have that may be preventing you from being financially free. But just before we get to this week's exercise, let's sum up so far. Here's the key to achieving Financial Freedom. Understanding and applying this concept is fundamental to you achieving financial freedom.

The Success MEP Triangle

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Must DO Money Mind-Set Exercise


Here's where we figure out some of your sub-conscious blockages to being Financially Free. Over the next few weeks we'll take you through an arsenal of proven activities, strategies and interactive exercises to help you identify and eliminate your sub-conscious blockages to financial freedom. Here's an important thing to note: every exercise works differently for every person. Sometimes, you'll get HUGE BREAKTHROUGHS from exercises that give your friend or partner merely and interesting observation. However, no matter what your reaction, NEVER disregard an exercise without completing it exactly as described. You could be robbing yourself of that breakthrough. The first exercise is one you may have encountered before. But that's OK. This one is something I do on a regular basis. And it almost always leads to me identifying another blockage to work on - and results in me earning more passive income! You'll find that spending about 10 minutes a day, every day for 7 days really hammers those blocks hiding several layers deep in your subconscious. Sometimes they need a lot of coaxing! So, I want you to dedicate 10 minutes of uninterrupted time for 7 days straight. You may wish to start a separate journal for the other exercises we will do in this program.

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15 Heres how to do the exercise: First, sit down with a blank piece of paper and pen and ensure you have space and a quiet environment. Pick out one major goal in your life, in any area. Next, write a sentence which puts it in the positive, as if it has already been achieved. For example, it is now, Feb 2012 and I have a passive income of $200 000 per year. What you now need to do is divide the page into two by drawing a line down the centre. Then, in the left hand side write your goal. IMMEDIATELY after writing your goal, write the first response that comes into your mind. Dont wait, dont think, dont analyze. In fact if nothing comes to mind just write BLANK. Do this for a solid 5 minutes (time yourself). You should be able to get at least 20 30 responses. After a few minutes these responses will begin to reflect your subconscious beliefs, as your conscious mind quickly becomes bored with the repetition and "gives up and goes away for a while". Look for any patterns that arise. Can you start to identify any limiting beliefs? Any programs that are holding you back time and time again. To give you an idea of how it might look, here's a screen shot of one of my sessions with this exercise: When youre done, make notes in your workbook. Over time, well be looking for patterns, recurring themes and then we can start disabling those blocks!

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16 In chapter two we'll continue to expand on the emotional side of the Success Triangle. We'll look at how seemingly unrelated events from your past can have a tangible impact on your ability to make and keep money today. This is one of the most overlooked causes of financial hardship.

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Chapter 2 Why Mastering your Programs Will Make You a Millionaire


Have you ever noticed that no matter how much you earn, you always seem to spend about the same amount? Even if you happen to come across an extra ten thousand dollars from an unexpected source, it just seems to magically disappear? One of our mentors (Paul Blackburn) uses the term churning. You are a churn, and money that comes into the churn automatically comes out the other end in a different form. Wealthy people know and understand that its not the amount you earn thats important, its how much surplus is left over and can be put towards accumulating and building assets. This has everything to do with the way people run their inner programs. Side note This week you are going to read The Richest Man in Babylon, located on the members only page. Its a short, fast but very powerful parable of the mindset of the wealthy Babylonians. What Are Programs And How They Were Formed? The easiest way to describe a program is to think of something that you do, but you dont have to think about it to do it. You then get a RESULT from running that program. Do you remember when you first learnt to drive? You had to concentrate and focus on every part of the process. Your were very conscious of your feet being in the right place and moving them in relation to each other on the brake, accelerator and clutch took up all your attention. These days you can talk on the phone, eat lunch, listen to music and hold a conversation all at the same time, and still make it safely to your destination! The program (driving) has now been stored in your subconscious, and your conscious mind is free to focus on other things. The point I want to make here is that when you were learning to drive, you had someone to coach and teach you exactly what to do to become successful in the shortest possible time.

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18 They taught you how to set up everything in the car before you start driving, what successful drivers look for on the road for maximum safety, and even how to calculate risk in different situations. Also notice there are road rules you must abide by, and if you dont its likely that you wont last long either from license confiscation or physical harm. In a very similar fashion to your driving programs, all your money programs are formed as you grow up and are taught and coached by those around you. So, let me ask you this question:

Who were your money mentors?


Think about that for a second. You may even want to sit down in a quiet place and revisit some of your childhood memories about money and finances. Youll probably find a few key people such as teachers, friends and colleagues. However, one thing is highly likely. You will have had a significant influence on your money programs shaped by YOUR PARENTS.

Next question: Were they wealthy?


In most cases, the answer is a resounding no! You mustnt blame them, however. No-one intentionally sabotages their childrens financial success. Your parents formed their programs from their parents, and they did from their parents and so on. Obviously, times have changed drastically and rapidly over the past few decades. Are your programs still reflecting your parents, grandparents and great-grand-parents views about money? How does this apply to you? Whatever has been programmed into your mind will dictate your thoughts and actions, and you will always produce results that are consistent with your programs. The above statement has been enlarged and italicized because it is the most profound principle you will learn in this chapter. Read it a few times if you have to.

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19 Millions of people self-sabotage themselves daily. And most of them are not even aware of it. Their rational, logical conscious minds tell them that they want to be healthy, happy and prosperous. Lets face it. Who wouldnt? But then why are so many people sick, depressed and broke? Because on a subconscious levelthey dont believe they are worthy. Maybe their parents got divorced when they were ten and they thought it was their fault. Perhaps their father worked ten hours a day in a tough manual labor job, and now they feel guilty for earning more money than he did. I bet you've probably attended many seminars and read positive books and set goals for positive outcomes. But do you know how many thousands of hours of counter-programming you are still receiving? Are you really screening the books you read? Did you eliminate the news outlets? Have you stopped watching 90% of the shows on television? Did you eliminate all radio talk shows from your diet? Do you excuse yourself from the conversation when it turns to gossip, lack and negativity? Have you replaced former friends and acquaintances in your life that were negative? Do you schedule and restrict the time you spend with negative family members? If you didnt answer yes to ALL of these questions, you'll need to set aside a strategy to limit your exposure to the tremendous amount of lack programming you are being exposed to on a daily basis. If you did answer yes to all of the above, what that means is that you are likely getting only about fifty exposures to negative programming a day! So in either casewhat are you doing to counteract this programming? It may be much more important than you know. It is that constant daily programming you receive that determines your mindset. And it is your mindset that determines your eventual level of achievement in everything you do. I think youre catching on fast, and you realize the importance of learning these foundations. So, here's the formula to begin your reprogramming process.

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20 The Three Steps to Success

Step 1: Find and annihilate your subconscious blockages

Step 2: Delete old and Install new programs

Step 3: Develop Emotional Mastery

So when do the negative thoughts end? I dont know that they ever do. The sheer enormity of how much negative and lack programming you will be assaulted with over the course of a lifetime makes that seem unlikely. (But lets not affirm that!). When you really analyze and think about this regularlyyou will start to notice these thoughts. And once you do that, they lose most of their power. And your mindset starts to change . . . You change your core fundamental beliefs. You believe you are supposed to be healthy, happy and prosperous. You believe you are worthy. And when you are

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21 confronted with dozens of situations each day, most minor, some bigger, and even some that are majoryou expect good things to happen to you! You expect to find that tie you need to complete the perfect outfit, you anticipate winning in a sporting event, you figure you are next in line for that promotion, and you expect your business ventures to be successful. In any event, if you keep counter-programmingyou will win the fight. Because once you control the programmingyou control the mindset. And once you control the mindsetyou control your destiny! That's why I'm so excited that you're here, because you've finally found the exact journey that Andrew and Daryl Grant (and many other high net worth individuals) went through to change their inner game. Like a computer with a virus on it, well need to scan your hard drive for programs that sabotage your success. Then youll be getting the blueprint with which to reinstall the programs youll need to make and maintain big breakthroughs in your finances. Finally, youll need to master your emotions. Put simply, this is the ability to feel whatever emotion you want to feel, whenever you want to feel it, at the intensity you want to feel it, for as long as you want to feel it. If you cant currently do this, your emotions will inevitably hijack you when you are making big financial decisions, and youll lose a bucket load of money. I hope youve grasped what the Money Mind Set program is all about, because now that weve defined the problem, the rest of the program will be all about tailoring and finding solutions for you, using the above three steps.

Must DO Money Mind-Set Exercise


YOUR FREEDOM NUMBER This exercise has the potential to literally change your life. The subconscious mind has been likened to a heat seeking missile when youve set a target that you desperately desire, it continually works on ways to help you achieve it. Many successful people swear by it and almost every classic personal development book endorses this principle. Many people who have done this have also commented on how much theyve enjoyed the process! Its not just dreaming and goal-setting, but the actual first step towards making your dreams a reality.

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22 What you need to do is create three headings. Heading 1: BE Heading 2: DO Heading 3: HAVE Then, start dreaming! Under each heading, assuming you had access to unlimited financial resources and no time constraints, what things would you DO? Who would you BECOME? And what materials things would you POSSESS? It can be hard to let go and really reveal what you want, because our logical brain is thinking I dont know if this is realistic or if Ill ever do this so why waste time doing it? I can assure you, if you DONT do this, youll NEVER achieve your goals! So, dream big and write down everything you desire without trying to work out HOW to achieve it. Well work on that later in the program. Now here comes the fun part. Lets assume you are living the life of your dreams, with many of the things youve listed above already present in your life (make sure you feel the emotions associated with having these things). You need to start researching them online, and finding out how much it would cost to maintain your dream life. Heres a few examples from my own personal BE-DO-HAVE list (Ive got over 150 items in total, these were randomly picked to give an idea of how to go about this).

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23 Goal: Have regular golf coaching for 12 months 1x per fortnight Cost required: $75 per lesson x 26 lessons = $1950 per year Goal: Have a regular personal trainer Cost required: $50 per session x 2 sessions per week = $5200 per year Goal: Visit one international sports tournament per year (e.g. Masters Golf Tournament) Cost required: Brisbane to Augusta Georgia First Class Two people Return $16360 AUD. Tickets for seven days (includes full accommodation at patron lodge and 7 days access to tournament including par 3 tournament practice rounds and full 4 day access to tournament) $5680 USD. $5000 USD spending money for other events and places. Total $33 151 AUD Goal: Fly myself and my entire family back to Malaysia on a regular basis. I want to provide for the air fares, first class for my parents and siblings to fly back to Malaysia to reunite with relatives on special occasions such as Chinese New Year and Christmas. This would be provided for every year, ongoing. Cost required: $5433 (MAS Return) per person (x5) = $27165 per year each year. Goal: Sponsor a child on each continent Cost required: $30USD per month per child x 12 months = $360USD x 5 children = $1800USD per year

I had so much fun researching these costs, because it felt like I was really going to materialize these things into my life. Other things you might wish to include could be things such as payments on the car and house of your dreams, costs of giving your kids the best education etc., whatever youd include in your dream life. So, what you need to do now is first convert all your currencies to Australian dollars, and then group the weekly, monthly and annual payments together. Then you can normalize the numbers back down to a MONTHLY dollar amount that

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24 youd need to make passively in order to fully maintain your lifestyle on an ongoing, indefinite basis. This is your FREEDOM NUMBER. If you like you can also create a WEEKLY freedom number which will help you later on determine what value activities you should be pursuing in your day to day chase of these goals rather than low $$ activities that you could outsource.

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Chapter 3 Understanding the Four Types of Money


In my time as a financial planner, I saw hundreds of clients ranging from a net worth of zero all the way to a few million dollars. Over time, I started to see a very clear pattern between my rich clients and my poor clients. When I understood and applied these same patterns in my investment strategies, I found I was able to exponentially grow both my finances AND still have time for my wife and two kids. The model I came up with is called 'The Four Types of Money' and is pictured below. It is crucial for you to understand it in order to become financially independent. So let's explore each type in more detail. ACTIVE ASSET An active asset is something of value that you own that requires either physical time or energy from you. For example, I used to be (and still am) quite active in the property market. One of my strategies was to buy and renovate. I'd buy an old, run down outfit and then proceed to invest some sweat and toil into improving the value by cleaning, painting, adding basically anything that would improve the value of the house more than what it would cost me to implement. It becomes active because I need to be involved in order to increase the value of this asset. If I didn't renovate it, this asset would not increase in value, and may in fact decrease in value over time as things physically deteriorate and the grass overgrew! Our strategy to make money was to then either sell the property for some quick cash, or rent it out. The work involved in producing this income makes this an active asset.

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PASSIVE ASSET
A passive asset requires no work and still grows in value. An example here would be when I bought houses after researching the area and predicted growth due to infrastructure - things like schools, shops, public transport etc. I would rely on the fact that all these positive factors would improve the value of my property over time, without me having to lift a finger. Unfortunately, most of my initial properties were either negatively geared (meaning the rent did not exceed the mortgage repayments) or neutrally geared (rental returns only just met the repayments with no profit). I found though that unexpected expenses would pop up from time to time (for example replacing old worn down carpet) and this would eat into my income. So I'd have to keep working harder in my job (at the time I was consulting), so that my so called 'passive' asset could maintain itself. Certainly there are also many passive assets that have an ongoing return on investment with little or no ongoing management. These are exactly the assets you want to try to and acquire.

ACTIVE INCOME
As you know Daryl and I used to be consultants. We'd go out and visit clients all day. What were we really selling? That's right - time. We were exchanging our time for dollars. The problem with selling time? Its limited. It's finite. There's only 24 hours in a day. Take away 6-8 for sleeping, another 2-3 for travel and commuting, 1-2 for eating and a typical 8-10 hour work day and there's not a lot left for your family, or you! I've certainly learned to treat time as my most precious commodity. Sell everything else - except your time!

PASSIVE INCOME
This is a stream of income which requires no ongoing effort to maintain. For example you might buy a share and it pays you dividends annually. You don't trade time for money. However, you might invest a lot of time in a project or venture initially, in order to setup a passive income stream. This is the beauty of systems thinking. Daryl and I are probably best known for our e-book process, and collectively all our e-books bring in a significant passive income stream. We usually go to bed and wake up at least a few hundred dollars richer. The cool thing about building income streams is that in time they turn into valuable assets. In fact, I regularly get contacted by people from all over the world offering large

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27 sums of money for a single e-book site, and one of my sites was recently valued (by a reliable source) at $500 000 after only 6 months. But I didn't sell, because I understand the four types of money, and I want to continue to chase opportunities that fit under 'passive income!' Last year, I took my family on a holiday around the world. The best part was coming back and seeing my bank balance was bigger than when I left. This is the power of understanding the four types of money! It is this type of income that gives you LIFESTYLE. I was earning a lot of money trading hours of dollars, but I was exhausted physically and mentally at the end of each day, and I had no time for friends and personal leisure.

HOW DOES THIS APPLY TO YOU?


Many of you reading this will be working hard at your income. The majority have income through active means (you have a job and are selling hours). You also might have one or more passive assets (your house for example). Bear in mind having a passive asset doesn't necessarily mean it is a passive income stream (e.g. property that's negatively geared). Remember, lifestyle can only come from passive income. It is the goal of The Money Mind Set Program to help you make this shift, and we'll do everything we possibly can to help you! Start thinking about how you can create more abundance and more TIME in your life. If you are working, keep your daytime job, but start buying assets, and exploring passive income opportunities. You'll also need to look at the other end of the accounting equation - and that's money going out. I saw many wealthy people (in terms of income) whose expenses grew to match (and is some cases surpass) income levels! All their friends thought they were wealthy - the flashy cars, gadgets and big houses, but they were hurting badly when we crunched the numbers. Work out strategies to keep your expenses low, reduce your liabilities and continue to diligently build a base of solid assets. Most people, get married, buy a house, have kids and get stuck in a risky financial position, clinging to a job and buying everything on credit. I saw many young couples who get married and

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28 trapped themselves into a lifestyle that will not let them get out of debt for most of their working years. Here are some tips to get your brain starting to think about generating the type of money that will give you not only financial wealth but also TIME abundance: 1. Take a pit stop. Stop what you're doing, take a break and assess what is working and what is not working. The definition of insanity is doing the same thing and expecting a different result. Stop doing what is not working and look for something new to do. Don't make the mistake of being too busy to take time out. You can't afford not to do this if you're committed and you want serious change. I have done this inventory life check many times and it has shaped my activities significantly. 2. Always keep lookout for new ideas. For new investing ideas, I like to read magazines and newspapers. I also attend investing groups and I run a business club where we discuss new ideas and opportunities. Whenever I travel to new places, I am consciously observing different markets, new shops and trends. I subscribe to the lists of some great thinkers. I talk to people everywhere I go buses, planes, shopping centers, at the gym. I have met some amazing contacts in the most unlikely places. 3. This is not new - TAKE ACTION! Don't get caught up in information overload. Once you hear or read something you feel you can immediately implement, do it! I've found most people do not take action, not intentionally - they just put it off..... And it never gets done (but the intention is always there). Also, don't let someone talk you out of whatever you have committed to. Most will tell you why it won't work. Don't listen, chances are they've never done it themselves, and if they tried they didn't have the mindset that you have! 4. Find someone who has done what you want to do. Take them to lunch. Ask them for tips, for little tricks of the trade. I went to a seminar once on property, and really liked what I heard. I introduced myself and offered to chat over lunch. He was thrilled to tell me everything he knew and how to do it. After lunch, he took me on a drive and gave me a personal tour of his local properties showing me everything. 5. Educate yourself. One of my favorite quotes goes like this "Formal education will make you a living. Self education will make you a fortune." I've found this to

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29 be absolutely true. If you come to my house, you'll find a library of books, tapes, CDs, DVDs, mp3s and manuals on all the money making ideas I've learnt about. I am constantly listening to them when I have a spare second. I just never know when I'll get the next $100 000 idea. 6. Learn from the past greats. All the big companies on the stock exchange started out as small companies. Colonel Sanders did not get rich until after he lost everything in his 60s. Bill Gates was one of the richest men in the world before he was 30. Take a look at some of these cases. What can you learn from them?

Key Learning: Not all money is equal!


Must DO Money Mind-Set Exercise
PARTNER EYE-TO-EYE EXERCISE This is one of best kept secrets that I use regularly with Daryl. However, a word of warning: expect to feel more than a little uncomfortable. If you can push through this, however, you will gain access to parts of your brain that may not have been accessed during the written subconscious response exercise. This exercise also stimulates alpha brain waves, which tend to put you in closer touch with your true feelings about a subject. You'll need a partner for this one. Choose someone you trust! Choose someone you feel totally comfortable with and someone you feel you won't have to censor your answers for, otherwise you'll be defeating the purpose of this exercise. Place 2 chairs facing each other and sits down facing each other so your knees are just touching each other. Make gentle eye contact, or the eye region (e.g. bridge of the nose). Hold eye contact and do NOT look away, even though you will feel uncomfortable and will want to. Once you're setup, your partner will ask you a series of questions.

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30 Here is the key: you must then speak whatever comes into your mind WITHOUT LOOKING AWAY. Don't censor, don't analyze or think too hard. You will have an immediate response, and this is the response that you want to isolate. It might help if you had a voice recorder handy, so you can listen to these later on once we start looking at how to remove these blocks. So remember - gut reaction! If you get a complete mind blank or are lost for words, don't fret. Your partner should simply ask you the question again and wait for a response. Another ground rule - it's important that your partner does not show any emotional reaction at all. No nodding, smiling or frowning. This only biases the answer you give as you might be influenced by their reaction. Last thing - don't be surprised if you bring up some deep emotions when giving your answers. This exercise has been known to reduce people to tears, high levels of anger and every emotion in between. It's important your partner doesn't lose focus in their role and remain neutral even though every fiber in their body will be telling them to stop and console you. So set the ground rules before you start. Here's the first question: 1. "Imagine you were seriously rich, how would your mother feel about that?" Once you've asked this question, stay with it for at least a few minutes and ask it several times until you feel you've dug up and discovered some insightful responses. This should then be followed up by the next question: 2. "And how does that make you feel?" (in other words, how do you feel about your mothers reaction?) We'll be showing you in future chapters how to deal with these new blocks you've identified, but a great step you can do now is to start to match up your blocks with some fundamental beliefs or fears you might have. So here is a toolbox of questions to use with this exercise, dealing with the major influences in your life. "Imagine you were seriously rich, how would your father feel about that?" "And how does that make you feel?"

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31 "Imagine you were seriously rich, how would your friends feel about that?" "And how does that make you feel?" "Imagine you were seriously rich, how would your God feel about that?" "And how does that make you feel?" "Imagine you were seriously rich, how would you feel about that?" "And how does that make you feel?" This exercise done properly has taken me an hour to do, so put aside the time investment. I guarantee it will be well worth it. Now take notes in your workbook with your thoughts and reactions to doing this exercise. The whole point of this is to delve further into your subconscious and identify more hidden blocks, giving you some points of reference to work from. Have fun with it!

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Chapter 4 To Tap Into Riches, You Must Leap Out Of Your Comfort Zone
This chapter is all about being comfortable or, more particularly, uncomfortable. We will explore your comfort zone, how it limits you in the quest for wealth and prosperity and how you can break out of it. You've no doubt heard of the term comfort zone'. Basically its the paradigm or set of activities and thoughts that you regularly do and think that produces the least amount of stress. Applied to your money, it refers to many things - your level of risk, what income levels you're comfortable earning and the kind of people you mix with, events you attend and decisions you make. We'll explore these shortly.

Understanding Physical Vs Emotional Comfort Zones


Human beings by nature always fall back to where they feel safe and comfortable. Virtually everything we do has a comfort driver somewhere behind it, whether its standing on a train waiting for a seat or clearing our credit card bills. Physical comfort has to do with experiencing wellbeing in our bodies, for example feeling fit, relaxing while sunbathing or flying in a First Class recliner seat. Take a look around your house and I'm sure you'll see more examples. Your bed is probably king size with a scientifically proven mattress design. You have luxurious couches to sit on and put your feet up while you watch television. I even bet you have several remote controls for those TVs just so you don't have to get up every time you want to change the channel (because that would be really inconvenient, wouldn't it?). Emotional comfort is more complex. Its a state of mind that tells you that you feel at ease and relaxed about a particular situation, and that you will feel highly awkward and stressed if you go against your intuition. Believe it or not, some people are only comfortable being poor, negative, broke...and even sick! Even wearing physically uncomfortable clothing can be emotionally comfortable if it

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33 gives us a check mark that we are conforming to fashion (ladies, you know what I'm talking about). Its the same with work or money projects: we get settled into a job and a particular way of doing things and a salary level that meets our basic needs. We know the people we like to work with and avoid those we dont. With a fixed mind set it is natural to gravitate towards this comfort zone, inhibiting and restrictive as it is, because it makes life seem easy and risk-free. It confirms our way of seeing a world in which we are making little or no progress. In fact, even when great, positive things happen outside the realm of what makes us feel comfortable, we somehow sense that its not quite right it becomes emotionally uncomfortable at an unconscious level, and the brain unknowingly pushes you through a series of thoughts, actions and results that leave you ...... back in your comfort zone!

The Secret to Getting Outside of Your Comfort Zone


Because you have joined the mind set program, the chances are that most of the things you want to achieve in life lie outside your existing programmed boundaries and you want to break out. You can see that there are opportunities if you can just move outside the zone. Here's a great diagram to help the visual learners understand the comfort zone concept. The blue circle on the left is presentative of you - nice and safe in your comfort zone. The red circle on the left is what happens when you try to break out. It's NOT going to be easy. Why? Because there is a natural tendency as soon as your guard drops, for you gravitate back towards the centre. Its as if we have been linked by a giant piece of elastic that pins us near the centre of a comfort circle. As we get nearer and nearer to the edge of that circle the boundary of our comfort zone the more powerful is the pull that hauls us back.

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34 But the fact is that no truly great people live permanently inside this comfort zone. If they find themselves in it, they pretty quickly move out. Indeed, there are some who almost relish being in unfamiliar territory. The way they do it is by switching from the mind set that says comfortable is best to one that says: If I go beyond what I have done in the past, I can achieve my goals and establish new zones of comfort. Sometimes this takes courage and strength but they do it anyway. Competitive athletes are a prime example of people who push themselves beyond their existing comfort zone to achieve success. They are prepared to travel through the pain barrier for the benefits of what is on the other side. For instance, Australias world champion swimmer Ian Thorpe often gets up at 4 oclock in the morning well outside the natural comfort zone! To swim for tortuous hours on end in search of improvement and excellence. People who undertake personal fitness training often step outside their comfort zone to increase their level of performance and their health to the point where they feel uncomfortable if they are not doing it! Once theyve gone beyond their previous boundaries they find themselves in territory which, after a while, feels just as comfortable as their previous zone. So they push themselves forward again. This is the secret to breaking through.

A word of warning
While its true that pushing yourself outside your comfort zone involves a good deal of will-power, at least initially, using blunt will power alone will not get you where you want to be (unless you have the resolve of a Shoaling monk, which 99% of us don't!). The danger, as I mentioned earlier, is that you will start to gravitate back towards your old mind set territory. But How? The Money Mind Set program is all about expanding your comfort zone, so you are already shaping it by default. If you have diligently done the exercises, then I have no doubt you have already fronted some very confronting issues you have about money. If you haven't done any of the exercises, I strongly urge you to invest the time and energy to do them; it will be well worth it!

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35 More specifically, the key difference in mindset that wealthy people have is that they get so used to pushing themselves and playing at new levels, that this becomes the norm. If they ever get complacent, they feel compelled to get themselves back to their default zone. In other words, their paradigms about comfort zones are completely reversed to what 99% of what others think! Remember our circle analogy of Belief Systems -> Programs -> Mind Set as the key to obtaining and maintaining change!

Can you reach the point where you feel uncomfortable about being poor and passionate and even EXPECTANT about becoming rich?

How does this apply to you?


You must recognize that comfort zones are born out of mental conditioning things from the past that have become ingrained as your way of doing things. Have you become programmed to accept your present money status adequate income and modest savings' and subconsciously to avoid any activity that will move you beyond it? If you suddenly had $1million dollars, how would you react? Why don't you write your responses down in your workbook before moving on? Studies show that the vast majority of people who unexpectedly come into big money such as from winning the lottery are actually ill at ease with their new found wealth. On the surface, they may tell you theyre over the moon but its surprising how many of them then devote their energy to what seems to be almost a frantic effort to get rid of their money and, as the Beatles would say, get back to where you once belonged. And most of them succeed too, losing their money and personal relationships along the way!

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36 Perhaps all of your life to this point has led you to believe that whatever financial potential lies outside of your comfort zone cannot be reached, so you simply dont venture beyond the boundaries. Now you can.

Four steps to breaking out


Heres a fairly simple four-step process Ive found to be very effective in tackling this mind set stagnation, enabling people not only to step outside of their personal comfort zones but also to reach a point where they find those old behaviors unacceptable and they never want to go back.

Identify
First all, you need to know where the boundaries are of the comfort zones you want to change. Its not really that difficult to do. Mostly we already know them as the situations and circumstances we consciously try to avoid. But, just to be sure, spend some time imagining yourself in a situation where youd really like to be. For example do you want to be able to mix well socially? Mentally put yourself there right now. How does it feel? Are you cringing a bit inside? Or how about being a stock market investor. Can you feel what its like to place some of your hard-earned money on a stock? Do you have the jitters? If so, then youre outside your comfort zone. When you're imagining, make sure you choose a quiet place and are very relaxed. They key is to get emotional and vividly imagine (incorporate your senses - touch, smell, sights and sounds). If you do this properly, the feelings will come. Remember, the brain cannot tell the difference between real and imagined, but it must be vivid enough to evoke emotion!

Small steps
Some people are capable of just bursting through the boundaries of their comfort zone but for most of us the challenge is better met by taking small steps. Select a realistic, realizable situation where you feel modestly uncomfortable and actually put yourself in it. This could be something for instance like speaking in public not a stadium full of people just a small gathering of friends or associates. Even if you cant positively identify your boundaries, just think of something you do regularly even eating, smoking or drinking (the sort of things from which some people think they derive comfort) and decide youre going to do things differently

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37 from now. Experience proves that most of our fears or concerns are more imagined than real; so tell yourself that what has been holding you back is nothing more than a set beliefs, without any foundation. Just do it.

Repetition
The first time you move out of the comfort zone wont necessarily be easy thats why most people never do it. But the fact that you are reading this is evidence enough to me that you do want to break out. And your reward is that the second time you repeat your chosen action it will be less painful. Then the third time, and so on. Eventually, you will discover that you are now comfortable with something that previously terrified you. It has become your new comfort zone and you never want to return to the old you!

Moving forward
Successful people share a number of common characteristics. One of them is that they never stand still. They are always looking for new opportunities and challenges, even if these lie outside of their personal comfort zones. The same must apply to you if you are to achieve the success you strive for. Now that you have extended the boundaries of your comfort zone, you must do so again first within your test situation and then with other new challenges you have identified. If you keep on doing this you will set up the mind set that makes you comfortable at the higher levels of activity and achievement. The great thing is that once you are comfortable about feeling uncomfortable, so to speak, you will find you have the courage to apply this to pretty well any situation where you might previously have been held back. Expelling your unfounded beliefs will provide the confidence and strength to move into new territory and with that comes the invisible attraction of success and wealth. When you exude confidence and determination, people and circumstances just behave differently in your favor.

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Must DO Money Mind-Set Exercise


TIME TRACKING (Part 1 of 2) This activity will enable you to travel back in time in order to try and link past events to present circumstances. First, find a quiet place and comfortable chair or bed. The goal is to get you into an 'alpha' brain wave pattern - which basically means a deep, state of calmness, but not quite asleep. Once youre in position, start taking deep breaths - as many as you need to feel your muscles relax and your thoughts to gain clarity. Here are the steps: 1. Visualize yourself in a passive scene of nature. This might be on a secluded beach or tropical rainforest, for example. Use your senses when imagining - hear the birds, feel the water, smell the ocean breeze. 2. Get active in your scene. You might want to pickup a flower to smell it, run your hands or dangle your feet in the water. For anyone around you, you will look silly - but since you are vividly in the scene it will feel like you're there. If you are conscious about how you are looking then you haven't got yourself deep enough into alpha. Revisit step 1 and try again. Why do we add in this step? Because we want to reinforce to our brain through physical movements that we are really there and this makes our following steps more effective. 3. Imagine seeing yourself walking towards a beautifully carved table and chair. Then see yourself sitting down in luxurious comfort. Feel how comfy the chair is. 4. Next, imagine a big screen appearing in front of you, and you now become part of the audience. To the left of the screen is a huge clock and calendar that you are able to manipulate with ease. 5. Now start to bring to mind the thoughts or issues you want to work on. For example, when I first did this I wanted to address why I always used to struggle with academic things whilst all my fellow students would pick things up so easily. I pictured myself back in school sitting in lessons and reading through books, and

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39 I started getting an emotional reaction. Try to identify the emotion of feeling you are getting surrounding the belief or issue. 6. Now physically reach out your hand and wind back the clock. See the years on the clock go backwards year by year. You might have to go back to when you're 3 years old! Keep winding it back until something pops up from out of the past. It might be an obvious event but it might also be something very suttle that you only now realize the impact it has had on you. If you're working with a partner, they should be asking questions like 'whats happening now', 'how are you feeling', etc. If you don't have a partner, just ask yourself these questions and continue feeling the emotional responses. For me, as a child I broke my arm and ended up in hospital. I was in intense pain and I remember watching all the doctors and nurses walking past my window. There may be no immediately obvious link between the issue and the event - but do NOT dismiss whatever pops up - just like the example above. 7. Ask yourself: how did this event affect my beliefs today? Look deeply. What association did I make between a broken arm and my academic results? It struck me hard and stunned me - as a small child, I associated doctors and nurses with the excruciating pain I was in. The other thing I did was make an association with Doctors and nurses being smart people and academically orientated. Putting two and two together and I had the association that being academic would bring pain. I carried this program as a child and continued to make it a reality all the way into adulthood until I identified and removed it using exactly what I'm teaching you in this program. So once you've got the event, what next? You are going to get the answer, but first make sure you have done this exercise addressing your biggest blocks. Include your blocks and beliefs about money. You'll have to time track and 'search' for each one separately.

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Chapter Five Formula for Successful Financial Change


Have you ever been to a seminar or read a book and taken away some great strategies, with every intention of applying them into your life? But, over time, you got 'busy' again and settled into your daily routine. And the end result? Nothing changed. If you've ever done this (I know I certainly have), then you will find this chapter very valuable. It has literally changed my life and I always come back to it when I'm finding a new habit or action hard to maintain. I have used it time and again to implement massive financial changes in my life. I also used this a lot with clients when I did consulting, and it always made people sit up and take notice because it got results. First, lets look at the formula and then I'll explain the components in detail to you and finish off by giving you detailed strategies so you can start action immediately after you complete this chapter. The Formula for Financial Change is: Where: D = Desire and Dissatisfaction V = Vision C = Cost of Change Now lets go through and explain each variable and then talk about some strategies you can start actioning! D is for Desire and Dissatisfaction Most people desire more money, better health and enriching relationships. However, for most people the 'desire scale' is just not activated powerfully enough to be effective. They don't make things a 'must'. Most people would love to make more money, but they wouldn't die without it. They wish they could take charge of their lives, but they could live without it. The moment something becomes a should instead of a must, you will rarely achieve it. You will always P = Plan

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41 find a way to put it off or to quit the moment you meet resistance. People like Sylvester Stallone, Steven Spielberg or Donald Trump who achieve success are not born more focused, more disciplined or luckier than the average person. What makes them different is that they make their goals a must for themselves. They are not willing to accept anything less than the best. So let me ask you a question. Are your dreams and goals an absolute must or are they just weak desires that you can live without? Have you been truly committed to do whatever it takes in the past or have you quit and given yourself excuses along the way? Think of the desire 'scale' as ranging from 1 - 100. '1' means it wouldn't make any difference at all if you didn't achieve it - and you probably have a strong aversion to it (as a personal example, becoming a day trader and watching charts 18 hours a day). '100' means that it's almost life and death (tries not eating for two days and sees what your desire for food will drive you to do!). Level of Dissatisfaction means on what scale (assuming 1-100 again) you are dissatisfied with your current situation. 100 mean you are absolutely disgusted with where you are. You have incredible amounts of PAIN associated with not changing. Then change becomes easier. Combine it with the rest of the factors in the equation and you'll find it hard not to change! V is for Vision When you're in the process of doing what needs to be done to create wealth, if you only see the short-term tasks before you, it is easy to become frustrated, discouraged and even sidetracked. If you can see the big picture, however, you just get on with it knowing you are taking larger and larger strides towards goal attainment. Everyone needs a sense of vision. You should constantly remind yourself of your short-term and our long-term visions and review how your work contributes toward meeting both sets of goals. A vision is a clear, concrete guiding picture of the results or condition you want to achieve. It is a source of inspiration and guidance. If the vision is big and inspiring enough, a vision, just by being powerfully stated, can set in motion the energy needed for its own attainment.

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The Four Qualities of a Vision


1. A vision must be so clear and so concrete that you can see it in detail, smell it, and taste it. Exactly what car do you want? What color is it? What does it smell like? How much are you earning exactly? How are you spending your time now that you're financially free? 2. A vision must be big enough. Think huge, without thinking HOW. That will come later. 3. A vision must include a clear picture of the power of your own role (and others) in making that change happen. You'll develop a clear strategy later on in this program. P is for Plan Planning is crucial. It is your roadmap to success. You've got a picture of the treasure chest you want; you just need the treasure map! And here's why its so important to develop a clear vision and goal book: if you do not know what you want specifically, you cannot develop a specific strategy and action plan to get here. For example, the strategy and action plan to earn $200,000 a year is totally different from the strategy and plan you need to earn $2 million. It would be different again if your aim is $10 million and vastly different again if your target is $100 million a year! If you want to make $200,000 what should your strategy and action plan be? C is for the Cost of Change More accurately, this is your personal perceived cost of change. What will it cost you, in terms of time? How much money will it cost you? What leisure activities will you have to give up and sacrifice? What disciplined tasks will you have to perform daily, weekly, monthly and yearly? For 90% of people, the price of success is too high a price to pay. Most people aren't willing to give up watching their favorite episode of 'desperate housewives' in order to scout the paper for a potential property deal. They aren't willing to give up chocolate or even the butter on their sandwich in order to get into shape. Those that are willing, get ahead. And being the vast minority, they achieve the results that the other 90% can only marvel at.

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43 I found that in assessing other peoples cost of change that the real price successful people paid was never as high as the perceived cost. People have a tendency to overinflate what will be involved and the value of the sacrifice they are making. Once they've committed and begin their action plan, momentum is a powerful force that makes each step easier.

Using the Formula for Wealth


Now that you know its components here are a few crucial things you need to know to start applying it into your life. Think back to high school maths for a second. What happens when you multiply anything by zero? The answer becomes zero. This formula works in the same way. If you have a great plan and your vision is spectacular, but you've got only a small desire to make it happen, then this is a recipe for disaster. If any one of the three components (Desire, Vision or Plan) is in short supply, you will not be able to affect lasting behavior change and your finances won't be significantly improved. The second thing to know is that this formula can be viewed like a see-saw. D, V & P collectively must 'outweigh' C. If C is too 'heavy' you will be fighting an uphill battle. You'll lose. So here's the key to unlocking the potential in using this formula for your finances: you need to address each of the variables on the left side of the equation and make them all as compelling as possible! One last thing. The audio link (at the top of this page) is a private recording of Andrew speaking to a select group of private clients about this concept. There is some class interaction as well. Please make sure you listen to it, as you'll gain an even deeper insight into this formula. Clients paid $1997 to be at this event!

Must DO Money Mind-Set Exercise


Here are some specific tasks you can do to begin the process: 1. Test drives your dream car. Take a photo of yourself in the car. Put it up where you'll see it often. Go and visit your dream house. Dine out at an exclusive

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44 restaurant. Whatever gets you excited, get a taste for it! If you can, take pictures of yourself living the dream. This improves your 'D'. 2. Use the time tracking technique to go forward in time. You've already gone back in time. This time I want you to go forward and imagine yourself getting nowhere. Imagine yourself being 70, still on a pension being broke because you never took action when the opportunities arose. You let life's easy distractions get in the way of creating a dream life and now you're regretting your entire life. Do you think you'll be just a little 'dissatisfied' if you do this? 3. Create your perfect life. What would your week be like if you had unlimited money and time? Where would you travel? How often? Who would you travel with? Do up a real schedule, as if you are planning next week. Then do a monthly one and a yearly one. This is your lifes 'V'. If its inspiring enough you'll be seriously energized in this area. 4. List out all your perceived costs of change. For example, you know you want to make an extra $5000 per month online on the internet. Here are some perceived costs: The cost of new computer, internet connection and accessories, maybe a new desk and accessories The time you will give up to learn a new strategy whether it be e-books, e-bay, or another strategy The time away from your kids and partner that this new venture will steal away from you The time that this will steal away from your leisure. No more watching your favorite show 'The Simpsons' after work. No golf on Saturday mornings. Getting up an hour earlier each morning. These are just some examples. Note that, in terms of $$ amount, the cost might not be that high. However, you value your time greatly and each hour invested has a very high perceived cost to you. The secret is to lower your perceived cost (because that is all it is - perception), by time-tracking into the future again, but this time imagining how much of a difference this $5000 per month makes to your life, the life of your partner and

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45 kids. You know in the long term you'll have more free time, and be able to do and have more than you did before. So go through the time tracking process, wind that clock forward (from 6 months up to 10 years) and visualize that your vision is now a reality. The perceived cost is a pretty small price to pay now, don't you think?

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46

Chapter Six Designing your Financial Destiny


Some dream to escape reality, some to change it forever
Soichiro Honda (founder, Honda motors)

Almost every person you speak to have the desire to make more money or become rich. Why is it that so few ever achieve it? If you do not know what you want specifically, you cannot develop a specific strategy and action plan to get there. For example, the strategy and action plan to earn $200,000 a year is totally different from the strategy and plan you need to earn $2 million. It would be different again if your aim is $10 million and vastly different again if your target is $100 million a year! If you wanted to make $1 billion, could you get there doing what you're doing now? Let's take a closer look. To earn $2 million a year you would have to own your own company or be in insurance or real estate sales (and sell some very highly priced houses!). What if you want to achieve $10 million a year? The only way would be to expand your company by opening up many branches or creating franchises across the country or around the world. With this leverage, you could make it. Now, what if you want to make $100 million a year? Again, this goal requires a completely different set of skills and approach. There is no way you can make $100 million through sales, salary or even profits from your own company. The only way is to sell shares in a company you own which is publicly listed on the stock market. This is how the billionaires in the world become so wealthy. My point is this. Once you know what it is you want specifically, you will be very clear about what it is you must do to get there. If you want to achieve $2 million, you must start your own company. If you want to make $10 million, you need to expand your companys products or services into international markets; and if

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47 you want to make over $100 million, you must get your company listed on the stock exchange where its value will be multiplied many times. When you are unclear and vague about what you want to achieve, you aren't able to focus on your ideas, energy and efforts into a definite plan to get you there.

Success Happens by Design, Not Chance


I'm a true believer that achieving success rarely ever happens by chance. The roll of the dice never made anyone rich or happy in the long term. It always begins with a person having a clearly defined outcome fueled by their passionate desire. These were the findings of a study conducted at Yale University in 1953. That year, the graduating batch of students was surveyed and in this batch only 3% had their goals written down. The goals of this 3% of graduating students included: being a best-selling novelist, starting a computer company and taking it public, running for President etc 97% of the students had no clearly defined goals written down. Many of them chose to adopt the whatever will be, will be mindset. Twenty years later, a follow up study revealed that the 3% of students who wrote down their goals earned a combined income three times greater than the combined income of the 97% that had no goals written down. That surely shows the incredible power of goal setting. If you don't stand for something you'll fall for anything! Very often, if we dont have a clear plan for our life, we will fall into somebody elses plan. As a kid or young adult, it would have been your parents plan: Be a doctor, be a lawyer, be an engineer and make plenty of moneyand while it would be (in their view) for your own future good, it would be trying to live out their expectations and sometimes their own unrealized dreams. If you work in a public or private corporation, do you expect your boss to chart your goals and your future? I can tell you that if they do it, it will be for your benefit only if it's in line with the companys targets. If you do what everyone else does, you will get what everyone else gets! Do you have a home computer? Yes? What software does your computer run on? If I bet that it runs on Windows, I will be right eight out of ten times. Why?

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48 Because over 80% of personal computers run on some form of Microsoft software. Did this happen by chance? No! This is the result of a very clear goal that Bill Gates set when he first started Microsoft, two decades back. His vision was a computer on every desk and every home, running Microsoft software. In fact, this goal was set at a time when it was uncommon for homes to have personal computers. Just a few years earlier, in 1977, Kenneth Olsen, the President of Digita Equip Corp remarked, There is no reason for any individual to have a computer in their home. Gates thought otherwise. He made it his specific goal and mobilized his team to create what is now taken for granted; home computers that are as common as telephones.

The 5 Major Killers That Stop People Designing Their Financial Destiny
If setting clear goals is so crucial for us to achieve a successful and fulfilling future, then why do so many people fail to do it? 1) Limiting Beliefs The first thing that holds most people back from setting goals are their limiting beliefs. Many people only dream about what they would love to have. When it comes to committing to a specific target and plan, they dont even bother. Something inside them says there is no way. Either its too difficult or they simply dont have what it takes. You now know that these are nothing but limiting beliefs. Unless you break these past generalizations about yourself, you'll never dare to design goals that drive you to the next level. 2) Not Knowing What You Want I bet if I gave you a magic lamp that would grant you anything you wished for, you'd get together a big list pretty quickly! It is not that people dont know what they want. What has truly happened is that most people have stopped daring to dream. As kids, all of us had fantasies and dreams of what we wanted to have and be when we grow up. However, as we went through life, we met with so many failures and disappointments that our rational, critical mind stopped us from continuing to dream. Whenever we get excited about something, our internal voice rushes in to tell us, It cant be done You cannot do that Thats impossible Grow up, get real. (It could even be an echo of our parents voice, if

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49 we had stern, no-nonsense parents). As a result, this blocks your creative juices and deflates your passion the very elements you need to create and design the life you truly want. The key is to re-learn how to unlock your imagination and set your creative minds FREE free of fear and inhibitions. 3) FEAR This fear of failure, of rejection and embarrassment is what paralyzes most people from even starting out. Does this mean that people who keep setting goals do not fear failure? No way! Everyone fears the feeling of failure. What, then, gives successful people the courage to set high goals and go for it? It is how we define failure to ourselves. People who constantly set expectations and go for it do so because they define failure differently. They believe that not getting what they set out for is not failure, but only feedback. They dont feel bad about it at all. They believe that they only fail if they give up! As long as they keep going for it and do not give up, then they have not failed! This belief drives them to do anything, since they alone decide when (i.e. if they ever have to) to call it quits! You can do the same thing for yourself. Let me ask you this question, What would you do if you knew you couldnt fail? Would you suddenly go out and do a lot of things you never dared to do? I bet you would. Then why dont you go out and do it? After all, there is no way you can fail unless you give up! It is this belief that has driven me to go for the impossible! Did I achieve them all? Of course not, but it has stretched me so much and has gotten me so much more results than I would have had I not set such high targets. 4) Addiction to the Soft Life Most people are risk averse because they are addicted to a way of life: a soft life, a cushy life with habits and material comforts. Unless that comfy lifestyle is imminently under threat, they wont do anything that calls for iron will and discipline. Setting goals and really going for our goals often means changing habits and sacrifice. This is why people make half-hearted attempts. As soon as their new path impinges on their old habits, they withdrawits too hard. So, be

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50 prepared to make what appears to be sacrifices and, if you do, the rewards are there. 5) Goals? Been there, done that If you're reading this thinking 'not another spiel on goal setting - I've heard it all', then think again - because if you're not actively DOING IT, then in my opinion you don't know it. If this chapter gets you over the line so that you finally kick start that process, then we'll have achieved a great victory. Remember that setting goals in isolation will not get you what you want. However, they are the first and major key to the ultimate success formula. If you dont follow up with your goals by developing a strategy, taking action and changing your strategy from feedback, you will not be successful! When you dont get what you want, it is merely part of the feedback you get on your journey of getting to what you want. When you set a clear goal and focus on it, you will make the decisions and take the actions that will move you there. As you take action and follow your plans, you will move towards what you want. But very rarely is the path a straight and easy one. Along the way, soon enough, you will encounter some obstacles, set backs and frustrations. It could be in the form of a rejection, a lost business deal or even a business failure. At this point, there will always be a group of people who will give up on their dream. These are the ones who live in fear and never dare to shoot for anything anymore. The remaining people will not let one setback stop them. They quickly recover and take action again. Sure enough, failure will strike again. At this stage, another group of people will give up, and so on. This process continues on, at each stage large chunks of people quit. It is only the remaining 5% that finally reach their goals. They've finally cracked the code!

Why You Must Start Setting Goals, Right Now!


If there is one message I must get across, it is this. You must start setting goals in every major area of your life, particularly your finances. Right now, whatever your age, whatever you are doing. Without something to focus on, the decisions you make and actions you take daily will not have any long-term direction, and will not result in any kind of achievement. Without direction, you will be caught

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51 'majoring in minor things', and at the end of the week, month or year you look back and think 'where did all that time go? I can't see any worthwhile things I've done!' Like rats on a treadmill, people tend to be caught up in a stressed and monotonous existence instead of designing a destiny and truly living. You see, the human mind is always pursuing some kind of goal, however feeble. If we dont focus our mind on long term goals that lead us to success, our minds will tend to focus on short term and puny goals that end up wasting our time and distracting us.

Must DO Money Mind-Set Exercise


CREATING A GOAL BOOK This exercise is designed to get you emotionally charged, so that achieving your goals is a MUST! It's nice to say 'I want a new car', but searching all the magazines for your dream car - make, model, color, wheel design, interior will really get your juices flowing! I'm not going to get you to analyze your goals or create a plan to get them yet. This week, all you have to do is go to the store and buy a big scrapbook. Then, book out some time this week to start dreaming. Anything at all that you would like to design into your life, cut it out and glue it in. It should feel a bit like your school days, and it should be just as fun! Get your partner involved if possible. Here are some questions you should ask as you design your life: Where would I like to live? What would I like my house to look like (castle, mansion, penthouse, acreage, and beach-side?)Who are the people I'd like to be associated with? What's my favored method of transportation (sports car, limousine, private jet?) What personal leverage can I outsource (cooking, cleaning, chauffeuring, personal assistant?) Where would I like to travel, and how would I like to travel? How would I give back to society?

What are some tangible things I'd really love to treat myself to (electronic gadgets, sports gear, shoes, clothes etc?)

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52 Don't limit yourself to these! Go wild! Then, each night and as soon as you wake up each morning, review your goal scrapbook and live the emotion as if these things had already materialized into your life. See a picture of what will surely be coming to you. The journey of a thousand miles begins with this single step.

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53

Chapter 7 The Biggest Lie Ever Told About Wealth


Why is it that 90% of the population find it so difficult to become rich? It is because all of us have been told the greatest lie of all, the lie that has been keeping us from becoming rich. Before you can ever become wealthy, you must first discover the truth about wealth and remove the wool that has been pulled over your eyes for way too long. Let me start off by asking you to do a simple exercise. I would like you to close your eyes and picture a millionaire in your mind. Picture the clothes the person is wearing, the car they're driving, how they spend their money, and how they dine. Go ahead and do this NOW before you go onto the next paragraph. Well, what picture came into your mind? If you are like most people, you would have pictured a millionaire as someone who wears the latest, branded clothes, who drives the newest luxury car model, who spends lavishly, who dines in fine restaurants and spends on the priciest, choicest dishes and most superb wines. You may have imagined someone who is relaxing in a cushy leather upholstered armchair in his mansion or yacht, puffing on a Havana cigar. Why is this so? Its because of the way we have been brainwashed by television and movies to think this is the way millionaires live and spend their money. It is precisely these beliefs and habits that actually keep us from becoming wealthy! The truth is that very few self-made millionaires live this way. In fact, the only ones who do live this self-indulgent lifestyle are the minority of millionaires who either inherited all their wealth or who made their money through sports or entertainment. Things that require great level of natural ability or physique but not financial intelligence. All of them usually have one thing in common. They inevitably end up losing everything within ten years. Their wealth is only temporary. Look at Mike Tyson, Michael Jackson, Bobby Brown and a whole list of other celebrities who made hundreds of millions within their careers. They are either all broke or heavily in debt today.

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What a Study of 300 Self-Made Millionaires Revealed


I recently read a great book, which also happened to be in the New York Times Best-Seller list. It's kind of like a modern day 'Think and Grow Rich', but a little more scientific. It's called 'The Millionaire Next Door, by Thomas J. Stanley. He interviewed 300 self-made millionaires to find out how they think, how they earn their money and how they spend their wealth. What he discovered was a shocking revelation that made his book an instant best-seller. It was discovered that many people who had high paying jobs, drove the latest luxury cars and wore the latest designer clothes and who appeared to be have millions to spend, were usually broke with a low personal net worth. Most of these professionals and senior executives of multi-national companies were what he termed Under Accumulators of Wealth (UAW). In contrast, those who were actual millionaires (that is those with a net worth of over US$1 million) lived very frugally and well below their means. Eighty-percent of them were born poor or from middle class families. They wore inexpensive suits and never bought a watch that cost more than $500. Most of them drove second-hand cars, never bought the latest models of vehicles and they usually invested a minimum of 20% of their income in the stock market or private businesses. He termed these people Prodigious Accumulators of Wealth (PAW).

Billionaires follow this Exact Same Pattern!


You should have received the audio with Bill Gates and Warren Buffett a short while ago, two of todays multi-billionaires. I really hope you took the time to listen to it, as it has already helped some of our members totally shift their way of thinking. What you may not know is in fact Bill Gates is NOT the richest man in the world. There are actually 2 men who are wealthier...unofficially at least. But that's irrelevant, because I want to make an important point here. The first person is Ingvar Kamprad. Ingvar is the founder of IKEA. He has been reported as being worth $53 Billion USD, out-gunning Mr. Gates. But despite being so wealthy, he still maintains his frugal habits that made him wealthy, which included: - He refuses to fly first class on airplanes. He only flies economy. - He drives a very old Volvo, and flat out refuses to buy a new car

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55 I wanted to mention another mega-billionaire, who, if he was still alive today would be a lot richer than Bill Gates! His name is Sam Walton. Sam built his billions starting from zero, which makes this all the more extraordinary. His empire? Wal-Mart. If you were to pull out the latest copy of Forbes Richest people on the planet, you'd see out of the top 10, that 5 would contain the last name 'Walton'. These 5 people inherited their money from Sam Walton. Which means, if you combined their total wealth youd reach about $90 BILLION US dollars!!! So, if Sam was alive today, he'd be worth double what Gates is worth. Pretty mind boggling isn't it?! One of the habits he credits to being so wealthy is that he too was extremely frugal. Some of his activities included: - When on business trips, he would always share a room with someone else because it was cheaper - Never flew business or first class, only economy - Sam would commute to work in an old pickup truck - He would wear clothes from his own discount store Finally, it just so happened that Warren Buffett is also known for his frugality. On record he's worth $42 billion US dollars, created through investing in stocks of solid companies. Again, Warren is a self-made millionaire, and I am focusing on those who are self-made as I'm assuming you aren't in line to inherit a few lazy million from your ailing uncle. Buffett's got a really insightful way of thinking when it comes to spending money. Whenever he's about to spend one dollar, he thinks 'it better be worth it because this dollar is worth ten to me in future'. When asked 'Warren why on earth don't you get yourself a new car instead of driving a 'bomb' to work everyday?' He answers 'If I buy a new car, it'll cost me about $20 000. In ten years time, the car will be worth very little, if anything. I know I can get at least 5% return every single year. If I invested this $20 000, in 10 years I'll have $158, 518. In 20 years, I'll have $1, 265, 000, and in 30 years my $20K will become $9, 960, 000.' He would then go on to say '$9 million is just a little too much to throw away on a brand new car.'

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56

The True Definition of Wealth


Many people think that a persons wealth is defined by how much they earn, by the clothes they wear, by the house the live in and by the way they live. We now know that this is not at all true. Here's a fascinating yet accurate way to define a person's wealth. All you need to do is ask how long a period of time he/she can sustain their lifestyle if they stopped working. The longer you can go on living your life without working another day, the richer you actually are. Breaking it down further, your wealth is therefore defined by three key things: (1) Your monthly expenses, (2) Your liquid assets and (3) Your passive income. Your liquid assets refer to how much cash or cash equivalents (like stocks, bonds & fixed deposits) you have to pay for your monthly expenses. Your passive income refers to income that you will continue to receive even after you stop working. This could include interest, dividends, royalties and profits from a business. Lets look at a mock example. West is a director in a multi-national company and earns a $20,000 monthly salary. He lives a lavish lifestyle that results in personal and household expenses a month of $18,000. He hasnt really saved much over the years as he has spent any surplus upgrading his house and car. His liquid assets are just under $18,000. Besides his full time job, he has no other sources of income. What is Wests level of wealth? Well, if he stops working today, his $18,000 will last him for just a month. So his wealth is one months salary. As you can see, wealth is defined not by the absolute amount of dollars, but by time. On the other hand, Daryl, a marketing manager in a retail store earns a monthly salary of $5,000 a month but she is much wealthier than West. How is this so? Well, over the last 20 years, she has diligently saved 20% of her income and invested it such that she gets returns of 15% per year (we'll throw you some specific strategies on how to get this later on in the money-mind-set program). Over the years, Daryl's liquid assets have grown to $1.32 million (you can verify this with a financial calculator). In addition, she has spent her free time building

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57 up a home-based business that sells unique collectibles over the Internet. Her small business earns her an additional income of $1300 a month. She may not drive a fancy car or wear a Cartier watch, but lets see what her wealth is. If Daryl were to stop working today, she would still retain the $1,300 monthly passive income that her home-based business earns her. Since her monthly expenses total $4,000 a month (80% of her income), she would have a net outflow of $2,700 a month. With her $1.32 million in accumulated savings, she would be able to survive for 40 years! (This is assuming that she does not invest the $1.32 million she has prudently saved up!). If Daryl were to put her $1.32 million into a risk-free fixed deposit account earning interest of 4%, it would bring her an additional interest of $52,800 per annum. This means another source of passive income that rakes in $4,400 a month. So you can see how Daryl can very comfortably go on forever without working another day in her life! Can you now see that your wealth (i.e. net worth) is not determined by how much you earn, rather, it is determined by how much you save and wisely invest. Even with just a middle class income, you could create massive wealth with the right mindset, financial intelligence, discipline and patience. I also want to conclude this chapter by saying that it is ok to dream, and dream big. The section on being frugal I've included to bring home an important point and its NOT suggesting you need to be 'cheap' or 'stingy' with your money. What it is suggesting, is that the habit of tracking your expenses and not wasting money unnecessarily must be present. What I didn't mention was that for noble causes - charities and the like, these people donate BILLIONS of dollars over the course of their lives. Gates and Buffett will leave a legacy through their foundations for man lifetimes after they are gone. They give and give. Warren also has his own private jet these days, so it proves he does spend when its warranted.

Must DO Money Mind-Set Exercise


BLAST YOUR SUBCONSCIOUS WHILE YOU WORK This is a secret technique that works and works to reprogram you without you having to spend any time or money... and best of all it has been said that an hour using it is as powerful as 4 full days of personal self-affirmations! It is truly amazing. It will work best for those people who spend long periods of time in

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58 front of a computer. However you can also use it if you only spend a few hours a week on your computer. Subliminal Blaster displays targeted messages on your screen at speed. These messages are merely statements of positive intent beliefs that you want your mind to accept as fact, without destroying their core objectives with conscious thought. It works on the principles of exposure and suggestion. The more exposure your mind gets to a particular belief, the more it begins to believe it. Exposure to statements of positive intent has been proven in numerous studies to have a deep and profound impact on your reality. Your brain literally re-adjusts in line with its beliefs, creating new neural networks and altering the bio-chemistry inside your body allowing for change in your life. Here are some useful tips to remember: 1. Use this software on a regular basis. From now onwards, whenever your computer is turned on, you should have it running your own programmed messages! 2. Set low message duration (0.02-0.04 seconds). 3. Add your own personal messages. Keep them positive! Any area of your life you'd like to improve - program at least 5 messages to be flashed to your subconscious.
To get a copy, please visit www.money-mind-set.com and enter your email so we can !

email it to you!

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59

Chapter 8 Compounding: The 8th Wonder of the World!


Compound interest, or compounding, is without a doubt the most powerful money principle that you are ever going to come across. All wealthy people understand it and regularly apply it to GROW their wealth. I have no doubt you have heard of this before, but what does it really mean to you? And now the question where most people fall down on: ARE YOU REALLY DOING IT? Is your investments setup to take advantage of it? Do you have a long term strategy taking into account compounding? You see, in my opinion, if you aren't doing it, then you don't know it. So if that's you, then I hope you can admit it to yourself, and I'll do everything in my power to make this book as compelling as possible to get you over the line. Compound return is achieved when you invest a sum of money at a particular rate of return. Instead of taking out the interest earned after a year, you add it back to the principal sum and reinvest this larger sum. So the next year, the rate of return is on a larger principal sum. This continues until the returns a year become greater and greater! For example, say you invested $100 into a stock that gave you an annual return of 20%. At the end of one year, you would have $120. Instead of taking out the $20 profit, you leave it inside for another year at the same 20%. At the end of the second year, your investment would grow to $144. The next year, it would grow to $172.80 and on the fourth year, it would grow to $207.36! In less than four years, your initial investment has doubled in value!

How long will it take Your Money to Double in Value?


Albert Einstein, the greatest genius of our time once remarked that compound interest was the greatest mathematical discovery ever made! He came up with a formula called the Rule of 72. It states that if you take 72 and divide it by the Annual Percentage return, it will give you the number of years your investment would double!

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60 For example, in the previous case, the percentage return was 20%. So if you take 72 20 = 3.6 years you will see your investment of $100 double to $200 in 3.6 years. The power of compounding was Warren Buffetts secret weapon in creating the second biggest fortune in the world, purely by investing in US stocks. Warren achieved an average annual return of 24.7% for 49 years! This means that his money doubled every 2.9 years (72 24.7). He turned an investment of $100,000 in 1956 into todays net worth of US $52 Billion! Anyone for Golf? I love playing golf. Its such a challenging game and how I react and feel on the course closely mirrors what is happening in my life off the course. Using golf as an analogy, lets say I challenged you to a game of golf and we made a friendly bet of 10-cents on the first hole, with the bet doubling on each hole. Would you take on this bet? Now, if you were familiar with the game of golf, you would know that there are only 18 holes, so how much can the bet be on the 18th hole? Well lets see how the bet increases on the first 9 holes: Hole 1 10 cents Hole 2 20 cents Hole 3 40 cents Hole 4 80 cents Hole 5 $1.60 Hole 6 $3.20 Hole 7 $6.40 Hole 8 $12.80 At the 9th hole, the bet is $25.60. We are already half way there, so how much could it be on the 18th hole? $100?, $300?, $500?

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61 Lets go on... Hole 9 $25.60 Hole 10 $51.20 Hole 11 $102.40 Hole 12 $204.80 Hole 13 $409.60 Hole 14 $819.20 Hole 15 $1,638 Hole 16 $3,276 Hole 17 $6,553 Hole 18 $13,107 By the 18th hole, the bet becomes a whopping $13,107! When given enough time, the power of compounding can turn very small amounts of money into huge sums. A more important lesson I want to illustrate is that initially, the money grows very slowly. Even at the halfway mark, it is only $25.60. However, the moment it reaches a critical point, the growth becomes exponential! In fact, between Hole 15 and Hole 18, within just 3 holes, it grows from $1,638 to $13,107, an $11,469 difference! How does this apply to you? As we've discussed, when you start investing, say even $100 a month, initially the growth is extremely slow. However, once it hits a certain period of time, the growth explodes exponentially! The trouble with most people is that when they see the slow growth during the first few years, they lose patience and abandon their investment plan. So you must have the patience to wait for the power of compounding to work for you and reward you with millions. An example of how the graph looks like is shown below. Once again, notice how the phenomenal

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62 power of compounding starts off very slowly but starts to grow exponentially once it hits a certain critical point.

Throughout this chapter I've mentioned illustrations of money growing at rates of return that you probably believe are not possible. This is OK and a very normal reaction How can I apply this principle to help me? Later we will be looking at your budgets and looking at ways to redivert some of your hard earned income into a carefully chosen investment. A good rule of thumb is: always pay yourself first then pay the bills second. What this means is your investment money comes out of your bank account first, then other expenses follow. The real secret is to get money working for you, instead of you working for money, so its multiplying and producing 24 hours a day. The Duke of Westminster, who is one of richest men in Britain with a net worth of over 4 billion pounds, said, Look after the pennies and the pounds will take care of themselves.

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63 Hes a master at knowing and applying this one money skill. The Duke has properties all over London which he rents out; he will never sell his properties because they are in prime areas and they are compounding at high rates of return. If you consistently save and invest and look after the pennies, then the dollars will take care of themselves How does compounding work best? It works best with a combination of three factors, which are: Time Having a long-term financial perspective (The longer the better). Discipline Having the discipline to invest in accordance with your financial plan irrelevant of unexpected events arising. Money A set amount of allocated money every day, week, month or year in accordance with your financial independence goal. Once you know how it works you can then calculate how much money you need to save per month to get to your goal. Youll discover this monthly amount by looking at a compounding table to see how much, different amounts grow at different rates of return. Youll soon see that it is not that difficult for you to reach financial independence. This gives you total clarity when planning The key is: once you know how much money you need for your ideal lifestyle, then with some help on strategies which you'll get as being a part of this program, you can create a plan to save that amount of money each month. This will give you the confidence and peace of mind to know that you will eventually be financially independent. Albert Einstein described compounding as The eighth wonder of the world. What would happen if I decide to delay saving a percentage of my income immediately? The risk of not saving a percentage of your income is very high because time works with us or it can work against us. If you dont start immediately it means youll have to invest more money or invest in a higher risk investment vehicle to achieve your goal of financial independence.

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64 So you MUST start today! If there is one action you must take from this chapter it is to start saving a percentage of your net income immediately. Go to the bank and setup an account which automatically deducts at least 10% of your paychecks, BEFORE the money ever gets to you.

Must DO Money-Mind-Set Exercise


TIME TRACKING (Part 2 of 2) Four chapters ago, I got you to complete this time tracking exercise. If you haven't done it yet, please go back and do it now! Please do this, it's VERY important and could well be the technique that helps you crack one of your blocks forever. The end result should have been that you found a point in your past that had some link or causative effect to your current limiting belief in the area you were trying to identify. This exercise carries on, telling you what to do once you've found an event. When Andrew was a kid, he broke his arm, got taken to the hospital and there he created an association between PAIN and Doctors and Nurses, whom in turn he associated with being studious. This resulted in some severe blockages when it came to his studies later on in life (remember, associations made as a kid don't necessarily have to be 100% logical!!). What you will aim to now do, is go back in time and replay the event so that the 'perfect end result' is achieved. As a sensible, grown up adult now - you'll be travelling back in time and dealing with the situation knowing what you know today, and not with the logic and judgement of the child or teenager that made up the damaging program. Your goal is to make new associations with that event as an adult. This will result in the unblocking of this particular block, and you will feel a great sense of relief lifted from your chest if you do this properly. The key is to re-live the event in the subconscious alpha level state.

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65 Re-imagine the event exactly as you did, but change the events to your perfect end result. So, in this example, Andrew re-lived his event seeing the nurses as caring and friendly and understood that his pain was caused by the fall and had nothing to do with the nurses and doctors who were only trying to help. Doctors and nurses are therefore kind and loving and bring pleasure instead of pain. If there's a particular person that's involved, bring them into your scene and do whatever you need to do - hug, talk, forgive. So, how can you apply this to your financial mind set? Ask yourself some questions to do with money, and see what you find. Some starters could be: "Why do I have trouble earning money?" or "Why do I get stuck earning a certain amount?" or "Why can't I develop passive income?" I'm willing to bet you'll be very surprised at what your subconscious throws at you!

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66

Chapter 9 Lessons from Paul Blackburn: The 1 Million in 1 Month Interview


One of our mentors is Paul Blackburn. He not only helps us, but he coaches and trains dozens of wealthy and successful people as well. But guess what? Even Paul gets blocks! That's right. The Master of 'Blockage Busting' sometimes gets held back by his own 'stuff' (to use his words). So, even a 'guru' who specializes in identifying and removing blocks can get paralyzed by what is going on in their head. He admits freely he needs to continually and consistently be aware of and work on this, in order to stay sharp. What I have for you in this chapter is the essence of a closed door call run by Andrew Grant, for 8 of his 'VIP' clients, where he asked Paul to share freely and unreservedly about his own journey and growth through his projects. It's quite amazing, because what I noticed is the same sort of 'junk' runs through most peoples heads whether it is only a small project, or if they are playing a bigger game, like Paul. Distinction #1 - Don't sit and hatch Paul mentions he did exactly this for 9 months on a project he KNEW he would make a lot of money. He also mentions that it probably cost him $200, 000 in lost income because he procrastinated. Don't get me wrong, Paul wasn't just sitting at home putting his feet up. He is one 'busy' man. But here's the thing EVERYONE is 'busy'! The difference between Paul and 'everyone' else? Most people are 'busy' doing minor things. They go to work for an hourly wage (nothing wrong with that) but when they get home, it's time to relax, watch TV and sit on the sofa. Sure, it's still keeping 'busy', but what difference would it make if they majored in MAJOR things, like spending an hour a day dedicated to improving their wealth? What other projects are you sitting on; that you feel should really be up a running making you money? How long have you been sitting on them? Paul waited 9 months and lost $200, 000 as a result. How much are you losing? What 'excuses' are you telling yourself as to why this isn't happening? What are you going to DO about it?

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67 Distinction #2 - Associate a meaningful reward and the possibility of losing something valuable to an outcome for maximum results Paul uses this exact strategy with many of his high net worth clients. Rewarding someone for an outcome is not new. For a few people, this movement 'toward pleasure' is enough to get them fired up. They see the end result, and it might be something intangible like recognition from peers or feeling a sense of achievement. A larger percentage though is motivated by tangible things, such as cars, houses, boats, money. In the example on the call, a lady was having trouble coming up with a topic for her new website. The reward? She really wanted a half day with Paul. And he gave it to her! Another and MUCH more powerful driving force for people is the drive to move away from pain. Away from losing something valuable, away from disappointing others, even ones-self! People will go to much larger lengths to avoid pain than they ever will to gain pleasure. Studies have proven this time and time again. You may notice these very patterns appearing in your life (think of some examples where you've avoided pain and compare them to situations where you've been driven by pleasure). So what did Paul do on the call? Well, he told this lady to put her CAR on the line. If she didn't come up with a topic the next day, Paul would gain full ownership of her precious car. It wasn't just a joke either. He was serious. If he was going to play fair and reward her with a half day with him, he would expect her to play fair and suffer if she didn't deliver. I think you can guess the result - what took her weeks to decide (and she couldn't even decide!) on a topic was resolved in one night, under the 'right' circumstances! So how can you apply this? Well, first determine whether you are primarily motivated by pain or pleasure, but it is a lethal combination when you use both. Think of something important you've been putting off. Then make COMMITMENT to somebody else (not yourself) as to when you will achieve it, and what you are willing to put on the line if you don't. I think you'll like the results very much. Distinction #3 - People ALWAYS have a good reason why Let me elaborate on this. People always have a good reason why THEY CAN'T do something. I'm sure you're aware of all the reasons people give to explain why they're in a sub-optimal position. If you examine these closely, many of these reasons resemble exactly what this program is designed to assassinate - mental blockages. The most common reasons given are no time, no money, not enough

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68 skill, not a risk taker, must be perfect, must analyze everything, too busy, and too skeptical. I'm sure you know a person who makes up some or all of these. Maybe you know that person INTIMATELY? If you've followed all the exercises in this program closely, you'll already have come up with your WHY reasons - compelling, worthwhile goals to drive to. Follow the WHY and focus on that instead of the 'WHY I CAN'T' do something. Remember - whether you think you can or can't do something - you are always right! Distinction #4 - Activity always expands to fit the time This concept I've found to be so true in all areas of my life. When there is no urgent deadline, things just 'cruise' at an easy pace, and fill up the time. But put a time frame and make yourself accountable, and things start to REALLY happen. This is true both on a long term (months/years) and short term (hours/days) scale. I'll give you a quick example. In my time as a personal trainer, I myself used to hire a trainer to train me because I realize how important it is to keep myself accountable to someone else even though 'in theory' I know what I should be doing. As part of my sessions, I used to book 2 hour sessions with trainers, and by the end as you'd expect I was pretty stuffed. Then I started shortening the sessions to 1 hour, and I found I was lifting just as much and feeling just as fatigued as the 2 hour sessions. Deciding my workout could be even more efficient; I decided to cut down my sessions to 30 minutes! Now I know when I go the gym, I have 30 minutes with which to be as intense as possible, stay super focused and then get out of the gym so I can do other stuff. My mindset was completely different, and in 30 minutes I was finding I could still get the maximum benefits in such little time. But I had to schedule that time, and I had to make sure that someone was there to keep watch and ensure I was on track. Do you ever find things that should take you 30 minutes or less are taking you 1, 2 or maybe more hours? On a long term scale, do you find things that should take you 1 month max are taking you 6 + months, or heaven forbid, years? Why is that? A great question I ask myself which has been very effective is this: "If my life (or the life of my child - works better for some people as many value others lives more than their own) depended on me getting this task done in 30 minutes, what

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69 would I do?" It's a great question to cut through the fluff and get focused on the super important things (you may have heard of pareto's 80/20 principle). Distinction #5 - It's not about the money You'll hear Paul say in the call that he has been doing the mental toolbox seminar for 2 decades now. When he stopped 'chasing the buck' things started to grow massively. Paul and Mary had always wanted to help people, but it was only recently when they focused on their 'WHY' did they monetize it profitably (cracking a million in a month isn't too bad, is it?). You see, Paul just loves playing the game now, and he loves hanging out with other 'eagles'. The money is nice and a good way to 'keep score' but you'll notice he mentions he wasn't that phased when he went out shopping for a Harley or a Jet-ski for himself. Distinction #6 - The Gravitational Pull of your inner circle Finally, both Paul and Andrew swear by this law. The reason? It has worked miracles in their own lives. The 5 people you spend the most time with are absolutely crucial, because this law states that after a period of time, your annual income will be the average of these 5 peoples incomes! Wouldn't it be nice to hang out with 5 people who make at least a million per month? If you listened closely, they don't rest on their laurels - Pauls got big plans of $20 million+ next year. The bar just keeps getting raised higher and higher, but the scary thing is those 5 people that Paul hangs out with are all up for the same challenge.

Must DO Money Mind-Set Exercise


Write down the 5 people you spend the most time with. Analyse each person: does spending time with them take me closer to, or further away from my goals? Do they drain my time or energy, or do they inspire and add massive value? This may be a hard wake up call if you identify that you need to cut some ties if they aren't where you want to be, but it must be done.

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70

PARTING NOTE You must create riches in your mind before it will ever materialize in your life!
After reading this book, you've probably realized there are blocks holding you back from creating your dream lifestyle. I hope this book helps you to IDENTIFY and REMOVE your subconscious blocks which are chaining and programming you at your current levels. The rules, strategies and resources we have given in this step by step program will help you get from a wealthy mind to a wealthy bank account. We have elaborated absolutely every strategy that has helped our readers obliterate their blocks what exercises they did, how they changed their thoughts, what resources and essential tools are crucial etc...Our hope is that youll be able take these same tools in this book and get the same results what you do with your riches after that is up to you! This book gives you all the information you need to start you towards your path to financial freedom! In the first chapter we have talked about what it means to be financially free, why most people are not financially free, how you can lay the foundation for your financial freedom and the Mental-Emotional-Physical success triangle. You did an exercise to help you identify some of your emotional blockages that may be preventing you from making passive income. In the second chapter we found out the reasons why most people churn money even though they earn a lot. We also learned the three steps we need to focus on to be successful. The exercise in this chapter helped you to begin creating emotions associated with your dream life, and to take the first step to make it a reality. In the third chapter we analyzed the Four Types of money you need to understand in order to become financially independent, 6 tips to help you create more passive income opportunities and my secret alpha wave block identifying technique. In the fourth chapter we checked how our fears and habitual behaviors subconsciously hold us back from achieving success by staying in a comfort

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71 zone, four simple steps to move out of your personal comfort zone into a world of opportunity and one of the most powerful techniques available to find out how and where you associated your beliefs towards wealth and money. The main focus in the fifth chapter was the major components of the formula for successful financial behavior change that successful people adopt and a step by step plan teaching you how to swing each factor in your favor, so change becomes natural, desirable and easy. In the sixth chapter we analyzed the reasons why most people don't take charge of their own life and fall for someone else's dream as a result. We also talked about the cascading effect that your goals has on your activities and hence outcomes, the 5 silent killers that destroy peoples goals and what you can do to prevent it happening to you. In the seventh chapter we have seen the secrets revealed from a study of 300 self made millionaires and the similarity between these millionaire and 4 multibillionaires. We also understood the true definition of wealth. Here you learned an innovative way to reprogram your limiting beliefs while you work. We also analyzed why all wealthy people understand and apply the power of compounding and why you need to take action immediately to allow compounding to work for you. We also studied several case studies of people, who have built wealth through compounding. Finally we analyzed why the guru's can never get complacent and must always sharpen their mindset and the Six Key distinctions that Paul Blackburn shared which helped him to crack the million in a month barrier. I hope you are updated with valuable information about making money and nourishing your mind. Our goal is to get you making money to pay back the cost of the book at least 10-fold! You can. and at the same time help others to break through their financial roadblocks!

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72 It has always been our passion to help others succeed!!! Which is exactly the reason we decided to put together an online membership program which teaches you EXACTLY what we did, step by step, so you can achieve the same results. Essentially it boils down to how you: THINK, FEEL and ACT around money.

The Easy Way


If the concepts in the book have been original for you and made a significant difference in your life, then please keep reading. Our mentoring program has been hand-crafted to guide people just like you in explicit detail every step of the way. We shower you with every strategy we know that eliminates subconscious blocks in a systematic 12 week course, and load your mind with the best and most profound concepts proven to have helped hundreds of people break through their blockages. If you enjoyed this book you will LOVE the program its so much more interactive and detailed. We also have involved some of the worlds wealthiest minds (with a net worth ranging from $5 million to $50 million), who share their success philosophies and strategies. We interview them exclusively about their money mindset, and how you can achieve it too. Well give you access to the worlds premier business, marketing and mindset books and wealth creation seminars with our own personal summaries which we share with you so youll never have to purchase another book or spend thousands on a seminar again! Plus you get access to us to personally answer your questions and point you in the right direction. To find out more about what the mentoring program covers, please visit us at www.money-mind-set.com! Good luck and hope to see you in our members program! Successfully Yours, Andrew Grant, West Loh and The Money Mindset team

2008 - 2009 West Loh and Andrew Grant

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