Saturday, February 13, 2010
The book I read for this week was Kangaroo Millionaire by Marc Hrisko. The Kangaroo reference in this book is about his wife. She is from Australia and motivated and encouraged him to reach his potential. There are so many tips and advice in this book about getting rich I don't even know where to start. I suppose I will give what Hrisko considers the 7 Counterintuitive Secrets to Springing Ahead in Life and Wealth. However, as a disclaimer, this book offers so many resources and tips within it's short 155 pages I will not be able to cover the entire scope of this book. But I will do my best...
1. Ignore the Advice of 99.99851% of the Planet: Hrisko has a great point here. There are over 6.6 billion people on the earth that have not made a million dollars and a lot of those people try and give advice on how to get there. You should take the advice of the people who are there... people who have done it. It is wise to find a good mentor that fits into the million-dollar category, so you can sponge up their wisdom. This point illustrates why I do this blog the way I do... Many people have suggested that I don't write about books, but give my own predictions and advise based on what I know. Well... I don't know much more than what I can be taught. I am just starting my life and I would be lying if I tried to pass off the information I receive as my own. The authors I review are the millionaires/amazing leaders and I am merely the middleman between you and their wisdom.
2. Debt Isn't All Bad: Debt to make money isn't for everyone, however, if debt is used correctly it can make you boatloads of money. Hrisko states that a man that is 30 million dollars in debt is a very rich man. All rich people are in some sort of debt. Additionally, it is very hard to be millions in debt if the lender doesn't think you have something to make you worth that much. Now I will give you a tidbit used in this book that I think is risky, but it is genius...
Raising $50,000 in 20 Minutes Using Credit Cards Without Interest or Finance Charges
You get Courtesy Checks from your credit card companies in the mail several times a year. Normally, people just discard these. Save them. They cost nothing to use and have incredible potential if you plan correctly.
1. Figure out what you need the capital for... flipping a property, investment property, business, etc...
2. Write a Check From Card A, for as much as your limit, (After you have increased your credit limit as high as you can, just call and ask) to yourself and deposit it into your checking account and pay for the down-payment of your investment.
3. Before Card A's due date, write yourself another courtesy check from Card B and deposit in your checking account.
4. Use the money deposited in your account from Courtesy Check from Card B and pay off Card A's Balance.
5. Do this as many times as necessary to have free capital raised. I advise you to have a plan of return on investment that will surpass the amount of capital you have "raised." It's obvious, but I don't want anyone to think this a great idea and go buy a big screen TV and see how long they can go without paying for it. That's just dumb.
3. Be the Stupidest Person in the Room: The smartest people in the world are not the richest people in the world. "If IQ equaled riches, Albert Einstein would have been the world's richest man. He wasn't." The trick to riches is surrounding yourself with the smartest people you know and using their knowledge. Marc Hrisko contends that any person with average intelligence, armed with the right education and a Kangaroo mentoring their path can be a millionaire within 2 to 3 years. Use the knowledge of those around you and rocket yourself to riches. The old saying used to be "If you want something done right, do it yourself"... That's not a smart saying.... "If you want something right, have the right person do it"... That seems a little more reasonable. To think that you are the best at everything you do is arrogant and ignorant. Use your team, and analyze each person's skill sets to best serve your purposes.
4. Be Lazy: I got to say... I don't like the name of this chapter, but the message is good. The idea is not to do more than you have to. There is no reason to micromanage everyone around you or do things that aren't worth the time. If you monetize your life and worth, you may find that an hour of your time is worth X. If you don't like cleaning your house than get quotes for the cost. If the price of cleaning is Y, then you subtract X by Y and you have the real cost or the savings for you. Monetize your worth: If one of your income generators you could be working on instead of cleaning is finding, buying, and renting out multi-family properties. The profit you realize from the average property divided by the time it takes from start to finish is what you could be making. Add that to the hourly net income you receive from your main career. You might find that you are worth $30+ an hour in an 18 hour day and to hire a housekeeper will cost $25 an hour. This means that if you do it yourself (and you don't find it enjoyable) then you are LOSING $5 by not outsourcing. So it seems like a no-brainer. Also on the subject of being lazy, Hrisko points out the same phenomenon that Tim Ferriss did in 4-hour Work Week... Crises don't happen often, if ever. People don't need to get a hold of you all hours of everyday. Teach your team to fish, meaning teach them to solve problems for themselves and you will free up the phone time they might consider a crisis phone call. You'll have more time to do other things that YOU need to get done.
5. Pay Higher Prices: You get what you pay for. If you go with the lowest bidder, in most situations you will get the lowest quality. If you never go with the lowest bidder than you solve that problem. The time wasted on fixing problems created by the lowest bidder are not ever worth it. Usually these lowest bidders will cost you more money and time in the long run than you ever thought possible. For example: if you have the lowest bidder come out and fix your car he may just wrap the engine in duck tape and in one more week you will have way more of a problem. Higher prices also correlate in a social arena. If you are looking for a club or activity you should want to join the more expensive and more elite club. This will put you in contact with the highest achievers. And as we learned earlier, surrounding yourself with the best of the best is a great way to rocket yourself to riches.
6. Be Unoriginal: You don't have to invent the wheel. The richest people in the world did not come up with their ideas from scratch. Hrisko made his fortune in real estate... what a novel idea. Oh wait! People have been doing that since.. forever. Hrisko was even one of the youngest members to ever be inducted into the Real Estate Hall of Fame. He picked something that worked and made it big. Look around and see what made money for other people and jump on that train. There are several ideas that will get you there, so do the one you are most interested in. Real Estate, Stocks, Forex, Franchises, and the list goes on...
7. Give Stuff Away: "We make a living by what we get. We make a life by what we give"- Winston Churchill. It is very important to donate your time, treasures, and talents. Besides it being the right thing to do, it comes full circle. You get what you give. As Hrisko writes, generosity is like a boomerang. Additionally, when you are known for being a generous person, people are more inclined to work with you. If you are known for a scrooge or a miser with your money than people are careful in their dealings with you, less inclined to trust and deal with you for fear of being "taken."
This book is full of resources and I would be remiss if I didn't share them with you... please look at each one, they are worth the glance. I wouldn't take the time linking them if I didn't feel strongly about this.
http://www.Mint.com (I love this site, I have been using it for years and it does a wonderful job of keeping track of all my finances, setting up budgets, and alerting me of uncommon activities)
http://www.Zagat.com (Find a nice place to eat near your home)
http://www.MarcHrisko.com (Type in your name and email on the left and you'll get a free E-Book)
http://www.Rememberthemilk.com/ (A cool site that helps you keep track of "to-do" activities)
http://www.Volunteermatch.org/ (Find a volunteer organization around your area and make some changes)
http://www.Gate1travel.com/ (Last but not least! I can't believe I didn't know about this site sooner... It enables you to travel internationally for less than a thousand dollars in a lot of cases... Including airfare!)
This was a great book and I wouldn't be surprised to see it on "The List" in the near future. I look forward to hearing more from Marc Hrisko. He has a great story and he is a good writer.If you have any questions on the book don't hesitate to ask. I would be more than happy to help anyone that wants it.