Monday, July 28, 2014

Financial Abundance | Shiftng our mindset from consumer to producer

It's time to connect once again and bring up the topic of financial abundance.  Hopefully, your savings are growing nicely since we first talked about it back in January.  Perhaps you've  even written down a goal to increase your income.  That's what we're going to talk about today.  I couple of years ago I read  Millionaire Fastlane by MJ Demarco.  I plan on rereading it soon to refresh my learning. But one lesson I remember clearly from the book was the idea of shifting from being a consumer to a producer.

As consumers, we generally will receive a paycheck every so often. We then take the money and utilize it to consume products and services. We pay for our bills, we buy food, gas, other necessities.  We live the life of consumption for a couple of weeks until we are paid again and repeat the cycle.  Here's the thing, a life of consumerism has a set path.  We make enough to pay for the things we consume, but not enough to live the life we desire. We will never have abundance if we only operate as consumers.

I remember walking through a neighborhood filled with expensive homes.  As I strolled through the perfectly maintained streets I wondered what the people inside "did for a living."  I now know this wasn't the right question to ask.  Mainly because they probably didn't have job like most of us.  Instead the better question was "what did they do to get where they are."  The second question is one that opened my mind to the various multitude of possibilities available to create infinite levels of abundance.  I've since learned that these people living in the large homes are most likely producers.

Producers are those who create value for others in the marketplace.  EVERY SINGLE THING YOU OWN OR CONSUMED WAS CREATED BY A PRODUCER.  For years, I gave all of my wealth to producers without even thinking about it.  I bought, bought, and bought.  Yet, at the same time, the only source of income I received was directly related to my time.  Meaning, if I did not give up 40-50 hours a week to my employer, I would not receive any income.  Producers, on the other hand, would often be outside enjoying their day as I drove through their neighborhoods on my lunch break.  Their time and money was not connected.  As long as I remained just a consumer, my life would never really change.

It took a while, but I began the practice of looking at everything around me as something that someone created in order to make money.  I know this is common sense but we don't really think that way.  We just buy.  Once my thinking shifted, I decided that I too should become a producer.  I began to see my knowledge and skills as something that could generate an income.  If you want to experience a greater level of abundance, you should pull out of the mindset of only buying, buying, buying and move towards creating, creating, creating.  But here's the caveat.  It's about creating for the purposes of adding value.  The more value you add, the greater your reward from the marketplace.  The growth can occur exponentially.

The first time you start to make the shift from consumer to producer, you may not see results right away. In fact, you may even lose a little money (The first time month I went into business I made $105.00. The second month, I lost $110.00).   But, over time, it became easier to generate more ideas of what you can create/produce.  If you take action on those ideas, your streams of passive income begin to grow.  Eventually, you become less and less dependent on the paycheck that comes in every other week.  I talk to coworkers who have worked for the organization for years.  They don't what they would do if they ever lost their job. Being fully dependent on one source of income is not the business.  In fact, it's dangerous.  Even if you aren't able to replace your income with your creations, as long as you can generate a source of income (not matter how small), you have taken a giant step towards financial freedom.  I don't make enough to replace my income. But if I were to lose my job today, I'm way more confident in my ability to grow passive income now then when I was operating solely as a consumer.

I implore you to leave the life of consumerism and begin to generate income from your own efforts outside of work.

Here's your homework:

  • If you haven't already done so, open up a savings account TODAY and set up a bi-weekly draft.
  • Enroll in your company's 401(k) and take advantage of the match (free money).
  • Think of and write down at least 3 ways you can create another source of income. It doesn't have to be huge. Just write them down.  If you think of more than 3 ways then keep going!
  • Of the ideas you wrote down, circle one that you know you will follow through until completion.  For example, don't circle "write a book" if you don't think you will complete the process.  
  • Take one action today towards launching the idea you circled.  
  • Get the book "The Millionaire Fastlane."  MJ shares so many life changing ideas that aren't in typical millionaire books.  
  • Set a dollar amount goal of how much you want to generate in the next 60 to 90 days.  
  • Get to work.
We have 5 months left in the year.  Let's dedicate these 5 months towards establishing and growing our income streams.  

Be blessed. 

  1. I love love love Mondays because your posts always start my week with a bang! Have been an avid reader of your other content (hair, beauty), and I really like how you maintain such a high standard. Keep up the great work - btw just bought the book, can't wait to start creating! :) - Natalie M, Los Angeles

  2. Thanks Natalie. Believe me, that book is an eye opener. Even if you've read a bunch of millionaire type books before, you will learn something valuable and different from the others. I'm going to re-read again.

  3. Very interesting thoughts. I think as you say one of the keys is to consume less. Basically dont buy so much and dont believe ads when they say a thing is "a must have".

  4. Hi Lisa,
    Consuming less is part of the message. The greater lesson is to produce more. Produce, produce, produce!

    1. Im with you, as long as it doesnt involve encouraging others to consume more.:)

  5. I'm a little late to this post but WOW.. I have so much in common with you. I downloaded "Millionaire Fastlane" like 3 weeks ago! The irony, lol. I also drive around "inspirational neighborhoods" as well. I took it a step further, believe me not in a psycho stalker type of way I'm a harmless woman (oh that sounds bad lol). I did a general property assessor search on some of these homes, I HAD TO know what these people did for a living. My findings? Doctors, lawyers, finance execs (predictable) but ALSO a well known author sprung up, as well as entrepreneurs of multiple companies: construction companies, parking garages, tech servicing, a major supplier for hospital equipment, etc. One of the most expensive homes was owned by an owner of an oriental rug store that I drive past without thinking of at least three times a week.

    The takeaway for me was how many of these owners of 2 million dollar homes seemingly created wealth in areas that no one talks about because it doesn't sound "fancy or glamorous." As a result I've found it more important these days to get a feel for what's lacking in my market area as opposed to trying to do what everyone else has been trying to do.

    As always Nadege, your writing resonates with me in a very powerful way. Have a blessed week!

  6. Let me know what you think of the book Frenchelle. Send me an email, we should connect.