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Want to Make More Money? Understand the Multiplying Effect

When I was in my early twenties, my father sat me down. The advice he gave me fundamentally changed the way I thought about work and led me to my current career.

Stephen Key

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How much money do you want to make every year? If you haven’t seriously asked yourself that, you should. Why wouldn’t you? It’s a very easy question to answer. And until you’ve really thought about it, it’s impossible to determine how you’re going to get there.

When I was in my early twenties, my father sat me down and asked me that same question, point blank. The advice he gave me after fundamentally changed the way I thought about work and led me to my current career.

I told him I wanted to make R500,000 a year. At the time, I thought that was a lot of money. You’ll work for about another 30 years, he told me. So how much money would I make in my lifetime? I did the maths: R6 million.

He asked, was I happy with that amount? If I wasn’t, what was I going to do about it?

My father was a smart man. Six million didn’t seem like a lot of money over 30 years, given taxes and living expenses. The math didn’t add up: Life is short, and it didn’t seem like enough for a lifetime of work. When I looked at the last paycheck I had received, I wasn’t happy.

My father told me the only way to create wealth was to find a business opportunity that had a multiplying effect and that didn’t require my presence. It took me some time to figure out what that meant. The latter part was easy enough.

He explained, “A doctor can only help so many people in a day and in a year. A lawyer can only try so many cases.”

To create great wealth, I needed to find something that didn’t require my hands or my presence. Fair enough.

The second was trickier: What did having a multiplying effect mean? He told me that I needed to piggyback on or create something that would be used over and over again – that people never stopped needing.

In other words, he explained to me the idea of collecting a royalty. That made sense to me. And it’s what spurred me to start licensing my ideas.

Today, there are many examples of businesses that share these qualities. App developers, for one. Franchises are another. And of course, there are countless examples of more traditional methods, like the stock market, bonds and real estate.

For me, the concept of the multiplying effect was tremendously attractive. Some people derive pleasure and contentment from being masters of their craft, from working day in and day out with their hands.

That’s not me. I wanted to make money and I wanted to be able to do new things, to constantly challenge myself in new ways.

How much money do you want to make? How are you going to make it? Finding my multiplying effect – writing a book, offering a course and licensing my ideas – has allowed me to live where I want, have people working for me elsewhere and be my own boss. It is incredibly freeing. It works for me.

I’m not saying it’s for everyone. But I want you to critically ask yourself how much you want to make. And do the math.

Stephen Key is an inventor, author, speaker and co-founder of InventRight, LLC., a Glenbrook, Nev.-based company that educates entrepreneurs in how to bring ideas to market. In the last 25 years, he has liscenced more than 20 new products. He is author of the One Simple Idea series of books including One Simple Idea for Startups and Entrepreneurs, (McGraw-Hill, 2012).

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Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.

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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes

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The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online

online-learning

I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on Entrepreneur.com.


Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands

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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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