But
of course, there is a reason. You see when you have that "AHA" moment.
When things suddenly and rapidly make sense, a transformation occurs
from the inside out. Suddenly you are unstoppable. Suddenly, it all
works for you. This Article explores the AHA moment of Jack Reynolds, a
colleague of mine and good friend.
Jack
Reynolds worked at the same insurance office that I managed several
years ago. I quit that job and moved on when I had my own "AHA" moment.
To want to get rich easy, it somehow seems like a tainted concept. It
is looked down upon by every financial planner driving a beat up old
Ford in the country. There is an official line these "professionals"
all tow and that is save money, work hard, invest wisely and wait
decades. That's essentially the imprisoning knowledge we pay these
people to have us believe.
I
was like you are. I honestly cannot see any reason why I shouldn't get
wealthy easily and quickly. Why does it have to be a long torturous
journey? Jack Reynolds felt the same way and even more so when we met
up for lunch several months later and he saw my new fully equipped,
paid for by cash Mercedes Sportz Saloon. I even parked it right in
front of the pavilion of the restaurant in full view. I pointed my key
at my car and beeped it, it beeped back and locked all doors. I
strolled in casually into the restaurant like a man without a care in
the world. And that's exactly what I was.
I
wanted to get rich easy and I wanted it fast. I realized something
about money that made everything that followed possible. I realised
that value is money. I also realized that value is free. How can this
be? Why do we work so hard for money, when we can get and sell value
for free, or sometimes at 50 cents in the dollar.
Let
me explain a little more what I mean by value. Value and money are two
sides of the same coin. The chain of money goes like this.....Human
Need....Value....Money. It all begins when someone develops a need that
they are willing to pay cash for to fill. To the human with that need,
the product or service to fill that need becomes valuable to the point
where they are willing to part with hard earned money to fill that
need. It is this intangible property, VALUE that is magical. Because
VALUE is subjective.
Jack
Reynolds AHA moment was to realise that the way to get rich easy was to
buy a dollars worth of value for 50 cents or less and re-sell that
value for $1.00 or more. My own particular interest was in Real Estate
and Advertising arbitrage. By recognizing that buyers are different and
that one sellers utility is to sell for very low and very quickly. A
buyers utility for exactly the same object, may be to buy expensive,
but take their time and enjoy their money spending experience. Both are
right. Two different people, same objective product whether it is a car
or a house or anything in between. The same market forces are at work.
But it is the OPINION OF VALUE that controls the two different prices.
Also the underlying reasons for this opinion. For example a divorcing
couple selling the house, may or may not be in a hurry to sell. But
more often than not, a lower offer will be taken simply because of the
current utility of the couple.
You
can guess what we do to get rich easy, applying this knowledge. Very
simple, we find these types of sellers and buyers and marry them
together. We buy $1.00 of Value for 50 cents or less. Then we sell that
same value for a dollar or more. In this way we create compounding
returns of an astronomical rate.
In
the end, it's compounding we want. It's compounding and leverage that
we all strive for to get rich even easier. I don't know if you have
ever played with a calculator and tried compounding say $100 by 30 or
40% but if you have, you would know, that the number gets exponentially
astronomical because of the high compounder. If the compounder is 200%
or 500% (or 3 times to 5 times your starting capital) You see some
amazing figures that are beyond belief after just a few
multiplications. When you invest in value, you need not wait for an
annual return, because you control your own circumstances and can
compound weekly or even daily if you want to.