In 1995 there was a survey done called the Panel Study of Entrepreneurial Dynamics.

64,622 American households were called at random.

From this group, researchers found 800 entrepreneurs who had been in business 3 months or less.  (As a control group, they also got together 400 average people as a sample of what average people think).

Each survey participant got a 15-page questionnaire.

As detailed in the article The Psychology Of Success on Fortune.com, the survey basically identified the two mental ingredients that leads to the kind of success experienced by Bill Gates or Steve Jobs.

Successful entrepreneurs:

1. Don’t have as many reasons for why they won’t succeed.
2. They don’t care as much about what other people think about them.

Discuss

Which one is challenging you the most right now?  What are you doing to overcome it?

—> Discover what you’ve been missing: People Committed to Wealthy Living

I came across this excellent write-up on the word Commitment and thought you would appreciate seeing it as well.

Commitment

Until one is committed
There is hesitancy, the chance to draw back
Always ineffectiveness.

Concerning all acts of initiative (and Creation)
There is one elementary truth
The ignorance which kills countless ideas and splendid plans:

That the moment that one definitely commits ones self
Then Providence moves too.

All sorts of things occur to help one
That would never otherwise have occurred.

A whole stream of events issues from the decision
Raising in one’s favor all manner
Of unforeseen incidents and meetings
And material substance
Which no one could have dreamt
Would have come your way.

Whatever you can do or dream you can, begin it.
Boldness has genius, power and magic in it.

GOETHE

Have you heard the old saying “It’s not what you know, it’s who you know?” That was certainly true in the Industrial Age, but in the Information Age, the saying needs some tweaking.

Now, the new mantra is: “WHAT you know determines who you CAN know.” And who you can know makes a difference.

A Great Transfer of Wealth

Many people today are hurting because of the new economy.  It’s true that much of it was caused by greed and excess on Wall Street and in Washington, but there are also external forces, such as the rising use of the internet, that are transferring wealth away from one group of people and into the hands of the other.

On one side, you have those who believe in working hard, saving their money, and investing in a well diversified portfolio of mutual funds, bonds, and other paper assets.  On the other side, are the business owners and investors who are erecting virtual real estate that is dwarfing the value of even tangible real estate.

How to Cope

I would consider investing time and money in building your network.  Screen who you spend your time with carefully: are they moving forwards, or slipping backwards?  Are they growing, or decaying?  Adapting, or dying?

I know it may sound a bit harsh, but it’s true that there are those who are adapting or growing, and those who are decaying or dying.  It’s the power of the mind now that will win out financially.  In the Industrial Age, it was your labor that was valued.  In the Information Age, it’s all about the power of your intellect, and your ability to make money work hard for you, rather than you trading time for money.

Assets & Liabilities

We all have a Balance Sheet.  We have Assets and Liabilities: an asset being something that makes us money whether we work or not, and a liability being something that costs us money whether we work or not.

While this is a great definition for looking at our financial health in numbers, there is a variable that does not appear on your Balance Sheet.  The intangible that is fast becoming your greatest asset: your network .

Your Net Worth = Your Network

Seek people who are leaders in their respective fields; those who are on the forefront of innovation and progress; the thought leaders and the doers.  By being around the right people, you will think, talk, and act differently than the masses.  And that, my friends, is the key to financial security and financial freedom .

Action Steps to take NOW:

1. Read posts at www.NetworkingEffectively.com to improve your communication skills.

• Learn how to Network from a professional.  See what he recommends you do and say when meeting people.  These skills are invaluable.

2. Attend a local Chamber of Commerce meeting.

• Meet with local business owners and find out what they are experiencing as problems and what trends they see.  Listen more than talk: you have two ears and one mouth for a reason.  You can pick up changes you should be aware of, or a business opportunity.

3. Join groups online in social forums.

• Make yourself known as someone who is willing to learn about what’s going on in the world today.  Ask tough questions and seek areas of interest to you that you believe will be of importance to you now and in the future.  Again, look for trends.

4. Increase your knowledge of the internet and its affects on business.

• Read publications like Forbes , Businessweek , Fortune , and The Wall Street Journal . Read top blogs related to different subject matters.

5. Attend conferences and seminars.

• These events are where the best and brightest come together.  Share in their experience, wisdom, and insight.  Take advice from those who have been there/done that, or are currently doing it.  You’ll learn priceless information, and information is key in the new economy.

6. Meet with local leaders.

• Take people to lunch in your area that are business or social leaders.  Talk with Economic Development or other local officials.  Find out what plans are being made for your area in regards to business and economic development, and see how you can take part in improving the future.

Please leave comments about your experiences!

Robert Kiyosaki, the international best-selling author of numerous books including Rich Dad Poor Dad and Increase Your Financial IQ , explains the four different types of people in the world of business as:

1. Employees

2. Self-employed/Small Business Owners/Specialists

3. Big Business Owners

4. Investors

Watch the video below for great financial training on each of these people directly from Robert.  Once you are done with the video, I would highly recommend reading his second book Cashflow Quadrant for greater clarity on the advantages and disadvantages of being one or another of those people.

What thoughts do you allow in your head?  Are they positive or negative?  Do your associations with friends give you value or harm your growth?

I’ve been around people before who are just plain negative or pessimistic.  Most don’t realize it, but their negative thoughts over time lead me to want to run away.  Have you ever felt that way?

These are the people that always have a reason or excuse as to why their life sucks.  They whine, complain, or are otherwise generally moppy.  They tell you what’s wrong with the world, and offer few, if any, solutions…or do anything to change their circumstances.

I believe it’s time to start asking the tough questions:

• Do you have friends that are bringing you up, or tearing you down?
• What do they have you reading?
• What do they have you listening to?
• What words do they have you speaking?

All of these are important.  The difference between those who are successful and those that aren’t are habits and shifts in mindset.

Your Challenge

I challenge you to make a commitment that you will improve yourself.  Put down the TV remote and pick up a good book, watch some good Youtube videos on leadership or personal development, or listen to an audio that will help you further your brain.  The more work you do on you, the less you’ll have to worry about the stresses and pressures of life.  Surround yourself with those that are encouraging you in the direction you want to go.  If you are unsure of which direction that is, surround yourself with positive, upbeat, emotionally mature people who are willing to share their insights and knowledge with you.

Learn, grow, and adapt to the changing times.  And most of all: be aware of what you feed your mind.  You don’t want to end up in the dumps.

The way to wealth is to serve more people.

This can be done slowly or scaled by leveraging others time and talent.

Why is this so important to realize?  Because many of us are selfish.

I’ll admit, I’ve been selfish myself. It’s part of human nature to want to survive and worry about ourselves, until we reach a point where we are not worried about the basic needs. See: Maslow’s Hierarchy of Needs

Once we have what we need, we can begin to work outside of ourselves and focus more on giving to others.  This in turn leads to great life satisfaction and increased earnings over time.

Make sure that whatever you do in life is fulfilling so as not to have a hard heart or a weary soul.  Your health is greatly affected by what you do and those you surround yourself with.  There was an interesting article written about the health affects of different levels of affluence called Be As Healthy As the Wealthy .  I think this article points to a significant issue that plagues many people: their chosen vocation doesn’t give them the overall life satisfaction that they need in order to remain healthy.

Health is about way more than money: it’s about having a sound mind, body, and spirit.  The foundation for being able to develop these areas of your life is best laid when you aren’t so worried about money.  This should be good motivation to find what it is you like, find a way to serve more people, and reap the financial rewards for doing so.

This poem by Jessie B. Rittenhouse titled "My Wage" is something to think about when you wonder about what your financial life could be.  This poem is featured in the popular book Think and Grow Rich by Napolean Hill.  I would highly recommend this read for your personal development.  This one book has changed many lives.  Here is the poem:

My Wage

"I bargained with Life for a penny,

And Life would pay no more,

However I begged at evening

When I counted my scanty store.

For Life is a just employer,

He gives you what you ask,

But once you have set the wages,

Why, you must bear the task.

I worked for a menial’s hire

Only to learn, dismayed,

That any wage I had asked of Life,

Life would have willingly paid."