The Money Tree Formula that I’m going to talk about here is from Robert Allen. You are eager to find out how to plant a money tree don’t you? Here’s what the Money Tree Formula is all about.

Basically, if you want to be a millionaire, earn big money, then you can plant a money tree in your backyard and start heaping the harvest day by day. But why doesn’t everyone plant a money tree? This is because nobody teaches us how to plant it. To be frank, nobody teaches the average person about money and how to grow it. Have you ever had a money class in school? No. The only way an average person learn about money is from the school of hard knocks. Parents do teach their kids about money skill. They transmit the same money skill to their children, as a result, the rich get richer and the poor get poorer. Then the misleading by the media, advertisements about lotteries, and game shows, as if like money is not something to earn, but to win. And to become a millionaire means what, spending lavishly. This is the most serious misleading from the media. Buying luxury cars, big houses, all these are the wrong concept of what being rich is all about.

Therefore, we need to understand that money is one of the most important subjects in our entire lives. Some of life’s greatest enjoyments and most of life’s greatest disappointments stem from your decisions about money. Your relationships will be greatly affected. Ninety percent of all divorces in our society result from disagreements about money. Therefore, understanding money, how to make it and keep it, is absolutely essential to your life, to your relationships, to your happiness, and to your future.

So, we know that money is so important in our life. But there are people who manage money differently. The same million dollars can slip through some people’s hand without noticing why, and the same million dollars can be well manage by some people, keep it, and grow it. Why? Are they 100 times smarter? No. Then are they work 100 times harder? No. Then why? So what’s the different? They just know how to play the game. You see: MONEY IS A GAME, a very important game. If you know the rules, you win. If you don’t know the rules, you lose. As someone said, “Wealth is when small efforts produce big results. Poverty is when big efforts produce small results.” Or as it has been said another way, “Complaint is poverty!” Some people with the greatest difficulties overcome them and become very wealthy as a result. When you learn how to triumph in one area, which know-how transfers to all other areas of your life.

In our life, there are plenty of ways you can make money. But what we want here is ‘Multiple Streams Of Income’. And most people will ask, why multiple streams? How many streams of income did it take in the 1950’s for a family to survive? One. Today, very few families can survive on less than two streams of income. And that won’t be enough in the future. It’s a volatile future. You’d be wise to have multiple streams of income flowing into your life. The rich always know about this. They cannot depend on only one stream of income. In case if one stream dries up, they’re still safe, they can be supported by other streams, they’re stable. As for average person, they got only one stream, if this stream dry up, they’ll be wiped out. In the future, we need more than one stream of income, we need many streams of income. Up until this point of your life, how many streams of income do you have?

So assume that you’ve decided to add another stream of income to your life. You could always get another part-time job, but that’s not the kind of income I’m talking about. You certainly don’t want to get stuck on somebody else’s treadmill. You want the kind of streams that you can own. I’m talking about Residual Income, Passive Income. That’s a fancy term for a “recurring” stream of income that continues to flow whether you’re there or not. I’ve heard too many small business owners say, “I haven’t taken a vacation in five years.” There’s something wrong with that picture. I don’t have anything against hard work. But after a few short years of hard work, you should be free to have your streams of income forwarded to your mailbox in Tahiti. Get the picture?

What we want here is residual income and not linear income. Linear income is like the salary you get from your job. You work for few hours and you get paid for that few hours effort, once you stop, you’re not going to get any money from it. While for residual income, you work hard once, and it unleashes a steady flow of income for months or even years. You get paid over and over again for the same effort. The secret of the rich is not that they have more money but that they have more TIME FREEDOM. Because many of their streams are residual, they have time to spend on anything they want.

What percentage of your income is residual? If you’re smart, you’ll start shifting your income streams from linear to residual. This will give you the time freedom to do what you want when you want. So, start by turning on at least one new residual stream this year.

Read: The MONEY TREE Formula - Part 2 and The MONEY TREE Formula - Part 3

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Posted on September 17th, 2008 by Shawn
Filed under: Millionaire Mind Mastery

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