Welcome back. This post will cover the final part of MONEY TREE FORMULA. Still remember what is the main uses of this formula? It is for you to create multiple streams of passive or residual income. We don’t want linear incomes in our life. This is because for linear income, once we stop working on it, the cash flow will stop as well, which is what we don’t want to. What we want here is that kind of cash flow that even when we stop working for it, the income will still flow into our pocket. In other words, we work once, but make profit for the rest of our lives. So let us continue with the MONEY TREE FORMULA.

MONEY TREE - T stands for : Trend and Timing

To start a business against the trend is exactly like swimming opposite to the direction of current. When we choose a business that is with the trend, it is just like floating together with the current. But, how do we know that a certain business is on trend? It is around 1968, a lot of babies were born, and we refer to those who was born at that time as baby boomer. At that time, if you start your real estate business, you will make a killing by owning properties. The timing is exactly right, you could do almost nothing wrong. So you can see, the secret here is to get in front of a trend and ride along with the wave.

The biggest wave of our century is the baby boomers period, almost 76 million people. This number is almost four times the number of previous generation. And what more important about this mass of humanity is that, it creates a huge demand wave. Picking businesses which are at the leading edge of this age wave has created thousands of fortunes. You need to make sure that your new business is leading this trend and not following it. It can make a huge difference in your lifestyle. So you can see here, the bigger the market the higher the demand, therefore, you need to choose a good trend and timing for your business. And the best timing is to hit the market of the generation of baby boomers.

Let me give you a good example. Have you ever walked up a Down escalator the wrong way? When you walk up the Down escalator, you have to walk fast just to stay in the same place. And to get to the top, you have to walk at double speed. People on the Up escalator don’t have to work hard at all. They just stand there holding the handrail, and the escalator takes them to the top. This is what is happening if you’re to swim downstream along with the current. In fact, there’s not much that you need to use your own energy to swim, the wave will bring you to where you wanted most! That’s why it is so important to go with the trend.

MONEY TREE - R stands for : Residual

Well, we’ve already talked about the need for residual income as a major part of the MONEY TREE FORMULA. In the past, how many people ever make it to become a millionaire? The answer is, only a few. And for this generation, with the help of technology, especially the internet, it will help you easier in your life to become a millionaire. In fact, never before it is this easy to be a millionaire. Look at all the self-made millionaire, they’re getting younger and the numbers are increasing drastically! In the past, people only depend on paper assets and brick and mortar business to become very rich. But now, even a very young kid can be a millionaire.

Why is this so? This is because of the power of residual incomes. Then what has it got to do with the timing? Why in the past so few ever made it to ultra rich? Why now we’ve got some kid who made a fortune at a very young age? A very simple answer, because we are living in the information age. Why information can make you a millionaire in such an easy way? Again, this is because with information, your ideas count! This is why you have to use your idea to create residual income if you want to be a self-made millionaire. There is no use if you can make a million dollars with half of your life time gone managing your business.

Ok, get back to the escalator example that I use just now. The two escalators also can be use to represent the two kinds of income that you can earn: linear income and residual income. Our economy is a Down escalator. You work hard for your money, but with inflation you have to earn three to five percent more next year just to stay in the same place. But this puts you in higher tax brackets. The more you make the more taxes you pay. It seems you work harder and harder without making any progress. Your bank account balance earns two percent and your credit card balance costs you 20 percent. You’re going in the whole 24 hours a day. You wonder why you can never catch up. And if you stop, guess what happened, the escalator just takes you right back down to the bottom.

So now you can picture a more clearer concepts of the importance of residual income. Here is another good example. Do you know how they catch monkeys in Africa? A native takes a coconut and cuts a hole in it, just big enough to allow a monkey’s fist to enter. To the other end of the coconut the man attaches a long cord. He places a few peanuts inside the coconut, places the coconut in the middle of a clearing, and hides behind a tree to wait for the monkeys to come. The monkeys come and smell the peanuts inside the coconut shell. One monkey reaches inside the shell to grab the peanuts, but while holding the peanuts the monkey’s fist is too large to escape the hole in the coconut. The native, then, yanks on the cord and hauls that silly monkey to captivity because the monkey will not let go of those peanuts to save his skin. Are you working for peanuts? If you’re walking up the Down escalator, you are caught in a Monkey Trap. What you want is Up Escalator Income. Which escalator are you on?

Before you go to sleep tonight, ask yourself how much percentage of your day that you spend creating residual income? If your answer is zero, then you’re in trouble. You’d better wake up tomorrow and get busy.

MONEY TREE - E stands for : Essential for Everybody Everyday

Whatever you sell, try to pick something that is essential or is perceived as essential by a large and very motivated segment of society. Take the example of real estate, the real reason that real estate has always been a great wealth creation vehicle and a prime source of residual income for hundreds of thousands. It fits the MONEY TREE Formula. No matter what product or service you choose, make sure it’s Essential for Everybody Everyday! The more people need it and the more often they need it, the more successful your business can become.

MONEY TREE - E stands for : Enthusiasm

You’ve got to love what you do. If you hate what you sell, you’ll never be any good at it. The prime admonition from Gary Halbert, one of the all time great marketing gurus, is this: “SELL WHAT YOU LOVE.” The truth is, you’ll never be truly great unless you do. Once you love what you do, you will treat them as a game. Which also means that you play to make money, not work to make money. And this is very true. Some people say, just do what you love, and money will follow. Besides that, only by doing what you love, you will feel passionate about it, you will feel motivated, and has the enthusiasm to do it more.

Well, there you have it, the nine major characteristics of the MONEY TREE Formula. These nine characteristics are essential to the kind of hands-off, hassle-free businesses that create lifelong streams of cash flow.

Read: The MONEY TREE Formula - Part 1 and The MONEY TREE Formula - Part 2

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Posted on September 19th, 2008 by Shawn
Filed under: Millionaire Mind Mastery

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