Why most people are poor
I created a special site to help people understand what business is all about, at http://business-e-ducation.blogspot.com/
It's free.
As I mentioned on that site, without business knowledge, a person can simply not become financially free.
The good news is that business is fairly simple. Business schools have made everything complicated, yet business is really simple.
The proof that business is really simple, is the success of the micro-credit program created by Dr. Muhammad Yunus, winner of the Nobel Prize. Millions of women in developing countries, especially Bangladesh, have been able to create their own business and make a living from it.
You might think that they do not have leverage and cannot become rich, yet a recent article in The Economist talked about how fishermen in Kerala, India were able to use cell phones to coordinate their matching of their daily catches with local market demands, resulting in an average increase in profits of 40%.
Technologies will continue to empower entrepreneurs, even those who are living in countries where previously, there was a lack of infrastructural elements to support business growth.
The problem in the West is that we still have the employee mentality, when the rest of the world has begun to adopt -- often aggressively, like the Chinese -- the capitalistic way of thinking.
For instance, 75% of Chinese people surveyed said that capitalism is the way of the future, compared to 64% in Canada and 35% in France (maybe it's a good thing for France that Nicolas Sarkozy won the elections).
How about you?
Do you still think that working for someone else will make you rich?
I never thought that working for someone else would make me rich, but also, I didn't think that working for a paycheck would make me poor either. So I kept working all these years (until I stopped for good in 2000 and became a serial entrepreneur).
President Ronald Reagan once joked: "Working hard never killed anybody, but why take a chance?"
Here's the secret: The biggest cost of working for someone else is that your mind is too busy, and your attention and energy is too engaged in your job, to think about ways to create passive income.
Let me illustrate it this way: Imagine two babies sitting on the floor, and playing with toys. The baby girl is playing with dolls, whereas the baby boy is constructing a castle from wooden blocks.
As long as they are immersed in their activity (and for babies, learning and playing IS a serious activity), it will NOT occur to them to begin to crawl and then walk.
In short, they will NEVER learn how to stand up and walk (and eventually run).
This is the tragedy in most people's lives: they are so immersed in working for someone else, engaged in an activity DESIGNED to fully absorb their mind, that it will never occur to them to stand up and start walking.
In the same way that the two babies will not develop their walking skill and coordination so they can stand up and walk, most employees will never develop the entrepreneurial muscles in their mind. This means they will never become rich, let alone financially independent.
If you look at your friends or relatives, you will realize how true this is. They accept the fact that being an employee is an inescapable condition of life, and they will not change their mind. This is why they have to work till retirement age around 65.
It's free.
As I mentioned on that site, without business knowledge, a person can simply not become financially free.
The good news is that business is fairly simple. Business schools have made everything complicated, yet business is really simple.
The proof that business is really simple, is the success of the micro-credit program created by Dr. Muhammad Yunus, winner of the Nobel Prize. Millions of women in developing countries, especially Bangladesh, have been able to create their own business and make a living from it.
You might think that they do not have leverage and cannot become rich, yet a recent article in The Economist talked about how fishermen in Kerala, India were able to use cell phones to coordinate their matching of their daily catches with local market demands, resulting in an average increase in profits of 40%.
Technologies will continue to empower entrepreneurs, even those who are living in countries where previously, there was a lack of infrastructural elements to support business growth.
The problem in the West is that we still have the employee mentality, when the rest of the world has begun to adopt -- often aggressively, like the Chinese -- the capitalistic way of thinking.
For instance, 75% of Chinese people surveyed said that capitalism is the way of the future, compared to 64% in Canada and 35% in France (maybe it's a good thing for France that Nicolas Sarkozy won the elections).
How about you?
Do you still think that working for someone else will make you rich?
I never thought that working for someone else would make me rich, but also, I didn't think that working for a paycheck would make me poor either. So I kept working all these years (until I stopped for good in 2000 and became a serial entrepreneur).
President Ronald Reagan once joked: "Working hard never killed anybody, but why take a chance?"
Here's the secret: The biggest cost of working for someone else is that your mind is too busy, and your attention and energy is too engaged in your job, to think about ways to create passive income.
Let me illustrate it this way: Imagine two babies sitting on the floor, and playing with toys. The baby girl is playing with dolls, whereas the baby boy is constructing a castle from wooden blocks.
As long as they are immersed in their activity (and for babies, learning and playing IS a serious activity), it will NOT occur to them to begin to crawl and then walk.
In short, they will NEVER learn how to stand up and walk (and eventually run).
This is the tragedy in most people's lives: they are so immersed in working for someone else, engaged in an activity DESIGNED to fully absorb their mind, that it will never occur to them to stand up and start walking.
In the same way that the two babies will not develop their walking skill and coordination so they can stand up and walk, most employees will never develop the entrepreneurial muscles in their mind. This means they will never become rich, let alone financially independent.
If you look at your friends or relatives, you will realize how true this is. They accept the fact that being an employee is an inescapable condition of life, and they will not change their mind. This is why they have to work till retirement age around 65.
posted by Super Peter at 12:24 PM
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