Overcoming the Financial Myths that are Destroying your Prosperity

Garrett B. Gundersonwith Stephen palmer

KillinGsacred cows

Introduction v

Myth 1: The Finite Pie 1Scarcitythinkingbringsouttheworstinusincludingfear,pride,jealousy,selfishness,andadversarialcompetition.Replacingscarcitywithabundancehelpsustoincreaseourcreativity,productivity,health,wealth,andhappiness.

Myth 2: You’re in It for the Long Haul 25Theaccumulationtheoryofwealthcreation,whichteachesustosavemoneyandcompoundinterestforlongperiodsoftime,preventsusfromachievingourfullpotential.Amoreproductivefinancialtheoryisutilization,whichhelpsustomaximizeourvaluecreationandthereforeourwealthinthepresentmoment.

Myth 3: It’s All About the Numbers 57Prosperityhaslesstodowithourfinancialnumbersonpaperandmoretodowithourhappinessandfulfillment.Thisshiftinmindsethelpsustoputnumbersintheirproperperspective.

Myth 4: Financial Security 85Truefinancialsecuritydoesnotcomefromthegovernment,corporations,benefits,andentitlements;itcomesfromwithinus.Takingresponsibilityforourwealthleadsustotranscendfalsesecuritytofindbothtruesecurityandfreedom.

Myth 5: Money Is Power 109Moneyhasnopowerexceptthepowerthatpeoplegiveit.Moneyisaneffect,orabyproduct;valuecreationisthecause.

Myth 6: High Risks = High Returns 139“Highriskequalshighreturn”isagambling,notatrueinvesting,philosophy.Thebestandsafestinvestmentsarethosethatalignwithourpassions,knowledge,andabilitiesandthatwecancontrol.

Myth 7: Self-Insurance 163“Self-insurance”reallymeansnoinsurance.Thebestwaytoreduceyourinsuranceexpensesistogetthebestinsuranceandasmuchofitaspossible.

Myth 8: Avoid Debt Like the Plague 187Peoplefeardebtbecausetheydon’tunderstandthetechnicaldefinition.Understandingthetechnicaldefinitionsofdebtandliabilitiesopensupaworldofpossibility.

Myth 9: A Penny Saved Is a Penny Earned 211Valueisafarmoreimportantconsiderationthanpricewhenitcomestoourpurchasesandinvestments.

defeating the Myths:The Formula 231

Acknowledgments 249

The 401(k) Hoax 251

Special Offers 257

Index 265

LegalDisclaimer:Theinformationinthisbookisnotpresentedasasourceoftax,financial,orlegaladvice.Youshouldnotrelyonstatementsorrepresentationsmadewithinthebookorbyanyexternallyreferencedsources.Ifyouneedtax,financial,orlegaladviceuponwhichyouintendtorelyinthecourseofyourbusinessorlegalaffairs,consultacompetent,independentprofessional. Thecontentsof thisbookshouldnotbetakenasfinancialor investmentadvice,orasanoffer tobuy or sell any securities, fund, type of fund, or financial instruments. It should not be taken as anendorsementorrecommendationofanyparticularcompanyorindividual,andnoresponsibilitycanbetakenforinaccuracies,omissions,orerrors. Theauthorandpublisherdonotassumeanyresponsibilityforactionsornonactionstakenbypeoplewhohavereadthisbook,andnooneshallbeentitledtoaclaimfordetrimentalreliancebaseduponanyinformationprovidedorexpressedherein.Youruseofanyinformationprovidedheredoesnotconstituteanytypeofcontractualrelationshipbetweenyourselfandtheprovider(s)ofthisinformation.Theauthorandpublisherherebydisclaimallresponsibilityandliabilityforalluseofanyinformationprovidedinthisbook.

PublishedbyGreenleafBookGroupLLC4425S.MoPacExpwy.,Suite600,Austin,TX78735www.greenleafbookgroup.com

Copyright©2008GarrettB.Gunderson

Allrightsreserved.

Nopartofthisbookmaybereproduced,storedinaretrievalsystem,ortransmittedbyanymeans,electronic,mechanical,photocopying,recording,orotherwise,withoutwrittenpermissionfromthepublisher.

DistributedbyGreenleafBookGroupLLC

Fororderinginformationorspecialdiscountsforbulkpurchases,pleasecontactGreenleafBookGroupLLCat4425S.MoPacExpwy.,Suite600,Austin,TX78735,(512)891-6100.

DesignandcompositionbyGreenleafBookGroupLLCCoverdesignbyGreenleafBookGroupLLC

Gunderson,GarrettB.Killingsacredcows:overcomingthefinancialmythsthataredestroyingyourprosperity/GarrettB.GundersonwithStephenPalmer.--1sted.

p.:ill.,charts;cm.

ISBN:978-1-929774-51-7

1.Finance,Personal.I.Palmer,Stephen(StephenDaniel),1976-II.Title.

HG179.G8632008332.024 2008925604

PrintedintheUnitedStatesofAmericaonacid-freepaper

08091011121310987654321

FirstEdition

Contents

Find the sacred cows, slaughter them, sell the meat, make a profit.

—Dan Sullivan

w hydosomanyofusstrugglefinanciallywhenweliveinthemostfreeandprosperouscountryinthehistoryoftheworld?Whydowecontinuetostrugglewhenwearebombardeddaily

withinformationonhowtobecomewealthy?Ibelievethatmostofusarekeptfromourpotentialbecausewelaborunderfalseideasandperceptionsaboutmoney,wealth,andprosperity.

The dictionary defines a “sacred cow” as an individual, organization,institution, teaching, or belief often considered exempt from criticism orquestioning.Inthefinancialworld,sacredcowsarethemythsandtraditionsthatdistortourthinkingaboutmoney,wealth,success,andprosperity.Thesemythsarewidespreadandconstantlyreinforcedthroughadvicefromfriendsand relatives,financial institutions, and thefinancialmedia.Because thesefinancialsacredcowsaresopervasive,theyarerarelyquestionedandevenlessoftendefeated.Butlearningandapplyingthefundamentaltruthsthatcoun-terthemythsisthemostdirectpathtotheprosperitywe’reallcapableof.

Thepurposeofthisbookistohelpyoukillthesesacredcows—toiden-tifyandovercomethesubtleanddestructivemyths,lies,andfallaciesaboutmoneythatareperpetuatedthroughsocialprogrammingandunquestionedtraditions.Thesemythsarecripplingus—individuallyandsocietally.Theylimitanddestroyourpotential.Theydrasticallyandnegativelyinfluenceour

Introduction

No actual cows were killed or harmed during the creation of this book.

Advance Praise for Killing Sacred Cows

“It’srefreshingtohearanothervoicewhounderstandsthat401(k)s,homeequity,andother‘traditional’investmentsarelazyassetsandhowtotransformthemintoproductive,cash-flow-inginvestments.InKilling Sacred Cows,GarrettGundersonbreaksthroughtheherdmentalitytopresenttheinnovativeapproachtowealthcreationemployedbythewealthiestindividuals.Forgetwhatyouthinkyouknow—readthisbookifyouwanttolearnhowtobecomefinan-ciallysuccessful.”

—LoralLangemeier,authoroftheNationalBestSeller,The Millionaire Maker: Act, Think and Make Money the Way the Wealthy Do

“Killing Sacred Cows isn’t a light or comforting read . . . it’s disconcerting and thought-provoking.Transcendmediocrityandfindtrueprosperityviathisexceptionalbook.”

—ChristineComaford-Lynch,New York TimesbestsellingauthorofRules for Renegades: How to Make More Money, Rock Your Career, and Revel in Your Individuality

“Thevastmajorityofpeopleplanandorganize theireconomic liveswithfaultyandcoun-terproductive ideas, attitudes, and strategies. Garrett Gunderson throws out all of the badstuffandthensuppliesrulesandmethodsthatbringsubstantialandsatisfyingprogressoveralifetime.”

—DanSullivan,PresidentandfounderofStrategicCoach

“Becauseofalearningdisability,myhighschoolgraduatingclassvotedmemostlikelytofail.WhatneithermyclassmatesnorIrealizedatthetimewasthatmy‘broken’wayofthinkingpreparedmeforsuccessmuchmorethanthosewhothoughtinconventionalways.Throughmydisability,I’vedevelopedauniqueperspectivethathasallowedmetofarexceedthepredic-tionsofmyhighschoolclassmates. Ifyouwanttosucceed,ignorethecrowdandfollowyourpassion.InKilling Sacred Cows,GarrettGundersonproves his understandingof this bydetailing a ‘broken’ perspective onpersonalfinancethatisplainright.Ifyouwantresultslikeeveryoneelse,dowhateveryoneelseisdoing—ifyouwanttosucceedfinancially,breakthetraditionalrulesandfollowthepathofthetrulywealthy.BuyandreadKilling Sacred Cows todiscoverthatpath.”

—RobertShemin,authorofSecrets of Buying and Selling Real Estate without Using Your Own Money!, Successful Real Estate Investing, Unlimited Riches: Making Your Fortune in Real EstateInvesting,and40 Days to Success in Real Estate Investing

“SuccesscanbedirectlydeterminedbyyourabilitytobuildqualityrelationshipsandKilling Sacred Cowsoffersrefreshing,realisticwaystogettotheheartofprosperitybyshiftingyourfocustowardimprovingyourrelationships.”

—IvanMisner,New York Times bestsellingauthorandfounderofBNI

vi  |  KilliNg sacred cows introduction  |  vii

decisionsonadailybasis,andmostofusaren’tevenawarethattheyexistorhowdestructivetheyare.

What if everything you thought you knew to be true about money and finances was actually completely false? How soon would you want to find out, and what would you do about it?

Throughoutthecourseofthisbook,wewillexplorethemostcommonfinancialfallacies.Uponclosescrutiny,you’llseethatthesemythsareatoddswithcommonsenseatbest,andatworst,destructiveofourpotentialascre-ativebeings.

Much of the material covered herein will undoubtedly be controver-sial,becauseitwillchallengesomeofyourmostcherishedbeliefsandcoreassumptions.Butitwillalsobeenlightening.Itwillexpandyourthinking.Itwillhelpyoutoquestionthingsthatmostpeopleneverquestion.Andwiththatcriticalanalysiswillcomedeeperunderstandingandmoreempoweringperceptionsandbeliefs.

enslavement by illusion is comfortable; it is the liberation by truth that

people fear. —David Hawkins

Origins of the myths

Thequestionarises,“Ifmuchofwhatwe’retaughtaboutmoneyisfalse,thenwhyarethesemythssoprevalent,andwheredotheyoriginate?”Ibelievethatmostofthemythsaboutmoneythatwearetaughttodayoriginatedduringmajoreconomicorculturaldevelopments(suchastheGreatDepression),aresolidifiedbyfinancialinstitutionsthathaveavestedinterestinmaintainingthestatusquo,andarespreadthroughthemisguidedadviceofwell-intentionedfamilymembersandfriends.

a myth is a fixed way of looking at the world which cannot be destroyed

because, looked at through the myth, all evidence supports that myth.

—Edward de Bono

Werarely think toquestion thefinancial conceptswebelieve inandfollow.Seldomdoweconsiderthatthese“tried-and-true”strategiesmightin fact be false.This happens because we are trained in our perceptionsofmoneyfromayoungage.Ourparentspassalongtoustheirownideasaboutmoney.Eveniftheirideasarenotexplicitlystated,weabsorbthemthrough observation of our parents’ use of money. If they were carelessspenders,wewill likelyspendourmoneycarelessly.Iftheywerecautiousandsuspiciousofothers,wewillholdtighttoourmoneyinlikemannerand miss opportunities to grow our wealth. Or we will adopt the polaropposites of their behavior about money and get ourselves into entirelydifferenttrouble.Withoutevenknowingthesourceofourfeelingsaboutmoney,wewillbehave inways thatperpetuatefinancialmismanagementthroughourlifetimesandthoseofourchildren.

The members of our families and communities contribute to ourmiseducationthroughtheirownbuyinghabits,throughemploymentandinvestmentadvice,andthroughothermotivatingbehaviors.Mostpeoplehavegoodintentions,buttheiradvicereliesonthesamemythstheyweretaughtorinformationthatmaybepertinenttotheirsituationsbutdoesnotrelatetoourown.

Themythsweabsorbfromourparentsandcommunityaresupportedbysocietyasawhole.Ourcultureoffers“wisdomoftheages”intheformofclichésaboutmoneythatwerarelyquestion.Theseclichésareoftenrootedinhistoricaleventsthathavelittletodowithourcurrenteconomyorourpersonalfinancialsituations.Forexample,theGreatDepressionresultedinhoardingandascarcitymindsetthatpermeatedAmericancultureandheav-ily influencedsucceedinggenerations.Andthepost–WorldWarIIboomled to thebelief thatfinancial securitycame fromtyingoneself toacor-poration.Thesebeliefsareperpetuatedby institutionswithinour societybecausetheysupporttheirgoalsorbecausethepeoplewithintheinstitu-tionsdon’tknowanybettereither.

viii  |  KilliNg sacred cows introduction  |  ix

Nothing is more difficult than competing with a myth. —Françoise Giroud

Financialservicescompaniessell theirproductsbypromotingperspec-tivesandmethodswithfancynamessuchas“TheMiracleofCompound-ingInterest.”Thesemarketingmessageshavebeenusedforsolongthatwehavecometoacceptthemasviableandtrustworthyfinancialstrategies.Butfinancialinstitutionshavealwayspracticedandcontinuetopracticetheverythingsthatweareeithertoldtoavoidorarecompletelyunawareof.Theideastheypromotearegoodforthem,butnotnecessarilygoodforus.

Conventionalretirementplannersareusuallynomorehelpfulinthequestfortruefinancialfreedom.Notonlydoretirementplannersreceivetheirtrain-ingfromfinancialinstitutions,buttheyoftenworkdirectlyforthesecompaniesaswell.Evenifaretirementplannerisknowledgeableincorrecteconomicprin-ciples,heusuallyhasanunderlyingincentivetosellsuboptimalproducts.

Thisdoesnotmeanthatfinancialinstitutionsareinherentlyevilbecausetheypursuetheirowninterests.Itdoesmean,however,thatwemustbeawarethatinstitutionsareinbusinessforareason:toincreasetheirrevenuesandtheirbottomline.Mygoal isnot to tellyoutocompletelyavoidfinancialinstitutions;itissimplytopointoutthattheyhavetheirowndistinctinter-estsandthoseinterestsmaynotcoincidewithyours.Thebetterweunder-standtheagendasoffinancialinstitutions,themorewiselywecanutilizetheirpoliciesforourbenefit.

Educational institutions aren’t effective at combating the myths thatfinancialinstitutionspropagate.Americanschoolsfailateducatingstudentsincorrectprinciplesofpersonalfinance.Averydifferentapproachtomoneymanagementistaughttostudentsinpersonalfinancecoursesasopposedtothoseincorporatefinancecourses.Personalfinancedirectslearnerstoaccu-mulatenetworth,payoffdebt, investforthelongterm,andprotecttheirpossessionswithterminsurance.Thecorporatefinancecourseteachesveloc-ityofmoney,cashflow,riskmanagement,andpermanentinsurancestrate-gies.Theseprinciplesandmethodsarefarsuperiortoandlessriskythanthepersonalfinancetechniques.Infact,corporatefinancestrategiesareintendedto take advantage of the investment dollars tucked away by people usingpersonalfinancemethods.Whatisn’ttaughttotheaverageAmericanisthat

corporatefinancestrategiescanbeemployedonapersonallevelandusedtoachievefargreaterwealthwithequalorbettersecurity.

To combat the compounded influence of family, community, experts,education,andsociety—adauntingtask—wemustrealizethatpopularityandthemajority’sopinionsdon’tnecessarilypointtothetruth.Inotherwords,fiftymillionpeoplesayingadumbthingdoesn’tmakeitanylessdumb.Theherdmentalityisdestructive.Considerthisquestion:Ifonlyaminorityofpeoplearewealthy,whydowefollowwhatthemajorityofpeopledofinan-cially?Trueprinciples of personalfinance exist that can lead toprosperityforanyoneinalmostanycircumstance.Butsucceedingwiththeseprinciplesrequiresthecouragetostepawayfromthecrowdandtochoose“theroadnottaken.”

the Destructive nature of Financial myths

Buying intomyths aboutmoneyandfinancesdestroysourprosperity andlimitsourproductivity.Itpreventsusfromseeingempoweringandenlight-ening truths. It makes us stumble in ways that we never would have hadweknownthetruth.Forexample,myfriendGarrettWhiteroutinelydoesthefollowingexerciseatseminars:Heasksapersontowalkfromthefrontoftheroomtotheback,getaglassofwater,andbringitbacktothefront.Hepromisesthatiftheydoitcorrectly,theywillreceiveaprize.Eachtime,whenthevolunteersreturntothefrontoftheroomwithaglassofwaterinhand,he informs themthat theydid itallwrong—theywere supposed toturnaroundthreetimes,walkacertainway,andgoaroundafewchairs.Hisexerciseshowsthatwecan’tsucceedatanythingunlessweknowtherules.Mythsandfalseinformationkeepusfromlearningthenaturalrulesofwealthandprosperity.

Whenweacceptfinancialmyths,weacceptuntoldopportunity costs.Everysinglethingthatwedocomesatacost,thecostbeingeverythingwecouldhavedoneinsteadofwhatweactuallydid.Forexample,everytimewedecidetoaccumulatemoneyinabankaccountbecauseit’s“safe,”itcomesatthecostofthereturnswecouldhaveearnedhadwefoundamoreproductiveuseforthemoney.Everytimewechoosetofollowthemyththatdeveloping

x  |  KilliNg sacred cows introduction  |  xi

ourpassionisriskyandthatfindinganunattractivecareerissafe,itcomesatthecostofachievingourfullpotentialandinfluencingpeopleforgood.

When people are confronted with myths, they commonly experiencementaldilemmas.Infact,thisphenomenonisonewaytodetectanunderly-ingmythimpactingadecision.Dilemmascomeaboutwhenfalsebeliefsleaveusparalyzed,caughtinacatch-22whereweseenowaytowinnomatterwhatwedo.Forexample,manypeopledesiretobehighlysuccessfulandwealthybutbelieve(oftensubconsciously)thatachievingsuccesswouldmeanactingagainsttheirmoralprinciples.Theybelievetheyareforcedtochoosebetweentheirprinciplesandtheirprosperity.

Whatcanyoudoinasituationlikethis?Insteadofjusttakingactionandfeelingguiltywithanychoice,thosewhounderstandthatmythsareprevalentinourfinancialthoughtsquestionthebasicassumptionsthattheyarefacingandseepastthemyth.Thishelpsresolvethedilemmaandgrantsnewaccesstopowerandtheabilitytotakeactioninawaythatpromotesafeelingofprosperityandcertainty,ratherthanfrustrationandconfusion.Thedifficultyisinfindingthemyththatiscripplingyourprogressamongthemanysubtlebeliefsaboutmoneyandproductivityyou’veabsorbedoveralifetimeoflearn-ingaboutthem.

why we Can’t let Go

education is the slow process of learning our ignorance. —Will Durant

It’shumannaturetorelatethingsthatweareunfamiliarwithbacktothethingsthatwearealreadyfamiliarwith,orwiththethingsthatwe thinkweknow.Butwhatifthethingswethinkweknowarefalse,oratleastmisguided?Howcanwemakesenseofnewthingswhenourframeofreferenceisdistortedornotfoundedintruth?Oneofthemostcriticalstepswecantaketowardfinancialfreedomistoacceptthepossibilitythatwhatwethoughttobetruemaybecompletelyfalse,andthatthereareinfinitetruthswehaveyettolearn.

Ibelievethatthefinancialsacredcowsgiveusdistortedviewsofmoneyandprosperitythatwearerarelyabletodefeatbecausethesefallaciesappear

tobeself-evident.Becausemodernlifeiscomplicatedandwehavetomakedecisionsaboutsomanydifferentkindsof issues,weoftendependontheopinionsofspecialistsandexpertsinafieldinsteadoflearningaboutitour-selves.We’vebecomeusedtoacceptingassumptionsandhanded-downadviceandoftenchoosenottomakethetimeandefforttoquestionthem.Wearetoobusy(orsowethink)tolearntheworldanew,fromitsveryfoundationsonup.Wetakethewordofexperts,orwetrustintheadviceofthoseweloveandwholoveus.Icertainlystartedoutwell indoctrinatedintothemyths,anditwasonlythroughtrialanderror,awillingnesstoexperiment,andtheguidanceofwisementorsthatImanagedtoshakefreeoftheirgraspandcre-atethelifeIwanttolive.

However,whenIteachpeopleaboutfinancialmythsandhowtoover-comethem,therearethreestatementsorsentimentsthatIroutinelyhear:“Itsoundstoogoodtobetrue,”“Whyhaven’tIheardofthisbefore?”and“Youhavetobeafinancialgeniusandlearnthesecretstobereallysuccessfulorwealthy.”

WhenIhearpeoplesay“Itsoundstoogoodtobetrue,”myansweristhatweonlybelievethisaboutthingswithwhichwehavenoexperience.Allgreathumanachievements sounded toogood tobe trueatone time.Canyouimagineteachinganineteenth-centurypioneerlivinginadirt-floor,one-roomcabinabouthowcellphonesandcomputerswork?Whenwesay“Itsoundstoogoodtobetrue,”whatwereallymeanisthatwedon’tknowhowtodoit,soweareskeptical.Thisattitudelimitsourpotentialbygivingusnegativeandsuspiciouslensesthroughwhichweviewtheworld.

Granted,ahealthytendencytocriticalanalysiscansaveusalotofhead-aches,andIamnotsayingthatweshouldbenaïveandblindlyacceptwhat-everwe’retold.Butitismuchmorehealthyandconducivetohappinessandcreativitytoremainopentolearninghowandwhythingswork,evenifwedon’t initiallyunderstand.Casuallydiscarding everything that sounds “toogoodtobetrue”willleadtoalifeofpovertyevenifwearesurroundedbysuccessandprosperity.

Likewise, when people demand why they haven’t heard my strategiesbefore,theimplicationisthattheyhaveamonopolyonalltruthandfindithardtoacceptthattherearethingsthattheydon’tknow.

xii  |  KilliNg sacred cows introduction  |  xiii

In reality, there are four realmsofknowledge relating to allofus: thethingsweknowthatweknow;thethingsthatwethinkweknow;thethingsthatweknowwedon’tknow;andthethingsthatwedon’tknowthatwedon’tknow. Obviously, the last realm—the things that we don’t know we don’tknow—isinfinitelylargerthanalloftheotherrealmscombined.It’shumannaturetorelatethingsthatweareunfamiliarwithbacktothethingsthatwearealreadyfamiliarwith,orwiththethingsthatwe think weknow.

Those who say it can’t be done are usually interrupted by others doing it.

—Joel Barker

Ontheotherhand,believingthatfinancialsuccessisaproductofgeniusor secret strategies is a recipe for irresponsibility and inaction.Thosewhobelievethistendtothinkthattheirlackofsuccessisaresultofmarketandsocietalforcesbeyondtheircontrol.Thisgroupfailstorealizethatuniversalprinciplesofwealthcreationareavailabletoallofusequally.Thesepeopledon’trealizetheirfullpotentialsbecausetheybelieve—consciouslyorsubcon-sciously—thatsuccesscomesfromsourcesoutsideofthemselves,andthatiftheyaren’tluckyenoughtohavebeenbornintothecirclesofthewealthywhoknowthe“secrets,”thenthequestforwealthisafutilesearch.

Financialsuccessistheproductoffindingandapplyinguniversalprin-ciples.Itisavailabletoeveryoneofus.Itisachievable.Itisintegraltoourprogressanddevelopmentascreativebeingswithinfinitepotential.Ifwecantrainourselvestoquestionandattackthemythsthatarelimitingourpoten-tials,wecanbeinfinitelyprosperous.

There are risks and costs to a program of action. But they are far less than the

long-range risks and costs of comfortable inaction.

—John F. Kennedy

replacing the Subtle lies with the elusive Obvious

Thisbookisprimarilyconcernedwithexposingelusivelyobviousideasthatcombatthesubtlelieswelaborunder.Blatantliesareeasytorecognizeandavoid; the subtle lies can ultimately be more destructive because they aremuchmoredifficulttodetectanduproot.

Subtle liesseemtomakesenseandtocarryacertainairofcredibility.Theyareoftensupportedbysupposedproofandfactualevidencethatspreadand perpetuate them. Many times they appear in the form of half-truths,or truths taken out of context. As these myths gain hold in society, theyseemobviouslysound—soobviouslysothatwedon’tquestionthem.Theyaresometimesindicationsofgoodintentions,buttheycarryunintendedandoftenunseennegativeconsequences.

Myths which are believed in tend to become true. —George Orwell

Subtleliesalsotakerootintimesofchaosandconflict;theycanappearassaviorsintimesofextremecircumstances.Theyfindfertilegroundinatmo-spheresof fearandgreed.Theyappeal to thebaser sideofhumannature.Theymakedestructivepathsseembetterbyfocusingonshort-termrewardswhiledisguisinglong-termconsequences;bytheirverynaturetheyencourageshortsightedness.Theymakeusforgetthebigpictureandlureusintofocus-ingonunimportant,trivialmatters.InthewordsofStephenCovey,theygetusintothe“thickofthinthings.”

Whenwebegintostripthemythsbare,wequicklyfindthatdeclaringthem false takes nothingbut common sense.Wehave all had experienceswhere,afterasignificantchangeinourmindset,thenewtruththatwehavediscoveredseemssoobviousthatwewonderwhywehaven’tseenitbefore.Soitiswiththesemyths—assoonasweturnourfullattentiontoevaluatingtheirworth,itbecomesclearthattheyarenonsensicalatbest,andatworst,activelydestructive.

xiv  |  KilliNg sacred cows introduction  |  xv

Men occasionally stumble over the truth, but most of them pick themselves up

and hurry off as if nothing had happened.

—Winston Churchill

The “elusive obvious” is the truth that lies just under the surface ofthe hype, rhetoric, and propaganda that distracts us from seeing it. Forinstance,manyofusaretaughttogotoschool,getgoodgrades,chooseatraditionalcareer,andaimforjobsatastablecorporationwithgoodben-efits—evenifallofthismeansthatwespendourlivesstuckinasituationthatdoesn’tbringrealjoy.We’retaughtthatit’s“risky”topursueourpas-sions—especiallyifthosegivingtheadvicecan’tseeawayforustomakemoneybydoingso.

Butwhenwecarefullyanalyzesuchtraditionaladvice,webegintoseehowridiculousitis.Whenwestudythelivesoftheultrasuccessful,wefindacommonthread:allofthempursuedtheirpassionsinsteadofignoringorsti-flingthemforthesakeofsecurity.WherewouldtheworldbeifWaltDisney,WarrenBuffett,andBillGateshadfollowedthisterribleadvice?

How can it be risky to wake up each morning and do what we lovedoing,provideditismoral,principlebased,andcreatesvalueintheworld?Sacrificingthethingsthatbringusthemost joyforan imaginarysecurity,andthereforenotlivinguptoourpotential,isactuallythemoreriskythingtodo.This,then,istheelusiveobviousbehindtheadvicetosacrificepassionforsecurity.

do what you love in the service of people who love what you do.

—Steve Farber

Redefining Prosperity

Oneofthemostimportantsubtlelieswemustcombat—onethatliesattherootofsomanyothermyths—isthatprosperityisnothingmorethantheaccumulationofmaterialwealth.Theelusiveobviousisthattrueprosper-ityisdifferentforeverypersonandrarelyhasmuchtodowithhowmuchmoneyshehasinthebankorhowmanycarshehasinthegarage.Prosper-

ityandhappinessarecloselyrelated(aswe’lldiscussthroughoutthebook).Theyarebothdependentupontwokeyelements:SoulPurposeandhumanlifevalue.

Eachofuswasbornforgreatness,andeveryoneofushaswhatIcall“SoulPurpose.”SoulPurpose is yourunique setof talents, abilities, andpassionsappliedproductivelyandeffectively,making tremendous impactupontheworldandbringingthehighest levelsof joyandfulfillmentforyouandeveryoneyoutouch.It’s themissionthatyouwerebornfor; it’swhatyouwoulddoeverydayevenifyoudidn’tgetpaidforit.Whenyou’vetruly foundyourSoulPurpose,youcreate somuchvalue forothers thatyou’re almost inevitably paid very well indeed. My friend and colleagueSteveD’Annunzio saysofSoulPurpose, “LivingyourSoulPurposedoesnotmeanthatyouhavetoownyourownbusinessorbefamous.Itmeansthatyouaredoingwhatyouarenaturallypassionateaboutdoingeveryday,whetherworkingforyourselforasanemployee.ManypeopleknowtheirSoulPurposebut refuse toacknowledge itbecausedoing somay requireuncomfortabledecisions.Therealpainandsufferingfromhumanexistencecomefromnotmakingthesedecisions.”

The mass of men lead lives of quiet desperation and go to the grave with the

song still in them.

—attributed to Henry David Thoreau

Human life value is our own particular combination of knowledge,skills,andabilities—everythingthatwearewhenwetakeawayallofourmaterial resources. It is our character and integrity, our ability to thinkcreativelyanduniquely,ourrelationships,ourfaith—orthelackofeachofthesethings.Itisourknowledgeandabilitytoshapematerialsandinfor-mationinnewwaysthatarevaluedandutilizedbyothersandourselves.Everymaterialthingweenjoytodaycamefromtheutilizationofindividualhumanlifevalue.Thematerialsinourhomesalreadyexistedintheearth,butuntilhumanlifevaluewasappliedtonaturalresources,thatmatterwasnothingbutpotentialvalue.Whenhumanlifevalueisappliedtophysicalmatter,itbecomesshapedandmanipulatedintosomethingvaluabletous.

xvi  |  KilliNg sacred cows introduction  |  xvii

Ifwethinkofprosperity intermsofachievingandapplyingourgreatesthumanlifevalueinordertoliveourSoulPurpose,manyofthemythsthatwelaborunderinstantlycomeintoquestion.Ifournewgoalistocreatevalueintheworld,notsimplybuildournetworth,thenhowwegoaboutbecomingprosperouschangesforever.

Try not to become a man of success, but rather try to become a man of value.

—Albert Einstein

the purpose of Killing Sacred Cows

Themostimportantfactorsineconomicsthatdirectlyaffectyourwealthandprosperityarethefactorsthatinitiallygounseen,theforcesatplaybeyondthemythsperpetuatedbypeopleandinstitutionsthathaveavestedinterestinyourbeliefofthemyths.Thepurposeofthisbookistotrainyourmindandhelpyoutocultivatetheabilitytobeabletoseethroughthemythsthatlimitwealthcreation.Ifthisisaccomplished,youmaywellexperienceapro-ductivitybreakthroughonanunprecedentedscale.

Specifically,herearesomeofthethingsyouwilllearnfromreadingthisbook:

>How the scarcity paradigm, which is at the root of so much common financial advice, limits our financial success

>How the “accumulation theory” of wealth that most of us subscribe to destroys our potential

>Why “investing” in the stock market for most people is little better than buying lottery tickets—and how you can create real wealth instead

> How most people are in a security dilemma caused by avoiding things they fear, which actually decreases their security—and how to find true security yourself

>Why money doesn’t equal power

>Why the most lucrative investments are by nature the lowest risk

>Why the best way to reduce the cost of insurance is to buy the most you possibly can

>How false beliefs about “getting out of debt” may be keeping you from financial freedom

>Why value is infinitely more important than price

Afterreadingthisbook,thenexttimeyourbrother-in-lawadvisesyoutomaximizeyour401(k)contribution,youwon’tblindlyacceptthefallacythattherewillbeanautomatic“100percentrateofreturn”becauseoftheemployermatch.Thenext time yourparents tell you to get afifteen-yearmortgageandtopayifoffasquicklyaspossible,you’llstopandthinkaboutit,analyzeitfromeveryangle,andbeabletoseetheunseenfalsehoodsbehindthemyththatthispracticeissafe.Ifyoudocontributetoa401(k)orpayoffyourmortgagequickly,itwillbebecauseitispartofamacroeconomicplanwithothermovingpartsthatwillactuallybringyouthebestreturn,notbecauseofa falseperceptionof theemployermatchandtaxdeferral.Andinsteadofquestioningifyouwillhaveenoughmoneytoretire,you’llques-tiontheconceptofretirementitself.

You will, in short, be better prepared to think like a wise economistinsteadoflikeaconfusedconsumer.Youwillfindthatwhatyouseeonthesurface isoften, ifnotalways,deceptive,andthatreal truths lieunder thesurfaceofwhat isobvious.Becomingempoweredfinanciallywillhelpyouunleashyourcreativegeniusandreachyourfullpotential.Wecannotbecomefinanciallysuccessfuluntilwelearntorecognizemythsandthenovercomethemwithtruthandprinciples.

Mypurposeisn’tsomuchtoidentifyandanswereverymythforeveryreaderasitistojustgetreadersthinkingabouttherhetoric,propaganda,andtraditional“logic”thatwe’refedthroughthefinancialmedia.Ifafteryouarefinishedreadingthisbook,youarestilldependingonmeoranyoneelseto

xviii  |  KilliNg sacred cows Myth 1: The Finite Pie  |  1

giveyouanswersonhowtorecognizeandseethroughfinancialmyths,Ihavefailedmypurpose.Manymoremythsexist thanwe’ll coverhere,and thisbookisnotmeanttobeanexhaustivestudyofeachone;it’smeanttobeacatalysttosetyouonyourownpathtotruefinancialfreedom.

Immerseyourselfintherealfactsandbegintobreakthroughthebarriersthatthemythsaboutmoneyhavecreatedinthemindsofsomanypeople.Asyoureadthisbook,youwillgetbeneaththesurfacetotherootofmoneymatters.Youwill seethatthe invisiblechainsholdingyoubackaremerelyillusionsthatyouacceptfromotherpeople,themedia,andfinancialinstitu-tions.Unlockthegeniuswithinbyeducatingandinvestinginyourself.

Mychallengetoyouistotakethisbookpersonally.Asyouread,thinkabouthowyoucanapplytheseconceptsandhowtheywouldbeusefulforyou.Whenyou feelcompelled tohaveaconversationaboutwhatyouarelearning, engage in one. If at any time you question what you’re reading,thinkitthroughandapplytheconceptinyourlife.Keepreading,learning,andquestioningtheassumptionsandbeliefsyoufaceeveryday.Liveextraor-dinarily;thismaynotbeeasy,butitismorethanworthit.

the Finite Pie

1:MYtH

The number of mouths to be fed will have no limit; but the food that is to

supply them cannot keep pace with the demand for it; we must come to

a stop somewhere . . . in this state of things there will be no remedy . . .

famine, distress, havoc and dismay will spread around; hatred, violence,

war and bloodshed will be the infallible consequence; and from the pin-

nacle of happiness, peace, refinement and social advantage we shall be

hurled once more into a profounder abyss of misery, want, and barbarism

than ever by the sole operation of the principle of population!

—Thomas Malthus (1766–1834)

Myth 1: The Finite Pie  |  3

t hewaywethinkiscostingusmoney—andmorethanmoney,ourqualityoflife.Withoutknowingit,we’remissingopportunities,wast-ingourpotential,andlettingourdollarsanddestiniesstagnate.

Butallofthiscomesfromoneperniciousrootbelief:Mostofusbelievethatthereisafiniteresource“pie”fromwhichweallshareandthatthemorewehave, the lessothershave, andviceversa.Webelieve thatall resources arescarce.It’snotunusualthatsomanyofusbelievethis,though.Frombirthamindsetofscarcityisingrainedinus.Inschoolwe’retaughtthateconomicsisthescienceofallocatingscarceresources.Ontelevision,inmagazines,innewspapers,ontheInternet,andinvirtuallyeveryotherformofmedia,wearebombardedwithclaimsthatthereisn’tenoughtogoaround.ThetheoriesandstrategiesofintellectualslikeThomasMalthusarticulatesuchaconvinc-ingcaseforscarcitythatitbecomesdifficulttoseethedeepertruthsbeyondwhatthedataseemstosuggestonthesurface.

Inthescarcitymindset,wetakeitforgrantedthatoursocietydoesnothaveenoughresourcesorproductivecapacitytofulfilleveryone’sneedsanddesires.Consequently,webelievethatourmaterialgainscomeonlyasalosstoothers,andthatwhenotherspossessmoreitmeanslessforus.It’seasytoseehowaculturethatacceptsthenotionofscarcityquicklybecomesultra-competitiveandselfish.

Butthescarcitymindset ispredicatedonfalsebeliefs,misinformation,outdatedideas,andfear.Whilescarcitymaybeavalidconcernattimesinthephysicalworld,Iwillshowhowhumaninnovationandtheprincipleof

4  |  KilliNg sacred cows Myth 1: The Finite Pie  |  5

Whenouractionsarebasedonascarcitymindset,weareactingonfear:fearthatwewon’tgetourfairshare,thatsomebodyelsewillreaprewardsthatwewon’t,orthatwe’llhavetofighttoothandnailagainstotherstoachievethelevelofsuccessorprosperitywedesire.Andthisfearcausesustomakeirrationaldecisions(especiallywhenitcomestoourfinances)thatlimitourpotentialratherthanenhanceit.

Nevertheless,thescarcityparadigmdominatesourculturetoday.Con-sideranexamplefromthemedia:

Of all the impulses in humanity’s behavioral portfolio, ambi-tion—that need to grab an ever bigger piece of the resourcepie before someone else gets it—ought to be one of the mostdemocratically distributed. Nature is a zero-sum game, after all.Everybuffalo youkill for your family is one less for somebodyelse’s; everyacreof landyouoccupyelbowsout somebodyelse. (Jeffrey Kluger, “ambition: why some People are Most likely To succeed,” Time, November

14, 2005, vol. 166, no. 20.)

Notetheauthor’sassumptionthatscarcityisthenatureoftheuniverse,andhowheperceivesthathumanbehaviorshouldflowfromthatassump-tion.Thatphilosophyjustifieshostile,destructivelycompetitiveactionandtheperceptionthatalleconomictransactionsarewin-lose,andunapologeti-cally so.Afterall, ifwedonot“[elbow]out somebodyelse,”according toKluger,weareleftwithnothingourselves.

Here isanotherexampleaboutWal-Mart, thecompanythatzero-sumthinkerslovetohate:

Wal-Mart’sascent...hasalreadyplaceditintheexclusiveclubofcompanieswhoserawpowermakesthemthemostfearedcor-porate animals of their time. Wal-Mart has killed or woundedcompetitoraftercompetitor...there’slittledoubtthatWal-Martisamonghistory’spremierpractitionersofDarwiniancapitalism,

redoftoothandclaw.(Matthew Maier,“How to Beat wal-Mart,” cNN Money.com,

May 1, 2005.)

Noticethewords“feared,”“killed,”“wounded,”“Darwinian,”andthereferences to Wal-Mart as a corporate beast “red of tooth and claw.”The

exchangerenderthosefactsobsoleteandaddmuchdeepercontexttothesurfacerealities,andhowwecanovercomescarcityanditsilleffectsinbothourmindsandourfinances.

Scarcityisthebeliefthatresourcesarelimited,and the world is a stage for a zero-sum game ofaccumulation. Inazero-sumgame,anything thatanother wins is no longer available to all othersplayingthegame.Further,thesewinningsarenotreplacedortransformedintoanythingofequivalentorgreatervaluethatremainsinthegame,availabletootherplayers.Inscarcity,ownershipbyanothermeansthelossofopportunityforoneself.

The opposite of scarcity is abundance. Theconceptofabundance is thattherearemorethanenoughresourcestofulfillthedesiresofallthepeo-plewithinasociety,afarmoreinspiringandpro-ductivewaytolookattheworldandwellsupportedbythefacts,asI’llshowyou.Thisistheapproachthatmanysuccessfulpeopleandorganizationstaketotheirfinancialdecisions,andforobviousreasons.Thismindsetsetsapositive,clearpathtoachievingyourfinancialpotentialandyourpurpose.

the Destructive nature of Scarcity thinking

Atsomepointoranotherintheirlives,mostpeopleexperiencescarcityasarealityonapersonalscale.Buttoextrapolatethisbeyonditstrueimportanceand adopt the belief that scarcity represents thenatureofoureconomy,ourculture,ourenviron-ment,orevenouruniverseisdestructiveandlimit-ingineveryaspectofourlives.

scarcity:The belief that resources are

limited, and the world is a stage for

a zero-sum game of accumulation. in

a zero-sum game, anything that another

wins is no longer available to all others

playing the game.

6  |  KilliNg sacred cows Myth 1: The Finite Pie  |  7

andhisownworksituation,whichwouldbechanging,intotheequation.Astheclientbaredhisdeepestconcernsandhopesforthefuture,Deanfoundthathewasn’treallylisteningortryingtomeettheclient’sneeds;rather,histhoughtswerefocusedonhowhecouldselltheclientalifeinsuranceprod-ucttogenerateacommission.Afterhemadehispresentationandtheclientsharedmoreinformation,itbecameclearthatthelifeinsurancepolicywascompletelyunnecessaryandDeanlostthesale.Ashetriedtofigureoutwhathadgonewrong,itbecamecleartoDeanthathehadactedwithascarcitymindset,andhadn’tmettheclient’sactualobjectives,norhadhecreatedrealvalueforfearoflosingacommission.Insteadhelosttheclientaltogether—afterrealizingDeanwasonlyinitforthecommission,themannevercamebackagain.

My own great-aunt destroyed her relationships with her siblings because of her struggles

with the scarcity mentality. a first-generation immigrant, she came to america from italy

with her brother, sister, and parents when she was young, and all the family scrimped and

saved for years to build up a nest egg, which they put in the bank in her name. as she got

older, my great-aunt told everyone how poor she was, and she applied to every government

program that might offer her assistance. My grandfather was always over at her twenty-five-

thousand-dollar house fixing her faulty appliances, and she continued to economize on every

possible purchase.

Then she got very sick and was expected to die soon. That’s when my grandfather pulled me

aside and explained that the siblings’ money was all in her name, and probably about to be lost

to medical expenses or taxes—and they had accumulated over half a million dollars. as my aunt

lay on her deathbed, she asked that we move the money to a safe place.

against the odds, my aunt recovered and we moved the money to a high-yield investment.

instead of being pleased that we’d found a way to turn their nest egg into usable cash, she

tHe MYtHs in realitY:

Cash in Coffee Cans

underlyingassumptionhereisthatWal-Mart’sgainsarepainfulwoundsorlossestoeveryotherretailstore.

It’sclearthatthescarcitymindsetpervadesourmediaandculture,buthowdoesitpracticallyaffectusinourdailylives?Reactingoutoffearoflosscausesustoacceptfalsetheoriesonhowtosucceed,toneglecttheopportunitiesthatwould lead us to true prosperity, and to suffer in bad jobs and unfulfillinglifestylesworking fornothingbut an illusionof security.Andperhapsmostimportant,scarcitynegativelyaffectsthewayweinteractwithothersbecauseit’scharacterizedbyanadversarial,win-loseperspectiveoftheworldandrela-tionships.When we compete in scarcity, we try to do so at the expense ofothers—webelievethatwecanonlywinifsomeoneelseloses.Weviewothersascompetition,as roadblocks in thewayofourgettingwhatwewant.Thedestructionthisattitudewreaksonourprosperityandourcontributionstotheworldiswide-reachingandhardtoseeatfirst,butmuchofthisbookwillbefocusedonuncoveringitandhelpingtorestoreamorenaturalworldview.

Inthethrallofscarcitythinking,wemakefaultyfinancialdecisions.Webuy thingswedon’tneedbecausewecanneverhaveenough,andwealsopostponeappropriatepurchases,evenwhenwehavethemoney,becausewecan’tletgoofourpreciousdollars.Wepullmoneyoutofinvestmentswhenweshouldbebuyingmore,andwebuyinvestmentsattheirpeakwhenweshould be selling. We’re naïve when we should be cautious, and skepticalwhenweshouldbeoptimistic.Whenweencounterchallenges,ourmindsautomaticallyfocusonallthereasonswhywecan’tsucceed.Wefeeljealousand envious of others when we perceive that they are more intelligent orbeautiful,makemoremoney,havemorefriends,orhavemoreopportunitiesthanus.Wefeelsuperiortothosewhohavelessthanus.Wesueandaresuedattheslightestgrievances,andfortrivialamountsofmoney,thencomplainwheninsuranceratesraise.Scarcityevenleadssometolie,cheat,andstealtogetwhatiswanted,attheexpenseofothersandourownintegrity.

In thecommission-basedfinancial services industry, scarcity leads toafocusonmakingasaleinsteadofwhatourclientsreallywant,whichhurtsbothparties.MyfriendDean,whoisalsointhefinancialservicesindustry,toldmeaboutarealizationhehadashewasworkingwithaclient.Hisclientcametohimseekingadviceonanewjob.Theclienthadtomakeadecisionbetweentwopaystructures,andwasalsotryingtoweighhischildren’sschool

8  |  KilliNg sacred cows Myth 1: The Finite Pie  |  9

Thescarcitymindsetcanalso limitthepotentialofthepeoplearoundus,ourcommunity,oureconomy,andoursociety.Thisisbecausethescar-citymentality is characterizedbyadversarial,win-lose relationships.Whenwecompeteinscarcity,wetrytodosoattheexpenseofothers—webelievethatwecanonlywinifsomeoneelseloses.

Somepeoplemightarguethatadversarialcompetitionisacriticalelementoffreeenterprise,thatit’simpossibletohaveafreemarketeconomywithoutit.However,it’sclearthatafreemarketeconomyismoreproductivewheneverybodyadoptsanattitudeofcooperativecompetitionandfosterswin-winrelationships.Thatsoundsalotbetterthan“foreverywinnertheremustbealoser,”doesn’tit?Themythofscarcitydestroysourpotentialbecauseitpitsusagainsteachotherratherthanhelpingusworkwitheachother.

More than simply derailing individual financial success and humanpotential,scarcitythinkingtearsapartcommunities,relationships,andfami-lies. Under the scarcity paradigm, money and goods aren’t the only finiteresources—everythingisgroundsforcompetitionandresentment,fromjobsto abstract qualities like beauty and intelligence. Everything someone elsepossessesrepresentssomethingthatyoucannothave.

Evenpeoplewhoconsciously reject the ideaof scarcitycanbe subcon-sciouslysubjecttothenegativeeffectsofthemyth,whetherbecausetheycopybehaviors their parents and family members have modeled, because scar-citysimplyfeelssafer,orforsomeotherunexaminedreason.Mostofus

Whenweliveinscarcity,greedcanblindustocommonsense.MyfriendCorylostfiftythousanddollarsinascambecausehebecameoverwhelmedwith theprospectofhigh returnsand thought that ifhedidn’t act imme-diately, he would lose out. He was approached by a company who askedhimtoinvestinadebt-restructuringand-assistanceprogramandpromisedhima10percentpermonthreturn.Withoutdoinganyduediligence,hequicklywrotethemacheckfortwenty-five-thousanddollars,andacoupledayslatergavethemanothertwenty-fivethousandbecausehewassoexcitedaboutthepotentialreturns.ThenextmonthCoryandtheother“investors”weretoldthatthecompanywasstillworkingthroughsomeissuesandwouldbeunabletopay.Eachmonthafterthatbroughtanotherexcuse,andseveralmonthslater,withnoreturnseverpaid,Coryfoundoutthatthecompanywasascam.Thefounderwenttoprison.CorydiscoveredthatthispersonhadalreadybeenconvictedofsimilaractivityandwasonprobationatthetimeCorygavehimmoney.AsimpleInternetsearchwouldhaveuncoveredthefraud,butthelureofhighreturnspreventedhimfromactingwisely.

Scarcityisaboutsomuchmorethanmoneyandmaterialresources.It’samindset,awayofviewingandinteractingwiththeworld,anditperme-ateseverythingwethinkanddo.Inlargepart,itdetermineswhoweareandhowweact.Itrobsusofhope,stealsourdreams,presentsuswithsupposedevidenceforlivingsmallandtreatingothersbadly,andrendersusimpotent,despiteourinfinitepotentialtocreateandmaketheworldabetterplace.Inaworldofpossiblefreedom,joy,abundance,andservice,ascarcitymindsetcripplesusandaidsusinseeingnotmuchmorethanlimitations,suffering,poverty,andselfishness.

was furious and accused my grandfather of stealing from her. He took the money out of the

high-yield investment and gave it back. My aunt took some and buried it in her backyard,

sealed some more in coffee cans in her cellar, and returned to living a life of poverty—but this

time, without my grandfather’s help and support. The two siblings still don’t speak to each

other, despite the seventy-five years of closeness that came before.

8  |  KilliNg sacred cows

10  |  KilliNg sacred cows Myth 1: The Finite Pie  |  11

replacing Scarcity with abundance

Scarcitythinkingisholdingusback, individuallyandasasociety.Becauseofthis,wemustfindawaytoreplacescarcitythinkingwithamentalityofabundance.Scarcitythinkingsays,“Ican’taffordit,”or“Ijustdon’thaveanyoptions,”or“Ineverhaveenoughtimetopursuemyideallife.”Abundantthinkingsays,“HowcanIaffordthis?”or“IknowIhaveunlimitedoptions;Ijusthavetofindawaytorealizethem,”or“HowcanIcreatemorespacesoIhavetimetopursuemypassions?”Scarcityislimited;abundanceislimitless.

We can consciously choose to view life abundantly, to think and actabundantly,andtoeliminateour fearof loss.Thepathtoovercomingthemythofscarcityrequiresustorecognizeandaccepttheabundantnatureofourenvironmentsandofourpotentialascreativebeings.Whenwefacehard-shipsthatseemtorevealthatlifeisharshandthenatureofourexistenceiscombatingscarcity,weneedtotakeabroaderviewandrealizethatwhathashappenedisthatprinciplesofabundancehavebeenviolated.Ifmorepeoplelivewithanabundancemindset,wewillallexperiencelesshardship.

Quiz: what is Your Mindset?

Rank the following statements on a scale of 1–10, with 10 being “true” and 1 being “false”:

1. You are living something close to your ideal life today.

2. You feel confident, assured, and in control of

every place you invest your money.

3. all of your financial components are working together and

you have the right team in place to see them through.

4. You feel energized and empowered by your finances right now.

5. You do what you want to do on a daily basis, without fear over money.

6. There are no money worries you could remove from your life to improve it.

Add your answers together and divide by 60. What’s your grade? A+? C-?

operatewithunconsciousparadigmsofscarcitythatwedon’tverbalizeortrytoexpress.Ifwedid,wemightrecognizetheirdestructivenatureandseekoutabetterideologythatwouldn’tcrippleourabilitytothinkandactcre-ativelyorproductively.Thisisexactlywhattheconceptofabundancecandoforus.

You Know You’re In SCarCItY when…

Your friend at work gets a promotion and you find yourself

feeling jealous, rather than happy for him.

You see a person driving an expensive car and find yourself feeling resentful or judging her.

You make purchases on credit and live beyond your

means; you’re dissatisfied with what you have.

You postpone important purchases that would add dramatic value to your life, even when you have the money to make them, because you can’t stand to part with your cash.

when your spouse or child asks you to buy something, more often

than not your immediate response is that you can’t afford it.

You find yourself frequently wishing for a better life, yet you think that it would be futile to strive for something better; there’s never enough time or money to do the things you want to do.

You have ideas about how to make your life better, like switching careers

or starting your own business, but are afraid to put them into action.

You keep your money in “safe” investments like CDs and money market accounts because you fear losing it.

You pick the riskiest investments, cross your fingers, and hope for high

returns, thinking that gambling and luck is your best path to wealth.

12  |  KilliNg sacred cows Myth 1: The Finite Pie  |  13

thingsinthemselves,insteadoffortheirworthtopeople,inevitablyleadstoascarcitymindset,becauseifmaterialthingshaveintrinsicvalue,theonlywaytoincreaseyourwealthistohoardthesethings.Then,whenyoulosematerialthings,eveninanagreeabletrade,youhavereducedyourwealth.Butthisisillogicalthinking.

How much is your home worth? You probably have a specific dollaramount in mind and would staunchly defend that estimate. But considerthis:Wouldthevalueofyourhomechangeif itweremovedtoadifferentcity?Toadifferentstate?Toadifferentclimate?Toadifferentcountry?Willyourhomebeworththesameamountayearfromnow?Fiveyearsfromnow?Thevalueofanyhomedependsonmanyfactorsandcanfluctuatedepend-ingonmarketconditions.Butifahomehasintrinsic,orinherent,value,howcoulditsmarketvaluechange?

Thefirst answer to thequestion, “Howmuch is yourhomeworth?”is always anotherquestion: “Towhom?”Material thingsonlyhavevalueandutilitybecausepeoplevalueandusethem,andpeopledohaveintrinsicvalue.Peopledeterminewhataparticularthingisworthtothemindividu-ally,andeachoneofuswillvalueanygivenmaterialresourcedifferentlyfrom every other person.This is why the value of any material good orresourcecanbeinfinite—becauseitexistsonlyinourmindsandpercep-tions.Ahomeworth$1milliontoyoucouldbecompletelyworthlesstome.Imightpay$100,000foracarthatyouwouldneverconsiderdriving.Theintrinsicvalueliesinthepeoplelivinginhomesanddrivingcars,notinthehomesandcarsthemselves.

More gold has been mined from the thoughts of men than has ever been taken

from the earth.

—Napoleon Hill

Noneofusvaluematerialthingsequally.Thismeansthatresourcesareinfinite according to our individual perceptions of value.There’s no pro-ductivereasontohoardmaterialthings,becausesinceweallhavedifferentdesires,wecanfulfillthosedesiresthroughefficient,free-marketdistributionofmaterial resources.Whenweoperate in abundance insteadofhoarding

Take, forexample,peoplewhohave lostmoneythroughinvestments inmutualfundsorthestockmarket.Withascarcitymindset,theywillbelievetheyhavelearnedthatinvestingisriskyandthatprofitsfrominvestmentsarescarce.Butthetruelessoncouldbethatapersonorgroupofpeopleinvolvedwiththeinvestment—theinvestor,thefundmanager,theCEOofabusinessinwhichthemoneywasinvested—madechoicesthatlimitedordestroyedthepotentialreturnoftheinvestment.Investorscouldalsolearnlessonsfromtheexperiencethatwillpropelthemtogreatersuccesswithinvestmentsinthefuture—suchasbetterwaystoselectfundmanagersorbusinessestoinvestin.Theymightexaminetheirinvestmentoptionsmorecloselyinthefuturetoensurethattheyarealignedwiththeprinciplesofabundance,orthinkofanewwaytoearnreturnsfromtheirmoney.Throughabundance,theycanviewtheirmistakesaspositivelessonsthatcanbeappliedtominimizerisk,andcontinuetoinvest,becomingwiserwitheachinvestment,eachsuccess,andeachmistake.

Overcoming themythof scarcity and replacing itwith an abundancemindsetisachievedbyunderstandingthefollowingtruths,whichI’llexplorethroughouttherestofthischapter.

>People, not material things, have intrinsic value, and people makeindividual,personaldeterminationsofthevalueofmaterialthings.

>Theprinciplethatexchangecreatesindividualandcommunitywealthimplies thatbycontinuouslyexchanginggoodsand serviceswecancreateinfinitevaluefromthosegoodsandservices.Evenifresourcesarefinite,scarceresourcesplushumaningenuity,individualideasofvalue, andcontinual exchange cancreate infiniteproductivity fromtheavailableresources.

>Thequalityofourlivesisnotdeterminedbythequantityofourstuff.

>Adversarial competition is not conducive to a healthy free market.Enlightened, cooperative competition helps us transcend win-loserelationshipsandserveoneanothermoreeffectivelyandefficiently.

Intrinsic Value and Infinite Value Determinations

Oneofthekeyfallacies thathelpspropagatescarcity thinking is thebeliefthatmaterialthings,ratherthanpeople,haveintrinsicvalue.Valuingmaterial

14  |  KilliNg sacred cows Myth 1: The Finite Pie  |  15

Weonlyexchangewhenothershavesomethingthatwevaluemorethanwhatwecurrentlyhave.Wenevertradelikevalueforlikevalue,becausewehavenoincentivetodoso.Wetradewhatwehaveforwhatweactuallywantmore.Therefore,hoardingofgoods,money,orresourcesfortheirownsake—whichoftencomesaboutasaresultofscarcitythinking—limitsourpersonalwealthandprecludespersonaljoyandfulfillment.Whenwerefusetospendorexchange,weeliminatethejoythatcomesfromactivitiesandpossessionsthatcostmoneyandtheincreasedsatisfactionthatcomesfromexchangingsomethingwevalueforsomethingwevaluemore.

Exchange canonlyoccur in an atmosphereofdisagreement. In a freemarket,thefinalsalepriceofanyobjectisalwaysanamountthatthesellerandthebuyerbothdisagreethattheobjectisworth.Thisprincipleisvitaltoovercomingthemythofscarcity,becauseonewaywecreateinfinitevalueisthroughtheprocessofexchange.Justaswecanexchangethesamedollarsaninfinitenumberoftimes,sowecanexchangeanyandeveryformofmaterialwealth.Thevalueisnotinthethings—itisinthemindsofpeople.

Human Ingenuity

Evenifweareunabletoacceptthatmaterialresourcesareessentiallyinfinite,thefactremainsthathumanbeingsarecreativebynatureandabletoapplytheir creativity and ingenuity to scarce resources in ways that make thoseresources abundantlyproductive.Take, for instance, the caseofoil,whichis available only in limited quantity.The same ingenuity that gave us theproductsandresourcesthathavediminishedthesupplyofoilcanprovideawaytostretchwhatisleftanddiscovernewsourcesofenergy.Oilwasusedverylittleuntilweinventedautomobiles;thenitbecameoneofourbiggestsourcesofenergy.Thefreemarketisnowseekingtoreplaceoilwithother,moreviableandsustainablesourcesofenergy.Howmanyresourcesareyettobediscovered,awaitingourcreativitytofindauseforthem?

The book was worth more than $20 to you, and the book was worth less than $20 to me.

everythingforourselves,resourcesgointothehandsofthosewhovaluethemthemost,and,inmostcases,whousethemthemosteffectively.

Ourindividualitymakesforinfinitevalueperceptionsanddeterminations.Whyworrythattherearen’tenoughBMWstogoaround?NoteveryonewantsaBMW.Evenifitappearsthatwearegoingtorunoutofsomething,thosewhovaluethatthingthemostwillcontinuetouseit,andthosewhovalueittheleastwillcreateotherresourcestofulfillthedesirespreviouslyfulfilledbythatresource.Thisingenuitywillcreatemoremarketsandmoreproducts,anditwillultimatelysatisfymorewantsandneedsthaneverbefore.

Considertheexampleofcurrency:Eventhoughtheamountofcurrencyincirculationisfinite,wecanuseeverydollarbillininfinitetransactionstocreateinfinitevalue.Onedollarbillcanliterallybecomemillions—aconceptthatwillbediscussedmoreinchapter3.Icanbuysomethingfromyouforadollar,youcantakethatdollarandbuysomethingfromsomeoneelse,whocanthenuseittobuysomethingelse,andsoon.Therearefinitedollars,yetinfinitevaluecanbeexchangedwiththatfinitecurrency.

Value Exchange Facilitates Wealth

IfIhaveabookandyouhave$20,andwemutuallydecidetoexchangemybookforyour$20,whatwerethebookandthe$20worthtoyou?Whatwerethebookandthe$20worthtome?Mostpeopleanswerthat thebookwasworth$20tobothyouandme.Thisiswrong.We only give up something in an exchange when we value what we’re receiving more than we value what we’re giv-ing up.Hence,thereisnowaytoquantifyanexactamountthatthebookorthe$20wasworthtoyouorme.Allwecanconclusivelysayisthattoyou,thebookwasworthmorethan$20andthe$20wasworthlessthanthebook;tomethebookwasworthlessthan$20andthe$20wasworthmorethanthebook.Webothwalkawaywealthierthanbeforethetransactionbecausewebothhavesomethingthatisworthmoretousthanwhatwehadbefore.

If I have a book and you have $20, and we mutually decide to exchange my book for your $20, what was the book worth to you? What was the book worth to me?

16  |  KilliNg sacred cows Myth 1: The Finite Pie  |  17

Inour society, there isa similaroutcryagainst jobs lost tooutsourcingand innovation.What many who bewail these trends fail to realize is thatprecisely because of innovation outsourcingcancreatemoreandbetterjobsthanthosethatarelost.RussellRoberts,aneconomicsprofessoratGeorgeMasonUniversityandaresearchfellowatStanfordUniversity’sHooverInstitute,con-firmsthat

...importsdon’tdestroyjobs.Theydestroyjobsincertainindus-tries. But because trade allows us to buy goods [and services]morecheaplythanweotherwisecould,resourcesarefreeduptoexpandexistingopportunitiesandtocreatenewones.That’swhywetrade—toleveragetheskillsofotherswhocanproducethingsmoreeffectivelythanwecan,freeingustomakethingsweoth-erwise wouldn’t be able to afford.The United States has run amerchandisetradedeficiteveryyearsince1976.Ithasalsoaddedmorethan50millionjobsduringthattime.(“WhyWeTrade,”November2007,www.foreignpolicy.com)

Onthelevelofourday-to-daylives,theinexhaustiblesupplyofhumaningenuitymeansthatwe’renevertrulytrappedinaproblematicsituation,onlythatwehaven’tyetfoundthebestsolution.Itmeanswecanalwaysfindawaytomakethemoneyweneedtomaketobehappyandprosperous,andthattheresourcesandmaterialgoodswealreadyhavecanprobablyprovidemorevaluetousthanwemayexpectatfirst.Attheheartofabundanceisabeliefinhumaningenuityandhumanvalue,andadedicationtoapplyingasmuchofourownvalueandingenuityaswecantoimproveoursocietiesandreaptherewards.

Regardlessofthechangingavailabilityofanyotherserviceorsubstance,humaningenuityremainstheonemostimportantresource.Ideasarenotandwillneverbescarce—andideasleadtoinnovation,whichleadstoincreasedefficiencyandtheabilitytouseresourcesinwaysthatwerepreviouslyunimag-inable,aswellasthecreationofnewandbetterresources.Humaningenuityislikeapiano:althoughthereareafinitenumberofkeysonapiano,thereareinfinitewaystocombinethenotestheyplaytocreatemusic.Whilemanyscientistsobservetheseeminglyfinitenatureofmaterialresources,theyfailtorealizetheinfiniteabundancethatariseswhenhumancreativityisappliedtoscarceresources.

InThe Ultimate Resource 2,economistJulianSimonprovidesempiricaldatatosupporttheideathatresourcescanbemadeabundantbyintelligentpeopleworkingtosolvetheirproblemsandtheproblemsoftheircommuni-ties.Hearguesthatthrougheconomicandpoliticalfreedom,humaninge-nuity(whichisthe“ultimateresource”)canmanipulatescarceresourcestocreateaprosperousfuturefortheworld.Forinstance,asheexplains,

Agricultural land isnotafixed resource.Rather, theamountofagriculturallandhasbeenincreasingsubstantially...Inthecoun-triesthatarebestsuppliedwithfood,suchastheUnitedStates,thequantityoflandundercultivationhasbeendecreasingbecauseit ismore economical to raise largeryieldson less land than toincrease the total amount of farmland. For this reason, amongothers,theamountoflandusedforforests,recreation,andwild-lifehasbeenincreasingrapidlyintheUnitedStates.

Simon also gives highly optimistic evidence on pollution, naturalresources,humanfertility,immigration,andtheunhealthyeffectsofpopula-tiondensity,amongotherthings.

Fearofinnovationand“disruptive”technologyhasalwaysbeenafactofcivilization,despitetheprogressthatitactuallyinspires.Forexample,evenGutenberg’sprintingpress,which completely revolutionized theworld forthebetter,was initially fearedandcriticized.HistorianWillDurantwrotethatwhentheprintingpresswasintroduced,“notallwelcomedit.Copyistsprotestedthatprintingwoulddestroytheirmeansof livelihood;aristocratsopposeditasamechanicalvulgarization,andfearedthatitwouldlowerthevalueoftheirmanuscriptlibraries;statesmenandclergydistrusteditasapos-siblevehicleofsubversiveideas”(The Reformation,159).

Inspiteofproteststhatitwoulddestroylivelihoods,withtheprintingpresscamecountlessnewjobsandindustriesincludingprintingandpublish-ing, journalism, inkproduction, and increasedpaperproduction.Further-more,theindirectbenefitsofthepresscontributedtomorewidespreadanddemocraticeducation,whichinturnledtoevenmorejobsandindustries.Itmayhaveputahandfulofcopyistsoutofwork,buttheneteffectwasadramaticincreaseinproduction,jobs,industries,andoutletsforhumancre-ativityandingenuity.

18  |  KilliNg sacred cows Myth 1: The Finite Pie  |  19

ourselves;nothingexternalcandictateourlastinghappiness.Takingrespon-sibilityforandshapingourbeliefsandhabitsisthefirststeptowardhappinessandprosperity.Theironyisthatthehealthierourbeliefsare,themoremate-rialandspiritualprosperitywewillexperience.

all external changes in the forms of life, not having a change of consciousness

at their base, do not improve the condition of the people, but generally make

it worse . . . a better life can only come when the consciousness of men is

altered for the better; and therefore all the efforts of those who wish to

improve life should be directed to changing their own and other people’s

consciousness.

—Leo Tolstoy

Competition + Cooperation

Scarcityresultsinacompetitiveapproachtoeconomicsandpersonalfinances.If resources are limited, if there’s only somuchwealth to go around, andanother’sgainresultsinmyloss,thenImustcompetewiththatpersonforallavailableresources.Adversarialcompetitionresultsinhoardingandmis-managementofresources.Ifanother’sgainrepresentsmyloss,thenImuststrivetobethewinnerineverytransaction.Imustvieweveryotherpersonasathreattomyprosperity.

If I had what I needed, I could do what I want to, and then I would be happy and productive.

Quality of Life vs. Quantity of Stuff

Whenweunderstandthatpeople,notthings,aretherealassets,wenaturallystopplacingsomuchvalueonmaterialgoods.Wediminishthetendencytobaseoursenseofself-worthonhowmuchstuffwehave.Wefindmorehap-pinessinrelationshipsthanwedoinhomes,cars,andboats.Werealizethatprosperityismoreastateofmindthanitiscolumnsofnumbersonpaper.

what you leave behind is not what is engraved in stone monuments, but what

is woven into the lives of others.

—Pericles

Ourqualityoflifeiscloselytiedtoourleveloffinancialfreedom.Idefinefinancialfreedomasthechoicethatmoneywillnolongerbetheprimaryfactorinourdecision-makingprocesses.Thisdoesn’tmeanthatit’snotafactor—it’sjustnotthemainfactor.Thisisthepointatwhichwescrubphraseslike,“Ican’taffordit”fromourvocabulary.Thisiswherewecommittonolongerletourmoneyruleus,butrather,togovernourmoney.Accordingtothisdefini-tion,everypersonreadingthisbookcanbecomefinanciallyfreeimmediately.Whatittakesiscommitment—notinterest,butacommittedchoice.

Whenwebecomementallyfree,thisinternalfreedomisreflectedinourexternal,physicalworld.Ourmaterialwealthbecomesamerereflectionofourabundanceperspective.

What I’m talking about is a three-part formula: ourbeliefs determineourbehavior,andourbehaviordeterminesourresults.Anotherwaytostatethisis“Be-Do-Have.”Mostpeopleputtheseintheexactoppositeorder,asin“Have-Do-Be.”Peoplethinkthatiftheycouldjusthavemore,thentheywoulddotherightthings,andthentheywouldbewhotheywanttobe.Butabundanceworksintheoppositeorder:Ifwewanttohavemore,thenweshouldstartbybeingbetterpeople;inordertobebetter,westartdoingbetterthings,whichleadstohavingmoreofwhatwewant.Whenwebecomewhowewereborntobe—or,inotherwords,startlivingourSoulPurpose—everyresourceimaginablebecomesavailabletofulfillourmission.

Ifwewanttoprosper,wemustlearnthathappinessdoesnotcomefrommaterial things.Wemustbecomeaware thathappinesscomes from inside

20  |  KilliNg sacred cows Myth 1: The Finite Pie  |  21

isjealousorenviousofanother’smoney;thereisinfinitewealthtobecre-atedandputtouse.

Peoplewhoarecommittedtofreeenterprise,entrepreneurswhodeeplyunderstandabundance,don’toperateabusinessinordertoputanotherinsti-tutionoutofbusinessandgive their customersnoalternative.Theybringproductsandservicestothemarketinordertoserveothers.Theyunderstandthatit is intheirbestinteresttoserveothers.Theybelieveinefficientandeffective service.They know that there are limitless opportunities to serveandtocreatewealth.Theyknowthatthroughabundanceeveryonecanwinandthateachofuscanhaveourindividualdesiressatisfiedwithoutharmingotherpeople.Free enterprise is about excellenceanduniqueofferings,notaboutdestroyingcompetition(althoughtherearecertainlymanymisguidedindividualsouttherewhohavegivenfreemarketsabadname).Themorepeoplewhounderstandthisandbecometruecreatorsoffreeenterprise,theeasieritbecomesforfree-marketbusinessestosucceedthroughcooperation.

Ilearnedthevalueofcooperationearlyoninmycareer.ImovedfromasmalltowninUtahtoSaltLakeCitytoexpandmyfinancialservicespractice,butIwasworriedabouthowIwasgoingtobuildacareerandmakeitworkbecauseIdidn’tknowanyonethere.Fortunately,DeeRandall,aninsuranceagent,hadheardabout themanyfinancialcourses Ihadbeen taking,andaskedmeifIwouldcomeandpresenttohisagency.Idid,andaftertheeventthreeagentsaskedmetohelpthemwithclients.Thisledtoalotofjointworkwithotheragents(theyearafterIgraduatedfromcollegeImade$133,000),andanidea.

Myideawastostartaregulartrainingcourseforagents.Iimmediatelyhadseveralpeopletellmethatitwasabigmistake,thatIwastrainingmycompetition.ButIknewitwasrightsoIpersisted.Istartedteachingabouta hundred agents on a regular basis in what I called the “Mission-DrivenForum.”AlthoughIwasbrandnewtothearea,mybusinessexploded,andIstartedreceivingmorereferralsthanIcouldhandle.Iwentfrommaking$133,000oneyearto$450,000thenext,allbecauseIdidwhatmanypeoplethoughtdidn’tmakesense:Icooperatedwithmycompetition,andtheresultwasmorebusinessforallofus.

Thefreemarketinherentlytendstowardabundance,notscarcity.Thisisduetotheprinciplesofexchange,cooperation,andinnovation,amongoth-

Thistypeofthinkinglimitsourfinancialpotentialbecausewefrequentlymissorrejecttheopportunitiesthatcouldresultfromcooperationandshar-ingwithothers.Theoppositeofcompetitionis,ofcourse,cooperationandinterdependence.Whenindividualsbringuniqueskillsandtalentstoacom-binedproject,thetotalvalueofthatprojectincreasesatagreaterratethantheindividualvalueeachofthosepeoplecontributed.Throughthesynergycre-atedbysharingandexchangingourfullhumanpotential,everyonebenefitsandbecomesfarwealthierthaniftheyweretohoardtheirtalentsandenergyto themselves. (This energy, talent, andpotential iswhat I callhuman life value,andI’llexplainmoreaboutitthroughoutthebook.)ThisisthetypeofthinkingDr.IvanMisnerhasusedtocreateBusinessNetworkingInterna-tional(bni.com),thelargestbusinessnetworkingorganizationintheworld.BNIcreatesanabundant-mindedatmospherewhereindividualsunderstandthatcooperationandexchangeareprerequisitesforsuccess.

Whenweareinscarcitymode,wearefacedwithmanydilemmas,oneofthembeingthat ifresourcesarescarceandmaterial thingshavestatic,intrinsicvalue,theneverytransactionisawinforonepersonandalossforanother.Bydefinition,accordingtothescarcityparadigm,nopersoncaneverengageinawin-wintransaction.Ifresourcesaresoscarce,thedilemmabecomes,“IfIwanttobehappy,Imustdoitattheexpenseofthehappi-nessofotherpeople,and if Iwanttobemoral, Imustsacrificemyownhappinesstodoso.”

Theabundanceparadigmhelpsustoseethepossibilityofandthevalueinwin-winexchangesandtransactions.Peoplewhoareoperatinginabun-danceknowthatbyservingthewantsandneedsofothers,andthuscreatinghappinessinthelivesofothers,theyactuallybringmorehappinesstothem-selves.Thegoalistoserveothers,nottoexploitordominatethem.Theyareabletoservewholeheartedlyandcompletelybecausetheyknowthatbysodoing,theyaren’tinanywaydiminishingtheirownhappiness;infact,theyaregeneratingmorehappinessandsuccessintheirownlives.

Inanabundanceparadigm,wefulfillourneedsandwantsbyhelpingothersfulfilltheirown;transactionsarealwayswin-win.Inabundance,allofourthoughts,words,emotions,andactionsaremotivatedbycontribut-ingtoourpersonalsuccessandthesuccessofothers.Inabundance,noone

22  |  KilliNg sacred cows Myth 1: The Finite Pie  |  23

changethatoccurswhentheymakethetransitiontothinkingabundantly.Onecouple that I’vehad theprivilegeofworkingwith,BenandHeatherCorrales,toldmeoftheirstruggleswithscarcity.Theyalwaysfeltparanoidaboutfinancesandwerealwaysfocusedonworryingaboutthelackofmoneyin their lives.They thought that no opportunities would come their way,andthatopportunitieswereaproductofluck,ratherthanfactorsthattheyhadcontrolover.Evenwhentheyfoundopportunities,theyanalyzedthemthroughtheeyesofscarcity,andsotheydevelopeda“toogoodtobetrue”mentalityandwereafraidtoact.

Whentheystartededucatingandinvestinginthemselves,Iwatchedasignificanttransitionoccur.Theyexperiencedtheparadigmshift,embracedabundance,andbeganviewingtheworldthroughentirelyneweyes.Wherealltheysawwaslackbefore,nowtheywereseeingmultipleopportunities.Moreimportant,theyrealizedthattheyhadtheabilitytocontrolthepro-ductivityoftheiropportunitiesthroughtheirowneducation.Theystartedreadingandstudyingmore.Theyfoundandbeganutilizingresourcesthatwerepreviouslyunavailabletothem.Nowwhentheychoosetoengageinanopportunity,theydoitnotbecauseofhowmuchmoneyitwillmake,butbecauseitalignswiththeirpurposesanduniqueabilities.Thetimespentworryingwhentheywereinscarcityisnowtimethattheyspendincreas-ingtheirknowledgeandproductivity;they’velearnedtoreducetheirfearthrougheducationandtheabundancemindset.Injustashorttime,theyfeltliberated.Moneynolongerdictatestheirlivesorprovidestheprimarymotivationfortheiractions,andyettheymakemoremoneyinsaferways.

Thoughitisperhapseasiesttoseethefinancialandrelationshipbenefitsofanabundancemindset,thepowerofthiswayofthinkingextendstoallaspectsoflife.Ialsohavetheprivilegeofworkingwithsomespectacularindividualswhohaveovercomechallengesbyembracingthefreedomofabundance.Oneassociateinparticular,AnthonyAndelin,discoveredabundanceafteranagoniz-ingcaraccidentwhenhewastwenty-one.Onthewaytoamoviewithfriends,thecarhewasinwasbroadsided,leavingAnthonywithabrokensternum,abrokenpelvis,twobrokenribs,andaseparatedshoulder.Inthehospital,hewastoldthathemightnotwalkagain.

Anthony says that he quickly fell into scarcity, overwhelmed withthoughtsandfeelingsaboutallthethingshewouldmissoutoninlife,allthe

ers.Abundancecreatesopportunities; itdoesn’tdestroythem.Ifabusinessfailsinafreemarketitisbecausecustomersarebeingservedmoreefficientlyandeffectivelyelsewhere,notbecausethebusinesssomehow“lost.”Thisactu-allybecomesanopportunityforabusinesstolearnhowtoserveothersbet-ter,whichisexactlyhowsuccessfulpeopleandbusinesseshandletemporaryfailure.Successfulentrepreneursviewtemporarysetbacksassteppingstonestosuccess,allowingforincreasedknowledgeandthusgreaterabilitytosucceed;inotherwords,temporaryfailuresarepartofthemarketresearchprocess.

You Know You’re In abundanCe when . . .

Your primary focus in life is to lift, serve, and bless the lives of others.

You feel happy when others succeed—even those who may be viewed as your competition—and you never feel threatened by others.

You feel satisfied, complete, joyful, and calm.

The purchases you make align with your core values.

Your investments are wise; you’re not naïve, nor are you overly skeptical.

You perform wise, patient research and make an educated decision.

Rather than saying “I can’t afford it,” you ask, “How can I afford it?”

You consistently overcome fear, through faith and courage, to pursue your

dreams and a career that aligns with your passion and purpose.

You’re able to work with others to achieve things that you couldn’t do alone.

You take full responsibility for your life and your work and use your internal

strength to overcome all challenges and transcend external circumstances.

Throughout my career, I’ve had the benefit of witnessing firsthandtheholdthatscarcitycanhaveonpeople’s lives,andthentheempowering

24  |  KilliNg sacred cows Myth 2: You're in it for the long Haul  |  25

thingshewouldn’tbeabletodo.Then,at3a.m.,ashelaywallowinginhisperceivedlimitations,athoughtenteredhismindthatcompletelychangedhisfocusandoutlook.Herealizedthathisabilitytowalkagainwasdepen-dentuponhim,notonanydoctororotherexternalfactor.Inthequiethoursofthenight,Anthonymadeadecisionthatchangedthecourseofhislife.Hedecidedthathewouldwalkagain,thathewasresponsible,andthathewouldliveaproductivelifedespiteanythingthathappenedtohim.

Now,inspiteofallevidencetothecontrary,andafteraformidablereha-bilitationprocess,Anthonyisabletodoeverythingasbefore,withnolimita-tions.Heatteststhatitallcamedowntothatonedecisionbetweenscarcityand abundance, victimhood and heroism, that determined the outcome.Scarcitythinkingtoldhimtostoptrying,towallowinthepain,misery,anddeprivation.Butheknewthathewasbornforsomethinggreater.Heunder-stoodhispowerasacreator,andheusedthatunderstandingtocreatehisideallife.Nowhefindsfulfillmentinteachingothersthesameempoweringtruths:thatabundanceisthetruenatureoftheuniverseandofhumanbeings,andthatwecanbeanddowhatwechoosetobeanddo.

* * *

Wewereborntobecreatorsandtomakeourlivesextraordinarywiththegiftswe’regiven.Bybecomingconsciouslyawareofourownnature,wecanbegintoletgoofscarcityandfearandbegintoacceptandexpressabundance.Aswebegintothinkabundantly,thechangesinourthoughtsandbehavioraremanifestedexternally.AsJamesAllenwrote,“Mendonotattractthatwhichtheywant,butthatwhichtheyare.”

You’re in it for the long Haul

2:MYtH

remember, if you are able to save just $100 a month and you faithfully

transfer it to your nest egg, in forty years (compounded at the average

s&P 500 rate of 10.2 percent) that little extra saving will be worth close

to $700,000!

—richard Paul evans