Best Money Making Method 2: Invest

The second best way that you can make money is to INVEST. You can get paid very well for investing.

The question is when you invest, what is it that you get paid for?

If you don’t know that, you can’t accelerate it, multiply it, and make it bigger.

So, what is it that you get paid for when you invest?

Risk.

In investing, you get rewarded for the risk that you take!

You get paid for taking a risk that somebody either doesn’t want to take or can’t take. So, when you put your money in the bank, are you taking a risk? Yes.

How do you know? How do you know that there is risk when you put money in the bank?

Because they pay you!

If there were no risk, you would have to pay them for watching over your money. But they will pay you interest for putting money in the bank, because they will then loan your money out to other people, and they don’t want to take the risk of loaning their own money.

Bankers are very smart. They take your money and loan it to somebody else and they collect interest from the people to whom they loan the money; and they pay interest (less than they collect) to you and keep the difference.

They are willing to pay you for taking the risk.

Now the risk is not very high, so the interest rate is not very high.

It is one, two, or three percent in America right now.

What we often get taught when we are taught about investing is that you should minimize your risk. Hmmm. Now, risk is the only thing that you are getting paid for; so that is like most people going to work and minimizing their work. It is the same idea, right? So, if you minimize your risk, you are minimizing your reward.

If you minimize your risk, you minimize your reward!

What you really want to do in investing is maximize your risk. You want to maximize the risk that you get  paid for taking by taking risks that are easy for you to take but difficult for others.

See, not all risk is equal to each person.

Not all risk is equal!

There are some risks that I am very willing to take that you might not be willing to take.

If a lot of other people don’t want to take that risk, but it is OK for me, I can get paid a lot of money for assuming that risk.

I will give you an example. There is a type of risk that is called volatility risk. Volatility risk is the risk of the value moving up and down. Now, as long as it is going up over time, do you care? As individuals, do you care if on Friday you’re down a bunch as long as on Saturday you are up a bunch? It doesn’t really matter to you that much, right? As long as you know that sometime in the future you are going to have the  financial situation you want, you don’t care about volatility.

But if you work in a corporation, and you are in the treasury department, do you care? Yes. You care a lot, because if the investment is down on the day that you have to close your books and declare the current value of the investment to your shareholders, you lose your job.

So, it is easier for you as an individual to take volatility risk than it is for a corporate treasurer to take volatility risk.

You want to find types of risks that you can specialize in. Then you want to take as much of that risk as possible, so you get paid as much as possible.

Find an area of risk where you enjoy a competitive advantage.

Best Money Making Method

Best Money Making Method 1: Work

The first best way that you can make money is by working. Sometimes you don’t like working; but you know how to work, don’t you? You go to work. You go to your job. You do your job. Each day you add value. You exchange value that you create, and someone pays you for that value. The payment that you get is the reward of your work or your labor.

The payment you receive for your work is the reward of your labor.

Now, the question that I want to ask you is why on earth would anyone pay you to work?

They have the money. You don’t have the money. They don’t have to give it to you. Why would they give you the money? Think about that for a minute.

Why would anybody actually pay you to work?

Why wouldn’t they just do it themselves and keep the money? It is because you are doing something that either they can’t do or they don’t want to do.

When you work, you are rewarded for doing things that other people don’t want to do or can’t do!

Get that; capture that principle.

Most people don’t understand the principle of work. Most people think that anything they do they should be paid for. I worked. I did something. Pay me.

I have employees come to me and say, “I worked till nine o’clock.” I don’t care. Unless they have done something that I can’t do or that I don’t want to do, I am never going to give them very much money for doing it.

So, you have two ways that you can get paid for working, which are can’t do or don’t want to do.

What you should do when you go back to your job is tell your boss to assign you the worst complainers: “If anyone is screaming at you on the telephone, send them to me.”

Would you get paid more or less? More.

If there are really crappy jobs in your company that nobody wants to do, what should you be saying? “Give them to me! Give them to me! Give me the crappy jobs!” Because you will get paid more.

What is the hourly wage of a garbage collector? High or low?

Worldwide it is high.

If you go to an advanced nation with a well developed economy, garbage collectors make lots of money.

Become a garbage collector in Japan. They pay you really, really well. Nobody else wants to collect the garbage.

You could go to the United States and become a garbage collector. They get paid pretty well because other people don’t want to collect the garbage.

This brings us to another important point. If you are going to do either something that people don’t want to do or something that they can’t do, for which would you get paid more?

The “can’t do” jobs.

If they can’t do it, then you get to tell them how much it is going to cost them. If they don’t want to do it and the number that you quote is too high, they will do it themselves even if it is something they don’t like. If they can’t, then they can’t.

You get paid more for doing things that others can’t do than for doing things that others don’t want to do.

The thing that creates economic value is scarcity.

Scarcity is the source of economic value!

There is lots of concrete in the world, and it’s not very expensive.

There are not very many diamonds. They are special. They are expensive.

Concrete and diamonds are both hard substances. They are both useful, but there’s not very many of the one there, so it’s much more expensive.

So, you want to be a diamond instead of a lump of concrete.

It is better to be a diamond than a lump of concrete.

You want to develop skills and talents that nobody else has.

If everybody in your school is studying English as a second language, then you want to study Arabic. Nobody is studying Arabic, so you can go to work for the oil companies and you can talk with all the locals and they will pay you lots of money to do it.

This is my own experience. I came from a family that had to work. I started to work at the age of 11 for $1.18 hour.

All the other students in my class were studying German, Spanish, or French. So I started studying Japanese. I learned to speak Japanese; and in 1983, when I first moved to Japan, there were not very many people who could speak both Japanese and English. The ability was scarce so it was valuable.

When I got my first job, I was paid almost three times as much as the college graduates who were starting the same year with me. It was because I could do something they couldn’t do.

I use to live in an apartment right under an individual who had a very unique skill. It is a completely worthless activity, and yet they pay him millions and millions of dollars every year for hitting the ball with the stick. He has a particular skill and can do things that other people can’t do.

So, that is the first way to make money. If you have a skill that very few other people have, can you make lots of money doing work? Yes.

If you don’t want to do things that other people don’t want to do and you don’t have any unique skills, can you make a lot of money working? No.

However, there is another secret. The reward is always based on the quantity of service plus the quality of service. So, you can work very long hours to become rich at work. Then do it with a positive mental attitude, meaning that you have to be happy. Remember long hours and a positive attitude equals unlimited fortunes.

I wanted to be a anchor, and anchoring fees were not much when I started anchoring 15 years ago. Little insurance offices with six to eight people would have me speak. Then I went to regional meetings, and I could charge more. I started anchoring at $25 a show, then $50, and then $100. Now, I get up to $45,000 for a show, so it pays really well. My average audience is 4,0000 to 5,0000 people. How many people am I serving? The value of work is equal to the quantity of service plus the quality.

Is the quality high? Hopefully, the information I impart—to use a baseball metaphor—is not a first-base hit, not a second base, not a third base, but a grand slam home run with the bases loaded.

You get paid exceedingly well if you are the home run hitter. That is what we are saying.

If you do it with a good attitude, not only do you feel good, everyone around you feels good too. The workers feel good. The employees feel good. The staff feel good.

When we go in with one of my Mega seminars, the hotel says, “You are the most pleasant people.” Why? We set the attitude. My leadership, my team, sets the attitude. So, the whole hotel resonates at a higher level. That is our goal. We want everybody to win, nobody to lose.

This is not a prevailing attitude, but how else do you maintain a positive mental attitude?

Quick summary: Attitude is the multiplier effect that gets added on to the work that you are doing when you are doing other things that people can’t do or don’t want to do.

The Best Ways to Make Money

We want to jump into one of our all-time favorite topics: how to make money. Is anyone interested in how to make money? How many of you want to make a fortune? Everyone touch your temple and say, “I’m ready!”

If you want to make money, you have to know how many ways there are to make money and what the secret is to making money in each of those ways.

We have found in all of human history there are basically few ways to make money. Now, the really cool thing is that you don’t have to learn all ways to make money, because you can make money doing any one of the best ways.

There are several ways to make money and you can make money using any one of the best ways! If you understand the essence or the principle behind that method of making money, you can use the principle to accelerate how much money you make using that method.

There are people who have become wealthy, interestingly enough, in all methods. Let’s jump into Best Money Making Method number one.