WEEK SIXTEEN

Welcome to Week Sixteen of the Jim Rohn One-Year Success Plan. We hope you are
having a great week and are ready for this week's journey.

One of my favorite phrases is the "slight edge". Not sure who originally coined it, but I
first heard the legend Paul Meyer use it. My interpretation of the "slight edge" (and how
we apply it here at JRI and in my own personal life) is that it is the small but ever-steady
growth over a long period of time that leads to big, long-term results. It really is the core
of the Jim Rohn philosophy - doing the easy, very doable basics on a consistent basis that
leads to great success over a period of time. And conversely, neglecting to do those very
same easy, doable basics can also lead to failure.

When looking at this month's Pillar - Finance (and also last month's Pillar of Health), Jim,
Chris and I all agree, that the "slight edge" philosophy is the core strategy to either work
your way out of a deficit or to create greater results.

Typically in our life, we'll find ourselves asking what's wrong and by how much, which is
the first important question to consider. But the next important question is what one or
two small, easy "slight edge" things can I start doing today, right now, that takes me in
the right direction. One good small decision is what can lead to one more, then one more,
and soon the momentum of making bigger decisions and changes begins to emerge.

This month as you tackle getting out of debt and paying yourself first (saving a portion of
your income), look at what additional "slight edge" activities you can do that will have
you equally on pace with your investing plan.

You are doing Great!!

Kyle

“Plan your progress carefully; hour-by hour, day-by-day, month-by-month. Organized

activity and maintained enthusiasm are the wellsprings of your power.
-– Paul J. Meyer

Copyright Jim Rohn International 2002-2004 296

Copyright Jim Rohn International 2002-2004 297
 M
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Jim Rohn's Fourth Pillar of Success: Money and Finance,

Part Three – Investing
The four pivotal topics in regard to finances are:

1. Getting Out of Debt - Debt is a killer. It is a killer of dreams and hopes. It is a killer
of businesses. It is a killer of financial futures. And, according to statistics, debt plays a
prominent role in many failed marriages. So what should we conclude from this? If we
are to be successful, we must have a commitment to stay out of debt! You can make two
million dollars a year but if you spend 2.5 million dollars, it doesn't matter how much
money you made, does it? You will be saddled with debt. We addressed this issue two
weeks ago.

2. Saving - One of the key components to long-term wealth building is the discipline of
saving money on a regular basis. Last week, we went through the basics and showed how
a commitment to saving money can revolutionize your financial life and provide the kind
of security you desire. One simple difference between the philosophy of the rich and the
poor is: the rich save/invest their money and spend what is left; the poor spend their
money and save/invest what is left. What a simple shift in our thinking for such a
revolutionary result.

3. Investing - Investing is much different than saving. Investing involves risk - calculated
risk - and the possibility for much more reward. Saving and investing are done for
different reasons and with different desired goals and outcomes. By taking a portion of
our income and turning it into capital to be invested, we will be actively working toward
our goal of financial independence. We cover the importance of investing, along with
some basics of investing in today's edition.

4. Giving - Giving a portion of your resources away is one of the most powerful
principles you will ever embrace. It seems counter-intuitive, but the truth is that giving
will help you achieve the financial freedom you desire. Amazingly, giving makes you
bigger than you are. The more you pour out, the more life will be able to pour back in. So
giving a percentage of your resources away will help you not only have more money but
enjoy it more as well, and that is the best benefit. We will cover giving next week.

This week we focus on the topic of investing.

When you look at the wealthiest people in the world, you are almost always looking at
people who are investors. They know that the way to long-term accumulation is through
investments in a variety of means to develop financial abundance.

I do not believe that people with wealth are any better than anyone else, they simply have
applied themselves methodically to the disciplines of wealth building, some of which we
are going to look at in today's edition.

Copyright Jim Rohn International 2002-2004 298

The key is to begin to see yourself as an investor--an investor in yourself, in others, in
businesses, in assets and in financial vehicles that will maximize your return and begin to
help you accrue the kind of wealth you desire.

Let's take a look at some of the specific things you need to invest in if you are going to
build a lifetime of wealth and abundance that will provide you and your loved ones with
the lifestyle you are looking for. Because we all know a variety of ways to make a living
- now let's figure out how to make a fortune!

Here are a few things you should invest in:

Invest in Yourself. You are already doing this by participating in this One-Year Program.
Those who develop real wealth always invest in themselves. They are readers. They
study. They have an interest in people and wealth. They are constantly working on
bettering themselves and stretching themselves to become people of knowledge and
influence. If you want to be a person who achieves financial independence, then you
would do well to continue this journey of investing in yourself. Make yourself better by
learning all that you can about business and wealth. Learn about people and what drives
them. Learn about yourself so you can maximize your strengths and improve your
weaknesses. Always strive to make yourself better each year than you were the previous
year.

Invest in Others. My friend Zig Ziglar says that a person can get anything they want in
life if they will help enough other people get everything they want out of life. People who
develop long-term wealth are those who provide something for others - they help others
and invest in them - and they reap multiple rewards that come from their investment!

Invest in Your Company. When you look at the richest people, minus athletes and
entertainers, you will see a huge percentage work for themselves. They own their own
businesses. They work for wealth, not for wages. As you've heard me say before, profits
are better than wages because wages make you a living while profits will make you a
fortune. If you have a company, work on building it and increasing revenue. If you do not
have your own business and you feel you are ready, please consider starting one. Besides
the obvious advantage for building wealth, there is also the added benefit of knowing you
are charting your own course and determining your own destiny.

Invest in Hard Assets. One of the best ways to

develop long-term wealth is to convert your
money into assets that increase in value and work
for you. Examples of this would be real estate,
especially income producing real estate, such as
rental homes, apartments, or office complexes.
Certain collectables may also fall into this
category. When we convert our money into hard
assets, we are helping to cultivate long-term
wealth for ourselves by diversifying into many
different areas that can work on our behalf.

Copyright Jim Rohn International 2002-2004 299

Invest in Ideas. One of the amazing things we continually see is how ideas can become
wealth. In fact, every company, every product and every service that has ever existed,
first existed in a person's mind in the form of an idea. But let me say that you must search
for good ideas because rarely do they interrupt you. So read, search, go the classes and
invest the time to seek out good ideas. Because if you do, then you will find them;
ancient script assures us that if we seek, we will find. Now when good ideas are
combined with intelligent action, those ideas take form and can produce wealth. Invest in
your ideas. Cultivate them, dream about them, sharpen them and apply them. Then those
ideas can become wealth for you to enjoy for a very long time.

Invest in Public Companies. Typically this would be the stock market. Even with the big
dips we see from time to time, the stock market averages about twelve percent a year
return for those who stay in for the long haul. The best strategies typically are those that
involve methodical investment in both good times and bad. Think about the power of
investing in a public company. Let's say you invest $1,000 in Microsoft stock. What is
amazing about that is now you have Bill Gates and his people going to work every day on
your behalf! This is the power of investing in a public company: you become an owner,
and the employees work on your behalf and you share in the returns. Again, when you
look at those who achieve great wealth, there is almost always a component of
investment in public companies.

Now that we have looked at what to invest in, let's look at the Basics of Investing:

1. Let your money work for you, not the other way around. People who achieve long-
term wealth and financial independence are those who have found the secrets of having
money work for them, increasing on its own. Don't work for wages, work for wealth.

2. Get a team of help. Even a beginning investor can have a team of people working for
them, advising and teaching them. Obviously they start with a team of advisors through
the books and financial resources they read. Even a minimal investment at the bookstore
will provide you with a broad range of information that will give you a great head start on
investing. Next, a stockbroker, a financial advisor and an accountant are good to have.
Most of them will work on your behalf even if you only have a small amount to invest. It
isn't wise to go it alone. Get the help you need to make good decisions.

3. Do it regularly. The key to accumulating wealth is the same as almost all disciplines--
do it regularly. If you wanted to lose weight you would exercise on a regular basis. If you
want to build wealth, you invest on a regular basis. Every week, the first of the month,
four times a year; it doesn't matter except for the fact that you must make it consistent.
Whether the amount is big or small, just keep doing it, and you will find that your
investments compounded over time will yield a great harvest.

4. Harness the power of compound interest. I wrote last week a little about compound
interest and the power it provides. Rumor has it that Albert Einstein called compound
interest the most powerful force in the world. Whether he said it or not, it is close to
being true. There is tremendous power in building wealth through compound interest.
Last week I also wrote about the rule of 72, meaning whatever investment return you
receive on average, divided into 72 will be how many years it takes to double your
money. So, for example, let's say long-term you receive a 12% yearly average return on
Copyright Jim Rohn International 2002-2004 300
your stock portfolio. This means that if you put $10,000 into your stocks and never add
another dollar, you will still have $20,000 after 6 years; that is your money working for
you. And after 6 more years you would have $40,000. After six more years (18 total now)
you would have $80,000. And that is if you had just invested the original $10,000. Where
this becomes incredibly powerful is when you are continually adding more investment
money to the pot! Grab a calculator and work the numbers for yourself. You will be
amazed!

5. Think long-term. Yes, we still hear about overnight millionaires, but the fact is that
they are the exception, not the rule. To develop long-term wealth, you must have a long-
term mentality. Your stocks won't go up every year. Not every investment will work out.
Sometimes your property values will go down. But long-term you will see that the trend
is up, with some dips along the way. Remember, it is the tortoise mentality, not the hare
mentality that achieves long-term wealth.

6. Generally speaking, move from aggressive to conservative. Younger people can

afford to be more aggressive than older people because they have more time in which to
recover if their investments sink in the short-term. As you get older and have more and
more resources available, you will want to move more into capital preservation rather
than capital appreciation. You may still have a portion in which you invest in speculative
ways but you will move most of what you have into investments that preserve what you
have spent a lifetime accumulating. Of course, your financial advisor can help you set up
a plan that is perfect for you.

7. Invest in what makes you comfortable. Ultimately, you want to be able to sleep at
night. Some people can invest in wildly speculative investments with no worry, and
others are more comfortable with something safer. Whichever way you decide, that is
okay. It is your life and you have to feel comfortable with how you live it. Research, gain
all the knowledge you can and then invest in what you know and what allows you to feel
comfortable.

Keep in mind our goal here is to have the ability to live from the income of our own
personal resources, thus achieving our own financial independence. What a powerful
feeling of knowing that you depend on no one for your financial welfare.

In the next section, Chris is going to give you some thoughts on financial freedom as well
as some questions for reflection and actions points on which to follow through.

Until next week, let's do something remarkable!

Jim Rohn

“The faster you move toward financial freedom, the faster it moves toward you.
Whatever you want, wants you.”
-– Brian Tracy

Copyright Jim Rohn International 2002-2004 301

Hi there, Chris Widener here. Below are some action points and questions to follow, but
first a few thoughts on financial freedom and how to find it for yourself.

Financial freedom is a buzzword for our generation. It is the pursuit of literally millions
of people. So what is it? Is it that elusive? Can anyone achieve it?

Let me start by saying that this is not about how to earn money, or even more money.
Rather, it is about how to find financial freedom, which surprisingly, may or may not
involve making more money.

The first step in finding financial freedom is to realize that financial freedom has
absolutely nothing to do with how much money you have or make. What? Exactly.
Financial freedom is something that goes on inside of you. This is why someone who
makes very little can be happy and someone who makes a ton can be extremely stressed
out over his or her financial situation. So the first step is to realize that financial freedom
is more about our attitudes toward money than about the amount of money.

"Okay Chris, I'm with you. So what are the attitudes that provide financial freedom?"
Here are a few that keep me in financial freedom.

I do not have to worry about money. I used to catch myself saying, "If I had more money,
then I wouldn't have to worry about ..." But do you know what? I don't have to worry
anyway. I can control my income. I can control my outgo. I can make choices that can
alleviate any of my worries. I also realized that things always work out. So why worry? I
choose not to worry. I work hard, invest, plan for the future and I do not worry about it.

I can be happy regardless of my financial state. I know people who are worth hundreds of
millions of dollars and I know people who don't have two nickels to rub together. Some
are happy and some aren't. And none of the people who have a lot of money say to me,
"Chris, I've become so happy since I got money." They were happy before they had
money and they are happy now that they have money. Their happiness has nothing to do
with the money. Billionaire David Geffen once said, "Anyone who says that money will
buy them happiness has never had any money."

Money is a means to an end, not the end itself. Another way to

look at it is that money is a tool to build the house, not the house
itself. I would set some financial goals if I were you, but go
beyond that to know what greater purpose there will be when
you reach them. What will the house be used for that you build
with this tool?

I am free. I am free to earn - some people think it is bad to earn

more money. It isn't. I am free to save - some people believe it is
bad to save. It isn't. I am free to give money away - some people
feel they will be better off hoarding it. They won't. I am free to
spend - some people believe that they can't spend anything on
themselves. They can. We are free to make choices. That is financial freedom.

Copyright Jim Rohn International 2002-2004 302

Embrace delayed gratification. Here is the principle: Buy it now and struggle later.
Another principle: Delay buying it now, invest the money, and have all you want later
on! And you won't even have to touch the principal! We tend to think that having it now
will bring enjoyment, but unless you can do it and not cause yourself financial stress, you
will actually get more from waiting!

Have more by managing better. The fact is that most of us earn enough. What would be
beneficial is to set our priorities and live by a budget. As we get control, our budget will
loosen up a bit and we will find ourselves enjoying it more. Money that is already there
can be your answer if you put it to work for you.

You can experience financial freedom no matter how much money you have. Granted, it
is great to build wealth and that should be our goal, but no matter what level you are
currently at, or what level of wealth you ultimately attain, if you keep money in the
proper perspective, you can be happy and free.

Recap of CD 11:

• A valuable reminder to invest life into life

• Always be sincere and do your best

• It takes more than one voice to learn from

• Goals will change your bank balance drastically

• The promise of the future is an awesome force

• Reasons make the difference

• We are primarily affected by five things:

1. Environment
2. Events
3. What and who we know and don't know
4. Results
5. Dreams

• Our future should be the greatest pull in our life.

• Dreams and goals become magnets.

• Faith is the ability to see things that do not yet exist.

• When should we start building? As soon as it is finished!

• Humans are the only creatures on earth that can change the course of their lives!
Copyright Jim Rohn International 2002-2004 303
 • You are not a goose! You do not have to do the same things every year!

• Where will you be in five years - in a well-designed or un-designed destination?

• Up front, decisions are easy.

• We go the direction we face.

• Direction determines destination.

• You cannot change destination overnight.

• It is a small journey to a new direction.

• A few thoughts from the V. I. P. luncheon

Bob Burg:

• To get referrals you need people to have specific thoughts about other people they
can refer you to.

• The giving mentality is the best mentality

• Discipline is being comfortable being uncomfortable

“Earn all you can, give all you can, save all you can.”
-- John Wesley

Copyright Jim Rohn International 2002-2004 304

 Q
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Q. Do you have an investment plan? Do you follow it? How well?

Q. Do you have a plan to invest in hard assets? Income producing assets? Write them
here.

Q. What ideas do you have that you can invest in?

Q. Are you investing in your company? If so, how? If you don’t have one, have you
considered starting one? What would it take for you to step out and do so?

A
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1. Take some time this week to review your investments and/or your investment plan.

Copyright Jim Rohn International 2002-2004 305

2. Go to the library or bookstore and buy a book on investing that can help you move
toward a better understanding of the topic. Write the book title here.

3. Make an appointment with your financial advisor if you have one, to take another
look at where you are and where you are going with your investments. Write
comments here.

4. Make a commitment to invest a percentage of your income on a regular/consistent

basis.

5. Sit down and work on an investment plan, looking at compound interest and what you
will invest, to chart out what kind of wealth you will attain through your goals. Write
comments here.

6. Find some “extra” money in your budget to commit to invest. Cut back in an area and
commit the money to investments. In what area can you cut back?

A
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This week we will be listening to CD 12 of the New Millennium series.

Next week we finish goal-setting with Jim – Don’t miss it!

See you next week!

Chris Widener
Copyright Jim Rohn International 2002-2004 306
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Millennium series: s e r i e s:
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