Chapter 1: The First Vow - Always will I bathe my mind with knowledge
What is the mindset of the average Hispanic-American who
wants to become a millionaire? Perhaps a more accurate question would be: Does the average Hispanic-American even consider it at
all? The prevailing wisdom is that Hispanic-Americans don’t think about becoming millionaires because of the “rules” we are taught in
childhood. Rule Number 1: Get a high school diploma and then,
hopefully, a college education. Rule Number 2: Raise a family. If you follow these two rules, you will be guaranteed a fulfilled life.
And here’s the bigger rule that underlies the other two, unarticulated but clearly understood by
Hispanic-American children and adults alike: only Anglo-Americans can become millionaires.
After all, they were here first and had most of the control over
America’s land and precious resources. The truth many of us fail to realize is that the two life goals of Hispanic-Americans are goals
shared by all ethnic groups and nationalities. But members of these other groups dare to dream of something more. For Hispanics, the
added goals of wealth and financial prosperity never even enter the equation. Our grandparents, and even our parents, believed that
making it through school and getting married would result in a great life. But what
does it mean to have a great life? Does it mean having an average income with an average net worth after we accomplish our
goals of education and family? Why should we stop at “average”?
Why shouldn’t our people have the opportunity to gain wealth—as
much wealth as we desire—in the greatest capitalist country in the world, the United States of America?
Based on information published by the U.S. Census, in 2001 a
married Hispanic-American family’s median income was about $40,000 a year, while their Anglo counterpart’s yearly income was
about $60,000—almost 50 percent more. Why is there such a discrepancy in one of the richest and most free nations in the world?
Is it because Anglos have a longer history in America than do
Hispanics? Is it because they own more land and have more varied opportunities than we do? Do they have more governmental, and
therefore more economic, control? Or is it because our parents and grandparents suffered through years of discrimination that taught
them not to disrupt the system? Is it because this lesson—If you don’t rock the boat, then you can’t get hurt—was passed along to us…their
children?
Strong focus can take you where you want to go and get you
what you want in life. This is a reality of human nature. Unfortunately, if the scope of your focus does not include becoming
wealthy, then you will not pursue it. Think about your own life. Has your mindset ever prevented you from exploring or investigating
wealth opportunities that could increase your income and expand your net worth? Have you ever discussed financial matters with your
parents? What about the idea of becoming a millionaire? Did you believe that they would laugh at the idea and tell you that only
Anglos could pursue that particular goal?
If we look at median income by education (Chart 1-1), we can
see that the average Hispanic household headed by a college graduate makes $67,165 a year. If you take the median income of $67,000 and
multiply that by 40 years, in today’s dollars that number would total $2.6 million over their lifetime. Will that average income turn into a
million-dollar net worth? If you subtract taxes from that income, you are left with about $4,000 a month to fund your current lifestyle and
to become wealthy in the future. While this amount of expendable
income is “not bad,” it’s unlikely to make you a millionaire. Now, $10,000 a month might be a different story. You should probably
aim to get your income level to more than $100,000 a year—an amount that less than 50 percent of 1 percent (.004) of all Hispanic-Americans currently make.
As I said, based on the current median income earned by
Hispanic-Americans, you can live a good lifestyle in the U.S. But is “a good lifestyle” really good enough? Deep down, don’t we want
more income and more assets for our families? Most people, if they really think about the opportunities wealth can bring, would have to
say yes. But this is the problem: Hispanic-Americans have not been taught to become millionaires.
In order to become a successful millionaire, you need other
millionaires to teach and mentor you. You can also learn from books, CDs, seminars, and DVDs. I am the first to tell all parents and their
children to get a high school diploma and go to college. College is an important step in expanding your education as well as gaining
valuable knowledge for your career. This will help you increase your
future income production. College is valuable also because it serves as an opportunity for young people to interact with their peers. It
helps them make the transition from childhood to adulthood. Much of their future social behavior is developed during the college years.
Confidence, social standing, and future business contacts are all things gained in college that can be utilized in a future millionaire’s
life.
So, let’s get to the “million-dollar questions.” How can I become
a millionaire? Is it possible for me to make $100,000-$250,000 in annual income? Is one million dollars a year out of my league? You’re
probably already seeing the truth: you will have to change your mindset in order to achieve the Millionaire Goal. (By the way, for the
purposes of this book, the Millionaire Goal means achieving a million dollars in net worth over the course of your lifetime. You can
always shoot for an even bigger goal later—say, a million dollars a year in income—but first things first!) Begin by taking an hour a
week to focus on your goal and the steps you will need to take to achieve it. Gradually increase your focus time until the idea of
becoming a millionaire is as familiar to you as your own name.
You might wonder if you are destined to be an average Hispanic-American, making average income for your family. Ask yourself some
tough questions. Why have some Hispanic-Americans who have the same education and social background as you become millionaires,
while you have continued making the same, average amount of money? Can you have a million-dollar net worth? How about a fivemillion-dollar net worth? Do you believe that those kinds of goals are
unattainable—that only certain Americans are entitled to them? If you cling to these beliefs, even subconsciously, you are setting up a
self-fulfilling prophecy—one that will surely keep you from your goal.
Right now, let’s start the process of believing that you or any
Hispanic-American can become a millionaire. It is easier than you think. Begin by altering your ideas of what Hispanic-Americans can
do. You might have to live a life that looks very different from the picture that was painted for you. This isn’t to say that many of the
lessons you’ve learned from your parents, teachers, and peers won’t help you. They will. But you must educate yourself on the techniques
and experiences you will need to become a millionaire. Start to believe that you have the right to gain wealth for yourself and your
family. Then use the power of your life experiences to go out into the world and begin achieving your goals.
How does a Hispanic-American—or any American, for that
matter—become a millionaire? Is there a secret formula that will help you to become wealthy? The answer to these questions might be
obvious to you. On such occasions my daughter Raquel likes to say, “Duuuhhhh, Dad!” Perhaps you’re “duh-ing” also. The secret to
becoming a millionaire isn’t really a secret at all. But if you don’t
believe the millionaire formula applies to you, it may as well be written in hieroglyphics…upside down and backward!
Approximately 1 percent of Hispanic-Americans have already
become millionaires, because they have adopted the “Millionaire Mindset.” They focused on the goal of becoming wealthy, much like
they focused on their more “traditional” goals of getting a high school diploma and going to college. If you set your mind to it and
go after it with a passion for success, you will accomplish it. That’s the so-called “secret.” Not too complicated, is it?
To become one of that 1 percent, you may have to change many
aspects of your life, including the people with whom you choose to socialize. Why would you allow friends who make negative
comments or list reasons why you can’t succeed to derail your Millionaire Goal? If you think you can’t achieve the goal of becoming
a millionaire, then you never will. If you think I can, I can, then you are on your way to reaching that goal. Your mind is a very powerful
tool and will do whatever you program it to do.
Imagine that you invite your family and closest friends to a party
at your home. After dinner you tell them all that you are going to become a millionaire. What do you imagine will be their first
reaction? Will they laugh? As Hispanic-Americans, we are often programmed to believe that there isn’t the slightest chance of
becoming a millionaire. In our heart of hearts, we may even feel that derisive laughter from friends and family is a normal, appropriate
response to our dream. Don’t you think that’s sad?
If you have made the decision to achieve millionaire status, why
shouldn’t your friends support and encourage you? Isn’t that what friends are for? I believe there are two reasons why your friends may
not live up to this ideal. One is the “misery loves company” principle. If they can’t be rich, why should you? The second reason is that they
are afraid that you might forget about them during your quest and leave them behind.
Please understand: I am not telling you to forget about your
friends. It is just important that you stay focused, because a constant barrage of negativity can delay your progress or even cause you to
abandon your dream. Don’t let your friends distract you. (And if they’re actively trying to do so, are they really, truly your friends at
all?)
The reality is that we are all concerned with what our family and
friends think. We assume that they constantly wonder about where we are, what we’re wearing, what kind of car we drive, whether or not
we should buy a bigger house. Whether this is true or not, the perception drives our behavior. You’ve heard of keeping up with the
Smiths and the Joneses? This cliché also holds true for the Garcia’s and the Sanchez’s.
Have you ever heard statements like, “If you hang out with broke
people, you probably are broke too,” or “If you hang out with middle-income people, then you will be middle-income as well”? You
don’t want to abandon your lifelong friends and certainly not your family because they don’t have the Millionaire Mindset. Just start
adding financially successful people to your roster of friends, while
slowly disengaging yourself from negativity-filled acquaintances determined to hold you back. Realize that if you stay middle-income
forever, based on United States inflation and tax rates, you will always lead a discounted life—living paycheck to paycheck, not being able
to afford the things you really want. There is no free ride to living a millionaire life; there is only hard work.
You will have to become a millionaire mentally before you
actually become one physically. This does not mean that you can go out and spend all of your money because in your mind you are
already wealthy. True millionaires are quite frugal people. It will also help if you begin to understand that there is a difference between
saving your money and investing it. Millionaires save money on their
purchases and they save money for a rainy day, but they use their financial prowess to find, or even create, many investment
opportunities that will increase their profits. Most Hispanic-Americans have no middle- or long-term investment goals. You
cannot make a profit of, for instance, 30 percent if you never take
advantage of investment opportunities.
If you have a die-hard buy cheap mentality created by a lifetime
of hearing “traditional wisdom,” then you will always think cheap and safe. And if you think only cheap and safe, then you will never
have the courage to take advantage of the investment opportunities that are right in front of you. Already, you may have passed on some
great opportunities because you were afraid that the cost was too high. You need to change your mindset in order to be successful. If
your mental database has no millionaire files in it, you will never become a millionaire.
Once you have a clear picture in your mind of yourself as a
wealthy person, you will want to get up early each morning in order to put your new ideas into practice. You are about to take an
unknown, yet rewarding journey: the Millionaire’s Journey. Every venture into the unknown requires road maps and signs to assure a
safe passage. This book is your map to the millionaire life. Are you starting to think like a millionaire yet? Are you willing to plan your
life as a millionaire? Do you believe that you will become a millionaire? I am telling you that you have the power. You have always
had the power. The power lies in that superb organ we call the brain. The brain is as precise as a computer, and you can use yours to
achieve your dream.
As you read the title of this chapter, you’re probably thinking, I’m
not a millionaire yet, so where am I going to get the money for a million dollar
computer? The truth is you already own one. Your brain is the world’s most efficient computer, capable of holding over eighteen
billion bits of information. I have heard for years that the average person uses only about 10 percent of the capability of his or her
brain. Whether or not this statistic is truth or myth, I have no doubt that most of us barely tap the enormous potential offered by this
most amazing organ. Even if most people use 100 percent of their brain, it’s very likely that they haven’t imported 100 percent of the
files they need for making decisions to meet the Millionaire Goal.
Envision your brain as your personal computer. The things that
you are able to do today in the world in which you live depend on the files in your computer. You can output only what you input. You
can output an Excel spreadsheet only if you plugged the appropriate data into the Excel program. If you want to type a letter, you must
have a word processor program installed on your computer.
Of course, you must do more than just possess capability. You
must also take the time to learn how to use the particular program.
Just because you have Excel installed on your computer doesn’t mean
that you will receive a detailed spreadsheet of your monthly
household expenses magically. You must learn how to enter data into
the program and then decide the exact data to enter in order to
achieve the result that you want. Below are several real life examples
of information you input into your brain’s computer every day in
order to receive the appropriate output. What happens if your file is
incomplete because you have not taken the time to find the correct
data for that particular file?
For Example:
Input Output
The second set of files looks rather sparse. What steps will you
take to make them more accessible? At one point in your life, reading probably seemed as impossible to you as becoming a Hispanic
millionaire seems today. And yet, here you are, reading without thinking twice about it. Why should the Millionaire Goal be any
different?
Your computer brain has been receiving files since the day you
were born. Everything you are able to do in life is inserted into a file. Your brain can create output solutions from a combination of many
input files. The right combination of input files can help you create any number of miraculous outputs, even wealth. (Imagine the files
Einstein must have installed in his “computer.”) One day soon, the right combination of files might help someone find a cure for cancer.
The right combination of files will help you become a millionaire even sooner.
The right file can mean the difference between owning an
$80,000 home or a $250,000 home. It could be a way for you to earn an extra $50,000 worth of income each year. A few strategically
placed files can be the difference between your being the person giving a presentation entitled How to Become a Millionaire or the
person paying to sit in the audience and listen to that presentation.
A few new files in your brain’s computer labeled financial
independence can get you out of debt completely. Your computer brain can create a small net worth or a large net worth. So before we
move on, let’s find out what your computer brain is worth to you today. Let’s look at an example of another Hispanic-American’s brain
computer so that you can compare it to your own. After you have looked at this example, use Chart 3-1 to figure out your own worth.
What Is Your Time Worth?
Throughout this book I emphasize the importance of working hard and making sacrifices in your quest to
become a millionaire. It’s true. Becoming a millionaire does require you to give up some of your free time. What it
doesn’t—or at least shouldn’t—require is burning the candle at both ends every day of your life until you
die. After all, what good is having money if you can’t enjoy it?
Plus, millionaires usually become millionaires because they
work smarter, not harder.As they accumulate assets, their time simply becomes worth more. That’s why I recommend
that as you get closer to your Millionaire Goal you decrease the number of hours you work while simultaneously
increasing the amount you earn per hour. Charts 3-1 and 3-2 will help you track this earnings-per-hour journey.
Never stop asking yourself, What is my time worth?
You will conclude that it’s worth a lot . . . both economically and personally.
Let’s look at George Sanchez who is forty-five years old. He has
a college degree and is married to Maria who is forty-four years old. George and Maria Sanchez have two children and a yearly income of
$40,000. George has been with the same employer for ten years. He also owns a home valued at $150,000 and has a net worth of
$50,000. Since birth, George Sanchez has received millions of bits of information from his parents, peers, teachers, and employers, all of
which have helped him arrive where he is today. We can use this information to make the following conclusions:
Age 45 = Annual income of $40,000 and a $50,000 net worth
$40,000 / 2,000 hours = $20 an hour
$50,000 / 45 (age in years) = $1,111 a year accumulation
Now let’s compare George’s file to another Hispanic-American’s file:
$250,000 / 2,000 hours = $125 an hour
$1,000,000 / 45 = $22,222 a year accumulation
Why is there such a huge difference? You probably know some
Hispanic-Americans who make more money than you, who have a larger home and a higher net worth. These might be people you’ve
spoken to without ever imagining they could possibly have a million dollar net worth. You know the answer to the “why such a huge
difference” question, don’t you? They have loaded their computer brains with more of the right types of files.
Okay, stop reading right now and close your eyes! Repeat these
words to yourself: “All I have to do is input the right files into my brain computer.” Say it several times until you believe it. Ignore the
strange looks that the dog is giving you. The idea of inputting files to change your life is much easier than first trying to create a whole new
belief system based on things you will need as a millionaire, such as trust, motivation, and self-esteem. Please understand that you already
have many of the answers you will need to accumulate wealth. You
will be able to access this information whenever you want to increase your future income and create a more substantial net worth. It’s all in
your computer brain, and what isn’t there can be added. All you have to do is input it.
It does not matter how old you are or how much education you
have received. Your occupation, the value of your home, and the amount of your yearly income don’t matter either. Anyone can take
the first step down the road to becoming a millionaire. A decade from now you will be ten years older whether or not you decide to
begin inputting your valuable millionaire files. So you might as well start now and celebrate ten years of prosperity instead of ten years of
just growing older.
You might not know it yet, but you have already started the data
input process. The information that you have read in this book is already stored in your brain’s computer. This book and the
accompanying Website, www.onehourhispanicmillionaire.com, will
serve as valuable sources for the right kind of data. There are several charts and graphs throughout the book that you will also be able to
download and print from the Website. The information and tips in this book will help many of you to reach your next financial level.
They will also help guide you to more resources that will help you
reach your goals, regardless of your current income and net worth. The faster you input all of the information, the sooner you will reach
your Millionaire Goal.
Are you a little confused? Do you understand the information
you have read so far? Don’t worry! As you progress through the book, you will accumulate more facts and tips that will bring the entire
process into focus. Here are a few examples of some of the information that you might have plenty of input for and some that
you might need to learn more about:
Real Estate: I’m sure you know what real estate is and you might
even have some rudimentary knowledge of the subject, but you probably have not found the time to input information on how to
acquire real estate and use it to make a profit.
The Internet: Remember when the Internet was new and you
didn’t understand it at all? Perhaps you needed your seven-year-old to explain it to you. Eventually, you figured it out, didn’t you? Well,
learning the process of becoming a millionaire is similar to learning the Internet for the first time. When you have an experienced
teacher, it is easy to learn.
E-mail: When you see the word E-mail, do you think, why can’t
I just use the phone? Well, you probably already know the answer to that. If you don’t stay current and up-to-speed, then you become
obsolete. You must add new and varied data to your life files in order to create a wealth of knowledge and experience.
See how gaining knowledge and staying up to date on a
sometimes dizzying array of changes can help you achieve your goals?
The same principles hold true for your quest to become a millionaire.
Now that you understand how you can input the information and resources you will need to become wealthy, you can begin collecting
data and outputting “I am a millionaire” into the world.
Do you remember the story from the best-selling book
An Acres of Diamonds? It is about a man who owns hundreds of acres of land. He also has a passion for collecting diamonds that ultimately becomes an
obsession. The man begins the search for diamonds in his own country, and soon he is looking for precious gems all over the world.
Eventually, he is forced to sell all his land. The man never finds his
diamonds and dies penniless. Several years later, a very large diamond mine is discovered on the man’s own property. The diamonds were
there all along, right under his feet. The man was so busy searching for riches in other places that he never realized what he already had.
The average Hispanic-American may think that in order to
become wealthy, one must venture far from home. You may believe the town you grew up in is too small to support such big dreams. But
the truth is, potential wealth exists in one’s own backyard. Where is your acre of diamonds? Do you already have the resources that you
would need to attain wealth? How can you tap local resources to reach your goal of becoming a millionaire? It is all within reach if you
develop a plan of action and learn which resources would best meet
your needs.
The Acres of Diamonds checklist (Chart 4-1) shows you the items
you will need to develop your plan of action. You probably own many of them already. Put a check mark next to those
items and focus on the ones that you still need. Don’t worry if you find that the
majority of the items on the list are ones that you don’t have. As you continue to develop your business plan, most of the areas will be
addressed.
The list will grow and change as you work your way through later
chapters in this book and begin putting the tips into practice. All of the charts illustrated in the book can be found on the Website at
www.onehourhispanicmillionaire.com. With your Acres of Diamonds
checklist in hand, you are ready to learn the concepts and strategies you will need to develop your own million-dollar action plan.
Coming
in June 2009
|
