Think and Grow Rich with Napoleon Hill
Review of Napoleon Hill's Book That All Startups Should Read
Why Should All Startups Read Think And Grow Rich?
If you're a startup entrepreneur or investor, you need to read a book called, "Think and Grow Rich" by Napoleon Hill. It's quite a classic, and has sold millions of copies. The reason I'm recommending it is because I love to give out free advise and to help investors in startups like you build great companies.
So what is "Think and Grow Rich?" The book gives financial goals and it sets the boundaries and the future parameters for you as a startup or as an investor that you need to understand. There are six primary points about the book that I want us to study.
Number one is if you want to get rich you've got to think rich and you have to grow that way by fixing the amount. Fixing the amount, in the sense that you want to set up specific financial goals for yourself. You want to make $10 million in 20 years, each year you have to figure out exactly how much it's going to be, you have to make taking out taxes and making investments that will get you there. How many days a week will you have to work? How much money are you setting aside? What are you doing to accomplish that goal?
Having that goal by itself will get you closer to it. So set goals. If you have $10 million in the bank, invested or in the bank or whatever it is within 20 years how are you going to get there? You've got to have a number there. If you think in sort of intangibles, if you think of it in nebulous ways, "Okay I just want to make a lot of money," that's not going to work. You have to have a specific goal in mind from day one.
What are the six main points that Think And Grow Rich teaches its readers?
The second big lesson from the book, "Think and Grow Rich" is what are you going to give up? What are you going to give up in your own personal life? What sort of things are you going to not spend money on? What are going to be your opportunity costs for achieving your financial goals? Write down the ten things that you spend the most money on each month. What if you could trim back two or three of those each month? Let's say that ends up being $2000 per month less that you spend. What's 2,000x12? It's $24,000 dollars multiplied out, invested over ten years. If you were to even invest that in S&P that could be double or triple what it's worth. So that could end up being more 500 thousand to a million dollars just in ten years.
You have to be willing to give something up and that's very hard. Its hard because we are in a consumer society. A society that likes to spend money and run up credit card debt. You've got to be willing to give something up if you want to achieve your financial goals. So write those ten things down that you're spending money on every month and start to give things up to reach your bigger goals.
Third thing is set a date. Set a date for achieving your financial security. There is a difference between financial security and true wealth. Financial security is not having to live paycheck to paycheck. That date should be in 30 days. That should be your goal, 30 days not having to live paycheck to paycheck. Building a business or investing smart where you don't have to live paycheck to paycheck. Achieving true financial security or rather true wealth could take you ten or twenty years, so there is a difference.
First set up your financial security plan. Set up your plan to not have to live paycheck to paycheck because before you start investing you've got to do that. You have to be able to pay your bills, pay off your debts before you start investing. You have to do that or else you will never reach your goal of hitting $10 million in 20 years if you're not financially secure.
The fourth thing is create a plan. What we talked about is part of that plan but having a plan period will help you. I want to draw an analogy here. This is something my father taught me when I was a young boy. He's a doctor that does kidney dialysis and a very successful medical entrepreneur down in Texas.
He said, "Look Ross, if you ever some day gain some weight and you want lose weight here's what I tell my patients. Pick any diet, it could be low carb, low sugar, low sodium, low potassium, low fat, it doesn't matter. No matter what you do you've got to create a plan. You have to pick one of them. Any diet will work because it will create a specific plan for you and it will more or less create discipline in your life." Every single diet works. Some work better than the other but having the plan to do it and picking that plan will get you closer to your financial goals. Remember that analogy as you're building in your own financial security and your own goals in your life.
Number five is be specific about how you will achieve goals. Don't talk theory talk specifics, talk numbers, talk people, talk savings, talk earnings. Specific numbers make a big difference. Don't sell yourself short either. If you expect to make $100,000 a year why don't you try to ask for a $120,000 if you want to reach that. You've have to be specific about how you will achieve those goals and I think that's part of the book is about. It's being as specific as possible. You cannot deal in generalities if you want to achieve your financial dreams.
Number six is read the statement that you created. This plan we've talked about at least two times a day. Read it out loud. It sounds a little weird to hear your own voice sometimes but reading that out that loud will give you some affirmation that you can do it.
What's the main point of "Think and Grow Rich' by Napoleon Hill? The main point I think is to achieve true wealth is to understand that more often than not our motions are what keep us from succeeding. It's our job to come up with a plan to overcome that. I definitely recommend the book and if you like this book, check out our book, "Kings of Aces." It's an excellent book we put a lot of heart and soul into to help make people rich carefully.