Did you know that you could own a beautiful home worth $500,000 for the change you might find under the seat of your car?!
Now, before you get up in arms about me making unrealistic, outlandish financial claims, let me explain:
If you purchase a house for $500,000 with 20% down at a 3.78% interest rate for 30 years, you’re going to pay $1,859.28 a month on your mortgage.
Take $1,859.28 and divide it by the days in a month:
Now, divide by the hours in a day:
Finally, by the seconds in an hour:
If you pay just $0.04 (ONLY FOUR CENTS!) per second for thirty years, you too can own a half-million-dollar house!
Did you see that? I just made a giant sum of money (That’s $669,340.8 after you’re done paying it off in 30 years) look manageable!
I jest, but not without a point. If you can take a large sum of money and make it look minimal and achievable, then you can take a sizable goal and turn it into minute, actionable steps.
How do you make it as simple as it sounds? By using a tool, you’re already employing elsewhere; your habits. By redirecting your patterns and behaviors, you can take small moments and multiply them into considerable successes. Now, you can’t habitually create $0.04 per minute–the money is a product of habits you put in place to generate that income. But you can develop better practices when it comes to employing better behaviors.
“It is better to take many small steps in the right direction than to make a giant leap forward only to stumble back.” Chinese proverb
Let’s consider another example.
Assume you have 50 extra pounds of body fat than you’d like to. If your goal is to “lose weight,” but there isn’t any behavioral change behind it, how are you going to make it happen?
I hear from people all the time that they want to “make more money” or “be a millionaire.” I love goals, but without action, just stating a financial goal is as effective on your bank account as whispering song lyrics in front of American Idol.
So, you want to lose 50 pounds. Great! How do you break that on a time-manageable level? “I’m going to lose 50 pounds in two months!” isn’t very sustainable.
“I’m going to be a millionaire by the end of the year” isn’t achievable from the position of a beginner as, say, “I’m going to earn $40,000 above and beyond what I’m making this year, and will strive for $100,000 the year after.
If you break losing 50lbs down into 50 weeks, that’s a pound a week for a year (if you account that a few weeks won’t result in a loss, no matter how hard you try). If it takes 3,500 calories of intake to make a pound and 3,500 burned calories to lose a pound, then for the seven days of the week, you only need to have a 500 calorie swing. You can burn an extra 250 by riding your bike at a pace of 14-16 mph for 25 minutes AND refrain from eating 1 candy bar OR avoid drinking 1 16 oz bottle of soda.
If you want to make $100,000 in a year, you’re looking at retailing four houses for an average profit of $25,000 a piece. To get four houses under contract, rehabbed, and sold in 12 calendar months, how many offers do you have to make? To make those offers, how many leads do you need to call?
If you need to mail 25 letters a week, divide that by five working days, and you only have five a. What do you suppose would happen to your real estate business after a year if you committed to mailing five letters every day on your lunch break.
You already have habits. I’m not asking you to do more than you’re doing. But, if you take that hour lunch period to mail letters instead of catching up on office gossip or doing a crossword puzzle, and that one act would catapult your business, would you do it? If you could avoid 1 Taco Bell Soft Taco Supreme with gaucamole every day and walk the dog for 30 minutes in the morning to drop that comfort weight that’s crept up on your for two decades, would you do it?
Take your large goals, break them down, and employ manageable steps, you’ll be able to “eat the elephant” one spoonful at a time.
Always Encouraging You;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
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