This content outlines a comprehensive framework of universal laws governing success, achievement, happiness, and wealth creation, emphasizing that understanding and applying these principles can unlock an individual's full potential.
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this is audible the nightingale conant
corporation is pleased to bring you the
universal laws of success and
throughout the ages man has attempted to
make sense of the universe to unravel
mysteries that have challenged his
intellect and seek solutions to
seemingly unsolvable puzzles in looking
for the truth and often questioning it
poets thinkers philosophers and
scientists have immeasurably influenced
our world
their medical breakthroughs scientific
discoveries physical laws and
mathematical principles have imposed
order coherence and clarity to what once
seemed a random indiscriminate and
lawless world
the driving force behind these great
thinkers often was their innate desire
to succeed
to focus their minds on a question and
strive relentlessly till they found the answer
answer
and in their wealth of wisdom we now
find universal principles of personal
success and achievement that we can use
to maximize our own potential
these success principles are as timeless
and immutable as the natural and
physical laws governing the universe
they hold true for everyone who abides
by them and are applicable in almost
every area of life
never before have they all been brought
together as a vital tool for teaching
never before has all this information
been combined to give you a guaranteed
formula for success
until now
brian tracy has devoted almost his
entire life to studying success and
human development
in the past he's researched varied
aspects of human effectiveness and
brought you best selling nightingale
conan audio programs on the psychology
of achievement the science of
self-confidence and how to master your
time to name just a few
and it's his preoccupation with being
and doing just a little bit better that
makes him a living example of the
practical principles he teaches
today as president of brian tracy
learning systems he speaks on a variety
of business and personal development
topics to audiences worldwide he's also
trained key executives of more than 200
corporations in the united states canada
mexico australia and europe
from his diverse background in sales
marketing advertising real estate and
management consulting brian brings a
wealth of practical experience to
everything he talks about
and this combined with his wide research
psychology economics science and the
classics is nowhere more evident than in
the universal laws of success and achievement
achievement
in this program you'll hear about the
success principles that have been the
hallmark of all great achievers brian
calls them the universal laws because
they work for anyone anywhere anytime
and they will work for you
all you need to do is apply them
practice them and follow them
consciously as you set and move toward
your goals
and the results you desire will come to
you business wealth creation happiness
self-fulfillment love and relationships
these are just some of the areas that
you'll be able to improve in your life
as you listen to brian tracy in the
universal laws of success and achievement
achievement [Music]
[Music]
once upon a time and throughout all of
human history it was generally believed
by most of the smartest men who had ever
lived that it was not possible for any
object heavier than air to fly
then a professor at the university of
basel daniel bernoulli laid down a
series of hydrodynamic principles
including his most famous a complex
principle of air resistance which has
come to be known as bernoulli's law
it was the application of bernoulli's
law to aeronautical engineering that led
to the first flight by the wright
brothers at kitty hawk and to the entire
world of modern aviation as we now know
it today
daniel bernoulli didn't invent this law
which is named after him but once he
discovered it and others learned to
apply it man was able to conquer the skies
skies
today planes can fly almost anywhere in
the world at several hundred miles an
hour with a speed and efficiency that
was unimaginable even a hundred years ago
ago
and all because of bernoulli's law
you too can fly
by using the laws and principles of
success and achievement that have been
discovered over the last four thousand years
years
you can reach the heights of your potential
potential
you can travel faster and further toward
the achievement of your dreams and
aspirations than you ever dream possible
when you apply these proven and
practical principles to your life you'll
begin to make progress you may have
never before imagined
when you organize your life so that
everything that you're thinking and
doing is in harmony with the universal
laws that predict and control human
destiny there will be no limitations on
what you can be and have and do
when i was 19 i set out on a lifelong
journey seeking the answers to the question
question
why is it that some people are more
successful than others
i came from a home where we never had
very much money
i didn't finish high school and i worked
at laboring jobs for several years
i washed dishes and dug wells and
carried building materials and
construction sites
i worked in factories and sawmills i
worked as a merchant seaman on a
norwegian freighter and i even worked as
a farm hand during the harvest season
over the years i traveled all over the
world studying different cultures and
philosophies and religions and schools
of thought always i sought for the
answers to that great question
why is it that some people are more
successful than others
as the years passed and my experience
accumulated i began to notice that there
was a certain element of regularity and
predictability in human events
there seemed to be laws and principles
at work in almost everything that happened
happened
i've now studied the subject for more
than 25 years and i've come to the
conclusion that there are universal laws
that anyone can use to dramatically
enhance the quality of his or her life
they're available to you here in this
program and when you apply them you'll
begin to get the things you want in
every area of your life
to state it simply i discovered that the
answer to the question about successful
people is that successful people live
their lives
more in harmony with natural laws than
unsuccessful people do
successful and happy people are those
who consciously or unconsciously
organize their thoughts feelings and
actions in such a way that the powers
available to them as a result of these
laws seem to go to work for them in
their lives they then go on to
accomplish more in a few years than many
people accomplish in a lifetime
and the reason is simple
successful people do more things right
and fewer things wrong
they make the right choices and
decisions and they take the right actions
actions
they channel their mental emotional and
physical energies toward the attainment
of the things that enrich their lives
and they waste very little of their time
going down blind alleys or pursuing
goals that ultimately lead to failure
and frustration and lost months or years
successful people seem to live their
lives more efficiently in moving from
where they are to where they want to go
they seem to get there faster and easier
and achieve greater satisfaction along
the way
unsuccessful people on the other hand
are those who either don't know the
universal laws or who choose to ignore
them in the short term hoping that
they'll be spared the consequences of
their behaviors in the long term
this attitude can lead to
wasted years and unfulfilled lives
whenever you see a person who's not
achieving his or her full potential you
see a violation of universal laws that's
both sad
and unnecessary
universal laws are like physical laws
like the law of gravity
they're called laws because they're
everywhere and always enforced
and ignorance of the law is no excuse
the law of gravity will work on you
whether you step off a 10 story building
in downtown new york or in downtown
london england
you will follow the law of gravity
gaining speed at 32 feet per second as
the law says and you'll go splat on the sidewalk
sidewalk
and it doesn't matter whether you know
about gravity or whether you believe in
gravity or whether anyone told you about
how gravity works or even whether or not
gravity is particularly convenient for
you at that moment
gravity will work on you in any case and
you'll have to suffer the consequences
universal laws are not like man-made
laws either
a man-made law like a traffic law may or
may not be enforced depending upon the circumstances
circumstances
you can break a traffic law and possibly
get away with it at least in the short term
term
universal laws however are different
they work 100 of the time
your job then is to coordinate your
thoughts and actions with them so that
you're living your life in such a way
that the universal laws are working on
your behalf
in this program i'll introduce you to a
series of laws that have been derived
from experience observation and reflection
reflection
i'd like to say that i personally
invented or discovered these laws but
that's not really the case
they've been discovered and rediscovered
throughout all the centuries of recorded time
time
these laws are applicable in a variety
of ways
and to a variety of situations
for instance the same law like the law
of attraction may apply in a slightly
different form to achieving success to
happy relationships and to wealth creation
creation
the laws overlap and intertwine with
each other
sometimes one law will take precedence
over another although none of them will
ever really contradict each other
you'll understand this concept better a
little later in this program
each session in this program explains a
series of laws that apply especially to
the title of the session such as money
and business and selling negotiating
sometimes the laws will appear with more
than one definition and you can apply
them in several areas like the laws of
belief and correspondence
the first law of success is the
granddaddy of all laws and it's what we
refer to as the iron law of human destiny
destiny
it was first articulated by the greek
philosopher socrates more than 400 years
before christ and is sometimes referred
to as the socratic law
we simply call it the law of cause and effect
effect
it's really the law that governs the
universe and all other laws fall under
it and are consistent with it
the law of cause and effect is referred
to in the bible as the law of sowing and reaping
reaping
the scientists sir isaac newton referred
to it as the law of action and reaction
ralph waldo emerson called it the law of
compensation in his famous essay of the
same name
this law says that we live in an orderly
universe in which everything happens for
a reason there are no accidents at least
not in the long term
this law says that for every effect
there's a cause or a series of causes
if there's an effect in your life that
you desire such as success or wealth or
health or happiness you can have it by
simply instituting the causes that have
been proven to generate it
this law also says that if there's an
effect in your life that you don't
particularly want such as unhappiness or
poor health or financial problems or
difficulties with other people you can
trace those effects back to their causes
and by removing the causes you can
eliminate the effect
this law is so simple that it's largely
ignored and so common that the great
majority of people attempt to live their
lives in outright defiance of it even
though they may not be happy with the
effects or results they're getting many
people continue to repeat the same
behaviors that cause the same effects
and then they become angry and
frustrated when nothing changes
in fact
one definition of insanity is continuing
to do the same things but expecting to
get different results
you're surrounded by people who are
getting effects that they don't want and
are simultaneously not getting the
effects that they do want and they
either don't realize or don't care that
the only way to change the effects is to
change the causes
the law of cause and effect is a
wonderful principle for lifelong success
it says that if you can clearly define
the effect you desire all you really
need to do is to find out who else has
achieved the same effect and then copy
that person or persons until you get the
same result
it's no mystery if someone else has done
it you can probably do it as well if you
do the same things in the same way
you see what i found was that the world
is quite neutral about all of this
the world the marketplace and other
people don't really care who or what you
are or where you come from as long as
you institute the proven causes of the
specific effects that you want
it doesn't matter if you're young or old
tall or short black or white male or
female fat or thin
nature plays no favorites as the saying
goes the jungle is neutral
the playing field is level
if you do the same things in the same
way that other successful people have
done and you do them repeatedly you will
eventually get the same results
of course a lot will depend upon how far
back you're starting but that's
something you can always overcome by
time and patience and determination
my friend cop copmeyer who spent more
than 50 years studying success concluded
that one of the most important
discoveries that he ever made was the
necessity of using proven success principles
principles
he said that if you're really serious
about success
learn from the experts
spare no effort or expense to learn from
those who've gone before you
he also said that life is too short for
either you or i to learn it all by ourselves
ourselves
if you can find someone or several
others who've achieved the same result
that you desire
and you learn from them what they did
and you do the same things repeatedly
you'll eventually get the same results yourself
yourself
if you sew the same seeds you'll get the
same harvest if you duplicate the causes
of the effects or results you desire and
you continue to do so in face of the
inevitable discouragement that comes to
all of us
you will eventually get the effects that
you set out for this
this
is the law
and if you live your life in harmony
with it you can eventually attain things
that will amaze almost everyone
including yourself
the starting point of the application of
the law of cause and effect is simply
for you to clearly determine the effects
that you desire
before you can apply the laws of success
you need to think seriously about what
success means to you
because of your unique past experiences
your personality your abilities your
values and your beliefs your hopes and
aspirations only you can define
what success means in your life
success is sometimes defined as getting
what you want
others define success as the freedom to
live your life in your own way without
the interference of anyone else
you may define success as freedom from
worries about material things
someone else may define success in terms
of happy and loving relationships
another may define success in terms of
health and mental and physical well-being
well-being
in any case your first responsibility to
yourself is to sit down and make a list
of all the things that would exist in
your life if you finally achieved all
the success for which you're working
in anything that you want to accomplish
you begin by defining your ideal result
or your future vision for yourself
even the shortest journey begins with
you deciding where it is you want to end up
up
before you begin selecting the causes
you intend to initiate you need to be
extremely clear about the effects that
you wish to realize
a woman who had been through my seminar
on goal setting came to me afterwards
and said that she had decided that her
major goal was to sell a million dollars
worth of real estate and to win a prize
for being one of the top real estate
people of the year
i asked her why she wanted that
particular goal and she told me it was
so that she could make enough money to
get out of real estate completely and
get into something that she really
wanted to do
well she was also unhappy and frustrated
not making very much progress toward her
first goal that of selling a million
dollars worth of real estate
i explained to her that she'd never be
happy or successful doing something that
she didn't enjoy and that perhaps she
should change her direction and begin
doing something immediately that she
really cared about
happily enough she accepted my advice
changed careers and the last time i saw
her she was happier than she had been in years
years
this illustrates one of the most
important applications of this law
it simply says that in order to achieve
certain effects you must first instigate
certain causes
it also says that in order to eliminate
certain effects in your life you must
also eliminate the factors that are
causing them
the most important single application of
the law of cause and effect is this
thoughts are causes and conditions are effects
effects
your thoughts about any subject are the
starting point of everything that
happens to you
the conditions of your life are an
expression of your innermost thoughts
and convictions
if you think a certain thought long
enough and hard enough it becomes a
fixed belief and you'll find yourself
behaving on the outside in a manner
consistent with it
for example if you think about success
all the time and you think about the
various things that you can do to be
more successful in the important areas
of your life
your thoughts will lead you to the
activities that will make that success
much more possible for you
your thoughts are the primary causes of
the conditions of your life
this brings us to the second of the laws
of success and it's called the law of mind
mind
in its simplest form it says that
thoughts objectify themselves
thoughts held in mind produce after
their kind
what you think becomes your reality
earl nightingale in his audio program
the strangest secret says that you become
become
what you think about
ralph waldo emerson summarized this idea
more than a hundred years before by saying
saying
a man becomes what he thinks about most
of the time
the law of mind is extremely powerful
and is in many ways a basic law for
explaining many of the other laws that
refer to mind action
the natural extension of the law of mind
is the third law of success called the
law of mental equivalency
this law says that your primary
responsibility to yourself is to create
a clear and accurate mental equivalent
of what you wish to experience in each
dimension of your external life
if you want to be happy
you need to clearly define for yourself
and create the mental equivalent or
picture of exactly what happiness means
to you
if you wish to enjoy health and long
life or happy relationships or financial
prosperity you need to create in your
mind an exact detailed picture of what
you desire
as a result of a whole series of other
laws that i'll be discussing
this becomes the critical starting point
that begins inevitably to lead you to
the realization of your dreams and goals
the fourth law of success is called the
law of correspondence
this law has been talked about for
perhaps four thousand years and it's one
of the fundamental laws that explains
human experience
it simply says that as within
so without
it says that your outer life will tend
to be a mirror image of your inner life
your external world will tend to
correspond almost exactly to what is
going on inside both your conscious and
subconscious minds
there are four major areas where you see
the law of correspondence working all
the time
the first is simply in your attitude
whatever your attitude is often before
you even say anything people will
reflect it back to you in the way they
talk to you and treat you
as within so without
the second area where the law of
correspondence is evident is in your relationships
relationships
your relationships will almost perfectly
mirror your attitude and your personality
personality
if you're a good and happy person you'll
have good and happy relationships as you
become a more patient and tolerant and
loving person
your relationships will reflect this
almost immediately very much as a mirror
will do
the third area of correspondence that
you see is in your health
much of your health can be directly
traced to specific attitudes that cause
you to suffer from minor and major illnesses
illnesses
the extensive work that's been done in
the area of holistic medicine seems to
suggest that there are corresponding
attitudes of mind for most illnesses
that you or i suffer from the common
cold and flu all the way up to the most
serious illnesses that are often life-threatening
life-threatening
whenever you're anxious or upset or
unhappy for any reason for any period of time
time
your body will begin to reflect those feelings
feelings
the entire basis of psychosomatic
medicine is the conclusion that your
mind psycho makes your body soma
what your mind harbors
your body eventually expresses
the fourth application of the law of
correspondence is that your external
world of material accomplishment will
exactly correspond to your internal
world of preparation
the more knowledge and skill you gain
that helps you to be more effective in
your work the more you will be paid
you can't hope to acquire or achieve
anything more on the outside until
you've acquired it or achieved it on the inside
inside
the law of correspondence reigns supreme
the fifth law of success is the law of
belief which says that whatever you
believe with emotion
becomes your reality you always have a
tendency to act in a manner consistent
with your innermost beliefs and convictions
convictions
your beliefs in fact act like a filter
or a screen that edit out incoming
information and only allows into your
conscious awareness the things that you
already decided are true about yourself
in the world
william james of harvard said belief
creates the actual fact
in the bible it says whatsoever a man
thinketh in his heart
so is he
for example if you absolutely believe
that you are meant to be a great success
in life and that no matter what happens
nothing can stop you from achieving the
greatness that is yours
you'll act in a manner consistent with
that belief and you'll eventually make
it come true
if you doubt your ability to be
successful for any reason
this negative belief will be
demonstrated in your tendency to hold
yourself back the most important part of
the law of belief is the necessity for
you to question your own
self-limiting beliefs
these are the beliefs that act like the
breaks on your potential
these are the nagging doubts and fears
that people have about themselves and
their abilities that cause them to sell
themselves short
when you have self-limiting beliefs you
have a tendency to settle for far less
than you may be capable of
beliefs revolve around your ability to
lose weight or quit smoking or earn a
certain amount of money or be attractive
to members of the opposite sex or
develop new abilities that are more
conducive to your success and happiness
one of the most important steps you can
take toward achieving great success is
for you to question these self-limiting beliefs
beliefs
you might even ask others who know you
well what self-limiting beliefs they
seem to think that you have that may be
holding you back
remember self-limiting beliefs are often
used as excuses
a good way to test your self-limiting
beliefs is to ask yourself whether
anyone else with the limitations you
perceive you have has nonetheless gone
on to achieve success
if anyone else has been able to overcome
the limitations that you think that you
have it means that you can probably
overcome those limitations as well
in fact when you think about it you
realize almost immediately that there
are hundreds perhaps thousands of men
and women who've had it far worse than
you have and have gone on to accomplish
great things despite their limitations
you begin to fly when you begin to let
go of your self-limiting beliefs and
allow your mind and aspirations to rise
the sixth law of success is the law of
values the law of value says that what
you truly value and believe is only and
always expressed in your actions
you can tell the true values of others
by looking at what they do not what they say
say
you can also look at your own actions to
decide what it is that you truly value
remember it's not what you say or hope
or wish or intend that is a true
expression of your values and beliefs
it's only what you do
children are very aware of this and they
ignore the advice of their parents when
their parents say do as i say not as i do
do
the fact is we all seem to know that a
person's actions are the true reflection
of their innermost convictions
there's a great deal of confusion and
unhappiness in the world today because
many people feel that if they say
something emphatically enough or write
about it it means that they truly
believe it but this is false
you only truly believe what you do
your actions do speak far more loudly
than your words for example
if you truly believe in the values of
persistence and dedication it'll be
evident in the things that you do every
single day
if you truly believe in the values of
honesty and integrity and
self-discipline you'll demonstrate these
qualities in your every behavior
in fact you can tell what a person
values by looking at what they did in
the past when the pressure was on
it's only when you're forced to make a
choice that you know what it is you
really value
for example
when you have to choose between family
and work or between money and honesty
your true values come out
the wonderful and important thing about
your values is that you can develop them
in yourself by disciplining yourself to
act consistent with them even if you
haven't yet made them a fixed part of
your character i'll explain this later
in the program
the seventh law of success
is the law of motivation which says that
everything you do is triggered by inner
desires and urges and instincts many of
which may be at an unconscious level and
your attitudes and behaviors will be
determined by your dominant motivations
by what you really want and need in life
not by what you think you want
this is an extension of the law of
values and it's very important for you
to understand
there's a simple formula called the abc
formula of human motivation and human action
action
the abc stands for antecedents
behavior and consequences
the antecedents are the things that
happen before the behavior
the behaviors are the things you do
the consequences are what happens as a
result of your behavior
we know that psychologically only about
fifteen percent of your motivation comes
from the antecedents from what you read
or learn or are told to do or not do
however about 85 percent of your
motivation comes from your expectations
what you think will happen
it's your beliefs about the consequences
about the future that causes you to
behave in a certain way
the clearer you are about the
consequences of your actions and the
more intensely you desire to enjoy the
consequences that your behaviors may
lead to the more motivated you'll be
this is why it's so important to have
absolute clarity with regard to your
goals in each area of your life in order
for you to be motivated to perform at
your very best
an important point with regard to the
abc formula is that your behaviors are
not guaranteed to achieve the
consequences that you desire
but every behavior or action that you
engage in will generate a consequence of
some kind
one of the most important parts of
understanding motivation and behavior is
to realize that both actions and
inactions have consequences
what you do as well as what you fail to
do will have a consequence in your
future and sometimes the consequences
can be dramatic and long-lasting
a good exercise in success is for you to
write out a description of the type of
person that you'd like to be
and the kind of life that you'd like to
be living
the most powerful faculty that you have
is your ability to think
your ability to understand
the more accurately you can think about
who you are and what you want to
accomplish and how to accomplish it the
more effective and successful you will be
be
the eighth law of success is the law of
subconscious activity and it has several applications
applications
the first part of this law is that
whatever thought or idea mixed with
emotion you hold in your conscious mind
will be accepted as a command by your
subconscious mind
this means that whatever thought idea or
goal you can hold in your mind on a
continuing basis you can have because
your subconscious mind will go to work
to organize all of your thoughts and
actions to bring it into your reality
if you desire to earn or attain a
certain amount of money and you think
about it continually day and night and
you use every means possible to drive
this desire or hope deep into your
subconscious mind your subconscious mind
will begin committing more and more of
its reserve capacity toward bringing
that goal or desire into your life
the second part of the law of
subconscious activity is that your
subconscious mind once you give it the
proper commands will trigger your
reticular cortex and its function the
reticular activating system
your reticular cortex is a small finger
like part of your brain that alerts you
to events and circumstances around you
that are consistent with your dominant
desires or concerns
for example if you decided that you
wanted to buy a red sports car
this desire would signal to your
reticular cortex that red sports cars
are now of paramount importance to you
from that moment on you would see red
sports cars everywhere even a block away
you would become extremely alert and
sensitive to red sports cars as well as
to the means of attaining one of them
if one of your goals is to achieve
financial independence and you imbue
this goal with intense desire
your reticular cortex will cause you to
be extremely sensitive to all kinds of
opportunities around you that would help
you to earn more money
you would hear and see things everywhere
that you might have been unaware of completely
completely
in the absence of having established
this goal and planted it in your
subconscious mind
the third part of the law of
subconscious activity is that your
subconscious mind which controls your
autonomic nervous system and all of your
muscles nerves actions and reactions
also controls your body language and
your tone of voice
professor murabian of the university of
california at santa barbara has
concluded that when you communicate with
others fully 55 percent of the message
you send is contained in your body language
language
thirty eight percent of the message you
send is contained in your tone of voice
and only seven percent of the message is
contained in the actual words that you use
use
and your body language and tone of voice
is largely controlled by messages about
yourself and your goals that you've sent
to your subconscious mind as the result
of the way you think and feel
for example when you've had a success of
any kind you send a charge of emotional
energy to your subconscious mind that
tells it that you're a winner
for some time afterwards you walk and
talk and act and think like a winner
your step will be brisker your voice
will be stronger your eyes will be more
focused and your body language will
signify this belief about yourself
your subconscious mind will accept your
predominant emotional thoughts and
organize your entire body voice and tone
to fit a pattern
consistent with it
the ninth law of success is the law of expectations
expectations
it's often called the law of the
self-fulfilling prophecy
it's one of the most powerful of all
laws because of its simplicity and its predictability
predictability
this law simply says that whatever you
expect with confidence will have a
tendency to materialize in your life
you get not what you want but what you
expect with the greatest intensity
for this reason an attitude of positive
self expectancy seems to go hand in hand
with great success in every area of your life
life
the wonderful thing about the law of
expectations is that you have the power
to manufacture your own expectations
you can decide to expect only good
things to happen to you you can walk and
talk and act as though you believe the
entire world was conspiring to help you
to achieve your goals
you can become what w clement stone
often referred to as an
inverse paranoid
you can become convinced that the entire
world is conspiring to do you good
the way that you apply the law of
expectations is by confidently looking
for the good in every person and every situation
situation
when you have a temporary setback you
can look into the setback for the
valuable lesson that it might contain
instead of becoming upset you can say to
yourself something like i believe in the
perfect outcome of every situation in my life
life
this kind of affirmation causes you to
approach everything you do with a more
positive and open and optimistic attitude
attitude
the most powerful of all expectations
are the expectations you have of yourself
yourself
you should approach everything you do
with an attitude of calm
confident self-expectancy you should
expect to be successful more times than
you're unsuccessful
expect to win more times than you lose
and expect to eventually achieve your
goals if you carry on long enough
the tenth law of success which applies
to many other areas of life is called
the law of concentration it says that
whatever you concentrate on and think
about repeatedly with emotion tends to
become more and more a part of your
inner and outer life
some of the most important work in
psychology shows that if you dwell upon
qualities that you wish to develop like
courage and sincerity and persistence
you tend to actually build those
qualities brick by brick into your
character and personality
the law of concentration goes hand in
hand with the law of subconscious
activity and it largely explains the
person that you are today
whatever you've concentrated on in the
past and are concentrating on in the
present is having a major impact on your
conduct and behavior
what you concentrate on largely
determines the quality and quantity of
the results that you get and the success
that you enjoy
the 11th law of success is the law of habit
habit
it says that virtually everything that
you do is automatic and unthinking
you are largely a creature of habit
it says that from the time you get up in
the morning to the time you go to bed at
night you have a tendency to follow the
path of least resistance and to do the
things that you become accustomed to
doing in the past
you eat the same foods for breakfast you
brush your teeth with the same
toothpaste you take the same route to
work you greet people with the same
words you go to lunch at the same time
you work in the same way now there's
nothing wrong with establishing habits
that enable you to simplify your life in
fact your life becomes successful to the
degree to which many of the things you
once needed to concentrate on such as
driving a car have become automatic and unthinking
unthinking
when you make certain things habitual so
they no longer require thought your mind
then becomes free to concentrate on
other things that can be more helpful to
you in achieving the things that you
really want
there's several parts of the law of
habit and the first of these is that
good habits are hard to form but easy to
live with
the second part is that bad habits are
easy to form but hard to live with
one of the hardest of all things to
change are bad habits which are
counterproductive to the goals that you
want to achieve
it's therefore important for you to sit
down and think through the habits that
you have and analyze them carefully
you need to decide whether or not they
are moving you towards your goals or
away from them
remember one of the most important of
all observations on success is that
everything you do either moves you in
one direction or moves you in the other
nothing is neutral
everything counts
if a habit isn't helpful it is hurtful
if a habit is not leading you to success
it's probably
leading you to failure
the way that you overcome bad habits is
simply to override them by the
development of new
more positive habits
for example if you have a golf swing
that's causing your balls to go into the
rough you can override that habitual
swing by taking lessons and learning how
to hit the ball differently
if you have a habit of getting up later
than you should you can override that
habit by repeatedly getting up earlier
until that new behavior becomes the
habit that dominates your thinking and
your actions
by practicing the law of concentration
in conjunction with the law of habit and
thinking continually about how you would
be with a new habit or behavior you
drive this message into your
subconscious mind and you eventually
begin to behave
in a manner consistent with the new
habits you wish to form
this brings us to the twelfth law one of
the most important of all the laws of
success and that is the law of attraction
attraction
the law of attraction says that you are
a living magnet and that you inevitably
attract into your life the people events
and circumstances that harmonize with
your dominant thoughts
this is why we say that whatever you can
hold in your mind on a continuing basis
you can have
whatever thought you hold clearly and
mix with emotion begins setting up a
force field of mental energy that begins
drawing towards you the things that you
need to achieve that goal
this law of attraction has been written
about for hundreds if not thousands of years
years
it's contained in the old folk sayings
like attracts like or like begets like
or you've perhaps heard birds of a
feather flock together
my friend mark victor hansen says that
whatever you want wants you
these are all ways of saying that your
mind is extremely powerful and that
whatever you think emotionalized becomes
a form of energy like a magnet that's
attracting the events and circumstances
you experience into your life
in music the law of attraction is often
referred to as the law of sympathetic resonance
resonance
it explains for example that if you have
two pianos in a large room and you hit
the key of c on one of the pianos and
then walk across the room to the other
piano the c note or string on the second
piano will be vibrating in perfect
harmony or resonance with the c string
on the first piano
one of the most common examples of this
law is when you enter a room full of
people and you almost invariably have a
sympathetic resonance or attraction with
someone else in the room
you'll have a tendency to gravitate
toward a person with whom you are
comfortable and compatible and that
person will have a tendency to gravitate
towards you
very often two single people at a social
gathering will have a level of
sympathetic resonance that draws them
toward each other and into conversation
by the same token when you have a very
clear goal or idea you will attend to
attract people to you
and be attracted to people who have
ideas and information and resources that
can help you to realize that goal
another illustration of the law of
attraction is its opposite which is the
law of repulsion
when you begin to become a particular
kind of person
because of the way you change your
thinking you will find yourself
attracted to people who are similar to
you and you will also find yourself repelling
repelling
and being repelled by people who don't
think the way you do
this law explains why positive people
tend to associate with other positive
people and why negative people tend to
associate with other negative people
and why neither group finds the other
group of very much interest
you can begin to fill your life with the
kind of people that you respect and
admire by simply becoming the kind of
person in your thoughts that will
attract them to you
the 13th law of success is the law of choice
choice
which says that you are always free to
choose the content of your conscious
mind but in so doing you are choosing
every other part of your life
your thoughts control your reality and
since no one else but you can think for
you the thoughts that you choose to
harbor determine everything that happens
in your life
the wonderful thing about the law of
choice is that it says that you have
complete freedom to think and therefore
to be anything that you intensely desire
the choice is always up to you
the law of choice also says that you are
where you are and what you are because
you have chosen to be there
if you you're not happy with where you
are and what you are it's up to you to
choose to be and do something else
the 14th law of success is the law of
optimism which simply says that a
positive mental attitude goes hand in
hand with success and happiness in
virtually every dimension of life
the quality of optimism is the quality
that makes you into a cheerful and
pleasant person a person that other
people like and want to be around and help
help
the most successful men and women tend
to be very likable people
the more optimistic you are the happier
you'll be moment to moment and the more
things you'll be willing to attempt
the 15th law of success the law of
change says simply that
change is inevitable
the only constant we have in life is
that of change
everything is changing even as you
listen to this tape
but the wonderful thing about the law of
change is that nothing is fixed either
all progress requires change and since
change is happening in any case you can
be and have and do anything you want by
simply harnessing the forces of change
and taking advantage of them
the law of change also says that your
life can only get better when you get
better but not until
it says that you can't remain the same
and somehow improve
the law says that if you don't take
advantage of change you will end up
being the victim of change
things will happen over which you have
little or no control and you'll simply
have to go along and adjust your actions
and behaviors to whatever occurs
now let me tell you a story that is true
in more cases than not
once upon a time there was a young man
from an average home with an average
education working at an average job and
who had an average group of friends
like most average young man he was
primarily interested in girls and sports
and television
he liked to have a good time and he
spent most of his money enjoying himself
he looked upon his job as a necessary
evil that paid for his average lifestyle
and like most average people he was
going nowhere with his life
then one day something happened to him
perhaps he read a book that woke him up
or listened to an audio program or
attended a motivational seminar
whatever it was he wasn't the same afterwards
afterwards
he realized that he could choose to do
and be something else
he applied the law of choice
by the law of change he realized that
his life could only improve if he began
changing in a positive direction
using the law of cause and effect he
made some decisions about what he wanted
to accomplish and then began searching
out the causes of the effects he desired
by the law of optimism he was positive
toward himself and his possibilities he
expected good things to happen
triggering the law of expectations
he went to work on his thinking and he
began to dwell the law of concentration
on his ideal lifestyle
by the law of subconscious activity he
began to walk and talk like the person
he envisioned himself becoming
he also began noticing opportunities to
advance himself that he hadn't seen before
before
as he changed his thinking he triggered
the law of mind and the law of mental
equivalency and he created a clear
picture of his goals
by the law of correspondence his outer
world began to reflect his new improved
inner world
his beliefs about himself began to
change and by the law of attraction
people and resources began to appear to
help him move toward his goal
as he concentrated on his desires his
values and motivations changed and he
began developing the kind of habits that
lead to success
in no time at all by bringing his life
into alignment and harmony with the laws
of success he began moving forward at a
rate that surprised even him
and so can you
the laws of success are based on the
foundation principle that in order for
you to succeed you must first decide
what success means to you
you can then begin to apply these laws
to your definition of success
to bring it more rapidly into your reality
reality
there are no limitations on what you can
be or have or do
except the limitations that you place on
your own mind
when you begin to live your life and
guide your thinking consistent with the
laws that we've just described
you'll begin to experience successes
that are beyond anything that you might
have imagined in the past
you can accomplish more in a year or two
than many people accomplish in five or
even 10 years
your future can be unlimited
in the previous session we talked about
the laws of success and how they apply
to your life into everything that you do
in this session i'll be talking about
the laws of achievement and how you can
use them to go further and faster than
perhaps you ever dreamed possible
you might be wondering about the
difference between the two
they sound the same and in many respects
they are in effect they're the flip
sides of the coin success and
achievement they're similar but
different in design and purpose
success can be defined as wanting what
you get
success is not necessarily determined by
material things or accomplishments
you can enjoy success simply by reaching
the point where you are perfectly
content with your life in every respect
and you feel no dissatisfaction or
pressing need for anything else
in this sense you can be a success
sitting by yourself in a quiet place
contemplating the world
achievement is considerably different
achievement refers to getting what you
want rather than wanting what you get
achievement means the ability to set
goals and objectives to make plans of
action and then to implement the plans
and to overcome obstacles and adversity
and achieve the ends that you set for yourself
yourself
the laws of success apply equally well
to achievement but in addition there are
series of laws that are specific to goal attainment
attainment
these are the laws that we'll describe
in this session
the basic rule of human action is that
everything you do is aimed at improving
your life in some way
every action of yours is guided by
purpose and intention of some kind
whether clear or unclear
the remarkable thing about your mind and
your abilities is that you always seem
to achieve the goals that you set for yourself
yourself
if your goal is a small one for example
to get home at night and watch
television you'll certainly achieve it
if your goal is a large one to achieve
financial success prosperity and
prestige among the people you live and
work with
you'll achieve that as well
your mind contains a cybernetic goal
seeking function
once you've programmed an intense desire
into your subconscious mind your
subconscious and your super conscious
minds take on a power of their own which
seems to drive you inevitably toward the
attainment of your ideal
in this sense goal achieving seems to
happen almost automatically
the problem is always the setting of
clear goals and the harnessing of your
mental and physical energy behind those
goals when you learn to do that the rest
seems to happen with an almost
irresistible inevitability
as we said in the first session the
application of these laws begins with
your becoming perfectly clear about your
ideal desired result or purpose
you need to determine where it is you
want to end up
just as you wouldn't go to the grocery
store without a shopping list you
wouldn't think of living your life
without a clear list of the things that
you wish to attain and a written plan of
action for the attainment of each of
those things
unfortunately according to virtually
every study less than three percent of
adult americans have clear written goals
and detailed plans
according to mark mccormick in his book
what they still don't teach you at the
harvard business school
people with written goals accomplish ten
times as much in the same period of time
as those with no written goals at all
in fact you can move yourself into the
top rank of americans living today by
the simple act of sitting down with a
pad of paper and a pen
and writing out where you intend to go
and what you intend to do to get there
over the next three to five years
you will immediately become a different
person and your chances of accomplishing
what you have written down will go up by
about a thousand percent
in my seminars i continually urge people
to write down 10 things that they want
to achieve in the next 12 months
i tell them that if they do this
at the end of 12 months they can reread
the list and they will find that
probably eight of those ten items have
been achieved sometimes in the most
remarkable of ways
i've had countless graduates from my
seminars come back and tell me this is
exactly what happens
for example
an insurance executive from houston took
this recommendation from me at a seminar
on a thursday afternoon
the following sunday he sat down and
made a list of 10 things he wanted to
accomplish within the next 12 months the
following evening monday he opened the
list and found to his astonishment that
he had already accomplished five of his
ten one-year goals
he quickly wrote down five more goals
bringing his list back up to 10 and by
the following thursday evening he had
accomplished five more of the new list
he wrote and told me that he had
achieved more in five days with written
goals than he had expected to accomplish
in an entire 12 months of hard work
aside from clarity regarding your goals
there are 12 laws you need to know and
practice if you really aspire to high achievement
achievement
the first law of achievement and one of
the most important laws that you'll ever
learn is the law of control
the law of control simply says that you
feel positive about yourself to the
degree to which you feel you are in
control of your own life
the importance of control as a critical
element in human personality and
performance has long been recognized by
the psychological profession
the term that psychologists use is locus
of control
the locus or place of control refers to
where you feel the control is in any
particular part of your life
if you feel that you are self-determined
and that you make the decisions that
determine the direction of your
activities you're considered to have an
internal locus of control if you feel
that you are controlled by your boss or
your bills or your childhood experiences
or your health or anything else you're
considered to have an external locus of control
control
now the location of this place of
control in your own mind is the critical
element in health and well-being
people with an internal locus of control
those who feel that they are behind the
wheel of their own lives tend to be low
stress high performance personalities
on the other hand those with an external
locus of control those who feel that
what they're doing is determined by
other people and other pressures
have a high level of stress and a
commensurately low level of performance
the research that's been done in
cognitive psychology the psychology of
how you think and the relationship of
your thinking to your health and
happiness concludes that a sense of
control is absolutely essential for you
to perform at your best
the first part of the law of control is
the same as the law of change which says
that change is inevitable
change is also scary for most people and
there's a deep rooted desire on the part
of the majority of human beings to avoid
change of any kind even positive change
however goals allow you to control the
direction of change and to assure that
it is predominantly in the direction
that you desire
goals give you control over the critical
elements of your life
without goals you are really driving
down the highway of life with your hands
off the wheel
the second part of the law of control is
that controlled change tends to lead
inevitably to greater achievement than
uncontrolled change
the habit of working toward the
accomplishment of important goals on a
daily basis will assure that you'll
achieve at a far higher level than if
you had no goals at all
this is of course obvious
the third part of the law is that to
take control of your life you must begin
by taking control of your mind
your ability to think the thoughts you
want and to determine the goals and
ideal results you desire is the starting
point of all happiness and high attainment
attainment
many people believe that life is a
series of random occurrences and that
things just happen by accident
they don't realize that by failing to
plan they're planning to fail
nobody actually plans to live a life of
underachievement and frustration but by
failing to decide specifically what they
want they end up living unconsciously
and unintentionally and what happens to
them in life will appear to be a series
of random occurrences over which they
have little control
people who believe they have little
control over their lives say things like
you can't fight city hall or they say
it's not what you know it's who you know
or sometimes they say it's being in the
right place at the right time
many of these people believe that
success is largely due to luck and to
contacts and has very little to do with themselves
themselves
to show how prevalent this attitude is
in a recent survey 63 percent of adult
americans revealed that they believe
that the only way they were going to
achieve financial independence was if
they won a lottery of some kind
this means that the great majority of
people think that their lives are simply
one big crapshoot over which they can exert
exert
very little control
they are living by failing to plan
and they're planning to fail
people who live by this philosophy which
is in violation of and contrary to the
law of cause and effect and the law of control
control
have a perceived lack of control and
therefore they experience negativity
pessimism helplessness and a feeling of
being a victim in the great game of life
people who are failing to plan their
lives have a tendency to blame others
for their problems to continually make
excuses to perform well below their
potentials and to indulge in forms of
escapism such as endless television
watching or alcohol or drugs and aimless socializing
socializing
they really don't feel that they can
make much of a difference
the wonderful thing about goals is that
the very act of setting goals enables
you to escape from the clutches of
randomness and put yourself squarely
under the law of control
and cause an effect
the setting of goals gives you a feeling
of power purpose and forward direction
it puts you in charge of your life and
makes you feel terrific about yourself
this is why we call goal setting the
master skill of success
it's the skill that is more important to your overall happiness and well-being
your overall happiness and well-being than any other single skill that you can
than any other single skill that you can develop
develop the second law of achievement which is
the second law of achievement which is essential for you to understand is the
essential for you to understand is the law of responsibility
law of responsibility this law says that you are completely
this law says that you are completely responsible for everything you are and
responsible for everything you are and have and everything you become and
have and everything you become and achieve
achieve the concept of individual responsibility
the concept of individual responsibility is a major issue in life and society
is a major issue in life and society today
today there are basically two schools of
there are basically two schools of thought on this issue
thought on this issue one school believes that no one is
one school believes that no one is really responsible and that the
really responsible and that the government or society is to blame for
government or society is to blame for anything unfortunate that happens to
anything unfortunate that happens to anyone
anyone the other school of thought says that in
the other school of thought says that in a society of individual freedom
a society of individual freedom individual responsibility is essential
individual responsibility is essential and unavoidable and that people are
and unavoidable and that people are responsible for the consequences of the
responsible for the consequences of the things they do
things they do and for the things that they neglect to
and for the things that they neglect to do
do the fact about responsibility is that
the fact about responsibility is that it's not optional it's mandatory
it's not optional it's mandatory no further progress in your life is
no further progress in your life is possible except to the degree to which
possible except to the degree to which you assert a higher level of
you assert a higher level of responsibility in that area
responsibility in that area no one else can or will do it for you
no one else can or will do it for you and the perverse thing about
and the perverse thing about responsibility is that the more that you
responsibility is that the more that you accept the more people want to help you
accept the more people want to help you and the less of it that you accept the
and the less of it that you accept the less people will want to have anything
less people will want to have anything to do with you
to do with you the first part of the law of
the first part of the law of responsibility is that since you are
responsibility is that since you are always free to choose what you think and
always free to choose what you think and what you do
what you do you are where you are and or what you
you are where you are and or what you are because of your own conduct and your
are because of your own conduct and your own behavior
own behavior because you have complete freedom of
because you have complete freedom of choice and you can do and say anything
choice and you can do and say anything you want
you want you can never evade complete
you can never evade complete responsibility for the things that you
responsibility for the things that you do or fail to do
do or fail to do the second part of this law is that
the second part of this law is that responsibility begins with your taking
responsibility begins with your taking full and complete control over the
full and complete control over the content of your conscious mind and your
content of your conscious mind and your dominant thoughts
dominant thoughts as i said in the first session it's what
as i said in the first session it's what you think that determines your reality
you think that determines your reality and since only you can control what you
and since only you can control what you think the very act of seizing control of
think the very act of seizing control of your thoughts and keeping them on what
your thoughts and keeping them on what you want and off of what you don't want
you want and off of what you don't want is the beginning of self-mastery
is the beginning of self-mastery self-control and self-responsibility
self-control and self-responsibility the third part of the law of
the third part of the law of responsibility is simply that
responsibility is simply that no one is coming to the rescue
no one is coming to the rescue if it's to be it's up to you
if it's to be it's up to you if anything's going to get better in
if anything's going to get better in your life it is only because you get
your life it is only because you get better
better if anything's going to change it's only
if anything's going to change it's only because you change
because you change if things are going to improve it is
if things are going to improve it is because
because you improve
you improve a wonderful thing about the acceptance
a wonderful thing about the acceptance of complete responsibility for who you
of complete responsibility for who you are and everything you become is that it
are and everything you become is that it gives you a tremendous sense of control
gives you a tremendous sense of control and freedom
and freedom it makes you feel positive and happy
it makes you feel positive and happy about yourself
about yourself it puts you under the high road to
it puts you under the high road to effective achievement
effective achievement it enables you to put your foot on the
it enables you to put your foot on the accelerator of your own potential and to
accelerator of your own potential and to move more rapidly toward the
move more rapidly toward the accomplishment of the things that are
accomplishment of the things that are important to you
important to you this brings us now to the necessity of
this brings us now to the necessity of your deciding exactly what it is that
your deciding exactly what it is that you want in life
you want in life here are some simple exercises that you
here are some simple exercises that you can follow
can follow your first job is to make a dream list
your first job is to make a dream list this is a list of everything that you
this is a list of everything that you could ever want to have or be or do
could ever want to have or be or do written as though you have no
written as though you have no limitations whatsoever on your potential
limitations whatsoever on your potential imagine for the moment that you have no
imagine for the moment that you have no limitations with regard to your ability
limitations with regard to your ability or your education
or your education imagine you have no limitations with
imagine you have no limitations with regard to resources or contacts
regard to resources or contacts imagine that you have no limitations
imagine that you have no limitations with regard to your intelligence or
with regard to your intelligence or skills or abilities imagine that you
skills or abilities imagine that you have no limitations with regard to time
have no limitations with regard to time or money or other constraints
or money or other constraints just let your mind run freely and for a
just let your mind run freely and for a few minutes write down everything that
few minutes write down everything that you could think of that you would like
you could think of that you would like to accomplish in the next one two three
to accomplish in the next one two three five
five ten years or beyond
ten years or beyond the key is for you not to allow yourself
the key is for you not to allow yourself limiting beliefs and fears and doubts to
limiting beliefs and fears and doubts to creep in and sabotage this exercise
creep in and sabotage this exercise the natural tendency of the poor
the natural tendency of the poor performer is to always be thinking about
performer is to always be thinking about the reason why things are not possible
the reason why things are not possible rather than defining clearly what he or
rather than defining clearly what he or she wants in advance of taking those
she wants in advance of taking those limitations into consideration
limitations into consideration some people will come up with a list of
some people will come up with a list of five or ten things they want others will
five or ten things they want others will come up with a list of 200 or 300 items
come up with a list of 200 or 300 items that they want to accomplish
that they want to accomplish one very successful real estate broker a
one very successful real estate broker a friend of mine started off in real
friend of mine started off in real estate by writing down everything he
estate by writing down everything he could possibly want in a spiral notebook
could possibly want in a spiral notebook over time he filled many pages with
over time he filled many pages with hundreds of small and large goals
hundreds of small and large goals eventually he became extraordinarily
eventually he became extraordinarily successful in real estate and made an
successful in real estate and made an enormous amount of money with which he
enormous amount of money with which he was able to achieve most of the goals
was able to achieve most of the goals he'd written down
he'd written down as tom hopkins says
as tom hopkins says goals are the fuel in the furnace of
goals are the fuel in the furnace of achievement
achievement this goes back to the law of motivation
this goes back to the law of motivation which says that in order for there to be
which says that in order for there to be motivation there must be a motive
motivation there must be a motive it takes us back to the fact that 85
it takes us back to the fact that 85 percent of your motivation is determined
percent of your motivation is determined by the consequences that you anticipate
by the consequences that you anticipate or the things that you hope to achieve
or the things that you hope to achieve as a result of engaging in certain
as a result of engaging in certain actions and certain behaviors
actions and certain behaviors the clearer you are about what you want
the clearer you are about what you want and the more things that you want the
and the more things that you want the more motivated and energetic you'll be
more motivated and energetic you'll be in obtaining those goals
in obtaining those goals once you've written down everything you
once you've written down everything you can think of that you want for any
can think of that you want for any reason set priorities on your goals
reason set priorities on your goals go back over the list and write down
go back over the list and write down either an a
either an a a b or a c next to each item
a b or a c next to each item next to the items that are most
next to the items that are most important to you the ones that can make
important to you the ones that can make the greatest difference in your life in
the greatest difference in your life in which you desire most intensely
which you desire most intensely write the letter a
write the letter a next to the things that you would really
next to the things that you would really like to have but which are not as
like to have but which are not as important or as life-changing as the
important or as life-changing as the first category
first category you write the letter b
you write the letter b next to each of the remaining items
next to each of the remaining items things that you wrote down that would be
things that you wrote down that would be nice for you to accomplish but which you
nice for you to accomplish but which you don't care about passionately
don't care about passionately write the letter c
write the letter c the second part of this exercise is for
the second part of this exercise is for you to transfer all of your a goals to a
you to transfer all of your a goals to a separate sheet of paper
separate sheet of paper once you've done this go back over these
once you've done this go back over these goals and organize them by writing
goals and organize them by writing a1 next to the most important goal
a1 next to the most important goal a2 next to the second most important
a2 next to the second most important goal
goal a3 next to the third most important goal
a3 next to the third most important goal and so on until you've organized all of
and so on until you've organized all of your a goals in order of importance to
your a goals in order of importance to you
you your a1 goal should be your major
your a1 goal should be your major definite purpose the most important
definite purpose the most important single goal in your life
single goal in your life all really successful men and women have
all really successful men and women have goals in each important part of their
goals in each important part of their lives but also they have one goal which
lives but also they have one goal which is their umbrella goal the single most
is their umbrella goal the single most important thing they are working on at
important thing they are working on at any given time
any given time in looking at your goals it's advisable
in looking at your goals it's advisable for you to divide them into three
for you to divide them into three categories as well
categories as well the first category is your personal and
the first category is your personal and family goals
family goals these are the reasons why you're doing
these are the reasons why you're doing what you're doing
what you're doing it's very important for you to be
it's very important for you to be crystal clear about the underlying
crystal clear about the underlying reasons why you want the material
reasons why you want the material intangible goals that you're working for
intangible goals that you're working for many people get sidetracked working for
many people get sidetracked working for material things and lose all sight of
material things and lose all sight of the reasons why they're doing it
the reasons why they're doing it your second set of goals are your career
your second set of goals are your career and your material goals these are the
and your material goals these are the what of your goal list
what of your goal list these are the things that you have to do
these are the things that you have to do in order to get to the why
in order to get to the why the what or business and financial goals
the what or business and financial goals on your list will be things like career
on your list will be things like career achievements amounts of financial income
achievements amounts of financial income quantities of sales or profits they're
quantities of sales or profits they're the money and the things of your life
the money and the things of your life your third type of goals are your
your third type of goals are your personal development goals
personal development goals these are the how goals
these are the how goals these are the things that you must do or
these are the things that you must do or become competent at doing in order to
become competent at doing in order to achieve the material goals which will
achieve the material goals which will lead you to the accomplishment of your
lead you to the accomplishment of your personal and family goals
personal and family goals and you need to have a set of goals in
and you need to have a set of goals in each of these areas for your life to be
each of these areas for your life to be in balance and for you to perform at
in balance and for you to perform at your very best
your very best once you've taken your original list of
once you've taken your original list of goals and broken it down by a's b's and
goals and broken it down by a's b's and c's
c's and then transferred your a's onto a
and then transferred your a's onto a single page and organized them in order
single page and organized them in order of priority you're now ready to begin
of priority you're now ready to begin the planning stage
the planning stage in the planning stage you take a clean
in the planning stage you take a clean sheet of paper and you write your a1
sheet of paper and you write your a1 goal at the top of the page in the
goal at the top of the page in the present tense as though it were already
present tense as though it were already a reality
a reality for example you could write i earn 50
for example you could write i earn 50 000 per year
000 per year now
now you use what we call the 20 idea method
you use what we call the 20 idea method and write down a list of 20 things that
and write down a list of 20 things that you could do that would help you move
you could do that would help you move toward the attainment of that goal write
toward the attainment of that goal write down everything you can think of for
down everything you can think of for example you could write down
example you could write down i could work harder and smarter in my
i could work harder and smarter in my current field and increase my
current field and increase my productivity and income
productivity and income you could also write down
you could also write down i could upgrade my skills so that the
i could upgrade my skills so that the value of my work was higher in the same
value of my work was higher in the same period of time
period of time or you could write something completely
or you could write something completely different such as
different such as i could change my career or company
i could change my career or company completely and start at a different job
completely and start at a different job or in a different industry in any case
or in a different industry in any case write down at least 20 activities that
write down at least 20 activities that you could engage in to help you to
you could engage in to help you to achieve your goals
achieve your goals once you've done that do the same thing
once you've done that do the same thing for each of your other a goals so that
for each of your other a goals so that you have a series of a goals with a list
you have a series of a goals with a list of 20 activities or more that you could
of 20 activities or more that you could engage in to accomplish each one
engage in to accomplish each one then you sit down with your first list
then you sit down with your first list of 20 items under your a1 most important
of 20 items under your a1 most important goal and you organize those items by
goal and you organize those items by time and priority
time and priority which are the things which you can do or
which are the things which you can do or should do or begin first
should do or begin first what are the things that are most
what are the things that are most important and would make the greatest
important and would make the greatest difference to the attainment of the goal
difference to the attainment of the goal write down an a or a b or a c next to
write down an a or a b or a c next to each of the 20 items and then write down
each of the 20 items and then write down a1
a1 a2 a3
a2 a3 b1 b2 b3 and so on next to the items so
b1 b2 b3 and so on next to the items so that you have organized them from
that you have organized them from beginning to end
beginning to end you now have a list of your most
you now have a list of your most important goals organized by priority
important goals organized by priority and a list of the activities you must
and a list of the activities you must engage in to achieve those goals
engage in to achieve those goals also organized by priority
also organized by priority your final exercise is to merge your
your final exercise is to merge your major goals and your major activities
major goals and your major activities into a single plan and then to begin to
into a single plan and then to begin to organize your day-to-day life around
organize your day-to-day life around that plan
that plan it's important that you review this plan
it's important that you review this plan on a regular basis one of the most
on a regular basis one of the most motivational things that you can do is
motivational things that you can do is to make a resolution to do something
to make a resolution to do something every day to move yourself toward the
every day to move yourself toward the attainment of one of your most important
attainment of one of your most important goals
goals this will help you to develop and
this will help you to develop and maintain momentum and you'll be
maintain momentum and you'll be astonished at how rapidly you begin to
astonished at how rapidly you begin to make progress on even the largest and
make progress on even the largest and most challenging goals that you can
most challenging goals that you can think of using this method
think of using this method once you've made a list of your goals
once you've made a list of your goals the third law of achievement is the law
the third law of achievement is the law of compensation
of compensation this law says that you are always fully
this law says that you are always fully compensated for whatever you do
compensated for whatever you do it's often called the law of reciprocity
it's often called the law of reciprocity which says that people will always
which says that people will always reciprocate in kind for whatever you do
reciprocate in kind for whatever you do either to or for them
either to or for them my friend zig zigler the great speaker
my friend zig zigler the great speaker and motivator has formulated what we
and motivator has formulated what we might call ziggler's law which is a
might call ziggler's law which is a paraphrase of the law of compensation
paraphrase of the law of compensation and it says
and it says you can have anything you want in life
you can have anything you want in life if you just help enough other people get
if you just help enough other people get what they want
what they want the law of compensation is a sub law of
the law of compensation is a sub law of the law of cause and effect or the law
the law of cause and effect or the law of sowing and reaping which says
of sowing and reaping which says whatsoever a man soweth that also shall
whatsoever a man soweth that also shall he reap
he reap basically the law of compensation says
basically the law of compensation says that whatever you put in you get out
that whatever you put in you get out you cannot reap it unless you have sown
you cannot reap it unless you have sown it in advance in fact you can say that
it in advance in fact you can say that whatever you're reaping today is a
whatever you're reaping today is a measure of what you've sown in the past
measure of what you've sown in the past if you want to reap something more in
if you want to reap something more in the future you have to sew something
the future you have to sew something more or different or better in the
more or different or better in the present
present it's completely up to you
it's completely up to you in ralph wallow emerson's wonderful
in ralph wallow emerson's wonderful essay compensation which is one of the
essay compensation which is one of the finest pieces of writing in the english
finest pieces of writing in the english language he says that the longer you put
language he says that the longer you put in without getting out
in without getting out the greater will be your return when it
the greater will be your return when it finally comes
finally comes some years ago the kingston trio had a
some years ago the kingston trio had a song with a line that said you've got to
song with a line that said you've got to prime the pump you must have faith and
prime the pump you must have faith and believe you've got to give up yourself
believe you've got to give up yourself before you're willing to receive
before you're willing to receive this law or principle runs throughout
this law or principle runs throughout all of human history and is virtually
all of human history and is virtually inviolate
inviolate this leads us to the fourth law of
this leads us to the fourth law of achievement the law of service which
achievement the law of service which says that your rewards in life will
says that your rewards in life will always be in direct proportion to the
always be in direct proportion to the value of your service to others
value of your service to others the first part of this law is that all
the first part of this law is that all fortunes begin with the sale of personal
fortunes begin with the sale of personal services
services the second part of this law is that if
the second part of this law is that if you wish to increase the size of your
you wish to increase the size of your rewards you must increase the quality
rewards you must increase the quality and quantity of your service
and quantity of your service and the third part of the law of service
and the third part of the law of service is
is everyone works on commission
everyone works on commission tom peters in his book in search of
tom peters in his book in search of excellence says that the top managers in
excellence says that the top managers in the leading companies all seem to have
the leading companies all seem to have an obsession with customer service the
an obsession with customer service the most successful men and women in our
most successful men and women in our society are those who are able to lose
society are those who are able to lose themselves in serving the people who
themselves in serving the people who depend upon them their customers their
depend upon them their customers their employers and others when you combine
employers and others when you combine the laws of compensation and of service
the laws of compensation and of service you have the key to obtaining anything
you have the key to obtaining anything that you really want
that you really want you'll get out exactly what you put in
you'll get out exactly what you put in and wonderfully enough you have complete
and wonderfully enough you have complete control over what you put in
control over what you put in when you devote yourself completely to
when you devote yourself completely to serving your customers your boss your
serving your customers your boss your staff the people who purchase or use
staff the people who purchase or use your products and services it gives you
your products and services it gives you a tremendous feeling of meaning and
a tremendous feeling of meaning and purpose it causes you to feel that you
purpose it causes you to feel that you are really making a difference in the
are really making a difference in the world
world in his book the achievers by alan cox he
in his book the achievers by alan cox he says that the most successful people in
says that the most successful people in any corporation are those who are able
any corporation are those who are able to lose themselves in their jobs and in
to lose themselves in their jobs and in serving their customers
serving their customers when you start to throw your whole heart
when you start to throw your whole heart into making your customers happy and
into making your customers happy and serving them better than anyone else
serving them better than anyone else you'll be putting both your career and
you'll be putting both your career and your financial life under the fast track
one of the keys to mental and emotional well-being is for you to know that
well-being is for you to know that you're working at the outside limit of
you're working at the outside limit of your potential
your potential you need to feel that you're stretching
you need to feel that you're stretching yourself fully and that you're putting
yourself fully and that you're putting your whole heart into what you're doing
your whole heart into what you're doing the fifth law of achievement is the law
the fifth law of achievement is the law of applied effort
of applied effort this law simply says that all things are
this law simply says that all things are amenable to hard work
amenable to hard work there's nothing that will bring you to
there's nothing that will bring you to the attention of your superiors faster
the attention of your superiors faster than you're developing a reputation for
than you're developing a reputation for being a hard worker
being a hard worker people who are in a position to help you
people who are in a position to help you and accelerate your career will tend to
and accelerate your career will tend to be very impressed by your willingness to
be very impressed by your willingness to work harder and longer than anyone else
work harder and longer than anyone else in dr thomas stanley's study of affluent
in dr thomas stanley's study of affluent americans almost every one of the
americans almost every one of the self-made millionaires he interviewed
self-made millionaires he interviewed told him that their success was due more
told him that their success was due more to hard work than to any other factor
to hard work than to any other factor in america you work 40 hours per week
in america you work 40 hours per week for survival
for survival if all you work is 40 hours
if all you work is 40 hours all you get is enough money to survive
all you get is enough money to survive you tread water and you basically stay
you tread water and you basically stay even
even but you don't get very far ahead and you
but you don't get very far ahead and you never achieve the kind of success is
never achieve the kind of success is possible for you
possible for you however every hour over 40 hours that
however every hour over 40 hours that you put in either on your job or on
you put in either on your job or on yourself improving your knowledge and
yourself improving your knowledge and skills is an investment in your success
skills is an investment in your success you can tell where you're going to be in
you can tell where you're going to be in three to five years with unerring
three to five years with unerring accuracy by simply looking at the number
accuracy by simply looking at the number of hours over forty that you're working
of hours over forty that you're working each week
each week the average work week for both
the average work week for both executives and small business owners in
executives and small business owners in america is approximately 58 to 59 hours
america is approximately 58 to 59 hours many successful men and women find
many successful men and women find themselves working 70 and even 80 hours
themselves working 70 and even 80 hours a week during the critical formative
a week during the critical formative stages of their careers
stages of their careers in addition to the law of applied effort
in addition to the law of applied effort is that all great success is preceded by
is that all great success is preceded by a long period of hard hard work in a
a long period of hard hard work in a single direction toward a clearly
single direction toward a clearly defined purpose
defined purpose you need to continually ask yourself
you need to continually ask yourself what am i trying to do and
what am i trying to do and how am i trying to do it
how am i trying to do it it's not enough just to work hard or to
it's not enough just to work hard or to work long hours you must be working on
work long hours you must be working on high value added tasks and activities
high value added tasks and activities toward the accomplishment of meaningful
toward the accomplishment of meaningful and important goals
and important goals a second part of this law is that the
a second part of this law is that the harder you work the luckier you get
harder you work the luckier you get it seems that your ability to work hard
it seems that your ability to work hard hard hard will open up the red sea of
hard hard will open up the red sea of opportunity for you and will bring to
opportunity for you and will bring to your assistance all manner of people and
your assistance all manner of people and resources that you could not have
resources that you could not have imagined would come your way
imagined would come your way the third part of the law of applied
the third part of the law of applied effort is that to achieve more than the
effort is that to achieve more than the average you must work longer and harder
average you must work longer and harder than the average
than the average this is simply a way of restating the
this is simply a way of restating the fact that you can only take more out of
fact that you can only take more out of life if you're putting more into life
life if you're putting more into life and the more you put in the more you'll
and the more you put in the more you'll get out
get out the law of cause and effect is absolute
the law of cause and effect is absolute you will invariably reap what you sow
you will invariably reap what you sow and if you sow more you'll eventually
and if you sow more you'll eventually reap more
reap more the sixth law of achievement is the law
the sixth law of achievement is the law of over compensation
of over compensation this is a companion law to the law of
this is a companion law to the law of applied effort and it simply says that
applied effort and it simply says that you must be continually looking for
you must be continually looking for opportunities to go beyond the
opportunities to go beyond the requirements of your job
requirements of your job napoleon hill perhaps the foremost
napoleon hill perhaps the foremost researcher on success in the first half
researcher on success in the first half of the 20th century concluded that one
of the 20th century concluded that one of the keys to great success in america
of the keys to great success in america was the willingness to
was the willingness to go the extra mile
go the extra mile he wrote that because of this principle
he wrote that because of this principle your future potential is unlimited
your future potential is unlimited because there's no restriction
because there's no restriction whatsoever on the extra things that you
whatsoever on the extra things that you can do
can do to add greater value to your work
to add greater value to your work you can go the extra mile in everything
you can go the extra mile in everything that you do every day and in every way
that you do every day and in every way you can always be looking for
you can always be looking for opportunities to exceed expectations
opportunities to exceed expectations earl nightingale advised that you should
earl nightingale advised that you should always put in more than you take out or
always put in more than you take out or you'll never take out more than you're
you'll never take out more than you're getting right now
getting right now the only way that you can be paid more
the only way that you can be paid more is by putting greater value into your
is by putting greater value into your work and achieving greater results
work and achieving greater results another way of stating the law of
another way of stating the law of overcompensation
overcompensation is that you must always do more than
is that you must always do more than you're paid for if you ever want to be
you're paid for if you ever want to be paid for more than you're doing
paid for more than you're doing a young woman who is working as a
a young woman who is working as a secretary for a large company in florida
secretary for a large company in florida came to me at a seminar recently and
came to me at a seminar recently and told me her story
told me her story she said that she listened to one of my
she said that she listened to one of my audio tapes and as a result she had set
audio tapes and as a result she had set a goal to increase her income by 50
a goal to increase her income by 50 percent
percent in her heart she said she didn't really
in her heart she said she didn't really believe it was possible because of the
believe it was possible because of the salary structure in her company
salary structure in her company nonetheless she went to work to increase
nonetheless she went to work to increase the value of her service to her boss
the value of her service to her boss she applied the law of overcompensation
she applied the law of overcompensation to everything she did
to everything she did she learned how to do new things and she
she learned how to do new things and she began a little earlier and stayed a
began a little earlier and stayed a little later to make a long story short
little later to make a long story short within six months her boss had quietly
within six months her boss had quietly raised her salary in stages from 1500
raised her salary in stages from 1500 per month to
per month to 22.50 per month and had given her these
22.50 per month and had given her these increases without her ever having asked
increases without her ever having asked for them
for them all she did was to concentrate on
all she did was to concentrate on seeking out ways to work harder and
seeking out ways to work harder and smarter and to serve her boss better
smarter and to serve her boss better with the things he needed
with the things he needed he automatically increased her pay
he automatically increased her pay because he recognized how much she had
because he recognized how much she had increased her value to him
increased her value to him the remarkable thing is this
the remarkable thing is this she worked up to the age of 25 to get
she worked up to the age of 25 to get her salary up to fifteen hundred dollars
her salary up to fifteen hundred dollars per month
per month in just six months however by applying
in just six months however by applying these principles she increased her
these principles she increased her salary by 50 percent
salary by 50 percent and so can you
and so can you it is simply a matter of applying these
it is simply a matter of applying these laws to your work on a daily basis
laws to your work on a daily basis the seventh law of achievement is the
the seventh law of achievement is the law of preparation which says that
law of preparation which says that perfect performance is preceded by
perfect performance is preceded by painstaking preparation
painstaking preparation the mark of the serious person and the
the mark of the serious person and the real professional in any field is that
real professional in any field is that he takes more time to prepare thoroughly
he takes more time to prepare thoroughly than the average person does
than the average person does the non-serious person or the
the non-serious person or the non-professional always attempts to
non-professional always attempts to bluff or to wing it
bluff or to wing it he tries to get by with the minimum of
he tries to get by with the minimum of preparation without realizing that his
preparation without realizing that his level of preparation is immediately
level of preparation is immediately evident to everyone around him
evident to everyone around him one of my favorite quotes which has had
one of my favorite quotes which has had a powerful effect in shaping my life and
a powerful effect in shaping my life and attitude comes from abraham lincoln who
attitude comes from abraham lincoln who said i shall study and prepare myself
said i shall study and prepare myself and someday my chance will come
and someday my chance will come he recognized as do all great men and
he recognized as do all great men and women that painstaking and thorough
women that painstaking and thorough preparation
preparation is the key to the future
is the key to the future the first part of the law of preparation
the first part of the law of preparation is simply
is simply do your homework it's the details that
do your homework it's the details that trip you up every single time
trip you up every single time my friend joel weldon gave a wonderful
my friend joel weldon gave a wonderful talk a few years ago entitled elephants
talk a few years ago entitled elephants don't bite
don't bite the essence of his talk was that it was
the essence of his talk was that it was the mosquitoes of life the small things
the mosquitoes of life the small things that tend to be ignored that cause you
that tend to be ignored that cause you the most trouble
the most trouble no one ever gets bitten by an elephant
no one ever gets bitten by an elephant but people get bitten by mosquitoes all
but people get bitten by mosquitoes all the time
the time his message was that if you want to get
his message was that if you want to get to the top of your field you must be
to the top of your field you must be fastidious about the little things
fastidious about the little things because
because as a minister once said
as a minister once said god is in the details
god is in the details the second part of the law of
the second part of the law of preparation comes from the business
preparation comes from the business writer peter drucker who wrote that
writer peter drucker who wrote that action without thinking is the cause of
action without thinking is the cause of every failure
every failure action without taking the time to think
action without taking the time to think through the details in their possible
through the details in their possible ramifications seems to be the underlying
ramifications seems to be the underlying cause of most failure in life
cause of most failure in life the opposite of this statement is that
the opposite of this statement is that action preceded by thinking and planning
action preceded by thinking and planning is the cause of virtually every success
is the cause of virtually every success this doesn't mean that you'll
this doesn't mean that you'll automatically be successful if you plan
automatically be successful if you plan thoroughly in advance but it means that
thoroughly in advance but it means that you must almost inevitably fail
you must almost inevitably fail if you don't do it
if you don't do it the third part of this law comes from
the third part of this law comes from benjamin trigo who said that if it's not
benjamin trigo who said that if it's not worth doing it's not worth doing well
worth doing it's not worth doing well details are important it's true but you
details are important it's true but you need to think through the value and
need to think through the value and importance of each detail before you
importance of each detail before you over commit your time and your resources
over commit your time and your resources to them
to them the eighth law of achievement is the law
the eighth law of achievement is the law of forced efficiency
of forced efficiency this law states that the more things you
this law states that the more things you have to do in a limited space of time
have to do in a limited space of time the more you will be forced to work on
the more you will be forced to work on your most important tasks
your most important tasks this is another way of saying that
this is another way of saying that there's never enough time to do
there's never enough time to do everything but there's always enough
everything but there's always enough time to do the important things
time to do the important things the more you take on the more likely it
the more you take on the more likely it is that you'll be forced to think
is that you'll be forced to think analyze and evaluate your tasks and
analyze and evaluate your tasks and activities in such a way that you spend
activities in such a way that you spend your limited mental and physical energy
your limited mental and physical energy on just those tasks that are the most
on just those tasks that are the most vital to your success
vital to your success there are two parts of the law of forced
there are two parts of the law of forced efficiency the first is that there will
efficiency the first is that there will never be enough time to do everything
never be enough time to do everything that you have to do
that you have to do the busier and more successful you
the busier and more successful you become the more true this statement will
become the more true this statement will be
be if you have lots of time to do your work
if you have lots of time to do your work it means that you are underemployed
it means that you are underemployed underpaid and well along on the low road
underpaid and well along on the low road to frustration and disappointment in
to frustration and disappointment in your career
your career the fact is that you can only discover
the fact is that you can only discover how much you can do by trying to do too
how much you can do by trying to do too much you can only find out how far you
much you can only find out how far you can go by going too far you discover how
can go by going too far you discover how much you can take on by taking on
much you can take on by taking on more than you can do
more than you can do the second part of this law which is the
the second part of this law which is the key question in personal efficiency and
key question in personal efficiency and time management is to ask yourself
time management is to ask yourself continually
continually what is the most valuable use of my time
what is the most valuable use of my time right now
right now always keep yourself on track and focus
always keep yourself on track and focus on your most important responsibilities
on your most important responsibilities by asking yourself hour by hour and
by asking yourself hour by hour and minute by minute
minute by minute what is the most valuable use of my time
what is the most valuable use of my time right now
right now the ninth law of achievement is the law
the ninth law of achievement is the law of decision
of decision it says that every great leap forward in
it says that every great leap forward in life is preceded by a clear decision
life is preceded by a clear decision that leads to action
that leads to action all high achieving men and women tend to
all high achieving men and women tend to be very decisive in their thoughts and
be very decisive in their thoughts and actions
actions they think things through carefully they
they think things through carefully they decide exactly what they want and then
decide exactly what they want and then they make clear decisions and take
they make clear decisions and take action to make those decisions a reality
action to make those decisions a reality in your life you've had several
in your life you've had several experiences where you've been unsure of
experiences where you've been unsure of what to do and you've resolved your
what to do and you've resolved your dilemma by making a clear decision one
dilemma by making a clear decision one way or the other
way or the other in looking back you'll probably find
in looking back you'll probably find that that was the turning point for you
that that was the turning point for you and that everything else flowed from the
and that everything else flowed from the decision
decision the ability to make good decisions is
the ability to make good decisions is one of the most critical thinking skills
one of the most critical thinking skills of the successful man or woman
of the successful man or woman in fact in one study the careers of
in fact in one study the careers of managers who were promoted rapidly were
managers who were promoted rapidly were compared to those of managers who were
compared to those of managers who were passed over for promotion
passed over for promotion researchers found the one distinguishing
researchers found the one distinguishing behavior between the two groups was that
behavior between the two groups was that the more rapidly promoted managers were
the more rapidly promoted managers were more decisive in doing their jobs
more decisive in doing their jobs the interesting fact that came out of
the interesting fact that came out of this study was that given written tests
this study was that given written tests with hypothetical problems
with hypothetical problems both sets of managers were equally
both sets of managers were equally accurate in their answers
accurate in their answers the more successful managers however on
the more successful managers however on the job were willing to make decisions
the job were willing to make decisions based on their answers while the
based on their answers while the unsuccessful managers were afraid to for
unsuccessful managers were afraid to for fear of making a mistake
fear of making a mistake the very act of being decisive can be
the very act of being decisive can be the critical factor that enables you to
the critical factor that enables you to take command of a situation and move
take command of a situation and move ahead more rapidly
ahead more rapidly we've found that high achievers are not
we've found that high achievers are not necessarily those who make the right
necessarily those who make the right decisions every time
decisions every time but they are those people who make their
but they are those people who make their decisions right
decisions right they accept feedback and self-correct
they accept feedback and self-correct they take in new information and they
they take in new information and they change if necessary but they are always
change if necessary but they are always decisive always moving forward never
decisive always moving forward never wishy-washy or vacillating in their
wishy-washy or vacillating in their attitudes toward life
attitudes toward life the first part of the law of decision is
the first part of the law of decision is simply this
simply this act boldly and unseen forces will come
act boldly and unseen forces will come to your aid
to your aid it seems that when you grasp a situation
it seems that when you grasp a situation and step forward courageously a series
and step forward courageously a series of unseen forces most of which are
of unseen forces most of which are explained by the laws in this program
explained by the laws in this program seem to emerge and help you to achieve
seem to emerge and help you to achieve your goals
your goals your very willingness to take action
your very willingness to take action rather than to delay or procrastinate
rather than to delay or procrastinate seems to bring universal powers to your
seems to bring universal powers to your assistance
assistance the second part of the law of decision
the second part of the law of decision comes from the wonderful book by
comes from the wonderful book by dorothea brand entitled wake up and live
dorothea brand entitled wake up and live she wrote that the discovery that
she wrote that the discovery that changed her life in the lives of
changed her life in the lives of thousands of others who heard it from
thousands of others who heard it from her in her public talks was the simple
her in her public talks was the simple success formula that says
success formula that says act as if it were impossible to fail
act as if it were impossible to fail and it shall be
and it shall be when you imagine that your success will
when you imagine that your success will be guaranteed if you simply take action
be guaranteed if you simply take action and you act on that premise a whole
and you act on that premise a whole series of forces begins to support you
series of forces begins to support you and move you toward the attainment of
and move you toward the attainment of your desires
your desires so
so when in doubt act as if it were
when in doubt act as if it were impossible to fail and push forward
impossible to fail and push forward the third part of the law of decision
the third part of the law of decision comes from the famous nike commercial
comes from the famous nike commercial which says
which says just do it
just do it these three words really summarize one
these three words really summarize one of the great formulas for success
of the great formulas for success just
just do it
do it so be decisive
so be decisive go for it
go for it take a chance
take a chance act boldly and unseen forces will come
act boldly and unseen forces will come to your aid
to your aid the tenth law of achievement is the law
the tenth law of achievement is the law of creativity
of creativity it says that every advance in human life
it says that every advance in human life begins with an idea in the mind of one
begins with an idea in the mind of one person
person it's ideas that you generate that enable
it's ideas that you generate that enable you to solve your problems overcome your
you to solve your problems overcome your obstacles and achieve your goals
obstacles and achieve your goals ideas are the keys to the future it's
ideas are the keys to the future it's hardly possible for you to achieve
hardly possible for you to achieve anything of note except to the degree to
anything of note except to the degree to which you think and do something new and
which you think and do something new and different from what's been done before
different from what's been done before all it takes is a small innovation to
all it takes is a small innovation to lay the foundation for a fortune and
lay the foundation for a fortune and great success in life
great success in life the first part of this law says that
the first part of this law says that your ability to generate constructive
your ability to generate constructive ideas is to all intents and purposes
ideas is to all intents and purposes unlimited
unlimited therefore your future potential is
therefore your future potential is unlimited as well
unlimited as well ideas are a mode of transportation a
ideas are a mode of transportation a vehicle that you can use to take you
vehicle that you can use to take you from wherever you are to wherever you
from wherever you are to wherever you want to go
want to go your job is simply to generate as many
your job is simply to generate as many ideas as possible to evaluate them
ideas as possible to evaluate them carefully against your current goals and
carefully against your current goals and then to take action on them
then to take action on them there's virtually no obstacle in life
there's virtually no obstacle in life that you cannot overcome with the power
that you cannot overcome with the power of thought with the power of creative
of thought with the power of creative concentration
concentration with the power of ideas
with the power of ideas the second part of this law comes from
the second part of this law comes from napoleon hill who said in his famous
napoleon hill who said in his famous words
words whatever the mind of man can conceive
whatever the mind of man can conceive and believe
and believe it can achieve
it can achieve your mind is structured in such a way
your mind is structured in such a way that you cannot at the same time
that you cannot at the same time have an idea and not also have the
have an idea and not also have the ability to bring that idea into reality
ability to bring that idea into reality the very existence of an idea in your
the very existence of an idea in your conscious mind means that you have
conscious mind means that you have within you and around you the capacity
within you and around you the capacity to achieve it the only question you have
to achieve it the only question you have to ask yourself is
to ask yourself is how badly do i want it
how badly do i want it the third part of the law of creativity
the third part of the law of creativity comes from napoleon bonaparte who said
comes from napoleon bonaparte who said imagination rules the world everything
imagination rules the world everything you see around you is the result of what
you see around you is the result of what was initially a single idea in the mind
was initially a single idea in the mind of a single person
of a single person our entire world started from thought
our entire world started from thought brought into reality
brought into reality the fourth and final part of this law
the fourth and final part of this law comes from einstein who said simply that
comes from einstein who said simply that imagination is more important than facts
imagination is more important than facts there have been countless occasions in
there have been countless occasions in your life in the lives of others where
your life in the lives of others where the facts say one thing but your ideas
the facts say one thing but your ideas and creative energy enable you to do
and creative energy enable you to do something completely different
something completely different virtually every important turning point
virtually every important turning point in your life will be marked by an idea
in your life will be marked by an idea that you've had at that time and that
that you've had at that time and that moment
moment all great changes in human life and
all great changes in human life and human destiny begin with an idea that
human destiny begin with an idea that causes you to see things differently and
causes you to see things differently and to take action that you would not have
to take action that you would not have taken in the absence of that idea
taken in the absence of that idea wherever you are whatever you're doing
wherever you are whatever you're doing whatever your situation you have the
whatever your situation you have the creative capacity in the form of an
creative capacity in the form of an infinite ability to generate ideas to
infinite ability to generate ideas to solve any problem and achieve any goal
solve any problem and achieve any goal it's up to you
it's up to you the 11th law of achievement is the law
the 11th law of achievement is the law of flexibility
of flexibility this law says that success is best
this law says that success is best achieved when you are clear about the
achieved when you are clear about the goal but
goal but flexible about the process of getting
flexible about the process of getting there
there this is one of the most important
this is one of the most important conclusions ever reached by high
conclusions ever reached by high achieving men and women
achieving men and women when you set a clear goal for yourself
when you set a clear goal for yourself and make a plan you usually have a
and make a plan you usually have a fairly good idea of what it is you have
fairly good idea of what it is you have to do to get whatever it is you want to
to do to get whatever it is you want to achieve
achieve however a thousand things can change
however a thousand things can change each of which will require alterations
each of which will require alterations in your plan of action
in your plan of action the most optimistic and enthusiastic
the most optimistic and enthusiastic people are those who are open and
people are those who are open and flexible and fluid in the face of the
flexible and fluid in the face of the inevitable and the myriad changes
inevitable and the myriad changes required as they move toward the
required as they move toward the accomplishment of something that's
accomplishment of something that's important to them
important to them the first part of the law of flexibility
the first part of the law of flexibility is that the experience of resistance and
is that the experience of resistance and frustration is often an indication that
frustration is often an indication that you're doing the wrong thing
you're doing the wrong thing whenever you feel that you're butting
whenever you feel that you're butting your head against the wall and not
your head against the wall and not making progress step back and re-examine
making progress step back and re-examine your plan
your plan be sure that the goal that you're
be sure that the goal that you're working toward is still the goal that
working toward is still the goal that you desire and then sit down and make
you desire and then sit down and make better plans
better plans take the mentality of a computer
take the mentality of a computer programmer
programmer when he designs a computer program he
when he designs a computer program he knows that the program will be full of
knows that the program will be full of defects when it's completed
defects when it's completed no computer program ever works perfectly
no computer program ever works perfectly the first time it's tried
the first time it's tried however the programmer accepts this as a
however the programmer accepts this as a fact of life and then begins to go back
fact of life and then begins to go back to the program step by step to remove
to the program step by step to remove the defects
the defects when the programmer is finished the
when the programmer is finished the program will operate perfectly
program will operate perfectly by the same token whenever your plants
by the same token whenever your plants don't seem to be bearing fruit look in
don't seem to be bearing fruit look in the mirror
the mirror re-examine your plans and redesign them
re-examine your plans and redesign them until you have faultless plans that work
until you have faultless plans that work and move you forward without anxiety and
and move you forward without anxiety and frustration
frustration the second part of the law of
the second part of the law of flexibility is that you are only as free
flexibility is that you are only as free in life as the number of developed
in life as the number of developed options that you have available to you
options that you have available to you your freedom and happiness is largely
your freedom and happiness is largely determined by the number of alternatives
determined by the number of alternatives that you've developed in case your first
that you've developed in case your first choice doesn't work
choice doesn't work the more thoroughly developed your
the more thoroughly developed your options and alternatives the more
options and alternatives the more freedom you have
freedom you have if one course of action doesn't develop
if one course of action doesn't develop as you expected you're fully prepared to
as you expected you're fully prepared to switch
switch in my courses on decision making once
in my courses on decision making once the decision has been reached i
the decision has been reached i encourage the participants to ask the
encourage the participants to ask the question
question what else would be a good decision in
what else would be a good decision in this situation
this situation the very exercise of developing
the very exercise of developing alternatives enables you to think more
alternatives enables you to think more clearly and can be a major contributor
clearly and can be a major contributor to the level of achievement that you
to the level of achievement that you experience
experience the third part of the law of flexibility
the third part of the law of flexibility is that
is that crisis is change
crisis is change trying to take place
trying to take place whenever you're experiencing a crisis or
whenever you're experiencing a crisis or difficulty of any kind
difficulty of any kind stand back for a moment and ask yourself
stand back for a moment and ask yourself what change is trying to take place that
what change is trying to take place that is being signaled to me as a result of
is being signaled to me as a result of this crisis
this crisis you may be having a crisis in your work
you may be having a crisis in your work in your personal relationships with your
in your personal relationships with your health or with your business in almost
health or with your business in almost every case a crisis is an indication
every case a crisis is an indication that something is wrong and that
that something is wrong and that pursuing the same course would be an
pursuing the same course would be an unwise thing to do
unwise thing to do so what is the change that's trying to
so what is the change that's trying to take place in your life right now
take place in your life right now and the fourth part of the law of
and the fourth part of the law of flexibility is that errant assumptions
flexibility is that errant assumptions lie at the root of every failure
lie at the root of every failure almost every failure you have will be
almost every failure you have will be based on an incorrect assumption that
based on an incorrect assumption that you've made and accepted without
you've made and accepted without question
question it's always a good exercise to clarify
it's always a good exercise to clarify your assumptions especially when things
your assumptions especially when things aren't going as well as you want so what
aren't going as well as you want so what are your assumptions
are your assumptions first what are your explicit assumptions
first what are your explicit assumptions the ones you're clearly aware of and
the ones you're clearly aware of and second what are your implicit
second what are your implicit assumptions the ones that you may be
assumptions the ones that you may be accepting without question
accepting without question what if your most cherished assumptions
what if your most cherished assumptions were wrong what changes would this
were wrong what changes would this dictate how flexible and fluid would you
dictate how flexible and fluid would you have to be to redirect your course of
have to be to redirect your course of action if something that you were
action if something that you were assuming as a fact turned out not to be
assuming as a fact turned out not to be true at all
true at all whenever you make the right decisions
whenever you make the right decisions and you achieve your goals on schedule
and you achieve your goals on schedule it's always because the assumptions that
it's always because the assumptions that you were operating on
you were operating on turned out to be true
turned out to be true many people go broke in starting their
many people go broke in starting their own businesses because they assume that
own businesses because they assume that there's a big enough market for the
there's a big enough market for the product or service that they propose to
product or service that they propose to offer
offer they also assume that customers will
they also assume that customers will switch from their current suppliers to
switch from their current suppliers to them for no other reason than that they
them for no other reason than that they are in the marketplace
are in the marketplace they sometimes assume that they have the
they sometimes assume that they have the talents and skills and abilities to
talents and skills and abilities to provide the product or service at a
provide the product or service at a competitive price and still make a
competitive price and still make a profit
profit well your willingness to question your
well your willingness to question your assumptions to test your assumptions
assumptions to test your assumptions against reality with the willingness to
against reality with the willingness to accept the possibility that you could be
accept the possibility that you could be wrong
wrong is the kind of attitude that will
is the kind of attitude that will ultimately lead you to great achievement
ultimately lead you to great achievement flexibility is considered to be perhaps
flexibility is considered to be perhaps the most important single quality
the most important single quality necessary for success in our competitive
necessary for success in our competitive society for the rest of the century and
society for the rest of the century and into the century beyond
into the century beyond the twelfth law of achievement is the
the twelfth law of achievement is the law of persistence
law of persistence this law says that your ability to
this law says that your ability to persist in the face of setbacks and
persist in the face of setbacks and disappointments
disappointments is your measure of your belief in
is your measure of your belief in yourself and your ability to succeed
yourself and your ability to succeed persistence is the iron quality of
persistence is the iron quality of success
success sometimes your willingness to persist is
sometimes your willingness to persist is your greatest asset and is the quality
your greatest asset and is the quality that separates you from everyone else
that separates you from everyone else sometimes the strongest thing you have
sometimes the strongest thing you have going for you is your ability to persist
going for you is your ability to persist longer than anyone else
longer than anyone else the first part of the law of persistence
the first part of the law of persistence is simply that persistence is
is simply that persistence is self-discipline in action
self-discipline in action it's when you face the inevitable
it's when you face the inevitable setbacks and delays and disappointments
setbacks and delays and disappointments and temporary defeats and you continue
and temporary defeats and you continue to persist in spite of them that you
to persist in spite of them that you demonstrate to yourself and others that
demonstrate to yourself and others that you have the character of self
you have the character of self discipline and self mastery that is
discipline and self mastery that is absolutely indispensable for the great
absolutely indispensable for the great success that you desire
success that you desire churchill summarized the second part of
churchill summarized the second part of the law of persistence when he said
the law of persistence when he said never give up
never give up never
never never
never give up
give up churchill believed and he proved
churchill believed and he proved throughout his lifetime that bulldog
throughout his lifetime that bulldog tenacity in the face of what appeared to
tenacity in the face of what appeared to be overwhelming defeat was often the
be overwhelming defeat was often the critical quality that turned that defeat
critical quality that turned that defeat into victory
into victory when you begin to live your life in
when you begin to live your life in harmony with the laws of success and
harmony with the laws of success and achievement that we've talked about so
achievement that we've talked about so far
far and you back all of your goals and plans
and you back all of your goals and plans with unshakeable determination and
with unshakeable determination and persistence
persistence you will eventually find that there is
you will eventually find that there is nothing in the world that can stop you
nothing in the world that can stop you you will become an irresistible force of
you will become an irresistible force of nature and your goals of high
nature and your goals of high achievement
achievement will become your realities
will become your realities [Music]
the greek philosopher aristotle once wrote that the single most common
wrote that the single most common denominator of mankind is the desire to
denominator of mankind is the desire to be happy however happiness may be
be happy however happiness may be defined by the individual
defined by the individual in his work nekomaki and ethics
in his work nekomaki and ethics aristotle wrote that the primary concern
aristotle wrote that the primary concern of philosophy was to answer the question
of philosophy was to answer the question how shall we live in order to be happy
how shall we live in order to be happy virtually every action that you take in
virtually every action that you take in life is aimed at somehow achieving your
life is aimed at somehow achieving your own happiness or moving away from the
own happiness or moving away from the people and circumstances that cause you
people and circumstances that cause you to feel unhappy
to feel unhappy sigmund freud called this the pleasure
sigmund freud called this the pleasure principle and for him and for many
principle and for him and for many psychologists and psychoanalysts it
psychologists and psychoanalysts it became the foundation for studying the
became the foundation for studying the mental and emotional aspects of human
mental and emotional aspects of human behavior it's safe to say that virtually
behavior it's safe to say that virtually everything you think or say or do is
everything you think or say or do is simply a means
simply a means the end of which is the achievement of
the end of which is the achievement of your own happiness
your own happiness the question of happiness how to achieve
the question of happiness how to achieve more of it and how to avoid unhappiness
more of it and how to avoid unhappiness has been studied exhaustively for
has been studied exhaustively for hundreds of years
hundreds of years in this session we'll talk about some of
in this session we'll talk about some of the laws that have been discovered in
the laws that have been discovered in the universal search for happiness
the universal search for happiness you can then use these laws and
you can then use these laws and principles to dramatically increase the
principles to dramatically increase the level of happiness that you enjoy in
level of happiness that you enjoy in virtually everything you do
virtually everything you do as i mentioned earlier the starting
as i mentioned earlier the starting point of your achieving happiness is for
point of your achieving happiness is for you to decide exactly how you define the
you to decide exactly how you define the word happiness as stephen covey writes
word happiness as stephen covey writes you must start with the end in mind
you must start with the end in mind begin with a goal and work back
begin with a goal and work back you need to engage in the hard
you need to engage in the hard discipline thinking of deciding for
discipline thinking of deciding for yourself exactly what combination of
yourself exactly what combination of ingredients causes you to feel the
ingredients causes you to feel the happiest about yourself most of the time
happiest about yourself most of the time remember
remember you are both unique and extraordinary
you are both unique and extraordinary there's never been and never will be
there's never been and never will be anyone exactly like you
anyone exactly like you you have a remarkable combination of
you have a remarkable combination of tastes and values and beliefs and needs
tastes and values and beliefs and needs and desires that make your particular
and desires that make your particular definition of happiness different from
definition of happiness different from that of anyone else who has ever lived
that of anyone else who has ever lived and only you can decide for yourself
and only you can decide for yourself what makes you happy
what makes you happy no one can ever dictate happiness to
no one can ever dictate happiness to another person
another person it's a purely subjective or personal
it's a purely subjective or personal decision
decision when i think of how different happiness
when i think of how different happiness is to each person i think of a large
is to each person i think of a large smorgasbord
smorgasbord have you ever been to a long buffet line
have you ever been to a long buffet line with 20 or 30 or even 40 different
with 20 or 30 or even 40 different dishes of all kinds
dishes of all kinds if you ever want to see a living example
if you ever want to see a living example of the differences between human beings
of the differences between human beings just stand for a short while at the exit
just stand for a short while at the exit end of a buffet line
end of a buffet line and look at the different combinations
and look at the different combinations of foods that the individuals have put
of foods that the individuals have put on their plates
on their plates you'll never see two exactly the same
you'll never see two exactly the same the sizes colors proportions and
the sizes colors proportions and mixtures will be different for each
mixtures will be different for each person this simple exercise is proof
person this simple exercise is proof that neither you nor anyone else can
that neither you nor anyone else can ever decide what will make another
ever decide what will make another person happy
person happy for each person this choice is his or
for each person this choice is his or her primary responsibility in life and
her primary responsibility in life and it's both mandatory and unavoidable
it's both mandatory and unavoidable a useful and enjoyable exercise for you
a useful and enjoyable exercise for you is to write down a piece of paper the
is to write down a piece of paper the following line
following line i would be perfectly happy if
i would be perfectly happy if then complete the sentence with as many
then complete the sentence with as many different answers as you can think of
different answers as you can think of you might say i would be perfectly happy
you might say i would be perfectly happy if
if i had all the money i needed
i had all the money i needed if i enjoyed perfect health
if i enjoyed perfect health if i had the love respect and esteem of
if i had the love respect and esteem of all the people who are important to me
all the people who are important to me if i were living in the perfect climate
if i were living in the perfect climate or if i was doing the perfect job and so
or if i was doing the perfect job and so on the more detailed your answers are
on the more detailed your answers are and the more you break your answers down
and the more you break your answers down into clear definitions of exactly what
into clear definitions of exactly what those answers mean the easier it will be
those answers mean the easier it will be for you to organize your life in such a
for you to organize your life in such a way that you enjoy far more happiness
way that you enjoy far more happiness than the average person
than the average person the silliest thing about the concept of
the silliest thing about the concept of happiness is that although everybody
happiness is that although everybody wants more of it very few people have
wants more of it very few people have ever taken any time at all to decide for
ever taken any time at all to decide for themselves what it really means to them
themselves what it really means to them this is probably why most people are
this is probably why most people are dissatisfied with much of their lives
dissatisfied with much of their lives fortunately you can free yourself from
fortunately you can free yourself from this tendency by clarifying for yourself
this tendency by clarifying for yourself exactly how each part of your life would
exactly how each part of your life would be if you were a perfectly happy person
be if you were a perfectly happy person already
already in psychology and as you will see in
in psychology and as you will see in economics the basic principle of human
economics the basic principle of human behavior is that all human action is
behavior is that all human action is motivated by a dissatisfaction of some
motivated by a dissatisfaction of some kind
kind if a person was perfectly satisfied he
if a person was perfectly satisfied he would have no urge or desire to do or
would have no urge or desire to do or change anything
change anything so the starting point of achieving
so the starting point of achieving greater happiness for you
greater happiness for you can be an evaluation of some of the
can be an evaluation of some of the needs that you might experience which
needs that you might experience which lead to dissatisfaction
lead to dissatisfaction perhaps the most important work in this
perhaps the most important work in this area was done by the psychologist
area was done by the psychologist abraham maslow when he postulated his
abraham maslow when he postulated his hierarchy of needs
hierarchy of needs what he said was that each person has a
what he said was that each person has a series of needs from the lowest to the
series of needs from the lowest to the highest and that each person acts
highest and that each person acts continuously to satisfy these needs
continuously to satisfy these needs maslow explained that until a lower
maslow explained that until a lower order need was satisfied the individual
order need was satisfied the individual couldn't think or turn his mind to a
couldn't think or turn his mind to a higher order need
higher order need he also demonstrated that once a need
he also demonstrated that once a need has been satisfied it's no longer a
has been satisfied it's no longer a motivator
motivator once you get something you want and you
once you get something you want and you have enough of it you're no longer
have enough of it you're no longer motivated or driven to get it
motivated or driven to get it your motivation then changes toward
your motivation then changes toward getting something that you still feel a
getting something that you still feel a need for
need for let me explain
let me explain maslow's hierarchy originally had five
maslow's hierarchy originally had five needs or levels
needs or levels in his later research he suggested that
in his later research he suggested that there were two even higher needs
there were two even higher needs the lowest need and the first need that
the lowest need and the first need that must be satisfied is the need for
must be satisfied is the need for survival
survival until a person's survival needs are
until a person's survival needs are satisfied until he or she is no longer
satisfied until he or she is no longer concerned for the basics of life food
concerned for the basics of life food clothing shelter
clothing shelter that person is not concerned about
that person is not concerned about higher needs
higher needs maslow also demonstrated that a person
maslow also demonstrated that a person who through accident or circumstance was
who through accident or circumstance was deprived of a lower need like food he
deprived of a lower need like food he would stop trying to fulfill any higher
would stop trying to fulfill any higher need until the lower need was satisfied
need until the lower need was satisfied once more
once more the second need up on maslow's hierarchy
the second need up on maslow's hierarchy is the need for security of all kinds
is the need for security of all kinds physical emotional financial and so on
physical emotional financial and so on this is the foundation of the life
this is the foundation of the life insurance industry
insurance industry once a person is assured of survival he
once a person is assured of survival he or she becomes concerned with security
or she becomes concerned with security once the need for security has been met
once the need for security has been met the individual then turns to the third
the individual then turns to the third level of need which is the need for love
level of need which is the need for love and belonging the need to be accepted by
and belonging the need to be accepted by other human beings
other human beings people need to interact and associate
people need to interact and associate with other people to feel themselves to
with other people to feel themselves to be part of a social group to be known
be part of a social group to be known and cared for by others
and cared for by others this is why solitary confinement is the
this is why solitary confinement is the worst punishment that can be given to
worst punishment that can be given to the worst criminal in the worst maximum
the worst criminal in the worst maximum security institution
security institution being deprived of the company of others
being deprived of the company of others is very painful emotionally
is very painful emotionally the fourth level of need discussed by
the fourth level of need discussed by maslow is the need for self-esteem
maslow is the need for self-esteem this is the need to like yourself and
this is the need to like yourself and respect yourself and feel that you're
respect yourself and feel that you're respected and appreciated by others
respected and appreciated by others the fifth level of need on maslow's
the fifth level of need on maslow's hierarchy is the need for
hierarchy is the need for self-actualization
self-actualization this is defined as the feeling that you
this is defined as the feeling that you are becoming everything you're capable
are becoming everything you're capable of becoming
of becoming maslow felt that the most advanced and
maslow felt that the most advanced and fully mature members of our society were
fully mature members of our society were those who were functioning at the higher
those who were functioning at the higher levels of need satisfaction
levels of need satisfaction self-actualization can be seen when
self-actualization can be seen when people engage in activities that
people engage in activities that challenge their abilities and stretch
challenge their abilities and stretch them toward the greater realizations of
them toward the greater realizations of their full potential
their full potential the two higher needs that maslow added
the two higher needs that maslow added later were the need for beauty and the
later were the need for beauty and the need for truth in that order
need for truth in that order once a person has satisfied his or her
once a person has satisfied his or her needs for survival security belonging
needs for survival security belonging self-esteem and self-actualization
self-esteem and self-actualization he or she would naturally turn to beauty
he or she would naturally turn to beauty as in music or art and truth as in
as in music or art and truth as in philosophy or religion
philosophy or religion however if a person who is functioning
however if a person who is functioning at the higher levels of the hierarchy of
at the higher levels of the hierarchy of needs suddenly fell off a moving boat in
needs suddenly fell off a moving boat in the middle of the night and was
the middle of the night and was threatened with drowning he or she would
threatened with drowning he or she would immediately forget about the
immediately forget about the satisfaction of all higher needs and
satisfaction of all higher needs and would revert instantly to a total
would revert instantly to a total concern with survival the most basic of
concern with survival the most basic of human needs
human needs as you mature and grow and become a more
as you mature and grow and become a more fully functioning human being
fully functioning human being you find that you're motivated at a
you find that you're motivated at a higher and higher level of need
higher and higher level of need the kinds of dissatisfactions that you
the kinds of dissatisfactions that you experience which deprive you of the
experience which deprive you of the happiness that you desire are triggered
happiness that you desire are triggered by dissatisfaction at higher and higher
by dissatisfaction at higher and higher levels
levels one of the wonderful things about
one of the wonderful things about western society is that because of our
western society is that because of our relative level of affluence more and
relative level of affluence more and more people have been freed from a
more people have been freed from a preoccupation with satisfying lower
preoccupation with satisfying lower level needs and given the opportunity to
level needs and given the opportunity to devote more of their time and thoughts
devote more of their time and thoughts to the satisfaction of higher level
to the satisfaction of higher level needs
needs the lower level needs those of survival
the lower level needs those of survival and security and belonging are all what
and security and belonging are all what might be called deficiency needs
might be called deficiency needs the fulfilling of these needs doesn't
the fulfilling of these needs doesn't necessarily make you happy but being
necessarily make you happy but being deprived of these needs can make you
deprived of these needs can make you very unhappy indeed
very unhappy indeed the higher level needs the needs for
the higher level needs the needs for self-esteem for self-actualization for
self-esteem for self-actualization for beauty and truth are all what are called
beauty and truth are all what are called being needs
being needs these are needs the fulfillment of which
these are needs the fulfillment of which can make you happier and happier and can
can make you happier and happier and can lead you to the feelings of elation joy
lead you to the feelings of elation joy and peak experiences where you feel
and peak experiences where you feel absolutely wonderful about yourself and
absolutely wonderful about yourself and life in every respect
life in every respect this of course is one of the highest
this of course is one of the highest states of happiness
states of happiness in achieving your own happiness another
in achieving your own happiness another helpful way of defining what happiness
helpful way of defining what happiness means to you is something that i teach
means to you is something that i teach in my seminars
in my seminars i say that everything that you could
i say that everything that you could possibly want in life could be listed
possibly want in life could be listed under one of seven categories
under one of seven categories you always have a tendency to measure
you always have a tendency to measure how well you're doing in life and how
how well you're doing in life and how happy you are by how much of each of
happy you are by how much of each of these seven ingredients you have or have
these seven ingredients you have or have not managed to achieve
not managed to achieve the first overall ingredient of
the first overall ingredient of happiness is peace of mind
happiness is peace of mind you are happy to the degree to which you
you are happy to the degree to which you can achieve your own peace of mind the
can achieve your own peace of mind the interesting thing about inner peace is
interesting thing about inner peace is that it's the normal natural state of
that it's the normal natural state of man and that it is deviations from inner
man and that it is deviations from inner peace and happiness that are unnatural
peace and happiness that are unnatural and abnormal
and abnormal it's important to point this out because
it's important to point this out because many people think that the experience of
many people think that the experience of inner joy is unusual and accidental
inner joy is unusual and accidental others very few
others very few realize that this inner experience is
realize that this inner experience is the norm and they strive to organize
the norm and they strive to organize their lives so that they have it more
their lives so that they have it more often
often the second ingredient of happiness is
the second ingredient of happiness is health and energy
health and energy your health which is largely reflected
your health which is largely reflected in your levels of energy is the absolute
in your levels of energy is the absolute minimum requirement for the assurance of
minimum requirement for the assurance of your survival and well-being
your survival and well-being you know that if you gain everything
you know that if you gain everything else but you lose your health you're
else but you lose your health you're failing in the most important area
failing in the most important area but if you achieve and maintain high
but if you achieve and maintain high levels of health and energy no matter
levels of health and energy no matter what else happens to you on the outside
what else happens to you on the outside you're still doing pretty well as a
you're still doing pretty well as a human being
human being the third ingredient of happiness is
the third ingredient of happiness is loving relationships
loving relationships you are happy and successful to the
you are happy and successful to the degree that other people love and
degree that other people love and respect you and you love and respect
respect you and you love and respect other people
other people most of your happiness in life will come
most of your happiness in life will come from your interactions with those people
from your interactions with those people that you care about and who care about
that you care about and who care about you
you so developing and preserving loving
so developing and preserving loving relationships with other people is a
relationships with other people is a measure of everything you are as a human
measure of everything you are as a human being
being the fourth ingredient of happiness is
the fourth ingredient of happiness is financial freedom
financial freedom most people want a lot of money
most people want a lot of money primarily because they feel that with a
primarily because they feel that with a lot of money they'll be free to live
lot of money they'll be free to live their lives the way they want and they
their lives the way they want and they feel that this will make them happy
feel that this will make them happy most material objects and
most material objects and accomplishments are seen as a means to
accomplishments are seen as a means to achieve this end
achieve this end the big mistake that many people make is
the big mistake that many people make is that they confuse means and ends and
that they confuse means and ends and they become totally obsessed with
they become totally obsessed with getting and spending and they lose sight
getting and spending and they lose sight of the reasons for wanting money in the
of the reasons for wanting money in the first place
first place financial freedom can be defined simply
financial freedom can be defined simply as having enough money so that you don't
as having enough money so that you don't worry about it or think about it so that
worry about it or think about it so that you can then turn your mind and emotions
you can then turn your mind and emotions to other more important subjects
to other more important subjects money is a little bit like a deficiency
money is a little bit like a deficiency need in that if you have enough of it
need in that if you have enough of it you seldom think about it but if you
you seldom think about it but if you have too little for any period of time
have too little for any period of time you think of almost nothing else
you think of almost nothing else the fifth ingredient of happiness is
the fifth ingredient of happiness is worthy goals and ideals
worthy goals and ideals in reality happiness is a condition that
in reality happiness is a condition that you experience when you're fully engaged
you experience when you're fully engaged in doing something that is important and
in doing something that is important and meaningful to you this is why victor
meaningful to you this is why victor frankl wrote that a need for meaning and
frankl wrote that a need for meaning and purpose is the deepest craving in human
purpose is the deepest craving in human nature
nature it's only when you feel that your life
it's only when you feel that your life stands for something bigger than
stands for something bigger than yourself and that what you're doing is
yourself and that what you're doing is making a difference in the world that
making a difference in the world that you're truly happy
you're truly happy the sixth ingredient of happiness is
the sixth ingredient of happiness is self-knowledge and self-understanding
self-knowledge and self-understanding the ancient greeks had a saying engraved
the ancient greeks had a saying engraved in stone above the temple of apollo at
in stone above the temple of apollo at delphi which said
delphi which said man
man know thyself
know thyself this advice is more than two thousand
this advice is more than two thousand years old and it's equally true today
years old and it's equally true today you can only be happy when you fully
you can only be happy when you fully understand why it is you feel the way
understand why it is you feel the way you feel and do the things you do
you feel and do the things you do self-knowledge and self-understanding
self-knowledge and self-understanding seem to go hand in hand with inner peace
seem to go hand in hand with inner peace tranquility and happiness
tranquility and happiness the seventh overall ingredient of
the seventh overall ingredient of happiness is a sense of self-fulfillment
happiness is a sense of self-fulfillment it's the feeling you have when you're
it's the feeling you have when you're living your life completely and leaving
living your life completely and leaving nothing out
nothing out henry david thoreau when he withdrew to
henry david thoreau when he withdrew to walden pond for two years to think about
walden pond for two years to think about life wrote that his primary motivation
life wrote that his primary motivation was to
was to live deliberately and not to come to the
live deliberately and not to come to the end of my years
end of my years without ever having really lived
without ever having really lived self-fulfillment is another word for
self-fulfillment is another word for self-actualization
self-actualization this is the need being satisfied by
this is the need being satisfied by those men and women who have the
those men and women who have the healthiest personalities and who are the
healthiest personalities and who are the most fully integrated members of our
most fully integrated members of our society
society now you have to ask yourself in which of
now you have to ask yourself in which of these areas might you be suffering a
these areas might you be suffering a deficiency
deficiency in which of these areas are you
in which of these areas are you currently dissatisfied or unhappy for
currently dissatisfied or unhappy for any reason
any reason here's a helpful exercise that you can
here's a helpful exercise that you can give to yourself on a regular basis
give to yourself on a regular basis take a clean sheet of paper and giving
take a clean sheet of paper and giving yourself only 30 seconds to reply ask
yourself only 30 seconds to reply ask yourself this question
yourself this question what are my three most important goals
what are my three most important goals in life right now
in life right now write down the answers quickly without
write down the answers quickly without thought or evaluation
thought or evaluation then ask yourself the second question
then ask yourself the second question what are my three biggest worries or
what are my three biggest worries or problems in life
problems in life right now
right now and write them down quickly as well
and write them down quickly as well the answers to these questions will
the answers to these questions will reveal two remarkable things
reveal two remarkable things first they'll indicate to you clearly
first they'll indicate to you clearly what you need to do more of or have more
what you need to do more of or have more of in order to be happy
of in order to be happy and second they'll show you what you
and second they'll show you what you need to eliminate in order to get rid of
need to eliminate in order to get rid of any unhappiness or dissatisfaction that
any unhappiness or dissatisfaction that currently exists in your life
currently exists in your life your subconscious mind is remarkable in
your subconscious mind is remarkable in this way
this way if you only give yourself 30 seconds to
if you only give yourself 30 seconds to write down the answers to these
write down the answers to these questions your subconscious will sort
questions your subconscious will sort through all the millions of bits of data
through all the millions of bits of data stored in your metal computer and pop
stored in your metal computer and pop the correct answers to the surface of
the correct answers to the surface of your mind and onto the piece of paper as
your mind and onto the piece of paper as accurately as if you had taken 30
accurately as if you had taken 30 minutes or even three hours to perform
minutes or even three hours to perform the same exercise
the same exercise try it for yourself and see
try it for yourself and see now in addition to the laws of success
now in addition to the laws of success and achievement we discussed earlier
and achievement we discussed earlier there are eight specific laws you can
there are eight specific laws you can practice to achieve the happiness you
practice to achieve the happiness you both desire and deserve
both desire and deserve the first law is the law of integrity
the first law is the law of integrity this law says that happiness arises as a
this law says that happiness arises as a byproduct of your choosing to live your
byproduct of your choosing to live your life consistent with your highest values
life consistent with your highest values and aspirations
and aspirations just as maslow's highest need is truth
just as maslow's highest need is truth your highest need and the foundation of
your highest need and the foundation of your happiness is living in truth with
your happiness is living in truth with yourself and with everything and
yourself and with everything and everyone around you
everyone around you the slightest deviation from truth the
the slightest deviation from truth the slightest tendency to compromise with
slightest tendency to compromise with what you know to be right will detract
what you know to be right will detract from your happiness almost immediately
from your happiness almost immediately you are designed with an inner guide or
you are designed with an inner guide or conscience that always tells you the
conscience that always tells you the right thing to do and you're only happy
right thing to do and you're only happy when you live your life completely
when you live your life completely consistent with it
consistent with it to be happy your goals and your values
to be happy your goals and your values must be congruent
must be congruent they must fit into each other like a
they must fit into each other like a hand into a glove
hand into a glove virtually all stress and unhappiness
virtually all stress and unhappiness comes from trying to do one thing when
comes from trying to do one thing when you believe something else is more
you believe something else is more important and more correct
important and more correct for example
for example most people believe that their
most people believe that their relationships their spouses their
relationships their spouses their children their families are more
children their families are more important to them than anything else
important to them than anything else however they sometimes become confused
however they sometimes become confused and begin to spend an inordinate amount
and begin to spend an inordinate amount of time achieving material success in
of time achieving material success in their careers thereby ignoring their
their careers thereby ignoring their relationships
relationships and the harder they work at their jobs
and the harder they work at their jobs the more dissatisfied and unhappy they
the more dissatisfied and unhappy they become even when they're financially
become even when they're financially successful because deep down inside they
successful because deep down inside they know that what is truly valuable to them
know that what is truly valuable to them is the people in their lives not the
is the people in their lives not the money
money it's only when you have the courage to
it's only when you have the courage to insist upon living your life in complete
insist upon living your life in complete harmony with your highest values that
harmony with your highest values that happiness arises and emerges
happiness arises and emerges spontaneously like sunrise bringing you
spontaneously like sunrise bringing you the peace
the peace and contentment you really want
and contentment you really want the first part of the law of integrity
the first part of the law of integrity says that when you set goals and ideals
says that when you set goals and ideals that are worthy of you
that are worthy of you and strive to achieve them you'll
and strive to achieve them you'll experience happiness and satisfaction
experience happiness and satisfaction as shakespeare said in the play hamlet
as shakespeare said in the play hamlet to thine own self be true and it must
to thine own self be true and it must follow as the night the day thou canst
follow as the night the day thou canst not then be false to any man
not then be false to any man the second part of the law of integrity
the second part of the law of integrity says that
says that whenever you choose to live consistent
whenever you choose to live consistent with the very best that is in you you'll
with the very best that is in you you'll automatically experience happiness and
automatically experience happiness and joy
joy you've probably had an experience in
you've probably had an experience in life where you've decided to walk away
life where you've decided to walk away from a bad situation even though it
from a bad situation even though it might have been costly either
might have been costly either emotionally or financially but you did
emotionally or financially but you did it because it was the right thing to do
it because it was the right thing to do you acted on a higher principle you
you acted on a higher principle you behaved in a manner consistent with your
behaved in a manner consistent with your highest values
highest values you'll also recall that having decided
you'll also recall that having decided to do so and having done it you felt
to do so and having done it you felt absolutely wonderful about yourself and
absolutely wonderful about yourself and your life
your life you felt a tremendous experience of
you felt a tremendous experience of elation and joy
elation and joy and the most remarkable thing was that
and the most remarkable thing was that everything turned out all right in the
everything turned out all right in the end
end all of the negative consequences that
all of the negative consequences that you were afraid might occur never
you were afraid might occur never materialized
materialized perhaps the finest example of living in
perhaps the finest example of living in truth and the most important
truth and the most important demonstration of your integrity or
demonstration of your integrity or honesty is with regard to peace of mind
honesty is with regard to peace of mind it's only when you set peace of mind as
it's only when you set peace of mind as your highest goal and you refuse to stay
your highest goal and you refuse to stay in any situation that detracts from your
in any situation that detracts from your peace of mind that you'll find yourself
peace of mind that you'll find yourself enjoying the highest and finest form of
enjoying the highest and finest form of happiness
happiness the law of integrity is another way of
the law of integrity is another way of saying that you are given peace of mind
saying that you are given peace of mind to serve you
to serve you as an inner barometer
as an inner barometer it'll tell you what is right for you and
it'll tell you what is right for you and what is wrong
what is wrong if you listen to your intuition and only
if you listen to your intuition and only do and say what gives you a sense of
do and say what gives you a sense of inner peace and harmony you'll probably
inner peace and harmony you'll probably never make another mistake
never make another mistake in fact catherine ponder writes in her
in fact catherine ponder writes in her book the dynamic laws of prosperity that
book the dynamic laws of prosperity that men and women begin to become great only
men and women begin to become great only when they begin to take time by
when they begin to take time by themselves to listen to their inner
themselves to listen to their inner voices
voices and organize their lives in such a way
and organize their lives in such a way that their activities and relationships
that their activities and relationships give them a deep sense of inner peace
give them a deep sense of inner peace the first step that you can take to
the first step that you can take to personal greatness is to sit down
personal greatness is to sit down quietly and look over your life to
quietly and look over your life to determine the areas where you're not
determine the areas where you're not experiencing the peace of mind and
experiencing the peace of mind and happiness that you really want
happiness that you really want you'll find that this is a very easy
you'll find that this is a very easy exercise to do because your mind is
exercise to do because your mind is continually preoccupied with these
continually preoccupied with these problems just like a person sitting on
problems just like a person sitting on attack would be preoccupied with the
attack would be preoccupied with the pain
pain your job is to get off the tech
your job is to get off the tech your responsibility to yourself is to
your responsibility to yourself is to realize that you can never make someone
realize that you can never make someone else happy by being unhappy yourself
else happy by being unhappy yourself just as you can never make someone else
just as you can never make someone else healthy by being sick
healthy by being sick you should not sacrifice your happiness
you should not sacrifice your happiness in an attempt to somehow achieve the
in an attempt to somehow achieve the happiness of another person
happiness of another person you'll only end up making no one happy
you'll only end up making no one happy especially yourself
especially yourself in the play cyrano de bergerac by edmund
in the play cyrano de bergerac by edmund roston
roston cyrano the great individualist is asked
cyrano the great individualist is asked why it is that he is so outspoken and so
why it is that he is so outspoken and so self-assertive
self-assertive he answers with this beautiful line
he answers with this beautiful line he says
he says i choose the line of least resistance in
i choose the line of least resistance in this
this that i will please at least myself in
that i will please at least myself in all things
all things when you make the decision that for
when you make the decision that for better or worse you will please at least
better or worse you will please at least yourself in all things
yourself in all things only then will you be truly happy and
only then will you be truly happy and only then it seems will you be able to
only then it seems will you be able to help anyone else to be happy as well
help anyone else to be happy as well the second law of happiness is the law
the second law of happiness is the law of emotion
of emotion it says that human beings are one
it says that human beings are one hundred percent emotional in everything
hundred percent emotional in everything they think and feel and decide
they think and feel and decide i used to think that people were ninety
i used to think that people were ninety percent emotional and ten percent
percent emotional and ten percent logical
logical however both research and experience
however both research and experience contradicts this conclusion
contradicts this conclusion people are totally emotional in
people are totally emotional in everything they do
everything they do if a person says to you that he's
if a person says to you that he's decided to do the logical thing it
decided to do the logical thing it simply means that he has more emotion
simply means that he has more emotion devoted to that course of action that he
devoted to that course of action that he does to another course of action and he
does to another course of action and he uses the word
uses the word logical to justify his decision
logical to justify his decision someone once said that no matter how old
someone once said that no matter how old you become you always have the emotions
you become you always have the emotions of a teenager
of a teenager this may or may not be true but the
this may or may not be true but the central impact of your emotions and
central impact of your emotions and feelings is a key component in both
feelings is a key component in both understanding and achieving your own
understanding and achieving your own happiness
happiness the first part of the law of emotion is
the first part of the law of emotion is that you are motivated by two major
that you are motivated by two major groups of emotions
groups of emotions those of love or desire and those of
those of love or desire and those of fear or loss
fear or loss these are the positive emotions and the
these are the positive emotions and the negative emotions
negative emotions these emotions were described by sigmund
these emotions were described by sigmund freud as emotions associated with
freud as emotions associated with pleasure
pleasure and emotions associated with pain
and emotions associated with pain you have a tendency to move toward those
you have a tendency to move toward those experiences you associate with pleasure
experiences you associate with pleasure or happiness
or happiness and you have a tendency to move away
and you have a tendency to move away from those experiences you associate
from those experiences you associate with pain or unhappiness
with pain or unhappiness this is the essence of the pleasure
this is the essence of the pleasure principle that i mentioned earlier
principle that i mentioned earlier the second part of this law of emotion
the second part of this law of emotion says that the content of your emotional
says that the content of your emotional life is largely determined by the
life is largely determined by the thoughts you dwell upon most of the time
thoughts you dwell upon most of the time this is such a simple and obvious truth
this is such a simple and obvious truth that it's often overlooked by most
that it's often overlooked by most people
people it simply says that if you think happy
it simply says that if you think happy thoughts you will be a happy person if
thoughts you will be a happy person if you think angry thoughts you'll be an
you think angry thoughts you'll be an angry person if you think about the
angry person if you think about the things that people have done to hurt you
things that people have done to hurt you and the reasons you have to be angry or
and the reasons you have to be angry or unhappy you'll be negative pessimistic
unhappy you'll be negative pessimistic and eventually you'll be depressed
and eventually you'll be depressed abraham lincoln once wrote a man is just
abraham lincoln once wrote a man is just about as happy as he makes up his mind
about as happy as he makes up his mind to be
to be well this is true for you and true for
well this is true for you and true for me
me the third part of the law of emotion
the third part of the law of emotion says
says if you deliberately choose to think
if you deliberately choose to think positive loving uplifting thoughts
positive loving uplifting thoughts you can create and maintain your own
you can create and maintain your own happiness in spite of what is happening
happiness in spite of what is happening around you
around you no one can make you feel anything
no one can make you feel anything as eleanor roosevelt said no one can
as eleanor roosevelt said no one can make you feel inferior without your
make you feel inferior without your consent
consent you decide to feel happy and you decide
you decide to feel happy and you decide to feel unhappy by the thoughts that you
to feel unhappy by the thoughts that you choose to dwell upon most of the time
choose to dwell upon most of the time therefore the smartest thing for you or
therefore the smartest thing for you or anyone else to do is to choose to dwell
anyone else to do is to choose to dwell upon the kind of thoughts that uplift
upon the kind of thoughts that uplift and enrich your life
and enrich your life the third law in this session is the
the third law in this session is the basic law of happiness which says
basic law of happiness which says the quality of your life is largely
the quality of your life is largely determined by how you feel at any given
determined by how you feel at any given moment
moment because you're 100 percent emotional in
because you're 100 percent emotional in every respect
every respect it is how you feel that determines your
it is how you feel that determines your levels of energy your personality your
levels of energy your personality your attitude your levels of performance and
attitude your levels of performance and output the clarity of your thinking the
output the clarity of your thinking the quality of your relationships and your
quality of your relationships and your level of happiness
level of happiness truly successful people are those who
truly successful people are those who enjoy every part of the journey at least
enjoy every part of the journey at least as much if not more so than they
as much if not more so than they anticipate enjoying the destination
anticipate enjoying the destination earl nightingale once wrote that
earl nightingale once wrote that happiness is the progressive realization
happiness is the progressive realization of a worthy ideal
of a worthy ideal happiness comes from working step by
happiness comes from working step by step toward the accomplishment of
step toward the accomplishment of something that's important to you
something that's important to you is the process more than the end result
is the process more than the end result that constitutes happiness because
that constitutes happiness because happiness is experienced in the now
happiness is experienced in the now rather than at some future date
rather than at some future date the first part of this law of happiness
the first part of this law of happiness is that how you feel the quality of your
is that how you feel the quality of your emotional life is largely determined by
emotional life is largely determined by how you talk to yourself
how you talk to yourself your self-talk your inner dialogue what
your self-talk your inner dialogue what you say to yourself on a regular basis
you say to yourself on a regular basis largely determines the tone of your
largely determines the tone of your emotional life
emotional life and the wonderful thing about your
and the wonderful thing about your self-talk is that it's completely under
self-talk is that it's completely under your own control
your own control one of the best bits of advice i ever
one of the best bits of advice i ever read was
read was when something goes wrong
when something goes wrong say something right
say something right immediately override a negative
immediately override a negative experience by saying something positive
experience by saying something positive and cheerful
and cheerful control
control your own self-talk
your own self-talk this brings us to the second part of the
this brings us to the second part of the law of happiness which says that the way
law of happiness which says that the way you interpret events to yourself
you interpret events to yourself determines your emotional responses to
determines your emotional responses to those events
those events this is another way of saying
this is another way of saying that it's not what happens to you but
that it's not what happens to you but how you react to what happens to you
how you react to what happens to you that determines how you feel about it
that determines how you feel about it if you interpret an external event as
if you interpret an external event as being positive or helpful you'll remain
being positive or helpful you'll remain optimistic and cheerful
optimistic and cheerful if you interpret the same event as being
if you interpret the same event as being negative or hurtful you'll become angry
negative or hurtful you'll become angry and frustrated you'll make yourself
and frustrated you'll make yourself unhappy and the choice is always yours
unhappy and the choice is always yours the third part of this law says that the
the third part of this law says that the fastest way to take control of your
fastest way to take control of your emotions is to look for the good in any
emotions is to look for the good in any situation you're facing
situation you're facing now this requires tremendous strength of
now this requires tremendous strength of will especially when things are going
will especially when things are going wrong all around you and people are
wrong all around you and people are blaming you for their problems however
blaming you for their problems however if you look for the good even if you
if you look for the good even if you just seek out the valuable lesson in
just seek out the valuable lesson in each experience
each experience you'll always find it and you can't be
you'll always find it and you can't be looking for the good or the valuable
looking for the good or the valuable lessons that the experience holds for
lessons that the experience holds for you and be negative or unhappy at the
you and be negative or unhappy at the same time
same time remember your subconscious mind can only
remember your subconscious mind can only hold one thought at a time either
hold one thought at a time either positive or negative and if you
positive or negative and if you deliberately choose to hold positive
deliberately choose to hold positive thoughts and dwell upon those thoughts
thoughts and dwell upon those thoughts then the negative thoughts simply can't
then the negative thoughts simply can't get in
get in this brings us naturally to the fourth
this brings us naturally to the fourth law of happiness which is called the law
law of happiness which is called the law of substitution
of substitution it says that you can keep yourself
it says that you can keep yourself positive by substituting a positive
positive by substituting a positive thought for a negative thought
thought for a negative thought the law of substitution is often called
the law of substitution is often called the crowding out principle
the crowding out principle it simply says that you can crowd out of
it simply says that you can crowd out of your mind any thoughts that aren't
your mind any thoughts that aren't helpful to you by simply choosing to
helpful to you by simply choosing to focus your attention on a thought that
focus your attention on a thought that is
is more helpful or more positive
more helpful or more positive many people are negative for the simple
many people are negative for the simple reason that they have not deliberately
reason that they have not deliberately chosen to be positive
chosen to be positive they have not systematically planted in
they have not systematically planted in their minds the thoughts that are
their minds the thoughts that are consistent with the emotions they desire
consistent with the emotions they desire to experience
to experience dr martin seligman of the university of
dr martin seligman of the university of pennsylvania in his recent book learned
pennsylvania in his recent book learned optimism talks about his 25 years of
optimism talks about his 25 years of research in cognitive psychology
research in cognitive psychology he says that the great majority of
he says that the great majority of people the pessimists have developed
people the pessimists have developed what he calls
what he calls learned helplessness
learned helplessness he says that if a person has a series of
he says that if a person has a series of experiences or makes a series of
experiences or makes a series of attempts to do something and is not
attempts to do something and is not successful
successful that person unconsciously assumes that
that person unconsciously assumes that there's nothing that he can do to change
there's nothing that he can do to change things
things he perceives himself to be helpless from
he perceives himself to be helpless from that point onward even when he's given
that point onward even when he's given an opportunity of some kind he will turn
an opportunity of some kind he will turn it down and give you every conceivable
it down and give you every conceivable reason why it's not possible for him
reason why it's not possible for him he's tried and failed in the past
he's tried and failed in the past and so he's now learned to be helpless
and so he's now learned to be helpless an illustration of this is the indian
an illustration of this is the indian elephant a huge beast that weighs as
elephant a huge beast that weighs as much as five tons
much as five tons indian elephants are domesticated very
indian elephants are domesticated very early in life and trained to be docile
early in life and trained to be docile and easily controlled by their owners
and easily controlled by their owners the way they do it is simple
the way they do it is simple when the elephant is a baby its owner
when the elephant is a baby its owner chains it with a large chain to a large
chains it with a large chain to a large stake driven deeply into the ground
stake driven deeply into the ground the elephant struggles against the chain
the elephant struggles against the chain for hour after hour
for hour after hour finally the baby elephant gives up and
finally the baby elephant gives up and accepts that when it's chained to a
accepts that when it's chained to a stake it's helpless it does no good to
stake it's helpless it does no good to struggle it might just as well stand
struggle it might just as well stand there until its master comes back and
there until its master comes back and takes off the chain
takes off the chain for the rest of the elephant's life all
for the rest of the elephant's life all its owner has to do is to tie a small
its owner has to do is to tie a small rope around the elephant's leg and
rope around the elephant's leg and attach the rope to a small stake in the
attach the rope to a small stake in the ground in order to hold the elephant
ground in order to hold the elephant firmly
firmly the elephant as soon as it feels the
the elephant as soon as it feels the rope in the stake stops struggling
rope in the stake stops struggling even though the rope is small and the
even though the rope is small and the stake is shallow the elephant has
stake is shallow the elephant has learned to be helpless the elephant no
learned to be helpless the elephant no longer struggles or strains against the
longer struggles or strains against the leash
leash the elephant may have the strength and
the elephant may have the strength and the power to knock down houses but it's
the power to knock down houses but it's completely docile and easily controlled
completely docile and easily controlled because of its attitude
because of its attitude the elephant's earlier experiences of
the elephant's earlier experiences of futility have convinced it that it's
futility have convinced it that it's powerless whenever it's tied to a stake
powerless whenever it's tied to a stake no matter how small the stake may be
no matter how small the stake may be now many people are like that elephant
now many people are like that elephant because they allow themselves to think
because they allow themselves to think continually of the reasons why not
continually of the reasons why not rather than the reasons why
rather than the reasons why it seems that as soon as you begin to
it seems that as soon as you begin to concentrate on how you can achieve a
concentrate on how you can achieve a goal rather than whether or not it's
goal rather than whether or not it's achievable your mind automatically
achievable your mind automatically becomes positive and all your energies
becomes positive and all your energies become channeled toward achievement and
become channeled toward achievement and happiness rather than toward failure and
happiness rather than toward failure and frustration
frustration the fifth law of happiness is the law of
the fifth law of happiness is the law of expression which states that whatever is
expression which states that whatever is expressed is impressed and whatever is
expressed is impressed and whatever is impressed is expressed
impressed is expressed whatever you say either to yourself or
whatever you say either to yourself or out loud is impressed into your
out loud is impressed into your subconscious mind and whatever is
subconscious mind and whatever is impressed into your subconscious mind
impressed into your subconscious mind will ultimately be expressed in your
will ultimately be expressed in your thoughts your feelings your conversation
thoughts your feelings your conversation and your actions
and your actions the more emotion that you use to express
the more emotion that you use to express any thought or idea the more deeply it
any thought or idea the more deeply it will be impressed into your subconscious
will be impressed into your subconscious mind
mind and the more rapidly it will be
and the more rapidly it will be re-expressed in your life
re-expressed in your life whatever you say with conviction
whatever you say with conviction triggers thoughts ideas and actions
triggers thoughts ideas and actions consistent with those words so be sure
consistent with those words so be sure to pick your words carefully
to pick your words carefully when you think of a challenge or a goal
when you think of a challenge or a goal and you repeat to yourself the words i
and you repeat to yourself the words i can do it i can do it i can do it
can do it i can do it i can do it you trigger all kinds of feelings and
you trigger all kinds of feelings and actions that propel you forward toward
actions that propel you forward toward doing the things that will enable you to
doing the things that will enable you to achieve the goal
achieve the goal the sixth law of happiness is the law of
the sixth law of happiness is the law of reversibility
reversibility it states that just as your feelings
it states that just as your feelings determine your actions your actions also
determine your actions your actions also determine your feelings
determine your feelings this is a remarkable and powerful law
this is a remarkable and powerful law that says that even if you don't feel a
that says that even if you don't feel a particular way such as self-confident or
particular way such as self-confident or happy if you act as if or pretend that
happy if you act as if or pretend that you have the feelings already the
you have the feelings already the actions themselves will have a backflow
actions themselves will have a backflow effect and generate the emotions
effect and generate the emotions consistent with them
consistent with them when you act in a certain way the
when you act in a certain way the actions themselves trigger thoughts
actions themselves trigger thoughts images feelings and attitudes that are
images feelings and attitudes that are consistent with those actions
consistent with those actions you can in effect control much of the
you can in effect control much of the content of your mental and emotional
content of your mental and emotional life simply by moving your body in such
life simply by moving your body in such a way that it's consistent with the way
a way that it's consistent with the way in which you wish to think and feel
in which you wish to think and feel the seventh law of happiness is the law
the seventh law of happiness is the law of visualization which states that ideas
of visualization which states that ideas and images tend to awaken emotions and
and images tend to awaken emotions and feelings that correspond to them
feelings that correspond to them when you create clear mental pictures of
when you create clear mental pictures of yourself as happy positive and
yourself as happy positive and optimistic
optimistic these mental pictures will trigger
these mental pictures will trigger feelings and actions that actually lead
feelings and actions that actually lead to your being happy positive and
to your being happy positive and optimistic
optimistic one of the most helpful exercises that
one of the most helpful exercises that you can engage in is to think of a time
you can engage in is to think of a time in your life when you've been extremely
in your life when you've been extremely happy and to replay that experience on
happy and to replay that experience on the screen of your mind as though you
the screen of your mind as though you are running a movie projector
are running a movie projector put yourself right into the picture and
put yourself right into the picture and re-experience or
re-experience or get the feelings that go with it
get the feelings that go with it you can actually make yourself happy by
you can actually make yourself happy by dwelling
dwelling upon previous experiences when you've
upon previous experiences when you've been happy
been happy the eighth law of happiness is the law
the eighth law of happiness is the law of practice
of practice this law states that whatever you
this law states that whatever you practice and repeat often enough
practice and repeat often enough becomes a new habit
becomes a new habit just as you learn to drive a car or type
just as you learn to drive a car or type on a typewriter or ride a bicycle
on a typewriter or ride a bicycle you can train yourself to be a
you can train yourself to be a predominantly happy and optimistic
predominantly happy and optimistic person by walking talking and acting
person by walking talking and acting as though you were happy already
as though you were happy already you begin to become happy when you
you begin to become happy when you decide for yourself the combination of
decide for yourself the combination of ingredients in your life that will make
ingredients in your life that will make you happy and then start to move toward
you happy and then start to move toward them
them simultaneously you need to determine the
simultaneously you need to determine the things in your life that are depriving
things in your life that are depriving you of happiness and begin to remove
you of happiness and begin to remove them
them happiness is an active state or
happiness is an active state or condition that you experience when
condition that you experience when you're becoming everything that you're
you're becoming everything that you're capable of becoming and you're moving
capable of becoming and you're moving toward the realization of your full
toward the realization of your full potential
potential it's only when you're doing something
it's only when you're doing something that's important to you something that
that's important to you something that causes you to strive and stretch towards
causes you to strive and stretch towards your limits that you experience joy and
your limits that you experience joy and satisfaction
satisfaction underlying it all is the law of
underlying it all is the law of correspondence which says that you will
correspondence which says that you will be happy on the outside to the degree to
be happy on the outside to the degree to which you are happy on the inside
which you are happy on the inside the more true you are to yourself and
the more true you are to yourself and the more consistently you live in
the more consistently you live in harmony with your highest
harmony with your highest values and aspirations
values and aspirations the happier a person you will be
your ability to enter into and maintain long-term intimate loving relationships
long-term intimate loving relationships with other people and especially with
with other people and especially with one other person
one other person tells how fully developed you really are
tells how fully developed you really are in the last session i talked about
in the last session i talked about abraham maslow who spent many years
abraham maslow who spent many years studying the most happy and successful
studying the most happy and successful men and women in our society
men and women in our society he found that one of the qualities of
he found that one of the qualities of these self-actualizing people was that
these self-actualizing people was that they were able to enter into and build
they were able to enter into and build strong relationships that endured for
strong relationships that endured for many years
many years often a lifetime
often a lifetime now everything that you've become as a
now everything that you've become as a human being and as an individual
human being and as an individual personality is captured in the quality
personality is captured in the quality of your interactions with other people
of your interactions with other people fully eighty-five percent of the
fully eighty-five percent of the happiness you enjoy in life will come
happiness you enjoy in life will come from your relationships with others
from your relationships with others unfortunately
unfortunately this also means that fully eighty-five
this also means that fully eighty-five percent of your unhappiness and
percent of your unhappiness and frustration will come from problems that
frustration will come from problems that you have with other people especially
you have with other people especially the people who are closest to you
the people who are closest to you it's therefore in your best interest to
it's therefore in your best interest to learn everything you possibly can about
learn everything you possibly can about forming and enjoying loving
forming and enjoying loving relationships with other people
relationships with other people there are a variety of different kinds
there are a variety of different kinds of loves
of loves much of what we have learned about love
much of what we have learned about love is both partially true and partially
is both partially true and partially false and it's usually somewhat
false and it's usually somewhat confusing
confusing sometimes the concept of love gets
sometimes the concept of love gets bundled up with romantic love or
bundled up with romantic love or self-love or love of mankind love of
self-love or love of mankind love of animals or nature or beauty or truth or
animals or nature or beauty or truth or something else
something else for each person the scope and quality of
for each person the scope and quality of love he or she needs and requires to be
love he or she needs and requires to be fully happy and fulfilled is different
fully happy and fulfilled is different just as plants strive upward toward the
just as plants strive upward toward the light of the sun
light of the sun you as a human being strive continually
you as a human being strive continually toward the major sources of love in your
toward the major sources of love in your life
life it's been said that everything we do is
it's been said that everything we do is either to get love or to compensate for
either to get love or to compensate for the lack of love
the lack of love virtually all personality problems can
virtually all personality problems can be traced back to
be traced back to love withheld in early childhood
love withheld in early childhood most adults spend the second 50 years of
most adults spend the second 50 years of their life getting over the experiences
their life getting over the experiences of the first five years most of which
of the first five years most of which were associated with inappropriate
were associated with inappropriate mixtures of love and punishment and
mixtures of love and punishment and criticism and negativity
criticism and negativity we know that the adult personality is
we know that the adult personality is healthy to the degree to which the child
healthy to the degree to which the child received a high quality and quantity of
received a high quality and quantity of love during the first three to five
love during the first three to five years of his or her life
years of his or her life if for any reason there was a breakdown
if for any reason there was a breakdown of love at this time
of love at this time the adult will manifest these shortages
the adult will manifest these shortages and deficiencies in his or her
and deficiencies in his or her relationships with other members of the
relationships with other members of the opposite sex when they grow up
opposite sex when they grow up dr morris massey says that as adults we
dr morris massey says that as adults we seek for what we most felt we were
seek for what we most felt we were deprived of as children
deprived of as children we're internally driven below our
we're internally driven below our subconscious levels to attempt to fill a
subconscious levels to attempt to fill a void or gap that arose in us in early
void or gap that arose in us in early childhood and which we were almost
childhood and which we were almost completely unaware of
completely unaware of as adults in all of our love
as adults in all of our love relationships we are oriented toward
relationships we are oriented toward completion and fulfillment of some kind
completion and fulfillment of some kind toward satisfying deep unconscious needs
toward satisfying deep unconscious needs that arose during our formative years
that arose during our formative years the brilliant harvard psychologist and
the brilliant harvard psychologist and sociologist paterum sorokin studied the
sociologist paterum sorokin studied the phenomenon of love extensively and wrote
phenomenon of love extensively and wrote about it in his book the ways and powers
about it in his book the ways and powers of love
of love in this marvelous work one of the most
in this marvelous work one of the most complete treatments of the subject of
complete treatments of the subject of love ever written
love ever written sorokin describes every form of love and
sorokin describes every form of love and the different qualities that are
the different qualities that are manifested in the practice of love
manifested in the practice of love for example he talks about the breadth
for example he talks about the breadth of love how many people a person can
of love how many people a person can love at one time
love at one time he refers to the intensity of love or
he refers to the intensity of love or how deeply one can feel about another
how deeply one can feel about another individual
individual he talks about the duration of love the
he talks about the duration of love the specificity of love the variability of
specificity of love the variability of love the stability or enduring power of
love the stability or enduring power of love and several other aspects of the
love and several other aspects of the subject
subject what he makes clear is that love is not
what he makes clear is that love is not a simple thing at all
a simple thing at all and because it's so important it's well
and because it's so important it's well worth our while to learn as much about
worth our while to learn as much about it as we can
it as we can sometimes just a little knowledge of the
sometimes just a little knowledge of the subject of love can have a wonderfully
subject of love can have a wonderfully positive effect on our relationships
positive effect on our relationships with others and can give us the tools
with others and can give us the tools that we need to be more happy with other
that we need to be more happy with other people
people dr edmund opitz a teacher of mine many
dr edmund opitz a teacher of mine many years ago
years ago once observed that you can take almost
once observed that you can take almost anything to excess except love
anything to excess except love he said that love is the one thing in
he said that love is the one thing in the world that there can never be too
the world that there can never be too much of
much of i never forgot those words and over the
i never forgot those words and over the years i found that they are as true as
years i found that they are as true as anything can be
anything can be perhaps the most wonderful thing about
perhaps the most wonderful thing about love
love is that the more you have of it for
is that the more you have of it for others the more of it you have for
others the more of it you have for yourself
yourself the more often that you tell another
the more often that you tell another person that you love him or her the more
person that you love him or her the more love you have for yourself
love you have for yourself love only grows by sharing
love only grows by sharing the more of it you give away the more of
the more of it you give away the more of it you have
it you have and the converse is unfortunately true
and the converse is unfortunately true the less of it you give away the less of
the less of it you give away the less of it you have for yourself
it you have for yourself which goes to explain a lot of
which goes to explain a lot of unhappiness
unhappiness many parents would agree that one of the
many parents would agree that one of the great benefits and blessings of having
great benefits and blessings of having children is they teach us more about
children is they teach us more about unselfish unconditional love than we
unselfish unconditional love than we could ever learn without them
could ever learn without them children in their formative years are
children in their formative years are like sponges for love they can absorb
like sponges for love they can absorb love like the desert sand can absorb
love like the desert sand can absorb water they need love like roses need
water they need love like roses need rain they can take all the love you have
rain they can take all the love you have to give them and more besides
to give them and more besides fortunately we as human beings are
fortunately we as human beings are designed not only to seek love and to
designed not only to seek love and to receive love but to give love to others
receive love but to give love to others and there's no time that we feel more
and there's no time that we feel more fully alive and more fully human than
fully alive and more fully human than when we are pouring out our love to
when we are pouring out our love to another person
another person this is why children can enrich their
this is why children can enrich their parents out of all proportion to the
parents out of all proportion to the time and money and effort they spend in
time and money and effort they spend in raising them to adulthood
raising them to adulthood in this session however i want to talk
in this session however i want to talk specifically about the love between men
specifically about the love between men and women and how it can be improved and
and women and how it can be improved and enhanced
enhanced there are eleven laws that explain much
there are eleven laws that explain much of what happens between two people and a
of what happens between two people and a knowledge of these laws can help you to
knowledge of these laws can help you to be more effective in your most important
be more effective in your most important relationship
relationship the first law of love and relationships
the first law of love and relationships is the law of commitment
is the law of commitment this law says that the level of
this law says that the level of commitment is the critical element that
commitment is the critical element that determines the long-term health and
determines the long-term health and happiness of a relationship
happiness of a relationship in study after study men and women who
in study after study men and women who were found to be the happiest with each
were found to be the happiest with each other over long periods of time were
other over long periods of time were those who were totally committed to each
those who were totally committed to each other and to their relationship
other and to their relationship they never considered or discussed the
they never considered or discussed the possibility of the relationship not
possibility of the relationship not working out
working out it never entered their minds whether
it never entered their minds whether this relationship would last
this relationship would last it was an accepted fact without question
it was an accepted fact without question or comment the relationship was there to
or comment the relationship was there to stay
stay one of the great difficulties in
one of the great difficulties in relationships is what is called the go
relationships is what is called the go halfway mentality
halfway mentality this mentality arises when one or both
this mentality arises when one or both parties are not willing to make a total
parties are not willing to make a total 100 percent commitment to the
100 percent commitment to the relationship
relationship one or both of them is hedging their
one or both of them is hedging their bets and they're playing it safe
bets and they're playing it safe this lack of commitment triggers
this lack of commitment triggers deep-seated fears of rejection and
deep-seated fears of rejection and non-acceptance and leads to a tremendous
non-acceptance and leads to a tremendous amount of unhappiness and tension in the
amount of unhappiness and tension in the relationship
relationship one of the external manifestations of
one of the external manifestations of this failure to make a total commitment
this failure to make a total commitment is the habit of dividing expenses or
is the habit of dividing expenses or keeping separate bank accounts
keeping separate bank accounts sometimes people take turns buying
sometimes people take turns buying things for the house or apartment and
things for the house or apartment and keep a careful list of who bought what
keep a careful list of who bought what i know a couple who lived together for
i know a couple who lived together for 11 years but never got around to getting
11 years but never got around to getting married he bought the pots and pans she
married he bought the pots and pans she bought the dishes
bought the dishes he bought the couch she bought the
he bought the couch she bought the chairs
chairs he bought the stereo she bought the
he bought the stereo she bought the television on every single item there
television on every single item there was a little sticker with the initials
was a little sticker with the initials of the person who had paid for it
of the person who had paid for it at the end of eleven years they had a
at the end of eleven years they had a quarrel and decided to go their separate
quarrel and decided to go their separate ways
ways they were able to divide up their
they were able to divide up their accumulated possessions in less than two
accumulated possessions in less than two hours to go off in different directions
hours to go off in different directions and never see or have anything to do
and never see or have anything to do with each other again
with each other again because of the lack of commitment that
because of the lack of commitment that entered into the beginning of the
entered into the beginning of the relationship
relationship manifested in a continual division of
manifested in a continual division of property they were mentally preparing to
property they were mentally preparing to go their separate ways from very early
go their separate ways from very early on
on another example of this lack of
another example of this lack of commitment is the pre-nuptial agreement
commitment is the pre-nuptial agreement two parties drop an agreement that in
two parties drop an agreement that in effect specifies how the property will
effect specifies how the property will be divided when the relationship
be divided when the relationship collapses
collapses the desire for or the insistence upon a
the desire for or the insistence upon a prenuptial agreement
prenuptial agreement usually means that one or both parties
usually means that one or both parties don't place very much faith in the
don't place very much faith in the long-term strength of the marriage
long-term strength of the marriage the second law of love and relationships
the second law of love and relationships is the law of value
is the law of value it says that love is a response to value
it says that love is a response to value you always love in another which you
you always love in another which you most admire and respect in a human being
most admire and respect in a human being this means that love is not blind
this means that love is not blind you tend to be attracted to a person who
you tend to be attracted to a person who you think has qualities that you feel
you think has qualities that you feel are ideal in another person
are ideal in another person the first part of the law of value says
the first part of the law of value says that when you love and respect equality
that when you love and respect equality or virtue you tend to love and respect
or virtue you tend to love and respect another person who appears to have it
another person who appears to have it this facet of love can apply to your
this facet of love can apply to your feelings toward any other human being
feelings toward any other human being male or female young or old
male or female young or old we all have an unconscious tendency to
we all have an unconscious tendency to give our love and commitment to those
give our love and commitment to those people who we feel are most
people who we feel are most representative of what we value most in
representative of what we value most in others
others part two of this law says that in a love
part two of this law says that in a love relationship you tend to love and be
relationship you tend to love and be more compatible with another who
more compatible with another who possesses qualities you admire
possesses qualities you admire and which are complementary to your own
and which are complementary to your own like everyone you're composed of
like everyone you're composed of strengths and weaknesses most people
strengths and weaknesses most people have more weaknesses than they have
have more weaknesses than they have strengths and since you live with
strengths and since you live with yourself all the time you're painfully
yourself all the time you're painfully aware of the deficiencies that you might
aware of the deficiencies that you might have in your own character and
have in your own character and personality
personality you also have an innate urge for
you also have an innate urge for completion and wholeness so you tend to
completion and wholeness so you tend to seek out a member of the opposite sex
seek out a member of the opposite sex who has strengths where you have
who has strengths where you have weaknesses
weaknesses part three of this law says that men and
part three of this law says that men and women seek balance and completeness by
women seek balance and completeness by finding another who appears to be a
finding another who appears to be a compliment of themselves
compliment of themselves one of the things we know is that when
one of the things we know is that when two people are ideal for each other
two people are ideal for each other their personalities balance each other
their personalities balance each other when blended together these two people
when blended together these two people actually form a single complete person
actually form a single complete person he is gregarious and outgoing she is
he is gregarious and outgoing she is quiet and reserved
quiet and reserved he is casual and less concerned with
he is casual and less concerned with facts and details she is fastidious and
facts and details she is fastidious and attentive
attentive she is a great implementer while he is a
she is a great implementer while he is a great planner
great planner he gets upset at silly things while she
he gets upset at silly things while she remains calm and stable in the midst of
remains calm and stable in the midst of chaos
chaos these two people balance each other and
these two people balance each other and combine to make an ideal couple
combine to make an ideal couple the third law of relationships is the
the third law of relationships is the law of compatibility which says
law of compatibility which says people are more compatible together when
people are more compatible together when they are
they are most similar in beliefs attitudes
most similar in beliefs attitudes values and ambitions
values and ambitions compatibility is one of the most
compatibility is one of the most important of all factors in determining
important of all factors in determining the long-term health and happiness of
the long-term health and happiness of two people in a relationship
two people in a relationship long-term happiness depends upon a high
long-term happiness depends upon a high degree of harmony and peace which is
degree of harmony and peace which is only possible if the essential parts of
only possible if the essential parts of life are largely resolved and beyond
life are largely resolved and beyond argument
argument for example the number one cause of
for example the number one cause of marital breakdown in america today is
marital breakdown in america today is disagreements over money
disagreements over money if two people have two different
if two people have two different attitudes toward earning spending and
attitudes toward earning spending and saving money it'll lead to continuous
saving money it'll lead to continuous clashes it's only when two people have
clashes it's only when two people have the same attitudes toward money that it
the same attitudes toward money that it doesn't become a source of argument or
doesn't become a source of argument or disagreement
disagreement the same principle applies to children
the same principle applies to children it's essential for long-term
it's essential for long-term compatibility that both people have very
compatibility that both people have very much the same attitudes toward children
much the same attitudes toward children both in having them and bringing them up
both in having them and bringing them up another area where couples need to be
another area where couples need to be compatible is in the way they spend
compatible is in the way they spend their leisure time if he likes the beach
their leisure time if he likes the beach and she likes the mountains or he likes
and she likes the mountains or he likes to stay home and she likes to go out and
to stay home and she likes to go out and they can't find ways to compromise
they can't find ways to compromise they'll be clashing constantly
they'll be clashing constantly many people are initially drawn together
many people are initially drawn together because of mutual attraction but it's
because of mutual attraction but it's the compatibility or lack of
the compatibility or lack of compatibility with regard to the key
compatibility with regard to the key values and activities of day-to-day life
values and activities of day-to-day life that will determine the long-term love
that will determine the long-term love and strength of the relationship
and strength of the relationship sometimes couples grow apart and become
sometimes couples grow apart and become incompatible
incompatible in my seminars i point out that this is
in my seminars i point out that this is a major cause of stress anxiety
a major cause of stress anxiety unhappiness and even psychosomatic
unhappiness and even psychosomatic illness
illness when incompatibility sets in the very
when incompatibility sets in the very first thing that stops is the laughter
first thing that stops is the laughter between the two people
between the two people soon after that
soon after that the conversation
the conversation dwindles away
dwindles away if they have children they'll find that
if they have children they'll find that they have very little else to talk about
they have very little else to talk about except the children and beyond that they
except the children and beyond that they really have nothing to say to each other
really have nothing to say to each other they have become
they have become incompatible
incompatible the very best thing to do if you find
the very best thing to do if you find that you're growing apart is to make
that you're growing apart is to make every effort to build a new bridge of
every effort to build a new bridge of compatibility
compatibility go for a long drive take a trip even a
go for a long drive take a trip even a long vacation together and do everything
long vacation together and do everything possible to develop new areas of
possible to develop new areas of interest and understanding
interest and understanding there are also excellent weekend
there are also excellent weekend seminars which couples can attend to
seminars which couples can attend to rebuild and reaffirm their relationships
rebuild and reaffirm their relationships there are books that you can read and
there are books that you can read and there's counseling that you can seek out
there's counseling that you can seek out however
however if the incompatibility cannot be
if the incompatibility cannot be overcome
overcome and you find that you're no longer happy
and you find that you're no longer happy with the other person
with the other person you no longer have anything in common
you no longer have anything in common then you have to make some hard
then you have to make some hard decisions
decisions one of the things that holds people back
one of the things that holds people back from dissolving a marriage that's no
from dissolving a marriage that's no longer working is because very often
longer working is because very often they're overly concerned about what they
they're overly concerned about what they think other people might say or think
think other people might say or think especially other members of their
especially other members of their families
families my experience however in dealing with
my experience however in dealing with thousands of men and women has brought
thousands of men and women has brought me to this simple conclusion
me to this simple conclusion no matter what people say
no matter what people say or what you may think they may say the
or what you may think they may say the truth of the matter is that other people
truth of the matter is that other people really don't think about you
really don't think about you very much at all
very much at all it isn't so much that people don't care
it isn't so much that people don't care it's just that they have so many
it's just that they have so many problems of their own so many unresolved
problems of their own so many unresolved conflicts and difficulties with the
conflicts and difficulties with the people in their lives that they only
people in their lives that they only have a very small portion of their
have a very small portion of their emotional energies to devote to you into
emotional energies to devote to you into your life
your life the bottom line is this
the bottom line is this never stay in an unhappy relationship
never stay in an unhappy relationship because of what you think others might
because of what you think others might say
say with regard to yourself and another
with regard to yourself and another person
person always make your decisions based on what
always make your decisions based on what will make you happy both in the short
will make you happy both in the short term and in the long term
term and in the long term as long as you use your own happiness as
as long as you use your own happiness as your guide for behavior and decision
your guide for behavior and decision making you'll be as right as you
making you'll be as right as you possibly can be in any situation
possibly can be in any situation involving someone else
involving someone else the fourth law of relationships is the
the fourth law of relationships is the law of communication
law of communication this law states that the essence of a
this law states that the essence of a happy relationship is good communication
happy relationship is good communication but that there are differences in the
but that there are differences in the way men and women communicate
way men and women communicate in order to communicate well it's
in order to communicate well it's essential that both parties are aware of
essential that both parties are aware of the differences in communication styles
the differences in communication styles and the differences in both meaning and
and the differences in both meaning and intention that these styles display
intention that these styles display the first part of this law is that men
the first part of this law is that men are direct women are indirect
are direct women are indirect now there are always exceptions to any
now there are always exceptions to any rules that we attempt to apply to human
rules that we attempt to apply to human beings but this one is generally true
beings but this one is generally true men tend to be direct straightforward
men tend to be direct straightforward and to the point
and to the point women on the other hand tend to be
women on the other hand tend to be indirect around about and more subtle
indirect around about and more subtle men tend to resolve differences of
men tend to resolve differences of opinion by speaking louder and faster
opinion by speaking louder and faster while women attempt to resolve
while women attempt to resolve disagreements by finding common ground
disagreements by finding common ground and approaching the situation with
and approaching the situation with greater sensitivity
greater sensitivity the second part of the law of
the second part of the law of communication says simply that never
communication says simply that never assume that you understand what the
assume that you understand what the other is thinking and feeling
other is thinking and feeling if you have any doubt at all you are
if you have any doubt at all you are probably completely wrong about what's
probably completely wrong about what's going on
going on the only way to assure a high quality of
the only way to assure a high quality of communication between two people is to
communication between two people is to first of all seek to understand the
first of all seek to understand the other person before you try to get the
other person before you try to get the other person to understand you
other person to understand you the more you concentrate on
the more you concentrate on understanding the better will be the
understanding the better will be the quality of your communication
quality of your communication and the stronger will be your
and the stronger will be your relationship
relationship the fifth law of relationships is the
the fifth law of relationships is the law of attention
law of attention this law says that you always pay
this law says that you always pay attention to what you most love and
attention to what you most love and value
value you're always attracted to the kind of
you're always attracted to the kind of person that you find most valuable and
person that you find most valuable and worthwhile
worthwhile as your attention goes
as your attention goes so goes your life
so goes your life life is merely the study of attention
life is merely the study of attention what attracts your attention in all
what attracts your attention in all areas is a very good indication of who
areas is a very good indication of who you are and what is of the greatest
you are and what is of the greatest interest to you
interest to you your attention and what holds it
your attention and what holds it can often lead you to the right career
can often lead you to the right career the right people
the right people and the right relationship
and the right relationship the first part of the law of attention
the first part of the law of attention says
says you tend to ignore
you tend to ignore what you don't value
what you don't value you do not pay attention to things that
you do not pay attention to things that you place little value on if you don't
you place little value on if you don't value something at all you'll hardly
value something at all you'll hardly even notice it
even notice it it won't attract you and keep you
it won't attract you and keep you interested of course what we mean here
interested of course what we mean here is that if you ignore another person or
is that if you ignore another person or even if you seem to ignore another
even if you seem to ignore another person
person you send a message to that other person
you send a message to that other person that you don't consider him or her to be
that you don't consider him or her to be of value
of value since we often make the mistake of
since we often make the mistake of inadvertently ignoring the people we
inadvertently ignoring the people we most love we need to be aware that this
most love we need to be aware that this attitude on our part even accidentally
attitude on our part even accidentally can hurt other people's feelings and
can hurt other people's feelings and lead to problems in our relationships
lead to problems in our relationships part two of the law of attention says
part two of the law of attention says that
that sincere attentive listening to another
sincere attentive listening to another is the highest form of love and
is the highest form of love and sensitivity
sensitivity patient uninterrupted listening is one
patient uninterrupted listening is one of the highest forms of flattery
of the highest forms of flattery it's the way that you tell the other
it's the way that you tell the other person that you really consider him or
person that you really consider him or her to be important and to be of value
her to be important and to be of value to you
to you the third part of the law of attention
the third part of the law of attention is that listening builds trust
is that listening builds trust which is the foundation of all lasting
which is the foundation of all lasting relationships
relationships listening is the essence of excellent
listening is the essence of excellent communications and it's the one activity
communications and it's the one activity that builds the trust that assures the
that builds the trust that assures the long-term strength and well-being of the
long-term strength and well-being of the relationship between two people
relationship between two people whenever you listen to another person
whenever you listen to another person you tell that person in no uncertain
you tell that person in no uncertain terms how much you value him or her
terms how much you value him or her and how important what he or she is
and how important what he or she is thinking or saying is to you
thinking or saying is to you the sixth law of love and relationships
the sixth law of love and relationships is the law of self-esteem
is the law of self-esteem it's similar to the principle of love in
it's similar to the principle of love in that self-esteem refers to self-love
that self-esteem refers to self-love the law says that everything you do in
the law says that everything you do in life is to either increase or protect
life is to either increase or protect your self-esteem and sense of personal
your self-esteem and sense of personal value and worth
value and worth how much you like and value yourself how
how much you like and value yourself how much you accept yourself as a worthwhile
much you accept yourself as a worthwhile and important human being goes to the
and important human being goes to the very core of your personality
very core of your personality you are always most attracted to people
you are always most attracted to people in situations that build and reinforce
in situations that build and reinforce your sense of personal value
your sense of personal value simultaneously you tend to be repelled
simultaneously you tend to be repelled by people in situations that threaten or
by people in situations that threaten or harm your self-esteem
harm your self-esteem part one of this law says
part one of this law says that you will tend to be happiest with a
that you will tend to be happiest with a person who makes you feel good about
person who makes you feel good about yourself
yourself in this sense love is perfectly selfish
in this sense love is perfectly selfish you pick out another person to love
you pick out another person to love because when you're with that person you
because when you're with that person you feel the best about yourself
feel the best about yourself you feel happy
you feel happy in fact it's very common for people to
in fact it's very common for people to say that when they've met the right
say that when they've met the right person
person that they have met their best friend
that they have met their best friend there's nobody that they enjoy being
there's nobody that they enjoy being with and talking to and going places
with and talking to and going places with more than that person
with more than that person the second part of the law of
the second part of the law of self-esteem says that everything you do
self-esteem says that everything you do to raise the self-esteem of another
to raise the self-esteem of another causes your own self-esteem to go up and
causes your own self-esteem to go up and makes you like yourself more
makes you like yourself more one of the wonderful things about doing
one of the wonderful things about doing kindnesses for another person
kindnesses for another person is that everything that you do which
is that everything that you do which makes someone else feel better about
makes someone else feel better about themselves causes you to feel better
themselves causes you to feel better about yourself
about yourself this is an example of the law of
this is an example of the law of correspondence in action
correspondence in action your outer world tends to be a
your outer world tends to be a reflection of your inner world your
reflection of your inner world your external life tends to be a mirror image
external life tends to be a mirror image of your internal life
of your internal life everything you do to make other people
everything you do to make other people feel better about themselves
feel better about themselves reflects back on you and makes you feel
reflects back on you and makes you feel better about yourself
better about yourself the third part of the law of self-esteem
the third part of the law of self-esteem could be called carnegie's corollary
could be called carnegie's corollary from dale carnegie who first wrote it in
from dale carnegie who first wrote it in his book how to win friends and
his book how to win friends and influence people
influence people he wrote that you can make more friends
he wrote that you can make more friends in a couple of days by becoming
in a couple of days by becoming genuinely interested in others then you
genuinely interested in others then you could in a year trying to get others
could in a year trying to get others interested in you
interested in you this is one of the keys to truly
this is one of the keys to truly successful relationships
successful relationships the seventh law of love and
the seventh law of love and relationships is the law of indirect
relationships is the law of indirect effort it says that you get almost
effort it says that you get almost everything in your relationships with
everything in your relationships with others more indirectly than directly
others more indirectly than directly this is true between men and women
this is true between men and women between parents and children between
between parents and children between bosses and employees
bosses and employees and between sales people and customers
and between sales people and customers the more you approach your relationships
the more you approach your relationships indirectly the more likely you are to be
indirectly the more likely you are to be successful
successful one of the reasons why women are rising
one of the reasons why women are rising to the top of many fields today is
to the top of many fields today is because they know and practice this law
because they know and practice this law intuitively in their interactions with
intuitively in their interactions with others
others for example
for example the first illustration of this law says
the first illustration of this law says that the more you appreciate and thank
that the more you appreciate and thank others
others the more appreciative they will be of
the more appreciative they will be of you
you it says that if you want people to
it says that if you want people to appreciate you
appreciate you you should appreciate them first
you should appreciate them first if you want people to do large things
if you want people to do large things for you you should thank them profusely
for you you should thank them profusely when they do small things for you
when they do small things for you when you develop an attitude of
when you develop an attitude of gratitude and appear genuinely thankful
gratitude and appear genuinely thankful to everyone for everything they do
to everyone for everything they do you'll be astonished at how warm and
you'll be astonished at how warm and helpful and friendly they'll be in the
helpful and friendly they'll be in the future
future another illustration or example of the
another illustration or example of the law of indirect effort is that the
law of indirect effort is that the fastest way to impress another person is
fastest way to impress another person is to be impressed by him or her
to be impressed by him or her the direct way of impressing another is
the direct way of impressing another is to try to overwhelm that person with
to try to overwhelm that person with stories and examples of what an amazing
stories and examples of what an amazing person you are
person you are the indirect way to impress another
the indirect way to impress another however is to be impressed by the other
however is to be impressed by the other person first
person first the more impressed you are with another
the more impressed you are with another the more impressed he or she will be
the more impressed he or she will be with you and your judgment
with you and your judgment a further example of the law of indirect
a further example of the law of indirect effort says that
effort says that if you want to gain the approval and
if you want to gain the approval and respect of others
respect of others the surest way is to give them your
the surest way is to give them your approval and respect in advance
approval and respect in advance most men and women who are successful
most men and women who are successful with members of the opposite sex have
with members of the opposite sex have found that it's very easy to cause
found that it's very easy to cause another person to be fascinated with you
another person to be fascinated with you if you simply become very interested in
if you simply become very interested in and fascinated with the other person in
and fascinated with the other person in advance
advance you tend to set up a force field of
you tend to set up a force field of human magnetism that draws people to you
human magnetism that draws people to you like moths are drawn to a candle
like moths are drawn to a candle a man or woman with no extraordinary
a man or woman with no extraordinary accomplishments can be very effective in
accomplishments can be very effective in dealing with people in a social
dealing with people in a social situation simply by asking questions
situation simply by asking questions listening intently and being sincerely
listening intently and being sincerely appreciative of the other person
appreciative of the other person the eighth law is the law of reverse
the eighth law is the law of reverse effort which says that the harder you
effort which says that the harder you don't try in a relationship the easier
don't try in a relationship the easier it tends to be
it tends to be you are most effective in your
you are most effective in your relationships with others when you rise
relationships with others when you rise above the urge to try harder to make the
above the urge to try harder to make the relationship better
relationship better the more relaxed and accepting you are
the more relaxed and accepting you are of the relationship the smoother and
of the relationship the smoother and easier it is for both of you
easier it is for both of you the second comment on the law of reverse
the second comment on the law of reverse effort is very important
effort is very important it says every relationship has its own
it says every relationship has its own timing
timing if you try to hurry it up or slow it
if you try to hurry it up or slow it down
down you merely create resistance and often a
you merely create resistance and often a crisis
crisis when two people meet either the timing
when two people meet either the timing is right or it's not
is right or it's not at every stage of a relationship there's
at every stage of a relationship there's a correct time for every major decision
a correct time for every major decision and timing is everything
and timing is everything research shows that you reach a natural
research shows that you reach a natural stage in your thinking when you're ready
stage in your thinking when you're ready to settle down with one person
to settle down with one person whoever you meet at that point in your
whoever you meet at that point in your life will assuming compatibility be the
life will assuming compatibility be the person that you will marry
person that you will marry at the same time if you're going through
at the same time if you're going through a turbulent period in your inner life
a turbulent period in your inner life you'll tend to find yourself in a
you'll tend to find yourself in a turbulent relationship
turbulent relationship you'll tend to attract the kind of
you'll tend to attract the kind of person that mirrors your internal
person that mirrors your internal psychological state the most important
psychological state the most important part of the concept of timing is that
part of the concept of timing is that you can't speed things up or slow them
you can't speed things up or slow them down when they involve another person
down when they involve another person often people will meet go out on a date
often people will meet go out on a date and find that they have nothing in
and find that they have nothing in common
common five years later they'll meet again fall
five years later they'll meet again fall in love get married and live happily for
in love get married and live happily for the rest of their lives
the rest of their lives it's all a matter of timing
it's all a matter of timing the third comment on the law of reverse
the third comment on the law of reverse effort simply says that
effort simply says that sometimes the very best thing to do in a
sometimes the very best thing to do in a difficult situation with another person
difficult situation with another person is the opposite of your natural tendency
is the opposite of your natural tendency if you feel like being angry and
if you feel like being angry and impatient sometimes the very best thing
impatient sometimes the very best thing to do is to be kind and understanding
to do is to be kind and understanding if you feel like trying harder
if you feel like trying harder sometimes the very best thing to do is
sometimes the very best thing to do is to relax and let things unfold naturally
to relax and let things unfold naturally if you feel like speaking up and
if you feel like speaking up and counter-attacking in an argument
counter-attacking in an argument sometimes the very best thing to do is
sometimes the very best thing to do is to remain silent and listen patiently
to remain silent and listen patiently until the other person has vented his or
until the other person has vented his or her frustrations
her frustrations the eighth law is the law of control as
the eighth law is the law of control as it applies to relationships
it applies to relationships in this case it says
in this case it says you are happy in a relationship to the
you are happy in a relationship to the degree to which you feel that you have a
degree to which you feel that you have a sense of control over what is happening
sense of control over what is happening this is one of the most important single
this is one of the most important single principles of happiness and mental
principles of happiness and mental well-being
well-being you need to feel that your primary
you need to feel that your primary relationship is largely self-determined
relationship is largely self-determined and is something that you can change and
and is something that you can change and affect
affect if you feel that you have too much
if you feel that you have too much control or too little control in a
control or too little control in a relationship
relationship both conditions will lead to problems
both conditions will lead to problems and unhappiness for both parties
and unhappiness for both parties part one of the law of control in
part one of the law of control in relationships says that you can increase
relationships says that you can increase your sense of control by asserting
your sense of control by asserting yourself and taking deliberate action to
yourself and taking deliberate action to direct or change the relationship
direct or change the relationship sometimes when you feel out of control
sometimes when you feel out of control in a relationship the very best thing
in a relationship the very best thing for you to do is to step up put both
for you to do is to step up put both your hands on the wheel of the
your hands on the wheel of the relationship and take firm positive
relationship and take firm positive action to change things in such a way
action to change things in such a way that they're more satisfactory to you
that they're more satisfactory to you make a decision
make a decision get on or get off your very act of
get on or get off your very act of decisiveness and your willingness to
decisiveness and your willingness to take action can often resolve the
take action can often resolve the difficulty with another person
difficulty with another person part two of this law of control however
part two of this law of control however says that you can often assert control
says that you can often assert control in a relationship only by walking away
in a relationship only by walking away in fact it's only when you're willing to
in fact it's only when you're willing to walk away from a relationship that
walk away from a relationship that you're in a position to change it if
you're in a position to change it if change is possible
change is possible you must often be willing to end a
you must often be willing to end a relationship to break it up and to put
relationship to break it up and to put it back together on a new basis if
it back together on a new basis if you're going to be able to change it or
you're going to be able to change it or improve it at all
improve it at all either asserting yourself in a
either asserting yourself in a relationship or walking away from the
relationship or walking away from the relationship can be the solution to the
relationship can be the solution to the difficulties that you might be
difficulties that you might be experiencing
experiencing be prepared to try either one in every
be prepared to try either one in every situation
situation the ninth law of love and relationships
the ninth law of love and relationships is the law of identification
is the law of identification it says that you are dominated by
it says that you are dominated by everything and everyone
everything and everyone with which you become identified
with which you become identified everything you take personally and
everything you take personally and identify with emotionally everything
identify with emotionally everything that you become attached to
that you become attached to tends to blur your emotional vision
tends to blur your emotional vision and cause you to be controlled and
and cause you to be controlled and dominated by it especially people in
dominated by it especially people in relationships
relationships the first comment on the law of
the first comment on the law of identification says that you can
identification says that you can dominate direct and control things only
dominate direct and control things only to the degree
to the degree to which you can
to which you can disidentify yourself from them
disidentify yourself from them this means that it's only to the degree
this means that it's only to the degree to which you can stand back and be
to which you can stand back and be objective about your relationship that
objective about your relationship that you can see it clearly and that you can
you can see it clearly and that you can act effectively within it
act effectively within it this is true in virtually every
this is true in virtually every situation in life that's why they say
situation in life that's why they say that a person who acts as his own lawyer
that a person who acts as his own lawyer has a fool for a client
has a fool for a client the second comment on the law of
the second comment on the law of identification says that
identification says that attachment and identification caused you
attachment and identification caused you to lose perspective and control over
to lose perspective and control over your emotions
your emotions the more involved you become the less
the more involved you become the less capable you are of acting in your best
capable you are of acting in your best interests
interests and this brings us to the third comment
and this brings us to the third comment on this law which is the basis of mental
on this law which is the basis of mental maturity and emotional stability
maturity and emotional stability it says
it says detachment and disidentification are the
detachment and disidentification are the keys to peace of mind and happy
keys to peace of mind and happy relationships
relationships they're the keys to self-actualization
they're the keys to self-actualization and personal happiness
and personal happiness you have to be able to put your
you have to be able to put your relationship at arm's length and
relationship at arm's length and evaluate it honestly and objectively in
evaluate it honestly and objectively in order to enjoy it to the fullest
order to enjoy it to the fullest you'll often have situations where the
you'll often have situations where the other person will become very emotional
other person will become very emotional about a particular issue
about a particular issue if you're not careful you'll also get
if you're not careful you'll also get caught up in it becoming very emotional
caught up in it becoming very emotional yourself
yourself the best thing however for you to do is
the best thing however for you to do is to exert a certain degree of self
to exert a certain degree of self mastery and keep yourself
mastery and keep yourself unemotional while the other person is
unemotional while the other person is expressing his or her feelings
expressing his or her feelings in this way you can be of the greatest
in this way you can be of the greatest help to the other person and you can see
help to the other person and you can see things more clearly you can remain more
things more clearly you can remain more calm and detached
calm and detached you can assure a greater level of
you can assure a greater level of happiness for both of you
happiness for both of you the tenth law of love and relationships
the tenth law of love and relationships is one of the most important of all
is one of the most important of all it is the law of forgiveness
it is the law of forgiveness it says you are mentally healthy and
it says you are mentally healthy and mature
mature to the degree to which you can freely
to the degree to which you can freely forgive those who you feel have hurt you
forgive those who you feel have hurt you in some way
in some way this is another way of saying that the
this is another way of saying that the quality of forgiveness is the highest of
quality of forgiveness is the highest of all human qualities
all human qualities and it's the key to both spiritual
and it's the key to both spiritual development and peace of mind
development and peace of mind as human beings we are intensely
as human beings we are intensely egotistical and sensitive about
egotistical and sensitive about ourselves and the way we're treated by
ourselves and the way we're treated by others
others whenever we feel that someone has
whenever we feel that someone has transgressed against us or has hurt us
transgressed against us or has hurt us in any way or taken advantage of us we
in any way or taken advantage of us we become very angry and resentful
become very angry and resentful and
and we tend to hold on to this anger and
we tend to hold on to this anger and resentment far too long thereby making
resentment far too long thereby making ourselves negative and pessimistic and
ourselves negative and pessimistic and ineffective in our relationships with
ineffective in our relationships with other people
other people the solution is for us to freely forgive
the solution is for us to freely forgive everyone whom we feel has ever done
everyone whom we feel has ever done anything to hurt us in any way
anything to hurt us in any way full responsibility for your
full responsibility for your contribution to the situation remember
contribution to the situation remember whatever it was you probably got
whatever it was you probably got yourself into it through your own
yourself into it through your own conduct and your own behavior through
conduct and your own behavior through your own thinking and your own decisions
your own thinking and your own decisions therefore you're at least partially
therefore you're at least partially responsible
responsible however the mark of the superior person
however the mark of the superior person is that he or she accepts the burden of
is that he or she accepts the burden of responsibility and simply
responsibility and simply lets the negativity go
lets the negativity go so forgive others freely and then get on
so forgive others freely and then get on with the rest of your life
with the rest of your life the eleventh and final law of love and
the eleventh and final law of love and relationships is the law of reality
relationships is the law of reality in its simplest terms it says
in its simplest terms it says deal with people as they are
deal with people as they are not as you want them to be
not as you want them to be this law simply suggests that you don't
this law simply suggests that you don't try to change other people or expect
try to change other people or expect them to change for you
them to change for you part one of this law says that
part one of this law says that to be happy you must accept that people
to be happy you must accept that people are what they are and that they're not
are what they are and that they're not likely to change
likely to change this is one of the most mature
this is one of the most mature realizations that you can ever reach
realizations that you can ever reach remember the words of that famous
remember the words of that famous american philosopher flip wilson who
american philosopher flip wilson who when he dressed up as geraldine would
when he dressed up as geraldine would say what you see is what you get
say what you see is what you get whatever another person is
whatever another person is that's what you get
that's what you get people are what they are
people are what they are people take an entire lifetime to become
people take an entire lifetime to become the individuals that you see before you
the individuals that you see before you and they're not likely to change even if
and they're not likely to change even if they want to
they want to in the absence of some traumatic
in the absence of some traumatic emotional experience that causes them to
emotional experience that causes them to seriously question their innermost
seriously question their innermost beliefs and convictions they'll be
beliefs and convictions they'll be pretty much the same indefinitely
pretty much the same indefinitely part two of this law of reality simply
part two of this law of reality simply says that unconditional acceptance of
says that unconditional acceptance of another is the key to a happy
another is the key to a happy relationship
relationship one of the deepest of all subconscious
one of the deepest of all subconscious cravings that you or anyone else has is
cravings that you or anyone else has is the need to feel totally accepted by
the need to feel totally accepted by another person or persons
another person or persons maslow placed this need for acceptance
maslow placed this need for acceptance and belonging as the third basic need in
and belonging as the third basic need in his hierarchy
his hierarchy so instead of criticizing or condemning
so instead of criticizing or condemning others you should just accept them for
others you should just accept them for the remarkable and unique human beings
the remarkable and unique human beings that they are
that they are most people don't realize that when they
most people don't realize that when they criticize another person or suggest that
criticize another person or suggest that another person be different in some way
another person be different in some way they are actually rejecting that other
they are actually rejecting that other person and saying that he or she is not
person and saying that he or she is not good enough for their standards
good enough for their standards this triggers deep down feelings of fear
this triggers deep down feelings of fear inferiority and insecurity
inferiority and insecurity however when you unconditionally accept
however when you unconditionally accept another person and make it clear that no
another person and make it clear that no matter what he does or says
matter what he does or says you approve of him without question the
you approve of him without question the other person will feel terrific about
other person will feel terrific about himself and it will dramatically
himself and it will dramatically increase the quality of your
increase the quality of your relationship with him
relationship with him to close this session on love and
to close this session on love and relationships let me leave you with one
relationships let me leave you with one of the most important of all principles
of the most important of all principles it merely says that you get along with
it merely says that you get along with other people to the degree to which you
other people to the degree to which you get along with yourself
get along with yourself the law of correspondence in this case
the law of correspondence in this case is absolute
is absolute you can never like or love anyone else
you can never like or love anyone else more than you like or love yourself
more than you like or love yourself you can never be more accepting or
you can never be more accepting or understanding of another person than you
understanding of another person than you are of accepting or understanding
are of accepting or understanding yourself
yourself so the very best way to improve the
so the very best way to improve the quality of your loving relationships and
quality of your loving relationships and the quality of your relationships with
the quality of your relationships with everyone for that matter is to go to
everyone for that matter is to go to work on yourself
work on yourself since you're the only person over whom
since you're the only person over whom you have any real control when you go to
you have any real control when you go to work on yourself rather than trying to
work on yourself rather than trying to change other people you can really make
change other people you can really make a difference
a difference and you'll be amazed
and you'll be amazed when you become a better spouse you'll
when you become a better spouse you'll find that your spouse becomes better
find that your spouse becomes better you'll be surprised at how much better
you'll be surprised at how much better your children become when you become
your children become when you become better
better the staff becomes better when the
the staff becomes better when the manager becomes better and the customers
manager becomes better and the customers become better when the salesperson
become better when the salesperson becomes better
becomes better when you go to work on yourself and
when you go to work on yourself and concentrate on becoming a better person
concentrate on becoming a better person through study and practice and
through study and practice and reflection
reflection every part of your human relationships
every part of your human relationships will improve as well
will improve as well you can make yourself into a superior
you can make yourself into a superior human being simply by using all of your
human being simply by using all of your relationships and interactions with
relationships and interactions with others as opportunities to live out the
others as opportunities to live out the most important qualities you want to
most important qualities you want to develop in yourself
develop in yourself you can become any kind of person you
you can become any kind of person you want if you are patient enough
want if you are patient enough and if you persist long enough
the gallup organization completed an extensive survey on 1500 successful
extensive survey on 1500 successful americans some years ago
americans some years ago in which they asked them how they
in which they asked them how they accounted for their great achievements
accounted for their great achievements the reason given by most of them
the reason given by most of them was that they felt that they had higher
was that they felt that they had higher than average levels of common sense
than average levels of common sense they defined common sense as the ability
they defined common sense as the ability to have experiences and to learn from
to have experiences and to learn from those experiences
those experiences and to apply what they had learned to
and to apply what they had learned to subsequent experiences
subsequent experiences as a result they said they'd become
as a result they said they'd become progressively better and eventually
progressively better and eventually leaders in their chosen fields
leaders in their chosen fields common sense was also defined by the
common sense was also defined by the people in the study as the ability to
people in the study as the ability to cut through the clutter and to see the
cut through the clutter and to see the world as it really was
world as it really was they felt that they had a far more
they felt that they had a far more honest and objective appraisal of
honest and objective appraisal of reality than the average person did
reality than the average person did they didn't fool themselves or delude
they didn't fool themselves or delude themselves into wishing and hoping and
themselves into wishing and hoping and seeing things that simply weren't there
seeing things that simply weren't there they didn't ignore the hard facts of
they didn't ignore the hard facts of life but rather they incorporated these
life but rather they incorporated these truths into their world views and made
truths into their world views and made their decisions and actions based upon
their decisions and actions based upon them
them robert ringer in his book million dollar
robert ringer in his book million dollar habits refers to this as the reality
habits refers to this as the reality habit
habit in an earlier session i called it the
in an earlier session i called it the law of reality
law of reality jack welch the president of general
jack welch the president of general electric corporation a 17 billion dollar
electric corporation a 17 billion dollar conglomerate
conglomerate says that it's the most important single
says that it's the most important single principle for success in leadership
principle for success in leadership he also says that in order for you to
he also says that in order for you to succeed in any undertaking
succeed in any undertaking you must be willing to see the world as
you must be willing to see the world as it is
it is not as you wish it were
not as you wish it were robert ringer said the most successful
robert ringer said the most successful men and women in america are those who
men and women in america are those who take the time to really understand the
take the time to really understand the facts of the situation
facts of the situation and then to act upon them without
and then to act upon them without pretending they don't exist or hoping
pretending they don't exist or hoping that they'll go away
that they'll go away one of the finest books written on this
one of the finest books written on this entire subject of reality was entitled
entire subject of reality was entitled the way the world works by jude waniski
the way the world works by jude waniski a writer with the wall street journal at
a writer with the wall street journal at the time and a man who spent many years
the time and a man who spent many years studying economics in america and around
studying economics in america and around the world before concluding that there
the world before concluding that there were certain immutable laws and
were certain immutable laws and principles that repeated themselves over
principles that repeated themselves over and over again throughout all of human
and over again throughout all of human history
history each one of these thinkers and thousands
each one of these thinkers and thousands of others have come to virtually the
of others have come to virtually the same conclusions about the way that
same conclusions about the way that people behave and their suggestions are
people behave and their suggestions are all the same
all the same to be successful you must conform your
to be successful you must conform your life and behaviors to the way the world
life and behaviors to the way the world really is and to the way that people
really is and to the way that people really behave not the way they should
really behave not the way they should behave
behave even abraham maslow the great
even abraham maslow the great psychologist said the ability to be
psychologist said the ability to be absolutely honest and objective about
absolutely honest and objective about life and other people is the mark of the
life and other people is the mark of the fully mature self-actualizing human
fully mature self-actualizing human being
being in this session i'm going to talk about
in this session i'm going to talk about the laws of economics but before you
the laws of economics but before you roll your eyes and begin thinking that
roll your eyes and begin thinking that this is a dry and boring subject i want
this is a dry and boring subject i want to point out that economic behavior is
to point out that economic behavior is simply the study of human psychology and
simply the study of human psychology and human action
human action it's the study of how and why
it's the study of how and why individuals behave as they do and how
individuals behave as they do and how the behaviors of large numbers of these
the behaviors of large numbers of these individuals all motivated the same way
individuals all motivated the same way create the economic conditions and
create the economic conditions and possibilities that you see around you
possibilities that you see around you every day
every day in its simplest sense you must know and
in its simplest sense you must know and understand the laws of economics if you
understand the laws of economics if you wish to achieve financial
wish to achieve financial success in our competitive enterprise
success in our competitive enterprise economy
economy the starting point of learning how to
the starting point of learning how to make and keep more money
make and keep more money is to thoroughly familiarize yourself
is to thoroughly familiarize yourself with the entire subject so that you can
with the entire subject so that you can anticipate opportunities and avoid
anticipate opportunities and avoid economic reversals
economic reversals an understanding of these laws and
an understanding of these laws and principles can give you the winning edge
principles can give you the winning edge that can enable you to move ahead
that can enable you to move ahead further and faster than anyone around
further and faster than anyone around you
you more than anything else it'll give you a
more than anything else it'll give you a heightened sense of coherence in that
heightened sense of coherence in that you will understand the major events of
you will understand the major events of your world in a way that would escape
your world in a way that would escape you if you weren't familiar with these
you if you weren't familiar with these laws
laws now economic laws are merely expressions
now economic laws are merely expressions of human behavior
of human behavior just as we said that happiness comes
just as we said that happiness comes from the satisfaction of needs and that
from the satisfaction of needs and that true happiness arises when you reach the
true happiness arises when you reach the point where you're completely content
point where you're completely content we know that all human beings because of
we know that all human beings because of an identical psychological structure act
an identical psychological structure act in certain ways under virtually all
in certain ways under virtually all circumstances to achieve certain goals
circumstances to achieve certain goals these laws and principles apply to men
these laws and principles apply to men and women
and women young and old educated and uneducated
young and old educated and uneducated and they cross all the lines of race
and they cross all the lines of race culture and national origin
culture and national origin they explain many things that otherwise
they explain many things that otherwise might seem inexplicable
might seem inexplicable the study of these categories of human
the study of these categories of human action takes us deep into the realms of
action takes us deep into the realms of behavioral and cognitive psychology they
behavioral and cognitive psychology they explain the price of apples at your
explain the price of apples at your local supermarket as well as the budget
local supermarket as well as the budget deficits of billions of dollars
deficits of billions of dollars these laws are so clear so powerful and
these laws are so clear so powerful and so flexible that you can use them to
so flexible that you can use them to more accurately interpret your world
more accurately interpret your world than perhaps you ever believe possible
than perhaps you ever believe possible i began studying economics myself in
i began studying economics myself in nineteen seventy two
nineteen seventy two i sent away for books on this subject
i sent away for books on this subject and my first readings in economics began
and my first readings in economics began with a 900 page textbook
with a 900 page textbook for the next few years i dedicated
for the next few years i dedicated hundreds and thousands of hours to
hundreds and thousands of hours to reading studying writing and speaking on
reading studying writing and speaking on the subjects of money prices labor
the subjects of money prices labor political economy inflation
political economy inflation entrepreneurship free enterprise
entrepreneurship free enterprise national and international trade in a
national and international trade in a variety of other subjects i lectured and
variety of other subjects i lectured and spoke to thousands of people all over
spoke to thousands of people all over the country
the country some of my talks were audio taped and
some of my talks were audio taped and transcribed and then reproduced in the
transcribed and then reproduced in the thousands
thousands some of my talks were put on video and
some of my talks were put on video and then played and replayed on television
then played and replayed on television where they were seen by many tens of
where they were seen by many tens of thousands of people
thousands of people my success in economics if you want to
my success in economics if you want to call it that has come about because i
call it that has come about because i learned how to cut through the fog of
learned how to cut through the fog of confusion around economic theory and
confusion around economic theory and make it both interesting and enjoyable
make it both interesting and enjoyable to the average person
to the average person more than anything else people who fully
more than anything else people who fully grasp these simple concepts made
grasp these simple concepts made profound changes in their thinking and
profound changes in their thinking and behavior that led them on to far higher
behavior that led them on to far higher levels of success and satisfaction in
levels of success and satisfaction in their work and personal lives
their work and personal lives the first law of economics can be called
the first law of economics can be called the law of ambition
the law of ambition in its simplest terms it says that every
in its simplest terms it says that every act you engage in is an attempt to
act you engage in is an attempt to improve your conditions in some way
improve your conditions in some way human beings are goal-driven organisms
human beings are goal-driven organisms and they're always driven toward
and they're always driven toward achieving
achieving more of something although that
more of something although that something may change even from minute to
something may change even from minute to minute
minute from infancy to old age you are
from infancy to old age you are ambitious
ambitious you want to improve your life or some
you want to improve your life or some part of your life in some way
part of your life in some way if you're earning a certain amount of
if you're earning a certain amount of money you want to earn more
money you want to earn more if you have a certain level of physical
if you have a certain level of physical health you want to be even healthier
health you want to be even healthier if you have one home or apartments you
if you have one home or apartments you want a larger one and if you have a
want a larger one and if you have a larger one you want a second one
larger one you want a second one somewhere else
somewhere else if you have a car you want a larger car
if you have a car you want a larger car it's normal and natural and completely
it's normal and natural and completely human for every single person to
human for every single person to continually strive
continually strive to get more and better and faster and
to get more and better and faster and newer and cheaper of everything and
newer and cheaper of everything and anything they can think of
anything they can think of the only limitations on human ambition
the only limitations on human ambition are the limitations imposed either
are the limitations imposed either internally by the limitations you place
internally by the limitations you place on your own mind or externally by the
on your own mind or externally by the limitations imposed upon you by law and
limitations imposed upon you by law and society
society in the soviet union today we see that 74
in the soviet union today we see that 74 years of attempting to create a new type
years of attempting to create a new type of human being one who would not be
of human being one who would not be motivated by ambition has been a total
motivated by ambition has been a total failure
failure the minute that people saw it was once
the minute that people saw it was once more possible to fulfill their ambitions
more possible to fulfill their ambitions to
to improve their conditions there was an
improve their conditions there was an outpouring of energy and enthusiasm that
outpouring of energy and enthusiasm that swept away the communist party so
swept away the communist party so rapidly and abruptly that the whole
rapidly and abruptly that the whole world stood in wonder
world stood in wonder but there's no wonder it is merely the
but there's no wonder it is merely the acting out of individual ambition on a
acting out of individual ambition on a large scale
large scale this brings us to another version of
this brings us to another version of what we call the abc theory of human
what we call the abc theory of human behavior
behavior it says that for you to take action
it says that for you to take action three things are necessary
three things are necessary first you must be dissatisfied with your
first you must be dissatisfied with your existing condition
existing condition that's a
that's a second you must be aware of a greater
second you must be aware of a greater satisfaction toward which you can move
satisfaction toward which you can move and that's c
and that's c and third you must believe that there
and third you must believe that there exists a way
exists a way b
b for you by acting to get from where you
for you by acting to get from where you are to where you want to go
are to where you want to go to restate this it says that first in
to restate this it says that first in order for you to take action there must
order for you to take action there must be a a state of felt dissatisfaction
be a a state of felt dissatisfaction you must be unhappy with your current
you must be unhappy with your current situation
situation you must want to improve things in some
you must want to improve things in some way
way the c in this abc formula is your
the c in this abc formula is your perception of a greater state of
perception of a greater state of satisfaction
satisfaction there must be something that you want to
there must be something that you want to have or a condition that you feel that
have or a condition that you feel that you can move to that will alleviate your
you can move to that will alleviate your feeling of dissatisfaction like sitting
feeling of dissatisfaction like sitting on attack and jumping off
on attack and jumping off the bee
the bee is your perception of something that you
is your perception of something that you can do
can do a step that you can take that will get
a step that you can take that will get you from a to c
you from a to c a very simple example would be if you
a very simple example would be if you were driving an older car and you saw
were driving an older car and you saw one of your co-workers driving a brand
one of your co-workers driving a brand new car this could cause you to be
new car this could cause you to be dissatisfied with your old car and
dissatisfied with your old car and simultaneously cause you to see that
simultaneously cause you to see that owning a newer car would alleviate this
owning a newer car would alleviate this dissatisfaction it would improve your
dissatisfaction it would improve your condition
condition the a and the c
the a and the c of the abc formula now exists
of the abc formula now exists the b
the b could be your conclusion that if you
could be your conclusion that if you worked a little harder and earned a
worked a little harder and earned a little more money
little more money you'd be able to afford to purchase that
you'd be able to afford to purchase that newer car
newer car your heightened level of ambition could
your heightened level of ambition could then drive you toward a more intense
then drive you toward a more intense effort that would lead you ultimately to
effort that would lead you ultimately to the satisfaction of this particular need
the satisfaction of this particular need the reverse of this is that
the reverse of this is that where you are dissatisfied
where you are dissatisfied and see a state of greater satisfaction
and see a state of greater satisfaction but you don't see how any action of
but you don't see how any action of yours will get you there
yours will get you there you'll refrain from acting at all
you'll refrain from acting at all for example you may be driving an old
for example you may be driving an old car and you're passed on the road by
car and you're passed on the road by someone driving a one hundred thousand
someone driving a one hundred thousand dollar rolls royce corniche
dollar rolls royce corniche you may fantasize and think about how
you may fantasize and think about how nice it would be to drive such a lovely
nice it would be to drive such a lovely car but you can't even begin to imagine
car but you can't even begin to imagine earning the kind of money that would
earning the kind of money that would enable you to pay a hundred thousand
enable you to pay a hundred thousand dollars for a car like that
dollars for a car like that therefore the site of the rolls royce
therefore the site of the rolls royce would not motivate you to take an action
would not motivate you to take an action of any kind
of any kind the a and the c exist
the a and the c exist but the b
but the b does not
does not the real difference in levels of
the real difference in levels of ambition is really the difference that
ambition is really the difference that exists in levels of desire and belief
exists in levels of desire and belief if you really believe that you can move
if you really believe that you can move from wherever you are to wherever you
from wherever you are to wherever you want to go
want to go you'll be continually compelled to take
you'll be continually compelled to take action to move yourself from a your
action to move yourself from a your state of dissatisfaction to see
state of dissatisfaction to see your state of greater satisfaction
your state of greater satisfaction this is the difference between
this is the difference between learned helplessness and learned
learned helplessness and learned optimism
optimism the great majority of people have pretty
the great majority of people have pretty much the same abilities and talents as
much the same abilities and talents as have the most successful members in our
have the most successful members in our society
society but
but this majority believes that there's very
this majority believes that there's very little that they can do that will enable
little that they can do that will enable them to fulfill their ambitions
them to fulfill their ambitions they feel helpless and powerless they
they feel helpless and powerless they therefore continue to do what they're
therefore continue to do what they're doing
doing rather than increasing their abilities
rather than increasing their abilities to accomplish their goals they merely
to accomplish their goals they merely decrease their wants and desires so that
decrease their wants and desires so that they can be satisfied at a far lower
they can be satisfied at a far lower level of accomplishment
level of accomplishment the final statement on the law of
the final statement on the law of ambition says that if you're completely
ambition says that if you're completely contented or if you feel completely
contented or if you feel completely helpless
helpless you'll refrain from acting to improve
you'll refrain from acting to improve your condition
your condition the only reason that a person does not
the only reason that a person does not act to continually improve himself in
act to continually improve himself in some way
some way is because he's reached the state of
is because he's reached the state of contentment where he feels that no
contentment where he feels that no further improvement is either necessary
further improvement is either necessary or desirable
or desirable or
or he's reached the state of hopelessness
he's reached the state of hopelessness where he doesn't think anything he does
where he doesn't think anything he does will make much of a difference
will make much of a difference the danger is that sometimes these are
the danger is that sometimes these are conscious assumptions assumptions that
conscious assumptions assumptions that you've arrived at by thinking and
you've arrived at by thinking and reasoning and sometimes these are
reasoning and sometimes these are unconscious assumptions conclusions that
unconscious assumptions conclusions that you've arrived at without even realizing
you've arrived at without even realizing that these conclusions have allowed you
that these conclusions have allowed you to go down a mental blind alley
to go down a mental blind alley the second law of economics is called
the second law of economics is called the law
the law of minimum effort
of minimum effort it says that you always seek to get the
it says that you always seek to get the things you want with the least possible
things you want with the least possible expenditure of effort
expenditure of effort because you value your time and your
because you value your time and your money your mental and physical energy
money your mental and physical energy and your resources you do everything
and your resources you do everything possible to conserve them
possible to conserve them you use your energy sparingly and you
you use your energy sparingly and you spend them as carefully as possible to
spend them as carefully as possible to get the things you want
get the things you want when we say that we are economic beings
when we say that we are economic beings we merely mean that we are economical in
we merely mean that we are economical in our choices we don't spend more than we
our choices we don't spend more than we have to to achieve a particular
have to to achieve a particular satisfaction
satisfaction the first part of the law of minimum
the first part of the law of minimum effort then says
effort then says you cannot consciously choose
you cannot consciously choose a harder way to accomplish something
a harder way to accomplish something if an easier way is available to you to
if an easier way is available to you to accomplish the same result
accomplish the same result you are structured psychologically in
you are structured psychologically in such a way that you can't force yourself
such a way that you can't force yourself to select a more difficult path to your
to select a more difficult path to your goal if you can see an easier path all
goal if you can see an easier path all things being equal
things being equal and everyone is the same way even
and everyone is the same way even animals are the same way if you look at
animals are the same way if you look at a pasture you'll find that cattle always
a pasture you'll find that cattle always follow the easiest path to get from one
follow the easiest path to get from one part of the pasture to another
part of the pasture to another and each subsequent cow follows the same
and each subsequent cow follows the same path wearing a groove in the field or
path wearing a groove in the field or what we call a cow path
what we call a cow path you also have similar grooves worn in
you also have similar grooves worn in your brain
your brain habitual ways of acting which you engage
habitual ways of acting which you engage in automatically and unthinkingly
in automatically and unthinkingly because you've simply accepted that this
because you've simply accepted that this is the easiest way for you to get from
is the easiest way for you to get from one point to another
one point to another the second part of this law of minimum
the second part of this law of minimum effort says that
effort says that all human beings are inherently lazy in
all human beings are inherently lazy in that they follow the path of least
that they follow the path of least resistance in all things
resistance in all things laziness then is normal and natural and
laziness then is normal and natural and inherent in all human action
inherent in all human action the
the lazy tendency in human beings has led to
lazy tendency in human beings has led to every great advance and breakthrough in
every great advance and breakthrough in the world of human science and
the world of human science and technology
technology every single forward advance has to be
every single forward advance has to be labor-saving in order to be successful
labor-saving in order to be successful the most affluent countries and the most
the most affluent countries and the most affluent companies are those who produce
affluent companies are those who produce the highest quality of goods and
the highest quality of goods and services with the minimum possible
services with the minimum possible effort or expenditure of resources
effort or expenditure of resources the word lazy is neither positive nor
the word lazy is neither positive nor negative
negative it's not a value judgment it's only as
it's not a value judgment it's only as you demonstrate this quality that it
you demonstrate this quality that it takes on the value of being either good
takes on the value of being either good or bad
or bad for example if you manifest your
for example if you manifest your laziness by continually seeking faster
laziness by continually seeking faster and more efficient ways to get the
and more efficient ways to get the things you want it's a good quality
things you want it's a good quality however if a person manifests their
however if a person manifests their laziness by sitting around on a couch
laziness by sitting around on a couch watching television it's a bad quality
watching television it's a bad quality what is the ultimate measure of whether
what is the ultimate measure of whether equality is good or bad
equality is good or bad well it's simply whether or not the
well it's simply whether or not the practice of that quality leads to the
practice of that quality leads to the improvement of the individual's life
improvement of the individual's life in the most economical way
in the most economical way if what you do is life enhancing and
if what you do is life enhancing and life enriching and you're lazy and doing
life enriching and you're lazy and doing it you're using this natural human
it you're using this natural human quality of laziness in its highest and
quality of laziness in its highest and best sense
best sense the third law of economics is the law of
the third law of economics is the law of maximization
maximization it says that you always seek to obtain
it says that you always seek to obtain the highest possible return for your
the highest possible return for your expenditure of time money or resources
expenditure of time money or resources again this is just a simple and obvious
again this is just a simple and obvious explanation of human behavior under
explanation of human behavior under almost all circumstances however it's an
almost all circumstances however it's an extraordinarily important law to be
extraordinarily important law to be aware of to enable you to avoid
aware of to enable you to avoid confusion in interpreting and
confusion in interpreting and understanding the behaviors of other
understanding the behaviors of other people
people the first part of the law of
the first part of the law of maximization says that
maximization says that when given a choice between more and
when given a choice between more and less all things being equal you will
less all things being equal you will always choose more in order to maximize
always choose more in order to maximize your situation
your situation the second part of this law says that
the second part of this law says that the desire for more is automatic and
the desire for more is automatic and instinctive and applies to all human
instinctive and applies to all human desires and fulfillments
desires and fulfillments in other words
in other words if you're selling something and one
if you're selling something and one person offers you five dollars and
person offers you five dollars and another person offers you six dollars
another person offers you six dollars if you're behaving normally you'll
if you're behaving normally you'll choose to accept the six dollars rather
choose to accept the six dollars rather than the five dollars
than the five dollars you will always choose more rather than
you will always choose more rather than less
less in order for you to accept a lesser
in order for you to accept a lesser amount rather than a greater amount some
amount rather than a greater amount some other higher value must be at work to
other higher value must be at work to determine your behavior
determine your behavior for example it often happens that when a
for example it often happens that when a company is put up for sale the owners of
company is put up for sale the owners of the company will accept a lower price
the company will accept a lower price from one group of investors because that
from one group of investors because that group of investors will promise to
group of investors will promise to protect the jobs and the livelihood of
protect the jobs and the livelihood of the employees while the other group of
the employees while the other group of investors offering a higher price will
investors offering a higher price will not
not but if all things were equal the amount
but if all things were equal the amount you will demand from the exchange of
you will demand from the exchange of your time or money or resources will
your time or money or resources will always be the very most that you can get
always be the very most that you can get for the very least that you can give
for the very least that you can give this desire for more just says that you
this desire for more just says that you are inherently greedy as is everyone
are inherently greedy as is everyone else and greed is neither positive nor
else and greed is neither positive nor negative it's just a fact
negative it's just a fact the word greed has been used in politics
the word greed has been used in politics and economics and religion
and economics and religion to describe the behaviors of other
to describe the behaviors of other people when in reality it has no value
people when in reality it has no value attached to it at all
attached to it at all every single person is greedy in that
every single person is greedy in that they prefer more to less
they prefer more to less they are simply greedy for different
they are simply greedy for different things
things even mother teresa one of the great
even mother teresa one of the great humanitarians living today is greedy in
humanitarians living today is greedy in that she has an intense desire to serve
that she has an intense desire to serve the greatest number of people that she
the greatest number of people that she possibly can through her sisters of
possibly can through her sisters of charity mission
charity mission parents are greedy for their children
parents are greedy for their children and they want the very best for them in
and they want the very best for them in life
life athletes are greedy in that they want to
athletes are greedy in that they want to achieve the very most in their areas of
achieve the very most in their areas of competition
competition and be paid the very most for doing it
and be paid the very most for doing it everyone is greedy
everyone is greedy now some commentators have taken to
now some commentators have taken to calling the 1980s the decade of greed
calling the 1980s the decade of greed this is really a silly and meaningless
this is really a silly and meaningless term with a hidden agenda and usually
term with a hidden agenda and usually ulterior motives
ulterior motives the fact is that during the 1980s which
the fact is that during the 1980s which has also been called the decade of
has also been called the decade of entrepreneurship
entrepreneurship more people seized the opportunity to
more people seized the opportunity to improve their conditions and to get more
improve their conditions and to get more in the very fastest and easiest way
in the very fastest and easiest way possible than perhaps had ever happened
possible than perhaps had ever happened in any prior period of economic history
in any prior period of economic history more than 20 million new jobs were
more than 20 million new jobs were created in almost the entirety of
created in almost the entirety of american business and industry was
american business and industry was reorganized for greater efficiency
reorganized for greater efficiency effectiveness and profitability
effectiveness and profitability the only real limitation on people
the only real limitation on people behaving in what is called a greedy
behaving in what is called a greedy manner
manner is the abc formula
is the abc formula as i stated before
as i stated before everyone is greedy
everyone is greedy everyone seeks ways to satisfy their
everyone seeks ways to satisfy their greed the only thing that blocks human
greed the only thing that blocks human action in that direction is that most
action in that direction is that most people don't see how they can get from
people don't see how they can get from where they are to where they want to go
where they are to where they want to go but as soon as a person sees a way of
but as soon as a person sees a way of achieving his goals and desires he takes
achieving his goals and desires he takes action
action when someone calls this an act of greed
when someone calls this an act of greed preferring more to less they are simply
preferring more to less they are simply declaring to others that they
declaring to others that they don't understand or they don't agree
don't understand or they don't agree with what's going on
with what's going on the fourth law of economics is the law
the fourth law of economics is the law of time preference
of time preference this law says that because your time is
this law says that because your time is your life and you value your life you
your life and you value your life you always prefer earlier
always prefer earlier rather than later in the satisfaction of
rather than later in the satisfaction of any desire
any desire to put it another way people prefer
to put it another way people prefer immediate gratification to delayed
immediate gratification to delayed gratification and they must be rewarded
gratification and they must be rewarded sometimes substantially to put off
sometimes substantially to put off gratification at all
gratification at all the first part of this law is that when
the first part of this law is that when given the choice between a reward today
given the choice between a reward today or the identical reward at some future
or the identical reward at some future time
time in the absence of extenuating
in the absence of extenuating circumstances
circumstances you'll prefer to take the reward now
you'll prefer to take the reward now rather than later
rather than later if someone says to you i'll give you a
if someone says to you i'll give you a thousand dollars today or i'll give you
thousand dollars today or i'll give you a thousand dollars in six months
a thousand dollars in six months all things being equal when would you
all things being equal when would you prefer to have the thousand dollars
prefer to have the thousand dollars the answer is obvious
the answer is obvious if you have the choice you'll take it
if you have the choice you'll take it now rather than later why
now rather than later why it's worth more now because you can
it's worth more now because you can enjoy what that thousand dollars can
enjoy what that thousand dollars can mean to you earlier rather than later
mean to you earlier rather than later because of the law of time preference
because of the law of time preference you need to be rewarded for delaying
you need to be rewarded for delaying gratification
gratification you need to be compensated in some way
you need to be compensated in some way to a greater degree in the future if
to a greater degree in the future if you're willing to put off enjoying the
you're willing to put off enjoying the reward today
reward today for example
for example interest rates are merely rewards for
interest rates are merely rewards for delaying the expenditure of money today
delaying the expenditure of money today into some future period
into some future period if you could spend a dollar today or
if you could spend a dollar today or spend a dollar in one year in order for
spend a dollar in one year in order for you to wait for one year you will want
you to wait for one year you will want to be rewarded with even greater
to be rewarded with even greater spending power or power to buy yourself
spending power or power to buy yourself the satisfactions you desire a year from
the satisfactions you desire a year from today
today all interest rates are merely rewards
all interest rates are merely rewards for waiting
for waiting over all of recorded economic history
over all of recorded economic history the average interest rate required for a
the average interest rate required for a person to wait is about three to four
person to wait is about three to four percent per year
percent per year but when interest rates are higher than
but when interest rates are higher than three percent the extra amount reflects
three percent the extra amount reflects the inflation that might take place the
the inflation that might take place the taxes that might be taken off the
taxes that might be taken off the interest payment
interest payment and the degree of risk involved in
and the degree of risk involved in getting your money back at all
getting your money back at all if any one of those three factors or
if any one of those three factors or more than one of those factors is high
more than one of those factors is high the amount of interest that you require
the amount of interest that you require to delay gratification from the present
to delay gratification from the present to the future will be higher still
to the future will be higher still this is why in some countries with high
this is why in some countries with high inflation rates it's quite common for
inflation rates it's quite common for them to offer interest rates of 20 and
them to offer interest rates of 20 and 30 and even 40
30 and even 40 per month
per month these are merely rewards for delaying
these are merely rewards for delaying gratification and are based on the law
gratification and are based on the law of time preference
of time preference the second part of this law simply says
the second part of this law simply says that you are inherently impatient in the
that you are inherently impatient in the achievement of your goals and this
achievement of your goals and this tendency toward impatience is neither
tendency toward impatience is neither good nor bad
good nor bad because you value your life you value
because you value your life you value your time and the various pleasures and
your time and the various pleasures and gratifications there are for you to
gratifications there are for you to enjoy with that time
enjoy with that time for this reason you're always more eager
for this reason you're always more eager to enjoy these satisfactions now as
to enjoy these satisfactions now as opposed to waiting
opposed to waiting you are naturally impatient in that
you are naturally impatient in that whatever you want you want it
whatever you want you want it immediately
immediately it takes self mastery self control and
it takes self mastery self control and self discipline to restrain your
self discipline to restrain your appetites and delay gratification to a
appetites and delay gratification to a later period because it may be much
later period because it may be much better and more rewarding to do so
better and more rewarding to do so in children for example who lack these
in children for example who lack these developed qualities of constraint you'll
developed qualities of constraint you'll see a very high degree of impatience
see a very high degree of impatience they want everything immediately it's
they want everything immediately it's been said that today even immediate
been said that today even immediate gratification is not fast enough
gratification is not fast enough the fifth law of economics is the law of
the fifth law of economics is the law of vanity as applied to economics
vanity as applied to economics it says that you are egotistical and
it says that you are egotistical and self-centered and you place a high value
self-centered and you place a high value on your appearance your opinions your
on your appearance your opinions your choices your relationships and the way
choices your relationships and the way you're treated by others
you're treated by others this law says that each person is ego
this law says that each person is ego centered and vain
centered and vain each person is extremely concerned about
each person is extremely concerned about how he or she is perceived by others and
how he or she is perceived by others and much of your personality is determined
much of your personality is determined by the way you think others see you and
by the way you think others see you and think about you
think about you the fact of vanity and the role of the
the fact of vanity and the role of the ego in human behavior is not even open
ego in human behavior is not even open to question
to question the entire fashion industry automotive
the entire fashion industry automotive industry jewelry industry furniture
industry jewelry industry furniture industry clothing industry and many
industry clothing industry and many other industries are all built around
other industries are all built around appealing to the individual's desire to
appealing to the individual's desire to look good to others
look good to others in fact many of the great fortunes in
in fact many of the great fortunes in america have been based on finding a
america have been based on finding a unique and original appeal to vanity
unique and original appeal to vanity with a product or service that can be
with a product or service that can be sold to large numbers of people
sold to large numbers of people the sixth law of economics is the law of
the sixth law of economics is the law of ignorance which says that every act you
ignorance which says that every act you engage in is characterized by a certain
engage in is characterized by a certain degree of uncertainty with regard to the
degree of uncertainty with regard to the outcome because you can never know
outcome because you can never know everything there is to know about
everything there is to know about anything
anything this law simply says that we're all
this law simply says that we're all ignorant to a certain degree and that no
ignorant to a certain degree and that no one can know everything there is to know
one can know everything there is to know about even the smallest subject
about even the smallest subject because we're ignorant we can't predict
because we're ignorant we can't predict with exact certainty what's likely to
with exact certainty what's likely to happen
happen we don't even know for sure whether
we don't even know for sure whether we'll drive to and from work on a given
we'll drive to and from work on a given day without getting into an accident
day without getting into an accident there are laws of statistics and laws of
there are laws of statistics and laws of probability that show if we do certain
probability that show if we do certain things like following the traffic laws
things like following the traffic laws carefully and wearing seat belts and
carefully and wearing seat belts and driving at a particular distance behind
driving at a particular distance behind another car we can improve the odds of
another car we can improve the odds of our arriving at home or work safely but
our arriving at home or work safely but there's still no certainty
there's still no certainty ignorance is everywhere and all around
ignorance is everywhere and all around us everyone is ignorant
us everyone is ignorant most people are incredibly ignorant of
most people are incredibly ignorant of an enormous number of subjects just like
an enormous number of subjects just like you and me
you and me in fact our areas of knowledge are very
in fact our areas of knowledge are very small compared to our areas of ignorance
small compared to our areas of ignorance this is why anyone who purports to
this is why anyone who purports to predict how economic events are going to
predict how economic events are going to turn out is really engaging in a form of
turn out is really engaging in a form of guesswork
guesswork no one can know
no one can know because of the uncertainty principle
because of the uncertainty principle someone once said nature is always on
someone once said nature is always on the side of the hidden flaw
the side of the hidden flaw one of murphy's laws is that
one of murphy's laws is that whatever can possibly go wrong will go
whatever can possibly go wrong will go wrong
wrong unpredictability and uncertainty lead
unpredictability and uncertainty lead inevitably to the fact that we are all
inevitably to the fact that we are all ignorant to a greater or lesser degree
the seventh law of economics and perhaps the most important law in understanding
the most important law in understanding economics
economics is what i call the law of expediency
is what i call the law of expediency it says that people always strive to get
it says that people always strive to get the things they want the fastest and
the things they want the fastest and easiest way possible without regard to
easiest way possible without regard to the secondary consequences of their
the secondary consequences of their actions
actions the first part of the law of expediency
the first part of the law of expediency says that people are unnaturally and
says that people are unnaturally and normally lazy
normally lazy greedy ambitious
greedy ambitious vain ignorant and impatient
vain ignorant and impatient this is the way people are in a state of
this is the way people are in a state of nature and it's neither good nor bad
nature and it's neither good nor bad it's simply a fact
it's simply a fact you are lazy you are greedy you are
you are lazy you are greedy you are ambitious you are vain you are ignorant
ambitious you are vain you are ignorant and you are impatient and so is
and you are impatient and so is everybody else
everybody else it's been said that we live in an
it's been said that we live in an imperfect world because it is full of
imperfect world because it is full of imperfect human beings
imperfect human beings the second part of the law of expediency
the second part of the law of expediency says that people strive to achieve
says that people strive to achieve security comfort
security comfort leisure love respect and fulfillment in
leisure love respect and fulfillment in the fastest and easiest ways possible
the fastest and easiest ways possible each person has a multiplicity of needs
each person has a multiplicity of needs and desires urges and instincts hopes
and desires urges and instincts hopes and dreams and each person is motivated
and dreams and each person is motivated to achieve satisfaction in these areas
to achieve satisfaction in these areas by seeking out the fastest and easiest
by seeking out the fastest and easiest possible way to do so
possible way to do so tempered by the fact that they're also
tempered by the fact that they're also vain ignorant and impatient in
vain ignorant and impatient in everything they do
everything they do the law of expediency explains the way
the law of expediency explains the way the world works
the world works it's often called the path of least
it's often called the path of least resistance
resistance it explains why things go wrong and why
it explains why things go wrong and why people behave the way they do
people behave the way they do everyone in the world is driven in every
everyone in the world is driven in every conceivable way to seek the fastest and
conceivable way to seek the fastest and easiest way to get the things they want
easiest way to get the things they want right now without concern for the
right now without concern for the long-term consequences of their actions
long-term consequences of their actions the third part of this law says that
the third part of this law says that government programs usually fail because
government programs usually fail because they're administered by people who are
they're administered by people who are motivated primarily by the law of
motivated primarily by the law of expediency
expediency whenever anyone says in response to any
whenever anyone says in response to any social problem
social problem the government should do this or that
the government should do this or that what they're saying is that average
what they're saying is that average people predominantly motivated by the
people predominantly motivated by the personal instincts of laziness
personal instincts of laziness greediness ambition selfishness vanity
greediness ambition selfishness vanity ignorance and impatience should be put
ignorance and impatience should be put in charge of bringing about a socially
in charge of bringing about a socially desirable result
desirable result as the author charles murray illustrated
as the author charles murray illustrated in his best-selling book losing ground
in his best-selling book losing ground virtually every government program aimed
virtually every government program aimed at achieving some result not only fails
at achieving some result not only fails but tends to bring about a result
but tends to bring about a result opposite to that intended in the first
opposite to that intended in the first place
place perhaps the greatest single threat to
perhaps the greatest single threat to freedom and opportunity for you and i
freedom and opportunity for you and i is the unrestricted growth of government
is the unrestricted growth of government taxation and government regulation
taxation and government regulation the reason all of these attempts albeit
the reason all of these attempts albeit noble and praiseworthy fail is because
noble and praiseworthy fail is because they must be carried out by normal human
they must be carried out by normal human beings with normal human drives and
beings with normal human drives and motivations
motivations the eighth law of economics is the law
the eighth law of economics is the law of duality which says that there are
of duality which says that there are always two reasons given for doing
always two reasons given for doing anything there is the reason that sounds
anything there is the reason that sounds good and there is the real reason
good and there is the real reason the reason that people give for doing
the reason that people give for doing just about anything is the reason that
just about anything is the reason that sounds the most socially acceptable and
sounds the most socially acceptable and uplifting
uplifting the real reason that anyone does
the real reason that anyone does anything with few exceptions is because
anything with few exceptions is because the individual perceives that this is
the individual perceives that this is the fastest and easiest way to get the
the fastest and easiest way to get the things he wants right now
things he wants right now the first part of the law of duality
the first part of the law of duality says that people always give the
says that people always give the socially acceptable reason for whatever
socially acceptable reason for whatever they do
they do we call this
we call this rationalization
rationalization rationalization simply means to put a
rationalization simply means to put a socially favorable interpretation upon
socially favorable interpretation upon what might be an otherwise socially
what might be an otherwise socially unacceptable act
unacceptable act dr james buchanan of the university of
dr james buchanan of the university of chicago won the nobel prize recently for
chicago won the nobel prize recently for his breakthrough work in economics in
his breakthrough work in economics in what he called public choice theory
what he called public choice theory he demonstrated that because of this law
he demonstrated that because of this law of expediency you can very accurately
of expediency you can very accurately predict how a politician will behave
predict how a politician will behave under any given set of circumstances
under any given set of circumstances he showed that a politician wants more
he showed that a politician wants more than anything else to be reelected
than anything else to be reelected if a politician is running for office
if a politician is running for office the politician's dominant desire is to
the politician's dominant desire is to be elected in the first place
be elected in the first place the principle remains the same
the principle remains the same what dr buchanan found was that you can
what dr buchanan found was that you can predict how a person will vote by
predict how a person will vote by studying public opinion polls in the
studying public opinion polls in the politicians constituency and finding out
politicians constituency and finding out how many people support a particular
how many people support a particular policy
policy the politician of whatever party will
the politician of whatever party will always vote irrespective of any
always vote irrespective of any principle philosophical moral or
principle philosophical moral or otherwise for the policy that he or she
otherwise for the policy that he or she feels will garner the greatest number of
feels will garner the greatest number of votes in the next election
votes in the next election dr milton friedman who also won a nobel
dr milton friedman who also won a nobel prize in economics once said that the
prize in economics once said that the validity of an economic principle can be
validity of an economic principle can be measured by its ability to predict
measured by its ability to predict future events
future events in other words if a law or principle is
in other words if a law or principle is true you can make predictions based on
true you can make predictions based on it and those predictions will largely
it and those predictions will largely turn out to be correct
turn out to be correct dr buchanan received his nobel prize
dr buchanan received his nobel prize because in democratic politics the law
because in democratic politics the law of expediency was extremely accurate in
of expediency was extremely accurate in showing how a politician would vote
showing how a politician would vote this by the way is not the sort of
this by the way is not the sort of discovery that is meant to encourage the
discovery that is meant to encourage the average voter and is probably the reason
average voter and is probably the reason why one of the best-selling books in
why one of the best-selling books in america today is entitled why americans
america today is entitled why americans hate politics
hate politics the ninth law of economics is the law of
the ninth law of economics is the law of secondary consequences which follows
secondary consequences which follows from the law of expediency
from the law of expediency it says that for everything you do there
it says that for everything you do there will be a direct consequence and there
will be a direct consequence and there will be indirect or secondary
will be indirect or secondary consequences
consequences the first part of this law says that the
the first part of this law says that the consideration of secondary consequences
consideration of secondary consequences is the hallmark of wisdom
is the hallmark of wisdom your ability to look down the road like
your ability to look down the road like a chess player looking down the board
a chess player looking down the board and anticipate what might happen as the
and anticipate what might happen as the result of what you do and then to take
result of what you do and then to take those possible consequences into
those possible consequences into consideration before you act initially
consideration before you act initially is the hallmark of the superior thinker
is the hallmark of the superior thinker the second part of the law of secondary
the second part of the law of secondary consequences says that
consequences says that the ignorance of secondary consequences
the ignorance of secondary consequences is the hallmark of stupidity and the
is the hallmark of stupidity and the primary cause of failure
primary cause of failure we said in an earlier session that
we said in an earlier session that errant assumptions lie at the root of
errant assumptions lie at the root of every setback
every setback action without thinking seems to precede
action without thinking seems to precede every failure
every failure in each case we're saying that the
in each case we're saying that the unwillingness or the inability to
unwillingness or the inability to consider the secondary consequences of a
consider the secondary consequences of a particular action are what lead to
particular action are what lead to failure
failure the initial reason for doing everything
the initial reason for doing everything always seems positive and leads to
always seems positive and leads to short-term pleasure or gratification
short-term pleasure or gratification however
however the long-term consequences may lead to
the long-term consequences may lead to far greater pain and suffering than
far greater pain and suffering than could have been imagined or anticipated
could have been imagined or anticipated there's a very simple expression that
there's a very simple expression that tends to explain success and failure in
tends to explain success and failure in adult life
adult life it is
it is short-term pain for long-term gain it
short-term pain for long-term gain it simply means that if you discipline
simply means that if you discipline yourself and sacrifice in the short term
yourself and sacrifice in the short term through hard work through dedicated
through hard work through dedicated application and saving of your money
application and saving of your money the long-term rewards can be substantial
the long-term rewards can be substantial for you
for you the flip side of this equation is
the flip side of this equation is short-term gain
short-term gain for long-term pain
for long-term pain it says that if you choose to have a
it says that if you choose to have a good time all the time in the present
good time all the time in the present the long-term consequences can and will
the long-term consequences can and will be very painful and difficult for you
be very painful and difficult for you this law explains much unhappiness in
this law explains much unhappiness in our society today
our society today the tenth law of economics is the law
the tenth law of economics is the law of unintended consequences which says
of unintended consequences which says that the ultimate consequences of many
that the ultimate consequences of many actions are far worse than if nothing
actions are far worse than if nothing had been done in the first place
had been done in the first place for example politics today is a
for example politics today is a minefield of unintended consequences
minefield of unintended consequences coming home to roost
coming home to roost many people who passed laws many years
many people who passed laws many years ago felt that even though in the long
ago felt that even though in the long term they might be disastrous in the
term they might be disastrous in the short term these laws would get them the
short term these laws would get them the votes and support they required to
votes and support they required to satisfy
satisfy their most pressing needs to be
their most pressing needs to be re-elected immediately
re-elected immediately for example we know today that if you
for example we know today that if you increase the amount of money that you
increase the amount of money that you give to people for not working or for a
give to people for not working or for a living on welfare you'll create a market
living on welfare you'll create a market demand for more of these people
demand for more of these people they'll behave economically
they'll behave economically because of the law of expediency more
because of the law of expediency more and more people will seek out government
and more people will seek out government handouts rather than working for a
handouts rather than working for a living
living if you reward unemployment welfare crime
if you reward unemployment welfare crime and other social problems with
and other social problems with government money you'll inevitably get
government money you'll inevitably get more of them
more of them if you at the same time punish
if you at the same time punish investment savings hard work and
investment savings hard work and productive effort through extensive
productive effort through extensive regulation and taxes you'll get less of
regulation and taxes you'll get less of them
them the unintended consequences of the laws
the unintended consequences of the laws meant to help in these areas can be far
meant to help in these areas can be far worse than if nothing were done at all
worse than if nothing were done at all the second part of the law of unintended
the second part of the law of unintended consequences is obvious it says
consequences is obvious it says negative unintended consequences
negative unintended consequences always occur when any action depends for
always occur when any action depends for its success on violating the law of
its success on violating the law of expediency
expediency if any law or regulation depends for its
if any law or regulation depends for its success on people overcoming their
success on people overcoming their natural urges to be
natural urges to be lazy greedy ambitious selfish vain
lazy greedy ambitious selfish vain ignorant and impatient
ignorant and impatient that law or regulation is destined to
that law or regulation is destined to fail you cannot change human nature
fail you cannot change human nature you can only organize your society in
you can only organize your society in such a way that men and women eager to
such a way that men and women eager to improve their lives and following the
improve their lives and following the basic drives of their personalities will
basic drives of their personalities will have no choice but to act in ways that
have no choice but to act in ways that are productive and constructive for the
are productive and constructive for the entire society
entire society this is called
this is called free enterprise
free enterprise the 11th law as it applies to economics
the 11th law as it applies to economics is the law of choice which says that
is the law of choice which says that every human action is a choice
every human action is a choice and the choice is always based on the
and the choice is always based on the dominant of values of the individual at
dominant of values of the individual at that moment
that moment you are a choosing organism you are
you are a choosing organism you are continually making choices based on what
continually making choices based on what you consider more important and what you
you consider more important and what you consider less important
consider less important every act that you engage in implies a
every act that you engage in implies a choice of some kind
choice of some kind you can tell exactly who you are and
you can tell exactly who you are and what you believe and what's important to
what you believe and what's important to you by simply looking at the choices
you by simply looking at the choices that you make minute by minute hour by
that you make minute by minute hour by hour and day by day
hour and day by day the first part of the law of choice says
the first part of the law of choice says that
that your values are always expressed in your
your values are always expressed in your actions
actions as we said before
as we said before you always demonstrate what you truly
you always demonstrate what you truly believe and what you truly value by the
believe and what you truly value by the actions you take
actions you take it's not what you say or wish or hope or
it's not what you say or wish or hope or intend but only what you do that is the
intend but only what you do that is the true indicator of what you really
true indicator of what you really believe in value in life
believe in value in life the second part of this law says that
the second part of this law says that you always choose what you most value at
you always choose what you most value at the moment
the moment this means that at any given time when
this means that at any given time when you're forced to choose among a variety
you're forced to choose among a variety of options you'll always choose what you
of options you'll always choose what you value the most
value the most when you're walking down the line at a
when you're walking down the line at a dinner buffet the items that you put on
dinner buffet the items that you put on your plate will be an exact reflection
your plate will be an exact reflection of the foods that you most value and
of the foods that you most value and desire at that particular moment the
desire at that particular moment the third part of the law of choice says
third part of the law of choice says that every action you take or every
that every action you take or every action you decline to take implies a
action you decline to take implies a choice and a statement about your values
choice and a statement about your values and beliefs
and beliefs now here's an important point
now here's an important point both actions and inactions have
both actions and inactions have consequences
consequences whenever an action or an inaction a
whenever an action or an inaction a decision by you to do something or a
decision by you to do something or a decision by you to refrain from doing
decision by you to refrain from doing something
something has a consequence
has a consequence it is by definition an action and it's
it is by definition an action and it's based on a value
based on a value for example if you get up in the morning
for example if you get up in the morning and you read a book that can help you in
and you read a book that can help you in some way you're demonstrating a very
some way you're demonstrating a very different set of values than if you get
different set of values than if you get up in the morning and watch television
up in the morning and watch television and read the newspaper
and read the newspaper if you exercise physically to keep
if you exercise physically to keep yourself in top condition rather than
yourself in top condition rather than sitting around talking at lunchtime or
sitting around talking at lunchtime or after work you're demonstrating a very
after work you're demonstrating a very different set of values from a person
different set of values from a person who doesn't exercise
who doesn't exercise if you read and study or spend time
if you read and study or spend time interacting and communicating with your
interacting and communicating with your family in the evenings
family in the evenings rather than watching television or
rather than watching television or socializing
socializing you're demonstrating to yourself and to
you're demonstrating to yourself and to others that you have a particular set of
others that you have a particular set of values
values in every case it's what you choose to do
in every case it's what you choose to do with your time and your life and what
with your time and your life and what you choose not to do that determines
you choose not to do that determines your future
your future the 12th law of economics is the law of
the 12th law of economics is the law of the excluded alternative
the excluded alternative it says that whatever you choose to do
it says that whatever you choose to do you are simultaneously
you are simultaneously rejecting or excluding all other choices
rejecting or excluding all other choices at that moment
at that moment when you decide to get married to a
when you decide to get married to a particular person you are discriminating
particular person you are discriminating in the sense that you are simultaneously
in the sense that you are simultaneously rejecting the possibility of marrying
rejecting the possibility of marrying any other person in the world
any other person in the world when you go out at night or get involved
when you go out at night or get involved in a relationship with another person
in a relationship with another person you are excluding all other
you are excluding all other possibilities at that moment
possibilities at that moment the first part of this law says that
the first part of this law says that every choice implies a rejection of all
every choice implies a rejection of all other choices
other choices now this is important some people want
now this is important some people want to have their cake and eat it too they
to have their cake and eat it too they want to have a little bit of this and a
want to have a little bit of this and a little bit of that but since you can
little bit of that but since you can only choose one thing at a time
only choose one thing at a time every choice that you make
every choice that you make simultaneously implies rejection
simultaneously implies rejection of all other choices
of all other choices when you purchase a particular item with
when you purchase a particular item with your limited amount of money you are
your limited amount of money you are simultaneously rejecting all other items
simultaneously rejecting all other items that are for sale at that moment
that are for sale at that moment you're expressing your highest value
you're expressing your highest value with your choice
with your choice the second part of the law of the
the second part of the law of the excluded alternative simply says that
excluded alternative simply says that every choice that you make tells what
every choice that you make tells what you truly believe and value
you truly believe and value so
so give your choices careful thought and
give your choices careful thought and give your values careful thought as well
give your values careful thought as well out of them come all the great issues of
out of them come all the great issues of life
life this brings us to the 13th law of
this brings us to the 13th law of economics one of the great breakthroughs
economics one of the great breakthroughs of economic history the work of dr carl
of economic history the work of dr carl menger of austria in the middle of the
menger of austria in the middle of the last century
last century he was the first person to postulate
he was the first person to postulate what has come to be called the
what has come to be called the subjective theory of value
subjective theory of value this law says that the value of any good
this law says that the value of any good or service is completely personal
or service is completely personal it is determined by what a person is
it is determined by what a person is willing to pay for it
willing to pay for it what this law states is that there are
what this law states is that there are no inherent values in anything
no inherent values in anything value is always subjective
value is always subjective people always choose what they feel will
people always choose what they feel will make them the happiest or what will
make them the happiest or what will relieve their dissatisfaction the most
relieve their dissatisfaction the most at any given moment
at any given moment no one can choose for another
no one can choose for another no one can tell another person whether
no one can tell another person whether or not something has a particular value
or not something has a particular value all value is personal and subjective
all value is personal and subjective for example it's silly for a government
for example it's silly for a government to try and place a specific value on any
to try and place a specific value on any good or service or wage
good or service or wage only the person who's being asked to pay
only the person who's being asked to pay for the good or service or to pay a
for the good or service or to pay a certain wage is in a position to
certain wage is in a position to determine what it's worth to him
determine what it's worth to him when people say that something should be
when people say that something should be worth a particular amount they don't
worth a particular amount they don't realize that the word should is
realize that the word should is meaningless in economics
meaningless in economics it is merely the expression of an
it is merely the expression of an opinion and the opinion usually means
opinion and the opinion usually means that i think that someone else should be
that i think that someone else should be made to pay this amount
made to pay this amount but in a free society a mandated or
but in a free society a mandated or dictated price or wage has very little
dictated price or wage has very little bearing on the real value of the item
bearing on the real value of the item for example
for example when certain labor unions use their
when certain labor unions use their power to strike and shut down large
power to strike and shut down large industries in order to force the
industries in order to force the companies into paying them more money
companies into paying them more money for the same or less work
for the same or less work they achieved short-term gain for
they achieved short-term gain for long-term pain
long-term pain because no one can arbitrarily decide
because no one can arbitrarily decide upon a wage if the wage gets too high
upon a wage if the wage gets too high the companies simply move their
the companies simply move their factories and their manufacturing to
factories and their manufacturing to other states or countries where the
other states or countries where the wages are not as high
wages are not as high if they can't move their factories they
if they can't move their factories they simply shut down so the people who
simply shut down so the people who initially received the huge wage gains
initially received the huge wage gains will soon find themselves out of work
will soon find themselves out of work and sometimes for life
and sometimes for life any attempt to violate an economic law
any attempt to violate an economic law whether it's the law of expediency or
whether it's the law of expediency or the
the law of subjective value
law of subjective value always leads to consequences that are
always leads to consequences that are far worse in the long run than if the
far worse in the long run than if the attempt hadn't been made in the first
attempt hadn't been made in the first place
place the first part of the law of subjective
the first part of the law of subjective value simply says that all prices are
value simply says that all prices are educated guesses about how much people
educated guesses about how much people will pay to consume the entire supply
will pay to consume the entire supply produced
produced the second part of the law says that
the second part of the law says that all sales at reduced prices of
all sales at reduced prices of merchandise or services are admissions
merchandise or services are admissions by the company or the vendors that the
by the company or the vendors that the initial asking price was too high
initial asking price was too high and the third part of the law of
and the third part of the law of subjective value says
subjective value says only the person being asked to pay
only the person being asked to pay is in a position to determine what
is in a position to determine what something is worth
something is worth all wages and prices are established
all wages and prices are established arbitrarily at least initially but it's
arbitrarily at least initially but it's only what the customers are willing to
only what the customers are willing to pay in the marketplace that determines
pay in the marketplace that determines whether those wages and prices will hold
whether those wages and prices will hold up if the wages or prices are too high
up if the wages or prices are too high people will be laid off or prices will
people will be laid off or prices will be reduced
be reduced the market and the customer in the
the market and the customer in the marketplace will ultimately decide how
marketplace will ultimately decide how much will be paid for everything
much will be paid for everything the fourteenth law
the fourteenth law is the law of marginality
is the law of marginality it's a central law of economics which
it's a central law of economics which says that it's what the last customer
says that it's what the last customer will pay for the last item that
will pay for the last item that determines the price of the whole supply
determines the price of the whole supply in other words it's not the customer who
in other words it's not the customer who has the greatest need and the greatest
has the greatest need and the greatest financial resources who determines how
financial resources who determines how that item will be priced in a
that item will be priced in a competitive market
competitive market it's the last customer who can choose
it's the last customer who can choose between buying that item buying another
between buying that item buying another item or buying no item at all
item or buying no item at all who will set the final price
who will set the final price companies such as mcdonald's and burger
companies such as mcdonald's and burger king and pizza hut are brilliant at
king and pizza hut are brilliant at determining what the real price for the
determining what the real price for the marginal customer should be
marginal customer should be that's why when they close their doors
that's why when they close their doors at night they've sold virtually
at night they've sold virtually everything that they've produced that
everything that they've produced that day
day the first part of the law of marginality
the first part of the law of marginality says that the market clearing price is
says that the market clearing price is the price at which all customers will
the price at which all customers will satisfy their needs and all sellers will
satisfy their needs and all sellers will sell
sell all their products and services
all their products and services the market clearing price is the essence
the market clearing price is the essence of both micro and macro economics it's
of both micro and macro economics it's the core of understanding all economic
the core of understanding all economic activity it's the price at which the
activity it's the price at which the demand and the supply meet in perfect
demand and the supply meet in perfect equality
equality the market clearing price is the amount
the market clearing price is the amount at which all items for sale can be sold
at which all items for sale can be sold and which everyone who wants to purchase
and which everyone who wants to purchase an item and is willing to pay a
an item and is willing to pay a particular amount of money can be
particular amount of money can be satisfied
satisfied if the market clearing price is too low
if the market clearing price is too low there will still be customers with money
there will still be customers with money who want to buy the product but there
who want to buy the product but there won't be enough of it
won't be enough of it if the market clearing price is too high
if the market clearing price is too high there will still be items for sale but
there will still be items for sale but customers will be unable or unwilling to
customers will be unable or unwilling to purchase them
purchase them the second part of the law of
the second part of the law of marginality says that it is the behavior
marginality says that it is the behavior of people on the margin that determines
of people on the margin that determines all economic activity
all economic activity for example
for example it's not the tax rate in general but
it's not the tax rate in general but it's the marginal tax rate that
it's the marginal tax rate that determines savings investment and
determines savings investment and productive activity it's the amount that
productive activity it's the amount that a person is charged on each additional
a person is charged on each additional dollar of income that determines whether
dollar of income that determines whether or not he or she will make the
or not he or she will make the additional efforts necessary to earn
additional efforts necessary to earn that income
that income when tax rates go up too high people
when tax rates go up too high people simply stop working the additional
simply stop working the additional dollar of income after taxes is not
dollar of income after taxes is not worth giving up the enjoyment of leisure
worth giving up the enjoyment of leisure time and entertainment and other forms
time and entertainment and other forms of immediate gratification
of immediate gratification that are the alternative
that are the alternative the 15th law is the law of economic
the 15th law is the law of economic substitution which says that whenever a
substitution which says that whenever a good or service increases in price
good or service increases in price customers seek out substitutes that will
customers seek out substitutes that will yield them the same satisfaction at
yield them the same satisfaction at lower prices whenever a good or service
lower prices whenever a good or service or a quantity of labor becomes too
or a quantity of labor becomes too expensive customers begin to seek out
expensive customers begin to seek out lower price substitutes and
lower price substitutes and companies emerge in the marketplace to
companies emerge in the marketplace to offer them
offer them when american cars became more expensive
when american cars became more expensive to own and operate both japanese and
to own and operate both japanese and german car companies saw an opportunity
german car companies saw an opportunity to enter the market with lower prices
to enter the market with lower prices and lower cost of service
and lower cost of service many businesses have been started and
many businesses have been started and built on the awareness by an individual
built on the awareness by an individual that a market opportunity existed to
that a market opportunity existed to bring out a new product or service that
bring out a new product or service that was a satisfactory substitute for
was a satisfactory substitute for something that had been priced out of
something that had been priced out of the marketplace
the marketplace for example you probably remember that
for example you probably remember that when oil prices became too high people
when oil prices became too high people began thinking seriously about using
began thinking seriously about using propane in automobiles and using solar
propane in automobiles and using solar and wind energy to generate electricity
and wind energy to generate electricity and even cutting back on energy usage in
and even cutting back on energy usage in a household
a household all of these were acts of substitution
all of these were acts of substitution for what had become an expensive product
for what had become an expensive product or commodity
or commodity in the final analysis in economics the
in the final analysis in economics the reality principle rules all
reality principle rules all see the world as it is not as you wish
see the world as it is not as you wish it could be
it could be accept economic laws as facts of life
accept economic laws as facts of life not problems or difficulties to be
not problems or difficulties to be wrestled with or resolved
wrestled with or resolved except the fact that people act
except the fact that people act expediently and that within those
expediently and that within those behaviors lie endless opportunities for
behaviors lie endless opportunities for personal and business success
personal and business success accept the fact that people are what
accept the fact that people are what they are and that they're not going to
they are and that they're not going to change
change realize that individuals including men
realize that individuals including men and women elected to the highest offices
and women elected to the highest offices in the land as well as all the civil
in the land as well as all the civil servants and bureaucrats who work below
servants and bureaucrats who work below them are all motivated by expediency as
them are all motivated by expediency as well
well they'll always tend to be driven by
they'll always tend to be driven by their ambition greed laziness
their ambition greed laziness selfishness vanity ignorance and
selfishness vanity ignorance and impatience
impatience just like you
just like you they'll always strive to get the things
they'll always strive to get the things they want whatever they are at any given
they want whatever they are at any given moment with the least expenditure of
moment with the least expenditure of effort continually following the path of
effort continually following the path of least resistance with little or no
least resistance with little or no concern for the long-term consequences
concern for the long-term consequences of their actions
of their actions your success in life will be largely
your success in life will be largely determined by your ability to understand
determined by your ability to understand economic activity or human behavior as
economic activity or human behavior as it really is and to plan your personal
it really is and to plan your personal actions and behaviors for the long term
actions and behaviors for the long term rather than the short term
rather than the short term successful men and women are long-term
successful men and women are long-term thinkers they have a long time
thinkers they have a long time perspective they look way down the road
perspective they look way down the road and they make decisions and take actions
and they make decisions and take actions today the fruits of which in the long
today the fruits of which in the long term will be positive for them and the
term will be positive for them and the people around them
people around them your ability to internalize and to apply
your ability to internalize and to apply these economic laws and principles can
these economic laws and principles can have a major impact on everything that
have a major impact on everything that happens to you
happens to you [Music]
perhaps the most valued form of intelligence in our society the one that
intelligence in our society the one that pays the most and the one that will make
pays the most and the one that will make you the happiest is called
you the happiest is called social intelligence
social intelligence this comes from the extensive work done
this comes from the extensive work done at harvard university by dr howard
at harvard university by dr howard gardner on the human potential project
gardner on the human potential project in his book frames of mind he explains
in his book frames of mind he explains that there are several different forms
that there are several different forms of intelligence but that only
of intelligence but that only mathematical and verbal intelligence are
mathematical and verbal intelligence are ever measured during your years at
ever measured during your years at school
school he points out that there is also
he points out that there is also artistic intelligence and musical
artistic intelligence and musical intelligence athletic or physical
intelligence athletic or physical intelligence and scientific intelligence
intelligence and scientific intelligence his conclusion on intelligence is quite
his conclusion on intelligence is quite remarkable he suggests that everyone has
remarkable he suggests that everyone has a unique combination of different
a unique combination of different intelligences that make him or her
intelligences that make him or her exceptional and capable of performing in
exceptional and capable of performing in a superior fashion
a superior fashion if their combination of intelligences
if their combination of intelligences and abilities are matched to their tasks
and abilities are matched to their tasks and activities
and activities what we'll focus on in this session is
what we'll focus on in this session is social intelligence or the ability to
social intelligence or the ability to interact communicate negotiate and
interact communicate negotiate and compromise effectively with other people
compromise effectively with other people since your interactions with others
since your interactions with others account for perhaps eighty five percent
account for perhaps eighty five percent of your success and happiness in life
of your success and happiness in life it's well worth your while to do
it's well worth your while to do everything possible to improve these
everything possible to improve these skills
skills the laws of negotiating tie in very
the laws of negotiating tie in very closely to the laws of economics and
closely to the laws of economics and they're part and parcel of the same
they're part and parcel of the same thing
thing because each person places different
because each person places different values on different things at different
values on different things at different times
times everyone behaves economically in the
everyone behaves economically in the sense that they always strive to
sense that they always strive to negotiate the very best deal for
negotiate the very best deal for themselves
themselves every financial transaction is based on
every financial transaction is based on the law of subjective value where each
the law of subjective value where each party values what the other one has more
party values what the other one has more than they value what they're giving in
than they value what they're giving in trade
trade in a free society like ours commerce and
in a free society like ours commerce and trade only take place when each party
trade only take place when each party believes that based on their individual
believes that based on their individual values they'll be better off exchanging
values they'll be better off exchanging with the other than they would be if
with the other than they would be if they didn't
they didn't when you negotiate your subject to the
when you negotiate your subject to the economic laws of minimization and
economic laws of minimization and maximization you always want to get the
maximization you always want to get the very most for the very least all things
very most for the very least all things considered
considered whenever you're buying selling
whenever you're buying selling negotiating wages or salaries either as
negotiating wages or salaries either as an employer or as an employee or
an employer or as an employee or bargaining over the terms and conditions
bargaining over the terms and conditions of a purchase or sale you're negotiating
of a purchase or sale you're negotiating in some way
in some way in fact all of life is a negotiation
in fact all of life is a negotiation from the time you're an infant you
from the time you're an infant you negotiate for the attention of your
negotiate for the attention of your parents by crying loudly and you reward
parents by crying loudly and you reward their attention by lying peacefully
their attention by lying peacefully every child knows that love and kisses
every child knows that love and kisses are a currency that can be traded for
are a currency that can be traded for food attention warmth toys and other
food attention warmth toys and other things and children learn very early to
things and children learn very early to trade this currency carefully
trade this currency carefully since it's all they have to trade so to
since it's all they have to trade so to speak they don't spend it freely
speak they don't spend it freely in every relationship there's a certain
in every relationship there's a certain amount of negotiating and bargaining
amount of negotiating and bargaining going back and forth all the time
going back and forth all the time even when you drive from one place to
even when you drive from one place to another you're negotiating through
another you're negotiating through traffic letting other people get in
traffic letting other people get in front of you and you getting in front of
front of you and you getting in front of them
them when you go to a restaurant you
when you go to a restaurant you negotiate first of all to get a table
negotiate first of all to get a table and secondly to get the kind of table
and secondly to get the kind of table where you'd feel most comfortable
where you'd feel most comfortable it's not really a question of whether
it's not really a question of whether you negotiate
you negotiate the only question is
the only question is how well do you do it
how well do you do it there are 12 laws of negotiating that
there are 12 laws of negotiating that you can learn and practice that will
you can learn and practice that will help you to get far better deals than
help you to get far better deals than perhaps you've ever gotten before
perhaps you've ever gotten before the first law of negotiating is what i
the first law of negotiating is what i call nirenberg's law after gerard
call nirenberg's law after gerard nirenberg author of the book the art of
nirenberg author of the book the art of negotiating
negotiating this law according to nirenberg says
this law according to nirenberg says that
that the aim of a negotiation is to enter
the aim of a negotiation is to enter into an agreement such that both parties
into an agreement such that both parties have their needs satisfied and are
have their needs satisfied and are motivated to fulfill their agreements
motivated to fulfill their agreements and to enter into further negotiations
and to enter into further negotiations with the same party in the future
with the same party in the future this is a foundation law of negotiating
this is a foundation law of negotiating and needs to be broken down into its
and needs to be broken down into its constituent parts
constituent parts first
first the aim of a negotiation is to enter
the aim of a negotiation is to enter into an agreement
into an agreement it's not necessary to win or to somehow
it's not necessary to win or to somehow outsmart the other person
outsmart the other person the second part says
the second part says such that both parties have their needs
such that both parties have their needs satisfied
satisfied this means that an agreement where one
this means that an agreement where one or the other party feels that he or she
or the other party feels that he or she has lost
has lost does not fulfill the basic requirement
does not fulfill the basic requirement of a successful negotiation
of a successful negotiation the law then goes on to say
the law then goes on to say and are motivated to fulfill their
and are motivated to fulfill their agreements and enter into further
agreements and enter into further negotiations with the same party in the
negotiations with the same party in the future
future this simply means that both parties are
this simply means that both parties are satisfied enough with the outcome
satisfied enough with the outcome that they're motivated to fulfill
that they're motivated to fulfill whatever commitments they've made and
whatever commitments they've made and they feel positively enough toward the
they feel positively enough toward the situation that they're willing to
situation that they're willing to negotiate again and enter into
negotiate again and enter into agreements in the future
agreements in the future the second law of negotiating is what i
the second law of negotiating is what i call cubby's law after stephen covey who
call cubby's law after stephen covey who discusses negotiating in his book and
discusses negotiating in his book and his audio tape series seven habits of
his audio tape series seven habits of highly effective people which says
highly effective people which says in every ongoing negotiation you should
in every ongoing negotiation you should aim for a win-win solution
aim for a win-win solution or no deal
or no deal in other words by following this law
in other words by following this law when you enter into a negotiation you
when you enter into a negotiation you should be clear in advance in your own
should be clear in advance in your own mind that you will come out with a
mind that you will come out with a solution that represents a win for both
solution that represents a win for both parties or you will simply refuse to
parties or you will simply refuse to make any deal at all
make any deal at all the first part of covey's law says that
the first part of covey's law says that both parties must feel as if they have
both parties must feel as if they have won
won and had their needs satisfied
and had their needs satisfied and part two of the law says
and part two of the law says to reach a win-win agreement seek for a
to reach a win-win agreement seek for a third alternative that may be different
third alternative that may be different from the initial positions of either
from the initial positions of either party
party when you're determined to achieve a
when you're determined to achieve a win-win solution to a negotiation
win-win solution to a negotiation and you're open and receptive and
and you're open and receptive and flexible in your discussions you'll
flexible in your discussions you'll often come up with a third alternative
often come up with a third alternative that neither party is thought of
that neither party is thought of initially but which is superior to what
initially but which is superior to what either of you might have come up with on
either of you might have come up with on your own
your own for example
for example a husband and wife may want to take a
a husband and wife may want to take a summer vacation but he's very adamant
summer vacation but he's very adamant about going to the mountains and getting
about going to the mountains and getting a chance to hike and she's just as
a chance to hike and she's just as adamant about going to the beach and
adamant about going to the beach and getting a chance to sit in the sun
getting a chance to sit in the sun one or the other could dominate this
one or the other could dominate this negotiation or they could both stay home
negotiation or they could both stay home all forms of win lose lose win and lose
all forms of win lose lose win and lose lose
lose or they could compromise and spend half
or they could compromise and spend half their vacation in the mountains and half
their vacation in the mountains and half their vacation at the beach leaving each
their vacation at the beach leaving each of them dissatisfied for half the time
of them dissatisfied for half the time now the very best third alternative
now the very best third alternative however might be to go to a city like
however might be to go to a city like vancouver british columbia where the
vancouver british columbia where the mountains meet the sea
mountains meet the sea with this third alternative during the
with this third alternative during the day she could go to the beach and he
day she could go to the beach and he could go to the mountains they could
could go to the mountains they could both be together in the late afternoons
both be together in the late afternoons the evenings and early mornings and have
the evenings and early mornings and have a fully satisfying family vacation
a fully satisfying family vacation this kind of third alternative solution
this kind of third alternative solution is almost always available if you're
is almost always available if you're willing to look for it it simply
willing to look for it it simply requires a commitment to win-win
requires a commitment to win-win negotiating
negotiating once you've decided that you're only
once you've decided that you're only going to agree to a settlement that
going to agree to a settlement that leads to satisfaction for both parties
leads to satisfaction for both parties it doesn't mean that you have to accept
it doesn't mean that you have to accept any arrangement that you consider second
any arrangement that you consider second best
best with your values and your intentions
with your values and your intentions clear
clear you're now in a position to utilize
you're now in a position to utilize every strategy and tactic available to
every strategy and tactic available to you to get the very best deal that's
you to get the very best deal that's possible for you
possible for you the third law of negotiating is what i
the third law of negotiating is what i call cohen's law which comes from the
call cohen's law which comes from the book you can negotiate anything by herb
book you can negotiate anything by herb cohen one of america's finest writers
cohen one of america's finest writers and speakers on the subject
and speakers on the subject his law is simply everything is
his law is simply everything is negotiable
negotiable when you look at life as one long
when you look at life as one long extended negotiating process you find
extended negotiating process you find that almost every situation contains
that almost every situation contains elements that you can negotiate to
elements that you can negotiate to improve your personal level of
improve your personal level of satisfaction
satisfaction the first part of this law says that
the first part of this law says that established prices are just a best guess
established prices are just a best guess estimate of what the customer will pay
estimate of what the customer will pay this means that asking prices are only
this means that asking prices are only loosely connected to reality
loosely connected to reality the cost of manufacturing and marketing
the cost of manufacturing and marketing a particular product or service has very
a particular product or service has very little to do with the price that's put
little to do with the price that's put on it
on it price is arbitrary and merely reflects
price is arbitrary and merely reflects someone's opinion of what the market
someone's opinion of what the market will bear
will bear the second part of this law says that
the second part of this law says that any written price was written by someone
any written price was written by someone and can be changed by someone
and can be changed by someone for example i went into an expensive
for example i went into an expensive men's clothing store some years ago and
men's clothing store some years ago and looked at a beautiful five hundred
looked at a beautiful five hundred dollar cashmere overcoat that had been
dollar cashmere overcoat that had been marked down to three hundred fifty
marked down to three hundred fifty dollars and which was prominently
dollars and which was prominently displayed on sale
displayed on sale i asked the sales clerk if they would
i asked the sales clerk if they would sell that code for 250 dollars
sell that code for 250 dollars the clerk told me that was impossible no
the clerk told me that was impossible no one ever negotiated prices in this kind
one ever negotiated prices in this kind of store
of store what was written on the tag was the
what was written on the tag was the price and it couldn't be changed
price and it couldn't be changed well i realized immediately that i was
well i realized immediately that i was dealing with a person who had no
dealing with a person who had no authority so i very politely wrote down
authority so i very politely wrote down the amount 250 dollars on the back of my
the amount 250 dollars on the back of my business card and told him to give it to
business card and told him to give it to his manager who was out for lunch at the
his manager who was out for lunch at the time
time my offer would stay open until three p m
my offer would stay open until three p m that afternoon
that afternoon then i went back to my office
then i went back to my office at 2 30 p.m the telephone rang and a
at 2 30 p.m the telephone rang and a very surprised sales clerk told me that
very surprised sales clerk told me that he had gone to his manager and his
he had gone to his manager and his manager had agreed to accept the amount
manager had agreed to accept the amount of two hundred fifty dollars for the
of two hundred fifty dollars for the cashmere coat
cashmere coat even the sales clerk was astonished
even the sales clerk was astonished because he had no idea that
because he had no idea that everything is negotiable
everything is negotiable the fourth law of negotiating is what i
the fourth law of negotiating is what i call dawson's law which i've named after
call dawson's law which i've named after my friend roger dawson and which comes
my friend roger dawson and which comes from his best-selling audio program the
from his best-selling audio program the secrets of power negotiating
secrets of power negotiating dawson's law states that you can always
dawson's law states that you can always get a better deal if you know how
get a better deal if you know how dawson's first comment on this law is if
dawson's first comment on this law is if you want a better deal ask for it
you want a better deal ask for it the word ask is the most powerful word
the word ask is the most powerful word in the entire process of sales and
in the entire process of sales and negotiating
negotiating most people are so paralyzed by the fear
most people are so paralyzed by the fear of rejection and disapproval that
of rejection and disapproval that they're afraid to ask for anything out
they're afraid to ask for anything out of the ordinary you'll be quite
of the ordinary you'll be quite astonished at the good deals you can get
astonished at the good deals you can get by simply asking for a lower price if
by simply asking for a lower price if you're buying and asking for a higher
you're buying and asking for a higher price if you're selling
price if you're selling for example one of my seminar
for example one of my seminar participants is a real estate salesman
participants is a real estate salesman who goes out and looks at homes that
who goes out and looks at homes that have come in the market
have come in the market whatever the asking price he offers
whatever the asking price he offers fifty to sixty percent of that amount
fifty to sixty percent of that amount and he offers cash with a very short
and he offers cash with a very short time limit on the offer
time limit on the offer now he gets turned down dozens of times
now he gets turned down dozens of times however every so often
however every so often because of the seller's circumstances
because of the seller's circumstances the seller will accept his offer
the seller will accept his offer he can then get a first mortgage for
he can then get a first mortgage for more than he's agreed to pay which he
more than he's agreed to pay which he promptly does and then he either rents
promptly does and then he either rents the house or resells it at a higher
the house or resells it at a higher price
price and his secret is simple he simply asks
and his secret is simple he simply asks people to sell them their houses at far
people to sell them their houses at far lower prices than anyone else could ever
lower prices than anyone else could ever imagine
imagine roger dawson's second comment on this
roger dawson's second comment on this law is that whatever the suggested price
law is that whatever the suggested price react with disappointment and despair
react with disappointment and despair roger dawson suggests that you flinch no
roger dawson suggests that you flinch no matter what the price or the offer
matter what the price or the offer appears if you're in extreme pain and
appears if you're in extreme pain and then ask
then ask is that the best you can do
is that the best you can do and remain perfectly silent
and remain perfectly silent very often when you ask a person how
very often when you ask a person how much an item is and you flinch when they
much an item is and you flinch when they give you the price they'll lower the
give you the price they'll lower the price immediately
price immediately roger dawson's third comment on this law
roger dawson's third comment on this law is
is always imply that you can do better
always imply that you can do better somewhere else
somewhere else there's nothing that causes a seller's
there's nothing that causes a seller's price to drop faster than for you to
price to drop faster than for you to tell him that you can get the same item
tell him that you can get the same item cheaper from another source
cheaper from another source the fifth law of negotiating is the law
the fifth law of negotiating is the law of four
of four it says that in any negotiation there
it says that in any negotiation there are usually four main issues to be
are usually four main issues to be decided upon
decided upon the first part of the law of four says
the first part of the law of four says that eighty percent of the content of
that eighty percent of the content of the negotiation will revolve around
the negotiation will revolve around these four issues
these four issues this law of four and this factor of
this law of four and this factor of eighty percent turn out to be true in
eighty percent turn out to be true in almost every case i've spent two or
almost every case i've spent two or three days negotiating a forty to fifty
three days negotiating a forty to fifty page agreement full of clauses and
page agreement full of clauses and subclauses and different details and
subclauses and different details and terms and conditions and at the end
terms and conditions and at the end found that most of the discussion and
found that most of the discussion and the most important points of the
the most important points of the negotiation revolved around
negotiation revolved around four basic items
four basic items the second part of the law of four says
the second part of the law of four says that of the four main issues in any
that of the four main issues in any negotiation
negotiation one will be the main issue and three
one will be the main issue and three will be secondary issues
will be secondary issues the law of four can be extremely
the law of four can be extremely powerful if the other party's order of
powerful if the other party's order of importance of the four issues is
importance of the four issues is different from yours
different from yours one party may be more concerned about
one party may be more concerned about price and the other party may be more
price and the other party may be more concerned about terms
concerned about terms this can lead to an excellent win-win
this can lead to an excellent win-win solution that satisfies the most
solution that satisfies the most important needs of each party the sixth
important needs of each party the sixth law of negotiating is the law of timing
law of negotiating is the law of timing it says that the timing of a negotiation
it says that the timing of a negotiation can have a major impact on its outcome
can have a major impact on its outcome whenever possible you must plan
whenever possible you must plan strategically and use the timing of the
strategically and use the timing of the negotiation to your advantage
negotiation to your advantage for example
for example when buying rental property the smart
when buying rental property the smart negotiator will always arrange to take
negotiator will always arrange to take possession of the property before the
possession of the property before the beginning of the month
beginning of the month by doing this the new owner will collect
by doing this the new owner will collect all the cash rents that are due and will
all the cash rents that are due and will start the period of ownership with money
start the period of ownership with money in the bank
in the bank the first part of the law of timing is
the first part of the law of timing is that the more urgent the need the less
that the more urgent the need the less effective the negotiator
effective the negotiator if you're in a real hurry to close a
if you're in a real hurry to close a deal your ability to negotiate well on
deal your ability to negotiate well on your own behalf diminishes dramatically
your own behalf diminishes dramatically the second part of the law of timing
the second part of the law of timing says that the person who allows himself
says that the person who allows himself to be rushed will get the worst of the
to be rushed will get the worst of the bargain
bargain you must be very alert to the fact that
you must be very alert to the fact that this is a well-known truth and many
this is a well-known truth and many people will try to get the best of you
people will try to get the best of you by
by running out the clock to the point where
running out the clock to the point where you absolutely have to have what you've
you absolutely have to have what you've discussed and agreed upon and you often
discussed and agreed upon and you often have to accept less than you originally
have to accept less than you originally bargained for
bargained for the third part of the law of timing says
the third part of the law of timing says that the last twenty percent of any
that the last twenty percent of any discussion will contain the issues and
discussion will contain the issues and items that account for eighty percent of
items that account for eighty percent of the importance of the entire discussion
the importance of the entire discussion it always seems to be at the very end of
it always seems to be at the very end of a negotiation that the critical elements
a negotiation that the critical elements are resolved and agreed upon
are resolved and agreed upon a final point with regard to timing
a final point with regard to timing whenever possible you should delay in
whenever possible you should delay in making an important decision
making an important decision at the very least don't allow the other
at the very least don't allow the other person or persons to rush you into a
person or persons to rush you into a decision by suggesting that if you don't
decision by suggesting that if you don't act now it'll be too late
act now it'll be too late use time as a weapon to strengthen your
use time as a weapon to strengthen your hand and to improve your ability to
hand and to improve your ability to negotiate well
negotiate well the seventh law of negotiating is the
the seventh law of negotiating is the law of terms which is a direct outgrowth
law of terms which is a direct outgrowth of the law of timing
of the law of timing it says that the terms of payment can be
it says that the terms of payment can be more important than the price or almost
more important than the price or almost any other factor
any other factor for example i remember the first time i
for example i remember the first time i purchased a mercedes
purchased a mercedes i told the salesman that there was no
i told the salesman that there was no way i could afford it the car was too
way i could afford it the car was too expensive and my income simply wouldn't
expensive and my income simply wouldn't allow it
allow it of course i'd purchase cars before and
of course i'd purchase cars before and they'd all been financed over a three
they'd all been financed over a three year period
year period the salesman came back immediately and
the salesman came back immediately and said that because it was a mercedes it
said that because it was a mercedes it would hold its value it could be
would hold its value it could be financed over five years
financed over five years he then calculated what the monthly
he then calculated what the monthly payments would be on a five-year
payments would be on a five-year amortization
amortization as soon as i saw the number i did a
as soon as i saw the number i did a complete turnaround and agreed to buy
complete turnaround and agreed to buy the car even though it was very
the car even though it was very expensive
expensive the terms were more important than the
the terms were more important than the price
price the first part of the law of terms says
the first part of the law of terms says that you can agree to almost any price
that you can agree to almost any price if you can decide the terms
if you can decide the terms if you're negotiating and you really
if you're negotiating and you really want to purchase the item or sell it for
want to purchase the item or sell it for that matter and the price is the
that matter and the price is the sticking point
sticking point shift the focus of your discussion to
shift the focus of your discussion to the terms and see if you can't negotiate
the terms and see if you can't negotiate terms that make it possible for the
terms that make it possible for the price to be more acceptable
price to be more acceptable here's a true story that illustrates
here's a true story that illustrates this strategy
this strategy two older businessmen owned land in the
two older businessmen owned land in the tucson area and one of them sold his
tucson area and one of them sold his land to a developer for the amount of
land to a developer for the amount of one million dollars
one million dollars a developer friend of mine wanted to
a developer friend of mine wanted to purchase the land belonging to the
purchase the land belonging to the second businessman which was not as good
second businessman which was not as good a piece of land but the second gentleman
a piece of land but the second gentleman also wanted a million dollars
also wanted a million dollars as a matter of pride he didn't feel he
as a matter of pride he didn't feel he could accept less than his friend had
could accept less than his friend had received for his land even though the
received for his land even though the properties were quite different
properties were quite different in negotiating the terms however it
in negotiating the terms however it turned out that the seller didn't need
turned out that the seller didn't need the proceeds from the land
the proceeds from the land in fact they would harm his tax position
in fact they would harm his tax position he was going to leave the land to his
he was going to leave the land to his children and grandchildren anyway
children and grandchildren anyway so my developer friend agreed to pay one
so my developer friend agreed to pay one million dollars for the land but to
million dollars for the land but to spread the payments at a low rate of
spread the payments at a low rate of interest over a period of 20 years
interest over a period of 20 years on that basis the real cost of the land
on that basis the real cost of the land was considerably less but everyone ended
was considerably less but everyone ended up happy and satisfied
up happy and satisfied the terms were more important than the
the terms were more important than the price
price the second part of the law of terms says
the second part of the law of terms says simply that you should never jump at the
simply that you should never jump at the first offer
first offer even if the first offer is everything
even if the first offer is everything you could possibly ask for
you could possibly ask for don't accept it
don't accept it act just a little disappointed
act just a little disappointed ask for time to think it over ponder the
ask for time to think it over ponder the offer carefully
offer carefully realize that no matter how good the
realize that no matter how good the first offer is it just means that you
first offer is it just means that you can get an even better deal if you're
can get an even better deal if you're patient
patient the eighth law of negotiating is perhaps
the eighth law of negotiating is perhaps the most important of all
the most important of all it's the law of preparation
it's the law of preparation it states that fully eighty percent of
it states that fully eighty percent of your success in any negotiation will be
your success in any negotiation will be determined by how well you prepare in
determined by how well you prepare in advance
advance i've said before that action without
i've said before that action without planning is the cause of every failure
planning is the cause of every failure well negotiating without preparation is
well negotiating without preparation is the cause of just about every poor deal
the cause of just about every poor deal that you ever get
that you ever get the very best negotiators are the ones
the very best negotiators are the ones who take the time to prepare the most
who take the time to prepare the most thoroughly and to think through the
thoroughly and to think through the situation completely before the
situation completely before the negotiation begins
negotiation begins the first part of this law could be
the first part of this law could be called janine's rule from harold janine
called janine's rule from harold janine the president of itnt during the period
the president of itnt during the period when it grew into an international
when it grew into an international conglomerate composed of more than 150
conglomerate composed of more than 150 companies
companies he was adamant about this rule which
he was adamant about this rule which says
says get the facts
get the facts you must also take the time to get the
you must also take the time to get the facts prior to any negotiating situation
facts prior to any negotiating situation avoid the tendency to accept superficial
avoid the tendency to accept superficial answers or incomplete numbers
answers or incomplete numbers don't leap to conclusions
don't leap to conclusions ask questions listen carefully do your
ask questions listen carefully do your research and take notes
research and take notes this can make an extraordinary
this can make an extraordinary difference to the outcome
difference to the outcome the second part of the law of
the second part of the law of preparation says
preparation says do your homework
do your homework one small detail is all you need to
one small detail is all you need to succeed in a negotiation
succeed in a negotiation a book by the famous trial lawyer louis
a book by the famous trial lawyer louis niser entitled my life in court
niser entitled my life in court explained how over a career spanning
explained how over a career spanning more than 100 major trials he was able
more than 100 major trials he was able to win life and death cases for his
to win life and death cases for his clients because of the exhaustiveness of
clients because of the exhaustiveness of his preparation
his preparation sometimes it was just one small fact
sometimes it was just one small fact that he'd been able to uncover in many
that he'd been able to uncover in many hours of research that made all the
hours of research that made all the difference
difference the third part of the law of preparation
the third part of the law of preparation says
says check your assumptions
check your assumptions always ask
always ask what are my assumptions and what if i
what are my assumptions and what if i was wrong
was wrong remember incorrect assumptions lie at
remember incorrect assumptions lie at the root of many failures
the root of many failures when in doubt ask questions of anyone
when in doubt ask questions of anyone who can help you as a simple example one
who can help you as a simple example one of the assumptions that almost everyone
of the assumptions that almost everyone has when going into a negotiation is
has when going into a negotiation is that the other party wants to make a
that the other party wants to make a deal in the first place
deal in the first place this may not be the case at all
this may not be the case at all you need to test this assumption
you need to test this assumption sometimes the other party is only
sometimes the other party is only negotiating with you to increase his
negotiating with you to increase his leverage with someone else
leverage with someone else so
so never assume
never assume here's another example almost everyone
here's another example almost everyone in sales is on a monthly quota
in sales is on a monthly quota in the first half to three quarters of
in the first half to three quarters of the month most sales people are not too
the month most sales people are not too worried about reaching their quotas
worried about reaching their quotas if you go in at this time of the month
if you go in at this time of the month you'll assume that they want to make a
you'll assume that they want to make a deal
deal however in the last week of the month
however in the last week of the month the pressure is on
the pressure is on you can almost always get a better deal
you can almost always get a better deal in purchasing any large item if you do
in purchasing any large item if you do your tire kicking early in the month and
your tire kicking early in the month and you do your negotiating in the last
you do your negotiating in the last couple of days of the month
couple of days of the month knowing that one small detail can give
knowing that one small detail can give you an edge that can save or gain you
you an edge that can save or gain you hundreds even thousands of dollars over
hundreds even thousands of dollars over the course of your negotiating lifetime
the course of your negotiating lifetime the ninth law of negotiating is the law
the ninth law of negotiating is the law of reversal
of reversal this law says that putting yourself in
this law says that putting yourself in the situation of the other person
the situation of the other person first enables you to prepare
first enables you to prepare and to negotiate more effectively
and to negotiate more effectively before any negotiation of consequence or
before any negotiation of consequence or any negotiation that involves a lot of
any negotiation that involves a lot of money or details
money or details use the lawyer's method of preparation
use the lawyer's method of preparation in reverse
in reverse student lawyers are often given a case
student lawyers are often given a case to either prosecute or defend as an
to either prosecute or defend as an exercise
exercise they're then taught to prepare the other
they're then taught to prepare the other lawyer's case before they begin
lawyer's case before they begin preparing their own
preparing their own they sit down and look at all the
they sit down and look at all the information and evidence involved and
information and evidence involved and they imagine that they were on the other
they imagine that they were on the other side
side they prepare that side thoroughly with
they prepare that side thoroughly with the full intention of winning
the full intention of winning only when they feel they've covered all
only when they feel they've covered all the bases from the other point of view
the bases from the other point of view do they then begin to prepare their side
do they then begin to prepare their side of the issue
of the issue a good exercise for you is to sit down
a good exercise for you is to sit down with a pad of paper and write down
with a pad of paper and write down everything that you think may be of
everything that you think may be of concern to the person with whom you're
concern to the person with whom you're going to negotiate
going to negotiate writing things down clarifies them in
writing things down clarifies them in such a way that you can often see
such a way that you can often see possibilities that you might otherwise
possibilities that you might otherwise have overlooked
have overlooked when you've identified the major things
when you've identified the major things that you think the other party will want
that you think the other party will want you can then decide what you'll offer in
you can then decide what you'll offer in exchange and where you're strong where
exchange and where you're strong where you're weak and where there are possible
you're weak and where there are possible areas for compromise
areas for compromise this type of preparation by reversal is
this type of preparation by reversal is the hallmark of the superior negotiator
the hallmark of the superior negotiator another tactic that you can use that's
another tactic that you can use that's very helpful is to simply ask the other
very helpful is to simply ask the other person at the beginning of the
person at the beginning of the negotiation this question
negotiation this question why do you feel we are here and what
why do you feel we are here and what would you ideally like to accomplish in
would you ideally like to accomplish in this discussion
this discussion this simple question will demonstrate to
this simple question will demonstrate to the other person that you're reasonable
the other person that you're reasonable and open and interested in achieving a
and open and interested in achieving a mutually satisfactory result
mutually satisfactory result so just ask
so just ask why do you feel we are here and what
why do you feel we are here and what would you ideally like to accomplish in
would you ideally like to accomplish in this discussion
this discussion the other person will usually be quite
the other person will usually be quite willing to answer this question and
willing to answer this question and you'll be amazed at the results
you'll be amazed at the results this brings us now to the inner game and
this brings us now to the inner game and to the tenth law of negotiating the law
to the tenth law of negotiating the law of power
of power this law says that the person with the
this law says that the person with the greater power
greater power real or imagined will get the better
real or imagined will get the better deal in any negotiation
deal in any negotiation and the first part of the law of power
and the first part of the law of power says that
says that no one will negotiate with you unless
no one will negotiate with you unless they feel that you have the power to
they feel that you have the power to help them or hurt them in some way
help them or hurt them in some way the second part of this law says that
the second part of this law says that power is a matter of perception
power is a matter of perception it's in the eye of the beholder
it's in the eye of the beholder negotiator herb cohen says that the
negotiator herb cohen says that the three most important keys to negotiating
three most important keys to negotiating are power preparation and timing and of
are power preparation and timing and of these three power is often the most
these three power is often the most important and the most influential
important and the most influential there are ten different types of power
there are ten different types of power that you can develop and use either
that you can develop and use either individually or together to impress and
individually or together to impress and influence the other party in any
influence the other party in any negotiation
negotiation the more important the issue to be
the more important the issue to be negotiated the more time you should take
negotiated the more time you should take to consider how you can utilize one or
to consider how you can utilize one or more of these elements of power to
more of these elements of power to strengthen your position
strengthen your position the first is the power of indifference
the first is the power of indifference the party who appears to be the most
the party who appears to be the most indifferent to whether or not the
indifferent to whether or not the negotiation succeeds often has power
negotiation succeeds often has power over the other person if that person has
over the other person if that person has a greater stake in the outcome
a greater stake in the outcome whenever possible you should appear
whenever possible you should appear slightly detached and indifferent as
slightly detached and indifferent as though you don't really care one way or
though you don't really care one way or the other
the other the second form of power is the power of
the second form of power is the power of scarcity
scarcity whenever you can suggest or imply that
whenever you can suggest or imply that the item you're selling is in scarce
the item you're selling is in scarce supply and that there are others who
supply and that there are others who want it so the item will soon be gone
want it so the item will soon be gone anyway
anyway you can influence the negotiation in
you can influence the negotiation in your favor
your favor the third form of power is that of
the third form of power is that of authority
authority when you have an impressive title or you
when you have an impressive title or you look as though you have the authority to
look as though you have the authority to make big decisions
make big decisions this image alone often intimidates the
this image alone often intimidates the other person and enables you to get a
other person and enables you to get a better deal
better deal the fourth form of power is that of
the fourth form of power is that of courage
courage you build perception of this power by
you build perception of this power by being willing to take risks by being
being willing to take risks by being willing to speak out clearly and
willing to speak out clearly and forcefully and by being willing to
forcefully and by being willing to either put yourself on the line for this
either put yourself on the line for this deal or walk away from it
deal or walk away from it the fifth type of power is that of
the fifth type of power is that of commitment when you appear totally
commitment when you appear totally committed to success in an enterprise
committed to success in an enterprise you radiate an aura of power that often
you radiate an aura of power that often causes people to cooperate with you and
causes people to cooperate with you and go along with you
go along with you the sixth form of power you can develop
the sixth form of power you can develop is that of expertise
is that of expertise the power of expertise comes from your
the power of expertise comes from your making it obvious that you're extremely
making it obvious that you're extremely well informed on the subject under
well informed on the subject under negotiation
negotiation a person who is perceived as an expert
a person who is perceived as an expert in any situation has power over those
in any situation has power over those who don't feel as knowledgeable
who don't feel as knowledgeable the seventh form of power you can create
the seventh form of power you can create is called the power of knowledge of the
is called the power of knowledge of the needs of the other
needs of the other the more time that you take to find out
the more time that you take to find out exactly the situation of the other
exactly the situation of the other person the more power you have in the
person the more power you have in the negotiation
negotiation the eighth form of power is that of
the eighth form of power is that of empathy
empathy human beings are intensely emotional in
human beings are intensely emotional in everything they do and say and when they
everything they do and say and when they feel that the person they're negotiating
feel that the person they're negotiating with also has a high level of empathy
with also has a high level of empathy with them and with their situation
with them and with their situation they're much more likely to agree to
they're much more likely to agree to something that's more beneficial to the
something that's more beneficial to the negotiating party
negotiating party by the way
by the way every study of top negotiators shows
every study of top negotiators shows that they are highly empathetic
that they are highly empathetic low-keyed solution oriented
low-keyed solution oriented and pleasant individuals to do business
and pleasant individuals to do business with
with the picture of the tough talking
the picture of the tough talking negotiator is largely fictitious
negotiator is largely fictitious good negotiators are very nice people
good negotiators are very nice people and they make it clear from the
and they make it clear from the beginning that they really care about
beginning that they really care about reaching an agreement that everyone can
reaching an agreement that everyone can live with
live with the ninth form of power that you can
the ninth form of power that you can develop in negotiating is that of
develop in negotiating is that of rewarding or punishing
rewarding or punishing when the other party perceives that you
when the other party perceives that you have the capacity to help them get
have the capacity to help them get something they want or to withhold
something they want or to withhold something from them they're often far
something from them they're often far more cooperative
more cooperative and the tenth form of power is the power
and the tenth form of power is the power of investment either of time or money or
of investment either of time or money or both
both when you make it clear that you've
when you make it clear that you've invested a lot in the issue under
invested a lot in the issue under negotiation it gives you a form of power
negotiation it gives you a form of power that you wouldn't have had if you had
that you wouldn't have had if you had spent less time and effort
spent less time and effort and if you know that the other person
and if you know that the other person has invested a lot in the negotiation it
has invested a lot in the negotiation it also gives you power
also gives you power for example when i purchased my current
for example when i purchased my current house i sat down with the owner and told
house i sat down with the owner and told him personally that my wife and i had
him personally that my wife and i had looked at more than 150 houses and this
looked at more than 150 houses and this was the first house that we decided to
was the first house that we decided to make an offer on
make an offer on now even though the seller had only had
now even though the seller had only had the house on the market for a few weeks
the house on the market for a few weeks he recognized immediately that we were
he recognized immediately that we were serious and he negotiated with us in a
serious and he negotiated with us in a serious way
serious way leading ultimately to a satisfactory
leading ultimately to a satisfactory sale for him and a satisfactory purchase
sale for him and a satisfactory purchase for us
for us if we told him that this is one of the
if we told him that this is one of the first houses we looked at his attitude
first houses we looked at his attitude might have been completely different
might have been completely different in any case your choice in negotiating
in any case your choice in negotiating is either to be influenced or to
is either to be influenced or to influence the other party
influence the other party the more of these elements of power that
the more of these elements of power that you can bring to bear in a negotiation
you can bring to bear in a negotiation the more persuasive and effective you
the more persuasive and effective you will be the eleventh law of negotiating
will be the eleventh law of negotiating is the law of desire
is the law of desire it states that the person who most wants
it states that the person who most wants the negotiation to succeed has the least
the negotiation to succeed has the least bargaining power
bargaining power the first part of the law of desire says
the first part of the law of desire says then that no matter how badly you want
then that no matter how badly you want it you should appear neutral or only
it you should appear neutral or only mildly interested
mildly interested the more important it is to you the more
the more important it is to you the more important it is for you to appear
important it is for you to appear unemotional unaffected
unemotional unaffected and unreadable don't smile or appear
and unreadable don't smile or appear really interested in any way
really interested in any way the second part of the law of desire
the second part of the law of desire says that the more you can make the
says that the more you can make the other party want it the better deal you
other party want it the better deal you can get
can get this of course is the essence of
this of course is the essence of successful selling
successful selling desire is a critical element
desire is a critical element for example
for example chinese jade dealers were famous for
chinese jade dealers were famous for showing one item of jade jewelry at a
showing one item of jade jewelry at a time to a prospective customer
time to a prospective customer the chinese by long custom would keep
the chinese by long custom would keep their faces completely unemotional and
their faces completely unemotional and unreadable
unreadable however when the j dealer revealed a
however when the j dealer revealed a piece of jade that the customer really
piece of jade that the customer really liked the pupils of the customer's eyes
liked the pupils of the customer's eyes would dilate widely the j dealer would
would dilate widely the j dealer would be watching carefully for this and when
be watching carefully for this and when he saw the pupils dilate he knew which
he saw the pupils dilate he knew which item the customer wanted most and which
item the customer wanted most and which item to negotiate on the hardest
item to negotiate on the hardest the 12th law of negotiating is the law
the 12th law of negotiating is the law of reciprocity which states that you are
of reciprocity which states that you are strongly motivated to pay people back
strongly motivated to pay people back for anything that they do for you
for anything that they do for you this law of reciprocity is one of the
this law of reciprocity is one of the most powerful of all subconscious drives
most powerful of all subconscious drives there is within each person an intense
there is within each person an intense desire to be even with others
desire to be even with others if a person does something nice for us
if a person does something nice for us we feel that we're under an obligation
we feel that we're under an obligation and we seek every opportunity to do
and we seek every opportunity to do something nice back
something nice back so that we can even the score
so that we can even the score this law of reciprocity is most obvious
this law of reciprocity is most obvious in negotiating when the issue of
in negotiating when the issue of concessions comes up
concessions comes up the first part of this law says that the
the first part of this law says that the first party to make a concession will be
first party to make a concession will be the party who wants the deal the most
the party who wants the deal the most you must therefore avoid being the first
you must therefore avoid being the first one to make a concession even a small
one to make a concession even a small concession instead remain silent
concession instead remain silent the first party to make a concession
the first party to make a concession will tend to be the person who will go
will tend to be the person who will go on to make additional concessions and
on to make additional concessions and most purchasers or sellers are aware of
most purchasers or sellers are aware of this and recognize it so be careful
this and recognize it so be careful the second part of the law of
the second part of the law of reciprocity says that
reciprocity says that every concession you make in a
every concession you make in a negotiation
negotiation should be matched by an equal or greater
should be matched by an equal or greater concession by the other party
concession by the other party if the other party asks for a concession
if the other party asks for a concession you may give it but never without asking
you may give it but never without asking for something else in return
for something else in return if you don't request a reciprocal
if you don't request a reciprocal concession the concession that you give
concession the concession that you give will be considered to have little value
will be considered to have little value and it won't help you as the negotiation
and it won't help you as the negotiation proceeds
proceeds even if the concession is of no
even if the concession is of no importance to you
importance to you always attach it to something else
always attach it to something else the third part of the law of reciprocity
the third part of the law of reciprocity says
says make small concessions on small issues
make small concessions on small issues so that you can ask for reciprocity or
so that you can ask for reciprocity or large concessions on large issues
large concessions on large issues one of the very best negotiating
one of the very best negotiating strategies is to be willing to give in
strategies is to be willing to give in order to get
order to get when you make every effort to appear
when you make every effort to appear reasonable by conceding on issues that
reasonable by conceding on issues that are unimportant to you you put yourself
are unimportant to you you put yourself in an excellent position to request an
in an excellent position to request an equal or greater concession later
equal or greater concession later the thirteenth law the walk away law of
the thirteenth law the walk away law of negotiating states that you never know
negotiating states that you never know the final price and terms until you get
the final price and terms until you get up and walk away
up and walk away you may negotiate back and forth for a
you may negotiate back and forth for a long time and haggle in detail over
long time and haggle in detail over prices and terms but you never really
prices and terms but you never really know the best deal you can get until you
know the best deal you can get until you make it clear that you're prepared to
make it clear that you're prepared to walk out of the negotiation completely
walk out of the negotiation completely the first part of the walk away law says
the first part of the walk away law says that the power is on the side of the
that the power is on the side of the person who can walk out without
person who can walk out without flinching
flinching when you do walk out always be pleasant
when you do walk out always be pleasant locate and polite
locate and polite leave the door open so that you can
leave the door open so that you can enter back into the negotiation with no
enter back into the negotiation with no loss of face
loss of face the second part of this law says that
the second part of this law says that walking out of a negotiation is just
walking out of a negotiation is just another way of negotiating
another way of negotiating some of the very best negotiators both
some of the very best negotiators both nationally and internationally are
nationally and internationally are extremely adept at getting up and
extremely adept at getting up and walking out they will even leave the
walking out they will even leave the room leave the building the city and
room leave the building the city and even the country if necessary to
even the country if necessary to strengthen their hand and increase their
strengthen their hand and increase their perceived power in a negotiation
perceived power in a negotiation it's quite common when teams are
it's quite common when teams are negotiating for two or three of the key
negotiating for two or three of the key players on one team to get up angrily
players on one team to get up angrily storm out of the room and vow never to
storm out of the room and vow never to come back
come back however
however they will leave someone behind who will
they will leave someone behind who will then seek for some way to make peace
then seek for some way to make peace with his partners and bring them back
with his partners and bring them back into the discussion
into the discussion sometimes this is called good guy bad
sometimes this is called good guy bad guy
guy of the two types of negotiators one will
of the two types of negotiators one will be hard and demanding while the other
be hard and demanding while the other will be friendly and accommodating it's
will be friendly and accommodating it's all part of the game and you need to be
all part of the game and you need to be aware of it in case anyone ever tries to
aware of it in case anyone ever tries to use it on you
use it on you the fourteenth law of negotiating the
the fourteenth law of negotiating the law of finality states that no
law of finality states that no negotiation is ever final just because
negotiation is ever final just because you've reached an agreement and it's
you've reached an agreement and it's signed sealed and delivered remember the
signed sealed and delivered remember the first law of negotiating which says
first law of negotiating which says that the purpose of a negotiation is to
that the purpose of a negotiation is to enter into an agreement such that both
enter into an agreement such that both parties have their needs satisfied and
parties have their needs satisfied and are motivated to fulfill their
are motivated to fulfill their commitments and enter into subsequent
commitments and enter into subsequent negotiations with the same party
negotiations with the same party it often happens that once a negotiation
it often happens that once a negotiation is complete one or both parties thinks
is complete one or both parties thinks of something or becomes aware of an
of something or becomes aware of an issue that hasn't been satisfactorily
issue that hasn't been satisfactorily resolved
resolved maybe circumstances change between the
maybe circumstances change between the signing of the agreement and its
signing of the agreement and its implementation
implementation in any case one of the parties is not
in any case one of the parties is not happy with the result of the negotiation
happy with the result of the negotiation one party feels that he has lost
one party feels that he has lost the first part of the law of finality
the first part of the law of finality says that if you're not happy with the
says that if you're not happy with the existing agreement ask to reopen the
existing agreement ask to reopen the negotiation
negotiation remember most people are quite
remember most people are quite reasonable most people want you to be
reasonable most people want you to be happy with the terms agreed upon in a
happy with the terms agreed upon in a negotiation especially if the terms are
negotiation especially if the terms are to be carried out over a long period of
to be carried out over a long period of time
time if you find that you're not happy with a
if you find that you're not happy with a particular term or condition
particular term or condition before you go back to the other party
before you go back to the other party think of some of the reasons why it
think of some of the reasons why it would be beneficial to the other party
would be beneficial to the other party to make these changes
to make these changes don't be afraid to point out that you're
don't be afraid to point out that you're not happy with this situation and that
not happy with this situation and that you'd like to change the agreement so
you'd like to change the agreement so that you feel it's more fair and
that you feel it's more fair and equitable
equitable the second part of the law of finality
the second part of the law of finality says
says use zero-based thinking on a regular
use zero-based thinking on a regular basis by asking yourself
basis by asking yourself if you had it to do over
if you had it to do over would you agree to the same terms
would you agree to the same terms to summarize these laws on negotiating
to summarize these laws on negotiating remember the bottom line of this entire
remember the bottom line of this entire session simply says that negotiating is
session simply says that negotiating is a normal and natural part of life and
a normal and natural part of life and that you owe it to yourself to become
that you owe it to yourself to become very good at it
very good at it as in anything else the key to
as in anything else the key to excellence is for you to practice at
excellence is for you to practice at every opportunity
every opportunity make it a game
make it a game ask for better prices and better terms
ask for better prices and better terms for better conditions and better
for better conditions and better interest rates and better everything
interest rates and better everything realize that you can save yourself the
realize that you can save yourself the equivalent of months and even years of
equivalent of months and even years of hard work by learning how to become an
hard work by learning how to become an excellent negotiator on your own behalf
excellent negotiator on your own behalf and you can if you think you can
and you can if you think you can [Music]
one of the major ingredients of happiness and one of the most important
happiness and one of the most important needs that you must satisfy is the need
needs that you must satisfy is the need to obtain enough money so that you don't
to obtain enough money so that you don't need to worry about money
need to worry about money i spoke earlier about the law of cause
i spoke earlier about the law of cause and effect and its sub law the law of
and effect and its sub law the law of belief
belief there's perhaps no other area where
there's perhaps no other area where these laws are more in evidence than in
these laws are more in evidence than in the acquiring and keeping of money
the acquiring and keeping of money hundreds of thousands of men and women
hundreds of thousands of men and women have started with nothing or even deeply
have started with nothing or even deeply in debt and achieved financial
in debt and achieved financial independence
independence their attitudes and behaviors have been
their attitudes and behaviors have been studied extensively so we now know the
studied extensively so we now know the causes of financial freedom better than
causes of financial freedom better than ever before
ever before and your most cherished beliefs on this
and your most cherished beliefs on this subject of money will be the primary
subject of money will be the primary determinants of how much you get and how
determinants of how much you get and how much you keep over the course of your
much you keep over the course of your working lifetime
working lifetime one of the deepest needs of human nature
one of the deepest needs of human nature as you know is to feel financially
as you know is to feel financially secure and safe
secure and safe you can only free yourself from the fear
you can only free yourself from the fear of poverty and failure by achieving a
of poverty and failure by achieving a certain financial estate and then by
certain financial estate and then by building a fortress around it so that
building a fortress around it so that you're safe and impregnable
you're safe and impregnable this achievement of financial
this achievement of financial independence must be one of your primary
independence must be one of your primary duties and responsibilities because no
duties and responsibilities because no one else will do it for you
one else will do it for you i've said before that money is a
i've said before that money is a deficiency need in that when you have
deficiency need in that when you have enough you don't think about it but when
enough you don't think about it but when you have too little you think of nothing
you have too little you think of nothing else
else money problems are the primary reason
money problems are the primary reason for marital breakdown for business
for marital breakdown for business collapse for the ruination of
collapse for the ruination of friendships
friendships and for psychosomatic illnesses of all
and for psychosomatic illnesses of all kinds
kinds the reality principle or the law of
the reality principle or the law of reality holds true with regard to money
reality holds true with regard to money you remember this principle which states
you remember this principle which states that you must deal with life as it is
that you must deal with life as it is not as you wish it were or could be
not as you wish it were or could be many people live in a world of self
many people live in a world of self delusion where they wish and hope and
delusion where they wish and hope and pray about certain subjects and goals
pray about certain subjects and goals which they know
which they know deep in their hearts will never
deep in their hearts will never materialize
materialize perhaps the most common difficulty that
perhaps the most common difficulty that people have in obtaining financial
people have in obtaining financial independence is a deep seated belief
independence is a deep seated belief that somehow money is wrong
that somehow money is wrong and that people who have a lot of it are
and that people who have a lot of it are inherently evil
inherently evil this belief isn't based on any factual
this belief isn't based on any factual foundation but goes back to early
foundation but goes back to early childhood conditioning when the growing
childhood conditioning when the growing child is often convinced of this idea
child is often convinced of this idea because of other people's desire to
because of other people's desire to rationalize away their own financial
rationalize away their own financial failures
failures for example when my wife and i got
for example when my wife and i got married her entire family attended the
married her entire family attended the wedding as did my employer a man worth
wedding as did my employer a man worth more than 500 million dollars
more than 500 million dollars all their lives the members of my wife's
all their lives the members of my wife's family had been led to believe that
family had been led to believe that poverty was a virtue and by extension
poverty was a virtue and by extension financial success was somehow unclean or
financial success was somehow unclean or evil
evil they were astonished to find that my
they were astonished to find that my employer the richest man that they'd
employer the richest man that they'd ever met or even heard of in their whole
ever met or even heard of in their whole lives
lives was devoutly religious
was devoutly religious he was a solid family man
he was a solid family man very low keyed very polite
very low keyed very polite courteous
courteous and quite charming
and quite charming it took them months even years to
it took them months even years to readjust their thinking because they'd
readjust their thinking because they'd been led to believe that anyone with
been led to believe that anyone with that kind of money must be bad in some
that kind of money must be bad in some way
way the fact is that money is good and it's
the fact is that money is good and it's largely attracted to good people who are
largely attracted to good people who are good with it
good with it money tends to flow toward those people
money tends to flow toward those people who can use it in the most productive
who can use it in the most productive way to create goods and services and
way to create goods and services and employment and productive activities
employment and productive activities that benefit many others
that benefit many others at the same time
at the same time money flows away from those who use it
money flows away from those who use it poorly or who waste it non-productively
poorly or who waste it non-productively money is very much like a lover
money is very much like a lover it must be courted and coaxed and
it must be courted and coaxed and flattered and treated with care and
flattered and treated with care and attention it gravitates toward people
attention it gravitates toward people who respect it and value it and are
who respect it and value it and are capable of doing worthwhile things with
capable of doing worthwhile things with it it flows through the fingers of
it it flows through the fingers of people who don't understand it or take
people who don't understand it or take proper care of it
proper care of it sometimes people say that they're not
sometimes people say that they're not very good with money
very good with money being good with money is a skill that
being good with money is a skill that anyone can learn through practice
anyone can learn through practice usually saying that one isn't very good
usually saying that one isn't very good with money is merely an excuse or a
with money is merely an excuse or a rationalization for the fact that the
rationalization for the fact that the person is not very successful with money
person is not very successful with money the person who says this hasn't learned
the person who says this hasn't learned how to acquire it or to hold on to it
how to acquire it or to hold on to it the starting point of accumulating money
the starting point of accumulating money is for you to begin to believe that you
is for you to begin to believe that you have an unlimited capacity to obtain all
have an unlimited capacity to obtain all the money that you'll ever need
the money that you'll ever need look upon yourself as a series of
look upon yourself as a series of financial opportunities just waiting for
financial opportunities just waiting for a place to happen
a place to happen money buys freedom
money buys freedom money gives you choices and enables you
money gives you choices and enables you to live your life the way you want to
to live your life the way you want to live it
live it money opens doors for you that would
money opens doors for you that would have been closed in its absence but just
have been closed in its absence but just like anything an obsession with money
like anything an obsession with money can be hurtful
can be hurtful even the bible says the love of money is
even the bible says the love of money is the root of all evil it doesn't say that
the root of all evil it doesn't say that money is the root of all evil it says
money is the root of all evil it says that the love of money is the root of
that the love of money is the root of all evil
all evil it's the preoccupation with money to the
it's the preoccupation with money to the exclusion of the really important things
exclusion of the really important things in life that is the problem not the
in life that is the problem not the money itself
money itself money itself is neither good or bad
money itself is neither good or bad it's only the way that it's acquired and
it's only the way that it's acquired and the uses to which it's put that places
the uses to which it's put that places any value on money at all
any value on money at all there are 13 laws of money that you can
there are 13 laws of money that you can apply to acquire and to keep more of it
apply to acquire and to keep more of it in your life
in your life the first is the law of abundance
the first is the law of abundance this law states that there is an ample
this law states that there is an ample supply for everyone who really wants it
supply for everyone who really wants it and who obeys the laws of cause and
and who obeys the laws of cause and effect
effect as they apply to money
as they apply to money the law of abundance is another way of
the law of abundance is another way of saying that there's plenty of money
saying that there's plenty of money around and available to you there's no
around and available to you there's no real shortage you can have virtually all
real shortage you can have virtually all you want and need
you want and need the first part of the law of abundance
the first part of the law of abundance says that
says that people are rich because they decide to
people are rich because they decide to be rich
be rich you can also say that they're rich
you can also say that they're rich because they believe they have the
because they believe they have the capacity to become rich and in so
capacity to become rich and in so believing they take the necessary
believing they take the necessary actions that turn their beliefs into
actions that turn their beliefs into realities
realities the second part of this law is that
the second part of this law is that people are poor because they haven't yet
people are poor because they haven't yet decided to be rich
decided to be rich in the book the instant millionaire by
in the book the instant millionaire by mark fisher he asks the question
mark fisher he asks the question why aren't you rich already
why aren't you rich already however you answer this question will
however you answer this question will reveal a lot about yourself
reveal a lot about yourself your answers will expose your
your answers will expose your self-limiting beliefs your doubts your
self-limiting beliefs your doubts your fears your excuses your rationalizations
fears your excuses your rationalizations and your justifications
and your justifications so
so why aren't you rich yet
why aren't you rich yet whatever your answer is and you should
whatever your answer is and you should write down your answers on paper
write down your answers on paper it's up to you to make a plan to remove
it's up to you to make a plan to remove the obstacles between you and the amount
the obstacles between you and the amount of money you wish to acquire
of money you wish to acquire the second law of money is the law of
the second law of money is the law of exchange
exchange it states that money is the medium
it states that money is the medium through which people exchange their
through which people exchange their production of goods and services for the
production of goods and services for the goods and services of others
goods and services of others before there was money there was barter
before there was money there was barter in barter people exchanged goods and
in barter people exchanged goods and services directly for goods and services
services directly for goods and services without the medium of money
without the medium of money as civilization grew and barter became
as civilization grew and barter became too clumsy people found that they could
too clumsy people found that they could exchange their goods and services what
exchange their goods and services what they produced into a medium like coins
they produced into a medium like coins which they could then exchange for the
which they could then exchange for the goods and services of others thereby
goods and services of others thereby making the whole process more efficient
making the whole process more efficient today we go to work and exchange our
today we go to work and exchange our work for money which we then use to
work for money which we then use to purchase the results of the work of
purchase the results of the work of other people
other people the first part of the law of exchange
the first part of the law of exchange says
says money is a measure of the value that
money is a measure of the value that people place on goods and services
people place on goods and services in the laws of economics i describe the
in the laws of economics i describe the law of subjective value and the fact
law of subjective value and the fact that it's only what a person will pay of
that it's only what a person will pay of their own money which represents their
their own money which represents their efforts that determines the value of
efforts that determines the value of something
something every item for sale is priced based on
every item for sale is priced based on what that person will exchange for it
what that person will exchange for it the second part of this law says that
the second part of this law says that your labor is considered a factor of
your labor is considered a factor of production or a cost by everyone else
production or a cost by everyone else we each have a tendency to look upon the
we each have a tendency to look upon the sweat of our brow or our work as
sweat of our brow or our work as something special because it's so
something special because it's so intensely personal
intensely personal however
however we can't place a value on our own labor
we can't place a value on our own labor the third part of this law then says
the third part of this law then says that is only what other people are
that is only what other people are willing to pay for our labor in a
willing to pay for our labor in a competitive marketplace that determines
competitive marketplace that determines what we're worth
what we're worth earl nightingale once said that you'll
earl nightingale once said that you'll always be paid in direct proportion to
always be paid in direct proportion to the work you do
the work you do how well you do it and the difficulty of
how well you do it and the difficulty of replacing you
replacing you the quality and quality of your
the quality and quality of your contribution in comparison with the
contribution in comparison with the contributions of others and the value
contributions of others and the value that people place on those contributions
that people place on those contributions will determine exactly how much you're
will determine exactly how much you're paid
paid the fourth part of the law of exchange
the fourth part of the law of exchange says that money is an effect not a cause
says that money is an effect not a cause your work or contribution to the value
your work or contribution to the value of a product or service is the cause and
of a product or service is the cause and the wage salary or earnings that come
the wage salary or earnings that come out is the effect
out is the effect if you wish to increase the effect you
if you wish to increase the effect you have to increase the cost
have to increase the cost i'll talk about this more a little bit
i'll talk about this more a little bit later in the
later in the program the fifth part of the law of
program the fifth part of the law of exchange says that to increase the
exchange says that to increase the amount of money you're getting out you
amount of money you're getting out you must increase the value of the work that
must increase the value of the work that you're putting in
you're putting in to earn more money
to earn more money you must increase your knowledge or
you must increase your knowledge or increase your skill or improve your work
increase your skill or improve your work habits or work longer and harder hours
habits or work longer and harder hours or work more creatively or do something
or work more creatively or do something that enables you to get greater leverage
that enables you to get greater leverage from your talents
from your talents sometimes you have to do all of these
sometimes you have to do all of these together
together the highest paid people in our society
the highest paid people in our society are those who are using more of these
are those who are using more of these factors in coordination to dramatically
factors in coordination to dramatically add value to the work that they're doing
add value to the work that they're doing the third law of money is the law of
the third law of money is the law of capital which states that your most
capital which states that your most valuable asset in terms of cash flow is
valuable asset in terms of cash flow is your physical and mental capital your
your physical and mental capital your earning ability
earning ability you may not even be aware that your
you may not even be aware that your ability to work is the most valuable
ability to work is the most valuable asset that you have
asset that you have by utilizing your earning ability to its
by utilizing your earning ability to its fullest you can pump literally thousands
fullest you can pump literally thousands of dollars per year into your life
of dollars per year into your life by applying your earning ability to the
by applying your earning ability to the production of valuable goods and
production of valuable goods and services you can generate sufficient
services you can generate sufficient money to pay for all the things that you
money to pay for all the things that you want and more besides
want and more besides the amount of money that you are paid is
the amount of money that you are paid is a direct measure of the extent to which
a direct measure of the extent to which you've developed your earning ability so
you've developed your earning ability so far
far the first part of the law of capital
the first part of the law of capital says that your most precious resource is
says that your most precious resource is your time
your time your time is really all you have to sell
your time is really all you have to sell how much time you put in and how much of
how much time you put in and how much of yourself you put into that time
yourself you put into that time largely determines your earning ability
largely determines your earning ability poor time management is one of the major
poor time management is one of the major reasons for underachievement and failure
reasons for underachievement and failure in almost every industry in america
in almost every industry in america the second part of the law of capital
the second part of the law of capital says that
says that time and money can be either spent or
time and money can be either spent or invested
invested to a certain degree your time and your
to a certain degree your time and your money are interchangeable
money are interchangeable you can spend your money to save time or
you can spend your money to save time or you can spend your time to save money
you can spend your time to save money you can spend your time or money in
you can spend your time or money in which case they're gone forever or if
which case they're gone forever or if you choose you can invest either your
you choose you can invest either your time or your money or both and get a
time or your money or both and get a return on your investment
return on your investment one of the smartest things that you can
one of the smartest things that you can do is to invest
do is to invest three percent of your income or more
three percent of your income or more every month and
every month and one hour of your time every day into
one hour of your time every day into increasing your earning ability and into
increasing your earning ability and into building your human capital
building your human capital this commitment to personal and
this commitment to personal and professional development will pay off
professional development will pay off for you in greater measure than you can
for you in greater measure than you can believe
believe your return on the investment of your
your return on the investment of your time and money into yourself can be
time and money into yourself can be absolutely extraordinary
absolutely extraordinary the head of training for motorola
the head of training for motorola recently estimated that his company is
recently estimated that his company is getting thirty dollars back for every
getting thirty dollars back for every dollar they invest in training
dollar they invest in training he says that it's the highest payoff use
he says that it's the highest payoff use of time and money that the company can
of time and money that the company can engage in and they're increasing their
engage in and they're increasing their expenditures to 4.8 percent of gross
expenditures to 4.8 percent of gross sales to invest in training
sales to invest in training therefore the third part of the law of
therefore the third part of the law of capital says that one of the best
capital says that one of the best investments of your time and money is
investments of your time and money is into increasing your earning ability
into increasing your earning ability the fourth law of money is the law of
the fourth law of money is the law of time perspective
time perspective this comes from some pioneering work in
this comes from some pioneering work in sociology and success conducted by dr
sociology and success conducted by dr edward banfield of harvard university in
edward banfield of harvard university in the late fifties and early sixties
the late fifties and early sixties after studying many of the factors that
after studying many of the factors that were thought to contribute to financial
were thought to contribute to financial success in the course of a person's
success in the course of a person's lifetime
lifetime he concluded that there was one primary
he concluded that there was one primary factor that seemed to take precedence
factor that seemed to take precedence over all the others
over all the others he called it time perspective this law
he called it time perspective this law then says that the most successful
then says that the most successful people in any society are those who take
people in any society are those who take the longest time period into
the longest time period into consideration when making their
consideration when making their day-to-day decisions
day-to-day decisions what banfield found was that the higher
what banfield found was that the higher you go up in any society the longer is
you go up in any society the longer is the time perspective or point of view of
the time perspective or point of view of the people at that level
the people at that level an obvious example you're familiar with
an obvious example you're familiar with is the man or woman who spends 10 or 12
is the man or woman who spends 10 or 12 years studying and interning to become a
years studying and interning to become a doctor
doctor this person takes an extraordinarily
this person takes an extraordinarily long time to lay down the foundation for
long time to lay down the foundation for a lifetime career
a lifetime career as you go down the socioeconomic ladder
as you go down the socioeconomic ladder at each rung the individuals at that
at each rung the individuals at that level of earnings have a shorter and
level of earnings have a shorter and shorter time perspective
shorter time perspective at the bottom of the social ladder the
at the bottom of the social ladder the hopeless alcoholic or drug addict has a
hopeless alcoholic or drug addict has a time perspective that is less than one
time perspective that is less than one hour
hour wonderfully enough you begin to elevate
wonderfully enough you begin to elevate yourself socially and financially from
yourself socially and financially from the day that you begin thinking about
the day that you begin thinking about what you're doing in terms of the
what you're doing in terms of the possible
possible long-term consequences of your actions
long-term consequences of your actions and inactions
and inactions the first part of the law of time
the first part of the law of time perspective then says that delayed
perspective then says that delayed gratification is the key to financial
gratification is the key to financial success
success your ability to resist the law of
your ability to resist the law of expediency which urges you to satisfy
expediency which urges you to satisfy your desires the fastest and easiest way
your desires the fastest and easiest way possible is the starting point of
possible is the starting point of developing a long time perspective
developing a long time perspective this attitude is essential to financial
this attitude is essential to financial achievement of any kind
achievement of any kind the second part of the law of time
the second part of the law of time perspective says that self-discipline is
perspective says that self-discipline is the most important personal quality for
the most important personal quality for long-term success
long-term success your ability to discipline yourself is
your ability to discipline yourself is probably the most important single
probably the most important single quality that you can develop in your
quality that you can develop in your movement toward greater success and
movement toward greater success and accomplishment
accomplishment the third part of this law says that
the third part of this law says that sacrifice in the short term
sacrifice in the short term is the price you pay for security in the
is the price you pay for security in the long term
long term the key word here is sacrifice
the key word here is sacrifice parents who work hard and save their
parents who work hard and save their money so that their children will have
money so that their children will have an opportunity to get an excellent
an opportunity to get an excellent education are practicing
education are practicing long time perspective
long time perspective they're making decisions that can affect
they're making decisions that can affect their children in future generations
their children in future generations the fifth law of money is the law of
the fifth law of money is the law of saving
saving this law states that financial freedom
this law states that financial freedom comes to the person who saves 10 percent
comes to the person who saves 10 percent or more
or more of his or her income throughout his or
of his or her income throughout his or her lifetime one of the smartest things
her lifetime one of the smartest things you can ever do for yourself is to
you can ever do for yourself is to develop the habit of saving part of your
develop the habit of saving part of your salary from the time you take your first
salary from the time you take your first job
job individuals families and even societies
individuals families and even societies are stable and successful to the degree
are stable and successful to the degree to which they have high
to which they have high savings rates
savings rates savings today are what guarantee the
savings today are what guarantee the security and the possibilities of
security and the possibilities of tomorrow
tomorrow the first part of the law of saving
the first part of the law of saving comes from the famous book entitled the
comes from the famous book entitled the richest man in babylon by george clarson
richest man in babylon by george clarson in it he recommends that you save 10
in it he recommends that you save 10 percent of your income in a fund for
percent of your income in a fund for long-term financial accumulation and his
long-term financial accumulation and his rule is simply
rule is simply pay yourself first
pay yourself first however much you earn take 10 percent
however much you earn take 10 percent off the top and pay it to yourself in
off the top and pay it to yourself in the form of a long-term savings or
the form of a long-term savings or investment account
investment account before you go on to pay your regular
before you go on to pay your regular operating expenses
operating expenses the remarkable thing you'll find is that
the remarkable thing you'll find is that when you pay yourself first
when you pay yourself first and force yourself to live on the other
and force yourself to live on the other ninety percent it soon becomes fairly
ninety percent it soon becomes fairly easy
easy many people go from paying themselves
many people go from paying themselves first with ten percent of their income
first with ten percent of their income to eventually saving fifteen percent and
to eventually saving fifteen percent and twenty percent and even more and their
twenty percent and even more and their financial lives changed dramatically as
financial lives changed dramatically as a result
a result the second part of the law of saving
the second part of the law of saving says
says take advantage of tax deferred savings
take advantage of tax deferred savings and investment plans
and investment plans because of high tax rates money that is
because of high tax rates money that is saved or invested without being taxed
saved or invested without being taxed accumulates at a rate of 30 to 40
accumulates at a rate of 30 to 40 percent faster than money that's subject
percent faster than money that's subject to taxation
to taxation in the book by charles givens wealth
in the book by charles givens wealth without risk he lays out a variety of
without risk he lays out a variety of strategies for saving money on your
strategies for saving money on your day-to-day expenses and putting that
day-to-day expenses and putting that money away carefully so that it
money away carefully so that it accumulates over time to ultimately
accumulates over time to ultimately bring you the financial security that
bring you the financial security that you desire
you desire and he strongly recommends tax deferred
and he strongly recommends tax deferred savings
savings the third part of this law is that once
the third part of this law is that once you start a savings program
you start a savings program never use the money for anything but
never use the money for anything but financial accumulation
financial accumulation it's sad but true that if you save for a
it's sad but true that if you save for a rainy day the one thing that you can be
rainy day the one thing that you can be sure of is that it's going to start
sure of is that it's going to start raining very soon
raining very soon if you save with the intention of
if you save with the intention of spending the money as soon as you need
spending the money as soon as you need it you're going to need it sooner than
it you're going to need it sooner than you realize
you realize your philosophy of saving should be that
your philosophy of saving should be that once you put the money away you never
once you put the money away you never spend it on anything
spend it on anything if you want to save for a rainy day or a
if you want to save for a rainy day or a car or a house or a motor home you set
car or a house or a motor home you set up separate savings accounts for them
up separate savings accounts for them but once you've begun your wealth
but once you've begun your wealth accumulation account you discipline
accumulation account you discipline yourself not to ever touch it and not
yourself not to ever touch it and not for any reason
for any reason the sixth law of money is the law of
the sixth law of money is the law of conservation which says that it's not
conservation which says that it's not how much you make but how much you keep
how much you make but how much you keep that will determine your financial
that will determine your financial future
future many people make a lot of money in the
many people make a lot of money in the course of their working lifetimes
course of their working lifetimes sometimes during boom periods people
sometimes during boom periods people greatly exceed their expectations and
greatly exceed their expectations and make more money than they ever thought
make more money than they ever thought possible
possible unfortunately they develop the walk on
unfortunately they develop the walk on water syndrome and they begin to believe
water syndrome and they begin to believe that it's because of their remarkable
that it's because of their remarkable skills and abilities that they're doing
skills and abilities that they're doing so well in a particular field
so well in a particular field in many cases it's just because the
in many cases it's just because the economy or that particular field is
economy or that particular field is booming
booming these people often assume that because
these people often assume that because they're making a lot of money they have
they're making a lot of money they have the ability to make a lot more
the ability to make a lot more indefinitely they then go on to spend
indefinitely they then go on to spend everything they earn
everything they earn remember the true measure of how well
remember the true measure of how well you're really doing is how much you keep
you're really doing is how much you keep out of the amount that you earn
out of the amount that you earn successful people are very fastidious
successful people are very fastidious about putting away chunks of money and
about putting away chunks of money and paying down debt during the prosperous
paying down debt during the prosperous times so that they have a solid
times so that they have a solid financial foundation that isn't
financial foundation that isn't threatened when the economy or business
threatened when the economy or business turns downward
turns downward the seventh law of money is called
the seventh law of money is called parkinson's law parkinson's law is one
parkinson's law parkinson's law is one of the best known and the most important
of the best known and the most important laws of money and wealth accumulation
laws of money and wealth accumulation it was put forth by see north coat
it was put forth by see north coat parkinson of london england many years
parkinson of london england many years ago and it says simply that
ago and it says simply that expenses always rise to meet income
expenses always rise to meet income no matter how much people make they have
no matter how much people make they have a tendency to spend the whole amount and
a tendency to spend the whole amount and a little bit more besides
a little bit more besides expenditures always seem to rise to meet
expenditures always seem to rise to meet income
income the first part of parkinson's law is
the first part of parkinson's law is extremely important it simply says
extremely important it simply says financial security comes from violating
financial security comes from violating parkinson's law
parkinson's law it's only to the degree to which you
it's only to the degree to which you resist the powerful urge to spend
resist the powerful urge to spend everything you make that you begin to
everything you make that you begin to build your financial fortress and to
build your financial fortress and to move ahead of the crowd
move ahead of the crowd the second part of parkinson's law is
the second part of parkinson's law is that
that if you allow your expenses to increase
if you allow your expenses to increase at a slower rate than your income and
at a slower rate than your income and you save or invest the difference
you save or invest the difference you'll become financially independent in
you'll become financially independent in your working lifetime
your working lifetime this is the key i call it the wedge if
this is the key i call it the wedge if you can drive a wedge between your
you can drive a wedge between your increasing earnings over time and the
increasing earnings over time and the increasing costs of your lifestyle
increasing costs of your lifestyle and then save or invest the difference
and then save or invest the difference you can continue to improve your
you can continue to improve your lifestyle as you make more money but by
lifestyle as you make more money but by violating parkinson's law you'll
violating parkinson's law you'll eventually end up financially well off
eventually end up financially well off the eighth law of money is the law of
the eighth law of money is the law of three
three in reference to money this law says
in reference to money this law says there are three legs to the stool of
there are three legs to the stool of financial freedom they are savings
financial freedom they are savings insurance and investment
insurance and investment one of your jobs is to build a financial
one of your jobs is to build a financial fortress for yourself within which you
fortress for yourself within which you can be safe from the insecurities
can be safe from the insecurities experienced by most people in old age
experienced by most people in old age throughout your working lifetime you
throughout your working lifetime you need to maintain a certain amount in
need to maintain a certain amount in each of these three
each of these three savings insurance and investment
savings insurance and investment the first part of the law of three says
the first part of the law of three says that
that your savings should be liquid and be
your savings should be liquid and be sufficient for two to six months of
sufficient for two to six months of normal expenses
normal expenses your very first job financially is to
your very first job financially is to save enough money so that if you lost
save enough money so that if you lost your source of income for up to six
your source of income for up to six months you'd have enough put aside to
months you'd have enough put aside to carry you over
carry you over the very act of saving this amount of
the very act of saving this amount of money and putting it into a high
money and putting it into a high yielding savings account or a money
yielding savings account or a money market account will give you a
market account will give you a tremendous sense of confidence and inner
tremendous sense of confidence and inner peace
peace a young woman who attended one of my
a young woman who attended one of my seminars in which we discussed the
seminars in which we discussed the importance of saving your money wrote to
importance of saving your money wrote to me after a year and told me an
me after a year and told me an interesting story
interesting story she said that she had never considered
she said that she had never considered the fact that she was completely
the fact that she was completely responsible for her own financial
responsible for her own financial well-being
well-being from that moment forward however she
from that moment forward however she began saving some of her income every
began saving some of her income every paycheck rather than spending it all as
paycheck rather than spending it all as she earned it as she had done in the
she earned it as she had done in the past
past she became so good at saving that within
she became so good at saving that within a year she had almost two months of
a year she had almost two months of income put aside in the bank
income put aside in the bank now about that time she began to have
now about that time she began to have difficulties with her boss and she
difficulties with her boss and she eventually walked out of her job
eventually walked out of her job she said that having the money in the
she said that having the money in the bank made it possible for her to quit
bank made it possible for her to quit doing something she no longer enjoyed
doing something she no longer enjoyed and allowed her to take her time finding
and allowed her to take her time finding a better job at which she was paid
a better job at which she was paid substantially more
substantially more she wrote in her letter that if she
she wrote in her letter that if she hadn't started saving she would have
hadn't started saving she would have been trapped in her job
been trapped in her job she would have been unable to leave and
she would have been unable to leave and she would have lost both her
she would have lost both her self-respect and her self-esteem
self-respect and her self-esteem the second part of the law of three says
the second part of the law of three says that you should carry sufficient life
that you should carry sufficient life and health insurance to provide for
and health insurance to provide for yourself and others in any emergency
yourself and others in any emergency always take out insurance against an
always take out insurance against an emergency that you cannot write a check
emergency that you cannot write a check to cover
to cover insure your car for liability and
insure your car for liability and collision
collision ensure your help for unexpected setbacks
ensure your help for unexpected setbacks and ensure your life so that if
and ensure your life so that if something unfortunate happens to you the
something unfortunate happens to you the people who are counting on you will be
people who are counting on you will be provided for
provided for remember perhaps the deepest need or
remember perhaps the deepest need or craving of human nature is the desire
craving of human nature is the desire for security and without insurance your
for security and without insurance your life is simply a gamble which can cause
life is simply a gamble which can cause you stress and unhappiness
you stress and unhappiness the third part of the law of three says
the third part of the law of three says that you should invest 10 to 20 percent
that you should invest 10 to 20 percent of your income throughout your life
of your income throughout your life until your investments earn more than
until your investments earn more than you do
you do your life is divided into roughly three
your life is divided into roughly three parts although these three parts tend to
parts although these three parts tend to overlap
overlap first there are your learning years
first there are your learning years where you grow up and get your education
where you grow up and get your education then there are your earning years from
then there are your earning years from approximately 20 years of age to
approximately 20 years of age to approximately 65 years of age
approximately 65 years of age after that come your yearning years
after that come your yearning years where you can retire with the average
where you can retire with the average life expectancy today being 74.9 years
life expectancy today being 74.9 years and rising
and rising the simplest and most effective of all
the simplest and most effective of all financial strategies is for you to save
financial strategies is for you to save and invest your money continually until
and invest your money continually until your money is paying you more than you
your money is paying you more than you earn at your job
earn at your job at that point you can begin to phase out
at that point you can begin to phase out of your regular job and to phase in to
of your regular job and to phase in to managing your assets
managing your assets this seems like a very simple lifetime
this seems like a very simple lifetime planning strategy but it's remarkable
planning strategy but it's remarkable how few people follow it and how many
how few people follow it and how many people end up at the age of 65
people end up at the age of 65 with very little put aside
with very little put aside the average retired american today has a
the average retired american today has a total net worth of approximately thirty
total net worth of approximately thirty one thousand dollars plus their social
one thousand dollars plus their social security income
security income don't let this happen to you
don't let this happen to you the ninth law of money is the law of
the ninth law of money is the law of investing
investing this law states that you should
this law states that you should investigate before you invest
investigate before you invest it's one of the most important single
it's one of the most important single laws you'll ever learn
laws you'll ever learn you should spend at least as much time
you should spend at least as much time studying a particular investment as you
studying a particular investment as you do earning the money to put into that
do earning the money to put into that particular investment
particular investment never let yourself be rushed into
never let yourself be rushed into partying with money
partying with money that you worked so hard for and taken so
that you worked so hard for and taken so long to accumulate
long to accumulate investigate every single aspect of the
investigate every single aspect of the investment well before you make any
investment well before you make any commitment
commitment ask for full and complete disclosure for
ask for full and complete disclosure for honest and accurate and adequate
honest and accurate and adequate information
information and if you have any doubt or misgivings
and if you have any doubt or misgivings at all you'll probably be far better off
at all you'll probably be far better off keeping your money in a tax deferred
keeping your money in a tax deferred savings or money market investment
savings or money market investment account then you would be speculating or
account then you would be speculating or taking the risk of losing it
taking the risk of losing it the first part of the law investing is
the first part of the law investing is that the only thing easy about money
that the only thing easy about money is losing it
is losing it it's very hard to make money in a
it's very hard to make money in a competitive society but
competitive society but losing it is one of the easiest things
losing it is one of the easiest things you can ever do
you can ever do a japanese proverb says that
a japanese proverb says that making money is like digging with a nail
making money is like digging with a nail whereas losing money is like pouring
whereas losing money is like pouring water on the sand
water on the sand the second part of this law comes from
the second part of this law comes from the self-made billionaire marvin davis
the self-made billionaire marvin davis who was asked about his rules regarding
who was asked about his rules regarding money in an interview in forbes magazine
money in an interview in forbes magazine in 1989
in 1989 he said that he has one simple rule and
he said that he has one simple rule and it is don't lose money
it is don't lose money if there's a possibility that you'll
if there's a possibility that you'll lose your money he says don't part with
lose your money he says don't part with it in the first place
it in the first place this principle is so important that you
this principle is so important that you should write it down somewhere and
should write it down somewhere and repeat it over and over
repeat it over and over the third part of the law of investing
the third part of the law of investing says that
says that if you think you can afford to lose a
if you think you can afford to lose a little you're going to end up losing a
little you're going to end up losing a lot
lot there's something about the attitude of
there's something about the attitude of a person who feels that he has enough
a person who feels that he has enough money that he can afford to risk losing
money that he can afford to risk losing a little
a little you remember the old saying a fool in
you remember the old saying a fool in his money are soon parted
his money are soon parted well there's another saying
well there's another saying when a man with experience meets a man
when a man with experience meets a man with money the man with the money is
with money the man with the money is going to end up with some experience and
going to end up with some experience and the man with experience is going to end
the man with experience is going to end up with the money
up with the money the fourth part of the law of investing
the fourth part of the law of investing says that only invest with experts who
says that only invest with experts who have a proven track record of success in
have a proven track record of success in handling money
handling money i had dinner with a wealthy self-made
i had dinner with a wealthy self-made millionaire in portland oregon two years
millionaire in portland oregon two years ago
ago he had started with nothing he gradually
he had started with nothing he gradually worked his way up to being worth several
worked his way up to being worth several million dollars he had a simple
million dollars he had a simple philosophy
philosophy he would only invest with people who had
he would only invest with people who had been successful at making money in the
been successful at making money in the past when he achieved his level of
past when he achieved his level of financial success
financial success he would then only invest with people
he would then only invest with people who were doing better than he was with
who were doing better than he was with their own money
their own money because he was a successful investor he
because he was a successful investor he was often approached by people selling
was often approached by people selling investments of various kinds
investments of various kinds he would always tell the seller that he
he would always tell the seller that he was willing to trade personal financial
was willing to trade personal financial statements with him
statements with him if the seller would show him his
if the seller would show him his personal financial statement he would
personal financial statement he would show the seller his
show the seller his if the seller was doing better than he
if the seller was doing better than he was he would accept the seller's advice
was he would accept the seller's advice and buy the investment
and buy the investment however if he was doing better than the
however if he was doing better than the seller was he would decline
seller was he would decline many of the people who initially
many of the people who initially approached him for investment funds in
approached him for investment funds in fact most of them were not doing
fact most of them were not doing particularly well at all
particularly well at all they would leave quietly and never come
they would leave quietly and never come back
back your job is to invest only with people
your job is to invest only with people who have such a successful track record
who have such a successful track record that your risk is dramatically
that your risk is dramatically diminished
diminished don't lose money
don't lose money if ever you feel tempted refer back to
if ever you feel tempted refer back to this rule and hold on to what you have
this rule and hold on to what you have the tenth law of money is the law of
the tenth law of money is the law of compound interest
compound interest it states that investing your money
it states that investing your money carefully and allowing it to grow at
carefully and allowing it to grow at compound interest will eventually make
compound interest will eventually make you rich
you rich compound interest is considered one of
compound interest is considered one of the great miracles of all human history
the great miracles of all human history and economics
and economics when you let money accumulate at
when you let money accumulate at compound interest tax-free it can grow
compound interest tax-free it can grow more rapidly than you can imagine
more rapidly than you can imagine you can use the rule of 72 to determine
you can use the rule of 72 to determine how long it would take for your money to
how long it would take for your money to double
double by dividing the interest rate into the
by dividing the interest rate into the number seventy two
number seventy two for example if you were receiving eight
for example if you were receiving eight percent interest on your investment or
percent interest on your investment or your savings
your savings and you divided the number seventy two
and you divided the number seventy two by eight
by eight you'd come out with a number nine
you'd come out with a number nine this means it would take you nine years
this means it would take you nine years to double your money at eight percent
to double your money at eight percent interest of course the more money you
interest of course the more money you add to the account the faster it would
add to the account the faster it would grow but the rule of 72 applies to any
grow but the rule of 72 applies to any interest rate
interest rate the first part of the law of compound
the first part of the law of compound interest simply says
interest simply says one dollar invested at three percent
one dollar invested at three percent interest at the time of christ
interest at the time of christ would be worth half the money in the
would be worth half the money in the world today
world today if the money had been allowed to grow
if the money had been allowed to grow and double and then double again and
and double and then double again and then again and again and again
then again and again and again it would be worth many billions or
it would be worth many billions or trillions of dollars today
trillions of dollars today this brings us to the second part of
this brings us to the second part of this law which says that the key to
this law which says that the key to compound interest is to put it away and
compound interest is to put it away and never touch it
never touch it the eleventh law of money is the law of
the eleventh law of money is the law of accumulation which says that every great
accumulation which says that every great financial achievement is an accumulation
financial achievement is an accumulation of hundreds and thousands of small
of hundreds and thousands of small efforts and sacrifices that no one ever
efforts and sacrifices that no one ever sees or appreciates
sees or appreciates when you begin moving toward financial
when you begin moving toward financial independence and financial security
independence and financial security it'll require a tremendous number of
it'll require a tremendous number of small efforts on your part to begin the
small efforts on your part to begin the process of accumulation
process of accumulation you must be disciplined and persistent
you must be disciplined and persistent you must keep at it for a long long time
you must keep at it for a long long time eventually your efforts will begin to
eventually your efforts will begin to bear fruit
bear fruit in just a little while you'll begin to
in just a little while you'll begin to pull ahead of your peers
pull ahead of your peers and by developing a long time
and by developing a long time perspective you can virtually assure
perspective you can virtually assure that you'll end up rich
that you'll end up rich the first part of the law of
the first part of the law of accumulation says that as you accumulate
accumulation says that as you accumulate savings you develop a momentum that
savings you develop a momentum that moves you more rapidly towards your goal
moves you more rapidly towards your goal once you begin saving you begin to
once you begin saving you begin to develop a rate of momentum that's very
develop a rate of momentum that's very important for you to maintain
important for you to maintain it's hard to get started on a program of
it's hard to get started on a program of financial accumulation but once you do
financial accumulation but once you do get started you need to keep at it
get started you need to keep at it continually
continually if ever you allow yourself to lose the
if ever you allow yourself to lose the momentum and slow to a halt it becomes
momentum and slow to a halt it becomes extremely difficult for you to start up
extremely difficult for you to start up again
again momentum is one of the secrets of
momentum is one of the secrets of success that you need to develop and
success that you need to develop and maintain in everything you decide to do
maintain in everything you decide to do the second part of this law comes from
the second part of this law comes from reverend robert schuler who says that by
reverend robert schuler who says that by the yard it's hard but inch by inch
the yard it's hard but inch by inch anything's a cinch
anything's a cinch when we talk about saving 10 or 20
when we talk about saving 10 or 20 percent of your income
percent of your income most people are initially overwhelmed
most people are initially overwhelmed and disappointed
and disappointed they're already up to their necks in
they're already up to their necks in debt and bills and they're spending
debt and bills and they're spending every single penny that they earned just
every single penny that they earned just to keep afloat
to keep afloat however if you find yourself in this
however if you find yourself in this situation you can begin saving just one
situation you can begin saving just one percent of your income in a special
percent of your income in a special account
account which you refuse to touch
which you refuse to touch begin putting your change into a large
begin putting your change into a large jar every evening when you come home and
jar every evening when you come home and when the jar is full take it to the bank
when the jar is full take it to the bank and add it to your savings account
and add it to your savings account whenever you get an extra sum of money
whenever you get an extra sum of money from selling something or an old debt is
from selling something or an old debt is repaid or you receive an unexpected
repaid or you receive an unexpected bonus instead of spending it put it into
bonus instead of spending it put it into a savings account
a savings account it'll start to add up at a rate that
it'll start to add up at a rate that might surprise you and as you become
might surprise you and as you become comfortable with saving one percent move
comfortable with saving one percent move it up to two percent then
it up to two percent then three percent then four percent and five
three percent then four percent and five percent and so on within a year you'll
percent and so on within a year you'll find yourself getting out of debt and
find yourself getting out of debt and saving ten and fifteen and even twenty
saving ten and fifteen and even twenty percent of your income without it really
percent of your income without it really affecting your lifestyle
affecting your lifestyle the twelfth law of money is the law of
the twelfth law of money is the law of attraction which we've mentioned before
attraction which we've mentioned before in a different context it also applies
in a different context it also applies to money and it says that as you begin
to money and it says that as you begin accumulating money
accumulating money you magnetize this money with the
you magnetize this money with the emotion of desire and you begin
emotion of desire and you begin attracting even more money to yourself
attracting even more money to yourself the first part of this law of attraction
the first part of this law of attraction applied to money is that a prosperity
applied to money is that a prosperity consciousness one that works and
consciousness one that works and prepares for and expects prosperity
prepares for and expects prosperity attracts money like iron filings to a
attracts money like iron filings to a magnet
magnet when i first read about the importance
when i first read about the importance of developing a prosperity consciousness
of developing a prosperity consciousness i was broke and in my early twenties
i was broke and in my early twenties i didn't fully understand what it meant
i didn't fully understand what it meant it sounded good but i didn't know how to
it sounded good but i didn't know how to do it
do it over the years however i found that as
over the years however i found that as you develop a positive and expectant
you develop a positive and expectant attitude toward money and you begin
attitude toward money and you begin believing in the law of abundance
believing in the law of abundance your emotions somehow magnetize the
your emotions somehow magnetize the money that you saved and you begin to
money that you saved and you begin to attract more of it into your life
attract more of it into your life the second part of this law is something
the second part of this law is something that you've heard before and which says
that you've heard before and which says simply
simply it takes money to make money as you
it takes money to make money as you begin accumulating money you begin to
begin accumulating money you begin to attract more money and more
attract more money and more opportunities to earn even more money
opportunities to earn even more money into your life
into your life this is why it's so important that you
this is why it's so important that you start even with a small amount you'll be
start even with a small amount you'll be amazed at what starts to happen
amazed at what starts to happen the 13th law of money is the law of
the 13th law of money is the law of accelerating acceleration which says
accelerating acceleration which says that
that as you begin moving toward your goal of
as you begin moving toward your goal of financial freedom
financial freedom it begins moving toward you
it begins moving toward you at an accelerating speed
at an accelerating speed the first part of this law is that
the first part of this law is that nothing succeeds like success
nothing succeeds like success the more money and success you obtain
the more money and success you obtain and achieve the more money and success
and achieve the more money and success seems to move towards you from a variety
seems to move towards you from a variety of different directions
of different directions everyone who's financially successful
everyone who's financially successful today has had the experience of working
today has had the experience of working extremely hard before they got their
extremely hard before they got their first real opportunity
first real opportunity however
however after that
after that more and more opportunities began to
more and more opportunities began to flow to them like a river and their
flow to them like a river and their major problem today is sorting out the
major problem today is sorting out the various opportunities that they have to
various opportunities that they have to increase their money and improve their
increase their money and improve their well-being
well-being it'll be the same for you
it'll be the same for you the second part of the law of
the second part of the law of accelerating acceleration says that
accelerating acceleration says that fully eighty percent of your success
fully eighty percent of your success will come in the last twenty percent of
will come in the last twenty percent of the time you put in
the time you put in now this is a remarkable discovery it
now this is a remarkable discovery it simply says that you'll achieve only
simply says that you'll achieve only about twenty percent of the total
about twenty percent of the total success possible for you in the first
success possible for you in the first eighty percent of the time and money
eighty percent of the time and money that you invest
that you invest and that you will achieve the other
and that you will achieve the other eighty percent in the last twenty
eighty percent in the last twenty percent of the time and money that you
percent of the time and money that you invest
invest for example peter lynch the recently
for example peter lynch the recently retired manager of the magellan mutual
retired manager of the magellan mutual fund one of the most successful mutual
fund one of the most successful mutual funds in history said that the best
funds in history said that the best investments he ever made were those that
investments he ever made were those that took the longest time to come to
took the longest time to come to fruition
fruition he would often buy the stock of a
he would often buy the stock of a company that didn't increase in value
company that didn't increase in value for several years and then went up 10 or
for several years and then went up 10 or 20 times in price
20 times in price this strategy of picking stocks for the
this strategy of picking stocks for the long term eventually made him one of the
long term eventually made him one of the highest paid money managers in america
highest paid money managers in america a simple way to prove this to yourself
a simple way to prove this to yourself is to take a penny and double it every
is to take a penny and double it every day for 30 days
day for 30 days on the first day you'll have one cent on
on the first day you'll have one cent on the second day you'll have two cents on
the second day you'll have two cents on the third day you'll have four cents
the third day you'll have four cents then eight cents then 16 cents then 32
then eight cents then 16 cents then 32 cents and so on
cents and so on by the 30th day you'll have several
by the 30th day you'll have several million dollars however
million dollars however on the 29th day you'll have only half of
on the 29th day you'll have only half of the amount that you'll have on the 30th
the amount that you'll have on the 30th day and on the 28th day you'll have only
day and on the 28th day you'll have only one quarter of what you'll have on the
one quarter of what you'll have on the 30th day
30th day so don't make the mistake of pulling out
so don't make the mistake of pulling out too soon and giving up all of the great
too soon and giving up all of the great increase that's possible for you
increase that's possible for you by waiting
by waiting the laws of money say that you starting
the laws of money say that you starting wherever you are even deeply in debt or
wherever you are even deeply in debt or working for someone else even if you
working for someone else even if you haven't been serious about money in the
haven't been serious about money in the past can save your money invest it
past can save your money invest it carefully get out of debt and achieve
carefully get out of debt and achieve your financial goals in life the only
your financial goals in life the only real question you have to ask with
real question you have to ask with regard to money is how badly do you want
regard to money is how badly do you want it
it remember you're always free to choose
remember you're always free to choose you are responsible no one is ever going
you are responsible no one is ever going to do it for you it's always up to you
to do it for you it's always up to you but if you decide to follow these laws
but if you decide to follow these laws and principles and if you persist long
and principles and if you persist long enough and hard enough there is
enough and hard enough there is virtually nothing that can stop you from
virtually nothing that can stop you from achieving the financial success that you
achieving the financial success that you desire
desire [Music]
there are more wealthy men and women in america than in any other country and
america than in any other country and the number is growing at a steady pace
the number is growing at a steady pace according to the irs there are more than
according to the irs there are more than 1.4 million millionaires in the u.s more
1.4 million millionaires in the u.s more than 80 percent of whom have made their
than 80 percent of whom have made their money starting with nothing
money starting with nothing by sometime in the 1990s one out of
by sometime in the 1990s one out of every 100 families will have a net worth
every 100 families will have a net worth in excess of one million dollars
in excess of one million dollars of the 205 billionaires in the world
of the 205 billionaires in the world identified by fortune magazine 60 of
identified by fortune magazine 60 of these billionaires are americans and
these billionaires are americans and many of them are first-generation
many of them are first-generation self-made billionaires
self-made billionaires according to the research done by dr
according to the research done by dr thomas stanley at the university of
thomas stanley at the university of georgia covering a period of more than
georgia covering a period of more than fifteen years between fifty thousand and
fifteen years between fifty thousand and one hundred thousand men and women
one hundred thousand men and women become millionaires every year and most
become millionaires every year and most wealthy people are getting wealthier as
wealthy people are getting wealthier as the years pass
the years pass now here are a couple of questions for
now here are a couple of questions for you
you first
first do you sincerely want to be rich
do you sincerely want to be rich because if you do it also means that you
because if you do it also means that you must be willing to pay the price in
must be willing to pay the price in terms of effort and sacrifice for a long
terms of effort and sacrifice for a long time probably more than 20 years in
time probably more than 20 years in order to achieve it
order to achieve it if you're not willing to pay this kind
if you're not willing to pay this kind of a price then you don't really want to
of a price then you don't really want to be rich you're merely entertaining
be rich you're merely entertaining yourself with a fantasy that's common to
yourself with a fantasy that's common to the great majority of men and women
the great majority of men and women the second question is this
the second question is this why aren't you rich already
why aren't you rich already if you sincerely want to be rich why
if you sincerely want to be rich why aren't you
aren't you what is stopping you
what is stopping you is it the height of your income or is it
is it the height of your income or is it the rate of your spending
the rate of your spending when i talked about the laws of money i
when i talked about the laws of money i covered many of the key ideas and
covered many of the key ideas and principles that you must apply if you
principles that you must apply if you want to achieve financial independence
want to achieve financial independence but if you want to be rich you have to
but if you want to be rich you have to go
go much further
much further theoretically it's possible for you or
theoretically it's possible for you or anyone else to become rich to achieve a
anyone else to become rich to achieve a net worth in excess of one million
net worth in excess of one million dollars during the course of your
dollars during the course of your working lifetime
working lifetime all you have to do is to begin saving
all you have to do is to begin saving early enough and continue it long enough
early enough and continue it long enough and shelter your savings from taxes as
and shelter your savings from taxes as much as possible and let it build up
much as possible and let it build up until it passes the magic million dollar
until it passes the magic million dollar mark
mark virtually anyone can do it and many tens
virtually anyone can do it and many tens of thousands if not hundreds of
of thousands if not hundreds of thousands of people are doing it right
thousands of people are doing it right now
now as a professional speaker and trainer
as a professional speaker and trainer and management consultant and having
and management consultant and having worked with hundreds of corporations and
worked with hundreds of corporations and many tens of thousands of individuals
many tens of thousands of individuals i've met hundreds of millionaires and
i've met hundreds of millionaires and several billionaires
several billionaires what i found out is that they're not
what i found out is that they're not very different from you and me aside
very different from you and me aside from the fact that they have more money
from the fact that they have more money and as they say a better class of
and as they say a better class of problems
problems they're not any more intelligent nor are
they're not any more intelligent nor are they especially gifted they are mostly
they especially gifted they are mostly ordinary men and women who have used
ordinary men and women who have used their god-given abilities to an
their god-given abilities to an extraordinary degree in their chosen
extraordinary degree in their chosen fields
fields they've developed themselves and their
they've developed themselves and their opportunities to a very high point and
opportunities to a very high point and have done wonderful things with their
have done wonderful things with their financial lives
financial lives and there's nothing in this world that
and there's nothing in this world that can stop you from joining them if you
can stop you from joining them if you really want to
really want to in an earlier session i talked about the
in an earlier session i talked about the law of belief
law of belief this law simply says that your beliefs
this law simply says that your beliefs become your realities
become your realities thoughts objectify themselves
thoughts objectify themselves your thoughts held in your mind produce
your thoughts held in your mind produce after their kind
after their kind what you really deeply and intensely
what you really deeply and intensely believe tends to materialize in your
believe tends to materialize in your experience
experience your beliefs cause you to think and see
your beliefs cause you to think and see and feel and behave in ways that tend to
and feel and behave in ways that tend to make your beliefs come true for you
make your beliefs come true for you like most people when i was in my teens
like most people when i was in my teens even though i came from a poor
even though i came from a poor background i had a dream of being a
background i had a dream of being a millionaire by the time i was 30.
millionaire by the time i was 30. i've since learned that this is the
i've since learned that this is the american dream
american dream like most people i traveled and worked
like most people i traveled and worked and tried many things during the decade
and tried many things during the decade of my twenties i switched back and forth
of my twenties i switched back and forth searching for that elusive will of the
searching for that elusive will of the wisp of financial riches i eagerly
wisp of financial riches i eagerly looked for lucky breaks and i tried
looked for lucky breaks and i tried various get rich quick schemes
various get rich quick schemes i threw my heart and energy into a
i threw my heart and energy into a variety of enterprises looking for a
variety of enterprises looking for a fast way to reach that million dollar
fast way to reach that million dollar mark
mark of course like most people which is more
of course like most people which is more than 99 of the population i didn't make
than 99 of the population i didn't make it when i was 30 i was deeply in debt
it when i was 30 i was deeply in debt between jobs once more and i didn't even
between jobs once more and i didn't even have a high school diploma
have a high school diploma as my 30s began i set my goal to be a
as my 30s began i set my goal to be a millionaire by the time i was 40. i then
millionaire by the time i was 40. i then began to draw on my experience and to do
began to draw on my experience and to do a few things right but the idea of
a few things right but the idea of achieving wealth was still just a dream
achieving wealth was still just a dream then there came a turning point in my
then there came a turning point in my life i'd been working very hard in
life i'd been working very hard in business still with a dream of someday
business still with a dream of someday becoming wealthy when someone asked me
becoming wealthy when someone asked me to explain to them the qualities of
to explain to them the qualities of self-made millionaires
self-made millionaires i found that as i considered the
i found that as i considered the question
question all i could come up with were some
all i could come up with were some platitudes about setting goals and
platitudes about setting goals and working hard
working hard this awareness of my own ignorance on
this awareness of my own ignorance on the subject of wealth led me to begin
the subject of wealth led me to begin studying men and women who had started
studying men and women who had started from nothing and who had achieved
from nothing and who had achieved financial independence
financial independence and here is where the law of belief came
and here is where the law of belief came to work for me
to work for me it can do the same for you
it can do the same for you i found that there was an enormous
i found that there was an enormous amount of documentation and information
amount of documentation and information available on the rich
available on the rich apparently the subject had fascinated
apparently the subject had fascinated many people before me
many people before me this is when my beliefs began to grow
this is when my beliefs began to grow think about it if you read one book
think about it if you read one book about one person who had started from
about one person who had started from pretty much the same place you did and
pretty much the same place you did and had become wealthy because of doing
had become wealthy because of doing certain things in a certain way
certain things in a certain way you would develop a very small belief
you would develop a very small belief that it might be possible for you
that it might be possible for you if you then went on to read about 10
if you then went on to read about 10 hundred or one thousand or tens of
hundred or one thousand or tens of thousands of men and women who had
thousands of men and women who had started with very little and had worked
started with very little and had worked their way up to positions of wealth and
their way up to positions of wealth and prestige
prestige your belief just like mine did would
your belief just like mine did would begin to grow and deepen and intensify
begin to grow and deepen and intensify to the point where you could become
to the point where you could become absolutely convinced that you too had
absolutely convinced that you too had the capacity to achieve whatever
the capacity to achieve whatever financial goals you set for yourself
financial goals you set for yourself as i began studying wealthy americans
as i began studying wealthy americans and especially self-made millionaires
and especially self-made millionaires not only did i learn the cause and
not only did i learn the cause and effect relationships the things that
effect relationships the things that they done to get where they were
they done to get where they were but i also began to develop the belief
but i also began to develop the belief that it was possible for me as well
that it was possible for me as well my intensity of belief activated the law
my intensity of belief activated the law of attraction within me and began
of attraction within me and began drawing into my life people and
drawing into my life people and circumstances and ideas and resources
circumstances and ideas and resources that began to move me toward my
that began to move me toward my financial goals
financial goals and to move them toward me
and to move them toward me all of the other laws of success and
all of the other laws of success and achievement that i've talked about began
achievement that i've talked about began to work on my behalf
to work on my behalf in just a few years i was able to go
in just a few years i was able to go from being broke to being financially
from being broke to being financially independent
independent as i began sharing these ideas with
as i began sharing these ideas with others they began to go from rags to
others they began to go from rags to riches as well
riches as well on a television show recently several
on a television show recently several audience participants stood up and told
audience participants stood up and told their stories about what they'd
their stories about what they'd accomplished after listening to my tapes
accomplished after listening to my tapes one woman who was having serious
one woman who was having serious problems in her life quit drinking
problems in her life quit drinking joined alcoholics anonymous left a bad
joined alcoholics anonymous left a bad relationship
relationship lost 40 pounds and tripled her annual
lost 40 pounds and tripled her annual income to more than 100 thousand dollars
income to more than 100 thousand dollars all in the space of less than one year
all in the space of less than one year another woman and her husband increased
another woman and her husband increased their net worth 30 times in two years
their net worth 30 times in two years a third gentleman from pakistan
a third gentleman from pakistan was broken sleeping on the ground when
was broken sleeping on the ground when someone let him listen to some of my
someone let him listen to some of my audio cassettes
audio cassettes within four years he was a millionaire
within four years he was a millionaire and the owner of two companies
and the owner of two companies all over the country men and women by
all over the country men and women by the hundreds and thousands have found
the hundreds and thousands have found that by applying some of these
that by applying some of these principles they can make more progress
principles they can make more progress in a couple of years than they might
in a couple of years than they might have made an entire lifetime of hard
have made an entire lifetime of hard work
work there are a series of laws that apply to
there are a series of laws that apply to wealth creation which you can use to
wealth creation which you can use to achieve your financial goals
achieve your financial goals every wealthy person lives his life in
every wealthy person lives his life in harmony with these laws and every person
harmony with these laws and every person suffering financial problems is breaking
suffering financial problems is breaking one or more of these laws
one or more of these laws and trying to get away with it
and trying to get away with it unfortunately it just doesn't work that
unfortunately it just doesn't work that way
way the first law of wealth creation is the
the first law of wealth creation is the law of creative emulation
law of creative emulation it says the key to achieving wealth is
it says the key to achieving wealth is to study and emulate those who have
to study and emulate those who have already acquired it before you
already acquired it before you don't try to reinvent the wheel use
don't try to reinvent the wheel use proven success methods the first part of
proven success methods the first part of this law says that what one person has
this law says that what one person has done others can do as well
done others can do as well abraham lincoln once said that
abraham lincoln once said that some become wealthy is assigned to
some become wealthy is assigned to others that they may also become wealthy
others that they may also become wealthy for every activity in life it's commonly
for every activity in life it's commonly understood that you copy the people who
understood that you copy the people who have already mastered the subject before
have already mastered the subject before you attempt to add your own variations
you attempt to add your own variations or wrinkles to it
or wrinkles to it the second part of the law of creative
the second part of the law of creative emulation says that if you ask the
emulation says that if you ask the experts for advice
experts for advice they'll give it to you
they'll give it to you business philosopher jim rohn says poor
business philosopher jim rohn says poor people should take rich people out to
people should take rich people out to lunch
lunch and pay the bill
and pay the bill taking a wealthy successful person out
taking a wealthy successful person out to lunch and asking him or her for
to lunch and asking him or her for advice or guidance on what you can do
advice or guidance on what you can do and how you can do it is the cheapest
and how you can do it is the cheapest investment you can ever make
investment you can ever make and what i found is that winners will
and what i found is that winners will always help others to win
always help others to win successful people will always take time
successful people will always take time out of their busy schedules to help
out of their busy schedules to help other people to be successful
other people to be successful the third part of the law of creative
the third part of the law of creative emulation says that you become what you
emulation says that you become what you most admire
most admire one of the things that we know about
one of the things that we know about wealthy men and women is that they place
wealthy men and women is that they place an extremely high value on the
an extremely high value on the acquisition of material goods and they
acquisition of material goods and they very much admire and look up to other
very much admire and look up to other men and women who've acquired them as
men and women who've acquired them as well
well sometimes people delude themselves by
sometimes people delude themselves by saying silly things like well i'd rather
saying silly things like well i'd rather be happy than rich they seem to think
be happy than rich they seem to think that people who make a lot of money are
that people who make a lot of money are not particularly virtuous or happy well
not particularly virtuous or happy well i have news for you the research has
i have news for you the research has been done and the results are in
been done and the results are in the fact is that the wealthy are very
the fact is that the wealthy are very very happy
very happy they may have problems and difficulties
they may have problems and difficulties in their lives but they are happier and
in their lives but they are happier and healthier more of the time than people
healthier more of the time than people are who worry about money every single
are who worry about money every single day
day many people have been misled into
many people have been misled into believing that people only achieve
believing that people only achieve financial success by engaging in
financial success by engaging in activities that are somehow illicit and
activities that are somehow illicit and unacceptable
unacceptable this is disproven by the facts
this is disproven by the facts more than 99 of all the men and women
more than 99 of all the men and women who've achieved wealth have done it by
who've achieved wealth have done it by utilizing their talents and abilities to
utilizing their talents and abilities to the maximum in the service of other
the maximum in the service of other people
people the biggest fortunes in america have
the biggest fortunes in america have been built in fields like retail sales
been built in fields like retail sales and food production and distribution
and food production and distribution gasoline and oil distribution real
gasoline and oil distribution real estate development and transportation of
estate development and transportation of people and goods and services
people and goods and services many huge fortunes come from the
many huge fortunes come from the development of media outlets like
development of media outlets like newspapers and television and radio
newspapers and television and radio stations
stations one of the best ways to become wealthy
one of the best ways to become wealthy is summarized in the old saying
is summarized in the old saying if you want to dine with the classes you
if you want to dine with the classes you have to sell to the masses
have to sell to the masses the second law of wealth creation is the
the second law of wealth creation is the law of desire which states that the
law of desire which states that the motivation to acquire riches is an
motivation to acquire riches is an intense burning desire for financial
intense burning desire for financial success
success in order to achieve anything you must be
in order to achieve anything you must be highly motivated and all motivation
highly motivated and all motivation requires a motive
requires a motive the more powerful your motivation the
the more powerful your motivation the more likely it is that you will persist
more likely it is that you will persist in the face of all obstacles and
in the face of all obstacles and disappointments toward attaining your
disappointments toward attaining your objective
objective the first part of the law of desire says
the first part of the law of desire says that if you want it badly enough no one
that if you want it badly enough no one will be able to convince you that it's
will be able to convince you that it's not possible
not possible perhaps the greatest negative influence
perhaps the greatest negative influence in your life will be the people around
in your life will be the people around you many of them very well meaning but
you many of them very well meaning but who will criticize and ridicule you for
who will criticize and ridicule you for wanting to achieve so much above the
wanting to achieve so much above the ordinary
ordinary they'll point out every weakness and
they'll point out every weakness and shortcoming in your plans and dreams but
shortcoming in your plans and dreams but if your desire is intense enough you'll
if your desire is intense enough you'll be able to rise above them and carry on
be able to rise above them and carry on regardless the second part of the law of
regardless the second part of the law of desire says that desire is only
desire says that desire is only expressed in your actions
expressed in your actions it's not what you say but what you do
it's not what you say but what you do that counts
that counts as i said before everybody has the same
as i said before everybody has the same dreams and desires but very few people
dreams and desires but very few people are taking actions consistent with them
are taking actions consistent with them you can tell if you really believe in
you can tell if you really believe in your ability to become wealthy by the
your ability to become wealthy by the things that you do every single day
things that you do every single day the wonderful thing is that when you
the wonderful thing is that when you take actions consistent with your
take actions consistent with your desires the actions themselves reinforce
desires the actions themselves reinforce your belief that your desires are
your belief that your desires are achievable
achievable you can actually build yourself into an
you can actually build yourself into an unstoppable wealth creating human
unstoppable wealth creating human machine by acting as if you already were
machine by acting as if you already were one
one the third part of the law of desire says
the third part of the law of desire says that the more often you affirm your goal
that the more often you affirm your goal and visualize it as a reality the more
and visualize it as a reality the more intense your desire will be
intense your desire will be the third law of wealth creation is the
the third law of wealth creation is the law of purpose
law of purpose to quote napoleon hill it says that
to quote napoleon hill it says that definiteness of purpose is the starting
definiteness of purpose is the starting point of all riches
point of all riches definiteness of purpose means
definiteness of purpose means establishing a clear well-defined goal
establishing a clear well-defined goal of financial achievement for yourself
of financial achievement for yourself supported by a plan and backed by action
supported by a plan and backed by action setting your goal of wealth creation as
setting your goal of wealth creation as your major definite purpose in life is
your major definite purpose in life is essential to your turning it into a
essential to your turning it into a reality
reality the first part of the law of purpose
the first part of the law of purpose says that a person with a clear purpose
says that a person with a clear purpose will make progress
will make progress on the roughest road
on the roughest road if you know exactly where you're going
if you know exactly where you're going you'll find a way to get there
you'll find a way to get there it doesn't matter how difficult the way
it doesn't matter how difficult the way or how many obstacles you face as long
or how many obstacles you face as long as your goal is clear you'll find a way
as your goal is clear you'll find a way under over or around anything that
under over or around anything that blocks your path
blocks your path now here's an exercise that will start
now here's an exercise that will start you on your way
you on your way take a pad of paper and write down some
take a pad of paper and write down some clear financial goals for yourself
clear financial goals for yourself and then make a plan that extends out
and then make a plan that extends out over the next three to five years
over the next three to five years draw up a list of everything you can
draw up a list of everything you can think of that you can do to begin your
think of that you can do to begin your forward movement
forward movement organize the list in terms of priorities
organize the list in terms of priorities and begin to work on the most important
and begin to work on the most important thing that appears to you
thing that appears to you decide how much you want to earn each
decide how much you want to earn each year how much you plan to save and
year how much you plan to save and invest of what you earn and how much you
invest of what you earn and how much you want to be worth when you retire
want to be worth when you retire and how much of an annual return you
and how much of an annual return you want to earn on your accumulated savings
want to earn on your accumulated savings the more definite you are the more
the more definite you are the more likely it is that these numbers will
likely it is that these numbers will become your reality
become your reality the second part of the law of purpose
the second part of the law of purpose says that the primary reasons why people
says that the primary reasons why people don't become rich are first it never
don't become rich are first it never occurs to them and second they never
occurs to them and second they never decide to
decide to the primary reason that people don't
the primary reason that people don't become rich as i discussed in my audio
become rich as i discussed in my audio program getting rich in america is that
program getting rich in america is that it never occurs to them they never even
it never occurs to them they never even think about it
think about it so be careful with whom you associate on
so be careful with whom you associate on a regular basis you will inevitably
a regular basis you will inevitably adopt the mannerisms values attitudes
adopt the mannerisms values attitudes and behaviors of the people with whom
and behaviors of the people with whom you spend the most time
you spend the most time even if it does occur to you that it
even if it does occur to you that it would be nice to be wealthy the second
would be nice to be wealthy the second major obstacle to financial success in
major obstacle to financial success in america is that most people never make a
america is that most people never make a decision to accomplish it they wish and
decision to accomplish it they wish and hope and pray and buy lottery tickets
hope and pray and buy lottery tickets but they never make a total 100 percent
but they never make a total 100 percent commitment to paying the price of
commitment to paying the price of success in advance so they can enjoy it
success in advance so they can enjoy it in the future
in the future there are some beautiful words
there are some beautiful words attributed to the german philosopher
attributed to the german philosopher wolfgang fongota but which were written
wolfgang fongota but which were written by the production manager in the
by the production manager in the introduction to his stage play faust
introduction to his stage play faust they go like this
they go like this are you in earnest
are you in earnest seek this very minute whatever you can
seek this very minute whatever you can do or dream you can begin it
do or dream you can begin it boldness has genius power and magic in
boldness has genius power and magic in it
it just begin and the mind grows heated
just begin and the mind grows heated continue
continue and the task will be completed
and the task will be completed the fourth law of wealth creation is the
the fourth law of wealth creation is the law of enrichment which says that all
law of enrichment which says that all lasting wealth comes from enriching
lasting wealth comes from enriching others in some way from adding value and
others in some way from adding value and retaining part of it
retaining part of it this law says that anyone who enriches
this law says that anyone who enriches others
others must themselves be enriched
must themselves be enriched when you realize that the world is full
when you realize that the world is full of men and women driven by expediency to
of men and women driven by expediency to get the very most for the very least of
get the very most for the very least of the security comfort leisure love
the security comfort leisure love respect and fulfillment that they want
respect and fulfillment that they want you realize that there are unlimited
you realize that there are unlimited opportunities for you to enrich the
opportunities for you to enrich the lives of others in some way
lives of others in some way all you have to do is find your own
all you have to do is find your own particular way and then manage your
particular way and then manage your affairs so that you keep a small part of
affairs so that you keep a small part of the value that you've added to the life
the value that you've added to the life and work of other people
and work of other people the law of enrichment goes on to say
the law of enrichment goes on to say that your current income is a measure of
that your current income is a measure of how much you are currently enriching the
how much you are currently enriching the lives of others
lives of others you're paid not what you want but only
you're paid not what you want but only what you deserve
what you deserve you're earning today exactly what you're
you're earning today exactly what you're worth not a penny more not a penny less
worth not a penny more not a penny less what you're being paid at this moment
what you're being paid at this moment represents exactly how much value your
represents exactly how much value your efforts represent in the lives of the
efforts represent in the lives of the people who use what you produce
people who use what you produce and you can only increase the amount
and you can only increase the amount that you're getting by increasing the
that you're getting by increasing the amount that you're giving
amount that you're giving the fifth law of wealth creation is the
the fifth law of wealth creation is the law of entrepreneurship which says that
law of entrepreneurship which says that more people become wealthy by starting
more people become wealthy by starting and building their own successful
and building their own successful businesses than by all other ways
businesses than by all other ways combined
combined fully 74 percent of self-made
fully 74 percent of self-made millionaires in the united states
millionaires in the united states achieved their wealth by starting a
achieved their wealth by starting a business enterprise of some kind and
business enterprise of some kind and building it up usually very slowly so
building it up usually very slowly so that it not only yielded them a good
that it not only yielded them a good living but generated enough excess
living but generated enough excess revenue to eventually make them wealthy
revenue to eventually make them wealthy the first part of the law of
the first part of the law of entrepreneurship simply says
entrepreneurship simply says find a need and fill it
find a need and fill it this has been the essence of all large
this has been the essence of all large and small business success look around
and small business success look around you
you find a need that people have and find a
find a need that people have and find a way to fill it in a cost-effective
way to fill it in a cost-effective manner
manner the second part of the law of
the second part of the law of entrepreneurship says that wherever
entrepreneurship says that wherever there are needs unmet or problems
there are needs unmet or problems unsolved there are opportunities to
unsolved there are opportunities to create wealth
create wealth the third part of the law of
the third part of the law of entrepreneurship says that most fortunes
entrepreneurship says that most fortunes come from selling established products
come from selling established products or services in established markets to
or services in established markets to established customers and doing it just
established customers and doing it just a little bit better
a little bit better all a product or service has to be is
all a product or service has to be is ten percent newer or better to build a
ten percent newer or better to build a business and to start a fortune
business and to start a fortune the converse of this principle of
the converse of this principle of entrepreneurship is that it's very risky
entrepreneurship is that it's very risky to start off with a new unproven or
to start off with a new unproven or untried product or service
untried product or service for example the industry that's produced
for example the industry that's produced more self-made millionaires than any
more self-made millionaires than any other single industry is the dry
other single industry is the dry cleaning business
cleaning business this is because dry cleaning is an
this is because dry cleaning is an established service need that's used
established service need that's used regularly it's fairly profitable and
regularly it's fairly profitable and it's required by almost everyone
it's required by almost everyone it isn't that it's not possible to make
it isn't that it's not possible to make money with a brand new product or
money with a brand new product or service but it's a little bit like
service but it's a little bit like hoping for a miracle
hoping for a miracle miracles do happen but you can't depend
miracles do happen but you can't depend upon them
upon them more people lose their shirts and their
more people lose their shirts and their hopes by trying to sell something brand
hopes by trying to sell something brand new in a brand new market than by any
new in a brand new market than by any other way
other way the sixth law of wealth creation is the
the sixth law of wealth creation is the law of bootstrapping
law of bootstrapping this law states that entrepreneurs who
this law states that entrepreneurs who start with too little capital are
start with too little capital are usually more successful than those who
usually more successful than those who start with too much
start with too much you've probably heard it said that most
you've probably heard it said that most businesses fail because they don't have
businesses fail because they don't have enough capital they run out of money the
enough capital they run out of money the fact of the matter is that probably more
fact of the matter is that probably more businesses fail because they start off
businesses fail because they start off with too much money rather than too
with too much money rather than too little
little the reason for this is simple
the reason for this is simple the most valuable thing an entrepreneur
the most valuable thing an entrepreneur can bring to a new business idea is
can bring to a new business idea is energy and imagination
energy and imagination when you have very little money you have
when you have very little money you have to use your intelligence and your
to use your intelligence and your efforts as a substitute for it you don't
efforts as a substitute for it you don't have the luxury of using money to smooth
have the luxury of using money to smooth out the bumps or to put a cushion under
out the bumps or to put a cushion under you when you're down to your last dollar
you when you're down to your last dollar or if you're starting off with virtually
or if you're starting off with virtually no money at all you start to think fast
no money at all you start to think fast very early
very early you develop street smarts
you develop street smarts you learn how to think on your feet and
you learn how to think on your feet and to take action quickly
to take action quickly some of the smartest and most successful
some of the smartest and most successful business people have used bootstrapping
business people have used bootstrapping as the key method of achieving their
as the key method of achieving their goals
goals many people hold back from starting a
many people hold back from starting a business because they're convinced that
business because they're convinced that they need a lot of money when they go to
they need a lot of money when they go to a bank they're turned down the fact is
a bank they're turned down the fact is that banks don't lend money for business
that banks don't lend money for business startups
startups banks are in the business of making good
banks are in the business of making good loans that is loans to people who can
loans that is loans to people who can back the money that they are borrowing
back the money that they are borrowing with two three four or five dollars for
with two three four or five dollars for every one dollar they're asking the bank
every one dollar they're asking the bank to loan
to loan if you don't have that the bank won't
if you don't have that the bank won't even talk to you
even talk to you as for venture capitalists fully ninety
as for venture capitalists fully ninety nine percent of all proposals put into
nine percent of all proposals put into the hands of venture capitalists are
the hands of venture capitalists are turned down
turned down and of the one percent that venture
and of the one percent that venture capitalists will back
capitalists will back many of them are failures as well
many of them are failures as well most businesses are built up by
most businesses are built up by bootstrapping and by what is called love
bootstrapping and by what is called love money
money love money is money that people lend to
love money is money that people lend to you or give to you because they love you
you or give to you because they love you most entrepreneurs finance their own
most entrepreneurs finance their own startups or they finance their startups
startups or they finance their startups with money from their parents or members
with money from their parents or members of their family or their friends this is
of their family or their friends this is the most common way of getting a
the most common way of getting a business going in america today
business going in america today the first part of the law of
the first part of the law of bootstrapping is as i mentioned earlier
bootstrapping is as i mentioned earlier the most important resources in a new
the most important resources in a new business are energy and imagination
business are energy and imagination if you have enough energy and
if you have enough energy and imagination you will ultimately be
imagination you will ultimately be successful no matter what happens in the
successful no matter what happens in the short term
short term on the other hand if you lack energy and
on the other hand if you lack energy and imagination you can go through any
imagination you can go through any amount of money and you'll ultimately
amount of money and you'll ultimately fail so the sooner you develop your
fail so the sooner you develop your street smarts and that depends upon you
street smarts and that depends upon you having very little money to start with
having very little money to start with the faster you'll be more successful
the faster you'll be more successful the second part of this law says that
the second part of this law says that skill knowledge and experience develop
skill knowledge and experience develop in inverse proportion to the amount of
in inverse proportion to the amount of capital available
capital available the less capital you have the smarter
the less capital you have the smarter you get and the more likely you are to
you get and the more likely you are to succeed
succeed the seventh law of wealth creation is
the seventh law of wealth creation is the law of courage which says that
the law of courage which says that your willingness to risk failure and
your willingness to risk failure and disappointment
disappointment is a measure of your desire to be rich
is a measure of your desire to be rich the first part of the law of courage
the first part of the law of courage says that
says that no guts no glory
no guts no glory you've got to be willing to stick your
you've got to be willing to stick your neck out if you want to get your head
neck out if you want to get your head above the crowd
above the crowd you have to go out on a limb if you want
you have to go out on a limb if you want to get ahead because that's where the
to get ahead because that's where the fruit of life is
fruit of life is the second part of the law of courage
the second part of the law of courage says that there is nothing to fear but
says that there is nothing to fear but fear itself
fear itself this was first said by president
this was first said by president franklin d roosevelt during the great
franklin d roosevelt during the great depression and it's just as true today
depression and it's just as true today one of the best ways for you to deal
one of the best ways for you to deal with fear is to ask yourself
with fear is to ask yourself what's the worst possible thing that can
what's the worst possible thing that can possibly happen
possibly happen most of your fear comes from not
most of your fear comes from not identifying the worst possible
identifying the worst possible consequences of your situation
consequences of your situation once you've clearly defined what might
once you've clearly defined what might happen
happen you can then do everything to make sure
you can then do everything to make sure that it doesn't occur
that it doesn't occur the third part of the law of courage
the third part of the law of courage says simply
says simply do the thing you fear and the death of
do the thing you fear and the death of fear is certain
fear is certain your ability to confront the things you
your ability to confront the things you fear to face them and to move ahead in
fear to face them and to move ahead in spite of your fears is the way you
spite of your fears is the way you develop the courage that's essential to
develop the courage that's essential to long-term success
long-term success dare to go forward
dare to go forward winston churchill once said
winston churchill once said courage is rightly considered the
courage is rightly considered the foremost of the virtues for upon it
foremost of the virtues for upon it all others depend
all others depend this is equally true for you and for
this is equally true for you and for your desire to become wealthy
your desire to become wealthy the eighth law of wealth creation is the
the eighth law of wealth creation is the law of risk
law of risk this law simply says that there is a
this law simply says that there is a direct relationship between the level of
direct relationship between the level of risk and the likelihood of loss
risk and the likelihood of loss people who become wealthy are extremely
people who become wealthy are extremely astute at assessing the level of risk in
astute at assessing the level of risk in every situation they deal with
every situation they deal with they carefully analyze the ratio of risk
they carefully analyze the ratio of risk to return before deciding to invest
to return before deciding to invest their time or money at all
their time or money at all you begin your analysis of risk by
you begin your analysis of risk by realizing that a perfectly safe
realizing that a perfectly safe investment in a money market or savings
investment in a money market or savings account
account can yield you seven to eight percent
can yield you seven to eight percent interest
interest if you're going to invest your time and
if you're going to invest your time and money you must be assured of a return
money you must be assured of a return that is substantially higher than that
that is substantially higher than that to compensate you for the possibility
to compensate you for the possibility that you'll lose all or part of your
that you'll lose all or part of your money
money when you assess the risk include all the
when you assess the risk include all the possible costs
possible costs include your labor at your desired
include your labor at your desired hourly rate as an investment as well
hourly rate as an investment as well many entrepreneurs think they're doing
many entrepreneurs think they're doing well because they don't count their own
well because they don't count their own labor as a cost of doing business
labor as a cost of doing business you count your own labor by determining
you count your own labor by determining how much you would be paid if you went
how much you would be paid if you went to work for another company and counting
to work for another company and counting that as a cost of your doing business
that as a cost of your doing business you also take the money that you have
you also take the money that you have tied up in the business and calculate
tied up in the business and calculate what you'd earn on it at a safe rate of
what you'd earn on it at a safe rate of return
return that is also a cost
that is also a cost it's called an opportunity cost of money
it's called an opportunity cost of money which combined with your opportunity
which combined with your opportunity cost of labor will give you the real
cost of labor will give you the real amount of your investment and your risk
amount of your investment and your risk the first part of the law of risk comes
the first part of the law of risk comes from malcolm forbes who said
from malcolm forbes who said if it sounds too good to be true
if it sounds too good to be true it probably is
it probably is one of the greatest wastes of time and
one of the greatest wastes of time and life let alone money is the pursuit of
life let alone money is the pursuit of get rich quick schemes which seem to
get rich quick schemes which seem to come down the pipeline with astonishing
come down the pipeline with astonishing regularity
regularity the only real way to get rich dependably
the only real way to get rich dependably is to get rich slowly
is to get rich slowly it's hard work and it takes a long time
it's hard work and it takes a long time to accumulate wealth but you're foolish
to accumulate wealth but you're foolish to seek for faster and easier ways
to seek for faster and easier ways the second part of the law of risk says
the second part of the law of risk says that success in wealth creation is the
that success in wealth creation is the result of avoiding risk in the pursuit
result of avoiding risk in the pursuit of profit the fact is that entrepreneurs
of profit the fact is that entrepreneurs are not risk takers as is commonly
are not risk takers as is commonly believed rather successful entrepreneurs
believed rather successful entrepreneurs are risk avoiders they're very skillful
are risk avoiders they're very skillful at sidestepping and avoiding risk in the
at sidestepping and avoiding risk in the pursuit of adding value and earning
pursuit of adding value and earning profits
profits it's only to the degree to which you
it's only to the degree to which you avoid the risks inherent in any economic
avoid the risks inherent in any economic activity that you become wealthy
activity that you become wealthy the third part of the law of risk says
the third part of the law of risk says that entrepreneurs take calculated risks
that entrepreneurs take calculated risks but they are not gamblers
but they are not gamblers extensive research on the psychology and
extensive research on the psychology and patterns of behavior of successful
patterns of behavior of successful entrepreneurs shows that because they
entrepreneurs shows that because they work hard for their money they have no
work hard for their money they have no desire to gamble it away
desire to gamble it away entrepreneurs accept that there's a
entrepreneurs accept that there's a certain amount of risk in anything they
certain amount of risk in anything they do
do however they believe that they can tip
however they believe that they can tip the scales to their own advantage they
the scales to their own advantage they can moderate the risk by adding their
can moderate the risk by adding their knowledge skills and ability to the
knowledge skills and ability to the equation
equation they are willing to take gambles only
they are willing to take gambles only when they can personally have an effect
when they can personally have an effect on the outcome
on the outcome you seldom see entrepreneurs in the
you seldom see entrepreneurs in the gambling resorts and you seldom find
gambling resorts and you seldom find them trading in the stock market
them trading in the stock market if they're in the stock market at all
if they're in the stock market at all they have investment portfolios where
they have investment portfolios where they store their excess funds for the
they store their excess funds for the long term
long term their funds are carefully allocated
their funds are carefully allocated among blue chip stocks and are
among blue chip stocks and are supervised by professional money
supervised by professional money managers
managers if you ask the average self-made
if you ask the average self-made millionaire how the stock market did
millionaire how the stock market did today he will tell you quite frankly
today he will tell you quite frankly that he doesn't know
that he doesn't know they don't follow the stock market
they don't follow the stock market because they're not interested in
because they're not interested in day-to-day fluctuations
day-to-day fluctuations the ninth law of wealth creation is
the ninth law of wealth creation is called the law of undue optimism and
called the law of undue optimism and it's essential for both entrepreneurship
it's essential for both entrepreneurship and the creation of wealth
and the creation of wealth it says
it says an unwarranted expectancy of success can
an unwarranted expectancy of success can lead to both the success and failure of
lead to both the success and failure of a new business venture
a new business venture excess optimism is absolutely essential
excess optimism is absolutely essential for a person to embark on a new business
for a person to embark on a new business adventure of any kind
adventure of any kind without undue optimism without an
without undue optimism without an extremely positive feeling that you'll
extremely positive feeling that you'll be successful you'll have a tendency to
be successful you'll have a tendency to play it too safe as most people do
play it too safe as most people do in order to get started in the first
in order to get started in the first place you need an attitude of
place you need an attitude of hopefulness and positive expectancy that
hopefulness and positive expectancy that is much higher than the average
is much higher than the average however
however this same undue optimism can lead to
this same undue optimism can lead to self-delusion and unreal expectations so
self-delusion and unreal expectations so you need to temper your optimism with
you need to temper your optimism with reality you need to examine every aspect
reality you need to examine every aspect of the business before you commit your
of the business before you commit your resources to it you need to seek out the
resources to it you need to seek out the advice of other people who may not be as
advice of other people who may not be as positive towards your idea as you are
positive towards your idea as you are and consider what they have to say
and consider what they have to say carefully before you act the first part
carefully before you act the first part of this law says that the true time
of this law says that the true time period for you to break even will be
period for you to break even will be three times longer than your best
three times longer than your best estimate
estimate once you've written out your business
once you've written out your business plan
plan you should triple your very best
you should triple your very best estimate of your break-even point and
estimate of your break-even point and make sure that you have the resources to
make sure that you have the resources to continue operating that long
continue operating that long practice frugality at all times and
practice frugality at all times and conserve your cash above all else when
conserve your cash above all else when starting on any new venture
starting on any new venture the second part of the law of undue
the second part of the law of undue optimism is
optimism is whatever your budget is for your venture
whatever your budget is for your venture it will cost you twice as much as you
it will cost you twice as much as you expect
expect so be conservative in projecting your
so be conservative in projecting your sales and revenues and be liberal even
sales and revenues and be liberal even excessive in estimating your costs
excessive in estimating your costs always calculate your expenses on the
always calculate your expenses on the outside at the highest you can imagine
outside at the highest you can imagine and when you have them all added up then
and when you have them all added up then add another 20 as a fudge factor to get
add another 20 as a fudge factor to get a more realistic picture of what your
a more realistic picture of what your financial costs are likely to be
financial costs are likely to be if you exceed your financial results and
if you exceed your financial results and you do better than you expect that's
you do better than you expect that's wonderful but practice caution and
wonderful but practice caution and pessimism
pessimism in your financial projections to start
in your financial projections to start with
with the third part of the law of undo
the third part of the law of undo optimism is called murphy's law which
optimism is called murphy's law which you've heard of before
you've heard of before it says whatever can go wrong will go
it says whatever can go wrong will go wrong
wrong an addition to this law says that of all
an addition to this law says that of all the possible things that can go wrong
the possible things that can go wrong the worst possible thing will go wrong
the worst possible thing will go wrong at the worst possible time and it will
at the worst possible time and it will cost you the greatest amount of money
cost you the greatest amount of money people who start their own businesses
people who start their own businesses are convinced at least initially that
are convinced at least initially that they're going to violate these laws and
they're going to violate these laws and succeed in spite of them
succeed in spite of them people who succeed however are those who
people who succeed however are those who conform to these laws and who have
conform to these laws and who have stopped trying to beat them
stopped trying to beat them the tenth law of wealth creation is the
the tenth law of wealth creation is the law of persistence
law of persistence it says that if you persist long enough
it says that if you persist long enough you must inevitably be successful
you must inevitably be successful persistence is to the quality of man as
persistence is to the quality of man as carbon is to steal
carbon is to steal your persistence is your measure of your
your persistence is your measure of your belief in yourself
belief in yourself persistence is your self-discipline in
persistence is your self-discipline in action
action it's your ability to persist that is
it's your ability to persist that is often your most valuable asset
often your most valuable asset the first part of the law of persistence
the first part of the law of persistence says that the entire process of wealth
says that the entire process of wealth creation is just one important lesson
creation is just one important lesson after another
after another if ever you feel that you've reached the
if ever you feel that you've reached the point where you know everything that you
point where you know everything that you need to know
need to know in no time at all you're going to be
in no time at all you're going to be blindsided by a completely new and
blindsided by a completely new and unexpected series of problems and
unexpected series of problems and difficulties
difficulties mark my words
mark my words the second part of the law of
the second part of the law of persistence says that you stay in
persistence says that you stay in business and you achieve success as long
business and you achieve success as long as you continue to earn enough money to
as you continue to earn enough money to pay for your mistakes
pay for your mistakes the freedom to fail is what gives you
the freedom to fail is what gives you the opportunity to succeed you are
the opportunity to succeed you are learning all the time when you have
learning all the time when you have experiences either positive or negative
experiences either positive or negative you will learn from them and what you
you will learn from them and what you learn will enable you to win in the end
learn will enable you to win in the end by the law of accumulation which i
by the law of accumulation which i talked about in an earlier session your
talked about in an earlier session your ultimate success will be an accumulation
ultimate success will be an accumulation of hundreds and even thousands of small
of hundreds and even thousands of small actions on your part that gradually add
actions on your part that gradually add up to a form of critical mass that
up to a form of critical mass that enables you to create and keep the
enables you to create and keep the wealth for which you're working
wealth for which you're working perhaps the most important thing you can
perhaps the most important thing you can do is to take time every day to think
do is to take time every day to think about your goals and to reflect quietly
about your goals and to reflect quietly on the things that you've done right and
on the things that you've done right and the things that you would do differently
the things that you would do differently in the future
in the future remember action without thinking is the
remember action without thinking is the cause of every failure
cause of every failure financial wealth is within your grasp
financial wealth is within your grasp hundreds of thousands of men and women
hundreds of thousands of men and women have acquired it in the past and you can
have acquired it in the past and you can acquire it in the future if you do the
acquire it in the future if you do the same things they did and if you learn
same things they did and if you learn the same lessons
the same lessons the only real limitation on your
the only real limitation on your potential is the level of your desire
potential is the level of your desire and the strength of your willingness to
and the strength of your willingness to persist in the face of adversity when
persist in the face of adversity when you set a clear goal
you set a clear goal develop a written plan put your plan
develop a written plan put your plan into action and back your actions with
into action and back your actions with determination and perseverance you must
determination and perseverance you must and will eventually be successful
and will eventually be successful you will become one of the leading men
you will become one of the leading men or women of your generation
everyone who makes their living selling something to someone
something to someone everyone is paid both tangibly and
everyone is paid both tangibly and intangibly on the basis of how well they
intangibly on the basis of how well they sell themselves their ideas and their
sell themselves their ideas and their products and services to others
products and services to others it's not a matter of whether you sell or
it's not a matter of whether you sell or not it's only a matter of how good you
not it's only a matter of how good you are at it
are at it parents for example are continually
parents for example are continually selling values attitudes and behaviors
selling values attitudes and behaviors to their children and their children
to their children and their children will grow up straight and strong to the
will grow up straight and strong to the degree to which the parents have been
degree to which the parents have been good at this job
good at this job the very best managers and leaders are
the very best managers and leaders are invariably described as excellent low
invariably described as excellent low pressure sales people
pressure sales people since people don't like to be told
since people don't like to be told taught or talked down to
taught or talked down to the most successful human relations
the most successful human relations experts are those who can present an
experts are those who can present an idea in such a way that the other person
idea in such a way that the other person will embrace it as his own
will embrace it as his own president dwight d eisenhower once said
president dwight d eisenhower once said that the art of leadership
that the art of leadership is getting people to do what you want
is getting people to do what you want them to do
them to do and to think of it as their own idea
and to think of it as their own idea in business and industry and in work and
in business and industry and in work and in organizations
in organizations you're paid largely on your ability to
you're paid largely on your ability to sell the quality of your work to the
sell the quality of your work to the people who determine your success in
people who determine your success in your career
your career many people market themselves both
many people market themselves both aggressively and effectively in their
aggressively and effectively in their careers and they move ahead far more
careers and they move ahead far more rapidly than others who don't
rapidly than others who don't even though they may not be more
even though they may not be more talented and they may not be producing
talented and they may not be producing more or better work
more or better work it's all in the selling
it's all in the selling many people are uneasy about the word
many people are uneasy about the word selling including many salespeople
selling including many salespeople but the fact is that the ability to
but the fact is that the ability to persuade and influence others is central
persuade and influence others is central to a happy life
to a happy life the opposite to influencing and
the opposite to influencing and persuading others to your point of view
persuading others to your point of view is having no ability to influence or to
is having no ability to influence or to persuade others or to be merely a
persuade others or to be merely a passive agent in the flow of events
passive agent in the flow of events people who can't get others to go along
people who can't get others to go along with them have very little influence and
with them have very little influence and aren't very highly respected
aren't very highly respected but people who have developed the
but people who have developed the ability to be persuasive and convincing
ability to be persuasive and convincing in their arguments on the other hand are
in their arguments on the other hand are some of the most respected and the most
some of the most respected and the most successful people in our society
successful people in our society the ability to sell well is one of the
the ability to sell well is one of the rarest talents in america
rarest talents in america top salespeople are some of the best
top salespeople are some of the best paid most respected and most secure of
paid most respected and most secure of all professionals
all professionals so whether you are a customer a manager
so whether you are a customer a manager a salesperson or anyone else
a salesperson or anyone else you owe it to yourself to become
you owe it to yourself to become excellent at selling whatever you sell
excellent at selling whatever you sell to other people
to other people to speak specifically of the sales
to speak specifically of the sales profession
profession according to the pareto principle
according to the pareto principle the top twenty percent of sales people
the top twenty percent of sales people sell eighty percent of the business and
sell eighty percent of the business and earn eighty percent of the money
earn eighty percent of the money research shows that the top ten percent
research shows that the top ten percent of sales people open 80 percent of the
of sales people open 80 percent of the new accounts and are some of the highest
new accounts and are some of the highest paid people in the world of business
paid people in the world of business wonderfully enough there's more research
wonderfully enough there's more research available on selling and how to do it
available on selling and how to do it effectively today than there ever has
effectively today than there ever has been at any other time in human history
been at any other time in human history today we know more about how to succeed
today we know more about how to succeed in selling than ever before
in selling than ever before and that's what we'll cover in this
and that's what we'll cover in this session
session selling involves three essential factors
selling involves three essential factors first comes the product or service
first comes the product or service then comes the sales person and then the
then comes the sales person and then the customer
customer all three must be ideally suited to each
all three must be ideally suited to each other for a sale to take place
other for a sale to take place let me explain
let me explain the product or service must be right for
the product or service must be right for the customer but it also must be right
the customer but it also must be right for the sales person if he or she is
for the sales person if he or she is going to sell it to the customer
going to sell it to the customer some sales people are excellent at
some sales people are excellent at selling one type of product or service
selling one type of product or service and some sales people are excellent at
and some sales people are excellent at another
another it has very little to do with the
it has very little to do with the product or service itself
product or service itself it often has to do with the temperament
it often has to do with the temperament personality values and attitude of the
personality values and attitude of the salesperson
salesperson you see it's very hard to sell something
you see it's very hard to sell something that you can't put your whole heart into
that you can't put your whole heart into many people have found that by changing
many people have found that by changing products or services they've gone to the
products or services they've gone to the top of their industries whereas before
top of their industries whereas before they were merely spinning their wheels
they were merely spinning their wheels the starting point of sales success then
the starting point of sales success then is to make sure that these three factors
is to make sure that these three factors are in place that this is the right
are in place that this is the right product or service for you to be selling
product or service for you to be selling to the right customer the one you most
to the right customer the one you most enjoy working with
enjoy working with there are 13 laws that apply to sales
there are 13 laws that apply to sales that you can use to enable yourself to
that you can use to enable yourself to be far more effective and successful
be far more effective and successful the first is the law of sales
the first is the law of sales which says nothing happens until a sale
which says nothing happens until a sale takes place
takes place these words come from the great salesman
these words come from the great salesman and sales trainer red motley
and sales trainer red motley the fact is that a sale is what
the fact is that a sale is what initiates the entire production process
initiates the entire production process it activates the factories and provides
it activates the factories and provides employment for the workers it pays
employment for the workers it pays salaries and wages pays taxes and
salaries and wages pays taxes and dividends
dividends and it determines the entire direction
and it determines the entire direction of society
of society whenever sales are good in any economy
whenever sales are good in any economy the economy is strong and full of
the economy is strong and full of opportunities for growth and prosperity
opportunities for growth and prosperity the very first thing to slow down when
the very first thing to slow down when the economy begins to soften is the
the economy begins to soften is the level of sales
level of sales the first part of the law of sales says
the first part of the law of sales says that
that products and services are sold not
products and services are sold not bought
bought no matter how good a product or service
no matter how good a product or service is in a competitive market and with
is in a competitive market and with customers who are busy and preoccupied
customers who are busy and preoccupied with many other things
with many other things products and services must ultimately be
products and services must ultimately be sold
sold and they require someone to sell them
and they require someone to sell them the skill of selling is therefore one of
the skill of selling is therefore one of the guarantors of a happy and prosperous
the guarantors of a happy and prosperous life
life the second part of this law says that
the second part of this law says that customers need to be asked to buy
customers need to be asked to buy no matter how much a customer likes you
no matter how much a customer likes you or your product there's always a certain
or your product there's always a certain amount of indecision or hesitation at
amount of indecision or hesitation at the point of buying
the point of buying and it's the job of the professional
and it's the job of the professional sales person to help the customer
sales person to help the customer through this difficult moment into the
through this difficult moment into the enjoyment of owning and using the
enjoyment of owning and using the product or service
product or service the third part of this law says that
the third part of this law says that eighty percent of sales are closed after
eighty percent of sales are closed after the fifth call
the fifth call or
or after the fifth closing attempt
after the fifth closing attempt in complex sales which are sales
in complex sales which are sales involving several people in several
involving several people in several meetings with a client
meetings with a client most sales are closed after the fifth
most sales are closed after the fifth meeting or interaction
meeting or interaction in simple sales which are sales
in simple sales which are sales requiring only a single meeting with a
requiring only a single meeting with a client or customer
client or customer most sales are closed after the fifth
most sales are closed after the fifth time that the salesperson asks the
time that the salesperson asks the customer to make a buying decision
customer to make a buying decision it's therefore essential that the
it's therefore essential that the salesperson plans the close of the sales
salesperson plans the close of the sales conversation in advance
conversation in advance and has a variety of different ways to
and has a variety of different ways to ask for the order
ask for the order the fourth part of this law says that
the fourth part of this law says that fifty percent of salespeople quit after
fifty percent of salespeople quit after the first call in a complex sale and
the first call in a complex sale and fifty percent of salespeople fail to ask
fifty percent of salespeople fail to ask for the order even once in a simple sale
for the order even once in a simple sale for example
for example a sales organization i worked with sent
a sales organization i worked with sent out consultants with their sales people
out consultants with their sales people and found that the sales people were
and found that the sales people were asking for the order an average of four
asking for the order an average of four times per sales conversation
times per sales conversation and their sales weren't very high
and their sales weren't very high they then taught the sales people to ask
they then taught the sales people to ask for the order at least five times in
for the order at least five times in each sales conversation and their sales
each sales conversation and their sales doubled within the next 30 days
doubled within the next 30 days very often each time you ask a customer
very often each time you ask a customer to make a decision the customer draws
to make a decision the customer draws closer to making the final decision
closer to making the final decision sadly enough many salespeople quit when
sadly enough many salespeople quit when the sale is just within reach
the sale is just within reach by failing to ask for the order one more
by failing to ask for the order one more time
time the fifth part of the law of sales comes
the fifth part of the law of sales comes from the new testament teaching which
from the new testament teaching which says
says ask and you shall receive
ask and you shall receive there's no miracle to success in selling
there's no miracle to success in selling top salespeople just see more people and
top salespeople just see more people and ask more often
ask more often if you want to join the top ranks of
if you want to join the top ranks of sales professionals in your field you
sales professionals in your field you must simply increase your frequency of
must simply increase your frequency of contact with your customers
contact with your customers let me tell you another story
let me tell you another story a large company in california paid many
a large company in california paid many thousands of dollars to bring in an
thousands of dollars to bring in an outside consulting firm to find out why
outside consulting firm to find out why their sales were down
their sales were down they found that their sales people had
they found that their sales people had begun to drift in their sales activities
begun to drift in their sales activities and they were only making four customer
and they were only making four customer contacts per week
contacts per week immediately upon discovering this they
immediately upon discovering this they instituted a control procedure which
instituted a control procedure which required that each salesperson meet face
required that each salesperson meet face to face with at least 10 customers per
to face with at least 10 customers per week
week their sales jumped fifty percent during
their sales jumped fifty percent during the very first month
the very first month they proved again that no amount of
they proved again that no amount of training or skill can replace the need
training or skill can replace the need to get head to head and knee to knee
to get head to head and knee to knee with customers
with customers the second law of selling is the law of
the second law of selling is the law of ambition which says
ambition which says how high you rise is largely determined
how high you rise is largely determined by how high you want to climb
by how high you want to climb how far you go in your field how much
how far you go in your field how much money you earn is not determined solely
money you earn is not determined solely by external factors
by external factors it's determined more by internal factors
it's determined more by internal factors it's more often determined by your level
it's more often determined by your level of desire and ambition
of desire and ambition the first part of the law of ambition
the first part of the law of ambition says
says commit to being the best in your field
commit to being the best in your field the commitment to excellence in your
the commitment to excellence in your field of selling more than anything else
field of selling more than anything else will propel you onward and upward and
will propel you onward and upward and will assure you of great success
will assure you of great success all top salespeople got there only after
all top salespeople got there only after they'd made a firm decision to be the
they'd made a firm decision to be the best at what they were doing
best at what they were doing the second part of the law of ambition
the second part of the law of ambition says that
says that to achieve high sales goals you have to
to achieve high sales goals you have to set them in the first place
set them in the first place the starting point of great success in
the starting point of great success in selling is for you to decide how much
selling is for you to decide how much you want to earn each year
you want to earn each year and then to decide how much you're going
and then to decide how much you're going to have to sell in order to earn it
to have to sell in order to earn it break your annual sales goals down into
break your annual sales goals down into monthly goals weekly goals and even
monthly goals weekly goals and even daily goals
daily goals then divide your annual income goal by
then divide your annual income goal by the number 250 which represents the
the number 250 which represents the number of working days in an average
number of working days in an average year to determine how much you want to
year to determine how much you want to earn each day
earn each day divide your daily earnings goal by eight
divide your daily earnings goal by eight to determine how much you want to earn
to determine how much you want to earn per hour
per hour from that moment onward never do
from that moment onward never do anything that doesn't pay you your
anything that doesn't pay you your desired hourly rate
desired hourly rate for example
for example if you wanted to earn fifty thousand
if you wanted to earn fifty thousand dollars a year
dollars a year dividing that number by two hundred and
dividing that number by two hundred and fifty would give you two hundred dollars
fifty would give you two hundred dollars per day or
per day or twenty five dollars per hour for an
twenty five dollars per hour for an eight hour day
eight hour day from then on never do anything that you
from then on never do anything that you wouldn't pay someone else twenty five
wouldn't pay someone else twenty five dollars per hour to do
dollars per hour to do don't drop off your dry cleaning or pick
don't drop off your dry cleaning or pick up your groceries or socialize on the
up your groceries or socialize on the telephone these activities don't pay
telephone these activities don't pay twenty five dollars per hour
twenty five dollars per hour and if you don't do twenty five dollar
and if you don't do twenty five dollar per hour work eight hours a day it's
per hour work eight hours a day it's impossible by the law of cause and
impossible by the law of cause and effect for you ever to earn fifty
effect for you ever to earn fifty thousand dollars per year that's why all
thousand dollars per year that's why all top sales people are extremely well
top sales people are extremely well disciplined in the way they use their
disciplined in the way they use their time
time hour by hour throughout the working day
hour by hour throughout the working day the third part of the law of ambition
the third part of the law of ambition says that you can't fly with the eagles
says that you can't fly with the eagles if you continue to scratch with the
if you continue to scratch with the turkeys
turkeys this line comes from zig ziglar and it
this line comes from zig ziglar and it says that in order for you to be the
says that in order for you to be the best in your field you must associate
best in your field you must associate with the best people in your field
with the best people in your field at the same time you must get away from
at the same time you must get away from the eighty percent of sales people who
the eighty percent of sales people who are going nowhere
are going nowhere most top sales people tend to be loners
most top sales people tend to be loners in that they find in order to keep
in that they find in order to keep themselves positive and motivated and
themselves positive and motivated and focused on their work they've got to
focused on their work they've got to stay away from the great majority of
stay away from the great majority of other sales people who are not
other sales people who are not it's essential that you discipline
it's essential that you discipline yourself in this area and if you want to
yourself in this area and if you want to be a top salesperson you must get around
be a top salesperson you must get around other top salespeople
other top salespeople the third law of selling is the law of
the third law of selling is the law of need
need which says that
which says that every decision to purchase a product or
every decision to purchase a product or service is an attempt to satisfy a need
service is an attempt to satisfy a need or relieve a dissatisfaction
or relieve a dissatisfaction one of the most important things you do
one of the most important things you do in successful selling is to put yourself
in successful selling is to put yourself in the shoes of your prospect and see
in the shoes of your prospect and see your offering through his or her eyes
your offering through his or her eyes the first part of the law of need says
the first part of the law of need says that
that before selling anything to anyone the
before selling anything to anyone the salesperson must be clear about the need
salesperson must be clear about the need that he or she is attempting to satisfy
that he or she is attempting to satisfy good salespeople are very good at asking
good salespeople are very good at asking questions and listening intently to the
questions and listening intently to the answers
answers this enables them to focus in on
this enables them to focus in on satisfying the most important and
satisfying the most important and pressing needs of the customer with
pressing needs of the customer with their product or service
their product or service the second part of the law of need says
the second part of the law of need says that sales success comes from fulfilling
that sales success comes from fulfilling existing needs not creating new ones
existing needs not creating new ones your job is to uncover the needs that
your job is to uncover the needs that already exist not to attempt to convince
already exist not to attempt to convince a person that they have needs that they
a person that they have needs that they may not have thought of in the first
may not have thought of in the first place
place the third part of the law of need says
the third part of the law of need says that the more basic the need the more
that the more basic the need the more basic the sales presentation
basic the sales presentation for example if you're selling potatoes
for example if you're selling potatoes which caters to the need for food you
which caters to the need for food you can sell them very simply by size and
can sell them very simply by size and weight
weight your sales appeal will be to appetite
your sales appeal will be to appetite and attractiveness
and attractiveness your basis of comparison with other
your basis of comparison with other foodstuffs will be simple and
foodstuffs will be simple and straightforward
straightforward however the fourth part of this law the
however the fourth part of this law the converse of the third part says that the
converse of the third part says that the more complex the need the more
more complex the need the more sophisticated and subtle must be the
sophisticated and subtle must be the sales presentation
sales presentation for example if you're selling perfume to
for example if you're selling perfume to ladies your advertising and sales
ladies your advertising and sales approach must be very low keyed and
approach must be very low keyed and gentle
gentle perfume is a delicate subject used
perfume is a delicate subject used delicately and is only sold when the
delicately and is only sold when the salesperson can structure the appeal in
salesperson can structure the appeal in such a way that it connects with deep
such a way that it connects with deep inner needs for beauty and
inner needs for beauty and self-realization
self-realization the fifth part of the law of need says
the fifth part of the law of need says that the obvious need is often not the
that the obvious need is often not the real need upon which the product will be
real need upon which the product will be purchased
purchased never assume that you know the need
never assume that you know the need each customer is different the need that
each customer is different the need that caused one customer to buy may not be
caused one customer to buy may not be the same for another customer
the same for another customer if you structure your appeal to the
if you structure your appeal to the wrong need you'll be unsuccessful in the
wrong need you'll be unsuccessful in the sales process
sales process again the very best salespeople are very
again the very best salespeople are very sensitive and attentive to their
sensitive and attentive to their customers and they don't even begin to
customers and they don't even begin to attempt to sell
attempt to sell until they're absolutely clear what it
until they're absolutely clear what it is the customer is really interested in
is the customer is really interested in buying
buying the fourth law of selling
the fourth law of selling is the law of problems
is the law of problems this law says that every product or
this law says that every product or service can be viewed as the solution to
service can be viewed as the solution to a problem the fulfillment of a need or
a problem the fulfillment of a need or the resolution of an uncertainty as a
the resolution of an uncertainty as a sales person you are basically a
sales person you are basically a professional problem solver
professional problem solver people get from where they are to where
people get from where they are to where they want to go by means of your product
they want to go by means of your product or service
or service the first part of the law of problems
the first part of the law of problems says that customers buy solutions not
says that customers buy solutions not products or services
products or services a business person for example is
a business person for example is interested in increasing productivity or
interested in increasing productivity or sales decreasing costs and increasing
sales decreasing costs and increasing bottom line profits
bottom line profits the business person doesn't care if
the business person doesn't care if you're selling hula hoops or mainframe
you're selling hula hoops or mainframe computers really the business person is
computers really the business person is interested in his or her problem and a
interested in his or her problem and a possible solution to it
possible solution to it not your product or service or your
not your product or service or your desire to sell it
desire to sell it when you begin to perceive yourself as a
when you begin to perceive yourself as a professional problem solver rather than
professional problem solver rather than as a salesperson
as a salesperson your success with your customers will go
your success with your customers will go up dramatically
up dramatically the second part of the law of problems
the second part of the law of problems says that the more pressing the problem
says that the more pressing the problem or need the less price sensitive the
or need the less price sensitive the customer will be
customer will be and the easier the sale
and the easier the sale if a person really needs or can benefit
if a person really needs or can benefit from purchasing a product or service
from purchasing a product or service the customer's concern about price and
the customer's concern about price and timing will diminish
timing will diminish if a person is really hungry he or she
if a person is really hungry he or she will pay a lot to eat
will pay a lot to eat your job in the sales conversation is to
your job in the sales conversation is to increase the level of the customer's
increase the level of the customer's desire for the benefits and enjoyment of
desire for the benefits and enjoyment of your product or service to the point
your product or service to the point where the price is not a major obstacle
where the price is not a major obstacle to proceeding
to proceeding the fifth law of selling is the law of
the fifth law of selling is the law of persuasion which says that the process
persuasion which says that the process of selling is to convince the customer
of selling is to convince the customer that he will be better off with the
that he will be better off with the product
product than he would be with the money
than he would be with the money necessary to buy the product
necessary to buy the product you're asking the customer to engage in
you're asking the customer to engage in a trade
a trade you're telling the customer that if the
you're telling the customer that if the customer gives you their money the
customer gives you their money the product or service that you will supply
product or service that you will supply will be of greater value to him than
will be of greater value to him than either the money or anything else the
either the money or anything else the customer could buy with that same amount
customer could buy with that same amount of money at the same time
of money at the same time remember the law of the excluded
remember the law of the excluded alternative
alternative every choice implies a rejection
every choice implies a rejection when you ask a customer to buy from you
when you ask a customer to buy from you and to exchange part of his or her
and to exchange part of his or her limited amount of money
limited amount of money you're asking the customer to forego all
you're asking the customer to forego all other pleasures and satisfactions that
other pleasures and satisfactions that are available to the customer with the
are available to the customer with the same amount of money at the same time
same amount of money at the same time and this is a big question
and this is a big question the first part of the law of persuasion
the first part of the law of persuasion is that
is that the customer always acts to satisfy the
the customer always acts to satisfy the greatest number of unmet needs in the
greatest number of unmet needs in the very best way at the lowest possible
very best way at the lowest possible price
price a major part of your job is to
a major part of your job is to demonstrate that the customer will get
demonstrate that the customer will get more of what he wants faster by
more of what he wants faster by purchasing your product or service than
purchasing your product or service than the customer would get if the customer
the customer would get if the customer either kept the money or bought
either kept the money or bought something else
something else the second part of the law of persuasion
the second part of the law of persuasion says
says proof that others similar to the
proof that others similar to the customer have purchased the product
customer have purchased the product already
already builds credibility
builds credibility lowers resistance
lowers resistance and increases sales
and increases sales every piece of information that you can
every piece of information that you can present in a sales conversation that
present in a sales conversation that shows the customer that other people
shows the customer that other people similar to the customer have already
similar to the customer have already wrestled with this buying decision and
wrestled with this buying decision and decided to go ahead and have been happy
decided to go ahead and have been happy as a result
as a result moves you closer to making the sale
moves you closer to making the sale the third part of the law of persuasion
the third part of the law of persuasion says
says half jokingly that salespeople who don't
half jokingly that salespeople who don't use testimonials have skinny kids
use testimonials have skinny kids testimonial letters
testimonial letters photos of happy customers using and
photos of happy customers using and enjoying your product or service or
enjoying your product or service or lists of satisfied customers are
lists of satisfied customers are extraordinarily powerful influence
extraordinarily powerful influence factors in persuading a person to buy
factors in persuading a person to buy you must take full advantage of
you must take full advantage of testimonials and acquire them from every
testimonials and acquire them from every source possible in every way you
source possible in every way you possibly can
possibly can they can make your sales work much
they can make your sales work much easier
easier you'll find that all top sales people
you'll find that all top sales people get there by using testimonials tied
get there by using testimonials tied directly into the customer they're
directly into the customer they're talking with and the product or services
talking with and the product or services that they're selling
that they're selling the sixth law of selling is the law of
the sixth law of selling is the law of risk which says that risk is inherent in
risk which says that risk is inherent in any investment of time money or emotion
any investment of time money or emotion risk is an unavoidable and an
risk is an unavoidable and an inescapable fact of life and we're
inescapable fact of life and we're always taking actions in every way
always taking actions in every way possible to reduce risk this is the
possible to reduce risk this is the entire essence of the insurance industry
entire essence of the insurance industry as i mentioned before
as i mentioned before insurance is simply a way of pooling
insurance is simply a way of pooling risks by taking premiums from a large
risks by taking premiums from a large number of people in order to cover the
number of people in order to cover the losses that will be suffered by a small
losses that will be suffered by a small number of them insuring yourself
number of them insuring yourself properly can give you a tremendous sense
properly can give you a tremendous sense of inner peace because of the reduction
of inner peace because of the reduction of risk that you feel
of risk that you feel the first part of the law of risk says
the first part of the law of risk says that you're successful in sales to the
that you're successful in sales to the degree
degree to which you can position yourself as
to which you can position yourself as the low risk provider of your product or
the low risk provider of your product or service
service this is one of the most important
this is one of the most important concepts in selling and something that
concepts in selling and something that you need to build into all of your sales
you need to build into all of your sales efforts
efforts many sales fail to materialize because
many sales fail to materialize because the customer doesn't feel that she'll be
the customer doesn't feel that she'll be safe in the use enjoyment or follow-up
safe in the use enjoyment or follow-up service and maintenance of your product
service and maintenance of your product or service
or service so you must build this idea of low-risk
so you must build this idea of low-risk supplier into every sales presentation
supplier into every sales presentation the second part of the law of risk says
the second part of the law of risk says that the primary psychological obstacle
that the primary psychological obstacle to buying is the fear of failure
to buying is the fear of failure the fear of making a mistake in a
the fear of making a mistake in a purchasing decision
purchasing decision the fear of failure is one of the most
the fear of failure is one of the most powerful of all inhibitors of human
powerful of all inhibitors of human action
action the fear of failure in buying is rooted
the fear of failure in buying is rooted in previous experiences
in previous experiences perhaps the customer bought a product
perhaps the customer bought a product that didn't work or purchased a product
that didn't work or purchased a product or service that ended up costing too
or service that ended up costing too much
much since everyone has had bad buying
since everyone has had bad buying experiences
experiences everyone is conditioned to be cautious
everyone is conditioned to be cautious and fearful about having those
and fearful about having those experiences again
experiences again this fear of failure is a major
this fear of failure is a major psychological block that you must
psychological block that you must overcome before a purchase decision can
overcome before a purchase decision can be made
be made the third part of the law of risk simply
the third part of the law of risk simply says that everything you do in a sales
says that everything you do in a sales interview either raises or lowers the
interview either raises or lowers the perception of risk and the fear of
perception of risk and the fear of failure
failure because you're asking a person to part
because you're asking a person to part with his money and to risk his ego in a
with his money and to risk his ego in a sales situation the purchasing decision
sales situation the purchasing decision is charged with emotion everything about
is charged with emotion everything about you is either adding to or detracting
you is either adding to or detracting from the perception of risk and
from the perception of risk and uncertainty on the part of the customer
uncertainty on the part of the customer in a sales situation especially a larger
in a sales situation especially a larger sale
sale nothing is neutral
nothing is neutral everything counts
everything counts everything that you do is either moving
everything that you do is either moving you toward the sale or moving you away
you toward the sale or moving you away from the sale
from the sale never allow yourself the luxury of
never allow yourself the luxury of saying oh that doesn't matter everything
saying oh that doesn't matter everything matters
matters everything counts everything is either
everything counts everything is either adding up or taken away
adding up or taken away your job is to make sure that everything
your job is to make sure that everything you do or say is helpful in some way in
you do or say is helpful in some way in that it lowers the perception of risk
that it lowers the perception of risk and raises the perception of security
and raises the perception of security the seventh law of selling is the law of
the seventh law of selling is the law of trust one of the most important of all
trust one of the most important of all laws in selling
laws in selling it says that the trust bond between the
it says that the trust bond between the salesperson and the customer is the
salesperson and the customer is the foundation of a successful sale
foundation of a successful sale the higher the level of trust between
the higher the level of trust between you and your prospective customer the
you and your prospective customer the lower will be the fear of failure and
lower will be the fear of failure and the perception of risk
the perception of risk the first part of the law of trust says
the first part of the law of trust says that you build trust in a sales
that you build trust in a sales relationship by asking questions aimed
relationship by asking questions aimed at the real needs of the customer
at the real needs of the customer that your product or service can satisfy
that your product or service can satisfy many sales people don't realize that an
many sales people don't realize that an endless series of questions aimed at the
endless series of questions aimed at the customer's life and situation may be of
customer's life and situation may be of interest temporarily but these questions
interest temporarily but these questions don't build the level of trust it's only
don't build the level of trust it's only when you ask penetrating questions aimed
when you ask penetrating questions aimed at the real needs of the customer that
at the real needs of the customer that your product or service can solve that
your product or service can solve that the customer warms to you and begins to
the customer warms to you and begins to trust you and believe in you
trust you and believe in you the second part of the law of trust says
the second part of the law of trust says that
that successful salespeople listen twice as
successful salespeople listen twice as much as they talk
much as they talk they practice what is called the seventy
they practice what is called the seventy thirty rule
thirty rule they listen seventy percent or more of
they listen seventy percent or more of the time and they talk
the time and they talk thirty percent or less it's been said
thirty percent or less it's been said often that you have two ears and one
often that you have two ears and one mouth and in a sales conversation you
mouth and in a sales conversation you should use them in that proportion
should use them in that proportion the best salespeople are superb
the best salespeople are superb listeners
listeners many of them are introverts and not
many of them are introverts and not particularly gregarious are outgoing
particularly gregarious are outgoing they're also extremely effective
they're also extremely effective the third part of the law of trust says
the third part of the law of trust says that no one ever listened themselves out
that no one ever listened themselves out of a sale
of a sale in many cases if you listen intently
in many cases if you listen intently enough if you listen patiently and if
enough if you listen patiently and if you listen as though there were nothing
you listen as though there were nothing else in the world more important than
else in the world more important than the words of the customer at that
the words of the customer at that particular moment
particular moment you'll listen yourself into more sales
you'll listen yourself into more sales than you can imagine
than you can imagine the fourth part of this law
the fourth part of this law which is as important as anything that
which is as important as anything that you'll ever learn in selling is that
you'll ever learn in selling is that listening
listening builds trust
builds trust there's no better and faster way to
there's no better and faster way to build trust between two people than for
build trust between two people than for one to listen to the other
one to listen to the other this is true in all relationships you
this is true in all relationships you always like the people best who listen
always like the people best who listen to you the most attentively when you
to you the most attentively when you want or need to talk about something
want or need to talk about something that's important to you customers are
that's important to you customers are the same
the same the eighth law of selling is the law of
the eighth law of selling is the law of relationships
relationships applied to sales it says that
applied to sales it says that success in selling is determined by the
success in selling is determined by the ability of the salesperson to form a
ability of the salesperson to form a quality relationship with the customer
quality relationship with the customer doctor theodore levitt of the harvard
doctor theodore levitt of the harvard business school in his book the
business school in his book the marketing imagination explains how
marketing imagination explains how marketing and selling has changed over
marketing and selling has changed over the last few years
the last few years he points out that today in selling
he points out that today in selling because of risk and because of
because of risk and because of uncertainty in the variety of options
uncertainty in the variety of options available to the customer
available to the customer the relationship is central
the relationship is central the first part of this law says that
the first part of this law says that the customer wants a relationship first
the customer wants a relationship first before a customer will seriously
before a customer will seriously consider a complex offer of any kind the
consider a complex offer of any kind the customer wants to be sure that he can
customer wants to be sure that he can rely upon the salesperson and the
rely upon the salesperson and the company to fulfill their commitments
company to fulfill their commitments after the money has changed hands
after the money has changed hands the second part of this law says that in
the second part of this law says that in complex sales the relationship continues
complex sales the relationship continues after the sale
after the sale before the customer buys a product or
before the customer buys a product or service the is largely independent of
service the is largely independent of the sales person in the company
the sales person in the company the customer doesn't need them in any
the customer doesn't need them in any way
way however
however once the customers made a buying
once the customers made a buying decision the customer then becomes
decision the customer then becomes dependent upon the warranties and
dependent upon the warranties and assurances given by the company for the
assurances given by the company for the satisfactory use and enjoyment of the
satisfactory use and enjoyment of the product
product because the relationship continues after
because the relationship continues after the sale and often lasts as long as the
the sale and often lasts as long as the customer uses the product or service
customer uses the product or service the decision to purchase a product or
the decision to purchase a product or service means the decision to enter into
service means the decision to enter into a long-term relationship with the
a long-term relationship with the individual and the organization
individual and the organization the third part of the law of
the third part of the law of relationships in selling says that the
relationships in selling says that the relationship is more important than the
relationship is more important than the product or service
product or service customers largely view products or
customers largely view products or services as commodities available from
services as commodities available from several sources
several sources because of this the customer has to
because of this the customer has to decide among competing suppliers and the
decide among competing suppliers and the decision is almost invariably made on
decision is almost invariably made on the basis of which salesperson and
the basis of which salesperson and company the customer feels most
company the customer feels most comfortable forming a business
comfortable forming a business relationship with
relationship with because relationships are so important
because relationships are so important in selling the salesperson should tell
in selling the salesperson should tell the customer very clearly that his
the customer very clearly that his philosophy and the philosophy of the
philosophy and the philosophy of the company is to enter into a long-term
company is to enter into a long-term relationship and to maintain that
relationship and to maintain that relationship throughout the period of
relationship throughout the period of time that the customer will be using the
time that the customer will be using the product or service
product or service the most successful sales people and the
the most successful sales people and the most successful companies are those who
most successful companies are those who establish long-term relationships with
establish long-term relationships with good customers
good customers they then make every effort to maintain
they then make every effort to maintain the quality of that relationship through
the quality of that relationship through care attentiveness sensitivity
care attentiveness sensitivity dependability and fast follow-up to
dependability and fast follow-up to complaints and requests plus
complaints and requests plus excellent service and maintenance
excellent service and maintenance the ninth law of selling is the law of
the ninth law of selling is the law of friendship
friendship this is often called the friendship
this is often called the friendship factor and it says that a person will
factor and it says that a person will not buy from you until he is convinced
not buy from you until he is convinced that you are his friend and acting in
that you are his friend and acting in his best interests
his best interests the undeniable fact is that all
the undeniable fact is that all successful business relationships of any
successful business relationships of any kind are built on friendships between
kind are built on friendships between the parties
the parties a good salesperson is really an
a good salesperson is really an excellent friend maker
excellent friend maker he has an easy ability to turn strangers
he has an easy ability to turn strangers into friends wherever he goes
into friends wherever he goes he's relaxed likeable and interested in
he's relaxed likeable and interested in other people
other people other people like him and in liking him
other people like him and in liking him they want to do business with him
they want to do business with him we always prefer to do business with the
we always prefer to do business with the people we like and we're psychologically
people we like and we're psychologically constructed in such a way that we cannot
constructed in such a way that we cannot and will not buy from people that we
and will not buy from people that we don't like
don't like even if we want the product or service
even if we want the product or service the more business friendships you have
the more business friendships you have all things being equal the more
all things being equal the more successful you'll be and the more money
successful you'll be and the more money you'll earn in the field of selling
you'll earn in the field of selling the tenth law of selling is the law of
the tenth law of selling is the law of positioning which says that
positioning which says that the customer's perception of you and
the customer's perception of you and your company are his reality and
your company are his reality and determine
determine his buying behavior
his buying behavior in their excellent book called
in their excellent book called positioning of the battle for your mind
positioning of the battle for your mind authors recent trout point out that
authors recent trout point out that every product or service either has or
every product or service either has or must gain a position in the mind of the
must gain a position in the mind of the customer for that customer to be able to
customer for that customer to be able to make any kind of a buying decision on it
make any kind of a buying decision on it with proper positioning your product or
with proper positioning your product or service can be seen by the customer as
service can be seen by the customer as the generic product next to which others
the generic product next to which others are merely substitutes or duplicates
are merely substitutes or duplicates some examples of excellent positioning
some examples of excellent positioning are coca-cola kleenex and xerox
are coca-cola kleenex and xerox in each case these have become names for
in each case these have become names for both the company and the product but
both the company and the product but they're considered by most customers to
they're considered by most customers to be the product itself
be the product itself the first part of the law of positioning
the first part of the law of positioning says that
says that every element of dress
every element of dress product packaging printing and promotion
product packaging printing and promotion creates a perception of some kind
creates a perception of some kind the second part of the law of
the second part of the law of positioning says that
positioning says that top sales people position themselves as
top sales people position themselves as the preferred choice suppliers of their
the preferred choice suppliers of their products and services
products and services in many cases the customer will pay
in many cases the customer will pay substantially more for the identical
substantially more for the identical product or service for the simple reason
product or service for the simple reason that it is you who are selling it and
that it is you who are selling it and backing it up
backing it up your position in the customer's mind can
your position in the customer's mind can be so strong that no other competitor
be so strong that no other competitor can get to the customer and replace you
can get to the customer and replace you the eleventh law of selling is the law
the eleventh law of selling is the law of perspective which says that
of perspective which says that the way that you are viewed by your
the way that you are viewed by your customers determines your income
customers determines your income this law says that how you are known to
this law says that how you are known to your customers how you are thought about
your customers how you are thought about and talked about by your customers when
and talked about by your customers when you're not there
you're not there largely determines your level of income
largely determines your level of income and your success in selling
and your success in selling the first part of the law of perspective
the first part of the law of perspective says that
says that when you're viewed by the customer as
when you're viewed by the customer as working for him or her
working for him or her you'll be in the top ten percent of your
you'll be in the top ten percent of your field
field many thousands of customers who buy from
many thousands of customers who buy from the top sales people have been
the top sales people have been interviewed extensively about their
interviewed extensively about their buying habits and their reasons for
buying habits and their reasons for selecting one salesperson over another
selecting one salesperson over another the most common reason that they give
the most common reason that they give is that they feel that the salesperson
is that they feel that the salesperson really
really works for them
works for them rather than for their own company
rather than for their own company the customers feel that the salesperson
the customers feel that the salesperson cares more about their needs than about
cares more about their needs than about making a sale or satisfying the demands
making a sale or satisfying the demands of the company that pays their salary
of the company that pays their salary a very good question for you to ask
a very good question for you to ask continually is
continually is how would it be useful for me to be
how would it be useful for me to be viewed by my customers
viewed by my customers if you were to fly on the wall and one
if you were to fly on the wall and one of your customers was telling one of
of your customers was telling one of your prospects about you
your prospects about you what would you want the customer to say
what would you want the customer to say whatever it is be sure that everything
whatever it is be sure that everything that you do in your interaction with
that you do in your interaction with each customer leaves him or her mentally
each customer leaves him or her mentally prepared to say those things about you
prepared to say those things about you when you're not present
when you're not present the second part of the law of
the second part of the law of perspective says that
perspective says that top money earners in sales are viewed as
top money earners in sales are viewed as consultants
consultants helpers counselors and advisors to their
helpers counselors and advisors to their customers but not as salespeople
customers but not as salespeople another finding of the research into the
another finding of the research into the perceptions of customers is that they
perceptions of customers is that they looked upon the people that they bought
looked upon the people that they bought from as people who were dedicated to
from as people who were dedicated to helping them solve their problems or
helping them solve their problems or achieve their goals
achieve their goals the 12th law of selling is the law of
the 12th law of selling is the law of preparation which both follows from and
preparation which both follows from and precedes everything that i've talked
precedes everything that i've talked about up to now about successful selling
about up to now about successful selling this law says that
this law says that the best salespeople prepare thoroughly
the best salespeople prepare thoroughly before every call
before every call this is so simple that it's often
this is so simple that it's often overlooked
overlooked the hallmark of the true professional
the hallmark of the true professional however is thorough
however is thorough and exhaustive preparation over and over
and exhaustive preparation over and over again before every competition
again before every competition the very best sales people are those who
the very best sales people are those who work on their presentations on their
work on their presentations on their product knowledge and their materials
product knowledge and their materials repeatedly throughout their sales
repeatedly throughout their sales careers and prior to every new sales
careers and prior to every new sales contact
contact you can't imagine a top athlete who
you can't imagine a top athlete who didn't train continually before every
didn't train continually before every competition in fact the period of
competition in fact the period of training for an athlete consumes far far
training for an athlete consumes far far more time than the actual competition
more time than the actual competition itself
itself in every field of endeavor it's the most
in every field of endeavor it's the most thoroughly trained and dedicated
thoroughly trained and dedicated professionals who rise to the top
professionals who rise to the top the first part of the law of preparation
the first part of the law of preparation says that the salesperson with the best
says that the salesperson with the best knowledge of the real situation of the
knowledge of the real situation of the customer will be most likely to make the
customer will be most likely to make the sale
sale the more time you take to thoroughly
the more time you take to thoroughly understand your prospective customer and
understand your prospective customer and your prospective customers situation
your prospective customers situation the more likely it is that you'll be in
the more likely it is that you'll be in a position to sell at the critical
a position to sell at the critical moment
moment the second part of the law of
the second part of the law of preparation says that sales
preparation says that sales professionals plan their questions in
professionals plan their questions in advance
advance there's a direct relationship between
there's a direct relationship between the quality of the problem-focused
the quality of the problem-focused questions that you ask a customer
questions that you ask a customer and the likelihood of a sale taking
and the likelihood of a sale taking place
place the only way that you can assure that
the only way that you can assure that your questions are penetrating and exact
your questions are penetrating and exact is by writing them out word for word in
is by writing them out word for word in advance
advance for example ben feldman a salesman for
for example ben feldman a salesman for the new york life insurance company who
the new york life insurance company who was written up in the guinness book of
was written up in the guinness book of records as the top salesman of all time
records as the top salesman of all time used to spend two hours every single
used to spend two hours every single night reviewing and rehearsing his
night reviewing and rehearsing his materials so that he would be sharp and
materials so that he would be sharp and well prepared the next day
well prepared the next day in his famous book the feltman method
in his famous book the feltman method author andrew thompson explains that ben
author andrew thompson explains that ben feldman's success was largely due to his
feldman's success was largely due to his ability to ask the right questions at
ability to ask the right questions at the right time
the right time he found that a properly worded question
he found that a properly worded question could turn a neutral or negative
could turn a neutral or negative prospect into an interested customer
prospect into an interested customer sometimes in just a few seconds
sometimes in just a few seconds the third part of the law of preparation
the third part of the law of preparation says that
says that the salesperson with the best notes and
the salesperson with the best notes and the best preparation wins
the best preparation wins you need to think your call objectives
you need to think your call objectives through in advance of meeting the client
through in advance of meeting the client write down and itemize exactly what you
write down and itemize exactly what you hope to accomplish on each visit
hope to accomplish on each visit after the call take careful notes and
after the call take careful notes and write down everything on the same sheet
write down everything on the same sheet never rely on your memory
never rely on your memory there's a chinese saying which says
there's a chinese saying which says the palestine is stronger than the most
the palestine is stronger than the most powerful memory
powerful memory prior to every sales call no matter how
prior to every sales call no matter how many times you may have visited the same
many times you may have visited the same customer
customer take a few minutes to review the
take a few minutes to review the customer's file the customer situation
customer's file the customer situation and your own notes on what's taken place
and your own notes on what's taken place in the past
in the past the top sales people in every field
the top sales people in every field prepare exhaustively prior to selling
prepare exhaustively prior to selling prior to their presentations and prior
prior to their presentations and prior to closing
to closing they think everything through in advance
they think everything through in advance and they leave nothing to chance
and they leave nothing to chance remember it's the details that makes a
remember it's the details that makes a difference
difference finally the 13th law of selling is the
finally the 13th law of selling is the law of perverse motivation
law of perverse motivation this law says that everyone likes to buy
this law says that everyone likes to buy but no one likes to be sold
but no one likes to be sold people don't like to feel that they're
people don't like to feel that they're the recipients or the victims of a sales
the recipients or the victims of a sales presentation
presentation most customers are very independent in
most customers are very independent in their minds and they don't like the
their minds and they don't like the thought that they are being manipulated
thought that they are being manipulated or pressured or coerced into anything
or pressured or coerced into anything they like to feel as though they're
they like to feel as though they're making up their own minds based on good
making up their own minds based on good information that's been presented to
information that's been presented to them
them the first part of the law of perverse
the first part of the law of perverse motivation says simply that the best
motivation says simply that the best salesperson is perceived as a person who
salesperson is perceived as a person who helps the prospect get what he or she
helps the prospect get what he or she wants and needs
wants and needs the second part of the law of perverse
the second part of the law of perverse motivation says that top sales people
motivation says that top sales people are teachers who show their customers
are teachers who show their customers how products work to satisfy their needs
how products work to satisfy their needs if ever your customer feels even for a
if ever your customer feels even for a moment that you're trying to sell them
moment that you're trying to sell them into buying something they'll instantly
into buying something they'll instantly resist
resist as selling is something that you do to a
as selling is something that you do to a person rather than for a person
person rather than for a person and since the most important part of
and since the most important part of selling is the quality of the trust bond
selling is the quality of the trust bond that exists between you and the customer
that exists between you and the customer you can't afford to do anything that
you can't afford to do anything that threatens it
threatens it finally remember that all things are
finally remember that all things are possible to the salesperson who knows
possible to the salesperson who knows what he's doing
what he's doing believes in what he's doing and loves
believes in what he's doing and loves what he's doing
what he's doing if you're selling the right product or
if you're selling the right product or service with the right organization to
service with the right organization to the right people your future can be
the right people your future can be unlimited
unlimited [Music]
most of your possibilities for success and achievement in life will come by
and achievement in life will come by owning or working for private business
owning or working for private business organizations
organizations president calvin coolidge once said that
president calvin coolidge once said that the business of america is business
the business of america is business there are more than 18 million
there are more than 18 million businesses in the united states today
businesses in the united states today and somewhere between six hundred
and somewhere between six hundred thousand and one million new businesses
thousand and one million new businesses are being formed every year
are being formed every year these businesses run the entire gamut
these businesses run the entire gamut from the smallest sole proprietorship
from the smallest sole proprietorship working off a kitchen table to the
working off a kitchen table to the largest corporate organization employing
largest corporate organization employing hundreds of thousands of people
hundreds of thousands of people our business system is very much a part
our business system is very much a part of our way of life and your ability to
of our way of life and your ability to understand how it works can be an
understand how it works can be an essential body of information for you
essential body of information for you this knowledge can help you to be far
this knowledge can help you to be far more successful than people who never
more successful than people who never take the time to learn
take the time to learn the rate of change in businesses is
the rate of change in businesses is accelerating it's the one unavoidable
accelerating it's the one unavoidable and inevitable fact of modern business
and inevitable fact of modern business life
life between 1980 and 1990 alone
between 1980 and 1990 alone 157 companies fell off the list of the
157 companies fell off the list of the 500 largest companies in america
500 largest companies in america more than 100 additional companies were
more than 100 additional companies were either broken up merged acquired or
either broken up merged acquired or changed their major line of business
changed their major line of business when we experience that much turbulence
when we experience that much turbulence amongst the largest and most powerful
amongst the largest and most powerful corporations in the country you can
corporations in the country you can imagine the kind of turbulence that's
imagine the kind of turbulence that's being experienced amongst the millions
being experienced amongst the millions of smaller companies
of smaller companies fully eighty percent of new businesses
fully eighty percent of new businesses overall fail within the first two years
overall fail within the first two years of startup and many large established
of startup and many large established companies go bankrupt or are taken over
companies go bankrupt or are taken over by other organizations every year
by other organizations every year also many new companies succeed and many
also many new companies succeed and many larger companies grow at tremendous
larger companies grow at tremendous rates despite their size
rates despite their size there are opportunities everywhere for
there are opportunities everywhere for you to make a significant contribution
you to make a significant contribution to your organization and thereby put
to your organization and thereby put your life and your career onto the fast
your life and your career onto the fast track
track in this session you'll learn some of the
in this session you'll learn some of the laws and principles at work in business
laws and principles at work in business and how you can use them to your best
and how you can use them to your best advantage
advantage my business career began when i started
my business career began when i started selling soap for the local ymca at the
selling soap for the local ymca at the age of 10.
age of 10. from there i went on to selling
from there i went on to selling newspapers and lawn mowing services and
newspapers and lawn mowing services and christmas trees and working in a
christmas trees and working in a department store i went on to selling
department store i went on to selling office supplies from door to door and
office supplies from door to door and through selling investments in real
through selling investments in real estate and automobiles and advertising
estate and automobiles and advertising training and consulting
training and consulting i have worked in sold or managed small
i have worked in sold or managed small and large organizations over the course
and large organizations over the course of more than 25 years
of more than 25 years and i've seen both exciting successes
and i've seen both exciting successes and spectacular failures
and spectacular failures by applying some of the laws and
by applying some of the laws and principles contained in this session i
principles contained in this session i managed and operated tens of millions of
managed and operated tens of millions of dollars worth of companies products and
dollars worth of companies products and projects
projects my final job in the private sector
my final job in the private sector before turning to managing my own
before turning to managing my own business full-time was as a chief
business full-time was as a chief operating officer of a 265 million
operating officer of a 265 million dollar company with 75 million dollars
dollar company with 75 million dollars in annual sales
in annual sales i've seen many kinds of businesses from
i've seen many kinds of businesses from the most well thought out to the most
the most well thought out to the most ridiculous
ridiculous i've worked with virtually every kind of
i've worked with virtually every kind of business person from the most
business person from the most accomplished and skillful to the most
accomplished and skillful to the most foolish and self-deluded i've read
foolish and self-deluded i've read hundreds of books and thousands of
hundreds of books and thousands of articles on various aspects of business
articles on various aspects of business and business management and i still
and business management and i still believe that i'm only scratching the
believe that i'm only scratching the surface
surface nonetheless i've picked up a few
nonetheless i've picked up a few pointers that have been instrumental in
pointers that have been instrumental in enabling me to build successful
enabling me to build successful businesses of my own and to help many of
businesses of my own and to help many of my clients dramatically improve their
my clients dramatically improve their rates of growth and their market shares
rates of growth and their market shares and their profitability
and their profitability there are fourteen laws that apply
there are fourteen laws that apply specifically to any business
specifically to any business you're practicing just one of these laws
you're practicing just one of these laws in conjunction with some of the other
in conjunction with some of the other laws we've talked about where you may
laws we've talked about where you may not have in the past can make all the
not have in the past can make all the difference to your long-term success
difference to your long-term success the first law of business is the law of
the first law of business is the law of purpose as it applies to business which
purpose as it applies to business which says that
says that the purpose of a business is to create
the purpose of a business is to create and keep a customer
and keep a customer many people think that the purpose of a
many people think that the purpose of a business is to make a profit
business is to make a profit however while that may be the purpose of
however while that may be the purpose of the individual who starts or invests in
the individual who starts or invests in the business a business is really a
the business a business is really a separate entity and it has a purpose of
separate entity and it has a purpose of its own
its own in fact a good way to assess the reason
in fact a good way to assess the reason for the existence of a business is to
for the existence of a business is to imagine that the owners of the business
imagine that the owners of the business had to appear in front of a tribunal
had to appear in front of a tribunal each year and make a case to justify
each year and make a case to justify getting permission for the business to
getting permission for the business to carry on
carry on you'll see immediately that
you'll see immediately that making a profit wouldn't cut any ice in
making a profit wouldn't cut any ice in terms of the business making sufficient
terms of the business making sufficient enough contribution to justify its
enough contribution to justify its continued operation
continued operation the first part of the law of purpose
the first part of the law of purpose says that
says that profits are a measure of how well a
profits are a measure of how well a company is fulfilling its purpose
company is fulfilling its purpose since the purpose of a business is to
since the purpose of a business is to create and keep a customer
create and keep a customer how well the organization and everyone
how well the organization and everyone in the organization contributes toward
in the organization contributes toward the achievement of that purpose will
the achievement of that purpose will determine the level of profit that the
determine the level of profit that the company enjoys
company enjoys you can tell that customer creation is
you can tell that customer creation is the purpose of a business by looking at
the purpose of a business by looking at the fact that the time and attention of
the fact that the time and attention of the most important people in a
the most important people in a successful company is usually focused on
successful company is usually focused on the customers of the company
the customers of the company the financial results of the company are
the financial results of the company are simply used as a measure of how well the
simply used as a measure of how well the primary purpose is being achieved
primary purpose is being achieved the second part of the law of purpose in
the second part of the law of purpose in business says that profits are a cost of
business says that profits are a cost of doing business the cost of the future
doing business the cost of the future there are many people who are confused
there are many people who are confused about profit some of them considering a
about profit some of them considering a profit to be a mark of greed and many
profit to be a mark of greed and many nations have been literally ruined by
nations have been literally ruined by their confusion over this point
their confusion over this point profits are good
profits are good it's profits that pay for everything
it's profits that pay for everything it's profits that pay wages and salaries
it's profits that pay wages and salaries taxes investment and new products and
taxes investment and new products and processes research and development and
processes research and development and all the many constructive things that a
all the many constructive things that a company can do when it's serving its
company can do when it's serving its customers well
customers well the opposite of profit is loss and where
the opposite of profit is loss and where there is loss there are layoffs
there is loss there are layoffs reductions in economic activity and
reductions in economic activity and often the collapse of the business
often the collapse of the business where there are losses in businesses
where there are losses in businesses there's no future for the people who
there's no future for the people who work there
work there anyone who is opposed to profit
anyone who is opposed to profit is simultaneously whether they know it
is simultaneously whether they know it or not opposed to the future of all the
or not opposed to the future of all the people who depend upon that business for
people who depend upon that business for their livelihoods
their livelihoods these people can't have a future where
these people can't have a future where no profit exists
no profit exists some people feel that profits are too
some people feel that profits are too high
high over seventy year period from nineteen
over seventy year period from nineteen twenty to nineteen ninety the largest
twenty to nineteen ninety the largest companies in america have averaged
companies in america have averaged annual profits of approximately
annual profits of approximately five percent per year
five percent per year of the total expenditures of most
of the total expenditures of most companies aside from raw materials for
companies aside from raw materials for manufacture or goods for resale almost
manufacture or goods for resale almost 85 percent of all costs are wages for
85 percent of all costs are wages for the people who work there wherever a
the people who work there wherever a society has lots of profitable companies
society has lots of profitable companies it has lots of well-paying jobs and
it has lots of well-paying jobs and great opportunities for the future
great opportunities for the future on the other hand the most impoverished
on the other hand the most impoverished and depressed countries in the world are
and depressed countries in the world are those where the profit motive has been
those where the profit motive has been denigrated to the point where nobody
denigrated to the point where nobody makes very much of anything
makes very much of anything in those countries the opportunities and
in those countries the opportunities and possibilities for the average person are
possibilities for the average person are almost
almost non-existent the second law of business
non-existent the second law of business is the law of organization which says
is the law of organization which says that a business organization is merely a
that a business organization is merely a group of people brought together for the
group of people brought together for the common purpose of creating and keeping
common purpose of creating and keeping customers
customers a business organization begins to form
a business organization begins to form when the jobs associated with serving
when the jobs associated with serving customers become too great for a single
customers become too great for a single person
person new jobs are then created and new
new jobs are then created and new activities are engaged in
activities are engaged in this growth process continues as long as
this growth process continues as long as the increase in people increases the
the increase in people increases the number of customers that are satisfied
number of customers that are satisfied profitably by that organization
profitably by that organization the third law of business is the law of
the third law of business is the law of customer satisfaction which says that
customer satisfaction which says that the customer is always right
the customer is always right the very best companies in america are
the very best companies in america are built on this philosophy
built on this philosophy as tom peters said in his book in search
as tom peters said in his book in search of excellence the very best companies
of excellence the very best companies and the very best people in those
and the very best people in those companies have an obsession with
companies have an obsession with customer service
customer service worldwide the most successful companies
worldwide the most successful companies are those for whom the customer is king
are those for whom the customer is king or queen
or queen and customer satisfaction is the driving
and customer satisfaction is the driving force of all their activities
force of all their activities the first comment on the law of customer
the first comment on the law of customer satisfaction says that
satisfaction says that all customer satisfaction comes from
all customer satisfaction comes from people
people you can't satisfy people with machines
you can't satisfy people with machines or with pieces of paper of any kind
or with pieces of paper of any kind people are intensely emotional and
people are intensely emotional and therefore they can only be pleased in
therefore they can only be pleased in their buying activities when dealing
their buying activities when dealing with other people
with other people for this reason the most successful
for this reason the most successful companies have very clear customer
companies have very clear customer policies and everyone within those
policies and everyone within those organizations is committed to treating
organizations is committed to treating the customers well
the customers well for example
for example the walt disney corporation hires
the walt disney corporation hires thousands of college students to work at
thousands of college students to work at the disney theme parks in the summer
the disney theme parks in the summer time
time these students are hired in the middle
these students are hired in the middle of may and train for four to six weeks
of may and train for four to six weeks in their functions
in their functions they then work for approximately eight
they then work for approximately eight weeks of the summer season when children
weeks of the summer season when children are out of school
are out of school when the disney people are asked why it
when the disney people are asked why it is that the students receive such
is that the students receive such rigorous training for four to six solid
rigorous training for four to six solid weeks to only work for eight weeks
weeks to only work for eight weeks before going back to school
before going back to school their reply reveals a lot about the
their reply reveals a lot about the disney philosophy toward customers
disney philosophy toward customers the disney managers explain that the
the disney managers explain that the students are drilled in their jobs to
students are drilled in their jobs to the point where they can do them
the point where they can do them virtually without thinking
virtually without thinking the aim of this is to allow the students
the aim of this is to allow the students to pay more attention to their guests as
to pay more attention to their guests as they call the visitors to the theme
they call the visitors to the theme parks
parks because the students have memorized
because the students have memorized their jobs completely they are more
their jobs completely they are more conscious of the small things that they
conscious of the small things that they can do to make people happy that they've
can do to make people happy that they've chosen to come to a disney theme park
chosen to come to a disney theme park the second comment on the law of
the second comment on the law of customer satisfaction is that
customer satisfaction is that the best companies invariably have the
the best companies invariably have the best people
best people the best companies learned a long time
the best companies learned a long time ago that ninety five percent of their
ago that ninety five percent of their success will be determined by the people
success will be determined by the people they select
they select they therefore take a long time to hire
they therefore take a long time to hire people and they're very careful in both
people and they're very careful in both interviewing and in checking references
interviewing and in checking references once a person's been hired if it's the
once a person's been hired if it's the wrong person
wrong person he or she can cause a great deal of harm
he or she can cause a great deal of harm before he or she is encouraged to go
before he or she is encouraged to go somewhere else
somewhere else as you evolve into management you learn
as you evolve into management you learn that your biggest successes will come
that your biggest successes will come from having chosen the right people for
from having chosen the right people for the key positions under you
the key positions under you the third comment on the law of customer
the third comment on the law of customer satisfaction is that the key role of
satisfaction is that the key role of management is to achieve the maximum
management is to achieve the maximum return on investment in human resources
return on investment in human resources towards satisfying customers
towards satisfying customers any manager has two choices with regard
any manager has two choices with regard to any job
to any job the manager can do the job himself or
the manager can do the job himself or the manager can get someone else to do
the manager can get someone else to do it
it the job of the manager is to act as a
the job of the manager is to act as a multiplier and to get things done
multiplier and to get things done through others
through others rather than to do it himself or herself
rather than to do it himself or herself one final observation on customer
one final observation on customer satisfaction
satisfaction the staff of a company will always treat
the staff of a company will always treat the customers the way the management
the customers the way the management treats them
treats them whenever you're treated especially well
whenever you're treated especially well by people in any store or restaurant you
by people in any store or restaurant you know that that place has a good manager
know that that place has a good manager who treats the staff well
who treats the staff well whenever you're treated poorly for any
whenever you're treated poorly for any reason
reason you know that the person you're dealing
you know that the person you're dealing with is usually treating you this way in
with is usually treating you this way in an attempt to get back at a manager who
an attempt to get back at a manager who they feel is treating them badly
they feel is treating them badly the fourth law of business is the law of
the fourth law of business is the law of the customer
the customer it says that the customer always acts to
it says that the customer always acts to satisfy his or her interests by seeking
satisfy his or her interests by seeking the very most at the very lowest
the very most at the very lowest possible price
possible price customers are economic in that they seek
customers are economic in that they seek to maximize their resources and to
to maximize their resources and to minimize their costs or outlays
minimize their costs or outlays customers follow the law of expediency
customers follow the law of expediency in that they attempt to get the things
in that they attempt to get the things they want the fastest and easiest way
they want the fastest and easiest way possible right now with no concern for
possible right now with no concern for secondary or long-term consequences
secondary or long-term consequences now this is a fact of business life it's
now this is a fact of business life it's not a problem
not a problem in business you're continually faced
in business you're continually faced with both facts and problems
with both facts and problems facts are inevitable and unavoidable
facts are inevitable and unavoidable parts of life they're things that you
parts of life they're things that you accept and work around they're like
accept and work around they're like immovable objects
immovable objects a problem on the other hand is something
a problem on the other hand is something that you can solve
that you can solve a problem is something that's amenable
a problem is something that's amenable to your intelligence and imagination
to your intelligence and imagination it's very important in business that you
it's very important in business that you separate facts from problems and that
separate facts from problems and that you don't become upset or anxious over
you don't become upset or anxious over something about which you can do nothing
something about which you can do nothing before you get concerned about something
before you get concerned about something that has or has not happened ask
that has or has not happened ask yourself
yourself is this a problem or is this a fact
is this a problem or is this a fact the first part of the law of the
the first part of the law of the customer says that customers are both
customer says that customers are both demanding and ruthless
demanding and ruthless they'll reward highly those companies
they'll reward highly those companies that serve them best and allow to fail
that serve them best and allow to fail those companies that serve them poorly
those companies that serve them poorly it isn't that customers don't care about
it isn't that customers don't care about a particular business it's just that
a particular business it's just that customers care about themselves and
customers care about themselves and their own satisfactions even more than
their own satisfactions even more than they care about the success or failure
they care about the success or failure of an enterprise
of an enterprise whenever you see a business fail and
whenever you see a business fail and shut down
shut down you see a business entity where the
you see a business entity where the owners were either unable or unwilling
owners were either unable or unwilling to adjust their actions to serve enough
to adjust their actions to serve enough customers at prices that allow them to
customers at prices that allow them to carry on
carry on the customers just silently walked away
the customers just silently walked away told their friends and never came back
told their friends and never came back the second part of the law of the
the second part of the law of the customer says that
customer says that customers always behave rationally in
customers always behave rationally in pursuing the path of least resistance to
pursuing the path of least resistance to satisfy their most pressing needs
satisfy their most pressing needs from the point of view of the customer
from the point of view of the customer every action makes perfect sense
every action makes perfect sense all her behavior is aimed at achieving
all her behavior is aimed at achieving greater personal satisfaction toward
greater personal satisfaction toward improving her position
improving her position the customer is very smart and always
the customer is very smart and always knows what is in his or her best
knows what is in his or her best interests
interests the customer's decision is always
the customer's decision is always rational the customer is always right
rational the customer is always right and when you go into business you put
and when you go into business you put your entire financial future at the
your entire financial future at the mercy of satisfying the customer every
mercy of satisfying the customer every single day
single day from the moment you open your doors the
from the moment you open your doors the customer determines what you will sell
customer determines what you will sell how much of it you will sell at what
how much of it you will sell at what price you will sell it and how much
price you will sell it and how much money you will make
money you will make it's only by catering to the customers
it's only by catering to the customers whims and fancies that you'll be able to
whims and fancies that you'll be able to survive and grow in business
survive and grow in business the third part of the law of the
the third part of the law of the customer says that
customer says that proper business planning always begins
proper business planning always begins with the customer
with the customer as the central focus of attention and
as the central focus of attention and discussion
discussion there's a dangerous tendency for people
there's a dangerous tendency for people within companies to lose touch with the
within companies to lose touch with the real thoughts feelings and needs of
real thoughts feelings and needs of their customers
their customers they tend to talk to themselves too much
they tend to talk to themselves too much and what's worse they listen to each
and what's worse they listen to each other and they begin to become divorced
other and they begin to become divorced from reality
from reality if you're in business and if what you do
if you're in business and if what you do affects the customer you should mentally
affects the customer you should mentally erect a statue of the customer and place
erect a statue of the customer and place it in the middle of the table when you
it in the middle of the table when you discuss what you're going to do with
discuss what you're going to do with regard to your products or services
regard to your products or services always ask yourself
always ask yourself if the customer sitting here listening
if the customer sitting here listening to us
to us what would the customer be thinking
what would the customer be thinking what would the customer say
what would the customer say would the customer approve or disapprove
would the customer approve or disapprove of what we're planning to do by the way
of what we're planning to do by the way the subject of the customer is very
the subject of the customer is very important some people within
important some people within organizations have the mistaken idea
organizations have the mistaken idea that they have no customers because they
that they have no customers because they don't interact with the person who buys
don't interact with the person who buys the product or service from the company
the product or service from the company this can be a fatal mistake to success
this can be a fatal mistake to success in your work life
in your work life the fact is that everyone has a customer
the fact is that everyone has a customer and many of you have several customers
and many of you have several customers your primary customer is the person who
your primary customer is the person who determines your success in your job by
determines your success in your job by this definition unless you're the boss
this definition unless you're the boss your number one customer is your boss
your number one customer is your boss it's whether or not you satisfy your
it's whether or not you satisfy your boss that determines how far and how
boss that determines how far and how fast you move ahead
fast you move ahead if you're a manager and you have people
if you're a manager and you have people working under you your staff are also
working under you your staff are also your customers
your customers it's how you satisfy them that will
it's how you satisfy them that will determine how they satisfy the people
determine how they satisfy the people who must use what your department
who must use what your department produces if you work in accounting or
produces if you work in accounting or administration
administration your customers are the people who must
your customers are the people who must use what you produce whether financial
use what you produce whether financial statements computer printouts or other
statements computer printouts or other information
information everyone has a customer
everyone has a customer everyone is in the business of customer
everyone is in the business of customer satisfaction
satisfaction everyone's level of success in life is
everyone's level of success in life is determined by how well they satisfy the
determined by how well they satisfy the most important customers they have
most important customers they have the fifth law of business is the law of
the fifth law of business is the law of quality which states that the customer
quality which states that the customer demands the very highest quality for the
demands the very highest quality for the very lowest price
very lowest price this seems simple enough except that
this seems simple enough except that many companies try to violate this law
many companies try to violate this law on their way to the bankruptcy courts
on their way to the bankruptcy courts the customer is very smart the customer
the customer is very smart the customer will always act to satisfy the greatest
will always act to satisfy the greatest number of possible needs in any
number of possible needs in any particular buying decision
particular buying decision it's only companies that cater to the
it's only companies that cater to the customers incessant need for ever higher
customers incessant need for ever higher levels of quality that are successful in
levels of quality that are successful in the marketplace
the marketplace for example in 1989 both the toyota
for example in 1989 both the toyota lexus and the nissan infiniti were
lexus and the nissan infiniti were released for sale in the united states
released for sale in the united states both companies advertise these cars as
both companies advertise these cars as the cars of the future with every luxury
the cars of the future with every luxury feature of the more expensive european
feature of the more expensive european cars but at prices that were ten
cars but at prices that were ten thousand twenty thousand or even thirty
thousand twenty thousand or even thirty thousand dollars cheaper both companies
thousand dollars cheaper both companies committed themselves to building the
committed themselves to building the finest quality automobiles in their
finest quality automobiles in their class in america
class in america in 1991 the jd power survey of customer
in 1991 the jd power survey of customer satisfaction came up with its results on
satisfaction came up with its results on all 557 models of automobile sold in the
all 557 models of automobile sold in the united states
united states according to their rankings the lexus
according to their rankings the lexus and the infinity were tied for first
and the infinity were tied for first place in quality amongst all cars sold
place in quality amongst all cars sold in the country
in the country as a result of this quality ranking and
as a result of this quality ranking and even before it came out because of their
even before it came out because of their commitment to quality the sales of these
commitment to quality the sales of these cars had taken off into the hundreds of
cars had taken off into the hundreds of millions of dollars
millions of dollars the first part of the law of quality
the first part of the law of quality says that
says that quality is what the customer says it is
quality is what the customer says it is and is willing to pay for
and is willing to pay for only the customer can define quality
only the customer can define quality sometimes the customer can't even define
sometimes the customer can't even define it clearly but the customer will vote
it clearly but the customer will vote for quality by the way he or she spends
for quality by the way he or she spends his or her dollars
his or her dollars philip crosby in his book quality
philip crosby in his book quality without tears wrote that quality is
without tears wrote that quality is fairly easy to define
fairly easy to define the quality of a product can be measured
the quality of a product can be measured by what percentage of the time it does
by what percentage of the time it does what it is sold to do and continues to
what it is sold to do and continues to do it
do it in other words you can measure the
in other words you can measure the quality of a watch by how long it
quality of a watch by how long it continues to tell perfect time
continues to tell perfect time if it does so one hundred percent of the
if it does so one hundred percent of the time for the indefinite future
time for the indefinite future then it has a one hundred percent
then it has a one hundred percent quality rating
quality rating if you buy a car the quality rating of
if you buy a car the quality rating of that car is how long it continues to
that car is how long it continues to give you trouble free service without
give you trouble free service without needing repairs aside from those
needing repairs aside from those specified at the time of purchase
specified at the time of purchase if the car runs trouble free for one
if the car runs trouble free for one hundred percent of the time
hundred percent of the time then it has a one hundred percent
then it has a one hundred percent quality rating
quality rating unfortunately it's not uncommon for
unfortunately it's not uncommon for fully twenty five percent of products
fully twenty five percent of products manufactured in some plants today to
manufactured in some plants today to have to be reworked and rebuilt
have to be reworked and rebuilt right at the factory because of quality
right at the factory because of quality defects
defects philip crosby's other book quality is
philip crosby's other book quality is free
free points out that manufacturing a high
points out that manufacturing a high quality item without defects actually
quality item without defects actually saves money and boosts profit both in
saves money and boosts profit both in the short term and in the long term in
the short term and in the long term in the short term it's quality that creates
the short term it's quality that creates customers and in the long term it's
customers and in the long term it's quality that keeps customers
quality that keeps customers the second part of the law of quality
the second part of the law of quality says that quality refers both to the
says that quality refers both to the product or service and to the way that
product or service and to the way that it is sold delivered and maintained
it is sold delivered and maintained quality actually refers to all of the
quality actually refers to all of the activities associated with the purchase
activities associated with the purchase ownership and possession of the item
ownership and possession of the item for example
for example prices in a quality restaurant are not
prices in a quality restaurant are not based only on the fact that it's good
based only on the fact that it's good food that's served on the plate
food that's served on the plate a high-class restaurant one that
a high-class restaurant one that commands above average prices and which
commands above average prices and which can earn above average profits
can earn above average profits also serves the food in an atmosphere of
also serves the food in an atmosphere of comfort and enjoyment that people are
comfort and enjoyment that people are willing to pay more for
willing to pay more for even a simple product can be sold and
even a simple product can be sold and served with cheerfulness and courtesy
served with cheerfulness and courtesy thereby increasing its perceived value
thereby increasing its perceived value the customer defines the total
the customer defines the total experience both product and service as
experience both product and service as all being part of the impression of
all being part of the impression of quality
quality the third part of the law of quality is
the third part of the law of quality is that companies are financially
that companies are financially successful in direct proportion to their
successful in direct proportion to their quality ranking
quality ranking as customers perceive it
as customers perceive it what this means is that if a market
what this means is that if a market researcher were to go into the
researcher were to go into the marketplace and conduct an honest
marketplace and conduct an honest objective survey amongst customers and
objective survey amongst customers and other companies
other companies it could come up with a ranking for your
it could come up with a ranking for your company in terms of how it compares to
company in terms of how it compares to your competitors
your competitors for example
for example suppose there are ten companies doing
suppose there are ten companies doing the same thing in the same market area
the same thing in the same market area a market survey could indicate which of
a market survey could indicate which of these companies is perceived to be the
these companies is perceived to be the number one very best company in that
number one very best company in that industry in that marketplace
industry in that marketplace the survey could also determine which
the survey could also determine which company would rank as number two number
company would rank as number two number three and so on
three and so on what the evidence shows is that the
what the evidence shows is that the companies that are perceived to be the
companies that are perceived to be the highest quality companies in any
highest quality companies in any marketplace are also the most profitable
marketplace are also the most profitable companies in that marketplace
companies in that marketplace this is because of the deep need that
this is because of the deep need that people have for security
people have for security whenever a person has to make a choice
whenever a person has to make a choice between a higher priced product and a
between a higher priced product and a lower price product
lower price product if he can possibly afford he will choose
if he can possibly afford he will choose the higher price product because a
the higher price product because a higher price is associated with greater
higher price is associated with greater quality
quality the perception of better quality reduces
the perception of better quality reduces the feeling of uncertainty or risk in
the feeling of uncertainty or risk in making the buying decision
making the buying decision that's why it's said if you can afford
that's why it's said if you can afford to buy quality you can't afford not to
to buy quality you can't afford not to there's almost always a direct
there's almost always a direct relationship between the amount that you
relationship between the amount that you pay and the quality of the product or
pay and the quality of the product or service that you receive
service that you receive you very seldom get good quality at a
you very seldom get good quality at a low price
low price you never get something for nothing you
you never get something for nothing you always get what you pay for
always get what you pay for in a competitive society you can pretty
in a competitive society you can pretty much know for sure that the higher price
much know for sure that the higher price will assure you a higher level of
will assure you a higher level of quality and a lower level of risk
quality and a lower level of risk it gives customers a greater security to
it gives customers a greater security to purchase a high priced high quality
purchase a high priced high quality product than they would have if they
product than they would have if they saved a little money and bought a lower
saved a little money and bought a lower quality item
quality item there's a saying by thomas ruskin
there's a saying by thomas ruskin the bitterness of poor quality is
the bitterness of poor quality is remembered
remembered long after the pleasure of low price has
long after the pleasure of low price has been forgotten
been forgotten wherever you are in the quality rankings
wherever you are in the quality rankings and almost everyone knows where they are
and almost everyone knows where they are even without a survey you must commit
even without a survey you must commit yourself and your company to the number
yourself and your company to the number one position
one position you must commit to becoming the very
you must commit to becoming the very best in your chosen field
best in your chosen field aim for quality leadership
aim for quality leadership not only will it animate and excite
not only will it animate and excite everybody in the organization to be
everybody in the organization to be committed to such a worthwhile goal but
committed to such a worthwhile goal but it will reflect in the profits that flow
it will reflect in the profits that flow to your bottom line the highest quality
to your bottom line the highest quality company is the company that earns the
company is the company that earns the greatest profits and represents the
greatest profits and represents the greatest opportunities for the future
the most successful companies under all economic conditions are those that
economic conditions are those that continually innovate and bring out new
continually innovate and bring out new products and new services even when
products and new services even when business is slow
business is slow the sixth law of business is the law of
the sixth law of business is the law of obsolescence which states that whatever
obsolescence which states that whatever is is already becoming obsolete
is is already becoming obsolete the law of obsolescence says that
the law of obsolescence says that products services advertisements
products services advertisements marketing strategies and every other
marketing strategies and every other plan or policy in an organization except
plan or policy in an organization except perhaps for the bedrock philosophy upon
perhaps for the bedrock philosophy upon which the company was formed
which the company was formed is becoming obsolete with rapid speed
is becoming obsolete with rapid speed this means that you and your company
this means that you and your company must be fast on your feet and prepared
must be fast on your feet and prepared to accept continual change as an
to accept continual change as an unavoidable fact of life
unavoidable fact of life the first part of the law of
the first part of the law of obsolescence says that tomorrow will be
obsolescence says that tomorrow will be different from today
different from today the most frustrated people in the world
the most frustrated people in the world of business are those who are trying to
of business are those who are trying to hold back the tide by failing to adapt
hold back the tide by failing to adapt or by adapting too slowly to the
or by adapting too slowly to the competitive onslaught that's taking
competitive onslaught that's taking place all around them
place all around them the second part of this law says that
the second part of this law says that continuous innovation and improvement
continuous innovation and improvement are essential to survival
are essential to survival they are not luxuries or activities to
they are not luxuries or activities to be engaged in when there's sufficient
be engaged in when there's sufficient time and money every company must have
time and money every company must have top quality people who are absolutely
top quality people who are absolutely dedicated full time to developing the
dedicated full time to developing the products and services of tomorrow
products and services of tomorrow if a company doesn't do this it will end
if a company doesn't do this it will end up having no tomorrow
up having no tomorrow it will simply be passed by by
it will simply be passed by by competitors who are eager to take the
competitors who are eager to take the business
business there's a direct relationship between
there's a direct relationship between the quantity of new ideas the company
the quantity of new ideas the company comes up with and the ultimate financial
comes up with and the ultimate financial success of the business so
success of the business so innovate innovate innovate
innovate innovate innovate the third part of the law of
the third part of the law of obsolescence says that the best way to
obsolescence says that the best way to predict the future is to create it
predict the future is to create it be like walt disney who when he was
be like walt disney who when he was asked if he was worried about people
asked if he was worried about people stealing his ideas replied by saying
stealing his ideas replied by saying we'll come up with new ideas faster than
we'll come up with new ideas faster than anyone can possibly steal them
anyone can possibly steal them this should be your philosophy as well
this should be your philosophy as well you should always have more ideas for
you should always have more ideas for good products and services to bring to
good products and services to bring to the market than you possibly have
the market than you possibly have resources to develop them all
resources to develop them all you should always be forced to select
you should always be forced to select among a variety of possibilities to
among a variety of possibilities to choose the ones that have the greatest
choose the ones that have the greatest market potential at that moment
market potential at that moment by the way a person working for a
by the way a person working for a company can often see a need for a
company can often see a need for a product or service that can
product or service that can revolutionize both the company and that
revolutionize both the company and that individual's life
individual's life for example a scientist at 3m
for example a scientist at 3m corporation in minnesota who sung in the
corporation in minnesota who sung in the local church choir was having a tough
local church choir was having a tough time getting a bookmark to stick in the
time getting a bookmark to stick in the pages of his hymnbook
pages of his hymnbook he experimented with a variety of glues
he experimented with a variety of glues looking for an adhesive that would
looking for an adhesive that would enable a piece of paper to stick on and
enable a piece of paper to stick on and come off several times without leaving a
come off several times without leaving a mark or losing its stickiness
mark or losing its stickiness he came up with what we call today
he came up with what we call today post-it notes
post-it notes the company now dominates the market for
the company now dominates the market for stick-on notes and sell several hundred
stick-on notes and sell several hundred million dollars worth of these notes
million dollars worth of these notes each year
each year and the gentleman who came up with the
and the gentleman who came up with the idea
idea has now become a wealthy man
has now become a wealthy man the seventh law of business is the law
the seventh law of business is the law of innovation which is closely tied to
of innovation which is closely tied to the law of obsolescence
the law of obsolescence it states that all breakthroughs in
it states that all breakthroughs in business come from innovation
business come from innovation from offering something better cheaper
from offering something better cheaper faster newer or more efficient in the
faster newer or more efficient in the current marketplace
current marketplace in peter drucker's marvelous book
in peter drucker's marvelous book innovation and entrepreneurship
innovation and entrepreneurship he talks about the seven major sources
he talks about the seven major sources of innovation and he gives a variety of
of innovation and he gives a variety of ideas on how to make innovation a way of
ideas on how to make innovation a way of life both for yourself and for your
life both for yourself and for your corporation
corporation remember all you need is one good idea
remember all you need is one good idea either within your company or on your
either within your company or on your own to start you on the high road to
own to start you on the high road to great business success
great business success the eighth law of business is the law of
the eighth law of business is the law of critical success factors
critical success factors it's based on research summarized in a
it's based on research summarized in a harvard business review article in
harvard business review article in nineteen eighty two
nineteen eighty two this law says that every business has
this law says that every business has approximately five to seven critical
approximately five to seven critical success factors the performance of which
success factors the performance of which determine the success or failure of the
determine the success or failure of the enterprise
enterprise critical success factors are like the
critical success factors are like the vital functions of the body such as
vital functions of the body such as heart rate respiratory rate blood
heart rate respiratory rate blood pressure brain wave activity and so on
pressure brain wave activity and so on they are all indicators of life and
they are all indicators of life and vitality and the absence of any one of
vitality and the absence of any one of them even for a few moments signals the
them even for a few moments signals the death of the organism
death of the organism companies also have critical success
companies also have critical success factors many of which they have in
factors many of which they have in common some of which are individual to
common some of which are individual to each organization
each organization some of the most common critical success
some of the most common critical success factors could be leadership
factors could be leadership product quality
product quality marketing and sales
marketing and sales manufacturing distribution and finance
manufacturing distribution and finance and accounting
and accounting excellent performance is necessary in
excellent performance is necessary in every one of these areas for a company
every one of these areas for a company to enjoy excellent results
to enjoy excellent results poor performance or non-performance in
poor performance or non-performance in any one of these areas can actually
any one of these areas can actually threaten the life of the enterprise
threaten the life of the enterprise for example according to dun and
for example according to dun and bradstreet 46 percent of business
bradstreet 46 percent of business failures in the united states are
failures in the united states are triggered by a drop off in sales and
triggered by a drop off in sales and marketing and sales revenue
marketing and sales revenue this then is a critical success factor
this then is a critical success factor or a vital function of the business
or a vital function of the business the first part of this law says that
the first part of this law says that every individual also has critical
every individual also has critical success factors the performance of which
success factors the performance of which determines his or her success
determines his or her success each person including yourself has a set
each person including yourself has a set of core skills or core competencies that
of core skills or core competencies that he uses like tools to do his job
he uses like tools to do his job a weakness or a failure in any one of a
a weakness or a failure in any one of a person's core skills can render that
person's core skills can render that person incapable of doing his job
person incapable of doing his job correctly
correctly for example
for example problem solving and decision making is a
problem solving and decision making is a critical function of every manager and
critical function of every manager and every executive
every executive if a person is physically ill or going
if a person is physically ill or going through an extremely emotional period in
through an extremely emotional period in his life that person may not be capable
his life that person may not be capable of solving problems intelligently or
of solving problems intelligently or making good decisions
making good decisions everyone who then depends upon that
everyone who then depends upon that person for these abilities can have
person for these abilities can have their own performance curtailed an
their own performance curtailed an entire department can grind slowly to a
entire department can grind slowly to a halt because of a malfunction in a
halt because of a malfunction in a critical success factor of a single
critical success factor of a single person
person a single weakness in one of the critical
a single weakness in one of the critical success factors of selling can cause a
success factors of selling can cause a person to sell only a small part of
person to sell only a small part of which he is capable
which he is capable in many companies the sales force has
in many companies the sales force has been poorly trained or not trained at
been poorly trained or not trained at all and the senior management is beside
all and the senior management is beside themselves wondering why they're not
themselves wondering why they're not getting the kind of sales that they need
getting the kind of sales that they need in order for the company to survive and
in order for the company to survive and grow
grow sometimes a little sales training in the
sometimes a little sales training in the areas of critical success factors can
areas of critical success factors can double or even triple the average sales
double or even triple the average sales of a particular organization
of a particular organization to determine your critical success
to determine your critical success factors you can ask yourself two sets of
factors you can ask yourself two sets of questions
questions you should repeat them every day as long
you should repeat them every day as long as you are in the world of work
as you are in the world of work the first of these sets of questions is
the first of these sets of questions is why am i
why am i on the payroll
on the payroll what have i been hired to accomplish
what have i been hired to accomplish what results
what results am i responsible for
am i responsible for the second set of questions you need to
the second set of questions you need to ask yourself is
ask yourself is what can i and only i do
what can i and only i do that if done well will make a real
that if done well will make a real difference to my company
difference to my company what is the one thing that i and only i
what is the one thing that i and only i can do that can really help my company
can do that can really help my company that can make an extraordinary
that can make an extraordinary difference in my results
difference in my results these two questions
these two questions why am i on the payroll and what can i
why am i on the payroll and what can i and only i do that if done well will
and only i do that if done well will make a real difference should be asked
make a real difference should be asked of every single person in the
of every single person in the organization on a regular basis so that
organization on a regular basis so that everyone is absolutely clear about the
everyone is absolutely clear about the answers
answers this is the one way to assure that each
this is the one way to assure that each person is performing at the necessary
person is performing at the necessary levels in their critical success factors
levels in their critical success factors the ninth law of business is the law of
the ninth law of business is the law of the market
the market this states that the market is where
this states that the market is where buyers and sellers of products and
buyers and sellers of products and services meet to set prices and
services meet to set prices and determine the allocations of money labor
determine the allocations of money labor natural resources and all other factors
natural resources and all other factors of production
of production now the market is a fictitious place but
now the market is a fictitious place but it represents all of the millions of
it represents all of the millions of buying and selling decisions that take
buying and selling decisions that take place every day at every level of
place every day at every level of society and in every area of private and
society and in every area of private and public enterprise
public enterprise it's the synthesis of all these
it's the synthesis of all these decisions by millions of customers
decisions by millions of customers acting out the law of expediency that
acting out the law of expediency that determines the prices of virtually
determines the prices of virtually everything that's not government
everything that's not government controlled in our society
controlled in our society the first part of the law of the market
the first part of the law of the market says that according to the efficient
says that according to the efficient market thesis in a free market resources
market thesis in a free market resources will be allocated with complete
will be allocated with complete efficiency and prices will accurately
efficiency and prices will accurately reflect supply and demand to that moment
reflect supply and demand to that moment this efficient market thesis is usually
this efficient market thesis is usually applied to the stock market and it says
applied to the stock market and it says that all stock prices at the close of
that all stock prices at the close of each day will accurately reflect all the
each day will accurately reflect all the information that is known about the
information that is known about the present and future prospects of the
present and future prospects of the company represented by the shares
company represented by the shares this thesis also suggests that knowledge
this thesis also suggests that knowledge of changing prices will spread rapidly
of changing prices will spread rapidly to the people whose economic interests
to the people whose economic interests might be affected
might be affected the second part of the law of the market
the second part of the law of the market says that the free market is the most
says that the free market is the most efficient way for millions of people to
efficient way for millions of people to have their needs met at the lowest
have their needs met at the lowest possible cost
possible cost the free market exists automatically in
the free market exists automatically in the absence of government controls on
the absence of government controls on wages prices or economic activities
wages prices or economic activities the freer the market the more vibrant
the freer the market the more vibrant the economy and the greater amount of
the economy and the greater amount of wealth and opportunity that's created
wealth and opportunity that's created in hong kong for example the highest tax
in hong kong for example the highest tax rate on income is 15 percent and there
rate on income is 15 percent and there are virtually no government regulations
are virtually no government regulations aside from traffic and police protection
aside from traffic and police protection hong kong is a tiny area with no natural
hong kong is a tiny area with no natural resources and with approximately five
resources and with approximately five million people living in a small space
million people living in a small space nevertheless
nevertheless in the absence of government
in the absence of government interference it is one of the most
interference it is one of the most buoyant economies in the world and it's
buoyant economies in the world and it's produced countless millionaires and
produced countless millionaires and several billionaires
several billionaires even today hong kong is actually
even today hong kong is actually suffering a labor shortage because of
suffering a labor shortage because of its level of economic activity
its level of economic activity the third part of the law of the market
the third part of the law of the market says that the freer the market is from
says that the freer the market is from government interference the greater will
government interference the greater will be the supply and the variety of goods
be the supply and the variety of goods and services and the greater will be the
and services and the greater will be the prosperity of the people
prosperity of the people every attempt to interfere with the
every attempt to interfere with the freedom of the marketplace is done for a
freedom of the marketplace is done for a reason that sounds good the law of
reason that sounds good the law of duality
duality but the real reason is always that it
but the real reason is always that it benefits special interests and penalizes
benefits special interests and penalizes the customer by forcing the customer to
the customer by forcing the customer to pay more for a product or service than
pay more for a product or service than he or she would have if the market was
he or she would have if the market was free
free to put it another way interference in
to put it another way interference in the marketplace never reduces prices for
the marketplace never reduces prices for anyone on any product or service at any
anyone on any product or service at any time
time the tenth law of business is the law of
the tenth law of business is the law of specialization which is closely tied to
specialization which is closely tied to the law of the market it says that to
the law of the market it says that to succeed in a competitive marketplace a
succeed in a competitive marketplace a product or service must be specialized
product or service must be specialized and excellent at satisfying a clearly
and excellent at satisfying a clearly defined need of the customer
defined need of the customer it must be clear what the product is
it must be clear what the product is designed to do
designed to do and who the product is designed to do it
and who the product is designed to do it for
for the law of specialization also says that
the law of specialization also says that companies fail when they no longer
companies fail when they no longer specialize or serve a sufficient number
specialize or serve a sufficient number of customers in a cost efficient way
of customers in a cost efficient way specialization is the starting point of
specialization is the starting point of successful marketing it must be made
successful marketing it must be made clear what it is you are offering and
clear what it is you are offering and for whom
for whom the 11th law of business is the law of
the 11th law of business is the law of differentiation which states that a
differentiation which states that a product must have an area of uniqueness
product must have an area of uniqueness that makes it stand out from its
that makes it stand out from its competitors in some way if it's to
competitors in some way if it's to succeed in the marketplace
succeed in the marketplace it cannot be a metoo product
it cannot be a metoo product it has to have special strengths or
it has to have special strengths or qualities that make it different and
qualities that make it different and better than any of the other products or
better than any of the other products or services which can be used as a
services which can be used as a substitute for it
substitute for it the first part of the law of
the first part of the law of differentiation says that the
differentiation says that the determination of a unique selling
determination of a unique selling proposition
proposition is the beginning of all successful
is the beginning of all successful advertising and sales
advertising and sales a company should be able to summarize
a company should be able to summarize what makes its product or service unique
what makes its product or service unique and different in 25 words or less
and different in 25 words or less for example
for example ivory soap was famous for many years for
ivory soap was famous for many years for its simple advertisement which said 99
its simple advertisement which said 99 and 44 100 percent pure
and 44 100 percent pure ivory followed up with the advertisement
ivory followed up with the advertisement it floats
it floats volkswagen when competing against the
volkswagen when competing against the large american cars came up with an
large american cars came up with an advertising line emphasizing its unique
advertising line emphasizing its unique selling proposition which said
selling proposition which said volkswagen it makes your house look
volkswagen it makes your house look bigger
bigger the very best marketing advertising and
the very best marketing advertising and selling campaigns are built around a
selling campaigns are built around a unique selling proposition that can be
unique selling proposition that can be communicated in a meaningful way to the
communicated in a meaningful way to the prospective customer
prospective customer the second part of the law of
the second part of the law of differentiation says that to survive and
differentiation says that to survive and thrive in the marketplace
thrive in the marketplace a product or service must have a
a product or service must have a competitive advantage
competitive advantage something that makes it superior to
something that makes it superior to competing products and services
competing products and services the determination of the competitive
the determination of the competitive advantage of the product or service
advantage of the product or service is perhaps the most important single
is perhaps the most important single marketing and selling decision made by a
marketing and selling decision made by a company or organization
company or organization whether it's a national newspaper like
whether it's a national newspaper like usa today or a candidate for political
usa today or a candidate for political office the advertisers must create a
office the advertisers must create a meaningful competitive advantage that
meaningful competitive advantage that gives the prospective customer a good
gives the prospective customer a good reason to buy that product rather than
reason to buy that product rather than buying something else
buying something else jack welch of general electric has said
jack welch of general electric has said that his philosophy is to be either
that his philosophy is to be either number one or number two in every market
number one or number two in every market area in which general electric competes
area in which general electric competes and he goes on to say
and he goes on to say if you don't have competitive advantage
if you don't have competitive advantage don't compete
don't compete so a good question is what is your
so a good question is what is your competitive advantage
competitive advantage in what way or ways is your product or
in what way or ways is your product or service better or superior to that of
service better or superior to that of your competitors
your competitors if you don't have a competitive
if you don't have a competitive advantage what could it be
advantage what could it be what should it be
what should it be without a competitive advantage the
without a competitive advantage the product or service is doomed in the
product or service is doomed in the marketplace
marketplace the twelfth law of business is the law
the twelfth law of business is the law of segmentation which says that
of segmentation which says that companies must target specific customer
companies must target specific customer groups or market segments if they are to
groups or market segments if they are to achieve significant sales
achieve significant sales we are rapidly reaching the end of the
we are rapidly reaching the end of the mass market
mass market today the most successful companies are
today the most successful companies are those which have been able to identify
those which have been able to identify specific segments of the marketplace for
specific segments of the marketplace for whom they design individualized products
whom they design individualized products and services to satisfy special groups
and services to satisfy special groups of needs and tastes
of needs and tastes one of the reasons that the ford mustang
one of the reasons that the ford mustang was so successful was because it was the
was so successful was because it was the first car that could be customized with
first car that could be customized with so many different colors and accessories
so many different colors and accessories that almost every single mustang was
that almost every single mustang was unique and different
unique and different this satisfied the individuals craving
this satisfied the individuals craving to own an automobile that stood out
to own an automobile that stood out rather than one that was lost in the
rather than one that was lost in the crowd
crowd the first part of the law of
the first part of the law of segmentation in business is that
segmentation in business is that many companies fail because they're
many companies fail because they're targeting the wrong market with the
targeting the wrong market with the wrong product in the wrong way
wrong product in the wrong way many companies start off targeting their
many companies start off targeting their advertising and sales at a particular
advertising and sales at a particular market segment only to find that the
market segment only to find that the products are being purchased by a
products are being purchased by a different market segment altogether
different market segment altogether light pickups were originally designed
light pickups were originally designed for construction work and hauling small
for construction work and hauling small quantities of materials around however
quantities of materials around however they became extremely popular with young
they became extremely popular with young people as sports vehicles for going to
people as sports vehicles for going to the beach in the mountains
the beach in the mountains for many years the german beer lowenbrau
for many years the german beer lowenbrau a high priced import tried to compete
a high priced import tried to compete with american beers such as budweiser
with american beers such as budweiser and miller
and miller lowenbrau tried every conceivable form
lowenbrau tried every conceivable form of advertising and they were still
of advertising and they were still unable to break into markets which were
unable to break into markets which were tied up by the big breweries
tied up by the big breweries finally they changed their marketing
finally they changed their marketing strategy and began
strategy and began targeting men and women with higher
targeting men and women with higher incomes
incomes the first advertisement they came out
the first advertisement they came out with with this new strategy
with with this new strategy changed the whole history of imported
changed the whole history of imported beer in the united states
beer in the united states it simply said
it simply said when you run out of champagne
when you run out of champagne order lowenbrow
order lowenbrow by positioning themselves against
by positioning themselves against champagne
champagne rather than against lower priced beer
rather than against lower priced beer they created a perception that imported
they created a perception that imported beer was something to be drunk by people
beer was something to be drunk by people who could afford only the best
who could afford only the best the second part of the law of
the second part of the law of segmentation says that the ideal market
segmentation says that the ideal market segment contains those customers for
segment contains those customers for whom the product's competitive advantage
whom the product's competitive advantage satisfies their most pressing needs
satisfies their most pressing needs the whole purpose of market research is
the whole purpose of market research is to answer the question
to answer the question who
who who
who is your ideal customer
is your ideal customer why does the customer buy
why does the customer buy why does the customer refrain from
why does the customer refrain from buying
buying why does the customer buy from your
why does the customer buy from your competitor
competitor the more accurate you are about the
the more accurate you are about the customer you're trying to create and
customer you're trying to create and keep the more focused will be your
keep the more focused will be your marketing efforts and the more likely
marketing efforts and the more likely your company will be successful in the
your company will be successful in the marketplace
marketplace the 13th law of business is the law of
the 13th law of business is the law of concentration
concentration it states that
it states that market success comes from concentrating
market success comes from concentrating single-mindedly on selling to those
single-mindedly on selling to those customers for whom the product's area of
customers for whom the product's area of differentiation is the most valuable and
differentiation is the most valuable and important
important to use the examples of lexus and
to use the examples of lexus and infinity
infinity these two cars compete in a specific
these two cars compete in a specific market niche or segment
market niche or segment and their marketing efforts are
and their marketing efforts are concentrated on selling to those men and
concentrated on selling to those men and women who can afford and will pay for a
women who can afford and will pay for a luxury car in the thirty five thousand
luxury car in the thirty five thousand to forty five thousand dollar price
to forty five thousand dollar price range
range these are generally well paid upscale
these are generally well paid upscale college educated white collar
college educated white collar professionals
professionals these are men and women who admire the
these are men and women who admire the bmw and the mercedes benz but for whom
bmw and the mercedes benz but for whom these cars are just out of their price
these cars are just out of their price range
range the car manufacturers know that the
the car manufacturers know that the further down the price curve they can go
further down the price curve they can go the greater the number of potential
the greater the number of potential customers who can buy their product
customers who can buy their product while bmw and mercedes fight it out for
while bmw and mercedes fight it out for the customers who can pay
the customers who can pay fifty to seventy five thousand dollars
fifty to seventy five thousand dollars for a car
for a car lexus and infinity have decided to come
lexus and infinity have decided to come in below cars like jaguar and position
in below cars like jaguar and position themselves in the same area as the
themselves in the same area as the highest price american cars
highest price american cars and their strategy is working for them
and their strategy is working for them remarkably well
remarkably well the first part of the law of
the first part of the law of concentration says that
concentration says that one of the best high profit strategies
one of the best high profit strategies is to dominate a specific market niche
is to dominate a specific market niche with the best product available for
with the best product available for those customers in that niche
those customers in that niche one example of dominating a specific
one example of dominating a specific market niche with a high quality product
market niche with a high quality product is the strategy pursued by the cross pin
is the strategy pursued by the cross pin company
company cross pins have managed to position
cross pins have managed to position themselves in the minds of american
themselves in the minds of american business people as the premier high
business people as the premier high quality american business pen
quality american business pen they have pins that range from black all
they have pins that range from black all the way up to 18 karat all gold
the way up to 18 karat all gold no matter how much parker or mont blanc
no matter how much parker or mont blanc pens attempt to make inroads in the
pens attempt to make inroads in the business market the cross pin is
business market the cross pin is considered worldwide to be the quality
considered worldwide to be the quality pin for that particular market niche
pin for that particular market niche and it has made the cross pen company
and it has made the cross pen company one of the most successful and
one of the most successful and profitable small companies in the world
profitable small companies in the world the second part of the law of
the second part of the law of concentration says that concentration on
concentration says that concentration on high profit market segments with high
high profit market segments with high profit products gives the highest return
profit products gives the highest return on sales return on investment and return
on sales return on investment and return on equity
on equity this principle says that the most
this principle says that the most profitable companies in america are
profitable companies in america are those companies selling high profit
those companies selling high profit products in high profit markets american
products in high profit markets american car companies make their largest profits
car companies make their largest profits on cars such as the chrysler imperial
on cars such as the chrysler imperial the ford lincoln continental and the
the ford lincoln continental and the cadillac by general motors
cadillac by general motors the companies that manufacture the very
the companies that manufacture the very best highest quality most expensive
best highest quality most expensive products invariably earn the highest
products invariably earn the highest possible profits on the sales of those
possible profits on the sales of those products
products rolex watch company is another example
rolex watch company is another example of this
of this the 14th law of business is the law of
the 14th law of business is the law of excellence which says that the market
excellence which says that the market always pays excellent rewards for
always pays excellent rewards for excellent performance excellent products
excellent performance excellent products and excellent services
and excellent services the first part of the law of excellence
the first part of the law of excellence says that the market pays average
says that the market pays average rewards for average performance and
rewards for average performance and below average rewards for below average
below average rewards for below average performance
performance the market is a just taskmaster
the market is a just taskmaster it is always fair it is always equitable
it is always fair it is always equitable it always reflects the true expressed
it always reflects the true expressed intentions of the customers
intentions of the customers it always rewards those who serve it
it always rewards those who serve it with the goods and services it wants at
with the goods and services it wants at prices it's willing to pay
prices it's willing to pay and it always punishes those companies
and it always punishes those companies who refuse to do so by simply declining
who refuse to do so by simply declining to buy their offerings
to buy their offerings the key to your earning excellent
the key to your earning excellent rewards in your career is to become
rewards in your career is to become excellent at performing your critical
excellent at performing your critical success functions in satisfying your
success functions in satisfying your most important customers
most important customers the keys to business success have always
the keys to business success have always been the same
been the same a thousand books have been written and
a thousand books have been written and countless articles have been published
countless articles have been published but they all eventually come down to
but they all eventually come down to what i call the basic five
what i call the basic five first
first the product or service must be ideally
the product or service must be ideally suited to the existing market and to
suited to the existing market and to what people want and need and are
what people want and need and are willing to pay for
willing to pay for products that are not ideally suited to
products that are not ideally suited to the existing market must change quickly
the existing market must change quickly or run the risk of disappearing
or run the risk of disappearing second there must be a company-wide
second there must be a company-wide focus on marketing sales and revenue
focus on marketing sales and revenue generation
generation the most important energies of the most
the most important energies of the most talented people in the company must be
talented people in the company must be centered on the customer
centered on the customer and on selling more to ever larger
and on selling more to ever larger numbers of customers
numbers of customers the failure to do this is the number one
the failure to do this is the number one cause of business collapse in any
cause of business collapse in any economy
economy third there must be efficient internal
third there must be efficient internal systems of bookkeeping accounting
systems of bookkeeping accounting inventory management and cost control
inventory management and cost control losing control of internal costs and
losing control of internal costs and internal operations is the number two
internal operations is the number two reason for business failure
reason for business failure fourth
fourth there must be a clear sense of direction
there must be a clear sense of direction and a high level of synergy and teamwork
and a high level of synergy and teamwork among the managers and staff in the
among the managers and staff in the organization
organization the company should function like a
the company should function like a well-oiled machine with a place for
well-oiled machine with a place for everyone and everyone in their place
everyone and everyone in their place performing at their best
performing at their best and fifth the company should never stop
and fifth the company should never stop learning growing innovating and
learning growing innovating and improving
improving the japanese call this process kaizen
the japanese call this process kaizen edward deming the father of quality is
edward deming the father of quality is convinced that continuous training and
convinced that continuous training and upgrading at all levels of the company
upgrading at all levels of the company is the key to achieving meaningful
is the key to achieving meaningful competitive advantage and to business
competitive advantage and to business success the american free enterprise
success the american free enterprise system where you and i and anyone else
system where you and i and anyone else has the freedom to enter the marketplace
has the freedom to enter the marketplace to attempt to serve customers with goods
to attempt to serve customers with goods and services in better ways or at
and services in better ways or at cheaper prices than anyone else
cheaper prices than anyone else is the finest system ever evolved for
is the finest system ever evolved for the satisfaction of needs and the
the satisfaction of needs and the creation of opportunity
creation of opportunity you can take your place in this system
you can take your place in this system by offering a product or service that
by offering a product or service that people want and are willing to pay for
people want and are willing to pay for by practicing these laws of business you
by practicing these laws of business you can build a successful company that
can build a successful company that brings you all the rewards and
brings you all the rewards and satisfactions you desire in life
satisfactions you desire in life [Music]
we live in a world governed by laws and principles many of which we know in full
principles many of which we know in full and many of which we only know in part
and many of which we only know in part earlier in this session i said that the
earlier in this session i said that the laws of cause and effect action and
laws of cause and effect action and reaction sowing and reaping rule the
reaction sowing and reaping rule the world and that there are no accidents
world and that there are no accidents success or failure happen for specific
success or failure happen for specific reasons there are causes for every
reasons there are causes for every effect even if we don't know exactly
effect even if we don't know exactly what those causes are
what those causes are and we have to assume on the basis of
and we have to assume on the basis of our experience and intuition that these
our experience and intuition that these laws are largely true in that they have
laws are largely true in that they have high predictive value
high predictive value you can pretty much determine what's
you can pretty much determine what's going to happen in any situation by
going to happen in any situation by applying the laws and principles that
applying the laws and principles that i've discussed when a person and his
i've discussed when a person and his activities are in harmony with these
activities are in harmony with these laws he can be largely assured of
laws he can be largely assured of success in whatever he attempts
success in whatever he attempts however
however if anyone tries to achieve anything in
if anyone tries to achieve anything in violation of these laws failure is
violation of these laws failure is likely to follow
likely to follow this brings us to the conclusion that
this brings us to the conclusion that luck is not an accident either
luck is not an accident either it's also subject to the law of cause
it's also subject to the law of cause and effect and to many other laws as
and effect and to many other laws as well
well luck is largely predictable
luck is largely predictable even if not specifically so and it can
even if not specifically so and it can be increased in your life if you
be increased in your life if you understand it better
understand it better you can in effect become a very lucky
you can in effect become a very lucky person
person luck seems to be mentioned and
luck seems to be mentioned and associated with almost every great
associated with almost every great success
success people are always claiming to have been
people are always claiming to have been lucky or being accused of being lucky
lucky or being accused of being lucky when they achieve something out of the
when they achieve something out of the ordinary
ordinary however when athletes win great
however when athletes win great competitions or musicians rise to the
competitions or musicians rise to the top of their fields and make large sums
top of their fields and make large sums of money
of money or when a craftsman builds a fine piece
or when a craftsman builds a fine piece of furniture or a house
of furniture or a house or a doctor achieves a brilliant medical
or a doctor achieves a brilliant medical success or a lawyer achieves a great
success or a lawyer achieves a great legal victory
legal victory the word luck
the word luck is seldom if ever used
is seldom if ever used why is this so
why is this so the answer is of course that we
the answer is of course that we attributed these successes to visible
attributed these successes to visible predictable activities especially to
predictable activities especially to hard work preparation and full
hard work preparation and full utilization of the individual's natural
utilization of the individual's natural talents
talents we ascribe success in these competitive
we ascribe success in these competitive arenas to the education experience
arenas to the education experience training and application of the
training and application of the individual but we seldom accuse the
individual but we seldom accuse the person of having merely been lucky
person of having merely been lucky luck is a word that people usually use
luck is a word that people usually use to describe things that happen that they
to describe things that happen that they don't understand and can't explain
don't understand and can't explain you like everyone else have a strong
you like everyone else have a strong need to make sense of your life and what
need to make sense of your life and what is going on around you
is going on around you psychologists call this a need for a
psychologists call this a need for a sense of coherence or an understanding
sense of coherence or an understanding of how things hang together
of how things hang together when this sense of coherence is
when this sense of coherence is threatened by things that seem to happen
threatened by things that seem to happen by chance either positive or negative
by chance either positive or negative we reassert mental order and peace of
we reassert mental order and peace of mind by
mind by writing it off to luck of some kind
writing it off to luck of some kind once you can say
once you can say he or she was just lucky or i just got a
he or she was just lucky or i just got a lucky break
lucky break it gives you a sense of comfort and
it gives you a sense of comfort and security
security and enables you to stop thinking about
and enables you to stop thinking about how and why a particular thing happened
how and why a particular thing happened even though it might have been a
even though it might have been a remarkable coincidence
remarkable coincidence interestingly enough successful people
interestingly enough successful people have a tendency to both feel lucky and
have a tendency to both feel lucky and to be lucky and they often attribute
to be lucky and they often attribute their successes to luck
their successes to luck sometimes successful people say this to
sometimes successful people say this to avoid the envy attached to high
avoid the envy attached to high achievement they claimed that they were
achievement they claimed that they were just lucky so that they appear humble
just lucky so that they appear humble and ordinary in the eyes of others
and ordinary in the eyes of others unsuccessful people on the other hand
unsuccessful people on the other hand attribute much of the success of others
attribute much of the success of others to their being lucky rather than to
to their being lucky rather than to their being talented
their being talented at the same time they blame most of
at the same time they blame most of their own failures on bad luck as though
their own failures on bad luck as though the law of cause and effect had somehow
the law of cause and effect had somehow been suspended in their cases thereby
been suspended in their cases thereby making them the unfortunate and
making them the unfortunate and undeserving victims of chance
undeserving victims of chance deep in their hearts most successful
deep in their hearts most successful people attribute their achievements to
people attribute their achievements to hard work far beyond the ordinary
hard work far beyond the ordinary they say things like the harder i work
they say things like the harder i work the luckier i get they believe that they
the luckier i get they believe that they have earned their success and that they
have earned their success and that they deserve the occasional lucky break that
deserve the occasional lucky break that seems to pop up and propel them forward
seems to pop up and propel them forward far faster than the ordinary
far faster than the ordinary the fact is your luck can be managed and
the fact is your luck can be managed and increased by applying certain mental and
increased by applying certain mental and physical laws that apply to luck in your
physical laws that apply to luck in your own life
own life what you're about to learn about luck
what you're about to learn about luck and success
and success could
could change your future
change your future there are 12 laws of luck which in
there are 12 laws of luck which in conjunction with the other laws you've
conjunction with the other laws you've learned in this program can help you to
learned in this program can help you to accomplish more in a shorter period of
accomplish more in a shorter period of time
time than perhaps you ever thought possible
than perhaps you ever thought possible the first law of luck is the law of
the first law of luck is the law of probability
probability this law says that there is a
this law says that there is a mathematical probability of the
mathematical probability of the occurrence of any event which can be
occurrence of any event which can be deduced with considerable accuracy from
deduced with considerable accuracy from observation measurement and experience
observation measurement and experience i personally have taken graduate courses
i personally have taken graduate courses in probability theory and statistics
in probability theory and statistics there's an entire school of mathematics
there's an entire school of mathematics in what is sometimes called game theory
in what is sometimes called game theory that measures the probabilities of a
that measures the probabilities of a particular event occurring out of a
particular event occurring out of a particular number or sequence of events
particular number or sequence of events for example when you toss a coin it will
for example when you toss a coin it will come down heads fifty percent of the
come down heads fifty percent of the time and it will come down tails fifty
time and it will come down tails fifty percent of the time
percent of the time if you toss the coin ten times or one
if you toss the coin ten times or one thousand times
thousand times there's still a fifty-fifty probability
there's still a fifty-fifty probability of the coin coming down heads or tails
of the coin coming down heads or tails the probabilities simply don't change
the probabilities simply don't change although it can't be predicted what will
although it can't be predicted what will happen on each individual coin toss
happen on each individual coin toss in the nineteen fifties the likelihood
in the nineteen fifties the likelihood of dying in a plane crash in the united
of dying in a plane crash in the united states was approximately one in one
states was approximately one in one million flights
million flights with the dramatic increases in air
with the dramatic increases in air safety that have taken place in the last
safety that have taken place in the last three decades the likelihood of your
three decades the likelihood of your dying in a plane crash in the united
dying in a plane crash in the united states is now one in 11 million flights
states is now one in 11 million flights we still can't predict which airplane
we still can't predict which airplane will crash but we know that the
will crash but we know that the likelihood of your being injured or
likelihood of your being injured or killed in a plane crash is extremely low
killed in a plane crash is extremely low almost equivalent to the likelihood of
almost equivalent to the likelihood of your winning a state lottery or being
your winning a state lottery or being struck by lightning
struck by lightning gambling casinos are designed and built
gambling casinos are designed and built on certain probabilities of the house
on certain probabilities of the house winning at each game
winning at each game blackjack for example is the game that
blackjack for example is the game that offers the greatest probabilities in
offers the greatest probabilities in favor of the gambler about 45 percent
favor of the gambler about 45 percent this means that in blackjack the house
this means that in blackjack the house will win 55 percent of the time
will win 55 percent of the time now gambling casinos never go out of
now gambling casinos never go out of business because of losses
business because of losses but countless gamblers go home broke
but countless gamblers go home broke because of this small percentage
because of this small percentage difference in probabilities
difference in probabilities the first part of the law of probability
the first part of the law of probability simply says that you can increase the
simply says that you can increase the probability of an event occurring by
probability of an event occurring by increasing the number of events
increasing the number of events this is so obvious as to not even
this is so obvious as to not even require discussion but many people
require discussion but many people overlook it
overlook it for example the president
for example the president of amaco petroleum a company with a long
of amaco petroleum a company with a long record of finding more gas and oil than
record of finding more gas and oil than competing petroleum companies
competing petroleum companies was once asked why it was that his
was once asked why it was that his company was so much more successful than
company was so much more successful than his competitors
his competitors he replied by pointing out that all the
he replied by pointing out that all the companies have access to the same data
companies have access to the same data and use pretty much the same geologists
and use pretty much the same geologists and geophysicists and oil engineers with
and geophysicists and oil engineers with pretty much the same abilities
pretty much the same abilities the simple reason why amico petroleum
the simple reason why amico petroleum was more successful than its rivals was
was more successful than its rivals was because he said we drill more holes
because he said we drill more holes there was no miracle
there was no miracle they simply increased the quantity of
they simply increased the quantity of wells they drilled and thereby increased
wells they drilled and thereby increased the quantity of proven and probable gas
the quantity of proven and probable gas and oil reserves that they discovered
and oil reserves that they discovered the second part of the law of
the second part of the law of probability says that
probability says that probabilities increase with persistence
probabilities increase with persistence the longer you persist in a string of
the longer you persist in a string of failure experiences or negative
failure experiences or negative experiences or events
experiences or events the more likely it is that you're going
the more likely it is that you're going to get lucky
to get lucky there's a poem entitled don't quit which
there's a poem entitled don't quit which has the lines
has the lines and you never can tell how close you are
and you never can tell how close you are it may be near when it seems so far
it may be near when it seems so far the most successful people are those who
the most successful people are those who seem to persist in the face of all
seem to persist in the face of all adversity long after the average person
adversity long after the average person would have given up and sure enough by
would have given up and sure enough by the law of probability things start to
the law of probability things start to go their way
go their way they get their lucky break
they get their lucky break the third part of this law says that you
the third part of this law says that you are your own umpire in the ball game of
are your own umpire in the ball game of life
life what this means simply is that you are
what this means simply is that you are the batter at the plate swinging at each
the batter at the plate swinging at each pitch in the ball game of life
pitch in the ball game of life in a normal baseball game if you swing
in a normal baseball game if you swing and miss three times you'd be out
and miss three times you'd be out however in your own personal ball game
however in your own personal ball game you are also your own umpire and only
you are also your own umpire and only you can call yourself out
you can call yourself out you can continue to swing as long and as
you can continue to swing as long and as hard as you want and you're never out
hard as you want and you're never out until you decide to be out
until you decide to be out the second law of luck is the law of
the second law of luck is the law of clarity which says that the clearer you
clarity which says that the clearer you are about what you want and what you're
are about what you want and what you're willing to do to get it
willing to do to get it the greater is the probability that
the greater is the probability that you'll experience luck
you'll experience luck it's been said that the two keys to
it's been said that the two keys to great success in america are first
great success in america are first being clear about what you want and
being clear about what you want and second being clear about the price
second being clear about the price you're going to have to pay to get it
you're going to have to pay to get it well personally i'm a strong believer in
well personally i'm a strong believer in the subject of clarity i believe that
the subject of clarity i believe that people are happy or unhappy to the
people are happy or unhappy to the degree to which they're clear about the
degree to which they're clear about the key issues of their lives
key issues of their lives most problems seem to come from lack of
most problems seem to come from lack of clarity the first part of the law of
clarity the first part of the law of clarity says that
clarity says that intensely desired goals activate your
intensely desired goals activate your reticular cortex and make you aware of
reticular cortex and make you aware of opportunities you might have overlooked
opportunities you might have overlooked if you decide to lose weight you begin
if you decide to lose weight you begin to see all kinds of articles and
to see all kinds of articles and information on diet exercise and weight
information on diet exercise and weight loss
loss if you decide to earn more money you
if you decide to earn more money you begin to notice all kinds of
begin to notice all kinds of possibilities for reducing your costs
possibilities for reducing your costs and increasing your income the second
and increasing your income the second part of the law of clarity says that the
part of the law of clarity says that the more you want something the more alert
more you want something the more alert you will be to your chance to achieve it
you will be to your chance to achieve it when it comes
when it comes the law of clarity is closely aligned
the law of clarity is closely aligned with intensity of desire and purpose
with intensity of desire and purpose both of which make you much more
both of which make you much more sensitive to the chance word or remark
sensitive to the chance word or remark that may help you
that may help you for example
for example some years ago a friend of mine
some years ago a friend of mine graduated from university in a
graduated from university in a medium-sized town in one of the western
medium-sized town in one of the western states he got the idea that if he were
states he got the idea that if he were to go to a place such as new york he
to go to a place such as new york he might discover a new business
might discover a new business opportunity that he could bring back
opportunity that he could bring back within that hadn't yet been introduced
within that hadn't yet been introduced into his city
into his city against the advice of others he
against the advice of others he purchased a plane ticket and flew east
purchased a plane ticket and flew east during the four hour flight he got into
during the four hour flight he got into a conversation with a man sitting next
a conversation with a man sitting next to him
to him it turned out that this man was a
it turned out that this man was a business development officer for a large
business development officer for a large franchise organization who had been out
franchise organization who had been out to his city looking for a franchisee
to his city looking for a franchisee he'd been unsuccessful and was on his
he'd been unsuccessful and was on his way home
way home the franchise turned out to be orange
the franchise turned out to be orange julius
julius when my friend asked him about his
when my friend asked him about his business and he got the details he
business and he got the details he became so excited that he signed the
became so excited that he signed the franchise agreement right there on the
franchise agreement right there on the plane when they got off the plane
plane when they got off the plane together my friend turned around and
together my friend turned around and went back home on the next return flight
went back home on the next return flight as a result of that chance meeting which
as a result of that chance meeting which took place because he was so clear about
took place because he was so clear about what he was looking for he went on to
what he was looking for he went on to rent the last space in a new shopping
rent the last space in a new shopping center
center and subsequently built an extremely
and subsequently built an extremely successful business
successful business this business generated the cash flow
this business generated the cash flow that financed a series of other business
that financed a series of other business investments which made him a millionaire
investments which made him a millionaire by the time he was twenty five
by the time he was twenty five now there are countless stories like
now there are countless stories like this that have their roots in clarity
this that have their roots in clarity purpose and desire
purpose and desire they all increase the incidence of luck
they all increase the incidence of luck the third law of luck is the law of
the third law of luck is the law of attraction which i've mentioned in
attraction which i've mentioned in several sessions and which is very much
several sessions and which is very much at work in the area of luck
at work in the area of luck to repeat it says that you inevitably
to repeat it says that you inevitably attract into your life the people ideas
attract into your life the people ideas circumstances and resource that
circumstances and resource that harmonize with your dominant thoughts
harmonize with your dominant thoughts because of this law whatever you can
because of this law whatever you can hold in your mind on a continuing basis
hold in your mind on a continuing basis you can have
you can have the only limitations on your successes
the only limitations on your successes are the limitations you place on your
are the limitations you place on your own thinking
own thinking the first part of the law of attraction
the first part of the law of attraction as it applies to luck
as it applies to luck simply says that what you want wants you
simply says that what you want wants you when you begin to think about something
when you begin to think about something that you intensely desire
that you intensely desire you magnetize this thought and you begin
you magnetize this thought and you begin to send out waves of mental energy that
to send out waves of mental energy that connect with resources that are in
connect with resources that are in harmony with your thinking
harmony with your thinking these resources then tend to be
these resources then tend to be attracted to you
attracted to you when you're clear about what you want
when you're clear about what you want the second part of the law of attraction
the second part of the law of attraction says that what you are moving toward is
says that what you are moving toward is moving toward you
moving toward you by the law of accelerating acceleration
by the law of accelerating acceleration when you begin to think repeatedly about
when you begin to think repeatedly about something that you want you begin almost
something that you want you begin almost imperceptibly to move toward it and
imperceptibly to move toward it and wherever it is it begins to move toward
wherever it is it begins to move toward you
you this is one of the secrets of great
this is one of the secrets of great riches in america
riches in america the fourth law of luck is the law of
the fourth law of luck is the law of expectations which i mentioned earlier
expectations which i mentioned earlier in a different context
in a different context with regard to luck it says that you can
with regard to luck it says that you can increase the amount of luck in your life
increase the amount of luck in your life by continually expecting lucky things to
by continually expecting lucky things to happen
happen you know that there's something
you know that there's something remarkable about your attitude of
remarkable about your attitude of positive self-expectancy it actually
positive self-expectancy it actually causes things to happen in a manner
causes things to happen in a manner consistent with what you expect
consistent with what you expect it's called the self-fulfilling prophecy
it's called the self-fulfilling prophecy and it's one of the most dependable and
and it's one of the most dependable and predictable of all mental phenomena
predictable of all mental phenomena you will find that lucky and successful
you will find that lucky and successful people are always saying things like
people are always saying things like don't worry something will turn up
don't worry something will turn up no matter what kind of problems they're
no matter what kind of problems they're faced with
faced with in fact an attitude of calmness clarity
in fact an attitude of calmness clarity and self-assurance seems to create a
and self-assurance seems to create a mental climate that triggers positive
mental climate that triggers positive events happening into your life
events happening into your life the first part of the law of expectation
the first part of the law of expectation says that you should look for the
says that you should look for the opportunity in every situation
opportunity in every situation you've heard it said that the word
you've heard it said that the word crisis is written in chinese in two
crisis is written in chinese in two characters one of which means danger and
characters one of which means danger and the other of which means opportunity
the other of which means opportunity a crisis can therefore be looked upon as
a crisis can therefore be looked upon as a dangerous opportunity
a dangerous opportunity something which if properly approached
something which if properly approached can be turned to your advantage and can
can be turned to your advantage and can enable you to leap ahead rapidly
enable you to leap ahead rapidly for example many people lose their jobs
for example many people lose their jobs through layoffs mergers and acquisitions
through layoffs mergers and acquisitions and even being fired
and even being fired the loss of a job is often devastating
the loss of a job is often devastating and some people take many months to
and some people take many months to recover from it and get back into the
recover from it and get back into the workforce
workforce however almost every great success in
however almost every great success in america was preceded by the unexpected
america was preceded by the unexpected loss of a job
loss of a job many self-made millionaires in america
many self-made millionaires in america in looking back are extremely thankful
in looking back are extremely thankful that their previous job came to an end
that their previous job came to an end they recognized that if they'd stayed
they recognized that if they'd stayed there they would never have achieved the
there they would never have achieved the success that they have
success that they have they were able to turn a crisis into an
they were able to turn a crisis into an opportunity by looking for the good in
opportunity by looking for the good in this situation
this situation and so can you
and so can you the second part of the law of
the second part of the law of expectation says that whenever god sends
expectation says that whenever god sends you a gift he wraps it up in a problem
you a gift he wraps it up in a problem this comes from dr norman vincent peale
this comes from dr norman vincent peale he says that the bigger the gift that
he says that the bigger the gift that you're being sent the bigger the problem
you're being sent the bigger the problem it will be wrapped up in
it will be wrapped up in the low performer tends to focus on the
the low performer tends to focus on the problem while the high performer tends
problem while the high performer tends to look past and through the problem for
to look past and through the problem for the gift or opportunity that it might
the gift or opportunity that it might contain
contain and the remarkable thing is
and the remarkable thing is whatever you look for that's what you'll
whatever you look for that's what you'll find
find if you look for the good or the gift or
if you look for the good or the gift or the opportunity you certainly find it
the opportunity you certainly find it the third part of the law of
the third part of the law of expectations is that you get what you
expectations is that you get what you expect if you expected long enough
expect if you expected long enough nature seems to put each of us to a test
nature seems to put each of us to a test to see just how serious we really are
to see just how serious we really are about achieving the kind of success that
about achieving the kind of success that we say we want
we say we want and the test is one of adversity and
and the test is one of adversity and disappointment
disappointment the great majority of people collapse
the great majority of people collapse when things go wrong for them for any
when things go wrong for them for any period of time
period of time they demonstrate by their actions that
they demonstrate by their actions that they don't really believe the success
they don't really believe the success they want is possible for them
they want is possible for them the small minority of high achievers
the small minority of high achievers however are those who continue to expect
however are those who continue to expect the best and continue to expect that
the best and continue to expect that something good will come out of every
something good will come out of every difficulty
difficulty and in the long run
and in the long run they're seldom disappointed
they're seldom disappointed the fifth law of luck is the law of
the fifth law of luck is the law of opportunity which says that your
opportunity which says that your greatest possibilities will come from
greatest possibilities will come from the most common situations
the most common situations many people have a tendency to look for
many people have a tendency to look for their opportunities to come from some
their opportunities to come from some great distance or as the result of some
great distance or as the result of some remarkable stroke of good fortune
remarkable stroke of good fortune the fact is that most of your
the fact is that most of your opportunities will lie
opportunities will lie very closely at hand
very closely at hand they're usually contained in your own
they're usually contained in your own background and experience your own
background and experience your own education and training your own business
education and training your own business or industry
or industry sometimes the opportunities you're
sometimes the opportunities you're seeking are within your current
seeking are within your current interests and hobbies
interests and hobbies they'll almost invariably utilize your
they'll almost invariably utilize your existing talents and abilities
existing talents and abilities very often your opportunity comes by
very often your opportunity comes by looking around you at the simplest
looking around you at the simplest things that are happening in your work
things that are happening in your work the first part of the law of opportunity
the first part of the law of opportunity says that
says that opportunities usually come dressed in
opportunities usually come dressed in work clothes
work clothes an opportunity seldom comes fully
an opportunity seldom comes fully developed usually it looks like a lot of
developed usually it looks like a lot of hard hard work with no guarantee of
hard hard work with no guarantee of success at the end
success at the end sometimes a person will be offered a new
sometimes a person will be offered a new job or a second income opportunity
job or a second income opportunity he might turn it down because he says
he might turn it down because he says he's waiting for his big chance and he
he's waiting for his big chance and he doesn't want to get his hands tied up
doesn't want to get his hands tied up often someone will offer a person a book
often someone will offer a person a book or an audio cassette program and the
or an audio cassette program and the person will refuse to read it or listen
person will refuse to read it or listen to it without realizing that it could
to it without realizing that it could contain the key ideas that could set him
contain the key ideas that could set him or her on the road to riches
or her on the road to riches the second part of the law of
the second part of the law of opportunity says that a wise person will
opportunity says that a wise person will create more opportunities than he finds
create more opportunities than he finds better yet the smart person will seize
better yet the smart person will seize the opportunities by applying himself to
the opportunities by applying himself to normal everyday events
normal everyday events and will create opportunities that no
and will create opportunities that no one else sees
one else sees one of the richest men in america came
one of the richest men in america came up with the idea that there was oil in
up with the idea that there was oil in large pools in texas and oklahoma
large pools in texas and oklahoma several thousand feet below the surface
several thousand feet below the surface and several thousand feet below the
and several thousand feet below the shallower oil fields that had already
shallower oil fields that had already been tapped out
been tapped out he bought up oil leases inexpensively
he bought up oil leases inexpensively and invested every dollar he could beg
and invested every dollar he could beg or borrow into his idea
or borrow into his idea he turned out to be right and he struck
he turned out to be right and he struck huge quantities of oil by drilling
huge quantities of oil by drilling deeper than anyone else ever had before
deeper than anyone else ever had before he became one of the richest men in the
he became one of the richest men in the world as a result
world as a result he made his opportunity when most other
he made his opportunity when most other people told him that there was no more
people told him that there was no more oil down there to be found
oil down there to be found the third part of the law of opportunity
the third part of the law of opportunity says that
says that opportunities are like buses
opportunities are like buses there will always be another one along
there will always be another one along this particular part of the law of
this particular part of the law of opportunity also says that you need not
opportunity also says that you need not be stampeded into acting at a rate or
be stampeded into acting at a rate or speed with which you're uncomfortable
speed with which you're uncomfortable often it's better to let an opportunity
often it's better to let an opportunity go past and wait for the next one than
go past and wait for the next one than to risk losing everything
to risk losing everything long-term money is patient money
long-term money is patient money the sixth law of luck is the law of
the sixth law of luck is the law of ability which says that luck is when
ability which says that luck is when preparedness meets opportunity
preparedness meets opportunity the first part of the law of ability
the first part of the law of ability says that the greater your ability in
says that the greater your ability in any area the more luck you'll experience
any area the more luck you'll experience in that area
in that area earl nightingale once said that if you
earl nightingale once said that if you received an opportunity for which you
received an opportunity for which you weren't prepared and you tried to seize
weren't prepared and you tried to seize it anyway you would only look foolish
it anyway you would only look foolish by the law of attraction whatever
by the law of attraction whatever abilities you develop in yourself you
abilities you develop in yourself you will eventually get your opportunity to
will eventually get your opportunity to use those abilities to the fullest
use those abilities to the fullest your job is to develop them in the first
your job is to develop them in the first place
place your job is to soak yourself in every
your job is to soak yourself in every kind of information possible that might
kind of information possible that might help you to achieve your goals when the
help you to achieve your goals when the time is right
time is right sooner or later you'll get your chance
sooner or later you'll get your chance the second part of the law of ability
the second part of the law of ability says that it's not enough to be in the
says that it's not enough to be in the right place at the right time
right place at the right time you must be the right person in the
you must be the right person in the right place at the right time
right place at the right time over and over when we look at men and
over and over when we look at men and women who have achieved major
women who have achieved major breakthroughs as a result of what
breakthroughs as a result of what appears to be luck
appears to be luck we find that those breakthroughs were
we find that those breakthroughs were preceded by weeks and months and often
preceded by weeks and months and often many years of painstaking preparation
many years of painstaking preparation and study
and study that enabled the individual
that enabled the individual to be prepared when the door of
to be prepared when the door of opportunity opened
opportunity opened the seventh law of luck is the law of
the seventh law of luck is the law of integrative complexity
integrative complexity this law says that the person with the
this law says that the person with the widest variety of knowledge and skills
widest variety of knowledge and skills in any area will tend to experience the
in any area will tend to experience the most luck in that area
most luck in that area the individual who eventually dominates
the individual who eventually dominates and wins in any situation will be the
and wins in any situation will be the individual who is capable of combining
individual who is capable of combining together the greatest number of bits of
together the greatest number of bits of information and knowledge into a
information and knowledge into a coherent pattern upon which he can make
coherent pattern upon which he can make decisions and take action
decisions and take action sometimes knowing just one additional
sometimes knowing just one additional piece of information can be the turning
piece of information can be the turning point for you
point for you during the civil war
during the civil war general robert e lee of the army of
general robert e lee of the army of northern virginia was said to have this
northern virginia was said to have this kind of mind the highest level of
kind of mind the highest level of integrative complexity of any general on
integrative complexity of any general on either side union or confederate
either side union or confederate as a result he was able to defeat every
as a result he was able to defeat every general in every army that was ever sent
general in every army that was ever sent against him
against him he said that the only thing that he
he said that the only thing that he really feared was that the northern
really feared was that the northern forces under abraham lincoln would
forces under abraham lincoln would finally feel the general who could think
finally feel the general who could think better and faster than he could
better and faster than he could well
well general ulysses s grant was deemed to be
general ulysses s grant was deemed to be the only general that the north ever put
the only general that the north ever put in command of an army against lee who
in command of an army against lee who had a level of integrative complexity
had a level of integrative complexity developed to the same height
developed to the same height within a year after grant taking over as
within a year after grant taking over as commander of all the union forces
commander of all the union forces the confederacy was in ruins the south
the confederacy was in ruins the south was defeated and the war was over
was defeated and the war was over you can develop ever higher levels of
you can develop ever higher levels of integrative complexity by continually
integrative complexity by continually adding to your store of knowledge
adding to your store of knowledge the first part of the law of integrative
the first part of the law of integrative complexity says that the more you know
complexity says that the more you know the more you grow
the more you grow in fact the more you learn the more
in fact the more you learn the more you're capable of learning the more you
you're capable of learning the more you work on your mind the better and
work on your mind the better and stronger your mind becomes
stronger your mind becomes the second part of this law says that
the second part of this law says that the wider the net you throw
the wider the net you throw the bigger will be your catch
the bigger will be your catch again the law of integrative complexity
again the law of integrative complexity continually gathering more and more
continually gathering more and more knowledge
knowledge simply increases the probabilities that
simply increases the probabilities that you'll have the specific information or
you'll have the specific information or the specific insight that will enable
the specific insight that will enable you to turn a situation to your
you to turn a situation to your advantage
advantage fear is and always has been the greatest
fear is and always has been the greatest enemy of mankind it's only when you
enemy of mankind it's only when you conquer fear that your mind opens up to
conquer fear that your mind opens up to all the possibilities that lie around
all the possibilities that lie around you
you the eighth law of luck is the law of
the eighth law of luck is the law of assumption
assumption and it's something we've also talked
and it's something we've also talked about before
about before it says that incorrect assumptions lie
it says that incorrect assumptions lie at the root of every failure
at the root of every failure let me repeat
let me repeat the major reason that people don't get
the major reason that people don't get the results that they desire is because
the results that they desire is because they're acting on incorrect assumptions
they're acting on incorrect assumptions whenever you assume something to be true
whenever you assume something to be true you also assume that it has a certain
you also assume that it has a certain degree of predictive validity that
degree of predictive validity that acting on that assumption will allow you
acting on that assumption will allow you to achieve certain objectives
to achieve certain objectives if you don't get what you expect the
if you don't get what you expect the very first thing that you must do is
very first thing that you must do is question your assumptions
question your assumptions this brings us to the first part of the
this brings us to the first part of the law of assumption which says
law of assumption which says the continuing assumption that you could
the continuing assumption that you could be dead wrong is the key to getting it
be dead wrong is the key to getting it dead right
dead right one of my favorite quotes is from oliver
one of my favorite quotes is from oliver cromwell in his address to the british
cromwell in his address to the british parliament when he said in frustration i
parliament when he said in frustration i beseech the gentleman in the bowels of
beseech the gentleman in the bowels of christ to consider it possible that you
christ to consider it possible that you could be wrong
could be wrong what he was trying to do
what he was trying to do was get them to open their minds to a
was get them to open their minds to a wider range of probabilities and
wider range of probabilities and explanations for the current situation
explanations for the current situation unfortunately many people tend to slip
unfortunately many people tend to slip into a mental comfort zone and become
into a mental comfort zone and become inflexible in their thinking
inflexible in their thinking however
however luck comes from allowing your mind to
luck comes from allowing your mind to roam freely over all the possibilities
roam freely over all the possibilities of a situation
of a situation consider that the correct thing to do
consider that the correct thing to do might be the exact opposite of what
might be the exact opposite of what you're doing right now
you're doing right now luck often comes from being open to such
luck often comes from being open to such possibilities from challenging your
possibilities from challenging your assumptions
assumptions the second part of this law says that
the second part of this law says that questioning your assumptions will enable
questioning your assumptions will enable you to see possibilities that you might
you to see possibilities that you might not have dreamed of
not have dreamed of this is the hallmark of the adaptive
this is the hallmark of the adaptive fluid and flexible person
fluid and flexible person this is the divergent thinker
this is the divergent thinker this is the person who speculates and
this is the person who speculates and who's willing to be childish even
who's willing to be childish even ridiculous in throwing out suggestions
ridiculous in throwing out suggestions one of the best questions that you can
one of the best questions that you can ask is why
ask is why why are we doing it this way
why are we doing it this way could there be a better way
could there be a better way should we be doing it at all
should we be doing it at all if there were a better way
if there were a better way what might it be
what might it be the ninth law of luck is the law of
the ninth law of luck is the law of timing which is best summarized by the
timing which is best summarized by the line from shakespeare in julius caesar
line from shakespeare in julius caesar where it says
where it says there is a tide in the affairs of man
there is a tide in the affairs of man which when taken at the flood leads on
which when taken at the flood leads on to fortune
to fortune time is a fundamental part of luck or
time is a fundamental part of luck or opportunity there is both a too soon and
opportunity there is both a too soon and a too late in all of human affairs
a too late in all of human affairs men and women who are described as lucky
men and women who are described as lucky are invariably those who recognize when
are invariably those who recognize when the time is right and move swiftly
the time is right and move swiftly in so doing they sometimes save
in so doing they sometimes save themselves months and years of hard work
themselves months and years of hard work the first part of the law of timing says
the first part of the law of timing says that timing is everything
that timing is everything it also says that because of the law of
it also says that because of the law of attraction you'll get what you're meant
attraction you'll get what you're meant to get when you're ready and not before
to get when you're ready and not before the second part of the law of timing
the second part of the law of timing comes from woody allen who said 80
comes from woody allen who said 80 percent of success is just showing up
percent of success is just showing up therefore
therefore many successful people make a habit of
many successful people make a habit of being in as many places as possible so
being in as many places as possible so as to increase the probabilities of
as to increase the probabilities of being in the right place at the right
being in the right place at the right time
time the third part of the law of timing says
the third part of the law of timing says that the more often you try the more
that the more often you try the more likely it is that you will triumph
likely it is that you will triumph you can put the law of averages to work
you can put the law of averages to work in your favor by increasing the number
in your favor by increasing the number of times that you attempt to achieve any
of times that you attempt to achieve any goal
goal the tenth law of luck is the law of
the tenth law of luck is the law of energy which says that
energy which says that the greater your energy and enthusiasm
the greater your energy and enthusiasm the more likely you will be to recognize
the more likely you will be to recognize and respond to luck
and respond to luck it's been proven many times that the
it's been proven many times that the more energetic you are the more likely
more energetic you are the more likely it is that you experience lucky
it is that you experience lucky occasions
occasions luck requires both having the
luck requires both having the opportunity and
opportunity and responding quickly to that opportunity
responding quickly to that opportunity and this requires energy
and this requires energy the first part of this law says that
the first part of this law says that alertness enables you to see roses where
alertness enables you to see roses where others only see thorns
others only see thorns when you are rested refreshed and alert
when you are rested refreshed and alert when you're physically fit in mind and
when you're physically fit in mind and body you're much more likely to see
body you're much more likely to see possibilities that escape most other
possibilities that escape most other people
people the second part of the law of energy
the second part of the law of energy says that
says that presence of mind and speed of action
presence of mind and speed of action can turn ordinary events into stepping
can turn ordinary events into stepping stones to success
stones to success many men and women have changed the
many men and women have changed the courses of their lives by seizing an
courses of their lives by seizing an opportunity quickly when it arose
opportunity quickly when it arose sometimes it was with careful thought
sometimes it was with careful thought and sometimes it was simply spontaneous
and sometimes it was simply spontaneous but the fact was that they had high
but the fact was that they had high energy and they acted or spoke quickly
energy and they acted or spoke quickly when the chance occurred
when the chance occurred very often your great piece of luck can
very often your great piece of luck can come after a string of setbacks and
come after a string of setbacks and disappointments
disappointments the law of probability says that you're
the law of probability says that you're entitled to a lucky break if you've had
entitled to a lucky break if you've had a series of unlucky occurrences
a series of unlucky occurrences be ready for the tide to turn so that
be ready for the tide to turn so that you can move with it quickly when it
you can move with it quickly when it does
does the third part of the law of energy says
the third part of the law of energy says that when the night becomes darkest the
that when the night becomes darkest the stars come out
stars come out when things seem to be the very worst if
when things seem to be the very worst if you bite your time and await your chance
you bite your time and await your chance your opportunity will sometimes occur
your opportunity will sometimes occur be ready to seize it and respond quickly
be ready to seize it and respond quickly during the darkest days of world war ii
during the darkest days of world war ii members of winston churchill's cabinet
members of winston churchill's cabinet were urging him to make peace with
were urging him to make peace with hitler
hitler he refused to do so and insisted instead
he refused to do so and insisted instead that something would happen to bring
that something would happen to bring america into the war if they just held
america into the war if they just held on long enough even though franklin d
on long enough even though franklin d roosevelt had won the presidency in 1940
roosevelt had won the presidency in 1940 by promising not to involve the united
by promising not to involve the united states in another war in europe
states in another war in europe churchill absolutely believed that
churchill absolutely believed that something would happen that would change
something would happen that would change everything if he held on long enough and
everything if he held on long enough and on december 7th 1941 the japanese on the
on december 7th 1941 the japanese on the other side of the world launched a
other side of the world launched a surprise attack on pearl harbor
surprise attack on pearl harbor when adolf hitler heard about the
when adolf hitler heard about the surprise attack he had to ask one of his
surprise attack he had to ask one of his generals where pearl harbor was located
generals where pearl harbor was located he had no idea of the geography of the
he had no idea of the geography of the pacific
pacific but nevertheless in a fit of excitement
but nevertheless in a fit of excitement hitler for no obvious reason declared
hitler for no obvious reason declared war on the united states
war on the united states the next morning franklin d roosevelt
the next morning franklin d roosevelt went before the u.s congress and
went before the u.s congress and declared war on japan
declared war on japan calling it a day of infamy and by the
calling it a day of infamy and by the way he said because of the declaration
way he said because of the declaration by germany he was also declaring war on
by germany he was also declaring war on germany and from that moment on america
germany and from that moment on america would be supporting england
would be supporting england winston churchill had turned out to be
winston churchill had turned out to be right once again
right once again his luck had turned
his luck had turned the 11th law of luck is the law of
the 11th law of luck is the law of relationships as it applies to luck it
relationships as it applies to luck it says that the number of people you know
says that the number of people you know and who know you will determine your
and who know you will determine your luck as much as any other factor
luck as much as any other factor the first part of this law is that most
the first part of this law is that most luck comes with hair on top
luck comes with hair on top most of your luck arises from the
most of your luck arises from the contacts that you have with other people
contacts that you have with other people and from the decision or desire of other
and from the decision or desire of other people to help you
people to help you the second part of the law of
the second part of the law of relationship says that
relationship says that chance remarks can change the direction
chance remarks can change the direction of your life
of your life a most remarkable thing about luck is
a most remarkable thing about luck is that it is often contained in comments
that it is often contained in comments from friendly strangers who you meet in
from friendly strangers who you meet in passing
passing sometimes a person will make an
sometimes a person will make an observation or
observation or pass along a fact that is the critical
pass along a fact that is the critical part of the puzzle you're trying to
part of the puzzle you're trying to solve
solve mark twain once wrote that his whole
mark twain once wrote that his whole life was changed when a piece of paper
life was changed when a piece of paper containing a short essay blew against
containing a short essay blew against his leg when he was walking down the
his leg when he was walking down the streets of hannibal missouri as a young
streets of hannibal missouri as a young man
man he picked up the paper which someone had
he picked up the paper which someone had dropped and read it and it changed him
dropped and read it and it changed him forever
forever sometimes someone can suggest that you
sometimes someone can suggest that you read a book or take a course or meet a
read a book or take a course or meet a particular person
particular person pay particular attention to these inputs
pay particular attention to these inputs remember what you want wants you
remember what you want wants you your luck will often appear in the guise
your luck will often appear in the guise of a stranger
of a stranger be alert and sensitive to the fact that
be alert and sensitive to the fact that luck is often very playful and comes to
luck is often very playful and comes to you in a joking manner from a direction
you in a joking manner from a direction that you least expect
that you least expect keep an open mind and be willing to
keep an open mind and be willing to pursue these chant circumstances
pursue these chant circumstances the third part of the law of
the third part of the law of relationships as it applies to luck is
relationships as it applies to luck is that when the student is ready
that when the student is ready the master will appear
the master will appear this is another example of the laws of
this is another example of the laws of attraction and expectation cause and
attraction and expectation cause and effect and a whole lot of other laws
effect and a whole lot of other laws it says that when you develop a divine
it says that when you develop a divine discontent and you're sincerely
discontent and you're sincerely committed to changing and improving your
committed to changing and improving your life
life someone will appear either in the form
someone will appear either in the form of a book an audio tape a course or a
of a book an audio tape a course or a teacher and will give you the critical
teacher and will give you the critical piece of information that you need
piece of information that you need at that time
at that time the 12th law of luck is the law of
the 12th law of luck is the law of empathy
empathy it says that if you can see the
it says that if you can see the situation through the eyes of the other
situation through the eyes of the other person
person your perspective can reveal unseen
your perspective can reveal unseen possibilities
possibilities this is especially true in the world of
this is especially true in the world of business of sales and all personal
business of sales and all personal relationships
relationships stephen covey says
stephen covey says seek first to understand
seek first to understand then to be understood
then to be understood make every effort to view the situation
make every effort to view the situation from the perspective of the other person
from the perspective of the other person and you'll often see things you would
and you'll often see things you would have missed otherwise
have missed otherwise the first part of the law of empathy is
the first part of the law of empathy is the old indian saying which says walk a
the old indian saying which says walk a mile in the other person's moccasins
mile in the other person's moccasins when you develop a deep sense of empathy
when you develop a deep sense of empathy for the problems difficulties and needs
for the problems difficulties and needs of other people
of other people you'll often see how you can satisfy
you'll often see how you can satisfy them in a way that no one has ever
them in a way that no one has ever thought of before
thought of before the second part of the law of empathy
the second part of the law of empathy which is a key to success in business
which is a key to success in business says simply that
says simply that if you can see jon jones through jon
if you can see jon jones through jon jones eyes you can sell jon jones what
jones eyes you can sell jon jones what jon jones buys
jon jones buys ask yourself what is his perspective
ask yourself what is his perspective what does this person see
what does this person see what does this person want and what is
what does this person want and what is he willing to pay for
he willing to pay for when you put all these different laws
when you put all these different laws together the laws of probability clarity
together the laws of probability clarity purpose attraction expectation
integrative complexity courage timing energy relationships and
courage timing energy relationships and empathy
empathy you begin to realize that luck is
you begin to realize that luck is largely predictable
largely predictable and you can dramatically increase the
and you can dramatically increase the incidence of it that you enjoy in your
incidence of it that you enjoy in your life
life you can bring the powers and forces of
you can bring the powers and forces of nature together to work for you in a
nature together to work for you in a constructive and positive way to help
constructive and positive way to help you achieve your goals
you achieve your goals luck and good fortune increase in every
luck and good fortune increase in every area of your life if you'll simply do
area of your life if you'll simply do the things that we've discussed and
the things that we've discussed and develop the qualities practiced by other
develop the qualities practiced by other lucky and successful people
lucky and successful people good luck
good luck [Music]
perhaps your greatest responsibility to yourself and your most important job in
yourself and your most important job in life
life is to become everything you're capable
is to become everything you're capable of becoming and to realize your full
of becoming and to realize your full potential as a human being
potential as a human being it's to achieve your personal best and
it's to achieve your personal best and to become the very best person that you
to become the very best person that you can be in every area of your life
can be in every area of your life true happiness and lasting satisfaction
true happiness and lasting satisfaction only comes to you when you feel that
only comes to you when you feel that you're living your life to the fullest
you're living your life to the fullest that you're working on the outer edge of
that you're working on the outer edge of your capabilities and that you're
your capabilities and that you're stretching yourself to become more than
stretching yourself to become more than you've ever been in the past throughout
you've ever been in the past throughout this program i've introduced you to a
this program i've introduced you to a series of laws and principles that are
series of laws and principles that are timeless and applicable to virtually
timeless and applicable to virtually every area of your life
every area of your life some of these laws have been repeated in
some of these laws have been repeated in different ways and with different
different ways and with different applications
applications these laws largely explain what happens
these laws largely explain what happens to you or
to you or what fails to happen to you
what fails to happen to you some of these laws are general and
some of these laws are general and affect virtually every area of your life
affect virtually every area of your life like the law of cause and effect
like the law of cause and effect some are more particular and are often
some are more particular and are often specific to a single activity or area of
specific to a single activity or area of endeavor
endeavor like money or wealth creation
like money or wealth creation one of the most important of the laws
one of the most important of the laws that i've talked about is the law of
that i've talked about is the law of belief
belief your beliefs have such an inordinate
your beliefs have such an inordinate impact on your thinking that you don't
impact on your thinking that you don't believe so much what you see but you see
believe so much what you see but you see what you believe
what you believe your beliefs form the master program of
your beliefs form the master program of your subconscious computer and you can
your subconscious computer and you can sell them exceed your deeply held
sell them exceed your deeply held convictions concerning your own
convictions concerning your own capabilities
capabilities you can very rarely do more than you
you can very rarely do more than you think you can or
think you can or be more than you believe you can
be more than you believe you can the wonderful thing is that because of
the wonderful thing is that because of the law of reversibility
the law of reversibility by taking actions consistent with the
by taking actions consistent with the beliefs about yourself that you want to
beliefs about yourself that you want to have
have the actions themselves have a backflow
the actions themselves have a backflow effect that causes you to believe in
effect that causes you to believe in that way
that way this itself is a core principle of
this itself is a core principle of self-fulfillment
self-fulfillment the law of expectation says that
the law of expectation says that whatever you expect with confidence
whatever you expect with confidence becomes your own
becomes your own self-fulfilling prophecy
self-fulfilling prophecy you live out your true expectations in
you live out your true expectations in virtually everything that you say and do
virtually everything that you say and do the law of correspondence says that your
the law of correspondence says that your outer world tends to be a mirror of your
outer world tends to be a mirror of your inner world
inner world what you see on the outside of your life
what you see on the outside of your life is largely a reflection of what's going
is largely a reflection of what's going on on the inside
on on the inside perhaps the most powerful law of all is
perhaps the most powerful law of all is what we can call the law of the universe
what we can call the law of the universe the law of super conscious activity
the law of super conscious activity which says that any thought plan goal or
which says that any thought plan goal or idea
idea that you can hold continuously in your
that you can hold continuously in your conscious mind
conscious mind must be brought into reality by your
must be brought into reality by your super conscious mind
super conscious mind if you absolutely believe that something
if you absolutely believe that something is possible for you and you hold to that
is possible for you and you hold to that belief tenaciously you activate the
belief tenaciously you activate the entire power of the universe behind your
entire power of the universe behind your chosen dreams and goals
chosen dreams and goals you can then go on to accomplish more in
you can then go on to accomplish more in a short time than many people accomplish
a short time than many people accomplish in a lifetime
in a lifetime in this session i'll explain to you
in this session i'll explain to you thirteen additional laws of
thirteen additional laws of self-fulfillment and how they work in
self-fulfillment and how they work in your life
your life applying any of these laws or any
applying any of these laws or any combination of them will help you to
combination of them will help you to have and do and be more than you ever
have and do and be more than you ever could without them
could without them the first law of fulfillment is the law
the first law of fulfillment is the law of growth
of growth this law states that if you're not
this law states that if you're not growing you're stagnating
growing you're stagnating change is the only constant factor in
change is the only constant factor in life
life you can avoid taxes by not working and
you can avoid taxes by not working and you can avoid death for a long time by
you can avoid death for a long time by taking excellent care of your physical
taking excellent care of your physical health
health but we're all caught up in the
but we're all caught up in the turbulence of continuous change and the
turbulence of continuous change and the successful men and women of today and
successful men and women of today and tomorrow
tomorrow are what is called
are what is called change masters
change masters it's only when you learn to welcome
it's only when you learn to welcome change embrace change and continually
change embrace change and continually grow from change that you free yourself
grow from change that you free yourself from the danger of being bowled over or
from the danger of being bowled over or brushed aside by changes over which you
brushed aside by changes over which you have little control
have little control all progress and improvement requires
all progress and improvement requires change
change one of the reasons why i've emphasized
one of the reasons why i've emphasized the importance of clear goals throughout
the importance of clear goals throughout this program is that goals enable you to
this program is that goals enable you to control the direction of change
control the direction of change goals assure that change is
goals assure that change is predominantly positive and constructive
predominantly positive and constructive if change is unavoidable and inevitable
if change is unavoidable and inevitable you want to be sure that whatever
you want to be sure that whatever changes are taking place are helping you
changes are taking place are helping you in some way
in some way and this requires goals
and this requires goals the second law of self-fulfillment is
the second law of self-fulfillment is the law of practice which says whatever
the law of practice which says whatever you practice over and over again often
you practice over and over again often enough
enough becomes a new habit
becomes a new habit you can control your destiny in the kind
you can control your destiny in the kind of person you become with this law
of person you become with this law your entire evolution and growth as a
your entire evolution and growth as a human being is dependent upon the fact
human being is dependent upon the fact that your character is not fixed in
that your character is not fixed in place
place it's fluid and capable of growth and
it's fluid and capable of growth and development
development you can become what you want to become
you can become what you want to become with practice you can develop the habit
with practice you can develop the habit of arising early in the morning and
of arising early in the morning and planning your day thoroughly before you
planning your day thoroughly before you begin
begin you can develop the habit of
you can develop the habit of self-discipline
self-discipline you can develop the habit of
you can develop the habit of aggressiveness and purposefulness and
aggressiveness and purposefulness and whatever else you desire
whatever else you desire the first part of the law of practice is
the first part of the law of practice is a peak performance technique entitled
a peak performance technique entitled mental rehearsal
mental rehearsal this technique is used by the top
this technique is used by the top athletes top business people and
athletes top business people and virtually all high achieving men and
virtually all high achieving men and women in our society
women in our society the principle of mental rehearsal says
the principle of mental rehearsal says that you can develop any habit pattern
that you can develop any habit pattern of action or behavior you desire by
of action or behavior you desire by practicing it in your mind repeatedly
practicing it in your mind repeatedly prior to the situation that requires it
prior to the situation that requires it for example
for example if you have an upcoming meeting with
if you have an upcoming meeting with your boss or banker you can go through
your boss or banker you can go through the entire meeting mentally and practice
the entire meeting mentally and practice being calm
being calm confident and relaxed throughout
confident and relaxed throughout the second part of the law of practice
the second part of the law of practice says that
says that the more relaxed you are when you
the more relaxed you are when you visualize a new behavior
visualize a new behavior the more rapidly it's accepted by your
the more rapidly it's accepted by your subconscious mind and the more rapidly
subconscious mind and the more rapidly you begin acting consistent with your
you begin acting consistent with your mental picture
mental picture this law of practice and the need to
this law of practice and the need to mentally rehearse in a deeply relaxed
mentally rehearse in a deeply relaxed state is called autogenic conditioning
state is called autogenic conditioning or auto suggestion
or auto suggestion it's perhaps the most powerful peak
it's perhaps the most powerful peak performance technique available to you
performance technique available to you without training and all you have to do
without training and all you have to do to use it is to create a mental movie of
to use it is to create a mental movie of exactly how you want a particular
exactly how you want a particular situation to work out
situation to work out play that movie over and over again in
play that movie over and over again in your mind prior to the situation
your mind prior to the situation and you'll be amazed at how often
and you'll be amazed at how often everything happens exactly the way you
everything happens exactly the way you imagined
imagined the third part of the law of practice
the third part of the law of practice says that you must launch new habits and
says that you must launch new habits and behaviors strongly
behaviors strongly never allow an exception before the new
never allow an exception before the new habit is fully entrenched
habit is fully entrenched once you decide to utilize the law of
once you decide to utilize the law of practice and develop a new behavior or
practice and develop a new behavior or attitude to override or replace an old
attitude to override or replace an old behavior or attitude that you no longer
behavior or attitude that you no longer desire
desire you must discipline yourself to stay
you must discipline yourself to stay with it until the new habit is firmly in
with it until the new habit is firmly in place
place for example if you decide to get up at
for example if you decide to get up at six a.m every morning you must force
six a.m every morning you must force yourself to do it over and over again
yourself to do it over and over again until you actually wake up automatically
until you actually wake up automatically at six a.m and you can't get back to
at six a.m and you can't get back to sleep
sleep this isn't easy in any area but it can
this isn't easy in any area but it can make a tremendous difference to the
make a tremendous difference to the level of self-fulfillment that you enjoy
level of self-fulfillment that you enjoy in your life
in your life the third law of self-fulfillment is the
the third law of self-fulfillment is the law of accumulation which says that
law of accumulation which says that every great life is an accumulation of
every great life is an accumulation of hundreds and thousands of efforts and
hundreds and thousands of efforts and sacrifices that no one else either sees
sacrifices that no one else either sees or appreciates
or appreciates i've discussed this law before and with
i've discussed this law before and with regard to your being all you can be it's
regard to your being all you can be it's absolutely essential
absolutely essential we all start off with limited knowledge
we all start off with limited knowledge and limited resources and it's only
and limited resources and it's only through the long hard process of
through the long hard process of accumulation like a snowball gathering
accumulation like a snowball gathering snowflakes as it rolls down a hill that
snowflakes as it rolls down a hill that we build ourselves up to the point where
we build ourselves up to the point where we're capable of fulfilling our dreams
we're capable of fulfilling our dreams and aspirations
and aspirations this law also says that
this law also says that no worthwhile effort or sacrifice is
no worthwhile effort or sacrifice is ever lost
ever lost you may have to work for many weeks or
you may have to work for many weeks or months or even years before you begin to
months or even years before you begin to see the results of this process of
see the results of this process of accumulation but every good thing that
accumulation but every good thing that you do
you do every extra effort that you make is
every extra effort that you make is accumulating and becoming part of your
accumulating and becoming part of your character
character and part of your future
and part of your future in an earlier session i talked about the
in an earlier session i talked about the importance of time perspective
importance of time perspective of taking the long view with regard to
of taking the long view with regard to your life and being willing to make
your life and being willing to make short-term sacrifices for long-term
short-term sacrifices for long-term gains
gains other people will often try to
other people will often try to discourage you and dissuade you and get
discourage you and dissuade you and get you to put off these efforts in favor of
you to put off these efforts in favor of having fun in the present but you must
having fun in the present but you must ignore them and persevere regardless
ignore them and persevere regardless the law of accumulation is another iron
the law of accumulation is another iron law of individual success and personal
law of individual success and personal fulfillment
fulfillment and anyone who violates it ends up
and anyone who violates it ends up paying the price by living a life
paying the price by living a life far below his or her capabilities
far below his or her capabilities the fourth law of self-fulfillment is
the fourth law of self-fulfillment is the law of incremental improvement
the law of incremental improvement this is a sub-law of the law of
this is a sub-law of the law of accumulation
accumulation it says that mastery and excellence in
it says that mastery and excellence in any field is the result of countless
any field is the result of countless efforts of self-development over an
efforts of self-development over an extended period of time
extended period of time this law simply says that you need to
this law simply says that you need to invest countless hours of working on
invest countless hours of working on yourself and on your profession or
yourself and on your profession or occupation to gradually work yourself up
occupation to gradually work yourself up to the point where you begin to enjoy
to the point where you begin to enjoy the big rewards
the big rewards no matter where you start your future
no matter where you start your future potential is unlimited using this law of
potential is unlimited using this law of incremental improvement
incremental improvement it's the key to self-fulfillment because
it's the key to self-fulfillment because happiness in life is a journey not a
happiness in life is a journey not a destination
destination as i said before happiness is the
as i said before happiness is the progressive step-by-step realization of
progressive step-by-step realization of a worthy ideal
a worthy ideal a feeling of personal growth towards
a feeling of personal growth towards something that's important to you
something that's important to you is the root cause of individual
is the root cause of individual motivation enthusiasm and excitement
motivation enthusiasm and excitement about life
about life the first part of the law of
the first part of the law of accumulation comes from the great polish
accumulation comes from the great polish pianist patarousky who became the prime
pianist patarousky who became the prime minister of poland
minister of poland even with a busy schedule he practiced
even with a busy schedule he practiced on the piano for three hours every day
on the piano for three hours every day when he was asked why it was he
when he was asked why it was he continued to practice even though he was
continued to practice even though he was recognized as one of the finest pianists
recognized as one of the finest pianists in europe
in europe he replied with these classic words
he replied with these classic words he said
he said if i don't practice for even one day i
if i don't practice for even one day i know the difference
know the difference if i don't practice for two days the
if i don't practice for two days the critics know the difference
critics know the difference and if i don't practice for three days
and if i don't practice for three days the public knows the difference
the public knows the difference it's always obvious to anyone who's
it's always obvious to anyone who's looking
looking whether or not you're engaged in this
whether or not you're engaged in this ongoing process of incremental
ongoing process of incremental improvement
improvement the comedian and actor george burns has
the comedian and actor george burns has been doing his comedy routine since the
been doing his comedy routine since the days of vaudeville back in the 20s
days of vaudeville back in the 20s he's booked on a regular basis to
he's booked on a regular basis to perform before large audiences yet
perform before large audiences yet prior to every single performance he
prior to every single performance he spends one solid hour of review and
spends one solid hour of review and rehearsal alone in his dressing room
rehearsal alone in his dressing room even though he's done the same material
even though he's done the same material hundreds if not thousands of times
hundreds if not thousands of times he's always working on it to keep it
he's always working on it to keep it fresh and to improve it in some way
fresh and to improve it in some way the second part of the law of
the second part of the law of incremental improvement is what i call
incremental improvement is what i call longfellow's law
longfellow's law this comes from the immortal words of
this comes from the immortal words of the poet henry wadsworth longfellow who
the poet henry wadsworth longfellow who said
said those heights by great men won and kept
those heights by great men won and kept were not achieved by sudden flight
were not achieved by sudden flight but they
but they while their companions slept
while their companions slept were toiling upward in the night
were toiling upward in the night the fifth law of self-fulfillment is the
the fifth law of self-fulfillment is the law of self-development
law of self-development this law says that you can become
this law says that you can become whatever you want in life
whatever you want in life if you will just learn what you need to
if you will just learn what you need to know in order to achieve it
know in order to achieve it just imagine
just imagine you don't have to be envious of the
you don't have to be envious of the accomplishments of anyone else in the
accomplishments of anyone else in the world
world whatever anyone else has done that you
whatever anyone else has done that you sincerely wish to do yourself you can
sincerely wish to do yourself you can learn to do if you simply apply yourself
learn to do if you simply apply yourself long enough and hard enough
long enough and hard enough by the law of self development you can
by the law of self development you can raise yourself by your own bootstraps to
raise yourself by your own bootstraps to any height that you desire
any height that you desire now
now here's an exercise for you
here's an exercise for you project yourself forward in time and see
project yourself forward in time and see yourself living your ideal lifestyle
yourself living your ideal lifestyle surrounded by the kind of people and
surrounded by the kind of people and work and material things that you most
work and material things that you most desire
desire from this mental vantage point in the
from this mental vantage point in the future
future look back to the present day to where
look back to the present day to where you are right now and
you are right now and imagine the steps you might have taken
imagine the steps you might have taken and the things you would have had to
and the things you would have had to learn in order to get to where you want
learn in order to get to where you want to be
to be this exercise is amazingly effective in
this exercise is amazingly effective in clarifying for you
clarifying for you the things that you're going to have to
the things that you're going to have to do and become
do and become starting today
starting today to get to wherever you want to go in the
to get to wherever you want to go in the future
future just give it a try
just give it a try the sixth law of self-fulfillment is the
the sixth law of self-fulfillment is the law of talents
law of talents it says that your greatest opportunities
it says that your greatest opportunities lie in the development and exploitation
lie in the development and exploitation of your inborn talents and abilities
of your inborn talents and abilities you don't need to become a different
you don't need to become a different person or to develop different
person or to develop different capabilities
capabilities you merely need to dig deep down into
you merely need to dig deep down into the gold mine of your own potentials
the gold mine of your own potentials and you will find riches enough to build
and you will find riches enough to build any kind of life you might want for
any kind of life you might want for yourself
yourself the first part of the law of talents is
the first part of the law of talents is what i call gardner's observation after
what i call gardner's observation after howard gardner at the university of
howard gardner at the university of harvard and his work on human potential
harvard and his work on human potential it says simply
it says simply you are a genius
you are a genius because of the unique structure of your
because of the unique structure of your brain you have the capacity to perform
brain you have the capacity to perform at exceptional levels in an area that
at exceptional levels in an area that interests you so much that you become
interests you so much that you become totally absorbed by your activities in
totally absorbed by your activities in that area
that area howard gardner has demonstrated that
howard gardner has demonstrated that there are at least seven major forms of
there are at least seven major forms of intelligence and that each person is
intelligence and that each person is blessed with a combination of these
blessed with a combination of these different forms of intelligence the
different forms of intelligence the proper use of which can make you
proper use of which can make you unstoppable
unstoppable the second part of the law of talents is
the second part of the law of talents is the parable of jesus where he talks
the parable of jesus where he talks about talents and says
about talents and says o good and faithful servant you have
o good and faithful servant you have been faithful over small things i will
been faithful over small things i will make you master over many things
make you master over many things this is another way of saying that as
this is another way of saying that as you stretch your existing talents and
you stretch your existing talents and abilities you'll be given ample
abilities you'll be given ample opportunities to use even more of them
opportunities to use even more of them the third part of the law of talents is
the third part of the law of talents is what i call rhone's recommendation from
what i call rhone's recommendation from business philosopher jim rohn who says
business philosopher jim rohn who says if you work on your gifts
if you work on your gifts they will make way for you
they will make way for you this is a wonderful truth tied into the
this is a wonderful truth tied into the law of talents if you really go to work
law of talents if you really go to work on the innate abilities that you've
on the innate abilities that you've identified already
identified already your capabilities will begin to expand
your capabilities will begin to expand and enable you to embrace all kinds of
and enable you to embrace all kinds of other opportunities
other opportunities the fourth part of the law of talents is
the fourth part of the law of talents is what i call rothschild's revision after
what i call rothschild's revision after baron de rothschild who became one of
baron de rothschild who became one of the world's wealthiest men by practicing
the world's wealthiest men by practicing certain principles in his own business
certain principles in his own business life
life his original rule was
his original rule was make no useless acquaintances
make no useless acquaintances and my revision of this rule simply says
and my revision of this rule simply says learn no useless subjects or skills
learn no useless subjects or skills remember all you really have to trade is
remember all you really have to trade is your time
your time you trade time for the kind of life
you trade time for the kind of life you'll enjoy in the future
you'll enjoy in the future therefore refuse to spend hours or weeks
therefore refuse to spend hours or weeks learning a subject simply because it's
learning a subject simply because it's fun and enjoyable
fun and enjoyable instead use those same hours to develop
instead use those same hours to develop your talents and abilities to develop
your talents and abilities to develop yourself personally and professionally
yourself personally and professionally and to activate the laws of accumulation
and to activate the laws of accumulation and incremental improvement so that you
and incremental improvement so that you become an outstanding human being
become an outstanding human being the seventh law of self-fulfillment is
the seventh law of self-fulfillment is the law of excellence
the law of excellence this was best stated by vince lombardi
this was best stated by vince lombardi when he said
when he said the quality of your life will be
the quality of your life will be determined
determined by the depth of your commitment to
by the depth of your commitment to excellence more than by any other factor
excellence more than by any other factor no one could have said it better the
no one could have said it better the foundation of a great life is for you to
foundation of a great life is for you to achieve excellence at doing something
achieve excellence at doing something that's important to you
that's important to you it's only when you're really good at
it's only when you're really good at what you're doing that you feel like a
what you're doing that you feel like a winner that you enjoy high self-esteem
winner that you enjoy high self-esteem and a tremendous feeling of self-respect
and a tremendous feeling of self-respect and self-fulfillment
and self-fulfillment conversely you can't feel very good
conversely you can't feel very good about yourself by simply doing a job in
about yourself by simply doing a job in an average or mediocre way
an average or mediocre way your aim should be to be outstanding at
your aim should be to be outstanding at the important things you do
the important things you do if you're in sales your goal should be
if you're in sales your goal should be to be among the top twenty percent of
to be among the top twenty percent of salespeople in your field
salespeople in your field if you're already there you should aim
if you're already there you should aim to be in the top ten percent
to be in the top ten percent as defined solely by income
as defined solely by income the first part of the law of excellence
the first part of the law of excellence comes from emile kuwait it's a
comes from emile kuwait it's a paraphrase of his famous advice which
paraphrase of his famous advice which was
was every day and every way i'm getting
every day and every way i'm getting better and better
better and better just as he taught the patients in his
just as he taught the patients in his clinic to say these words you should be
clinic to say these words you should be saying to yourself
saying to yourself every day in every way
every day in every way i'm getting better and better in my
i'm getting better and better in my chosen field
chosen field and if you're not getting better and
and if you're not getting better and better then reorganize your life so that
better then reorganize your life so that you read books attend courses and listen
you read books attend courses and listen to audio tapes until you do
to audio tapes until you do the second part of the law of excellence
the second part of the law of excellence comes from john palmer of the national
comes from john palmer of the national speakers bureau who was once asked what
speakers bureau who was once asked what it took to get ahead in a competitive
it took to get ahead in a competitive field
field he replied with these wonderful words he
he replied with these wonderful words he said
said get good
get good get better
get better be the best
be the best never be satisfied with anything less
never be satisfied with anything less than being at the top
than being at the top as vince lombardi also said
as vince lombardi also said winning is not a sometime thing it's an
winning is not a sometime thing it's an all the time thing
all the time thing the third part of the law of excellence
the third part of the law of excellence comes from bear bryant of the university
comes from bear bryant of the university of alabama the great football coach who
of alabama the great football coach who said
said it's not the will to win that counts as
it's not the will to win that counts as much as
much as the will to prepare to win
the will to prepare to win he noticed in coaching winning football
he noticed in coaching winning football teams that virtually everybody wanted to
teams that virtually everybody wanted to win
win but that only a few players wanted it
but that only a few players wanted it badly enough to put in the exhaustive
badly enough to put in the exhaustive preparation necessary to be ready to win
preparation necessary to be ready to win everybody wants to be the best but very
everybody wants to be the best but very few people are willing to make all the
few people are willing to make all the efforts necessary to be the best
efforts necessary to be the best if you decide to be the best
if you decide to be the best and you combine that with the necessary
and you combine that with the necessary work
work nothing can stop you
nothing can stop you the eighth law of self-fulfillment is
the eighth law of self-fulfillment is the law of opportunity
the law of opportunity this version comes from napoleon hill
this version comes from napoleon hill who discovered after a lifetime of
who discovered after a lifetime of research on success that within every
research on success that within every setback or obstacle there lies the seed
setback or obstacle there lies the seed of an equal or greater benefit or
of an equal or greater benefit or opportunity
opportunity he found that the most successful men
he found that the most successful men and women lived their lives by this law
and women lived their lives by this law and took every setback as a spur to
and took every setback as a spur to greater effort
greater effort the first part of the law of opportunity
the first part of the law of opportunity refers to your level of confidence and
refers to your level of confidence and it says that
it says that the more confidence you have in your
the more confidence you have in your ultimate ability to succeed the more
ultimate ability to succeed the more boldly you will act on opportunities
boldly you will act on opportunities when they arise
when they arise when you tune your mind to success and
when you tune your mind to success and develop a prosperity consciousness
develop a prosperity consciousness when you begin to apply the law of
when you begin to apply the law of abundance to the world around you
abundance to the world around you you'll see more opportunities than you
you'll see more opportunities than you can possibly take advantage of and the
can possibly take advantage of and the very fact of having the confidence that
very fact of having the confidence that everything that you're doing is
everything that you're doing is propelling you towards your goals will
propelling you towards your goals will cause you to make more progress than
cause you to make more progress than other people around you
other people around you the second part of the law of
the second part of the law of opportunity refers back to the law of
opportunity refers back to the law of reversibility which says that just as
reversibility which says that just as your feelings dictate your thoughts and
your feelings dictate your thoughts and actions
actions your actions have a reverse effect and
your actions have a reverse effect and create your thoughts and feelings
create your thoughts and feelings if you want to be enthusiastic pretend
if you want to be enthusiastic pretend that you're already enthusiastic and the
that you're already enthusiastic and the pretense will soon generate the emotion
pretense will soon generate the emotion of enthusiasm and excitement
of enthusiasm and excitement you'll be amazed at how many more
you'll be amazed at how many more opportunities you become aware of just
opportunities you become aware of just by acting as though you expect to
by acting as though you expect to discover them the ninth law of
discover them the ninth law of self-fulfillment is what i earlier
self-fulfillment is what i earlier called the law of courage
called the law of courage it says in this context that if you
it says in this context that if you confront the thing you fear then the
confront the thing you fear then the death of fear is certain
death of fear is certain the greatest single obstacle to
the greatest single obstacle to self-fulfillment is and always has been
self-fulfillment is and always has been fear combined with ignorance
fear combined with ignorance it's fear of failure fear of criticism
it's fear of failure fear of criticism fear of poverty fear of losing fear of
fear of poverty fear of losing fear of disapproval and every other kind of fear
disapproval and every other kind of fear that acts as a break
that acts as a break on your becoming the kind of person you
on your becoming the kind of person you want to become
want to become one of the characteristics of men and
one of the characteristics of men and women with leadership qualities is they
women with leadership qualities is they always turn toward the things they fear
always turn toward the things they fear and in so doing
and in so doing face them down
face them down they never avoid fearful situations or
they never avoid fearful situations or people
people they look upon fear as an enemy to be
they look upon fear as an enemy to be challenged to be confronted and dealt
challenged to be confronted and dealt with rather than to be evaded and
with rather than to be evaded and ignored
ignored the first part of this law of courage
the first part of this law of courage comes from the movie dead poet society
comes from the movie dead poet society this movie starring robin williams
this movie starring robin williams emphasized the importance of the latin
emphasized the importance of the latin saying
saying carpe diem which means
carpe diem which means seize the day
seize the day the second part of the law of courage
the second part of the law of courage says
says act as if it were impossible to fail
act as if it were impossible to fail and it shall be
and it shall be you can actually develop the courage
you can actually develop the courage that makes you unstoppable by simply
that makes you unstoppable by simply forcing yourself disciplining yourself
forcing yourself disciplining yourself to act courageously even when deep down
to act courageously even when deep down inside you don't feel like it
inside you don't feel like it there seems to be a direct relationship
there seems to be a direct relationship between your willingness to face the
between your willingness to face the disapproval of strangers and your
disapproval of strangers and your ability to get ahead
ability to get ahead if you're single and you see an
if you're single and you see an attractive member of the opposite sex
attractive member of the opposite sex you'd like to meet just walk up and
you'd like to meet just walk up and introduce yourself
introduce yourself if you're in sales you can overcome the
if you're in sales you can overcome the fear that holds many salespeople back by
fear that holds many salespeople back by simply forcing yourself to go out and
simply forcing yourself to go out and call on new prospects until the fear
call on new prospects until the fear finally disappears
finally disappears in every case you'll feel far better
in every case you'll feel far better about yourself when you confront your
about yourself when you confront your fears squarely and move ahead
fears squarely and move ahead confidently in the direction of your
confidently in the direction of your dreams
dreams the tenth law of self-fulfillment is the
the tenth law of self-fulfillment is the law of applied effort
law of applied effort it says that all great achievement is
it says that all great achievement is preceded and accompanied by hard hard
preceded and accompanied by hard hard work
work dr thomas stanley's research into the
dr thomas stanley's research into the lifestyles of thousands of affluent
lifestyles of thousands of affluent americans found that virtually every one
americans found that virtually every one of them ascribed their success to the
of them ascribed their success to the ability to work harder than anyone else
ability to work harder than anyone else the first part of the law of applied
the first part of the law of applied effort is what i call getty's principle
effort is what i call getty's principle john paul getty became the richest man
john paul getty became the richest man in the world of his time
in the world of his time he was a millionaire by the age of 23
he was a millionaire by the age of 23 and a billionaire two decades later
and a billionaire two decades later when he was asked the secret of his
when he was asked the secret of his success he replied with just two words
success he replied with just two words he said
he said try harder
try harder the journalist asked him what he would
the journalist asked him what he would do if that didn't work
do if that didn't work and he replied simply that he would
and he replied simply that he would try harder still
try harder still almost all things are amenable to hard
almost all things are amenable to hard work
work if you're not getting the results that
if you're not getting the results that you want
you want simply
simply try harder
try harder it's been said that the very best sales
it's been said that the very best sales are those that come at the end of the
are those that come at the end of the longest day
longest day at the end of the longest street
at the end of the longest street to the very last person you call on
to the very last person you call on it seems to be that when you work well
it seems to be that when you work well beyond what anyone could expect
beyond what anyone could expect you really feel the best about yourself
you really feel the best about yourself and you really start to get results
and you really start to get results the second part of this law of applied
the second part of this law of applied effort is simply this
effort is simply this work
work all the time you work
all the time you work don't view your work and see it as a
don't view your work and see it as a social occasion or a place to fool
social occasion or a place to fool around
around be serious
be serious don't drop off your dry cleaning pick up
don't drop off your dry cleaning pick up your groceries or wash your car
your groceries or wash your car don't talk on the telephone with your
don't talk on the telephone with your friends and family and don't socialize
friends and family and don't socialize around the water cooler
around the water cooler get a reputation instead for being the
get a reputation instead for being the kind of person who works all the time he
kind of person who works all the time he works
works try it and see
try it and see you'll be amazed at the results
you'll be amazed at the results the 11th law of self-fulfillment is the
the 11th law of self-fulfillment is the law of giving
law of giving again quoting the bible
again quoting the bible this law states that it is more blessed
this law states that it is more blessed to give than to receive
to give than to receive it's also more profitable as well
it's also more profitable as well life today belongs to the go giver
life today belongs to the go giver rather than the go-getter
rather than the go-getter all around you you'll see both givers
all around you you'll see both givers and takers and you'll find that the
and takers and you'll find that the givers are the most popular and the most
givers are the most popular and the most successful in everything they do and
successful in everything they do and wherever they go
wherever they go the law of giving is tied into the law
the law of giving is tied into the law of service which says that you can only
of service which says that you can only achieve real meaning and purpose in life
achieve real meaning and purpose in life to the degree to which you feel that
to the degree to which you feel that you're serving other people in some way
you're serving other people in some way the first part of the law of giving is
the first part of the law of giving is that
that the only gift worth giving is that which
the only gift worth giving is that which includes the giver as part of it
includes the giver as part of it it's the part of yourself that you
it's the part of yourself that you attach to any gift that makes the gift
attach to any gift that makes the gift valuable
valuable a favorite stone given by a child is a
a favorite stone given by a child is a far more important gift than something
far more important gift than something given out of obligation or with
given out of obligation or with indifference
indifference the second part of the law of giving is
the second part of the law of giving is that the more of yourself that you give
that the more of yourself that you give without expectation of return
without expectation of return the greater will be your return often
the greater will be your return often from the most unexpected sources
from the most unexpected sources almost everyone has discovered that
almost everyone has discovered that when they give themselves to others good
when they give themselves to others good things happen to them and come back to
things happen to them and come back to them from the most unexpected directions
them from the most unexpected directions it's a basic rule that the person you
it's a basic rule that the person you help in some way is never the person
help in some way is never the person that pays you back
that pays you back it's often someone else who helps you at
it's often someone else who helps you at a different time and place and in a
a different time and place and in a different way
different way but it was the initial willingness to
but it was the initial willingness to give of yourself that created this force
give of yourself that created this force field of energy that led to someone else
field of energy that led to someone else helping you when you were in need
helping you when you were in need the third part of the law of giving is
the third part of the law of giving is called the principle of reciprocity
called the principle of reciprocity which says that whenever you give or do
which says that whenever you give or do something nice for another person you
something nice for another person you trigger within that person the desire to
trigger within that person the desire to reciprocate for your action or kindness
reciprocate for your action or kindness since none of us wants to feel under
since none of us wants to feel under obligation to another
obligation to another when someone does something nice for us
when someone does something nice for us we feel a need to do something nice back
we feel a need to do something nice back to even the score
to even the score therefore the smart person is the person
therefore the smart person is the person who's always looking for ways to do
who's always looking for ways to do things for others knowing that it will
things for others knowing that it will inevitably come back and sometimes in
inevitably come back and sometimes in far greater measure than what was put
far greater measure than what was put out
out the fourth part of giving has to do with
the fourth part of giving has to do with the timing of a gift
the timing of a gift a single rose given at the right time
a single rose given at the right time can be worth a dozen roses given too
can be worth a dozen roses given too late
late one of my favorite quotes is in the
one of my favorite quotes is in the words
words i shall pass this way but once
i shall pass this way but once any kindness that i can do
any kindness that i can do let me do it now without delay or
let me do it now without delay or reservation
reservation for i shall not pass this way again
for i shall not pass this way again the twelfth law of self-fulfillment is
the twelfth law of self-fulfillment is the law of affirmation
the law of affirmation this law states that whatever you repeat
this law states that whatever you repeat to yourself often enough will eventually
to yourself often enough will eventually be accepted by your subconscious mind as
be accepted by your subconscious mind as a fact and will become a part of your
a fact and will become a part of your beliefs
beliefs by affirming to yourself over and over
by affirming to yourself over and over any dream desire or goal that you wish
any dream desire or goal that you wish you eventually come to believe it and
you eventually come to believe it and accept it as an inevitable truth for you
accept it as an inevitable truth for you at that point it takes on a force of its
at that point it takes on a force of its own and begins moving you irresistibly
own and begins moving you irresistibly towards it
towards it and it toward you
and it toward you the law of affirmation is based on what
the law of affirmation is based on what we call the three p's
we call the three p's the first p stands for present tense
the first p stands for present tense i can do it i can do it i can do it
i can do it i can do it i can do it the second p stands for personal
the second p stands for personal you always use the word i rather than
you always use the word i rather than the word you or we or they you say i
the word you or we or they you say i like myself i like myself i like myself
like myself i like myself i like myself and the third p stands for positive
and the third p stands for positive always phrase your affirmations in the
always phrase your affirmations in the positive tense
positive tense you can say i feel terrific rather than
you can say i feel terrific rather than i will feel terrific tomorrow your
i will feel terrific tomorrow your subconscious mind can only be accessed
subconscious mind can only be accessed by words that are programmed in the
by words that are programmed in the personal present and positive tense
personal present and positive tense the first part of the law of affirmation
the first part of the law of affirmation is that the most powerful words of all
is that the most powerful words of all are the ones you say to yourself and
are the ones you say to yourself and believe
believe the more often you repeat them to
the more often you repeat them to yourself and the more emotionally you
yourself and the more emotionally you say them the more you believe them to be
say them the more you believe them to be true the more you believe them the more
true the more you believe them the more of an impact they'll have on your
of an impact they'll have on your thinking and your behavior
thinking and your behavior the second part of the law of
the second part of the law of affirmation is that the most powerful
affirmation is that the most powerful affirmation is a visualization
affirmation is a visualization whenever you visualize and combine that
whenever you visualize and combine that mental picture with the emotion of
mental picture with the emotion of desire it's passed rapidly as a command
desire it's passed rapidly as a command from your conscious mind to your
from your conscious mind to your subconscious mind and it begins to
subconscious mind and it begins to activate the law of attraction the law
activate the law of attraction the law of expectation the law of correspondence
of expectation the law of correspondence and many other laws
and many other laws what you see on the inside you begin to
what you see on the inside you begin to experience on the outside
experience on the outside this is perhaps the most amazing power
this is perhaps the most amazing power that a human being can have
that a human being can have the third part of the law of affirmation
the third part of the law of affirmation is simply that
is simply that with affirmations both verbal and visual
with affirmations both verbal and visual your potential is unlimited
your potential is unlimited and finally the thirteenth law of
and finally the thirteenth law of self-fulfillment is the law of optimism
self-fulfillment is the law of optimism which says that a positive mental
which says that a positive mental attitude is closely associated with
attitude is closely associated with success in virtually every area of life
success in virtually every area of life the more positive and optimistic you are
the more positive and optimistic you are the more constructive your thoughts and
the more constructive your thoughts and behaviors the more likely it is that you
behaviors the more likely it is that you will achieve greatly in everything you
will achieve greatly in everything you attempt
attempt the first part of the law of optimism
the first part of the law of optimism says that you think feel and act the way
says that you think feel and act the way you do because of the way you interpret
you do because of the way you interpret experiences and events to yourself
experiences and events to yourself the way you talk to yourself about the
the way you talk to yourself about the way you think things are happening has
way you think things are happening has an inordinate impact on how positive you
an inordinate impact on how positive you feel
feel if you slip however and begin talking to
if you slip however and begin talking to yourself and explaining things to
yourself and explaining things to yourself in a negative way
yourself in a negative way it'll cast appall of negativity and
it'll cast appall of negativity and gloom over your whole personality
gloom over your whole personality so
so watch your words and your inner dialogue
watch your words and your inner dialogue be careful about your conversation and
be careful about your conversation and how you talk about how you feel about
how you talk about how you feel about things that are happening around you
things that are happening around you the second part of the law of optimism
the second part of the law of optimism says that every thought feeling word or
says that every thought feeling word or action you engage in is a choice
action you engage in is a choice made by yourself for which you are
made by yourself for which you are totally responsible
totally responsible since no one can think and decide for
since no one can think and decide for you but yourself you are completely
you but yourself you are completely responsible for the results of your
responsible for the results of your thinking
thinking since no one controls your inner
since no one controls your inner dialogue but yourself
dialogue but yourself the starting point of optimism and
the starting point of optimism and happiness is for you to think what you
happiness is for you to think what you want to think and make sure that your
want to think and make sure that your thoughts are continually on the person
thoughts are continually on the person that you want to be
that you want to be and the things that you want to
and the things that you want to accomplish
accomplish let me leave you with this important
let me leave you with this important idea
idea there are exceptions to many of these
there are exceptions to many of these laws
laws sometimes they seem not to work at all
sometimes they seem not to work at all in the short term
in the short term it's easy for a person to challenge a
it's easy for a person to challenge a law that might require him to change his
law that might require him to change his thinking or his actions by pointing out
thinking or his actions by pointing out the exceptions to the law and attempting
the exceptions to the law and attempting to invalidate the law with the
to invalidate the law with the exceptions
exceptions this unfortunately is a method of
this unfortunately is a method of crooked thinking
crooked thinking and it's harmful thinking in that it
and it's harmful thinking in that it often leads a person away from the very
often leads a person away from the very things that he needs to know
things that he needs to know and practice to achieve the goals he set
and practice to achieve the goals he set for himself
for himself the keys to mental well-being and
the keys to mental well-being and happiness are a sense of control and a
happiness are a sense of control and a sense of coherence which go hand in hand
sense of coherence which go hand in hand you experience a sense of control to the
you experience a sense of control to the degree to which you accept complete
degree to which you accept complete responsibility for being the cause of
responsibility for being the cause of the effects in your life
the effects in your life because these laws and principles
because these laws and principles explain the role your thinking plays in
explain the role your thinking plays in determining your life
determining your life they put you into the driver's seat
they put you into the driver's seat by virtue of the fact that you control
by virtue of the fact that you control your thinking and your thinking controls
your thinking and your thinking controls your life
your life you are the master of your own destiny
you are the master of your own destiny the best way to organize your life
the best way to organize your life just like the best way to drive your car
just like the best way to drive your car even though you can sometimes speed and
even though you can sometimes speed and not get caught
not get caught is to obey these laws and just
is to obey these laws and just confidently assume that they are
confidently assume that they are continually at work
continually at work you now have the laws of the universe
you now have the laws of the universe and the secrets of the ages
and the secrets of the ages there is nothing that you cannot do and
there is nothing that you cannot do and be if you make up your mind and then
be if you make up your mind and then just
just do it
do it [Music]
[Music] you've been listening to the universal
you've been listening to the universal laws of success and achievement
laws of success and achievement applying these laws in your life becomes
applying these laws in your life becomes easy if you listen to these tapes
easy if you listen to these tapes several times
several times as you've heard brian tracy tell you
as you've heard brian tracy tell you once you align your goals with your
once you align your goals with your values you'll find that in critical
values you'll find that in critical moments of your life the relevant law
moments of your life the relevant law will come to mind
will come to mind and you'll be able to take the right
and you'll be able to take the right steps in the right direction
steps in the right direction ultimately the laws of luck will always
ultimately the laws of luck will always seem to work in your favor
seem to work in your favor audible hopes you have enjoyed this
audible hopes you have enjoyed this program
program well hopes you have enjoyed this program
well hopes you have enjoyed this program hopes you have enjoyed this program
hopes you have enjoyed this program hopes you have enjoyed this program
hopes you have enjoyed this program we hope you have enjoyed this program
we hope you have enjoyed this program we hope you have enjoyed this program
we hope you have enjoyed this program we hope you have enjoyed this program
we hope you have enjoyed this program well hope you have enjoyed this program
well hope you have enjoyed this program well hopes you have enjoyed this program
well hopes you have enjoyed this program well hopes you have enjoyed this program
well hopes you have enjoyed this program well hope you have enjoyed this program
well hope you have enjoyed this program well hopes you have enjoyed this program
well hopes you have enjoyed this program we hope you have enjoyed this program
we hope you have enjoyed this program well hopes you have enjoyed this program
well hopes you have enjoyed this program we hope you have enjoyed this program
we hope you have enjoyed this program well hopes you have enjoyed this program
well hopes you have enjoyed this program we hope you have enjoyed this program
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