The Top 10 Distinctions Between Millionaires and The Middle Class

The author differentiates Millionaires (M) and the Middle Class (MC) using the 10 distinctions stated in his book. By understanding the differences between the M and the MC, we can stage and position ourselves for greater wealth building and creation. Most important of all, my belief sync with the author's: Success is a journey.

What i find more interesting is the author's reasons of publishing this book. He mentioned 3 reasons for writing this book: Responsibility, Purpose, Legacy, which differentiates him from other authors of similar books - This guy is damned straight forward. The language he'd used is simple, direct, to the point. Most importantly, easy to understand by layman.

After 2 years of acquiring assets in financial education since Dec 2005, I'd realised that I am already a practitioner of some of the distinctions stated in the book. I am sure that I am able to acquire the remaining distinctions using a few more years. I am glad that I am able to move from the MC to the M very soon.

I attempted to sum up what to expect from this book as follows:

Distinction 1: Millionaires ask themselves empowering questions. Middle class ask themselves disempowering questions.

"Ask and you will receive." & "As a man thinks, so is he." - So better ask empowering questions. Learn to ask ourselves questions that stretch beyond your current levels of experience. The questions you ask yourself determine the results you get in your life. Think about questions that expand your mind. Empowering questions ask us what we can do, make us feel good, become a powerful and peaceful person. Questions controls mind, condition it to create success. 9 questions based on "Be, Do, Have" concept offers clarity; Know What you want, Why you want, and the How will naturally follow. Most important question to ask, "What would make my life meaningful?"

Distinction 2: Millionaires focus on increasing their networth. The middle class focuses on increasing its paychecks.

Own assets (have value and earn passive income for us) using our paychecks. It requires new knowledge so study hard to learn how to acquire income-producing assets. Patience, knowledge and wisdom are required to increase our net worth. Wisdom is applied knowledge. Achieve Freedom - the freedom to work because we want to instead of because we have to. Learn to keep our cost of living the same even as we build our wealth. Uncommon wisdom of M: Do not increase spending when income increases, instead increase investing.

Distinction 3: Millionaires have multiple sources of income. The middle class has only one or two.

The more sources of income we can develop, the more likely we will become a M. The trick to developing mulitple sources of income is to focus on making them passive (with minimum management). Build a TEAM and learn to be humble. Employ Intentional Congruence concept - methodical planning, getting each source of passive income to support the other income. Focus on PASSIVE sources of income, build a TEAM, and practice INTENTIONAL CONGRUENCE.

Distinction 4: Millionaires believe they must be generous. The middle class believes it can't afford to give.

Learn to be generous, it feels great when we give from the heart. Being generous is a sure way to be happy. (that's why Keith write books, teach seminars on success - give people the knowledge they can use to make a long-term improvement) Understand the Law of Sowing and Reaping (Law of Causes and Effects in Buddism)

Distinction 5: Millionaires work for profits. The middle class works for wages.

Wages are the pay we receive for the work we do. Profits are the result of buying something for one price and selling it for a higher price. Learn to earn profits, then sky is the limit.

Distinction 6: Millionaires continually learn and grow. The middle class thinks learning ended with school.

Success is a process, a journey. The more money you spend on financial knowledge, the more money you will make. By reading more (even if it is just a concept in each book), we compressed time and learn financial secrets that took others years to discover. M invest in their knowledge with people who have achieved success that they want for themselves. Wisdom is Applied Knowledge. Focus on personal growth, love life. True success involves peace and contentment.

Distinction 7: Millionaires take claculated risks. The middle class is afraid to take risks.

The only way out of the rat race for the MC is to take calculated risks. Calculated Risks means to gain knowledge first, consider the consequences of failing before taking action. 3 fears of the MC: Fear of Failure, Rejection, Loss. Fear can be overcomed with knowledege. Failure is part of the path to success - Embrace it and become wiser. We must want to succeed more than we want the acceptance of other people. Losing is part of winning. Live like you were dying - take more risks, take more time to reflect, do more things that would live on after we are gone. Take action!

Practice risk management with 3 questions:

1. What's the best thing that could happen?

2. What's the worst thing that could happen?

3. What's the most likely thing to happen?

Distinction 8: Millionaires embrace change. The middle class is threatened by change.

"For the timid in our society, change is frightening. For the comfortable, change is threatening. For the truly confident among us, change is opportunity." - Nido Qubein, Mentor of Keith.

Confidence is acquired thru preparation, hard work, result of working on ourselves, believing we can do whatever we choose to. We can choose or wish to be rich but remember that Choice is backed by a belief that we can do it, Wish is backed by a doubt that we can. Fear blinds us to opportunities - so develop confidence, learn to accept change and fear will become False Evidence Appearing Real. People are born to learn and grow. Change is good!

Distinction 9: Millionaires talk about ideas. The middle class talks about things and other people.

"Big people talk about ideas, average people talk about things, and small people talk about other people." What do you spend your time talking about? Ideas, things or people? M do talk about people and things. M compliments people for what they did right. M shares notes and books with each other. The power of our words create the experiences of our life; so change our vocabulary, stop complaining and start learning. Learn to develop gratitude. The lessons of life come to teach us to look at life from new perspectives. This leads to new ideas.

Distinction 10: Millionaires think long-term. The middle class thinks short-term.

Give up scarcity mentality (money is in abundance!). Make long-term thinking a habit to release its power. Thinking long-term requires patience and patience is an asset. Thinking long-term builds relationship. Thinking long-term builds health. Thinking long-term develops perserverance. The secret of M: Do what you love to do to make money.

Keith concludes with the concept of repetition to train our mind to think differently. Remember, Success is a Journey.

Another realization I'd after reading this book is, "Diversification spreads risks. Knowledge reduces risks.". If I want to increase my wealth, I must choose to, commit to, plan to and act to achieve wisdom, not just diverse.

"When I Stop Learning, I Stop Living."

Which Business are you in?

July 17, 2008: What business are you in? This sounds like quite a silly question when taken at face value, especially when it is directed at the chief executive or business owner. Of course he or she knows what business they are in. They wake up every morning, and probably spend sleepless nights, thinking about their business.

It almost seems obvious that every chief executive knows what business they engage in. Perhaps not.

Many corporate leaders are consciously or subconsciously grappling with the question of what business they are in. Many do not actually know what business they are really in.

This conundrum has a significant effect on how they conduct business, how they allocate resources, who they are really competing against and most importantly, how they position their brands to effectively obliterate the competition and thus make a good return to shareholders.

The Postal Corporation of Kenya provides a great example of a business that has been able to successfully grapple with the question of what business it is really in.

This question is ultimately a branding question as getting the answer right defines every business decision and forms the core of the organisation’s brand essence.

It defines the organisation’s promise. To put it another way, organisations are really in the business of building relationships, and brands are all about relationships that secure future earnings for business.

Fond memories

A few of us will remember the giant Kenya Posts and Telecommunication Corporation (KPTC). Even fewer of us will have fond memories of KPTC. That was the organisation that sold us stamps, delivered our letters (slowly), connected us via phone, fax (sometimes) and even regulated the industry (where it was the only real player).

Regulation in those days meant frustrating any effort aimed at development or ensuring no organisation ventured into the businesses it was in. How times change. Come 1998 and the giant bloated organisation was split into three —Postal Corporation of Kenya, Telkom Kenya Limited and the Communications Commission of Kenya. This marked the beginning of real business and real branding decisions for the organisations.

Postal Corporation of Kenya, now branded simply as Posta, found itself at crossroads with the internet era.

Gone were the days when one would have to get a writing pad, write a letter with an actual pen, put the letter in an envelop and take a trip to the post office to purchase a stamp, then helplessly watch as the letter she had worked so hard to put together was swallowed by a cold inanimate red bin.

The bin promised nothing and often kept its promises. If one was lucky, a letter to the United States would take a couple of weeks.

By the time the respondent across the oceans was able to digest the now outdated contents and respond through the same painful process, a full month would easily have elapsed. The internet, and specifically email, changed all this.

As we entered the new millennium one could get a free e-mail address which allowed anybody with access to the internet to send and receive, what would have taken at least a month, within a matter of minutes. Posta obviously had to grapple with its very survival in an era where state subsidies had suffered the same fate as the dodo and there was no holding back the idea of the internet as its time had definitely come.

It was time to go back to the drawing board for Posta to discover what business they were really in. Like many businesses every day rigours seem to take front seat and the strategic outlook becomes blurred. This cancer had struck Posta and it ails many businesses, most of which do not know they actually have this challenge.

Big picture perspective

Thinking from a big picture perspective allows the chief executive an opportunity to position the brand for the long term. Posta wasn’t about stamps and delivering letters. Posta wasn’t about money orders and telegrams.

Posta wasn’t about courier services. The truth about what the Posta brand is really about is now revealing itself. The Posta brand is about distribution and reach. That is the real business Posta is in. Why do I say this?

Posta is now in several strategic alliances with organisations that would hitherto not touch it with a 10-foot- pole because it boasts unparalleled distribution channels countrywide.

That is Posta’s real strategic asset. It is much more than just mail, courier or financial services. The names of Posta’s partners sound like the who is who among Kenyan corporate brands: Safaricom for airtime distribution, GTV for subscription payments, Kenya Power and Lighting (KPLC) for bill payments, among many others.

One gets the feeling Posta’s drive to leverage on its distribution channels has only began and coupled with great service, will be what makes or breaks its brand. Going back to your own business, what business are you really in? The answer may not be as obvious as it seems and this fast moving world has a way of redefining businesses.

The giant in Safari-com

Safaricom finally breached the KSh7 psychological barrier last week and with supply at almost 6 to 1 against demand, the bottom is not yet been reached so I continue to watch from the sidelines. However, if it does reach below Ksh6, then I must strike come what may. This is to do with Kimunya's exit as well as small investors panicking. So, do you think the big guys are waiting and hovering around like vultures waiting to make a kill after the price dipps enough? I believe all these fund managers wana meza mate tuu.