I talk about mindset on page 107 of my book “How To Ignite Your Passion For Living”. This section explains how your mindset acts as a blueprint; how it directs what you do with your life. The people in this world who have amassed great wealth and success have a blueprint that is all about thinking big. If you want wealth or great success, you too have to work off a blueprint designed for thinking big.

Bill Gates is a well known example of super success. He’s also one of those people who has always had a ‘think big’ mindset. He was already embarking on his own business ventures at the age of 17. While an undergraduate at Harvard he managed to convince one of the first microcomputer manufactures to meet with him so he could sell them on something he hadn’t even tried yet. These crazy, untried, big ideas paid off and he eventually took a leave of absence from Harvard because of them. His big leap also started him down the path to starting what would end up being the largest software company in the world, Microsoft. It is also what made him a billionaire at the age of 31.

If Bill Gates had played it safe, it’s likely that very few of us would even know his name. Where will thinking big like this take you? If you want the big rewards, get your subconscious, as well as you intentions, working off the same big plans blueprint. Make thinking big a habit. Think big, think wealthy, think successful. If this truly becomes your mindset, it will lead to this also being your reality.

Take, for instance, Daddy Bruce Randolph, a philanthropist and restaurant owner who, at the age of 60, after many years of hard times and failed businesses, scraped together enough money to open a BBQ joint in Denver. A year after he opened, not that much better off financially, he started serving free Thanksgiving dinners to the down and out in his community, a tradition that would last almost 40 years. He would also give away what he could to help the less fortunate on Christmas, Easter, and even his own birthday. Every year his generous events would get bigger and harder to finance but he’d still keep doing it. It gained him admirers all over the country, many of whom jumped in to keep the charitable events going as they grew well beyond his means. Because of his generosity, he had to live modestly but still, he was happy.

When asked why he gave so generously, Daddy Bruce said, “You can’t beat love. Nothin’ beats love. If you give one thing, you get three things back.” He was, in the truest sense of the phrase, a very successful investor. He invested in what he believed in most and gained the love and appreciation of thousands of grateful Denver citizens as well as the admiration of people from all across the country. Not that he was after the admiration, I’m sure, but if he was getting three times what he gave, he was certainly one of the richest men of his time, living a full, passionate life through bettering the lives of others.

I understand that kind of passion. I may have amassed significant personal wealth but the real joy in it has not been what I can buy but how I can use what I have to help make positive changes in other people’s lives. It’s why I wrote my book “How to Ignite Your Passion for Living”. It doesn’t matter whether your dreams involve increasing your monetary wealth or enriching the lives of others, the key is to live well and let your passion lead you.

The answer lies primarily in the risk level of the investment and how much your time is worth. For instance, investing through a broker takes little time but the pay back is either very uncertain or very small. Small businesses often take years to turn a profit and your time investment, which may seem cheap or free initially, can be very expensive if you consider how much you could have made working more hours or a second job. Just think, if you could have gotten $25/hour working a second job, then that 20 hours a week you spent over 6 months getting the business up and running cost you $12,500 in lost income! How long will it take you to recover that investment through your business?

In real estate, you invest both a significant amount of time and, sometimes, money (see last week’s post and page 184 in my book “How to Ignite Your Passion for Living” on how to get others to fund your investments) but the outcome is far less risky. The added bonus is that real estate will not continue to suck your time the way a small business often does, and the returns will inevitably be greater and more secure than stocks. This is why I really encourage you to look at real estate if financial freedom is a primary goal of yours.

I’m not saying you shouldn’t open that storefront you’ve been dreaming about or support your favorite budding green business with a capital investment—there are many factors beyond time and money to consider when deciding what investment is right for you—but just don’t pour your all your time and money into something that is not going to help you reach your financial goals in the near future. Keep an eye on the big picture. Because after you make your first million in real estate, you can pay someone to do all the hard work to get that business off the ground or invest in whatever you like. That’s the beauty of financial freedom.

Simple. You have other people put the money in for you.

The best “super leverage” method I’ve seen is what I call the “Hansen model” after a particularly ingenious investor by the name of Dell Loy Hansen. You can read about Dell and his method in detail starting on page 184 of my book How to Ignite Your Passion for Living, but I’ll give you the gist of it here.

To start, you need a few people looking to invest in a safe, reliable project that will give them a regular and consistent return. Get them to collectively fund a down payment of 20% or more on the property you want to purchase and promise a reasonable return–say a 10% APR, an amount that is presently 500% higher than the best CD can offer. If you can put in some of your own money as well, it makes the investors feel much more secure as you’re backing your confidence in the investment’s potential by also putting your money at risk.

Then when you flip that house or rent those office spaces, get the best return possible and get the money back to your investors with a higher than expected rate of return. When they see that you not only lived up to but exceeded their return expectations, you will have created a enthusiastic group of investors for future projects as well as getting wonderful word of mouth that could bring even more money flocking to you.

There are plenty of people out there right now who have cash to invest but don’t want to bank on the unpredictable stock market and aren’t getting anywhere with the meager CD returns. So start working on cultivating those investor relationships and get access to the “leverage” you need to gain financial freedom sooner than you thought possible.

I have found this to be a very common state of mind these days. Our advanced technologies have led us to habitually expect that we can access our wishes immediately. Super fast internet, instant downloads, DVRs, and multi-functional cell phones give us the ability to have some level of access to whatever or whomever we want whenever we want. But life, in general, doesn’t work that way. As a result, we are experiencing more and more frustration and impatience which ultimately leads to depression or anger.

Reaching a goal is a series of small, necessary steps but even when you are making steady progress, it may feel like it is taking forever to attain it because of all you must go through to get there. The key to a truly successful goal, however, is not only reaching it but also enjoying and celebrating life while you work towards it. In other words, you need to learn to appreciate the journey, not just the destination.

Over the next few weeks, I will talk more about what is often referred to as “living in the now”. Much of what I want to talk about is based on principles outlined in my book, How to Ignite Your Passion for Living. It’s hard to be passionate when you are frustrated and impatient but it’s not hard to be passionate about anything if you are passionate about living and enjoying the moment. That is really the ultimate goal.

“I was lucky to have the right heroes. Tell me who your heroes are and I’ll tell you how you’ll turn out to be. The qualities of the one you admire are the traits that you, with a little practice, can make your own, and that, if practiced, will become habit-forming.”
- Warren Buffett

Warren Buffett’s 7 Secrets for Living a Happy and Simple Life
Part of success is mindset – and those who are successful at overcoming challenges or excelling make great mentors. They understand the power of your mindset. A mentor can be someone you know personally (or seek out and become friends with), people you read about, or those no longer living.

I like meeting people I admire – most of them are completely within reach. It’s surprising how easy it is to meet people if you are persistent – it’s something I’ve done all of my life.

I’ve met the Dalai Lama and the president of the United States, plus many people you may not know about who’ve done great things and overcome huge obstacles.

Where can I find great mentors?
One way to find mentors is through organizations. I’ve belonged to real estate associations, political associations, and other groups. Some are a waste of your time, but others like one I’m involved in is the Granite Education Foundation. This organization have been very helpful and extremely rewarding for me. Find organizations that are doing good work in your community and you’ll likely find mentors who you can learn from.

One way I find people to follow is I read newspapers, magazines (like Fortune, Forbes, Time Magazine, Newsweek) and see who is being talked about. Then I seek those people out. It’s not hard to get to know people. One way that can work – is to keep asking for an audience until you get a response.

Once I decided I wanted to meet the Ray Kroc, the founder of McDonalds and I did it through sheer persistence. Ray didn’t make his fortune until he was 55 years old. He started by studying the success of a small burger joint in Southern California and later bought it and franchised it around the world. He made several billion dollars.

He started out flipping hamburgers and 40 years later he was the CEO of the company. How did he do it? I wanted to talk to him, find out more. So I devised a method and I persisted. I called his office asking to meet him until one day he gave in. He gave me 20 mins. but when we got talking I was there for two hours. We became friends and he gave me great advice that helped in a huge way to build my own fortune.

Another one of my heroes was the billionaire Aristotle Onasis. The story goes that he wanted to meet a famous Argentinian businessman. He only made 25 cents an hour and had little hope of ever meeting the man.

His plan was to stand by the man’s gate every day, not saying a word. After standing in the same place for several weeks, this important man that he wanted to meet finally couldn’t stand the suspense any longer. He confronted Aristotle and said who are you and what do you want? And from that initial meeting, Aristotle learned a great deal that helped his success.

Another person I want to meet now is Nando Parrado. I am planning to travel to South America to meet him. He was one of the few survivors of a deadly plane crash in the Andes mountains. He spent 72 days in freezing temperatures then climbed over 17,000 foot ice capped mountains and led a rescue party to the other survivors. It just about killed him but he lived and wrote the book about his experiences in, “Miracle in the Andes.”

I always have a list of people I want to meet. What do I want to learn from these men and others like them? I want to know their thoughts – what’s inside of their heads. How they survived and thrived through difficulties. Some disclose it in their books but not all do. I want to know how their experiences affect their lives now. How it affects their thinking.

So one of my secrets to passion in life is to make a list of who you want to meet and why you want to meet them.

“It is hard to maintain vitality when you are always hungry”.
- Aristotle Onassis

A question that people ask is how to follow passion for living when you are barely making a living. When things are difficult and you’re hanging on just to survive. Now the economy around the world is in turmoil. You could argue that it’s just about impossible to find passion in life, especially if you were already struggling. It’s true that it’s much more difficult to live in the present or have passion for life if you’re worried about basic human needs.

One way I approach difficulties is through mindset. I look at situations relatively. There are families in our country who are in tough situations right now. For example: a husband and wife with two kids, no savings, who are behind on their rent payments. Then the husband loses his job and they wonder how they will make it.

However, he has freedom, which is an enormous advantage. While this situation is difficult you can look at it in a different way – a different mindset. For example, he can think of the situation in relation to people who live in a place where freedom is not part of their lives. This man has freedom to look for a job. He can persistently look until he finds one. He doesn’t have to worry about his own safety, or the safety of his family. He has the freedom to look for a job without fear of being killed or a bomb going off when he leaves his home. Safety is freedom.

My advice when going through these things is to keep asking and asking (for a job). Keep looking for what you need. In the meantime do whatever it takes to spend less than you earn. And build up a savings. This is one of the biggest secrets of building real wealth.

As for me, I’m not particularly concerned about the economic situation. I take the long-term view, the long term perspective. Federal Chairman Bernake said that this downturn is not unusual, just more extreme. It will take time to work our way through, just like it takes time for individuals in crisis to make changes that ultimately turn things around.

How I see it is this economic climate is that it’s the biggest wake-up call in 75 years. I’m more afraid things will rebound much too quickly. Why? Because if things get better too fast things will get better and we’ll forget the lessons we’re learning.

Many confuse needs and wants. Over time, we return to going after what we want. We’ll go into debt for it. Greed will replace fear and we’ll repeat the past.

• Read good books about finance. Then think about, and find someone to discuss your ideas with. Find someone who has been successful at building wealth. Don’t listen to the talkers of big success but the doers that have really done it.
• Record your thoughts in a journal as you read. This will help you retain knowledge.
• Write down your goals along with timeframes of when you will reach them.

I love this quote: “Always have two books – one to read from and one to write in.” As mentioned in the first point, find people that are good at what you want to learn. All my life I’ve looked for mentors – people who have been successful at what I want to learn. I’ll go into this more in my next post.

“You need to stand back from the masses because the masses almost always get it wrong.”

Some might wonder if because of my lifestyle I’m somehow immune to feeling the effects of a slow  economy. I’m not saying I haven’t been hurt by it, I have. I’m not immune to it. But my take is that we’re not at the bottom yet – but we’re near.

I talked to people on my trip about it. World markets are being creamed. Many are worried. Some blame the U.S. for problems with the economy, though they have made some of the same mistakes. There is no question that a person living hand to mouth is in a bad situation and this economic downturn. It scares them — and it should scare them.

Just yesterday, when things were looking bleak all over the world, I started buying positions — one in a bank, one in another lending institution. It’s a pretty gutsy thing to do. You might think I’m foolish. Or, in a week it will make me look bright, then a year from now – brilliant. You see, market economies go through cycles, when they say the sky is falling the loudest, it the time when it is turning.

Whether you’re worth a few million or a billion or you’re upside down financially, wealth is not a matter of what you make, it’s what you keep.

My first job I made $600 a month and I saved $60 a month. I got a raise of $40 a month and I saved it too, until I was saving $100 a month. Was it easy? No. Did I have to deprive myself of things? Yes. But I wanted financial security.

By studying wealthy people, I learned they save and invest money wisely over time. It takes a lot of patience and thought, and work. I spread my risk in a lot of different investments. Still, there will be bumps, even big bumps. But even those bumps create huge opportunities in markets not only in the US, but around the world.

If we’re not at the bottom now, we’re very close because of the panic and fear I see. I’ve seen this happen before. It’s somewhat predictable. The sky is not falling – when financial crisis hits the front page of the papers and when they hit main street…the stock market is near bottom. When it hits the mainstream, it’s reached its peak.

When it comes to investing in this climate, don’t pay attention to the noise. Keep your head down. Even in a real estate market like today there is opportunity. So now as always, if a deal makes sense financially, do it.