Jim Rohn
Power Ideas from America's Foremost Business Philosopher
Kick off your journey to success with advice from a self-made millionaire.
Do you frequently find yourself frustrated by financial problems? Do you believe that success is something you can only dream about? If so, you are far from alone.
Jim Rohn, the author, felt this way when he dropped out of college to work as a human resources manager. He worked hard for six years and remained in the same position, earning the same income.
However, all changed when he met his tutor, Earl Shoaff. Shoaff taught him successful wealth-building tactics that required discipline and dedicated effort. By applying them, he had become a billionaire by the age of 31.
While wealth and success mean various things to different people, the seven tactics outlined in this summary can help you reach any financial objective, whether it's becoming a billionaire or getting out of debt. Now, let's begin.
In this brief, you will learn
How can you benefit from purchasing supper for a wealthy individual?
Why should you like paying your taxes?
What it means to have a two-quarters mindset.
1. Setting specific goals will allow you to discipline yourself and create structure.
Consider the last time you achieved one of your objectives or crossed something off your to-do list. What occurred afterwards? Inevitably, another duty emerged to take its place.
While this may appear frustrating, it is ultimately beneficial. You don't want to focus on just one objective at a time, since once you've achieved it, you may feel lost and aimless.
Consider the Apollo astronauts following their life-changing mission to the moon. Unfortunately, several of the astronauts developed depression as a result of the lack of goals. As part of their necessary training, astronauts now set goals for themselves upon completing their missions.
You, too, should have goals. To begin, allocate dedicated time to work on your goals. Try the writing exercise below to help you imagine your long-term goals and start thinking about how to achieve them.
Grab a notebook and consider what you want to accomplish in the next one to 10 years. Then make a list of those goals as soon as possible. Aim for approximately 50 goals in total.
Once your list is complete, categorize each objective into one of four groups based on how long you believe it will take to complete it: one, three, five, or ten years.
Next, balance your list so that you don't have too many goals in any single category. Remove items from categories with too many goals, and add new ones to those with too few.
Then, circle the four most critical goals in each area. You should now have 16 goals in total.
Finally, compose a paragraph for each goal. In the first part of each paragraph, state the purpose clearly. If you wish to buy a product, for example, jot down the model, color, price, and any other relevant information. Then, in the second half of the paragraph, describe why you wish to attain each goal. If you can't come up with a compelling rationale, this objective may not be worth your attention. In that case, consider replacing it with another goal.
After you've refined your list, you'll be able to refer back to it to track your progress and choose which goals remain essential to you and which aren't.
2. Self-directed learning is the path to prosperity and personal growth.
In most fields, people do not expect to succeed without years of study and experience. Take medication. Nobody would attempt triple bypass surgery without first spending years researching the human heart. So, how could somebody hope to become wealthy and successful without ever learning financial management or business operations?
Fortunately, you do not have to spend time and money attending university to learn how to build your wealth. Instead, you can accomplish it through self-directed learning.
One way to begin is by extracting insights from your daily experiences. To accomplish this, schedule time for self-reflection at the conclusion of each day. Try to recall every key incident in as much detail as possible. Specifically, look for anything you did that worked particularly well or poorly. This will advise you on what to do and what to avoid in the future.
Self-led learning can help identify success techniques, in addition to books, films, and audio recordings. Seek out successful autobiographies and how-to books, such as Napoleon Hill's classic Think and Grow Rich.
When you read successful people's advice, you're bound to ask questions. So, why not ask those questions to someone who can provide helpful answers? Here's a surprising approach: Invite someone you deem wealthy and successful out to dinner. Yes, that means you must pay the bill, which could be costly. However, you can justify the cost by spending your time well and asking questions about ways to boost your earnings.
The more time spent around successful individuals, the better. So, consider attending presentations or seminars to watch the behavior of people you respect. Pay special attention to little actions, such as how a businesswoman shakes hands. If you can discover habits that successful people have, you can use them in your own life.
Whatever way you use to collect wisdom, it is worth investing some time and money. Set aside 30 minutes per day for learning, as well as a small percentage of your monthly salary. Why? You may invest the information you gain in your future, and a few dollars here and there quickly build up.
3. Remove obstacles to your personal development and boost your value.
How many times have you said to yourself, "It's impossible for me to be on time; it's just who I am?" "Or "I can't help being a messy person."
As prevalent as these sentiments are, they lower our self-esteem and make us believe that we are unable to alter our innate impulses. However, one of the few things you have control over is yourself. And by bettering yourself, you raise your worth as an employee, friend, or spouse.
Unfortunately, many people seek ways to improve their surroundings while ignoring the responsibility of improving themselves. For example, to get a raise, you could talk with your boss or go on strike. However, these strategies can only take you so far, and you'll soon be looking for another raise. What if, instead, you added value to the organization through increased productivity, improved performance, and new skills? This would make your manager want to increase your income. Even better, the abilities you'll learn in the process may be useful long beyond your current position.
To begin raising your value, focus on removing impediments to your own development.
Procrastination is one of the most detrimental hurdles. After all, self-improvement is about making and attaining objectives for yourself, yet it's all too tempting to postpone the most difficult portions of getting there until later. And because you delay so much, you quickly fall behind on your plans.
Other hurdles to self-improvement include blaming others and making excuses. When anything goes wrong, it is much easier to blame someone else than to admit that the fault is inside yourself. However, doing so stifles your personal growth. After all, if the failures you encounter aren't your fault, there's no incentive to accept responsibility and ensure they don't occur again.
When it comes to self-improvement, keep in mind that it's generally best to take things slowly. Assume you wish to start being more punctual; for example, set your alarm a few minutes earlier each day. Before you know it, you'll be able to have a leisurely breakfast without rushing out the door!
Try tackling these modest challenges in whatever area you desire to improve. Your triumphs will motivate you to work even harder and overcome even larger challenges.
4. You will become happier and wealthier by changing your attitude toward taxes and following the 70/30 rule.
Most people associate taxes with unpleasant images: filling out countless forms, calculating expenses and deductions, and the feeling of losing a significant portion of their income. Worse, taxes frequently feel like an injustice. You may ask yourself, "Why shouldn't I be able to keep all of my hard-earned money?"
At the start of his career, the author asked himself the same question. However, his mentor, Earl Shoaff, encouraged him to become a joyful taxpayer. Why? Because, he contended, your attitude toward money is as essential as how you spend it. A more optimistic approach can make you feel less frustrated and more in charge of your finances, eliminating the need to despise the government for stealing your money.
To adopt this perspective, consider paying taxes as a means to contribute to society and assist the government in improving everyone's quality of life. By paying a portion of your income in taxes, you contribute to society, assist the government in improving everyone's quality of life, and are granted protection, freedom, and opportunity.
Are you ready to take this mindset adjustment to the next level? Look at the positive side of all your expenses! For example, every time you buy something, you put money into circulation and contribute to the economy. And paying your invoices reduces your obligations and responsibilities.
Once you're comfortable paying your taxes, you can focus on your net income. Here, you should follow the 70/30 rule.
The principle is simple. Rent, food, and entertainment might account for up to 70 percent of your monthly income. But, before you spend any of that money, divide the remaining 30% as follows:.
First, donate 10% of your money to charity to give back to your community and assist those in need. Then, put another 10% into savings so that you can build money over time.
Finally, allocate the remaining 10% to wealth creation. There are classic approaches to this, such as investing in real estate. However, there are alternative options, such as monetizing a hobby.
By following the 70/30 rule and having a more optimistic mindset, you will no longer be afraid to part with your hard-earned money.
5. Make the best use of your time by carefully planning ahead.
What is your strategy for balancing work and life? Are you a drifter, someone who is unconcerned about time constraints and will only take on transitory jobs? Or are you a workaholic, devoting every waking second to your job? Maybe you're in the center, working nine to five but refusing to take on tasks with longer time commitments.
As you may expect, neither of these options is optimal. You don't have to pick between success with a heavy schedule and mediocrity with ample time to rest. In truth, you need to make time for every element of your life—working hard, spending time with family, and even doing nothing. When you commit too much time to one of these areas, your lifestyle becomes unbalanced, which is unsustainable in the long run.
Take a salesperson who decides to start his own firm. He gets his business off the ground, but before long, he learns that he spends considerably more time at the office as a CEO than he ever did as an employee. He arrives at work earlier and leaves later than even the janitors. Soon, he realizes that owning his own firm isn’t worth it and goes back to a regular job.
How can you ensure that you maintain a balanced and efficient use of your time? Getting and staying organized is crucial. Start by creating a project book or a binder with tabs inside. This simple application will allow you to keep crucial information all in one place, so you’re not wasting hours looking for the document you need.
You can utilize your project book in whatever way suits you best. If you work with people, for example, you can create a tab for each person and write information about their performance, skills and shortcomings, or family background. Then, you can refer to it whenever you need it, such as during performance reviews.
Another crucial time management method is planning each day before it begins. How will you ensure that your time is balanced and you’re on track to achieve your deadlines if you have no master plan to refer to? This is why you need a calendar with lots of space to put out your schedule for each day of the week. Be sure to leave room for some “do nothing” time each day!
It takes great discipline to stay organized and keep to a schedule every day, especially if you’re used to a more careless time management technique. But if you put in the work, you’ll find that you don’t need to sacrifice any element of your life in favor of another.
6. Be sure to spend your time with the proper individuals.
Let’s face it: our friends tend to influence us, whether or not we recognize it. If you are around people who are irresponsible with their money, for example, you can find yourself spending frivolously as well. Or if your buddies go out to see sports matches every weekend, odds are you’ll end up tagging along.
Those possibilities might not sound so horrible, but what if your buddies have habits that are more damaging than these? In that situation, you can wind up adopting comparable hazardous practices. For instance, if you surround yourself with liars and cheaters, you can tend to regard their behaviors as the norm. And before you know it, you can find yourself lying and cheating too.
It’s hard to recognize that our buddies could be terrible influences. But if you’re honest with yourself, you can deal with these relationships before they do any significant damage.
Start by thinking about the important connections in your life, and ask yourself a few fundamental questions: With whom do you spend your time? What are they doing to you? Are these associations good for you? Be honest, and don’t ignore the enormous influence your friends and acquaintances may have on you.
If you’ve answered these questions and discovered some less-than-stellar relationships in your life, you’ll need to make some tough choices about how to proceed.
If you’re dealing with damaging people, one alternative is to totally disengage from them. Or, if that’s impossible, consider limiting association—spending as little time with them as possible. While you’re doing that, you should also make sure you aren’t spending excessive time on casual relationships that aren’t providing anything useful to your life. While you might enjoy spending a few nights a week at the pub with your buddies, for example, this habit takes away your time.
After you’ve eliminated the problematic relationships from your life, the next stage is to make the most of the favorable ties. Here, you want to have a broader association. That means spending more time with people who are disciplined and determined to succeed—anyone whose thinking will affect you favorably.
To extend your circle, engage in your community. By joining a committee, for example, you can potentially receive invitations to play tennis with influential individuals in your city.
7. Learn how to remain pleased regardless of the amount of your bank account.
We often hear stories of ultra-rich celebrities and corporate people who are extremely unhappy despite their fortune. How is that conceivable when they’ve achieved the peak of success? Unfortunately, although these people have gained great wealth, they have never learned how to be pleased with what they have.
While many people already agree with the cliche that “money can’t buy happiness,” they nevertheless expect that more money will make them more confident, charismatic, and kind. But in truth, money can change neither your character nor your contentment with life. If you’re dissatisfied and insecure now, chances are those attributes won’t magically disappear if you become affluent.
For instance, picture someone who tends to drink too much during social occasions. What would happen if the person’s fortune increased? He wouldn’t just stop drinking. Likely, the increased money would merely allow him to buy endless amounts of alcohol, exacerbating his problem.
Fortunately, there’s a bright aspect to this theory. If you build a fulfilling lifestyle now, it will continue with you regardless of the size of your bank account. And a strong method to boost your fulfillment is by converting to a two-quarter perspective.
To demonstrate this style of thinking, the author’s guru once instructed him to envision getting his shoes shined. The person offering the shine has done a wonderful job, and now you must pick what to tip him: one quarter or two. Which one will help you feel better in the long run?
If you tip one quarter, you’ll save money, but you’ll probably end up feeling like a bit of a scrooge afterward. By being generous and tipping two-quarters, however, you’ll feel affluent and confident.
A man who attended one of the author’s lectures was inspired by the idea of opting for charity over stinginess. In the past, whenever his children begged him for money to buy concert tickets, he would either say no or give in very reluctantly. He maintained a negative attitude. However, following the lecture, he decided to surprise his daughters with tickets to see their favorite group. This compassionate two-quarter decision ended up benefiting both the girls and their father, who was pleased to watch his children’s joy and enthusiasm.
So, adopt a two-quarter perspective, and you can feel rich without necessarily being rich. And if you decide to start being more charitable now, just think of all the good you’ll be able to create when you’re wealthy and more successful.
Final Summary
Wealth and pleasure don’t emerge out of nowhere; getting them demands careful discipline and forethought. However, once you’ve put in the effort required to start attaining your goals, you’ll reap the rewards for the rest of your life.
Actionable advice:
Create a game plan. To make good use of your time and move your goals forward each week, prepare a game plan in advance. First, find a sheet of graph paper. Create vertical columns for the days your plan will cover, and then create a heading on the left labeled "activities." List everything you need to do on those days. Determine and plot each task's deadline on the sheet. Then determine how many days it will take to complete the task and schedule those days. Your game plan will then be ready for action, and sticking to it will be all that is required to achieve success!