Why do the Rich keep getting richer? (and How can I?)

Last night’s meeting had more new faces, with attendees of different backgrounds and experiences, eager to freely share ideas and learn form each other.

This month’s first discussion topic started provocatively: “Most of the words I speak in the next 5 minutes will be trivial and can be ignored (but which parts?)”

The World is wildly non-linear, grossly unfair, rampantly imbalanced. There is no equilibrium.

There is always an inbuilt imbalance between cause/result, input/output, effort/reward.

The majority of causes, inputs and efforts have little impact on results, outputs and rewards, BUT a small minority have major, dominant impact.

This is the idea of the “vital few” versus the “trivial many”, also known as Achieving More from Less, the 80/20 Principle, or the Pareto 80/20 rule.

For example:
• 80% of energy/water/materials consumed by less than 20% of the population
• 80% of health care/police resources used by less than 20% of population
• 80% of the world’s wealth held by less than 20% of the population
• Often the imbalance is more than 80/20, but the key is that there is always an imbalance

In property-related terms, analysis would show e.g. 80% of problems are caused by 20% of tenants (or properties).

But it’s not just about trawling through spreadsheets to identify those few: we need to be selective, not exhaustive; to be able to filter out background noise; to be able to see the wood for the trees.

Applying 80/20 Thinking means to find the short-cuts, play to your strengths; aim for excellence in few areas, not just to be satisfactory in many. Focus your efforts where it counts the most.

The most successful people, whether artists, musicians, actors, inventors or landlords, are outstanding at playing to, and focussing on improving those strengths. The most valuable businesses in the World likewise focus their resources on excellence in their core areas. This “success mindset” brings more success.

With the right mindset, it is inevitable that the Rich will only get richer, no matter their starting point.

Epiphany moment: if this is inevitable, and if it “only” takes the right mindset, then anyone can get richer. So the hard part must be in getting the right mindset, right?

A good start is by meeting with like-minded people to share the energy, and get those creative juices flowing. The next Hatfield Property Network Meeting is set for Tuesday 14 June 2016 (2nd Tuesday of the month).

Hatfield Property Meetup – Tuesday 10 May 2016

Why do the Rich keep getting richer?

In this month’s Hatfield Property Meetup at the GNBC, on Tuesday, 10 May 2016, we ask “Why do the Rich keep getting richer?”, and learn that this is inevitable!

How can this be so? Well, it’s because the World is permanently unfair, wildly imbalanced, non-linear, unequal and irregular. Lucky streaks do exist, but people can “make themselves lucky”.

This is just one short discussion topic of the evening, designed to simulate conversation and networking. You don’t have to be a landlord to come along to the meeting, but an interest in property is what this Meetup is all about.

Doors open at 6pm; entry is free for newbies, with a free drink or two, no strings.

The Hatfield Property Meetup is held on the 2nd Tuesday of every month, plus occasional extras**. The emphasis is on “social”, not hard-sell. We have typically three short topics to trigger discussion, not Death-by-Powerpoint presentations, in a cosy conference room instead of a stadium. Did I mention free drinks?

** Extras include networking dinners on the 5th Tuesday of the month (this happens four times in 2016!). Watch this space for details of our first one, on Tuesday 31 May 2016.

The book that changed my life

At last month’s Hatfield Property Meetup at GNBC, we spoke about how the inspirational book “Rich Dad, Poor Dad”, by Robert Kiyosaki has been read by many people who are “into property”, and how it has changed my life and theirs.

Lesson 1 in the book is “the Rich don’t work for money”
• Fear keeps us in the Rat Race – fear of not having money; that everything will be lost
• Confidence and vision let us move to the Fast Track (probably why so many people came to the meeting)

Lesson 2 is about the desparate need for financial literacy
• Schools teach you how to be a good employee
• Income = work for the Boss; Expense = work for the Taxman; Liability = work for the Bank
• KEY: “Assets put money in your pocket”
• Why do the Rich get richer? Why “must” they?- we talk more about this in the next Hatfield Property Meetup, on 10 May 2016.

Attendees were keen to keep applying these and the other lessons from the book to improve their lives, not just in relation to property. They gave some of their favourite boos which changed their lives:

“The Master Key to Riches” by Napoleon Hill
“The One Thing” by Gary Keller
“The Slight Edge” by Jeff Olson
“Attitude” by Skip Ross

Just being reminded of Napoleon Hill made me dig out an rediscover a favourite CD set. I have been playing it again and again in my car all month. Like all classics, even if you’ve read or heard them before, you can still gain inspiration, energy and ideas from another read/replay!

I haven’t read “The One Thing” (yet), but reading reviews of it has triggered one of my topics for this month’s Hatfield Property Meetup (10 May 2016).