Wednesday, April 25, 2012

That's Not Good Enough!

How honest would you say you are?

I have often mentioned the book, "The Millionaire Next Door" which is a study on who the average millionaire in America is and how they came to be successful financially. It's a great eye opener to the idea that living frugally for a little while can pay off big time down the road! The same author took this idea a step further and wrote "The Millionaire Mind." In this book, he only study deca-millionaires, those with at least 10 million dollars, and they had to make at least $750,000 a year for an extended amount of time. This is of course a very very small population - the top quarter of the top one percent earners in America, to be exact.

The author wanted to know what all of these people had in common. What made them so special? He interviewed not only the millionaires themselves, but also their friends, their employees, their neighbors, random people on the see what characteristics these folks possessed. In the end he came up with a list of 38 character traits that came up over and over again in his interviews. He put the traits in order, with number one being the trait that came up every single time, in 100% of the people he studied.

Without exception, he found that all of these super successful people had over-the-top, out of this world, fanatical levels of integrity. These people were known for being honest - not only with their friends, but with those they do business with and even with those they have power over. What really intrigues me is the fact that people who didn't even know these millionaires personally knew their reputation for being honest and were quick to share that information when asked. I guess a good reputation travels fast, too. :)

So does integrity equal success? Is it just a coincidence? Perhaps having integrity doesn't automatically make you successful, but on the other hand...can you be truly successful without it? Something to chew on this morning. :)

Lesson Eight: That's Not Good Enough!

Dave shared the information above in the lesson that we had last night, "That's Not Good Enough!" In this lesson we learned how to get big bargains and how to haggle and deal to get a good price. It's a light and fun lesson filled with practical information that can save ANY person money if they are only willing to do it. :)

In our culture there seems to be a stigma attached to bargaining - especially in big box stores. We see a price, we pay it. It's embarrassing to ask for a deal. (At least for some people.) But this is a really strange way of thinking according to the entire rest of the WORLD. Bartering and haggling is a way of life almost everywhere. And once you get good at it, it can actually be kind of fun. 

One of the points that Dave makes in this lesson is to always be truthful when trying to get a deal - hence the facts about the importance of integrity. Don't try to get a deal by saying your ailing child could really use this if you don't really have an ailing child. :) 

A major takeaway from this lesson is that "Cash is King." Walk into a furniture store or an appliance store with cash in your hands. Make it a point to take it out and count it every once in a while...and watch the sales people follow you around, haha. Having cash is a great bargaining chip, because cash is much to you as to the people who are trying to get it from you. And it also forces you to stick to the price you want and the price you were willing to pay before you walked into the store. (No matter how good of a "deal" something is, it's not really a deal for you if you can't actually afford it.) Story after story was told of how Dave or one of his readers walked out of major businesses getting hundreds of dollars off of their purchase because they were willing to walk away with their cash and find a better deal somewhere else.

And that brings me to another great point - maintain your walkaway power. In other words, do NOT get emotionally attached to an item before you've purchased it. Sales people can smell you a mile away by your body language and tone of voice, and once they know you really want something, you've lost a lot of your bargaining power. While we may only buy a new television set once every 5-10 years or so, these people sell them every day. They know what they're doing, so you should, too. :) Stay cool, and don't talk too much. Silence is powerful. Ask a question and then do a lot of nodding. The less YOU talk, the more THEY talk, and the more they talk, the more likely you are to get a deal. I wish everyone could see this lesson for themselves, haha.

Some of us. :) Yes, we sit around on old couches and watch TV together, because we are awesome.

I love our FPU group, and last night two of our members shared a little Financial Peace "rap" with us that they wrote. Seriously, it was hil-ar-i-ous. I wish I would've gotten it on video! Jeremy and Christina, we still say you should send in a video to Dave! I was going to publish their awesome song, but I think my lyrics are in Eric's car, gosh darn it. Maybe next week. :D

Word to your mutha. 

1 comment:

Heather said...

As always, a great lesson and I'm glad you shared it!! Thanks!


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