Creating Wealth Pt 2

Hi Myron here. I trust that you enjoyed the first video. This is part two of a three part video series on creating wealth. And what I'd like to ask you to do is again, I'm going to ask you to ask any questions in the comment section at the bottom of this YouTube video. And I'm going to ask you to like it. I'm going to ask you to share it. You can even repost it. You can embed it in your blog. You can take this very video and embed it in your Facebook page and you can repost it anywhere you want to online and share this content with all of your friends. And if you've got a business with all of your teammates, or if you're a financial advisor or one of those financial people, you can share it with whoever. If you're a business coach, feel free to post this video and repost it anywhere. Alright, so here's part two on the creating wealth. The first part we talked about was valuing time more than we valued money. And the reason that's important is because that's what we need to understand. See, we need to understand the difference between.

Cost and value.

And I heard it said, and I don't remember who said it or I would tell you I'm not going to take credit for their work, but I heard it said that poor people know the cost of everything and the value of nothing. Rich people know the value of everything and the cost of nothing. And I say everything, I don't mean everything, but I'm talking about items, things that we spend money for. And what you've got to do is you've got to become less cost focused and more value focused if you're going to create wealth. Because I'm going to tell you there are two ways to create wealth. And I'm going to share with you what those two ways are. And then in the third video, I'm going to show you how to capitalize on those three ways. So here's the deal. So I want you to focus more on value than you do on cost. So here's how the wealth creation formula works. If you want to create wealth, there are two ways to do it. You can either do HVA times LVO equals W or you can do LVA VA times HVO equals W. Now those are the two wealth formulas. I'm going to tell you what they stand for in a second. But understand that it doesn't matter if we're talking about Bill Gates, if we're talking about Steve Jobs, if we're talking about Sam Walton, if we're talking about Michael Dell, if we're talking about Mark Zuckerberg. The reason these people are able to create massive amounts of wealth in a very short period of time, Donald Trump, the folks from Shark Tank, is because they are applying one of these two formulas or both of them. Now what do they stand for? Well, HVA stands for high.

Value.

High value times low volume.

So you can either have a high value product and you sell a few of them. For instance, you may sell airplanes. People who sell airplanes for a living only need to sell two or three of them a year and they make a very, very good living. So high value times low volume equals wealth. You can have a product that you sell that's a higher priced product and then sell fewer of them and make a lot of money. That's high value times low volume. Well, when you sell, when they sell those, that's a higher value product. But when you want to get into really high values, you could go to some of these new TV shows they have where they're selling million dollar homes, like million dollar Listings, which is a real estate agent who focus on all of their energy on selling higher end homes because there's more commission in it. These are people who understand high value times low volume. They may not sell as many houses as the person who's selling hundred thousand dollar houses, but they're making more money because it's a higher value. I'm not saying either of these is right or wrong. Sam Walton became the richest man in American history and he did it by the other formula, which is l low volume. I mean, I'm sorry, low.

So he had low value products.

Times high volume. Sam Walton said, I want to make my money on the volume. In fact, he had a motto that he only wanted to make 30% profit on any product that he sold. If he got a better deal buying the product from one of his vendors, he would pass that savings on to his customers. And Sam Walton built the biggest retail chain in the world based on low value, high volume products. Neither is right or wrong. They are just what they are. And you need to pick one. Or you could pick both. You could say, I want to do low value. Look high volume products on the front end and then do high value, low volume products on the back end. If you don't know what that means, you'll learn what that means. As you continue to follow my videos, it'll make more sense to you. So I'm going to do one or two of these or I'M going to do both. And eventually you might get to the point where some of us have gotten, where we've had the ability to do high value products and do high volume on high value products. And that's pretty cool. When you can have a high value product and then sell lots of them, that is a really great place to be. Now, the reason this formula is so important is because this is how you value your time. Instead of just, I'm going to trade an hour of my time for somebody else's $25, I'm going to trade an hour of my time for somebody else's $50, or I'm going to trade an hour of my time for somebody else's hundred dollars. When you figure out how to bring value into the world and you understand the concept of value, it will give you the ability to create more wealth. One of the reasons people don't make much money is because they are doing work in a job that is low value. And I don't mean it's low value, that it's not important. I'm not saying your job is not important. I'm just saying it's only worth what the job pays. It has nothing to do with you or your particular skills. See, you are a genius. You are already worth millions. But the fact is your boss hired you to do a job and that job is only worth $15 an hour, $25 an hour, $45 an hour. Whatever it is you're making, that's a low value proposition. And so you're selling your time to the boss. So. So that while you're at the office, the boss can be at the golf course. And this is just how this works. I'm not attempting to make anybody feel mad at their boss or anything. I'm just telling you this is how it works. Now I'm going to ask you a question as we end this module. And that is, is it easier to get $20 from somebody or is it easier to get $20,000 from somebody? And it's not a trick question. It's easier to get $20. Well, guess what? What if you could figure out something that you could create $20 worth of value for somebody and you do that for 1,000 people, that's $20,000. Instead of trying to fulfill a job that does $20,000, pays $20,000 a year, and now you're trying to get $20,000 out of one person and that person is your employer. Learn how to add more value to more people and you will be able to increase your wealth and buy back the rest of your life. That's why creating wealth is important. So I'm going to ask you again, like the video, leave a comment on the video, ask a question on the video. And if you're seeing part two and you haven't seen part one, there is a link down below this video for part one that's on Facebook and for part three that's on my blog. And you'll be able to access both of those videos as well. And I'm looking forward to seeing you over the top, not from the top, because you deserve the best. I'll see you on the next video.