Giving Your Money the Gift of Momentum

Remember setting up domino chains when you were a kid?:

 

I think artistic people understand more than others what these falling dominoes can represent. One positive result leads to another: an artist is shown in a gallery in Los Angeles, and a dealer in New York sees the show. That leads to a second show in Manhattan. An actor scores a part in a play that’s attended by a big producer. The actor’s next role is a small part in a motion picture.

I attached this video because even when all doesn’t go exactly according to plan (they had to roll the marble twice AND there was a break in the chain at one point), there are still positive results!

We tend to forget that one good result has a tendency to create another.

It’s the same with our financial situations, isn’t it? Successful people are far down the domino chain:

– Donald Trump began investing in real estate (actually individual houses) with his dad at a young age. He learned the ground rules early, which led to a focus on bigger properties and ultimately, his current real estate empire.

– Warren Buffet invested in stocks as a boy. He tracked the numbers behind public company financial results. Today he can quickly evaluate a company’s business prospects and make buy/sell decisions that beat those of nearly any other investor.

– Steve Jobs enrolled in a calligraphy class. It’s said that his attention to shapes and lines helped fuel his love of character and style in equipment, which made Apple the sexiest tech company of all.

On a smaller level, here’s what I’ve witnessed with clients:

– One young client began stuffing money into his 401k at 22 years old. He could barely afford to do anything else, but he stuck to his savings plan and squirreled cash. Now, at age 28, he already has $160,000 saved toward retirement. If that money grows at a 8% rate, it’ll be around $2.56 million dollars at retirement. …and that’s if he doesn’t save another dime.

Unfortunately, that’s not the only type of domino chain. Momentum can also be your biggest enemy.

When my daughter is frustrated by something going poorly, I sometimes have to remind her that it was her initial action that created her frustration.

She can’t find her favorite watch. If she’d spend only five minutes in the morning making her bed and picking up her clothes (or even hanging them up the moment she takes them off), she wouldn’t wonder where her things are in “the pile.”

The printer isn’t working right, and it’s the evening before her essay is due. If she’d checked her resources earlier, rather than waiting till the last minute, she might have known that there was a tech malfunction and she’d have been able to find other means to get the job done.

If you’re going to find a way to financial abundance, you have to know ahead of time that negative momentum will stand in your way:

– Credit card bills might become so high that paying only the interest is a chore. No matter how much you send it seems like the principle stays the same…and when you just start to get it lower, something happens that forces you to use the card.

– Student loan payments are so high you to take on a second job. The new work is so exhausting that you fall asleep at your real job, and the boss notices. At best you’re denied promotions and raises. At worst, you’re fired.

– There’s no money for car repairs. Your ride breaks down on the way to an audition. You lose out on a part that was perfect, if things had gone right.

Are any of these familiar? Does it sometimes seem like life gets in your way at every corner?

Remember two concepts about momentum in your life:

1)    Momentum itself is neither good nor bad; it just exists. It’s Newton’s Law: a body in motion tends to stay in motion. This means that it will be a battle to create the friction necessary to stop negative momentum. You’ll exert a ton of effort to turn negative events around, but once you do, momentum works in your favor.

Remember this on the days that you’re ready to give up: stopping negative momentum is a huge challenge, but once you do, life is going to be much, much easier….

Because…..

2)    Once you have positive momentum, if you work equally as hard, it’ll continue. Every good result will be amplified. As your momentum rolls, you’ll find a widening array of opportunities you never would have imagined. One good domino and create the wave that topples many, many more. Have you ever wondered how top actors seem to attract the best scripts? Why Warren Buffet can have a hand in so many companies? Their secret is simple, and it’s the same one in front of you now:

They built momentum by toppling one domino.

2012-10-18T09:00:29+00:00