| | |||||||
| Steve Pavlina Discuss ideas, articles, and podcasts from StevePavlina.com. New threads are automatically generated for Steve's latest blog posts. |
| | Thread Tools | Display Modes |
| | #3 (permalink) |
| Banned Join Date: Apr 2007 Location: Inside the Container
Posts: 1,543
|
Steve, this is a gem...... "Remember that money is social debt. The size of your bank account is a measure of how much society owes you for the value you’ve already contributed. If you think $10K is a large sum, it means you probably aren’t in a position to generate $10K of value for others very easily. If you can dump that unhealthy mindset, you can open yourself to generating far more value in much less time. When I started thinking of $10K as a small sum, I soon found it very easy to earn $10K. Earning $10K is about as difficult as making a sandwich" This is very good advice. 1. To make the big money you have to make the big social contribution and 2. Stop seeing large amounts of money as large amounts. How can anyone seriously expect to make $1M when they 'think' it's a large amount. As soon as you 'think' it's a large amount, it is and then all your limiting beliefs support that the amount is large and will be difficult to manifest. We should observe that it isn't a large amount and that it was easy to manifest, then it will be. Well stated SP! Max |
| | |
| | #4 (permalink) |
| Banned Join Date: Nov 2006
Posts: 22,520
|
I enjoyed your article. Just as an aside, regarding: "Fretting over pennies probably seems foolish to you. Similarly, to those who are capable of generating massive value (and being paid accordingly), fretting over $10K is equally foolish. People who can spend $10K on a hotel room know that $10K is not a lot of money." --- The extraordinarly wealthy individuals I work with squeeze nickels till the buffalo bellows. I didn't really know what penny pinching was until I saw how cautious these folks are with even very small amounts of money. Although they are generating what seem to me to be exhorbitant incomes, I carelessly throw my money away compared to my bosses. |
| | |
| | #6 (permalink) |
| Junior Member Join Date: Jul 2007
Posts: 2
|
I really don't see the need for anyone to have a hotel room that costs $10K while there are people who don't even have a blanket. A $1K hotel room surely provides an effective environment for sitting and thinking abundantly. Perhaps that explains the well off people who watch their small amounts of money? Although they have a relatively large amount of money, they haven't lost sight of the absolute value of their money. If the $10K room makes a tiny difference to the occupant, why not take the $1K room for a hardly noticeable difference, and use the remaining $9K to make a massive difference to those people on the planet for whom nickels are big money? Following Steve's logic, this would increase the "debt" owed to the occupant of the hotel room and thereby bring him further riches! Last edited by Tim Graham; 07-27-2007 at 01:16 AM. |
| | |
| | #7 (permalink) | |
| Banned Join Date: Apr 2007 Location: Quebec, Canada
Posts: 3,811
| Quote:
You might help someone temporarily by giving him money... but you can help him for the rest of his life if you give him information.... That is what Steve is trying to do here... the $10K room is just an analogy... but, it is not were the message is at... . | |
| | |
| | #8 (permalink) | |
| Family Member Join Date: Jan 2007 Location: Charlotte, NC
Posts: 1,800
| Quote:
Thanks for lots to think about (and act on), Steve. | |
| | |
| | #9 (permalink) |
| Senior Member Join Date: Jun 2007
Posts: 120
|
The basic ethos behind both articles is fine. It's rather like the podcast where Steve talks about carrying more money on his person to be more in line with the mindset of wealthier people who carry more money. The $10K hotel room isn't a great example as it strays into the perception of value rather than measurable value. I wouldn't stay in a $100 hotel room either - I have my own idea about hotel price/quality balance. Same with $30 shoes. I'm sure others do too. The problem with communicating the ideas in the articles, is that readers will get bogged down with value, perceived value and waste. They'll ask if it's worth spending 10 times as much just to get something 10% better. Also it encourages the concepts of 'good' spending (e.g. having a $100 hotel room and giving the $9900 to restore sight in 3rd world countries). And 'bad' spending - spending $10k on a hotel room where the staff are better dressed. There really do exist things that are a waste of money. I think the ethos of the articles is fine but the analogies make it difficult for people to get past accepting the basic message and the law of diminishing return. |
| | |
| | #10 (permalink) | |
| Family Member Join Date: Oct 2006 Location: San Rafael, CA
Posts: 4,896
| Quote:
I don't see the virtue in trying to trick yourself into thinking that its not a large amount. I bought some domains a couple nights ago that have a striking similarity in size and etymology to a couple other high value, high traffic sites. How much do you think I can sell them for once they are developed and bringing high traffic? I think $5M is a lot of money. I also think $20M is a lot of money. Does that mean that I have to believe that its hard to sell a company for those amounts? No. Its definitely not hard to sell a company for those amounts. Its done every week. Youtube sold for $1,900 million ($1.9B), and they were far from profitable. *shrugs* Get it? It doesn't mean you have to buy a Porsche to "get in the right mindset." I think the right mindset is realizing that you are so happy with your life already that very little would change, even if you had $5M, or $20M. | |
| | |
| | #11 (permalink) | |||||
| Banned Join Date: Apr 2007 Location: Inside the Container
Posts: 1,543
| Quote:
Quote:
Quote:
Quote:
Quote:
I'm saying that big money will always be hard to make as long as you see the size of it as unreachable, I think that's Steve's point and I agree. I'm not sure I know what your point is??? I think the important point is to be happy as if your life is rignt, right now, wandering around seeing lack creates lack in money and everything. Max | |||||
| | |
| | #12 (permalink) | |
| Family Member Join Date: Oct 2006 Location: San Rafael, CA
Posts: 4,896
| I only quoted you at the top of my post, inside the quote brackets. You might want to reread if you are unclear. Quote:
These are the facts:
Because of those circumstances it seems to me that an ethical imperative arises, one that can be solved by the following process:
Steve is saying that if you live with this kind of philosophy you won't be as efficient in earning money, because in order to have a mindset of abundance you need the capacity to be able to see large amounts of money as being very small. He's also saying that its counterproductive to "feel outraged" over how someone else spends their money. I'm saying that you would actually be more effective in earning money with this philosophy, because the knowledge that $50 can save a life should give you a huge incentive to both earn more money but also to not spend money frivolously. Anyway, its an interesting debate, and I'm honestly not sure which is right. But Steve makes more than me for now, so I'll probably conceed until I sell a website or two. | |
| | |
| | #13 (permalink) |
| Senior Member Join Date: Jan 2007 Location: Ohio
Posts: 376
|
I can see where Steve is coming from by mentioning that holding onto a belief that achieving something is hard will make it hard. But I dont agree with the view that rich people live an expensive lifestyle because they think about the value they can offer. People drive porsches or wear expensive designer wear or rent 10k hotel rooms to enjoy the value that we as society place on items since we tend to comapare value with money to understand it. So when people rent a 10k dollar hotel room its because they expect and know that will give them special services (totally different from a 100$ room) and status quo and boost to their ego. Driving a porsche will be comfortable than driving other cars and it also gives them a social value. There are so many expensive designer wears which are made with the same materials as a normal clothing but just adding the tag "Gucci" or "____" makes it expensive. So this is because of the value that we as a society give to those products and people use them to enjoy that value. Do you think Donald Trump would rent a 10k room and expect to be treated like a person reting a 1k room?? So my point is that people spend so much money to enjoy that value and comfort. To generate the money to own a porsche, one would have invested and/or contributed their time and value/effort. They would have also helped others directly or indirectly. So I think its a fair deal. Using that extra money to help poor people is also good. So it all comes down to individual perspective...... |
| | |
| | #15 (permalink) | |
| Member Join Date: Nov 2006
Posts: 51
|
Steve, I like your blog but I see you becoming too "Americanized" with your posts lately. In your Quality Contribution post you said "Ultimately the physical stuff in your life is a reflection of your life’s inner quality, not the cause of it." Is "stuff" really that important? I'm wondering if you've set foot outside the US to see how other people live. What Developing Nations Can Teach Us About Personal Finance ∞ Get Rich Slowly Quote:
Do you honestly think you are contributing more to the world than them because of your income? | |
| | |
| | #19 (permalink) | |
| Family Member Join Date: Oct 2006 Location: San Rafael, CA
Posts: 4,896
| Quote:
Those under the age of 18 were the most likely to be impoverished. In 2001 the poverty rate for minors in the United States was the highest in the industrialized world, with 14.8% of all minors and 30% of African American minors living below the poverty threshold. Additionally, the standard of living for those in the bottom 10% was lower in the U.S. than in any other developed nation except the United Kingdom, which had the lowest standard of living for impoverished children. In 2006, poverty rate for minors in the United States was 21.9% - highest child poverty rate in the developed world. Shamou, our generation isn't exactly set up for success. I'm not sure you fully grasp that, and to what extent. What service do you propose a typical eighteen year old right out of high school should provide? (of the 70% who graduate high school) | |
| | |
| | #20 (permalink) |
| Family Member Join Date: Dec 2006
Posts: 1,629
|
Though the hotel was just an example to get the point across, I thought it’d be interesting to actually look at some of the hotels in that price range and see what was said about the people who make use of them: “According to the hotels on our list, the majority of the clients who book their top rooms are wealthy families in the middle of remodeling their homes, film companies and corporations. Of course, there are always stories of the random sheik, deposed dictator or pop star who stays in a $10,000 hotel room--for a month or two--but they are the exceptions. “In fact, as with all hotels, there is plenty of bargaining room (no pun intended). The family looking to spend a month or so will usually be able to negotiate a lower price, and companies can save by using a corporate rate. The numbers of people who actually pay full freight are rare. Billionaires also didn't get where they are by being suckers. “So what exactly do you get when you're spending between $5,000 and $25,000 for a hotel room, which is the range of our list? Space is the most obvious. All of the rooms on the list are huge, averaging more than 5,000 square feet, and that is not counting terraces and balconies--and the occasional private cinema. The other amenity is service. Most of these hotel rooms come with a personal butler or a chauffeured Rolls-Royce at your disposal. Those that do not have a butler or assistant on hand have an implied "anything you want" rule.” The World's Most Expensive Hotel Rooms - Forbes.com I wonder if someone would take the billionaire’s bargaining for a lower price as sign of a lack mentality. When I worked in sales I saw 100 grand per year as minimum wage, and if something caught my interest and cost less than a few hundred dollars or so I didn’t give buying it a second thought. Later on I decided being more conscious about how I spent my money may be more beneficial, and thus I’ve become more like the frugal billionaires, focusing my energy on what I see to be of genuine value. With my change in focus I'm now semi-retired. I don't have to work any more than I want to, and I can focus my time on whatever I see as most valuable, not necessarily what will pay the most. Looking at an old dreamboard from a few years ago when I read a lot of Randy Gage I see a $150,000 turbine motorcycle, a Maybach, Porsche Carrera, Learjet, and so on. At this point I no longer see those as helping me achieve my goals. I value experiences over possessions which would need to be cared for. Right now I’m being offered a sports car as a gift, under the condition that I never sell it. I’m seriously not sure if I want it, even though it’s an incredible car. So far I feel freer the fewer possessions I have, as I gradually clean things out and focus on the essentials (good books, health, and friends). Last edited by openeyes; 07-27-2007 at 05:15 PM. |
| | |
| | #21 (permalink) | ||
| Member Join Date: Nov 2006
Posts: 51
| Quote:
My point is that it is extremely dangerous and egotistical to think that because you are earning more money than the next person, you are contributing more to society. It is also foolish to think that owning more possessions will make you happier. Warren Buffet understands this. As humans we'd like to think that we're always in control but that's not the case. Some of your life does come down to "luck." Quote:
openeyes makes a good point. I recently read "The Millionaire Next Door." It is a study of America's millionaires. The authors found that it is not the millionaires who spend lavishly on expensive hotel rooms, cars and houses. Instead it is the people who can't afford it but want to look like they can. Most millionaires got to that point by wasting as little money as possible. | ||
| | |
| | #22 (permalink) |
| Junior Member Join Date: Jul 2007
Posts: 1
|
I think it's interesting Steve is coming at this after becoming wealthy and then pushing the concept as universal. Let me put this another way, it doesn't appear to me that following the "outrage script" happened to handicap his progress up to now? So I'd like to point out that I actually agree with some of the intent, but perhaps Steve just presented it poorly The merit is in pointing out quality, although quality is subjective and depends on the person. For example, when I think of quality I think of characteristics such as durability, ease/effort of use, fit and finish, non-toxic, environmental impact, social impact. Unfortunately people may be conditioned to purchasing the cheapest thing, the most expensive thing, or the recommended thing, etc... regardless of the actual quality. It's very difficult for the average joe to be truly informed to make such decisions for everything in their lives, me included of course. Often you just do the best you can. Perhaps when you've got mega-bucks it's cheaper (a time spent / earning power business decision) to buy the most expensive thing because there is the mindset that dollars buy quality. At the other extreme you buy cheap knowing the quality may not be there thinking you can't afford something better. How does personal development fit in here, well: - we should be mindful of ourselves and the world around us. Destroying the environment is counter-intuitive and should therefore be part of my quality characteristics. Eating animal based foods is bad for the environment, cruel to the animals, and often a poor choice for health - regardless of the taste it still goes to quality in my books. You get the picture. We're all on a journey here so these characteristics will change over time. - we should have better control over ourselves and real needs versus unnecessary wants. This is the real freedom right here. - not fool yourself into thinking that additional dollars over the optimal quality product/service is giving you anything more than satisfaction of spending your money. Which, if you consider the above points wouldn't happen. - we should be teaching others about quality and self control. Unfortunately for the most powerful country in the world the US appears to be teaching rampant uncontrolled consumerism. - we don't have unlimited time, so you do your best Tying it back to Steve's blog entries, yes spending money on quality products and services makes a lot of sense because the cheapest things often are worse for a variety of reasons, but the most expensive items are often sub-optimal too. Certainly at every point on the poor-to-wealthy spectrum you should consider where to put your time and money. That shouldn't excuse you from being mindful of the world around. Note there are exceptions here and that's for people in serious distress where they are in survival mode (dangerous environments like Iraq, starving, lost your job - have to feed the family, etc...). For most people reading this blog - that's not you. And, of course no one wants to hear this stuff because we'd all like to be making good decisions. We don't. The best we can hope for is we're enlighted, reflect, and 5 years down the track can recognise we're making better decisions than in the past. Oh, and if I find I actually need something, then I try to find the quality fit and buy it. If I can't afford it, I keep working. There is no script. If anything I have trouble buying something that doesn't fit to the above but is necessary for other reasons. e.g. can't find an optimal fit, work requirement, etc... Last edited by nimm; 07-27-2007 at 06:30 PM. |
| | |
| | #23 (permalink) |
| Senior Member Join Date: Jun 2007
Posts: 101
|
I thought this was a wonderful post, but this post and previous ones from Steve on the abundance mindset make a question arise in my mind: If, say, one million dollars is not a lot to you, won't you be left wanting more, more, more, just as you do when you have $100? For example, I think $100k is a medium amount of money -- I could make that easily as a freelance writer if I were willing to put in 40 hours a week (right now I come fairly close to that amount but work only part-time), but my goal is always to make more than I do in less time. It seems that with the abundance mindset as Steve describes it, even a million dollars can be a less-than-satisfactory amount. If I get used to having $1000 in my wallet instead of $100, that amount soon becomes commonplace and feels like no big deal -- which means it will take even more for me to feel excited or even satisfied. Does that make sense? Edited to say that I agree that people shouldn't be outraged at what other people spend. Some professionals in an online group I belong to were complaining that a certain celeb had spant $50k on a wedding gown, which they insisted could feel a starving African family for years. My view: I spent $200 on my wedding gown, and to some people even THAT would seem extravagant. Where do you draw the line? Also, you need to keep in mind that those celebs probably donate more to charity every year than I earn annually. Last edited by FreelanceWanderer; 07-27-2007 at 06:43 PM. |
| | |
| | #24 (permalink) | |
| Member Join Date: Nov 2006
Posts: 51
| Quote:
I have a followup question along these lines. If we all agree that too much scarcity is a bad thing, wouldn't too much abundance also be bad? | |
| | |
| | #25 (permalink) |
| Junior Member Join Date: Jun 2007
Posts: 3
|
Man, Somehow you seem to think against the fundamental economic rules. I mean, what is more valuable than, let's think, farming. They produce what we eat, which is #1 in our demand and will always be. But, I don't think that farmers will spend 10k on a hotel room. They have one single limitation: Nature. They can't just plant and gather it right away. There are good points on your thoughts but, as economy and society is built today, what you preach will never happen to everyone, even if they all follow your thoughts, because there will always be poor and rich. One only exist because the other Best regards, Bruno. |
| | |
| | #26 (permalink) |
| Junior Member Join Date: Jun 2007
Posts: 10
|
We all can make a “better use of money” case for any non-essential-purchases, but personally, I find it much easier to make that case for YOUR purchases. I’m not buying into Steve’s statement that “ultimately the physical stuff in your life is a reflection of your life’s inner quality, not the cause of it.” I agree with the “not the cause” part, but I don’t think the physical stuff and your life’s inner quality are inter-related. I mean, drug lords, crooked politicians and child pornographers may have pretty cool stuff, but I have real issues with respect to their “inner quality”. I believe that the money we get is a direct result of the “perceived” value (as opposed to “absolute” value) of the goods or services that we provide. That’s why rock stars, athletes and supermodels get paid more than teachers, social workers and the folks working on a cure for cancer. If you’re a teacher and you want to get paid more, figure out a way for it to be of more value to more people. Isn’t that essentially what Steve has done? For me the benefit in Steve’s posting was in my realization that there is a trap in worrying about how other people spend their money and making judgments about them as a result. Bill Gates will probably give away more money to charities in his life than I will make (yeah, yeah, I know…..another limiting belief on my part!) So if he wants to keep da Vinci’s sketchpad on the coffee table of his underground lair, who am I to say he should have spent the money elsewhere. It becomes a useless waste of my energy. I also see the value in adopting a mental attitude that it is easy to make a large amount of money quickly vs. believing that it can’t be done. Hopefully, people will make purchases that don’t hurt other people. If we do that and then once in awhile, we help someone who could use help, I think we’ll be okay. |
| | |
| | #27 (permalink) |
| Junior Member Join Date: Jul 2007
Posts: 5
|
I think, an organized, fisical and emotionaly healthy, perason; with an average normal healthy personal history; will be educated, entusiast worker and will earn a nice income, and will be expend with care. So he/she would look nice, well groomed and "balanced". As opposed to an aragan or a pearson that doesn't care about himself and doesn't work. In the first case, I think, "Ultimately the physical stuff in your life is a reflection of your life’s inner quality, not the cause of it."; but not that if you buy a Porche it *necesarly* means that you life inner quality is better than if you drive a respected Camry. --- I think that not becoming a poor is something obviouly good, for you and for the poor. But I think it is not good if it is for using it as an escuse for not doing anything else. |
| | |
| | #28 (permalink) |
| Junior Member Join Date: Dec 2006 Location: ooo ss ahh
Posts: 20
|
Guess that military-industrial complex should be thanked for their massive value contribution to the world at-large. It thrives nicely within Subjective Reality. I doubt the soldiers get to stay in those 10K rooms, huh. What if some of those additional employees at the hotels were selling timeshares in the lobby? Would they be called out by the wealthy patrons and psychically shaken by the collar for not contributing enough? What would happen to global inflation if suddenly 50% of this site's readers became multi-millionaires? I suggest more would die, as death usually accompanies inflation. So ultimately the million dollar project leading to death and destruction among the fleshy mortals. I wonder if PavlinaLLC.rip will have an ether donate button. I bet it will. |
| | |
| | #29 (permalink) |
| Junior Member Join Date: Jul 2007 Location: Oregon
Posts: 2
|
Because if $10k is small to someone, they have MILLION$ to go out and give away. Just look at Bill Gates. A few hundred million sounds like a lot to give to a foundation, but in reality, someone who gives 10% is severely out-giving Bill in relative terms. Especially since it's easier to live on 90% of 10-Billion than 90% of 50-Thousand. So... Give now, think big, and don't limit yourself either in "getting" or "giving"? |
| | |
| | #30 (permalink) |
| Senior Member Join Date: Nov 2006
Posts: 513
|
Anyone here work for Saturn? I saw their new? commercial today. Obviously, they have no idea that by thinking that way they are limiting their growth and potential contribution to human society. The commercial says something to the sort that being rich does not mean you have to waste. Rethink excess. Sorry. I think it’s funny. |
| | |
| Bookmarks |
« Previous Thread
|
Next Thread »
| Thread Tools | |
| Display Modes | |
| |
| | ||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| The questions you should ask yourself before you make a post on your blog | Vahid | Technology & Technical Skills | 10 | 02-16-2008 04:51 AM |
| Making money with a blog website | ginkgo | Business & Financial | 5 | 08-13-2007 07:05 AM |
| The Abundance Mindset | ejamesw | Steve Pavlina | 2 | 04-04-2007 05:07 AM |
| How much time did you spend on research before you started your blog? | Rene | Business & Financial | 6 | 02-11-2007 02:52 PM |
| The Dark Side of Financial Abundance (Blog) | Savage | Steve Pavlina | 14 | 01-18-2007 11:37 PM |
All times are GMT. The time now is 03:13 AM.




