LEADERS, UNDERSTAND THE POWER OF LARGER NUMBERS. IT IS THE SIMPLE MATH OF HOW THE RICH GET RICHER, AND YOU CAN DO IT TOO!

LESSON: When making business and personal decisions, do the math to understand that we receive the same rate of return on $100k as we could on $1M. It all is the same if we expand our minds, and if a truly great business decision, more capital will always be available.

Your business and life successes are always a result of your goals, aspirations, and beliefs of what you deserve. There is little to no difference from the man who makes $60k per year to the man who makes $10M per year except their belief that is what they should be making.

I know all the excuses about upbringing, family, opportunities, etc. are false because I had them all in our small rancher in Dayton, Ohio. But as my world grew, I was shocked at how many people had so much money! It made no sense to me. Of course, there are the trust fund babies and lucky jackpots, but I discovered that people who believed they should have way more money than the rest, did, even if they had no more brains or opportunities than the rest of us.

I opened an office in New York City and would take the Newport News, Virginia Airport AirTran flight to LaGuardia, $60 each way, grab a car to Manhattan, do 9 meetings my investment bankers had set up, pay $29 for a martini at Nobu just to say I was in NYC, do 9 more meetings the next day, and catch the 7pm flight back to Newport News, Virginia.

The first thing I would tell our 100-person team when I returned each trip was, “Those people in NYC are clearly not smarter than us but their transactions just have 3 or 6 more zeros behind every deal in Virginia, because that’s just how it works.”

When I previously made a little money and drove down to Nags Head, North Carolina, for a possible little beach house rental investment, I took an unexpected left turn up the North Beach to Corolla and Pine Island which shocked me with what at that time looked like mansions on the ocean. I did the math, and surprisingly I could buy a small rental and make X but if I was able to buy one of these ridiculous homes, and receive the more substantial rent, I would receive a similar net. Not to mention having my family and so many friends also enjoy this miracle property.

I figured out the financing, because the numbers made sense for the banks, just like it did for the much smaller properties. And the property value, just because the law of large numbers, grew 10x what would have happened with my previous mindset.

Ask out the prom queen (no one else does), find a way to buy the bigger property, buy the bigger company, and stand strong on your new salary negotiations. Understand Einstein’s 8^th wonder of the world about compounding interest on large numbers.

Have a great week!

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