The first 3 steps to becoming wealthy are:

1. ALWAYS spend less than you make.
2. Understand the difference between where you are and where you want to be is EDUCATION.
3. Put your goals into the Do x Be = Have context.

If you cannot do any one of these three things, then you will either never become wealthy or your only chance of acheiving great wealth is inheritance or the lottery. For the latter, you will most likely squander whatever you’re given anyway, since you don’t know how to spend less than you make no matter how much you make.

1. Always spend less than you make. Time and time again you hear people, couples, children, etc. say if they only made another $5,000 per year or got that raise they needed everything would be fine. All the bills would be paid and they’d be out of debt in a jiffy. So what happens when they get the raise? They buy a new house, a new car, a new flat screen, etc. because they need those things and now they can afford it. Do NOT fall into that trap. If you cannot survive for the next 3-6 months with little or no income, then you have a problem. If your goal is to be wealthy, your FIRST step in that direction should be to have enough money in savings or other liquid assets to survive for 3-6 months with little or no income! If you cannot manage your own finances well, you will never be able to manage 2 or 3 or 100 times that much money for a business. Conversely, if you understand how to manage your own cashflow, translating that to business is a cinch.

Before buying my first business I had about 5 months where I only worked part time. At that time I owned 2 sports cars, a beautiful house with a 3-car garage, 1 motorcycle and the normal stuff you’d expect from a bachelor.   At the end of the 5 months I was down to 1 sports car (that I refinanced to lower my monthly payments), no motorcycle, and a whole lot fewer motorcycle and car parts then before. I needed to turn those possessions into liquid assets to pay my bills. The lawyer bills alone from the business purchase were more than I made on the sale of my car and motorcycle together! If an opportunity presented itself, would you be able to come up with the necessary cash to make the investment? Even if it’s as simple as buying and reselling a vehicle because it’s such a great deal.

2. Understand the difference between where you are and where you want to be is EDUCATION. Rich people know something that you don’t. What is it? Maybe it’s how to buy, build, and sell a business. Maybe it’s how to invest in real estate. Maybe it’s how to master the stock market. Maybe it’s negotiating skills, or public speaking talents, or simply how to find the best deals. The reason they have more money than you is because they know more than you about generating wealth. So how do you bridge that gap and learn what they know (and much more)???  Start with The Best 6 Books to Teach you how to Generate Wealth and then spend some time on my recommended reading selections. If you want the quickest (though still incomplete) lessons to get you up to speed, read my blogs. It will be worth the time and the price is right.

3. Put your goals into the Do x Be = Have context. Obviously you need to read my blog on the topic to understand the full scope of this algorithm. However, a quick summary is simply this: know what you need to Do to become who you need to Be to get what you want to Have. In other words don’t just set goals, set the correct goals!

As a quick example of this, to purchase my business I needed 2 assets:

1. The cash (including the vehicles to sell to generate the cash) to pay the lawyers and support myself.
2. The knowledge to convince someone else to lend me the rest.

Moreover, I knew becoming a business owner was putting me on the right track to become who I needed to Be to obtain what I wanted to Have. Which is ultimately why I buy, build, and sell businesses.

To your success in generating wealth, Bryan

Here’s the basic formula:

Do x Be = Have

Now I originally learned this formula through Brad Sugar’s Entrepreneur Masters Class however I’m pretty sure he got it from someone else… If you know who originally came up with this, let me know.

The unique thing about this formula is you have to start on the right and work left – the opposite of how you normally read – to make it work.

Have

Make a list of what you want to Have in life, at your job, at school, in your mate, etc. etc. etc.

How much money? What kind of house(s)? Any boats or nice cars? Family? What will your job be like? How often will you vacation and where? You get the idea. WRITE DOWN what you want to Have in your life.

Writing this down is essential. A few years back I recall reading about a survey that was conducted on Harvard business graduates at their 20 year anniversary. They asked the graduates, who had written down their goals when they graduated from school – 3% had written goals and 97% did not. They then found out that the 3% who had specific written goals had amassed more wealth than the other 97% combined. And it wasn’t like those 97% were slackers. They were all Harvard graduates so they had to have at least a little talent. Honestly I read so much I can’t recall where I learned this story, so if you know, please let me know.

Be

Now, look around you and determine who has what you want to Have. What kind of job do they have? Do they have their own business? Do they have a college degree? What kind of degree? How many hours per week do they work? What do they attribute to their success?

Now you have to figure out who you have to Be to get what you want to Have. In other words, if you love children and want to be a teacher, but your list also includes a summer home in the Outer Banks, can Being a teacher allow you to Have that house? If there are any other teachers who have vacation homes down there, learn what else they had to Become (besides a teacher) to afford it.

This is the most often overlooked step. Everyone knows what they want to Have and think they know what they have to Do to get there. But they never figure out who they have to Be. Without Being the person who can Have what you want, NO amount of Doing will get you there. More than likely, you’ll just be Doing the wrong things.

If you have no idea who you have to Be to become a millionaire, check out The Millionaire Mindby Thomas Stanley. It’s a book based on lengthy surveys filled out by over 1300 millionaires. If you want to learn what kind of people Become millionaires, this is the book for you.

Do

The last piece to our equation is figuring out what you have to Do to be who you need to Be.

Where do you need to go to school? (if at all) Who do you need to associate with? Where do you need to live? When do you need to start planning or saving?

What do you need to Do, to become who you need to Be, to get what you want to Have.

Keep in mind that if you make a list of want you want to Have in a spouse, you better figure out who you need to Be so that when you meet that person you’ve already done what you need to Do to hit it off with them. Think about it. That makes sense, right? You better be a perfect person yourself if your list describes the perfect person. hahaha

In my life, this became very clear to me almost immediately after learning it. I went to a top 10 engineering school and became a mechanical engineer because I love cars, motorcycles, and engineering in general. However, I also want an island. A nice little private island with a place to land a plane and helicopter. Maybe a 9 hole golf course and a nice comfortable villa to relax in. After looking around at all the engineers I knew, it became very apparent that Being an engineer was not going to get me what I wanted to Have. Being a successful business man will, however. Not only will it allow me to engineer new designs for automotive and motorcycle applications at my leisure, it will also allow me the possibility of an island. Something being an engineer alone could never do.

Are you doing what you need to Do, to become who you need to Be, to enjoy what you want to Have?

To your success, Bryan