Sweet 16 Rules Of Success
By Manish J Massy
Think on this. In your entire lifetime, how much money has gone through your hands? Let me explain to you what I mean by this. Maybe you made INR 47 Lakh last year as a 28-year-old. And you got your first check at the age of 14 for INR 7000. Add everything up from that first check until today. You’ll come up with a number. It could be INR 3.2 Crore or INR 1.2 Crore or INR 4 Crore, depending on who is reading this. The question is how much is left in your wallet? Truly. How much is in your wallet? Not your credit card limit, but how much savings do you have left? If you’re unhappy with the answer, the reason is very simple. It’s because you don’t know how to play the money game. It’s as simple as that. So in this article, I get into the 16 rules of being successful.
#1: It’s a Game
Rule #1 is the most important one, and it’s the one you have to buy into immediately. It’s very simple. You may want to fight it, but regardless of what you do, it’s a rule. And the rule is that money is a game. The great thing about any game is that no matter what game you play, you eventually get good at it. If I’ve never played chess, and you’ve played it 100 times, you’re probably going to beat me. If I’ve played Monopoly 1,000 times and you’ve played it three times, I’m probably going to beat you. So the great thing about the money game is that it can be learned.
Next, don’t be a hater of money. If you hate money, you’ll never get money. Why? Because money doesn’t like haters. If you constantly say things like, “Money doesn’t grow on trees” or “Rich people are this or that,” money responds by saying, “You’re right!”
It’s almost like if you go on a date with an attractive girl, and you tell her you don’t like attractive girls that don’t know a lot about philosophy. You say that all they care about is their looks, doing makeup, and working out. The girl’s response is, “Dude, I put on makeup and I work out every day to stay in shape. But I also like other things in my life. But you know what? You’re right. You’re not attracted to me and I don’t like you.” She then goes and finds another guy that says, “I like a girl that takes care of her body and skin, and puts on makeup. I like a girl that works out five days a week.” She’s attracted to that guy.
So keep that part in mind, and don’t be a hater with money.
Number three of the rules of money is that money is a doubles game. Listen, you could stop reading right now, as long as you understand this.
The entire game of money is about doubling your money. What do I mean by double your money? Let me explain it to you this way.
If you have INR 65000 cash in your bank account, you are 10 doubles away from having INR 6.65 Crores. You’re five doubles away from INR 20.8 Lakhs, 13 doubles away from having INR 53 Crore, and 14 doubles away from INR 106 Crore. How soon can you double your money?
That’s it. It’s a doubles game. Can you take that INR 65000 and double it to INR 1.3 Lakhs in the next year? Now that it’s INR 1.3 Lakhs, you’re nine steps away from INR 6.65 Crores. If you already have INR 83 Lakhs in your account, then you’re three to four doubles away from INR 6.65 Crores. Building wealth is a piece of cake when you understand the doubles game.
Risk Tolerance and Horizon
Now that you have the basic concept, the question comes down to two things, your risk tolerance and your horizon. Your risk tolerance depends on your age. If you’re 65, your risk tolerance is lower than if you’re 22. Horizon has to do with time. What is your time horizon? The time horizon could be, “I want to have INR 6.65 Crores by ten years from now.” Great. If you want to have it by 10 years from now, first start with what do you have right now.
Then you play the doubles game. For instance, if you have INR 2.6 Lakhs, you’d ask how many doubles do you need to get to INR 6.65 Crores. From there you can determine a time goal for each of the doubles to meet your goal within 10 years.
It’s a simple game, as long as you know the amount you have, the amount you want, and your risk tolerance, and time horizon.
Let me explain to you about seduction. Money likes to be seduced. Money’s attracted to seducers. Just like a woman doesn’t like a desperate man, money doesn’t like desperate people. Money’s not attracted to desperate people that want it so bad because they want to show it off to everybody. No, no, you need to seduce money. When you do, all of a sudden money will say, “Ooohhhhh, I like this guy, I like this girl. Oh my gosh! I’m turned on by you.”
Don’t let money seduce you. You seduce money. Once you learn the seduction game with money, all of a sudden money starts coming from all over the place to you, because money’s turned on by people that know exactly what they’re doing. By the way, the more learn to seduce money; you’ll get better at this game as well.
Number five of the rules of money is boredom. Let me explain what boredom means. Money needs to be moved. Okay? Again, if a girl is bored with you, she leaves you, because you’re too boring. The same is true for men. When people get bored, they leave. And money doesn’t like to be bored.
What do I mean? If money stays in a checking account, the money goes to somebody that knows how to use it. Money doesn’t like to stay somewhere where it’s not working. So it goes to someone else that knows what to do with money. So you have to make sure that money’s always moving for you, working for you, and doing something to create more money for you.
The next of the rules of money is to have a secret account. You always have to have a secret account.
What’s a secret account? It’s an account no one else — including your spouse, parents, best friend, siblings — knows about.
A secret account is a crisis account and could be cash. It’s an account that’s sitting somewhere that no one else knows about. I know you may say, “Manish, you talked about boredom.” But this is a completely different story. You have to have a crisis account that’s not your emergency fund.
A secret account is what saved my business when we were going through a difficult time. The company’s checking account went down to INR 8.4 Lakhs, and I had payroll, commissions and everything to pay out of it. The crisis account that I had is what saved us. No one knew about it. That money showed up, I put it back into the business, and we lasted through the tough times. So you always need to have a secret crisis account.
Next, don’t pay to fly first class until you have INR 70 Crores in the bank. I see so many people spending INR 12 Lakhs on a flight when they can spend INR 26000. Listen, I’m 6' and weigh 240 pounds, and do you know how many times I’ve paid first class? Zero. I don’t pay first class. Other people pay for my first class, but I don’t pay for first class. I’ve flown first class many times because I have miles, or people pay for my flight. But I don’t pay for first class myself.
Why is that? It’s because I did the math. Obviously, I can afford to do it, no problem. But here’s how I did the math. If I pay INR 12 Lakhs for a first class flight and I can get on the same flight for INR 32000, that’s 11.6 Lakhs more I’m paying for the flight. If I fly nine times a month, that’s approx INR 1 Crores monthly difference. Do you know what I can do with INR 1 Crore? That’s five employees or marketing or expansion. Why would I waste that money? That’s an executive I could bring in, or two incredible employees. So I don’t pay first class.
Once you have INR 70 Crores in the bank and you want to do it, great. At that point you may want to buy a private jet, but don’t pay for first class until you get to that point.
The next of the rules of money is end of the world mentality. Listen, CNN, ABP, ZEE NEWS, Sagarika Ghose, Barkha Dutt, Arnab Goswami and others are all paid to sell crisis. Why? Because you have to be ready for a crisis. So a lot of times people are fearful, and think it’s the end of the world. For example, in 2008 when the market crisis took place, everybody started pulling their money out. At the time, the Dow Jones was down to 6,000 something. It’s at 21,000 points today. Imagine if you left the money in. How much compounding money was lost simply because people thought it was the end of the world?
You have to learn to manage the times when 90% of the world thinks it’s the end of the world. You have to be ready for those times. So how do you do that?
Let me explain. I was part of the community that said it’s always the end of the world. Then I realized how you become wealthy during those times. In the times when people say it’s the end of the world, do you know who wins? The ones that have cash. That’s why it’s so important to have cash set aside. And I’m not talking boredom money. I’m talking about having cash said aside so that when it’s the end of the world, you can buy stuff.
Crisis Makes Some People Wealthy
Every time crisis happens, a LOT of people become wealthy. Why? Because everything’s on sale when there’s a crisis. People sell exotics because they can no longer afford them. People sell artwork for 1/5 of the price and homes for 1/2 of the price. All kinds of things are for sale when there’s an end of the world type of mentality.
So it’s important to have a strategy for this time. Some say the markets will tank again in the next two to three years. I don’t know if that will happen, but what I do know is that they’ll tank in the next 20 years. And you have to be ready for it because there will be opportunities, if you’re prepared.
Next, study your politicians, especially your Prime Minister/Finance Minister. Here’s why. You have to know the philosophies of and what the politicians in your nation and local community are going to do. For example, if their philosophy is to do heavy-duty taxing, you need to adjust accordingly. If their philosophy is to cut down taxes, you need to adjust accordingly.
People ask me, “Manish, what should I do with Modi?” Start a business! Taxes are being cut on FDI. So go make your Crores in the next three years, and if it’s another 5 years, go make your money. Adjust. Everything’s about adjustment. But you have to know the philosophies of your politicians and adjust accordingly.
Next, study smart investors. For instance, you should read everything Warren Buffett puts out. Every single thing. Read all his books, because as you do, he’ll teach you his way of thinking, his mindset.
People ask, “Why did Warren Buffett spend $35 million to buy silver six years ago? And why does he stay away from technology?” The thing you have to respect about Warren Buffett is that he sticks to a philosophy long enough until it works. So study smart investors.
Number 11 of the 16 rules of money is to play your game. Don’t compare or play someone else’s game. Play your game.
Let me explain. Let’s say that when you play the doubles game, you’re at INR 10 Lakhs. And let’s say your cousin is at INR 1 Crores. Or let’s say your friend is at INR 1.2 Crores. Why are you comparing yourself to them? You need to play YOUR doubles game. They are four or more doubles ahead of you, so it’s not the same game.
You can’t say, “I’m going to play my game at the level with the other guys” because when you do that, you make reckless decisions and you may lose a double. You don’t want to lose doubles.
It’s important not to go backwards, and any time you focus on the people ahead of you, you may go backwards. So focus on your game, your strategies, and your time horizon. Focus on your risk tolerance, and play according to that game.
Your vision may not be to be a billionaire. Your vision may not be to do something very big. Perhaps your vision is not being a deca-millionaire, but instead to someday have INR 10 Crores. That’s all good. Play to that game. And put a plan to it. But don’t constantly compare yourself to other people.
The next of the important rules of money is to befriend money makers that you trust. Here’s why. If you’re around other people that know how to make money, you’re going to make money. If you’re around people that don’t make money and don’t know how to make money, you won’t make a lot of money. That’s just how things work.
It’s also important to know who you’re going into business with. Sometimes things seem too sweet or sexy, but you don’t know the person. It’s important for me to know who I’m going to do business with. I hire very, very slowly and fire very fast. The moment I’m done with somebody, boom, they’re gone. It’s no problem for me to fire four people in a day. If things aren’t in the right place, we need to move on.
Especially for higher up positions, I hire very slowly. I travel with the person so I get to know them. So whoever you’re going to do business with, befriend them. Travel with them. If somebody’s extremely wealthy, go to dinner with them. Get to know their spouse, and how they are around their kids. See their standard of living, behaviour, and discipline and if you like what you see, determine to do business with them.
The next money rule is that diversification is for sissies. So if you’re a sissy and your risk tolerance is very low, it’s okay. It’s okay to be a sissy. A lot of people are sissies. But if you truly want to create wealth, and you wonder why you don’t have a single penny after working for 17 years, you have a problem.
What’s the problem? Diversification is a great concept for financial advisers to sell to people that want to play things safe. If you’re reading this and you’re 73 years old, diversification may be good for you. Or if you’re 62 years old and you’ve already hit your numbers, your risk tolerance is lower because your time horizon is lower. In that case, you’re playing a different game.
I’m mainly talking to the people that are in the offensive mode of their lives. I’m talking to people that are trying to get their doubles to go faster. If you rely on diversification, it takes 20 to 40 years, and that’s if everything goes the way it’s supposed to. So don’t rely on diversification to take you where you want to go.
The next of the rules of money is about leverage. Everything is leverage.
Let me explain what leverage means. When I say leverage, I’m not talking about going into debt. I’m talking about leverage, period. Here are some ways to use leverage in your business:
§ Gain more support
§ Market yourself more
§ Get to the customer faster
§ Increase the speed of growth of your business
You need to ask how you can leverage every aspect of your business because leverage is a growth game. And the more you study the concept of leverage, the better it is for your wealth.
Number 15 of the 16 rules of money is to develop strategic partnerships. This is similar to befriending money makers but it’s slightly different because it’s intentional. For instance, in our company we have strategic partnerships where a lot of people make money. And the more that people make money, the more they’ll continue to do business with you.
I have strategic partnerships with $400 billion companies, $200 billion companies, and $60 billion companies. I have strategic partnerships with a lot of different companies that benefits them. Strategic partnerships increase the value of making money because a lot more people make money when they go into business with you.
Last but not least of the rules of money is big cheque syndrome. Oh my gosh, I’ve seen so many people screw this whole thing up.
Let me tell you what I mean by big cheque syndrome. Let’s hypothetically say you sell real estate. And all of a sudden a client wants you to sell their INR 21 Crore home. You sell it and get INR 42 Lakh commission cheque. You say to yourself, “Oh my gosh! I made 42 Lakhs!” And for two months you live as if you made 42 Crores in a month.
What you don’t realize is that you need to look at that 42 Lakh as 3.5 Lakh a month income for a year. Don’t look at it as 42 Crores. Look at it as 3.5 Lakh. I see so many people that see it as 42 Crores and get arrogant and cocky. They don’t realize it’s just a big payday. And their double goes lower and lower and lower.
Here’s a question for you. Would you rather take INR 3.5 Crore up front, or take a guaranteed income stream of INR 1 Crore per year over 20 years? Which one would you take? Most people would take the 1 Crore. Let me tell you why 1 Crore is more. 1 Crore ads up to 20 Crores. And a 3.5 Crore is just 3.5 Crore. The 1 Crore gives you the opportunity to have a stronger backing to make bigger decisions to get bigger doubles.
Now you may say, “But Manish, a 3.5 Crore? That already moves me a long way in the doubles game.” But that’s irrelevant if you don’t know how to play the money game. I want high income as well. I want income coming in that feeds my game so I can increase my net worth. Income is a very, very important game, so don’t get too crazy about big cheque syndrome and all of a sudden fall for it and lose everything.