Monday, November 18, 2019
One decision separates the wealthy from the non-wealthy
One decision separates the wealthy from the non-wealthy One decision separates the wealthy from the non-wealthy The problem with most peopleâs lives is that they are being shielded from the consequences of their behavior. Thereâs little to no accountability.The fastest way to make success inevitable in your life is to only do work that is incentive-based. Only do that which you are rewarded and punished for the quality of your work. Everything you do needs to matter to the outcomes, consequences, and results you get in life.So what is the decision?The decision is to take complete ownership of every decision in your life. And how you do that is by only doing things in which you are compensated based on performance.Follow Ladders on Flipboard!Follow Laddersâ magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and more!This goes completely against the norms in society. It goes against public education - which shields people from progressing at their own rates. It goes against most job structures, wherein a person is paid an hourly rate or salary.If you want to make dramatic strides forward, you must only work in environments where the consequences of your actions are immediate and REAL. You need to be demanded by your situation to come up with a result.This article will show you how:Are You A Part Of The âResults Economyâ?Founder of the exclusive entrepreneurial coaching platform, Strategic Coach, Dan Sullivan distinguishes between those who are in the âTime-and-Effort Economyâ with those who are in the âResults Economy.âIf youâre in the time and effort economy, you are focused on being busy. You actually believe the amount of time and energy you put into something merits praise. Those who are focused on being âbusyâ are protected in some way from the consequences of their actions. Theyâre not being forced by necessity to come up with a solution. Chances are, they are an employee. They are part of a bureaucracy. And theyâre striving to follow rules rather than break them.Conversely, when you are in the result s economy, you are only focused on achieving a specific result. You are focused on results because if you donât get the result, there will be consequences to pay - for you and others. Youâre not worried about your reputation. Youâre not worried about following the rules of ridiculous systems which are seeking to make you their slave anyways.Dr. Thomas Stanley found in his research that those who are paid based on RESULTS are most courageous and also the most wealthy.You actually have to take risks.You canât be sheltered from the consequences of your behavior.And you certainly canât be a part of a system which supports âbusynessâ to maintain the status quo. Hence, Dan Sullivan says:Entrepreneurs have crossed âthe risk lineâ from the âTime-and-Effort Economyâ to the âResults Economy.â For them, thereâs no guaranteed income, no one writing them a paycheck every two weeks. They live by their ability to generate opportunity by creating value for their cliente le. Sometimes, they - and you - will put in a lot of time and effort and get no result. Other times, they donât put in much time and effort and get a big result. The focus for entrepreneurs always has to be on results or thereâs no revenue coming in. If you work for an entrepreneur, guess what! This is true for you, too. Though you probably have a guaranteed income, itâs important to understand that the business you work in exists inside The Results Economy, even if youâre sheltered somewhat from seeing that. I say this not to make you feel insecure, but to show you how to succeed in this environment: by maximizing your results while minimizing the time and effort it takes to get them.Flow Triggers And âForcing FunctionsâFlow is a mental state where youâre completely absorbed in what youâre doing. Youâre totally engaged. No distractions. In such a state, time slows down and you begin operating at higher and more subconscious levels.One of the primary âflow triggersâ is immediate feedback. Hence, in extreme sports where the possibility of injury is high, flow is a regular experience. If you donât land that trick, you could be in the hospital. Immediate feedback.If you want more flow in your life, you need to get faster and harder feedback for your behavior. You need to feel the consequences of your performance. You need to be in the Results Economy - not the Time and Effort Economy.In fact, one of the ways to produce more flow in your life is by creating much, much shorter timelines. Give yourself only 60 minutes to write the article and then, once the timer goes off, push publish regardless of what you came up with. Tell your partner or adviser that youâll have your work to them far sooner than they expect. Make your goals public, with public deadlines.You can create immediate feedback for your behavior in the form of âforcing functions.â According to entrepreneur, Dan Martell, âA forcing function is any task, activity or event that forces you to take action and produce a result.âA forcing function is exactly how it sounds - something external thatâs been put in place to FORCE YOU TO FUNCTION how you desire to function.An example Dan Martell uses is a story between him and his younger brother, Moe. Dan asked Moe about his business goal for the next 3 months, to which Moe told him the goal.Then Dan asked, âBased on todayâs understanding of the work involved, etc. how likely would you be to hit your goal in 3 months?ââHmmmm, proba bly 60â"70% I would guess,â Moe answered.Then Dan asked, âWhose the most important person in your life?ââMy wife,â Moe replied.âI then asked him to visualize a person with a gun to the head of his wife, and he knew - 100,000% that if he didnât hit his goal within 3 months that the guy would pull the trigger. There wasnât a doubt in his mind that the trigger would be pulledâ¦. How likely are you to hit your goal?â Dan asked.â100%, there isnât a doubt I could do itâ Moe said.So what changed?MOTIVATION.Thatâs the power of a forcing function. Itâs something thatâs embedded within the situation that forces you to succeed. It forces motivation to happen. Because if you donât produce a RESULT, there will be immediate feedback.To quote historian Will Durant, âI think the ability of the average man could be doubled if it were demanded, if the situation demanded.âMotivation and environment are two inextricably connected things. Motivation ISNâT INTERNA L - but situational.If you want more motivation, you need a more demanding situation. Your behavior needs to be consequential - and the more immediate the feedback the better. The more consequential your behavior, the more flow youâll have in your life. The more youâll be forced to adapt and grow.Do You Have Skin In The Game?âBureaucracy is a construction by which a person is conveniently separated from the consequences of his or her actions.â - Nassim Nicholas TalebIn the recent book, SKIN IN THE GAME, Nassim Nicholas Taleb explains that if your behavior doesnât bear immediate consequence, your performance will be low. Even more than that though - if your performance isnât consequential, then you donât really care about what youâre doing.As Taleb explains:âIf you do not take risks for your opinion, you are nothing.ââHow much you truly âbelieveâ in something can be manifested only through what you are willing to risk for it.âFrom a psychological persp ective, you are either âapproachingâ something or trying to âavoidâ something from happening.Offense or defense.Unfortunately, if youâre in the Time and Energy Economy, youâre probably also âavoidanceâ-oriented. In other words, your only concern is about avoiding getting in trouble, or avoiding getting caught, or avoiding doing much work at all.Only those in the Results Economy, whose behavior is consequential - the more immediate the better - are on offense. They are the oneâs taking risks. Theyâre less concerned about the ground theyâve made and more concerned about advancing their position. Theyâre fine taking more risks. Theyâre fine putting important things on the line, because they are convicted about what theyâre doing.Hence, Telab explains, âWhat matters isnât what a person has or doesnât have; it is what he or she is afraid of losing.â If youâre afraid of losing what youâve currently got, you probably wonât risk it. Youâll proba bly do everything you can to AVOID losing it. And therefore, youâll have given up your WHY. Youâll have stunted your progression.The more you have to lose, the more fragile you become. The more you become a slave to your current position and thus stop seeking to take risks for what you believe in.The Only Types Of Relationships That Become âExponentialâThere are two types of relationships: transaction-based or transformation-based.Most relationships are transactional - where one party makes the rules and the other party submits. Once one of the members of the group is unsatisfied by the terms of the relationship, it ends. People in these relationships are usually âtakers,â not genuine givers.In transformational relationships - both people are âgiversâ who contribute to the ongoing evolution of the relationship. The whole becomes different from the sum of the parts. There is high expectations in these relationships, but also openness.Both parties are completely inve sted in the relationship. Yet, unlike transaction-based relationships, both parties are also completely free.They give because they WANT TO, not because they feel obligated to.That is perhaps the definition of successful relationships - to get other people to help you BECAUSE THEY WANT TO, not because theyâve been manipulated to.According to Pearsonâs Law: âWhen performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.âTransformational relationships have embedded accountability. Performance matters - because both parties are invested in the relationship and both parties deal with the consequences/outcomes of performance. Complete honesty is essential.Does your behavior matter to those around you?What about the people around you? Are these relationships transactional or transformational?If transactional - then one person is a slave to the other. They are walking on egg-shells. Theyâre doing everyth ing they can to avoid a negative outcome. They arenât really contributing. No one in these types of relationships can truly be happy.ConclusionIf you are paid based on performance, your pay will go up.If you get immediate feedback with natural consequences of your behavior - youâll be in a flow state more. Your performance will increase. Your pay will increase. Your happiness will increase. Itâs not great power that creates great responsibility. Itâs great responsibility that creates power. Itâs not confidence that creates success. Itâs successful behavior that creates confidence. Itâs not personality that creates behavior. Itâs behavior that creates personality. If you want to true freedom in your life, you need to take responsibility. Freedom can only exist with consequence - not from the absence of consequence. You are only free when your behavior matters.The only way to increase the freedom in your life is by making your behavior matter more - and by experiencing the REAL consequences of your behavior.The only way to have freedom in your relationships is when both parties have skin in the game. When both parties in invested. When the consequences of each personâs performance impacts the whole - and everyone involved embraces this reality because there is mutual love, respect, and responsibility.Ready to upgrade?Iâve created a cheat sheet for putting yourself into a PEAK-STATE, immediately. You follow this daily, your life will change very quickly.Get the cheat sheet here!This article first appeared on Medium.
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