Step 1 - Anchor Your Financial Position

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Module 3: Cash Flow Concept to Lifestyle

Now let’s discuss the cash flow lifestyle. The analogy on the use of the cash flow lifestyle would be compared to a ship’s wheel with a hub and spoke system. Your lifestyle would be the entire ship’s wheel however making up the hub are what we’ll call spokes. The spokes would be in our situation “concepts” and what the success path is doing is laying out concepts for you and when you assimilate those concepts and continue to add those concepts together all of a sudden you have a completed wheel and you’re on your way to a complete cash flow lifestyle.

Let’s take a look at one concept how a concept is developed. Each concept has been developed to support the success lifestyle in order to activate it, so we are going to talk about the difference between the process of moving down into an actual “concept in action”. We start with the concept from that concept we develop an attitude about the concept. Then, the most important thing we do is “cross the line” from the attitude into action. We actually start to take action on that particular concept. Then after we take action once we repeat that action for 17 to 21 times those actions become a habit. From that point forward is no longer that much effort as it becomes part of your natural habit pattern. From there it works with other concepts that turns into a new lifestyle.

Let’s explain this in more realistic terms. These concepts can be both positive and negative. Let’s take a concept that is negative for example and into say cigarette smoking. We have a concept that cigarette smoking is really kind of cool we see people smoking and they look like cool people. The industry has advertisements promoting smoking and we see different groups of our peers smoking and it appears to be a pretty nice little concept. So far it is pretty harmless, but then all of a sudden we start to turn into an attitude of where we think that smoking cigarettes is really kind of cool. I’d really like to be smoking cigarettes and I think that it would really improve my life. If I just was smoking cigarettes I could be more popular and everything. So far were still harmless because we only have an attitude about it. Now at this point our status would be the equivalent of smoking just being a theoretical or academic exercise. There’s tons of people that are theoretical and academic about life. They don’t really do anything with their theoretical academic positions.

However, once you cross that action line “once you take that first cigarette” then you’ve taken action on that concept. If it is the first time you smoked a cigarette and if you turn all green it is a very negative experience and you are probably not going to form a habit. However if you continue 17 to 21 days of smoking cigarettes all of a sudden you’ve developed a habit and now you have a smoking habit. Now you don’t think anything about it and carry a pack of cigarettes around and are smoking all the time. Unfortunately in the cigarette situation you’ve got a drug in the cigarette called nicotine which actually is habit forming and reinforces the habit. Some people never can kick it for their entire life.

Now let’s take the good concept. Let’s decide that were going to adopt the concept of developing a spending plan and taking the snapshots of our net worth. All of a sudden it’s a concept you saw on the web module at www.newsuccesspath.com . Now we have to talk with our spouse and pretty much develop the concept to an attitude that says “look, were just in the same old rut and the only way we are going to break out of this rut and stay in the middle class or even ever moved the upper class is to just go ahead and follow the process”. We HAVE TO get rid of our debt and target some income-producing assets. Still it’s just theoretical. It’s still academic and it’s nice to talk about it at social activities, but nothing is happening at this point.

It’s only until after you cross that line into action but you can start on your new success path and that’s what were asking you to do. Cross that line into action. I mean actually sitting down and developing your spending plan and taking that first snapshot of your net worth. Now I know there is probably some apprehension about it and it might fighten a lot of people when they look at the net worth that’s actually negative. It’s a very depressing thing to look at but you have to have a starting point. Because you need to know where you are and anchor your financial position so that you can move forward. When you cross that line into the action you are not just doing a one time activity because it is not going to get you anywhere. You have to do it between 14 and 21 repititions for a habit. You have to do this over time consistently and continue to take the snapshots.

We don’t require you to take the new worth snapshots but maybe once each year. However, you have to take a spending plan to look at it at least on a monthly basis and initially in order to get a habit developed properly, you might want to do it even more frequently. In order to fine-tune you need to be very aggressive about it first before you can back off to the lower frequency. So that’s how you would develop a good concept toward your new success path and we have about a dozen of these concepts and we are going to have the newsletter coming out every two weeks to give you more encouragement along the way so that you can keep up your energy level and so that together we can walk down this new success path to get your family where it needs to be for the future.