Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship pdfdrive com

~ Voltaire, Philosopher
THE DICHOTOMY: DEFENSE (99%) VS. OFFENSE (1%)
I
magine playing baseball for fifty years and never batting. Imagine playing
defense the entire game, chasing after hits from the real players who get to the
plate. And now try imagining how stupid it would be to 
think
you could win the
game. Unfortunately, such a paradigm exists in the 
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world. It’s the
frugality scam of the defense/offense dichotomy.
When it comes to money management, most people live like Gollum in 
The
Lord of the Rings
. They cower in a shabby trailer, shrilling about “my precious”
and how it must be guarded with dear life. Such is the existence of someone
consumed by 
the frugality scam—the belief that obsessive expense reduction,
penny-pinching, and experiential deprivation will someday pay off in the opposite:
rich life experiences, freedom, and abundance.
The frugality scam is like chopping
off your head and bragging you’ll never suffer migraines again.
For 
M.O.D.E.L. Citizens
who’ve chosen a Slowlane path, the frugality scam is
the lead horse. Grab any “early retirement” or “millionaire success” book and
you’ll suffer through a seasoned turd-pile of defensive strategy. Spend your entire
Sunday clipping coupons. Work a second job. Buy a high-mileage used car, but

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surely not the car with so many miles it endangers your safety. Stop eating out,
stop going to movies, stop going on expensive vacations, stop this, and stop that.
That is, you 
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fool, stop living and start dying. Live poor so you can die
rich.
Other gurus trademark defensive tactics into slick platitudes like “the latte
factor,” where your future millionaire empire is hitched to a six-buck Starbucks
cappuccino. Heck, if these people thought picking your nose and flicking it into a
snot pail would save ya two bucks, they’d recommend it while patting your
shoulder with one hand as the other picks your pocket. Sorry, but saving pennies
on coffee isn’t going to make you rich; it just makes you another deprived fool
deferring life for a flimsy promise that requires an immortality deal with the
devil.
Of course, the frugality scam’s problem is not frugality itself. The problem is,
it is 
defensive
, focused on expenses, or outflows. And to have outflows, one must
first have inflows. Let me explain. If you put “liquid net worth” (LNW) into an
equation, it would be:
LNW = TOTAL INCOME EARNED - TOTAL EXPENDITURES
If LNW is positive, congratulations, you’ve been a saver or a net producer.
Negative? Sorry, you’ve been naughty at the mall or not very productive.
Within the 
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OS, wealth creation is mistakenly promised by
massive, mind-numbing expense reduction. Seriously, let’s call it what it is: You
become an obsessive-compulsive cheap-ass, who covets every dime as if it were a
weeping porcelain statuette of the Virgin Mary. Understandably, living in a 150
square foot “tiny-house” and stiffing the college kid waiting tables saves you
money, but is it really a path to abundance and freedom? Or does your financial
fantasy require the life expectancy of someone living in Okinawa, Japan?
The problem with a defensive strategy is expenditures are subtracted from
net earned income. 
If you don’t have a sizable income, it doesn’t matter how cheap
you are!
You can’t squeeze a dime from a nickel!
POLARIZER: CONTROLLABLE UNLIMITED LEVERAGE (CUL)
People get rich quick everyday.
Think about it. You can’t be the youngest billionaire on the planet by getting
rich slow. You can’t become a teenage millionaire by perfectly timing an S&P 500
investment at age 12. Get rich quick might indeed exist, but don’t mistake that

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for get rich easy. Years of disciplined, focused work channeled into the right
business system can make it happen. Easy is not a part of the equation.
Behind the “get rich quick” stories you’ll discover two critical items: 1) A
strong offense underscored by 
controllable unlimited leverage
(CUL) and 2) a
detachment from intrinsic value (trading your time for money) in lieu of a
business system.
First, controllable unlimited leverage means your entrepreneurial venture has
leverage through scaling probability. This means your income has either a high
ceiling, or none at all. You could be making $4,000 monthly and by next year, it
could grow to $40,000 monthly. The controllable unlimited leverage principle is
the income/production side of the net-worth equation where your income (or
assets) explodes so violently that your consumption expenses are outmatched—
so outmatched that they cannot compete.
For example, if you own a software service, you can conceivably grow your
user base by 1,000 percent and, subsequently, your income can grow by the same
metric; if you own a shoe store on the corner of Main and Elm, you cannot
because scale is capped by a geographical region (we go deeper on this later).
Comparing the two strategies is like the Dallas Cowboys suiting up to play
football against Concord Middle School. One changes lives; the other pays bills.
Every so often, an entrepreneur posts a CUL “holy-shit” experience at my
forum, reporting year-over-year income gains of 400–500 percent. Try getting
that from a job.
The second element which makes “get rich quick” possible is clipping the
strings of “time for money” or intrinsic value. Intrinsic value is the value of your
time in a job endeavor. If you stock shelves at Target, your intrinsic value might
be rated hourly at $12. If you’re a doctor, it might be rated annually at $200,000.
No matter which, income is capped and measuredly limited by the number of
hours in a day, or years in a life. Creating massive wealth quickly requires this
relationship to disintegrate.
Once the offense kicks into gear (and “get rich quick” graces a probability)
saving money is not only easy, but it doesn’t feel painful. For instance, my
savings rate for the last fifteen years (net income less expenses) has been greater
than 50 percent, sometimes as high as 70 percent. Save 10 percent of your
paycheck? Funny. I can save big percentages of my income because my
producerism is focused on ventures with controllable unlimited leverage. With
an offensive mindset, I don’t trade my time for money, I trade them into CUL
ventures.

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Assume this: Instead of earning $40,000 a year, you now earn $40,000 a
month. At that income, can you keep consumption quarantined, or marginally
linear? Or will you fall for the consumer scam and ramp up spending parallel to
production? And more importantly, at $40,000 a month, could you now save 50
percent of what you earn? And be debt-free in a matter of weeks?
Earlier in the consumption/production dichotomy, I mentioned Antoine
Walker and his $110 million career earnings. A spectacular offense, right? But
ZERO defense. A great offense gave him championship enjoyment for years—
fine living, luxury—but ultimately, a matador defense put him back in Shitsburg.
You see, once you’re making five and six figures per month, as
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entrepreneurs do, decades or centuries aren’t needed to become a
millionaire—but years, sometimes months. 
An extraordinary life is won on
offense; it is then preserved through defense.
With an offensive game plan (earning
thousands per month instead of thousands per year) time is no longer a
hindrance. Once you witness explosive income via 
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producerism,
tossing nickels in a mason jar and waiting fifty years for stock-market miracles
suddenly seems silly. In the race to win your freedom, an offensive stallion wins
—not a defensive mule.

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CHAPTER 25
BELIEF #8
THE COMPOUND-INTEREST SCAM:
WALL-STREET AIN'T MAKIN YA RICH
The main purpose of the stock market is to make fools of as
many men as possible.