Business

Physically Mastering Wealth Series

TWS 27 | Physically Mastering Wealth

Is it possible to physically master wealth? For the first part of the Physically Mastering Wealth Series, Patrick Donohoe discusses why understanding how habits are formed and how behavior is conditioned helps in creating more wealth. It’s all about figuring out what works best and leveraging your resources to produce optimal results. And then doing it again and again. Want to learn more? Tune in for more insight on how you can make creating wealth a habit!

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Physically Mastering Wealth Series

Part 1

One of the driving forces of human beings is freedom, which infers financial freedom too. Several years ago, I set out to discover how any individual, regardless of their financial situation, could evaluate their finances in five minutes or less and have a firm date when they could achieve financial independence. The latest version of this calculator, which is free for readers, can be found at TheWealthStandard.com/calculator. The calculator is going to take you just a few minutes to complete, and it’s going to provide you with a specific financial independence date. Go check it out.

This episode is picking up on something I discussed last time, which is the idea of physical mastery. We show up to life doing pretty much the same thing day in and day out. It’s how we’re biologically wired. There’s so much going on in society now. Information, ideas, opinions, stimuli from every different angle. Look at our phones and how distracting with all the things that we can do. If you want to make progress when it comes to your wealth, you have to understand how habits are formed and how behavior is conditioned.

Without that, it’s going to be a challenge. Ultimately, that leads to taking excessive risks and risks always end in failure usually, especially if you’re taking consistent risks like that, and ultimately will lead to new condition behavior. Hopefully, if you’re learning those lessons, but taking proactive actions will allow you to start to pick up on other people’s failures and discoveries so that you don’t have to necessarily take too much risk and put failure on the line and obviously unintended consequences of that failure.

We’re going to get into 1 of the 2 primary ways in which Wealth Building occurs. I want you to consider this as a possibility for yourself. This is based on my experience. I’ve had the fortunate opportunity to meet lots of different people, experience a busy business, and see not just my own myriad of failures but also those of others in different businesses and industries, etc. These are the conclusions that I’ve come to. They’re not necessarily these absolute conclusions that will not evolve. Of course, they’re going to evolve, but I wanted to talk about the first, which is leadership and operational leverage.

It all boils down to leverage. I want you to consider the possibility that making more money, being wealthier as far as producing income is in proportion to the leverage of your time, number one, and then also relationships with other people. In other words, the idea that sentence is making a bigger impact with the time that you have. The biggest challenge is that 99.9% of us have been conditioned to do the opposite.

If you want to make progress when it comes to your wealth, you have to understand how habits are formed and how behavior is conditioned. Share on X

Let me give you a story. This is a conversation I had with a younger guy, cool guy, good energy, lots of ambition, but he made a comment which points to what I’m trying to get across in this episode. He said first off, he managed a small supplement store of a bigger conglomerate. They were growing successful. He loved his job. He loved being healthy, working out and physical conditioning. He made a comment which he told me everything. We had a longer discussion and went into the details of it.

He said that he couldn’t leave his store for long to go to an event, be away for the weekend and take a day off. He can’t leave because the employees are or assistant managers will mess it up. They’ll screw it up. They won’t do it the way that he does it. In that, this is how most of us are conditioned because we’re raised in the US school system wishes, which is based in the Prussian system.

The Prussian system was designed to train factory workers as well as military soldiers. It’s for us to just follow orders or tasks. We’re not taught to necessarily be a leader. We’re taught to we’re a manager and tell people what to do. This is a huge example between the idea of management and leadership managers manage tasks and tell people what to do they usually use the tactic of fear to do it. That’s what society continues to condition in the political realm, in the school educational system, as well as in Corporate America.

That’s a big difference because that’s not leadership. Leadership initiated more training and conditioning then instead of disciplining somebody, it’s coaching them and continuing to train them until proven processes and principles gave become part of their makeup. It’s been conditioned into them where they would do what you would do. They would do what has been proven to be done. In this case, in this story, processes weren’t documented, training did not revolve around proven and successful processes or principles.

That’s why it led to this very awkward manager-employee relationship, which usually never progresses. This is where I want to highlight how valuable it is to understand the idea of leadership because if this manager of one store, he understands why his store was one of the most successful ones in the territory. He knew what it took to run a successful business.

Those processes, he held them close to the trust because there was so much meaning there. It was him. He was validated. He felt important because he was successful. The idea of leadership is not keeping that to yourself. The idea of leadership is training others to do exactly what you would do to get that success.

TWS 27 | Physically Mastering Wealth

Physically Mastering Wealth: Consider the possibility that making more money, being wealthier as far as producing income is in proportion to the leverage of your time relationships with other people.

 

What does that have to do with leverage? If you have one store that’s successful, that’s being run by somebody doing things the way that you would do them, then two stores are possible, then 3, 4, and 5. Let’s say that a district is comprised of five stores. If you’ve done five stores, now you can do a district. If you can do one district, you can do 2, 3, 4, 5, or 10. Now you’re upwards of dozens of different shops that you as a leader are able to have stewardship over it because you have conditioned into employees, proven processes and proven systems.

This obviously supplement stores, but this applies to all industries. The technology industry has mastered this just because of how complex that world in that industry is. The more you understand leadership and how much you can leverage time by employing proven tactics, proven strategies, now you can control a host of resources and subsequently make a lot more money.

I’m going to keep going with this idea of operational leverage because our world is evolving rapidly and people are looking for ways in which they can be more efficient all the time. You don’t have to go out and necessarily invent it. I looked at really two things in the business world that create an immense amount of leverage. The first is the media. The second is technology. It’s the same idea as you’re looking for ways in which you can do more with the time that you have.

Let’s use an example of a story. We’re doing a live event. Zoom-wise, there are a couple of people that are doing the event. It’s basically training that I do a couple of times a year for other financial advisors. I have done this with a partner of mine for years. First off, the business that I run is very different than the typical financial services, financial planning practice because we’ve done it for many years virtually through webinars. This was before webinars even popularized. Before video webinars, we used to go to a meeting.

Adobe Connect is another one that we used way back in the day. It’s super clunky software, but we didn’t have people come into our office, but the typical financial practice is that they went to people’s houses. They had people come into their office. It’s inefficient in my perspective. We were always told, “You can’t do that.”

People will never do that. They’ll never do business with you unless you build that face-to-face relationship. Even early on, we had compliance departments flying out to our office gate because they were like, “No way you can’t build a relationship with somebody. You can’t do business with people without seeing them face to face.” It was a very challenging time.

Obviously, it’s been adopted by a lot of different businesses these days, but my point is it’s very difficult to go from what you’ve been doing to something that’s new. This is why conditioning is so important. Physical mastery requires repetition, but even during COVID, because with this advisor group, I had been talking to them for years about virtual business and meeting with clients over webinars, the technology was easier. Conditioned behavior is like, “No. I can’t do that.”

COVID forced it. This is usually how behavior changes. Either it’s a conditioned change, very strategic we condition change or there’s a massive disruption that forces change. If you think you need to change something, it’s going to continue to compound, grow and fester until you’re forced to change. Might as well rip the Band-Aid off right now.

There’s two things in the business world that create an immense amount of leverage. The first is the media. The second is technology. Share on X

COVID comes on and people start to see, “I can do Zoom webinars. I can do this and that,” before they had to conduct a conditioned behavior to do things a certain way because that’s where they found success. Obviously, it makes sense, but at the same time, this is the idea behind Zoom being hugely beneficial because now you can have 5 meetings a day instead of 2. You can meet with dozens of more people who don’t necessarily have to come to your office in coordinating schedules, getting time off, getting a babysitter and the list goes on.

The idea of just having technology of being able to communicate with somebody face to face across the internet, massive leverage is possible because of that and lots of businesses experience it. That’s just an example because there are technologies everywhere. They are essentially finding ways to replace predictable things that you are currently doing manually. I’m not saying that you replace people as a whole. There are theories around AI and robotics doing that.

I don’t want to go that far. What I’m saying is that there are inefficiencies in how you manage your time. The most valuable time that anybody has is spent in front of other people, like engaging in meaningful conversation, but there’s lots of other stuff that takes away from that, whether it’s paperwork, documentation, appointment reminders, how you do the actual meetings or taking notes.

I can keep going on with examples, but there are technologies that are coming out that allow you to spend more time in the most meaningful things, begin to look for it, and incorporate it into your system and your rhythm. Technology is the first thing. Media is the second thing, whether it’s video or podcasts. When you do a video, you do it once you spend an hour doing it, “I’m going to do this podcast for 15 or 20 minutes.” It can be listened to by one million people, but I only spent 15 to 20 minutes on it. That is leverage.

I have another story. I have a good buddy who is successful in a specific construction niche because he was able to find a foundation raising. When a foundation settles and cracks, he found a very efficient process that was developed in the Midwest that he went out and learned and then brought to Utah. Now he has locations in Northern and Southern Utah where he has these systems that he’s used to raising the foundation and do it inexpensively as well as efficiently quick.

It’s what he’s done to train his staff. He started to use media. He’ll record how this machine is operated, how you do a phone call, how you go out and do a bid. He found all the different successful ways in which he did it, and then he’d created media that trained staff in order to do it. That’s another form of media being an ideal way to leverage the most predictable things because he found that time and energy were being spent in training. Leaves doing it manually every single time. There were certain things in training that were predictable that he had to do over and over again.

He started to use media as leverage so that he could spend his time doing more meaningful things. There are lots to unpack here. I’m not going to do it in this show because there are so many different examples, but building physical mastery around the idea of leadership is for you to constantly be finding ways in which you can be more valuable with the time that you have.

It creates massive wealth for people you look at, whether it’s district managers or executive-level positions. They understand operations and leadership of people, so that with the time that you have, you’re able to have stewardship over lots of different production because you understand the dynamics of leadership people, relationships as well as proven and successful processes.

TWS 27 | Physically Mastering Wealth

Physically Mastering Wealth: Building physical mastery around the idea of leadership is for you to constantly be finding ways in which you can be more valuable with the time that you have.

 

I’m going to give you some books. You guys can go check out the show notes on TheWealthStandard.com for some of the best books that are out there. I mentioned a lot of this stuff in my book, which is Heads I Win Tails You Lose and get a free copy by just going to the website under the resources tab. There’s a couple of other Cameron Herold. I’ve known Cameron for several years. He has several books on this. One of the first ones was Double Double, but he has other ones called Meetings Suck. He has a Vivid Vision. He’s a great author. It’s very easy to read books and understand. They have actionable things that you can do.

Another one, a couple of books by Jocko Willink, Dichotomy of Leadership. It is an awesome book. He also has Leadership Strategy and Tactics, which is a field manual that gives you playbooks of how to find opportunities to better lead your team instead of just managing them. There’s Traction by Gino Wickman. This is a way in which you can incorporate processes into your business and find successful processes and have your team replicate those processes.

The CEO within another great book that I’ve come across, and then most of the stuff by John Maxwell is absolutely incredible. That’s part two, which is production leverage. You are producing wealth which I believe is the one you have the greatest return and there are infinite possibilities, but you have to understand the ideas of leverage.

Find ways in which you ingrain that in your mind because your body and mindset is pretty much influenced to do the exact opposite because that’s how we have been raised in this United States society, under this hierarchical management-driven, fear-driven, whiplash-driven society, and that’s not the way to lead. That’s not how you create leverage. Next episode, we’re going to talk about financial habits, some of the few things you can do to institute financial habits that will create wealth. Thanks for reading. We’ll see you back next episode. Bye.

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Life Is On The Other Side Of Fear

TWS 18 | Other Side Of Fear

 

How many times has fear held us up? How many opportunities did we miss just because we were too afraid to try? It is time to overcome that and start living life. As Patrick Donohoe highlights in this episode, life is on the other side of fear. He further elaborates that by pushing our fear thresholds, we realize that we can do more. Life demands growth, and if we hold ourselves back, we can’t possibly get to the life we are meant to live. Join Patrick in today’s show, where he shares his own experiences and lessons learned that you could apply in every aspect of life.

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Life Is On The Other Side Of Fear

Everything you could possibly want out of life is on the other side of fear. I want to qualify that statement. I got some feedback that my head was in the cloud. I was not aware of what was going on in the world because of what I was choosing to focus the topics of this show on. I get it. I understand why someone would say something like that. There’s a lot going on. My intent is not to propagate ignorance. This show rarely, if ever, touches on circumstances and experiences that are outside of our control. In the Middle East, there’s always going to be conflict. There’s been for a long time. There are also things going on in government that are sad but that’s been the case for a long time. We don’t have control over monetary policy, fiscal policy, COVID. We don’t have control over policy.

We don’t have control over whether there’s quarantine or not. There are so many things that we think there’s a solution of control and influence and we get all worked up about it. I choose to focus on the things that I can’t control. The qualifier is everything that we could possibly want out of life is on the other side of the fear that we have control and influence over. In all aspects of life, there’s a gap between where we are now and where we want to be. Those are the two points. There’s a gap in between. That gap is laced, typically with some degree of fear. Fear of failure, success, pain, of what others will think of you if you succeed, of what others will think of you if you fail, and of what success or failure will mean to yourself image when you believe about yourself.

Life commands and demands growth. Share on X

The irony is that when we toe the line with this fear, there’s another fear that fills in the gap that takes its place. It’s a never-ending loop. An infinite loop. There are ways in which we can strategically push these thresholds. If we don’t, we are always going to come up against these thresholds because if you think about it, part of us tries to avoid fear and pain and rightfully so, at the same time, because life commands and demands growth. It will put things in our place over and over again, challenge, friction, pain, and problems so that we grow. Looking at what we can do to strategically position circumstances, experiences that will allow us to push those limits and thresholds, it could minimize or mitigate some of the challenges that often surprise us.

Early in my business career, I learned some invaluable lessons but it was at the cost of a lot of pain and failure I told you about. An investment failure that I had over ten years ago, but there were some relationship challenges that I had and they kept coming up over and over again. When I got out of the mess of 2008, 2009, 2010, I rebounded. I had a small team. I was doing pretty well, connected with the group and the group had another financial advisor that was working with them. I had a great relationship with this individual for a short period of time. Our wives are from the same country. We shared similar interests. We were very passionate about our principles, our values, and what we were doing financially.

We started working together and I saw some early signs. There were some red flags that came up regarding this individual’s desire to be independent beyond their own and not work with me in tandem. I did not feel the same way, but this individual did. I did not say anything. Red flags came up. I wanted to avoid conflict and build a relationship and it kept coming up over and over again. The final straw was this individual went to a group that we were working with and said, “I don’t think Patrick is necessary. I want to take over.” The group came to me and said, “This is what this person is saying. What do you think?” I was like, “I’m out.” It was too late. The relationship was ruined.

There were other circumstances after that with a team that I had built, at one point in 2014-ish, we had upwards of 70 employees. We were doing well and the wheels started to come off. There were people put in positions they shouldn’t have been in. There were those that had an illusion of experience and try to influence this area and that area. The conflict was a daily occurrence. I did not face that conflict. I did not know how to handle it. I kept pushing it off. What ended up happening is more of the same happened and ultimately, over the course of about twelve months, dozens of employees were either let go, fired or they’ve left on their own accord. It was insanely painful. I wanted to go back on my own. At the same time, I recognize the principle that life business was teaching me a lesson. I needed to learn that lesson.

What are the lessons you can gain from this? First off, again, nature is commanding growth in your life, your relationships, your finances, professionally, every area of your life. Physically, nature is compelling you to grow. Most people push off those signs. They don’t listen. They think that there’s an easier way, a shortcut and ultimately, what happens is a stronger experience then another strong experience. They keep stacking up until there’s a massive failure in pain. That’s when we decide to say, “This is a lesson. I need to make some changes. This is what I need to do.”

I’m going to go over two primary lessons you can take from this story. The first one is with regards to what I learned in any situation where another person is involved. I do not wait when a flag comes up. When a red flag occurs, I approach it head-on. Some of the things I say is I learned this from a therapist who specialized in businesspeople. I worked with her for over a year. She’s amazing. Karen Kindred, if you want to look her up, she has some podcast episodes and some interviews.

She taught me how to communicate with how I feel about certain things because you can’t argue with how somebody feels. It’s a way of feeling. I got to the point where these red flags came up. I said, “This is what is going on. This is how I feel. Please, help me understand your perspective.” That’s it. It’s very simple. You can use this in business and in your intimate relationships, your family relationships.

It helps you understand and share with and communicate with people at a deeper level. You either can gain perspective that you may not have had or their intention may be what you assumed and you know early on so you don’t have to prolong the inevitable, which will be even more painful if you continue to wait. I have an equation. When I feel something, see something that is irritating, that is frustrating, that borderline is like, “This is not right,” I approach it head-on. I share what I’m feeling. I share what my perspective is. In most circumstances, I’m not seeing things the same way as this other person. Them being able to express themselves helps resolve.

If the intention is what I assumed it was, I then escalate and say, “This is what I’m going to do next because this is how I feel. I don’t want it to go on any longer.” It points to a very quick conclusion that if a person does not want to essentially align with whatever the perspective and situation is, then there is a clear exit and it happens quickly. It’s so simple, but it’s been incredible. I’m going to give you the second lesson. I’m going to spend a little bit more time on this one, which is strategically designing a threshold by breaking through thresholds. Lesson two is you can strategically stretch yourself by pushing your own limits and learning to love challenges, friction, and conflict because you know that you can thrive because of being able to face it. Your psychological muscles continue to grow.

TWS 18 | Other Side Of Fear

Other Side Of Fear: Find something you can do once a year that pushes these physical and psychological thresholds and builds your muscles, which ultimately allow you to face whatever challenges.

 

I believe your income, your wealth, what you can manage, whether it’s people or money, are correlated with this ability to handle conflict, friction, and challenge. There are some invaluable lessons that you’ll receive in this. Self-respect and self-competence are scraping the surface. Plus, being able to strategically position yourself in these areas will also allow you to grow at a much quicker pace. A few years ago, I saw this crazy guy speak at a Tony Robbins business event. His name was Jesse Itzler and he has this thing called a Big Ass Calendar. He says in a nutshell, “To do at least one crazy physical thing every single year.” Jesse pushes this to the limit. I’m not going to talk much about it.

I mentioned on the show before, but he wrote a book called Living with a SEAL, which is when he invited a Navy SEAL that he had met to live with them for a couple of months because he was so impressed by this individual’s ability to live a lifestyle at this very heightened level from an accountability perspective. He also wrote a book called Living with the Monks, where he spent a good amount of time living in a Monastery in, I believe, Upstate New York, again, to experience a very simple, basic lifestyle.

Jesse has a myriad of programs that he advocates. He does this thing called Hell on the Hill. He has a house in Connecticut where they have this big hill and run up a hundred times. He has the event every single year. He also has this event called Everesting. It’s done at about a dozen places around the country where you essentially hike up and down typically ski resort hills, the equivalent of the elevation of Mount Everest. You hike up, take a gondola down or a chairlift down, hike up again, typically over 36 hours. It is significant as far as elevation ends up being 25 miles-ish.

He does these events because he has connected this idea of pushing your physical and also mental thresholds strategically. What it does, it’s not just the physical aspect, you learn what you’re capable of. You push yourself to those limits that help your body, mind, and you realize that it can do hard things. It transits and builds muscles. I’m going to come back to the Everesting. There are other events, too. I’ve mentioned the Tony Robbins events, which are very psychological in nature that push you to these thresholds. An old business colleague of mine, Garrett White, has a program called Wake Up Warrior, which is primarily designed for men but pushes you to these psychological as well as physical limitations. A guest that I’m going to have on soon, Tim Reynolds. He has a course called Reclaim your Gladiator, where he does something similar. Mostly physical in nature at his ranch in Texas.

If you keep pushing these challenges off, life is going to put them in your path regardless. Share on X

There are so many different events like this, but the idea is to find something you can do once a year that pushes these physical and psychological thresholds and builds your muscles, which ultimately allow you to face whether they are challenges in marriage or friction in business. It allows you to face those and grow quickly from them instead of doing what I did, pushing them off. You attack it head-on because you understand the nature of the challenge, friction, and growth. The fact that if you keep pushing them off, life is going to put them in your path regardless. What I’m going to do soon, as you guys are reading to this episode, I am going to be going up this ski resort at Snowbasin. It’s in Eden, Utah, about an hour North of where I am in Salt Lake City. I’m going to be doing Everesting.

I’m going to be going up and down about 13, 14 times and I’m going to document it. I’m not going to document it to signal anything other than wanting to have you guys there as my accountability partner. I’m doing this by myself. There’s obviously a group doing it, but I’m not doing it with a friend, family member, a busy business colleague. I’m doing it by myself. I’m essentially going to be recording my thoughts, my experience, especially in those times of pain and difficulty. You are my audience and family and I want you to hold me accountable. I believe that these physical circumstances allow growth, not just in that specific category but in a lot of other aspects of life. I’ve done a couple of Tough Mudder and Spartan events. There are lots of these mud races, obstacle races, workout routines that allow you again to strategically position conflict, challenge, and friction in your life so that you are constantly growing.

Thank you for reading. I hope you learned something. Go out there, face some challenges, toe the line. You’ll be glad you did. Email me at Hello@TheWealthStandard.com. Tell me what you’re up to. Tell me what challenge you’re willing to face. Tell me what challenge you have faced in the past. I’d love to hear from you. If you want to adopt this Big Ass Calendar philosophy, psychology, go check out Jesse Itzler. He has a brand called Build Your Life Resume. Thanks for reading. We’ll talk to you next time. See you.

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One Man’s Journey of Discovering Himself and the Fragile Nature of The World Economy

Tom Dyson was the co-founder of the Palm Beach Research Group with Mark Ford – which became one of the most successful financial publications.
You can follow Tom on Instagram HoboFamily and his new newsletter ‘Postcards from the Fringe.’
https://www.bonnerandpartners.com/products/postcards-from-the-fringe/
In this episode, you’re going to listen to Tom’s story of divorce and business failure to traveling the world with his three young children and ex-wife. Before leaving, Tom sold all of his assets and possessions and bought physical gold.
Tom’s transformational story re-invigorated his passion for writing about finance, investing, and economics. His refined perspective is almost prophetic, given the current state of the world.

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About Tom Dyson

Tom Dyson is the editor of Postcards from the Fringe. He’s a former London banker and money manager. He’s currently traveling around the world with his ex-wife, three kids, and a suitcase.

 

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Patrick Talks “Multi-Family” Real Estate With Michael Blank / Property, Episode -4

Patrick Donohoe welcomes Micheal Blank as his special guest for Property, Episode-4!

Michael is an entrepreneur, investor and personal development coach.  Originally, Michael made a large amount of money developing software during the dot com boom, and after diversifying is career, he found a passion for investing in multi-family properties.  His company Nighthawk Equity currently controls over $65 million in performing multi-family assets all over the United States and he dedicates tons of his time helping others become financially free in 3 to 5 years by investing in apartments buildings with a special focus on raising money.

 

Patrick Talks With Nick Vertucci / Property / Episode – 2

Patrick Donohoe talks about entrepreneurship and Real Estate with Nick Vertucci!

Nick is and educator and the founder of NV Real Estate. He came from a very humble background.  His life is “that” story.  The “rags to riches”, American underdog type story that many of us love to hear about, but wouldn’t wish on their worst enemy!

Nick hailed from a humble family, which could hardly make ends meet.  His situation got much worse and more difficult when his father died when he was only 10-years old.  He’s been running his own businesses since we was 18 and he’s been through pretty much everything an entrepreneur can go through!

Fast forward several years and his company NV Real Estate is doing fantastic and it’s for this reason and so many more that we’re honored to have Nick on this episode of The Wealth Standard.