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3 Essential Money Mindsets

Lesson 35 from: How to Make Money

Ramit Sethi

3 Essential Money Mindsets

Lesson 35 from: How to Make Money

Ramit Sethi

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Lesson Info

35. 3 Essential Money Mindsets

Lesson Info

3 Essential Money Mindsets

Before we get into the tactics I'm going to talk about three essential money mindsets now I think this is really important um who here can share an example of a psychological barrier you've had around growing your business or earning more money let's pass those mikes around perhaps fear of failure fear of success maybe you sabotage yourself let's hear it uh a little bit of fear that I'm not the first person to do this and the other people in the market are going to be much better than I am totally by the way they are they are better than you right now but they won't be better than you a year two years, three years from now so I think that a lot of times our fears are actually well founded and instead of trying to deny them which is like trying to push the ocean back we should acknowledge them and say, hey, I'm afraid that I'm not the best in this market I'm not I'm brand new I probably don't know what the hell I'm doing but I know that I'm smart and I'm confident in myself and I know t...

hat a year from now two years from now three years from now most of those people are just going to do what they know I'm going to be going like this ok good what else yeah right uh fear of trusting other people and asking for help and uh growing the business in terms of trusting people who you would consider less skilled to train them to become a skilled as you that's when better so you're good at what you do, what happens when you bring other people into help you they're not going to do it as well as you also true what happens if they steal your idea? Etcetera, etcetera good what else? Fear of not being able to break through online clutter or the competitive the competition? Yeah that's a classic one what's your market by the way fitness eso million different fitness programs out there. How can a new one compete if you're trying to help people lose weight gain muscle look better. Why would anyone choose yours over a million others will actually talk about fitness today very good. Um you know, I had a friend of mine who I recently set up with someone my part time hobby is a matchmaker and, uh I love it so much I have multiple marriages under my belt and, uh I mean, if I could just do that all day that's what I would do, I just love it, so I have my own theories on matchmaking, so I have this, uh, this friend of mine so he, you know, he's single he's, a good guy he's a good catch, good looking and I had another friend of a friend who I was like, this is great there pretty much like they're great people, they're fun, they're attractive. Cool. So I set my my guy friend up with this girl, and she she already liked him. She saw the photo she's, like, I like this guy and, uh, go out and I asked him later, how did it go? And it didn't go well and what had happened was he got like he was insecure, he was nervous, he was clingy and everything you could do wrong. He did wrong, but what's interesting is so many of us were looking for that magic bullet set me up with that beautiful girl. Give me the perfect recipe, what's the work out. How do I look like you? What work out do you use? And the fact is I could give you the perfect workout I could give you the perfect date. I could give you the perfect business idea, but would it actually matter if you haven't mastered your inner psychology? He hadn't didn't matter. If you give people the perfect workout there's a million workouts online, why aren't you already fit there's something deeper it's, not about a lack of information. In fact, information is one of the least persuasive things you can give people there's tons of information you want to know how to manage your money go read a compound interest chart there's information there so why don't people do it? We claim we want to do something but we don't fact that people here in the room claim you want to live a richer life maybe start an online business but you haven't there's a million books blog's about starting an online business so why haven't we let's take a second who can share why you haven't launched and a very successful online business let's be really candid with each other who's got it uh having done enough market research great. Okay. Why though? Um fear of rejection so you think I have this idea and if I go out to the market and I find out it's a bad idea what am I going to do? Okay, get stuck in the details like what? Like you have to have ah perfect website and, you know gotta have infusion soft set up on that kind. Yes, I gotta have my technology perfect and I need to prepare for this onslaught of visitors because I need to have gonna have five million sales the first day what if I can't handle it right? Okay, what else I feel like I don't know enough I took a class in nutrition, got a certificate and still feel like I don't have the knowledge to actually council somewhere do you have friends who come to you and ask you how do you look so great? I just like I try to eat but you know I can't eat right? Do they say that to you? Yes on do they ask about your credentials when they asked that question how interesting, how interesting one of the things we learn is that yes, expertise matters and yes credentials matter especially in certain markets you want your surgeon to have credentials? Of course, but we also learn that you don't have to be a world famous expert to help people ah lot of times you just need to know a little bit more than they do and be able to show them the path to their success. So it's not a surprise that in your head you have to climb the entire mountain to even show them how to put on their boots they just want to know the basics what what is protein? They don't even know that and so you might be actually punishing your market because of what's in your head instead of just serving them today. Okay? All right, so we're gonna talk about three essential money mindsets and the reason I'm especially paying attention this before we go into the website and conversion and all that stuff is every single creative person out there is a huge weirdo like huge when it comes to money they have all these pathologies and weird insidious beliefs about money oh I can't charge more because that guy wait a minute so like I think I should be making sixty dollars an hour but then the cousin's brother's son is only charging five dollars an hour for photos so there's no way I can do it I'm just gonna charge seven dollars and I'm sure one day they'll pay me more it's not gonna happen okay if we can't value ourselves if we can't understand the audience were serving then none of it matters so let's go through these three number one people pay me for the value I create now this is important there's a lot of people that believe money is a zero sum game and if I'm charging he's losing money I'm making it he's losing and I would challenge you on that in the fact that you can expand the pie and you can think bigger than that who here has purchased a premium product in the last lets say six months could be a high end handbag could be uh a nice sweater could be uh a mercedes whatever who here has purchased something premium could be an iphone oh everybody's hand goes up okay pastor mike around um tell us about what that product was a new couch for my new house. Okay, great and was this couch from baekje no macy's okay, very good and ballpark it for us what was the price of this couch just under two thousand two thousand wait a minute you could have gotten a couch for one hundred bucks on craigslist I wanted the perfect couch and even though I don't have the money right now I wanted to figure out a way to get it and macy's has a twelve month no interest ah no payment until twelve months from now. Got it okay, who else uh but mac book a mac book. Wow. So that's like two, three times the price of a chromebook why'd you buy that it's the same thing right? I it just seemed so much better than a chromebook ah, it just seems so much better good what else? Who else has got one bought a new bed okay, how much? Just under two grand ok? And why not get you know there are cheaper brands? Yeah, but sleep in it every night wanted something comfortable and one of that foam mattress not just spring. Isn't it interesting that you didn't hear anyone saying I pulled up the specs and I compared the features and this one had thirty six more stitches than the other one because we don't do that pete when it's so ironic that when we're purchasing things we go with our emotions notice how everyone had rationalizations for why they bought it the truth is you just wanted it. So the rationalization was I sleep on the eight hours a day. Don't I deserve to have the best? I worked so hard. That's what? That's fine, I'm not blaming you that's. A perfectly reasonable rationalization. But the truth is, you wanted it, right? We had a bad we could've used that bad. Perfect. So ironically, when we go to the other side of the table, when we start creating our products, then we start thinking things like, well, wait a minute. That that course over their offers like fifteen more features, that one has better graphics, that one has this. That one has that when in reality, if you can show people why it's right for them and how you have credibility to help them, the rest is a mere triviality. Infact even price is a mere triviality. I have students of mine. My sales pages are very long. In fact, some of them are over seventy pages long. I have students now who they tell me. They say I've pre committed to buying every course you ever create, and they scroll down. They see the headline there like I want this scroll down to the end, they just look at the price they're like, yeah, by they don't even read the seventy pages of material, so the point of this is people pay me for the value I create you're not taking it away from them when you went out last time and had a nice dinner maybe for your anniversary or whatever you paid and you paid happily the same is true for your business people are happy to pay if you are adding value to their lives so that's number one number two this is a really deep in cities one for creatives er there's a belief that if I make more money if my business grows then I'm doing something wrong I'm evil I shouldn't be making so much I feel guilty what are the words that people here have used when it comes to feeling guilty about making making a little too much I see I see the looks on their faces past those mikes around what do we got compromising your product you're compromising your part because I'm growing and taking myself out of it uh I should be involved in every single stage of it, right? Okay, what else? Um you kind of lose you might feel like you're losing your creative agiza start up if you got too big and bloated like mega corp or whatever totally I mean look at the words you just use their so evocative big bloated as opposed to successful thriving what else for creatives in particular what's the word that that they use if if your buddy started making a ton, you were both struggling photographers, both struggling writers and then he starts making like so much what's the word seller seller right now notice what we just did right there if I were writing sales copy, if I were creating a product for creatives to grow their business, I could stay at the surface level I could say grow your business, share your creativity with the world blah, blah, blah, but that's like skimming a stone on the surface of the water you're not connecting with someone when you truly understand your market right there in the headline the sub headline or the first paragraph, you'd say, um, your success it does not mean you're a sellout. In fact, it means you are successfully helping other people just like you and that creative person is going to look and say, yes, I'm going to read on you see the difference in what we just did their most people when they're doing their market research, they're asking questions like, are you a man? Are you a woman? How old are you? Demographics? Yeah that's nice to know, but what we really want to know is what language do people use to express their hopes, fears and dreams we're going to talk about that in just a minute the point of this psychological barrier is that the more I make the more value I can create so it's not like people who are successful with their businesses are sitting around with it in a vault and just swimming in their money it's not what they do you know what I do when we have a successful product launch I take that revenue I take the vast majority of it I hire world class experts in design, psychology, technology, customer service we recently instituted a policy where anyone who buys any one of my courses gets a live phone call from one of my trained staff members that's investing to make a better experience so do not think that because you're successful you're a sellout you take that revenue and you've reinvested right back in the business to serve more people okay again why are we talking about this? Why don't we just jump right to how to create a webinar because I could give you the perfect business idea today but it wouldn't matter if you don't conquer these deep, insidious invisible scripts. Okay, finally money is a marker that I'm doing the right thing. Why were meat why you using the word money? Um, why don't you just talk about facebook fans? Um do we have any life coaches in the room? Thank god okay life coaches love to believe they're helping people but not help anyone actually and I'll tell you if so, same thing with personal finance experts for there's some personal finance experts that for twenty five years have been writing about things like keep a budget stop spending money on lottie's et cetera it goes in one ear and out the other people don't want to stop spending all the things they love they want to do more of it so why don't we show them how to do that if these experts were to be confronted with how many people actually followed their advice? I mean it would be haunting to them. So one good way to know if your product is valuable there's really two things that are extremely challenging in the world that's to get someone to fall in love with you and to get them to pay you okay? We're not talking about love today I would love to talk about that, but we're not talking about that today we're talking about getting them to pull out their wallet and say this is valuable enough to me that I'm willing to pay. So what does this imply? It implies that having a million free subscribers fans, whatever that's nice but that's not paying the bills there are a lot of people I know who have many more followers than I do many more fans many more twitter people and they can't they're they're just lookie loose they're like the people who when there's an open house they come by, they look around, they just want to see the view of how big the rooms are, then they leave. They're never going to buy, they're not the right people. We want to focus on the people who will pay and not just with money because if they pay with money, they're much more likely to actually follow through given example on our email lists we have ah email list of several hundred thousand people, the open rate of people who have purchased one of my courses is three to four times higher than the people who don't okay, the people who have bought one of my courses are two thousand five hundred percent more likely to buy another course. Why? Because they're committed so it's important to not just focus on getting a bunch of free fans, free subscribers, free followers, but to actually create something valuable enough that they say, I'm opening my wallet and I'm going to pay that's when you know you're doing the right thing. So the money is not the whole purpose of this, our purposes to share our passion, share what we know with the world, but to make sure we're going the right direction, I want to make sure our revenues are growing, okay, all right, so now we're gonna talk about how to find a profitable business idea. Now I want to go quickly and ask for five people what your idea is if you have one let's pass that micro now let's see what people have to say teaching non profits to fundraise online oh boy alright we'll come back to you good who else go ahead I would love to use my sales and marketing skills to do something that has more meaning and make money like what I don't know maybe it's fundraising maybe it's going back to the nutrition thing I mentioned what I'm doing now does not feel good anymore got it okay um teaching people how to navigate the vast online wedding industry were oh that's a good one okay okay. Very good. Oh that's so good I'm so glad both of you're sitting next to each other so we have a vast wedding industry and nonprofits we're gonna talk about both of those those are great what else? One more s o I'm a fitness coach and I'm finding that I'm stretched too thin and I'd like to be ableto coach more people somehow online okay got it are you doing coaching like one on one uh in classes as well? Great okay, good. So the classic model that we've heard when it comes to finding a profitable idea is, you know, create this venn diagram my passion my idea and then see where they overlap sounds great in theory doesn't really work has anyone here had gone through that exercise where you create the diagram and you're like, oh, I love these things and then you like find the paper four years later in your garage so stupid so we're going to do the idea generation part, but then we're going to go several steps deeper. This is the process we use to create the courses that we do now remember, we've launched over fifteen successful online courses and I say that because I want to show you that it's not a fluke, ok, we're not a one hit wonder in fact, that was the thing I was always terrified of. I wanted to know that we could systematize this and launch one thing successfully and then do it again and again. Isn't that the point? Because who wants to just create one thing and just live off that forever? It's to me it's so boring so let me show you the basics of what we do and then tons of time for questions here. So this looks familiar. This is what we call idea mapping and I want you to write down three different things so rather than just ideas because it's kind of like me walking up to you saying told me a story and you're like, uh but if I said like, oh, what'd you do last weekend do you have a ton of stories? So here three ways you could break it down skills you've developed, like negotiating your salary knowledge you've acquired, like, okay, um, and challenges you've overcome now. Isn't it interesting that so many people forget this challenges you've overcome? What are some classic challenges that people have overcome losing weight? Um, getting divorced, let's see being in debt, they're classic challenges now someone who's gotten out of debt a lot of times, they think there's no way I could start a business. I'm not a c f p, but actually, the cfp is not the point. The point is that they've been through the emotional experience and the intellectual experience of being in crushing debt and then getting out of it. Do you know for weight watchers in order to be a weight watchers coach, you have to have been in the program and stuck with it for several years. Why do you think that is what you think? They're not saying? We need your nutritional credentials? Or rather, you have to have been through the program and stuck with it because there's something very real about someone who's gone through a challenge and overcome it, right? Someone who actually knows the fears, you have what you feel like that's, very important, and I say this because so many of us focus on these intellectual things, what did I learn in school? What's, my credential, good that's, good, you should do that, but also what? Our challenges you've overcome. Okay, these are all great things to write down, and typically I like to see. I like to see you produced twenty to forty ideas with just this slide right here. Okay, now, today we're going to fast forward. We're going to assume that you have twenty to forty ideas. And so now the question is, what do I do, which one of these works? So I just do all of these it's gonna take me thirty years to figure it out. We're gonna have to do that. We're going to use some frameworks to narrow them down.

Class Materials

bonus material with purchase

Ramit Sethi Interview
3 Negotiation Scripts
5 Negotiation Case Studies
Freelance Email Proposals
Freelance Income Roadmap
List of Freelancing Ideas
5 Resumes That Win
VIP Email Teardown
Updated Resource Link: I Will Teach You To Be Rich

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This course changed my life. After watching Ramit on Creative Live, I bought his book, then signed up for his newsletter, then bought several of his classes. You could say I am officially drinking the Ramit Kool-aid now, but I'll tell you why... His stuff works. You have to trust the system, but I've been able to create a rich life for myself by my definition of rich and I am so happy. It takes work, but I am so grateful I found Ramit in my 20s so I can truly enjoy my 30s over the next decade. Without this course, I would still be complaining that people don't want to hire me because my prices are too high and whining that I am not valued, when in reality, the problem was me. Thanks Ramit for always speaking the hard truths and giving people wake-up calls to get their act together and live the life they want... It's possible!

Adrian Farr

Ramit is a huge inspiration, he is not just a 'been there and made loads of money' kind of guy, he is a 'been there and made loads of money, and here's how I did it' kind of guy! Ramit really gets down to helping you understand not only how to make money but also how to save it too. I am looking forward to reading his book and plan to implement a lot of his systems into my own life.


I have taken a few business classes for creatives online, but this is by far the most comprehensive, most practical course of all. Especially for someone like me who loves Ramit's work but has not made a decision to commit to his full courses, this is a great introduction for what he can offer. He pushes you to think outside the box and see all the possibilities that we can have in a very clear, logical way. If you are unsure which class to take to learn about business, this is all you need.

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