Concentrate on Concentrating
- WEALTHY: A Nobel Prize lecture in minutes (Michael Masterson)
- HEALTHY: 7 nutrient-dense foods for winter (Dr. Al Sears)
- WISE: Ray Knight on the ability to concentrate
ALSO IN THIS ISSUE:
- A "Titanic" goof (Robert Ringer)
- The right way for a boss to say no
- Add "crux" to your vocabulary
The Only Three Ways to Grow a Business
Did you know that there are only three ways to grow a business?
- Increase the number of customers.
- Increase the average transaction value.
- Increase the frequency of repurchase.
Find a way to maximize each one, and your business will experience an
astonishing rate of growth.
In his "9 Pillars of Business Growth" program, acclaimed consultant Jay Abraham outlines hundreds of proven, frequently unrecognized, and almost totally
underutilized ways to grow these three key areas of your business. If you own a business (or would like to), be sure to take a look at Jay’s program.
- Patrick Coffey
What Drives Inflation?
By Michael Masterson
Edmund S. Phelps, a Columbia University professor, won the Nobel Prize for Economics. "It was given him for his explanation of how wages, unemployment, and inflation interact with one another," The New York Times said.
His idea, in a nutshell, is this: Wages and inflation tend to rise in tandem, each pushing the other, until unemployment gets to a level (an equilibrium or natural level, he calls it) where prices no longer rise.
I understand how wages and inflation can move in tandem – but how does inflation cause unemployment? And how does a certain level of unemployment slow down or stop inflation?
I asked Andrew Gordon, ETR’s financial expert and editor of our new investment service, INCOME, to explain. This is what he had to say:
"Unemployment slowing down inflation makes complete sense. In a tight labor market, wages go up. And when there are a lot of unemployed people looking for scarce jobs, wages go down. We all understand that, yes? Phelps’ theory is that when many people are earning relatively low (or no) wages, spending, in general, is reduced. It is reduced so much that companies soon face rising inventories (or at least the prospect of rising inventories). So they either cut prices, stop increasing them, or increase them by much less. Inflation is thus stopped in its tracks.
"And how does inflation cause unemployment? When inflation sets in, production costs go way up, because companies have to pay more for materials, services, and employees. And this is the key to Phelps’ argument: Companies (and their customers) assume that tomorrow’s prices will be worse than today’s. So suppliers begin charging more today for the materials companies will need tomorrow to make and sell their products.
"You see how the inflation cycle becomes self-fulfilling – fueled as much by expectations as anything else.
"At some point, companies have to choose between keeping employees and paying their bills. So they cut employees – a decision made easier because, due to high prices, consumers can afford to buy fewer things. Of course, that only contributes to the downward spiral of less purchasing power … requiring lower production levels … leading to more unemployment. That’s how stagflation (the simultaneous existence of both high unemployment and high inflation) came about in the 1970s.
"So when inflation threatens, one way of stopping it is to increase unemployment (by slowing down the economy). But if inflation is under control, unemployment doesn’t have to be increased – and, in fact, can be lowered. As a result, you can have low unemployment and low inflation at the same time – which is what happened in the 1990s.
"That’s why Phelps’ Nobel Prize-winning theory is considered so important. It allows governments to prevent stagflation and strive for low inflation with low unemployment."
[Ed. Note: Look for Andrew's advice to help you set your wealth-building goals for 2007 in tomorrow's issue of ETR.]
"Concentration is the ability to think about absolutely nothing when it is absolutely necessary."
Ray Knight
Kicking Off the New Year With ETR: Concentrate on Concentrating in 2007
By Robert Ringer
When I finished rewriting Winning Through Intimidation, I felt pretty confident that there were no glaring errors in the new edition (re-titled To Be or Not to Be Intimidated?). After all, I had done about 25 drafts of the rewrite.
Nevertheless, I thought to myself, "Hmm … seems I’ve been here before." Meaning, every time I’ve finished a book, I believed my editor and I had caught every mistake. Such a naive belief stems from not remembering the lessons of history.
What I’m saying is that I don’t believe there has ever been a book that didn’t have at least one typo or missing word or other obvious mistake in it. And, to my chagrin, To Be or Not to Be Intimidated? was no exception.
Of course, I don’t read my books after they’ve been printed, so these "catches" have to come from someone else. In this case, it was a good friend who called my attention to a place in the book where I stated:
"Show Victor Vermin the agreement that spelled out my commission? Are you kidding? Victor ate little kids for breakfast and didn’t bother to spit out the bones. He rooted for the Pacific Ocean in Titanic."
Brilliant … funny … well written. I couldn’t stop mentally patting myself on the back when I came up with those dazzling words. And, as I did with the entire book, I went over them draft … after draft … after draft.
Only one problem. As my friend pointed out, the Titanic didn’t sink in the Pacific Ocean; it sank in the Atlantic! (Will Leonardo DiCaprio ever forgive me?) Getting hold of myself, I quickly checked to make sure my socks matched. (Both black. Good sign.)
It really irritates me that Homer Simpson is so much more famous than I am. After all, I say "Doh!" more often than he does. I’m telling you, it’s an unfair world.
Yes, my mistake was corrected in subsequent printings, but the question remains: How does a perfectionist like me make such a dumb blunder? The answer, I believe, is a lack of concentration. But there’s a bit more to it than that. Let me explain.
Some time ago, a wise old sage said to me, "You know what I do to cut down on mistakes? I concentrate on concentrating."
What simplistic brilliance! It had never occurred to me that in order to concentrate, you have to concentrate on concentrating.
Thinking about this life-changing insight prompted me to hearken back to the 1972 Miami Dolphins, the only team in NFL history to go through an entire season undefeated and untied.
I vividly recall the legendary coach of the Dolphins, Don Shula, explaining why a "no name" team like his was able to go through 17 games without a loss. Shula said that though his team wasn’t that much better than most of the other teams in the league, they did excel at one thing: concentrating.
Specifically, Shula said that his players didn’t make silly mistakes at crucial moments. They concentrated on not jumping offside or getting called for unnecessary roughness. The Dolphins running backs concentrated on hanging onto the football when getting tackled, and the receivers concentrated on locking the pass into their hands before turning on the afterburners.
Concentrating on concentrating penetrates down to the simplest aspects of our lives.
Have you ever bumped your hip on the corner of a table and ended up with a three-month bruise?
Or accidentally sent an e-mail to the wrong person?
Or not heard a word of something your spouse just told you?
Or checked two or three times to see if a door was locked?
Or reread a paragraph more than once because you had no idea what you just read?
I’m sure you know what I’m getting at. In each example, the problem was that you weren’t concentrating. I don’t know any other way to reduce the number of such mental lapses but to make a conscious effort to concentrate.
Through the years, I’ve repeatedly stated that the difference between success and failure is much smaller than most people might suspect. As with any other aspect of success, concentrating on concentrating, of and by itself, doesn’t guarantee positive results. But I find it amazing how much of an edge it gives me when I consciously focus on this fascinating mental skill.
Make a commitment in 2007 to concentrate on concentrating, and I think you’ll quickly see what I’m talking about. At the very least, you’re sure to notice a significant decrease in Titanic-type mistakes in your life.
Gotta cut it short here, because I have to check the front door again. I think I locked it, but …
[Ed. Note: Sign up today for a complimentary subscription to Robert's thought-provoking e-letter, Voice of Sanity in an Insane World]
Why Are Most Real Estate ‘Investors’ Still Going to Work Every Morning?
If you want to collect an automatic monthly income of $10,000 or more – without having to get up every morning and "go to work" – most real estate experts are giving you the wrong advice. They rave about buying and selling single family homes. But… they don’t admit that single family homes are difficult investments for instant passive income… for attaining real financial freedom by not having to get up and go to work every morning.
Dave Lindahl makes $27,000+ in passive income month after month… and can easily show you how to reap huge positive cash flows from real estate – with less risk and less money down than single family homes.
Kam Weiler
Contributing Editor, Main Street Millionaire
Reader Feedback: "A year later, I want to thank ETR …"
"Being raised in China, I’ve learned about traditional American holidays through my school kids … and Early to Rise.
"Last year, [inspired by one of Michael Masterson's articles], I invited a visiting scholar to Thanksgiving dinner. He was away from his family in China for a few months. He seemed to enjoy the turkey dinner and wine with us. His experience reminded me of my lonely years of similar working and living experiences. Looking back, I’m very thankful for what a wonderful life I have now with my loved ones together. I’m working toward an even better life to come.
"The day after that Thanksgiving, I took advantage of some practical help from ETR: My family went out (to the shopping malls). I used ETR’s shopping tips and bought a few useful items for cooking and my home office at good discount prices.
"A year later, I want to thank ETR for continuing to start my day with information on wealth, health, and wisdom."
Y.D.
Gaithersburg, MD
Beyond "Comfort" Food
By Al Sears, MD
During the winter months, it’s tempting to reach for comfort foods – especially the ones that warm you up, like a hot slice of pizza or a fast-food burger. These foods have plenty of calories … if starvation is your primary concern. But what most of us really need at this time of year are nutrient-dense foods.
Here’s a short list of some of my favorites:
- grass-fed beef
- blueberries
- wild salmon
- spinach
- dark chocolate
- garlic
- broccoli
These foods are not only flavorful and satisfying, they’re also full of immune-boosting vitamins and minerals and illness-fighting antioxidants. If you tend to get viral infections (like colds and flu), in addition to eating more of these foods, I recommend supplementing with a robust dose of vitamin C during the winter – 4,000-mg per day taken in two doses, once with breakfast and once at bedtime.
[Ed. Note: For more easy-to-follow dietary strategies, check out The Doctor's Heart Cure .]
Worth Quoting: Richard Branson on Turning People Down
"I turn people down with extreme difficulty sometimes, because the people I’m saying no to are people I don’t want to discourage. And it should be difficult. Saying no shouldn’t be an easy thing to do, and you have to be good at it. I often used to dodge doing it myself, and hide behind other people and delegate it, but if you’re the boss, that isn’t the right thing to do.
"I remember when I was a 15-year-old asking Vanessa Redgrave or James Baldwin for an interview, and the fact that they took the time to respond meant an enormous amount to me. It inspired me. So it’s extremely important to respond to people, and to give them encouragement if you’re a leader. And if you’re actually turning people down, if you must say no, whether it’s for a job or a promotion or an idea they’re proposing to you, take the time to do it yourself."
(Source: Business 2.0)
15 Minutes A Day To Personal Freedom…
Just think, reaching your goals this year could make the difference…
Between retiring with just enough to get by… or with a millionaire’s portfolio…
Between having a job you dread going to every day…. or the job you’ve always dreamed about…
- Charlie Byrne
Word to the Wise – Crux
"Crux" (KRUHKS) – derived from the Latin for "cross" – is the most critical/important point or feature.
Example (as used by Michael Masterson at ETR’s Info-Marketing Bootcamp): "Ideas are the crux of the business we’re in. In information publishing, ideas are what will give you your breakthroughs, both at the front end and the back end."
Michael Masterson
Copyright ETR, LLC, 2007
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