David Laroche: James, I have a question for you because you have a lot of expertise in how to get rich. How can you become a millionaire, according to you?
James Malinchak: Well, basically, I think it comes down to three things. I think success is always three things, boiled down to these. Number one is mindset. It’s not just positive, wishful thinking; it’s changing the way you think on a daily, weekly, monthly, yearly basis. How do you think, especially, about your business and what you’re doing, but that’s not enough. A lot of people teach “thinking”, but it’s really not thinking; it’s mindset, like becoming a different person with the way you think, but that’s not enough. Then, it comes to the second thing—skill set. You actually have to go out and learn skills that will help you to produce more income or more wealth, whether that’s investing or whether that’s learning how to get more business and keep more business. You have to actually learn skills. You can’t just have the mindset; you can’t just have thinking. It’s got to be a skill set you have to have, but that’s not enough. It’s the third thing you need, also.
David Laroche: Okay, mindset, skill set…
James Malinchak: Mindset, skill set and then, get off your assets—get off your butt and go do something.
David Laroche: Take action.
James Malinchak: Take action! So, if you have this great mindset and you learn skills, you learn things that will help you, but you don’t do anything with them, then nothing is ever going to happen for you.
David Laroche: Three questions: how do we develop the mindset, the skill set and what kind of actions we have to take now, for the people who are following us now?
James Malinchak: Go like this [grabbing]… go like this. All the information for anything you want to do is out there; you’ve got to go grab it. So, let’s take mindset. The first thing is you’ve got to see who you’re hanging around. Are you hanging around people who are winners; people who are going places; people who are trying to become wealthier people, who are trying to make a difference in the world or you’re hanging around the folks who are “Poor little old me… Nothing is going to work…”? So, who are you hanging around, because that rubs off on you? Also, your environment… your environment that you’re in. Are you in a positive, upbeat, exciting environment or you are in a boring, low-key and “woe is me” environment? So, it’s who you hang around and which environment you hang around that will help you to develop your mindset.
The skill set part is you must read books; you must take classes; you must invest in mentors and coaches, and consultants; you must go to seminars. (You and I met here at a seminar). It’s called “GIGO”—Garbage In, Garbage Out; Great In, Great Out. So, you have to keep filling up your mental garden; you have to keep planting good seeds; you’ve got to keep learning. I always say, “If you want to go more, you’ve got to grow more.”
David Laroche: As a result, you become … a better person.
James Malinchak: Absolutely. People think, “I want my income level be here [up], but yet my skill set level is here [down].” It doesn’t work that way. You’ve got to raise the skill set level to raise the income level. See, you can’t have your income level here [up] if your skill set level is here [down]. If you didn’t really learn something and become good at it, didn’t learn how to master it, then there is no way that your income will raise, unless you raise your skill set level. And, then, as far as “get off your assets”, that third part, take action — I think one of the things that stops people is this—“What if it doesn’t work out?” or “What if I fail?” And that’s a bad way of looking at it. So, reframe how you see it and turn it into “What if I DO make it work? What if it DOES happen? What if I succeed?” See, everybody focuses on “What if I fail?” One of the things that I found that helps me to take action is I focus on “What are the great things that could happen if this works?” We could impact more people; we can make a bigger difference…
David Laroche: Maybe it’s only one person … with luck, but if it works, great.
James Malinchak: Absolutely.
David Laroche: I have another question about money. A lot of people want money, but deep inside themselves they don’t like money. Can we change it and how can we change that? And do we have to love money to get money?
James Malinchak: No, I don’t think you have to love money. I think you have to respect money. The first thing is we have to understand what money does. It’s not money that people want; it’s the freedom; it’s the relieving of stress because maybe there is too much debt. And first of all, I will tell you, anybody who thinks money is not important — When people need food, a charity needs food, a lot of times it takes money to buy the food so people could eat. All the wishing and hoping in the world is not going to buy people food. Money is extremely important, but it’s not money so you could have a fancy car or a house. It’s money and what it does for you. So, first of all, you’ve go to look at it differently. You can help more people when you master a skill and make more money. If you want to donate to a charity, you can donate in a bigger way. I tell people all the time, “Look, if you don’t want to keep money, great. But at least learn how to make it so you can give it away and help more people.”
David Laroche: Is it a key factor to get more money the fact that you have in mind helping more people?
James Malinchak: Oh, absolutely… absolutely! It’s one of the main key factors; it’s one of the seeds. When I do these trainings – these , these boot camps (www.bigmoneyspeaker.com boot camps) – one one of the things that I always tell in the very beginning is, “Money is not a bad thing when you’re doing good things with it—if you’re giving to people who are less fortunate; if you are paying off your own debt so you’re not stressed; if you’re caring for your aging parents; maybe paying for children to go to school…”
David Laroche: Find your own cause and follow it.
James Malinchak: Yes, this . This is just my belief and I know it’s, probably, not realistic, but I like to think people don’t want money so they can go buy fancy cars and boats, and all that stuff. I really like to believe people want money so they could do things with it that help folks, not only themselves, but help others. But it also relieves a lot of the stress that comes from being in debt or not having money. So, I think you’ve got to really understand “why?” It’s inherited that we think, “If I make money, then I’m a bad person.” That’s not true. If there’s no money, there aren’t charities that are funded; there aren’t churches, synagogues that have roofs over them. A disaster, like a hurricane, or something happens and the next thing you know it’s people writing checks that are helping people to rebuild homes. So, you’ve got to change the way you look at money.
David Laroche: We don’t have a lot of time, so I have to choose my questions. When people set goals there are a lot of ways to do it. For example, someone can write “I want to have $1 million dollars per year” but when he sees this goal, he feels maybe 5% certain. Do you understand me?
James Malinchak: See, a lot of times they write a goal, but it’s too high, so it’s not real. And you have to break it down and make it in steps, step by step. Then you can, over time, achieve that goal.
David Laroche: So, I have to find the right goal that I feel I can do it.
James Malinchak: It has to be realistic; it can’t be just wishful, pie-in-the-sky thinking. It has to be an attainable goal with small, little steps that when you add up all the small steps it can lead you to the bigger goal.
David Laroche: How do you know the difference between realistic and fear …
James Malinchak: Well here—“I want you to go out and next week make $100 million dollars.” Is that realistic?
David Laroche: No.
James Malinchak: No, it’s not realistic for us, but people set it all the time and they have no real plan on how they will do a goal. So, if we say we want to make $1 million dollars — And people tell me that all the time, and the first thing I say to them is, “How are you going to do that?” And they’ll say, “Well, I’m going to go out and help more people.” I’m like, “No, no, no. Here’s what I mean. What product are you going to offer? What service? What cost is it taking to put that together? What are you going to sell it for? How many do you need to sell?” See, that’s a realistic plan to generate $1 million dollars in income for a business. For me, what I always try to teach folks in my trainings is “Whatever you want to do, and it doesn’t have to be ‘to make money’. It could be ‘get in shape; lose weight…’”
David Laroche: Reach your goal…
James Malinchak: I’m not going to lose 30 pounds over night. There are things I must do that are small, realistic steps: How many calories do I have to reduce? How much exercise do I need to add? How long? Is that over a week? Is that four weeks? Is that six months? I need to have a realistic plan that will then allow me to hit that bigger goal.
David Laroche: Yes, to achieve it.
James Malinchak: I think what happens is when they set this huge goal, they have no idea how they are going to do it, and therefore the fear starts to set in and the self-doubt. But if you set a realistic plan and you look at it, and say, “You know, I actually can do this.”
David Laroche: “I can do it.”
James Malinchak: “I can do this.” If I want to walk over there, I’m not going to walk from here through the water over there, but I’ll say, “Look, if I take about 15 minutes and walk over this way and go around there, I actually can get there.” That’s realistic. Whereas walking from here to there, through this water…
David Laroche: You can try just … to be sure…
James Malinchak: Now I get nervous and scared, and self-doubt. But when I plan on a realistic plan with realistic steps, I can get over there. The same thing for anything we want to do in life.
David Laroche: I have a last weird question for you.?
James Malinchak: A weird one?
David Laroche: Yes, a weird one.
James Malinchak: I thought these were weird. [laughing]
David Laroche: I think it’s the first time you’ll hear this question. How to become a loser? It’s very important for me so keep staying serious, please.
James Malinchak: I’ve never been asked that, but that is a great question. It’s very simple—hang around losers.
David Laroche: It’s the first step?
James Malinchak: Now think about it—you become who you hang around. So, I tell that especially to kids when I speak to them, “If you want to be a winner, hang around winners—people like you and I, who have goals, dreams or going places. If you want to be a loser, hang around folks who are talking bad about others, who don’t have any goals, who could care less about school or studying, and you’ll find out how to be a loser really simple.” I’m such a big believer in “Who you hang around determines whether you go up or down.”
David Laroche: So I can go down quickly with a loser?
James Malinchak: Hang out with me. [laughing] No baby, we’re winners! We’re going to the top!
David Laroche: Yes, it’s great.