I'm gonna talk to you about a subject

that literally changed the course of my life.

It's a subject not many people understand,

but those who do sure live a lot better

than the ones who don't.

Now, Spanish Distiller one time said,

"The good life's expensive.

"There's another way to live that doesn't cost as much,

"but it isn't any good."

Well, a lot of what he said is true.

Many years ago, a man gave me this book,

Think and Grow Rich.

I was flat broke.

I had always been flat broke.

I had never had any money.

I was 26 years old, I had two months' high school

and no business experience.

He said, "Bob, you read this, do exactly what I tell you,

"you can have anything you want."

Now, I really didn't believe that,

but I believed he believed it.

And I said, all I want is some money.

I figured if I had enough money,

all my problems would go away.

See, I was earning $4,000 a year, but I owed 6,000.

If I had paid every cent I owned, or earned,

in 18 months, I would have just broken even.

So I really didn't think I was going

to be able to change that.

Do you know that within a year,

I was earning 15,000 a month.

I went from 4,000 a year, to 15,000 a month, within a year.

Now, I hadn't got that much smarter.

You don't have to be very smart to earn money,

but you do have to understand some basic rules,

and that's what I want to talk to you about.

You'll notice here, where we put money up on the screen,

there's a young lady there, and myself.

She is my business partner, and I'm gonna tell ya,

if I ever met anyone that understands money,

this lady sure does.

Sandy Gallagher is an absolutely brilliant woman.

She was a securities attorney when I met her,

had been in the banking business, in the law side of it,

for 20 years.

And she had done $100 billion in business.

Now I found that out by asking her.

Said, "How much did you do?"

She said, "$100 billion."

I thought, you mean $100 million.

She said, "No, $100 billion."

Now, if you considered, she was turning banks public,

she was buying banks, selling banks, merging banks,

so she was dealing in lot of money all the time.

And I thought, that's the kind of person

I want to work with.

Well, she is my business partner today, and has been

for the past 10 years.

She's absolutely brilliant when it comes to money.

Well, that's what I'm gonna talk to you about.

And that's what I want you to think about.

You see, the truth is, you can earn as much every month

as you're presently earning in a year.

We can show you how to turn your annual income

into a monthly income.

Now that may sound like a gross exaggeration,

but it is really not.

It's the way it happens.

Now, here's something that I read in this book,

when I first started to study it,

and I first started to earn some money.

It was by Napoleon Hill, and it's called Big Money.

Listen very carefully, because when this is done,

I'm gonna show you how you can execute this.

Napoleon Hill said, "When money comes in quantities,

"known as the big money, it flows to the one

"who accumulates it as easily as water flows downhill."

Now he says, "There exists a great stream of power,

"which can be compared to a river,

"except that one side flows in one direction,

"carrying all who get into that side of the stream

"onward and upward to wealth,

"and the other side flows in the opposite direction,

"carrying all who are unfortunate enough to

"get into that side, and not able to extricate themselves

"from it, downward to misery and poverty."

Now he said, "Every person who has accumulated

"a great fortune has recognized the existence

"of this stream of life.

"It consists of one's thinking process.

"The positive emotions of thought form the side

"of the stream which carries one to fortune.

"The negative emotions form the side which

"carries one down to poverty."

Now he said, "This carries a thought

"of stupendous importance.

"To the person who is following

"what we're talkin' about here,

"with the object of accumulating a fortune.

"If you are on the side of the stream of power,

"which leads to poverty, this may serve as an oar,

"by which you may propel yourself to

"the other side of the stream.

"It can serve you only through application and use.

"Merely reading and passing judgment on it,

"either one way or another, will in no way benefit you."

Now he says, "Poverty and riches often change places.

"Poverty may, and generally does, voluntarily

"take the place of riches.

"But when riches take the place of poverty,

"that change is usually brought about

"through well-conceived, and carefully executed, plans.

"Poverty needs no plan.

"It needs no-one to aid it, because it is bold and ruthless.

"Riches are shy and timid.

"They have to be attracted."

Now, of course we talked about that in The Secret,

you've got to attract it.

Now, I think you're gonna enjoy this.

First of all, money has to be earned, and there is a law

that governs this whole universe.

Everything operates by a law, well Emerson

wrote beautifully, Ralph Waldo Emerson,

on the Law of Compensation.

And the Law of Compensation is exact.

The Law of Compensation clearly states: the amount

of money you earn will be in exact ratio to

these three points.

Number one, the need for what you do.

The need for what you do.

Number two, your ability to do it.

And number three, the difficulty there will be

in replacing you.

Now think of that.

Number one, the need for what you do.

Number two, your ability to do it.

And number three, the difficulty there is in replacing you.

Now, odds are pretty good, the need for what you do

is already there, you don't have to anything about that.

Number three will be taken care of if you

take care of number two.

You may wanna think about this for a little while.

I thought about it for a long while,

and I realized, it's pretty true.

So you see, you only have to focus

on one of those three points, and that is number two:

your ability to do it.

Whatever you're doing, you wanna get better at it.

Just keep working at getting better at what you're doing.

And there isn't any competition.

You're the only competition you're ever gonna have.

Master whatever you do.

Master it.

Now, I want you to think of this.

There are only three strategies for earning money.

Just three strategies.

Pay close attention.

It's M 1, M 2, and M 3.

Now, before I start into them, here's something

you wanna burn into your mind.

If you don't teach your children how to earn money,

odds are pretty good they're not gonna learn.

School does not teach us how to earn money.

You can go all the way through school,

you can go to Harvard, Oxford, Stanford, won't matter,

they do not teach you how to earn it.

They'll teach you how to invest it.

They'll teach you how to store it.

They'll teach you how to count it.

But they do not teach you how to earn it.

Now there's three strategies.

If you're gonna teach your children,

you teach them number three.

But let's start with number one.

Number one strategy is used by 96% of the population,

and it won't work.

It never has worked.

This is where you trade your time for money.

You see this strategy has an inherent problem,

it's called saturation.

It's-- if you run outta time, I don't care

how effective you are, I don't care how much

you earn an hour, you're gonna run outta time.

You're trading your time for money.

It doesn't work.

It does not work.

Number two is an excellent strategy, but it's only used

by 3% of the population.

Number two is where you invest money to earn money.

Now, people in the number one strategy,

they hear about this, and so they squirrel a little bit

of what they're earning away, and they invest it,

but they don't understand how to invest it,

and they usually lose it.

If you're gonna invest money, you really gotta know

what you're doin', or go to somebody that has proved

that they know what they're doing.

Number three is where you invest money to earn money.

Now the first two strategies are not the one

you wanna focus on.

Here's the one you wanna focus on: number three.

It's only used by approximately one person

out of a hundred.

This is where this group earns almost all the money.

96% of all the money that's earned goes to a very

small select group of people.

And I'm gonna tell you something, I used to think

they were really smart.

Some of them aren't very smart.

I was earning over a million dollars a year,

and I started to analyze what the heck was I doing,

how was I doin' it?

I had stumbled on M 3.

I didn't know what I was doin', but was doin' it.

I had been raised to believe, if you're gonna earn

a lotta money, you're gonna be really smart.

I knew I wasn't that smart, but I was earning

a fair amount of money.

M 3 is used by 1% of the population, but they are 96%

of all the money.

These people multiply their time by setting up

multiple sources of income.

Now that's the strategy.

How do you set up multiple sources of income?

Well some people get that mixed up with multiple jobs.

That's not multiple jobs, it's multiple sources of income.

The truth is, you can set up sources of income

where you're earning money while you're sleeping.

And it's never been easier than it is today.

With the internet, and with the way we're working,

man, you can make it happen.

So here we are back again.

What we want to do is show you how to turn

your annual income into a monthly income.

Now pay attention, because this is super important.

It's very very important.

This can be accomplished by having

multiple sources of income.

You check back in history, you're gonna find

all wealthy people have always had

multiple sources of income.

They didn't have one, they had all kinds

of different sources of income.

I'm not quite sure how many I've got.

I don't even look after them, I have somebody else

look after them.

Sandy's got a team of people, my business partner,