The Tribemaster's Daily Mentor | Volume 1: #10

FROM: The Desk of The Chief Tribemaster

Hey there

Money is a result.

It's the direct result of a practice or business that is properly optimized.

Being broke is a habit of thought.

Fortunately it's a habit that can be broken.

I have an aunt I call Aunty Kokomma.

And for as long as I can remember she's always been supportive of me.

Always making sure that I was pretty well funded.

Then I go for NYSC - the mandatory one year paramilitary training all graduates in Nigeria receive.

And one of those days I was visiting - she sat me down and had a little talk with me.

Now just to give you a bit of a back ground.

My Aunty Kokomma started off in life as a cleaner at UBA.

And stayed there until she retired at the age of 36.

20 years of service.

By the time she retired she'd built her own house and started her trading company.

In the decade that followed, she bought off all the land from her neighbors but kept them on as caretakers of the very land she bought from them.

By the time we were having this talk - she was about to kick off the third phase of her plan.

I wouldn't bore you with the details of our conversation.

But the summary of it was two questions and three answers:

Question: How much do you currently have in your bank account?

Answer: N33,350

Question: Why don't you have a million Naira yet?

My answer: I don't know (which was a bold face lie)

Her answer: You cut your coat according to your size when what you really should be doing is cut your coat below your size and lose the weight.

I think I'll put that in quotes so you take some time to think about it:

You cut your coat according to your size when what you really should be doing is cut your coat below your size and lose the weight.

I'll be honest.

The first time I heard that, I figured this favorite Aunt of mine is an undercover demon!

Why?

Well I'd known her pretty much all my life and I would never have guessed she followed the advice she was shoving down my amateur throat.

All around me were evidence of a life filled with expensive things.

Not a life suffering and management: which was what I thought she was alluding to.

Noticing the confusion and judgement on my fine, suave face she said:

Eliminate waste, spend your money on purpose. A good life is planned for not stumbled into. And as with all things - it comes with a price tag. Decide in advance the price you are willing to pay for the life you want and pay it in advance.

Like I shared in an earlier issue of TDM - I'm a bit slow.

So yes - it took me a decade to fully understand what she was talking about.

Fortunately for you I did learn and now I'm about to collapse time for you.

This applies to you whether you have zero cash in your bank account or a million dollars plus.

Unless you already have this figured out and are intelligently applying it:

This. Is. For. You.

Remember in our introductory course when we talked about the Money Maker Protocol™?

Well part of that is a little something called Cashflow Engineering™.

The prime idea being that your practice when optimized is going to bring you a lot of cash.

Question: What do you do with the cash?

Answer:

First 50% of all you bring in is yours to keep.

Second all expenses in your practice are pegged at 25%. The specific amount only increases as your revenue increases.

Third 25% of your revenue goes into the savings for growth and investments.

Now let's circle back to your 50% that comes to you.

What do you do with that money?

Well first you have to establish what I refer to as your broke money.

In other words - determine in advance what you mean when you say I'm broke.

For most people broke means zero naira/dollars/pounds/euro/yen etc in their account.

For most of my diamond mastermind clients, broke means a bank balance of a million dollars.

What does broke mean for you?

Let me offer some suggestions:

If you've been around for a while and you're past $10,000 a month in revenue...

Make your target for broke money $31,250

Once you reach it - the goal is simply to double it each year bringing you to a cash balance of $1,000,000 in 5years or a little more than that depending on how aggressive you want to be.

Broke money simply means deciding in advance what cash balance is the equivalent of zero for you.

If you're not yet at $10,000 a month...

Simply divide up $31250 by 2 until you find a number you can commit to starting with and then once you hit it...

Focus on doubling it for the number of years it'll take to get to a minimum million dollar bank balance.

I have a client who started with $1000 as her broke level 8 years ago.

Today her broke level is about $40,000 and she's on track to hit a million dollars in about 6 years.

She's currently 32 years old.

The thing with having a bank balance that you choose never to go below is it forces you to be extra creative in your thinking.

Here's the thing though...

Until you hit your broke level and pass it - behave like you would if you have zero cash.

Once you're past that level, you can reward yourself with putting aside some money for something you've always wanted.

Now I know you're probably thinking: Hian!!!

CTM how do I do this when what I currently make isn't even enough for me.

Well part of what we do in cashflow engineering is a little something called recover and reallocate and it's about making sure that -

1. Your practice is actually optimized for cashflow
2. Eliminating and plugging any waste financially

If you'd like some help with that - hit reply and let me know.

And for a donation of between N50000 to N500,000 for my annual back to school program for my neighborhood kids I'll block out some time for you on my calendar.

Tomorrow I talk you you about a concept in the Tribemaster Framework that we refer to as Trust Amplifiers and how using them is key to building an audience of seekers and a pipeline of clients and customers.

Till then...

Get out of your own way.

CTM

PS: Yesterday I went live in our group #WeAreTribemasters and did a training on Becoming Selectively Famous. The replay will be up for the next few days before I take it down and clean it up for selling.

If you haven't joined the group, feel free to click on the hashtag to join us but remember to agree to the rules or your membership will be declined.