Resources - A Key in The Science of Getting Rich

Turning desired outcomes into realized outcomes is all about resources. A resource can be defined several ways including;

Something that can be used for support or help.
An available supply that can be drawn on when needed Means that can be used to cope with a difficult situation.

Think about it, the desired outcome of owning a 5,000 square foot ski villa in Vail has a different connotation to Bill Gates versus the average American. The reason is of course resources. Gates has the resources to make this happen immediately, most people do not. He just needs to pick his villa out. The rest of us need to accumulate adequate resources in order to realize the desired outcome of owning a ski villa in Vail.

When we are not where we want to be in life, not experiencing the things we want, owning the things we desire or achieving the things we feel we should be achieving, it is because we have a resources gap. Closing resources gaps is how we move closer toward making desired outcomes into realized outcomes. It is a very real and focused way of thinking about achievement in life.

Resources are thought of in terms of the three Cs.

Capital 

Contacts 

Competence

Capital - This is your income or earning power and your financial assets. What you earn each month from all of your income sources including; your job, any investments you may have such as stocks, bonds, real estate etc., as well as any income you earn from any entrepreneurial ventures you are involved in. Additionally, your capital is your net worth, or your assets minus liabilities. You should know at all times your net worth as well as your liquid resources or cash available. This includes actual cash in the bank and investments

that can be easily converted to cash. You should always have available cash and/or credit to take advantage of opportunities or to handle emergencies as they arise.

Contacts - If you have a job, they are human capital you can draw upon to further your financial capital. This is your network. The old adage it’s not what you know, it’s who you know comes to mind. If you are self-employed, these are your customers, if you sell a product or your clients if you render a service. Don’t forget the people that you rely upon to do your job or operate your business, these include your employees and your vendors, your financial partners - your debt and equity sources. When thinking about your contacts remember transparency is trust. If people trust you they will be transparent - they will let you in on what they know and share their world with you. The converse of this is do not share too much with others until you know you can trust them completely.

Competence - This is what you offer the world. Author Stuart Wilde said, “What you put out is what you get back, and the reason why so many are so short of money is that they put little or nothing out.” Absent luck or another random factor, for the great majority of people their competence dictates their success in life. The competent doctors make more than the less competent doctors, same for almost any other field. Even for athletes this is true as the more competent ones make more than the less competent ones. The 300 hitter in baseball usually makes more than the 200 hitter. Developing competence is a result of your commitment to your craft. The most successful people are usually the most competent because they have the most commitment. Absent tremendous God given talent, those who commit to their craft whatever it may be usually outshine equally talented people with less commitment. It has been said that it takes ten years of consistent practice to become expert at something. Excellence takes time and commitment.

It is important to realize that the three Cs are interrelated. If you have capital, it is easy to gain contacts. If you have major league competency in say investing, you will have no problem attracting capital to your ventures. Raising your level in any of the categories is frequently the precursor to raising it in the others. Most of the actions you will take involve increasing the three Cs in your life. Increasing the three Cs in your life is the day to day path to achieving your desired outcomes. Commit this sentence to memory and repeat it to yourself frequently - then live it and do it.


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