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	<title>I Will Teach You To Be Rich</title>
	
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		<title>Case Study: How Mike earned an extra $6,065 in 8 weeks</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/kYiec00JGlE/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/case-study-how-mike-earned-an-extra-6065-in-eight-weeks/#comments</comments>
		<pubDate>Sun, 13 May 2012 16:35:54 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Case studies]]></category>
		<category><![CDATA[Earn more money]]></category>
		<category><![CDATA[Earning more]]></category>
		<category><![CDATA[Videos]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7985</guid>
		<description>A classic line from people starting to try to earn money on the side: &amp;#8220;I had a lot of people that were interested, then they would disappear and never take me up on my proposal.&amp;#8221; Some people have tried freelancing on their own, but can’t figure out how to turn their sometimes impressive technical skills [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/case-study-how-mike-earned-an-extra-6065-in-eight-weeks/"&gt;Case Study: How Mike earned an extra $6,065 in 8 weeks&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.iwillteachyoutoberich.com/blog/case-study-how-mike-earned-an-extra-6065-in-eight-weeks/" title="Permanent link to Case Study: How Mike earned an extra $6,065 in 8 weeks"><img class="post_image alignright frame" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/Mike_Carroll.png" width="200" height="300" alt="Post image for Case Study: How Mike earned an extra $6,065 in 8 weeks" /></a>
</p>
<p>A classic line from people starting to try to earn money on the side:</p>
<p>&#8220;I had a lot of people that were interested, then they would disappear and never take me up on my proposal.&#8221;</p>
<p>Some people have tried freelancing on their own, but can’t figure out how to turn their sometimes impressive technical skills into actual paychecks.</p>
<p>Most have the same problem &#8212; they don’t know how to sell their services.</p>
<p>That&#8217;s why they end up wasting hours pursuing deals that never close. And when they do find potential clients that WANT to buy their services, they often botch the sale.</p>
<p>For today’s case study, let me introduce Mike, a 20-something web designer who was struggling to turn his freelancing into something substantial. <strong>Before Earn1K, Mike was earning around $2000 per year with his freelance work. Now he&#8217;s brought in over $6065 in just eight weeks.</strong></p>
<p>Here&#8217;s how he did it.</p>
<h3><strong>&#8220;I want the freedom to work from anywhere&#8221;</strong></h3>
<p>A couple years ago Mike and his fiance moved to Vancouver, Canada.</p>
<p>As they settled in, Mike took full time work as a web designer. Though he remembers doing a few good projects, much of the work was mundane and he knew $31,000 a year wasn&#8217;t going to cut it forever.</p>
<p>In fact, with an upcoming wedding, plans to have kids, and a desire for more frequent trips home to the UK, $31,000 a year wasn&#8217;t going to cut it right now.</p>
<p>&#8220;It would be nice to have lots and lots of money,” said Mike, “but the main goal is to have the freedom to travel, raise the kids, enjoy the life, and enjoy my hobbies&#8221;.</p>
<p>By day, Mike continued with his salaried job. By night he spent hours looking for freelancing work. He was pretty sure his web design skills were in demand, but every time he tried to sell a prospect the deal would fizzle away.</p>
<p>That’s when Mike started following I Will Teach You To Be Rich, and signed up for my free newsletter. When I sent out a complimentary Earn1K lesson on how to get inside prospects heads, Mike checked it out. &#8220;The value in those got me hooked. By the time I got to the sales page, I was already sold&#8221;.</p>
<p>But he didn&#8217;t join.</p>
<p>&#8220;I was going to join,” said Mike, “but my financial situation wasn&#8217;t the best. So I passed it up stupidly.”</p>
<p>So Mike bought my book and got his finances in place. After nearly a year of the same frustrations finding freelance work, Mike signed up as soon as I opened Earn1K again.</p>
<p>Here is how he applied the lessons to earn over $6,065 in two months.</p>
<h3><strong>Mike’s a-ha moment</strong></h3>
<p>Before Earn1K, Mike made the same mistake in pitching prospects as many novices do &#8211; he assumed the prospect wanted the same thing he did. As a web and graphic designer, he&#8217;d try to sell them on aesthetics by saying &#8220;hey, you&#8217;re going to have a great looking website&#8221;.</p>
<p>&#8220;I was being too casual,” said Mike, “I was treating everyone like a friend. I didn&#8217;t have belief in my abilities and I would offer stuff cheap or free. I wasn&#8217;t preparing myself enough&#8221;.</p>
<p>Mike was frustrated. He was wasting hours chasing prospects and getting nowhere.</p>
<p>Then came Mike’s a-ha moment. After completing Earn1K, he realized that small business owners want more than aesthetics.</p>
<p>&#8220;I wasn&#8217;t really getting inside their heads to figure out why they wanted a website, or what problems they had with their business and how a website was going to solve it. Once I started thinking about those things I could create a proposal that made them bite.&#8221;</p>
<p>“It was the Briefcase Technique that made the difference for me,” said Mike, “I learned to be incredibly prepared for the meeting and focus on the details.” Then he took action.</p>
<p>Knowing that a potential client was all about exposure for his product, Mike created a detailed proposal. He planned out how people were going to be able to interact with the site and do word of mouth marketing via social media. Mike says, &#8220;it really got him excited how he can create a buzz around his product with other people doing the work, and that literally sold him straight away&#8221;.</p>
<p><center><object width="528" height="297" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/3p28MFt8RBA?version=3&amp;hl=en_US&amp;rel=0" /><param name="allowfullscreen" value="true" /><embed width="528" height="297" type="application/x-shockwave-flash" src="http://www.youtube.com/v/3p28MFt8RBA?version=3&amp;hl=en_US&amp;rel=0" allowFullScreen="true" allowscriptaccess="always" allowfullscreen="true" /></object></center>Less than an hour after the meeting, Mike had his first paying client. Boom.</p>
<p>By delivering enormous value and focusing on details Mike&#8217;s been able to build on his success. One client is pushing another three sites his way. Mike says, &#8220;I got him hooked on my services. Now everything he wants for the web he comes straight to me&#8221;.</p>
<p>Remember how Mike was earning $31k a year? Along with a raise at work, he is now on track to make over $61k. An increase of more than $30,000.<em> A number he can earn &#8212; and actually increase &#8212; for the rest of his life</em>. How much is that worth to him?</p>
<h3><strong>Planning the leap to full-time</strong></h3>
<p>By getting into his target&#8217;s head, Mike&#8217;s been able to convert leads into sales. Goodbye wasted time surfing Craigslist. Hello hours spent earning side income.</p>
<p>And with a few contracts under his belt, now Mike has the confidence to start planning the leap to full-time freelance work.</p>
<p>&#8220;I want to be working full time freelance within the next 12-18 months,” said Mike, “I want to pack in the 9-5.&#8221; He&#8217;s going to convert his job to contract work to make sure he has some regular hours coming through, and as the freelance business grows he is making his dreams come true: freedom of place, freedom of time.</p>
<h3><strong>Get the free 15-page lesson on how to get inside your prospect’s head</strong></h3>
<p>Mike is closing contracts because he deeply understands his prospects needs. I’m giving away a free 15-page bonus lesson on how to do just that &#8211; so you can avoid “no” and go straight to “yes.” If you want to learn how increase your income nearly 100% like Mike did, sign up below.</p>
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<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/case-study-how-mike-earned-an-extra-6065-in-eight-weeks/">Case Study: How Mike earned an extra $6,065 in 8 weeks</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<item>
		<title>How much should a man spend on an engagement ring?</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/R5XpHQrEpOg/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/how-much-should-a-man-spend-on-an-engagement-ring/#comments</comments>
		<pubDate>Fri, 11 May 2012 10:00:53 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Money & Gender]]></category>
		<category><![CDATA[Women and money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7977</guid>
		<description>Here’s one of my favorite money and gender questions: How much should a man spend on an engagement ring? Out of curiosity, I once asked this at the dinner table, and my entire family put their forks down and stared at me. Not good. I like this question because it highlights the gap between rational [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/how-much-should-a-man-spend-on-an-engagement-ring/"&gt;How much should a man spend on an engagement ring?&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.iwillteachyoutoberich.com/blog/how-much-should-a-man-spend-on-an-engagement-ring/" title="Permanent link to How much should a man spend on an engagement ring?"><img class="post_image alignright frame" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/Engagement_Rings_Small.jpg" width="200" height="300" alt="Post image for How much should a man spend on an engagement ring?" /></a>
</p>
<p>Here’s one of my favorite money and gender questions: How much should a man spend on an engagement ring?</p>
<p>Out of curiosity, I once asked this at the dinner table, and my entire family put their forks down and stared at me. Not good.</p>
<p>I like this question because it highlights the gap between rational answers and emotional responses.</p>
<p>Whenever people talk about engagement rings on the internet, here is exactly what happens:</p>
<p>PERSON 1: “Hey guys! I’m going to buy an engagement ring for my girlfriend next month. How much should I spend?”<br />
PERSON 2: “Ugh! What a heteronormative paternalistic anachronism.”<br />
PERSON 3: “I spent $42 on my ring and we’ve been married 58 years.”<br />
PERSON 4: “Forget diamonds. They’re all stained with the blood of exploited people. What about Mossanite/CZ?”<br />
PERSON 5: “Any girl who *expects* a ring is a gold digger! You need to break up with her now. You’re welcome.”</p>
<p>PERSON 1: (Commits suicide at the stupidity of the internet)</p>
<p>Before you answer, I’d like you to consider a few key points from this article: “<a href="http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-tried-to-sell-a-diamond/4575/">Have You Ever Tried To Sell A Diamond?</a>” This is the single-most interesting article I have ever read. Learn how diamond companies used highly sophisticated marketing and distribution to position diamonds as a luxury good, and how they have changed consumer perceptions over time.</p>
<p>Questions to ask before you leave a comment below:</p>
<ul>
<li>Does it depend how much the guy makes? Or the woman?</li>
<li>What if the woman makes more than the guy?</li>
<li>How does <a href="http://www.iwillteachyoutoberich.com/blog/conscious-spending-how-my-friend-spends-21000year-on-going-out/">Conscious Spending</a> play into this purchase?</li>
<li>Do women want an engagement ring? Why or why not?</li>
<li>How does culture play into the decision of how much to spend on an engagement ring?</li>
<li>Does this change for same-sex couples?</li>
</ul>
<p>Answers that will not be accepted because they are stupid:</p>
<ul>
<li>“The divorce rate is 50% for everyone! Save your money!” (<a href="http://www.economist.com/node/9218127?story_id=9218127">No, it’s really not</a>.)</li>
<li>“This is ridiculous because it’s all anecdotes/stories. I want PEER-REVIEWED RESEARCH!!” (Attention, ass: There is no peer-reviewed research on how much a guy should spend on an engagement ring. That’s because this is water-cooler discussion, which is a valuable addition to quantitative data.)</li>
<li>“I hate you Ramit because you assume that only men buy women engagement rings and you are making all kinds of assumptions! Men and women are all different!” (First, this is obvious, but even within a heterogeneous group, there are still patterns. Second, if you’d like to offer up another view that applies to more than 10% of my readers, I am very open to it. However, edge cases of aboriginal nomads getting married on a crocodile farm in Malaysia (“THEY don’t buy engagement rings!”) do not count. We’re talking stories and averages, people.)</li>
</ul>
<p>So, the QUESTION: How much should a man spend on an engagement ring?</p>
<p>Leave your comments below.</p>
<p>&nbsp;
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
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		<title>Why Most People Fail at Making Online Products (And How You Can Win)</title>
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		<pubDate>Tue, 08 May 2012 09:00:32 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Earn more money]]></category>
		<category><![CDATA[Earning more]]></category>
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		<description>A confession: I’ve left millions of dollars on the table by not developing a course about how to build your own online product and sell it on the Internet. My courses have sold well over $100,000 in one hour, and I get asked about how I did it over and over. It would be relatively [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
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&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/why-most-people-fail-at-making-online-products-and-how-you-can-win/"&gt;Why Most People Fail at Making Online Products (And How You Can Win)&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
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<p>A confession: I’ve left millions of dollars on the table by not developing a course about how to build your own online product and sell it on the Internet. My courses have sold well over $100,000 in one hour, and I get asked about how I did it over and over.</p>
<p>It would be relatively easy to teach. I could build a product teaching you how to build a product (now we’re getting meta), including sharing actual sales data, the tactics I use for product launches, my sales copy, the biggest mistakes I’ve made, and conversion rates for various techniques. The product would handily make me 7 figures.</p>
<p>Unfortunately, the blunt truth is, I don’t believe most people will ever be successful building online products. This isn’t just a condescending “I can do it but you can’t” view. No, the data backs this up. The vast majority of people who try to create online products fail &#8212; like 99%+. This is the elephant graveyard where the dream of passive income goes to die.</p>
<p>See, to succeed with an online product, not only do you have to be extremely good at your area of expertise and know the basics of marketing &#8212; including identifying your niche, pricing, finding customers, etc &#8212; you <em>then</em> have to learn all about productization: packaging, upsells, cross-sells, advertising, email funnels, JVs/affiliates, refunds, customer service, sales-page construction, A/B testing, continuity programs, etc.</p>
<p>Unlikely. If we’re being honest, most people have enough trouble mastering the first part of the equation (creating something other people will pay for), much less learning the rare skills of productization. Think about it: Would a personal trainer have you do 400-lb squats on Day 1? No, he would start you off with light lifting to perfect your form.</p>
<p>Why would I sell something &#8212; even if it could make me millions of dollars &#8212; when I know the vast majority of people won’t be successful? The money does not motivate me if you’re not seeing measurable success. Remember, IWT was never about making me money. It was and is about behavioral change. There are tons of ways I could make easy money, but I have no interest in creating a product about creating a product when the vast majority of people will fail. (I encourage you to read <a href="http://www.iwillteachyoutoberich.com/the-75000-email/">The $75,000 Email</a>, a story about turning down easy money because I simply wasn’t interested in it.)</p>
<p>And yet people continue to email me about launching an online product. Recently, there have been more and more successful “micro-products,” which don’t require years of investment and waiting to judge success. Instead, many of these products are high-quality and take only a few months to produce. And with new marketing techniques, they can quickly produce ROI. If the product fails, it’s only a few months and a few hundred bucks out of your life. But if it succeeds, it could be a game-changer.</p>
<p>I haven’t written much about these products, but today, I’ve invited my friend Chris Guillebeau to write about how to build an online product. Chris writes a fascinating blog called <a href="http://chrisguillebeau.com/">The Art of Non Conformity</a>, where he catalogues his goal of traveling to every country by the age of 35 (a goal he’ll hit next year). He’s created several products and has had multiple $100,000+ launch days, so you should listen to him. In fact, he reveals specific numbers below.</p>
<p>Beneath his friendly exterior (and he really is a friendly guy, a lot nicer than I am) is an extremely sophisticated marketing mind that’s built a massive business with customers around the world. And in this post, he’ll show you how to begin creating a product for only $100.</p>
<p>Chris &#8212; take it away.</p>
<p>***</p>
<h3><a href="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/chris-main-photo.jpg"><img class="aligncenter size-full wp-image-7975" title="chris-main-photo" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/chris-main-photo.jpg" alt="" width="143" height="178" /></a></h3>
<h3><strong>Why Most People Fail at Making Online Products (And How You Can Win)</strong></h3>
<p>The infoproduct was launched with much fanfare. A pre-launch campaign, a series of guest posts to bring the message to a new audience, the recruitment of affiliates who would all sound the alarm on the big day.</p>
<p>But then the big day came, and nothing happened. Or at least, nothing exciting happened. A few people purchased, perhaps even a decent number&#8230; but far from the expected flood of customers. After a day or two, sales slowed to a trickle.</p>
<p>What went wrong?</p>
<p>One way to look at it is to say that the person wasn&#8217;t ready. They should have spent more time paying dues, serving as an apprentice, and learning from others.</p>
<p>But consider the case of two individuals, both of whom created massive success by ignoring these prerequisites&#8230; and then consider what other people usually get wrong when trying to replicate these successes.</p>
<p><strong>Case #1: Brett Kelly</strong></p>
<p>Two years ago, Brett had a great family, a steady commitment to Happy Hour microbrews, and a full set of tattoos. What he didn&#8217;t have was a huge Twitter network (just 1,000 followers at the time) or a popular blog. He wasn&#8217;t a WordPress celebrity, and he hadn&#8217;t spent years learning online marketing.</p>
<p>What he did have, however, was a passion for Evernote, the free software that saves “everything” in the cloud. Brett noticed that while there were several Japanese language manuals for helping users get the most of Evernote, there were none in English. Thus he set out to create <em>Evernote Essentials</em>, a comprehensive guide offering tips, tutorials, and shortcuts.</p>
<p>Brett offered the guide online for $25 and made $10,000 in the first couple of days after launch, allowing his wife Joann to quit her job and stay home from the kids. Over the next few months, sales were consistent, surpassing $300 on most days and never slowing down.</p>
<p>I wrote about Brett&#8217;s whole story in my new book, but I had to keep revising the details as his income grew. At first I said it was an $80,000 project, making almost that much each year in profit. Then Brett wrote in with a correction, which I forwarded to my editor. “It&#8217;s now on track to clear six-figures.”</p>
<p>Another month went by and Brett wrote in with another correction, which I dutifully sent along. “Uh, it&#8217;s a $120,000 ebook now.” Then it was $160,000. By that point, my editor had stopped responding to me, so I just sent one final addendum: “Just say that it makes a <em>lot</em> of money.”</p>
<p>Why has this product been so successful, without the usual formula of affiliate recruitment and a “big audience push”? It&#8217;s simple: Brett made something <em>useful</em>. It was simple to make, easy to understand, and the marketplace responded well.</p>
<p><strong>Case #2: Brandon Pearce</strong></p>
<p>In 2009, Brandon Pearce was living in Utah and had a day job as an engineer while teaching music on the side. But Brandon was also intensely curious, and wanted to combine an interest in technology with his passion for music education. As he thought about colleagues he knew, he found the convergence point between his skill and what they needed.</p>
<p>“Music teachers don’t want to deal with business administration; they want to teach music,” he told me. “But in the typical music teacher’s workday, they have to spend much of their time dealing with administrative tasks.” Scheduling, rescheduling, sending reminders—in addition to time, all these things take up a lot of attention and distract from teaching. Furthermore, many music teachers aren’t making all the money they should, since payments are sometimes overlooked and students fail to show up.</p>
<p>Brandon didn’t intend to create a business at first; he just wanted to solve what he called the “disorganized music teacher problem” for himself. The answer was <em>Music Teacher’s Helper</em>, an interface that Brandon created for personal use before turning it into a one-stop platform for music teachers of all kinds. The teachers could create their own websites (without having any technical skills) and handle all aspects of scheduling and billing, thus enabling them to focus on the actual teaching they enjoyed.</p>
<p>The service is available in several different versions, including a free version for limited use and going up to a $588 a year version depending on the number of students.</p>
<p>Three years later, Brandon’s life is quite different. Instead of living in Utah, he now wakes up in sunny Escazú, Costa Rica, where he lives with his wife and three young daughters. He has ten employees living in different places around the world. He carefully tracks his time and estimates that he spends eight to fifteen hours a week directly related to the business. The rest of his time is spent with his family and on various side projects that he pursues for fun.</p>
<p>Oh, and one more thing: Music Teacher’s Helper is currently on track to earn <strong>at least $360,000 a year</strong>. Because his customers commit for the long-term and pay monthly, it’s unlikely that this number will ever go down. Instead, it will continue to increase as more and more music teachers join the ranks.</p>
<p>***</p>
<p><strong>Are stories like Brett&#8217;s and Brandon&#8217;s unusual? Yes and no.</strong></p>
<p>When most people launch an online product for the first time, they don&#8217;t have results like these. Instead, results are more typical of the example from the beginning of the post: lots of work, but little reward.</p>
<p>But here&#8217;s my assertion: You don&#8217;t need to build a huge audience or wait forever to make an online product. You do, however, need to be sure that what you offer is actually <em>valuable </em>and<em> desirable</em>.</p>
<p>The first time I made an online product, I had just started blogging a few months earlier. A manifesto I published had done well and I was actively recruiting new readers, but my subscriber count was still less than 2,000 people.</p>
<p>As I traveled the world, writing about my trips, I noticed that a few recurring questions kept popping up in my Inbox. Everyone wanted to know the same things: how I book airfare, where the best deals were, how to set up a round-the-world plane ticket, and so on. (Bonus lesson: if you find yourself being asked the same kinds of questions over and over, pay attention.)</p>
<p>In response, I decided to create a small ebook called “Discount Airfare Guide.” I know—what a boring title. I launched the product with little fanfare and no hype, just a sense of curiosity as to how my small readership would respond.</p>
<p>The first day I sold a grand total of 35 copies for $25 each, a profit of just over $800. Even though the product was fairly simple, I had still put a ton of work into it. I&#8217;d estimate the time cost to be somewhere around 50 hours, so my initial earnings-per-hour rate was less than $20. Seventeen bucks an hour wasn&#8217;t bad, of course, but I&#8217;d hardly end up crashing Sethi Mansion at that rate.</p>
<p>Even though the product had a tiny launch and a poor initial conversion rate, I was comforted by two facts:</p>
<p style="padding-left: 30px;">1.<strong> I had created an asset.</strong> Now that this product was done, I didn&#8217;t have to do anything else for it. It could sell poorly, but as long as it continued to sell <em>at all</em>, I&#8217;d essentially be making free money.</p>
<p style="padding-left: 30px;">2.<strong> I knew the model would work.</strong> At first, I avoided creating a complex product, offering more than one pricing option, adding audio and video, thinking about how I&#8217;d get paid after the sale, and so on—but once I realized I <em>could</em> succeed even with a basic online product, I got to work building the next one out further.</p>
<p>The next product was the <em>Working for Yourself</em> guide. It still wasn&#8217;t fancy, but it was a bit more deliberate. I put a lot more than 50 hours into it—probably closer to 100 hours or more. I offered two price tiers for the guide, and I recorded a couple of audio sessions to accompany the written text.</p>
<p>On the day of launch, I pressed the button to make it live&#8230; and by that afternoon it had sold $5,000 in copies. This may be a small number in the eyes of some internet marketers, but I felt incredibly happy and grateful.</p>
<p>Later I would go on to sell $100,000 in a day, multiple times. I&#8217;d figure out how to build a continuity program with thousands of members paying every month. But all of those things were secondary—the real success started with understanding that online products <em>could actually work</em> if I took the time to create them properly.</p>
<p>***</p>
<p>What makes the difference between success and failure—and how can you avoid falling on your face? To be more like Brett or Brandon and less like the all-too-common failure story, it&#8217;s not that hard. You just need to beware of a few common (but deadly) mistakes that most people make when offering an online product for the first time.</p>
<p><strong>Mistake #1: Failing to understand what customers really want.</strong></p>
<p>The two case studies hit on something significant—the perception of value combined with a focus on a core need. Whatever you choose to create, remember that most of us want<em> more</em> of some things and <em>less</em> of others. We want more time, money, love, sex, affirmation, and validation. Meanwhile, we want less stress, uncertainty, fear, and hassle.</p>
<p>These characteristics are connected to a singular, simple concept: <em>happiness</em>. The more you can connect your project to <em>happiness</em>, the better. Focus your efforts on adding more of what customers want or removing something that causes them pain, and that&#8217;s where you&#8217;ll find the central promise of a strong online product.</p>
<p>By the way, most people will <em>not</em> buy generic, self-help info. (Yes, some might—but the point is, most people won&#8217;t.) Someone wrote in and suggested that I create the <em>Unconventional Guide to Mentoring</em>. I said that it sounds like a great <em>free</em> project. Regardless of its merit, the odds that a lot of people would buy that guide are quite low.</p>
<p>Instead, you need specificity. You need actionable info. “Earn 1k” is a good example from Ramit, and “Earn 100,000 Frequent Flyer Miles a Year (enough for four plane tickets)” is one from me.</p>
<p><strong>Mistake #2: Misunderstanding the whole concept of “target market.”</strong></p>
<p>To understand the people who will buy what you sell, stop asking your friends what they think of your ideas. First of all, your friends don&#8217;t want to tell you that your idea sucks. Instead, they&#8217;ll usually say, “Dude, that&#8217;s great!”</p>
<p>Consider this recent conversation between Ramit and me:</p>
<p style="padding-left: 30px;">Chris: Ramit, I love you. What do you think about my new project, “Growing seeds for fun and profit?” I&#8217;m trying to decide on the right pricing model.</p>
<p style="padding-left: 30px;">Ramit: Check out all my Starwood points! I&#8217;m going to Vegas and upgrading to a suite!</p>
<p>Among other concerns, your friends probably don&#8217;t actually <em>know</em> if the idea sucks or not. Unless you&#8217;re selling Mary Kay or Amway, your friends are not your ideal customers—or at least, they shouldn&#8217;t be. It&#8217;s not really about a selectively-defined “target market” anyway—it&#8217;s about the people who will actually buy what you sell.</p>
<p>When you do ask questions of advisors or potential customers, be sure to ask questions that will actually be useful. Asking “Do you think this is a good idea?” is the WRONG question. Asking “Would you buy this?” and “If so, how much would you pay for it?” is much better.</p>
<p><strong>Mistake #3: Focusing too much on the product, and not enough on the marketing.</strong></p>
<p>The best graphic design in the world will not matter if no one buys your product. In fact, it&#8217;s not about the “quality” of your product at all—it&#8217;s about the <em>perceived usefulness</em>. This factor matters more than anything else.</p>
<p>Do not slave away for months in a cave, making something that isn&#8217;t proven to work. That&#8217;s why Ramit conducts so much research in advance of creating a new product—he wants to make sure his time is spent well, so he can spend more of it checking out the set of jacuzzis in his Vegas living room.</p>
<p>Instead of building the product first, construct the offer first. Then, write the sales letter or whatever copy you will use when pitching it. Think about the ultimate value you will deliver to people and focus on that throughout. <em>Then</em> build the actual product with this end-goal in mind. Remember, even if you have a 3% conversion rate, 97% of people will never see your actual product—so don&#8217;t neglect the parts they<em> will</em> see.</p>
<p><strong>Mistake #4: Failing to change your customers&#8217; lives.</strong></p>
<p>When you make something for the world, it doesn&#8217;t matter how many pages the PDF is, how much you slaved over the audio recordings, or how awesome YOU are. What matters is the ultimate marketing question: “What&#8217;s in it for me?”</p>
<p>Fundamentally, the product should<em> change people&#8217;s lives</em>. You may be familiar with the idea of focusing on benefits instead of features. This is good advice, but what ultimately matters is what will be different after your customer experiences your product.</p>
<p>One final note: no matter how you focus your money-making efforts, a lot of people will encourage you to “become comfortable with failure” and “learn to fail quickly.” WTF? Here&#8217;s a better idea: become comfortable with success. Learn to succeed quickly. You can start with your very first project and hit the jackpot, just like Brett and Brandon did.</p>
<p>In different ways, Brandon and Brett show the power of creating powerful online products that earn significant money—without being experienced or having a huge audience.</p>
<p>Useful. Desirable. Money in the bank. Forget about failure—follow this model and you&#8217;ll succeed.</p>
<p>###</p>
<p><em>Chris Guillebeau&#8217;s new book, <a href="http://100startup.com/">The $100 Startup</a>, chronicles the lessons of 70 ordinary people who created businesses with no special skills and a small amount of money. He also writes for a small army of remarkable people at <a href="http://chrisguillebeau.com/">ChrisGuillebeau.com</a>.</em>
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<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
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		<title>This is officially the cutest photo on the Internet</title>
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		<pubDate>Sun, 06 May 2012 18:35:04 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Personal finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
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		<description>Look at this photo from Friday’s New York Times: My parents are in the New York Times in an article called “How to Raise a Financial Wizard,” and I could not be prouder. Funny backstory: it was originally titled “How to Raise a Financial Guru” as you can see from the NYT URL, but apparently [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/this-is-officially-the-cutest-photo-on-the-internet/"&gt;This is officially the cutest photo on the Internet&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[</p>
<p>Look at this photo from Friday’s New York Times:</p>
<p><a href="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/parents4.png"><img class="aligncenter size-medium wp-image-7969" title="parents4" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/parents4-271x300.png" alt="" width="271" height="300" /></a></p>
<p>My parents are in the New York Times in an article called “How to Raise a Financial Wizard,” and I could not be prouder.</p>
<p>Funny backstory: it was originally titled “How to Raise a Financial Guru” as you can see from the NYT URL, but apparently it could seem politically incorrect to have “guru” next to my dad’s turban. So the title was changed. HAHA</p>
<p>As you know, my parents had a huge influence in my life. Much of what I teach on IWT, I learned from them. No, they didn’t teach me about automation or peer-reviewed psychology studies, but they modeled much of what came to later become IWT. For example&#8230;</p>
<ul>
<li>When my dad took a week (yes, a week) to negotiate for a car, then demanded free car mats at the last minute, I learned about asking for what you want</li>
<li>When my mom and dad would tell me to “Just write it up&#8230;what’s the worst that can happen?” I learned about taking risks for uncertain reward</li>
<li>When I watched my parents raise 4 kids on one income, I learned what Conscious Spending really meant</li>
</ul>
<p>I also learned a lot about behavior, marriage, and gender roles from them. How many of us have invisible scripts about money that are directly traceable to our parents?</p>
<p>Maybe we believe that a man should be the primary breadwinner. Or that a husband and wife should both earn equally. Or something totally different.</p>
<p>Let’s share our best stories.</p>
<p>First, <a href="http://www.nytimes.com/2012/05/05/your-money/how-to-raise-a-financial-guru.html?_r=1&amp;pagewanted=all">read the article about my parents in the New York Times</a>. I’m so proud of them, and I want you to see what kind of influence two people can have.</p>
<p>Next, tell me what you learned from your parents about money and gender roles. (Feel free to comment anonymously, if you want.) Share your best realization &#8212; did you agree/disagree when you were a kid? What changed when you grew up? Will you behave the same way your parents did?
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/this-is-officially-the-cutest-photo-on-the-internet/">This is officially the cutest photo on the Internet</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<item>
		<title>A confession about gender and money…</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/SahfcXIZbLo/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/a-confession-about-gender-and-money/#comments</comments>
		<pubDate>Fri, 04 May 2012 21:17:17 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Money & Gender]]></category>
		<category><![CDATA[Women and money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7964</guid>
		<description>I’ve wanted to write about money and gender for YEARS. I have the most RIDICULOUS set of stories about friends, marriage, dating, salaries, negotiating, and investing between men and women&amp;#8230;plus, books and books of academic studies I’ve read. Examples: What do women think when they hear a guy wants someone “who can take care of [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/a-confession-about-gender-and-money/"&gt;A confession about gender and money&amp;#8230;&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.iwillteachyoutoberich.com/blog/a-confession-about-gender-and-money/" title="Permanent link to A confession about gender and money&#8230;"><img class="post_image alignright frame" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/Little_Boy_Mad.jpg" width="200" height="300" alt="Post image for A confession about gender and money&#8230;" /></a>
</p>
<p>I’ve wanted to write about money and gender for YEARS.</p>
<p>I have the most RIDICULOUS set of stories about friends, marriage, dating, salaries, negotiating, and investing between men and women&#8230;plus, books and books of academic studies I’ve read.</p>
<p>Examples:</p>
<ul>
<ul>
<li>What do women think when they hear a guy wants someone “who can take care of the house”? What do men think when they meet a girl who wants a &#8220;big ring&#8221;?</li>
<li>Who handles money better? Under what circumstances?</li>
<li>What happened when I met my first official gold-digger?</li>
<li>Who’s better at negotiating &#8212; and why?</li>
</ul>
</ul>
<p>But I’ve avoided it because I was afraid.</p>
<p>Because whenever you write about money and gender, people lose their damn minds.</p>
<p>They instantly jump to conclusions and bring their gigantic chips on their shoulders to the arguments, demanding that you cover every single aspect of money and gender.</p>
<p>Just look at these comments from a recent blog post:</p>
<p style="padding-left: 60px;">“Unless Ramit is highly skilled in gender studies, he should be careful about reporting these results. A non-academic study of how African American men manage their finances vs. how Caucasian men do would be frowned upon, and it should be no different in ‘comparing’ genders. What’s to compare?” &#8211; Joanna</p>
<p style="padding-left: 60px;">“You did not allow for nonbinary gender. And if you are assuming all relationships are straight I shall be quite cross.” &#8211; Andrea</p>
<p style="padding-left: 60px;">“IMHO, I don’t think it’s possible to tie financial capability to a gender any more than it’s possible to tie “parenting” or “eating veggies” to a gender. For every man or woman who is good with money, there’s another who is a trainwreck. Tying money to gender is stereotyping, which makes for great sensationalism and lots of eyeballs, but that’s about it.” &#8211; Linda</p>
<p style="padding-left: 60px;">“The title of this post doesn’t make sense.” &#8211; Josh</p>
<p>To avoid the predictable furor, I’ve collected thousands and thousands of data points, as well as reading several books on gender on my recent vacation.</p>
<p>But it doesn’t matter!</p>
<p>People are not rational about gender and money. (In fact, people are not “rational” about most things.) But when it comes to gender, they take their own individual experience and extrapolate it to the rest of the world, which makes everyone avoid sharing what they really think.</p>
<p>Well, I don’t want to avoid it any more.</p>
<p>There’s a gigantic gap between what we SAY and what we DO when it comes to gender and money. Why not explore it?</p>
<p>Yes &#8212; MEN AND WOMEN ARE DIFFERENT WHEN IT COMES TO MONEY. Read that last sentence again. If you steadfastly cling to the idea that men and women are “equal” (in this case, meaning they behave identically) around money, you are simply asking to be deceived. Let’s explore the similarities and differences instead of deluding ourselves.</p>
<p>For example, would you care if your significant other made more than you?</p>
<p>Recently, I was at a dinner when someone asked me if I would care if my future wife made more money than I did.</p>
<p>After I answered, I went on Twitter and asked two questions:</p>
<p style="padding-left: 60px;">1. Guys &#8212; would you care if you made more than your wife?<br />
2. Ladies &#8212; would you care if you made more than your husband?</p>
<p>What do you think the responses were? What do you think the truth is?</p>
<ul>
<ul>
<li><a href="http://twitter.com/intent/tweet?url=http://awe.sm/5nbvA&amp;text=I%20wouldn%E2%80%99t%20care%20if%20my%20partner%20made%20more%20money%20than%20me.&amp;via=ramit&amp;related=ramit">CLICK TO TWEET</a>: I wouldn’t care if my partner made more money than me.</li>
<li><a href="http://twitter.com/intent/tweet?url=http://awe.sm/5nbvL&amp;text=I%20would%20care%20if%20my%20partner%20made%20more%20money%20than%20me.&amp;via=ramit&amp;related=ramit">CLICK TO TWEET</a>: I would care if my partner made more money than me.</li>
</ul>
</ul>
<p>Leave a comment here and let’s get the discussion going.
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/a-confession-about-gender-and-money/">A confession about gender and money&#8230;</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<item>
		<title>When will men/women be honest about money — or lie?</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/KhshCGwFCEc/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/when-will-menwomen-be-honest-about-money-or-lie/#comments</comments>
		<pubDate>Wed, 02 May 2012 20:39:57 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Money & Gender]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7959</guid>
		<description>Some of my favorite studies from psychology are when people will not or cannot tell the truth &amp;#8230;and they don’t even know it. For example, we have countless studies of people eating more because of the size of the dish they were served in &amp;#8212; but if you point this out, they will steadfastly deny [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/when-will-menwomen-be-honest-about-money-or-lie/"&gt;When will men/women be honest about money &amp;#8212; or lie?&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.iwillteachyoutoberich.com/blog/when-will-menwomen-be-honest-about-money-or-lie/" title="Permanent link to When will men/women be honest about money &#8212; or lie?"><img class="post_image alignright frame" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/survey-pic-e1335993152996.jpg" width="200" height="200" alt="Post image for When will men/women be honest about money &#8212; or lie?" /></a>
</p>
<p>Some of my favorite studies from psychology are when people will not or cannot tell the truth &#8230;and they don’t even know it.</p>
<p>For example, we have countless studies of people eating more because of the size of the dish they were served in &#8212; but if you point this out, they will steadfastly deny it. We can’t stomach the idea that our behavior can be profoundly altered by the power of our environment (something any skilled persuader can arrange).</p>
<p>That’s why I’ve put together a survey that is totally anonymous. As you know, I’m going to be writing about money and gender, generally a total minefield.</p>
<p>Before I do, let’s start by gathering the facts.</p>
<p>Here’s a survey about money and gender. It’ll only take a couple minutes. I’ll share the results in a few days.</p>
<p>The survey is ANONYMOUS, so you can be completely honest in your answers. I will never track your answers back to you.</p>
<p>Here’s the survey:<br />
<a href="http://earn1k.com/surveys/honesty"> http://earn1k.com/surveys/honesty</a>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/when-will-menwomen-be-honest-about-money-or-lie/">When will men/women be honest about money &#8212; or lie?</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>May: What do women really want?</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/rYI3vOXGs14/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/may-what-do-women-really-want/#comments</comments>
		<pubDate>Tue, 01 May 2012 15:20:18 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Personal finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Women and money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7954</guid>
		<description>I just got back from a 3-week vacation (more on that later) so I’m feeling extremely lazy&amp;#8230;thus I’m skipping my usual long prose and jumping straight to bullet points. This way, I can go back to my regular routine of eating and napping for 9 hrs/day. BUT &amp;#8212; I do have some really cool stuff [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/may-what-do-women-really-want/"&gt;May: What do women really want?&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
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</p>
<p>I just got back from a 3-week vacation (more on that later) so I’m feeling extremely lazy&#8230;thus I’m skipping my usual long prose and jumping straight to bullet points. This way, I can go back to my regular routine of eating and napping for 9 hrs/day.</p>
<p>BUT &#8212; I do have some really cool stuff for you this month.</p>
<h3>Money &amp; Gender</h3>
<ul>
<li>This month, I&#8217;m writing a whole series on gender. When I did this a couple years ago, it was one of my most popular/controversial series ever.</li>
<li>Every Friday this month we’ll tackle a different gender issue: gender and money, gender and careers, gender and psychology, gender and earning more. I guarantee at least someone will be offended every week.</li>
<li>I’ve also got a special webinar with Amanda Steinberg from <a href="http://www.dailyworth.com">DailyWorth</a> lined up for later this month.</li>
</ul>
<h3>The truth about passive income</h3>
<ul>
<li>While I was gone for 3 weeks, IWT kept running without me. Actually, it grew. I’ve got a series on passive income coming up this month, including a special guest post from Chris Guillebeau.</li>
<li>Note: I’m generally very critical of passive income since less than 1% of people can consistently earn passive income at any scale. But I’ll share what’s worked for me.</li>
<li>Also, starting a passive business isn’t the only way to make money. I’ll be debuting a special webinar on the “3 easiest ways to earn more money” soon.</li>
</ul>
<h3>Remember your New Year’s Resolution?</h3>
<ul>
<li>Remember your New Year’s Resolution? Did you finally follow through this year? I can help with that. Got some new stuff on behavior change for you and a special webinar with<em> <a href="http://www.amazon.com/gp/product/B0055PGUYU/ref=as_li_ss_tl?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B0055PGUYU">The Power of Habit</a></em> author Charles Duhigg (this book reveals some astonishingly sophisticated principles and techniques of behavioral change).</li>
<li>Plus, the return of an IWT favorite: <a href="http://www.iwillteachyoutoberich.com/blog/category/the-money-diaries/">Money Diaries</a></li>
</ul>
<p>If you’re excited about what’s coming, help me spread the word by tweeting ONE of the links below:</p>
<ul>
<ul>
<li><a href="http://twitter.com/intent/tweet?url=http://awe.sm/5nMtr&amp;text=May%20is%20Sex%20%26%20Money%20month%20at%20I%20Will%20Teach%20You%20To%20Be%20Rich.&amp;via=ramit&amp;related=ramit">Click to tweet</a>: &#8220;May is Sex &amp; Money month at I Will Teach You To Be Rich.&#8221;</li>
<li><a href="http://twitter.com/intent/tweet?url=http://awe.sm/5nMwF&amp;text=The%20truth%20about%20passive%20income%3F&amp;via=ramit&amp;related=ramit">Click to tweet</a>: &#8220;The truth about passive income?&#8221;</li>
<li><a href="http://twitter.com/intent/tweet?url=http://awe.sm/5nMwr&amp;text=My%20Memorial%20Day%20Resolution%20is%20to%20keep%20my%20New%20Year%E2%80%99s%20Resolution.&amp;via=ramit&amp;related=ramit">Click to tweet</a>: &#8220;My Memorial Day Resolution is to keep my New Year’s Resolution.&#8221;</li>
</ul>
</ul>
<p>And if you’re not signed up for my free newsletter yet, this is a good time to start because I’ve got even more planned people on my Insider’s List, including first dibs on spots for this month’s webinars. Sign up here.</p>
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<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/may-what-do-women-really-want/">May: What do women really want?</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>How to make expensive purchases</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/AZiWoFyO_xE/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/how-to-make-expensive-purchases/#comments</comments>
		<pubDate>Sun, 29 Apr 2012 17:51:14 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Personal finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7949</guid>
		<description>Today I want to talk about making expensive purchases. Too often, we see something expensive we like, feel guilty because we know we shouldn&amp;#8217;t get it&amp;#8230;and then we buy it! Only to feel more guilty later. IWT isn&amp;#8217;t about guilt. I hate guilt and, also, I have no emotions so it&amp;#8217;s difficult for me to [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/how-to-make-expensive-purchases/"&gt;How to make expensive purchases&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
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</p>
<p>Today I want to talk about making expensive purchases. Too often, we see something expensive we like, feel guilty because we know we shouldn&#8217;t get it&#8230;and then we buy it! Only to feel more guilty later.</p>
<p>IWT isn&#8217;t about guilt. I hate guilt and, also, I have no emotions so it&#8217;s difficult for me to relate.</p>
<p>Nonetheless, let me shed some light on this situation.</p>
<h3>Conscious Spending</h3>
<p>There&#8217;s a difference between people who <a href="http://www.iwillteachyoutoberich.com/blog/conscious-spending-how-my-friend-spends-21000year-on-going-out/?awt_l=Fq41V&amp;awt_m=1pnT0x8C0GBibn">consciously spend</a> on things they love &#8212; even if they&#8217;re expensive &#8212; and people who simply buy whatever they want. Often it&#8217;s buying more and more of a similar item (you know people who have 12 kinds of the same color jeans? And yet they&#8217;re always shopping for new ones?) I used to be like this, only with SAT books&#8230;which explains a lot about my traumatic childhood.</p>
<p>This pattern of buying more and more of an item is particularly true of luxury goods, because (1) they’re expensive and (2) people who buy one luxury good tend to buy a lot of them.</p>
<p>Luxury goods have gotten a bad rap. Many personal-finance pundits reflexively say, &#8220;NO! You can&#8217;t spend THAT MUCH!&#8221; to any expensive purchases without understanding the context (e.g., you might have a lot of money in the bank and this is valuable to you). It&#8217;s OK to spend on expensive things if it&#8217;s done consciously and you&#8217;re saving/investing appropriately. But for expensive items, it&#8217;s also important to put framework around them so that it&#8217;s <a href="http://www.iwillteachyoutoberich.com/blog/personal-finance-is-not-about-more-willpower/?awt_l=Fq41V&amp;awt_m=1pnT0x8C0GBibn">not all about willpower</a>. The framework allows you to justify and manage paying for expensive things.</p>
<h3>Deciding to pay for a personal trainer</h3>
<p>A while back, I had decided to switch gyms, but I didn&#8217;t sign up for a new gym immediately, so there was a time lapse between my memberships. When I finally did, I stopped short for a minute.</p>
<p>In my <a href="http://www.amazon.com/gp/product/0761147489/ref=as_li_ss_tl?ie=UTF8&amp;tag=iwillteachyou-20&amp;linkCode=as2&amp;camp=217145&amp;creative=399369&amp;creativeASIN=0761147489">book</a>, I talk about one study that shows how gym go-ers dramatically overestimate how often they actually use their gym membership. So I knew a gym membership was rife with psychological motivators, and I decided to take advantage of that.</p>
<p>To start with, I knew a few things:</p>
<ol>
<li>I wanted to get a trainer</li>
<li>I don&#8217;t mind paying for value</li>
<li>I wanted to accelerate my growth by paying for someone who is experienced and could help me achieve my goals.</li>
</ol>
<p>But even I&#8217;m not <a href="http://www.iwillteachyoutoberich.com/blog/spending-exceptions/?awt_l=Fq41V&amp;awt_m=1pnT0x8C0GBibn">delusional enough to believe that I&#8217;m different than other people</a>. Think about it: What&#8217;s the most common thing that happens with gym memberships? People pay for it, stop going after a month, then feel guilty for not going, and paying hundreds and hundreds of dollars in unnecessary gym fees.</p>
<p>So regardless of how much I really believed I&#8217;d be different, and how much I really wanted a trainer, I decided to force myself to beat the odds first.</p>
<p>So before I hired a trainer, I wanted to see if I could justify the expense by how often I was making it to the gym. That was the 85% Solution. I set a simple goal of going to the gym at least 3 times per week for 1 month, a <a href="http://www.iwillteachyoutoberich.com/blog/set-smaller-goals-impress-friends-get-girls-lose-weight/?awt_l=Fq41V&amp;awt_m=1pnT0x8C0GBibn">gradual goal</a> that would take sustained effort.</p>
<p>It&#8217;s important to not set a broad goal, but to be as specific as possible. So my goal was to go on Mondays, Wednesdays and Fridays. I kept track of the days I went in a notebook. Now, I didn&#8217;t stick to this plan 100%. Some days I didn&#8217;t feel like going, so I didn&#8217;t. When I didn&#8217;t go, I tried to go the next day, or an extra time the next week.Sometimes I was inspired to go on a day off, so I went. Other times I missed a day completely.</p>
<p>At the end of one month, I had averaged going to the gym 3 times a week &#8212; right on track. So having met the larger challenge of actually going to the gym, I decided to go forward with the trainer.</p>
<p>The point is this: By creating a <a href="http://www.iwillteachyoutoberich.com/blog/i-use-small-barriers-to-avoid-kooks/?awt_l=Fq41V&amp;awt_m=1pnT0x8C0GBibn">small intentional barrier</a>, you can force yourself to realize whether it&#8217;s really worth it or not.</p>
<p>Now, let&#8217;s figure out how to apply this to your life.</p>
<h3>How to apply this to different areas of your life</h3>
<p>Here are a few shortcuts to decide whether to spend money on something expensive.</p>
<ol>
<li><strong>Use more</strong>. If you want to buy something, use more of what you have before you get something else. For example, use the cosmetics sitting in your bathroom drawer before buying anything new so that when you DO buy new stuff, it&#8217;s to replenish what you&#8217;ve already used. Or, like in my case, use the SAT book you already have and finish it before getting another one.</li>
<li><strong>Earn more</strong>. Earn more on the side to justify paying for something. This usually relates to time or selling an existing good to pay for something new.</li>
<li><strong>Spend more time</strong>. Spend more time doing something to justify the cost. For me, the time I spent going to the gym justified the cost of a personal trainer.</li>
</ol>
<p><strong>More Practical Applications:</strong></p>
<p><strong>Trip to _____</strong>: How can you justify this cost? Are you learning the language before you go? If so, set a specific goal. Take language classes for a year, or something. When you hit your goals, give yourself permission to spend the money on the trip.</p>
<p><strong>Expensive makeup</strong>: How much unused makeup is sitting in your bathroom drawer right now? Don&#8217;t add more to the pile &#8212; before spending on expensive new make up, use up all of what you have first.</p>
<p><strong>Virtual assistant</strong>: Same goal as with the cleaning service &#8212; if you earn an extra $100/month on the side for 3 months straight, you can justify hiring a virtual assistant.We&#8217;ve talked about ways to use VAs before. Having the support of a good assistant can increase your productivity,efficiency and therefore help you earn even more.</p>
<p><strong>Web designer</strong>: Your site has reached 1,000 visitors/day. Remember, I hate bloggers who focus on stats and hardly anyone cares about your design, BUT if more people are visiting your site and its design or user interface is important to you, then go for it.</p>
<p><strong>New TV</strong>: Can you sell your old one? Or donate it to a non-profit that will put it to good use.Or, what do you have that you&#8217;re not using that you could sell to pay for the new TV? Or maybe the new TV is your reward for accomplishing some other goal.You get the idea.</p>
<p><strong>New desk chair</strong>: Sell your old one first and use the money toward buying a new one.</p>
<p><strong>New mattress</strong>: Exhaust the potential quick wins first by using a mattress pad for extra cushion and protection, flipping the mattress or getting it cleaned.</p>
<p><strong>Upgrading to business/first class</strong>: Set a certain percent you want to save. For example, &#8220;I want to get at least 40% off first class tickets by reading Chris Guillebeau&#8217;s <a href="http://chrisguillebeau.com/discount-airfare-guide/">Unconventional Guide to Discount Airfare</a> or <a href="http://www.firstclassflyer.com/">firstclassflyer.com</a>.&#8221; Or simply fly often enough to pay for first class with your frequent flier miles.</p>
<p><strong>Subscribing to a new service</strong>: I&#8217;ve written previously about how crazy people go when trying to save money on books, when they should really be trying to extract as much VALUE as possible. You can justify buying an expensive information product if you decide&#8211; ahead of time &#8212; what metrics it&#8217;s going to move the needle for. For example, &#8220;I can afford The Scrooge Strategy if I save $100 in the first month.&#8221; That&#8217;s eminently do-able and it gives you a concrete reason to pay for something, even something extremely expensive.</p>
<p><strong>Cleaning service</strong>: Give yourself the goal to earn an extra $100/month on the side for 3 months straight. Once you meet the goal, you can justify paying for a cleaning service because it frees up your time to earn more.</p>
<p>Bottom line: Yes, there are smart ways to save.</p>
<h3>How to make expensive purchases less stressful</h3>
<p>If you liked the tips in this email and want to focus on saving, check out my <a href="http://www.iwillteachyoutoberich.com/blog/announcing-the-save-1000-in-30-days-challenge/?utm_campaign=save-1000-in-30&amp;utm_medium=referrer-s&amp;utm_source=iwt-blog&amp;utm_content=expensive-purchases">Save $1,000 in 30 Days Challenge</a>.</p>
<p>My readers have already used that plan to save a lot of money. BUT there’s a limit to how much they can save.</p>
<p>There’s NO limit on how much you can earn, however. And once you learn how &#8212; <a href="http://www.iwillteachyoutoberich.com/blog/case-study-how-claire-used-craigslist-to-make-8000-on-the-side/">like Claire who used Craigslist to make $8,000 on the side</a> &#8212; making expensive purchases gets a lot less stressful.</p>
<p>Want to see how it’s done? Sign up for my newsletter and I’ll give you instant access to a 20-minute video interview I did with one of my students who earned $81,000 in 8 weeks.</p>
<p>It&#8217;s unlikely that most people reading this can earn $81,000 in 8 weeks. But I’ll show you exactly how my student did it &#8212; and how you can use the very same principles to earn more for yourself.</p>
<p>&nbsp;</p>
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<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
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<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/how-to-make-expensive-purchases/">How to make expensive purchases</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>$1,001 Contest Winner (and Twitter posts)</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/YeDYjR9ZKEc/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/1001-contest-winner-and-twitter-posts/#comments</comments>
		<pubDate>Fri, 27 Apr 2012 17:08:25 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Twitter]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7944</guid>
		<description>We have a winner! Congratulations to J. Money, the winner of my &amp;#8220;How would you spend $1,001?&amp;#8221; contest. Here&amp;#8217;s how he said he&amp;#8217;d spend the cash: The first thing I’d do is dump $500 of it into our baby’s 529 college fund.  Which we have yet to still open, haha… though I reckon this would [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
&lt;p&gt;&lt;strong&gt;Join the free 30-day course to hustle your way to the top&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Here's a sample of what I'll be sending out:&lt;/p&gt;
&lt;p&gt;- A invite to my private webcast with Tim Ferriss - where you'll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. &lt;br/&gt;
- A full recording of my private webcast with Tim Ferriss - in case you can't make it...&lt;br/&gt;
- Earn1k Bonus Case Study - Unlocking side income: From $0 to $1,500/month in 2 weeks&lt;/p&gt;
&lt;p&gt;&lt;a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&amp;utm_medium=feed&amp;utm_campaign=earn1k-rss-ad&amp;utm_content=rss-footer"&gt;Become a top performer now&lt;/a&gt;&lt;/p&gt;
&lt;/div&gt;--&gt;
&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/1001-contest-winner-and-twitter-posts/"&gt;$1,001 Contest Winner (and Twitter posts)&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
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</p>
<h3><strong>We have a winner!</strong></h3>
<p>Congratulations to <a href="http://www.budgetsaresexy.com/2012/04/1000-dollars-giveaway-what-would-you-do/">J. Money</a>, the winner of my &#8220;How would you spend $1,001?&#8221; contest.</p>
<p>Here&#8217;s how he said he&#8217;d spend the cash:</p>
<blockquote>
<ol>
<li><strong>The first thing I’d do is dump $500 of it into our baby’s 529 college fund.</strong>  Which we have yet to still open, haha… though I reckon this would certainly help speed up the process! <img src='http://iwt.wpengine.netdna-cdn.com/wp-includes/images/smilies/icon_wink.gif' alt=';)' class='wp-smiley' />   And I feel like $500 is a nice solid number to plop in for all future months too, but we’ll see how business and life continues… no matter what we’ll be putting in *something* every month!</li>
<li><strong>Then we’d use $300 for a nice trip out to a bed and breakfast somewhere in wine country, Virginia.</strong>  Every year we try and do this for our anniversary, and those things are always so expensive in the time frames we want to go (mid to late May). It would be awesome if we got this year’s trip covered for completely!</li>
<li><strong>Then another $200 towards charities of my friends’ choice</strong> (since I don’t really connect with any myself).  I’ve gotten pretty bad lately of donating money or giving time to any charities now that our own <a href="http://www.lovedrop.us/" target="_blank">wrapped up in December</a>, so this would be a great way to get back into the good habit of it all again.  I miss not having a place I believed in 100% <img src='http://iwt.wpengine.netdna-cdn.com/wp-includes/images/smilies/icon_sad.gif' alt=':(' class='wp-smiley' /> </li>
<li><strong>And the last $1.00 would go to a new lottery ticket!</strong> (<a href="http://www.budgetsaresexy.com/2012/04/short-term-monthly-goals/" target="_blank">In May, of course</a> ;)) I figured if I got lucky enough to win this $1,001 in the first place, I should probably try and extend my good fortune!</li>
</ol>
</blockquote>
<p>And a big thank you to everyone who participated and helped spread the word. I&#8217;m mixing up some more crazy social experiments, so you&#8217;ll have more chances to win soon.</p>
<h3><strong>Some interesting links for your Friday&#8230;</strong></h3>
<p>Each day, I post short insights on <a href="http://twitter.com/ramit" target="_blank">http://twitter.com/ramit</a> about psychology, testing, personal finance, investing, the best links I’ve found, and stupid people.</p>
<p>You won’t find these on my blog.</p>
<p>Here are a few of my favorite recent tweets:</p>
<p>&nbsp;</p>
<div id="tweet_182510174760747000" class="bbpBox" style="background: url('http://a0.twimg.com/profile_background_images/3172898/PA32_Ornamental-Blue.png') #9AE4E8; padding: 20px;">
<p class="bbpTweet" style="background: #fff; padding: 10px 12px 10px 12px; margin: 0; min-height: 48px; color: #000; font-size: 16px !important; line-height: 22px; -moz-border-radius: 5px; -webkit-border-radius: 5px;">Teller, of Penn &amp; Teller, reveals how magicians manipulate the human mind: <a href="http://t.co/aM9uLKwn" target="_new">http://t.co/aM9uLKwn</a><span class="timestamp" style="font-size: 12px; display: block;"><a title="Wed Mar 21 16:53:11 " href="http://twitter.com/ramit/status/182510174760747000">Wed Mar 21 16:53:11 </a> via <a href="http://timely.is" rel="nofollow">Timely by Demandforce</a></span><span class="metadata" style="display: block; width: 100%; clear: both; margin-top: 8px; padding-top: 12px; height: 40px; border-top: 1px solid #e6e6e6;"><span class="author" style="line-height: 19px;"><a href="http://twitter.com/ramit"><img style="float: left; margin: 0 7px 0 0px; width: 38px; height: 38px;" src="http://a0.twimg.com/profile_images/1184165803/photo_3__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/ramit">Ramit Sethi</a></strong><br />
ramit</span></span></p>
</div>
<p>&nbsp;</p>
<div id="tweet_180285287035969540" class="bbpBox" style="background: url('http://a0.twimg.com/profile_background_images/3172898/PA32_Ornamental-Blue.png') #9AE4E8; padding: 20px;">
<p class="bbpTweet" style="background: #fff; padding: 10px 12px 10px 12px; margin: 0; min-height: 48px; color: #000; font-size: 16px !important; line-height: 22px; -moz-border-radius: 5px; -webkit-border-radius: 5px;">The man who broke Atlantic City, with some fascinating insights about how top bettors get advantages others don&#8217;t get: <a href="http://t.co/xs3Lnmgr" target="_new">http://t.co/xs3Lnmgr</a><span class="timestamp" style="font-size: 12px; display: block;"><a title="Thu Mar 15 13:32:16 " href="http://twitter.com/ramit/status/180285287035969540">Thu Mar 15 13:32:16 </a> via <a href="http://timely.is" rel="nofollow">Timely by Demandforce</a></span><span class="metadata" style="display: block; width: 100%; clear: both; margin-top: 8px; padding-top: 12px; height: 40px; border-top: 1px solid #e6e6e6;"><span class="author" style="line-height: 19px;"><a href="http://twitter.com/ramit"><img style="float: left; margin: 0 7px 0 0px; width: 38px; height: 38px;" src="http://a0.twimg.com/profile_images/1184165803/photo_3__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/ramit">Ramit Sethi</a></strong><br />
ramit</span></span></p>
</div>
<p>&nbsp;</p>
<div id="tweet_177103972660809730" class="bbpBox" style="background: url('http://a0.twimg.com/profile_background_images/3172898/PA32_Ornamental-Blue.png') #9AE4E8; padding: 20px;">
<p class="bbpTweet" style="background: #fff; padding: 10px 12px 10px 12px; margin: 0; min-height: 48px; color: #000; font-size: 16px !important; line-height: 22px; -moz-border-radius: 5px; -webkit-border-radius: 5px;">Uh this might be my favorite YouTube video ever. How did I never see this before? <a href="http://t.co/vCOhrkBN" target="_new">http://t.co/vCOhrkBN</a><span class="timestamp" style="font-size: 12px; display: block;"><a title="Tue Mar 06 18:50:52 " href="http://twitter.com/ramit/status/177103972660809730">Tue Mar 06 18:50:52 </a> via <a href="http://timely.is" rel="nofollow">Timely by Demandforce</a></span><span class="metadata" style="display: block; width: 100%; clear: both; margin-top: 8px; padding-top: 12px; height: 40px; border-top: 1px solid #e6e6e6;"><span class="author" style="line-height: 19px;"><a href="http://twitter.com/ramit"><img style="float: left; margin: 0 7px 0 0px; width: 38px; height: 38px;" src="http://a0.twimg.com/profile_images/1184165803/photo_3__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/ramit">Ramit Sethi</a></strong><br />
ramit</span></span></p>
</div>
<p>&nbsp;</p>
<div id="tweet_176758783572324350" class="bbpBox" style="background: url('http://a0.twimg.com/profile_background_images/3172898/PA32_Ornamental-Blue.png') #9AE4E8; padding: 20px;">
<p class="bbpTweet" style="background: #fff; padding: 10px 12px 10px 12px; margin: 0; min-height: 48px; color: #000; font-size: 16px !important; line-height: 22px; -moz-border-radius: 5px; -webkit-border-radius: 5px;">&#8220;&#8216;We Wish Like Hell We Had Never Bought&#8217;: Voices from the Housing Crisis&#8221; &#8212; <a href="http://t.co/W8Fb0Hvm" target="_new">http://t.co/W8Fb0Hvm</a><span class="timestamp" style="font-size: 12px; display: block;"><a title="Mon Mar 05 19:59:12 " href="http://twitter.com/ramit/status/176758783572324350">Mon Mar 05 19:59:12 </a> via <a href="http://timely.is" rel="nofollow">Timely by Demandforce</a></span><span class="metadata" style="display: block; width: 100%; clear: both; margin-top: 8px; padding-top: 12px; height: 40px; border-top: 1px solid #e6e6e6;"><span class="author" style="line-height: 19px;"><a href="http://twitter.com/ramit"><img style="float: left; margin: 0 7px 0 0px; width: 38px; height: 38px;" src="http://a0.twimg.com/profile_images/1184165803/photo_3__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/ramit">Ramit Sethi</a></strong><br />
ramit</span></span></p>
</div>
<p>&nbsp;</p>
<div id="tweet_182494314012737540" class="bbpBox" style="background: url('http://a0.twimg.com/profile_background_images/3172898/PA32_Ornamental-Blue.png') #9AE4E8; padding: 20px;">
<p class="bbpTweet" style="background: #fff; padding: 10px 12px 10px 12px; margin: 0; min-height: 48px; color: #000; font-size: 16px !important; line-height: 22px; -moz-border-radius: 5px; -webkit-border-radius: 5px;">&#8220;The best nanny money can buy.&#8221; This nanny earns $180K/year: <a href="http://t.co/SJuNBvdC" target="_new">http://t.co/SJuNBvdC</a><span class="timestamp" style="font-size: 12px; display: block;"><a title="Wed Mar 21 15:50:09 " href="http://twitter.com/ramit/status/182494314012737540">Wed Mar 21 15:50:09 </a> via <a href="http://timely.is" rel="nofollow">Timely by Demandforce</a></span><span class="metadata" style="display: block; width: 100%; clear: both; margin-top: 8px; padding-top: 12px; height: 40px; border-top: 1px solid #e6e6e6;"><span class="author" style="line-height: 19px;"><a href="http://twitter.com/ramit"><img style="float: left; margin: 0 7px 0 0px; width: 38px; height: 38px;" src="http://a0.twimg.com/profile_images/1184165803/photo_3__normal.jpg" alt="" /></a><strong><a href="http://twitter.com/ramit">Ramit Sethi</a></strong><br />
ramit</span></span></p>
</div>
<p>&nbsp;</p>
<p>To get all of my Twitter updates as they happen, follow me here: <a href="http://twitter.com/ramit" target="_blank">http://twitter.com/ramit</a>
<p><!--
<div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;">
<p><strong>Join the free 30-day course to hustle your way to the top</strong></p>
<p>Here&#8217;s a sample of what I&#8217;ll be sending out:</p>
<p>- A invite to my private webcast with Tim Ferriss &#8211; where you&#8217;ll learn his top time-management techniques, how to create your first muse, and how he hustled 2 books onto the NYT #1 seller list when 26 publishers turned him down. <br/><br />
- A full recording of my private webcast with Tim Ferriss &#8211; in case you can&#8217;t make it&#8230;<br/><br />
- Earn1k Bonus Case Study &#8211; Unlocking side income: From $0 to $1,500/month in 2 weeks</p>
<p><a href="http://www.iwillteachyoutoberich.com/hustle/week4/?utm_source=iwtytbr-rss-feed&#038;utm_medium=feed&#038;utm_campaign=earn1k-rss-ad&#038;utm_content=rss-footer">Become a top performer now</a></p>
</div>
<p>&#8211;></p>
<p><!-- <a href="http://www.iwillteachyoutoberich.com/blog/1001-contest-winner-and-twitter-posts/">$1,001 Contest Winner (and Twitter posts)</a> is a post from: <a href="http://www.iwillteachyoutoberich.com">I Will Teach You To Be Rich</a>&#8211;></p>
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		<title>The psychology of putting effectiveness before ego</title>
		<link>http://feedproxy.google.com/~r/IWillTeachYouToBeRich/~3/D-1IJo5SJeo/</link>
		<comments>http://www.iwillteachyoutoberich.com/blog/the-psychology-of-putting-effectiveness-before-ego/#comments</comments>
		<pubDate>Tue, 24 Apr 2012 22:44:54 +0000</pubDate>
		<dc:creator>Ramit Sethi</dc:creator>
				<category><![CDATA[Behavior Change]]></category>
		<category><![CDATA[Productivity]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<guid isPermaLink="false">http://www.iwillteachyoutoberich.com/?p=7937</guid>
		<description>I spend a lot of time talking about BIG wins (like salary negotiation) instead of incremental cutbacks on lattes or paper towels. The “big win” mentality is how hundreds of my students have landed their dream jobs, dug out of debt, and outperformed their peers in countless situations. But big wins aren’t always easy—especially when [...]&lt;p&gt;&lt;!--&lt;div style="font-size: small; padding: 0px 10px 0px 10px; border: 1px solid #ccc; color: #333; background-color: #eee;"&gt;
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&lt;!-- &lt;a href="http://www.iwillteachyoutoberich.com/blog/the-psychology-of-putting-effectiveness-before-ego/"&gt;The psychology of putting effectiveness before ego&lt;/a&gt; is a post from: &lt;a href="http://www.iwillteachyoutoberich.com"&gt;I Will Teach You To Be Rich&lt;/a&gt;--&gt;&lt;/p&gt;</description>
			<content:encoded><![CDATA[</p>
<p><img class="aligncenter size-medium wp-image-7939" title="Innovate" src="http://iwt.wpengine.netdna-cdn.com/wp-content/uploads/2012/04/Innovate-300x204.jpg" alt="" width="300" height="204" />I spend a lot of time talking about BIG wins (like <a href="http://www.iwillteachyoutoberich.com/blog/salary-negotiation-earning-more/">salary negotiation</a>) instead of incremental cutbacks on lattes or paper towels. The “big win” mentality is how hundreds of my students have landed their dream jobs, dug out of debt, and outperformed their peers in countless situations.</p>
<p>But big wins aren’t always easy—especially when you use an unconventional approach. Sometimes we get criticized by our peers or even find ourselves at odds with cultural traditions. What do you do then? How do you stay focused when people expect you to fail?</p>
<p>Jay Cross, creator of the <a href="http://www.doityourselfdegree.com">Do-It-Yourself Degree</a> (and my former editor at IWT) has written a guest post about putting effectiveness before ego. He offers a powerful framework for dealing with haters, staying motivated, and using contrarian methods to achieve your goals.</p>
<p><strong>Notice the key points Jay makes below</strong>:</p>
<ul>
<ul>
<li>He doesn’t tell you how to AVOID criticism. (That’s easy: Say nothing, do nothing, be nothing.) Instead, he tells you to EXPECT criticism, ignore it, and focus on the results.</li>
<li>Criticism creates opportunity: Because so many people avoid the unfamiliar, pioneers are often richly rewarded. (Another example of the <a href="http://www.iwillteachyoutoberich.com/blog/the-craigslist-penis-effect/">Craigslist Penis Effect</a> in action.)</li>
<li>You need to <a href="http://www.iwillteachyoutoberich.com/blog/wednesday-workout-testing-your-assumptions/">test your assumptions</a> instead of letting others think for you.</li>
</ul>
</ul>
<p>Jay has a keen insight into what motivates people, and I think you’ll enjoy his post below.</p>
<p style="text-align: center;">***</p>
<p style="text-align: left;">We love to romanticize contrarians: people who do things differently and accomplish what no one believed was possible.</p>
<p>It’s why we cherish Galileo and Charles Darwin, who advocated controversial ideas that society did not want to accept. It’s why we celebrate the Founding Fathers, who overthrew an oppressive government instead of obeying it. It’s even why we admire risk-takers in our own lives, like a gutsy co-worker who calls out the boss when he’s wrong.</p>
<p>We get an emotional rush just hearing these stories, and with good reason.</p>
<p>Contrarians are life’s change agents, the social jackhammers who challenge stale traditions with fresh thinking. While others mimic Niedermeyer from <em>Animal House</em> (taking whatever life gives them with “thank you sir, may I have another?” passivity), contrarians refuse to stay silent when they discover a better way.</p>
<p>We often wish we had the courage to do that&#8230;but it’s not easy, is it?</p>
<p>Even when we’re sure we’re right, the moment of truth comes, and we fold—often because we fear criticism. Social psychology experiments have shown that we will change a test answer we know is correct&#8230;simply because the people sitting next to us changed their answers.</p>
<p>We are instinctively afraid of going against the grain&#8230;and the greater the stakes, the greater the fear.</p>
<p>Most people believe contrarians (especially famous ones like Steve Jobs) are simply born without this fear. They use phrases like “ice in their veins” to describe the cold, bulletproof personalities contrarians supposedly have.</p>
<p><strong>Awakening your inner contrarian</strong></p>
<p>For most of us, though, contrarianism is something we can cultivate. Just as a muscle grows stronger with exercise, your willingness to break from social norms and test new approaches will expand with practice. It just takes a new emotional framework to fall back on.</p>
<p>Today, I want to show you that framework. Instead of simply applauding you for revering contrarians, I am going to encourage you to BE one—to actually try the “radical” or “crazy” things you’ve long believed would work—by revealing the fascinating inner psychology of anyone who ever dared to think differently.</p>
<p>I call it “The Contrarian’s Cycle of Criticism, Acceptance, and Awe.” And it’s about putting effectiveness before ego.</p>
<p>Once you understand the emotional trials every risk-taker experiences, you will push straight past your fears, driven by the amazing results waiting for you at the end.</p>
<p>Allow me to tell you a personal story of my own struggle with the Contrarian’s Cycle, and then deconstruct it using the cycle itself.</p>
<p><strong>My own struggle to do things differently</strong></p>
<p>I ran straight into these fears when I discovered the <a href="http://doityourselfdegree.com/">Do-It-Yourself Degree</a> approach to graduating. Rather than taking years of classes and racking up massive student loans (like 90% of students do) I learned that I could finish my bachelor’s degree by taking tests instead. Classes cost $3,000 and up—often much more—but the tests cost just $80-$100 apiece.</p>
<p>Result: you can earn a bachelor’s degree in 1 year or less for under $5,000 in testing fees. The best part? It’s a totally self-managed approach. You graduate as fast as you are willing to work.</p>
<p>I was fascinated by this. Not only would it solve a major problem in my life (I had been frustrated with the class schedules at my school for years) it also seemed like an incredible opportunity for students like me, who felt “locked out” of the traditional college system by time or money.</p>
<p>But one of my friends saw it differently. The one drawback of the DIY Degree approach was that I’d have to leave the University of Connecticut and transfer to a less prestigious school. Once she knew this, my friend (we’ll call her “Chloe”) tore into me:</p>
<ul>
<ul>
<li>“You’re the smartest person I know. Why would you settle for a lesser school on your resume?”</li>
<li>“This seems like taking the easy way out. You’re above that.”</li>
<li>“This upsets me. I expect better from you.”</li>
</ul>
</ul>
<p>I knew these criticisms were irrelevant on an intellectual level. As a writer and entrepreneur, no one cared where I went to school. I had already landed incredible positions—including working for Ramit—while I was still <em>in</em> college. Today, I manage data visualization projects for companies like Intuit and Cisco.</p>
<p>(Top performers care about results, not resumes.)</p>
<p>The DIY Degree approach isn’t “the easy way out”, either. It actually takes even <em>more</em> dedication, because you are totally on your own and each test covers a full semester in 3 hours.</p>
<p>And she only “expected better from me” because she thinks big-name universities are essential to top performance. (I think big-name universities accept top performers and take credit for their success.)</p>
<p>Yet, even though I <em>knew</em> all of this&#8230;those comments still cut pretty deeply. It’s easy to ignore harsh critiques from a stranger, but not from someone you respect. It was enough to make me second-guess my plan&#8230;briefly.</p>
<p>In the end, I decided that Chloe was dead wrong. True, the DIY Degree approach wasn’t the best way for <em>everyone</em> to graduate. But I wasn’t everyone. I was a self-motivated producer who had done more without a degree than most did ten years after graduating. And either way, having the word “UConn” on my resume did not justify a mortgage-sized loan to me. All I cared about was my degree being legitimate and respectable.</p>
<p>(If anything, I was willing to bet that my unique, time-and-money saving graduation strategy would<em> impress</em> future employers, who want to work with problem-solvers.)</p>
<p>So, instead of folding, I pressed on and earned my DIY Degree as planned. Once she saw that I was serious, Chloe’s criticism quieted down, and soon after I graduated she reversed her position completely.</p>
<p>“I can’t believe you’re doing this” became “I wish I didn’t have student debt either.”</p>
<p>What happened here? Is there a predictable pattern that nearly all similar situations follow?</p>
<p><strong>The Contrarian’s Cycle of Criticism, Acceptance, and Awe</strong></p>
<p>Yes.</p>
<p>What I went through was a version of The Contrarian’s Cycle of Criticism, Acceptance, and Awe.</p>
<p><strong>Stage 1: Criticism</strong></p>
<p><em>“It’s human nature to stick with traditional beliefs long after they outlast any conceivable utility.“ &#8211; Jim Pinkerton</em></p>
<p>First, Chloe <em>criticized</em> my decision, pushing every emotional button she could to talk me out of it. This happens to virtually everyone who tries a new approach to an old problem.</p>
<p>No matter how sound your logic, no matter how persuasive your arguments, no matter how successful you’ve been in the past, something about new approaches just makes people uneasy. They are emotionally invested in “the usual way” and, in some cases, have based their very sense of self on it.</p>
<p>To restore equilibrium, they say things like:</p>
<ul>
<ul>
<li>“Why don’t you just do [THE USUAL WAY] like everyone else?</li>
<li>“Only a [PEJORATIVE NAME] would do/think [THE CONTRARIAN WAY]”</li>
<li>“Sure, it sounds good, but that’s not how the “real world” works.</li>
</ul>
</ul>
<p><strong>Stage 2: Acceptance</strong></p>
<p><em>“After an argument, silence may mean acceptance or the continuation of resistance by other means.” &#8211; Mason Cooley</em></p>
<p>Then, once she realized I was doing this no matter what, she accepted it. Acceptance is not support, though. She still (as will most at this stage) fully expected me to fail. She just knew vocally opposing it was pointless now.</p>
<p><strong>What people say during this stage:</strong></p>
<ul>
<ul>
<li>“I don’t want to talk about [WHAT YOU’RE DOING]</li>
<li>“Don’t say I didn’t warn you.”</li>
<li>“So you still think you’re going to [GET THE RESULTS YOU EXPECT]?”</li>
</ul>
</ul>
<p><strong>Stage 3: Awe</strong></p>
<p><em>“What the wise man does in the beginning, the fool does in the end.” &#8211; Warren Buffett</em></p>
<p>Finally, once I received my degree and proved there was nothing shady or weird about it—and that all I had done was graduate faster—Chloe was <em>awed</em> by my results.</p>
<p>You will notice this, too. After the benefits of your “crazy” plan begin to materialize, the whole game changes.</p>
<p><strong>What people say during this stage:</strong></p>
<ul>
<ul>
<li>“How did you do that?”</li>
<li>“That’s not fair &#8211; I want your [UNIQUE RESULTS!]”</li>
<li>“Some people catch all the lucky breaks.”</li>
</ul>
</ul>
<p><strong>3 top-performing contrarians who put effectiveness before ego</strong></p>
<p>I want to share three inspiring examples of famous risk-takers who made this cycle work for them instead of against them.</p>
<h3><span style="color: #000000;"><strong>Billy Beane, GM of MLB’s Oakland Athletics</strong></span></h3>
<p><strong>What His Peers Did</strong>: Spent every dime competing for the same flashy superstars every other team wanted.</p>
<p><strong>What He Did Differently</strong>: <a href="http://www.iwillteachyoutoberich.com/blog/how-to-stand-out-and-get-hired/">Used statistical analysis</a> to identify boring, “no-name” players with massively undervalued skills.</p>
<p><strong>What The Critics Said</strong>: Rivals told Beane he “couldn’t build a baseball team with a computer” and to “enjoy telling your daughter why you work at Dick’s Sporting Goods after this disaster of a season unfolds.”</p>
<p><strong>The Results</strong>: Beane’s teams made the playoffs 5 times between 2000-2006, despite losing star players to richer teams and <a href="http://sports.espn.go.com/espnmag/story?id=3816824 ">spending less per victory than any team in Major League Baseball</a> from 1998-2008.</p>
<p>When co-workers mocked Beane’s new players for not looking athletic, he asked: “are we looking for baseball players or selling jeans?”</p>
<h3><span style="color: #000000;"><strong>John Carlton, world-famous advertising copywriter</strong></span></h3>
<p><strong>What His Peers Did</strong>: Wrote the same lifeless, boring advertisements as everyone else in order to “sound professional.”</p>
<p><strong>What He Did Differently</strong>: Crafted emotionally charged, attention-grabbing stories (like his famous “One-Legged Golfer” ad) to hypnotically drive sales.</p>
<p><strong>What The Critics Said</strong>: “We can’t publish advertising like this! We’ll look like amateurs. Our customers will be offended. Our competitors will mock us. We’ll get sued!”</p>
<p><strong>The Results</strong>: Today, John is known as “the most ripped-off writer on the web” and charges fees that cause unprepared clients to choke.</p>
<p>His secret? Finding clients who could withstand the Contrarian’s Cycle:</p>
<p style="padding-left: 60px;">“The best thing that ever happened in my career was to meet The Boys — those clients who lured me into working with them by promising to run everything I wrote, as I wrote it. No whining, no tears, and they took all the heat from outraged audiences and pissed-off talent. They stood their ground with me for over 20 years, because I only used solid fundamentals when I wrote for them… including, of course, the fundamentals of killer hooks and jaw-dropping storytelling… and it worked like crazy. Over and over and over again.</p>
<p style="padding-left: 60px;">Without them “taking the leash off me”, most of my now-infamous ads would never have seen print, or gotten mailed or been posted online. They swallowed their fear, because the fluttery green bales of money coming in proved the case.”</p>
<p>I worked with John for over a year, and he confronts every client with one question: “are you trying to impress your customers or your colleagues?”</p>
<h3><span style="color: #000000;"><strong>Tim Tebow, quarterback for NFL’s New York Jets</strong></span></h3>
<p><strong>What His Peers Did</strong>: Ran the same predictable, pass-heavy offense as every other NFL team.</p>
<p><strong>What He Did Differently</strong>: Used a different offense called the “run-pass option” that was much tougher to defend.</p>
<p><strong>What The Critics Said</strong>: Football pundits used Tebow’s below-average passing skills to conclude that he would “never succeed in a passing-dominated league” and was not a “real NFL quarterback”&#8230;even as he kept winning.</p>
<p><strong>The Results:</strong> Kerry J. Byne <a href="http://sportsillustrated.cnn.com/2011/writers/kerry_byrne/11/29/tim.tebow/index.html ">devised a new statistic</a> (Real Quarterback Rating) to measure ALL aspects of QB play: not just passing, but also rushing, sacks, fumbles, and other metrics under QB control.</p>
<p>Beneath this new lens, a fascinating picture emerged. Tim Tebow, dismissed as a misfit with no hope of lasting in the NFL, was winning with a decidedly contrarian playing style:</p>
<p style="padding-left: 60px;">“&#8230;Tebow is no statistical circus freak winning in spite of himself. Tebow&#8217;s [teams] are winning because he consistently outperforms the opposing quarterback [...] In fact, he consistently outperforms them by a wide margin.”</p>
<p>Asked to explain his improbable 2011 success (which included taking a 1-4 team into round two of the playoffs) Tebow said “I care about winning games, not passing yards.”</p>
<p style="text-align: center;">***</p>
<p>What is the common trait? Each of these trailblazers decided that effectiveness (the long-term RESULTS of their unconventional plans) mattered more than their egos. And they were vindicated in the end.</p>
<p><strong>Pushing yourself through the cycle</strong></p>
<p>We all need motivation to achieve our goals. The difference is that most people derive their motivation from safety in numbers: the encouragement of friends and family who <em>believe</em> in what they are doing (or even just the implicit social sanction of going with the flow.)</p>
<p>Contrarians need motivation, too—often much more, in fact. But their motivation comes solely from themselves and the results they are after. Not only do they create their own motivation, they frequently do so amidst harsh criticism and a complete absence of outside support.</p>
<p>Followers are innocent until proven guilty: cheered on from beginning to end. Contrarians are guilty until proven innocent: cheered for only when their plans work.</p>
<p>Does this make it difficult to keep moving? Of course! It’s easy to feel motivated when you’re an engineering student, lining up a secure project management job like your father. It’s a lot tougher when you’re an aspiring musician, painfully aware your parents wish you were doing something else.</p>
<p>But if you want to achieve extraordinary results, you need to put effectiveness<em> before</em> ego.</p>
<p>The reason I followed through with the DIY Degree is that <em>I saw Stage 3 before starting Stage 1</em>. Instead of crumbling under criticism, I made a calculated bet that my plan would work. Most importantly, I decided my plan working was the only thing that mattered.</p>
<p><strong>Achieving breakthrough results by asking The Naive Question</strong></p>
<p>What also empowered me to push through the cycle is <a href="http://www.youtube.com/watch?v=spby1JQ8mok ">The Naive Question</a>, which says:</p>
<p style="padding-left: 60px;">“If we weren’t already doing it this way, is this the way we would start?”</p>
<p>The beauty of this question is that it forces you to ignore everything other than results. If you discover a better way to do something (<a href="http://www.earn1k.com">earn more money</a>, <a href="http://www.iwillteachyoutoberich.com/dreamjob/">land a dream job</a>, <a href="http://www.doityourselfdegree.com ">graduate college</a>) then “but we’ve always done X” should not stop you. The Naive Question establishes a Darwinian selection process where only the best ideas survive.</p>
<p>This leads to some provocative questions, such as:</p>
<ul>
<ul>
<li>“Why is the workday 9-5?”</li>
<li>“Why do we settle for <em>any</em> job instead of identifying our dream jobs?”</li>
<li>“Why did colleges stop being a place for devoted students and become mandatory for anyone who wants a better career?”</li>
</ul>
</ul>
<p><strong>Again</strong>: sometimes the answer to The Naive Question is a resounding “yes!” As Tim Ferriss wrote in <em>The 4-Hour Work Week</em>, “I don’t walk down the street on my hands because everyone else walks on their feet.” Contrarianism only works when your way is <em>demonstrably better</em> than the norm. Frequently, however, it is.</p>
<p>Consider the age-old “renting vs. buying” debate. We love telling ourselves that home ownership is an investment and that renters are just “throwing their money away.” Yet we almost never <a href="http://www.iwillteachyoutoberich.com/blog/my-friend-was-about-to-buy-a-million-dollar-house-with-no-research/">run the numbers</a>! When we do, we discover that home ownership is anything <em>but</em> a good investment. Indeed, it parasitically drains your net worth with “invisible costs” like maintenance, property taxes, and homeowner&#8217;s insurance.</p>
<p>The <a href="http://www.iwillteachyoutoberich.com/blog/the-invisible-scripts-that-guide-our-lives/">invisible scripts</a> of American culture tell us to buy&#8230;but renting vs. buying is actually an “effectiveness or ego” question. Do you simply want a cost-effective place to live? Or are you more concerned with social status? If you’ve never run the numbers (like comparing home price appreciation to stock market returns) ask yourself what the answer is.</p>
<p><strong>Results and happiness prove everything</strong></p>
<p>Contrarianism is not simply about “sticking it to the man.” You need not be rude, disrespectful, or insensitive. It’s actually about living a better life—whatever that means to you.</p>
<p>Think about the strategies Ramit teaches: they are all contrarian. Most people are not ambitiously creating side incomes, or setting up automated financial systems to grow their wealth, or using advanced research, networking, and psychology to land their dream jobs.</p>
<p>They certainly are not using the DIY Degree to graduate in ¼ of the time, like I teach my readers.</p>
<p>But the people who <em>do</em> get massive results —because they were willing to put effectiveness before ego.</p>
<p style="text-align: center;">***</p>
<p style="text-align: left;"><strong>What about you? Please leave a detailed comment with:</strong></p>
<ol>
<ol>
<li>One example of how you have achieved great results by putting effectiveness before ego (or, if you have not done so yet, one example of how you could.)</li>
<li>What are the one or two biggest “contrarian changes” that, if implemented, could have the biggest impact on your life?</li>
</ol>
</ol>
<p><!--
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