The Formula for Riches / The Difference Between Rich and Poor - by Dr. Hannes Dreyer / Chapter 11 / Part 1.

Don’t Take any Risks.

A Step by Step Instruction on how to become a Multimillionaire in less than 10 Years Starting with ZERO.

Now that you know it is possible to limit your risk and get phenomenal growth on your investment by taking the responsibility to manage risk down and grow up over a period of time, the question is often...

“I believe that you can do it but how can I do it myself?”

Here is one of the strategies you can apply; The Formula For Riches.

This is really it. 

The reading is over for now, and here we begin with the actual process of creating wealth. So at this point, you must decide whether you truly want to create wealth, or whether you are not ready just yet.

The reason I say this is that this strategy really works, it can be followed by anyone, and as long as you adhere to the principles of The Formula For Riches, you will not go wrong. 

Some of my students, once they see how simple it is to apply The Formula For Riches, will tell me that it is too simple – it will never work. This is just another excuse. It’s simple, yes. I’ve said so before.

So – if you’re committed – then, no more excuses! Let’s go!

Your Intention.

Your commitment: the intention or the ($) in The Formula For Riches. This is your goal – what you want to achieve.

You absolutely must make sure that on a scale of 1 – 10 the desirability of your goal is a ten out of ten or 100%. Unless you have 100% desirability you can forget the goal of becoming as rich as you want to be.

Set your goal according to the method I gave you. Determine the end point date. This is extremely important. Without a PowerGoal? with an endpoint date, it will not be possible to achieve your goal.

The mistake most people make is to make it impossible for themselves to achieve their own goals and this normally happens because they are greedy. They have no experience but want to make millions within the next year.

Although it is not impossible once you know how to do it, it may be impossible for you at this stage. And impatience is one of the Wealth Creator’s enemies. A drive for success is an asset, but so is patience.

The difficulty ratio of your goal should be 100% as well. It must seem almost impossible but deep down you must know that if you give it 100% of yourself you will be able to make it.

Also, allow yourself enough time to reach your goal – but not too much time. It is no good giving you say 40 years to make a million dollars. 

Normally ten years is more than enough to build several million dollars. At the same time, for most people one year will be too short, simply because you will need to apply several exponential factors which you will first have to learn.

Everyone is different, but from personal experience, I would say it takes on average two to three years for the “average” student to internalize the process. Once internalized all you have to do is to manage The Formula For Riches.

Some students will take a bit longer. Mostly because their resisters are so deeply ingrained that they are their own worst enemies. The most powerful affirmation you can repeat every day and every moment is:

“I accept myself”

This affirmation may not seem like much but most people do not accept themselves just the way they are. They try to live up to other people’s expectations and in the process do themselves in.

My students also say to me “But Hannes, accepting myself has nothing to do with money!” How wrong they are. It is only by accepting themselves that they can move forward.

Few people do that. They live either in the past – guilt or regrets. Or they live in the future – worry and fantasy.

They are so busy trying to please others by trying to live up to other people’s expectations that they cannot live in the here and now.

Unless you truly accept yourself as a wonderful human being, you will not experience a life of abundance.

Remember I said you must take responsibility. Well, it starts with taking responsibility for your own life and that is what you will be doing when you truly accept yourself. Riches start with yourself and the right mindset.

Unless you accept yourself you will not love yourself. If you do not love yourself you will never give yourself the “right” to become a Wealth Creator and to experience life in abundance – which includes spiritual and material riches.

Once you accept yourself it will also be easier to accept others. By accepting yourself you will love not only yourself but also others.

The next step then will be to make a commitment to yourself not to break The Formula For Riches. (Note: you will break this formula unless you accept and love yourself!)

I am going to make it easy for you. Do not make it difficult for yourself by trying to over-commit yourself, no matter how desperate your current situation may seem. Do not force yourself to start with this journey unless you truly have a surplus.

It must be a surplus. If you are going to need that money before the endpoint date and you think it won’t hurt to take some of it out before your deadline, I can tell you now it is not going to work. You cannot play Robin Hood with your finances. You cannot rob your future and give it to yourself today.

This is like being in credit to your own future, and credit is what kills most people financially. Yet this is what most people are doing when they withdraw money from their investments in order to buy something.

Most of the time you will find people need to please themselves or others because they do not truly accept themselves. Don’t fall into this trap.

The moment you commit yourself to applying The Formula For Riches you are not allowed to touch any money, business, or investment, that is part of The Formula For Riches until you meet your intention on or before the date you set yourself.

You cannot break this rule.

Sometimes it may seem impossible, because you may be in dire straits – and believe me, you are going to be tested on this one!

I have seen how quickly a person will make excuses. For example, they will justify it by saying “I will only take $10,000 from my “investment” to buy this and then I will give it back within a year”. If you think of the money as belonging to The Formula For Riches then you must see this as stealing, and it is. You are stealing your own future. You cannot do that. Remember it is not your money. Your function is to be a steward of that money.

The day your surplus equals your intention (goal) is the day you can unlock the money from the formula and take it for yourself.

An interesting thing often happens on that day. By now, people who get this far have disciplined themselves not to “steal”, and they are used to living without the surplus, and they find they can carry on for longer. As a result, most people will not withdraw the money, and instead, they will set a new, higher intention or goal. (Please let me know what decision you make on that day!)

Where does the Surplus come from?

We start off with a surplus (or create it).

This can be a lump sum or a monthly amount. It is actually unimportant.

So where can you get a surplus? People normally overlook the most obvious places. I come from a financial planning background. I found that in at least seventy percent or more of cases, the surplus was hidden within your budget or the way that you allocate your money. By having a look at financial restructuring or your budget allocation the chances are great that you will find a surplus.

So let’s look at some practical examples.

Life insurance: can you get the same life cover for a better premium? Let’s say you are spending $200 per month on policies and you shop around and discover that you can get the same cover with the same benefits for $195 per month – you have discovered a $5 surplus each month.

I hear you say: “But that is only $5 per month, it will never make me rich” ... I promise you that if you apply The Formula For Riches the way that you have learned, you will find that $5 is a lot more than you need.

Short-term insurance: shop around; the chances are great to get the same benefits for less money.

Look at your investments. Are you currently getting less than 12% growth on your projected value? If so perhaps you should reconsider this option or what about lowering the premium (the investment) by 10%?

Let me show you what I mean. Let’s say you are saving $100 per month for 10 years at 10% compounded interest per annum. The projected maturity value will be $20,484.50. If you lower the investment to $90 per month the maturity value will be $18,436.05. The difference will be $2,048.45.

This immediately gives you a surplus of $10 per month. If you invest the $10 yourself by applying The Formula For Riches you need only get 10% growth to be in the same position you have been before at maturity date.

But what will happen if you apply The Formula For Riches and you get 200% growth?

Let’s look at another example. Are you paying interest? Let’s say you have a bond of $100,000 at 5% per year and you are paying the bond over 20 years - your repayments will be $659.96 per month.

What if you can get a .25% better interest rate? The premiums will be $632.65 - an improvement (surplus) of $27.31.

Another way to get a surplus is to extend the term to 25 years. The monthly payments of $100,000 at 5% over 25 years will be $584.59 or a monthly saving of $75.37.

Please note that if you follow the last example, although you will save $75.37 per month on your cash flow, you will be paying a lot more interest over the full term.

So you cannot take the $75.37 and increase your standard of living with it. You must apply The Formula For Riches and get excellent growth which more than covers the extra interest over the extended period. For instance…

If you get 5% growth on your investment you will be in the same position as before and the bond will be paid in 20 years instead of 25 years.

Just to make things interesting...

... if you can apply The Formula For Riches and get 25% growth on average over the 20-year term, you will have $506,390.69 in the investment.

... If you can learn to get 35% you will have $2,561,059.92.

Occasionally someone will tell me they tried it all and they cannot find a surplus in their budget. That may be true but perhaps they are living above their means. Decide what asset or assets you must sell to lower your standard of living – and then do it. Those assets are weighing you down.

Maybe you do not need that $250,000 property right now. Perhaps you can even find a better place to stay for $210,000. The difference in repayment will give you access to a “surplus” cash flow.

Or what about your car? Is it possible to find a way to save on gas?

The most overlooked place (and the one most people in the category will try to overlook) is indulgence. 

Do you smoke? 

What about eating out or perhaps drinking too much? If you are serious about becoming financially rich, you cannot afford to waste money – especially in the beginning when you are still building your financial empire.

Let’s say you can save fifty cents a day by cutting out some of the things I mentioned. That will give you a surplus of about $15 per month. Again this may not seem like a fortune, but if you apply The Formula For 

Riches and get 45% compounded growth on your $15 per month investment, how much money will you have in 25 years' time (without the need to save another dime)? 

You will have more than 25 million dollars.

Worth doing, don’t you think?

You can also look at items that you have not used (or touched) in the last year. Let’s face it, if you have not worn a piece of jewelry for more than a year, you do not really need it.

Sell it.

Use the money that you get for it as the beginning of your Universal Formula For Riches investment strategy. If you follow this strategy you will be able to buy as many fine pieces of jewelry or clothes as your heart desires in a couple of years’ time – from that one little sacrifice, you made when you decided to let go of something that you do not need or use.

Normally this is the test to see if you are serious about becoming rich or if you are just talking. Unless you are prepared to sacrifice time and effort – and sometimes are even willing to give up some pleasure and luxury, you will not become rich. 

There are no shortcuts.

But what if you really do not have any way to get to a surplus, what then?

You are in luck because you see although we must have a surplus to start The Formula For Riches it does not even mean that we must have the surplus. 

We can create a surplus.

Using Nature to Help you Create a Surplus.

You do not need any money to make money. You need the desire to become rich. The way will present itself if the desire is strong enough.

I will give you one or two ways you can use (to start the process) – and I hope this gets you thinking about more.

So let’s say you are serious and you have the intention of making at least $5,000,000 within the next 10 years and in the process taking no or very little risk.

What will be the next step?

You simply follow The Formula For Riches and apply the principles.

Look at growth. Nature is the perfect example that God does not work in a limited manner. He creates everything in total abundance.

Clivias.

For this exercise, I am going to take a clivia plant. Clivias are beautiful shade-loving plants with dark green strap-like leaves which produce magnificent orange or yellow flowers in the spring. 

They come from South Africa and have become popular and sought after by garden lovers all over the world.

The reason I am using the Clivia for this example is that as I write this, they are flowering in my garden. And because they are sought-after garden plants, they can be sold for quite high prices. Another reason I am going to use this example is that they are beautiful. And it does help to love what you do!

However, you can take almost any plant to start your financial road to riches.

Last year I walked through my garden admiring some Clivia plants which were in full bloom.

I saw some ripe seeds and harvested about 120 seeds. I looked at the seeds, and marveled at how nature created such bounty – the potential for so many extra plants to spring from just one “mother”.

Yet in reality, many are eaten by pests or do not germinate because the conditions are not perfect. My mind starts racing. What would happen if I could speed up nature’s process of growth (accelerate (nm) by increasing the number of seeds produced by pollinating the flowers myself – I wonder what would happen?

As I looked at these magnificent flowers I thought, “What would happen if I take the responsibility (Re) and applied The Formula For Riches by spending time and effort (nm) by doing the pollination myself? In other words, I eliminate the risk (Ri) of the pollen not reaching the stigma. By taking the responsibility (Re)?”

You see, The Formula For Riches is in operation right in front of our eyes but we do not see it simply because we are not trained to see the obvious.

I did some research (applied time and effort - nm) and found out that if I was prepared to do the pollinating myself and also to follow some other principles to make sure I maximized the number of seeds I got (maximized growth - G) – although that this would take some time and effort (nm) – I would get good results.

In other words, I found that I needed to take responsibility (Re).

So nature provides the Clivia with huge potential to reproduce and if I managed the risk down (Ri) and the growth up (G) by applying time and effort (nm) and taking responsibility (Re), I could get the most out of that potential.

The risks, in this case, are a harsh environment that stops most seeds from germinating and growing to maturity. Of the few plants in nature that do germinate, very few plants will grow until they can produce flowers of their own.

It takes about four to five years to produce the first set of flowers and in nature, there are many risks such as drought, famine, and fire to name but a few.

The risk is also that not all flowers get pollinated. So if I controlled the pollination by doing it myself, and if I controlled the environment by making sure each seed had a good chance of germinating and growing, then I could increase the natural growth rate of the Clivia. As the risk (Ri) goes down, the growth (G) goes up. All because I take responsibility (Re) and apply time and effort (nm).

So in nature, very few seeds will make it simply because of risk. And if we can manage that risk down, we get better growth.

So how do you eliminate risk or lower the risk (Ri)? Easy! You simply optimize the growing conditions. The moment you plant these plants in your garden their chances of survival go up because if you pay for a plant you will look after it, water it, and feed it, you will also make sure that the plant grows in the right climate and soil pH levels.

You will also make sure it does not get sick and you will remove pests. All of the things will decrease the risk and in doing so you increase the chances for survival.

The plant will help the process because it will produce flowers, and the more flowers there are the bigger the chance of survival.

Now, what if you can eliminate risk, and apply The Formula For Riches? What if you take the responsibility to lower the risk and increase the growth? And what does this have to do with riches? Just follow me and see where I am going with this.

I used my biology knowledge and without spending too much time and effort did some pollinating. I applied the first law – invest in myself - because if I did not know how to do it (the pollination process) and so I would not even attempt to do it until I had found out.

I took a little more responsibility and made sure that I did not crossbreed them. In other words, I used the pollen of the yellow Clivias to pollinate yellow Clivias and so on.

I read up a little, phoned a clued-up friend, and found out how you plant Clivia seeds. I applied my limited knowledge, made sure I followed the recipe (the processor system my friend gave me) and to my amazement, within a month I saw new seedlings germinating!

I applied a little TLC every week and about four months ago I planted 120 new plants out into my garden. In my garden, I have an irrigation system so I was able to forget about the plants until the next time they flowered – the same time the next year.

That was last week Saturday.

The Clivias are blooming again.

This time I was in for a surprise. The work I had put in a year ago is paying off with a handsome crop of seeds.

I collected 858 seeds this year.

Now just because I took the responsibility and did not depend on nature I increased the yield or crop by more than 600% (858 – 120 = 738 / 120 *100%) = 615%.

I hope you see where we are going. By applying a little effort and time (nm) I decrease the risk (Ri) that the plants will not get pollinated (that is why I got 600% more seeds) and increase the growth (G) from 120 seeds to 858 seeds from the same plants (mother stock) in my garden.

This was quite a confidence booster so I immediately started pollinating again. This time I put a lot more time and effort into it compared to last year. (Your confidence grows as you see results and that accelerates your progress.)

This year I invested in myself. I studied up a lot more and I feel confident that now I know at least the basics. I also consulted some Clivia experts and I assume next year I will harvest more than 1000 seeds from the same plants.

The confidence that I can do it is there and I can see that if I have a plan (which I do have simply because I want to show you how simple it is to apply The Formula For Riches) then my growth (G) will continue to climb, as long as I do not sell any Clivias in the meantime (this is where patience comes in!).

Now let’s make some assumptions:

The mother stock stays the same – I do not remove any plants - and it will produce 1000 seedlings from next year onwards.

Let’s further assume it takes four years for the plant to start producing seeds.

I harvested 143 seeds from one plant this year – that is my record, so apparently, with a little bit of TEM$ (Time, Effort, Mindset, and $0) I can get an average of 50 seeds from each plant.

In four years’ time, I will have the original mother plants producing 1000 plants (seedlings).

Plus the 120 plants I planted this year times 50 = 6000 plants.

If we make the assumption over 10 years it will look as follows...

Explanation of year 6 row 3 = 42 900, the 858 seedlings in year two (column 2, row 1) are now four years old and will produce at least 50 seeds each (858 * 50 = 42 900).

If we can take this model you will see in 10 years you will have the following plants or seedlings:

• 120 plants that are 10 years old.
• 858 plants that are 9 years old.
• 1 000 plants that are 8 years old.
• 1 000 plants that are 7 years old.
• 7 000 plants that are 6 years old.
• 49 900 plants that are 5 years old.
• 99 900 plants that are 4 years old.
• 149 900 plants that are 3 years old.
• 499 900 plants that are 2 years old.
• 2 994 400 plants that are 1 year old.

Let’s put Value to it!

The cultivars which I have at the moment are selling at between US$ 50 and US$175 a plant. They are only sold when they are in flower therefore they must be about four years old.

If we take the average per plant at $2 then (future value) the value = $7,607,956.00.

Assumption.

I have made several assumptions. The biggest assumptions at this stage are...

1. I assume you will have the right mindset and will do whatever it takes (this will include investing in yourself and finding out whatever you need to know about Clivias or whatever investment you want to invest in).

2. If you can make more than $11 million dollars within ten years starting with ZERO risk why would a person not learn all there is to know about a subject or investment? And this is just one example.

3. I also assume you do know enough about plants (and Clivias or any other investment) or that you can learn what you need to know relatively easily so that you will be able to apply The Formula For Riches.

4. I assume 50 seeds per plant on average. As I said the record this year per plant was 143 seeds.

You can increase the average per plant and by applying The Formula For Riches, you should get at least 100 seeds per plant.

With proper, pollination, feeding, and care (which means applying more responsibility (Re), and more time (n) because it will take a lot longer to pollinate or care for 100,000 plants than for 10, and more effort (m) – it will take some serious effort to pollinate and care for 1,000,000).

5. You do not run into the ceiling of complexity.

You will only get to this point after some years have passed, giving you plenty of time to learn what you need to know, as well as to set up your irrigation, etc. In other words, you have more than enough time to learn all you need to know about the ceiling of complexity and how to overcome it.

A good place to start if you want to learn more about how to apply The Formula For Riches is to join my Wealth Creators Mentoring Course?.

For more information on the Formula for Riches book;