Category Archives: Wealth Creation

Do You Believe In Law of Attraction? Then You’re A Cargo Cult Member

Do you still believe that by writing mock checks and performing sacred rituals of immitating millionaires will make you rich one day? Why don’t you ask these guys from Tanna Island if it worked for them.

(They worked real HARD at this Law of Attraction thing. And they definitely took it more seriously than you.)

Cargo cults have mostly died out by today, even though there are very few active ones still around.

There were several cargo cults throughout the world, but some of the famous ones include the John Frum cult and Tom Navy cult from Tanna Island (Vanuatu).

The Vanuatu island group (Melanesians) lies northeast of Australia and southeast of Malaysia and the Philippines.

Prior to contact with Europeans and other advanced nations, the people who lived here were primitive tribal societies.

While their history dates back to the 19th century, the cargo cult activity increased massively during and after the Second World War.

The rural Melanesian population observed, right before their eyes, the largest war ever fought between two technologically advanced countries. First, the Japanese arrived with a great amount of supplies, and later the American forces likewise.

Both sides airdropped massive supplies and troops at the airstrips on these islands. The islanders, having never seen outsiders or even travelled out of the island before, were shocked and surprised.

Clothes, can foods, tents, modern medicine, weapons, and various other goods arrived in massive supplies airdropped for the soldiers from both sides; both Japanese and American soldiers have shared some of their supplies with the rural islanders for a brief time.

Due to language barrier, soldiers from neither side could communicate with the islanders, leaving the rural people to only wonder and imagine.

Ultimately, the Melanesians concluded that these advanced nations obtained their material wealth (the “cargo”) through magic, religious rituals and practices. And as evidenced from what they saw, their wealth came from the heavens by their ancestors and deities (the “airplanes”).

After the end of World War II, the military abandoned the airbases and stopped dropping cargo. Charismatic individuals developed cults among the remote Melanesian populations and promised to bestow on their followers deliveries of food, arms, jeeps, etc.

The cult leaders explained that the cargo would be gifts from their own ancestors and deities, just like it did with the outsiders, the Americans and the Japanese.

In attempts to obtain these ‘material wealth’, the primitive islanders imitated the same practices they had seen the soldiers used.

The Cult mimicked the day-to-day activities and dressed as close to US soldiers as possible. They performed parade ground drills with wooden sticks for rifles.

They carved headphones from wood and wore them while sitting in control towers made from wood.

They also built life-size replicas of airplanes out of straw and landing strips out of the jungle, and then make signal waves hoping to attract more airplanes.

The Cult members believed that the ‘foreigners’ had some special connection to the Gods and ancestors, who were the only beings powerful enough to produce such material riches from the sky.

Of course, you know what happened. Or to be exact, what DIDN’T happen.

The Cargo Cult has dissipated greatly today, even though few remain in rural parts of the world.

While they may be less active now, a new kind of cult has evolved today – it is called the Law of Attraction.

Popularized by books and movies like The Secret, the premise of this ‘law’ is that if you know what you want, just ask the Universe for it, visualize it being yours, and be open to receiving it and you will get what you want.

When you look at the claims and strong arguments made by The Secret, it is easy to understand why many people have been taken into this idea that the Law of Attraction is the real deal.

Like the charismatic cult leaders that convinced the Melanesian islanders that there is an ancient God or ancestors that will drop wealth from the sky, books and movies like The Secret has convinced the modern day person that these wealth will come to you if you ask the Universe for it and visualize it hard enough.

Just that instead of charismatic cult leaders, it’s now Self Improvement and seminar gurus pitching this idea to everyone.

And just as the rural people thought that the Americans and Japanese were bestowed gifts from the Gods through magic and ritualistic practices, the modern day folk thinks that the richest people in the world are exceptionally gifted or performs some form of Law of Attraction practice.

If you think that the islanders mimicking the US ground parade and building fake airplanes and airstrips from wood is laughable, people a hundred years from now will in turn laugh at you for writing mock checks to yourself and immittating rich people by performing rituals at a self help seminar.

Do you think you can attract wealth this way? Well, you already know the Melanesians didn’t get theirs… and they visualized it a lot harder than you did!

Seriously man. Nothing substitutes smart work. You will have a better chance at wealth that way.

Your Most Important (But Extinguishing) Asset…

By end of this month, I would have travelled to 9 countries in 12 months. I’ve been in two tours and I was usually one of the youngest guys around; most of the other tour participants are old enough to be my parents / grandparents.

Which often lead to questions I get along the lines of, “How are you able to travel while you’re still in your 20s?”

You already know that I am an Internet Marketer. I have websites. I sell stuffs online, digital products to be precise.

But that in itself isn’t THE answer.

To be financially free and travel before my mid 20s demanded more than just ‘building a business’. The other more important asset is TIME. In fact, that is a big part about my business; I help my clients save time through my Private Label Rights products.

Take a look at many other ‘successful’ marketers and you will see that even though they are making big bucks, they can seldom take a day off. For many of them, they are being controlled by their business. Heck, that was ME just a few years ago.

Building a business in itself just isn’t going to cut it. If you want to enjoy unadulterated time freedom without being chained like a slave to the business you’re creating, you need to build one that runs without you.

So the next step is to work towards automation and have yourself replaced!

While I conduct my business online in a guerrilla fashion but I’m not to be mistaken with being a cheapskate. I recognize the value of my time and between my time and money, I recognize that time is SCARCED and money is ABUNDANT. 3 trillion dollars circulate the globe every single day. But everyone has only 24 hours a day.

A big part of being successful faster with your business is being frugal with your time.

HOW WOULD YOU BUILD AN ONLINE BUSINESS THAT RUNS PASSIVELY OR SEMI-PASSIVELY WITHOUT YOU? SHARE YOUR IDEAS AND LEAVE YOUR RESPONSES IN THE COMMENTS SECTION BELOW!

P.S. When it comes to making big money with speed, this is what I’m talking about.

Why I Don’t Consider Gold & Silver An ‘Investment’

There’s been a hot buying frenzy and hoarding of precious metals, notably since late last year. Early this year, investors that bought Gold and Silver were happy to see the charts as prices for these precious metals shot through the roof.

Also, many financial experts are encouraging the masses to buy them in face of the dropping US Dollar. However, I do not consider buying Gold and Silver as really ‘investments’.

Now you’re probably asking, “Huh? Why not?”

NOTE: For the record, I keep precious metals like Silver and Copper. I had been asked many times if it’s a smart decision to buy any precious metal and whether it’s a good time to buy now. To give a short answer, I would say “buy for the right reasons”.

So if you are considering to buy any precious metals – the most popular choices being Gold and Silver – I hope you find my insights helpful in making more informed decisions.

 

How Gold Prices Work In A Nutshell

Gold has been around since the dawn of mankind, both as a measure of a person’s wealth and display of status. That said, Gold will be here to stay for a very, very, very long time to come, even when paper money is being devalued.

Now I’m not going to give you a “nerd’s lecture” on how Gold prices work (you can Google that yourself) but you just need to know this:

Print More Paper Money = Currency Weakens = Gold Price Goes Up

The same holds true for Silver.

So unless you’ve been living a secluded life from the rest of civilization, the US government is in a titanic of debt – last I checked the US is $14.7 trillion in the red.

And in an effort to cover their already humongous debt, they are printing more dollars. Thus this leads to the weakening purchasing power of the US Dollar.

This is why many experts and people alike are positive that the Gold and Silver trends will remain bullish as long as the US government keeps printing paper money.

 

Why Buy Precious Metals?

Precious metals make an excellent hedge against inflation (I prefer to call it ‘devaluation’ actually), more so in today’s global financial turmoil.

This is precisely why I bought precious metals. I don’t want to see my hard earned savings get devalued over time, not when governments are printing money by the trillions and devaluing them in the process. An ounce of Gold will always be an ounce of Gold. Unfortunately, a dollar will not be a dollar.

To get a better perspective: what costs $1 million in 2004 costs $1.245 million in 2011. On an extreme example, $1 million in 1912 is equivalent to $68 million in today’s dollars!

So if you’re buying precious metals to hedge your savings against inflation/devaluation, it’s one of the wise things you can do to respond to the global economic crisis.

(Showing off your prestigious collection is an added bonus, and rich people throughout history own some form of precious metals, most notably Gold).

But that’s all buying precious metals really is about, as far as protecting your hard earned wealth is concerned.

If you want to get in on the modern gold rush for other reasons – especially profit via capital gains – this is not the right vehicle, contrary to what many people have been misled to believe.

Here’s why:

 

Case Example: Silver

As I am looking at the Forex charts right now, Silver is at $38.14 / oz. For simplicity sake, let’s make it $40 an ounce.

So you bought ounces of physical Silver at $40 an ounce and you keep them in a safe box somewhere in your house, or some undisclosed location. Okay, cool.

Fast forward a year later – let’s say Silver is now $70 an ounce. While I have reason to believe figures like that are very possible, you must be thinking you made a profit of $30 for every ounce you bought the year before!

By definition of ‘investment’: see POSITIVE RETURNS for the money you put in.

But here’s the thing: you didn’t really profit or should I say “get positive returns”. In fact, nothing’s really changed when you analyze it closely.

If it’s true that it’s $70/oz, this means that the dollar has weakened so much that it now takes more dollars to buy the same ounce of Silver!

So if you’re investing with the mindset or goal of profiting from its so-called ‘appreciation’, in reality you’re not getting ahead with it. Because if you decide to sell them away, you’re getting back perpetually the same value of dollars when you bought them last year.

It’s palpably clear why this is not a game of capital gains, and why I don’t consider it an ‘investment’ in terms of profiting.

 

Other Reasons Why I Don’t Favor Precious Metals (too much)

  • It does not give you cash flow. I categorize buying precious metals as a DEFENSIVE wealth strategy. It helps preserve the value of your hard earned savings in the form of precious metals. But if you want to buy that sleek sports car, go on a luxury vacation or live beyond your current means, then my friend, you need to go OFFENSIVE and do/buy/create things that produce positive cash flow.
  • If and when you sell it away, it’s gone. A bar will not magically spawn another bar. Once you decide to sell it away, you don’t have it in your posession anymore. And depending on where you are from, tax laws vary in different countries but one thing is for sure: you will almost never be able to sell it back at its full market price, not without paying the spread or tax bracket. Alternatively, you have to find a buyer who is willing to pay a higher price than when you purchased.
  • Any Tom, Dick and Harry with money can buy it too. To me, if an opportunity is too available I can’t help but get skeptical. And more so when buying precious metals entered public conscience just not that long ago, which triggered a mass buying frenzy with so many people jumping the bandwagon. It’s the modern day Gold Rush.

It’s easy to see why it’s a favorite investment for many because it requires no intelligence or skill to buy and keep them. You have money, you can buy ‘em.

But like I said, to really get ahead in the game of wealth it’s in playing OFFENSIVE. I haven’t seen or known of any competitive sports that players win just by defending. This is precisely why I place heavier emphasis and efforts on business building over my commodities portfolio.

 

In Conclusion: Should You Buy Or Not?

I hope my insights have helped you make more informed decisions. Quite simply, if you don’t have much money right now you should focus your efforts on building your cash flow.

But if you have large reserves then sure, you can purchase precious metals to fill up your commodities portfolio and protect your existing wealth against devaluation of paper currency.