Most people think that it takes money to make money. Therefore they believe they can’t make money until they first get some money. Because they don’t have money, they falsely believe they can never make money. Therefore they simply do nothing.
That’s why Daymond John’s book, “The Power of Broke” is so interesting. Unlike some people who were born in wealth or upper class households, Daymond John grew up in a rough neighborhood with only a single mother to guide him. He didn’t have money, yet he managed to hustle his way to making money. HIs secret? He didn’t rely on money. He relied on working and being creative.
His theory is that if you have money, you’ll likely spend it in ways that mask your real problem. The analogy he uses is this. Suppose a man buys the most expensive sports car around, showers women with jewelry and gifts, dresses in the most expensive clothes around, and lives in an expensive home. Undoubtedly, he’ll attract women.
The problem is if those women are only attracted by his wealth, they likely won’t be truly in love with him as a person. Thus wealth can attract the wrong types of people if you want a loving relationship.
The same holds true for making money. If you borrow lots of money, chances are good you’ll spend it on fancy decorations and retail store space. Then you’ll open up a store, only to find out you don’t know much about selling, you’re selling products people don’t want to buy, or that you’re simply impressing people but not optimizing your business to make a profit.
That means there’s a good chance you’ll simply waste your money trying to impress the wrong people who won’t be your loyal and steady customers.
Instead, it’s far better to start small, start broke. This forces you to find out what works before you spend money. Once you know what works, you can grow your business gradually without much risk. It’s far better to figure out your business needs changing when you’ve invested a little money into it rather than a lot. That’s the power of broke.
So being broke should never be an obstacle to getting rich or running your own business. Being broke is actually an advantage because it forces you to be creative and not rely on money to solve your problems for you because they won’t. The sooner you realize that spending money can be wasteful and actually counter-productive, the better off you’ll be.
“The Power of Broke” teaches you that lack of money is never an excuse not to do anything. Being broke makes you realize that creativity and persistence beats wasteful spending every time.