Five Areas Where You Can Obtain Compound Interest

Five Areas Where You Can Obtain Compound Interest

Albert Einstein called the power of compounding a miracle.

To be more exact, he said:

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”

The power of compounding is an expression for the effect when the money that you have already earned using your money, also starts making money.

What is compound interest and how can you achieve it?

In this blog post, I’ll give you five examples of it. The first is the most obvious one: your savings account.

1. Compounding With Interest

Let’s imagine you have a savings account with interest on it (as in the old days). Let’s say that the interest rate is 10% (this was actually possible when I was a child).

You deposit 1,000 USD… and then you do nothing more.

Next year you have 1,000 USD plus 10%, and that will amount to 1100 USD.

The year after that you’ll receive more than 100 USD, because the first 100 USD you earned on interest will also earn you money. Now you get 10 % of 1,100 USD.

So the interest earned on year two is 110 USD.

The extra 10 USD came from the power of compounding.

2. Compounding on Stocks

Of course, the same thing happens with your stocks.

But when it comes to shares, you may need to do something active to take advantage of it.

The money you have already earned must be reinvested in order for you to take advantage of the compounding effect.

For example, if you get paid dividends or have sold shares with a gain, you have to reinvest the return so that it’ll still make money for you. If you buy shoes with the money, you’re ruining the power of compounding.

3. Knowledge and Experience

Warren Buffett says there is power of compounding when you gain knowledge. It’s important to keep learning and reading about companies you want to invest in.

The knowledge you build makes it easier to absorb additional knowledge.

We continue building on what we have already invested in our brain.

This obviously is true for all kinds of experience and knowledge – not just investing.

4. Friendship and Goodwill

Whatever you send out, you get back manifold.

The famous value investor Guy Spier believes that one of the things contributing to his success is a habit of sending three physical thank-you letters by mail every day.

He says the little things in life can have a big effect over time. However, it can take up to five years before the effect shows up – and most people have already given up long before that.

“I now understand, this habit of writing letters is an incredibly effective way of compounding goodwill and relationships instead of merely compounding money,” he wrote in chapter five of his book The Education of a Value Investor.

“The narrowly financial application of compounding may be the least valuable and least interesting aspect of this phenomenon.”

This way of thinking is very inspiring and can really make you aware of what you are setting in motion.

One unkind word can turn into a crisis. A little well-meaning praise can be the beginning of a budding new friendship.

But it’s important not to expect an immediate and quick return on your effort.

Just give and let go. Everything comes back to you amplified – but from unexpected sources.

5. Health and Strength

The power of compounding is inherent in everything.

Of course, it also applies to your health.

If you aim to become a little healthier every day, exercise a little more every day, you can get in very good shape in a very short time.

Think about it.

If you just get one percent stronger every day, you’ll be a lot stronger after a year.

Or let’s take running as an example.

According to a very common rule of thumb, you can only add 10% to your weekly mileage (in order to avoid running injuries).

Let’s say you’re beginning a new running practice, and you’re not supposed to run more than 10 miles (accumulated).

In week two you can run 11 miles – which is really NO difference in your daily running schedule. This stuff can drive you nuts with impatience if you want to train for a marathon.

But wait, it gets so much better as the power of compounding sets in.

10 weeks later you’ll already be able to run 26 miles, and after 15 weeks you can run 42 miles. After a while, you can add 15 miles a week to your weekly total.

Obviously, there is a natural limit – you can’t become infinitely strong or run infinitely – but for a long time, you can reap the benefits of the power of compounding.

Also, there is a kind of mental compounding. When the ball gets rolling and you can feel how you’re getting healthier and stronger, you’ll feel like doing even more.

It is very motivating.

Where Do You Want to Apply this Power Today?

I could give you many more examples of the power of compounding. 

In fact, it’s in everything.

Even in this blog.

Let’s say you launch a blog, and in the first year, you have around 500 readers who are mainly your polite friends and family.

But if just 8 out of 100 recommend it to a new reader every month, the blog will grow organically to 1,200 in a year and to 46,000 readers in five years (oh, please take this as an invitation to invite others to read the blog or download the e-book).

I tend to think about this power and live by it in everything I do, whether it’s learning a new language, running, teaching my kids to read, or spreading kindness.

My question to you is:

In what area of your life do you want to activate the power of compounding today?

If you liked this post, remember to recommend both the blog and the e-book Free Yourself, which you can find here.


The Ten Most Important Things I Learned From Bob Proctor

The Ten Most Important Things I Learned From Bob Proctor

Bob Proctor taught many people how to live their lives to the fullest, to be more and to earn more than they ever dreamed of being and earning before they met him.

Bob, who was 88, was in the middle of a lot of projects when he died (it’s said he died peacefully in his sleep), and for many of us it feels like a long conversation interrupted too soon.

I was in the middle of getting a certificate as a Proctor-Gallagher consultant, and I was doing a mastermind group with him every week where he gave lectures and answered questions.

I learned a lot from him, and I hope I got it all. I wish I had asked him more questions. I felt like I was holding myself back and waiting for the right time to ask my questions… and now it’s too late. I have to work with the material that he left behind.

Bob tends to say that you haven’t learned it until you can explain it.

That’s why I will use this blog post to honor his memory by looking through my notes from his mastermind teaching, selecting the ten most important principles… and explaining them.

Maybe they can be useful for you, too.

In any case, here they come:

1. Always Work From Your Goal

A lot of people get lost on the trail because they don’t know where they want to go.

People doubt themselves and look for guidance outside of themselves. They ask other people all kinds of questions.

Should I quit my job first or wait?

Should I set the price at this or that?

Should I buy a house or rent one?

“I do not know. What is your goal?” Bob would reply.

Bob says you should always work with your goal as your point of gravity.

This means that you need to be fully aware of what you really want to achieve.

What does it look like in detail? Describe it. Write it down.

This applies to all areas.

Let’s go through some examples:

If you want a new house, describe that house in detail. The view, the different rooms, the atmosphere, the sounds, the smells. Forget about practical things like the physical location, the exact price, or the mortgage.

If you want to build your business, you need to be fully aware of what you want to make, who you want to serve, how much you want to earn and how much time you want to put into it before making any business decisions. Describe your business and your life.

If you are single and want a partner, do the same. Describe the person you want to attract. Also, write down who you want to be in the relationship. Many people make the mistake of throwing themselves into a relationship with someone who isn’t a match at all because they haven’t really decided what they want to attract – they pick something random that life throws at them.

2. Set Big, Dizzying Goals

Bob talks about A, B and C-type goals.

An A-type goal is something that you know you can achieve because you’ve done it before.

A B-type goal is something that you think you can achieve because you have the skills to do it and maybe you did something similar before.

A C-type goal is when you haven’t got the slightest idea how you’ll achieve it.

To give you an example, it was a C-type goal when JFK decided to have the US astronauts land on the moon within a decade. No one had done it before.

The purpose of a goal is to make us grow as human beings. We don’t grow if we set small goals.

That’s why you must set big, juicy, and impossible goals.

3. Be the Person You Want to Become

You need to assume that your goal has already been achieved.

You have to say, “I’m so happy and thankful now that I run a company with a million-dollar profit,” or “I’m so happy and grateful now that I run a billion-dollar fund” – even if you don’t have a company or run a fund at all.

You should feel the joy of having achieved your goal right now.

Never say you want to achieve anything. Say you ARE it.

For example, “I’m a successful businesswoman.”

Achieving a goal is about growing and changing, so the trick is to grow and change into that person who has already achieved the goal even before it has actually happened.

Think about who that person is and how they behave. Start living from that perspective.

How does your goal person make decisions? What kind of decisions do they make? Make that kind of decision in the same way.

What kind of discipline does such a person have? You must have the same discipline.

What kind of attitude does such a person have? You must have the same attitude.

You’ve got to see yourself being the person you want to become. Because ultimately, it’s all about who we become.

4. Get Into Your New Habitat

You have to start living the life of the person you want to become, and that means submerging yourself in that person’s habitat.

If your goal is to move to a certain type of house, go to that area every day. Hang out near those kinds of houses.

If it’s a certain lifestyle, start living that lifestyle right now to the best of your abilities.

Maybe you can’t afford to sleep in the first-class hotel yet. Then just go there for a coffee. Feel the atmosphere.

If your goal is to attract love, start being love. Give yourself flowers. Give love to others.

See yourself living the life that your goal person does.

Visualize it. Live it already. Feel it. Be it.

5. Sacrifice Something

Something has to go to make room for the new.

What are you willing to let go of?

Maybe it’s an old story about how the world works (e.g., “capitalists destroy our world”).

Or it could be a story about yourself (“I’m not good at money”).

It could be a habit like watching Netflix every evening or postponing doing the work.

Maybe it’s sleeping late in the morning so you can get up and write for your book project starting at 4 a.m.

What are you willing to sacrifice to reach your goal?

6. Wanting More Money is Good

“How much money are you comfortable saying you will earn?” Bob asked.

There is something unnerving about that question.

Because isn’t it true that a lot of people are uncomfortable with money?

Many people are ashamed of wanting to have more money, and that is completely wrong, Bob says.

What makes you strive for more money is the same thing that makes you grow as a person.

It’s the same force of nature that makes a plant grow.

From this follows that it’s good to set big money goals.

Money is just a kind of energy.

“Money is an accurate measure of how you are progressing towards your goal,” Bob said.

Are you comfortable making more money than your dad did? Than your whole family combined? Are you ready to earn more than your previous employer?

Where is your limit? Try to push it.

7. Stay Focused and Take Action Every Day

Stop focusing on what is missing and start focusing on what you want and what actions you can take every day.

Let go of the past. It’s not there anymore. Do not let current circumstances limit you.

This week’s grades, or your current payroll or bank account statement is also a thing of the past.

These things are not who you are – they’re just small relics of your past story and your old paradigm.

Don’t ever focus on what you don’t want, because you’ll just get more of it.

Only focus on what you want.

Think ahead all the time and do what needs to be done.

Ask yourself every day:

“What is the best goal-achieving activity that I can do today to achieve my goal?”

And then do it.

8. It’s Simple

“Stop making it so complicated,” Bob said. “You just have to make a decision and get emotionally involved with it, and you will attract everything you need.”

The only prerequisite is wanting it.

He calls it the “power of assumption” and says it’s life’s greatest shortcut. Just assume that will happen.

“This-will-be is a great way to live,” he said.

By the way, saying that it’s simple is not the same as saying that it’s easy, because staying focused on the goal (and cutting out distractions) requires will and discipline.

9. Take Massive Actions

Don’t be afraid of actions.

A lot of people get paralyzed, because they are afraid of doing something wrong and making a mistake.

That’s just resistance, and the best cure for resistance is action. Whenever you feel resistance, think of an action you can take, and take it.

There is no reason to fear failure, because so-called failure is just “unfinished business,” Bob explained.

He said it’s nothing to get hung up about.

“Every action you take is going to show you where to go next. Just keep taking action. You can’t take enough action when you have a big goal,” Bob said.

10. “And This Is Good.”

Bob sometimes told us the story of how he lost his only manuscript for his book You Were Born Rich in a taxi.

He didn’t have the license plate number. He didn’t even remember the taxi company, the color of the car, or the face of the driver.

“And this is good,” he said when he realized that the book he had worked so hard on writing was gone forever.

Then he began to look for reasons why it was good.

He ended up rewriting the whole book, and he was convinced that it became much better because of the rewrite.

Bob is gone now. The conversation with him is over.

I know exactly what Bob would say. He would say:

 “…and that is good.”

I’m not sure how it’s good that he is gone, but I’m grateful that he was here for 88 years and taught us the Law of Attraction for 65 years of his life.

I wish he could have turned more than a 100 so I had 12 more years to learn from him.

But that’s not how it turned out, and somehow it’s good.

 I don’t know yet why that is good, but I will keep looking for the reason.

To learn about building wealth through stock market investing, read my e-book Free Yourself here.



What’s the Difference Between Rich and Wealthy?

What’s the Difference Between Rich and Wealthy?

Rich or wealthy?

Maybe you think these are two different words for the same thing, but they aren’t. 

You can almost hear it in the word. One is like a rush. It’s material. The other is more solid and has more of a psychological quality to it. 

So what exactly is the difference? Here are seven…

1. Rich People Have a Lot of Money

You can be a top lawyer or a skilled surgeon who gets a high monthly income but at the same time builds up debt and spends more money than comes in.

A person can easily be rich, but close to broke. 

In the media, we talk about rich pop stars, but many of them go bankrupt when they stop having success and when their income drops. 

2. Wealthy People Have a Lot of Assets 

Being wealthy means building wealth that is a lot more than just cool cash. 

You’re not wealthy if you risk going bankrupt because of your lifestyle. 

Wealthy people possess assets that work for them. That may be stocks and shares, but it can also be rental properties or a business.

3. Wealthy People May Earn a Lot Less Than Rich People

Perhaps it will surprise you that Warren Buffett – who is one of the wealthiest men in the world – only receives an annual salary of 100,000 USD. 

This is actually just about what a skilled business journalist earns. 

Being wealthy doesn’t mean you’re swimming in cash every month. 

Wealthy is more about building, whereas rich is much more about the cash flow and the lifestyle. 

If a person can live off the return on their investments, that person is pretty wealthy.

4. Wealthy People Have More Freedom

A wealthy person has a great deal of freedom to choose the lifestyle they want.

A wealthy person is financially independent – or close to being so. Therefore, they are not forced to stay in a job where they are not thriving. They can live where they want and pretty much do what they want. 

A rich person – such as a supermodel, a brain surgeon, or a stockbroker on Wall Street – can easily be tied to a job.

5. Rich People Own a Lot of Status Symbols

When we think of the typical rich person, there are quite a few things that go along with that image and lifestyle.

Think a Porsche, mansions, a private jet, or a yacht.

To be considered rich, you need to look rich. It’s about living an expensive lifestyle.

That’s why rich people often own many things that pull money away from their finances.

Money may pour out of their pockets faster than it comes in… which is a sure path to insolvency down the road. 

6. Wealthy People Have More Stability

Wealthy people have peace of mind and can therefore sleep peacefully at night, even when going through a turbulent moment.


Because they don’t have to worry about the state of their finances. 

No one can threaten their lifestyle by firing them or cancelling a contract. They remain solid even if the immediate things around them change. 

A person with a high income but an expensive lifestyle leads a more unstable and unpredictable life. 

7. Wealthy People Have More Quality Time

Time is the scarcest resource that we have. We only have so much time no matter how much money we have. 

Rich people may be forced to stay in their day jobs, but wealthy people can choose whether to keep their jobs.

Therefore, there is a higher probability that wealthy people have more quality time in their lives. 

There is a greater likelihood that they’ll get more travel, experiences, and time with people they love.

If they have a job, it’s an active decision they made and probably something they choose because it brings them joy or a sense of fulfilment. 

Perhaps they’ve created their own job by establishing a business or a freelance practice. Maybe they’ve chosen to turn a hobby into a full-time job.

How Do You Become Wealthier?

If you want to be rich, you have to make more money. It requires a pay raise or a new job. It’s often dependent on someone else’s decision. 

The good news is, getting wealthy is actually more within your control than getting rich is. 

You really just have to do three things:

1. Cut back on your expenses and make sure you spend less money than you earn.

2. Put the savings in assets, such as equities.

3. Repeat every month.

You can learn more about investing in the best type of assets, namely stocks, in my free e-book here.

10 Steps to Setting Great New Year’s Resolutions

10 Steps to Setting Great New Year’s Resolutions

How did last year’s New Year’s resolution go.

Maybe you just forgot about it as the champagne bottles were packed away and life resumed.

What’s going to make this year any different?

How do you make your decision stick?

No worries, I’ve got you covered. 

Here are ten steps for successful goal-setting to make 2021 your breakthrough year. 

1. Make It Be Measurable and Specific

New Year’s resolutions are often vague. Real goals are specific and measurable.

It’s the difference between saying,

“I want to start running in 2021”

and saying,

“On September 26,, I’ll run the Berlin Marathon in less than 3.5 hours.”

Ask yourself, what specifically do you want to achieve this year?

By how much do you want your fortune to grow?

When talking about investing, it makes sense to set up long-term goals as your primary goals. Let’s say 5-10 years. It makes you less vulnerable to fluctuations in the market. So let’s begin there. 

How rich do you want to be in five years? In ten years?

Be really specific. 

2. Be Ambitious 

Big goals are a lot more compelling.

Cultivate your inner Napoleon. At least your inner Napoleon Hill, the mastermind behind Law of Attraction.

He says that ambitious goals are like strong fires, while small goals are weak fires.

There’s not a lot of energy in mediocre goals.

You have to be a bit audacious to become motivated.

Set a goal. Then double it. Or quadruple it.

How does it feel now?  

3. Have a Strategy 

If you’re training for a marathon, you’d better have a running schedule.

You can’t show up on September 26 and expect to be successful.

You’ll have to know how many days a week to run, when to train intervals, when to train stamina, and when to rest. You need to know what kind of food to eat before long runs. You’ll even have to plan what to wear when going on long runs. 

The same with investing.

You need a plan and a strategy.

How are you going to invest? Which strategy will you follow? Value investing? Passive investing? Day trading? Momentum investing? Copy trading? Pick a strategy. 

You’ll also need to plan how much money you’ll save for investing purposes.

4. Set up Subsidiary Goals

If you’re training for a marathon, it’s a good idea to measure your progress with other running events than the major one.

You’ll want to sign up for a half marathon and even shorter runs throughout the year to see how you fare in a competition and how fast you’ve become.

When you’re investing, you want to measure your progress at least every quarter.

Investing is a slow sport. Kind of like watching grass grow.

You don’t notice any difference from day to day.

But if you take a picture of a plant, you’ll notice a huge difference over time.

So take stock of stocks, so to speak. Track your progress by measuring your wealth. It’s enormously motivating. 

5. Commit Yourself  

You’ll only be successful if you promise yourself that you’ll stick to it whatever it takes.

You have to make that promise to yourself. 

Whenever I’ve accomplished something in life, it’s taken sheer determination and a promise to really do it.

If you’re not committed, like really committed, you won’t have success. It’s that simple.

6. Have a Purpose 

You have to know why you’re really doing it.

Let’s take running as an example again.

Hopefully, you don’t run just for the sake of running.

Hopefully, there’s a bigger purpose, which could be an intent to live a long and meaningful life without lifestyle diseases that could cripple you.

The same with investing.

Ask yourself why you invest. “To make more money” is not an answer. That’s like saying you run to become faster.

Ask yourself why you want to make more money.

When you get a new answer, ask yourself why again. Keep on doing that until you reach the last answer. In the end, you’ll reach your true purpose.

It might be avoiding stress. It might be having more choices in life. It might be securing a future for your children.

The purpose is different for each of us.

For me, it’s a combination of things. It’s about creating generational wealth so my children and grandchildren (to come) can make the best choices without being restricted. It’s also about securing my own freedom and finally it’s also about wanting to influence the world through my investments.

7. Visualize Your Success 

If running that marathon is your goal for 2021, visualize yourself crossing that finish line.

Hear the cheering, feel the sweat and adrenaline. Notice how you feel. How is it going to change your life? Affect your relationships? Your mood? 

If investing is your goal, see yourself reaching your target. Notice how it feels. Who are you going to be when you get there? Reaching goals changes our inner script. It changes who we are psychologically. 

Visualize it until you actually live it. Taste it. Believe in it. 

8. Face the Monster

Avoidance is also a choice.

If you don’t run, you are voting for lifestyle diseases.

If you don’t invest, you are voting for poverty.

Create a worst-case scenario. What’ll happen if you don’t take action? Visualize that too, and decide that it’s not who you are anymore.

I visualize my own diseased mother who spent her last decades on government subsidies, locked in an apartment, suffering from a bad hip and rheumatism. Being unable to afford a taxi, a meal at a restaurant or any extra help. Being very dependent on her children for support.

I’ll never put my boys in that situation.

That’s not who I am.

Therefore, I invest and take care of my finances.  

9. Get Educated       

If you want to run a marathon, you’ll probably read some blogs and books about the best nutrition, the best running schedule, the best running equipment. 

You’ll want to avoid making beginner mistakes that may result in you getting injured and failing to reach your goal of running the marathon. 

The same with investing.

You need information so that you can be the best investor possible and avoid making silly mistakes that could cause you to lose your money.

Ever considered taking an investing course?

Maybe now is the time. It’s money well spent. 

10. Get Some Running Mates  

Running is more fun if you join a club and find people to run with.

The same goes for investing.

You’ll stick to it if it becomes a social event and if you meet people who will hold you to your new standards.

This is another reason for taking an investing course. This is where you’ll meet your peers.


Where does your journey begin today?

Right here with me.

You begin by reading my e-book.

Then you join my Facebook Group

Don’t forget to read my e-book Free Yourself. You can get it here.


Five Strategies to Make This Winter the Best Thing That Happened to You

Five Strategies to Make This Winter the Best Thing That Happened to You

Last year at this time, there were no family gatherings during the holidays, no parties, no theater, no schools.

I sat alone at home with my kids on Christmas Eve and New Year’s Eve.

At one point I thought:

“I NEVER want to go through this again.”

What did I really mean by that? I wasn’t so sure myself.

We can’t control the progression of the pandemic or the government’s lockdowns (it’s clear we haven’t been able to because now it seems like it’s all happening again).

I decided that next year, my life would look completely different.

But different how?

I had to go through everything detail by detail to find out what worked and what didn’t.

It became a stone-turning project that got me through the winter.

Today – a year later – we are going to go through another round of closed schools and different types of restrictions, but my life actually looks completely different.

Last year we lived in an apartment in Copenhagen. Now we live in a house in Cascais in Portugal.

In my business, I’ve changed the workflow completely, and I’ve multiplied my turnover 10x.

I wouldn’t have made those deep changes if the second lockdown didn’t stir everything.

I can honestly say that my life has been radically changed by the lockdown last year.

To the extent that I almost welcome another round of restrictions (but not really).

But how do you turn these lockdown limitations into a force of good?

In this blog post I will give you five strategies to turn this round of restrictions into one of the best experiences of your life.

1. Accept That Suffering Is a Part of Life

Sometimes we can have childish expectations that life should be fun and easy, a long Instagram-worthy party.

With that attitude, we feel terribly disappointed during a lockdown (and yet another and yet another) because life doesn’t match our slightly spoiled (but maybe subconscious) attitude and wishes.

It helps to accept that life is a mixed bag of experiences. We all have good and bad days. We all go through times of difficulty. There will be sunshine, and there will be rain.

It’s often the difficult periods that move us to change and develop. A difficult period can actually be a great gift if you treat it as one.

When we accept that suffering is an integral part of life, it becomes much easier for us to bear it – and hear the message in it. Accepting suffering as a natural part of life is actually crucial.

2. Be Aware of Your Purpose

Why are we here? How can you contribute?

In the book Man’s Search for Meaning, psychologist Viktor Frankl describes how occasionally, prisoners in concentration camps received cigarettes as payment. The cigarettes could be exchanged for food, which could ensure another 14 days of survival.

He looked in amazement at the prisoners who chose to smoke a cigarette. He knew they had given up and would not live long.

They prioritized a moment of enjoyment over survival. They often died shortly after.

Why does someone give up? Because they can no longer see the point of living life.

Why do they lose the sense that life has a meaning while others retain a sense of purpose – even under the most extreme conditions?

Meaning in life comes from within us and depends on whether we can see the bigger picture and set our sights on a purpose bigger than ourselves.

Meaning can come from love, from a faith, or from an important piece of work to which we contribute.

There is no doubt that there will be great “meaning” to it all if you have a purpose that drives you forward.

It can carry you through difficult times.

3. Choose Your Attitude Carefully

The other day, I read a blog post about a dad’s reaction the moment it dawned on him that his newborn son had Down syndrome.

His wife had just given birth, and the baby was completely silent. The doctors were quiet. For a moment he was afraid the baby was stillborn.

When he went to look at the child, he saw the crooked eyes and knew the answer.

In a split second, he discovered that he could choose between doubt and fear… or love. He could choose to worry how they would cope, how they would pay the medical bills, how the rest of the family would react… or he could choose to indulge in a feeling of love for the child no matter what.

It’s wonderful that we always have a choice, but we forget that we can choose our attitude – even in difficult times with upsets.

You don’t have let the restrictions discourage you. (That’s probably annoying to read if you’re upset about having to work from home.)

But ask yourself if it’s not true that there is a crack where you can see some other feelings peeking through?

Leave an opening so you can find alternative reactions.

4. Build Good Daily Habits

Good daily habits can carry us through a lot.

I remember my rhythm from the first lockdown when I was at home with two small children and had to work my way through it.

In the morning we went to the bakery (that was still possible).

With two young children (they were 3 and 6 years old at the time), that’s an adventure in itself.

Back home, I put a film on so I could work a little. Then we had lunch.

Then a friend’s teenage children came by to look after the children outside for two hours. I worked a little more.

In the afternoon we had a creative project: modeling beeswax, pearler bead crafts, drawing, and so on. Then dinner.

In the evenings while they slept, I worked again.

If you don’t have children, you’ll have some other routines and habits.

Whatever habits you adopt, you need to have at least these three key elements:

  1. Light, fresh air, and exercise. A walk is enough.
  2. Social contact. This can also be a Zoom meeting or a phone call.
  3. Some work or an interest that gives you a sense of meaning.

5. Find a Project That You Care About

There’ll be a lot of things in the near future that you can’t do.

But there is still a lot that you can do.

It’s mostly life outside that is affected. There’s no limit to what you can learn and create in your home.

I would suggest you find a project that you really care about.

What exactly it is doesn’t matter so much.

You may want to learn Italian online.

You may want to read all of Shakespeare’s works.

You may want to learn to knit.

Or it may be that you want to learn to invest.

Of course, I suggest the latter, because my purpose that drives me is to teach people to invest in stocks in a way that allows you to become financially independent.

If investing is the project you choose, I have good news for you.

I’m going to be launching my beta version of my value investing course in English in early January. Let me know if it’s something you are interested in. You can just shoot me an email and tell me.

Don’t forget to download my e-book Free Yourself where you’ll learn to invest as one of the best – super charge yourself through the plateaus. You can download it here.

How to Create Extreme Wealth

How to Create Extreme Wealth

Recently, I had a revelation.

It happened when I overheard the motivational speaker Bob Proctor talk about the three money types.

He divides people into M1, M2 and M3.

He talks about those who make money by giving their time to get money, i.e., those with a paid job.

Those are M1.

Around 96 percent of the population fall into that category. It’s all the people who go to work to get a salary.

It’s the nurse, but it’s also the doctor, the lawyer, and the CEO.

Then he talks about those who have understood the principle of creating assets and who have invested in something. He calls them M2.

If you have started investing in stocks, you fall into M2, and congratulations – you’re part of an exclusive crowd of people who only make up 3 percent of the population, according to Bob Proctor.

But he goes a step further to a group that I hadn’t heard of before. The M3s are the true elite on the money front.

Who are they?

They’re the ones who set up many sources of income. They aren’t content with a salary from a job and stocks and shares.

We all know these types. I have a friend who has a normal, but well-paid job. That doesn’t stop her from starting a business, selling online courses, writing books, say yes to speaking at conferences. She rents out a property. And of course, she also has a few million in stocks and shares.

Do you know someone like that?

It’s like they’re running a program called “Where Else Can I Make Money?”

It dawned on me that I’ve been an advocate of the M2, when in fact I’m driving the small version of the M3 myself – without being aware of it.

Occasionally I get asked why I sell online courses and group coaching when I am financially independent from stock market investments.

I’ve brushed the question off with the thought that I’m doing it because it’s fun and because I want to share my knowledge and help people become financially independent.

Now I can see what I’ve done. I’ve set up several sources of income.

Now that I know that there is such a thing as M3 money types, I think it’s the way forward.

The idea of ​​M3 has shifted my perspectives and boundaries in a way where I can feel that my business and my life are about to accelerate.

I plan to develop as an M3 money type, and I also recommend that you do that.

“But how?” you may ask.

To be honest, you’re not going to jump directly from M1 to M3 by snapping your fingers.

You’ll probably go from M1 to M2 and slowly on to the M3, step by step.

If you are an M1 right now, the logical next step is to buy shares so that you can become an M2.

Becoming an M2 is a huge step and a clear improvement. It’s still my opinion that stocks are the best way to create a passive income. They’re superior to almost any other passive income.

How do you find sources of income other than stocks?

1. Expand Within Your Current Field

First, you need to see if you can come up with new sources of income within your current profession.

I’ll use my own former career as an example. As a journalist, I could have taken on chairing a conference or maybe freelance writing in my free time. If I had written a book, it would have created a passive income, increased my value on the market as I positioned myself as an expert, and it would have most likely also led to other gigs, such as speaking.

2. Brainstorm New Fields

Are there other areas where you can make money?

Sit down and brainstorm and draw a mind map.

What are your special talents? Where are your interests? Do you have any old dreams? What do you love to do? Could there be something there?

There is probably something simple you can do right away without a big business plan.

For example, if you love cars, could there be a hobby and source of income in buying old cars, repairing them, and selling them at a profit?

If you like writing, can you start blogging about an area you love?

If you have a following on one of the social media platforms, could you start monetizing it?

Is there anything you can rent out for a period of time? Your summer home maybe?

For each idea you write down, turn it into a mind map, i.e., you circle the main idea, and then draw lines out to other circles where you write multiple sources of income.

In the beginning, your M3 projects might be small hobby-size projects, but over time you might get a real business idea that can grow into something bigger.

My blog Money and Freedom began just like that.

3. Calculate the Profitability of Your Time

When you get these new ideas on how to make money, evaluate how much time goes into it.

Some ideas are better money machines than others.

For example, if you love knitting and consider selling hand-knit socks at a Christmas market, you have to consider the hourly rate.

Let’s say you can sell them for 15 dollars and they take 15 hours to knit. That amounts to an hourly rate of less than 1 dollar when the yarn is deducted – not a particularly good use of your time. It’s not the socks that will lead to “extreme” prosperity.

4. Sort Your Ideas Into Passive and Active Streams

You also need to divide your ideas into active and passive income.

Active income is when you have to constantly supply your labor, while passive income is something you set up once which can be sold over and over again.

To use the knitting example, the knitted socks is an active income stream because you have to spend time knitting before you can sell a pair of socks.

But if you create an online knitting course, it’s considered passive income because you only have to set it up once and then you can sell the same course over and over again.

It’s important that you set up passive sources of income. These are the ones you need to prioritize.

Your First Step

An obvious place to start would be to buy stocks in public companies if you have not yet started investing.

After all, jumping from a pure M1 to an M2 means that you are moving from 96 percent of the population to the exclusive club of the 3 percenters.

When you get other sources of income set up, it’s important that you do not use all the money on consumption.

Let all (or most of) your new income stream be reinvested in new money machines. Those money machines could obviously be stocks and shares.

A great place to start learning about stocks is by reading my e-book Free Yourself. You can download it here.