Awesome formula

Hi guys,

Just wanted to share a simple but powerful formula I learnt awhile ago. Maybe someone else might like it too.


Its a formula I learnt awhile back when I had some lessons with Anthony Robins.

If someone wants to work out why their level of success is what it is today (whether its amazing, good, decent or poor), this is a great formula I believe:

CM * IS * AT = CEP

Current Mindset * Investment Sophistication * Action Taken = Current Economic Position

If someone wants to change their CEP, then they should look to improve the 3 variables. If CM and IS is strong but AT is weak, it will affect their CEP.

The weaker the CM or IS but strong AT, again the CEP will be different. :D best scenario is to determine which one or two of the variables someone lacks in and improve it so all 3 are as strong as possible.

Cheers

Leo
 
As an engineer I feel I have to point out that this formula is incorrect because the units on both sides don't balance! :D

Seriously though, mindsets seem to be very important to most people and I guess to me they are to an extend as well. But I personally would not get much out of someone like Anthony Robbins that's all about building enthusiasm with very little substance behind it.
I'm a very rational person, so I try to work out whether me doing something makes sense for me or not and property investing came up trumps for me.
While I definitely enjoy property investing, I don't have that same burning desire in me that you seem to have.
I'm glad all this inspirational stuff seems to work for you (tell me if I'm overreaching), but it's not necessarily the right thing for everyone. :)
 
As an engineer I feel I have to point out that this formula is incorrect because the units on both sides don't balance! :D

Seriously though, mindsets seem to be very important to most people and I guess to me they are to an extend as well. But I personally would not get much out of someone like Anthony Robbins that's all about building enthusiasm with very little substance behind it.
I'm a very rational person, so I try to work out whether me doing something makes sense for me or not and property investing came up trumps for me.
While I definitely enjoy property investing, I don't have that same burning desire in me that you seem to have.
I'm glad all this inspirational stuff seems to work for you (tell me if I'm overreaching), but it's not necessarily the right thing for everyone. :)

Hey Spludgey,

I understand and respect your opinion mate. :) I do think however that a lot of people don't really understand what AR does to be honest, and just think that's he's a 'motivator'. But this is only my opinion. Personally, I have gotten immense value from some of his insights but what works for 1 may not for another I agree with you :D

Cheers mate

leo
 
to me success is defined so differently by people , no formula could possibly cover or even generalise

some people say Effort x mindset=sucess

some people say work smart not hard

which is contradictory to the first formula

some people have poor mindest but a very sucessful, some have great mindset but have no sucess

I think formulas are dangerous in these situations
 
As an accountant i like to use formulas that i can calculate in numeric terms.

Maybe i need to apply a score out of 100 to each item.

I am not big on mindset and motivational stuff. I put my focus into setting a long term goal and then rationalising everything in your life into how it applies to achieving that goal. Helps me to maintain focus while avoiding motivational speakers. But as Leo said - what works for some might not for others.
 
If someone wants to change their CEP, then they should look to improve the 3 variables. If CM and IS is strong but AT is weak, it will affect their CEP.
I 100% agree with this. I have stron CM and IS but have not ACTED on what I know I need to do. This has absolutely affected my CEP.

That's ok, because the good people of Somersoft have inspired me to start TAKING ACTION, so I am lining up a surveyor and selecting a building company at the moment. I'm just refinacing to line up the funds to do the development. All approved so it's full steam ahead. I forgot how much fund the ACTION part of investing is! :)

Great post Leo.
 
Hey TMNT and MRO,

I can understand and appreciate your viewpoints.

I guess I personally have found value in it but doesn't mean everyone will.

Cheers guys

Leo
 
I 100% agree with this. I have stron CM and IS but have not ACTED on what I know I need to do. This has absolutely affected my CEP.

That's ok, because the good people of Somersoft have inspired me to start TAKING ACTION, so I am lining up a surveyor and selecting a building company at the moment. I'm just refinacing to line up the funds to do the development. All approved so it's full steam ahead. I forgot how much fund the ACTION part of investing is! :)

Great post Leo.

Hey PG,

Sounds like you have a development on the horizon?? do tell!! :D
 
Hey PG,
Sounds like you have a development on the horizon?? do tell!! :D
Early days, but finance is approved so it is moving ahead. I will try to get a thread started over the weekend or next week. But basically, it will be up to $350,000 to modify an existing dwelling, prepare a site and build a townhouse behind. End values are around $450,000 for the retained dwelling and $550,000 for the new townhouse. $350,000 might sound high but there are a lot of reasons behind that number which I will try to explain in my thread. I am really doing it for the cashflow though, which should be $550 p/w on the new townhouse :D
 
to me success is defined so differently by people , no formula could possibly cover or even generalise

some people say Effort x mindset=sucess

some people say work smart not hard

which is contradictory to the first formula

some people have poor mindest but a very sucessful, some have great mindset but have no sucess

I think formulas are dangerous in these situations

Agreed - there is a lot of wisdom in this! :eek::p
 
To be honest, there's more than one formula for success

Re: Engineers :rolleyes:

A Short Story for Engineers


You don't have to be an engineer to appreciate this story.

A toothpaste factory had a problem: they sometimes shipped empty boxes, without the tube inside. This was due to the way the production line was set up, and people with experience in designing production lines will tell you how difficult it is to have everything happen with timings so precise that every single unit coming out of it is perfect 100% of the time. Small variations in the environment (which can't be controlled in a cost-effective fashion) mean you must have quality assurance checks smartly distributed across the line so that customers all the way down to the supermarket don't get pissed off and buy another product instead.

Understanding how important that was, the CEO of the toothpaste factory got the top people in the company together and they decided to start a new project, in which they would hire an external engineering company to solve their empty boxes problem, as their engineering department was already too stretched to take on any extra effort.

The project followed the usual process: budget and project sponsor allocated, RFP, third-parties selected, and six months (and $8 million) later they had a fantastic solution, on time, on budget, high quality and everyone in the project had a great time.

They solved the problem by using high-tech precision scales that would sound a bell and flash lights whenever a toothpaste box weighed less than it should. The line would stop; someone would walk over and yank the defective box off of it, pressing another button when done to re-start the line.

A while later, the CEO decides to have a look at the Return on Investment of the project: amazing results! No empty boxes ever shipped out of the factory after the scales were put in place. Very few customer complaints and they were gaining market share.
That's some money well spent he said, before looking closely at the other statistics in the report.

It turns out, the number of defects picked up by the scales was 0 after three weeks of production use. It should have picked up at least a dozen a day, so maybe there was something wrong with the report. He requested an inquiry, and after some investigation, the engineers come back saying the report was actually correct. The scales really weren't picking up any defects, because all boxes that got to that point in the conveyor belt were good.

Puzzled, the CEO traveled down to the factory, and walked up to the part of the line where the precision scales were installed.
A few feet before the scale, there was a cheap desk fan, blowing the empty boxes out of the belt and into a bin.

Oh, that, says one of the workers, one of the guys put it there 'cause he was tired of walking over every time the bell
rang."

:D;)
 
Yeah i agree with you guys re formula. I think what works for 1 may not for others.

I do however think that the formula i mentioned above is actually very wholistic, versatile and actually covers a whole massive range of issues. Personally, i see the three variables of CM and IS and AT to be so spot on in terms of what needs to be looked at and it has guided me very well over the years. But its just my opinion.

Cheers

Leo
 
Cheers Leo, I love Tony.

Yeah for sure the formula will have some flaws. If you look deeply at a lot of formula's you may find them. His formula is meant to be abstract and not overly analyzed. Or it may have a story behind it. Tony has a new book on Wealth coming out. I would strongly recommend it or downloading the Audio book through Torrents.

Engineers, Accountants, yeah I agree with what your saying. For that reason check out the (or older) Audio books, their great while driving or flying. Just be abstract, he is American after all :)

My favorite formula's might be the triangle of
Focus - Physiology - Language
or 6 Core Human Needs
 
My favorite formula's might be the triangle of
Focus - Physiology - Language

Hi Adrian,

With regards to focus, physiology and language, I couldn't agree with you more.

I haven't even gotten started on physiology....if I got into that.. im sure it wouldn't take long before others put me in the 'loony' category' haha. I get that a lot of people just want to buy IPs and build wealth. I get that. Its fine for ppl who have modest goals. Once you get into really the heavy dream stuff, its gonna take a lot more that just 'wanting' to build wealth'. This is my opinion. I respect others opinions too.

But trust me, I know exactly what your referring to re physiology. Its a very sophisticated and highly effective approach and its actually the 'bones' behind mindset. I think you and I could have very interesting conversations re that topic :D

Cheers

leo
 
Last edited:
Cheers Leo. (I just happened to comment on something else you posted too I think)

Gents, Anthony Robbins has released this book/audio series on Mastering Money. I was on a 800km drive and listening to a bit of it as you do in Australia right :) Couldn't really get far into it. To simply however a fantastic book for Americans :D and those with little background/study. BUT Wondering if any Investors or anyone at all actually has had experience with his Mastering Money or Business Mastery stuff.

Secondly for anyone involved in Mentoring/Coaching/Advising this Anthony Robbins series is available so freely it got me thinking. I feel it's in their best interest to get their product as far and wide as possible for free as later they will generate money through Finance / Business / Investing Coaching instead. I found this interesting and have seen a few people now releasing books for free (just pay for shipping.. perhaps). Your thoughts.
 
I would recommend less time developing formulas expressing your current situation, and more time actually improving it.
 
Anthony Robbins has released this book/audio series on Mastering Money. I was on a 800km drive and listening to a bit of it as you do in Australia right :) Couldn't really get far into it.

It's worth persevering (20+ hours is a big ask, I know). I found it to be a goldmine and not nearly as US-centric as it seems in the early stages.
 
Back
Top