Part 1 - Thinking : How to change your financial mindset
The Job Delusion Book tells the story of how regular guy Kevin H. Boyd, discovered the secrets of the millionaire mindset to escape his day job and become Financially Free.
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Kevin H. Boyd:
Midlife Entrepreneurs Podcast Number 6.
Kevin H. Boyd: (00:04)
Hello fellow entrepreneurs and mindset hackers. Uh, this is Kevin Boyd, business coach, entrepreneur, and all around psychology nerd. In this season of the podcast, I want to share with you my 2012 book, the job delusion, where I talk about my own journey of discovering how the wealthy think and then using that knowledge to free myself from the delusion of having a day job and finally becoming financially free. Today’s show is brought to you by audible. Audible is offering you, dear listener, a free audiobook with a 30-day trial membership. Just go to audible trial.com forward slash midlife and browse through their vast selection of audio programs. Download a free title and start listening. It’s that easy. So go to audible trial.com forward slash midlife to get started listening today, the job delusion, how to start thinking your way to financial freedom, written and narrated by business coach Kevin H. Boyd.
Kevin H. Boyd: (01:29)
So, why am I writing yet another book about how to get rich? There are hundreds of those evangelical get rich quick books on the best seller’s list of Amazon and the New York Times. So why does the world need another book on the subject? Whenever I read one of those, here’s how I made it. Big biographies by some Smug Self made millionaire. I was usually there for feelings of envy and inadequacy that I would never get rich quick or even own a Porsche. Those get rich quick books always left me with the same nagging question. How does a guy like me with all my limited resources and even worse, my limiting beliefs escaped my day job and become financially free? That powerful Dale was like having my foot on the brake throughout my life and was the excuse I used to avoid taking any action to change my life for the better, but eventually I realised that that doubting voice was just a limiting belief.
Kevin H. Boyd: (02:27)
Something that had been subtly programmed into me throughout my entire life to release my foot from my break, I was going to need to understand why I limited myself with these thoughts. Where had I first heard these limiting beliefs? My earliest memories of handling money was when I was about 10 years old. Every week my mum gave me 30 pence pocket money. I would excitedly and say each shiny 10 pens piece into a plastic sepia coloured transparent piggy bank that the local bank had given my parents when first opened their current account and each week those sepia tinged, 10 pence coins would grow into a treasure chest of potential that I just couldn’t wait to spend. I feel that that early lust to spend the money I had saved set my patterns for the rest of my financial life. The pattern of thought I embedded in early childhood was get just enough money to buy what I want and I’d spend it immediately for instant gratification.
Kevin H. Boyd: (03:30)
In our culture. We call this saving, but it is in fact really just a form of delayed consumerism. We save and then we spend it. There was no investing going on then. Once the money was spent are usually experienced, buyer’s regret, the feeling of loss and shame at no longer having the potentials of growing my small hill of coins into a mountain of wealth. I had not learned to be a financial mountaineer. Instead, all I had learned was how to stay at base camp, wondering how to get out of the tent, a good education as a way to prosperity, isn’t it? When I left school in 1981 at the age of 16 with just five O’ Grade exam passes to my name. I was told by my parents that I had to get a good job, even though it was quite evident that academia and I did not get on, but my parents believed in education being the cornerstone of a better life as it had helped them become socially mobile.
Kevin H. Boyd: (04:29)
Moving from working class to middle class. So I was sent off to college for three years, funded by a grant from the government to study the newly emerging world of it, information technology. But as at schools, I assume pretty board at college with the dry teachings about business data processing and drawing flowcharts. So in my spare time, I started to write video games for the newly emerging home computer market and during the early 1980s I had around a dozen or so games published in UK computer magazines. It is amazing for me to think today that back in the 1980s people were willing to type in hundreds of lines of computer code just to play one of my very basic eight bit games. I was probably the only student in college to end his three years of study with more money in the bank than when I started, but this early entrepreneurial venture soon slipped away as no one at college had taught me how to grow my early success into a business.
Kevin H. Boyd: (05:34)
My first job, once I graduated from college in 1984 I had to become an economic migrant and move 700 miles from my hometown in Scotland down to England as the UK was now in the middle of one of his numerous economic recessions. It was an early lesson in the brutality of the exchanging your time for money model as it meant. I had to physically leave my friends and family to move to another part of the country just to make a living.
Kevin H. Boyd: (06:05)
After three years of working in a job, I was ready to quit. I was exhausted, working long hours and weekends just to make my boss richer and he didn’t even pay me overtime. So in 1988, at the age of 22 I quit my job, sold everything I owned and went off backpacking around the world in search of a better way to live.
Kevin H. Boyd: (06:28)
There is an old saying that goes wherever you go, you take the weather with you. Three years after I set off on my travels, I sat on Bondai beach in Sydney, Australia watching the surfers ride on top of the waves and thought, I’m in paradise. I should feel happy now, but I didn’t. Instead I felt that even though it had been great fun backpacking around the world, doing the odd temp job here and there to fund my travels, what was now missing from my life was a sense of purpose of being useful, of having a proper career again!
Kevin H. Boyd: (07:02)
Back to the day job. In early 1991 just as Tim Berners Lee was hooking up his first worldwide web page to the Internet. I returned to England to get back on my career ladder in the world of information technology, but this time I was going to be much smarter about it. This time I would be my own boss, so I became a freelancer or self employed, which turn out to be even more work than having a job, as now, I had the extra burden of being the marketing department, Accounts Department and personnel department as well as doing the actual job as the years tick by. I found that because I was just doing my job to have enough money to live on, I would take every opportunity to avoid working and instead just take the profit from each contract and live on it until I was broke again and then desperately search around for another contract just to pay the bills and this delusion that a job was the only way to get through life continue for another 15 years until I reached the age of 41 in 2006 the straw that broke the camel’s back. In 2006 I was working for a particularly demanding client who neither understood the discipline of software development, not cared how much extra work he was creating for me.
Kevin H. Boyd: (08:25)
Every time he changed his mind, I was complaining to a friend about how little money I was making from this job. When she told me about seminars, she had recently attended that had shown her how she could create passive income in her life by buying rental properties. She convinced me to check it out as it was free and there was even a free lunch. So I went along with a mindset of knowing better and sure in my belief that they wouldn’t persuade me invest in property. Oh No. I was smarter than that. As I sat there in the hotel conference hall at my local airport, I had a revelation that I was missing a great opportunity in my life. I had always believed that the increased value of my own home was just a number that means nothing until the day I sold it. But the Speaker pointed out by could in fact take nearly all of this extra value, the equity, which was the money frozen in the value of my own home and leverage it out by our mortgage.
Kevin H. Boyd: (09:30)
Then with this release money, I can buy myself even more property that would provide an income for me for the rest of my life. So began my journey towards financial freedom. I started reading the classic texts on becoming wealthy. I attended overhyped workshops on how to become a millionaire overnight, but some of the world’s most famous wealth gurus like Antony Robbins, T. Harv Eker, and Robert Kiyosaki, who jet around the world selling dreams to dreamers, for hundreds and sometimes thousands of pounds. Even though the Evangelical Wealth Gurus took far more of my money than I would have liked what they taught me, started to slowly get past my old limiting beliefs. And I could see there was another way to create money in my life that didn’t involve just exchanging my time for money for the rest of my life. So I wrote this book to remind myself of what I have learnt, and most of all, dear reader, to help you to wake up to the job delusion of exchanging your time for money for the rest of your life and help you discover there are much smarter way to spend your precious life energy than just having a job.
Kevin H. Boyd: (10:41)
So let’s begin by looking at how we think.
Kevin H. Boyd: (10:46)
Today’s show is brought to you by Audible. Audible is offering you dear listener a free audiobook with a 30 day free membership? Just go to audible, trial.com forward slash midlife and browse the vast selection of audio programs they have. Download a title for free and start listening. It’s that easy. So go to audible trial.com forward slash upward spiral coaching to get started today. Back when I was a youngster in the 20th century, I worked in the early tech industry which required me to read huge thousand page computer manuals and I found it relatively easy to make sense of them. But today in the 21st century, I just don’t have time to sit down and read and I’ll be honest, I feel my brain just doesn’t enjoy reading pages and pages of texts anymore, but that has been transformed by using Audible because now I can listen to the longest and most complex books as I go from my evening walk around the park or even when I’m cooking as an example of that I’m currently listening to Jordan B. Peterson’s 30 hour epic maps of meaning. There’s no way I would read such a long and complicated book, but with audible I can dip in and out whenever I have a spare few minutes of downtime. I’m learning so much every day just by using audio books. So to download your free audio book today, go to audible trial.com forward slash midlife again, that’s audible, trial.com forward slash midlife and you can get your free audio book today.
Kevin H. Boyd: (12:25)
Chapter one the job delusion. A delusion is a belief held with strong conviction despite superior evidence. The delusion that was passed down to me by my family was one, study hard at school and get good grades and then you’ll get to go to university. Two. If you study hard at university and get the best degree you can, then you can enter a good career. Three, if you weren’t really hard, your boss will promote you right up the corporate ladder, increasing your salary and pension along the way for if you keep doing that for say 45 years. When you retire at 65 you will finally have enough money to live on and be free to do everything you denied yourself from doing while you’re working so hard to pay the bills and provide for your family. So what is wrong with that? After all, it worked for my parents.
Kevin H. Boyd: (13:23)
To understand why it worked for my parents and is not going to work for me we need to take a brief history of western capitalism. I was born in 1965 and so my parents lived through a unique period in our western economy. They were the generation that grew up through the Second World War and gave birth to the baby boomers. It was western capitalism golden era and the people of Western Europe and North America experience and unprecedented increase in their standard of living many times that of their parents. After 1945 a new social contract was agreed between the workers and the political classes. This contract essentially said that the government will look after them throughout their lives if they could not find a job or grew sick or old then the government would be there to help. When I was going through my formative education in the 1970s and eighties and I felt no need to learn about creating wealth for myself and neither did the education system feel I needed to know either as the assumption was there would always be a well paid job available to me and if not, then the government would look after me until there was, what I was not aware of was that as I lived through the last two decades of the 20th century, the governments and the corporations of the West gave away nearly all our manufacturing to Asia and South America so that these corporations could become even wealthier. These newly emerging industrial nations ended up with so much money, they started to lend it back to us or very low rates. Credit became so cheap in the West that this discouraged most of us from saving our money and instead we spent it on all those cheaply manufactured goods that were flooding into our countries. And when we run out of our own money, we borrowed even more of it from our ever so responsible banking system!
Kevin H. Boyd: (15:16)
They encouraged us to borrow many times our income on credit cards, loans and mortgages. Then in 2008 the system finally collapsed under the weight of all that debt. The banks went bust and we in the West woke up to the fact that the party was over. The social contract could not be fulfilled anymore. The government had no money left to pay for all the goodies they had promises. Every time in an election came around. In fact, they really needed us to give them even more of our money to pay off the debts that they had run up over a trillion pounds in the UK alone. The Western governments also told us that we now needed to produce small export more and be more entrepreneurial. We needed to grow our way out of this recession, so how was I going to generate more income in my life?
Kevin H. Boyd: (16:06)
Unfortunately, the British education system had not taught me anything about how to build a business or even how to invest my money so that my money work harder for me and for the country like the rest of the working and middle classes. I had just spent everything I ever owned and as soon as I got a pay rise, I would go out and buy a bigger house, a bigger car, and ultimately a bigger debt. I realised that when the bank offered me credit, in fact they were really offering me debt and a credit card is actually a debt card, own assets, not liabilities. I now wanted really practical tips on how to become wealthy. So I headed over to Amazon co UK and search for books about wealth creation and found 7,717 hard to believe so much had been written about the subject and yet so few of us knew much about it.
Kevin H. Boyd: (17:01)
So I narrowed my search down to just personal finance and then down to just investing, which resulted in just 88 books. As I scroll through the list, an interesting title caught my eye. Rich Dad, Poor Dad by Robert Kiyosaki. Kiyosaki makes a fundamental point that an asset is something that brings money to you and a liability is something that takes money from you. And for most of us, even our own homes take money from us using the form of a mortgage council, tax, insurance maintenance. The same is true of our other favourite big purchase in life. Our cars, the acquiring of assets that pay you money every day for the rest of your life, even when you’re asleep. It was one of the Great I had reading rich Dad, poor dad. As Kiyosaki explains, it is one of the cornerstones to becoming financially free job just over broke.
Kevin H. Boyd: (18:01)
Kiyosaki also argues that having a job puts you at a great disadvantage as you are lulled into a false sense of security that you will always be able to exchange your time for money and the amount you get will always be just enough to make your life work. But in practice, most people end up spending more than they earn and start to run up more and more personal debt on credit cards and remortgaging their homes. Not to leverage the money released to buy more property, but to spend it on more consumer goods. The global recession of 2008 taught us all that even the most secure professional job can disappear overnight and your own home can be taken away from you within a few months of missing just one mortgage payment. So is having a job really the safe option?
Kevin H. Boyd: (18:48)
In Kiyosaki’s next book, The Cashflow Quadrant, he breaks down the key ways that most of us make our money into four quadrants.
Kevin H. Boyd: (18:58)
Most of us spend our lives on the left side of the quadrant by having a job or being self employed. I had spent 15 years being self employed and when I read Kiyosaki’s, delusion busting idea that being self employed is just the same as having a job except now you also get the extra headaches of running your company too, basically you own the job. By the end of the day it’s still a job. I realized I had not been any smarter than someone with a regular job. I too had the job delusion.
Kevin H. Boyd: (19:32)
The right side of the quadrant is where the wealthy spend their time either owning a business or investments that generate money even when they are not there. In other words, passive income. Now, which quadrant you feel most comfortable in? Depends on your core values created in you by your parents and teachers and friends.
Kevin H. Boyd: (19:54)
I came from a working class background so I had been programmed to have a job for the rest of my life. The thought of running my own business or investing money in assets so was quite an alien concept. Working on the right side of the quadrant is also a lot more tax efficient as when you have a job, your attacks first and then you get to spend what is left, but when you own a business, you spend first and then get tax on what’s left.
Kevin H. Boyd: (20:23)
Your net worth. Kiyosaki goes on to define wealth, not just in money terms, but in how many days you could live without a job and still maintain your standard of living. It brings home the fundamental point that is not how much money you earn each month, but how much of it you keep. I calculated how long I could survive without working and was shocked to see that after only three months I would be broke and soon be homeless due to being unable to pay my mortgage on my biggest liability, my own home, I was self employed, so if I got sick and could not work, I would be in big trouble in just three months. I couldn’t carry on living like that, with no safety net. It was time to change how I made money and more importantly, how my money worked for me.
Kevin H. Boyd: (21:13)
Think like the rich. After reading both of Kiyosaki’s books, I was now getting much clearer and what I had to do to have wealth, but the real key to my future success was how I needed to be. If I wanted to be rich, I had to start thinking like someone who had money, not like everyone else around me who are just as stuck in the exchanging their time for money delusion, as I was, but I had to be honest with myself as my mind was full of negative thoughts about how I could ever achieve any of this. I had been trained my whole life to just have a job. It was clear to me that the first thing I needed to do was change the way I thought about myself and wealth.
Kevin H. Boyd: (22:04)
If you need help changing the way you think and behave around your own wealth mindset, then get in touch with upwardspiral.uk.com and book a free consultation with me to see how we can work together to free you from your own job delusion, once again, thats upward spiral.uk.com and I look forward to hearing from you.
Kevin H. Boyd: (22:30)
Kevin H. Boyd: (22:31)
Thank you for listening to this episode of the Midlife Entrepreneurs podcast. If you enjoyed this episode, then please do subscribe to my podcast and leave a review as that helps other people discover the podcast. That also helps me to keep going and doing this work. So until next time, keep changing your thinking, changing your business and changing lives.