“Bureaucracy is giving in to stupidity and ignoring common sense. When you know something is wrong and you don’t challenge it, you have become bureaucratic.
Entrepreneurs don’t act that way.
The reason this is so important is that the root cause of creating a bureaucratic environment is when people are afraid to make mistakes. And when they are afraid to make mistakes, they write more memos, call additional meetings, or ask for meetings to be extended. All of those things are manifestations of people who are afraid to make decisions because they are afraid to make mistakes.
We encourage people to make decisions. Planning is great, analyzing is great. But most of the time when you get 80% of the facts, that’s really all you need to make a decision. To get to the last 20 percent could take forever. Make a decision to get on with it! We want our people to be unafraid of making mistakes. The only time people don’t make mistakes is when they’re asleep. And if you’re wrong, all we ask is that you be willing to step back, admit ‘That’s not working,’ and try path B or C.” (Arthur Blank, Billionaire Home Depot Co-Founder)
Many in the middle class have worked so long and hard on a failed course of action – going to school, getting a job and working hard. We have worked so hard and for so long that we have become – hush – bureaucratic!
I mean bureaucratic in the sense of giving in to stupidity, ignoring common sense, knowing a course of action is wrong and not challenging it.
I am not innocent, but I have decided to stop being bureaucratic. I intend to henceforth ignore stupidity, give in to common sense and challenge any course of action I’m convinced is wrong – and if you don’t mind, I urge you to join me in doing the same.
The table below is from the publicly accessible Google spreadsheet – The Power of $10 – specifically from the worksheet named ‘Summary’. What those numbers point out is the fact that $10 (monthly or annually for example), if used to buy ownership stakes in income producing assets (in this example, assets yielding 8% per annum increasing at 10% per year compounded), would give rise to significant ownership stakes when valued after a long time (20 – 50 years). For example, $10 per year for 20 years gives rise to an ownership stake worth $4,329.38 (Column 2, Row 4) throwing off annual cash payments of $346.38 (Column 2, Row 5). Similarly, $10 monthly for 40 years gives rise to an ownership stake worth $541,056 (Column 4, Row 6) throwing off annual cash payments of $43,284.48 (Column 4, Row 7).
In the 40-year example, the total contribution (based on $10 per year) is $400, but because of the inherent value in (properly managed) ownership stakes, it will give rise to a net worth of $45,088 – imagine that your parents had a plan like that going for you from birth, or you have a similar plan going for your kids, or self! I think that most of us can afford to put $10 away per year (probably monthly and many of us can do even much more than that) to acquire ownership stakes, – what has held us back is the lack of access to quality ownership stake acquisition opportunities (when all you have is $10 or $100 or even $1,000).
I know that many readers have at one time or the other read about the wonderful power of compounding – translating that power into real life practical use by middle class Joes/Janes is another matter altogether. Because, you see, the wealthy elite (who control and/or own many of the mainstream financial institutions, products and services you have easy access to) don’t even want you dwelling too long on this thought – of acquiring ownership stakes. Their first preference would be for you to spend (consume) that $10 (monthly or annually) on something else – eating out, coffee, some cellphone extra feature, movies etc. If you somehow manage to stay focused and within your budget to put that $10 away as an investment in your future (retirement savings for example) or that of your kids (college/university savings for example), they either put you in products like government insured bank deposits (that yield negative real [after inflation] returns) or mutual funds/unit trusts (that skim off 1% – 2% of your savings each year so that in 20 years, you would have barely kept up with inflation). Even if you use ETFs (exchange traded funds) or some other low cost index fund, you will still not get the kind of results in the table below. All things considered, it is generally easier for you to spend $10 than to invest it (even in any of the foregoing sub-optimal vehicles, much less in buying ownership stakes in quality income producing assets), so most of us just spend it.
What if the acquisition of ownership stakes was as easy as purchasing a can of Coke? And if there were enough regular people like you interested, you could then be able to put that same $10 into a pool that buys the building described in this offering memorandum – this is just an example of what is possible, not a specific recommendation. Let me repeat, I am not recommending this building for purchase (or otherwise) – there are many econometric, political and geographical considerations that go into determining a good investment based on set objectives (many of these research services/reports are unaffordable for you and I working alone, but when we pool resources together, they become very affordable – of course, the wealthy elite have access to and use the same reports to get a leg up on everybody else) – but if the pool used 75% debt as proposed in the offering memorandum, the cash return on investment would be in the region of 13% per annum. If you are conservative, and choose to buy for cash and set aside a reserve for contingencies, you can still get a starting cash return higher than 8%. Furthermore, you can mortgage 50% of the building and use the proceeds to buy an (unrelated) business with solid cash flow – this can deliver an additional couple of percentage points of annual cash payout.
But the mainstream financial institutions will never point you in this direction; however, when you put your funds into bank deposits at 2% (or less) per annum, the wealthy elite would then borrow (in very tax-advantaged ways) from the bank at 5.75% to buy the building referred to earlier (or some other similar income producing asset) and achieve the 13% return you see in that memorandum. This is how the middle class gets poorer, while they get richer.
While we (the middle class) use worthless fiat (paper, cash, currency) money, they are focused on ownership of income producing assets.
This is what the MCWB Club seeks to change by making the acquisition of such ownership stakes in income producing assets (commercial buildings, oil/gas wells, businesses, precious metal [e.g. gold, copper, silver] mines and so on) as easy as buying a can of Coke.
I urge you to join the MCWB Club immediately, because as potentially powerful as my $10 may be, if there are not enough of us pooling resources together, that $10 becomes impotent. When I talk about pooling resources together – not on the terms designed for us by the wealthy elite through the mainstream financial institutions, services and products (we wouldn’t get the kind of results below) – but on our own (middle class focused, middle class friendly) terms.
Most of us are currently restricted to earning cash (worthless, fiat money with no inherent value) from our jobs – if we wish to sustain our existing standard of living, and not always be at the mercy of the ownership class (who control all jobs directly or indirectly – whether in the private or public sector) for insufficient, annual cost of living increases, we have to work together – on our own terms. We either all stay in disguised slavery or pool resources to buy our freedom – on our own terms. If you have joined the club, and believe in the cause, spread the word to your colleagues, friends and family members. Our collective financial well being and that of our kids is at stake.
Remember, this does not entail selling of books, seminars, workshops, nor is there any buying or selling of network and/or multi-level marketing products – just your money working on your behalf with strict controls, checks and balances.
Feel free to leave a comment below, and if you have any questions about the MCWB Club, please send an e-mail to email@example.com
|ParameterDefinitions||Fixed Contribution= $10||Original Coupon(Yield) Rate =8% per annum||Coupon (Yield) AnnualCompound IncreaseRate = 10% per annum|
|20 Years||30 Years||40 Years||50 Years|
|Annual ContributionResults – Ownership Stake
|Annual ContributionResults – Annual Cash Payouts||$346.38||$1,217.21||$3,607.04||$9,938.59|
|Monthly ContributionResults – Ownership Stake Value||$51,952.56||$182,581.50||$541,056.00||$1,490,788.50|
|Monthly ContributionResults – AnnualCash Payouts||$4,156.20||$14,606.52||$43,284.48||$119,263.08|