I have warned many top leaders over the years that they must always save first and have at least US$100,000 to US$500,000 (For the super stars, US$500,000 to US$1 million) before they start to buy the toys they like. MLM is like all other traditional businesses. It will not be Christmas everyday.
My downline in India made about US$180,000 for his profit sharing check in 2004 and the next day I wrote to him and instructed that all this money must be saved and not spend on toys. Luckily he listens. He will do the same for his next profit sharing check. I am also asking him to save 50% of his bonus checks every month. Unfortunately, many leaders do not listen and are suffering today especially many of my friends in the Philippines.
Grace, my wife and I did exactly this when we first started in our MLM business and we are still doing the same. Today we are worth millions of dollars and have at least US$1 to 2 million cash in the bank at all times and do not owe a single cent to any bank. Everything we have, we buy cash.
Recently 2 pieces of properties came up that were very cheap and because we have the cash we were able to buy them immediately whereas the other parties also interested in those properties have to wait for their loans. My neighbor is one of them. She lost a condominium to me in the same apartment where we are staying and she could not sleep for a few weeks. You know why? I bought it for less then half the price we paid for our condominiums. Up to today she always joke that I stole the property from her. It is good to have money in the bank so that we can buy properties we do not need. Luckily I did not spend all my money on toys.
I divide my money into 2 kinds. My hard earned money and play money. The money I make from my MLM business is my hard earn money. This money is for our monthly expenses and buying small things we do not categorize as toys. We keep and invest the rest. I keep most my money in the bank (different foreign currencies) or buy real estate and gold. I do not need risky investments or expect high returns. I do not touch the stock market and will advise all of you against it. It will confuse your mind and most end up not as investors but gamblers.
Every time we buy toys, this will be from our play money. These are money we make from our investment we invested with hard earned money. It is well know in Taiwan that when we buy a new car or something more expensive, it is because Grace and I have sold something and made some play money. Over the last 18 years the money we made from our investments is probably as much as the money we made from our bonuses.
To conclude, I would like to ask leaders who just made some money, have no savings and have bought toys with borrowed money. What are you trying to do? MLM is a business. Please behave like a businessperson.