Perspective of Life

What is The Law of Averages in Life?

Introduction:

When you understand the law of averages in life, you’ll realize that it’s possible to be successful at anything you do.

Have you ever done sales but deal with potential customers that didn’t want to buy from you? Or play a sport with friends or strangers, but for some reason, you just can’t make the score? Yeah, it’s definitely a terrible feeling, but you’re not giving up on yourself, right?

Eventually, you’ll have to practice and get better unless you decided you had given up on yourself. If you chose the route to practice and get better, then this is where the law of averages comes into play.

By definition, the law of averages in life is an inaccurate generalization of the law of large numbers, which means that the number of events and the same likelihood of occurrences can change if given enough trials or instances. 

To put it into a much simpler definition, you have a higher chance of changing your outcome if you continue to find the results through trial and error. It’ll take tons of self-discipline and consistency, but eventually, you will see that the outcome that you’re trying to achieve is quite possible.

When it comes to acquiring new skills and learning them, knowing the law of averages has been proven to be quite effective.

Examples for The Law of Averages:

Example 1: Basketball Shots

Let’s say you’re trying to shoot a basketball into a hoop but constantly miss. It’s frustrating, right? After about ten shots, you eventually make one and all of a sudden, it feels good. Finally, your first shot.

You decided that you should continue shooting and practicing, where you’ll eventually develop muscle memory to where you can make even more shots.

And from your many trial and errors of missing hoops, you’re finally making two out of ten shots. Because of your constant failure through trial and error, you’re learning not to miss those shots from practicing.

After about a thousand shots, you’re finally making one out of every two.

I’m sure you’ve heard of the famous Steph Curry from the Golden State Warriors.

Did you know that Steph Curry hasn’t missed a free throw shot during a postseason game in nearly four years?

That’s insane statistics if you really think about it. But what do you think he does every day that many others don’t do? Steph Curry spends hours every day perfecting and mastering his free throws.

Example 2: Sales

You just got hired at a company for a sales position. You’re still a beginner and inexperience.

Whether it’s door-to-door sales or cold-calling potential clients, you just can’t seem to be getting anyone interested.

In the law of averages, if you continue knocking doors or calling clients, you’ll eventually get someone that’s interested.

Even if you get a hundred “no,” you’ll eventually get someone that’s a yes. Your outcome and results will change for the better as you experience more practice from dealing with customers.

Law of Averages: Quotes

Below are some of my favorite law of averages quotes.

This one from Bruce Lee about the law of averages in quite motivational. You just have to put in more effort if you’re not seeing the results that you want. If you’re asking for a better outcome, the outcome is expecting harder work from you.

If I want to be rich, then should I just work at my regular job? No, I have to put in an effort such as creating streamlines of income and experimenting with ways to success. Only YOU can change your outcome.

Here’s another one from an American author.

In this quote by Jim Cathcart, an American author says that you will get results if you attract it simply by working towards your goal(s). Listen to Jim Cathcart! Don’t give up and continue striving for success.

If you want to become a writer, then work towards becoming one. If you want to be a video game streamer, you have the power of the internet.

Questions About The Law of Averages: Quora Questions

Is the law of averages (Quora) an illusion?

the law of averages is no illusion, but it applies only to averages. – Aaron Brown, MBA Finance & Statistics, The University of Chicago Booth School of Business (1982)

Brown stated that it’s only the averages that tend toward their value when it comes to long-term. Let’s say you flip a coin one time, you will end up with either 0% or 100% tails/heads. If you choose to continue flipping the coin, the averages will get closer to 50% (not with every flip) eventually.

Do you find the law of averages consistent of free will?

I’m not sure how the law of averages is inconsistent with the concept of free will. – John DeMarco, artist, author, and scientist of the zen-dao x-gnosis

According to John DeMarco from Quora, an average is a quantity, rating, or the like that correspond to approximates in arithmetic means. They’re usually used as means for determining patterns usually for random occurrences.

One of the examples that DeMarco stated, was if free tuition were all of a sudden available in the US, and students from schools weren’t pressured to enter the working world, then we’re likely seeing the average shift.

One thing to be considering is that an average while having particular meanings with numbers because of their firmness in value, usually becomes an abstract concept when you’re dealing with individuals.

Whatever you’re doing and no matter what it is, at any time, could be data for statistics. At the moment, you’re most likely using an internet device to read this article – you’re a statistic.

Law of Averages: From My Experience

I’ve worked for many sales departments before in the past. I’ve learned a lot about the law of averages at one of my departments where I’ve worked in the past. From my experience, those that continued on aiming for clients no matter how many times they’ve failed, they usually end up being the most successful people.

I’ve seen a salesperson with a lack of experience in sales, yet he continued on calling clients and made the most sales by the end of the month.

We were taught about the law of averages and everyone was motivated. If you want success or see results, don’t be hesitant to chase after it.

Recommended Read:

4 Factors of Motivation: Guide You Must Read

The Mindset of an Entrepreneur

What do Rich People Buy That Others Don’t Know?

The Mindset of an Entrepreneur:

When you have the mindset of an entrepreneur, sacrificing your valuable time and money can be a daunting decision. You have heaps of ideas but not sure about where to start. You have to constantly make decisions. You keep failing but continue trying. You run out of resources but continue scavenging. Your loved ones will constantly tell you to find a real career path, but you’re already extremely positive that you’re not going to retire at the age of 65. You lose your motivation halfway through your journey, yet you search for motivational videos to help you exceed your limits.

Being an entrepreneur doesn’t necessarily mean that you made it. People have different perspectives when it comes to being an entrepreneur. In my perspective, I believe an entrepreneur besides from taking large risks for success is an individual that doesn’t give up in order to achieve their dreams. Every person in this world has their own complication and struggle but what they do to achieve it all depends on them.

The reason why most millionaires are millionaires today is that they kept trying. They battled through their complications to find solutions to their problems. With the knowledge they have, they use their money to make more money!

The Mindset of an Entrepreneur: Utilize Your Resources!

When you’re at the early stages of entrepreneurship prior to discovering that pot of gold, your biggest challenge could most likely be resources. You could run out of funds for your ad campaign(s) for dropshipping or getting leads. You could be working a full-time job with not enough time invested in your project(s). You could be a student that’s extremely studious with hardly any time for yourself. There are many factors and reasons that can prevent you or slow you down from achieving success.

Eventually, your trial and error won’t be the only thing adding up but also your knowledge from learning. Part of being an entrepreneur when you’re low on funds is learning how to utilize your resources. While some projects require spendings, there are many free ways and tutorials out there and that is the beauty of the internet. Your greatest advantage to success is your motivation, time, resources, and consistency.

The Mindset of an Entrepreneur: Motivation and Inspiration!

There will be times where you will struggle and completely stuck. I did. Your life problems can divert your emotions in a different direction. There will be gloomy days where you lack motivation and not sure about what to do with your life. There will be days where you’re hype and continue on. For those lacking motivation, my suggestion is to read up case studies on your projects. You can read their journey to success. You can search up motivational and inspirational videos. Many entrepreneurs came from a difficult life, yet they made it to where they are because of that spark of fire in them. You want to carry that spark from beginning to end.

There was a time in my life where I lack motivation. I would watch this video about Allen Wong, a person around my age. When I’m at my lowest point in life, this video about Allen Wong being able to afford a Lamborghini from being extremely poor inspired me to continue and keep going.

You have to find the spark of your motivation and inspiration and it will do you more good than bad to achieving success. You have to mark down your small goals into achieving the bigger one. I also find writing down my daily results help me to figure out why I’m getting those results. Your motivation will become your best friend for success.

The Mindset of an Entrepreneur: Being Doubt.

The beginning stages of being an entrepreneur can be indigestible. You constantly take in negative comments about this career path that you chose. It becomes a regular thing for you and it’s up to you on whether you adapt to that environment or not. You can take these comments as your motivation to prove everyone wrong or you can take these comments and doubt yourself.

In 2017, I made a nice income from digital marketing thinking that people would believe in me. I was wrong. I was still doubt. I eventually learned to adapt to my environment and take every comment as motivation whether it is good or bad. I learned to be optimistic and confident about my future. I learned it the hard way.

The Mindset of an Entrepreneur: The Loneliest Journey.

You are choosing this path because you want a greater future but this journey can really get lonely and depressing. You’re sacrificing a lot of your time to improve your projects every day of your life and constantly canceling plans with your friends. You are sitting in your room, at the coffee shop, or in your school library planning your next move on the road to success every day. You become the black sheep in your life because you are willing to sacrifice while others are living a normal life.

Don’t overwork yourself. Sometimes, reward yourself and go out with friends because it can be a great impact on your health. Be consistent but balance things out.

The Mindset of an Entrepreneur: The Sacrifice.

Unless you truly enjoy entrepreneurship as a hobby or a sport, being an entrepreneur requires many sacrifices in your life. You sacrifice the time to go out, you sacrifice money for advertising spends, or you sacrifice your time with your family and loved ones. How you choose to balance your life is all up to you but understand that there’s a lot more sacrificing involve at the beginning stages of being an entrepreneur. Sometimes it can lead to negative emotions which is why I highly recommend balancing your life out.

The Mindset of an Entrepreneur: Mission Accomplished!

You finally made it and achieve your goals. You gained tons of knowledge from your project(s). Now what? Your group of circles will change as you advance to different levels of wealth. You have the freedom (if you earned a livable income from your project) to enhance your projects or create new ones with a similar process that helped your original one succeed. When my old boss made his first million, his goal was to be innovative and create different streamlines of income. He wanted to hit $10 million next.

After you succeed on your first project, the bus of opportunities should be waiting for you to get in. Enjoy this long difficult journey and continue on to your success. Your money is your experience points in a game. You will learn many valuable lessons from your journey as you level up as an entrepreneur.

Enjoy the ride!

For some reason, an individual I know attracts many rich people in the world to his life. He doesn’t do anything marvelous nor extraordinary. He’s not famous or celebrity type. His friendship with these billionaires and the rich people gave him the opportunity of spending time with many successful bright-minded people that are extremely high net worth. He’s spent time with eight different billionaires. He’s dated one of the daughters of a billionaire years ago and has gotten a peek into the luxurious lifestyle. My old boss’ boss is the richest person living in Vietnam. I learned about their struggles and their goals.  I learned how they live their lives and struggles were before they were rich. In this article, I will be explaining the levels of wealth and lifestyle.

There are different levels of wealth. The article will be more focused on the levels of wealth, the mindset of an entrepreneur, and rich people in America. These are my first-hand knowledge:

Wealth Level 1 “Creating Streamlines of Income”- $50,000 to $100,000:

At this level, you’re most likely starting off with ideas and slowly building an empire. With $50,000 in your bank, you’re already in the top 15.38% richest people in the world. You’re most likely investing your money into stocks/cryptocurrencies or considering a start-up. You want to create streamlines of income while brainstorming every night in your apartment or your parents’ house. You’re living a decent life but are still trying to survive. You’re probably still working at your 9-5 job with the boss you hate and thinking extremely hard on your plans and future. Your desire and motivation sometimes can be depression and sadness. You fight and battle this battle to achieve your goals.

You have a list of side projects hoping for it to succeed so you can become your own boss one day. You tell yourself every day that you will retire at an early age. You fail and fail consecutively but never quit. You probably hit the bar or reward yourself with something nice to enjoy on a once in a while. You tell yourself that money buys everything while others tell you it doesn’t. You set goals after goals. You meet with other entrepreneurs and learning new ways and using their knowledge to push yourself into the next level of wealth. With such a unique mindset, you realize that aiming to be one of the rich people will be one of loneliest journeys in the world.

Wealth Level 2 – $100,001 to $1,000,000:

Congratulations! You made it past $100,000. Whether it’s your cryptocurrency skyrocketing or your start-up became a success, you have finally made it to level 2. At this range of wealth, you achieve a feeling of near financial freedom. You have more time for yourself so you brainstorm more projects. More money equals more experience. You have more time to focus on your work and hobbies. You can live your life with less stress and burden when you used to live from paycheck to paycheck. You have decent savings. You can travel and learn. Remember the time when you wanted to work full time on your blog, photography, dance, or music? You have the time to work on it now. You have more time, but you are still careful with your money because you’re aiming to achieve level 3.

At this point, you are likely getting to know businessmen and many entrepreneurs. Your networking is starting to expand. Your start-up and business decision can be risky because you can lose money or gain money. You continue to execute plans after plans because you crave for success. You continue to fail at your projects but you learned how to avoid your mistakes.

Wealth Level 3 – $1,000,001 to $10,000,000:

Here you are still learning more ways to increase your net-worth. You are considered to be one of the rich people but to you, you’re not. You’re likely driving a nice car. You have the power to start several franchises. You own a nice house. You can manipulate market capitalization in stocks and cryptocurrencies. You have a little more power now. Other entrepreneurs and successful individuals are starting to become more aware of your success now. Your life is luxurious but you are still careful about how much you are spending because you want to achieve wealth level 4. You can start a new company and hire your own employees. You can open an office and have salespeople cold-call for your business. Life is great at this point but you want to become richer. Your business decisions can either make you money or lose your money.

Wealth Level 4 – $10,000,001 to $30,000,000:

At this level, the majority of your needs are met. Your life is comfortable. You’re almost stress-free (not including business stress because they exist at all levels). You’re living the dream. Your life is at a 4-star/5-star level. Occasionally, you can book a suite anywhere you want for around $2,000. You can sometimes travel the world flying first class. You have a great looking house, you can afford any healthcare you desire, and you’re not likely to deal with any emergency financial situation. You are not “wealthy” in a way that your net-worth doesn’t matter. You will still have to be reasonable and careful with your business decisions. The banking world and reserves still don’t classify you as ‘extremely high net worth.’

Wealth Level 5 – $30,000,001 to $100,000,000:

At this point, your network of successful people is completely different than when you had your first million dollars. You play with the bigger people; the big boys. You can fly privately. You can partially own a jet from companies like “Net Jets” or whichever it is that you’re content with. You’re traveling the world while constantly staying at 5-star hotels. You own multiple homes. Your vacation can be whatever you desire. You can travel to the richest city and celebrate Christmas for a week. You can go to Monaco for the Grand Prix. You can travel to Canne for the film festival where rent per night in these places can go for about $5,000 minimum per night.

Because of the success of your company, you have interests in other companies. You think about buying out companies or selling the ones you’re not content with. You socialize with political figures and leaders. You are a highly well-respected individual in almost any community. In Beverly Hills, you are just a casual minor player. You might not even get a reservation at the city’s hottest restaurant unless you throw around your weight. You have any selection of cars to choose from in the market for your next vehicle purchase. You have private personal assistants that are beginning to have ‘people’ that others have to speak to to get to you. You can travel anywhere in different styles. You can purchase pretty much anything that ordinary people think of it as ‘rich people stuff.’

Wealth Level 6 “The Wealth Beyond Wallstreet” – $100,000,001 to $1,000,000,000:

It sure is a wide range, but life doesn’t change much when you go from being worth $100 million to $900 million. At this point in your life, you’re likely to have your own private jet. You probably have multiple residences with your own selected staff and even nice cars at each of them. If you have an ownership or control over a well-known business that most of the public has heard of, you can socialize with celebrities or politicians. You might not get an invitation to all the parties, but you can basically go almost anywhere with your connections to powerful ‘people’ and staff. Your surroundings now are full of ‘yes men.’

Your ability to purchase valuable possessions becomes an art. One of your vacations could be a five-bedroom house in an expensive city, but that’s not truly impressive. Do you possess a mini private island? Your billionaire friend owns a nicer one. You just had breakfast with several political figures? Cool. But your billionaire friend just ate breakfast with the president. Do you have a Lamborghini? Your billionaire friend thinks their handling sucks and has a one-and-only-car in the world. You will meet many people, but it will be tough for you to emotionally connect. Friends and family who love you for who you are have become rare at this level of wealth. They exist but it’s difficult to know which person truly cares.

Wealth Level 7 – more than $1,000,000,000:

I’m not going to add a $10,000,000,000+ level because they live a head-of-state life. But when you’re at $1,000,000,000 dollars or more, your life completely changes. You can purchase anything for your desire in broad terms. You can buy influence. Influence for your brand, for a political party, or for anything you would want to bring attention and awareness to. You can buy time. You will never have to wait for anything and that includes traveling, You don’t wait for your plane because your plane waits for you. You will get to experience almost anything. If you dream of it, then you can have it. You want to shoot basketballs with famous athletes, then feel free. Your money can impact the world or changes a person’s life. You can cure a disease with the fundings you’ve provided. You will become well-respected from almost every person.

Your Perspective

Your perspective of money is different at this level. One of the richest people in the world makes $400 million per year. If you compare it to a person that makes $40,000 a year, then that’s 10,000 times more. A new Lamborgini for the successful businessman from his perspective to an ordinary working person is $23.50 when the ordinary person views it at $235,000. First class ticket internationally? The $10,000 ticket becomes $1 to the rich man’s view. A $10,000,000 piece of rare art becomes $1,000. There is nothing you can’t buy except love and time. 

You made it here. You are considered one of the rich people on this planet. What do you do next?

The perspective in the view of money has been unique in my eyes since I was a kid.  From learning about rich people’s experience, it’s almost impossible to have a regular emotional relationship at this level in wealth.

My next article will be explaining in depth about what billionaires buy. This will be an in-depth article about their access, influence, time, experiences, impact, and respect. Subscribe to my blog to get notified on my next article. I hope that this article helped you see money in a way that most people cannot. You can also contact me if you have any questions.

Comment your view on money and opinions below.