The Secret to True Contentment: Work
I know everybody thinks that life is about getting to a place where you don’t have to work, where you can just take it easy and drink cocktails while sitting by the pool but I can tell you from personal experience, that is a road with few rewards. Work—having a job, a business, or personal objectives you are actively striving for—is something you will never want to be without. Work is not just for paying the bills, it is essential to having a fulfilling life.
Studies have shown that people are four times more likely to have a sense of contentment from work than they do from watching TV. That’s a pretty impressive statistic and yet, the majority of people (especially in the good ole U.S. of A.) spend huge amounts of time watching the tube. So why do we choose to watch TV rather than get to work on things that would further our personal and professional goals as well as provide us with more contentment?
It’s because work is hard. Worthwhile and challenging tasks usually take the proverbial blood, sweat, and tears and sometimes end up being a constant uphill struggle. Instinctively, we want to avoid what is difficult and TV can fill our time without taxing our brains or body. But it is the difficult work, the complicated and challenging goals we face in our day job or the effort we put into building a dream, that makes what we accomplish so satisfying. Watching TV, on the other hand, accomplishes little if anything and is not, at the end of the day, very fulfilling.
You probably enjoy games of some sort—tennis, golf, chess, sodoku, etc.—and you play because of the challenge and the way you get lost in it, looking forward to seeing what you can accomplish or motivated by that potential win. Likewise, in your work, if you take time to set difficult and complex goals and totally throw yourself into reaching those objectives, you will find that your contentment and happiness will soar, buoyed by your progress and that potential, if not actualized, win.
Bottom line: set up some very tough challenges for yourself, pushing yourself to do more complex and novel things (whether you’re a millionaire now or still working on it!). It’s the work that will lead you to a richer and more satisfying life and make the down time by the pool much more enjoyable.
It Isn’t Always About the Money
I talk a lot about creating wealth on this blog because, honestly, making better money is a major goal for many people. However, not everyone wants to be wealthy, not monetarily at least. Some people have a different currency they want to invest and see grow.
Take, for instance, Daddy Bruce Randolph, a philanthropist and restaurant owner who, at the age of 60, after many years of hard times and failed businesses, scraped together enough money to open a BBQ joint in Denver. A year after he opened, not that much better off financially, he started serving free Thanksgiving dinners to the down and out in his community, a tradition that would last almost 40 years. He would also give away what he could to help the less fortunate on Christmas, Easter, and even his own birthday. Every year his generous events would get bigger and harder to finance but he’d still keep doing it. It gained him admirers all over the country, many of whom jumped in to keep the charitable events going as they grew well beyond his means. Because of his generosity, he had to live modestly but still, he was happy.
When asked why he gave so generously, Daddy Bruce said, “You can’t beat love. Nothin’ beats love. If you give one thing, you get three things back.” He was, in the truest sense of the phrase, a very successful investor. He invested in what he believed in most and gained the love and appreciation of thousands of grateful Denver citizens as well as the admiration of people from all across the country. Not that he was after the admiration, I’m sure, but if he was getting three times what he gave, he was certainly one of the richest men of his time, living a full, passionate life through bettering the lives of others.
I understand that kind of passion. I may have amassed significant personal wealth but the real joy in it has not been what I can buy but how I can use what I have to help make positive changes in other people’s lives. It’s why I wrote my book “How to Ignite Your Passion for Living”. It doesn’t matter whether your dreams involve increasing your monetary wealth or enriching the lives of others, the key is to live well and let your passion lead you.
The Never Ending Goal: Networking
If you are heading out into the world to make your fortune, build the life of your dreams, or simply become healthier, you probably already realize that it will be easier if you have some help. You have probably already done some networking and have started to surround yourself with supportive, passionate people who motivate you. That’s great. Keep it up. Not just for the time being but always. Expanding your network should not be a short term goal but rather an on-going and constant goal. You will never know just how much help you can get, or how much you can help others, if you aren’t out there meeting new people and exposing yourself to new ideas.
No matter what kind of goal you are working on or how far along you are, there is always someone out there who can make it easier, help you accomplish it quicker, or simply make the process more enjoyable. Networking, at a minimum allows you to expand your circle of supportive friends. It also gives you access to new ideas as well as views that offer insight into yourself and even your goals. Many times, a solution you are searching for comes to you through someone you meet incidentally, someone who has access to the people or resources you need. There are also those serendipitous moments where you end up meeting your next project collaborator, investor, or coach all because you reached out a hand and said hello. Networking is an amazing thing.
What’s more amazing about it is the impact you can have on others. You could be the good friend, solution resource, idea person, instigator of change, or next business partner someone has been looking for. But none of these wonderful things can happen if you don’t get out there and let fate and chance play their part. You don’t need to have a specific idea about who or want you want from your social networking, you just need to go out and see what pops up. The interaction alone will enrich your life. The opportunities you will open yourself up to could be invaluable.
The Real Costs of Your Investments
How often do investors think about what is involved in their investments besides money? If you’re handing your money over to a stock broker, the time it takes to invest is small but you also take on significant risk. In real estate investing, there’s both money and time involved in getting it into shape to sell or rent. In a small business investment, the common approach is to put in as little money as possible but all your free time. So considering everything, what investment makes the most sense?
The answer lies primarily in the risk level of the investment and how much your time is worth. For instance, investing through a broker takes little time but the pay back is either very uncertain or very small. Small businesses often take years to turn a profit and your time investment, which may seem cheap or free initially, can be very expensive if you consider how much you could have made working more hours or a second job. Just think, if you could have gotten $25/hour working a second job, then that 20 hours a week you spent over 6 months getting the business up and running cost you $12,500 in lost income! How long will it take you to recover that investment through your business?
In real estate, you invest both a significant amount of time and, sometimes, money (see last week’s post and page 184 in my book “How to Ignite Your Passion for Living” on how to get others to fund your investments) but the outcome is far less risky. The added bonus is that real estate will not continue to suck your time the way a small business often does, and the returns will inevitably be greater and more secure than stocks. This is why I really encourage you to look at real estate if financial freedom is a primary goal of yours.
I’m not saying you shouldn’t open that storefront you’ve been dreaming about or support your favorite budding green business with a capital investment—there are many factors beyond time and money to consider when deciding what investment is right for you—but just don’t pour your all your time and money into something that is not going to help you reach your financial goals in the near future. Keep an eye on the big picture. Because after you make your first million in real estate, you can pay someone to do all the hard work to get that business off the ground or invest in whatever you like. That’s the beauty of financial freedom.
Getting into the Real Estate Game with the “Hansen Model”
Last week I talked about the 10% method for building the capital you need to get into what is today’s top investment opportunity—real estate. The only issue with the 10% method is that it will take some time to pull enough from your paycheck to have the seed money for your first real estate investment. So how can you take advantage of the great opportunities out there right now?
Simple. You have other people put the money in for you.
The best “super leverage” method I’ve seen is what I call the “Hansen model” after a particularly ingenious investor by the name of Dell Loy Hansen. You can read about Dell and his method in detail starting on page 184 of my book How to Ignite Your Passion for Living, but I’ll give you the gist of it here.
To start, you need a few people looking to invest in a safe, reliable project that will give them a regular and consistent return. Get them to collectively fund a down payment of 20% or more on the property you want to purchase and promise a reasonable return–say a 10% APR, an amount that is presently 500% higher than the best CD can offer. If you can put in some of your own money as well, it makes the investors feel much more secure as you’re backing your confidence in the investment’s potential by also putting your money at risk.
Then when you flip that house or rent those office spaces, get the best return possible and get the money back to your investors with a higher than expected rate of return. When they see that you not only lived up to but exceeded their return expectations, you will have created a enthusiastic group of investors for future projects as well as getting wonderful word of mouth that could bring even more money flocking to you.
There are plenty of people out there right now who have cash to invest but don’t want to bank on the unpredictable stock market and aren’t getting anywhere with the meager CD returns. So start working on cultivating those investor relationships and get access to the “leverage” you need to gain financial freedom sooner than you thought possible.
Starting Your Wise Investment Journey
The recession is still being felt in many parts of the country and the depressing talk about how bad things are continues. Real estate prices are still depressed, interest rates are still uncommonly low, and jobs are still on the scarce side, but those indicators aren’t actually signs of doom and gloom, they are shining signs of opportunity. It is unlikely that you will see better deals on real estate or find lower interest rates on loans in your lifetime and if you are stuck in a job you aren’t happy with because you can’t find a new one, start your journey to financial freedom by investing now and investing wisely.
Of course, the first question you are asking yourself is, where do I find the money to invest? The common belief is that you need to be making big bucks in order to have extra money to invest. But the fact is, it doesn’t matter how much you make. All you need is a plan and a little discipline.
If you have ever had a big jump in salary you may have been amazed 6 months into getting those fat paychecks that you were not able to save any more money than before. That’s because we tend to spend at our income level or beyond it so if you make more, you feel like you can, or even should, spend more. Nicer dinners, more expensive clothes, a few more nights out, a pricier car or vacation and the “extra” money you are making is gone. So how do you get around this tendency?
You can do this by putting away 10% of every paycheck—automatically, without exception, every pay day–then pay yourself (i.e. pay your bills as well as earmarking money for essentials like groceries and gas) before spending on any non-essentials. This will keep you within budget and on track to gathering a sizeable sum that you can then invest and start making even more money from. In today’s economy, real estate is an accessible and wise investment opportunity that you should really be taking advantage of. And starting with this smart savings tactic will get you there far sooner than you think.
You can read more about the potential of real estate investments on pg 191 of How to Ignite Your Passion for Living as well as on page 31 of Waking Up The Financial Genius Inside You (write me directly to order this book for just the cost of shipping).
Making it Through a Hectic Day
You might have already noticed that no matter how well you map out the steps you need to take to reach your goals or how intent you are on hitting every deadline you set for yourself, you don’t always manage it. Sometimes unexpected circumstances arise and other people need your time, attention, and support. It’s important that you make the needs of your family and friends one of your priorities-—helping them and others is a big part of living a fulfilling, passionate life–but you must never forget to take care of yourself as well.
I know this can often be very difficult and some days you just want to throw your hands up in surrender. Well don’t. No matter what is happening you really can help the people you care for, keep making progress on your own goals, and keep sane all at the same time. The way to do this is to use that “L” factor I talk about in Chapter 8 of my book, How to Ignite Your Passion for Living–list making.
Lists are the ideal life line for when things get hectic so be sure you make a list of what you want to get done for yourself and others every day. Then when the proverbial wrench gets thrown into your plans get the issue resolved or the interruption wrapped up as soon as possible and return to your list. Don’t worry if it takes hours to get back on track or even the next day. The important thing is to keep the list as the guideline for your day so you don’t get sidetracked or lost in the chaos.
You will also find that if you complete the items according to their priority for that day that even if you are interrupted, the most important things still get done. Anything left undone should be transferred to the next day’s list and made a priority for that day. If one or two of your top priorities are steps toward accomplishing your goals, you are certain to make the progress you need to keep up your enthusiasm and eventually accomplish what you are after. Because, in the end, it’s not how quickly you reach your goal but that you have something to strive for that fuels your passion and creates a life worth celebrating.
The Problem with Multi-tasking
Have you ever sat in front of the computer reading email while talking to someone on the phone and listening to the news on the nearby TV? Such multi-tasking is pretty common place these days. I’ve even seen people strolling on the beach and texting away on their Blackberry while holding a conversation with the person walking next to them. Life has sped up so much that we feel like we have to do as many things as we can at once just to keep up. But then the question is, what information and experiences are we really taking in at these times?
The thing about multi-tasking is that we can’t actually do multiple things at the same time, not fully. Our brains are built to focus, not run multiple programs at the same time the way a computer can. This means that when we have multiple things going on but we aren’t fully experiencing any one of them. We are not “living in the now” but rather in a shallow, half-realized moment. How much do you fail to notice while multi-tasking? What personal connections do you miss out on? What amazing moment in your child’s life will you never have a memory of to cherish because you are half focused elsewhere?
In our high tech, fast paced world, it might not be fashionable, but taking time to slow down, put the high-tech toys away, and become completely aware of your surroundings, the conversation you are engaged in, and the way you are feeling at the moment may actually be the ‘edge’ you need to keep up with the rat race. You will be more content moment to moment, probably much less stressed, and certainly happier with your life and your progress because you would know exactly where you are and where you have been. So next time you are ambling through the great outdoors, attending a family gathering, or even just talking on the phone, turn your focus and your full awareness on where you are and what is most important at that moment. See if it doesn’t make a huge difference in the quality of your work and the quality of your life.
Living Healthier in the Now
Most of us have some health related goal or area of improvement that we are working on or hope to work on very soon. Keeping yourself mentally and physically aware while exercising and eating by using the “living in the now” concept I’ve been talking about in the last couple blogs, can get you through a strenuous workout as well as help you eat right all while increasing your enjoyment of these activities.
For most of us, getting through an exercise routine is a struggle. But if you are completely attentive to your movements instead of thinking about how you’ve never yet been able to keep up an exercise routine or letting your mind wander to how much nicer it would feel to be lounging on the couch, you aren’t as likely to quit in the middle of it. Just keep focused on the feeling of your muscles moving and listen to your breath as you control your inhaling and exhaling (a primary concept behind yoga and its distressing effects, by the way) and soon enough you will have completed your routine or finished that 30 minute run and are feeling great.
When it comes to food, it’s all about being mindful of what you eat, how much, and how you eat. When you reach in the fridge for something, consciously decide what will contribute to your well balanced intake for the day and choose your best options. Stop eating directly out of the box or bag and lay out a small portion on a plate that you can then take to a table or out onto the porch to enjoy. Choose a place with no TV or computer or anything else to distract you. Taste your food, becoming aware of every flavor and texture, and chew completely. You will find that eating “in the now” is much more enjoyable. It will also slow down your eating so you fill up on less food and will help your digestion by having food well broken down before it hits your stomach.
“Living in the now” will help you by not only increasing your appreciation of the sensations of exercising and eating well but will also help you attain your goals for a better, healthier life. You’ll feel great because of your accomplishments along with gaining the long lasting and compounding effects of the bliss that comes with being consistently happy in the moment.
Living in the Now while Planning for the Future
As I mentioned last week, you can strive to make your life better but you also need to appreciate what you have and what you accomplish today. This is the concept of living in the now. No matter what your circumstances are at the moment, you should strive to enjoy the life you are living today. This can be a difficult concept to put into practice, especially if you focus so much of your energy on the future and reaching your goals. So, how do you live in the now while working towards a better future?
The answer is to balance your thoughts between enjoying what you have now and looking forward to what you will have in the future.
Chances are if you are reading this blog you are a goal setter, or are trying to become one, so you probably spend a lot of time thinking about your future. And you should regularly take time to think about how your life will be when you reach your goals as it will help keep you focused on what you are after and motivate you to keep going. However, while chasing your goals, you should also be striving to live as fully and as passionately as you can, today.
For instance, don’t go to a cheap diner and spend the entire meal thinking about how you’ll be able to eat at high-end, ritzy places when you are successful and rich. There’s nothing wrong with letting that thought in—for a moment. But then sit back and enjoy your meal and don’t let your mind wander back to what you aren’t able to do, right now. Because right now, being frugal is probably necessary for you to eventually reach your goals as well as take care of today’s responsibilities. And besides, no ritzy place is going to have that sweet old waitress who calls you ‘hon’ and always has a colorful joke to get you laughing at the end of a long hard day.
So become a keen observer of your own mind, being conscious that you spend the majority of your time focused on taking in the experiences and sensations of the moment you are living in. Because what is the point of working through today just hoping to enjoy tomorrow? You should be enjoying today as well!
