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The 100% Return Goal

January 18, 2019 by  
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As we begin a new year it’s a very good time to remember the basics, specifically the basics of financial independence through which you make and keep your own fortune.  It’s so easy to forget the basics, especially when we are all caught up in the details of our daily lives, even those details that are involved with building our wealth. For example, if you have a big problem with the plumbing at a rental property or the property taxes just got bumped up, it’s easy to focus on just that, but that can get you frustrated or make you kind of space out on your overall plan.

What you should not forget is that you have to continue to look at the big picture, looking for ways to take advantage of leverage whereby you could earn as much as 100% of your money due to compounding. I’ve certainly been there and done that. Even on the very property that is giving me fits, I many times have failed to step back and realize that my equity on that very property has already exceeded a 100% return on my money and I should be motivated and reminded to keep doing that.

There is a simple example that I used in my fist book, How to Wake Up the Financial Genius Inside You, where I showed how 1 single penny a day compounded at 100% a day turns into just over $339 million on the 35th day alone. Now I know there is no way you can compound your money at 100% per day, but it is possible to compound your money at 100% per year, especially in the first few years. The key to those huge numbers is using other people’s money (your leverage). So, maybe only 10, 20 or 30% of the price you pay is with your own money and then the rest is in a loan from the bank or the seller for the balance. It’s not only possible but many people are doing just that, every day, including myself and many people that I know and have helped.

I do know that finding beat up properties these days can be a bit more difficult, depending on where your market is, but things change and prices go up and down and you and I need to always be looking for those bargains, especially those properties that need fixing up, the ones I like to call “dirt bag properties”. Then, always remember that good ole leverage formula:
If your down payment is only 10%, and you improve the property enough to increase the value by 10% you have made a 100% return on your money. That formula is a little simplistic since it doesn’t take into account your expenses, but you can keep those pretty darn low if you do most of the work yourself. Just don’t let the goal of a 100% return on your investment scare you away because it seems too difficult. If you can get even part way there, say just a 30% return on your money per year on only $10,000, that fraction of the big goal will still add up to over $1,124,000 in just 18 years.

My big point here is that we must keep the big picture in mind and remember that those potential returns are there. If you do, it becomes easier to not be deterred or discouraged by those plumbing issues, property tax increases, or other relatively minor problems.  Keep your eye and your dreams focused on the big prize, because it is all together very possible to achieve that big goal.

My Words Out Loud

January 11, 2019 by  
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I have something very special for you today. Please take a listen to this pod cast I was on recently. There are a few things I share on it that I think can be very helpful to most people. I hope you like it and, if so, please share with others. Thank you so much for taking time to listen. This kind of thing is part of what I am doing to really try to be of help to others. Maybe it’s my age but I am all about sharing and helping these days!

 

The interviewer is Michelle Brown, a fellow Salt Lake City resident who teaches Life Story writing workshops. Get a nice warm beverage and sit back for a really interesting conversation. I hope you find it helpful and motivating!

 

Reviewing and Improving on the Past Year

January 5, 2019 by  
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Wow, where did the 2018 year go?  It seemed to go faster than any other year of my life. How about you?

But what really got to me was what I wrote in my journal back on February 27, 2018:  “Now in Lihue, Kauai house … Kimbo [my nickname for my wife Kimberly] is working so hard to get the house in perfect condition as to justify the $4.5 million price we have it listed for… Now at 46 days away from age 74, I hope I’ve learned a little more about life and living.  I still need to focus on living in the great now moments of life and need to practice more of what I preach and write about … living in the present, self-talk and self-affirmations … and write them down.”

In that journal entry I made this list:

1. I am living in the now

2. I love my life now

3. I love my wife now

4. I love being semi-retired

5. I gain much of life from my writing and helping other people

In that same entry I finally came to this conclusion:

“In 6 days, we head back to Utah – in my head I keep thinking about that future event and have been counting down the days. I need to stop doing that and enjoy the great right now! I mean heavens, it’s pretty darn nice, right here and right now. Beautiful, warm, wonderful view of the great blue ocean and green mountains of Kauai … so I will now take all of that in and live in the ‘now moment’.  Ok I am doing that right now and it feels great!”

It was great to have realized what I needed then, but the realization didn’t quite turn into action. Recently, on Dec. 31, 2018, I made another, related journal entry: “I re-read some of my comments from last year and it hit me kind of hard how I said I must, and want, to live more in the present moment or the great wonderful ‘right now” and I realized I just didn’t do that very much. So, that’s now back on my new year’s resolution list for 2019. I’m going to do much better in 2019!”

I know that I’ve written and preached about keeping a journal of your life and reading my own past comments really shows me how important it is to do just that. You can coach yourself and remind yourself over and over again about what you need to work on and that, at least to me, is very important to improve and expand and make your life better and better. Yes, I know that we all have to think of the future and make plans and set goals and review our past, but after we’ve done that, we need to spend more time in the “great right now moment”.

I hope you agree and maybe what I’ve learned here will help you. I’m pretty darn sure it’s already helped me and will make me more aware of living in the now moments and how to love and enjoy 2019 more than last year, even though I fell short of my stated resolution. So, let’s all double down and make 2019 the best year EVER!

The Time to Start is Now, Again

December 28, 2018 by  
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I hope you are all enjoying your holiday time with family and friends. I sure am! It has kept me very busy. So this week, let’s look back at some wise words that are always good to hear again. This is my post from way back in December of 2009, updated a touch for today:

This coming week is when you start getting asked, “What are you New Year’s resolutions?” Hopefully you have a detailed, clear, and measurable set of resolutions to answer that question with. If you’ve got that–fantastic. But now, when do you start on it? Without a start date and the first few actionable steps planned out, what chance do your dreams have of becoming real?

My first suggestion is that you make your start date TODAY. That’s right – start now. There is no reason in the world that you can’t take those first, maybe very small but necessary steps, towards your goals. If you haven’t clearly defined your goal, then that is your first step. If you know what your goal is but you haven’t written out the first steps, then your first actionable step is to make that list. And the first thing on that list should be the next step you’ll take, scheduled, if not for the same day, the very next day. You should always know what the next step is and exactly when you will take action on it. A lack of specific planning is the death knell for most dreams.

Now as I mention in my book, How to Ignite Your Passion for Living, you don’t need to know every details of every step you will need to take to reach your dreams. Much of what you’ll need to do will only become obvious as you progress. The important thing is to keep moving forward. There will be times that you will have to take two steps back and head in another direction but the fact that you are continuously working towards your goal guarantees you will reach it! The only way you’ll fail is if you stop working towards it.

So, whatever your New Year’s resolutions are, whatever goals and dreams you want to realize in 2019, don’t just talk about them, get them done. Start now, keep it going, and look forward to an amazing year.

The Eve of a New Year List

December 21, 2018 by  
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As you may have noticed, especially if you followed my advice from my blog post about the subject matter a couple months ago, it can be very helpful and profitable to set your daily goals the night before. Sometimes this list making even influences your dreams in a very positive way. You see, by setting your next day’s goals the night before, you will notice that, most of the time, you wake up thinking about those goals and are so much more likely to act on them and make them happen. Of course, I’m talking primarily about your small daily goals or tasks. These are usually the kind of things you expect to, or hope to, accomplish that day. However, this can be applied to bigger goals as well.

Being that we are so very close to the end of the year, it can be, and usually is, the best time to begin to set your big yearly goals for what you are going to do, achieve, accomplish, or earn, in the new year. It is certainly a good time to set your mind on the direction of your new year, and so why not write them down? You would be writing them down at the end of the year rather than at the end of the night but it’s the same kind of list – preparing you to get going on your goals once the new day – or new year – starts.

As you know, when you set those goals and write them down, your brain can, and usually does, take over and persuade, coax, cajole, and even force you to get to work to accomplish those objectives that you have set for yourself. So, take time in the next few days to thoroughly think through what you want 2019 to be for you and what you are going to get done. Include both financial and nonfinancial objectives like helping others, spending more time with family, world travel, etc. Do it! You won’t be sorry!

So, what are my personal goals for my 2019 year? Yes, I have some financial goals, but for me I would like to do more writing and get my autobiography done. Also, on my list is the giving of time and assistance as well as money. I have already started in on this list. Just in the last few weeks I’ve given my time at an elementary school, assisting a 3rd grade teacher and, oh wow, what a great feeling that gives me!

Physically, for my 75th year on this planet, I want to get in, and stay in, super physical shape. I want to look like, act like, and have the energy of a 35-year-old. I know that is not going to be easy, but I do believe it to be possible and, besides, the rewards that I have heard about through other people are fantastic. Those who do aim for super physical fitness, and stick with it, are shown to have a much longer life. And I have to tell you, I do love beating those much younger people on the tennis court, something which happened a lot in 2018 and I plan to repeat in the coming years!

Give Big, Live Big

December 14, 2018 by  
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Have you ever noticed that with my blog I am never really trying to sell you a product? Well, I guess I’m selling something, or more accurately I’m trying to give you something and hoping that you’ll snap it up. What I’m “selling” is information and ideas and, hopefully, inspiration and motivation. It’s not that I’m against selling stuff such as books, seminars and, oh yes, an old beat up piece of real estate that I’ve fixed up and increased the price – and value! – substantially. But at this point in my life, I feel so much more like giving rather than selling.  As I’ve said before, “If you want to live big, give big.” And, of course, we are now in that wonderful giving time of year and I think you will agree with me that it feels so very good to give.

What’s amazing about giving is that it can be somewhat selfish. That may sound odd but when I give a lot it makes me feel so very good inside so wanting to feel that good is kind of selfish but in a very positive way. I love to share with others what I’ve learned about making tons of money and expanding the possibilities and experiences of one’s life and most of us need help and assistance to lift up our lives to higher levels. I mean who among us has a perfect life and doesn’t need some motivation and help in at least in at least a couple parts of our lives? Every single person that I’ve ever met that have been super successful, whether it was with money matters, business, sports, family, or love, have been helped by someone. Sometimes it is in person through work, networking, friends, people met at clubs, etc. Sometimes it is more indirect such as the things we learn from someone through books, seminars, or even blogs. We all have others to thank and appreciate.

I certainly have lots of great books, friends, coaches, and leaders who have lifted so many parts of my life. At this juncture of my life, I feel stronger than ever and so it’s time for me to give back – it’s time to pay it forward. I want to be of great help to others and not just through my books and lectures. I love to give my time and money to charities. And no, I am not talking about those huge charities that pay their CEOs or presidents one or $2 million a year. Ugh. I’m pretty sure they could find an equally qualified person that is retired or semi-retired that would do the same job for free or a small salary. It’s just not going to be me.

So, in the spirit of the season, I’d like to challenge you, my readers, to give, give, give! And, yes, even though it feels a bit selfish, you will see, as I’m sure you have in the past, that when you give BIG, you really do begin to live BIG!

Pleasure and Production

December 7, 2018 by  
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Last week we talked about Authentic Happiness which is both a concept and the title of the great book written by Martin Seligman. In the book, the author continuously emphasizes how much of our happiness comes from inside our heads.

Most of us humans look at rich and famous people and think that they must be very, very happy and content because of all their fame and wealth. Well, guess what… if you look closely, you will find that many of these people are not particularly happy. I think a big reason is that most people think that once they attain great wealth and/or fame then it will automatically make them happy. Only it doesn’t. Then these folks, finding that their brains are not filled with great thoughts of happiness and contentment, start to wonder why. That doubt causes an internal dialog to start up which can work against them, quickly driving them and their mindset downhill. Also, money and fame don’t hold a candle to the kind of true and deep happiness we get from things like the love we give and receive from family and friends.

Although most of us are not rich and famous, we may still find ourselves falling into similar thought patterns. It is so very easy to let our internal self-talk persuade us that things are not going well which brings us down mentally.

There are lots of methods for overcoming this negative self-talk but one very big one is also a powerful antidote for depression – productive gratification. Striving for gratification is automatic but the way to use it so that it overcomes negativity and depression is through producing something truly meaningful to us and/or to others. What we accomplish when we produce meaningful things sends a powerful, purposeful message to our brains and makes us feel so very satisfied and happy.

Martin makes the very good point that “pleasure is a very powerful source of motivation but it does not produce change.” It also does not produce lasting authentic happiness. A simple example is the difference between the pleasure that we receive from watching a very entertaining television show versus the gratification, genuine happiness, and personal satisfaction that we receive from reading a particularly inspiring or informative book. Think back on how you felt after experiencing these two different activities yourself. The difference in how your attitude and your state of mind will probably be quite apparent.

The author suggests that if we really want true, deep and authentic happiness we should all create a list of activities, goals, and deep desires that produce for us, personally, a sense of gratification. Look for goals and things that you do that seem to make time stop and even has you thinking, “I don’t want this to ever end.”

Yes, it’s true that many pleasures take little or no effort to acquire and that the best kind of gratification takes a lot of work. But so be it. It is so well worth it, and I do think and hope you would agree!

 

Secrets to Authentic Happiness

November 30, 2018 by  
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I think I came across the best reason for keeping a journal of your life or, as my good friend Rich Harvey used to call it, a reason for people to “Journal Their Journey”.

Just the other day I picked up one of my journals dated 10-26-2003 to 6-12-2004. My comments about what was going on in my life at that time quoted a great book that I had totally forgotten about entitled Authentic Happiness, by Martin E. P. Seligman, Ph.D.

In his book, Dr. Seligman talks about what real authentic happiness is and how we can capture it and keep it. Finding and enjoying real happiness is not done through seeking and finding pleasure and the same goes for seeking happiness through just staying busy – it just doesn’t work. Great and authentic happiness is experienced from gratification. So how do we become gratified?

Much of gratification comes from “production”.  When we produce something of great value to others and/or ourselves, we end up with a great feeling of satisfaction. Here are Dr. Seligman’s 8 common ingredients and psychological components of gratification:

  1. The task is challenging and requires skill.
  2. We have to concentrate.
  3. There are clear goals.
  4. We get immediate feedback.
  5. We have deep effortless involvement.
  6. There is a sense of control.
  7. Sense of self vanishes.
  8. Time seem to stop.

Dr. Seligman goes on to talk about depression in today’s world and how widespread it is. It has increased by a huge amount in the last 40 years and the average age of depressed people is much younger today. That certainly gives more credence to the importance of setting big, tough goals. If your mind is firmly set on your goals, it’s more likely that your mind will not be spending time reflecting how you feel in the moment. Plus, there is the big extra benefit that setting big goals does energize us both physically and mentally because of the chemicals released by our brains, as I talked about in last week’s blog.

But why is depression so high in wealthy and healthy countries? The author’ s theory is “that an ethos that builds unwarranted self-esteem, espouses victimology, and encourages rampant individualism has contributed to that epidemic.” Another reason is our huge reliance on shortcuts to happiness. Every nation builds more and more shortcuts to pleasure … TV, drugs, shopping, spectator sports and high sugar food and drink. Gaining these and many other things take very little effort on our part these days.

A major symptom of depression is self-absorption. The depressed person thinks about how he feels a great deal of the time – excessively so. When a depressed person detects sadness, he ruminates about it, projecting it into the future, this in turn increases his sadness in his life and across all his activities. In contrast, gratification is the absence of feeling sorry for yourself.

What we all need to do more of is realize that there are no shortcuts to the kind of fulfilling gratification we all crave, and realize we need to focus more and more on our goals, big tasks, and our production as well as giving up the constant self-worry and self-absorption. You may have noticed that really happy people, for the most part, spend the least amount of time home alone – they tend to have a rich and fulfilling social life, which really is the opposite of being self-absorbed.

Next week I’m going to talk more about this great thing called “Authentic Happiness” that Martin’s book gives us such super insight into as well as talking about how understanding where it comes from can bump up our happiness factor and enhance our lives.

 

It Starts with a Dream

November 16, 2018 by  
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Almost every super successful person I’ve ever heard of or have met began as a dreamer. Without dreams, very little will happen in any of our lives. But with a dream, great and wonderful things can, and most likely will, happen but only if you add two more things – specifics to make it a goal and action to turn the goal into reality. But the dream has to come first! So, let’s talk about that.

I once heard that 75 percent of our life is lived in our minds. That may not be entirely accurate, but I think you would agree that a fair amount of our lives is lived inside our heads and since our minds do indeed have great power, there must be great potential there.

Think of yourself in Chicago or New York in the middle of a cold winter.  You’re watching TV or reading a magazine and you see an advertisement for a trip to Hawaii. You’re attracted to the idea, and suddenly you start to dream about going to Hawaii for the entire month of February. What happens? You start to live the trip in your mind. You may even start to work it out in detail, planning exactly when you will leave, where you’ll stay, what you’ll do while you are there, and so on.

You think about it so much that you eventually decide that you are absolutely going to go and, if you don’t have the money to make it happen, you begin to plan how you are going to save enough to make the trip. And, of course, all of this is part of you living the trip in your mind long before you go.

When you finally make the trip, you have the great time that you had pre-lived in your mind and on the way home, you relive what’s just happened to you. That reliving of your trip in your mind can go on for weeks, months and even years, renewing your enjoyment of it each time.

Pictures can be a huge influence in helping our brains relive the good stuff in our lives.  Years ago, I bought a bunch of digital frames (they cost all $10-$20) and placed them all around the house. This way I can just insert a memory card from my camera (I use a new card for each trip or special event) and the digital frame will rotate through all the photos, allowing me to easily relive those great moments in my life. You should try it too. It’s a small thing but it can really enhance your life.

Just don’t forget, dreaming is not enough. You must also follow through with goals and action if you want to make it more than just a dream. Next week we’ll talk more just how to do that!

 

Challenge Yourself, Challenge Your Mind

November 9, 2018 by  
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Erik Weihenmayer on Everest

Imagine a blind man who made it all the way to the summit of Mt. Everest. Let me introduce you to Erik Weihenmayer, the first blind man to climb Everest. How do you think his satisfaction levels are? Wow, I’ll bet his intense satisfaction lasted a long time, maybe even a lifetime. But Erik did not only just climb Everest, as amazing as that accomplishment is just by itself, but he is one of just a handful of human beings, and the only blind man, to scale the world’s seven highest peaks on each of the seven continents. Talk about taking on a tough challenge! His so-called disability has completely taken a back seat to his passion to live his life well!

Erik’s award winning film, Farther Than the Eye Can See, was ranked in the top 20 adventure films of all time by Men’s Journal, and brought home first prize at 19 film festivals. It was also nominated for two Emmy’s. The film beautifully captures the emotion, humor, and drama of Erik’s historic ascent on Everest, as well as his three other remarkable “firsts” – he was one half of the first American father/son team to summit Everest, the oldest man to summit, and the most people from one team (19) to reach the top of Everest in a single day!

For Erik and his team, having met the challenge of Everest head on and having pushed past their fear, obstacles, adversity, age, and even disability, to succeed, they know that for the rest of their lives they can tackle the “hard” stuff of life really do it well because they have already proven to themselves that they can.

Did Erik Weihenmayer put his feet up after the triumphs and bask in the glow of his accomplishment? Perhaps he did for a while, but this former middle school teacher and coach never stops challenging himself.

“There are summits everywhere,” Erik often tells his audiences when he lectures. “Just because you lose your sight, doesn’t mean you have to lose your vision.”

Three years after he did it the first time, Eric went back to the Himalayas and tackled Everest again, but this time with an even greater vision. On that second trip, he took six Tibetan teenagers with him – a dangerous and challenging accomplishment made all the more remarkable by the fact that these six teenagers were blind as well. Wow!

You can challenge yourself in meaningful and lasting ways as well. The key is to continually challenge your thinking. If you work on changing that gray matter enough, I believe you can avoid the slowdown and letdown trap that snares so many people today, especially as they get older. Challenge yourself big time and you’ll be more than ready to go for your big dreams and accomplish them.

Let’s take a trip inside our minds right now.

First of all, do you believe you can change the way you think about life? Or are there new ways to think about your capacities and your potentials and what you can and can’t do?

So, I am now sending you a big challenge to really push yourself big time and, yes, I am going to challenge myself big time too!

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