Clicky

Search:

Just Do It with Baby Steps

September 9, 2016 by  
Filed under blog

 

As I mentioned last week, the way to reach huge goals is through the many little baby steps you take, one at a time, to get there. Reaching any big goal will have its difficulties but I think we all need to keep reminding ourselves that a big part of hitting our big goals is keeping focused on those baby steps and not being too hard on ourselves when our progress is not as fast as we want it to be.

This concept works for anything you are after. If one of your goals is to save up many thousands of dollars so you can make investments that will put you in a great position to retire, allowing you to do whatever you like such as traveling the world as you please like I do, you just start with a few baby steps. What those baby steps are depends on what you can manage. The important thing is to get started.

Let’s say you are on a real tight budget now and you just can’t afford to save the recommended 10% of your income. That’s okay, just make those baby steps do-able. You can squeeze your expenditures a bit and save just 2 or 3 percent for the time being, then after a while try to increase that to 5% and once you are doing that comfortably, push that towards 10%. The saving of just 2% right now might seem like it will never amount to big bucks, but over time it does add up because it helps you form a habit that makes it easier to increase the percentage as time goes on.

It’s not just money that works this way. For instance, most people would not think they could drop down and do 100 pushups without stopping, but most people could do 5, 10 or 20. To be able to do 100 pushups just use the baby steps concept by doing those 5 or 10 now and add a one or two more every other day and you may surprise yourself, and everybody around you especially if you or 70 or 80 years old, how easy it was for you to reach that goal!

The same goes for just about every goal we may set. Baby steps really can lead to world breaking records or at least big time records and success in your own life. And it’s always a good idea to share the baby step concept with your kids, parents and friends. Once they see how well you’re doing, it’s sure to motivate them to do better on their own goals. So share the idea and encourage those around you. If they follow it, they will not only feel great about their accomplishments but they are sure to give you lots of thanks and credit which feels pretty good!

 

 

 

Breaking Big Goals into Baby Steps

September 2, 2016 by  
Filed under blog

A couple weeks ago I suddenly realized that since I got a Fitbit and starting keeping track of my daily steps that my 4,000 steps a day had slowly risen to more than 20,000 steps a day. I had walked the equivalent of a third way around the world since I began with my goal of more movement and more exercise. My big goal now is to walk all the way around the world–or rather the equivalent of that.

I am a big believer in setting big goals, in just about every aspect of life. I’m talking about diet, weight control, fasting for health, and of course in financial matters. But how do you accomplish these huge goals? You take it just one baby step at a time. My January 7th blog was all about how after you set a big goal, it’s a very good idea to concentrate on taking baby steps so you are less likely to get discouraged and give up when you don’t think you are going to reach your goal.

For example, I read a study years ago that going without food for 24 hours every week or even every month is very good for your overall health, longevity and, of course, weight control. Knowing that, I started with baby steps by skipping a meal every few days and then slowly I took another baby step and skipped 2 meals in a day which lead me to go 24 hours with any food and only drinking water.

Those baby steps lead me to hit a big goal I set, one that seemed almost impossible when I set it. The big goal was to go a full week without food and believe it or not I did just that. The first and second day were the toughest but after that it wasn’t nearly as hard as I thought it would be! And wow did I ever feel fantastic toward the end and even after it was all over. I then felt that I could accomplish almost anything in entire the world!

That is just one example of how small steps can add up to something really big. Next week I will talk about how you can do this with your financial goals and the importance of sharing what you learn when you see how baby steps can work for you.

Rewards Beyond Fortune and Fame

August 26, 2016 by  
Filed under blog

 

When I was young I was so very much into myself.  I craved success, financial and non-financial.  Oh man, how I wanted to be rich and famous! I went after both with great passion and energy. I worked hard and long to reach my goals. They consumed me!  And after many years, it paid off. I made millions and even got my 15 minutes of fame with a segment on Tom Brokaw’s nation wide NBC news show and a front page story in the Wall Street Journal. And yes, I thought I was pretty hot stuff. It was all very satisfying and rewarding.

However, over the years my idea about what is truly rewarding changed. Just 2 weeks ago I received the richest reward I could hope for, one that far exceeds the rewards that I had from fame and fortune. It happened on a little island called Whidbey, just west of Seattle Washington.  I had taken some of my kids and grandkids for a summer vacation and we stayed at an absolutely beautiful multi-acre estate called Quintessa owned by 2 lovely ladies, Tessa and Carrie.

My wonderful and huge reward came when Tessa, after learning my name, told me about how my books, tapes, and periodical, The Financial Freedom Report, was the key that motivated her to buy a number of income properties, including the heavily wooded Quintessa Estate with its ocean view and accommodations for up to 32 people.

Tessa stood there and thanked me so many times it was almost embarrassing. In the last 10 to 15 years, I have received many, many letters, emails, and phone calls with thanks and appreciation from people whose lives have been financially improved, but Tessa’s story and her enthusiasm given to me in person was like getting hit in the face with a brick–a good brick of course!  It brought to my mind, very forcefully, just how much more value and reward there is in helping people, so much more than fortune and fame.

The irony is that back in my younger days I was being very selfish, seeking my own fame and fortune but over time it led to helping many other people which was an unexpected bonus and a wonderful reward. It certainly made me want to work harder to help more people. I found I wanted more of that wonderful feeling, a feeling that surpasses anything I get from fortune and fame.  It took a bit of time to learn that lesson but I don’t think I will ever forget it.

So let’s all try to reach out and help those around us, whether it be family, friends or complete strangers. You may not even know what you have to offer but the rewards for finding out are amazing.

P.S. If you want to stay at the Quintessa estate, it is located at 3493 French Road, Clinton, WA, 98236, or contact them by email at thequintessa@gmail.com. Quintessa is set up in such a way as to help our kids and grandkids do some major bonding which is exactly what happened!

 

Following the Rules of Law and Honesty

August 19, 2016 by  
Filed under blog

As I mentioned last week, if you really want a fast rise to the top of your financial mountain, you may want to consider bringing on partners. Partners can give you so much more leverage. Sounds simple, right? Well, there is a bit more to it because there are laws that govern when you seek or solicit other people’s money, rules that were put in place to keep investors and their large investments safe.  That’s the first big key item to be aware of when bringing on partners. The second is that you will benefit tremendously from being completely honest as well as understating earnings expectations but I’ll talk more about that in a minute.

What the law says about soliciting other people’s money for your investments varies according to the type of investment. For complex and higher-risk investments, US law requires that the people that you approach must be so-called ‘accredited investors’ or ‘qualified investors’.  They need to have a minimum of a million dollars’ net worth (excluding their residence) or have at least $200,000 dollars in annual income (or $300,000 of joint income) each year in the last couple years to qualify. This law helps to insure these investors are in a position to make large investments as well as being people who should have the knowledge to wisely handling their finances.

You are not required to audit your partners to prove their financial standing but if it’s obvious that a potential investor is fudging their numbers, then you need to use common sense and back away from that investor. There are some lower requirements if you raise money by alternative finance means such as crowdfunding (collecting funds in small amounts from a large number of people) but the total amount of money that you can accept is limited.  Bottom line here is when you are looking for partners you should only approach those people that you are pretty certain qualify under the rules for your country and state. So know the laws that would govern your dealings with investors.

Now, onto the second key item for super success. This is a pretty simple concept but it’s one that far too many people miss out on.  A primary reason this next key item is so important is because it can bring in additional investors without hardly any effort on your part.  And all you have to do is be totally upfront and honest with your partners and never over estimate what the financial return to the investor is going to be.  If anything, under estimate and try to over deliver.  No one minds being surprised that they made more money than they were led to expect they would.

Not long ago, I was looking for a partner to invest in a very secure property that I had found. I was pretty sure I could deliver an 8% annual return on it but I told the investor that I thought the return would be around 7%. So, when I later on delivered an 8% return the investor was so pleased that he told other potential investors about his experience. That is how you get a lot of new investors. It is also the best way to advertise or market your products, if you have any.  The thing to remember is that people will more readily trust someone or be ready to buy from them because someone they know and trust referred them.

So if you are in a hurry to make a lot of money, consider the partner option but follow the rules and take good care of you partners.  The extra bonus to you is that as you help your partners improve their financial status and situation you will receive many thanks and appreciative comments. It is such a great feeling to know that you are helping other people as you help yourself too!

Powerful Daily Questions

July 29, 2016 by  
Filed under blog

In the last few posts, I’ve been talking about Marshall Goldsmith’s great advice that you can read about in his book Mojo. He reveals ways to greatly improve your odds of lifting your Mojo (your personal happiness and fulfillment in life) and increasing your chances of making greater progress toward your goals and what you want your life to be.

One of Goldsmith’s very effective methods was to ask his friend, Jim Moore, to pose a daily list of questions that Marshall had put together. These questions included want Marshall wanted to get done and how he wanted his life to be. Both men were amazed at how well that daily questioning worked. Even though they lived miles apart and Marshall does a lot of traveling, their commitment to this has them connecting on the phone and going through the process of asking those same questions about 85% of the time. The process has kept Marshall focused and moving forward.

So if you want to greatly increase your Mojo and reach your goals, write a list of what you want to get done and how you want your life to be and then find a good friend or a close relative to ask you those questions on a regular basis. Remember that it’s important to keep track of your progress as well so you can be inspired by your success and work on the areas that might need a boost.

Although you will want to come up with your own questions, I thought Marshall’s basic 6 questions might be helpful:

“Did I do my best today to …

  1. Be Happy?
  2. Find meaning?
  3. Build positive relationships?
  4. Be fully engaged?
  5. Set clear goals?
  6. Make progress toward goal achievement?

After this list, Marshall goes on to list questions he specifically needs for himself such as, “How many minutes did you spend writing?

Then there are some health questions such as,” How many sit-ups did you do?” To which he gets to answer with statements like “Today I did 200 sit-ups at once. Not bad for a 64-year-old guy.” You know that has to be encouraging!

As for work, it might be “With how many clients are you current on your follow-ups?”

Then there’s family and relationships. “Did you say or do something nice for your wife? How about your son or daughter?”

In the book he also asks himself, “Why does this process work so well?”  The answer is that it forced him and his friend Jim to “confront how we actually live our values every day. We either believe that something matters or we don’t.  If we believe it, we can put it on the list and do it! If we really don’t want to do it, we can face reality and quit kidding ourselves.”

The above is just a brief sample. Your list should be much longer but how long depends on what you want to get done in your life.

Marshall asked his wife, Lyda, a psychologist, if she thought this process would work as well with a computer-generated list of questions instead of sharing with another person.  She said, “No, it is a lot easier to blow-off a computer than another person.”

So the bottom line for you and me is to start making our list and then find a friend to help, the kind of friend that you trust and one that won’t criticize you when you fall short of your goals and ambitions. You can do likewise for your friend and together you can really build up your Mojo!

 

 

The People Who Changed My Life

June 24, 2016 by  
Filed under blog

Last week I said that I was going to give appreciation and thanks to those people that inspired, helped and directed my life and personal development and those that lifted my financial life to great heights.

The first and probably most powerful financial mentor was Larry Rosenberg of Denver, Colorado. Before Larry came into my life I had read a few financial books that somewhat helped me start to improve my financial situation, books that taught me that the first step is to save money out of each paycheck, at least 10% but more if you can swing it.

However, what Larry Rosenberg really did to lift my financial sights to great heights was to show me what he’d done, starting basically from scratch, using financial leverage and compounding. When he sat down with me and showed me on paper what could be done with as little as $1,000 dollars, a few years’ time, and hard work, I was blown away. Thousands turned into millions and it wasn’t just a theory. He had done it! I quickly saw, and he agreed, that I could do the same thing. So I set out on my financial path and yes, it lead me to millions.

So thank you Larry. I appreciate you and I will never forget you. You not only influenced and lifted my financial world but because of you I’ve passed your directions and formulas onto literally thousands of other people. Your great influence is huge and growing and it’s so big it’s probably unmeasurable.

Larry also put me onto Bill Nickerson’s great book, How I turned $1000 into Millions in My Spare Time, in Real Estate, which gave me more details on what I should be doing and how. Later I was privileged to meet and get to know Bill very well. So a big thanks to Mr. Bill Nickerson too!

These two gentleman were a big influence but there are still more to thank. Next week, I’ll send out a few more thank you notes and show you what people have done for me and, in turn, for you!

Risk is Not for Herds

June 10, 2016 by  
Filed under blog

Last week I talked about risk taking and how the willingness to take risk when it comes to investing is critical.  Those people who really want to attain Financial Freedom or FF need to look at themselves to determine their tolerance for risk.

As a real estate investor working towards achieving FF, it’s important to understand your own temperament, and your ability to assume that element of risk.  It’s important to know your limitations and not torment yourself with sleepless nights by taking unnecessary risks in trying to keep up with others whose capacity to assume risk might be much greater than yours.  This decision may slow you down on the road to FF, but what is FF without some enjoyment, comfort and happiness along the way?

Everyone has a level and a threshold for tolerance and excessive and unnecessary risk will only create anxiety and tension and may well shorten your life.  So take a hard look at yourself and measure how much risk are you willing to take that doesn’t make you worry you to the point of causing pain, anxiety and suffering in your life.

But keeping in mind our objective, achieving FF, it is important to remember that the greater the potential risk the greater the inherent reward will be. It is also almost impossible to avoid every risk at any one time in selecting an investment. In order to achieve and maintain high rates of return, which are critical for achieving total FF, one must be prepared both mentally and emotionally to incur a higher than average risk. So look hard at yourself and measure how much risk you can handle.

Remember that “eagles don’t fly together in flocks.”  So if you are going to make it big you can’t just go along with the flock or the herd.  If you earnestly desire to achieve FF today, you must learn to assemble all the facts, calculate the risks, be decisive, and then act accordingly.  Statistics and history prove that the majority of people fail to ever become FF because they do not have a specific plan. They are content and willing to wait patiently throughout their lifetime for Social Security or they are looking for that one super great investment or the lucky lottery number to suddenly become super rich.  Don’t follow those kinds of people. Work on your plan that will take you to total FF over a reasonable period of time and you will reach the level of Financial Freedom that you set as your goal.

Avoiding Your Own Loss Aversion

June 3, 2016 by  
Filed under blog

Statistics indicate that the majority of people are security conscious. This fact has been verified in a number of studies which concluded that many people people’s fear of failure is twice as great as their desire to succeed. Some of these studies also noted that in general, there will be up to 5 times as many people choosing a stable situation than people choosing an option with recognized risk. In order to achieve FF (Financial Freedom) you cannot be afraid to fail or take a risk.

Our tendency to avoid risk is known as loss aversion. It means a person believes that if they lose something, say $50, their level of unhappiness with that loss will be significantly greater than the potential increase in happiness if they gain $50.  Its apparent in our everyday lives. People will order the same thing off the menu every time simply because they are afraid they might not like what they order if they try something new, even when there is a good chance they could find a new favorite. Similarly, people put their money in low interest bearing savings accounts rather than put any of it some kind of investment account that will most likely make them significantly more in interest, primarily because there is some chance of loss. So it sits in the banks making next to nothing.

The problem may come down to a belief that one has no control over the outcome of their circumstances, be it their food or their investments. A class of Harvard graduates was asked what they believed were the necessary ingredients to become financially successful.  Their conclusion was summed up in two words, “Greed, and Luck.” I couldn’t disagree more.

If you consider the statistics I mentioned, you might very well conclude that only one out of five people will ever have FF. But that is just a statistic and has no bearing on what YOU will achieve. You can decide to take the risk and be that much closer to FF. Next week I will talk more about risk taking and what you as an investor need to understand about yourself.

The Risk Hurdle

May 27, 2016 by  
Filed under blog

Financial independence or Financial Freedom (let’s call it ‘FF’ for short) carries many connotations. Ask ten people what these terms mean to them and you will probably get ten different answers.  Many people today have dreams of becoming financially independent, however only a small percentage of the population actually achieves this envied position in life.

FF does not necessarily mean being rich or having a million-dollar bank account.  It simply means having enough money to do what you want to do, when you want to do it. It means you are free from money worries, so you can pursue the things that interest you most in life.  Having FF doesn’t necessarily mean retiring and giving up all your ambitions and goals in life to just grow old.  Actually, quite the opposite is true. It allows you the freedom to put more time and effort into your work or hobbies than ever before, but from a new perspective–that of personal fulfillment and enjoyment from doing work because you want to and not because you have to.  This is true Financial Freedom!

A rather fatalistic poet once wrote, “Life to many is but a constant struggle for a mere existence, with the assurance of losing it at the last.” This is a sobering thought when you consider the United States to be probably the wealthiest country and one of the most productive in the world.

FF does not come easy. Achieving it does require some sacrifices and an element of risk.  It’s human nature to avoid taking risks and who likes to make sacrifices? After all it’s easier to spend your earnings or maybe put some money away in a safe and insured account where your hard earned money is guaranteed a fixed, albeit a very low but stable return. This then, is the great paradox in achieving FF in today’s world.

It is virtually impossible to avoid all risks at one given time, because no matter what course is taken with investment dollars, there will always be a certain degree of risk involved. The real estate investor has to be prepared to take calculated risks and be willing to enter into the unknown, if they truly want to achieve FF.

To state the problem without at least suggesting an answer is unfair. Next week we’ll talk a bit more about this, about why we are averse to taking risks even when FF is our highest desire. Understanding why can be key to recognizing where your hesitation comes from and gives you a chance to conquer it!

Green Up Yourself and Grow Faster

May 20, 2016 by  
Filed under blog

I don’t know about where you live but here in Utah Spring has finally sprung!!  How wonderful it is to see everything turning green and growing.  For me, I find that Spring stimulates me to grow more green stuff. I am actually talking about growing more money but more than that, I want to grow myself in many parts of my life.

As I see more and more people out and about, running, jogging, working on their lawns and gardens or fixing their houses, it pushes me to set more goals for myself.  So my theme for this week is: Let’s get out there and make our lives blossom not only financially but in how we live our lives.

Let’s use this spring time to increase our activities and grow.  We can start by simply getting out there and making this happen.  Like driving through more neighborhoods looking for properties that need a face lift. Look for beat up properties, especially the ones that might have a for sale sign posted by owner or realtor. It might mean that a house just needs the front painted or a beat up lawn needs to be re-seeded and have a few great looking trees or flowers planted with a nice little white picket fence to surround it.

If the house is beat up and shabby plus it looks vacant, take the time to find out who the owner is because it’s quite likely that the owner is a motivated seller. I’m not saying that you should not use the internet to search for properties, because that is a very fast and efficient way to find properties, but sometimes it can be so super refreshing to get out of the office or house and drive around neighborhoods. You may find things you would not have found online as well.

Also, don’t forget to do a ton of asking around … you know, that thing called networking.  Do it in every circumstance you can think of. At parties or over lunch or at work, be sure to ask people if they know of any properties in their area that are for sale, especially houses or apartment buildings that look like they are in disrepair or have sellers that are anxious to dump the property.  You can leverage yourself, big time, by tapping into other people’s brains and connections.

And while you are at this ‘greening up your springtime’, be sure to set some personal goals for yourself, whether it be for better personal health or to be a better parent, friend or spouse.  Let’s all make this springtime thing a growing and greening of ourselves and those around us!!

« Previous PageNext Page »