Death is Part of Life

 I got a very shocking and sobering email from the wife of a very dear friend a few days ago, a good friend, who is a doctor and in excellent health. His urine had turned very dark and his skin was jaundiced. At the hospital he found out he had a tumor in his bile duct that leads out of the pancreas. Not good! A few days ago he had a very complicated 9 hour surgery in which they took out part of his pancreas, stomach, duodenum and the gall bladder. It was shocking to hear this since my good friend kept himself in great shape. He has, from all his friends and family, wonderful support and encouragement. We know he’s a tough guy and are hoping and praying he’ll be ok.

Quite naturally this got me thinking about my own health and that inevitable end of the road for myself and yes, every one of you who are reading this blog. “Ouch,” you may say. “I don’t want to think about that.” But we all do—and we should—only there is a good way and a bad way to think about death. One way helps you and the other hurts you.

In the book “Super Brain” Deepak Chopra and his co-author Rudolph Tanzi write “If you are afraid of death, it is bad for your body– not because death looms so darkly but because the fear of anything is toxic.” They go on to say “Some cultures, such as Tibetan Buddhism, offer extensive preparation for death and a highly detailed theology of various heavens and hells.” Which they use to help people face and accept their own death.  The authors say the path to making peace with death might look something like this:

1. “I don’t think about death. It’s pointless.”
2. “The main thing is to live your life right this minute.”
3. “Anyway, I secretly don’t believe I will grow old and die.”
4. “To be honest, I don’t think about dying because it’s too scary.”
5. “I’ve seen death of a friend, family member, or pet. I know I have to face it someday.”
6. “I am beginning to feel calmer about the whole issue. I can look at death without running away.”
7. “Dying happens to everyone. It’s better to approach it calmly with eyes open.”
8. “I’ve felt the first serious twinges of mortality. It’s time to face it.”
9. “I find I am actually interested in what death is all about.”
10. “It’s possible to embrace dying as a natural stage of life–and I have.”

As you the read through these stages of thinking about death, try to think back to when you were young (assuming that you are no longer in that category) and notice how close these 10 stages may come to your own thinking back then and now. Have your thoughts changed dramatically?

The bottom line is you don’t need to fear death. It will come so fearing it is rather pointless. Instead, focus on the now, on what you are doing every moment of your life, filling it with purposeful, gratifying thoughts and activities. Living a good life makes fearing death unnecessary.

Next week, we’ll talk a little more about what Deepak and Rudolph have to say about keeping your mind young so you can get the most out of every moment of your life.

 

A Great Means To a Great End

A few days ago I was at Wal-Mart when a very pregnant lady followed by a little girl kind of cut me off with her shopping cart. She apologized and I said “Hey there’s a little girl following you and it looks like another kid is right in front of you”, speaking of her unborn child. This made her laugh.

As I checked out, this same lady with her daughter and husband ended up in line right behind me.
I overheard the husband and wife quietly discussing that they couldn’t afford to buy a pair of gloves that they needed and this on a very, very cold day. So as they talked I casually moved the little bar that separated their purchases from mine, putting about $50 or $60 dollars worth of items on my side.

A moment later, as the casher scanned the items, the mother looked up and said “Wait a minute. That’s our stuff that she’s scanning!”  I said” I know it is and I am going to pay for it.”  She then had a very puzzled look on her face.  I quickly added “It’s ok. It’s just a random act of kindness and I really want to do it.”

After gathering herself for a moment, the mother said in a very emotional voice “Nobody has EVER done something like this for me.” and then began to tear up and so did I.

The clerk had overheard it all and said “That was so very, very nice.” I replied “Thank you but in a way it’s a bit selfish since it make me feel wonderful and I’ll feel that for a very long time!”  My impulse actually had more to do with me thinking that they really needed help but the wonderful feeling I got was great extra benefit.

I’m sure you have had similar feelings as you go out of your way to help others. My hope is that we will all step up and do it more and more. $50 worth of goods may not seem like much in the big scheme of things but it doesn’t really matter how much you impact others, just that you do. It will be something they aren’t likely to forget and will forever give them a warm, grateful memory. Knowing that just adds to that wonderful feeling you’ll get to carry around with you as well.

One of the reason’s I decided to make a fortune was that I figured the more financially successful I was the more I could give to others. Money and wealth should be a means to a much greater end–that of giving back. Paying it Forward.  By helping others everybody is a winner and that is the way the world should and could work if we all do our part.  Let’s all go out and do it!

P.S. I’ll have more in later blogs on clues, formulas and methods to making millions and helping others as you go.

The Secret to a Great, Happy, and Productive Life

You can greatly enhance your life no matter what age you are by doing something very, very simple. What is this simple cost free secret? Well, it’s not so much a secret as something most of us forget about and stop doing as we age. I am talking from personal experience, especially now as I am nearing the BIG 70!!

Ok, so what the heck is this big secret?  It’s simply “Action.” That’s right it’s Action and Movement. It’s getting up off your butt both physically and mentally.  Deepak Chopra and Rudolph E. Tanzi in their wonderful book Super Brain give some very powerful evidence that physical exercise and movement along with environment enhancement stimulates the growth of new neurons. And this happens at any age!

You, no doubt, have experienced a big lift in your mood, on days you were kind of of feeling down and out, by merely taking a walk or even just getting up from watching TV and taking a drive in the country or through your own or a new neighborhood.  I know if I push myself to take even a short hike in the mountains or on the beach it gives my brain a huge mood boost. Ditto by doing a few push-ups, sit ups or jumping on the stair master for 15 or 20 minutes

There is a great quote in “Super Brain” that I love. It says it all–“Inertia is depression’s best friend.”  Simple but true.

So, remember, action is the KEY!  Keep moving and make a point to do so every day.  Let me give you just a few of the benefits you’ll get from being active.And  I hope you will add to this list the things you’ve learned from your own experience.

BENEFITS OF ACTION AND MOVEMENT—

• Feeling increasingly better the more you stay in motion- and that is for physical and mental activity.
• Getting a whole bunch of stuff done—financially, socially, spiritually, helping others, etc.
• Overcoming depression and bad moods without drugs.
• Losing weight.
• Staying in shape and having overall better health.
• Helping others by your example.
• Slowing the aging process.
• Increasing brain cells and brain activity.
• Greatly reducing the chance of dementia.

Do think about action and movement and please challenge yourself to do more in that direction. You’ll see how much difference it makes to your happiness, your mood and your satisfaction in your life.

The Mistake of Not Making Mistakes

We are all afraid of making mistakes to some extent. Our society has us thinking that mistakes and failure are shameful things. The strange thing is, we learn best by our mistakes yet the fear of making them often keeps us from taking action. So how are we to learn much of anything if we aren’t out there making those mistakes?

When you have big goals, like creating a large personal fortune, starting a business or even starting a family, you may keep yourself from taking the first step because of the fear of making a mistake. The thing is, the real mistake becomes not taking that first step!

You need to not only accept that you will make mistakes but look forward to seeing what you can learn from them. When you have big goals, you will need to become dependent on your ability to overcome and learn from your mistakes. That is the only way you will be able to move forward and accomplish what you are after.

So go ahead, make a mistake or two. Or ten. Or twenty. It’s perfectly normal and it means you are trying something rather than doing nothing!

Re-training Your Habits

On January 4th I posted a blog about the great book called “The Power of Habit” and how it can change people lives for the better. The author, Charles Duhigg makes so many excellent points showing how habits are formed and how to change habits that you don’t like in yourself and are not good for you. You see, we all respond to certain cues or triggers which set us off to follow certain routines which then give us rewards.  If we want to change a habit we should think through and plan out, in mind and on paper, what our “new routine” is going to be when we face “the cue” again and then follow that new routine which also needs to have a reward attached.

Duhigg uses this example: At 3pm every day he eats a chocolate cookie. This habit has an obvious reward—the cookie. To change this he plans a new routine so when he is hit by the cue or trigger—the hour of 3pm—he takes a walk around the office building instead. This starts to form a new habit.  To make the reward more rewarding, if he can find a friend or co-worker to do it with him. Having someone to talk to adds to the physical exercise reward with this chance to socialize.

If you do this activity and reward replacement over and over again until you hardly even think about it, then you have a new habit!  So, if you have habits you’d like to change, take some time to think of new routines that may interest you that you can attach to these unwanted habits so when you are hit with the cue or trigger you can start a new and healthier habit. Try it. You will love it because it really works. Even though it sounds simple, it’s obviously not going to be all that easy because you will be facing a strong instinct to fall into the prior habit but if you stick with it you will end up with a new habit and soon you won’t even give it a second thought.

Making Friends with Your Inner Voice

Someone once said if you want to change your life, you need to change your thinking. Yes, most people have heard that and agree but changing your thinking is not an easy task. There are, however, some subtle but very powerful forces inside your brain that can work for you or against you. Sadly too many people don’t recognize it or at least if they do they don’t know how to direct those forces for their own huge benefit. This powerful force has various names and it can be the best thing in your life but it also can be very sneaky in sabotaging you.

This force is often called your “inner voice”. It also has been called self-talk or even your inner chatterbox. Some would say it’s just your sub-conscious. Others would say it’s God talking to you. The good news–or should I say even great news–is that regardless of the source, many super successful people have learned how to use and direct that inner voice and it has enhanced their life almost beyond words. Using and directing your inner voice to improve your life doesn’t happen overnight and even after you become very good at self-talk directing, you need to stay ever aware of that chatterbox inside your head and continue to step in and keep the self-talk positive so you continue to move toward your life goals.

We talked about this a bit last year but I thought this was about the time of year we could all use a reminder of this. We set goals at the beginning of the year. We’ve taken the first steps, perhaps made some progress but it is about now that the hard parts are coming up or we’ve hit a few snags and are starting to get discouraged. Remember, that negative talk is just your inner voice trying to talk you down because it’s getting difficult. But hey, the most fulfilling accomplishments are those you come to after overcoming the hard stuff, right?

So turn any negative talk into positive, supportive self-talk. Think of that inner voice as your cheerleader, the voice that will keep you going, remind you of why you are doing what you are doing and will help you get through the more challenging tasks. It’s always easier to move forward when you have good, positive friends along. Why not make your inner voice one of those friends?

 

Steps Towards Confidence

The last few weeks we’ve been focused on creating your fortune through real estate, leverage and compounding. You’ve seen the numbers. You know it could work. But have you taken your first steps?

I know the steps you have to take sound daunting at first but they aren’t that difficult at all. Things we’ve never tried before tend to seem huge and perhaps impossible but it’s only because they are unfamiliar. So try this … go ahead and go through the 2nd and 3rd step–start building capital and making low ball offers on property. Remember, during these steps, you aren’t committed to buying just yet. Putting away money is easy and it’s a great idea no matter what you do in the end. And making low ball offers … well that’s just chatting with someone. The thing is, once you’ve starting talking to property owners and realtors, you’ll realize it’s actually pretty easy. Then when someone does accept your offer, you have only one more step to take.

Just starting the process by putting money aside and making offers will do so much to boost your confidence. By the time you are ready to jump into step four–which is just an inspection and crunching numbers to find out if the property will get you the return you want–you’ll be feeling pretty good because of your successes with the previous steps.

And don’t worry if you go through Step 4 and don’t end up with a property. Just go back and repeat Steps 2 through 4 and do it over and over and over again—don’t stop. Each time you do this, you’ll have learned a lot just by going through the process. Pretty soon, the process will not seem daunting at all. It will be exciting and motivating! So go out there now and knock yourself out!!

Crunching Numbers

Okay, so we’ve gone over the first 3 big steps you need to take towards creating your fortune. I did want to reset the order a bit so if you are just starting, start with writing out your goals. These will keep you energized and motivated. Step #2 will be building and acquiring your beginning capital; Step #3, start making low ball offers on ‘dirt bag’ properties and get one legally tied down.

So now we come to Big Step No. 4 …

Let’s say that after you’ve made about 2 dozen very low offers, you get one back that is accepted. So now what do you do? Well, there are three things …

1. Conduct a very thorough inspection

2. Do your calculations as to the cost of the fix up or face lift.

3. Calculate your overall investment and potential profit to see if it will give you the return that you need.

Let’s say there’s a small house that was listed at $187,500. You offered $144,000 but received a counter offer of $160,000 which you are happy to conditionally accept. (Hey … they were motivated sellers since the house had been on the market for over a year.) After inspection you’ve been able to determine that $16,000 plus your hard labor over about 6 months will complete the face lift and the bank has agreed to finance it with 20% down ($32,000). You check for comparable properties in the vicinity that are in really good shape (go to Zillow.com to do this) and estimate you can sell it for, say, a net of $204,000 dollars.

Now you crunch the numbers to see if going through with this deal meets your “rate of return” goal.

$204k less your purchase price of $160k and less the money you put in to fix it would give you a profit of $28,000 dollars. Here’s where the magic of leverage comes in—you used $32k as a down payment and the $16k to improve it for an out of pocket investment of $48k. Even though you improved the property value by 27.5%, the return on your money, the money you used to invest in this, would actually be 58.3%. And if you borrowed the $16k your return on your money would be even higher.

So does a 58.3% rate of return in 6 months or so give you enough compounding? Go check a compounding table and see what would happen to that 58.3% in a few years if you keep doing this! Are you getting excited? If so, read my book “The Next Step to Waking up the Financial Genius Inside You” to really get you on track. In fact, I will give the first 10 motivated readers the book for free! I’ll even pay the shipping. Just write to me at freebook@reincome.com with your shipping address so I can help get you moving towards creating your fortune.

The Power of Leverage and Compounding

So now that we’ve gone over the first 3 big steps to building your fortune, it’s time to get to the very important Big Step No. 4. But before I lay that out, I thought we ought to talk about the power behind what you are about to do, the power of leverage and compounding.

My first introduction to leverage and compounding was as a stockbroker in the 70’s. I wanted in the worst way to make a fortune and do it quickly. I knew that there were seemingly ordinary people making millions of dollars in a matter of a few short years. What I didn’t understand was how that was possible. My thinking was stuck in the mindset of trading my hours for dollars and with only 168 hours in a week even with a decent hourly rate of $25 it would take 20 years to hit a million and that’s with the ridiculous assumption that I would not spend a dime or pay taxes!

Then I was introduced to leverage and compounding by Larry Rosenberg, a new brokerage client of mine and soon to be mentor. At that point I was becoming quite adept at bond trading and was shocked early on when I figured out I could make 100% return in a matter of weeks. I could buy $100,000 worth of bonds with only $5,000 or my own money, borrowing the rest from the brokerage firm. That’s using leverage. So if the bond price moved up just 5% the bonds would be worth $105,000 turning my 5k to 10k! Eureka! I had just discovered a money machine! But the bad news is that I could just as easily lose all my money if the bonds dropped 5%.

Larry Rosenberg introduced me to a safer, more consistent and more controllable asset: improved real estate. With this you could make a 100% return in 6 months to a year and do it with consistency and very little risk. But what Larry made me see that got me super motivated was what a 100% return per year will do to even a very small amount of money. $1,000 dollars at 100% compounded return will grow to the incredible sum of more than a third of a billion dollars in just 35 years! Although a consistent 100% may be hard to sustain, I did it for a while and reached my first million net worth in 47 months with only a couple thousand dollars to start.

This may all just sound like numbers now but in the next few weeks I will go into more detail with specific examples of improved real estate deals you can make so you can put these powerful concepts to work.

Writing Down Your Goals

Since we’ve just started a new year I must say something about renewing and re-dedicating ourselves to our life goals. And there is one super strong and time proven aid I would strongly suggest you use to increase your odds of hitting your goals. It’s something I talk about in my book “How to Ignite Your Passion for Living” but I have another source to show you just how powerful it can be.

For Christmas my son David gave me a book called “The Power of Habit” by Charles Duhigg and WOW what a great book. Duhigg relies on scientific studies to dissect what it takes to form a new habit or dump a habit that you don’t like. In future blogs I want to talk more about “The Power of Habit” but for now I want to address one simple but profound Scottish study that is Duhigg addresses.

In this study a psychologist recruited 60 patients that just had hip or knee replacement surgery. Having personally experienced double hip replacement in the same surgery I know just how painful this kind of surgery can be. Most people don’t want to even move afterward, let alone start walking even though their rehabilitation requires it. This psychologist gave each patient a booklet after their surgeries that detailed their rehab schedule, and in the back were 13 additional pages –one for each week–with blank spaces and instructions:

“My goals for this week are ________________? Write down exactly what you are going to do. For example, if you are going to go for a walk this week, write down where and when you are going to walk.”

Patients were asked to fill in each of those pages with specific plans. After their rehabilitation period the psychologist compared the recovery results of those that filled out the pages and those that did not. Duhigg notes that “It seems absurd to think that giving people a few pieces of blank paper might make a difference in how quickly they recover from surgery.” But it did. Those patients that wrote down their goals recovered much faster than those who didn’t write down a thing.

The great lesson and a lesson that I’ve preached to myself and others for years is we greatly improve our chance of success many times over if we simply write our goals down!  Financial goals, physical goals, family and social goals … it works on all of them. I would also add that you shouldn’t forget to put down the date by which you want to accomplish those goals.

You can read more about goal setting and how written goals can help you in my book  “How to Ignite Your Passion for Living” which is on sale right now on my website.

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