The Advantage of Honest Answers

There are certain questions that most of us hear nearly everyday. They go something like:

• How are you doing?
• How are you feeling?
• How’s everything in your life these days?

And what is our usual response?

• I’m doing fine.
• Oh, I feel pretty good.
• Things are moving along.

The answers that you normally don’t hear are:

• Not too good today.
• Oh man, I am feeling very depressed.
• Things are not going well in my life right now.

In our polite society we usually don’t dump our problems on others, not even our relatives or close friends. In most situations, that’s a good and considerate thing.  But sometimes it might be a good for you and me to open up and tell the full truth, voice the negative or tough things that are going on in our lives and in our minds. Why? Because many times friends and relatives can be a big help.

It’s kind of strange that it’s perfectly acceptable in our society to tell someone that you have a cold but it’s a no-no to tell a friend you’re feeling down or depressed. Both conditions are real and there are treatments for both.

Recently, I met a longtime friend who said in the usual manner, “Hey Mark, how are you doing?”  Suddenly, and to my surprise, I found myself telling him the truth, saying “Man oh man … I’ve really been depressed lately.”

Next thing I knew I was quickly apologizing for dumping my personal problems on him. But to my surprise he was not taken aback by my honesty but rather told me in turn that he too gets down and depressed.  I was surprised to hear him say that because he always seems to be on top of the world and so very happy.

He then gave me some very good advice on things I could do to pull myself out of my slump and in a very short order I began to feel better.  The advice he gave me were things I already knew but had slowly stopped doing. Things like eating foods that improve your mood and taking supplements like 5HTP and Saint John’s Wort. And just as important as all the rest … pushing myself to stay busy and keep connected to friends and relatives.

I think because I am a healthy and very wealthy person, people look at me and think I am always upbeat and positive and never get depressed.  But, many times the problem is my advantages in life also make it difficult to feel motivated–I don’t have to work and I don’t have to do anything if I don’t want to. Even though that might seem to be a very good thing, it can be such a bad thing and can almost drive you crazy.

We all need to keep busy. We need to stay engaged and connected to friends and relatives. We also need challenges which mean constantly setting goals for ourselves and staying on track as we pursue those goals.  Yes, I am preaching an old subject to you but I am very definitely preaching to myself! Because we all need a little reminder now and then. And to get that, sometimes all it takes is giving a friendly question an honest answer.

Three More Buried Secrets

A secret is some bit of knowledge that is kept from someone or many someones. Last week I spotlighted those truly terrible secrets … the ones we hid from ourselves! When you are trying to accomplish something that is challenging or simply hard to stick to, you need every tool you can get your hands on. But so often, we have been given these tools and then hide them away. Why is that?

Well, if you read last week’s post, you now know (or have been reminded!) what some of the most important ‘secrets’ are to accomplishing both small and large goals. But wait … there’s more! Let’s take a look at some of the other great ‘secret’ tools you have available to you to make your dreams happen!

No. 5: Establish a routine and keep with it until your routine has truly become a hard and fast ‘habit’!

This is a big one. Form the right habits and you can change your life forever.  You know as well as I do that this is true whether the habit is a good one or a bad one.  Scientist have determined that it takes anywhere between 21 and 66 days to form a solid habit, depending on the person. You and I must stick with the routines that are leading us toward our goals long enough that they become rock solid routines.  If we do that, we’ll see that sticking to our plans and reaching our goals will become easier and easier.

No. 6:  Break down those big goals into what I like to call ‘bite-sized’ steps.  For most of us, and I know for me, if I don’t break it down into small goals or bite sized tasks, those big goals can break me down. Why? Because those big, long term goals can overwhelm the mind and shut a person down. It’s easier to do the small stuff and they eventually add up to something big!

No. 7: Set up a reward system for yourself. That is, when you hit your goal and maybe even along the way as you take those bite sized steps or reach intermediate points or milestones of success, take time to celebrate your victory. You can reward yourself with a special night out on the town or a huge getaway vacation to an exotic place. Whatever it is, make it super special and something that you will always remember.

That is a long list of ‘secrets’ you can use to help you reach your goals. But one last thought–If you don’t hit your goal or you miss a deadline, don’t be too hard on yourself.  Remember, some of the most successful people on the planet had many, many failures as they pursued their big goals.  It really is okay to fail–almost everybody does at some point or another. The thing is, failure can lead to even greater successes, so if you fail and fall down be sure to get right back up, reload and reset and keep going!

 

Big Buried Secrets

Ok … so do you want some sure-fire ways to help you set big goals (and/or small goals) and be able to stick with them until you succeed? Well, they are out there just waiting for you. I’m going call these methods ‘secrets’ although as you read some of these you may say ‘Hey, I already know that one!’ so for you it’s really not a secret.  Right?  Well, you may be right and it may not be something new to you but if you are not doing it, then maybe it really should be labelled a ‘secret’. A secret you are keeping from yourself.

For example, you probably have heard the first two secrets I have for you. But do you do them?

No. 1: You must write your goal down! There is a kind of magic that happens in our brains when we make a printed record of specifically what we want to accomplish. It makes it more real to us and we feel obliged to follow through. Just because they’re written down.

No. 2: Be sure to put a deadline or time limit on your goal and write that down too.  Without a deadline, you can put off forever the tasks that will move you forward and then you’ll never get close to that goal. Knowing you have a deadline gives you a kind of mini-goal and something to aim for.

Does that sound familiar? Sound like great advice? Yes? Well … do you always employ them?

How about ‘secrets’ that some people might be aware of but don’t spend enough time doing?

No. 3: Take time to carefully visualize your goal with as much detail as you can imagine.  That visualization should also include an image in your mind of actually accomplishing your goal. Think about how you are going to feel when you arrive at your journey’s end. Run it though your brain numerous times until it feels real.

No. 4: Tell other people about what you have set out to do.  Ideally tell people who care about you and understand and appreciate what you’re aiming for. Ask these people to remind you, encourage you and cheer you on as you make progress towards your goals.

This fourth step can be a huge help.  Even if they don’t ask how you are doing or give words of encouragement every time they see you, your seeing them will often remind you that they know what you are shooting for and you certainly don’t want to disappoint them, not to mention failing yourself, of course.

So I am guessing that, for a lot of you, these tips aren’t new ideas but if you aren’t doing them, they might as well be deeply buried secrets. They are all simple to do, take very little effort, and can increase your ability to persevere and reach those goals, both big and small! So dig these back up and use them! It’s your own little gold mine you can use to pave your way to all kinds of success.

There is even more good news … those are not the only ‘secrets’ out there. Next week, I will talk about more tried and true secrets to making your goals a reality. Get yourself a head start by writing down, setting a deadline for, visualizing and telling others about your goal. Because the biggest secret is that you can’t get what you want without going for it!

 

 

Thoughts of Napoleon

Last week I started telling you the great story of Bunker Bean who, when he began to believe that he had been Napoleon Bonaparte in his previous life, made dramatic changes in his thinking. It is an example of how our brains can help us make drastic changes in our behavior and in our lives. Good ole former super loser Bunker Bean started making huge changes in his behavior and it brought him huge rewards.

To begin with he decided he should learn more about this great man that he had been. The very next day, after he had finished his duties where he was working as an assembly line worker, Bunker went directly to the local library and checked out a book on Napoleon Bonaparte.  He took it home and stayed up late into the night reading it cover to cover.

The day after that he repeated the process and did the same the day after that and the day after that, until he had read every book in the library that told about Napoleon, the emperor of France.  The next morning Bunker looked more closely than ever at his situation on the assembly line. “Why,” he asked himself, “am I, the former Napoleon, in such a lowly position? Why, when I was a general, I had thousands of people at my command–and now I’m the least of the workers here.”  Bunker began to look around him to see what he could do to change his situation, to change his status, to rise above the other lowly workers at this plant.

The night before he had read about how Napoleon won all his battles in his tent, before ever taking the field. “By darn,” Bunker said to himself, “if that approach was good enough for me back then, it’s good enough for me now.”  So during the long and tedious hours on the production line, and in his spare moments in the evening, he put his mind to work, planning his battles there in his “tent”.  He soon had a game plan, an approach he was sure would work.  He had an approach that would improve his situation at his job, which would cause his superiors to notice him. He saw several specific changes that could be made in the assembly line that would speed up the process and thereby increase production.

But thinking up the ideas wasn’t enough. Bunker remembered reading that with Napoleon, “to think was to act!”  He went immediately to his supervisor and told him of his ideas and of the benefits they would bring.

The supervisor was skeptical. “It will never work,” he said.

“Just try them for a few days,” Bunker begged.

Finally the supervisor relented. Three weeks later the supervisor was given a raise and a promotion for his great cost-saving improvements.  When he was asked to recommend his replacement, without hesitation he suggested Bunker Bean.

Bunker Bean had begun his climb up the corporate ladder.  Within two years, to the absolute amazement of everyone, Bunker Bean was the president of the entire company–which was worth over $100 million.

Probably the man who was most stunned was Bunker’s old friend, the spiritualist medium.  But Bunker wasn’t surprised at all.  He knew that in a former life he had been Napoleon Bonaparte and therefore knew that he had the power buried within him to be and do whatever he wished.

Bottom line here is what we all can do in our own lives if we plant and keep the right thoughts in our brains and really believe in our dreams and goals.  We truly are or can be what we think we are.

 

The Risk and Reward of Living Large

Mitt Romney, former GOP candidate for President recently made some powerful comments to graduating students at Utah Valley University. He advised the students “to experience a fulfilling, purposeful life. One thing you’re going to have to do is live a ‘Large Life’”. What great advice. That is something all of us need to pay attention to. We need to go out and do it and do it our entire lives.  So many times we hesitate to ‘Live Large’. Why? Because most of the time we fear that we will fail.

“Failures don’t have to define who you are,” Romney had gone on to say, and of course we all have had failures.  He further stated, “Through all my occupations, I have experienced successes and failures. I am asked what it felt like to lose to President Obama. Well, not as good as winning. Failures aren’t fun, but they are inevitable.”

How about you, the reader?  Have you racked up a lot of failures or just a few?  It seems to me, from my experience, that the number of failures I’ve had is in direct proportion to how large I’ve tried to live.  So, yes, I’ve had a ton of failures but some of those have led to some huge successes. And the reason for those successes was that I learned so much from my failures.

I remember one huge loss that I learned a valuable lesson from which lead me to some very, very large successes.  What happened was I decided to lend a large amount of money with a restaurant as collateral.  Big mistake on my part! Why? Because I don’t know much about that kind of business so if it failed I certainly wouldn’t know how to run it. And guess what? It did fail and I lost almost all of what I had loaned.

What did I learn?  Well first I found out that restaurants have a very high rate of failure and second, I learned that I shouldn’t stray from what I know best.  Not that I shouldn’t ever loan money but if I do, I should loan it on assets that I understand as well as being on improved real estate which, ideally, would also be income producing.

I forged ahead and made many millions of dollars’ worth of loans that were backed up by real estate and was very successful.  Later I discovered that I could do even better by owning the right kind of income producing properties. I also, very successfully ventured into the development of condos and warehouses, where the profits were even bigger although they did come with increased risks but in that case, those were risks I was willing to take.  And much, if not most of that success, came from lessons learned from my failures and my trying to ‘Live Large’.

Next week, I want to address something else Mitt Romney said at Utah Valley: “Your life will be larger if you value and nourish friendships.”  Those are also some very poignant words.

How to Live to be 142!

You no doubt have heard the rumor that all of us humans will die someday. Of course, I don’t believe every rumor I hear and this one sucks. I just don’t want to believe it! So maybe I’ll call for a huge boycott. You know, get a bunch of us older people together with big signs saying “We are boycotting death!” or “We refuse to die!” or “Death sucks and we won’t participate!” Well, it’s a nice thought but it probably won’t work. Oh yes, if we did it in front of a TV station they might put us on the news so everyone could get a big laugh out of it, but I don’t think that will help us avoid death or even prolong our lives by much.

However, there are things we can do to postpone the inevitable and live longer, stronger and in great health. In fact, there are some researchers that are “inching toward the seemingly impossible: a cure for aging,” according to the February 23, 2015 Time Magazine article. Maybe you saw that issue. On the cover was a picture of a cute baby with the headline “This Baby could Live to be 142 Years Old”. That headline certainly grabbed my attention and yes, I read every word of the several stories covering what the researchers have discovered and what we can do right now to postpone our own demise.

The main story was about “Mouse UT2598″ and the discovery of a compound called Rapamycin which seems to dramatically slow aging, at least in certain cells. If this compound works for humans it could increase lifespan to around 142 years. The research going on at the Jackson Laboratory and the University of Texas Health Science Center in San Antonio, is in its early stages and researchers don’t recommend that humans start popping Rapamycin pills just yet says David Harrison because there are some down sides they have discovered at this point in their research. But the good news for me at age 71 is that they have seen that, “Rapamycin is also neat because it works even when you start quite late in life”.

So if this compound isn’t for humans just yet what can we do about it now? The obvious answer, at least to me, is to do everything in my power to stay healthy, in hopes that science figures out how humans can safely take Rapamycin. And the most effective and proven ways to do that is by eating the best foods which, according to the researchers in the Time magazine article include fish, fruits, veggies and extra virgin olive oil as well as calorie restriction, periodic fasting and consistent exercise with maybe a bit of yoga and meditation.

Do all that and you will have a significantly better chance to live longer and maybe hang in there until they perfect Rapamycin for humans. If doing all those things that you can do and should do sounds like a tough challenge, then listen to the words of William James. What he said many years ago has helped me to better my life when I could see that I needed to make changes and knew that it was going to be a big challenge. “If you change your mind, you can change your life”. I have that burned into my brain and hope you do the same.

 

 

 

The Discipline Hurdle

If you truly want to be wealthy then it’s virtually a must for us average humans to do it through wise investing. But you might say, “Hey, what about the person who doesn’t have any money to invest, even in the smallest property?”  So the question becomes, how can you begin without a dime to your name?  Well, you build a nest egg. Of course, that begs the question, how do you get that beginning nest egg to start your investment program?

Most of us know that the traditional way to build a nest egg is through savings.  For many people that’s a big fat “ouch!” When you take a close look at the average American family, you see that the rate of savings has been in a steady downtrend the last few years.  When someone is asked why they don’t have any savings they usually respond with something like “I can’t afford to put any money aside. I barely break even. By the end of the month, nothing is left over.”

The people that say this are usually the same ones that, even after they get a raise, nothing changes. They are forever stuck at breaking even at the end of the month or, worse, going into debt.

So what’s the real problem here?  In a word it’s usually discipline, or more accurately, the lack of discipline.  When you are saying to yourself, “I just had to buy that new coat (or dress, suit, latest and greatest cell phone, computer, new car, etc.)”, or “We’ve been scrimping so long we deserve to treat ourselves to a very nice night out on the town or a vacation,” you are also saying that you’ll never be wealthy and are likely to be a ‘wage slave’ your entire life.

In order to be able to start an investment program, you must be tough on yourself and fully realize there is a huge difference in what you ‘need’ verses what you ‘want’. Once you have arrived at the point of understanding that, then you may well be on your way to great riches and maybe even wealth beyond your wildest dreams. That is what happened to me.  Unfortunately I can’t remember who or what book taught me the big difference between need and want, but once I learned that lesson and applied the needed discipline, I was able to save thousands of dollars in one year and that launched my investment program.

Of course, once you’ve built up that “nest egg” you must be wise and put it to work with great care.  When I began my investments, I was in a big hurry so I used a lot of OPM (Other People’s Money) as well as sweat equity which propelled my return on investment by leaps and bounds. I’ll talk more about just what worked for me in next week’s blog but in the meantime, consider the fact that your biggest hurdle to the wealth and financial security you are craving is one less vacation a year, one less shopping spree a month, one less night eating out each week and one less fancy coffee each day. When you think about it, that really isn’t too much to ask of yourself. Not for the chance to make a fortune.

After 37 years the same FINANCIAL FORMULA STILL WORKS

I was going through a bunch of old documents, notes, and papers the other day and came across the very first article ever written about me in the local newspaper.  The headline read “So Here’s How to Go About Making that First Million”. That was in the Salt Lake Tribune clear back on January 18, 1978

They quoted me as saying “…the best way to get rich with someone else’s money is through loans–mortgage and real estate loans.”

Now we fast forward 37 years and guess what?, That old method of getting rich, for most people, is still the best and most reliable way to make your first or second or fifth million. I did however get a big kick out of reading my example and some of the numbers of how you make a 100% return on a simple investment, such as a small house.  It was the small numbers that made me smile.  I had been quoted as saying:

“If you have $5,000 to put down on a $50,000 house and you borrow the other $45,000 to purchase the house, you can compound your investment by 100% if that house increases in value by $5,000 over one year”.

Most casual readers would quickly say or think, “Wait a minute, where can you find a house that you can buy for 50k?  They don’t exist anymore.” If you say that, of course you are right about finding a 50k house but that doesn’t mean the same formula used back then won’t work today.

That financial formula for great wealth is still the same today, but you do need to add something–simply a zero to each of the dollar numbers.  It’s the ratios that give you the 100% return on your money.  You are right if you are thinking that 10% increase in value won’t just happen by itself though. That is unless you are really lucky and we have 10% inflation in one year. But don’t count on that. However, you might be able to buy a house at a real bargain price then make cosmetic improvements which costs money and or your time and efforts but that may well increase the value by 10%.  Of course with the additional money you put to fix it, it may reduce your overall return to 50% or 75%.  But still, those kinds of returns will almost certainly make you a million or multi-millions over time.

Go ahead and google “compound table calculator” and see how quickly 50% or 75% returns increases $5,000 dollars into a million dollars! You may be shocked; especially what it turns into in 15 or 20 years.

 

 

 

 

The One ‘Dead’ Thing That Makes You LIVE More LIFE!

Most of us when we hear the word “dead” we automatically think it’s something real bad, and many if not most of the time it is just that. But there is one use of the word “dead” when applied to your life that can and does add much more ‘life to living’; that is when it’s linked with the word ‘line’, as in the word ‘deadline’.

The origin of the word deadline is very interesting. It came about during the civil war when prisoners were surrounded by barriers or sometimes just simple lines drawn in the dirt. If a prisoner crossed over these, the guards we under orders to shoot them dead! These boundaries were called deadlines.

Now deadlines are used to make the world a more organized and efficient place. They force us to push ourselves a little bit harder to do more and be more. Think about this: If none of us ever died then we probably  would not even have a clue why anyone would want to set time limits or deadlines on themselves, since time would not be much of a consideration or may not even seem to exist, at least when wanting to get things done.  Why? Because we’d never run out of it.

But, of course we all have a limited amount of this thing we call time (remember, the average person lives less than 30,000 days or 720,000 hours) so it’s important to use it wisely and efficiently. Deadlines help us do just that.

Think what the world would be without deadlines. What if we didn’t have deadlines for any or all of the following?

1. Time to start or finish work.
2. Time for school to start or end.
3. Response time on business deals or real estate offers to sell, buy or close a deal.
4. Court deadlines for filing document.
5. Departure or arrival times for airlines, trains or buses.
6. Times or dates by which we want to accomplish goals that we’ve set for ourselves.

So my message for this week, and really a message for a productive and more satisfying life, is this—Always set goals for yourself and be sure to set those deadlines as well so as to push yourself to use your time wisely and more efficiently.   But don’t shoot yourself if you step over the ‘deadline’ a bit. Just re-boot and try again.

 

 

 

It’s About Controllable Assets

I have a few more insights to share with you, hatched from Jeff’s “book report” on my book. On Addendum B–“When a Billionaire Speaks, I Listen” he commented on Curt Carlson’s advice. Jeff said, “Interesting that Fortune Magazine would say over 30 years ago that we’ve seen the last of the billionaires. But, that may be the typical thought of someone with limited thinking or a small world view.  While the oft-quoted statement by the commissioner of the US Patent Office in 1899 said ‘everything that can be invented has been invented’ may not be correctly attributed to him, it tells the same story. Carlson’s advice to get good people, then delegate is certainly right. The big wealth comes from spreading yourself around or at least by using ‘Other People’s Money’.  I always remember Aristotle Onassis, the Greek shipping magnate who married Jackie Kennedy, saying ‘borrow as much money as you can and always pay it back on time.’”

Hey Jeff, that’s some good stuff from your book report!  I think I will have to give you an A+.  I would add to Onassis’s comment about borrowing money with a very critical qualifier.  Yes, borrow as much money as you can but borrow it to purchase the “right kind of stuff” and by the right stuff I mean use it to purchase assets that appreciate in value and ideally assets that also provide you with cash flow returns as you watch and wait for their value to increase.

Yes, many stocks fit those parameters but for my money the assets that have worked by far the best for me have been income producing real estate (and that’s coming from a former successful stock broker.)  Why real estate rather than stocks?  The biggest reason is because with stocks you cannot control the company or the ups and downs and whims of the stock market. With the right kind of real estate you can at least have some degree of control over the property plus all that money you borrowed will, in the long run, be paid back by your tenants and if you have done it right, you will be collecting cash flow along the way.

So the take away here is that Onassis was partially right when he said borrow all the bucks that you can and always pay it back. But I say borrow all the money you can to buy appreciating assets that you have at least some control over, collect cash flow along the way and let your tenants pay off the money that you borrowed! I bet you can see just how smart that is!

 

 

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