Monthly Archives: January 2013

Our Perspective Establishes Our Beliefs

Our perspective does not establish truth, only what we believe to be true. Discovering truth comes to us as a result of pursuing truth. I don’t claim to know very much about very much. There are, however, things that I do know to be true as a result of my interaction with them. A good friend posted a statement the other day as follows;

“Some people will never get it and most of them think they already have it.” (Thanks James)

I believe this speaks to the Power of Perspective in our lives.

When Does A Perspective Need to be Challenged?

Finish this Story by Clicking here!

Why Is That?

I was reading a blog post from a friend today and he made an excellent point related to applying common sense. He used an example of the old phrase, “the more you spend, the more you save”. When in fact the truth is, “the more you spend, the more you spend”.  I laughed because we are a society of people who will believe the silliest things for the silliest reasons. We believe there are 870,000,000,000,000 stars in the universe but will still touch something that has a “wet paint” sign hanging on it.

I’m not sure if people believe something to be true because it came from an authority figure. ie; internet. (you can’t put something on the internet that’s not true) like the recent TV ad says. Or, do people believe something to be true because it lines up with and supports their personal values, opinions or fears. Perhaps it’s both.

This principle applies to real estate investing. A couple of the big ones are “You have to have money to make money”. No, the truth is, you have to know how to make money to make money! Another is “Investing is risky”. No, being reckless and under-educated or under-informed is risky! Still another is “money doesn’t mean that much to me”. No, if that were the case you wouldn’t be working 40-60 hours per week to be rewarded with a paycheck!

I think one of the most valuable tools a person can have is the willingness to ask themselves the question Why! WHy do I believe something? A good many times you will discover that you believe something that is false fo no good reason at all. I am going to close out this posting with another example.

People more likely to listen to their friends, family, news, and their own secret fears about why they can’t build wealth in real estate investing (people who have never done it themselves) before they will listen to a person who has become successful in it. Maybe its time to ask yourself the question. “Why is that?”

What about 2013?

This morning I was browsing through some old postings and ran across a couple of time capsules. One in the form of a newsletter article that was done on our investment story by one of the infomercial companies that sell real estate investing courses. In 2009 we had made, what we thought, was a pretty good dent in our investing business. Now at the beginning of 2013, 2009 seems like ancient history. Even though it has been less than four years since that story, it seems like we had just begun to scratch the surface back in 2009.

The second thing I found was a posting I had kind of forgotten about. It was written exactly one year ago today, January 8, 1012.  The title was “What About 2012”. https://livingtheredream.wordpress.com/2012/01/08/58/ I had been working with many who declared their desire to begin building an income producing business of their own all during 2011. By the end of that year, almost none had taken a first step. Now, exactly one year later, almost none have taken that first step.

I wonder on January 8, 2014 how many will have taken that first step?

Things Aren’t Changing….They’ve Changed!

Earlier this week I posted about becoming unemployment proof. Since then two more of my friends have lost their jobs. I’m not sure how to feel. I feel bad, but at the same time, these are times that call for new strategies for surviving and/or thriving. I have a hard time understanding why this doesn’t seem more obvious.  I read an article the other day through Time Business and Money that income has dropped by an average of 10% and net worth had dropped by 39% since 2007. That’s only over five years. It doesn’t even take in to account the rise of gas, food, utilities and everything else we have to purchase. Now, as of this week, all wage earners are paying almost 3% more in income taxes and I saw a sales receipt from a retailer that has added almost another 3% surcharge on to all sales to cover the cost of the new health care mandates. The fact is that things aren’t changing……They’ve changed!

 

I posted a comical little quote earlier about optimism, Pessimism and Realism. That goes:

 

The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails. ~ William Arthur Ward

 

In viewing the state of employment, wages, taxes, costs of living, debt and everything else that has to do with our own personal economics, isn’t it time to admit that its time to adjust the sails? Of all the people I know who have lost their jobs recently, the biggest majority of them felt they were mostly secure with their good job. All that changed in a matter of minutes for them. Most have or will find something new, but so far all of them have had to settle for something that paid less, had fewer hours or both. Unemployment is a safety net, but its a poor “Plan B”.

 

I don’t know the point I’m trying to make other than “things have changed”. We can complain, it won’t do any good. We can ignore it, it won’t go away. We can adjust our lives to it, and that will work. We either adjust our lives to less of a standard of living and less of a sense of security. OR, we adjust our approach to re-position our sails our attitudes and start developing a better Plan B. Or even a better Plan A. Its about either staying on defense and getting pushed around or getting on offense and start pushing back and gaining ground!

Becoming Un-employment Proof

About five years ago I learned a shocking and challenging key that has made more of a difference to my financial freedom than anything else so far. I’ve addressed it a time or two but it’s time again. Why now? Since Christmas time alone I have known close to a dozen friends and acquaintances who have either lost their jobs or had hours cut back and are now facing the winter needing to bolster their income. I’m not referring to the seasonal lay-offs prevalent in our area either. I’m referring to previously full-time employment positions. Several lost jobs to businesses closing, many more to the need to cut staff to just stay in business. I don’t find fault with companies doing what they need to do. I’m just a little bewildered that, in general, there seems to be a sense that there is nothing that can be done about it.

The key that changed my mind was when I began to understand who money flowed through our hands and mainly, how we received income. Most of the country exchanges their time for money. Stop working, the cash flow stops. If you become sick, disabled, fired, downsized, layed-off or just get lazy and stop, so does the money. The key is in a unique way of looking at liabilities and assets. My new definition of the two are as follows; (PLEASE, pay attention)

“Liabilities take money out of your pocket whether you work or not, Assets put money in your pocket whether you work or not” Most Americans spend their entire life accumulating liabilities rather than assets. Accumulate just enough assets to offset your working wages and you have just made yourself recession proof, down-size proof and un-employment proof.

As a matter of fact, you’ve just created financial freedom for yourself!

Nuff Said!

Wage Earning vs Wealth Building

Short post today. It’s January 1, 2013 and the talk of resolutions is thick. I don’t hold much stock in New Years Resolutions, but I do value an attitude that embraces change in the way we approach things. I was working on the Family Wealth website today and realized there is a very small but very huge difference in two terms. Small in the fact that there is very little difference in effort needed, but huge in the mindset necessary to change from one to the other. This is the difference between wage earning and wealth building.

The two require similar amounts of work. Think about it, does someone with great wealth have any more hours in the day? No! In fact most of the wealthy I know actually work less than the average wage earner. So the amount of work is essentially the same.

The big difference is in the mindset. Wealth building requires the mindset that “I’m building a future for myself and my family” rather than “I’m earning a paycheck for my self and my family”.

One mindset will get you to Friday. The other one will get you to future generations.