Tag Archives: family

3 Things to Value More Than $1M

As the U.S. continuous its decade-long economic improvement, it’s hard for many of the younger folks to remember a time where fear was prevalent and jobs were scarce. While I was much younger in 08 and 09 I remember the feeling and conversation around money during that period.

Not only am I confident that hard times will hit the U.S. economy again, I suspect (based on history) that some sort of crash or drawback isn’t too far away. Simply looking back at the last couple decades of market crashes gives us some picture of how rare the past 10 years have been.

We’ve seen relatively low turmoil in the market, particularly stocks. Except for a few difficult weeks, the U.S. stock markets haven’t experienced a real drawback since the mortgage meltdown. But just 5 or 6 years before that the markets were down in 2002. And just two years before that the markets were down in the technology bubble of 2000.

Consistently throughout history we’ve had market crashes or corrections every six to 10 years. Here we are in 2018, with trade fears on the horizon, wondering if another crash is near. It’s been about a decade.

With all the turmoil, fear, anxiety and uncertainty in the markets, it’s very easy to become focused so much on the world of money that 1) we lose historical perspective on a potential loss, but 2) we lose life perspective on the true importance of money as it relates to our life.

Which matters more, a 50% drop in the Stockmarket (which won’t be a permanent loss unless you panic and sell) or a loss of a close loved one? While most people would value the close relationship above a temporary financial loss, it’s strange that so many of us put more energy worrying about areas of finance we can’t control and less time improving our current relationships.

Don’t get me wrong, money is important. Money has power, both in our life (to buy things and help others we care about) and in politics (to influence people), but there are three big things more important than money we can’t forget:

1) God

2) Close relationships (friends and family)

3) Health (physical and emotional)

Deepening these areas of your life both in depth (deepened commitment and improvement) and in length (time spent improving and investing in) is a great first step in not only improving these three areas but also setting yourself up to improve the 4th area: Money.

Next time you’re planning or prioritizing your life in a way that isn’t consistent with your values, remember in what order your values lie.

The 3 Areas of Personal Finance and How To Master Them

I want to discuss the three factors that determine where you are financially: Inflow, Outflow and Accumulation. Inflow can be regarded as the personal income your household takes in. Outflow, on the other hand, can be broken down into four areas: Living expenses, taxes, optional expenses and giving. Accumulation can be broken down into saving and investing.

Inflow (income):

When most people think of income they think of a job. But this isn’t always the case. Many people have rental income, stock dividends, royalties, and passive income from businesses. Income earned at a job, however, is the most common source of financial inflow.

Outflow:

Outflow is the consequence of living in a monetary society. Everything costs money. Food, storage, shelter, transportation and even water. Being weary of how you spend money as well as prioritizing the things that are important, is a must for anyone wanting to live according to their values.

What’s the best way to decrease unnecessary spending? Getting a B–U–D–G–E–T. I know what you’re thinking. “It can’t make much difference anyway,” you’re telling yourself. “I only spend money on things I need.” The surprising thing is the most people, as soon as they get on a written budget, are able to eliminate expenses they knew they had.

@AfricanSoulGoddess wrote a very insightful post on this topic titled Best budgeting: Personal finance.

Growth and Accumulation:

This is the final aspect of your finances. In this area you are beginning to experience a little success. This is the area in which the Billionaires and Millionaires of the world were made.

As income flows in, most people spend most of it on outflow (whether necessities, optional spending, taxes or giving). While each of these things are part of any healthy financial plan, contributing to a retirement account or other investment account should be coming right off the top of your paycheck!

Not only is setting up an automatic withdraw helpful, but it could mean the difference between retiring at 55 or 65. Don’t believe me? Do that math. If you’re receiving a 10% return on your money your money is doubling every 7.2 years. That means if you postpone or weaken your contributions by even 7 years you’ll be losing out on almost half of what you could’ve had.

In retrospect, most people will look back and regret not contributing more. So for those who have time on their side, now is the time to start preparing for your future.

What Every Single Rich Person Has – And How To Get It

As the years roll by most people find that they continue to need to pay the mortgage or rent, buy food, and pay insurance. But There is a moment in everyone’s life, whether in college, after a life changes, or in old age, when the money coming in is less than the money that needs to go out.

Rich people don’t have this problem. While they certainly have their own financial problems coming in many different directions and flavors, lack of cashflow isn’t one of them.

However, no matter how much wealth, or how deep their pocket book, rich people all have one thing in common. This similarity runs through the tech titans, the real estate tycoons and the financial gurus. What is this key ingredient? Leverage.

Leverage, is actually a general term. There are many contexts in which leverage can be used and what it can mean. This kind of leverage to which I am referring is in the context of effort and resources – not necessarily debt.

In this context we use googles definition. Leverage is to: “use (something) to maximum advantage.”

You’re probably wondering what leverage has to do with Mark Cuban, Donald Bren, or Bill Gates. Mark Zuckerberg, for example, utilized the leverage of personal engagement to bring attention to his platform, in a way never seen before.

Leverage in the context of the rich is the act of utilizing resources in order to maximize and grow the results. The Rich in every industry have learned to use their effort, along with the effort of others to build great companies. Warren Buffet leveraged his money (in a non-debt way) to turn it into something bigger than he could have every achieved on his own by working a regular job.

So, how can you utilize this strategy of leverage? It starts with finding your “niche” or the thing that you believe you can provide the most value to people than any other. Pick thing one thing and begin building your skills and network in this area. As soon as you see some progress begin to leverage other people’s time, money, resources and connections in a way to build your brand.

Don’t make this one-sided. These should be give and take relationships in which you provide as much value or more to the other person. Often leverage involves borrowing each others skills in a net positive way. Begin learning about your area of interest and learn how best to use the power of leverage…

Financial Steps to Take in Every Economic Season

As the US economy continues its steady recovery from the 08 crash, many people have started to worry about the next economic disaster. When will it happen?

To be honest no one, not even the Fed Chair or the Billionaire class, or economists know when a crash will occur. However, simply looking back at history, it wouldn’t be far fetched for a crash to happen sometime in the next few years.

Going back to our Nation’s founding, we’ve experienced all seasons of the economic cycle consistently over and over again. Some cycles have been longer than others, some have been more dramatic, and various sectors and asset classes have experienced the results at slightly different times. But we know a crash is coming – sometime.

The following are the four economic seasons and where we’re at right now:

Spring: A period of time in which business recovery increases, job growth rebounds, home foreclosures slow, and generally consumer confidence and credit stops diminishing.

Summer: A period of months or years in which the economy, stocks, real estate prices, and even consumer confidence grow. This period usually lasts the longest of the four seasons.

Autumn: The season in which consumers are overly, even extremely confident. Disposable incomes are rising, stocks are selling rapidly higher, and home mortgage applications continue to rise. At the end of Autumn a cooling in economic expansion begins. That’s when the temperature starts dropping…

Winter: This period is by far the most difficult on the average consumer and investor. Prices in real estate and stocks drop, consumer confidence plummets, credit dries up and the media starts panicking.

Which season are we in? While it’s difficult to say, we certainly aren’t in Spring or winter, which means we’re either in late summer or early autumn.

How do we deal with change? Is there a way to behave in each economic season?

The answer is that number one you shouldn’t behave in a groupthink mentality. Don’t follow the heard. In fact when everyone is behaving a certain way, consider doing the opposite. When everyone is selling stocks, consider buying. When people are retracting and reacting to the disaster, try to expand.

While this strategy isn’t best 100% of the time, even seeing things through this perspective can open your eyes to which actions are best to take.

Outside of being a contrarian, simply focusing on your life and less on the economy can go a long way. Just because “everyone” is getting laid-off at work that doesn’t mean you won’t find work. You might have to work extra hard, but try to get out of that mindset of thinking that what’s going on in the world has to be true for your life – it doesn’t.

The ultimate outcome of your financial life in both great and horrible times is up to you.

7 Financial Levels – And How To Get To The Top

Here in the US, with higher standards of living than pretty much any other place on earth, Americans have surprising difficulty getting their finances to a healthy point. But here’s the truth: I believe with all my heart that it is possible for anyone who has time, mental health, and true commitment to become a multi-millionaire, and even potentially a deca millionaire within their life.

I have broken down the levels of net worth by category. The numbers I chose are somewhat subjective. But I believe they paint a picture of what true riches look like here in the US.

Before I start the list, I want to clarify what net worth is. Net worth is the value of everything you own, minus what you owe. For this example I have decided to focus solely on financial assets (not clothes, furniture, or cars), which are things like that can be sold at roughly what they’re worth (like houses, stocks, bonds, etc…)

1. Upside-down Wealth – Net worth anything less than $0:

This is a position that many young people, particularly college graduates find themselves in. They get out college with loans, no money and therefore are upside-down with wealth. How can you move up to the next level? Work your way into a job, continue to live like a college student and pay off those loans.

2. Poor (real or fake?) – Net worth between $0 and $10,000:

If you find yourself in this circumstance you have to pick one of two decisions: 1) are you going to stay here forever, or 2) are you going to make the move to the next level? This is a position many people are in. Maybe they have a house, but have only a few thousand dollars of equity. Or maybe they are just starting out in the workplace. Either way, being “poor” should not only be a temporary situation, you should run from it as fast as possible.

You know what you need to do: get a better job, live on less, and begin paying off consumer debts.

3. Currently Broke – Net worth between $10,000 and $50,000:

No one I know wants to be here long. At this point you have enough to feel a little room in your finances, but even just a new roof and a few bad emergencies can wipe you out completely. While stopping by broke on your way up the levels is a necessity, staying here for longer than you need to is too risky.

4. Middle Class – Net worth between $50,000 and $500,000:

The most sought after class of all the classes is the middle class. This is what the “typical” two parent, two kid household is supposed to look like. Maybe you own a home, a couple cars, have a retirement account, yet carry a small credit card balance.

Middle class can feel nice… while you’re working. But what happens when you’re 70 years old and think, “I can’t keep working forever”? You need more wealth to be able to have the flexibility and peace of mind that’s necessary for a happy life. Here you can stand on your two feet financially speaking, but you know there’s something more.

5. Upper-middle Class – Net worth between $500,000 and $1.5M:

Almost everyone knows it – $1M isn’t as much as it used to be. But it definitely isn’t easy to achieve. When you’re net wroth approaches $1M it’s easy to think, “I’ve made it.” But really you haven’t – yet.

The truth is, what happens when you want to help someone else out financially? Or what if you want to explore Europe for a few weeks? Or what if you want to retire a decade early? It’s harder than ever to do those things on $1M.

6. Well-Off – Net worth between $1.5M and $10M:

It is completely feasible for most people in their mid 20’s or 30’s to reach this level in their lifetime. It simply takes hard work, steady contributions to retirement accounts, and a full-blown commitment.

7. Rich – Net worth anything more than $10M.

By now you know what you’re doing. You may not know everything, but you have a skill set that is very useful to say the least. You have discipline. Use this discipline into the future on whatever goals you set for yourself.

I hope this exploration of levels has helped you conceptualize where you’re at and what you can become. It’s never too late or early to start. Right now has never been better.

The Bad Thing About “Following Your Dream”

Whenever I hear someone say they’re trying to live their dream, I wonder, how many people out there have truly reached the point where they can fully pursue their interests?

I know I haven’t fully embraced my passions but over the last two years I’ve certainly gotten better. In two weeks I plan to take the second step towards pursuing “my dream”. The first step I took was this April when I took my 10 day road trip that drove me through Jacksonville, FL.

The second part of this pursuit will take place when I take my second trip there. I plan on leaving in two weeks. The trip will involve a drive from Michigan down to Nashville, TN, then a 2 day visit to Jacksonville, FL. On the way back up I plan on hitting Forsyth Park, Savanna, GA..

The question you might be asking is, why Jacksonville? That’s a very good question. It has more to do with my future than it does with my present. Currently I’m in college. I work nearby and have friends nearby. However somewhere down the road – maybe in 3 years or 10 years – I will move somewhere better.

It’s been a big thing for me to truly feel that the place I’m living in is right for me. I don’t feel most of Michigan is. For starters I like warmer weather. On top of that I’m looking for a city with more social and economic activity – unlike most of Michigan.

Explaining this often takes up a great deal of time. People will criticize my interests and goals. The dream I have certainly isn’t a common one. What should I do then?

What do you think, should I share “my dream” with the world or keep it inside my head?

Do you have a dream that most people around you think is stupid or weird? Feel free to jump into the comments below…

3 Things Wealthy People Tell Themselves

There are a lot of things that define success. Some value family, others experiences, still others put popularity and fame above everything else. But here in the U.S.(and I’m sure other countries) people emphasize wealth in the tier of importance.

When it comes to making wealth, building wealth and keeping wealth, there are certain activities and habits that set certain people apart from others. One of the biggest habits is internal dialogue. What we tell ourselves, and thus act upon, is the biggest factor that determines where we end up in life.

If you keep telling yourself that your opinion doesn’t matter or that no one will ever listen to you, this will probably come true for you. If, however, you optimistically believe, deep in your heart, that you deserve to be listened to by others, there’s a good chance more people will listen.

In the same way, what you tell yourself about money will probably, for the most part, become a self-fulfilling prophecy. So be careful. Here are three things that I have seen firsthand from a couple millionaires I have had the pleasure of meeting:

  1. You deserve the opportunity to be wealthy (if you put in the work)

Notice I didn’t say you deserve to be wealthy. This isn’t an entitlement mentality. It’s more of a self-worth manifestation. If you truly believe that you are worth it – you will put in the work. If you don’t think that you deserve a shot at becoming wealthy, you are less likely to put the work that goes into making that happen.

2.  Becoming wealthy isn’t luck, it’s a combination of work, smarts, perseverance, and time

One thing that the millionaires I have met, read from, and learned from have all had in common is a true belief in cause and effect. They never thought luck was something to lean on or be expected. While they did get lucky at certain points, they recognized that the luck was more a consequence of years of hard work, and less a result of blind chance.

3.  I don’t have to be like everyone else.

It’s true. Some people think that being like everyone else is just a given. If people sleep in to 10am, eat crappy food, and watch youtube in their free time, that doesn’t mean you have to. The truth is that most people in the U.S. as well as the world, haven’t made the true commitment to excellence in every area of their lives that millionaires have. You can be different.

These three things are just a start. Not only is it in the realm of possibility to become a millionaire, it is becoming easier than ever. Granted, it isn’t going to be easy.

How I Drove 2,300 Miles Without My License (And Why You Shouldn’t) Part 3

As I left Dallas I realized the trip was almost over. “What’s next?” I thought as I drove up towards Oklahoma City, OK.

Later that night I decided I would be traveling up through Kansas. Sounds like a cool place right? So off I went, driving late into the night. I was ready to explore Wichita and Kansas City as soon as I found a place to stay for the night.

At this point I was in southern Kansas, near Wichita. It was near midnight. Out on the country road it was 65mph but as I entered a little town I didn’t see the sign that said 45…  oops.

Lights flashed behind me. Even though this was my first time being pulled over after four years of driving (I’m not a bad driver btw) I couldn’t help feel a little discouraged. Was it a speed trap?

As the female officer walked up alongside the vehicle I pulled out my registration and reached for my wallet. “Hello,” she said, “I just wanted to let you know you were speeding. Not by too much, though. Can I see your license and registration?”

I handed her the registration. Opening my wallet I fumbled as I opened up where the license normally is supposed to be. I pulled out the enhanced license slip that holds the license. Opening up, I looked inside… my license was gone.

“Umm,” I awkwardly said, still looking through my wallet to see if it was somewhere else. “I can’t find my license.”

“Ok,” she said, “Can I see maybe student ID or something with a picture on it while you keep looking?” “Sure.” I handed her my student ID.

I continued to look as she went to her car. A few minutes later another police car showed up. This time a man stepped out. He and the woman walked up alongside the car. “Did you find it?”

“No luck I said,” glancing up. I got out of the car and started looking in the back. “Where is it?” I thought. I was so confused as to where it could have gone. I continued to look. “Here, can you use this?” The man officer held out a flashlight. “Thanks,” I said, realizing I also had a flashlight somewhere in the car.

After a little while they told me to pull up a few hundred yards to a little gas station. Shortly after parking they asked me to put the car keys in the car and get out. “Look,” the man said, “from our perspective this whole situation is bizarre. It looks like you’re telling the truth, but it’s taking a lot time for us to look you up in the Michigan Driver’s records.

Finally, fifteen minutes or so later they were able to look me up and get my drivers license number. I wrote it down and we said our goodbyes. The male police officer, George, shared his name and we shook hands. They were very nice and considerate.

Whatever happened that day, I’m very glad for kinder, understanding police officers.

By the way, I did find my license a few days later, but that’s a whole different story. At the end of the day we can take one big lesson a way: Even if you think your license is in your wallet, it never hurts to double check.

How I Drove 2,300 Miles Without My License (And Why You Shouldn’t) Part 2

The Trip Started like most trips begin, the last minute struggle to get everything else together. As soon as the car was packed I headed off towards my first stop on the way to Florida: Nashville. The day went fairly quickly, with a few stops along the way. Around dinner I arrived in Nashville. The busy city stood still in the orange sunset on the horizon. I liked Nashville but it wasn’t my favorite city.

That night I stayed near Nashville. The next day I drove to Jacksonville, FL. On the way I stopped in Atlanta, Georgia. In a Chick Fil A there was a lady who wouldn’t stop talking. She asked me about my day and all of the casual conversation, but she wouldn’t stop talking. I was glad to finally get my food and get out of there.

I arrived in Jacksonville, my first real stop, around dinner time. After exploring a little, I found a Walmart parking lot to stay in and slept peacefully. I explored Jacksonville, including the beach, the following day.  Beach.JPG

The next day I drove to Miami, with a quick stop in Orlando. At Miami I drove the city downtown during the midnight traffic. What a beautiful sight – all those banks and skyscrapers towering above you with lights shinning. It was definitely a worthwhile trip.

I picked a Walmart that allowed overnight parking and started to sleep. Then I heard a knock on the door. “We’re closed now, you’ve got to move.” I heard the voice coming from outside my car. I looked at my phone and realized this was a different location from the one I thought it was. Ooops!

It was 4:30 am. I was so frustrated that I drove from Miami back up to Tampa the next day. I stopped there and went by the beach. But I decided to head back up soon thereafter. I drove all the way up to Tallahassee by the end of the day. But this time I picked the right Walmart.

On the following day I drove though Baton Rouge and took a stop in New Orleans for a stop at the famous Cafe Du Monde. I had a delicious treat and then it was time for bed.

Next I went to Houston the following morning and got stuck in traffic. After sitting a couple hours I explored Houston and thereafter started driving up to San Antonio.

Next was Sunday. I woke up and saw the Alamo – a beautiful reminder of the men who died for everything they held dear. Then I drove an hour or two to Austin. Austin, the Capital of Texas, is a clean, technology-driven city. I liked it but it wasn’t on the same vibe as me.

That night I went to Dallas and tried to take a picture of the skyline. My Dallas Skyline.jpg

The guy next to me, a photographer with a nicer camera, took some pretty awesome shots. I liked Dallas the second most out of all the cities, right behind Jacksonville, FL..

At this point my trip was beginning to look like it had come to a close. Now I was starting to think about heading home…

How I Drove 2,300 Miles Without My License (And Why You Shouldn’t) Part 1

You might be thinking this is clickbait. Or is that a typo? No, I really did drive 2,300 miles, without my license, by myself, at 18 years old across the country. Now before I tell you how I ended up in the middle of Kansas, at midnight, with no license I need to give you some background.

In the summer of 2017 I started thinking about what I wanted to do with my life and what I wanted to become. This was around my 18th birthday in July. As the summer finished and the School year began, I started realizing that I could, if I wanted, take a trip that would give me further knowledge about what was out there.

In December 2017 I decided to follow through. During this time I was working full time as well as doing school full time so there wasn’t a lot of access time for spare planning. But I did manage to put together an incomplete document that would start me on my preparation.

Around Christmas I headed over to Zambia, Africa (I was visiting my family who moved for orphan missions, but more on that in another post). In Zambia I finalized my plans, which were fairly detailed, deciding against the 8,000 mile trip I was originally planning.

My new plan was to head down to Florida, explore, head back up through Louisiana to Texas, explore, and then head home to Michigan. All with a few minor stops along the way. The trip was around the corner. I was so excited!

It was a bittersweet moment for me. My time in Zambia was about over. And, in March 2018, I said goodbye to my family after 3 very special months. This had been a great period to rest, learn, and spend time with the most important people in my world.

I flew back to Lansing by myself, pondering and searching for a single feeling to feel. But there were so many. I felt alone. Even though I was going to live with my Grandma (and what a blessing that is), I was missing the people who had been with me my whole life.

I also felt anxiety. Here I was, 18 years old, with so many life changes like college, work, summer plans, and then my trip, all coming up just around the corner.

But I was also excited. My life had been, for the most part, out of my control up till this moment. And now the pen and paper were finally getting handed to me to write my own story. I thought I was ready.

With these emotions and so many others spreading around in my mind and nervous system, I really was starting to grow up. Not all at once, but slowly.

The plane landed.

I got to Lansing, spent time with friends and Grandma, and after one week it was time to leave. Finally, the moment I had been waiting for had come. Again, I thought I was ready. So, in the first few days of April, I left.