Borrowing against your savings

I hear about people who have 401K plans to save for retirement, and then borrow against their account. This makes no sense at all.

We must learn to live on a fraction of our take home pay. In the book “The Richest Man in Babylon,” a personal finance classic, it says “a part of what you earn is yours to keep.” “A part of what I earn”? Don’t I keep all I earn, you ask?

Well, no. First you pay taxes. Then you pay all the bills you precommitted to – mortgage, credit cards, utilities, insurance, etc. Then you pay the grocer, the retail stores, the pizza place, and Starbucks. Pretty soon you have spent all you made and have nothing left. So, none of what you made is yours to keep.

No matter how much we make, we must learn to live on less, so we can save some money. Some people who make lots of money are broke because they spent it all as fast or faster than they made it.  

Is that you?

The Black Magic of Compound Interest

When you borrow, compound interest is working against you. Credit cards can be 10% to 25% interest! Once you borrow at those high rates, the credit card company says you only have to make a minimum interest payment, because they don’t want you to pay the money back. Why? The magic of compound interest is working for them, and against you.

Give your financial life a chance. Do what you have to do to get out of credit card debt as quickly as possible and don’t go back.

The Magic of Compound Interest

If you saved $1000 one time, and got 5% interest each year, in 40 years you’d have $7,039. At 10% interest, in 40 years, you’d have $45,259.  

Can you save money?  If not, by definition, you will always be broke.

If you can save money, and invest it to get a good rate of return, you can make compound interest work for you.

Making an Impact

Today I’d like to send you a link to a speech I presented at our company’s annual convention in September. I wanted to show how we have an Impact in the world in an unexpected way.

The talk is 72 minutes long so check it out when you have time.  I hope you are Impacted by it as much as the people who saw it live.

Here’s the link: Convention Keynote 2017

Golden Books

Are you an adult learner? What that means is you read at least a couple books a month, and you listen to podcasts and audiobooks about things that will help you accomplish your major goals that you have written down and keep in front of you (you do have major goals written down, don’t you?).

Ok, well, if you are a learner, as you must be to improve your earning ability and skills, then you have to write down the important ideas you learn. If you don’t write them down, you’ll forget these ideas. Why learn them if you are just going to forget them?

So get yourself a hardcover journal and keep colored pens at the ready when you are learning, and write! Make it a habit and soon you’ll have a collection of books that are very valuable to you. Reading your own journals will be exposing yourself to a “great idea concentrate”, and stimulate, motivate and inspire you like no other book you own!  

Capture the ideas for yourself!

Take control of your body language

What you do with your body affects how you feel, the results you get, and how others respond to you. 

It sounds so simple, but smile, stand up straight, and put a spring in your step. Yes, even if you don’t feel like it – and that’s the point. When you take control of your body, it sends electric and chemical signals to your brain about how happy you are, how much energy you should have right now, and what state of mind should match what you are doing.

Act like the person you need to be to accomplish your goals, and you will become that person, and attract what you want.

The Trifecta – Sleep, Diet and Exercise

Eat, move, sleep.  One affects the other.  When I don’t get enough sleep, I am lifting my energy with more food, junk food, and coffee. Then I don’t feel like exercising.  It’s a downward spiral. When I get enough sleep, it’s easier to eat right and by eating right, I have more energy to exercise. Spiral up.

Sleep, diet and exercise. Spiral up or spiral down.  

Stoicism 101

Stoicism is an ancient Greek philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions. A stoic accepts what is out of his control, and controls what he can – his own actions. He/she seeks to act with virtue at all times.

It is embodied in the serenity prayer, which was written in 1937 by theologian Karl Paul Reinhold Niebuhr.  The original version was “Father, give us courage to change what must be altered, serenity to accept what cannot be helped, and the insight to know one from the other.”

If you were to live this today, would you do or think about anything differently?

Our limits are unknowable

Last week I went out to the Baja peninsula in Mexico to pre-run this year’s Baja 1000 course. The Baja 1000 is the longest non-stop cross country race in the world – and one of the most dangerous. My son Tanner and I do it on a motorcycle. (See our YouTube movie “Into the Dust” for our first race in 2015). Last year we decided to enter in the “Ironman” class, which means you have no teammates – you do it solo. Riding 855 miles non-stop in the desert over rocks, deep sand, sand with rocks, river crossings, in close quarters with hostile cacti and barbed wire, with cattle and horses all over the course, with desert racing trucks screaming past you at twice your speed while being sleep-deprived and fatigued beyond anything you have ever done before…what could go wrong? 

Last year, Tanner finished in 28 1/2 hours, becoming a member of less than 20 people to ever finish this class in the Baja 1000.  I got hurt (whiplash) at mile 200, but persisted for 400 more miles to tap out at mile 600 in 27 1/2 hours due to the injury.  I am going back to finish, and Tanner won’t let me go alone. Being fully informed, he doesn’t want to do it again, nor do I – but I have to. 

This year’s course, 1134.4 miles – 279 more than last year. It starts in Ensenada, Mexico and weaves through the desert to LaPaz. That’s like from my house in Connecticut to Miami Beach, Florida. It starts at midnight on Nov 15 and there is a 46 1/2 hour time limit. I have trained all year. I have prepared. I have planned. I am ready.

In order to find out what your limits are, you must attempt to exceed them. In the end, most limits are mental ones of our own construction. 

Push your previous limits. It’s how you grow.

Employers are concerned about this…

Did you know that most employers are struggling with their employees spending work time on their smart phones?  Social media, text conversations, personal email, web surfing…

Employers don’t want to pay anyone to do these things. They want you to help them accomplish goals – and whoever does that the best will be favored over those that don’t. That makes sense, right?

Did you know employers feel like they are in a tough spot? On one hand they want to be nice and not be jerks, but on the other it drives them nuts when they walk in and an employee sees them and ducks their phone down.  

Your employer doesn’t know what to do about this.

Here’s what you can do. Go to work for the company, not a wage. When you go to work for your team, you don’t think about how much time you can waste without getting caught, or allow distractions at work. You have a work ethic that will be noticed, and you’ll get more results for your team and for you.