"Moderation is a fatal flaw. Nothing succeeds like excess." - - Oscar Wilde
Did you get that? Read that again.
Now there, folks, is a real secret to getting ahead in whatever you do. "Gurus" and "mentors" the world over tell you the same thing. They devote books to it, they charge huge sums to attend their seminars to teach what Mr. Wilde has said in nine words.
The message of course is this: You must have passion, committment, involvement, immersion, perhaps even obsession, if you are to ever achieve anything worthwhile.
All the greats at anything do it - they don't go at "their thing" half way. They pursue it to its ultimate possibilities, without distraction.
Take Tiger Woods for example. Since the age of 3 he gave his all to the game of golf. Maybe part of it was his father pushing; if so he can thank his Dad for that. Regardless, as time went on the passion to be the best took hold. Look where it has gotten him.
So, if you want to be successful, or get ahead or "achieve" that which is important to you, then you had better not half-ass it. Accept no excuses from yourself or anyone. Give it your all, and dont let up.
26 April 2009
Why the Cheap Don't Get Rich by Robert Kiyosaki
I like Robert Kiyosaki. He tells the truth about money that most people never hear - because our financial culture precludes it. Before I ever heard of Robert, I said that we don't teach our children to build wealth. Part of my "Young America" concept program includes wealth building... as opposed to the myriad others that teach "finances."
After all, so what if the individual can balance a checkbook - if ther's nothing in it. Here's Robert on Value.
========================================
The other day a friend of mine approached me excitedly, saying, "I found the house of my dreams. It's in foreclosure and the bank will sell it to me for a great price."
"How good is the price?" I asked.
"Just before the real estate market crashed, the seller was asking $780,000 for the property. Today, I can buy it from the bank for $215,000. What do you think?" she asked.
"How would I know?" I replied. "All you've given me is an arbitrary price."
"Yes!" she squealed. "Now my husband and I can afford it."
"Only cheap people buy on price," I replied. "Just because something is cheap doesn't mean it's worth the cost."
I then explained to her one of my most basic money principles: I buy value.
I will pay more for value. If I don't like the price, I simply pass. If the seller wants to sell, he will come back with a better price. I let him tell me what he will accept. I know some people love to haggle; personally, I don't. If a person wants to sell, they will sell. If I feel what I am buying is of value, I'll pay the price. Value rather than price has made me rich.
Against my advice, my friend sought financing for her "dream" home.
Fortunately, the bank turned her down. It turns out the house was on a busy street in a deteriorating neighborhood. The high school four blocks away was one of the most dangerous schools in the city. Her son and daughter would either have to go to private school or take karate lessons at night.
She is now looking for a cheaper house to buy and has asked her father, who is retired, for help with the down payment. If her past is a crystal ball to her future, she will likely always be cheap and poor, even though she is a good, kind, educated, hard-working person.
My Point of View
What follows are some thoughts on why my friend will probably never get ahead financially -- in any market, but especially this one.
1. She and her husband have college degrees but zero financial education.
Even worse, neither plans to attend any investment classes. Choosing to remain financially uneducated has caused them to miss out on the greatest bull and bear markets in history. As my rich dad often said, "What you don't know keeps you poor."
2. She is too emotional.
In the world of money and investing, you must learn to control your emotions. When you think about it, three of our biggest financial decisions in life are made at times of peak emotional excitement: deciding to get married, buying a home, and having kids.
My dad often said, "High emotions, low intelligence." To be rich, you need to see the good and the bad, the short- and long-term consequences of your decisions. Obviously, this is easier said than done, but it's key to building wealth.
3. She doesn't know the difference between advice from rich people and advice from sales people.
Most people get their financial advice from the latter -- people who profit even if you lose. One reason why financial education is so important is because it helps you know the difference between good and bad advice.
As the current crisis demonstrates, our schools teach very little about money management. Millions of people are living in fear because they followed conventional wisdom: Go to school, get a job, work hard, save money, buy a house, get out of debt, and invest for the long term in a well-diversified portfolio of mutual funds.
Many people who followed this financial prescription are not sleeping at night. They need a new plan. Had they sought out a little financial education, they might not be entangled in this mess.
After all, so what if the individual can balance a checkbook - if ther's nothing in it. Here's Robert on Value.
========================================
The other day a friend of mine approached me excitedly, saying, "I found the house of my dreams. It's in foreclosure and the bank will sell it to me for a great price."
"How good is the price?" I asked.
"Just before the real estate market crashed, the seller was asking $780,000 for the property. Today, I can buy it from the bank for $215,000. What do you think?" she asked.
"How would I know?" I replied. "All you've given me is an arbitrary price."
"Yes!" she squealed. "Now my husband and I can afford it."
"Only cheap people buy on price," I replied. "Just because something is cheap doesn't mean it's worth the cost."
I then explained to her one of my most basic money principles: I buy value.
I will pay more for value. If I don't like the price, I simply pass. If the seller wants to sell, he will come back with a better price. I let him tell me what he will accept. I know some people love to haggle; personally, I don't. If a person wants to sell, they will sell. If I feel what I am buying is of value, I'll pay the price. Value rather than price has made me rich.
Against my advice, my friend sought financing for her "dream" home.
Fortunately, the bank turned her down. It turns out the house was on a busy street in a deteriorating neighborhood. The high school four blocks away was one of the most dangerous schools in the city. Her son and daughter would either have to go to private school or take karate lessons at night.
She is now looking for a cheaper house to buy and has asked her father, who is retired, for help with the down payment. If her past is a crystal ball to her future, she will likely always be cheap and poor, even though she is a good, kind, educated, hard-working person.
My Point of View
What follows are some thoughts on why my friend will probably never get ahead financially -- in any market, but especially this one.
1. She and her husband have college degrees but zero financial education.
Even worse, neither plans to attend any investment classes. Choosing to remain financially uneducated has caused them to miss out on the greatest bull and bear markets in history. As my rich dad often said, "What you don't know keeps you poor."
2. She is too emotional.
In the world of money and investing, you must learn to control your emotions. When you think about it, three of our biggest financial decisions in life are made at times of peak emotional excitement: deciding to get married, buying a home, and having kids.
My dad often said, "High emotions, low intelligence." To be rich, you need to see the good and the bad, the short- and long-term consequences of your decisions. Obviously, this is easier said than done, but it's key to building wealth.
3. She doesn't know the difference between advice from rich people and advice from sales people.
Most people get their financial advice from the latter -- people who profit even if you lose. One reason why financial education is so important is because it helps you know the difference between good and bad advice.
As the current crisis demonstrates, our schools teach very little about money management. Millions of people are living in fear because they followed conventional wisdom: Go to school, get a job, work hard, save money, buy a house, get out of debt, and invest for the long term in a well-diversified portfolio of mutual funds.
Many people who followed this financial prescription are not sleeping at night. They need a new plan. Had they sought out a little financial education, they might not be entangled in this mess.
24 April 2009
After the tragedy of 9/11, the airline industry has taken on a serious posture. While this has meantt hat airline travel is not the fun carnival ride it was when Iwas young, it still offers some light hearted moments.
Here, for your enjoyment, are cabin announcements heard recently, "in the friendly skies."
==============================================
1. On a Continental Flight with a very "senior" flight attendant crew, the pilot said, "Ladies and gentlemen, we've reached cruising altitude and will be turning down the cabin lights. This is for your comfort and to enhance the appearance of your flight attendants. Thank you."
2. Upon landing, the stewardess said, "Please be sure to take all of your belongings. If you're going to leave anything, please make sure it's something we'd like to have."
3. "Thank you for flying Delta Business Express. We hope you enjoyed giving us the business as much as we enjoyed taking you for a ride."
4. "In the event of a sudden loss of cabin pressure, masks will descend from the ceiling.. Stop screaming, grab the mask, and pull it over your face. If you have a small child traveling with you, secure your mask before assisting with theirs. If you are traveling with more than one small child, please pick your favorite..."
5. "Weather at our destination is 50 degrees with some broken clouds, but we'll try to have them fixed before we arrive. Thank you, and remember, nobody loves your money more than Southwest Airlines."
6. "As you exit the plane, make sure to gather all of your belongings. Anything left behind will be distributed evenly among the flight attendants. Please do not leave children or spouses."
7. A flight attendant's comment on a less than perfect landing: "We ask you to please remain seated as Captain Kangaroo bounces us to the terminal."
8. An airline pilot wrote that his airline had a policy which required the first officer to stand at the door while the passengers exited. After an embarrasingly hard landing, he was approached by a little old lady with a cane.
She said, "Sir, do you mind if I ask you a question?"
"Why, no, Ma'am," said the fellow. "What is it?"
Without a pause, the old lady said, "Did we land... or were we shot down?"
9. After another real crusher of a landing in Phoenix, the attendant came on with this,
"Ladies and Gentlemen, please remain in your seats until Capt. Crash and the Crew have brought the aircraft to a screeching halt against the gate. Once the tire smoke has cleared and the warning bells are silenced, we'll open the door and you can pick your way through the wreckage to the terminal."
10. Part of a flight attendant's arrival announcement: "We'd like to thank you folks for flying with us today. And, the next time you get the insane urge to go blasting through the skies in a pressurized metal tube, we hope you'll think of US Airways."
11. After his plane reached it's comfortable cruising altitude, the captain made an announcement over the intercom,
"Ladies and gentlemen, this is your captain speaking. Welcome aboard Flight 293, nonstop to Los Angeles. The weather ahead is good and we should have a smooth and uneventful flight. Now sit back, relax and... AAAAAAH! WHAT THE, - - OH, MY DEAR GOD!"
Silence followed, and the passengers were understandably worried.
After a few minutes, the captain came back on the intercom and said in a reserved voice,
"Uh, ladies and Gentlemen, I am sorry if I scared you earlier. While I was talking, the flight attendant accidentally spilled a cup of screaming hot coffee in my lap. You should see the front of my pants!"
A passenger in Coach yelled, "That's nothing. You should see the back of mine!"
Here, for your enjoyment, are cabin announcements heard recently, "in the friendly skies."
==============================================
1. On a Continental Flight with a very "senior" flight attendant crew, the pilot said, "Ladies and gentlemen, we've reached cruising altitude and will be turning down the cabin lights. This is for your comfort and to enhance the appearance of your flight attendants. Thank you."
2. Upon landing, the stewardess said, "Please be sure to take all of your belongings. If you're going to leave anything, please make sure it's something we'd like to have."
3. "Thank you for flying Delta Business Express. We hope you enjoyed giving us the business as much as we enjoyed taking you for a ride."
4. "In the event of a sudden loss of cabin pressure, masks will descend from the ceiling.. Stop screaming, grab the mask, and pull it over your face. If you have a small child traveling with you, secure your mask before assisting with theirs. If you are traveling with more than one small child, please pick your favorite..."
5. "Weather at our destination is 50 degrees with some broken clouds, but we'll try to have them fixed before we arrive. Thank you, and remember, nobody loves your money more than Southwest Airlines."
6. "As you exit the plane, make sure to gather all of your belongings. Anything left behind will be distributed evenly among the flight attendants. Please do not leave children or spouses."
7. A flight attendant's comment on a less than perfect landing: "We ask you to please remain seated as Captain Kangaroo bounces us to the terminal."
8. An airline pilot wrote that his airline had a policy which required the first officer to stand at the door while the passengers exited. After an embarrasingly hard landing, he was approached by a little old lady with a cane.
She said, "Sir, do you mind if I ask you a question?"
"Why, no, Ma'am," said the fellow. "What is it?"
Without a pause, the old lady said, "Did we land... or were we shot down?"
9. After another real crusher of a landing in Phoenix, the attendant came on with this,
"Ladies and Gentlemen, please remain in your seats until Capt. Crash and the Crew have brought the aircraft to a screeching halt against the gate. Once the tire smoke has cleared and the warning bells are silenced, we'll open the door and you can pick your way through the wreckage to the terminal."
10. Part of a flight attendant's arrival announcement: "We'd like to thank you folks for flying with us today. And, the next time you get the insane urge to go blasting through the skies in a pressurized metal tube, we hope you'll think of US Airways."
11. After his plane reached it's comfortable cruising altitude, the captain made an announcement over the intercom,
"Ladies and gentlemen, this is your captain speaking. Welcome aboard Flight 293, nonstop to Los Angeles. The weather ahead is good and we should have a smooth and uneventful flight. Now sit back, relax and... AAAAAAH! WHAT THE, - - OH, MY DEAR GOD!"
Silence followed, and the passengers were understandably worried.
After a few minutes, the captain came back on the intercom and said in a reserved voice,
"Uh, ladies and Gentlemen, I am sorry if I scared you earlier. While I was talking, the flight attendant accidentally spilled a cup of screaming hot coffee in my lap. You should see the front of my pants!"
A passenger in Coach yelled, "That's nothing. You should see the back of mine!"
What You Gonna Do With It?
"From the time the fertile egg is laid, the chances of hatching depend on the care given by those who become responsible for it."
Eggs and hatching? What does this have to do with anything? Well, since this blog may be new to you, I'll simply say that one of the things in life that keenly interest me is the raising of chickens. While perhaps odd to some, in this modern, factory-farm age, I find there are still many lessons to be learned in the old-fashioned chicken yard.
While reading an older text on the matter of hatching eggs for breeding stock, I ran across the above passage. The more I read it, the more I realized how pertinent it is to each of us. This is all the more so to those who are not content to merely take up space, but who would DO something meaningful in life.
So, what can we learn from the fertile egg, from the chick and those responsible for it?
In this country and indeed in most of the world, we are each born into the means to do something great. Laid before you at your birth is a vast system designed to educate you, raise you to adulthood and make you into something. All over the globe, the cultures of man are biased toward individual accomplishment. From the tents of Berber herdsmen in Morocco to the Social Welfare Systems of the world's propeserous countries, the whole of mankind demands that you "do something with yourself."
Poverty or lack of opportunity is no excuse for doing nothing. Oh sure, it is easy to say society or the government or whatever scapegoat you chose is against you. But it is expected that you pull yourself up from what ever ignoble beginnings you started with and rise according to your place and cultural mores. History is full of people who have, you know, so what's your excuse?
No amount of wealth or privilige is an excuse for doing simply nothing, either. Just because you have everything you want, does NOT mean you can do nothing worthwhile. The world is also full of people, right now, who are rich and famous and do things to be proud of who are noteworthy for their accompishments in their own right.
Like the chick in the egg, we are all placed within our particular station in life, each to our particular purpose. We are given but one directive by those who invest in us, by those who take responsibility for us:
"GO. DO. BECOME."
There are forces which can be aligned against you, to be sure. War, starvation, disaster, poverty, disease... these all are realities of life. Some will die before they make a start, let alone get anywhere. It is like that.
But, if you are reading this, wherever you are, I suspect that such hindrances are remote from your particular station in life. Instead, I'll wager that many forces, people and systems have been aligned to ensure that you, like the chick hatched from the egg, arrives on this earth to fulfill your directive, to
"GO. DO. BECOME."
So, now that it is clear that much has happened - known and unknown to you - to give you someplace to start, the question then begs asking: "What are you Gonna Do About It?
"From the time the fertile egg is laid, the chances of hatching depend on the care given by those who become responsible for it."
Eggs and hatching? What does this have to do with anything? Well, since this blog may be new to you, I'll simply say that one of the things in life that keenly interest me is the raising of chickens. While perhaps odd to some, in this modern, factory-farm age, I find there are still many lessons to be learned in the old-fashioned chicken yard.
While reading an older text on the matter of hatching eggs for breeding stock, I ran across the above passage. The more I read it, the more I realized how pertinent it is to each of us. This is all the more so to those who are not content to merely take up space, but who would DO something meaningful in life.
So, what can we learn from the fertile egg, from the chick and those responsible for it?
In this country and indeed in most of the world, we are each born into the means to do something great. Laid before you at your birth is a vast system designed to educate you, raise you to adulthood and make you into something. All over the globe, the cultures of man are biased toward individual accomplishment. From the tents of Berber herdsmen in Morocco to the Social Welfare Systems of the world's propeserous countries, the whole of mankind demands that you "do something with yourself."
Poverty or lack of opportunity is no excuse for doing nothing. Oh sure, it is easy to say society or the government or whatever scapegoat you chose is against you. But it is expected that you pull yourself up from what ever ignoble beginnings you started with and rise according to your place and cultural mores. History is full of people who have, you know, so what's your excuse?
No amount of wealth or privilige is an excuse for doing simply nothing, either. Just because you have everything you want, does NOT mean you can do nothing worthwhile. The world is also full of people, right now, who are rich and famous and do things to be proud of who are noteworthy for their accompishments in their own right.
Like the chick in the egg, we are all placed within our particular station in life, each to our particular purpose. We are given but one directive by those who invest in us, by those who take responsibility for us:
"GO. DO. BECOME."
There are forces which can be aligned against you, to be sure. War, starvation, disaster, poverty, disease... these all are realities of life. Some will die before they make a start, let alone get anywhere. It is like that.
But, if you are reading this, wherever you are, I suspect that such hindrances are remote from your particular station in life. Instead, I'll wager that many forces, people and systems have been aligned to ensure that you, like the chick hatched from the egg, arrives on this earth to fulfill your directive, to
"GO. DO. BECOME."
So, now that it is clear that much has happened - known and unknown to you - to give you someplace to start, the question then begs asking: "What are you Gonna Do About It?
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