Saving isn’t enough to retire

Good morning Dinks.  Let me ask you a question, how far away are you from your retirement date?  Some of us may want to spend our lives flourishing in our careers and plan to retire at 65, some people want to work hard and retire early at 55 and some of us save every single penny to take our retirement as soon as possible, maybe even in our 40s.  So which one are you?

Are you saving or planning for retirement?

A lot of the books we read and advice we hear tells us to save, save, save for retirement.  But what if saving isn’t enough.  Well it’s not.  We can’t just blindly save for retirement because money is only a part of retirement.  The truth is retiring – at any age – takes planning and the dollar signs is only one aspect of the plan.

Actually I should say that the amount of money you need in retirement is the final outcome of four other contributing factors.  Before you start saving for retirement you need to know what you want to do, where you want to go and how you want to live when you retire.

Income vs. lifestyle in retirement

The truth is a lot of people don’t see retirement as a planning process, especially older generations.  My parents didn’t.  They worked, supported a family of four and saved whatever extra money they had.  My Dad’s employer offered an employer-sponsored pension plan.  Once his total age plus years of service equalled 85 he could retire with a full pension.  This is the only goal my Dad worked towards his whole life and just as planned he retired at 55 years old and has never looked back.

My Dad didn’t know how much he needed to support his lifestyle in retirement because he didn’t know what he wanted to do, all he knew was that he wanted to retire as soon as he could because he didn’t want to work anymore.  Now my Dad’s lifestyle is based on his income, not the other way around.

Set realistic retirement goals that you can afford

Your retirement goals need to reflect your current income as well as your projected needs during retirement.  This includes things such as where do you want to live, how do you want to live, what do you want to do in your spare time and what type of lifestyle do you want to have during retirement.  Once you determine the type of retirement you want to have you will be able to figure out how much you need to save.

You will need to save a portion of your current income to help support the lifestyle you want in retirement.  If you set unrealistic retirement goals that you can’t afford to support you will end up not saving anything and that’s not good.  I would love to live on a yacht in the South of France when I turn 55, but that’s just not realistic because my current income won’t allow me to save for such an elaborate retirement goal.

Source:  http://www.dinksfinance.com/2014/09/saving-isnt-enough-retire

How to Think Big to Achieve Big Financial Dreams

I like to think I have been pretty successful in real estate. I have 11 rentals, I’m working on 10 fix-and-flips and I employ a real estate team of 10 that helps me sell over 200 houses a year.

My blog, which discusses my real estate investing and being a real estate agent, is doing great, and I manage to do this without sacrificing time with my family. One reason I have been successful is I don’t worry about the little stuff. I let my team worry about the small things, and I focus on the big things. There are many investors who do much more business than I do and have been much more successful, and I bet they don’t worry about the little stuff either.

How Can I Forget About the Little Stuff When Everything Is on Me?

Most people who are starting out in real estate (or any business) are thinking, I can’t stop worrying about the little stuff because there is no one else to worry about it!

That may be true, but it is never too early to start thinking big and start planning how you will make it big. The people who make it big do not get there on their own. They get there with help — a lot of help. So if you have no one to help you with small tasks or dealing with the small stuff, start planning what you need to do to get to a point where you can get help.

Some things to think about:

• What things do you hate doing now that someone else could easily do?
• How much would it cost to hire someone part-time or a virtual assistant?
• How much time would you save to concentrate on more lucrative business if you had help?
• How much happier would you be if you didn’t have to do the tasks you hate doing?

When You Have Help, Train Them to Do Their Job!

I am guilty of assuming my staff knows exactly what I want without telling them. When you hire someone, you have to take the time to train them. Teach them how you want things done, be very specific and do not assume they know what you want. Once you have trained a staff person to do exactly what you want and you have confirmed they do their job well, you can focus on more important things.

When I have tasks come in to complete BPOs or enter listing agreements, I forward the email on to one of my staff members, and that is it. Much of my job is forwarding emails to the right people and then confirming that things were done. That is why I have time to think about big things (and play golf).

Once You Have Staff in Place, Life Gets Fun

When you have great staff, you can go on vacation, go to work conferences, take a day off with the family and not worry about work. You also have time to plan your life. Too many people get stuck in their day-to-day ruts and never plan for their future. Everyone needs to take time to think about what they really want in life and then make plans for how they will get it.

• How much money do you need to make to cover your expenses, investments and have extra left over for fun stuff?
• Where and when do you want to retire, and how much money will you need?
• What is on your bucket list, and how will you start ticking items off?
• How much time do you need to spend with your family and for leisure activities?

Don’t Be Afraid to Think Big!

Now that you have started making a list of things you want to do and how much money you want to make, review your lists and determine if you are holding yourself back.

• Are you reducing the amount of money you need to make for leisure activities because you don’t believe you could ever make what you really need? I thought $100,000 was a lot of money when I was in college; now $100,000 doesn’t come close to paying my staff every year. The more money I thought I could make, the more I make and the higher my new goals get. Don’t be afraid to think big.
• Are you basing the amount of free time you want on a typical American work schedule? How much time do you need? Don’t worry about what society says you need.
• Do you limit the things on your bucket list because you don’t believe you could ever afford them? I always wanted a Lamborghini until I was about 22. Then I started to concede that normal people could not have cars like that, and I needed to be happy with a decent commuter car. Last year I started to believe that I could own a Lamborghini; this year I bought one. Don’t limit your bucket list to what you think you can afford.

Now That You Have an Awesome List and Are Thinking Big, Take Steps to Make it Happen

A list is great, but it does no good if it makes you sick to your stomach because you think it is all impossible. The first step is to be happy when you look at your list and think how awesome it would be if you accomplished those things. Remember if you don’t accomplish them you are not a failure; in fact it is more impressive to try and not achieve your goals than to be afraid to try. Regrets do not come from trying something and not succeeding. Regrets come from not trying and never knowing if you would have succeeded or not.

The way to take baby steps towards your big goals is to work them backwards.

• How much money do you need to reach your goals?
• How much money would you need each year?
• How much would you need each month?

Then figure out what you would need to do in your current work situation to reach those figures.

• How many products would you have to sell?
• How many people would you need working for you?
• How many investments and of what kind would you need to own?

Then make a list of what you can do right now to start improving your business or work situation.

• Can you hire someone now?
• Can you start advertising more?
• Are there conferences you can attend or more education you can take?
• Is there someone doing what you want to do right now, who you can talk to, to see how they do it?

Now start doing these things immediately.

Conclusion

The trick to thinking big is to remove the limitations you and society have placed on yourself. Don’t be afraid to want to make a lot of money or to want to be a beach bum. Dream what you want to dream and then take the actions necessary to start the wheels turning in the right direction.

What financial steps are you taking to achieve your dreams?

We’d love to hear from you in the comments!

Source: http://www.biggerpockets.com/renewsblog/2014/09/07/how-to-think-big-to-achieve-big-financial-dreams

Remember Your Investment Horizon

When the markets start acting crazy, remembering your investment horizon puts everything back into perspective. Fears in Europe, the economy, unemployment, and a few hundred other data sets all add to the daily swings of the market. But you can lower your risk to these issues by building your portfolio around a strict investment time horizon.

So are we heading for a repeat of last year? Or are the recent headlines another gut check for every investor out there? More importantly, should it really matter?

All that noise breeds a shortsighted view of your money. What is different today that affects your investment risk? The answer should be “Nothing” if your portfolio is built around your investment horizon.

Focus On The Plan

When you invest, there’s a plan of attack. It should be based on your goals over the next few months, years, and decades. Your plan stretches from tomorrow till your final retirement years. Breaking those goals down – from groceries next week to college for the kids, then your retirement and beyond – gives you an investment time horizon. This timeline tells you how long you’ll hold each investment.

Knowing this, you can manage risk easier by matching your portfolio against your time horizon. As you look across your timeline, the investments should go from low risk to higher risk the further you go out.

A basic investment horizon can be broken down into three buckets: short, medium, and long-term. As the years go on, each time horizon naturally shortens. Here’s the basic investment guidelines for each bucket:

• The next 3 years – You shouldn’t take on risk with these short-term investments. Stick with savings accounts, money market accounts, and CDs.
• The next 4 - 10 years – You can take on risk, but not too much risk in the medium term. Stick to a conservative mix of bonds and stocks for this investment horizon.
• Beyond 10 years – You can take more risk over the long-term. Stocks can make up a bulk of these investments with a small portion in bonds.

Understanding your investment time horizon lets you overlook the short-term risks of the market. The next time the S&P 500 drops 20% (and your knee jerk reaction is to sell) you can rest assured that your short-term investments are protected, while your mid to long-term allocation can handle the change. When you put it altogether, it means less day-to-day worry.

Your Investment Horizon Will Change

Every year, you’re another year older and your investment horizon changes. Life changes. That’s why you do regular rebalancing and annual reviews. Each rebalance automatically adjusts your portfolio to the risks of time. As your timeline shortens those investments become less risky because your portfolio slowly moves from growth to preservation of wealth.

Take Advantage of the Drops

For those in the early stages of their timeline or who can stomach more risk, your cash holdings have a dual purpose. It’s insurance for when things go south but it’s a growth engine too. Having cash on hand is a comforting thing. But when you have a job, income, and the bills are paid that cash has better uses.

When the market falls again (and it will) in the short-term, take advantage of it. Put that cash to good use. You take advantage of products when they go on sale. Why wouldn’t you do it with stocks and bonds? Use that buying opportunity to boost returns and compound your long-term growth. Until then, focus on your time horizon.

Source: http://novelinvestor.com/investing/remember-your-investment-horizon

A Goal Without A Plan Is Just A Wish

"A goal without a plan is just a wish," is something Antoine de Saint-Exupéry said a long time ago. But, goals and plans were top of mind this past weekend.

When 2013 started, I set a goal of running in 30 5K races during the year. Because of good weather on most weekends, minimal injury setbacks, and a lot of races to select from in the Kansas City area each weekend, I reached my goal in October of that year.

I would not have reached my goal without also having a plan in place of how I would train, schedule runs, and adjust for setbacks and unforeseen challenges.


Also last year,, my then 49-year-old sister-in-law set a goal to run her first-ever 10K race. She embarked on an even more specific plan by following a strict, time-tested, eight-week training plan to take her from couch to fully prepared to run her first 10K. She reached her goal and then ran a second 10K a few weeks afterward. I am so proud of her.

The same day I finished my 30th 5K race, a proud fellow racer shared with me that he had just completed his first-ever 5K, having spent the past year losing 40 pounds and setting a goal to complete a 5K by the fall of 2013. He was on cloud nine, and rightly so.

These three experiences reminded me of Antoine de Saint-Exupéry's wise statement about the importance of plans to reach goals.

Too often, businesses don't have clearly defined goals and even less often specific plans to reach those goals.

When you set a goal for your business, be sure it is:

• Specific
• Measurable
• Attainable
• Relevant
• Time-related

Share that goal with your employees, so they understand all of the five attributes of the goal.

And then for your plan (sometimes called "program"), keep these tips in mind:

Realistically assess the obstacles and resources involved and then create a strategy for navigating that reality. For me this year, that meant adjusting my race schedule this summer to accommodate a nagging hamstring injury.
Plan for more than just willpower. Instead, plan by taking into consideration your business environment, your employees' schedules and workload, and everyone's accountability so that all these factors will work together to support you to achieve your goal.

Source: http://ericjacobsononmanagement.blogspot.com/2014/08/a-goal-without-plan-is-just-wish.html

4 Ways to Systematically Replace Your Limiting Habits with Empowering Habits

Imagine this scenario…

What if you could systematically break down all of the bad habits that are currently holding you back from achieving your goals?

What if you could then re engineer those habits so that they actually supported your goals?

There are some habits that move us closer towards our goals in life, we’ll call those empowering habits. Then, there are some that move us further away from the achievement of those goals, we’ll call those limiting habits.

Your goal should be to constantly reduce the limiting habits, and maximize the empowering habits.

How do you accomplish this?

Step 1: Identify Your Limiting Habits

The first step is to simply identify which habits are limiting your success.

You identify these limiting habits by first knowing what goals you’re currently trying to accomplish. After you know your goals, ask yourself which actions you perform on a regular basis that are holding you back from achieving that goal.

For instance, say you have a goal of losing weight, but you also have a bad habit of eating unhealthy fast food. That habit is limiting the achievement of your goal.

Step 2: Identify The Cue for Your Limiting Habit

Once you know your limiting habit, the next step is to identify the cue for that bad habit. What is the trigger that sets your bad habit in motion?

Cues can come in many different forms, so it helps to narrow your focus on a few areas:

• Time – What time is it?
• Location – Where are you?
• Emotion – How are you feeling?
• Other People – Who are you with?
• Preceding Action – What did you just do?

The next time you catch yourself performing that limiting habit, take quick second and look at these 5 areas. You’ll eventually start to notice a trend.

Maybe your bad habit shows up every day at 2:00pm. Or maybe every time you’re with you one of your buddies, that bad habit shows up. Or maybe whenever you get upset or sad you fall into your limiting habit.

Pay close enough attention, for a long enough time, and you’ll eventually see the pattern.

Step 3: Identify the Reward for Your Limiting Habit

Once you’ve recognized the pattern and found the cue that’s setting your limiting habit in motion, you want to identify the reward you’re receiving from the habit. What’s the big, positive thing you get from performing that habit?

I know, this may seem a little confusing. I told you that limiting habits are moving you away from your goals, but now I’m saying they provide you with a reward?

Let me explain.

A reward is anything that brings pleasure. But just because something brings pleasure, doesn’t always mean it provides a positive outcome.

For instance, overeating is limiting habit many people deal with. It provides the pleasure of eating delicious food and filling up your body, but then there are also negative consequences, like gaining weight, and destroying your health.

The reward for your limiting habit could be social, like someone telling you “Good Job!” The reward could be something tangible like getting paid. And some rewards occur naturally as a result of habit. For instance, if you walk on the treadmill for 30 minutes, you’ll burn 300 calories.

Do quick “pulse check” on your limiting habit and see what reward it’s providing you with. What’s the good feeling coming from that limiting habit? Why do you keep doing it?

Step 4: Find a New Action

Once you’ve found your cue and your reward, the only step left is to then replace the negative action, with a positive one.

But there’s one caveat, whatever new action you choose, must provide the same reward and be triggered by the same cue.

Putting It All Together

So let’s look at an example that ties everything together.

I had a goal of increasing my health, but I also had a bad habit of snacking on junk food. Every time I caught myself slipping into the bad habit, I began to pay close attention to those five areas (time, location, emotion, other people, preceding action).

I eventually found the pattern. Every time I was hungry and tired, I opted for junk food instead of a healthier alternative.

So my cue was being hungry and tired at mealtime, and my reward was getting something quick and easy to eat.

I replaced that limiting habit of snacking on junk food, with a different, empowering habit, of eating a smaller, healthier snack that would hold me over until I actually cooked something healthy. I used the same cue, and the same reward. I just replaced the action I was performing.

Source: http://addicted2success.com/success-advice/4-ways-to-systematically-replace-your-limiting-habits-with-empowering-habits

How to Become a Millionaire by Age 30

Getting rich and becoming a millionaire is a taboo topic. Saying it can be done by the age of 30 seems like a fantasy.

It shouldn’t be taboo and it is possible. At the age of 21, I got out of college, broke and in debt, and by the time I was 30, I was a millionaire.

Here are the 10 steps that will guarantee you will become a millionaire by 30.

1. Follow the money. 

In today’s economic environment you cannot save your way to millionaire status. The first step is to focus on increasing your income in increments and repeating that. My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money and it will force you to control revenue and see opportunities.

2. Don’t show off -- show up! 

I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income. I was still driving a Toyota Camry when I had become a millionaire. Be known for your work ethic, not the trinkets that you buy.

3. Save to invest, don’t save to save. 

The only reason to save money is to invest it.  Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.

4. Avoid debt that doesn’t pay you. 

Make it a rule that you never use debt that won’t make you money. I borrowed money for a car only because I knew it could increase my income. Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.

5. Treat money like a jealous lover.

Millions wish for financial freedom, but only those that make it a priority have millions. To get rich and stay rich you will have to make it a priority. Money is like a jealous lover. Ignore it and it will ignore you, or worse, it will leave you for someone who makes it a priority.

6. Money doesn’t sleep. 

Money doesn’t know about clocks, schedules or holidays, and you shouldn’t either. Money loves people that have a great work ethic. When I was 26 years old, I was in retail and the store I worked at closed at 7 p.m. Most times you could find me there at 11 p.m. making an extra sale. Never try to be the smartest or luckiest person -- just make sure you outwork everyone.

7. Poor makes no sense.

I have been poor, and it sucks. I have had just enough and that sucks almost as bad. Eliminate any and all ideas that being poor is somehow OK. Bill Gates has said, "If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake."

8. Get a millionaire mentor. 

Most of us were brought up middle class or poor and then hold ourselves to the limits and ideas of that group. I have been studying millionaires to duplicate what they did. Get your own personal millionaire mentor and study them. Most rich people are extremely generous with their knowledge and their resources.

9. Get your money to do the heavy lifting. 

Investing is the Holy Grail in becoming a millionaire and you should make more money off your investments than your work. If you don’t have surplus money you won’t make investments. The second company I started required a $50,000 investment. That company has paid me back that $50,000 every month for the last 10 years. My third investment was in real estate, where I started with $350,000, a large part of my net worth at the time. I still own that property today and it continues to provide me with income. Investing is the only reason to do the other steps, and your money must work for you and do your heavy lifting.

10. Shoot for $10 million, not $1 million. 

The single biggest financial mistake I’ve made was not thinking big enough. I encourage you to go for more than a million. There is no shortage of money on this planet, only a shortage of people thinking big enough.

Apply these 10 steps and they will make you rich. Steer clear of people that suggest your financial dreams are born of greed. Avoid get-rich-quick schemes, be ethical, never give up, and once you make it, be willing to help others get there too.

 

Source: http://www.entrepreneur.com/article/234454

5 Habits That The Super Successful Have Before Sunrise

There’s something about the morning that makes it so special… maybe it’s the promise of a new day.

Maybe it’s the chill in the air, the darkness in the sky, or the uncommon silence.

Whatever the reason, one thing is for sure. The morning is a make or break moment for your day, and the problem is, you probably don’t even realize it.

If you were to go through history, and pick apart the routines of the most wildly successful people, you’ll quickly realize that the vast majority of them all have one thing in common.

They have very specific morning habits that set them up for a successful day.

And the good news, you have the ability to create those exact same habits. And hopefully, find similar success. So let’s explore the five habits successful people practice before sunrise.

Habit #1: Journaling

Journaling is something that’s been around for over 11 centuries. The only way something sticks around for that long is if it’s serving a purpose.

Countless super successful, entrepreneurs, politicians and celebrities have talked about their extensive use of journaling. And there’s a reason why it’s so popular among the uber successful.

Journaling gives you the opportunity to clarify your thoughts. When you feel overwhelmed by your emotions and feel that your mind is moving at a thousand miles an hour, in a thousand different directions, the journal gives clarity.

And once you have clarity, you act with more precision and take more meaningful action.

Habit #2: Exercise

Barack Obama has stated on several occasions how important his morning exercise is, often times waking up with his wife at 4:30am to squeeze in a workout.

Regardless of your political affiliation, I think we can both agree that becoming President of the United States qualifies you as somewhat of a success.

Exercising in the morning gives you the energy boost you need to not only make it through the day, but to do it in the most productive way possible. It’s been proven that exercise increases both your focus and cognitive performance for any difficult task you might face during the day.

With a beefed up brain (and biceps) you’ll have an unfair advantage of whatever obstacles are sent your way.

Habit #3: Identify Your “Big Wins” For the Day

Being busy doesn’t equal being productive. But unfortunately, so many people mistake having a full calendar with doing things that actually matter.

How many times have you laid down at night, exhausted from all the stuff you did, but still feeling unfulfilled because none of the “stuff” you did was important? You just woke up, and started working without any real plan of what you should be working on.

When you wake up in the morning, before you do anything else, you need to figure out WHAT it is you should be doing. What are the three to four things, that if you got done, would provide the most value in your life? What few things would move the needle the most?

The trick is, you have to answer this question on a consistent basis.

That’s what separates the successful from the average.

Habit #4: Rising Early

Does it still count as a morning habit if it happens at 11:59am? To get the most out of the other habits on this list, you have to get them done early. Before the rest of the world starts begging for your attention, asking you to read this, watch that, like this, tweet that.

Getting an early start to your day gives you a chance to calibrate your day and perform the other habits that will set up the rest of your day.

Bob Iger, CEO of Disney, is also known for waking up at 4:30am to just get enjoy a little quiet time alone. It’s a time he uses to recharge his batteries and clear his mind.

Like I said, there’s something magical about the morning.

Habit #5: Meditation

You probably already know all about the benefits that meditation brings; reduced stress, increased self-awareness, regulates emotions, regulates attention, strengthens willpower, etc.

If you could focus in on just one of those benefits at the beginning of your day, you’ll dramatically increase your chances for having a day where you get important things done and overcome big obstacles, all while keeping a cool, calm, mental focus.

Source: http://addicted2success.com/success-advice/5-habits-that-the-super-successful-have-before-sunrise

Self-Motivated? 4 Science-Based Secrets To Achievement And Success

I run every other day.

However, only about a quarter of the time do I feel motivated to run before I begin. Even less so in the winter. It’s cold outside, and I’m quite comfortable inside. Most of the time, I’d rather stay put than put on my running clothes and push my body. But I do it anyway.

At the beginning of every single run, no matter how I’m feeling, my body is resistant. It feels like I’m running through quicksand, and everything hurts. Within thirty seconds, I want to stop. In fact, before I became a more consistent runner, I would stop.

I thought that resistance was a sign I just wasn’t a good candidate for running. Fortunately, a friend told me that everyone feels resistance at the beginning of a run. You just have to push through it until your body warms up. I finally tried it, and she was right. After about a mile, sometimes less, I get in the running groove. My joints loosen up, my breathing is less labored, and I pick up my pace.

I’ve learned to be patient and wait for it. Even when I don’t have the power of motivation inspiring me, I still know to keep going just a bit farther and the pain will let up. As my body and my mind are screaming, “Stop! Stop running right now!” — my higher self reminds me that I can do it. I’ve done it before, and I know I’ll feel better in just a few minutes.

I also know how I feel after a run – how a run gives me energy, helps my creativity, and makes me feel physically and mentally better in general. I also use this information when my body and mind are screaming at me.

So why am I sharing this with you?

I’m sharing it because I want you to know that there’s far more to accomplishment and learning than just motivation.

In fact, motivation has very little to do with creating new habits, acquiring skills, or reaching your goals.

Motivation is certainly the cherry on the cake when it happens to show up — but we can never predict when it will appear. We must be able to get things done even when motivation is a no-show.

What is self-motivation?

I believe self-motivation isn’t some elusive feeling of power and excitement. Instead, self-motivation involves knowledge and momentum. You must have thorough knowledge about the behavior or skill you want to undertake.

When I first began running, I didn’t do any research or ask any questions. I just slapped on a pair of old running shoes and started running. No wonder I kept failing at it. I wasn’t fitted properly for shoes. I didn’t know how to prevent injury. I didn’t know proper technique. And of course, I didn’t know about the resistance I’d encounter.

Momentum comes in by simply taking the first action. Once you take the first step, the subsequent steps aren’t nearly as daunting. With knowledge and momentum, you have just about everything you need to accomplish a goal.

But there’s one other skill set you need in order to be successful. You need to understand the specific skills involved in creating new habits.

The power of habits

Yes, there are some very specific skills involved in forming new habits, and without knowing these skills, you will likely fail at achieving your goal. Even with knowledge and momentum, you still need sustainability. You need a way to stick to the program after momentum fails you and motivation disappears.

Eventually, just like my body resists running, your mind will get tired of a new behavior, and you’ll drop it. So how do you keep momentum going and push through the challenging times when you want to give up? You have to retrain your brain. You have to build new neural pathways to reinforce this new behavior until your mind accepts it as automatic. And scientists have found a very specific way to do that.

Ann Graybiel is a neuroscientist at the McGovern Institute for Brain Research at MIT, as well as an Institute Professor and a faculty member in the Department of Brain and Cognitive Sciences. She’s an expert on the basal ganglia and how it functions to support new habits.

According to MIT’s McGovern Institute website, “Graybiel believes that the core function of the basal ganglia is the type of learning that leads to the formation of habits.” Her team “uses electrical recordings, behavioral tests, and gene-based approaches to study these issues. They recently demonstrated dramatic changes in neural activity in the striatum as animals learned new habits.”

As we practice habits, the brain literally changes, and the main component of fostering this change is early, consistent repetition. It is through repetition that we create new neural pathways, making our behaviors more and more automatic. But as you know, when repetition gets boring or difficult, staying the course is nearly impossible. You need some strategies to help you perform your habit every single day until it becomes easier.

Here are 4 science-based secrets to be self-motived and stay the course:

1. Start small

You might be able to run for thirty minutes right out of the gate or write several pages of your novel in one sitting at the beginning. But within a few days or weeks, you’ll feel overwhelmed as your enthusiasm wanes and resistance sets in. So begin with just five minutes for the first week or so of a new activity.

This may seem like a ridiculously short amount of time, but the goal is to establish a pattern of repetition and create a “no excuses” system. Anyone can do something for five minutes a day. You can slowly increase your time in subsequent weeks.

2. Trigger your habit

You’ll need a reminder to perform your habit, and the reminder needs to be the same every single day. So choose a trigger that’s a previously established habit you do daily, like brushing your teeth or putting on your shoes.

Then perform your habit immediately following the trigger. When you attach a new habit to a trigger, it affords a mental cue that it’s time to work on this new activity.

3. Reward yourself

As soon as you finish your new habit, immediately reward yourself with something you already crave or enjoy. It could be checking your email, having a cup of coffee, or even putting a gold star on your calendar.

The reward is most effective when it’s something you look forward to but you know you can’t have until you perform your new habit.

4. Create accountability

Be sure others know you’re committed to your daily new behavior. Create self-motivation by going public. Think about how much better you do at anything when you know someone else is paying attention.

Announce your goal publicly on social media, or share it with friends and family. As soon as you perform your habit and reward yourself, report to your accountability group about your success or failure.

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Once you learn these skills of habit creation, you can apply the skills to bigger goals and more challenging accomplishments. Any big undertaking is comprised of dozens of small habits.

When you start small, creating manageable actions that you repeat daily, you’ll find in time the actions become automatic, making it easier to begin the next piece of your goal. You won’t necessarily need motivation to begin. You just need to practice and have patience as you wait for your brain to take over.

When you feel bored, challenged, or discouraged, use your new knowledge and remind yourself that in time, the work will be far easier and you will become more skilled — just as I remind myself at the beginning of every run.

Use the science of habit creation to serve as your self-motivation tool, and you’ll be amazed at all you can achieve.

Source: http://liveboldandbloom.com/07/habits/self-motivated

Don’t Envy the Rich!

The rich are different from you and me. (F. Scott Fitzgerald) Yes, they have more money. (Ernest Hemingway)  “They possess and enjoy early, and it does something to them, it makes them soft where we are hard and cynical where we are trustful in a way that unless you were born rich, it is very difficult to understand.” (F. Scott Fitzgerald) Yes, the rich are different from you and me, they have more problems!

If you are not aware of it Forbes Magazine publishes a list of the 400 richest people in the United States. Rich people are ranked based on their estimated net worth! Just to make the list you need to have a net worth of at least $1.3 billion. People come and go from this list every year. It is not easy to be rich! Thirty (30) people are poorer than year ago, twenty-eight (28) people dropped off the list and six (6) people died. There are still a number of billionaires who qualify and were left off the list.

Don’t feel sorry for the overlooked billionaires! If you did not make the list, doesn’t mean you are not rich. It just means you are not on the list! Do rich people really care that they were excluded? Probably some do, but I imagine most do not. Although I think most rich people prefer anonymity, there is a certain amount of prestige in getting on the list. Rich people are competitive and they want to see how they stack up against other rich people.

The rich are different from you and me. Yes, they have more money. They actually think very differently! They put their money to work earning more money.  Debt does not scare them nor is it something they feel an urgency to pay down. They see the advantage of a leverage investment. Yes, they borrow money to buy assets not purchases. They actually understand money and how to use it more effectively. Money is not the answer! It is a byproduct of using it effectively.

Rich people are pitted against the rest of us. Recently, Hilary Clinton was criticized for her choice of words when she said she and her husband Bill Clinton were dead broke when they left the White House. Mitt Romney received criticism when his 2011 tax return revealed he earned $13.7 million and only paid 14.1% in taxes. The Occupy Wall Street protest movement was supposed to raise issues about social economic inequality, greed, corruption and perceived undue influence of corporations on government. Why do some people resent people who are wealthy? Is it jealousy? Usually, it is the people who struggling to survive that are jealous of rich people. It is similar to “keeping up with Jones.” You would like to have a new car, vacation or something else you cannot afford at the moment and you want it now. It is the first step to never reaching your financial goals; if you allow jealousy or your emotions sway you from your goals. Rich people do not lose focus on their goals or allow their emotions prevent them from their goals. Jealousy or envy does not help you reach your goal.

Although I think it is easier to be happy when you are rich, but there are no guarantees. In fact most people who are happy are not necessarily financially secure. According to an article in The Atlantic, the respondents have deep anxieties involving love, work, and family.  The respondents were 120 people with a net worth of $25 million or more. Just because you have money does not mean you do not have problems! The contrast is equally true, you can be happy without wealth as long as you earn a reasonable amount of money.

Money is never makes you happy! Some people will marry for money and say they are happy. Others hate their job and think if they are paid more they can tolerate their job. They will still hate their job, but compromise or sellout for the money. Rich or poor, family relationships are important! The busy rich executives, entrepreneurs or work alcoholics do not spend the time to create or nurture those relationships and will not be happy. These are just some of the reasons you should not envy rich people.

Stop being envious and do something about it!
 

Love and friends – If you are rich, you think people only want to be your friend because you have money or what you can do for them. You can be rich without broadcasting it to everyone you meet. You do not need to display your wealth in the cars you drive, homes or how you spend your money. At least reserve that information until you determine the relationship is genuine.
 

Work – Instead of just being envious of rich people, emulate them. They think differently for a reason! Use debt to buy assets that appreciate just like rich people. Figure out what you enjoy doing and get the skills to do it well and you will be successful.

Family – Family (spouse and children) like any other relationship does not flourish unless you work on it. You have a responsibility to your family to nurture this relationship. It adds to your happiness!

Final thoughts

Don’t be envious of rich people, do something about it. Wealthy people are not necessarily happy people! You can live your life resenting rich people or you can earn more money. I am sure you heard about maids, janitors or barbers becoming millionaires. All it takes is determination and some work. Remember, rich people are willing to take more risk and therefore they get more rewards. More importantly, you control your happiness! Don’t envy the rich, do something!

Source: http://www.krantcents.com/dont-envy-the-rich

What is your reason for waking up in the morning?

Seven Secrets of Self-Made Multimillionaires

First, understand that you no longer want to be just a millionaire. You want to become a multimillionaire.

While you may think a million dollars will give you financial security, it will not. Given the volatility in economies, governments and financial markets around the world, it's no longer safe to assume a million dollars will provide you and your family with true security. In fact, a Fidelity Investments' study of millionaires last year found that 42 percent of them don't feel wealthy and they would need $7.5 million of investable assets to start feeling rich.

This isn't a how-to on the accumulation of wealth from a lifetime of saving and pinching pennies. This is about generating multimillion-dollar wealth and enjoying it during the creation process. To get started, consider these seven secrets of multimillionaires.

No. 1: Decide to Be a Multimillionaire

You first have to decide you want to be a self-made millionaire. I went from nothing—no money, just ideas and a lot of hard work—to create a net worth that probably cannot be destroyed in my lifetime. The first step was making a decision and setting a target. Every day for years, I wrote down this statement: "I am worth over $100,000,000!"

No. 2: Get Rid of Poverty Thinking

There's no shortage of money on planet Earth, only a shortage of people who think correctly about it. To become a millionaire from scratch, you must end the poverty thinking. I know because I had to. I was raised by a single mother who did everything possible to put three boys through school and make ends meets. Many of the lessons she taught me encouraged a sense of scarcity and fear: "Eat all your food; there are people starving," "Don't waste anything," "Money doesn't grow on trees." Real wealth and abundance aren't created from such thinking. 

No. 3: Treat it Like a Duty

Self-made multimillionaires are motivated not just by money, but by a need for the marketplace to validate their contributions. While I have always wanted wealth, I was driven more by my need to contribute consistent with my potential. Multimillionaires don't lower their targets when things get tough. Rather, they raise expectations for themselves because they see the difference they can make with their families, company, community and charities. 

No. 4: Surround Yourself with Multimillionaires

I have been studying wealthy people since I was 10 years old. I read their stories and see what they went through. These are my mentors and teachers who inspire me. You can't learn how to make money from someone who doesn't have much. Who says, "Money won't make you happy"? People without money. Who says, "All rich people are greedy"? People who aren't rich. Wealthy people don't talk like that. You need to know what people are doing to create wealth and follow their example: What do they read? How do they invest? What drives them? How do they stay motivated and excited? 

No. 5: Work Like a Millionaire

Rich people treat time differently. They buy it, while poor people sell it. The wealthy know time is more valuable than money itself, so they hire people for things they're not good at or aren't a productive use of their time, such as household chores. But don't kid yourself that those who hit it big don't work hard. Financially successful people are consumed by their hunt for success and work to the point that they feel they are winning and not just working. 

No. 6: Shift Focus from Spending to Investing

The rich don't spend money; they invest. They know the U.S. tax laws favor investing over spending. You buy a house and can't write it off. The rich, in contrast, buy an apartment building that produces cash flow, appreciates and offers write-offs year after year. You buy cars for comfort and style. The rich buy cars for their company that are deductible because they are used to produce revenue.

No. 7: Create Multiple Flows of Income

The really rich never depend on one flow of income but instead create a number of revenue streams. My first business had been generating a seven-figure income for years when I started investing cash in multifamily real estate. Once my real estate and my consulting business were churning, I went into a third business developing software to help retailers improve the customer experience.

Lastly, you may be surprised to learn that wealthy people wish you were wealthy, too. It's a mystery to them why others don't get rich. They know they aren't special and that wealth is available to anyone who wants to focus and persist. Rich people want others to be rich for two reasons: first, so you can buy their products and services, and second, because they want to hang out with other rich people. 

Source:  http://www.entrepreneur.com/article/222718

8 Pieces of Advice Newbies Can’t Afford to Ignore

I met a client last week who told me something that really touched my heart.

He said “Amanda, looking back on the last 5 years of investing in real estate I realized that I have made so many mistakes along the way that were so costly. Does that happen to everyone and what could I have done to avoid those mistakes?”

His comment struck a chord with me because I was in those same shoes. I think that as we look back on investing (and life in general) there are always going to be things that we wish we had known beforehand.

The fact that we made mistakes or bad decisions does not necessarily mean that we did something wrong or that we missed the target by some fault of our own. It is just a part of growing. In fact I can say that I have never met an investor who didn’t make any mistakes.

So instead of talking about taxes or finances this week, I think it would be helpful to talk about some common investing mistakes that I see often, and if you are a newbie investor, then hopefully one or  more of these points below can help prevent you from making a bad investment move.

The 8 Pieces of Advice Newbies Cannot Afford to Ignore

The following are 8 pieces of advice that newbies need to pay attention to.  These will help prevent you from making terrible investment decisions and put you on the path to becoming successful earlier than most.

1. Take the Time to Learn:

Learning from the mistakes of other investors is likely the best way to leverage your time. Instead of re-creating the wheel or making costly mistakes, learn from others who have done this before.

2. Know What’s Important:

A smart investor focuses on what his or her return will be.

One of the best pieces of advice I received from a mentor when I first started investing was “don’t fall in love with the dirt”. As hard as that may be, focus your energy on the numbers behind the deal and don’t let that beautiful master bathroom lead you astray. Analyzing an investment is not the same as buying your dream home.

3. Take Action:

You can read books or attend seminars all day long but there is no better way to get into real estate than by taking action.

Get your feet wet by making offers, speaking with investors, and analyzing deals early on. Don’t waste too much time sitting on the sidelines.

4. Be Realistic:

You undoubtedly have read books or heard about how easy it is to get into real estate with no money and no experience.

Behind every successful investor are the stories of their sweat, tears, and failures that pre-empted their success.  Know that you will make some mistakes along the way and that it’s okay.

Accepting that mistakes can happen and that it is a natural part of investing can help reduce the anxiety associated with pulling the trigger on your first deal.

5. Get Your Team in Place:

None of us can understand all there is to know when it comes to investing, nor do we have the time to do everything that needs to be done for our properties.

Just as we leverage the bank’s money, we can also leverage the experience and knowledge of others around us. From attorneys and accountants to property managers and appraisers, leveraging your advisor’s experiences and expertise can help you to avoid common investing mistakes.

6. ListenTo The Right People:

If you are using a realtor to find your properties make sure they belong to the National Association of Realtors, because then at least you know they are mandated to adhere to strict ethic codes.

The right realtor can also help you look for the best properties. Listen to fellow successful investors and you may be surprised by how many great recommendations and sources for reliable information you can find.

7. Build a Business Not Just a Portfolio:

You should view this venture as a business and approach it with realistic goals.

To make sure that you treat your real estate as a business, it would be to your benefit to create a business plan that provides details as to how you will run your business over the next 1-10 years.

8. Stay On Top of Your Credit Score:

We have all heard of no money down real estate but let’s face it, one of the cheapest forms of funding for real estate is still bank money.

Many lenders require 700+ FICO scores and want a healthy debt-to- income ratio. Keeping an eye out on your credit score can help you to obtain cheap financing.

Would any of you seasoned investors add anything to this list? 

Be sure to leave your comments below!

Source: http://www.biggerpockets.com/renewsblog/2014/07/24/8-pieces-advice-newbies-cant-afford-ignore

How to Create an Empowering Vision Board

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Your brain will work tirelessly to achieve the statements you give your subconscious mind. And when those statements are the affirmations and images of your goals, you are destined to achieve them!

Creating a vision board is probably one of the most valuable visualization tools available to you. This powerful tool serves as your image of the future - a tangible representation of where you are going. It represents your dreams, your goals, and your ideal life.

Because your mind responds strongly to visual stimulation-by representing your goals with pictures and images-you will actually strengthen and stimulate your emotions...  and your emotions are the vibrational energy that activates the Law of Attraction. The saying “A picture is worth a thousand words,” certainly holds true here.

If you have already defined your dreams, it’s time to illustrate them visually.

How to create a vision board that depicts the future you wish to create.

Find pictures that represent or symbolize the experiences, feelings, and possessions you want to attract into your life, and place them in your board. Have fun with the process! Use photographs, magazine cutouts, pictures from the Internet--whatever inspires you. Be creative. Include not only pictures, but anything that speaks to you.

Consider including a picture of yourself in your board. If you do, choose one that was taken in a happy moment. You will also want to post your affirmations, inspirational words, quotations, and thoughts here. Choose words and images that inspire you and make you feel good.

You can use your vision board to depict goals and dreams in all areas of your life, or in just one specific area that you are focusing on.  Keep it neat, and be selective about what you place in your vision board. It's a good idea to avoid creating a cluttered or chaotic board… you don't want to attract chaos into your life.

Use only the words and images that best represent your purpose, your ideal future, and words that inspire positive emotions in you. There is beauty in simplicity and clarity. Too many images and too much information will be distracting and harder to focus on.

If you are working on visualizing and creating changes in many areas of your life, then you may want to use more than one vision board. You might use one for your personal goals and another for career and financial goals. You might even want to keep your career vision board at the office or on your desk as a means of inspiration and affirmation.

How to use your vision board.

Try keeping your vision board on the nightstand next to your bed. Leave it standing in an open position as often as you are comfortable with, and spend time each morning and evening visualizing, affirming, believing, and internalizing your goals.

The time you spend visualizing in the evening just before bed is especially powerful. The thoughts and images that are present in your mind during the last forty-five minutes before going to sleep are the ones that will replay themselves repeatedly in your subconscious mind through¬out the night, and the thoughts and images that you begin each day with will help you to create a vibrational match for the future you desire.

As some time goes by, and your dreams begin to manifest, look at those images that represent your achievements, and feel gratitude for how well the Law of Attraction is working in your life. Acknowledge that it is working. Don't remove the pictures or images that represent the goals you've already achieved.  Achievement of the goals in your vision board are powerful visual reminders of what you have already consciously and deliberately attracted into your life.

I recommend you write down the date you created your vision board. The universe loves speed, and you will be amazed at just how quickly the Law of Attraction responds to your energy, commitment, and desires. Much like a time capsule, this board will document your personal journey, your dreams, and your achievements for that particular year. It will become a record of your growth, awareness, and expansion that you will want to keep and reflect back upon in years to come.

It’s a good idea to create a new vision board each year.  As you continue to grow, evolve and expand, your dreams will too. Your Vision Board is meant to be kept and cherished. They chronicle your not only your dreams, but your growth and achievements.

Final thoughts on using your completed vision board:

• Look at your vision board often and feel the inspiration it provides.
• Hold it in your hands and really internalize the future it represents.
• Read your affirmations and inspirational words aloud.
• See yourself living in that manner.
• Feel yourself in the future you have designed.
• Believe it is already yours.
• Be grateful for the good that is already present in your life.
• Acknowledge any goals you have already achieved.
• Acknowledge the changes you have seen and felt.
• Acknowledge the presence of God in your life.
• Acknowledge the Law of Attraction at work in your life.
• Look at it just before going to bed and first thing upon rising.

Source: http://jackcanfield.com/how-to-create-an-empowering-vision-book

Below, we present you a few examples of good vision boards:

http://www.digitalaptitude.com

How to Set SMART Goals