Be Great Today!

How long do you take to make a purchase decision about a new computer, car, or even a pair of shoes?  Most people that I know spend a great deal of time researching and analyzing when it comes to deciding on the larger purchases we make.  When it comes to computers or a new car, people may take months or a year to read consumer reports and blogs or talk to neighbors, friends, associates, even strangers before they invest their hard earned dollars.

On the contrary, when it comes to investing our money in order to preserve and grow wealth, how many of us make those decisions relatively quickly, and based on emotion?  I’ve been guilty in the past of purchasing tens of thousands of dollars in stocks based on reading a couple articles in Smart Money or some other financial publication, or based on a tip from a friend or family member.

I’ve talked to all too many people who have done the same or listened to stock brokers five minute or an hour long pitch before handing over a large percentage of their net worth.  In light of the Bernie Madoff $50 billion panzi scheme, we all have been given another reminder to take our time and do the necessary research before turning our hard earned money over to any one person.

I personally handle my finances myself and use Vanguard.  They have the lowest fees in the industry on their mutual funds and have been in the business from the beginning of mutual funds.  There is nothing to be ashamed about putting your money into a bank CD or savings account either.  The S&P 500 dropped 35% in 2008.  If you had your money in a bank CD during that same period of time, you would have made around 4%.  Who was the smarter investor? 

Since no one can predict the future and time the market, having a balance portfolio that matches your tolerance to risk is always the preferred and best approach.  Most importantly, each of us needs to realize that we need to make financial decisions based on what allows us to sleep at night.  If that is the final litmus test, rather it be for investing or spending your money, everything will work out fine!

Have a Great Day!

Your personal style is your calling card, your commercial that you give out to the world each day.  There are over 6 billion people on this great earth of ours, 300 million and growing in the United States.  That makes for a lot of different styles.  Want to make your message stick out above the crowd?

Start with a positive, optimistic attitude about yourself and today.  Do that each and every day this year, and you’ll have the best year of your life!  There is a great deal of uncertainty going on in our world as 2009 gets going, including: wars in Iraq, Afghanistan, and Israel.  The world economy is in recession, and some scientists are claiming that global warming is going to lead to the demise of us all.  So what can you do about any of this?

The answer is… you can control what you focus on today.  Focus on what you can affect in your world or what is within your control. If you really pay attention, you will find that you are a very fortunate person who has so much to be grateful for!  Once your focus gets trained to getting the most out of today and only paying attention to what you can control, right now, you’ll find your spirits lifted.  You will also be able to make a bigger difference to the world around you.  Put a smile on your family, friends, or co-workers faces, and you’ve made a positive difference today!

As far as the pressing global issues that dominate our cynical, gloomy media, who would like us to believe that the world is coming to an end, simply support our troops, save more than you make, and flush your toilet less!  Besides my daughter pointed out that the issue of the polar ice caps melting and polar bears going instinct may not be as pressing, as she pointed out, we have polar bears at the Cincinnati Zoo, and have you ever been in Cincinnati in August?  That would melt some ice!

Happy New Year!

The key to creating a personal budget that works is quite simple, so let’s jump into it.  You have to know 3 things:

1. How much you make, your income

2. A monthly list of your fixed costs

3. A monthly list of variable costs

First, let’s cover the income piece of the equation.  Everyone’s situation is going to be a little different, so we’ll use as realistic numbers as possible.  Say you make $40,000 per year.  Your income after paying taxes will actually be $33,582 (taxes on $40,000 as of 2008 will be $6,418).  That will make your monthly take home $2,798.50 ($33,582 /12).

Now it is time to build your fixed expenses section.  This section should be about 60% of your total take home.  This can vary greatly and is where you can either make or break a budget.  You have living (rent/mortgage) expenses, auto (beater with a heater, sleek sports car, or something in between), food, utilities (including cell phone, electric, water, heat, gas, etc…).  The most important piece of your fixed expenses should be to pay yourself first (personal savings).  You should pay yourself, or save at least 10% of your monthly income, upfront.  This will be your financial foundation and can be used to build your emergency fund (at least 3-6 months expenses).  After the emergency fund is in place take that 10% and put it into your companies 401K or IRA.  When you are not living paycheck to paycheck, that is a very empowering feeling.

Finally, you have your variables expenses.  These expenses include entertainment, clothes (it’s important to look good, but it doesn’t have to be top of the line designer labels), travel, etc.

You may notice certain expenses missing, simply add or subtract whatever is unique to your situation.  For example, most people may have loans and/or credit card debt.  Get your credit card debt paid off first, then put the balance towards savings.

Here is what a sample budget looks like:

Monthly Income =      $2,798.50

Personal Savings =      $  280.00

Rent =                         $  600.00

Car =                           $ 500.00 (includes car payment, gas, insurance)

Food =                        $ 150.00

Utilities =                     $ 150.00

Entertainment =          $  150.00

Clothing =                   $ 150.00

Student Loans =         $  150.00

Total Costs =             $2,130.00

Total Mo. Savings = $ 668.50   

It’s not what you make that’s important, it’s what you save! – Budget well, Live Well!

My 7 year old daughter, Megan, made this brilliant statement this spring as the answer to her fears of doing a reverse summersault on the bar in gym class.  My brilliant little girl instinctually figured out all by herself what most people never realize their entire life.  Megan does wear Nike’s, but I know that she isn’t aware of Nike’s “Just Do It” ad campaign that has been popularized since before she was born. 

Why don’t we all “Just Do It” when it comes to something we are unsure of.  The obvious answer is… FEAR.

If we would just spend the time required to learn whatever we need to learn in order to get whatever we want to get, we could then just go after IT (whatever “IT” is for you) without FEAR.  The end result… we would all be happier, healthier, and have more peace of mind and success.

So, I for one, am going to take Megan’s sage advice and keep on “Just Doing It!”

Peace!

How often do you find yourself asking others what to do when you know the answer already?  Maybe, you don’t like what you know needs to be done and feel it’s easier to ask others in hopes that someone will give you another option which will allow you to not do what you know needs to be done.

You need to step up to the plate, and use your head.  Think!  Listen to your gut!  That feeling in your belly will guide you along your path and help you make the right choices.

Still having trouble deciding?  Grab a pen and paper.  Write down the issue at the top of the page, and put a line down the middle.  On the left hand column write the pro’s of the issue and on the right hand column write the con’s.  Now that you have the issue from all angles written down, leave it alone for awhile.  Come back throughout the day, and review.

If you need to solicit advice, do so after you have already done the above.  You will have more perspective, be able to ask more intelligent questions, and most importantly, be able to make a more intelligent decision!

Now you’re ready to make things happen! 

 Have a great day!

It is very important to be competent, capable, and hard working in order to experience success in your life.  Have you ever noticed how our society associates success (whatever success is for you) as the key to life.  We seem to put a premium on results, the end product, and who gets ahead the most, is viewed as the best.

I believe that there is a more important ingredient to success than just climbing the corporate ladder, amassing a certain income, net worth, toy, or title.  To me, the happiest and most successful people are the ones with character and integrity.

Having a strong character and well, internalized firm value system is the real key to happiness and success in this world!  My high school basketball coach is one of the “wealthiest” people I know.  I’m not talking about monetary wealth.  This kind of wealth is priceless, yet costs no actual dollars. 

Coach always had and continues to have bedrock strong values.  Coach stands for something: which is working hard, never backing down from a challenge, and doing the right thing every time, not just when it is convenient.  The final value is called integrity.  The payout for this kind of wealth is unconditional love and respect from those whom Coach knows and interacts with.

I learned many lessons from Coach during my years playing basketball for him, but most of all I learned the importance of character and integrity.  Think back to people in your life that helped shape who you are today.  Remember the lessons you learned, and bring them forward into today, and continue to live the way your “coach” taught you.  (If you didn’t have a person like that in your life, feel free to borrow from my experiences in these paragraphs.)

Leading a life of integrity, doing the right thing every time, not just when it is convenient, will be a life changing philosophy for you.  I guarantee it!

Have a great day!

You may be thinking either option isn’t really attractive. 

Let me explain…  I have a friend who was meeting with an investment advisor.  The investment advisor was trying to sell my friend a very expensive insurance product that was way over priced and unnecessary.

My friend was ready to purchase just because he didn’t want to look dumb in front of this fancy investment dude.  When we talked about it later in the week, my friend was explaining to me what he was about to do.  I asked him why?  His only response was that it was what the investment advisor had recommended.  My friend didn’t have any other qualifying information or reason as to why he was going to buy this insurance product.

Having recently purchased an insurance policy myself, I knew what my friend was talking about.  I was the person who asked the “what felt like dumb” questions to my investment person.  After probing for 20 minutes or so, I had a better understanding of what the options were, what were the most economical, and what the fees were for each option.

You see, I looked dumb in asking the questions, (and if I didn’t look dumb, I definitely felt dumb) but I ended up getting a superior product at a much lower cost.  My friend almost wrote the check for the much more expensive option that provided much less coverage.  After we talked, he went in another, more appropriate direction for his needs.

So I’ll finish where I began, “Would you rather look dumb or be dumb?”  I know which one I pick every time!

 Don’t be afraid to ask and… Question, Question, Question!

Your world that you see around you is nothing more than a reflection of how you view the world.  If you see the good in people, places, things, and outcomes, then you will feel that way in return.  If you listen, see, and focus on the bad, then you in turn will feel, not so good.

I consciously choose to pay minimal attention to local, national, and international news, both print and on TV.  Don’t get me wrong, I pay enough attention to not have my head totally buried in the sand.  I am aware with what is happening nationally and internationally, but I choose to not focus on the negative.  Why?  Because if I did, then my world would be a pretty dismal place.

Instead, my world is wonderfully colorful, happy, and fun!  My lense is focused on the good in myself, the good in those around me, and the positive in the news.  As a result of my focus, guess what, I’m basically happy each and every day.  When I let the negatives creep into my field of vision, that is when I get into trouble.  I just choose to refocus my lense on what is good, clean, clear and within my control.  If I have no control over something, then I just let it sit outside my field of focus.  If something is important enough, then I do something about it as opposed to just complaining or letting something bother me.

So what do you see…?

 Have a Great and Clear Day!

Last year my then 8 year old daughter, Anne Marie, decided that she wanted to take guitar lessons.  Being an involved Dad and wanting to have as many bonding moments as possible with my girls, I also decided to take guitar lessons.  Same teacher, different day though.

Well, let’s just say that wanting/being interested in doing something doesn’t always translate into reality.  You see, I grew up playing basketball.  The closet I came to music was cranking up the radio or jamming on my iPod while working out.

After 3 months of guitar lessons, Anne Marie had completed her introductory book and passed me with the next level book.  Passing me was quite an easy task.  I never made it past the second song.

It was at that moment I realized that I could find other ways and other things to have commonality with Anne Marie, like video games and bike rides (I can do both of those). 

The realization set in… I wasn’t that strong or skilled in music.  I wasn’t playing to my strengths.

What we humans need to do is learn to focus on our strengths and our natural interests.  I believe that our days go the smoothest when we are focused on what we are best at and what we enjoy most.  If an activity is too easy, you won’t be motivated or inspired.  If you’re working at an activity that you’re not good at, that is when anxiety and stress will creep in.

Find what you love.  Then stick to it over the long haul.  That is when life will really open up for you.  Do what you love, and over time you will keep getting better.  You will most likely find yourself working harder than ever, but you won’t care because you will be doing what you love!

Find out what you are strongest at and what makes you happy.  When you do, the pursuit of your chosen field will create more daily joy in your life!

Anne Marie is still rocking out on the guitar and she is quite good!  I will concentrate on enjoying listening to her, instead of participating.

Rock On!

The other day I was waiting in line at Starbucks, and the gentleman in front of me ordered a Venti (large) Latte.

While I was waiting for my drink, the man in front of me received his Grande (medium) Latte, from the Barista (guy that makes the drinks).  This customer stares at his drink for what seemed like 30 seconds, then he looks up and stares at the Barista.  Then he stares back at his drink for a prolonged period of time.

Finally, the guy, with a not too happy look on his face, turns and leaves.  Why didn’t he tell the Barista that the incorrect drink was prepared?  This guy was clearly upset by receiving the wrong drink.

All this guy had to do was speak up!  “Excuse me sir, you made the incorrect size drink for me, I ordered and paid for a Venti.”  That was all this unsatisfied customer had to do to become a satisfied customer.  Starbucks works hard to please their customers, but they’re not mind readers.

Now, this guy went off into his day, dissatisfied.  How many times have we been dissatisfied by what someone has done to us, or said to us, or not done or said to us?

Save yourself some heartache and irritation, and speak up!  The sooner you incorporate the ability to speak up into your communication tool bag, the sooner you will be able to eliminate unnecessary irritations and frustrations!

Have a great Day!