The Plane, the plane!


Many of you probably remember the short gentleman on Fantasy Island that shouted, “The Plane, the plane!” That should bring back memories for many, but there is a valuable lesson about your finances in that statement.

A plane does what is should physically not be able to do. The wings of a 747 weigh 95,000 pounds. The passenger potion of the plane weighs 53,000 pounds (this does not include the weight of the passengers, flight crew and luggage). The 747 plane stands at a height of 63 feet and 8 inches, which is the equivalent to a six story building. Yet the 747 is still able to fly from destination to destination with little effort.

Big deal, you know that where is the financial lesson?

I am elated that you asked!

From time to time between destinations the plane experiences an irregular atmospheric motion which is an issue known as turbulence. Turbulence can be annoying and frightening to the passengers. The passenger may sometimes act a bit out of character but the pilot always keeps calm and attempts to find a way to fly above or below this atmospheric shift. If he can not climb from or descend out of the turbulence, he has only one option – go through it.

Right now many are going though turbulent times with their finances. In turbulent times remember the following:

Like the airplane it does not appear, on the surface, that you should fly but you have been conditioned to fly.

Remain calm the turbulence will only last for a little while longer.

Resist the urge to bail out. If the plane doesn’t fair well in turbulence how well will you fair?

Resist the urge to act out of your character although those around you are doing so.

You can succeed in turbulent times.

Change Your Language

Language is very important as it is language that is a mirror of one’s attitudes, thoughts and insights. You can tell where most (if not all) people are financially by listening to their language about money. Let’s take a peak and tell me if my conclusion is correct or not:

An immature financial person will say something like “I can’t afford this”.
A mature financial person will say “I must budget a little more for this in order to acquire it”.

An immature financial person will say “I make the money but I don’t have anything to show for it”.
A mature financial person will say “I can account for every dollar was spent”.

An immature financial person will say “I wish I had what he or she has”.
A mature financial person will say “I can have that but I need to develop a quality financial plan in order to obtain it a little later”.

An immature financial person will say “I am broke”.
A mature financial person will say “I don’t have the money I need right now but I will obtain it shortly”.

Language reveals a person’s mindset, character and what one is trying to hide. Which person are you, the financially immature or the financially mature person?

Vision

What is your vision for your financial future? That might be a tricky question for many people. First we must describe vision.

My definition of vision is the vantage point from where we see a particular thing or situation.

If someone were to walk out the front door of a home in a densly populated city they might see buildings, people and other housesm. But they might not be able to see much further or more than that.

If that same person were to sit on the roof of their home they would be able to see a lot further. The other thing that would happen is the object near to them will appear slightly smaller.

If the same person were to sit in a air balloon about eight hundred feet directly above his home, his line of sight would change drastically. Everything that he looks upon would appear very small.

Those of us who live for the moment are viewing our positions from the first area - the front of the house.

Those that who are able to put their gratification for a few months have a roof top view.

Those who have a long term view are those who sit high atop things and are able to see a bit more.

What perspective do you currently have about your financial future? Think about it before you answer. If you need assistance take a look at your last bank and credit card statements. What percentage of those expenses is helping to build your financial future?

Making Money During Cramped Times

Many say that this is a time to save all that you can before the financial conditions get any worse. That is good advice for those who have no money to risk but it is not the best advice for those that do.

If you have some money to risk, the best thing to do now is invest some of those dollars in the stock market right now. That's right I said the stock market.

You might think I am crazy but this is great advice.

If you find quality companies that have a relatively low stock price right now, you should buy stock in those company. You must however look to hold the stock for the next 3 to 5 years though.

The stock market now is like giving birth to a premature baby. You will go crazy attempting to check the progress of the child everyday. Doctors say that progress of the premature child's growth should be evaluated from month to month. This holds true for your stock purchase, look at the month to month development of the stock.

Another bit of advice is to buy stocks that pay dividends. The idea here is to see yourself holding that stock for the next 3 to 5 years as well, but reinvest the dividend into purchasing more shares of the same stock.

Check up

I want you to think about something for a second. How do you know if the money you have authorized your employer to withhold from your check for retirement purposes is actually being invested in your retirement? Although against the law it is very possible for your employer to delay payment to your retirement account.

Let’s say your employer did make the payment to your retirement account in a timely manner. How do you know if the company holding your retirement account actually invested those funds correctly?

With the recent fall of Lehman Brothers and some of the other financial giants it is quite possible that some of your retirement funds were not invested properly and your retirement funds could be lost.

Although we trust that the financial institutions are doing the right thing, it is good to check up on them periodically. How do you do that you may ask? That is a very good question. The first line of defense is your statements showing the amount in your retirement account. The second line of defense is to sit down with a financial planner and have that professional look over your retirement assets as well. At the end of the day you don’t want to be surprised, you want to be informed. A periodic check will help you stay informed!

Can You Swim?

When I was a teenager I nearly drowned in a pool. I knew I couldn’t swim very well, to be honest, I couldn’t swim at all.

The pole had a rope that separated the deep end from the shallow end so that summer I always stayed on the shallow end of the pool. The shallow end went from three feet to five feet. On the deep side of the pool the notation were six feet, eight feet and then 12 feet.

One day while playing a game in the pool, I ventured out from the three foot marker just beyond the five foot marker. Because the game so was exciting and my head was still above water; I continued to venture further onto the deep side of the pool. Now remember I can’t swim!

All of a sudden I began to drown. On my very next step past the five foot marker I no longer felt the pool base under my feet. Instead I began to plunge to the bottom, as if I stepped off a cliff. It was very scary because I was just above water and in an instant drowning. Thankfully someone came to assist me.

This is what I believe has happened to many with their debt. When they initially purchased the home, the car or obtained the credit card everything was fine, the debt was able to be maintained. Then some ventured out a little more and added another supposed asset without adding any more income and the next thing you know, you are in over your head. Do not allow your emotion to overshadow wise decisions.

The next time you are in a position to obtain anymore debt, ask yourself can you swim?

The Age of Terrorism

Terrorism officially was experienced by many Americans seven years ago on this very day. September 11, 2001 was a terrible day for many Americans, some lost family members, and friends while others were never the same after this tragic day. On that day, America entered what I’d like to coin as “The Age of Terrorism in the US”.

Never before did we have to take as many precautions entering a plane, building or opening something as simple as a bank account. Although The Age of Terrorism placed many of us in awkward positions, there were a multitude of individuals who have benefited from this new age. Think about all of the security and technology oriented companies that begin to sprout up after September 11th. The security / technology industry is a multi billion dollar industry (even if you exclude giants like Google and Microsoft).
What does that mean for you and I? Markets are constantly changing due to circumstances that are some times beyond our control. We have to be ready for these shifts and be able to take advantage of such shifts.

A good business person will get himself or herself into position to take advantage of shifting markets. Are you in a position to take advantage of shifting markets or are you stuck in what you are currently doing?

Take some time to contemplate the following:

Are you using your “downtime” to increase your knowledge of a particular area?
Are you saving some reserves to be in a position to take advantage of potential shifts?
Are you keeping your eye on the state of the economy or educational system?
Have you assessed your skills to see how they match up with the way the market is currently going?
What are you currently doing to make yourself better?

There will be more shifts in needs to come, will you be ready?

What you need to know about your network marketing income

Many people these days are apart of at least one network marketing company. This article is not meant to discuss which of these opportunities is the best, but it is to speak about the income derived from network marketing.

If you are in network marketing and you are serious about your business, it is important that you continue to read this blog.

Networking marketing companies do not give this level of information because it is not there specialty, but I will alert you of this right now. If you are serious about your network marketing business, even if you aren’t making your desired income right now, you need to incorporate. That’s right, you need to INCORPORATE ASAP!

Why you might ask? There are three major reasons why:

(1) As an independent business associate, or a sole proprietor, your net income from network

marketing is subjected to self employment taxes. Self employment tax comprises Social
Security and Medicare that you are liable for if your net income from network marketing is
over $400 annual. A corporation is not subjected to the self employment tax.

(2) There are several deductions that you are able to take as a corporate entity that you may
not be able to take as a sole proprietorship.

(3) Many of the top earners in your network marketing companies are utilizing this same
strategy, you just don’t know about it.

There are other reasons as well. If you are interested in forming a corporate entity send an email to info@mrbizcoach.com and some from our staff will assist you with this process.

Everyone is entitled to their opinion

I can not believe this. While reading an article the other day I came across a law professor say that we shouldn’t try to teach people about money. The professor beliefs that offering a financial education doesn’t work and continuing to teach on the subject is a waste of money. Wow, that was unbelievable.

Everyone is entitled to their opinion, but everyone can change. Teach financial literacy may seem like a waste of time for some but not everyone. There are many people who have learned a great deal about finances and applied it to their lives, resulting in the ability to make better financial decisions.

Wherever you are in increasing your financial literacy continue on, don’t stop. You will be better for it.

Choices

As we go through our daily lives, there are many decisions to make. Should I have coffee or tea today? Should I vote for Obama or McCain? Do I turn left or turn right at the intersection? Should I invest a portion of my earnings or should I use a portion of my earnings on entertainment?

The choices that we make affect our lives. However, while some of our choices affect us temporarily, many of them affect us for an extended period of time. The choice between coffee or tea may not have as dramatic of an effect on our lives, as our choice of the next president. Likewise our choice of direction at the intersection can have a temporary impact, while our decisions regarding our finances can affect us for a lifetime.

The difficult choices how we spend our money are experienced by everyone from teenagers with new summer jobs, to an executive who needs to trim the payroll. The question is simply, “WHAT, DO I SPEND MY MONEY ON?”

In order to make this difficult decision we have to prioritize what is most important to us. If you are one who lives for now then certainly saving for a “rainy day” is not high on your priority list. If you are one to “save for a rainy day” then investing in a vehicle that has a reasonable return is probably not too high on your list either. Maybe you are looking for a “good investment” then entertainment or other self-indulging activities would not find their place on the top portion of your list.

Before we can make wise decisions with our money we must first acknowledge our philosophy on spending. What motivates you to spend money? Are you merely spending more than you are investing? If so why is that the case? What was your family’s philosophy on spending and investing?

Make a list of your spending or investing practices for the past three months. Be honest about the amounts, where does the major portion of your spending lie? Is it in entertainment such as dining, clothing and other miscellaneous items? Is it in sound investing such as your education, real estate, your business or retirement? Is your spending mostly to pay off debt from entertainment items? When you discover your philosophy on spending you will be able to make wiser choices.

A Little Action Everyday Will Keep Poverty Away

There is an old schoolyard saying which goes something like this, "an apple a day will keep the doctor away". I am not sure if that has any truth to it, although it may. But today's blog entry certainly has some truth to it.

If you do not take a little action everyday then poverty will eventually catch up to you. This applies to every level and area of life. Let's take a potential business owner for example. This person has a wonderful idea but does not commit to any activity. he or she will not network, will not research their potential industry and finally he or she will not start the business (not good so far?). If none of these actions are taken at some point he or she will experience poverty.

What is poverty? According to the Cambridge Dictionary, poverty is defined as the condition of being extremely poor and the lack of something or when the quality of something is extremely low.

Both definitions share the same word, extremely. As individuals it is important that you and I take some type of action everyday to be successful, even if does not seem as if is working. Make those prospecting calls today even if you make 40 calls and get 40 "No's". It is OK, eventually you will get 40 people to say yes.

Just a little action everyday will get you closer to your destination known as success. But if you do nothing then one day you will realize that there is an extreme lack of something, this could be money, quality of life or lack of opportunity.

"A little sleep, a little slumber, a little folding of the hands to sleep. So shall your poverty come on you like a prowler, and your need like an armed man. " - Proverbs 6:10-11 NKJV

The Table

Have you ever seen a table before? That is a silly question for most people because the answer is most certainly yes.

Now let's think about the table, any table, for a moment. What is a table good for? Well it provides a stable platform where one can rest something on making it easier to handle certain objects. Would you agree that it is easier to go to a restaurant and eat at a table than to have to hold your plate in your hand and eat from an elevated position? If you would agree to that then maybe you would also agree that it is easier to utilize a table as a support while signing contract and writing any other documents?

What makes the table steady? It is the legs or supports under the able and the surface those legs or supports rest on.

It is the same with success. We all look at success and can benefit from it but what is it that supports success? We can not take success for granted, but we must peer underneath success and see what in fact is allowing success to be realized.

I submit to you today that the table of success is supported by the following legs: (1) education, (2) planning, (3) execution and (4) timing.

Education - you must be knowledgeable in certain areas and build a team of people around you who are also knowledgeable in many areas as they pertain to your business or life. It is always helpful to have a mentor who has either ran a succcessful business or life and possibly is still running something successful.

Planning - anything that isn't plan has a 90% rate of failure. There must be a plan to anything that is done - marriage, business, family, budget, etc. This plan will surely evolve as time passes, technology advances and you as a person change but you must have a basic plan in place for every area of life.

Execution - planning is absolutely no good without doing it. Nike coined the phrase best - "Just Do It". How will you know if it really works or not until you just do it. Your education including your team and mentor along with proper planning will make the execution part a bit easier if you are scared. And it is OK to be a bit scared - we all were scared at one time or another, but many of us took action to balance out our fears. You must do the same.

Timing - someone once said that the "T" in timing is more important than the "T" in talent. Timing is essential, you want to know that you are engaging something within the right timeline for the situation. For instance you would not want to open an landscaping business in the northeast US in the middle of December. Nor would you want to sell winter coats in California in the middle of the summer. Timing is everything. Again this is where you leverage the knowledge base of your team and mentor to determine the timing of a matter.

Success has support and it is education, planning, execution and timing.

Remember that you might bump into Failure on the way to Success, they are neighbors. Make sure you go to the right house.

Building and Assessing Your Financial Team

Coming up to the end of the trade deadline in the NBA the past two weeks there were some major trades that changed the landscape of many teams in the West and one team in the East, in particular. Each of these trades were made in order to make each team better now in the case of the Suns, Lakers, Cavs, Spurs and Mavericks. While the Grizzlies, Heat, Nets, Sonics and Bulls made moves in order to prepare for a successful future.

Even if you know nothing about the NBA or do not like basketball a point can be drawn from the activity over the past two weeks.

Each team's general manager assessed his team and made a move either to go for the "gosto" now or position the team for future success, two to three years down the road.

How is your team looking today? Your financial team ........ when was the last time you sat down with your financial planner and gone over your plans again? When was the last time you sat down with your accountant and developed a plan for your taxes as well? As a business owner, no matter how big or small your business is NOW, you must create a deadline for yourself and assess your financial team and situation.

If you are in a position where you've been in business for three years or more it might be wise to assess your team right now, see if you need to add a person or two to your team. It will cost some money, but so what, you are going to spend that money on something else less beneficial to you and your business anyway.

If you have been in business less than three years then you need to assess your financial team and your situation. Maybe you are two to three years away from winning it all, position yourself now.

What constitutes a good financial team? I am glad you asked .... you should have a financial planner on your team, someone who is sincerley out for your best interest and will work with you. You also need an accountant who can keep watch over your financial records and guide your through the mindfield of taxation and tax law. You will also need a marketing consultant to assist you in developing a plan to expose your business to the masses. You might need a business consultant who will assist in suggesting upgrades to areas where the business maybe lacking, possibly customer service. And of course you will need an attorney to ensure that you are protected legally. Yes an attorney, he or she is part of your financial team as well. Another team member, especially for those sole business owners that wear more than one hat, you will need a mentor or coach. This person is vital because they are usually successful people who do not mind encouraging you to push ahead at all costs and succeed.

Wisdom Can Lead to Wealth

There is a level of wisdom that each of us has to offer. Maybe you have been working in a particular industry for quite some time and you can do certain things "in your sleep". That area could be parenting or some other vocation. Why not utilize that knowledge to benefit others and benefit yourself at the same time? As an expert in a particular area many can benefit from your knowledge.

This could be the start of a stream of income for you to make you debt free, buy a new home, put your child through school or anything else you might think of. The wisest man ever to live, Solomon recieved annual income because people from other regions wanted to sit at his feet in order to hear his wisdom. If you have the expertise, security and the patience to share your knowledge with the masses then why not and unleash this stream of revenue that has been cut off to you until now.

You can share with the masses through ebooks, blogs or face to face consulting. Of course you want to consult with an expert before putting yourself out there! Just a little wisdom for you, I hope that you can EARN from it!

Discipline

Discipline has six meanings according to the Merriam Webster’s Dictionary. I would like to focus on three of them:

(1) training that corrects, molds, or perfects the mental faculties or moral character
(2) control gained by enforcing obedience or order; orderly or prescribed conduct or pattern of behavior
(3) a rule or system of rules governing conduct or activity

Ok what does discipline have to do with money? It has everything to do with making and saving money as it takes discipline to do both.

It takes discipline to stop impulse spending – spending money on an item(s) you see often, think you need or would like the item and discover after purchasing the item that it lacks in several areas particularly in the area of need and desire.

It takes discipline to make serious money because there has to be a level of persistence in whatever business activity you are engaged with in order to experience any level of sustained success.

How disciplined are you with regard to making and saving money? If you answer is that you are not very disciplined when it comes to these two areas you are not alone. I have found that most Americans are not disciplined in these areas either. But the great thing is that these disciplines can be learned.

We learn how to be disciplined when it comes to making and spending money by education and association. The right education (read books referred to in my other blogs) and associations (those who are already disciplined in these areas) will assist us in training our minds about these matters thus allowing us to control our spending behavior and establishing a standard to govern our financial picture by.

If you are not disciplined when it comes to making and spending money your financial picture will always look ugly with moments of beauty. Get disciplined now!

How Good of Financial Weather Person Are You?

If most of us really admit we only know it's raining when we look outside and we see drops of water falling from the heavens. We really never knew the rain was coming. Why is that? Most of us have not been trained in the methods needed to analysis weather patterns nor have we been trained to utilize the equipment needed to do this either. The price for not listening to the weather man or not being able to predict the waether yourself will only cost you wet clothing or hair. But if you are not able to predict the "financial weather" it can cost you everything.

How do you become a good financial weather person? I am glad you asked, here are some easy steps on becoming more financially savvy:

(1) Begin to listen to financial news channels like Bloomberg TV, CFNN, etc. All of their talk might sound like another language and make your head hurt but it will begin to make sense as you follow the other steps below.

(2) Begin to read books and magazines about wealth building and finances. This will build your financial IQ quickly and greatly decrease your learning curve. Good books for you here are Mad Money, anything by Mr. Warren Buffet or Rich Dad Poor Dad.

(3) Review key figures in the US like the unemployment rate, be abreast of the DOW Jones Index daily, Fed interest rates, etc. The US economy hinges on the attitude of the stock market, interest rates and unemployment. These numbers tell a story.

(4) Form a team for yourself which should consist of a financial planner and an accountant. If you find the right combination they will assist you in forecasting the financial weather as well. Make sure that your financial planner and accountant know each other and are on the same page though.

It is important that we all understand the financial weather that we face. In seasons where the money is flowing well we should be able to pay down debt and save bountifully. In seasons where the money is not flowing as well we can fall back on some of the savings we built up in order to survive until there is a point where the money is flowing good again.

Bottomline, we must determine whether we are in our:

Financial summer (everything is just marvelous, some rain and wind at times but nothing to worry about)

Financial winter (we need to be as frugal as possible because it is very cold and bare outside)

Financial fall / spring (transition times where we see both summer and winter conditions)