Category Archives: Beliefs

I’ve Been on a Personal Finance Hiatus

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For the past few months, really the past few years, I’ve been quietly probing my brain trying to discover if my wealth planning and financial journey has been the most optimal route.  And while I believe that I’ve done very well, at this point I think I would change a few things slightly.

If I were to rate my personal finance performance for the past 10 years, I’d have to give myself a B+ and maybe even an A-.  While a B+ is good, I think if I had done a few things differently, I probably could have raised that rating to at least a solid A- and probably a full-out A.

So for the next few months, I’m doing a lot of number crunching with Microsoft Excel and reviewing my financial beliefs and practices.  Shoot, maybe I’ll even write a book or perhaps even something a bit more ambitious in the future based on my analysis of the past 10financial years and how I could have followed a better path.  It’s a learning process, and since I didn’t come from a rich family, I’m still making mistakes along the way.  Small mistakes, not major ones, but mistakes all the same.

I wrote this just in case anyone wonders what has happened to me and why I don’t post with the frequency that my previous posting schedule followed (which was daily).  Hopefully I’ll be able to provide new exciting content that has a lot of benefit to the reader both in entertainment and in useful financial processes.

Thanks,

Don

 

Life is more than cartoons and crayons

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I’m having second thoughts about the way that I’m raising my kids.

Let me provide some background on my kids first, just to give you a point of reference.

  • Both kids get straight A’s in school, and do sports and other activities.
  • Both kids have good money management skills, thanks to the fact that the both have an allowance.
  • Both are respectful and well-mannered.
  • People are always telling us how great our kids are.

So what’s my problems?  Why am I writing this rant?  Am I insane?  maybe…

While I pat both my wife and I on our backs about the kids, I have to wonder if I can make it better, especially with respect to finances and entrepreneurship.

Initially, instead of teaching them to work for money, I wanted to teach them first to manage money, then eventually to make money work for them.  This is in stark contrast to the way I was raised.  I did a lot of chores, and got paid for certain chores.  While my kids have to make their beds and occasionally pick up their room, they don’t really get paid for doing chores, per say.  And this is my problem.  How do they learn to earn money if they aren’t earning money?

Rich Kid

Green with Envy, but Already Rich?

I’ll come home and see my kids either watching cartoons or other shows, or creating something (usually drawing or writing a short story), or playing minecraft…  To me this is wasted time and energy (although I have to admit, I do like my daughter’s short stories and drawings).  How do I encourage their business savvy without making it a chore?  I’m starting to wonder if I should require them to work for their allowance like I had to do as  kid… In hopes that such an allowance model would make them more money-wise.

My oldest is only 12, so perhaps I’m being to critical.  After all, in comparison, I can’t hold a candle to either of them.

I’m the parent, so it’s really up to me to show them the other paths than just watching TV and doodling.

Time to refocus and think.

Bests,

Don

Religion and Finances

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Religion can have a powerful effect on not only your life, but also your finances.

Religion can make you Poor

I have older friends with pictures of Jesus on ever wall of their house, and they believe that money is the root of all evil.  I don’t believe that money is the root of good or evil, to me, money is just a tool.  But those that do believe that “money is the root of all evil” give all of their money way with no real focus on their own well-being.  This is noble, but also a financial mistake.  Now my elderly friends are old and don’t have the money for taking care of themselves.  They just thought that the god of their religion would take care of them, but s/he doesn’t.  In this way, religion is powerful, but in a negative way with respect to your finances.  If it were a movie ending, the couple would win the lottery or some other miracle would happen, but for the majority of people this never happens.  Many will say that they weren’t dedicated enough, but I beg to differ.  Bad things happen to good people sometimes, god has nothing to do with it.

Religion can make you Rich

The believe that you are running god’s course by take any reasonable risk or opportunity that god lays upon your doorstep is a powerful thought, and sometimes can enable a hard-working religious person to become rich.  In fact, the believe that you will become rich by starting your own business, and putting in the time at it, can be very, very powerful!  I have quite a few friends that have followed this path, and prospered greatly by following the opportunity presented to them.

Even in the classic book “Millionaire Next Door” by Stanley and Danko, there is a chapter on believe and wealth.  Yes, Believe can be a very powerful motivator to become wealthy, and it only makes sense.  If you are focused with a religious fervor on accumulating wealth, the odds are stacked in your favor… at least if you try to tackle it with 100% effort.

I’d love to hear comments on this or your personal stories.

 

Are We Really Using All Of Our Collective Brainpower?

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Say you have 2 rooms, Room A and Room B .

In Room A, you have 1,000 people and the two smartest individuals (based on job, test scores, etc) are chosen to be the problems solvers and inventors (designated by test scores).  The rest of the group watchs TV or even sleeps.

In Room B, you have 1,000 people , but all 1,000 to be potential problems solvers and inventors.  At specific time intervals (maybe ever Friday), all individuals are to write an idea proposal that will be presented to the group, and then will be voted on whether it should be considered for implementation.

Which Room do you suppose would be the most productive?  I believe that most (if not all) countries follow the Room B approach.

IMHO, the problem is that we aren’t really using our brainpower potential to its fullest.  I think if everybody started thinking of ideas instead of wasting so much time watching TV, many problems might be solved.

The reasons why most people are not in Room B are:

  • The complexities of the legal system.  Nobody wants to think of great ideas only to have them stolen by other members that know how to create patents and can secure financing.
  • We are not trained that way.  From childhood we are taught to be followers.
  • Lack of desire to learn.  Just learning to learn doesn’t work for everybody.  But if students are shown how what they are learning works in real life or can be used to problem solve or invent things, perhaps kids would want to learn.
  • Financing.  Creating prototypes cost money.
  • Self Confidence.  This is really a combination of all the above mentioned bullet points.

I wonder what the world would be like if we all did try solve problems?

Look at Benjamin Franklin, he didn’t start inventing things until he was rich and retired at the age of 43.  Until that point, his primary goal was running his newspaper business and becoming wealthy.  Could you imagine what incredible inventions could be in existence if he started seriously inventing things starting in his 20s?

Can you imagine what a radically different world we would live in if we all did use our brainpower to problem solve and invent a few things?  Which room do you think you are  currently in as work, Room A or Room B?

MR