For most people success is defined by how much money you have or how much money your business makes. As a teenager my definition of success was like most people measured by making lots of money. As I grew up I realized in order to truly be successful I had to grasp certain principles that will allow me to be completely successful. As I began taking a deeper look at it, I found it is actually possible to be successful even before the money and possessions. How you ask? It has a lot to do with understanding principles and knowing no matter what you possess, you are already successful! Success is a state of mind. We need to adjust our mindset in order for us to recognize that we are successful and enable the true manifestation to take place. I'm going to share with you what I call The Five Ps For Success. They are Passion, Patience, Persistence, Perception and Purpose. I believe they will give you a sense of direction and deeper understanding as you walk in your own personal success!
Passion -
There is nothing in the world like doing something you want to do versus something you have to do. Whether you are working a regular job or have your own business, you have to make sure whatever it is you are doing you are passionate about it. You see, when you're passionate about something, the way you talk about it; everything just sounds different. You come off more confident and knowledgeable. People can sense your passion and you are simply more believable. See, when you are truly passionate about something you can deliver it, sell it or as I like to say close the deal. Having passion for something simply can not be made up. There is no formula, either you are into it or you're not. At the end of the day, you have to ask yourself how bad do you really want it.
Patience -
For most of us this is the hardest thing to do. exercise Patience. I'll be the first to say I wanted it yesterday, but that's just not realistic. No matter what it is in life you are trying to achieve you have to have patience. I'm sure at some point and time you've asked yourself will it ever happen. Like most people I too have been in a constant battle within myself trying to figure out is this going be THE year? What I've found out is that many of us "feel" we are ready and "truthfully we are not." This is where patience comes in. There comes a point when you have to realize if something is for you, it's for you. Nothing or no one can take it away. Sometimes in life we have to simply be patient and see things through no matter what obstacles lay ahead.
Persistence -
I have to ask the question. How bad do you want it? I think the biggest mistake I've seen as to why people are not successful is literally because they give up to soon. They are not persistent in their journey for success. Simply having persistence can get you along way in life. I often ask many successful entrepreneurs about how they obtained their success. A lot of them told me "they simply refused to give up!" They were so persistent in what they wanted; they would not let anything stand in their way. Being persistent can mean the difference between success and failure. No matter what it is you are in pursuit of, you have to remember to stay persistent. Persistence is everything when you're looking for success!
Perception -
Applied the right way perception can be very instrumental in your success. How people perceive you, your business or whatever you're trying to achieve can make all the difference in the world. My point of view is probably going to be a lot different from most because I market people for a living. I have to look at most things by how people's perception will be not by how it really is. It's like being an image consultant, the person's appearance basically is focused on more than who the person really is. Think about when you first put on a new suit or new dress you just feel different. It works both ways; the way you perceive yourself in it as well as the way others perceive you. The power of perception changes our entire outlook. Perception can catapult you and your business to another level.
Purpose -
Purpose is defined as something one intends to get or do. Do you know what your purpose is? I think for a lot of people the reason they are not successful is because they haven't found their purpose. Sometimes you have to ask yourself what is my true purpose for doing what I'm doing? See once you begin to understand the relevance of purpose, whatever it is you are trying to achieve becomes simple. You must be guided by purpose. There are many people with the desire to be successful but have no purpose to be successful. You have to make sure that whatever it is you are trying to achieve in life in order to be truly successful that you have really thought about your purpose first.
Wednesday, May 23, 2007
Monday, May 21, 2007
How to Handle Bossy People (Especially Those Who Aren't Even Your Boss!) - By Hale Dwoskin
Among the many types of "difficult" people you will inevitably face in your life are the bossy ones. These are people who, for no other reason than they want to, tell you what you should be doing with your life, how you should be doing it, and -- everyone's favorite -- what you shouldn't have done already.
The thing about bossy people, though, is that they think they're doing you a favor. Your mother, for instance, simply must tell you to wash your hands (even though you're nearly 40 years old) because she can't bear to let you walk around with germs on them. Your spouse, meanwhile, may try to boss you around in the backyard because he or she is sure you'll pull out the tomato plant instead of the milkweed. The potential catastrophes are simply too great to not lend these pearls of wisdom.
To the recipient, of course, being bossed around can be downright maddening, particularly when it's coming from someone who is probably better off minding their own business. However, you don't have to let bossy people get the better of you.
How to Handle Bossy People (in a Kind and Healthy Way)
Because nobody likes being bossed around or controlled, you may be tempted to confront the bossy person in an accusatory way, which will surely escalate the situation and leave you with nothing but more strife. So the next time you find yourself with a bossy, controlling person, use these tips to handle the situation with eloquence, class, and a positive outcome for you.
1. Confront the person in an appreciative way. You certainly should address a bossy person's offensive behavior, but you must do so gently. Start out by showing your appreciation, then stating that you're happy doing things your own way. (Try, "I appreciate that you're trying to help me do the dishes more effectively, but I prefer to use the sponge, not the dish rag.")
2. Release your frustrations. Being bossed around can bring up many negative feelings, including anger, frustration, anxiety, and even a loss of self-esteem. The last thing you want to do is internalize these feelings and create an unnecessary source of stress in your life. The Sedona Method is an ideal tool you can use to release these negative emotions simply, quickly, and for good.
3. Stand your ground. While realizing that most bossy people do have good intentions, you should make it clear to him or her that you have no intention of changing your behaviors. It may be that the person continues to try and control you, but it's also possible that, upon seeing your confidence, he or she will eventually back down and leave you be. Again, this should be done in a kind, not accusatory, way. (Such as, "Mom, I do so many things around the house the way you do, but when it comes to making salad, I like to cut the tomatoes in quarters, not slices.")
4. Give them a taste of their own medicine. Sometimes bossy people may not realize how offensive their remarks can be... until they experience it themselves. Next time someone tries bossing you around, experiment with being bossy in return. It may just help to curb the behavior altogether. For instance, if a bossy friend tells you how to get your hair cut, tell them your opinion about how they should be cutting theirs. Just be careful not to go overboard with this and become a bossy person yourself!
The thing about bossy people, though, is that they think they're doing you a favor. Your mother, for instance, simply must tell you to wash your hands (even though you're nearly 40 years old) because she can't bear to let you walk around with germs on them. Your spouse, meanwhile, may try to boss you around in the backyard because he or she is sure you'll pull out the tomato plant instead of the milkweed. The potential catastrophes are simply too great to not lend these pearls of wisdom.
To the recipient, of course, being bossed around can be downright maddening, particularly when it's coming from someone who is probably better off minding their own business. However, you don't have to let bossy people get the better of you.
How to Handle Bossy People (in a Kind and Healthy Way)
Because nobody likes being bossed around or controlled, you may be tempted to confront the bossy person in an accusatory way, which will surely escalate the situation and leave you with nothing but more strife. So the next time you find yourself with a bossy, controlling person, use these tips to handle the situation with eloquence, class, and a positive outcome for you.
1. Confront the person in an appreciative way. You certainly should address a bossy person's offensive behavior, but you must do so gently. Start out by showing your appreciation, then stating that you're happy doing things your own way. (Try, "I appreciate that you're trying to help me do the dishes more effectively, but I prefer to use the sponge, not the dish rag.")
2. Release your frustrations. Being bossed around can bring up many negative feelings, including anger, frustration, anxiety, and even a loss of self-esteem. The last thing you want to do is internalize these feelings and create an unnecessary source of stress in your life. The Sedona Method is an ideal tool you can use to release these negative emotions simply, quickly, and for good.
3. Stand your ground. While realizing that most bossy people do have good intentions, you should make it clear to him or her that you have no intention of changing your behaviors. It may be that the person continues to try and control you, but it's also possible that, upon seeing your confidence, he or she will eventually back down and leave you be. Again, this should be done in a kind, not accusatory, way. (Such as, "Mom, I do so many things around the house the way you do, but when it comes to making salad, I like to cut the tomatoes in quarters, not slices.")
4. Give them a taste of their own medicine. Sometimes bossy people may not realize how offensive their remarks can be... until they experience it themselves. Next time someone tries bossing you around, experiment with being bossy in return. It may just help to curb the behavior altogether. For instance, if a bossy friend tells you how to get your hair cut, tell them your opinion about how they should be cutting theirs. Just be careful not to go overboard with this and become a bossy person yourself!
Tuesday, May 15, 2007
Tips for Finding Quality Content on the Web By John Doetsch
Understanding how to locate high quality content online can be a strategic advantage for small business growth.
It can sometimes be extremely difficult to find quality content on the web. The Internet’s growth has allowed nearly anyone to become an “authority” on any number of topics. This can make the task of ensuring the quality of your site’s content seem quite daunting. However, by strategically using online content provided through several web-based resources, you can design a site that is useful, relevant and powerful. More importantly, understanding how to more effectively use the available content provides the foundation for driving greater traffic to and popularity for your online site.
Begin searching for quality content by visiting websites that are both similar to your own and continuously appear at the top of search engine rankings. Chances are, if they have a high search engine ranking, they have mastered the elements of strategic website design. Read through these sites and see what kinds of articles they have posted. Since not all of these sites will allow you to use their content on your own site, you’ll need to do another search to find free articles that are similar in content to those found on the sites you hope to emulate.
Next, refine your search by culling free article sites to find content that is relevant to your own website’s theme. Subject or classified directories provide a tremendous amount of resources for your perusal. These directories differ from search engines in that people have reviewed the content before including it in the directory, and they can be searched by subject as well as classification. Not surprisingly, individuals who are new to online marketing may find the idea of website optimization somewhat complicated. Therefore, consider searching the web for tutorials on how to most effectively look for quality content and free articles.
Finally, once you have found a series of articles to use from online resources, begin incorporating them into your site. However, before publishing anything onto your website, do a thorough review of the information since what you put on your site will be associated with your brand regardless of whether the content originated directly from you or not.
When evaluating the quality content of free articles consider several points:
1. Is the information accurate? Can the information given in the article be verified should the reader wish to do so?
2. What are the credentials of the author? Anyone can post web content. You should carefully review free articles before using them on your website. It could prove embarrassing to learn that a ten-year-old actually wrote the article that you included in your most recent e-mailed newsletter.
3. Is the article well-written? Does the article use good grammar and spelling and indicate a high level of quality? A poorly written article can damage your website’s credibility, and discourage your current visitors from making a return trip to your site.
4. Is the article current? Has it been updated? Some articles can remain on the web for years. Check the date of the original article and any updates. Today’s more sophisticated readers demand up-to-the-minute information. An outdated article is of no value to you or your readers.
5. Is the article objective? Does the author present an unbiased view of the subject? You do not want to present a one-sided view to your readers.
6. Is contact information provided? You may wish to contact the author to acquire permission to post his/her article, or to answer any questions you or your readers might have.
7. Are there links to other sites? Can readers access other websites to obtain further information on the subject?
Developing quality content online can prove difficult. Therefore, consider using the content available through online resources, after conducting due diligence on its source, to increase the customer engagement on your site. In doing so, you can help to build a stronger and more effective online presence.
John Doetsch is the editor of Websition.com, a website content provider featuring articles written by the Internet's most gifted authors. http://www.websition.com
Article Source: http://EzineArticles.com
It can sometimes be extremely difficult to find quality content on the web. The Internet’s growth has allowed nearly anyone to become an “authority” on any number of topics. This can make the task of ensuring the quality of your site’s content seem quite daunting. However, by strategically using online content provided through several web-based resources, you can design a site that is useful, relevant and powerful. More importantly, understanding how to more effectively use the available content provides the foundation for driving greater traffic to and popularity for your online site.
Begin searching for quality content by visiting websites that are both similar to your own and continuously appear at the top of search engine rankings. Chances are, if they have a high search engine ranking, they have mastered the elements of strategic website design. Read through these sites and see what kinds of articles they have posted. Since not all of these sites will allow you to use their content on your own site, you’ll need to do another search to find free articles that are similar in content to those found on the sites you hope to emulate.
Next, refine your search by culling free article sites to find content that is relevant to your own website’s theme. Subject or classified directories provide a tremendous amount of resources for your perusal. These directories differ from search engines in that people have reviewed the content before including it in the directory, and they can be searched by subject as well as classification. Not surprisingly, individuals who are new to online marketing may find the idea of website optimization somewhat complicated. Therefore, consider searching the web for tutorials on how to most effectively look for quality content and free articles.
Finally, once you have found a series of articles to use from online resources, begin incorporating them into your site. However, before publishing anything onto your website, do a thorough review of the information since what you put on your site will be associated with your brand regardless of whether the content originated directly from you or not.
When evaluating the quality content of free articles consider several points:
1. Is the information accurate? Can the information given in the article be verified should the reader wish to do so?
2. What are the credentials of the author? Anyone can post web content. You should carefully review free articles before using them on your website. It could prove embarrassing to learn that a ten-year-old actually wrote the article that you included in your most recent e-mailed newsletter.
3. Is the article well-written? Does the article use good grammar and spelling and indicate a high level of quality? A poorly written article can damage your website’s credibility, and discourage your current visitors from making a return trip to your site.
4. Is the article current? Has it been updated? Some articles can remain on the web for years. Check the date of the original article and any updates. Today’s more sophisticated readers demand up-to-the-minute information. An outdated article is of no value to you or your readers.
5. Is the article objective? Does the author present an unbiased view of the subject? You do not want to present a one-sided view to your readers.
6. Is contact information provided? You may wish to contact the author to acquire permission to post his/her article, or to answer any questions you or your readers might have.
7. Are there links to other sites? Can readers access other websites to obtain further information on the subject?
Developing quality content online can prove difficult. Therefore, consider using the content available through online resources, after conducting due diligence on its source, to increase the customer engagement on your site. In doing so, you can help to build a stronger and more effective online presence.
John Doetsch is the editor of Websition.com, a website content provider featuring articles written by the Internet's most gifted authors. http://www.websition.com
Article Source: http://EzineArticles.com
Monday, May 14, 2007
Road Trip to Empowerment - By Kay Richardson & Sarah Fuelling
Sarah and I pulled into Yellowstone's north entrance at 2:00 a.m. and were greeted by the official National Park warning: "Beware of Bison!" The bright yellow flyer had a comic yet equally horrifying black sketch: a bison, head down, horns forward, tossing a flailing human into the air, his camera flying. On this dark, moonless night, with no other human being in sight, we were thrilled to arrive, but uncertain whether to proceed.
* The Power of Facing Our Fears
There was no one to collect our entrance fee, no one to tell us if we were safe to continue, and no one to help us if needed. We each heard the voice of caution familiar to many women--am I taking too great a risk? There are times to heed that voice by not continuing and times to simply hear it, recognize the possible dangers, and trust your instinct to move ahead.
Road trips provide multiple opportunities for empowerment, beginning with the chance to face our fears. Each time we push past what's comfortable and succeed, we gain confidence in our power of discernment. This frees us to live an adventurous life!
That night in Yellowstone, we embraced just such an opportunity. With adrenaline pumping, we drove on into the park for one of the most exciting and beautifully eerie experiences we've ever had. Everywhere we looked, there seemed to be eyes--little dots of light in the night looking back at us--a set of two here, a group of many there. We drove slowly, taking it all in.
* The Power of Spontaneity
After an hour or so we parked our trusty Saturn on the paved shoulder. It was very late; we'd covered many miles that day. It's surprising how comfortable you can get with reclined seats, a pillow, and a sleeping bag.
On that trip we simply stayed wherever was convenient. Ironically, we'd planned it that way. Our day-to-day lives were filled with deadlines, decisions, and goals to reach. This road trip was an opportunity to step outside that and simply do whatever we wanted, whenever we wanted--a unique chance to let the children in us play and the adults rest.
By 4:00 a.m., we just wanted sleep. So we got comfortable in the car, giggling at ourselves for selecting the one spot in front of a pay phone. You know, just in case one of those bison got ideas...
* The Power of Others
One of the things you discover on road trips is how many interesting, kind, and caring people there are in the world. There were the folks who gave us gas when we realized our tank was nearly empty in a huge national park with the nearest gas station miles away. There was the camp host who brought extra firewood and doted on us like a grandfather. There were the countless smiles and moments of small talk.
It's easy to become wary of strangers, particularly with the barrage of tragic stories in the media. Road trips are a chance to experience firsthand the larger community we live in and feel support outside our usual world of friends, family, and colleagues. The power of that knowing includes a sense of greater security in our day-to-day lives and a feeling of connection rather than isolation from others.
* The Power of Self-Knowledge
Yellowstone Park was one of many destinations on that luxuriously long road trip, and through our journey together, we got to know ourselves in a new way. We were open to such learning because we had fewer distractions and time to consider our experiences. Unlike many life lessons that require big change for us to stop and notice, the things we learned were, for the most part, fun and easy.
Many of these lessons were practical nuggets of wisdom about what we really need to be comfortable. You can live without a hair dryer--but not without toothbrush and toothpaste. Moist wipes can clean hands, clean spills, clean the car, and clean your body in a pinch. A hot shower is one of life's greatest sensual pleasures. Clothes that "feel like you" are essential and empowering. Having gear that keeps you cozy in any weather frees you to enjoy the outdoors. Less is more; being able to find what you need because your space isn't cluttered is freeing.
* The Power of Creating Your Dreams
As we got to know our essential selves in a new way, our real dreams for our lives had room to surface. Around late-night campfires, we rediscovered some of our childhood dreams and explored others we wanted to pursue. We decided to act on them by writing down "My Five Dreams." We began: "I co-create with the universe..." and then listed five of our most significant life dreams. This brought them right into the present, as we took responsibility and claimed support from the spiritual realm to attract our dreams into our lives. The expansiveness of the road was echoed in our dreams--rather than being limited to one, we had five to expand on. This helped us develop an exciting life vision to take home, inspiring us to continue on our highest path.
* The Power of Forgiving Yourself
Another tool we hit on in our travels was the power of giving ourselves a break. We did some soul searching by writing things from the past we were carrying guilt or regret about. Then, from a spiritually connected place, we simply said, "I forgive myself for _____." The joy of being spontaneous on the road was magnified by the lightness of being that comes from truly forgiving oneself.
* The Power of Being
The ultimate power of any road trip is the opportunity to be a "human being," rather than a "human doing." Most of us live such hectic daily lives that we don't realize we are whole and complete just by being ourselves. Instead, we are constantly in motion, our focus on the next thing to be done or on the list we haven't gotten to. As a result, we can become disconnected from our experiences, unaware of who we are or what we need because we are too busy to notice. We become unable to adjust our lives to better suit our dreams and passions because we don't have enough time to do so or the self-knowledge to make good choices. There is incredible power in stepping outside our typical selves and venturing into the unknown.
Leaving behind the familiar can be frightening, even intimidating, and we often engineer our lives to avoid such situations. But the joy of travel and being with friends can push us to venture into those places, with the added bonus of it being our choice to do so rather than circumstances making the choice for us. The resulting learning and life experience are bonuses over and above the simple pleasures of a road trip.
So take the chance to face your fears. To be spontaneous. To reach out to others and be touched by them. To know yourself. To create your highest dreams. To forgive yourself, and to simply be. And if your road trip takes you to Yellowstone, watch out for those bison!
* The Power of Facing Our Fears
There was no one to collect our entrance fee, no one to tell us if we were safe to continue, and no one to help us if needed. We each heard the voice of caution familiar to many women--am I taking too great a risk? There are times to heed that voice by not continuing and times to simply hear it, recognize the possible dangers, and trust your instinct to move ahead.
Road trips provide multiple opportunities for empowerment, beginning with the chance to face our fears. Each time we push past what's comfortable and succeed, we gain confidence in our power of discernment. This frees us to live an adventurous life!
That night in Yellowstone, we embraced just such an opportunity. With adrenaline pumping, we drove on into the park for one of the most exciting and beautifully eerie experiences we've ever had. Everywhere we looked, there seemed to be eyes--little dots of light in the night looking back at us--a set of two here, a group of many there. We drove slowly, taking it all in.
* The Power of Spontaneity
After an hour or so we parked our trusty Saturn on the paved shoulder. It was very late; we'd covered many miles that day. It's surprising how comfortable you can get with reclined seats, a pillow, and a sleeping bag.
On that trip we simply stayed wherever was convenient. Ironically, we'd planned it that way. Our day-to-day lives were filled with deadlines, decisions, and goals to reach. This road trip was an opportunity to step outside that and simply do whatever we wanted, whenever we wanted--a unique chance to let the children in us play and the adults rest.
By 4:00 a.m., we just wanted sleep. So we got comfortable in the car, giggling at ourselves for selecting the one spot in front of a pay phone. You know, just in case one of those bison got ideas...
* The Power of Others
One of the things you discover on road trips is how many interesting, kind, and caring people there are in the world. There were the folks who gave us gas when we realized our tank was nearly empty in a huge national park with the nearest gas station miles away. There was the camp host who brought extra firewood and doted on us like a grandfather. There were the countless smiles and moments of small talk.
It's easy to become wary of strangers, particularly with the barrage of tragic stories in the media. Road trips are a chance to experience firsthand the larger community we live in and feel support outside our usual world of friends, family, and colleagues. The power of that knowing includes a sense of greater security in our day-to-day lives and a feeling of connection rather than isolation from others.
* The Power of Self-Knowledge
Yellowstone Park was one of many destinations on that luxuriously long road trip, and through our journey together, we got to know ourselves in a new way. We were open to such learning because we had fewer distractions and time to consider our experiences. Unlike many life lessons that require big change for us to stop and notice, the things we learned were, for the most part, fun and easy.
Many of these lessons were practical nuggets of wisdom about what we really need to be comfortable. You can live without a hair dryer--but not without toothbrush and toothpaste. Moist wipes can clean hands, clean spills, clean the car, and clean your body in a pinch. A hot shower is one of life's greatest sensual pleasures. Clothes that "feel like you" are essential and empowering. Having gear that keeps you cozy in any weather frees you to enjoy the outdoors. Less is more; being able to find what you need because your space isn't cluttered is freeing.
* The Power of Creating Your Dreams
As we got to know our essential selves in a new way, our real dreams for our lives had room to surface. Around late-night campfires, we rediscovered some of our childhood dreams and explored others we wanted to pursue. We decided to act on them by writing down "My Five Dreams." We began: "I co-create with the universe..." and then listed five of our most significant life dreams. This brought them right into the present, as we took responsibility and claimed support from the spiritual realm to attract our dreams into our lives. The expansiveness of the road was echoed in our dreams--rather than being limited to one, we had five to expand on. This helped us develop an exciting life vision to take home, inspiring us to continue on our highest path.
* The Power of Forgiving Yourself
Another tool we hit on in our travels was the power of giving ourselves a break. We did some soul searching by writing things from the past we were carrying guilt or regret about. Then, from a spiritually connected place, we simply said, "I forgive myself for _____." The joy of being spontaneous on the road was magnified by the lightness of being that comes from truly forgiving oneself.
* The Power of Being
The ultimate power of any road trip is the opportunity to be a "human being," rather than a "human doing." Most of us live such hectic daily lives that we don't realize we are whole and complete just by being ourselves. Instead, we are constantly in motion, our focus on the next thing to be done or on the list we haven't gotten to. As a result, we can become disconnected from our experiences, unaware of who we are or what we need because we are too busy to notice. We become unable to adjust our lives to better suit our dreams and passions because we don't have enough time to do so or the self-knowledge to make good choices. There is incredible power in stepping outside our typical selves and venturing into the unknown.
Leaving behind the familiar can be frightening, even intimidating, and we often engineer our lives to avoid such situations. But the joy of travel and being with friends can push us to venture into those places, with the added bonus of it being our choice to do so rather than circumstances making the choice for us. The resulting learning and life experience are bonuses over and above the simple pleasures of a road trip.
So take the chance to face your fears. To be spontaneous. To reach out to others and be touched by them. To know yourself. To create your highest dreams. To forgive yourself, and to simply be. And if your road trip takes you to Yellowstone, watch out for those bison!
The Truth about Debt By Dave Ramsey
Myth: Debt is a tool and should be used to help create prosperity.
Truth: Debt isn't used by wealthy people nearly as much as we are led to believe.
Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree.
According to a recent USA Today article about debt, 78% of Baby Boomers have mortgage debt, 59% have credit card debt, and 56% have car payments. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment? This is how the wealthy really build their wealth. Debt is dumb. Welcome to the real world!
Dave Ramsey's Background
When training for my first career in real estate, I was told that debt was a tool. "Debt is like a fulcrum and lever," allowing us to lift what we otherwise could not lift. We can buy a home, a car, start a business, or go out to eat and not be bothered with having to wait. I remember a finance professor telling us that debt was a two-edged sword, which would cut for you like a tool but could also cut into you and bring harm.
The myth has been sold that we should use OPM (other people's money) to prosper. The academic garbage is spread really thick on this issue. We are told with sufficient snobbery and noses in the air that sophisticated and disciplined financiers use debt to their advantage. Careful there, you'll get a sunburn on your upper lip.
Consider the Risk
My contention is that debt brings on enough risk to offset any advantage that could be gained through leverage of debt. Given time - a lifetime - risk will destroy the perceived returns purported by the myth-sayers. I once was a myth-sayer myself and could repeat the myths very convincingly. I was especially good with the "debt is a tool" myth. I even sold rental property that was losing money to investors by showing them, with very sophisticated internal rates of return, how they would actually make money!
Boy, what a reach. I could spout the myth with enthusiasm, but life and God had some lessons to teach me. Only after losing everything I owned and finding myself bankrupt did I think that risk should be factored in, even mathematically. It took my waking up in "intensive care" to realize how dumb and dangerous this myth is. Life hit me hard enough to get my attention and teach me.
According to Proverbs 22:7, "The rich rule over the poor, and the borrower is slave of the lender" (NRSV). I was confronted with this scripture and had to make a conscious decision of who was right - my broke finance professor, who taught that debt is a tool, or God, who showed the obvious disdain for debt. Beverly Sills had it right when she said, "There is no shortcut to any place worth going."
Truth: Debt isn't used by wealthy people nearly as much as we are led to believe.
Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree.
According to a recent USA Today article about debt, 78% of Baby Boomers have mortgage debt, 59% have credit card debt, and 56% have car payments. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment? This is how the wealthy really build their wealth. Debt is dumb. Welcome to the real world!
Dave Ramsey's Background
When training for my first career in real estate, I was told that debt was a tool. "Debt is like a fulcrum and lever," allowing us to lift what we otherwise could not lift. We can buy a home, a car, start a business, or go out to eat and not be bothered with having to wait. I remember a finance professor telling us that debt was a two-edged sword, which would cut for you like a tool but could also cut into you and bring harm.
The myth has been sold that we should use OPM (other people's money) to prosper. The academic garbage is spread really thick on this issue. We are told with sufficient snobbery and noses in the air that sophisticated and disciplined financiers use debt to their advantage. Careful there, you'll get a sunburn on your upper lip.
Consider the Risk
My contention is that debt brings on enough risk to offset any advantage that could be gained through leverage of debt. Given time - a lifetime - risk will destroy the perceived returns purported by the myth-sayers. I once was a myth-sayer myself and could repeat the myths very convincingly. I was especially good with the "debt is a tool" myth. I even sold rental property that was losing money to investors by showing them, with very sophisticated internal rates of return, how they would actually make money!
Boy, what a reach. I could spout the myth with enthusiasm, but life and God had some lessons to teach me. Only after losing everything I owned and finding myself bankrupt did I think that risk should be factored in, even mathematically. It took my waking up in "intensive care" to realize how dumb and dangerous this myth is. Life hit me hard enough to get my attention and teach me.
According to Proverbs 22:7, "The rich rule over the poor, and the borrower is slave of the lender" (NRSV). I was confronted with this scripture and had to make a conscious decision of who was right - my broke finance professor, who taught that debt is a tool, or God, who showed the obvious disdain for debt. Beverly Sills had it right when she said, "There is no shortcut to any place worth going."
Tuesday, May 8, 2007
The Secret to Saving Money By Dave Ramsey
In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. -Proverbs 21:20
Saving money is not a matter of math. You will not save money when you get that next raise. You will not save money when that car is paid off. You will not save money when the kids are grown. You will only save money when it becomes an emotional priority.
We all know we need to save, but most people don't save like they know they need to save. Why? Because they have competing goals. The goal to save isn't a high enough priority to delay that purchase of the pizza, DVD player, new computer, or china cabinet. So we purchase, buy, consume all our dollars away or, worse yet, go into debt to buy these things. That debt means monthly payments that control our paychecks and make us say things like, "We just don't make enough to save any money!" Wrong, wrong, wrong! We DO make enough to save money; we just aren't willing to quit spoiling ourselves with our little projects or pleasures to have enough left to save. I don't care what you make - you can save money. It just has to become a big enough priority to you.
If a doctor told you that your child was dying and could only be saved with a $15,000 operation that your insurance would not cover and could only be performed 9 months from today, could you save $15,000? Yes! Of course you could! You would sell things, you would stop any spending that wasn't required to survive, and you would take two extra jobs. For that short 9 months, you would become a saving madman (or madwoman). You would give up virtually anything to accomplish that $15,000 goal. SAVING WOULD BECOME A PRIORITY.
The secret to saving? FOCUSED EMOTION. The secret to saving money is to make it a priority, and that is done ONLY when you get some healthy anger or fear and then focus that emotion on your personal decisions. Harnessing that emotion will make you move yourself to the top of your creditor list. Then ask yourself, "Which bill is the most important? After tithing, who should I pay first this month?" The answer is YOU! Until you pay God first, then yourself, then everyone and everything else, you will never save money.
The advertisers and marketing community are affecting our emotions every day and taking every dollar we have by making us see our wants as needs. It is time for this to stop! Emotions make great slaves, but they are lousy masters. No matter how educated or sophisticated we are, if we are not saving all we should be, we are being ruled by emotions, not harnessing them as financial planning slaves.
So whether you are saving for college tuition, a trip to the family reunion, new school clothes for little Bobby or Sally, or anything else, start saving NOW! It's never too late!
Saving money is not a matter of math. You will not save money when you get that next raise. You will not save money when that car is paid off. You will not save money when the kids are grown. You will only save money when it becomes an emotional priority.
We all know we need to save, but most people don't save like they know they need to save. Why? Because they have competing goals. The goal to save isn't a high enough priority to delay that purchase of the pizza, DVD player, new computer, or china cabinet. So we purchase, buy, consume all our dollars away or, worse yet, go into debt to buy these things. That debt means monthly payments that control our paychecks and make us say things like, "We just don't make enough to save any money!" Wrong, wrong, wrong! We DO make enough to save money; we just aren't willing to quit spoiling ourselves with our little projects or pleasures to have enough left to save. I don't care what you make - you can save money. It just has to become a big enough priority to you.
If a doctor told you that your child was dying and could only be saved with a $15,000 operation that your insurance would not cover and could only be performed 9 months from today, could you save $15,000? Yes! Of course you could! You would sell things, you would stop any spending that wasn't required to survive, and you would take two extra jobs. For that short 9 months, you would become a saving madman (or madwoman). You would give up virtually anything to accomplish that $15,000 goal. SAVING WOULD BECOME A PRIORITY.
The secret to saving? FOCUSED EMOTION. The secret to saving money is to make it a priority, and that is done ONLY when you get some healthy anger or fear and then focus that emotion on your personal decisions. Harnessing that emotion will make you move yourself to the top of your creditor list. Then ask yourself, "Which bill is the most important? After tithing, who should I pay first this month?" The answer is YOU! Until you pay God first, then yourself, then everyone and everything else, you will never save money.
The advertisers and marketing community are affecting our emotions every day and taking every dollar we have by making us see our wants as needs. It is time for this to stop! Emotions make great slaves, but they are lousy masters. No matter how educated or sophisticated we are, if we are not saving all we should be, we are being ruled by emotions, not harnessing them as financial planning slaves.
So whether you are saving for college tuition, a trip to the family reunion, new school clothes for little Bobby or Sally, or anything else, start saving NOW! It's never too late!
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