Monday, February 25, 2008

Non-Situational Integrity

Denis Waitley took the liberty of re-writing Edgar A. Guest's poem, "Sermons We See", to apply to setting an example as a real winner. Here is what Denis Waitley had to say…

‘I'd rather watch a winner, than hear one any day. I'd rather have one walk with me, than merely show the way. The eye's a better pupil and more willing than the ear. Fine counsel is confusing, but example's always clear. The best of all the coaches are the ones who live their deeds, for to see the truth in action is what everybody needs. I can soon learn how to do it, if you'll let me see it done. I can watch your hands in action, but your tongue too fast may run. The lectures you deliver may be very wise and true, but I'd rather get my lessons by observing what you do. I may misunderstand you, and the high advice you give, but there's no misunderstanding how you act and how you live. I'd rather watch a winner, than hear one any day!’

Tuesday, February 19, 2008

Efficiency, Effectiveness, and the Top Ten Percent

Efficiency is doing a good job at what you are working on. It is finding the fastest, most economical, and most efficient way to do the task at hand.
Effectiveness is prioritizing. It is knowing what to work on. It is figuring out what task or tasks are the most important, that need to be done right away, and knowing what tasks don’t really need to be done at all.
Efficiency is being the best bricklayer you can possibly be. Effectiveness is knowing that you are building a frame house, and a bricklayer isn’t needed.
When you combine efficiency and effectiveness, you are on your way to becoming the best in your field. Why care about being the best in your field? As Brian Tracy says, “All the rewards go to the top ten percent.” You see, average people get average results. This is true in any field. Average people are replaceable. The average worker can quit their job today, and be replaced tomorrow, and the company won’t be hurt in the least. Average is most people (hence the term average). But the top ten percent are irreplaceable. The top ten percent require no supervision, because they always give their best. They demand more of themselves than any boss could ever demand of them. These people are voracious learners, have a great attitude, seek out improvement, and consistently perform above expectations. The company can not run without these key people, so these people get to name their price. They are invaluable. If their company doesn’t want to pay them enough, it is only a matter of time until the competition will. These people stand out wherever they go.
The average American worker complains that they work too hard and don’t get paid enough. I say the average American worker complains too much and doesn’t work hard enough – if they worked too hard there is a high likelihood they wouldn’t still be average. Further, they get paid about what they are worth. You see, wages tend to be set at the least a company can pay to fill a position with a competent worker, and the average worker tends to do the least they can do to fill the demands of their job. While the average worker complains about their pay, if they truly felt they were worth more than what they made, they would demand and receive higher pay, or quit and go find a job that paid them more in line with what they thought they were worth. The problem is the average American worker is looking too closely at themselves and their wants and needs, and not closely enough at the formula. If you get paid about what you are worth, what does it take to improve your results?
Just this one thing - make yourself more valuable! Be more efficient. Be more effective. Work harder and smarter. Have a great attitude. Make yourself invaluable, and the cream will rise to the top. It is impossible for it to happen any other way. When you become the top ten percent, you get noticed, and you get promoted. If not with your company, the competition lures you away. Maybe you leave to start your own business. If you are in the top ten percent, but don’t advance in your field, some other opportunity finds you. The top ten percent get recognized for their superior effort and attitude and work, by co-workers, bosses, competitors, customers, etc. The top ten percent stand out, and it is just a matter of time until the right opportunity finds them. Rest assured, if you get to be in the top ten percent at what you do, the accolades and the rewards will come. If you feel you have been in the top ten percent for a long time, and yet you haven’t received the accolades and rewards, perhaps you should evaluate more closely whether or not you are really in the top ten percent. Ask your boss if you are top ten percent material or not, and, if not, what it will take to get you there? Ask your customers the same thing. Figure out the missing ingredient, and then do something about it.
When I was an 8-5 employee, I was good at what I did. I received a few promotions, and eventually landed in a spot where I was very comfortable. I had a good attitude, worked hard, was efficient and effective, and, if asked, I probably would have said I was in the top ten percent. Early on, maybe I even was.
However, I did real estate on the side. In my real estate, I put in whatever time was needed to get the job done. I patched a tenant’s leaking roof in the middle of a rainstorm. I crawled under mobile homes in mud and gunk to do repairs because I couldn’t find someone who would do it for me. I routinely did paperwork in the wee hours of the night. I was gracious and courteous and kept a level head with tenants that would have drove most normal people irate. For several years, I spent six and seven days a week getting up at 5am, and not going to bed until 11pm, midnight, 1am, or later, because that is what it took for me to manage my full time job, have time for my family, and still make the progress I wanted to make with my real estate investing. No amount of real estate was too much, because I loved doing it, and I especially loved seeing the progress I was making. In my 8-5, I was average and thought I was top ten percent. In my real estate, I was top ten percent. The difference was the passion to be efficient, effective, and get the job done right, on time, every time, no matter what. In my 8-5, I got complacent. I didn’t strive to get better and better – I just did what had to be done. Eventually, recognizing that the passion was no longer there in my 8-5 is why I finally did quit. If the passion dies out in real estate investing, I may eventually have to quit that, too. However, for right now, I still strive to be the best real estate investor I can be. I am still a voracious learner, and I am still improving, and I don’t intend to quit; at least not until I can go out on top!
If you are already in the top ten percent in your field, congratulations! If you are still on the way up, you have it in you! Keep your head up, be efficient, be effective, have a great attitude, and don’t you dare give up – the rewards will be well worth it! Best wishes!

Friday, February 15, 2008

Financial Freedom: How to Keep Score in the Money Game, and Why It Matters!

[Article adapted in part from The Maui Millionaires by David Finkel & Diane Kennedy]

Far too many people will never be financially free simply because they unwittingly fool themselves as to the real status and direction of their financial lives. Most millionaires agree that in order to win the money game they must consistently update a meaningful measure of financial score, and they have to keep track of the trend (which way am I headed, how much progress or lack of progress am I making, and how fast is it happening). When you have this information, in a reliable, consistent, and simplified format, you are able to make accurate financial decisions and accelerate your progress towards financial freedom.
The main wealth trap for most people is fooling themselves as to the real score of the game. People fool themselves for three primary reasons…
First, far too many people simply take the path of least resistance, and do nothing. They put their long-term financial future into the hands of others because it is easy and expected (sadly, it is the norm). “Social Security or my kids will take care of me.” “Hopefully I will have a pension fund.” “I’ll find a way to get by somehow – I always have.” This is an almost certain path to financial failure! Yes, it takes energy and effort to put your financial house in order. But it takes 100 times more energy and effort in the long run to live your life paycheck to paycheck, to struggle to get by, and to work your whole life and eventually depend on someone else to support you when you are able to work no longer. The old adage is true: An ounce of prevention is worth a pound of cure.
Second, people fool themselves about their current financial status because of ignorance. They never learned financial skills, they don’t understand the how or why of figuring it out, that was good enough for their parents so it is good enough for them, etc. Let me (Finkel, Kennedy, and Lund - haha) just say, YOU are totally, 100% responsible for your financial success, and ignorance is no excuse; it is a cop out and an acceptance of financial failure.
Third, people fool themselves about the real condition of their finances because of fear and shame. Millions of people are afraid to look at their financial status because it is too scary for them, or it is filled with painful feelings of shame. They may have lived beyond their means for years, and are ashamed of the big negative number that represents their net worth. Maybe the idea of anyone finding out their true financial status threatens them immensely. These people might rationalize, fantasize, ignore, distract, or flat out deny the truth. Right up to the point where their financial house of cards comes crashing down around them. If this is you, at some point your financial status is going to come out, one way or another, so you might as well bring it out into the open yourself, and start making it all that it can be.
So, what is the solution? First, understand that the foundation for wealth and financial freedom is changing yourself on the inside. It is knowledge, followed by a little discipline. When you upgrade what is on the inside, you empower yourself to get richer on the outside. And YOU BETTER KEEP SCORE! You can not win this game if you do not keep score!
If you haven't already, begin today to spend a little time getting acquainted with finances, net worth, cashflow, passive income, etc. It doesn’t have to be hard or complex. Start setting a percentage of your income aside for saving and investing. Set up a plan to get rid of credit card debt if necessary. If you start slow and simple, and you continue to spend a little time learning along the way, eventually bigger numbers will happen with more and more ease. “It’s not the amount, it’s the Hobbitt!” Seem familiar? You might remember from previous e-mails, my son Justin repeated that at age two (when he couldn’t pronounce habit). You probably recognize patterns and repeats in everything I say and do… That is because the rules of this game are short and simple. People are scared of it because they think it is more complex than it really is. It is the discipline of doing it consistently that is the tough part. For every minute of time I spend on financial knowledge, I spend an hour on trying to motivate myself and others. The knowledge is easy. Doing it is actually easy. Getting yourself to do it over and over again over a long period of time is a little tougher. Consistent persistency and persistent consistency is how Richard Flint might put it (though he never talks specifically about money or finances in any of his material). But it is oh so worth it!!! Get started, learn some things, make some progress now, and later you can focus on wealth accelerators like clarity/focus and leverage!
Let me briefly discuss my own personal scorecard, to give you an idea what it takes. It took me a couple hours to set it up, tops. I have a one page net worth statement. It lists my assets, liabilities, and net worth (which is merely the difference between the two). Every month it takes me about ten minutes to update it (occasionally more if multiple houses are bought and/or sold in a particular month). I watch it over time to monitor my progress, to see what is working and what is not, and with this clear financial picture, I am able to learn from the past and make wise choices for the future. I am also able to notice if I slack off for too long, and give myself a kick in the pants. Because I own a lot of real estate, I also have a one page Real Estate Owned sheet, which breaks down my real estate (and mortgages paid to me), what they are worth, and what I owe on them. This doubles as a partial cash flow statement because it also shows the flow of money in and out of my real estate and mortgages. With a minimal amount of upkeep (again, about ten minutes a month), these two pages (and if you don’t have a lot of real estate or own your own business, you would only need one page) allow me to keep my finger on the pulse of my race for financial freedom. This also gives me everything I need, quickly and all in one place, when I apply for a mortgage or loan or make other financial decisions. To simplify even further, you might remember that when I first started on the road to wealth, my scorecard was merely a chart that tracked how much money was in my savings account. That was it. Can you make yourself start keeping score today, simple as possible, so you will know if you are doing what it takes to get on the road to financial freedom? Are you worth it?
Ever hear anyone say “Money isn’t everything”, or something akin to that? Did you ever ask them how their finances were, or did you not really need to? Money isn’t everything, and it certainly isn’t the only thing. With just a few seconds (literally) thinking about my priorities, there is no way I would ever put money above fourth on my list, and maybe not even that high. However, having money allows me to take better care of my higher priorities. I can give more appropriately to God. I can take better care of my family. It is easier for me to act with integrity in everything I do (even someone of the highest integrity might resort to stealing if they had to in order to feed their family). Winning the money game, and achieving financial freedom, is awesome, and it doesn’t require sacrificing who you are or how you live - having money doesn’t make the man; it just reveals the man (or woman)! It requires a little bit of knowledge, some long term thinking, a little bit of discipline, and a little bit of… Keeping Score. You have to play the money game no matter what, so you might as well play to win! And finally, one last time, YOU CAN NOT WIN THE MONEY GAME IF YOU AREN’T KEEPING SCORE!

-Best wishes

Wednesday, February 6, 2008

Never Fail (At Anything You Really Want In Life)!!!

This might seem a bit “hokey” to some of you, but I offer it only because I have seen it work in my life, and I believe it to be true. I believe that God wants each of us to have more, do more, be more, and to give back in proportion to our blessings. 'To he who hath, more will be given, and to he who hath not, even that little which he hath will be taken away'. I personally think that God wants each one of us to live to our fullest potential; to make the most of our God-given talents. However, the decision is largely up to us.
So, first, I propose that a person needs to figure out what their God-given talents are. A good way to get started is by asking, what do I enjoy doing? What am I really good at, and what have I been successful at in the past? What am I really passionate about? What will make me willing to stay up late every night and get up early every morning? That is where you should start looking, first, and then, when you find your passion, figure out how to make money doing it.
Second, with that figured out, we need to recognize that God is great, and God is all-powerful and all-being. God is in everything, and in everyone. Since God is great, and God is in everyone, we arrive at the conclusion that every one of us on Earth has potential greatness in us. This begs the question, have we tapped into our inner greatness?
Third, I propose that we interact with God in many ways, including prayer and reading the Bible, but our response back from God, in this day and age, is primarily discovered in our hearts and in our minds. Some might think you feel it in your gut, have an intuition, have a premonition, or somehow just know that you are supposed to do or not do something, any of which is probably fine. While I don’t believe we get perfect answers 100% of the time, I do think that if we give careful consideration, analyze information, pray, and come up with an answer, it will usually be right for us in that circumstance at that time, and sometimes even when it seems later it was wrong, it is because God knew we needed that setback first so that his bigger, better plan could play out for us. Napoleon Hill said that in every failure are the seeds of an equal or greater success, and if you believe, it will be true for you. Sometimes what we do wrong turns out to be our biggest blessing.
As an example in my life, most of my tough decisions have turned out great, but I can think of a recent example where I missed the boat, as well. I had this ‘feeling’, for several weeks, that I should contact a lease/option tenant, inquire about how things were going, and see if I could talk them into buying. I knew the price we set on their lease/option was at the peak of the market, and was probably higher than current fair market value, and I thought of lowering the price to entice them. Rather than go to the trouble of making the call, and possibly leaving a little profit on the table in the interest of fairness, I took the route of least resistance. I fully intended to make that call ‘when I got around to it’, but I waited and did nothing. A couple of months later, that tenant/buyer called me, and said they were buying a new house. They said that only a couple weeks earlier, they saw a new subdivision near my house (that they were renting to own), and for kicks decided to just window shop. Turned out they thought it was a great bargain, and they got a contract and eventually bought it. Had I followed the ‘feeling’ God gave me, I feel certain I would have worked something out with them to sell them my house, and they never would have went window shopping. I think in the long run I may have done them a disservice as well as myself, because I think the new house they bought is of inferior quality compared to my house, and while new now, over time my house will outshine their new house. Still, because I didn’t “listen”, and take action on what God was telling me was the right thing to do, I missed the boat. Over the years I can think of dozens of examples like that, but very few examples of when I listened to that inner voice and regretted it.
Following all of the first three steps, we now have an idea of our God-given talents, we know we have potential greatness in us, and we are beginning to feel led to something we really want in life, and/or ways to achieve it. Fourth, we need to consistently give thought and energy to our purpose, dream, or goal. We need to visualize the end result as if it was already true, and thank God for the great result as if we already received it. This gets us in harmony with our desired result.
Fifth, we need to take actions consistent with our desired result. If we just sit back, think, visualize, and wait for the great results to come rolling in, it might be a very long wait. God will help us, when we first help ourselves. I once heard a joke about a man in financial distress. The man prayed over and over again, asking God to make him win the lottery. Finally, after many weeks of praying and waiting, he prayed asking God why, when he prayed so fervently, did God not make him win the lottery. This time God responded, saying, “I wanted to help you, but couldn’t you have at least bought a lottery ticket?” We often know what we want, pray for it fervently, but never take the first step towards meeting God part way. We have to do our part!
Sixth, stay positive, and manifest the greatness that is inside of you, not just in this one thing, but in all areas of your life. Begin to be great today, in your home, with your immediate family and friends, in your current job or career, and in all of your interactions with others. Be great in the details of everything you do, no matter how small. Treat others with kindness and fairness. Have integrity in everything that you do. 'How you do anything is how you do everything', and if you start manifesting greatness in small things, it will soon start spreading to bigger and better things. Don’t brag about how great you are or how great you will be. Just do it! People will start to notice how you do business, and how you handle your affairs, and they will want to be a part of what you have going on. I am reminded of a quote, “People will be drawn to you, and when they show up, bill ‘em!”, which I believe to be part joke and part truth. God pays attention to the biggest things, like keeping the planets in their rightful place in the universe, and he pays attention to the smallest details, like numbering the hairs on your head. When you show God greatness in the smallest details, he will allow you to show greatness in bigger and better things. Be great, and have faith!
Let me share two examples of how this plays out in my life through my real estate investing (which is, by the way, my passion!). I make every effort to have the utmost integrity, and to treat others fairly. I make sure I deliver on any promise I make. I have at times been given a lead by someone, simply because they said they couldn’t do anything with it. I worked the lead, figured out a workable deal, and went back to the person and asked what they wanted to make on the deal. They weren’t expecting anything, but I took care of them anyhow. How much more likely are they to contact me with other leads, as opposed to if I had not taken care of them out of kindness and a sense of fairness? The other example comes via my handyman. He has told me on multiple occasions that he charges everyone else more than me (and I know it to be true), because he likes working for someone that is fair, kind to him, and does business the right way. He appreciates that I have him always do the job right, even when I could save money by taking shortcuts that the buyer would never see (like using more insulation inside a wall instead of less or none at all). As a result, I consistently find my houses getting filled before the work is even done, and have buyers/renters tell me, “Your handyman was the clincher. He is a good man, and he says you are fair in your dealings and always do a quality job.” They often tell me about something specific that we repaired/replaced, and how they appreciate that we did it that way. The only way I can put it is to say trust me - doing the little things great every day, now, will bring rewards over time that can’t be comprehended until you get there.
Brian Tracy says that all of the rewards go to the top ten percent. There are no great rewards for mediocrity. Mediocre people are a dime and dozen, here today, gone tomorrow, and easily replaced. Now, I could go into a number of other things, like habits, continuous learning, what you think about comes about, daily declarations, managing your money, etc., but I would quickly get outside the point of this message, so I will save the long version for my book. For now, suffice it to say that if you start with these six steps, you will Never Fail (At Anything You Really Want In Life).