SUCCESS RULE # 42 - Be Financially Fit

Pretty simple rule, yet one that is often ignored or at a minimum, not really understood. We grow up not really being taught how to manage our finances and so we go to college, or perhaps get a job. We then get a checking account, a credit card…or two, or three, start spending, accumulating debt, and before you know it many folks are living paycheck to paycheck, or as we've seen over the past few years, find themselves in financial crisis. Bottom line, no matter how much money you earn, spend less (Watch a short video here.  The producer of this video holds all copyrights. Leader Development Institute has no connection to, nor endorses said company. Video is for illustrative purposes only). I know, you’re thinking a good lesson for our government to learn. Well perhaps, and someday, if I’m elected POTUS I’ll work on that. In the meantime let’s focus on your success.

It’s easy to be influenced by the media, marketing and peer pressure. We’re made to feel we can’t do without something, or pressured to, “Keep up with the proverbial Jones’s’”. But not you, you follow Rules and Tools for Success, you’re proactive and practice self-discipline, eventually you will be the “Jones’”. Don’t misunderstand, credit can be a powerful tool if you understand it and use it wisely. For example, I use a credit card for just about every purchase I make, from candy bars to cars, thousands of dollars a month. HOWEVER, and this is a big however, at the end of the month, when the statement shows up in the mail, I pay it in full. For me, that’s hundreds of thousands of airline miles and free tickets. For others it’s cash back, or a down payment on a car. HOWEVER, and this is a big however, if you do this, you MUST have the self-discipline to NOT overspend, and pay it in full every month.

Many years ago, after buying a car on credit, and paying it off, I continued to, “make the payment” to myself for several more years. During that time I worked to pay off my credit card debt, created an immediate emergency fund, started a long-term emergency fund, and saved to purchase my next vehicle for cash.  I continued to practice financial fitness and started investing in mutual funds and started an IRA. When I got a pay raise, I immediately put 20% of the raise into my IRA and another 20% into savings and/or my mutual funds. At the time, if I wanted a big ticket item, like new furniture or a big boy’s toy, I would either save until I had enough to make the purchase or, if I wanted to take advantage of a deal, I could “borrow” from my savings and pay myself back just as if I had to take out a loan, only difference was it was my money and no interest.

It’s approaching the holidays, shop wisely and exercise financial fitness. No matter where you are in your life, plan ahead (savings, emergencies, retirement, etc), prepare (savings, emergencies, retirement, etc), prevent (don’t over spend, pay bills, no consumer debt). Seek to avoid immediate gratification and instead practice self-discipline. If you are a supervisor, mentor your young employees. If you are a parent teach your children financial fitness early, if they are in high school or college, pass this rule on to them in full. If you are a young adult, START NOW!

Tips for Financial Fitness

·       Establish an immediate emergency fund. About $2,000.00 (Emergency house or car repair. Travel to

      ailing family member, etc)
·       Long-term emergency fund 6 months’ salary
·       Borrow from yourself
·       Use credit cards that offer cash return, or other benefit – use them for everything - then pay them off

      monthly.
·       Know you budget – and stick to it
·       Make the most of your retirement investment 20%(If you have a 401k with matching contributions, max

     it out, after that, contribute to an IRA)
·       Negotiate for everything (The time to learn is not with your car or your first home)
·      Establish multiple income streams (There are a number of  business opportunities to do this, but perhaps        the quickest and somewhat easiest is to invest)

Be Extraordinary! Be Debt Free!

SUCCESS RULE # 41 - Remember Where You Came From

Once again I have the privilege of bringing you an excellent rule written by my assistant Cindy Lee.  Read...Enjoy...and Remember! - Anthony Tormey

A few weeks ago, I was sorting through some old photos for one of my grown children.  In doing so, I came upon Christmas pictures from 1995.  At that time I was newly divorced and my mother had passed away earlier in the year.  My apartment was in a run-down center-city converted house.  The entire thing consisted of an ill-equipped kitchen, drafty living room, two small bedrooms and a minuscule bathroom.  It was what I could afford on a barely-more-than-minimum salary.  Despite all of that, the photos contained smiling faces.  Pictures of the ceremonial gift unwrapping, children sitting cross-legged on the floor, plates being balanced on knees and a tiny tree decorated and lit as if to be in a grand mansion.  The scenes evoked memories of that Christmas so very long ago.

Success meant something different then.  It meant making the rent each month, paying the gas bill, scraping together money for food and spending time with my family to share what little bit I had.  Oh, how far I have come since those days.

Memories are something we all have.  Remembering is something we all do.  However, the two are not necessarily the same thing. 

In “Success Rule 17, Know Thyself”, there is a list of techniques to get to know yourself a little better.  One of the techniques is to “look back” at your life.  Looking back at your life can be both pleasurable and painful.  These things contribute to who you are today.  You may wonder how that can advance your success right now.  The key is to remember where you came from.

Remembering where you came from, what you’ve been through and what you have felt leads to a better understanding of other people and situations.  A better understanding leads to success.   Seem simple?  Let’s take a look.

Example 1:  People make mistakes.  You’ve made mistakes.  In the past, when you made a mistake, how were you confronted about it?  Was it from someone who “got in your face”? Or, was it from someone who helped you understand the mistake and how to correct it? 

Example 2:  You receive a phone call from an irate boss, co-worker or acquaintance.  Do you reflect their attitude?  Or, do you try to understand the situation, allow them to vent and then work toward a solution?

Example 3:  You are in the break room and over hear someone talking about a bad relationship break up.  Do you run to another person and say…”Did you hear…?”  Or, do you wait for a private moment and say… “I am sorry I overheard, if there is anything I can do to help, let me know.”

The list can go on and on.  In each of these scenarios, which action or reaction would you consider to be that of a “successful” person?

Success is not measured only by paychecks and possessions; it is also measured by who you are.  What kind of a person you are.  Arrogant?  Demeaning?  Patient?  Understanding?  Do people turn around when they see you coming or are you approachable? 

You were the “new guy” once.  You’ve been that irate caller.  You’ve been through bad situations.  Draw from your memories and remember where you came from.  Coming from a place of understanding will move you toward success.

Remember where you came from and be Extraordinary in your future!

 

Cindy Lee

Executive Assistant

Leader Development Institute