The New Book has Arrived!

Invest in Yourself

My new book, Invest in Yourself has been released!

I am so very excited to make this available to you. You will learn more strategies to get ahead and gain control of your financial future.

In this you will learn:

-How to use leverage to kickstart your nest-egg

-How to pay down your mortgage quickly

-How to think more like the rich

I expand on some of the ideas in my first book BYOB: Be Your Own Bank and get even deeper into:

-How to preserve your wealth

-How to pick stocks for passive income

-Why you need to be rich

If you have read BYOB, then you will really appreciate where I take you in Invest in Yourself

Available here:

Amazon

KOBO

Barnes & Noble

Apple Books

Audiobook coming soon!

Thank you to everyone for your support.

Peri

Pay Yourself First

Big Rocks vs Sand

There is a classic story that is always told about the professor who presents to his class an empty jar. This represents your life. You then have another jar full of sand and yet another jar full of rocks. The sand represent the small stuff and the stones represents the big, important stuff. He pours the sand into the first empty jar. Then he tries to pour the rocks into it, but there is not enough room. He then does it in reverse. He pours the big rocks into the empty jar, and the sand pours in easily between the rocks. This represents how to prioritise your life. If you always prioritise the small stuff by pouring that into your life jar first, or filling your days with “busy work” you never have room for the big important stuff. 

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This is usually a metaphor for how people spend their time and I love the idea. In the art of time management it is always best to spend your time on your most important task. It is too easy to get distracted by small interruptions. That is why rich people get other people to do mundane tasks for them (cooking, cleaning, chores, errands) as that is not a productive use of their time. It makes sense and time really is our most valuable asset.

This same principle applies to money management too. 

Saving Money

A lot of budgeting plans involve such suggestions as “cut back on your $5 latte every day and you will earn an extra $150 a month”. I am all for not wasting money on stupid things, but you really need to start with the big rocks first.

It makes sense to make your biggest efforts towards saving money against your biggest expenses. You need to take a hard look at your big items and try to make money saving decisions in those areas first, before you cut out the daily coffee.

By saving money on the big items you make the biggest impact on your financial life. 

The average American family spends over 70% of their income on three things:

Housing

Transportation

Food

The two most impactful categories are:

Housing

Transportation

1. Housing - You really need to take a hard look at what you are spending on accommodations every month as a percentage of your net income. This often tends to be our largest expense and is where we can potentially find our biggest savings. We hate to look at this area as we often find ourselves quite attached to where we live as we associate it with “home” and it makes us feel safe and secure. It is also a huge pain in the neck to pack up and move somewhere new. It is disruptive to our lives and can cause a lot of upheaval. But if your living expenses are costing you more than 50% of your net income, you have some thinking to do. 

You need to find a new place to live.

All we really need is a warm safe environment where we can rest and enjoy time with our loved ones. That is a pretty simple objective. You know what else makes us feel safe and happy? Having money. Not stressing about making ends meet. In my article about Money and emotions I stress that spending less than you earn is the key to happiness. I stand by that. By living somewhere that suits your income level, you are setting yourself up for long term happiness. You are enabling yourself to have extra money at the end of the month that you can use to invest or pay down debt. You are accepting where you are starting from and being realistic. This is the first step to financial freedom. Starting from where you actually are. Moving to a cheaper neighbourhood is a massive step forward in getting your act together. You don’t have to live there forever, you just need to start creating your new wealthy habits. This means taking back control of your spending and your life.

2. Transportation - This is another way people are wasting money. My father bought a new car every three years. He believed that this was an important status symbol and he was mortified if his brother brought a nicer car than him. This is ridiculous. Why would you even buy a car if you didn’t need to? Take the bus, ride a bike or walk to where you need to go. Depending on your lifestyle, you need to reassess whether you really need a car. Cars are expensive. There are the payments , insurance, gas, repairs, washes, maintenance. If you add up everything you spend on a car in a year, you might be shocked. Now compare that to if you brought a monthly or annual transit pass. Maybe the odd time you took an Uber or rented a car or truck for special occasions. Do the math. Figure out if owning a car is even worth it. There are many places in the world where people just walk everywhere they want to go. Walking communities are a growing trend and I hope it continues. As per item #1 above, move closer to your work, so you can walk there. You will save a ton of money. Unless your job is in an expensive neighbourhood. Then maybe not. 

Investing Money

As much as saving money every month is an important first step to financial freedom, I believe that if we adhere to the principle of prioritising the “big Rocks” first, then we need to “Pay Ourselves First”. Pay Yourself First  has been a mantra of financial gurus for a long time and rightly so. It is the most important principle in obtaining financial freedom. This should be your first rock. Invest your money. 

Investing always seems to come last on most peoples list, and it should be first. Why? Because it is HARD. It is hard to part with money that you could be using for a ton of other things that may or may not enhance your lifestyle in the short term. It is hard to have the patience to put money into an investment and not see any substantial returns for a long time. It is hard to have to live without a few luxuries in order to feed your nest egg. It is hard to have money invested and not be tempted to spend it. 

Because it is HARD, that means it is worth doing. If financial freedom were easy, everyone would be doing it. I don’t personally know very many people who I would consider financially free. Most people I know are caught up in the middle-class, “spend more than you earn”, “keep up with the Jones’” lifestyle and they don’t know any other way. 

By investing your money, you are giving yourself power. You are giving yourself the ability to make your own choices. You are freeing yourself from indentured servitude and gaining the most valuable of all assts, time. 

In my book BYOB: Be Your Own Bank, I offer a plan to financial freedom that makes the “big rocks” a priority. A BIG priority. You will learn how to “Pay Yourself First” in a HUGE way, and not have to live like a pauper. My plan involves leveraging dividend paying stocks to increase your monthly cash-flow at an accelerated pace. Every month you gain more power to live the life of your dreams. 

I love the saying “If you are willing to live like no one else NOW, you can live like no one else LATER” 

This speaks to having discipline and restraint in the short term in order to have abundance and freedom later. You are living in a time of opportunity. Use this opportunity to create a life that is extraordinary!

You can do it!

Should I Pay off Debt or Invest?

I Have some extra money! Yay! What do I do next?

People are always wondering, should I pay down my debt or invest? What is the best use of my extra money? If I received some sort of windfall, what should I do with it?

This sounds like it should have a simple answer, but it is never that simple. It requires you to take a look at your specific circumstances and do a little math. It also depends on your financial goals and what strategy you are using to achieve them. 

Let’s look at a few different scenarios and philosophies:

Cash Flow is KING 

One way to choose where to put your money is to determine what will keep the most money in your pocket every month. Remember, cash flow is king. 

If paying down a debt saves you $200 a month but investing that same amount earns you $100 then pay down the debt. If the opposite is true, then invest. Pretty simple. You are only as rich as your free cash flow. We need money to live. We cannot take control of our financial futures and implement a plan if we don’t have any money. It is simple math. So, thinking about cash flow is a nice, easy evaluation strategy to make the “invest vs. debt” choice. 

Since cash flow is king, creating more cash flow to invest can come from reducing your expenses. So paying off a debt creates more free cash flow. If you are committed to investing what you gain every month from reducing your debt burden, then I am OK with that. 

Some guys will tell you to choose the debt or investment with the highest interest rate. 

That make sense too, yet I feel that when evaluating returns, you need to make sure you are moving forward and not standing still.

I often think of the old saying : 

Spending money is easy, getting money is hard. 

This makes me always want to invest. Why? Because it is hard. There never seems to be a right time to invest, as debt and expenses are always going to try to take priority over investing. Investing often takes a backseat to debt because debt is more immediate, and investing seems like a luxury. We need to reverse this idea and reinforce the mantra “Pay yourself first”.

My thinking often goes like this:

“If I invest my money, I am now earning more money, which makes me more powerful”

“If I am earning more money, this makes me more able to service my debt”

“The debt loses its power over me if I am earning more money”

“Earning more money empowers me to better deal with my money problems” 

Yet on the other hand, having less debt makes the most of the money I already have. Which is right?

Financial Freedom

Then of course there is the concept of financial freedom. In the end. I am looking for freedom. That comes from me not having to trade my time for money. I philosophically want to be the master of my own time and therefore my life. Working to make someone else rich seems like a waste of my life. I want to work hard, and earn money by providing value to the world, and in exchange, I earn the rewards. I want to work if I choose. I want to have the ability to come and go as I please. This dream can ONLY be achieved through EARNING income. I need a way to earn money that I am in control of. Having no debt doesn’t buy me that. Only having passive income does that. I could have a business, but if I am working 80 hours a week to keep it running I am a slave to my business and really do not have the freedom that I am looking for. Time is the most precious asset you can own and in order to maximize my time freedom, I need to earn passive income.

Brian Tracy wrote an amazing book “Eat that Frog” that basically says “If you eat a live frog first thing in the morning, it will probably be the worst thing you have to do all day” which usually applies to time management in the context of productivity. If we apply this philosophy to the macro scale we should take this approach to our quest for financial freedom. 

Building up a portfolio of passive income producing investments is really hard. Why not focus on that FIRST? Always choose investing. It is the road to financial freedom. 

Financial Freedom Awaits

Learn “how” to get ahead financially, but also learn “why”. You are a human being, not a machine. Use your emotions to help you!

Opportunity Cost

We always need to factor in how much we can earn by putting our money to work. because of inflation, debt actually becomes less of a burden over time.

Let’s have some fun and do a little math. 

eg. 

Lets say you have a loan of $10000 at 6% interest for the next ten years

Payment every month: $111.02

Total interest: $3,322.46

You suddenly are given $10000 as a gift. (Lets ignore taxes for the Moment)

Should you pay off your loan or invest?

Let’s look at an apples to apples comparison:

If you have an investment that pays 6% as well then we can compare the pros and cons. 

Initial investment: $10,000

6% compounded over 10 years = $7,908.48 profit<- you have made almost $8000 in the ten years! 

So you can save yourself $3,322 in interest or earn yourself $7,908 in returns.  

TAXES

If I earn another $100 a month I really only have an extra $50 as I have to pay taxes on that money. But if I SAVE $100 a month by reducing my debt or expenses, then I have the whole $100. My return is way better. I am farther ahead by spending less than by earning more. This is great in the short term.

Now if you consider that your investment will continue to earn more and more every month for as long as you choose to hold the investment, It starts to appear as if investing wins every time. 

Now, depending in the tax rate, you may give up to 50% of that investment income to the government so your ROI is a lot less than you initially think. Always factor in the TAX implications when you are deciding. You can end up in a bit of a pickle unless you do it correctly. There are ways to legally and ethically reduce your tax burden by speaking with a tax professional and getting advice specific to your region and your earning situation. 

I Like Investing

I like to invest any extra money I have as I believe that the more money you have, the better prepared you are to deal with life. People always believe that winning the lottery would be the best thing to happen to them. How often do people pray to have all of their debt removed?  

Create your own “lottery”  windfall by building up your income producing assets and growing your sources of passive income. You could even have the income from the investment help pay down the loan. Now you are getting TWO benefits for the price of one! You can invest AND pay down your debt at the same time!

So it pays to do the math first. Always look at the TOTAL absolute amounts you will see over the term of the loan and the term of the investment. Factor in taxes and you will know which to do. There is no “Always do this” rule that says Always invest or always pay down debt. Debt feels horrible. Passive income feels awesome. You have to decide which feeling you are more inclined to pursue. 

Learning to Invest: Start Small

You Need a PLAN

“A journey of a thousand miles begins with a single step.” - Chinese Proverb

When deciding to start investing or get your money working for you, there are many strategies to choose from and usually many steps involved. Often, you need to start from nothing.

Maybe you don’t even know where to begin.

Maybe you already have some traditional investments through your bank or insurance company but want to explore more.

Maybe you need to just tweak your portfolio or change your strategy.

We all start at different places. I remember not knowing anything about investing and I assumed you could just buy a stock at $1 and it would skyrocket to $1000 in a month and I would be RICH!

I was a little disappointed when this wasn’t the case..

Regardless of where you are starting from, I suggest that you take the approach of starting small.

This means, initially, you should care more about learning the ropes than making a fortune overnight. When you learn about a new way to invest or a different approach to building wealth, or even starting a business, you would be doing yourself a big favour by dipping your toe in the water and seeing how it feels.

By starting small you not only lessen your risk, you gain valuable experience in the process and most importantly, you a more likely to actually take that first step. Most people dream or talk about changing their lives, but few actually take do anything about it.

“How do you eat an elephant..? One bite at a time” - Desmond Tutu

I recently wrote an article about money and emotions where I suggest that our fear or anxiety about money and investing is usually just a result of lack of knowledge about it. Invest can be scary, but the more you know, the less scary it is. By starting small, you can gain experience, which is super valuable, without too much risk.

In order to ensure we are making rational and productive choices when we put our money to work, we need to have the proper context. We need to have done it before, or have a sound strategy to follow. We need a certain amount of confidence to move forward intelligently and try to leave emotions out of it. Math rules when dealing with money, not feelings.

If you want to start building a money machine, like I speak about in my book BYOB, then it would be a great idea to learn the principles first, then start small. There are a TON of great books out there that you can learn investing principles from. I wrote about my favourites here. Please do yourself a favour and learn as much as you can. 

How To Begin Investing

Once you have found a strategy that you are excited about you are ready to begin your real education. Let’s assume you find my strategy of buying stocks for dividend income enticing and want to get started. Your passive income plan would go something like this:

Start by researching brokerages. There are many great articles online about where to find one that suits you. Usually one that is tied to your bank works great. I use my banks investing service and I love it. It makes things easy to access via my online account, and transferring money is a breeze. 

Then start researching stocks. The online brokerages have wonderful tools for doing so, or you can go to TSX.com or Yahoo finance  and they have vast amounts of information to help you decide. 

Once you have picked a brokerage, have an account set up and have researched your stocks, transfer a little bit of money into your account. It could be $10. It doesn’t matter the amount, just see how it works and see how it feels. This might be a big deal for you or not, but it is suddenly not theory, it is real. You are dealing with real money now. You must get used to this feeling so starting small will be a great way to get into the groove. 

Once you are comfortable having a bit of cash in your account it is time to buy a stock. Take your list of stocks that you have researched and qualified as good dividend yielding cash-cows and buy 1 share of the safest possible company. 

You Are Now An Investor

Congratulations! You are now doing something to move your life forward! Scale is not important here, it is the action. It is the act of putting a plan into reality. If you can afford the time, let the stock sit in there for a while. Watch as the price goes up and down  with the ebb and flow of the stock market. 

As a beginner, you will probably be compelled to check your portfolio every five minutes. You will be watching it non-stop and you may get pangs in your stomach every time your well-researched, wall street darling goes down in price. You will be elated and giddy when the price goes up. You will feel like a genius when it goes up and a loser when it goes down. This is natural, but unnecessary. You must get used to this and learn to accept the natural fluctuations. If you are following my plan, you really don’t need to be too concerned over these changes.

When you are comfortable with this, you can start adding more cash to your account as you slowly build up to having an automated contribution amount every month. This will really start to prime the pump and get you excited about your new plan. You are beginning to feel like you are back in control. It feels good. But as the amounts go up, so does the anxiety. This is normal as well, and you can always just keep money in your brokerage account as cash for a time to get used to it being there, without any risk. Don’t take too long, you need to get it to work. Idle hands do the devils work. 

You can now start to buy a little more stock, hopefully diversifying amongst different sectors of the economy. Make sure you have picked good solid blue-chip companies that everyone has heard of and everyone uses. This is the fundamental idea of value investing. Do not go chasing after get rich quick stocks or “tips” from your brother-in-law. 

The Payoff

Now comes the really fun part. If you have chosen to follow my investment strategy, you will eventually get your first dividend payment. This is like Christmas! You have received free money! For doing nothing! Pennies from heaven. This is where the rubber hits the road. Once you have tasted the sweet nectar of monthly distributions you can never go back. You will be hooked! You will want to commit fully to the plan. This great. But try to keep things in perspective. You need to keep learning. You need to keep growing. 

So at this point you should keep researching stocks and slowly but surely constructing a reasonable “foundation” upon which you can build. You need to walk before you can run. The advanced strategies I teach in my book can be implemented once you have become comfortable with these preliminary steps. If you have gone this far, you have set yourself up to do great things. You are ready to take your life where you want it to go. 

Even if this is as far as you ever take your investing, you will be ahead of the game. You will have created a source of passive income that, if done right, will continue to send you money for as long as that company exists. Some companies have been giving dividends for over a hundred years, without fail. You can be part of it.

By starting small, you have gained a huge amount of trust, experience and emotional fortitude that will allow you to move forward in your investing journey. The knowledge and experience was gained without a ton of risk, and is so incredibly valuable. Nothing can compare to real-world experience, and experience can be gained without having to risk it all. 

Happy investing!

Money and Emotions: Finding peace of mind

When it comes to money, people get crazy.

I say this due to the fact that we live in a society that covets money above all else. Don’t believe me?

Wars are started over money

People are killed over money

Businesses lay off hundreds of people - real human beings - in order to increase shareholder value.

Divorce is over money - This is the #2 reason for divorce after infidelity. 

I could go on, but you get the point. We live in a capitalist system that is unbending when it comes to the rules of exchange. You must offer value in return for value. Nobody gets a free ride. Our very survival depends on money. We need money to eat, for shelter and for comfort. Without it, we are left to the charitable graces others. So our instincts are activated when we don’t have enough money. It represents our life. We intuitively feel that our lives are threatened by lack of money. 

It is a measure of “how we are doing” more than anything. If we have money we are doing OK. We associate money with safety. We associate money with happiness (although this has been disproven).

So no wonder that, when it comes to discussions about money, it stirs up uncomfortable emotions for many people. We often tend to keep our heads buried in the sand and pretend that it's all good, or mostly try to forget about the precariousness of our financial situation by ignoring it. If we don’t worry about it all the time then its good right?

I understand this tendency. But it is not healthy.

Sleepwalking through life

If we are gainfully employed we tend to spend all that we earn plus a little bit more. We pretend that we are wealthier than we actually are in order to convince ourselves that we are doing OK. We want to create that bubble of safely that we believe money brings us, without it actually being there. We tend to hope that everything will work out. We used to believe that as long as we don’t go bankrupt, our pension or the government will take care of us.

I know many people who “Hate talking about money” or when they do, get visibly upset. They suddenly feel helpless or worried. So they avoid talking about it and continue to live as if it will just be OK if they ignore it.  

Wake Up Call

We need to stop kidding ourselves and look at reality. The enemy you know is better than the enemy you don’t know. Of course it is difficult to walk away from a frank discussion about our finances without feeling pretty helpless unless we have a plan. A plan makes money discussions a positive experience. A plan is a way to ACTUALLY feel safe and optimistic, without fooling ourselves by “keeping up with the joneses”. 

Having a plan always starts with an honest assessment of your situation. How much is coming in every month, how much is going out. I know, I know, budgeting SUCKS. I get it. But you have to be impartial and objective about this - You are creating an imaginary world that says

 “My stuff is my life” or 

“My life is about the things I spend money on” 

“I’ll die without my half-caff half soy extra hot caramel macchiato every morning”.

I am not telling you what you should spend your money on, I am merely asking you to pay attention to your actual spending decisions. Track your spending for a month down to the penny and categorise  your expenses. You are never going to get ahead and follow a plan if you don’t know where your money is going.

Need vs. Want (Or Perception vs. Reality) 

Once you have a clear picture you are now in a position to make some choices. What do I really need vs. what am I imagining that I need? If you are saying that you NEED to live in a place that takes 70% of your paycheck for rent, I wonder if you have really thought this through.  Find a cheaper place to live. Realize it is only temporary until you have the plan in motion. You can use your creativity to come up with better solutions if you really let go of your imaginary “needs”. Your life is not your situation, it is your family and friends and your shared experiences. Where you live or what you drive are not important. 

The point is, I believe nothing makes you feel safer and more self reliant than knowing you are in control of your life. Being in control of your money is synonymous with that. Knowing that you are spending less than you earn every month feels TERRIFIC. It restores that feeling of safety and security. It makes you feel in control and powerful. It allows you the freedom to implement a plan to get ahead. Reducing your money issues to simple MATH takes the emotion away from it. We get so attached to our ‘things” that we start to think we are losing a piece of ourselves when we reduce the overhead in our lives.

Part of the the problem is people tend to lean towards short-term thinking instead of long-term thinking. They want everything RIGHT NOW. So many things are instant these days it fools us into believing that everything should be instant. We get food instantly, we get entertainment instantly, we get information instantly. These things are quick, dopamine releasing things that are really of very little value. They offer a quick reprieve from our troubles, but offer no lasting solutions. 

Things that truly change our lives and provide a lasting emotional foundation take a long time to create. They require planning, forethought, and repeated efforts over time to attain. They are not quick and easy, but are worthwhile. So if you need to sacrifice a few “emotionally comforting” things in your life to make your financial math work, then do it. This is part of building true long term happiness.

Money management is about creating a system that you can rely upon to take care of you and your loved ones. As much as we would like to live in a world where money isn’t important, we are not there yet. So make it important. By removing all of our emotional attachments to money, it will actually free us to make better decisions about how and where we spend and earn. 

Once you design your life in a way that ensures you spend less than you earn on a consistent basis, then you are ready. You are ready for the plan. 

My books offers you a plan. All you need is to be able to spend less than you earn and you will be able to accelerate you financial future faster than you ever imagined. It doesn’t matter where you are starting from, all that matters is where you are going. You may need to sacrifice a few things now in order to get the MATH of your life straightened out, but it is only temporary. Nothing stays static on this earth. You are either growing or dying. There is no staying the same. 

There is hope. There is security. There is a sustainable happiness that comes from getting your finances in order. Stop pretending you are well off and actually become so. You can grow, and so can your money.

This is true happiness. 

Is Investing Risky?

Investing is risky. 

This is what everyone believes. 

Maybe it’s true. I guess it all depends on your perspective.

Is driving a car risky? I’m sure everyone would agree there is an element of risk, but most people believe it’s worth the risk, due to the fact that it beats walking. 

People also believe that they are willing to accept the risk of driving car because they believe themselves to be good drivers. 

“In the hands of a lesser mortal, a car is a dangerous weapon, but when piloted by me, the best driver in the world, there is no problem.”

What about all the other drivers? Maybe they are idiots? 

“It’s OK, I can handle that too.”  

So you understand that driving is only risky in reverse proportion to the skill level of the driver. 

I am suggesting that the risk associated with investing is quite the same. 

If you educate yourself, you can understand the risks involved in investing and you should be able to mitigate them. You might even be able to anticipate market corrections and hedge against bear markets. 

You tend to pick the right stocks and look at every angle to see the true value in a position, not the sentiment on the street. You are not gambling, you are truly investing. 

If you are truly an investor and not a trader, then you buy stocks or “ownership” in a public company that:

a. You believe in

b. Has a great track record

c. Provides value to the world

d. Is relevant

e. Is fiscally responsible 

f. Gives back

This is the root of value investing. You are looking for value and you are leveraging that value. You do not take undo risks. You are not guessing. You are not hoping. You are basing your investing decisions on facts and research. You are putting skin in the game, yes. You are hoping that you don’t make a poor decision but you are building a portfolio of companies that provide valuable goods and services in any economic climate. Whether times are good or bad, people still need their stuff. 

I have had a few, but vocal, number of people claim my investing strategy is “too risky”.

That is OK. I believe that the beauty of my strategy is that it is flexible enough to be only as risky as you want it to be. You are the one in control and you are the one who decides how exposed you are comfortable being. If you go crazy and throw caution to the wind, then yes, it is extremly risky. The rewards tend to match the risk but it is still very scary to take things to the max if you don’t know what you are doing. I recommend you follow your heart and only go as far as you are comfortable going. No need to “take my word for it”. 

I am giving you a plan that you can use at your own discretion.  Knowledge is power. Sometimes, power can be abused. In the wrong hands, it can do terrible harm. That is unfortunate, and I hope that doesn’t happen very often. But it is power, nonetheless. I don’t think because there is potential for ideas or knowledge to be used inappropriately that they shouldn’t be used. They have the power to do great things too. There is no use in suppressing new inventions or technology just because there is a potential for misuse. Humanity needs new ideas and philosophies to move forward. 

I also don’t believe that people should be given a “paint by numbers” strategy for investing. If you want to invest without knowing what you are doing, you should give your money to a certified financial planner and let him do it for you. No harm, no foul. There is plenty of people out there willing to take your money. 

I created this strategy because I wanted to do better. I wanted to develop a plan that created wealth and protected my future. I wanted to be in control. I am willing to take responsibility for my success or failure. That is how you get ahead in this world. No one is going to do it for you. You are the one who has your own best interests in mind at any given time. 

Many people stay in soul crushing jobs for their whole lives because doing anything outside of their comfort zone is “too risky”. They are afraid to start a business. They are afraid to go back to school to learn a new skill. They are afraid to make changes that could improve their lives, just in case it makes things worse. In my humble opinion, this is no way to live. Structuring your whole life around safety and security, without possibility for growth is, to me, the same as dying slowly. I am not a thrill seeker, by any means, but I understand that if you are not growing, you are dying.. and growth sometimes requires change, risk and the need to be uncomfortable. 

Every person is unique. I would never tell someone how to live their life. I have a hard enough time living my own life without too many disasters. I offer suggestions to people that they are free to use if they so choose. My books offer a TON of suggestions. Some can take the information and run with it and others may find it too scary. I want to help the people who want to be helped. If I can make a positive difference in even one persons life with my ideas then I feel like I have succeeded in adding value to the world. I have spoken to many people who have used my plan and they are grateful and excited. Most have tweaked the strategy to suite their own financial situations, and that makes me happy, as that was the whole idea. It is customizable. 

I have read hundreds of books on personal finance, investing, economics and business. I have made and lost hundreds of thousands of dollars while figuring out how to invest. I understand risk. I always try to clearly state that there is risk involved in investing. Please be aware of that.. but also remember that risk is relative to your skill level. If you educate yourself and use all the myriad of available resources at your disposal in this modern era, you can turn risk into opportunity, You can use your amazing brain to see what others don’t. You can learn how money works and make it work for you.

Investing can be risky. 

Doing nothing can be pretty risky too. 

The world changes pretty fast. It’s your choice.

Why Be Your Own Bank

If you have read my book, BYOB - Be Your Own Bank, you learned strategies to get your financial life together. You learned new ways to invest and use leverage to create passive income with the money you have, no matter how much you earn or have already. 

I called it “Be Your Own Bank” because it is a metaphor for the system you could use to put money to work for you, instead of you working for money. I borrowed ideas from real estate investing, traditional investing, mortgage pay down strategies and business financing strategies. These ideas were formed over 30 years of trial and error, advice from industry experts and a dedication to lifelong learning.

I believe that you need to learn how money works, before you dive into the investing world. There are too many industries that prey upon people who want to invest but don’t have enough information to do it themselves. They want you to “to leave it to the experts”. They charge you fees to take care of it for you and this is supposed to give you “piece of mind”. If you have been watching the Questrade commercials you are aware that the younger generation are waking up to the fact that there is a better way handle your investing strategy and want to do it themselves. 

I love this philosophy! Do-it-yourself investing or do-it-yourself “banking” is a healthy attitude in my opinion. I have been preaching this idea for years. Money isn’t that hard. All you need is grade 6 math and you can figure this stuff out. Learn how to make a spreadsheet and you are set.

It is a Metaphor

When I say “Be Your Own Bank” I mean to think outside the traditional banking or investing box. I love banks, as they are a great resource to use in order to grow and protect your money. Their business is lending money to people who can pay it back and if you have read any books on proper investing/wealth building, you understand that you will have a difficult time growing any substantial wealth unless you use leverage or “other people’s money”. Rich Dad Poor Dad explains this concept very well. It should be required reading for everyone before they become an independent adult.

I suggest using the bank’s own methods and treating your money as if you were sitting on the other side of the banker’s desk. How would you structure your investing strategy if you were in the banking business? How would you use leverage to maximise your wealth? Sometimes looking at something from a different perspective can create new ideas and open up possibilities that were hidden or not apparent. So I am on the financial education or financial literacy bandwagon.

F.I.R.E.

A great book about the F.I.R.E. movement

Financial freedom is a concept that is gaining mainstream popularity due to the F.I.R.E. movement (Financial Independence, Retire Early). This is a great philosophy and a lot of great books and blogs are being written about it. 

The key concept to living the F.I.R.E. lifestyle is living on less than you earn. This is a very legitimate foundation with which to build any financial freedom plan. However, it doesn’t end there. You have to have a strategy to build a nestegg and maintain it. You have to keep up with inflation. You have to protect your nestegg. You have to figure out what your priorities are in life, in order to spend on things that bring joy and value into your life and NOT spend on things that really don’t. 

The World is Changing

In Be Your Own Bank I explained some strategies that address some of these concepts. I went into depth on the money machine blueprint, but briefly touched on the philosophical and practical ideas. 

In order to rectify that, I have written a new book that really emphasises the “Why” you need to be your own bank. I attempt to compel the reader to take control of their financial life not because it is a cool concept, but because I believe it is almost a necessity in this modern world. The financial plans that our parents lived by are mostly ineffectual these days. 

As the world changes, so must our strategies. This is a mantra being repeated over and over again in the business media. 

“The rate of change is increasing”

“Fail faster”

“Adapt or die”

“The company that is the most nimble wins”

..and so on.

So if this applies to the business world, why would it not apply to our personal finances? Nothing happens in a bubble. Our personal lives and financial plan are a part of the greater whole. All things are connected. As the macro world goes, so does the microcosm of our personal world. 

Keep Learning

By staying educated and informed about personal finance,  you are giving yourself a chance to perhaps take advantage of new ideas and strategies that arise in the cacophony of information available. You owe it to yourself to refuse to be a victim and be tosseld about by the winds of change and set your sails in a direction that empowers you. A proactive approach to your wealth is more important than ever.

While I am very proud of the books I have written and believe they could be helpful to anyone who reads them, I also love to encourage my readers to read as many books as they can about money management, investing and personal finance. Read a personal finance blog. Watch YouTube videos. There is a ton for free content that has the ability to spark creative ideas about how to get ahead in your financial life. 

Take a course. 

Attend a seminar. 

It is all about you assuming personal responsibility for your financial future.

Financial Freedom Awaits

You are not a machine, you are human., Therefore, you have emotions that may or may not help you to make the right decisions about money. Let me help. The GAP offers practical advice for investing and money management while remembering that you are perfectly imperfect.

I hope that if you take the opportunity to learn about money it will inspire you to really internalise the understanding of why “being your own bank” and embracing financial literacy is not only a cool idea, but an imperative in todays world. 

We live in a time that is full of opportunity like never before in history, but you must be equipped with the knowledge to take advantage of this abundance. Set yourself up for success by doubling down on your financial education. It is probably the best investment you will ever make.

The Millennial Money Crisis

You never know what you don’t know, you know?

I had the chance to speak to a large group of young people (mostly in their 20s) last weekend about my books, my investing ideas and money in general.

I was impressed by their intelligence and curiosity about what I was talking about. They were engaged and motivated to learn more and try some the ideas. However, a theme kept re-appearing during the conversations. I believe this is the key problem that authors like myself and others are trying to address.

They lacked basic financial education

Their perceptions and assumptions about money, financial management, and investing were very incomplete, outdated, and/or just completely wrong. It concerned me that no one had ever taught them how money works. They assumed this was the realm of “experts” . People who want to learn about money need to get fancy degrees or certifications, or aspire to be bankers or accountants. They only knew that they should “get an education” and then “get a good job”. At best, they considered “investing” as stock market “day trading” or some other exotic pursuit.

They are very Interested

The more I engaged with them, the more it became clear that they actually would LOVE to know more about financial planning, investing and money management. They just didn’t realize that they didn’t know. They didn’t even know there were other ways to approach wealth creation and life planning. They were never taught about how money works, or how the game of money is played.

The Game is Rigged

As I rant about often, they were born into a world that is entirely built upon a capitalist system that has specific rules and outcomes. They are basically forced to participate in a world that uses value for value based transactions for every single thing that exists. Yet, they are never given the tools or information to play the game properly. This is a travesty!

Financial Education should be taught in school

If we REALLY wanted to give our kids the best chance to succeed in the world, we would ensure that they are given a proper financial education before they embark on their life’s journey as adults. The problem is, even their parents don’t know what they are talking about, for the most part. Financial education is available these days in abundance via books, seminars, courses, and even YouTube videos but the problem is not availability, it is lack of “Need to know”.

Leave it to the “Experts”

Most people, when they finally figure out they need to start taking care of their futures, rely on “experts” to manage their money for them. They turn over control to insurance companies or banks to invest their hard earned money for them in the form of mutual finds and RRSPs. Although these are far better investments than doing nothing, I believe we owe it to our young people to give them alternatives to traditional investing. They need to know what options are available and THEN make the appropriate decisions for their individual life. Everyone has to make the investment choices that make sense in the context of their own circumstances and I believe that there are far too few choices available in the mainstream.

Be the Master of your OWN Financial Destiny

By educating yourself, and proactively seeking out ideas, methods and systems about investing, money and finance, you are enabling yourself to make better choices with your money. You are learning about the value of your time. You are evaluating investment opportunities with a clearer mind, and a more critical eye. You are putting your own financial life in the proper context and playing the game of money with a few more cards up your sleeve.

Change the World

Until such time as we can convince the education system to include financial literacy as part of tier curriculum and/or find a better system than unbridled capitalism, our best strategy for thriving in the current world is to learn as much as we can about how it all works. Then pass it on..

The first step is to realize that we don’t know.

The second step is to seek out as much information about money and finance as we can.

The third is to apply what you have learned.

The fourth is to enjoy the ride! <— this is how we win the game, after all!

Begin your journey today - A $10 investment that will change your life

My Top FIVE Personal Finance Books

As anyone who knows me would tell you, I am a serious bookworm - I am as stimulated by a good book as most people are by a good hockey fight. I absolutely love to read, but I think the root of that comes from my obsession to learn. Learning new ideas from some of the smartest people on the planet is my most cherished activity, and I feel that integrating a new perspective on the world into my psyche makes me more than I was yesterday. I grow from it. 

With that in mind, it comes as no great surprise that I very much prefer non-fiction books as they usually offer me more condensed learning material in the subject matter I am interested in. 

“An investment in knowledge pays the best interest.
”

— Benjamin Franklin

Our World Costs Money

One such subject that really floats my boat is the area of personal finance. Due to the fact that I ran recklessly into adulthood without a penny to my name, I was forced into taking an interest in money because I had none, and the world demanded that I pay to live in it. Nothing puts the “personal” in Personal Finance like starving to death. 

After struggling for many years and gaining a family to support, I realized I had better get my act together or my future would be one of worry and strife. I had to come up with a plan. 

But where does one go to learn how to manage money? Who do you ask? I didn’t know any rich people. Most of the people I knew were struggling too. Making ends meet was an exercise in trial and error, and I was never taught money skills by my parents. 

Financial Education

I realized that the information that I was looking for would be tough to find. I assumed that the path to getting ahead financially was a closely guarded “secret” that only the rich knew. Little did I know, that the information was out there, I was just looking in the wrong places. 

Then one day I stumbled into the Personal Finance section of a bookstore and my whole world changed. I bought a book that changed my thinking so much, that I believe it is required reading for everyone. The books I am about to talk about are amazing. They gave me knowledge and perspective that I never would have figured out on my own. The principles and strategies they presented rocked my world. My journey to financial independence had begun…

These Books Saved My Life 

Rich Dad Poor Dad

-Robert Kiyosaki

This is the book that started it all. The ideas presented in this classic are so amazing that I am surprised the rich people of the world didn’t band against Robert Kiyosaki to prevent him from sharing these secrets. It is not a “how to” book. It is a “why to” book. It gives the reader what he needs, not what he wants - a new mindset. It is the #1 book I recommend the most to people wondering how to develop a financial plan. 

The Wealthy Barber

-David Chilton

Newly updated, this is the bible of personal finance. This guy changed the world with his common sense principles that guided a whole generation into the world of mutual funds. Although it is pretty “Mainstream” I think it is the perfect starting point for anyone who is trying to figure out “Adulting” and have a plan for their future. 

Secrets of the Millionaire Mind

-T. Harv Eker

This book is sort of a gateway drug into the world of wealth. T. Harv Eker really puts the boots to you in this one. I was mostly awakened by his ability to make you re-think your perception of rich people and what they are all about. Be careful, you may not be able to stop yourself from becoming super rich.

  

The 4-hour Workweek

-Timothy Ferriss

Once again, I have never been the same after reading this book. It opened my eyes to a new world; one where you are the master of your destiny. He presents new perspectives on traditional ways of existing, which he calls “Lifestyle Design”. It will make you re-think your life in so many ways, but in a good way. Maybe even a great way..

The Millionaire FASTLANE

-M J DeMARCO

If you are looking for a complete blueprint to building a life of abundance, then look no further. This book spells out the strategy in a clear, thoughtful and realistic way. I forced my son to read this book because it had all the information that anyone would ever need to create the financial life of their dreams. He thanked me after…

Unscripted

I have to include this book as an added bonus. It is a masterpiece and I believe is required reading for anyone who wants to really understand money and wealth. I even wrote a whole article on this HERE.

There you have it. If you read even ONE of these books and follow its teachings in your own life, you will have seriously increased your chances to find yourself catapulted into a whole new league of financial well-being. Of course, I would LOVE it if you read one of my books - I am certain they will help you, but if you choose to save my books for next time, get one of the above and enjoy your new possibilities.

Disclaimer

I do receive a small commission if you purchase some of these books through the links provided, but I personally have read each of these books several times, and swear by their efficacy. I really don’t think there are any better guides that I am aware of. 

Three Ways to Preserve your Wealth

If you have read my books, you realize how awesome it is to have an income-producing portfolio of dividend bearing stocks making you passive income while you sleep. There is no better feeling in the world than realizing you are making money 24 hours a day, without lifting a finger.

The biggest concern I get about this system is the risk. What will happen if the stock market crashes? How will I preserve my wealth? How do I avoid a margin call?

These are valid concerns and I spoke very briefly about it in my book. I realize I need to go a little deeper into this topic.

So here are THREE ways to mitigate a stock market crash. 

Stop

Many online brokerages have a feature that is called a STOP. You can initiate a STOP as a sell transaction that has a limit put on it. This is a contingency that you create that tells the brokerage “I want you to sell my stocks when the price is X” 

So here you would want to determine what you level of comfort is in the event of a bear market. 

You can set any price you wish and it will depend on your tolerance for fluctuations. In the scenario where you are “buy and hold” investing, and you only really care about the monthly dividends, then who cares? Let the stock market crash. You just keep buying as the price falls, and you start to really increase your yield. Sounds pretty good to me. 

If you have ventured into the world of Margin and Leverage, as explained in the book, then you may have a different opinion. 

You could determine the price that the stock would have to be to trigger a margin call, then set the STOP price at or slightly above that price. 

ie. If you have $1000 of a stock and you have leveraged $500. Then your margin ratio is 50%

If the brokerage allows 70% margin then you would calculate the margin call as follows:

500 / .7 = $714.29 <— This is as low as you can go before a margin call

So you would set a STOP order at say, $715. If the price falls to that level, it is automatically sold and you are out of the woods. 

The downside of this is you no longer have stocks earning you money. No big deal, you can wait until the price settles, then get back into the market.

This is the cheapest option, as it is basically free to set a STOP order - but you WILL lose a portion of your equity. 

You can sell just a portion of your stock in order to change the margin ratio as well. The brokerage will do this if you do not make your margin call payment.

You can buy more stock without leverage - this will lower the margin %

You can pay off some of the margin amount owing. This will lower the margin %

Options

As mentioned in the book, options are a cool way to preserve the total value of your portfolio without losing ANY value. It is not free. 

Think of options as a type of insurance policy. You are paying a fee to protect your assts against loss. You would do this for a house or a car, so why not your nest egg?

Options trading can be quite complicated and there are as many ways to mix and match in this world as there are lost socks in the laundry hamper. There are many great books written on options trading and you are free to dive down that rabbit hole as you see fit. We will talk about one very particular Options transaction here: the PUT

A PUT option is the right to sell a particular stock at a set price on or before a particular date. You are now in control of when you sell and how much you may sell that stock for. If the stock price crashes, you are laughing, because you have purchased the right to sell it at a price that you agreed upon when you entered into the options contract. 

Set conservation Margin Ratios

Look at the history of the stock and see how much it fell in the last stock market crisis (say..2008?)

Calculate the price it would likely fall to. Then only leverage to meet the maximum margin ratio at that theoretical price.

eg. If your stock is priced at $100. You could leverage up to $70 at a 70% margin ratio. (Common)

If the price fell by 50% in the 2008 crash, then 70% of $50 is —> $35. 

-If you never borrow more than $35 against that $100 stock, you probably won’t run into trouble. 

Of course, the stock market is unpredictable and nobody has a crystal ball, so I will put this in BOLD type: STOCK INVESTING INVOLVES RISK. Please remember that and act accordingly. I am merely suggesting ways to mitigate risk, not remove risk. 

Now remember, you only lose money on a stock if you actually sell it. If you are not highly leveraged and are happy with the dividend payments you are receiving every month or quarter, then why would you sell a perfectly good stock in a perfectly good company, just because investor sentiment is low at that particular time?  Stay in and keep the cash flow machine pumping!

I highly recommend reading and learning as much as you can about these strategies as I have just skimmed the surface. 

Be sure to read my book “BYOB - Be Your Own Bank” to get some REALLY cool ides as to how to invest and grow your wealth!

in my book Invest in Yourself I suggest many more ways to protect your wealth, grow your money with extremely low risk, and how to pay off your mortgage quickly.

if you want an all in one system that tells you my whole system in a step by step manner, try my online course! I leave nothing out!

Thank You!

Inspiration

Hi Everyone

As you may or may not know, I LOVE to read. I love non-fiction especially. I am truly excited and stimulated by learning new information. My life has always improved when I have learned a new piece of information that teaches me a new strategy or unique philosophy that I can use. I always believe that there is a whole world full of interesting people out there who know more than I do about just about anything. If they are willing to share that information with me - AWESOME. I love it. Sure, I have read a few really boring or useless books. I usually don’t finish them. So be it. If you want to make an omelette, you have to break a few eggs.

One such book that has inspired me lately is “Financial Freedom” by Grant Sabatier.

This guy has inspired me. I love that he thinks about his financial situation from a whole new perspective. He defiantly opens your mind to new possibilities. He achieved financial freedom by investing, budgeting and thinking differently about how and why he spend his money. He is definitely a part of the F.I.R.E. Movement (Financial Independence Retire Early).

Financial freedom means not having to work if you don’t want to. By re-defining what financial freedom means, you can make your own decision as to how and when you have achieved your independence. By reading this book, you will start to see the world a little differently and realise that realising your dreams might be closer than you think.

I love that people are realizing that there is much more to life than rotting in a cubicle day after day. The whole book, and the movement, are about taking back your power. You need to be in control of your life. Money will give you that control. Do not underestimate how important that is.

The website for Grant Sabatier is:

https://millennialmoney.com

I have done it in my own life. Once you get a taste of that personal power and control, it is very hard to go back to a regular job and work for someone else by trading your time for money. There is a better way! I wrote BYOB - Be Your Own Bank to teach people about that power, and how they can taste the sweet nectar of financial freedom!

Read “Financial Freedom” or my perhaps, my Books and take back the power.

Financial Freedom

BYOB

I will be talking a lot about the F.I.R.E. movement in future posts. Because it is amazing.

Peri

What I am About

Hi Everyone

When I say “everyone” in my salutation I actually mean “EVERYONE” - Not just sofisticated investor types or people that fit into a certain socio-economic class. I want to let you in on my motives.

I have spent decades studying money, business, economics, and investing. I have read literally hundreds of books on these subjects. I have spend thousands on courses, seminars, and programs. I have spent thousands of hours talking with money experts and financial gurus.

I have invested in just about everything you can invest in. I have made a lot of money and lost a lot of money. I have made many great choices and many huge mistakes.

My perspective on money, and the ideas I present in “BYOB - Be Your Own Bank” have come from a lot of trial and error and a lot study. I am totally enraptured by learning new things, and seeking out new ideas. I spend all of this time because I love it. I am passionate about it and I will do it everyday for the rest of my life because it stimulates and excites me.

I wrote BYOB because I wanted to share something important with everyone. We live in a world that is built upon money. Money is everything. I believe we need to all have the proper perspective on the role money plays in our life, yet capitalism rules our lives. Whether we are interested in learning about money or not, we still have to function within a world that very much only cares about the bottom line. You need money to live. plain and simple. There is really no way around it, unless you go live up in the mountains as a hermit or in a commune.

You need money for a place to live.

You need money for food

You need money for clothes

You need money for just about anything else you want.

So you live in a world that demands payment for you to exist. I won’t get into the moral permutations of this situation as I think that would be a really long tirade, but let’s accept this as the way things are right now. It would be unreasonable to expect everyone to understand money or investing. It would be unrealistic to assume financial education was passed on to each of us from our parents. It certainly isn’t taught in school (It should be). Most people probably don’t have the time or the inclination to learn what they need to know to prosper financially as we usually are just scrambling to survive month to month.

BYOB is my attempt to give people a financial plan that is sophisticated enough to propel them forward from the drudgery of everyday life, yet is easy to understand and implement. It is a short book. That is by design. I wanted it to be easily digestible for everyone. I wanted everyone to be able to use the principles put forth in its pages to give them a strategic advantage in their financial lives. I am more than happy to distill all those hours I spent doing something I like into an easy read for people who aren’t as interested, or just don’t have the time.

That is why I address “everyone” I believe everyone deserves the information in BYOB and I want everyone to prosper. I want everyone to benefit from its ideas, and everyone to be financially free.

BYOB is for EVERYONE

Peri

MATH is Your Friend

Would you rather pay 24% interest or 3% interest?

“3% of course! What am I, an idiot?” most people would say.

But hold on a minute. I think we may need more information.

How long are we borrowing it for?

What is it being used for?

Can I make money from it? What is my return?

Is it amortized or simple interest?

How much am I borrowing?

Do I need to pay back principle or just interest?

Is the interest compounded?

Is it an open or closed loan?

As you can see there are a TON of variables that make this actually a tricky question to answer.

In my book, BYOB, I touch on this subject a little. If you really do the math, a lot of financial strategies become a lot clearer. It will help you make better decisions as to how to plan your budget, work your plan, and have your money working in the most effective way possible.  

One cool example of this is the method some people use to pay down their mortgage sooner.

You use High-Interest OPEN loans to pay down the low interest CLOSED mortgage loan. 

For more information watch this video. Enjoy!
(The math is a little sketchy, but the method is sound)

https://youtu.be/4GonTct2WMk

Value Investing

When I think of the word “Value” I think of how much something means to me. How much does that something that I value make my life better?

I see value in something that teaches me something

I see value in something that entertains me

I see value in something that broadens my mind

I see value in something that saves me time

I see value in something that makes me money

I see value in something that makes me feel good…

…And on and on.

The problem is a lot of people only understand value in monetary terms. This is a big mistake, especially when you want to sell something to people. People buy benefits, not products. It’s the benefits that have value, not the product. So therefore, most people try to sell products without selling the value it brings to potential customers. 

I used to have a boss who thought that a good business transaction was when you totally screwed over the person you were dealing with. This is not good business. I don’t understand this type of thinking. It rarely resulted in repeat business.

People will gladly give you money if they feel that they are getting value for it. You have to pay attention to what problem you are solving for the customer. Are you providing any of the things mentioned above? If you are selling them a product that doesn’t provide them value in the form of making their life better, then you will have a hard time selling them your product. If they do buy it, you will not have a win/win scenario and they will be very unlikely to buy from you again — like my old boss. Always try to provide as much value to the potential customer as you can.

Perceived Value

Then we run into the problem of “perceived value”. This is the difference between how much the customer feels the product is worth and what the product is actually worth. I understand that the market will decide how much anything is worth, but there are some strange perceptions out there that don’t make a lot of sense to me.

For instance -  People will take an hour out of their day to go to Starbucks and pay $10 for a caffeinated beverage and a pastry. They will sit there and visit with their friend or scroll through Instagram for the hour and then go back to work. This is a nice experience and we have all done it. However, I doubt it will make much of an impact on the rest of their life. 

To contrast this scenario , you could spend $10 on a book that will take you an hour or so to read and it will change your whole life. You will never be the same after reading it and the strategies or ideas could be the catalyst for an amazing transformation in your life. 

People don’t even hesitate to indulge in the first scenario but will hum and hah about buying a book full of useful information. They hope that it goes on sale for $5 soon, as $10 seems a little steep for a book. 

WHAT THE HECK? 

To me the actual value being offered doesn’t even compare in these two situations. Ideas and concepts that I have garnered from the hundreds of books that I have read have brought me to where I am today and who I have become. I would never have achieved the success that I have, without the knowledge and insights I have gained from reading books. 

Books written by people smarter than me. 

Books by people who have accomplished greatness. 

Books that offer new ways to doing things that I would never have thought of myself. 

This brings to mind the great quote from Isaac Newton:

“If I have seen further than others, it is by standing upon the shoulders of giants.”

I am always taken aback by the attitudes of people, especially young people, who have atrocious value perception. They can buy a new smartphone — a device that took decades of technological achievements and advances, thousands upon thousands of man hours by hard working extremely smart people — and offhandedly say, “This thing is a piece of s***” as they accidentally drop it in the toilet. Wow. 

Nothing exists in a vacuum. Everything you see in our world that is man made was the result of ideas, hard work and execution by pioneering entrepreneurs and visionaries. They sought to bring value to the world and we should try to appreciate, and perhaps, emulate that. 

Value Investing

In the context of investing, this same principle applies.

Warren Buffet has been described as a “Value Investor” which means he buys stocks in companies based on their actual working numbers. He only likes companies that have a solid track record of providing value to its customers. He doesn’t run after the “next big thing” or try to “beat the market”. He is always looking to build a solid foundation. He is in it for the long term. It think his strategy is working, as he is one of the richest men in the world.

I adhere to the same principle when buying stocks. In my book, BYOB, I suggest an investment strategy whereby you would choose companies that are truly valuable. This means the criteria is slightly different than what a stock “trader” might use.

I am a huge fan of passive income. Passive income is money that flows into your life whether you do anything or not. It is the holy grail of financial freedom. I love to know that I earned money while I was sleeping or sitting on a beach somewhere. Often, passive income requires a lot of work up front to set up a system, but then is less work later on.

A real estate investor always thinks about buying a home from a numbers point of view. Especially in the commercial real estate world. The actual value of a property is a result of its potential for revenue, not necessarily its “location” or “curb appeal”. People are willing to pay for homes based on all sorts of silly criteria like “its close to schools” or its a short commute, but an investor looks at “will the income from this property cover my expenses and mortgage with some left over?”

So I suggest buying a stock based on “how much income will this stock generate for me?”

This income comes in the form of dividends.

Dividends are distributions of money to shareholders as a percentage of profit from the operations of the company. As a shareholder, you actually own a piece of a public company so you are sometimes entitled to share in its success (and failure). Dividends can be paid monthly, quarterly, or randomly.

The amount of the dividend is usually $X amount per share.

If you take all of the dividends per share and add them up over a year, and divide by the price of the stock, you can see your ROI.

This is is called the “yield” and it is always displayed in the technical data when researching a stock. I use this number to calculate the Return On Investment or ROI that I will receive from owning this stock.

In addition to the yield, I look at a few other things:

1. How long has this company been in business?

2. Is their business still relevant?

3. How often do they pay out dividends?

4. Do the dividends increase over time?

5. Have they ever missed a dividend?

You may notice in the list above that I neglected to mention ‘price’. I don’t care what the price of the stock is if the yield is what I want it to be. I am looking for value. I don’t care whether the price goes up or down. I am not interested in buying low and selling high. I am not a trader. I am in investor. I know what has value to me.

By focusing on buying dividend paying stocks that meet all of my buying criteria, I am approaching the stock market like an investor, not a trader. Trading is gambling. Nobody has a crystal ball so it makes more sense to invest so that you can predict your profits and ensure your returns.

As a value investor, focused on dividends, you are far less concerned about stock market fluctuations and corrections. As long a you are receiving your dividends as passive income on a regular basis, you are succeeding. You are getting richer. As they say, “You will never go broke making a profit”

Sign up for my newsletter and receive my “How to pick stocks guide” which will help you decide which stocks to invest in for ongoing passive income.

There is a series of books written by Derek Foster that really goes into the benefits of dividend investing.

The Lazy Investor - is the first book in the series and really convinced me to re-think my strategy.

He has 5 additional books that expand on his ideas and I have read them all. Even one of these books on its own has the power to change your life. They provide tremendous value.

I developed my investing strategy from trial and error, books, seminars, mentors etc. Each source of information cost me some money. In most cases, not a whole lot. The value I received from them far outweighed the cost. Just like value investing, I looked at the ROI of educating myself. I believe learning how to invest and build wealth is the best investment anyone can make. Once you expand your mind, it can never go back to its old dimensions. You are forever wiser, stronger, and more capable.

You have the ability to become more. You have the ability to grow beyond your current self-imposed limitations and achieve things you never thought possible. You just have to be willing to take a chance on yourself.

Invest in your self.

Because there is nothing more valuable than YOU.

More Ways to Change your Financial Destiny

Hi Everyone,

I am excited to announce that the Book is now available in Canada at the Chapters/Indigo website and in the USA at Barnes & Noble’s online store.

This brings our message to more people and hopefully more success stories!

Now Available at:

Amazon (worldwide)

KOBO

Apple Books

Barnes & Noble

Chapters

Take back control!

Peri

BYOB is #1 !!

Hey Everybody!

I am so pleased to announce that BYOB - Be Your Own Bank is now #1 in all three of its categories in the KOBO bookstore! This is extremely exciting!!

If you enjoyed the book, please rate it and leave a review on the bookstore you bought it from.

If you have questions or comments you can email us at info@beyourownbank.ca

Thank You

Peri

Welcome to BYOB!

Hi

Welcome to my website! I am so thrilled you stopped by.

This website is dedicated to financial freedom. To that end, I have written a new book entitled-

BYOB - Be Your Own Bank

It is about how to create a money machine from the money you already have, and build your wealth faster than you ever thought possible. I have used this system in my own life, and my family and friends are on board too. Everyone was so excited about it I just had to share it with the world! That is how the book was born.

So far the response to the book has been AMAZING! I am grateful so all of you that have purchased the book and I am especially grateful for the positive feedback I have been getting. It is helping so many people change their financial futures for the better. That is extremely rewarding.

Have a look around and enjoy a free preview of the book.

Peri