Inventing Anna

I have been watching the Netflix series Inventing Anna , a tale of a young woman who "cons" her way into high society by pretending to be a rich heiress. It is based on a true story.

This show depicts everything that is wrong with our beliefs about money. Everyone one wants to "look" rich but nobody wants to actually put in the real work to "be" rich. Being rich entails providing some sort of value to the world equal to or greater than the sum of your fortune. You must gain wealth by providing something valuable to an exceptional number of people, or provide exceptional value to a few. Maybe even both. 

This is REAL wealth. People give you money in exchange for something they find valuable. It is a value for value exchange. Anything other than that is stealing or luck. The universe strives for balance and by upsetting the natural order of things, you are creating the potential for a disaster - the universe will balance itself out. 

This "Anna" person tried to act rich and sponge off of the wealth and privilege of people who actually earned their money. The show is chock full of euphemisms like:

"I would rather work for it than inherit it"

, or

"I vowed to never work for someone else"

..etc. 

Being an heiress is great work of you can get it, but alas, not many of us have that opportunity. The rest of us poor, dumb slobs have to earn it. This is not a bad thing, actually. 

By earning your wealth you gain the most valuable asset there is - the ability to earn more. You can lose it all and get it right back because you have the skills and the know-how to create a fortune. This is true wealth. Being given money is not very effective at eliminating poverty. 

You see the people like Anna or "The Tinder Swindler" (Also on Netflix)  who are "putting on" that they are wealthy, but they always seem to need more money. They never stop the con, because they don't really know where money comes from or how to manage it. They believe, as do many people, that money is some nebulous cloud that you just need to tap into somehow. If you say the right things or dress the right way it will magnetically attract to you without you having to earn it. This disrespects the whole system. This attitude disregards the very nature of money and it will come back to bite you, guaranteed. Money, capitalism and wealth creation are all based on laws that are unfailing. If you counter these laws, there will be consequences. For example - Anna is now in jail. 

Please do not be like Anna. Be like the millions of wealthy people in the world who earned their wealth by providing something of value to people.

Create something.

Build something.

Be of service.

This will bring you wealth while conforming to the basic laws of money and will most likely continue to do so. You will create wealth and be able to keep it. 

By thinking money is just something that needs to be accumulated, by any means possible, is so mundane. Money is a representation of value. It is not worth anything by itself. Having a suitcase full of money is not real wealth. It is just a tool. If you decide that suitcase means you are rich, then you will spend it all and then you will be poor again (still). Simple formula . 

If you take that suitcase full of money and invest it into something that provides value to people, it will continue to exist and continue to feed your lifestyle forever. This is true wealth. 

Such a simple concept, yet TV and movies would have you believe otherwise. I am here to tell you that there is really no better way to gain wealth than to earn it. 

How? 

Read books. 

Should We Give Money to The Poor?

First of all, I am a big believer in charity. Charities, if properly run, do a great deal of good and the world is better off with them than without them. I am not talking about giving to charity. I am talking about the concept of Universal Basic Income (UBI)

Universal Basic Income

The basic concept here is, every person above a certain age receives a monthly stipend, which should, in theory, be enough to cover the basic necessitates of life. This is, as the name implies, universal. Everyone is entitled to this benefit no matter your income level or net worth. There are arguments about how much should each person get, or where is the money coming from but I think the real question is:

Should we give them money at all?

A great book by Annie Lowrey entitled "Give People Money" makes a great case for the positive benefits of UBI on select poor communities that have participated in UBI trials around the world. She argues that the people who received a monthly amount, without strings attached generally improved their lives. It allowed single mothers to go back to school, start businesses or afford child care so they can work full time. It allowed people to pay their bills and keep the lights on so they had time to work on making a living elsewhere or take care of dependents. There were a few that fell into a slovenly stupor and used the money for drugs, alcohol or gambling, but these were a minority. 

I can see that this is a semi-effective way to alleviate poverty in the short term and helps to stimulate the local economy as people tend to spend more. But I believe it is short sighted.

Jordan Peterson, the controversial Canadian intellectual, has stated that he thinks UBI is a bad idea precisely for the reasons above. It enables people who make bad decisions with money to make even bigger bad decisions. It sends the drug addict deeper into his or her addiction. It allows the alcoholic to go an an extended bender or the gambler to bet it all away. He believes it is just fuelling the fire of bad behaviour. I cannot disagree, but I think it is even bigger than that. 

The fact is, most people are terrible with money. If this were not the case, most people would not be living paycheck to paycheck. Most people would be able to work when they want and travel when and where they want and live whatever lifestyle they please, but you and I know, this is not the case. Most people struggle with finances. Most people are idiots with money. 

So by giving money to people, most people would not use it properly. They would squander it in a myriad of ways, and continue to be poor.  Let me explain what I mean..

Jim Rohn said:

"If someone gives you a million dollars, you better hurry up and become a millionaire"

He is saying that if you are bad with money, more money won't fix the problem. I have written about this before and it is a sad truth. Money will not solve your problems. 

Inflation

Giving people money would add to inflation in two ways. 

1. Everyone would just raise the cost of things so that the minimum monthly payment would still not be able to take care of you. It is inevitable that greed will triumph over compassion. It is just the way it is with capitalism. It is driven by growth and if left unchecked, it will implode upon itself. There needs to be some boundaries set.

2. Those that already have a leg up will continue to do so, with even more money in play. The GAP between the rich and the poor will continue to grow. I see this as a double-edged sword:

   1. The rich will get richer and the poor will still be at the mercy of the rich. Our system is not just numbers based, it is a mindset too. If you have servants, you understand what I mean.

   2. Those that are motivated will envy the lifestyles of the rich and work hard to become them. This is a plus. As Hannibal Lector said,

      "You can only covet that which you can see"

The Solution

I feel there are two things that would be a better use of resources than UBI:

1. Financial Education- I believe that kids should be taught basic money management skills in school. It should be a required course. And it should not just include budgeting, coupon clipping and what mutual funds are. It should be an in-depth analysis of macro-economics, the psychology of money and how money actually works. It should cover investing, compounding, leverage, assets and multiple streams of income. The current education system assumes you will be a worker and consumer so the less you know, the better. This needs to happen.

2. Subsidised or free housing- In the city of Doha, one of the benefits given to the people who are natives to the country is free housing. Instead of giving people money, give them life. Even better, give them free food, water and clothing too. If the basic necessities of life are free, then work becomes a choice. You will not be working to survive, you will be working to actually achieve something. We as a species have figured out how to do so many amazing things, I am sure we can figure out how to do this.

By having the basics of existence taken care of and knowing how to manage money, you are set up to succeed. There is no reason to be struggling financially. You can choose to be poor if you wish, but your station in life becomes exactly that - a choice. You are free to grow your wealth to any degree you care to. You are free to work as long and hard as you see fit. It is a choice. This is what I would call freedom. You are no longer a slave to the capitalist system, you are free to participate or not. If you are ambitious, go crazy. Make a billion dollars and have yacht parties. If you are not so ambitious, you can at least survive. This would be a better use of resources.

So, as much as Universal Basic Income has good intentions, it is a solution based on an outdated paradigm. There needs to be ways to intertwine capitalism and collectivism so that everyone wins.

My latest book delves deeply into this topic and offers some ideas that we can use to create an economic system that allows for the collective wellbeing of humanity and the opportunity to create as much wealth as the ambitious among us want to achieve. 

Tempered Capitalism

We can build a world where EVERYONE prospers.

Check it out HERE

The Law of Attraction Revisited

Manipulating Time

We have all heard of the law of attraction (LOA). The book/movie "The Secret" talks about it. Also there are a ton of books written about it. It was all the rage a while back. 

The Law of attraction

Ask and it is given

The power of intention

Think and grow rich

The problem with the "Law of Attraction" is that it tends to be misunderstood and done poorly in practice. It lends itself to magical/wishful thinking, without any type of practical plan or methodology. Jack Canfield helped improve the situation by declaring that the LOA only works well when you follow it up with action. I wholeheartedly agree. You need a plan, and you must follow through, probably for an extended period of time..

..there's that word again. Time.

Time

One of the precepts of the LOA is that you must hold the thought of what you want in your mind and feel it. You must think about it constantly until it manifests. You must act "is if" it is already here. Many gurus suggest affirmations that repeat over and over again, in the present tense, that what you want is already a reality.

Think and Grow Rich stumbled upon this key concept without actually saying it. It is the sustained effort of thinking about what you want and pursuing it over a long period of time that produces results. 

My theory is that it is not simply subconscious programming that is taking place. As William H. Murray so eloquently stated:

Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans. That the moment one definitely commits oneself, then providence moves, too. All sorts of things occur to help one that would never otherwise have occurred.

If you are willing to consider the idea that there is a higher plane of existence and that possibly there is some sort of etheric oversight happening in our lives, in whatever form that may take, then we can start to have a conversation. The Law of Attraction assumes some sort of mystical force that draws together people, ideas, and circumstances that have a similar vibration. If that is the case, we can draw some further conclusions that just might make a little more sense of this phenomenon. 

I am reminded of the TV commercial where the dad and his daughter are driving along and she sees some kids skateboarding. He buys her a skateboard and then goes immediately to work on building her a halfpipe in the driveway. Just as he finishes, mom gets home with the daughter- who is now into karate. 

I think this is how it works with the law of attraction. The benevolent intelligence that exists on a higher plane of existence, that may or may not help us, has a different perception of time than we do. We are like the children jumping from interest to interest without focus while the higher mind can see the big picture at all times. Things move much slower in the etheric realms, with time adjusting accordingly. Time is nearly a perception. As Einstein said,

"One second touching a hot stove can seem like an eternity, while an hour with a pretty girl can seem like a moment"

It is not just perception that is different, it is actually time. Time is a 3 dimensional construct that is intertwined with space. We experience space-time, where we can move about in space, but are stuck in a singularity of time. There is also time-space, where we can move about in time but are stuck in a singularity of space. Then there is the next level where we can do both simultaneously. Some scientist have postulated that small animals and insects have short life spans but experience time differently so their lives appear to be as long as ours, from their perspective. Awareness is bound to time. Often, when people are knocked unconscious it feels like they have been away for a thousand years when they regain consciousness. This is an example of how our consciousness is bound to a particular time-scale but there are many time-scales that exist outside of our ability to perceive them.

I liken the LOA to a parent who sees time differently from a child. Parents need time to observe what it is their children want that seems consistent over time, and then they need time to manifest the results for them. To the higher states of consciousness, it is an instant but to us it takes time, usually more than we would like. 

So by keeping a thought and feeling in our consciousness for a long period of time, it allows the higher plane to not only interpret what it is that we want, but it also to deliver it. If we have "moved on" like the little girl in the commercial, the universe will not bother manifesting our desires anymore. If the higher dimensions see that we still want our desires over time, they deliver. Win/win for everybody. 

I find it interesting that there is a study from Harvard University that tried to determine what was the most significant factor that leads to success. They followed a graduating class for decades and measured the level of success that each graduate achieved, correlating those results with components of their lives. The results were strange, but true. They found no correlation between success and:

1. Family background

2. Good looks

3. Intelligence

4. Connections

5. Personality

6. Grades

7. Work ethic

The only common factor that was universal amongst those whom they deemed " successful" was LONG-TERM PERSPECTIVE. They assumed this meant they made better investment decisions and had a lot more self-discipline etc. Of course, in the real world this will make a HUGE difference in how you approach anything. It is essential to success. But what if... this also contributed to a sustained focus on desires. What if this long term thinking created a thought pattern that became easily understood by the higher powers that might assist in their success? It is worth thinking about. Long-term perspective is a very deliberate manipulation of time. 

           

Action

The thing with action is that it is part of the biofeedback mechanism we all have between our body and mind. It is well documented that our emotions are derived from our thinking as much as they are a result of our bodily sensations. Our guts create serotonin, the neurotransmitter that affects happiness. Bio-feedback is the practice of changing our minds, by changing our states. This can be achieved by movement, diet, and actions towards our goals. We don’t have to rely on positive thinking or happenstance.

A good friend of mine taught me that inspiration follows action just as action follows inspiration. We all start projects with enthusiasm and energy. Then it gets boring. Or hard. Then we don't feel so inspired. My friend pointed out that if we “act as if" we are still inspired the inspiration will come back. It is true. When we get out of bed and work hard towards our goals, even when we don't feel like it, it send a message to our brains (and the universe) that our desires are still important to us and our thoughts and emotions will get right back on track and align with our desires. 

So by working towards our goals (taking action) consistently we are sending a message to the higher dimensions in a time-scale that they can understand to assist us in our quest. It also forces us to "think" about our goals because we are actively pursuing them, in spite of our level of inspiration. The act of working towards our desires puts the thought into our mind for a longer period of time and it becomes undeniable to the higher planes. The body influences the mind just as the mind influences the body.

The cool thing about all this is that even if you think that the Law of Attraction is nonsense, and there is no such thing as "divine providence", the method still works. You have set a goal and are working towards it, even when you don't feel like it. You will inevitably get to a new place in your life because of your own efforts, without divine intervention. If the "universe" decides to give you a "boost" then that is a bonus. 

So by speaking the language of the universe you are setting yourself up for success by realizing that time is different for all layers of existence. Think long term and you never know what forces will come into play to support you in the pursuit of your desires.

Get Out of Your Own Way

Life is hard.

Sometimes.

It is also easy sometimes.

It is also neither sometimes. It depends on the day. The real question is,

"What version of life do you think it is"?

Do you think life is hard? If so, I'm pretty sure you will find many examples to prove your point. Do you think life is easy? If so, I'm pretty sure you will find many examples to prove your point. 

As Henry Ford once said,

“Whether you think you can, or you think you can't--you're right.”

Not to belabour the point, but your attitude determines your reality. You will experience the world as you paint it with the brush of your perceptions. 

A thief thinks everyone is a thief.

A liar thinks everyone is a liar.

I am suggesting that you will inevitably find evidence to back up your world view no matter what it is. If you have a negative world-view you will always see the bad. If you have a positive view, you will tend to see the good.
This is not magic or spiritual woo-woo, this is science. Your reticular cortex is the part of your brain that filters through the massive amounts of information that comes into your perception from your 5 senses and decides what you pay attention to. If you didn't have this function you would not be able to make sense of the world at all, there is too much information to process all at once. So your brain makes choices. 

Did you ever notice that when you are shopping for something in particular, like a new car, you start to see the make and model you desire everywhere? You start to notice all the different colours and styles. You see your favourite car stand out in a parking lot full of other cars. This is because you are thinking about it and paying attention to it. 

Life is no different. You will see what you are interested in, or paying attention to, amidst all the other things that are going on in your world. As my mother used to say,

"If you are looking for trouble, you will always find it".

So, many people go through life believing that the world is "out to get them", and somehow bad luck follows them around. There are the few who believe that they are truly blessed, and life seems to send them nuggets of serendipity more often than not. 

The truth is, life does neither of these things. Life, or the universe, is neutral. Some would say indifferent, but it is, by its very nature, a creation/destruction machine. So our thoughts are connected to, and an integral part of, the process of creation and destruction that is constantly happening. Life is happening all around us with equal amounts of bad, good, up, down and otherwise. There is no bias in the happenstance of existence. Things just ARE. 

What we pay attention to, however, defines our EXPERIENCE of reality. We tend to believe that our life is going well or spiralling out of control based on our thoughts about it, not our actual circumstances. 

Victor Frankl, in his groundbreaking work "Man's Search For Meaning" wrote about when he was in a Nazi concentration camp. As a prisoner, he was treated the same as all the other prisoners, yet some survived and some didn't. His conclusion was that those who survived had something to live for. They had a purpose. They had plans that extended out beyond their incarceration. This gave them purpose and hope. In spite of the terrible conditions they endured they had a reason to live. This is a perfect example of mindset being the difference in ones reality. All had the same circumstances, but not everyone interpreted them the same way, and thus, their lives we a product of their thoughts and attitudes, not their environment.

I am often reminded of the song "The Cheap Seats" by Alabama. In this toe-tapper, the lyrics wax poetic about how great it feels to be average. It is a celebration of mediocrity in the best sense. It encourages us to find happiness in our present circumstances without believing that things need to be better and that they could be much worse. It is all about mindset. 

Beliefs

The problem with our perceptions of reality is that we believe them. We actually believe that the world is good or bad or indifferent. We believe it -  so we never think to question it. We never stop to think whether our beliefs are true or not because they are beliefs. That is the nature of beliefs. We think that they are hard, immutable facts and build our paradigms around them. This is the nature of humanity. We are hard-wired to build meaning into our circumstances and we act, more often than not, from a desire to align with the meaning of things, instead of the reality of things. The things we think are true, or important motivate us. The things we disregard or believe are false we have no use for. 

The part of this idea we need to understand is that we chose these beliefs. We created them from our own interpretations of circumstance. They are not necessarily laws written on stone tablets or equations deep in the bowels of a physics textbook. Especially our perceptions of good and bad, right and wrong, or creation and destruction; these are purely subjective. 

For instance, one might perceive that smoking cigarettes is a good thing. Someone who smokes, believes that the feeling they get from the nicotine is a good thing. They may unconsciously believe that smoking makes them look cool or it defines them as a mature man or woman, because that is what "grown-ups" do. These are ideas that are ingrained in their minds based on decisions they made a long time ago. They don't question them. Sure they are aware of the health hazards of smoking, but they don't care. Lung cancer isn't visible, so it is easy to ignore. But the immediate physical and psychological "high" they get from a cigarette is tangible, so they choose to continue. 

So therefore, they have very little incentive to quit. Not until they get cancer, or start to have real, dangerous effects to their health or the health of someone they love will it ever occur to them to change their beliefs about smoking. Sometimes, this new paradigm sticks and they never smoke again. Sometimes not. (Smoking is an insidious habit - I understand it is an addiction). 

The point is, before the health crisis, it never occurred to them that they COULD change their beliefs about smoking - I'll even go so far as to say they never even realised they HAD a belief about smoking. That is the case for most people about most things they believe. They believe things without even realizing that it is a belief. They just accept it as fact and move on. It is a permanent state of things until something happens that bring to light the possibility that it could be changed. 

So when we believe that the world is cruel and we are doomed to "bad luck", not only will we look for evidence of such, we may even unconsciously act in such a way as to perpetuate that claim. We will self-sabotage without thinking, as we cannot support the idea that things could possibly work out well for ourselves. This is a terrible way to live, yet those who do, are trapped because they haven't been made aware that there is a way out of their misery. They haven been taught or shown how to create their own reality. This is a tragedy. 

As luck would have it, the opposite is also true. When you believe that the universe has your best interests at heart, you tend to find evidence to support your belief. Life becomes a beautiful experience full of wonder and opportunity. "Good luck" seems to find you regularly.

The hard reality of the world is that - "it is what it is". I believe that in a system of creation and destruction, which is the very nature of reality, there are equal parts of each. This balance is always maintained. Even though it is just a perception, I also believe that there are equal parts good and bad in the world too. I accept that the bad exists and I pay attention to it as needed ( it would be naive to do otherwise), but I tend to FOCUS on the good. This makes the difference. 

The other reality check one might consider is that most of the things happening in the world don't affect you. Yes, we are all connected and nothing happens in a vacuum, but for the most part, your life will not be impacted by a car accident in Montreal unless it is someone you know. With the billions of people in the world, the odds are very low. So, you may as well focus on your immediate circumstances, as this is where you have the most influence. This helps keep you in the present moment, and reminds you of your self-efficacy. You always have the choice of how you react to anything that happens. 

The Chicken and the Egg

Are most poor people poor because they have a poor mindset, or do they have a poor mindset because they are poor? This is the question. The answer is not that simple but I will make an argument that it doesn't really matter. 

Like bio-feedback in the body, the mind affects the body just as the body affects the mind. Which do you have control over? Both.

The same goes for poverty and your mindset. You can control both.

Let’s consider two scenarios:

1. Poor guy A wins the lottery. He suddenly has tons of money and is no longer "poor"

2. Poor guy B learns how to change his circumstances by educating himself on the inner workings of money and wealth.

You probably know what happens here..

Poor guy 'A' is broke within 2 years and is probably worse off than he was before. This is a statistical fact, based on studies of lottery winners. 

Poor guy 'B' slowly builds up his fortune over time using tried and true principles of wealth building. He is no longer poor.

So what fixed the "poor" problem?

Was it money?

Or

Was it mind-set?

The answer is obvious. The knowledge of how to earn, invest and manage money was the key. Money is only as useful as the person who is using it. You are "rich" or "poor" based on who you are, not your bank account statement.

Many rich people have said that they are never worried about money because if they lost it all, they would be able to make it all back within a short period of time. They know HOW to make money. That is the real wealth.

"If someone gives you a million dollars, you better hurry up and become a millionaire"

-Jim Rohn

I hope it is becoming clear that your financial circumstances are not the true measure of wealth. It is your mindset. It is your attitude. This is not some pollyanna affirmation about having a positive attitude. This is a wake-up call to get your head out of your ass and realize that you are not a victim. You are in control of your destiny. You have the opportunity to "see" the world differently.

The hard fact is, no matter where you are starting from, you can move forward. You can educate yourself. You can learn what needs to be learned to improve your financial conditions. You can develop the habits that are needed to exercise patience and execute your plan. You can learn to sacrifice and save. You can learn to think in new ways that allow you to make better choices. You can start to think about the long-term consequences of your actions, instead of fighting fires constantly. You can do it. It is a choice, not luck.

So if you find that you are struggling through life or believe that the world is "keeping you down", take a step back and try to observe your attitude about things. Try to get out of your head and examine your beliefs about money, rich people and whether or not you are in control of your life or not. 

Stop being a victim and take control of your attitude. You may not be able to control your circumstances, but you always have a choice about how you react to them. 

Learn what you need to learn about money and investing. Read my books. Take my course. Read other peoples books. Take other peoples courses. It doesn't matter. The information is out there to help you help yourself. So get out of your own way and start changing mind. 

You Must Be Willing to Change

In order to become wealthy you must become a different person than you are now, unless you are already rich. Let me explain. 

In order to become rich, you must do certain things. And these things must be done consistently over a long period of time amidst any number of difficult circumstances. Without exception.

I have written about this before, but I really didn't get into the psychology of it all. This is the hard part that nobody wants to hear. The gurus skip over this because it doesn't "feel good". 

The formula for achieving financial independence isn't complex. In fact, it is quite easy. 

Step one:

Spend less than you earn.

Step two.. 

Not so fast, you. Let's revisit step one for a moment.

Step one means, you go to work every day and make a habit of spending less than you earn and/or living below your means. This simple action requires an extraordinary degree of self-discipline, patience, self-sacrifice and long-term thinking. Are you doing that consistently now? If not, there is a reason why. 

You are your habits. Your habits dictate who you are, because our actions show the world what we are made of. We can be "nice" or "smart" or even "good looking" but unless we treat people well (nice), solve hard problems (smart) and spend time grooming (good looking) we are NOT those things. We are just the potential of those things, even though we may truly believe we are on the inside. Until we manifest our inner being into tangible action and habits in the real outside world, we are nothing. 

This may be a hard pill to swallow but it needs to be said. As the old folks say:

"The road to Hell is paved with good intentions"

In the pursuit of wealth, you must act the right way, day in and day out until you are rich. Wishing will not get you there. Visualising will not get you there. Talking about it in your "mastermind group" will not get you there. The only thing that will change your life is your actions, as demonstrated through your habitual behaviours. No matter what.

As we all know, creating a habit is hard. It takes consistent action over a long period of time to accomplish. We all have good and bad habits and often we are not aware that we have them. We just get into a routine and that is that- habit formed. The cool thing is, we have the ability to get rid of old habits and create new ones. 

We can create a new habit by doing something consistently over and over again for a long time. Some have said it takes at least three weeks to form a habit, some have said less or more than that. I say, the longer the better. There are some things, that you can create a habit of, that will enhance your life, and some that won't. It is up to you to decide. Choose a good habit and try to do it consistently for three months. This could be anything beneficial, like eating healthy, exercising, or spending less than you earn. Then be ready to work HARD at it.

In the scenario where we want to spend less than we earn we can start off with good intentions, but life is funny. There will always seem to be something that comes up that demands your money outside of your budget. The car breaks down. The insurance bill arrives. You need to buy a wedding present for your sister. There a million things that can detract you from your goal. This is where the rubber meets the road. 

If you can summon the self-discipline to say "no" when the gang are going for beer and wings on a Thursday night after work, you are getting the hang of it. If you can look for bargains in the grocery store you are getting it. But let's see how serious you really are..

Are you willing to start packing a lunch instead of going out to eat?

Are you willing to take the bus?

Are you willing to shop at the thrift store?

OK that's great. Now let's get really serious.

Are you willing to move to a cheaper neighbourhood, or dwelling?

Are you willing to sell your car and walk/bike whenever you need to go somewhere?

Are you willing to get rid of cable and read books for entertainment?

Let's get crazy..

Are you willing to move into your sisters basement for a year or two until you get back on your feet?

Are you willing to take on a second job?

Are you willing to sell stuff you haven't used in a long time?

I am making these seemingly “crazy” suggestions because it may appear like you cannot get ahead because the world is against you or you have bad luck or worst yet, the system is rigged. I am here to tell you that yes, the system is rigged, but you must be willing to play the game as it is. 

So many people are brainwashed into thinking there is a certain "standard of living" that they will accept and then try to live it, whether they can afford to or not. They have it in their minds that they couldn't possibly live without two cars, or be seen wearing last years fashions, even though they are behind on the mortgage payment. I am suggesting to you that financial freedom is not a result of serendipity, it is a result of your choices. 

You Can Choose to be RICH

You have the power to create any kind of lifestyle that you want to. You just have to be willing to do whatever it takes to get there. You may not like what it takes. You may think that what it takes is unfair, or unreasonable. It doesn't matter how you feel about what its gong to take, it just matters if you choose to do it anyways. That is the reality. Some people are starting from a harder place than others, so their "what it takes" is going to be more difficult. You must accept your own starting point and move forward from there, whether you like it or not.

There is an actual set of actions and behaviours that will result in you becoming rich. But are you willing to do them? Are you willing to stop "pretending" that you are doing well and start actually doing well? Are you willing to take a sober assessment of your current circumstances and make the necessary changes in your lifestyle so that you can put yourself and your family on the road to riches? You have to accept that this will be hard, and you must do the uncomfortable and emotionally difficult task of becoming a different person.

Jim Rohn once said:

"If someone gives you a million dollars, you better hurry up and become a millionaire"

This is exactly why most lottery winners end up broke within 2 years of winning. Because they didn't change. They didn't become millionaires. They didn't learn how to manage money. They didn't learn how to put money to work for them. They didn't earn about leverage, and passive income. They didn't learn about multiple streams of income. You need to learn these things, and then act upon them or you will soon be parted from your money too.

You are where you are at financially because of who you are. If your current level of richness isn't where you would like it to be, the solution is not more money. The solution is to become the person you need to be to create more wealth. You become that person by adopting the behaviours and habits that will make you wealthy. These are not complicated behaviours, they are just hard. Your psychological battle will be hard. But if you turn these new behaviours into habits, then they will eventually be automatic and easy. You will then miraculously do them without thinking and willpower will no longer be an issue. 

So if you can figure out a way to accept, embrace and become the behaviours that will bring the above Step 1 into reality, then the sky is the limit for you. It is arguably the hardest step but the most powerful. If you can demonstrate to yourself that you can consistently spend less than you earn for a year, then it is time to move onto step two.

Until such time as you can make Step 1 a habit, don't waste your time on anything further. You will need to work on yourself a little bit more, until you are confident that you have mastered the art of living below your means. You will have become a more confident and capable person and you will have the tools to continue your journey to financial freedom and wealth. 

Once you are a Step 1 master, I invite you to learn how to become rich by reading my books, taking my courses or following the plans of others who have done it before. I know that my plan works, and I am confident that you can achieve wealth in a myriad of ways. But they all require you to change. You must become the person you need to be to rise above your current circumstances. 

"Do not wish that life were easier. Wish that you were stronger" 

Good luck on your journey.

The Power of Having Money

Not just to buy stuff

This first thing we generally think about when we imagine ourselves being "rich" is the stuff we will buy. We think of mansions and sports cars and fancy clothes. We may think of exotic vacations or showing off to our high school friends. I am totally OK with all of these luxuries, but in my world, these are the LAST things you should acquire, after you put your money to work for you. After all, the struggles we might currently face due to lack of money are not rectified by owning a mansion or a Lamborghini. 

Time freedom

The most important thing money can buy you is time. If you had the opportunity trade places with a 95 year old billionaire, would you take it? I wouldn't. I would rather have the time, thank you very much. I'll figure out the billion dollars myself. So money is not the goal, it is just a means to an end. Having money buys you time. If you have enough money, and preferably it is being generated while you sleep, you don't have to spend all day earning a living. You can if you want to, but you don't HAVE TO. You don't need to spend time dressing up and driving to the office and spending 8 hours trying to please a manager who may or may not have your best interests at heart. Add up all those hours you spend at work and it is a good chunk of your life. I would prefer to spend my time as I choose..

Choices

Money also buys you choices. You can choose what to do with your day. You can choose what you want to drive, or where you want to go for dinner or vacation. You are free to spend your time and energy to make your life better or help someone else improve their circumstances. You will have autonomy over your own life, and feel like a sovereign human being. You are accountable to who you choose to be accountable to, not who you must be. This feeling of personal freedom is unimaginable to some, and just out of reach for many. Owning a mansion but being indebted to the mortgage will not give you this feeling. 

Work at what you want

As much as being rich often conjures up images of laying on a beach somewhere sipping Pina coladas for the rest of your days, most people who become rich don't care for that as a lifestyle. Many rich people still work. They do it because we need to feel productive. We want to contribute to the betterment of the world and rich people have the option to spend thier time working on things that matter to them. They have the freedom to spend their time and energy on work that fullfills them or solves a problem that is meaningful to them. Working your tail off in a cubicle for a paycheck is not super inspiring, and I know a lot of people who work extra hard everyday just to not get fired. This is no way to live. If you are rich, you can be the boss. You call the shots and can perhaps design a company that treats its employees well and puts people before profits. It is your choice - when you are rich.

Purpose - find a purpose

When you are rich you are free to find your true purpose. We all need a purpose in life to be happy and often when people finally become financially free they forget to find a purpose and end up unhappy. An interesting fact I read about was that the suicide rate during the great depression was far lower than it is now. That seems strange when you assume money buys happiness, but the explanation was that people back then had a purpose, which was striving to survive. Because they had a constant magnetic force drawing them towards the goal of "survival", they didn't have time to have an existential crisis and wonder what it was all about. Now that times are not quite as hard, we don't nessesarily have a built-in purpose anymore. We have to actively seek it. When you are rich, you are free to seek your purpose where you please and you have the luxury of choosing a purpose that is meaningful and well-suited to your own personality and aptitudes. 

Multiple streams of income

Worrying about money is a crappy feeling. It can cause sleepless nights and constant stress. This is not good for your health (physical and mental). Having a high-paying job is great, but what happens if you lose that job? Being rich, to me, means having multiple streams of income. If you have many sources of income flowing into your bank account, you are not dramatically affected by the reduction or loss of any one source. If you have passive income from multiple sources, you are not really concerned with losing your day job, for example. You will stop trying to "Not get fired" or " fight my way to the top" through petty office politics and ass-kissing and spend your time on doing the right thing and being conscientious. You will be amazed how satisfying a regular job can be when you really don't need it. You can stand up for yourself when necessary and walk away if things become unfair or unsatisfying. Many people who quit thier job in disgust to start thier own business find themselves just as stressed as before, if not more, because now thier income is still tied to ONE job, their business. Be an entrepreneur if you want, but please put your profits to work elsewhere. 

People want to give you money

The other cool thing about having money is it becomes easy to get more. As unfair as this seems, it is a perk of wealth that you must take advantage of. Banks look at your net worth and will lend you money if they feel you can easily pay it back, which minimises their risk. You can live by the philosophy of using "other peoples money" to further your financial portfolio and the more you have, the more you can get. Start small, and watch it snowball. 

Buy Experiences

Of course it makes sense to want to spend money on cool stuff, but science tells us that we are far better off spending our money on experiences, rather than things. Our brains get a short burst of dopamine (the feel-good drug) when we buy a new toy, but it is short-lived and our admiration of the new item will wane very quickly and continue to lessen over time. We will need to go out and buy something new constantly to maintain the "high" that new things gives us. This is unsustainable in so many ways, I need not go on. But the same science also says that our brains will take any new and unique experience and improve it over time. Our memory of it will sharpen the edges, and filter out the boring stuff. We will gradually make the memories of a new and fun experience better than the actual experience was. This is not dissimilar to an investment, as it gains value over time. This is in keeping with our investing philosophy is it not? Having money gives you the opportunity to have many new and cool experiences that will increase in value over time. 

Charity

Of course, when you have money you can choose to spread the wealth. This can be done because you have not only money to give to those who need it, but you have time. You have the time to devote to a worthwhile cause. You can donate money too, of course, but labour is the cornerstone of productivity. If you have time, and do not have to spend 12 hours a day devoted to earning a living. You can spend time volunteering at the local homeless shelter, or the food bank. You can lift others out of poverty and help give them a leg up. If you have learned to achieve wealth, you can pass it on.

Teach others

You can really make a difference by showing other people how you did it. This ability has power like no other. When you teach someone how to become rich, not only are you helping them to rise above their circumstances, you are perpetuating the movement. If you teach them well, they, in turn, will teach others and so on. The word will spread and soon we may not have to teach people to become wealthy, because they will have the choice to be wealthy or not.

"Give a man a fish, you feed him for a day. Teach a man to fish, you feed him for a lifetime"

Change the world - improve the system

I think the most powerful thing about financial independence is the ability to change the system. You no longer have to fight to survive. You have won the game of money as it exists right now, and you now have the freedom, and influence to change the game. You can lobby for new laws that give everyone a fair shake at getting ahead. You can pursuade people to include personal finance education in schools. You can join worthwhile causes like Basic Income Canada that are fighting to bring about political change that will enanble everyone to be housed, clothed and fed. There are so many new ideas out there that would improve our current system that it boggles the mind. I talk about many of them and discuss how we can allow everyone to prosper as they see fit in my latest book, "We Can Save The World..but there's no money in it". 

Employ people

Of course, being wealthy gives you the opportunity to spread prosperity and productivity without having to changing the world. You can just employ people. If you made your money with a business you are already doing that. You are paying people to help you bring value to the world and your are assisting them to survive in this capitalist system we all are immersed in. By employing people, you give them a leg up and help them to feel productive and worthwhile. If you don't have a business, you can pay people to clean your house or cut your grass. There are million things that you can pay people to do for you that helps them and you. You save time and labour and these people have the opportunity to get ahead. Be generous and treat people with respect and kindness, especially if they are in your employ. You can set a new example and be a good person. 

Drive innovation - focus talent

The world is not perfect, nor is our financial system. However, it is what it is, and we can learn about it to our advantage or we can choose to be a victim of it's flaws. We are submersed in capitalism and it is encumbent upon us to make the best of it. We must choose to learn about money, investing and personal wealth building. We must give ourselves the best chance we can to be free from indentured servitude and pursue financial and personal freedom. Once we do that we now can make a difference. We can help others to prosper. We can teach them to get ahead. We can pursue worthwhile causes and use our power and influence to change the world for the better. We can actually have the time and space to take lofty ideals seriously and try to bring them back down to earth in practical ways.

The power of having money is more than mansions and cars. It is freedom from the chains of poverty and the time to become a fully realized human being with the ability to lift others out of ruination. You cannot save others until you save yourself. The great Canadian author Tom Harpur wrote about this in his amazing book, "For Christ's Sake" . He suggests that the primary message of Jesus was to love yourself, then love others. You cannot give what you don't have. The airlines say the same thing - put your own mask on before you help others. You are no help to anybody if you are unconscious. 

You are also not much help to the poor if you are poor yourself. When you are financially free you now have the enviable position to make a true difference in your own life and lives of others. Don't worry about the mansion. Be the best version of yourself and happiness will be yours. Then go buy stuff.

Make Money a Priority

We have all heard the sayings

"Money doesn't buy happiness"

“Money is the root of all evil"

"Rich people are crooks"

I have engaged in these philosophical discussions many times and I am starting to think that these are just things that poor people say to make themselves feel better about being poor. It really is sad when people are affected in a negative way because of money - either too much or too little of it. 

It has been said that having large sums of money will just amplify the type of person you already are. If you are shallow and petty, you will become even more so with wealth. Inversely, if you are generous and grateful you will have the opportunity to be those things on a grand scale once your ship come in. There really is no inherent "trait" that will be bestowed upon those with money. Money is neutral and indifferent. 

But the fact is, we live in a world of money. Our modern society is driven by commerce, money and supply and demand. Whether you like it or not, this is reality. Just like the article I have posted about in the past,

People only value you for what you can do for them 

..it is a hard pill to swallow. But, if you understand and accept this fact, you can work with it. It gives you more power to make a positive difference in your life. The same applies to money. If you accept that money makes the world go round, you will understand that earning, keeping, and growing your wealth is a cornerstone to a happy existence. Yes, there are some people who have made it their life's mission to live a simple, stoic existence. That is fine. The point here is to not NEED money or more specifically, to not worry about money. If you are living your life everyday doing what you want without worry then you are living the dream. The problem is most people are not experiencing this state of being. They are worried about paying the bills. They are trying to adopt a lifestyle that they have been told is the "right way to live' and are trying to conform to the "American dream" of happy Flintstone-esque middle-class values but might not have the proper means to do so. Making money is hard, unless you know what you are doing, and you have to give the proper amount of thought, energy and commitment to that end.

It is easy to just go to work at our dreary jobs and bring home our paycheck, hoping that it will be enough to pay the bills. This is normal for a lot of people, but it is becoming increasingly foolish, especially as the world changes. Things are getting harder. Inflation has made the middle class suburban lifestyle more and more difficult to maintain. The cost of housing, education and energy has far outgrown our salaries. It is no longer easy to buy a house, car and raise a family on a single paycheck, let alone a blue-collar salary like our parents could. There are no more pensions. There is too many conveniences that are waiting for you at the press of a button to eat up your spending money without you really being aware of it, as digital money is far easier to part with than paper money.
We need to make money, personal finance and investing a major priority in our lives. This is not a luxury anymore, this is survival. We need to know exactly how much we make, how much we spend and how much we can afford. We need to seriously consider our lifestyle choices and determine whether or not we can pay for them them or not. We need to have a plan and stick to it. Flying by the seat of our pants is less likely to result in a positive outcome anymore. We need to get serious about our personal finances. 

This does not mean you have to become a CPA or get your MBA online. This just means you need to give it due attention. You need to work your plan. 

Create a Budget

Budgeting is something that gurus have been telling you to do for a long time. Everyone hates doing it and really hate sticking to it. I know I do. But it is necessary. We can not get ahead unless we have a reasonable and consistent GAP between what we earn and what we spend. This takes an amount of self-discipline that is starting to be fairly uncommon amongst modern folks. Our grandparents were amazing at it because they had no choice. We need to work hard at it. The good news is there are a myriad of ways to grow your wealth once you have that extra cash available every month.

Invest

At the very least, invest in a retirement savings plan like a 401K, ROTH IRA or RRSP. This is the very start. If you do nothing else, this is essential. You will thank yourself, because, barring any unforeseeable circumstances, you are going to get old. Then, if you are building your retirement income on a consistent basis, you can venture into more advanced methods of investing, which my work teaches, and the great works of others that came before me.  

Multiple Streams of Income

This is the real key to wealth. Get your money working for you and earn money while you sleep. This is the only way to leverage your time and get the true effect of compounding working in your life. The key term here is passive income, which is simply your hard earned money working for you behind the scenes. These are a ton of ways to do this. My website is chock-full of resources for you in they regard. Go crazy..

Start a side-hustle

This is a money making venture that you do in the evenings and on weekends. This is your dream business or a money-making hobby that you do for the pure joy of it, or as a way to supplement your current income. By having a side hustle, you are expanding your money earning abilities by gaining a new skillset, and gaining a newfound freedom. If you went to your normal job everyday with the understanding that you really didn't NEED to go there, you would have a whole new attitude about it. You would be less likely to make decisions that just "cover your ass" and do what is right. You will stop kissing the bosses ass and start doing things because they are the right thing to do. Making work choices out of fear of retribution vs. Pure conscientiousness is night and day, and your superiors will take notice. It is very empowering to be able to say "no" when a request is unreasonable or morally suspect. It is amazing to do your best work for the satisfaction of doing it well instead of trying to climb the corporate ladder. Doing work well with enthusiasm will produce incredible results in spite of the paycheck. In the event you have an unreasonable or tyrannical boss, you now can stand up to him/her, or move on to greener pastures without worrying that you will not be able to pay your bills. 

Having money coming in from multiple sources gives you that power. 

Freedom to make your own decisions. 

Freedom to spend your time as you choose. 

These are incredible gifts that money can offer you and that, sadly, many people do not have the luxury of ever experiencing. This feeling of freedom and self-efficacy is possible by taking your financial plan seriously and giving it the attention it deserves. 

I am not saying become greedy, or corrupt. I am not a believer in "profit above all". I am just suggesting that money and the proper management of it has the power to affect your whole life and, to a massive degree, your happiness. We all need to feel like we have control over our destiny. We all need to feel like we have a purpose. We all need to believe that we are sovereign beings. Submersed in an ocean of capitalism we need to have a firm grasp on our money management habits in order to assist in gaining the aforementioned feelings. We are free to have our own priorities and philosophies about how we treat people and the more subtle life skills that bring us joy. Family time, personal growth, love, safety and adventure are all important components of a full life, but money is the lubricant that brings them to us with more ease. If you have money you have more time. If you have more time, you have the ability to focus on these "more important" things. Otherwise you will have all of your mental, physical and spiritual energy being spent on "earning a living" and have nothing left for the "more important" things. 

My books and courses can offer you a plan to make money a priority and learn how to make the most of your current income. Freedom can be yours, you just have to make it a priority and give it the necessary attention. 

The GAP

The universe exists in the “GAP”.

 The small space between the blueprint of all possibilities in the mind of the creator and material reality.

“What do you mean, Peri? This is a personal finance blog..”

The "GAP" , in the context of personal finance, refers to the small space between what you earn and what you spend.

The gap is all powerful. It is the difference between wealth and poverty.  

This simple concept has so many wealth building possibilities it boggles the mind. The GAP also defines us as people. Let’s explore a few different ways..

1. Credit - Without maintaining a GAP consistently over time, it may be difficult to develop good credit. A good or great credit rating will be your ticket to advanced wealth building. Most rich people got that way using credit or “other peoples money”. This is the key to leverage. You must use borrowed money to maximize your investment potential. If you are able to borrow money and have a credit card and/or a line of credit in good standing, then you have the tools you need to do some amazing things, which I talk about in my books and courses..

2. Forward Movement - The old saying is “you’ll never go broke making a profit”. This is true in business and in personal finance. You eliminate almost all of your potential for financial freedom if you cannot maintain the GAP continuously.

3. Peace of Mind - Having a positive differential between what you earn and what you spend has massive psychological benefits. It will bring you happiness and may even increase your usable IQ. The book Scarcity demonstrates that money worries will use up brain power you could be using for other things and demonstrably lowers IQ.

It is Hard

Step ONE of financial freedom is creating the GAP. Spend less than you earn. This is a simple concept and is easy to understand, yet is often extremely difficult to do. We are so used to spending money we don’t have that we think it is just part of everyday modern living. I am suggesting that this is now considered a rare skill. 

Living below your means is something our parents and grandparents were very good at. As kids, we though of them as “cheap”, but they actually had the right idea. The great depression caused a mass adherence to frugality and thrift which, over time, has eroded due to the availability of credit. 

Creating and maintaining a GAP requires self-discipline and sacrifice. It requires long-term thinking and well defined priorities. These are things that the modern world has not required of us as often as it did for our forefathers. Modern convenience has made many things instant, and easy. We can have many of our needs met with the push of a button on a smartphone. This is awesome, but it fools us into believing that everything is that way. The real hard truth is, most things that are worthwhile and valuable still take hard work and time to accomplish. This includes financial freedom. 

Change Your Life

Find out how to “want” to stick to a budget and how to accelerate your path to financial freedom.

My book “The GAP” is available NOW

Choose Your Format

Thrift

Cutting back on a few lattes on the way to work is not going to do it for you. You need to make big decisions about big things. Your efforts to create a usable GAP could possibly require you to make decisions about where you live, where you work and how you get from A to B. These are major lifestyle factors that have the biggest impact on our financial lives. By re-examining the major monetary burdens we have, we can make the most headway towards our goals.

Because it is so hard and, perhaps, disruptive to create a solid GAP, we should focus solely on achieving this state of being and nothing else. The carrot at the end of the stick is “advanced financial strategies that will build your wealth quicker than you ever imagined”, but until you get there it is just fantasy. 

It is incumbent on you to build a solid foundation of “spending less than your earn” and proving to yourself you have the self-discipline to stick to it, even when it requires sacrifice. Once you have developed the habit and character to do this consistently you are ready for the next steps. Until then, your investing efforts will be on shaky ground. 

The benefit is not just financial. You will have become the kind of person who deserves and can handle wealth. Giving money to an idiot will result in a broke idiot in a relatively short amount of time, but giving money to the right person will result in even more prosperity. I use the Jim Rohn saying quite often:

“If someone gives you a million dollars, you better hurry up and become a millionaire”

Being someone who deserves and can be trusted with money requires embodying the traits of self-discipline, discretion, and long-term perspective. Working towards creating a GAP in your financial life as it is currently will help you develop those traits and you will be well-equipped to move forward and implement the advances strategies that are available to you in my books and courses. You cannot succeed in the world of money without these fundamental traits.

There is a magic formula to wealth and the GAP is it. The cool thing about the GAP is that it is available to everyone. All it takes is hard work and the aforementioned character attributes. No matter how much money you earn, you can find a way to consistently spend less than you earn. Once you have mastered this skill, the world is your oyster. There are a ton of ways to leverage and maximize your GAP money that will astound you.

The good news is, its simple

The bad news is, It’s really hard.

Just like Golf. 

Money Will Not Make Everything Better - You Will

I love to quote the late, great Jim Rohn who said,

“If someone gives you a million dollars, you better hurry up and become a millionaire”

There is a lot of wisdom in this statement. The fact is, most lottery winners end up broke or even worse off than before they won within 3 years. Why is this?

Financial Education

The rules of money are not complicated. But they are hard. And we. as a species, don’t like hard. We like easy. We like quick. Especially in these modern times when almost anything you want can be had with a press of a button, we start to believe that everything is like that. But the fact of the matter is, the things that are important and lasting tend to take a long time to manifest.

We are bombarded with stories of overnight success, internet billionaires and overpaid athletes and think that riches belong to the lucky few or the most talented. This is a lie. 

Money belongs to those who seek it, are willing to pay the price for it, and are dedicated to its principles. 

The lottery winners end up broke because they believe that money is for spending. This is the story that marketers and advertising agencies want you to believe. If you spend your money, you will be buying happiness. The latest gadget will make you cool, and people will envy you. I appreciate that consumer spending helps to drive the economy and that money has to flow from person to person in order to be healthy, but a longer term perspective needs to be inserted into the narrative.

The rich feel differently about money. To them, money is not for spending, it is for investing. Money must be put to work earning more money for it to be really useful. They live by the slogan,

“Cash Flow is KING”

As Robert Kyosaki says, do not buy a sports car with your money. Invest the money and have the investment buy you a sports car. We do this by investing in assets, which are valuable things that generate income for us, even when we are sleeping. 

The rich protect their money. They know that the world tends to be a litigious place and make every effort to protect themselves from the vultures seeking a quick payday by suing them. 

The rich put their money to work in many different ways. This is traditionally known as “Multiple streams of income”. This way, if any one of their investments tanks, they still have income coming from other sources. They diversify and adjust. 

How do They Know?

They read.
It has been said that the average millionaire reads 50 books a year. That is not a small amount - almost a book a week. And these are not dime store novels, these are books that teach them and educate them. They are constantly learning, growing and evolving. They realize that they are the catalyst for change, not the whims of the luck fairy. They realize that no-one is born knowing how to manage money and it is not taught in school, so it is up to them to find the information and execute on it. They are proactive in their approach to wealth building. 

The rich learn how money works, and where to make it grow. They try and fail and then try again. They are constantly striving to adopt,

1. Self Discipline

2. Long-term perspective

3. Self deprivation

4. Patience

Self Discipline

We have all struggled with this concept, whether it is going on a new years diet or trying to hit the gym on a regular basis. We know we should be studying for the final exam, but we go out with our friends because it seems like a lot more fun. This is the foundation for success. Learning to make decisions that are for the highest good, whether you feel like it or not. There is vast power in this skill. Self-discipline is hard for everyone so to  set yourself up for success, you should try to use these hacks

1. Habit. - Repeating good behaviours over and over again makes them automatic and soon they are easy to do because you do it on autopilot. You can start small and build up.

2. Avoid decision fatigue. - Making decisions actually uses up energy and brainpower. The best and brightest tend to wear the same clothes everyday, and eat the same meals everyday and have set up their lives to remove the need to make decisions on things that are not that important. They save their decision making muscles for things that mean something.

Long term Perspective

We tend to make decisions based on the information we have available at the time. If we are struggling financially we will probably make a short term decision that alleviates the pressure in the moment. This is why we perpetuate the cycle. We borrow from a payday loan vendor to pay the bills, but end up getting further and further behind because we cannot manage our money enough to pay them back either. 

Self-deprivation

We need to learn to go without until we can actually afford things. The old saying is “live like no-one else now so you can live like no-one else later.

Patience

Most millionaires took 20 to 30 years to make their money. They worked long and hard, usually at a business, and persevered through many challenges to become millionaires. This is the norm. Anyone who comes into instant wealth is an exception.
So, by “becoming a millionaire”, you then attract money to yourself because you have learned to nurture it and grow it. You respect the process of wealth creation and refuse to believe that you can get something for nothing. Value must be exchanged and you seek to provide massive value. 

I am suggesting that if you are struggling financially, money ,in and of itself, will not solve your problems. Only by becoming someone that knows what to do with money will you be able to earn more of it, keep it and make it grow. 

As Mr. Rohn says

“Don't wish things were easier, wish you were better.”

"The Universe is Made of Stories"

This line from the movie, A Boy Called Christmas made me stop and think. It seems to me that there is more truth in this beautiful line than meets the eye. 

Some versions of the Bible start with the words:

“In the beginning, God created the heavens and the earth”

But some versions start with:

“In the beginning, there was the word”

This implies that God spoke the universe into existence. I think this might be the truer version as I am hoping to explore here.

The world, as a material place with subject and object and unbreakable laws of physics, seems fairly simple to understand. If we all saw it objectively in the same way, I think there may be a lot less conflict. But, alas, we all see the world through our own lenses and tell ourselves unique stories about it.

Nothing has any significance except for that which we give to it. 

We start wars over ideals, not reality. Our whole motivation for living, fighting and dying is to realize the meaning we have inserted behind everything. We wonder what the meaning of life is, yet we are constantly immersed in meaning. We assemble models of the world that are completely held together with meaning. 

We love and hate and have preferences. We are happy or sad depending on our interpretation of our circumstances. It is not really the actual circumstances of our current “state” that we respond to, as the objective world is complex and has many layers. But overall we interpret our state of being through the lens of meaning. We feel we need to be at a certain financial state or a certain health and beauty state. We compare our states to others. We compare our states to our own inner models. We compare our states to what they were yesterday, last week, or ten years ago. 

The actual objective state that any of us exist in is generally not even close to our perception of it. If we have a roof over our heads, food in our bellies and a significant other, we generally have everything we need. Our continued existence has a very high probability with these simple, objective needs met. If we set our standards at this basic level we potentially could be blissful 24 hours a day. But we are human- we cannot help but strive for more. We get bored, we get jealous and we tend to have a need for growth. Happiness depends on the conscious pursuit of our purpose. We require a purpose to be motivated to do anything.

Purpose

Purpose and meaning are not as differentiated from each other as you might think. We tell ourselves a story about what we have been put here on earth to accomplish , and if we are lucky, we make progress towards that. We are attaching our overall state of happiness to how far along the path towards our ultimate purpose we are. 

We built our entire world on meaning. We tell stories about what stuff means and then we react to it. We bump into someone in a crowded bar. Some people tell themselves the story 

 “That guy is trying to start a fight with me” 

Others just say 

“Excuse me” 

and move on. 

Some people tell themselves, 

“ I need to fight this guy if I am going to appear strong and confident. It would be weak to back down” 

where others might say, 

“There are more important things to fight about, I am not going to indulge in this” 

and walk away. This situation will play itself out depending on the stories we tell ourselves about it. We will not automatically start a fight because someone bumped into us. We will start a fight because of the meaning we attach to the event. We are prone to behave this way no matter the situation.  Sadly, we tend to believe our stories as truth, even though they are often fairytales.

Meaning

We are purely driven by meaning. Unless we are telling ourselves a story, we have no reason to do anything. We can assume we have certain instinctual drives that sway our behaviour to ensure our survival, and we will do what we need to do in a moment of true danger/crisis. Our fight or flight response will kick in, but we live in a society where we generally are not in a life or death situation very often. 

We make up stories to define what is important to us. We make up stories to evaluate and define the outside world. We make up stories about what good and bad are and who is accepted and who is not. We forget that our stories are just that, stories. We believe some behaviours are justified while others are purely unacceptable, depending on the stories we tell about our circumstances. 

We may feel it is justified to steal food if we need to feed our family. We may feel it is justified to kill another human being if they are trying to kill us. We may feel that we are not as good as someone else because they have more success, money or physical attractiveness. Inversely, we may feel we are better than others because of our rank on the social ladder. 

All of these ideas are not actually true, subjective reality. They’re just stories we tell ourselves. We are not actually better than or worse than another person. Stealing is wrong, period. Killing people is absolutely wrong in every way. This is the subjective truth. But we will tell ourselves a story and suddenly we are acting in ways that are not in line with our best selves. 

We need to understand that our actual existence is defined by the stories we tell ourselves and therefore, we have control over the narrative. We just need to tell ourselves the right stories and our perception of “how we are doing” will be completely different. We have the power to change our world, by how we think and feel and act. 

In the book Scarcity, they discuss how people who are in a state of financial crisis tend to make worse decisions than people who are more well-off. This is not a chicken and egg thing, this is objective reality. Because they are preoccupied with their money worries, they tend to make more short term decisions and poor long term choices because they feel the need to attack the problem with the most direct solution they have available. This type of thinking just perpetuates the cycle. 

Now part of the problem here is that the financially challenged may not know of any other way to act. They might not have the tools or the perspective to make better choices. We are not born knowing how to manage money. We are not born knowing how to practice self-discipline and long-term perspective. We need to learn it and practice it. We would definitely benefit from having someone whom we admire and respect (a role-model)  show us the ropes, through their words and actions. Some of the right behaviours we must adopt are not intuitive. 

I also suggest that happiness is something you invest in, not something you buy. If you have a long term plan that sets you on the path to financial freedom and you are sticking to it, there is a simultaneous deposit being made to you happiness account  as you execute the plan. You could buy a new toy and get a sudden rush of dopamine, but it will be short lived.  You will eventually fall back into your old patterns. But if you slowly build up a foundation of financial security over time, you will be investing in a story that keeps telling you good things about yourself and your situation over and over again. You will never get tired of hearing it.

This is why I keep writing about “just get started” or “begin where you are” in my books and articles. I believe that by beginning to invest in your financial future you are not only getting ahead, you are changing your mindset by telling yourself a different story. You are reinforcing a positive narrative by consistently working your plan day after day. It will take time. But that is a good thing, as it will force you to keep repeating the new story and train your subconscious mind to believe it. Once you believe that you are financially safe and on the right track, there is a positive story to be told over and over again and a lasting happiness will be the result.

As I have implied before, we are more motivated by stories than by objective reality, so why not tell the right story? Why not act in a way that is congruent with the story you want to tell about yourself? The meaning behind your financial plan is more powerful than the actual numbers. The story that gets told and repeated will override all the objective hurdles that will be placed in your way. 

Relative Wealth

I recently wrote an article entitled “How Much Stuff do we Need?” And I talked about minimalism and stoicism and consumerism and probably a bunch os “Isms” that I am unaware of. I want to expand on that concept and put our perceptions of wealth under some scrutiny.

What is our baseline?

We all have an unconscious perception of enough. We tend to believe our assumptions about what kind of lifestyle we need to be living to be successful or comfortable. We may think we need a 2500 square foot 2-story in a good neighbourhood with good schools and 2 cars that are under 5 years old and the latest gadget and clothing that is relatively in style in order to be happy.. 

We may think we need a 25,000 square foot mansion with 17 sports cars , 2 swimming pools, servants and a vacation house in Switzerland in order to be happy and comfortable. 

We may think we need a tiny home in a safe spot and access to organic community gardens to be “living the dream”

So which is right? Of course, you are getting my point but I dare you to question your own beliefs about this. You may be surprised when you realise that you actually feel your idea of comfort or success is the right one, and that anything outside of that is ‘weird’. 

Who are we trying to be like or impress?

So where did our own “standard of living” model come from? From our parents? Did we learn it from our peers? Do we associate with people who earn more money than us? There are a myriad of influences on our mental maps that create our perception of reality and it is important to examine them from time to time. Are they serving us? Are they realistic? Are they achievable? 

What if there was another way?

I bring this up because I see so many people struggling to appear “well-off” when they really aren’t. I see people buying the latest toys and gadgets but not able to pay their credit card balance. I see people trying to keep up with the jones’ but with no retirement savings.

The cost of living is increasing at a rate that is quite alarming. I have written about this before, but it needs to be looked at critically. The price of houses has become insane. The cost of college tuition has skyrocketed. So many middle-class “normals” have become luxuries and we need to re-evaluate what a sensible “lifestyle” looks like. 

Time = freedom

The wealthy have understood for a long time that the true currency is time. Time is what having excess money gives you. If you work for a living, you are trading your time for money. The problem is, there is only so much time. There is only one of you. That is why I am always preaching about multiple streams of income. It is the only way to leverage time and have your money working for you. 

But the bigger picture here is figuring out what you are aiming for. The amount of money you earn is only as useful as your cost of living. If your expenses every month cost you every cent you earn ( or a little more) then you have a problem. The scale of your income and expenses if irrelevant. The ratio is all that matters. If you are able to live comfortably on less than you earn then you are successful. This is the real “American Dream”. Living on less than you earn ind investing the difference. 

So it may take choking down a bitter reality pill, but in the end it is the only path to real freedom. Stop trying to impress people. Stop trying to live up to your parents expectations. Stop believing that you are more well off than you actually are. 

Take a hard look at where you are financially and embrace it. Fooling yourself or others is a poor choice. You need to start from where you are at. No-one is saying that you are stuck there. The point is to fine financial freedom. Financial freedom allows you the breathing room to grow. You may be able to achieve your subconscious lifestyle model eventually or even exceed it, but you have to build up to it. Do not drown yourself in debt to live a lifestyle that seems “normal” but is realistically not where you are at (yet). 

Can we downsize and still be happy?

If you were to be living in a modest house, driving a modest car and wearing modest clothes, but had very little debt, and investments making you passive income every month, you would have a lot less to worry about at the very least. We carry the burden of financial worries into every aspect of our lives when we are struggling to make ends meet. It affects our performance at work, at home and every part of our daily lives. We cannot perform at our best when we have financial worries. Studies have proven this conclusively. When we are carrying the weight of financial struggles with us, it actually uses up brainpower that we could be using to be more engaged in our productivity. It is an actual burden, weighing us down.

We live in a society that prides itself on espousing the tenants of freedom but are we truly free? If we are encumbered by debt and and sustainable lifestyle then we are not free, we are slaves. It is self-imposed slavery. We are taking on too much too quickly just to appear prosperous, yet we are imprisoning ourselves to a live of indentured servitude in the process.

Big rocks

Cutting back on a few lattes is not going to change your financial status. You have to really take a look at your big expenses. Primarily, where you live. If you are living in a giant McMansion in the suburbs and driving a new SUV you need to seriously evaluate if you can afford these things. If you can, then great, carry on. If your mortgage and car payment is keeping you from saving for retirement or investing for passive income, I am suggesting you at least consider a more economical place to live for the short term. This is disruptive and scary. I get it, I am not oblivious to how insane it appears to uproot your family and move to a cheaper neighbourhood. But financial freedom has so many advantages that will permeate into every area of your life, that I believe your happiness quotient will rise considerably. Then once you are on the right track, in all likelihood you will be able to move back to the “good neighbourhood” in time. This time, you will have the feeling of financial freedom to bring with you and the sky is the limit at that point. 

We are always looking for a quick fix, a short term solution to everything. We are so accustomed to getting everything right now, we forget to have long term perspective when we need it, especially for big things like housing and transportation. 

Lifestyle - are you buying a feeling? 

The dopamine rush we feel when we buy something new can be chalked up to spending money to feel a feeling. As we all know, feelings are fleeting. We cannot buy happiness. We can invest in happiness, by living below our means and investing the difference. Long term Happiness depends on long term solutions. Quick fixes do not last very long. As has been discovered by our social scientists, we we are far happier investing in long term goals, experiences and self-improvement than “things”. It is a very real fact that we get over the rush a a new toy pretty quickly and then we need to buy something else to get that rush. 

However, by having a long-term plan, and your money making you more money, you are investing in a long-term base level of happiness because you are building a foundation of financial freedom which will affect you emotionally and psychologically every single day in a positive way. This is the path to true happiness. 

We are going to be far happier building a fortune with the intent of long=term psychological peace than trying to impress people or pretend that you are “doing well”. We need to be humble and disciplined enough to start from where we are actually at, and work towards the dream. We must develop good habits that will be useful and prudent all along our journey to financial freedom. This includes:

1. Spend less than you earn

2. Live below your means

3. Invest for the long-term

4. Create multiple streams of income

5. Value your time above all else

My books, courses and website all offer ideas and strategies to live the lifestyle I am talking about here. You just need to bring an open mind and the determination to succeed in spite of what the neighbours think. You can be exceptional, you just need to claim it. 

Economic Evolution

Charles Darwin, the father of modern evolutionary theory has often been attributed as the progenitor of the popular notion of - “survival of the fittest”. This is often misconstrued as survival of the strongest or meanest or most aggressive. But what many have come realize is that Darwin actually meant “survival of the most adaptable”. This changes the whole notion that one must always be striving to be the “Alpha” or dominant player in any game. 

We like to think of business and finance as a “game” . Many people treat it as such and therefore play by whatever rules they have been taught or exposed to in their life. I have to point out that this is how we will behave by default, but not how we should behave if we really think about it. If we are to play the “game” by its natural rules, then we would clearly see that the world is complicated, and therefore needs an adaptable approach. 

Some people get ahead by being very aggressive. They feel that they must “win” at every transaction. To them, success means getting everything they want, despite the eventual outcome for their opponent. The reason so many live by this paradigm is that it works some of the time. They win sometimes and lose sometimes depending on who they are doing the transaction with. They believe in survival of the fittest as it used to be defined, and whether they like it or not, they play to win. 

Some people naturally gravitate towards a more cooperative approach. They are seeking a win/win scenario in every transaction and feel that they need to make sure both parties in a deal must walk away happy, with everything they wanted. This is a value for value mindset and is also a very effective approach to business (and life in general). They do this because it is in their nature, and also because it also works some of the time, which justifies the behaviour. 

The key point here is both approaches work “some of the time”. Neither one is the “right” way to do things every time. I am suggesting that we need to be adaptable and skilful enough at life to recognise when we need to be competitive and when we need to be cooperative. This flexibility is ultimately how we can be the most successful. 

Dr. Jordan Peterson has suggested that a fully realized human being has become aware of and nurtured all aspects of themselves, therefore, this person can run the gamut from fully savage beast to fully civilised gentry depending on what the situation calls for. Those who are “nice” because they choose to be vs. those who are “nice” because they are unable or afraid to be “not nice” have a serious advantage, not only in the world of business and finance, but in life in general. 

The disadvantage of being one-dimensionally attuned is that 50% of the time you will be unprepared to deal with your opponent. If you are aggressive when dealing with someone who are naturally cooperative, you will just alienate them and at best, they will refuse to do business with you. Those who are nice and cooperative are likely to get taken advantage of by someone who has the opposite approach. We need to adapt to the situation. We need to nurture and develop both sides of our nature and bring out whatever side is necessary for the situation. 

It is similar to a male-dominated society where male attributes are considered worthy and have value, and female attributes are considered secondary and silly. It is old-fashioned and less than optimal for everyone involved. A truly enlightened society values both male and female traits, contributions and sensibilities, as both are equally necessary to maintain the balance of our collective humanity. 

The problem with business and finance is that is seems to be the last bastion of male oriented thinking. Many still believe that good business only gets done when we approach every transaction from a competitive perspective. When, in fact, more and more business activities are adopting a caring and cooperative framework. 

Keep in mind, I am arguing for a balance between the two approaches. I feel that we need to be able to competently work in both worlds in order to achieve the greatest amount of success. We need to be able to fight to the death or show compassion and sensitivity depending on the situation. This is when we are fully whole as a human being. We all are naturally somewhere on this spectrum by birth and upbringing so it is our duty to work hard at developing the skills to flourish in all situations. 

As our world becomes more civilised and our collective consciousness reaches new levels of awareness and critical thought, we still live in a world of physical danger and animal instinct. We would be doing ourselves a disservice to maintain that we only need to be able to function at one or two layers of abstraction from the physical. We exist at all the layers all the time, so we should be aware of and function in all of them. This will require effort and uncomfortable moments on our part. Being adaptable requires a willingness to appreciate the layers outside of our natural instinctual behaviours. We may be naturally connected with the primal and feel every interaction with others must be done from a position of physical strength and intimidation. Or, we may be very sensitive and creative and feel we can negotiate our way through every situation. Both positions are limited in their ability to be effective because not every situation is the same. We need to be able to read the room and adapt to it accordingly. This is the true path to success. 

When I mention having an appreciation for other layers, this means we need to work very hard at understanding that all layers are valuable, necessary and connected. I have overused the expression that “a hammer thinks everything is a nail” but it applies here. A person who is naturally aggressive and solves problems with force or coercion may have a disdain for softer approaches because they might feel that would make them weak or less than to behave in that manner. 

Inversely, a person who solves problems with negotiation and compassion might feel that violence or domination is uncivilised or morally reprehensible and have an aversion to engaging in such savage behaviour. 

The truth is, we need to be able to do both. The world exists at all the layers and transactions happen at all the layers so we need to appreciate and understand all the layers. This makes for a very real and engaging experience of the world. We are truly present when we can change our gears and become what we need to be to be most effective. This model is very similar to the system of charkas. We all have energy centres that vibrate at several different frequencies, each building upon and dependant upon the other.

This realization that all the layers and approaches to the world are necessary and effective depending on context helps us to appreciate people who are not like us. I have a friend who has always insisted that,

“A thief thinks everyone else is a thief”

“A liar thinks everyone else is a liar” and so forth..

I think this is true to a certain extent. If you are untrustworthy you will tend to not trust anyone else because you will naturally assume they are untrustworthy too. This tendency is a hard one to overcome. It applies to our approach to almost all of our interpersonal transactions. If we feel we need to attack and overwhelm in all of our dealings then we assume everyone else is taking the same approach. If we bulldoze over someone who is naturally sensitive and might prefer a cooperative approach, we have prevented a truly effective and potentially repeatable transaction from happening. We also might assume that they were just less skilled than you at “business” and leave it at that. But this is one dimensional thinking and is a disservice to both parties. This works in the reverse scenario as well. You might not want to take a soft approach with a hard-ass. It probably won’t be mutually beneficial in the end. 

I am not talking about morals here as much as I am suggesting that we might agree that in dealing with other people we want an outcome that is optimal for all concerned. If we can agree on that then we have common ground. I think morals and manners are based on the same principles of an agreed upon set of rules. Even war has “rules of engagement”. We can agree collectively that, to be the most successful we can be, it would make the most sense to be effective in the most number and types of transactions. 

My newest book “We Can Save The World..but there’s no money in it” goes quite in depth about this disparity between cooperation and competition and I explore quite a few alternative ideas to rectify these contrasting and seemingly opposing philosophies. There is room for all of our human natures and we are better off embracing our diversity than creating a narrow path only a few are able to traverse. I hope you would find value in the ideas I put forth in the book and the other articles on this website. 

Should I Borrow To Invest?

I am often asked this question and I feel the urge to ramble on for hours about the mathematical intricacies of leverage and debt ratios etc…

But here I am going to just say..

YES

Borrow to invest. 

Here are a few reasons why.

1. The interest on the loan is tax deductable

2. The money will be earning maximum Dividends right away

3. You are protecting yourself from your greatest enemy - Yourself

This is awesome. Some might argue that borrowing to invest is foolish because the interest you pay on the loan offsets or nullifies that gains that you make. Not really, because that interest is tax deductible. This means that you will pay less tax, which in turn is more money in your pocket. Without any math at all, I can figure out that is a good thing. 

But because I LOVE math, are is our example, which I will run with for the entirety of this article.

Suppose you have a goal of having $100,000.00 invested. This would provide you with a good starting point to grow your wealth in many different ways 

So you have the choice ;

1. Save a little each month and invest until you have $100,000.00

2. Borrow $100,000.00 and pay it off over time

SCENARIO 1

In order to save $100,000.00 in 10 years you would need to save/invest

$647.82 per month. 

If you include earning 5% interest and re-investing it. 

OK

So if you borrowed 100K  at 6% interest and invested it

Payment Every Month

$1,110.21

Total of 120 Payments

$133,224.60

Total Interest

$33,224.60

Wait?! WHAT?!

So if I save to get to 100K it costs me 647 a month, but if I borrow it will cost me 1110 a month? Over 10 years?!?

Screw you, Peri. 

Hang on. We have a bit more math to do. 

The two scenarios are not apples to apples. We are neglecting to include a few things:

1. Interest tax deductions

2. Dividend/interest payments

3. Dividend/interest taxes

Scenario 1 assumes a 5% compounding - but we neglected to include the tax you will pay on the interest/ dividends.

Scenario 2 assumes no return on investment at all and no tax deduction from the loan interest. 

TOO MUCH MATH

So let me put the brakes on right here..

I can explain all the math and make my case but I don’t believe that math is going to amount to a hill of beans here. 

We are not talking about computers, we are talking about humans. Real people, with real people problems trying to get ahead financially in the world. 

Because we are flawed as computers and as money managers for the most part, we need to factor in the most important data - our tendency to make stupid decisions when it comes to money. 

We make all kinds of financial decisions based on emotions, feelings, impulses, and flawed logic. We spend to impress people. We spend to make ourselves feel better when we are down. We spend because we have been influenced by advertising and salespeople. 

There are a ton of terrible reasons to spend and/or waste money that we might not even be consciously aware of. This is the key point. 

We can set out to “save” $647 a month to build our nest-egg with the best of intentions, but what are the odds that we will actually have the self-discipline and grit to stick with it, in spite of all the emergencies, impulses and distractions that come along?

That’s what I thought. 

If we are being honest with ourselves, we are probably going to find a reason to skip a contribution or two along the way because something else came up. It is too easy to make a different decision when we constantly have a choice. It is similar to when you are on a diet and you still have cookies in the cupboard. It is too much of a temptation. We need to set ourselves up for success by removing all of the temptations as best as we can, in order to save ourselves from ourselves

This is why a $100,000.00 loan would be a better idea for many of us. It forces us to be disciplined and make those payments every single month for fear of default. We make ourselves accountable to our future selves AND to the bank. We function much better as a species when we have defined parameters to work within. We are not always our best selves when we have no deadlines, or constraints, however intangible they might be. 

Also don’t underestimate how great it will feel to have 100K invested and earning you passive income every month. It will change your whole mindset and actually help you to make better financial decisions, knowing that you have a cushion.

More Math

Having said that, I want to continue the math portion of our adventure because it might take a little bit of the sting out of the loan payment idea. 

If we invest 100K in a good dividend paying stock, we can earn about 5% per year without much trouble. This extra 5K can be used for

1. Paying down the loan faster

2. Buying more stock.

In both cases we are accelerating our gains. If we were to include the 5K in our monthly payments we would decrease the 120 month payback time to 75 months (7 years 3 months)

If we were to invest the additional 5K per year it would compound and you would have $164,361.95 at the end of 10 years. Far exceeding your 100K and enjoying a $683/month dividend payout. Not bad.

Reality Check

I realize it is difficult to get a 100K loan from any bank, especially if you are just starting out. We all must start from where we are. That is perfectly OK, as long as we start. Borrow what you can afford. Use a home equity line of credit. There are many options. 

I have written about how to pay off your mortgage faster in my book, Invest in Yourself. If you use that strategy in conjunction with this one you can build your wealth super fast. 

Taxes

I have not gone into the tax implications of this as I am not qualified to do so. Seek advice from a tax professional and make sure you ask a lot of questions. I will say, that I know there are tax benefits to dividend income and tax deductions for borrowing to invest, but the rules are different from country to country. Find out the best scenario in your particular corner fo the world. 

So my reasoning behind my suggestion that borrowing to invest is the way to go is twofold:

1. The math makes pretty good sense.

2. We suck at making money decisions

I would argue that reason #2 is the more compelling argument. 

In the book “Scarcity” they discuss how flawed our thinking is when it comes to money:

“Money, at least to some extent, is also judged relative to background. That’s why we care more about saving 40 percent on a $20 book than about saving 1 percent on a $1,000 refrigerator”

“We pinch pennies on small items, yet we blow dollars on big ones. Our frugality is thereby largely wasted. We spend hours surfing the web to save $50 on a $150 pair of shoes. Yet we forgo a few hours’ search to save a couple of hundred dollars on a $20,000 car.”

-Sendhil Mullainathan and Eldar Shafir. “Scarcity”

This is the problem. We cannot trust ourselves to consistently make rational, fact-based decisions about money management because we have too many arbitrary biases towards money based on our backgrounds, financial status, and proclivity to impulsivity. Yet the world of money and finance lives and dies by math and math alone. (Yes, the stock market is controlled by perception to a degree - but mostly valuations and earnings )

So by using leverage or “other people’s money” we are also setting ourselves up for success. We are forcing ourselves to build our fortunes in spite of our bad behaviours and this is the key. Do all the math you want, the true value in investing for the long term is actually doing it. There is no magic formula other than consistency over a long time. This will make you rich. 

If you are interested in how you can invest in a dividend portfolio, sign up for my newsletter. When you do, you will not only receive periodic updates and tips from us, you will also receive a free “How to invest in stocks” guide that shows you some examples of great dividend bearing stocks and how to use dividends to your advantage.
I hope this has been helpful. 

Get "Scarcity" on Apple Books

There is Infinite Money

There is a belief that there is only so much money in the world. This creates a mindset of scarcity among those who believe it. Scarcity, as an actual state of being, or even as a belief system, creates all kinds of problems. It does not allow people to be the best that they can be. The book Scarcity outlines this phenomenon in exquisite detail. I highly recommend it. It also makes it obvious that lack of money is not the real issue.

This issue here is that “Money” is not the problem we face. The fact is, money is just a representation of value. Value comes in many forms and has many different effects on the world. The problem is lack of understanding of what “value” is.

For example:

If I get up in the morning and make my spouse a coffee, I have provided value to her. She values the coffee, she values the time she saved not having to make it herself, she values the act of service from me, and she values the extra few minutes of sleep she may have experienced.

Just by my efforts, I have created value. This value mostly came out of thin air. Yes, the coffee wasn’t free, and the coffee maker wasn’t either. Neither is the electricity or the house I live in.  My time and effort created value. My knowledge of how to make coffee created value. Through human effort, ingenuity, and imagination, we are constantly creating more value all the time. It never ends. Through scientific innovation and a never ending thirst for more, the human race is always creating more value just by solving problems and finding new ways to serve others. 

This perpetual creation of value brings into existence the tangible and the intangible. We build roads, and cities and rocket ships. We create laws and rules and institutions. We create these things to bring stability, safety and structure to our otherwise hostile world. Having these things available to us is valuable. Many of the things we create have lasting value, just as many things have temporary value. Yet, there is always room for more. We are far from a perfect society and we are far from perfect as a species. So there is always room for more value to be created. 

Just as there is always a need and a desire for more value, there is always someone out there willing to find a way to provide it. We call these people entrepreneurs. They are the ones who look for problems that need a solution and try to find a way to make it happen. They combine all the resources they have available to bring forth this value into reality. They use, time, effort, money, people, expertise and tools to create a new value proposition. Because the perception of value is relative, they take the chance that people will value the thing they created appropriately and exchange value in return for it. 

Money

As it becomes cumbersome to exchange goods or services or time or favours all the time, we use money instead. Money represents all of these things in a nice easy compact form. We exchange money to represent time, or effort, or expertise. We exchange money to represent material goods, time, or specialised skill. 

Money is only representing value, and value is always being created. Therefore, there is infinite money. We hear people complaining that the dollar is not worth what it once was, and that is true. Inflation is more about the buying power of a dollar than the “cost” of things going up. They are always printing more money. But to a certain degree they have to, as there is more value in the world to be represented.  Of course this is going to happen. 

It is similar to company shares. If a company grows large enough, eventually their shares become very valuable. In some cases, they start to become too expensive for most people to buy, and the company suffers from not enough investment dollars being injected into the business. So they do a stock split. This means they double the number of shares available and decrease the cost per share by half. So if you owned 50 shares of XYZ company and each are was worth $100, a stock split would mean you now have 100 shares each valued at $50. The total ‘value” of your shares is the same, but now there are more shares in circulation. More shares in circulation means more opportunity for more people to share in the wealth and prosperity of that company. 

The world economy is no different. The more “money” there is, the more money that is available for anyone who is willing to create value and provide that product or service to the world. There is always more problems to solve. There is always a reason to strive for better. 

Provide Value

We can make as much money as we desire as long as we understand that the price we need to pay for that money is value in direct proportion to the amount of money we are seeking. As my good friend Rod Burylo says in “The Wealthy Buddhist”,  If we can provide exceptional amounts of value to an exceptional number of people we will receive an exceptional amount of money in return. You must do one or both of these things. It is a simple concept, but not an easy one to execute.

Accepting that we can create value helps us to understand that there is more than enough to go around because there is infinite value to be created, thus, infinite money. It also tempers the “dog eat dog” paradigm where we are competing for finite resources and are willing to do anything to “win” at the game of money. There is plenty to go around, so we can try to cooperate. Competition vs. Cooperation  is the main theme of my latest book, “We Can Save The World..but there’s no money in it”. There is room for both philosophies in the world. In fact, competition and cooperation are both necessary and complimentary ideals and should be in every persons toolbox. 

As I mentioned earlier, scarcity can be defined as a “lack of money” - but it might just be a result of you providing a “lack of value” to the world. If that sounds harsh, it is supposed to. It has been argued that people only value you for what you can do for them (See this article). Sadly this is mostly true. But if you know that, then you have gained a valuable insight into how you can change your circumstances. Find ways to provide more value. 

I wish you the best in your journey to financial freedom and I am doing my part to provide you with as much information and support as I can give. My articles are focused on the philosophy of money and the money mindset. My books and courses are more practical guides on how to build wealth and invest wisely. Either way, I am earnestly trying to provide value as I feel that it is the only true way to wealth. You cannot be focused on what you are receiving, you have to focus on what you are giving.

The world demands value for value. The system cannot work without it. 

It's Not Your Fault

If you are struggling financially or just plain broke, it most likely isn’t because you deliberately set out to be that way. You are poor because that is what you understand. There are a million reasons for being poor, but I want to cover a few here that might shed some insight into your predicament and help you to see the light at the end of the tunnel. 

Poor Parents

When I say “Poor” parents I mean they probably were good decent hard-working folks who had decent jobs and made their payments. In the old days, that is the only money-savvy thing you had to do. Work hard, save money, and get your pension. 

They probably had no reason or desire to learn about investing or finance. They probably did just fine doing what everyone else did. The world was different then. So in what possible universe would they take the time to teach you about money? Specifically, how would you have learned about investing, business, dividends, capital gains, real estate, cryptocurrency, or e-commerce? Some of these things didn’t even exist a few years ago. 

Poor circumstances

Most people are NOT rich. This is just a fact. If everyone was rich then there would be no such thing as “rich”. It would just be life. So because wealth and money-wisdom are such rare things, the odds of you stumbling across a rich person in your everyday interactions are low. You most likely live in a neighbourhood with people of roughly the same socio-economic status as yourself. Rich people tend to cluster themselves together and put up a gate. This is a problem.

People generally are the average of the 5 people they spend the most time with. Role-models influence us more than parental advice when we are developing into big humans. We learn by example, not by words. So even in the slight chance that your folks tried to impart financial wisdom to you, it likely fell on deaf ears. Only if you were rubbing elbows with well-to-do people willing to share their secrets, would you gain the proper knowledge to get ahead.

Poor Habits

We have all heard the term “retail therapy”. It is the burst of dopamine in our brains when we buy something new that feels really good in the moment. Dopamine is also the same chemical in the brain that is spiked when we do drugs. It feels good, but leaves us empty and craving more. We tend to pursue short-term emotional spikes instead of long-term planning and patience. My personal hero, Brian Tracy, speaks of a Harvard study that demonstrated that the number ONE thing that sets people apart and is a fairly good predictor of success is LONG TERM PERSPECTIVE. Not looks, or family connections or intelligence. Not even work-ethic. 

Poor mindset

In the book Scarcity we learn that people with money problems suffer from a lack of “mental bandwidth” due to their circumstances and naturally have less brain power to spend on other things. It is because they are constantly worried about money that they tend to spend money on silly things (to feel good), make poor decisions, and show higher degrees of impulsiveness. This is not an indication if how smart they are, it is just a result of their brain using up bandwidth thinking about (worrying about) money and how to get through the day/month/year. So there is a bit of a chicken and the egg scenario here - but I am suggesting that knowledge is the key to break the cycle.

Many rich people have said that they don’t care if they lost it all because they had the know-how to get it all back. That is the magic bullet. Knowing HOW to make money is true wealth.

Some ideas

If we are willing to understand that the above mentioned “reasons” for being poor are not your fault, and are not a “set in stone death sentence”, then we can take steps to break the chains of indentured servitude and rise above our circumstances. Just like a breakthrough in therapy, it is often just the self awareness of our plight that makes the difference.

1. Read Books - Specifically read as much as you can about money, finance and wealth building. There are a ton of really good ones out there. I recommend my Top 5 HERE. I also humbly submit to you my body of work, which I am certain will allow you to build wealth if you are willing to think outside of the box.

2. Take courses - I always thought that courses were a bit of a racket. It seemed that they were very expensive and out of reach for me as I had no money. When I finally took a few courses I realized that the value I got from them far outweighed the initial cost (investment). I have earned a lot of money from things I learned in courses and books. Check out my course - it is a complete step-by-step guide to building a fortune. It assumes the student knows NOTHING about money and guides you through to some very advanced investing strategies. Take the journey with me! It will be fun.

3. Spend time with rich people - I am not saying that you should dump your friends and go hang out at the yacht club, but if you find yourself in the presence of someone who has built a fortune, chat them up. Ask them questions. People love to talk about themselves (even rich people) and most successful people are quite happy to share their wisdom. You might be surprised how forthcoming a millionaire can be.

4. Question your beliefs about money - Ask yourself if the things you believe to be true about money are actually true. By reading, learning and having conversations about money you can overwrite some of these “poor” beliefs and learn new paradigms that will serve you, instead of hinder you. Your subconscious beliefs steer your life far more than you know. Feed your subconscious mind with good, true, useful information and watch your life change before your eyes.

I believe that every time I read a book and learn something new, I am a new person. I now know something useful that I didn’t know yesterday. I am MORE. This feeling is awesome and I chase that feeling over and over again by reading as many books as I can on the things I want to know. I have learned how to invest and build wealth from books, courses and mentors. I grew up with all of the “reasons to be poor” mentioned above and a few more. I didn’t know what I didn’t know. So I educated myself and had the courage to actually go out into the real world and try some of these things. I failed many times and won and lost a ton of money. But I learned. I took each victory and defeat and added that to my bag of tricks. 

I now have multiple streams of income and earn money while I sleep. I now earn more than I ever dreamed I would as a young man. My mind had to grow to accommodate this new realty. As Jim Rohn once said:

“If someone gives you a million dollars, you better get busy becoming a millionaire”

That is why most people who win the lottery end up broke within 2 years and many end up in worse financial shape than before they received the windfall. They didn’t have the financial literacy to be proper stewards of their fortune. 

I urge you to give yourself the gift of knowledge. Learn about the world of investing and money. We live in a world that is completely driven by commerce and money so you might as well learn how it works. Financial literacy is your superpower.

So it my not be your fault that you are poor, but in order to become wealthy you need to be proactive and set your course. You must take matters into your own hands and learn what you need to learn to get ahead. They often say that you struggle because there is something that you don’t know. It can be that simple. So love yourself by feeding your mind. 

Thank you. 

If you are serious about self improvement, there is no better mentor than the amazing Brian Tracy. His books and courses have changed my life and I highly recommend you let him change yours.

Basic is Better Than Nothing

If you have read my books, taken my course, or just read my articles from time to time, you may be aware that I often suggest what might be considered “unconventional” investment ideas. I do this for a few reasons:

1. I believe that by thinking “outside of the box” that we can find ways to build a nest-egg whether we think we can afford to or not.

2. I genuinely want to help people. I have been in the position of struggling financially and it SUCKS. I want to give people hope that there is a way out. Sometimes the only reason people are struggling is because they just don’t have the right information.

3. I am convinced that the standard investment/retirement planning philosophies are not the ideal way to achieve financial freedom.

However..

I need to emphasise that good old-fashioned RRSPs, 401Ks or mutual finds are still a practical, viable and time-tested way to build your wealth. I recommend these “more traditional” strategies for one very good reason.

It is better than nothing.

I know many people who have zero savings.

Nada.

Nothing.

They are living month to month on whatever money they can scrape up from their jobs and nothing more. I see these people relying on fate or “luck’ to solve their problems. They buy lottery tickets every week with the hope that a serendipitous windfall will save them . They assume that if they can manage to grind it out until old age, the government will finally give them a safety net through some federal pension plan or old age security. These people struggle unnecessarily. They can have more, but don’t realize it.

There are also those people who have put off saving/investing until it is too late. They justify their lack of savings by saying “when the kids leave home, then I will have the extra money to put away”, or “When I get that promotion I will invest the extra”. But they never do. 

Or those people who think they are smarter than everyone else and are looking for the “edge” and refuse to “buy in to the system”. They are looking for a get-rich quick scheme or a “secret” investment idea that will blast them ahead of their peers. But they never seem to be able to pull it off.

To those of you who fall into one or more of these categories I am suggesting that the only way you are going to improve your circumstances is to find a plan and stick to it. And the earlier you can begin, the better. 

Keep It Simple

It is really not super-important which plan you choose right now. If you simply participate in your employers matched-contribution retirement savings plan, you are setting yourself up for success. Do this for your whole career and you will be farther ahead than many people. 

Simply follow the old fashioned “Pay yourself first” philosophy and invest 10% of your take home pay into a mutual fund, preferably a tax-sheltered one like an RRSP or 401K. And stick to it. Do it consistently for your whole career and you will be amazed at where you will end up. You may not be “rich” but you will not be poor. This state is miles ahead of where you would be if you do nothing. Just do something. 

The Law of Attraction

Like I said, something is better than nothing. You can start small and go from there. You can just put a small amount of money into a savings account and never touch it. That would still be better than nothing. It is not what I would do, but it is a positive first step. Many smart people have suggested that “having money” attracts more money. I think there might be something to this. If you have money in the bank, you tend to make better decisions. You tend to act more confidently and believe in your own power to control your life. You will make decisions based on logic not desperation. If you have any affinity for the “Law of Attraction” then you might get where I am coming from. Like attracts like. If you make it a point to accumulate money, no matter what the scale of your ability do so is, you will change your circumstances as this state of being will alter your reality. I have seen it work.

This is not magic or witchcraft. It is simply psychology. If you make better decisions, most of the time, that will result in better outcomes. If you act confidently, you will generally achieve more than if you act out of fear or lack. If you have money, you are better able to recognise opportunities when they come around. Having money in the bank that you are committed to keep, will put you in a whole different mindset and allow you to navigate with confidence and maintain a winning perspective. 

So if you want to just start a simple retirement savings plan and build it over your lifetime and retire at 65 without doing anything else , I salute you. You are amazing and I want to shake your hand. You don’t have to do my BYOB method. You don’t have to start your own e-commerce business or trade cryptocurrency. You can just do the basics, and you will have set yourself up for success. You are truly in the 1%.

All you need to get started is a little money, self-discipline and long-term perspective. I believe that if you live in a free country with a reasonable GDP you are good to go. Just start. You don’t need to get crazy. Just have a plan and stick to it. Adjust as you learn. Life will throw all kinds of curveballs at you. Take the punch and get back up and keep going. There is no other way. You cannot fail unless you quit. 

I know that things may seem insurmountable to some of you and I totally understand. But there is always a way out if you are willing to keep moving forward. It doesn’t matter how fast you can go right now, all that matters is that you are moving in the right direction - towards wealth. If you are able to save $10 a month right now, that is a MASSIVE step in the right direction as it has the power to change your thinking. It has the power to help you discover your true potential and drastically change your thinking. Don’t underestimate the value of a positive bank balance. 

If you want to expand your knowledge and learn some helpful strategies that you can use to improve your financial life then I invite you to consider my books and courses. I have compiled some useful strategies that you can use to get ahead financially no matter where you are starting from. 

If you choose to pass on my work until next time, then I recommend these 5 books as a great place to begin. Or, if you really want to be inspired, please give yourself the gift of the timeless wisdom and practical advise of my good friend Brian Tracy. 

You are amazing. Prove it to yourself. 

The Wealthy Buddhist

As many of you know, in the interest of being helpful I like to suggest books to my readers that have made an impact on me. I have learned a great deal of what I know from books and I will continue to do so until my very last breath. As much as I am certain that my own books are helpful and informative, I am always happy to recommend the work of others if I believe that they have something important to say. I have reviewed many books on this website that fit that criteria and I am happy to do so again.

I recently read a book by a fellow Calgarian (and personal friend) Rob Burylo entitled “The Wealthy Buddhist”. I have to say, it is a truly profound and thought provoking book. If you have ever struggled with the ethics or morality of wealth creation this is the first place to start in order to ease your mind and provide clarity of purpose.

The central theme of the book revolves around the Buddhist concept of “Right Livelihood”, which in this context means the pursuit of wealth. Burylo is very careful to differentiate between the pursuit of wealth for wealth’s sake and the pursuit of wealth as a byproduct of providing true value to others - ideally in the interests of reducing suffering. 

Mr. Burylo’s ability to logically and compassionately overlay Buddhist philosophy to the practice of wealth creation through business or other means is flawless. He spells out exactly what value means, how it is exchanged, and what true ethical business practices should look like. I have written several articles about the insidious paradigm of “Money is the Root of all evil” or “Rich people got that way through nefarious practices” and how wrong this idea is. Mr. Burylo uses the practical and time-tested principles embedded in Buddhism to easily make the argument that not only is there a moral and ethical way to gain riches, but it just might be the most effective way to do it.

He presents his ideas in a very clear and articulate manner, without being preachy or aloof. There is no hidden agenda or attempt to convert anyone to Buddhism. He just uses these timeless principles as a template to give sound advice. He presents a moral framework to utilize in the pursuit and management of wealth that proves to be pretty darn comprehensive. There is not a lot of ambiguity after you are done reading as to what constitutes “Right Livelihood” in the real modern world of business and investing. 

Mr. Burylo spends an entire chapter on the true purpose and ethical reality of sales, without ever using the actual word “Sales”. He explores the whole sales and marketing paradigm by treating it as a value proposition and the necessity to communicate your ability and willingness to deliver value. It is a beautiful and heartfelt re-imagining of , as Brian Tracy calls it, the world’s REAL oldest profession (Sales). 

My overall impression is that this book is less about Buddhism and more about a modern day, workable philosophy that is useful for navigating the moral and ethical landscape of trying to justify our daily behaviours in the pursuit of wealth. 

I have argued that the world is dictated and shaped by economics and commerce. We spend a great deal of our mental and emotional energy trying to figure out how to survive, make a living and thrive. We are immersed in this world of money -  the media, movies and urban legend sometimes can lead us astray and cause us to believe that the pursuit of money or the desire to better our circumstances may not be a noble quest. We are lead to believe that success is “easy” or “luck”. We think that only the “Special few” get to be rich. We think we need to be a rock star, pro athlete, actor or major disruptor to achieve wealth. As much as this is not true it is also not true that most rich people got that way through unethical means. Overnight success and Hollywood rags to riches stories are, by far, the exception not the rule. 

The Wealthy Buddhist is a useful guidebook to answer our questions when it comes to the morality of wealth creation. It provides a blueprint to the moral framework that is necessary to provide true value to the world and be fairly compensated for that value. It explains that we can create a business, earn rewards and spend our money with mindfulness and purpose. 

I actually believe this is a must-read for anyone who struggles with questions about the moral or ethical nature of money and business. You will turn the last page and feel assured that you can and should become wealthy without sacrificing your ideals and perhaps even making a positive impact on the world through the lessening of suffering. 

If you choose to hold off on reading one of my books right now, please consider reading The Wealthy Buddhist. You will carry this wisdom with you forever.

You can find The Wealthy Buddhist on Amazon.

Make Money Your Servant

What is Money?

Money is just a means of exchange. It is a representation of real wealth which is time, expertise, service or shelter - all of which have a “value” to every person individually. A person will place a certain value on anything and be willing to give you money for it. The weird part of it is -  one man’s trash is another man’s treasure. If you had to work very hard for long hours to earn a small amount of money, you place far more value on a dollar than someone who earns millions by sitting on his or her yacht. 

So the value you offer in exchange for the value you get is relative, depending on which side of the transaction you are on, and how badly you need the product or service you are paying for. This makes modern economics a bit of a crap shoot. We can come up with all of the formulas we want and see what drives the market etc but it is supply and demand in the end.

The difficulty here is that we start to think of money as the key player in the game. This is not the correct approach. We need to think of ourselves as the masters of the game, and use money as a tool. Money is neither good nor bad, it is only a symbol. It is a representation of the perceived value of something real. So if we can turn the tables on money, then we are setting ourselves up for success.

Make Money Work For You

I am talking about putting money to work. Use money to earn money. There is no better use of money than to earn more money. If you are working at a traditional job, you are trading your time for money. You perform a task that has a perceived value to someone else and they give you money in exchange for that. Depending on how rich your employer is, the amount they pay you has a perceived value to them as well, so consider that. Your value to them is relative to how rich they are. If you work for a billionaire you are far less valuable than if you work for a local merchant. Keep that in mind. 

The problem with trading your time for money is that there is only so much time. You can only provide so much value in a day. Even if you have a special skill that few people in the world possess, you only have 24 hours to do it. You are the bottleneck in your ability to scale your earning capability.

The only way to become super wealthy is to earn money while you sleep. This is a simple way of saying you are able to provide value to other people without being present. This is scalable in two ways: it earns money (or provides value) even when you are not working, and it can be replicated. This means, if you create something that earns money without your constant attention, you can create more. Then you are figuratively duplicating yourself from a “Value provider” perspective and can scale your output and receive the subsequent income. 

This has been known as “multiple streams of income” and is a very powerful concept. If you buy a rental property and rent it out, the tenant pays your mortgage for you and you eventually own the house without having had to pay much except for the down payment, taxes and some upkeep. The key here is that one house will not keep you busy 24 hours a day, so you could potentially buy more than one rental property. Now you have duplicated your value proposition and are earning more money without you having to be present. This is leverage. You are leveraging time and money. 

Build Assets

The key point here is that you invested money in these things. These things are called “assets” and they are your ticket to financial freedom. If you take money that you have worked for and instead of spending it, you buy assets with it, it starts to compound. Money starts making more money. This is the true path to wealth. 

It sounds magical, and it is in many ways, but it is also not instantaneous. It requires discipline, sacrifice and delayed-gratification. You will need to go without a few things in the short term to enjoy the benefits in the long-term. It takes time to build up a fortune and that is where many people fail. We have been fooled into believing in overnight success and instant gratification. Do not be sucked in. Anything powerful and worthwhile is hard and takes a long time. But “hard” does not mean impossible. “Hard” does not mean “exclusive” or “secret”. It just means you will need to make a plan and stick to it through the inevitable ups and downs of life. That is what will separate you from your peers. Being disciplined and focused in spite of obstacles. 

There are many ways to invest and put your money to work and there are benefits and detriments to each. Do your homework and find a plan that works for you. My books and courses teach a few methods that work, but there a many very smart people out there that have excellent plans too. I am happy to recommend them if you find what works for you. 

Money can be your master or your slave. You get to choose. Our society has both paths available to you. There are no guarantees in either. It is still up to you, but I sincerely hope you find the path that works for you and helps you to find happiness. My only goal is to make people aware that they actually have a choice. You are not stuck. 

These books changed my life! I highly recommend you check them out..

There are no Guarantees

Stop Dreaming, Start Doing

You may be in a position in your life where you are struggling. You may think to yourself “I want more” -  I know I do. 

I think, 

“I wish there was a magic formula that would allow me to get rich without any work or risk”

I might as well be wishing to win the lottery or finding a magic lamp in the garden behind my house. It isn’t going to happen that way. 

I am here to tell you that there is no magic formula to wealth, and anyone who says they have one is selling something. There are no guaranteed formulas for riches.

However..

There are methods to get rich. There are blueprints. If I give you the plans to build a house you still need to build it. My blueprints do not guarantee that you will execute them properly. I cannot control whether you cut corners or use cheap materials. I cannot control whether you decide to modify the plans. 

Some wealth gurus will suggest that you model others who have already done what you want to do. This is OK in principle, but maybe they did something that only works once. Maybe they have a special skill that you do not have. Maybe they got lucky. They are not you.

I am bringing the hard facts to you in order to “cleanse the pallet” as they say. You are not going to “get rich” by any other way than to build it slowly over time with a plan, patience, flexibility and leverage.

Plan

You need a plan. This is a set of principles that work most of the time to build wealth. No vehicle for creating wealth is perfect nor permanent. You may be heavily invested in a stock which crashes. You may own real estate in a market that tanks. You may invest in a company that goes bankrupt. These things happen. 

Patience

Building wealth takes time. Most millionaires took 20 years or more to build their fortunes. Overnight success is very rare and usually fleeting. Play the long game.

Flexibility

If you fail, try again. If you fail again. Keep trying. Many millionaires have lost their fortunes more than once. You only have to be right 51% of the time to be rich. 

Leverage

Here is the key. Leverage means using other people’s money. Leverage means using other people’s time. Leverage means using other people’s expertise. You need to use all three if you are going to build true wealth. Very few of us make enough money that we can build a significant fortune with the money we have left every month. Learn how to leverage. 

The Key Component. 

After all of that being said here is the “prime directive” for wealth creation. 

Do something

Yes, I have written about this before, but I cannot emphasise this enough. The difference between “wishing” that you were rich and becoming rich is actually getting off of your ass and doing something. Start that business. Buy that stock. Rent out that property. Whatever method you choose to create your fortune is totally up to you, but you have to actually DO IT. 

Do it until you succeed or fail. If you succeed - YAY. If you fail, do it again and learn from your mistakes. You cannot get rich by wishing or dreaming. You cannot get rich by using the “law of attraction” and just visualising and feeling wealth. You need to actually follow through and act upon your vision. You need to try. 

Most of us will to a great job of talking ourselves out of doing anything due to the fear of failure. We will find a hundred reasons why we cannot do something to justify our complacency. This will not do. We need to actually take the leap and work our plan. If we fail, or screw up, we just dust ourselves off and try again. This is not “the heroes journey”, this is just how life works. Our education system did not do us any favours by giving us ONE chance to pass or fail and then sort us out from there. Real life allows us to try, fail, and try again. 

We also are afraid to screw up when it comes to money because we associate money with survival. We think that if we fail at an investment opportunity we will die. This is not true, it just feels that way. If we can get over that fear and figure out what possible safety nets we can put in place, we can accomplish great things. We tend to get ourselves stuck in financial commitments that seem to control our lives: mortgages, car loans student debt, kids, credit cards. These are real commitments but we have more options available to us that you might think.

So if you are hesitant to step outside your comfort zone and begin your new wealth building pursuit because you are afraid to fail, or believe that it is impossible for you, then I ask you to consider dipping your toe in the water first. You can get started with ONE SHARE.

You can read my books or the books of others and learn some strategies for building wealth. You can take my course or the courses of others to learn key insights that you may not have known before. You have so many options to break out of your old patterns and live the life of your dreams. 

Like I said before, there is no guaranteed formula for success but there is a guaranteed formula to stay the same - do nothing. If you want your circumstances to change, you need to change. You need to become more. You need to do something that scares you. Do not wait for luck or serendipity to befall you. Do not wait for the perfect “get rich method” to appear. They don’t exist. All that you can do is pick a plan and execute it as well as you can. 

I wanted to get the point across that my methods (or anyones) for wealth creation are not guaranteed to work for everyone, but life offers no guarantees to anyone. We all have to take what we are given and do the best with it that we can. You realizing your own unique potential is all that life asks of you. You cannot know what you are capable of if you don’t test your limits and try to grow. Be more. Do more. 

Why Dividends RULE

I love dividends. Albert Einstein claimed compound interest was the eighth wonder of the world, and I agree somewhat, but I would suggest that dividends are pretty darn close to being a close second.

I love dividends for the following reasons:

1. They require zero time, effort or worry on my part

2. They keep coming forever

3. They increase to keep up with inflation

4. I have a ton of control over my own income

5. They are super tax efficient

I have rambled on about these benefits before (..and I will again) but today I would like to focus on #5:

Tax Benefits

I am not a tax expert and I hope that you will get advice form a real accountant concerning your own tax situation but here is my two-bits based on my experience. I am going to present you with some real numbers that adhere to the tax laws here in Alberta, Canada. Your particular corner of the world may be slightly different, but in general, the principles are pretty widespread throughout the modern world.

$100,000.00 per year

I like things simple, so I am using an income of 100K per year to show the math. I realize that is a lot of money and not very many people make that much, but for the ease of demonstration purposes, and to include the higher marginal tax rates some people experience it will suit my purposes. 

So let’s say you earn 100K per year. Lets look at HOW you earn that money and the tax implications of each:

Salary:

If you earn $100,000.00 per year from a salary you will pay:

Income Tax: $26,725 

This is not including CPP or EI deductions.  This amounts to an average tax rate of 26.7% 

You would keep $73,275.00. 

Interest: (Let’s see if Albert Einstein knew what he was talking about)

Income tax: $23,904

It is a little better but you are still paying 23.9% average tax

Capital Gains:

Income tax: $8,546

WOW! THAT IS WAY BETTER. Because you only pay tax on 50% of capital gains. Nice

But wait…

Dividend income

If you earned $100,000.00 per year in dividend income (and it was your ONLY source of income) you would pay:

Income tax: $5,786 

That is an average tax rate of 5.7% 

You would take home $94,214. 

Starting to see the picture? 

And get this, if you split the dividend income between you and your spouse, you would pay almost ZERO tax. Yes you heard me right. You can earn about 48K per year in dividend income without paying any tax as the corporation giving you the dividend has already paid it. If both you and your spouse earn 48K that is a total of 96K per year, tax free. 

I don’t know about you, but I am not a fan of paying more taxes than I have to. I am all for taxes, as we need social programs to function, but why pay more than is necessary?

So if you want to keep more of your “hard earned” money I suggest learning how to create dividend income. 

You might not need as much money as you think to earn a good living from dividends either. If you wanted to earn 60K a year from dividends you just need to find a stock that pays the proper yield. The higher the yield, the less you need.

Sign up for my newsletter and receive my FREE stock picking guide which will give you a full explanation of dividends and what to look for when picking dividend stocks.

My book BYOB outlines a plan to get your dividend investing strategy kick started and a magical way to accelerate your wealth creation plan.

If you want a step-by-step guide to making a dividend lifestyle a reality, enrol in my training course and you will be on your way to enjoying the rewards of financial freedom from dividend income. 

I wish you the best in these crazy times. Please be safe and HAPPY INVESTING!

I owe a great deal of my success to the legendary Brian Tracy. Through his books and programs I learned so many ideas and strategies that changed my life! Check out his website below and see if he can help you too!