Sunday, May 27, 2012

Five Myths About Children and Finances

There are a lot of myths and misconceptions flying around out there as it relates to children and finances. However, when you find out the truth, it may just be too hard for you not to want to try to implement some of the ideas I talk about on the kids that you care about the most.

In the following video, I concentrate on dispelling five of the myths using my own experience from working in the financial industry and from talking to many different parents as well as from being a parent myself.

I hope you enjoy and please leave me your comments below!

If you cannot view the video please click on this link

I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any comments, please post them below, otherwise, feel free to contact me.

Sunday, May 20, 2012

Start Living in Prime Time
Written by Denis Waitley

Prime time is that period between 6 and 10 p.m. during which most of the general public watches television. Commercials in prime time are the most expensive, approaching a million dollars per minute. Your real success in life will take a quantum leap when you stop watching other people making money in their professions performing in prime time, and start living your own dreams and goals in prime time. Time is the ultimate equal opportunity employer. Time never stops to rest, never hesitates, never looks forward or backward. Life’s raw material spends itself in the now, this moment, which is why how you spend your time is far more important than all the material possessions you may own or positions you may obtain. Positions change, possessions come and go, you can earn more money. You can renew your supply of many things, but like good health, that other most precious resource, time spent is gone forever.

Each yesterday and all of them together are beyond your control. Literally all the money in the world can’t undo or redo a single act you performed. You cannot erase a single word you said. You can’t add an “I love you,” “I’m sorry”, or “I forgive you”, not even a “thank you” you forgot to say. Each human being in every hemisphere and time zone has precisely 168 hours a week to spend. And some of the most precious hours occur in prime time.

Consider this: most of your daytime hours are spent helping other people solve their problems. The little time you have in the evenings and on weekends is all you have to spend on yourself, on your own dreams and goals, and personal development. Some thoughts to ponder:
  • Have supper with your loved ones at least two to three times per week. It’s the best time for casual conversation to listen to what those close to you feel is important in their lives. Mealtime is a time to dialogue.
  • A television set is an appliance. It should be used, at most, for two hours at a time. It should be off, unless specific programs of interest are selected. It should not be used as a one-eyed baby sitter. For the most part, TV exposes us to negative role models.
  • Instead of watching television why not read a good fiction or nonfiction book, write a letter, engage in a hobby or craft, call a friend or someone in need of encouragement on the phone, network on your computer, go out to an ethnic restaurant, a home show, an entrepreneurial show, a musical recital, a play, a fitness class, or cultural event. Take an art or photography class. Use prime time to live the kind of life others put on layaway.
Action Idea: If you and your family/friends watch TV, try not turning it on for one week. When you do watch TV, reduce by 50% the amount of time you spend watching it. Concentrate your evenings and free time engaged in hands-on, real-life experiences you can touch, feel, smell and engage all your senses in.

Instead of virtual reality, insist on the real thing.

Reproduced with permission from the Denis Waitley Newsletter. To Subscribe to Denis Waitley's Newsletter Use this link © 2012 Denis Waitley International. All rights reserved worldwide.

Sunday, May 13, 2012

Practical Applications for Utilizing the Rule of 72

Over the years I have written some posts demonstrating how, by using the Rule of 72, you can calculate approximately how long it will take you to double your money: Where should I invest - bank or stock market?
It is important, now more than ever, to take action and take advantage of this new found knowledge. A lot of people have lost faith in the stock market and instead are putting their money in safer investments like CDs. However, did you know that the average guaranteed interest rate for a Certificate of Deposit (CD) down at the bank right now is less than 1% at around .64%? Yes, that’s right, less than 1%! Also, did you know that when you invest in that safe CD down at the bank they are going to take the money you invest and loan out that money to other people, for instance, people with credit cards? Right now the average interest rate for bank credit cards is around 13%.

If we were to use the Rule of 72 on a CD with a .64% rate of interest, we’d find that we would need approximately a little over 112 years to double our money (72 ÷ .64 = 112.5). If the bank were to get 13% on the money you deposited into the CD then they would be doubling their money approximately every 5 years (72 ÷ 13 = 5.5)!

Remember, there are no guarantees when investing directly in the stock market, but chances are good that you will at least be able to do much better than .64% over time. Still think the CD down at the bank is the safer option?

Don't forget about inflation
The Rule of 72 can also estimate how long it will take for the buying power of a dollar to be cut in half due to inflation. For instance, over the past thirty years, inflation has been right around 3%. Using the Rule of 72 every 24 years (72 ÷ 3 = 24) the buying power of the dollar is worth only fifty cents. Furthermore, if inflation goes up to 4% then the buying power of the dollar will be cut in half every 18 years (72 ÷ 4 = 18).

Knowledge of this can really help you when you are planning for your retirement because you will need to take into account inflation. For example, if you were to set a goal of needing $2000 a month in retirement and you are planning on retiring in 24 years, if inflation is at 3% then in 24 years you would need to make plans for needing $4000 a month – not $2000 a month. This is because in 24 years with 3% inflation $4000 will have the same buying power as $2000 has today. Don't you think this information would be important to know before retirement?

The Rule of 72 is not only important, but if you really understand it, not only can you help yourself and others, but it can also make you look like a genius at parties.

I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any comments, please post them below, otherwise, feel free to contact me.

Sunday, May 6, 2012

Evaluating Your Associations
Written by Jim Rohn

I’d like for us to take a look at the power of influence in our lives and how it is possible to be nudged off course a little at a time until finally, we find ourselves asking, "How did I get here?"

We should ask ourselves three key questions:
  1. "Who am I around?" You've got to evaluate everybody who is able to influence you in any way.
  2. "What are these associations doing to me?" That's a major question to ask. “What have they got me doing, listening to, reading, thinking and feeling?” You've got to make a serious study of how others are influencing you, both negatively and positively.
  3. "Is that okay?" Maybe everyone you associate with has been a positive, energizing influence. Then again, maybe there are some bad apples in the bunch. All I'm suggesting here is that you take a close and objective look. Everything is worth a second look, especially the power of influence. Both will take you somewhere, but only one will take you in the direction you need to go.
Only then can we discuss three ways to handle associations or relationships that are holding you back.
  1. Disassociate. This is not an easy decision, nor something you should take lightly, but in some cases it may be essential. You may just have to make the hard choice not to let certain negative influences affect you anymore. It could be a choice that preserves the quality of your life.
  2. Limited association. Spend major time with major influences and minor time with minor influences. It is easy to do just the opposite, but don't fall into that trap. Take a look at your priorities and your values. We have so little time at our disposal. Wouldn't it make sense to invest it wisely?
  3. Expanding your associations. This is the one I suggest you focus on the most. Find other successful people that you can spend more time with. Invite them to lunch (pick up the tab) and ask them how they have achieved so much or what makes them successful. Now, this is not just about financial success; it can be someone who you want to learn from about having a better marriage, being a better parent, having better health or a stronger spiritual life.
It is called association on purpose—getting around the right people by expanding your circle of influence. And when you do that, you will naturally limit the relationships that are holding you back. Give it a try and see for yourself.

Jim Rohn, America's Foremost Business Philosopher, reprinted with permission from Jim Rohn International © 2012. As a world-renowned author and success expert, Jim Rohn touched millions of lives during his 46-year career as a motivational speaker and messenger of positive life change. For more information on Jim and his popular personal achievement resources or to subscribe to the weekly Jim Rohn Newsletter, visit