Sunday, August 30, 2015

The High Cost of Eating in Retirement

I think it is pretty obvious to most people the need for having a pretty nice-sized pile of money saved up (and hopefully still growing) if they are ever going to be able to stop working and retire some day. But a lot of people don't even have the slightest clue as to how big that pile of money will have
to be to support their lifestyle in retirement - much less how they are going to accumulate all that money by the time they want to retire. If this describes you in any way then you may want to check out one of my previous posts for an easy way to calculate your financial independence number.

So, just to make things clear, everyone in retirement has a lifestyle, it is just that some of those people do not have a lifestyle that they enjoy. And I'm sure you would probably agree that a retirement lifestyle where you didn't take into account the expense of eating will not be all that enjoyable. So, let's say that you have 20 years until retirement. How much is it going to cost you to eat in retirement?

Remember people are living longer and longer these days and we don't want to outlive our money, so let's at least plan for living 25 years in retirement. Twenty-five years, that means that you will be in retirement for 9,125 days. And, of course we want to plan to have at least 3 meals a day in retirement. Well, if that is the case, then that is going to be 27,375 meals that you will be eating over that 25 year period.

Now, let's say that in today's money each meal is going to cost around $5.00. But, of course, we are not retiring today, so we need to know what the meals are going to cost 20 years from now. That means we need to take into account the dreaded "i-word" - inflation. If we take into account 3.5% inflation, in twenty years you are going to actually need to have $10.00 in order to have the same buying power that $5.00 has today.

After taking all of that into consideration, you are going to need at least $273,750 in retirement just for food - and that is worst-case-scenario - if you plan to only eat $5.00 value meals! So when you are putting together your retirement plan, don't forget to plan for food too.

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, August 23, 2015

The 6 Emotional Enemies Inside Your Mind
Written by Jim Rohn

Don’t become a victim of yourself. Forget about the thief waiting in the alley—what about the thief in your mind?

What can destroy our ambitions, our fortunes, our relationships—our lives? The enemies lurking inside us, the ones we face from within, the ones we’ve got to destroy before they destroy us. There are five we must conquer:

1. Fear
We are not born with courage, but neither are we born with fear. Maybe some of our fears are brought on by our own experiences, by what someone has told us, by what we’ve read and heard about. Some fears are valid, like walking alone in a bad part of town at 2 o’clock in the morning. But once we learn to avoid that situation, we won’t need to live in fear of it.

2. Indifference
What a tragic disease indifference is. Some will say, “Ho-hum, let it slide. I’ll just drift along.” But here’s one problem with drifting: We can’t drift our way to the top of the mountain.

3. Indecision
Indecision is the thief of opportunity and enterprise. It will steal our chances for a better future. We have to take a sword to this enemy.

4. Doubt
Sure, there’s room for healthy skepticism. We can’t believe everything. But we also can’t let doubt take over. Many of us doubt the past, doubt the future, doubt each other, doubt the government, doubt the possibilities and doubt the opportunities. Worst of all, we doubt ourselves. Doubt will destroy our lives and our chances of success. It will empty both our bank accounts and our hearts. Doubt is an enemy. Go after it. Get rid of it.

5. Worry
We’ve all got to worry some—but we can’t let it conquer us. Instead, let it alarm us. Worry can be useful. If we step off the curb in New York City and a taxi is coming, we’ve got to worry. But we can’t let worry loose like a mad dog that drives us into a small corner. Here’s what we’ve got to do with our worries: Drive them into a small corner. Whatever is out to get us, we’ve got to get it. Whatever is pushing on us, we’ve got to push back.

6. Timidity
Over-caution is the timid approach to life. Timidity is not a virtue (unlike humility); in fact, it can be an illness. If we let it go, it’ll conquer us. If we’re timid, we won’t get promoted, we won’t advance and grow and become powerful. We’ve got to avoid over-caution.

So, we must battle with the enemy, battle with fears, build our courage to fight what’s holding us back, what’s keeping us from our goals and dreams. We have to be courageous in our lives and in our pursuit of the things we want and the people we want to become.

Jim Rohn, America's Foremost Business Philosopher, reprinted with permission from Jim Rohn International © 2015. 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 www.JimRohn.com.

Sunday, August 16, 2015

How to Raise Future Millionaires - It's Easier Than You Think!

"Set a goal to become a millionaire for what it makes of you to achieve it. Do it for the skills you have to learn and the person you have to become." ~ Jim Rohn

I learned about the incredible time-value of money when I was close becoming 40 years old. The time-value of money explained simply is that a small, insignificant amount of money invested over a long period of time can grow into a significant and life-changing amount of money. The key is that the more time you have, the more your money can grow.

So naturally, when I learned about this simple concept so late in life, at first I was mad. Why didn’t anyone teach me this sooner? But I realized that thinking this way was very selfish of me. I mean, most people go through their whole lives never knowing or taking advantage of the time-value of money and I am just so grateful to have learned this simple yet elusive concept. I began to realize that I still have plenty of time to take advantage of this powerful concept, and I thought, What if I applied this concept to my kids who have even more time than myself? Then I thought, What if I share what I’ve learned so that others don’t have to possibly learn this too late in life or to possibly never learn this in the first place?

So, when I learned this concept, my kids were 3 and 7 and I wondered how much they needed to invest to have a million dollars by age 65. Now when I talk about investing, I am not talking about saving in an account at the Bank or Credit Union – I’m talking about getting some Mutual Funds and actually investing that money in the Global Economy. So, the first thing I did was help my son earn some money and by the time he was 8 years old he had a whopping $335.00 to invest! As unexciting as this might seem, my son still had lots of time on his side, 57 years to be exact, until he would turn 65. And, would you believe that while invested over that period of 57 years, that insignificant $335.00 would grow to over $300,000.00! So, I figured worst case scenario, my son only had to invest $335.00 per year for only 4 years between the ages of 8 and 11 and without adding any more money, it would be very possible to accumulate over one million dollars by the age of 65! And that could all be done by only a total investment of $1340.00!

Now, if you think that is incredible, my daughter was younger, so she would have even more time for her money to work for her than her brother. My daughter was 5 at the time she started investing. Comparing apples to apples, if we were to just take the same $335.00 her brother made and invest it, but she had 60 years until age 65, that would grow to over $400,000! So the money, working only 3 years longer than it did for her brother would grow an extra $100,000! Now that's the time-value of money! Again using worst case scenario of only making $335.00 per year and investing it, she would only have to invest for 3 years between the ages of 5 and 7 and have over a million dollars by the age of 65 – all from a total investment of only $1005.00!

So do I have your attention now? Do you see the importance of understanding the time-value of money? - Not only understanding it but taking advantage of it. Isn't that exciting? And that wasn't that hard, was it?

But remember these are our kids and it is not just about the money, it is more important about the good habits they are forming and the people they are growing into along the journey. Keep this in mind and you can make this a fun experience with your kids as well as a learning experience. Now my kids are 13 and 9 and I am happy to say that over the years they have exceeded the worst-case scenarios of only investing $335.00 per year and they are well on their way to becoming future millionaires.

Check out my interview with Author, Speaker and Financial Life Skills Blogger Nancy Phillips where she asks me questions about my financial journey with my kids.

Since my kids started so early and had so much more time for their money to grow, my son and daughter only had to invest an average of less than $28 per month for 4 years or 3 years respectively! I know some of you are probably thinking to yourself, How does this help me? I don’t have any kids or I am too old. Well, it is never too late to take advantage of the time-value of money – it just becomes more and more expensive the longer you wait. And if nothing else, at least share this information with someone else who could benefit. If you were wondering how much it could cost you per month to have one million dollars by "retirement age", check out one of my earlier posts titled Don’t Pay the High Cost of Waiting – Start Now!

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.

Thursday, August 6, 2015

7 Personality Traits of a Great Leader
Written by Jim Rohn

If you want to be a leader who attracts quality people, the key is to become a person of quality yourself. Leadership is the ability to attract someone to the gifts, skills and opportunities you offer as an owner, as a manager, as a parent. Jim Rohn calls leadership the great challenge of life.

What’s important in leadership is refining your skills. All great leaders keep working on themselves until they become effective. Here’s how:

1. Learn to be strong but not impolite. It is an extra step you must take to become a powerful, capable leader with a wide range of reach. Some people mistake rudeness for strength. It's not even a good substitute.

2. Learn to be kind but not weak. We must not mistake weakness for kindness. Kindness isn't weak. Kindness is a certain type of strength. We must be kind enough to tell someone the truth. We must be kind enough and considerate enough to lay it on the line. We must be kind enough to tell it like it is and not deal in delusion.

3. Learn to be bold but not a bully. It takes boldness to win the day. To build your influence, you've got to walk in front of your group. You've got to be willing to take the first arrow, tackle the first problem, discover the first sign of trouble. Like the farmer, if you want any rewards at harvest time, you have got to be bold and face the weeds and the rain and the bugs straight on. You've got to seize the moment.

4. Learn to be humble but not timid. You can't get to the high life by being timid. Some people mistake timidity for humility. But humility is a virtue; timidity is a disease. It's an affliction. It can be cured, but it is a problem. Humility is almost a God-like word—a sense of awe, a sense of wonder, an awareness of the human soul and spirit, an understanding that there is something unique about the human drama versus the rest of life. Humility is a grasp of the distance between us and the stars, yet having the feeling that we're part of the stars.

5. Learn to be proud but not arrogant. It takes pride to build your ambitions. It takes pride in your community. It takes pride in a cause, in accomplishment. But the key to becoming a good leader is to be proud without being arrogant. Do you know the worst kind of arrogance? Arrogance from ignorance. It's intolerable. If someone is smart and arrogant, we can tolerate that. But if someone is ignorant and arrogant, that's just too much to take.

6. Learn to develop humor without folly. In leadership, we learn that it's OK to be witty but not silly; fun but not foolish.

7. Learn to deal in realities. Deal in truth. Save yourself the agony of delusion. Just accept life as it is—the whole drama of life. It's fascinating. Life is unique. Leadership is unique. The skills that work well for one leader may not work at all for another. However, the fundamental skills of leadership can be adopted to work well for just about everyone: at work, in the community and at home.

Jim Rohn, America's Foremost Business Philosopher, reprinted with permission from Jim Rohn International © 2015. 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 www.JimRohn.com.

Sunday, August 2, 2015

You Have the Power to Do Remarkable Things
Written by Jim Rohn

Human beings have the ability to turn nothing into something—to turn weeds into gardens and pennies into fortunes.

When it comes to meeting and conquering the negativity in your life, here is a key question: What can you do, starting today, that will make a difference?

What can you do when everything has gone wrong? What can you do when you've run out of money? What can you do when you don't feel well? What can you do when it's all gone sour? What can you do?

Let me give you the broad answer first…

You can do the most remarkable things, no matter what happens. People can do incredible things, unbelievable things, despite the most impossible or disastrous circumstances.

Why can humans can do remarkable things? Because they are remarkable. Humans are different than any other creation. When a dog starts with weeds, he winds up with weeds. And the reason is because he's a dog. But that's not true with human beings. Humans can turn weeds into gardens.

Humans can turn nothing into something, pennies into fortune and disaster into success. And the reason they can do such remarkable things is because they are remarkable. Try reaching down inside of yourself; you'll come up with some more of those remarkable human gifts. They're there, waiting to be discovered and employed.

With those gifts, you can change anything for yourself that you wish to change. And I challenge you to do that because you can change. If you don't like how something is going for you, change it. If something isn't enough, change it. If something doesn't suit you, change it. If something doesn't please you, change it. If you don't like how things are, change it! You're not a tree. You don't ever have to be the same after today.

If there is one thing to get excited about, it's your ability to make yourself do the necessary things, to get a desired result, to turn the negative into success. And that’s remarkable.

Jim Rohn, America's Foremost Business Philosopher, reprinted with permission from Jim Rohn International © 2015. 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 www.JimRohn.com.