“It is the steady, quiet, plodding ones who win in the lifelong race.” 

 ~ Robert W. Service

Like the saying goes, “Hindsight is 20/20”. Looking back, I wish to have been smarter on this one as it cost quite a bit of money. Traditional advice goes something like this. “The time to take more risks is when you’re young. IF you suffer a big loss, there’s still time to recover.” Unfortunately, I bit on this one. High flying penny stocks; hot tips from my buddies and brokers left me with large losses and the occasional complete loss. To further complicate this, I had just enough wins to keep me coming back to the table. 

What I didn’t understand was the time value of investment. Calculate the value of a one-time $5,000 loss over a 45 year period at 8% (it’s just under $181,000). Five to fifteen years of this investment strategy turns into lots of money missed out on. I’d have been far better served to get a low cost index fund from Vanguard or Schwab while tolling away on something I was knowledgeable about and skilled at doing. 

It’s very difficult to save your way to wealth, but given a long time horizon, you can invest your way to wealth. Learn the time value of money, invest for the long haul, protect against catastrophic loss by purchasing quality equities, and simply let time work for you. It’s not rocket science, but remember – you’re not building a rocket.

“It’s not what you look at that matters, it’s what you see.”  

~ Henry David Thoreau

“The significant problems we face cannot be solved by the same level of thinking that created them.”  ~ Albert Einstein

I had a banker friend make the statement, “Anyone in America can become wealthy by saving.” Maybe, if you’re in a very high income group. My position is rather different. Given a long time horizon, most of the population can become affluent to wealthy by investing. Yes, you absolutely should have an emergency or savings account, but for most of us regular folks, you can’t save yourself into prosperity. 

Unfortunately, many people simply aren’t interested in investing or choose to delay investing. Too many have someone manage their money (hoping they’re competent and honest), or simply rely on the government and/or their employer. 

Ignoring the issue never works. As I’ve aged, I’ve become more cynical and informed, depending on how you look at it. The truth is nobody is more interested in my or my family’s prosperity than ME. Depending on the kindness and competence of others is the fool’s way to go. Yes, I consult others, but I’m responsible for my future. Underfunded pension plans, high fee advisors with poor to mediocre results, and people eeking out an existence on social security are not the way to go. 

Accept that if things are going to fall your way, it’s up to you to make it happen. Educate yourself on investing and move beyond just saving. Decide to become accountable for your prosperity and future. Others have successfully done it, and you can too.

“Education is the best provision for old age.”  ~ Aristotle

“Beware of little expenses. A small leak will sink a great ship.” 

 ~ Benjamin Franklin

It’s human nature to want the finest home possible. Add to that a dose of “keeping up with the Jones’,” and a false belief that a home is an investment, may lead to a house-buying decision that can work against you. So, here’s the way I break it down.

#1. Your home is NOT an investment. It’s a place to live. Even when it’s paid for, your house does not produce income. It consumes income with taxes, insurance, repairs, utilities, and possible subdivision fees. In addition, there are 2nd tier expenses that may surface. The nicer the home, the greater the pressure to have expensive furniture, drive expensive vehicles, entertain more lavishly, and the list goes on. Finally, the larger the home, the more upkeep it most likely will bring (cleaning and lawn care) which will require more of your time (a non-renewable resource). 

#2. All of this money could be deployed into investments. Low fee index funds or a simple single family rental are only two possible options. Those investments can both protect and help provide for you and your family. Ask your accountant on this one. If they disagree, you may need a new accountant.

I’m not suggesting you live in the slums, far from it. Your home should be a place you enjoy and look forward to spending time in. What I’m suggesting is that you examine the ‘bigger is better’ or the ‘I want the best home on the block’ mentality. Recognize these decisions have a significant impact on the date you arrive at financial freedom and achieve time freedom. Everything in life is a trade-off. What I’m suggesting is to step back, think about what you really care about, and make the decisions that are in your best interest. When it comes to good decision-making, don’t be afraid to swim against the tide.

“Many men go fishing all their lives without knowing it is not fish they are after.”  ~ Henry David Thoreau

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”  ~ Warren Buffett

Change is tough for nearly everyone, me included. Once I find something that works, I tend to stay with it. This has led to many long-term and positive business relationships. However, my reluctance to embrace change has also led me to miss recognizing that fundamentals were changing (think buggy-whip manufacturers). 

In my case, my primary occupation as a traditional real estate agent, went from a relatively positive one to such that it became extremely competitive with shrinking margins. I had a difficult time recognizing that my job no longer held much of a future. It had evolved into much longer hours with less and less reward. I was competent at what I did, which meant I was still succeeding while others were starting to fail. However, my success also had me missing that the niche I occupied had changed. The long-term potential was poor, but I hadn’t spotted it yet. With time I became more objective and eventually shut down that business. 

My point is it’s easy to stay with what has worked in the past. That can be a fatal way to run a business or severely hold you back in your personal life. Learn to embrace change and the possibilities that may come with it.

“Spend every day trying to be a little wiser than you were when you woke up.”  ~ Charles Munger

“It matters not how strait the gate,

How charged with punishments the scroll,

I am the master of my fate,

I am the captain of my soul.” 

 ~ William Ernest Henley, British poet and critic

1. Be reliable to yourself and others as consistent character and trust are priceless.

2. Persistence is never giving up but willing to change strategies if necessary.

3. An affable personality will bring more success and encourage a collaborative environment.

4. Integrity is a must quality in all relationships beginning with yourself, family, friends and business dealings. Dependability, honesty, respect and good judgment are golden attributes of integrity.

5. A positive can do attitude

6. Written goals ranked by importance. This will keep you focused and helps avoid value conflicts.

7. Take action at the correct time. Don’t procrastinate.

8. Be accountable for your life.

9. Develop and live by excellent philosophies.

10. Great health habits are crucial. All things suffer when overall health is impaired.

11. Think independently.

12. Always seek to grow, expand and improve all aspects of your life.

13. Proper temperament in dealing with difficult situations and/or people.

“To think is easy. To act is difficult. To act as one thinks is the most difficult.”  ~ Gothe

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”  ~ George Bernard Shaw

The lack of creativity in our culture never ceases to amaze me. As adults, we have a long list of “can’t,” “shouldn’t,” and “I could never.” We blindly accept the old saying, “You can’t have your cake and eat it too.” I couldn’t disagree more! It’s seldom the lack of opportunity which gets in our way of accomplishing goals. Rather, it’s a broken mindset that closes the door on creativity. Too many people spend their energy focusing on the excuses of why a goal cannot be reached rather than focusing on one simple question. “If I absolutely, positively had to, how could I accomplish this goal?” For example, the goal is to quit smoking. If you knew with absolute certainty that your spouse and children would die the instant you smoked, your excuse list would go out the window. You’d find a way and that horrible bad habit would end. This is because you would unleash your creativity to solve the problem, set your mind to it and beat the challenge.. 

I wrestle with this like everyone else, but I’ve made significant strides and are much better at focusing on the solutions. As I’ve done that, my life has improved immensely. I’m suggesting the next time you make an excuse, stop yourself and really invest your energy and creativity in finding a solution. Start small, build confidence, and keep going for bigger and bigger challenges. What used to seem impossible will become increasingly manageable. Give it a shot and start today.

“When you start using senses you’ve neglected, your reward is to see the world with completely fresh eyes.”  ~ Barbara Sher

“You’re the average of the five people you spend the most time with.” 

 ~ Jim Rohn

Make a conscious effort to cultivate friendships with interesting, intelligent and positive people of high character. I’m suggesting building and sustaining relationships where you give at least as much as you get. The opportunities to surround yourself with engaging and supportive people is invaluable to both your success and happiness. The benefits are shared by all of those involved and contributes to a happier life. 

Place some thought into who you would like to become friends with, then find a way to reach out to them. Many people, and particularly men, don’t have that many high quality relationships. Real friends support and encourage each other. We often hear older people say “It’s about friends and family.” Don’t wait to get old before you figure this one out. Start today. 

I’ve made the effort to both reach out to new friendships, and also renew high caliber friendships from the past. It’s been a great decision and has dramatically increased my happiness. We have encouraged each other, shared information, and enjoyed the camaraderie. Our lives are better for the effort.

Take an honest look at your life. Are you hanging out with people that elevate or diminish your life? Do you elevate or diminish your friends’ lives? Is your problem a lack of friendship or poor caliber ‘friendships’? If so, be proactive, reach out, and begin building high caliber friendships.

“A problem well stated is a problem well solved.”  ~ Charles F. Kettering

“Begin with the end in mind.”  ~ Steven Covey

Visualization is a key component of achieving your goals. Think of it as a detailed daydream in which all of your senses are used to envision the desired outcome. Imagine the location, the atmosphere, the details of your physical actions, and how you handle any challenges. Picture every phase leading up to achieving your goal. Imagine too, the outcome you desire and how you will feel and think when you’ve reached your goal. Picture yourself a formidable success machine that can overcome any obstacle. 

Effective visualization is a process which takes effort, time and patience. The following is an example where visualization played an integral role in the young success of one of my sons.  My oldest son played the euphonium(baritone) in his high school band. He had some natural talent and enjoyed music. At some point during his junior year, he decided he wanted to play in the All-State Band AND be 1st Chair. My son would be competing against every high school euphonium player in the state, some of them tutored by professional musicians. 

He invested a great deal of time into practice, placed inspirational quotes on his wall, and spent much time visualizing every step to his ultimate goal. The time, effort, patience and dedication to the process, including and especially the role of visualization paid off as he was selected 1st chair in the All-State Band. I believe the time spent visualizing was at least as important as the time spent practicing. 

While this story has been a great opportunity for a father to brag about his son, it’s also a great example of what the power of visualization can do for you. Don’t dismiss it. Pick something you’re passionate about, then run your own experiment. Use visualization to rapidly increase the speed of your success.

“Victorious warriors win first in their minds, and then go to war. Defeated warriors go to war first and then seek to win.” 

~ Suu Tsu

“Whether a nation, business, or person, you need credibility; reputation is important.”  ~ Charles Munger

Socrates said that the best way to have a good reputation is to deserve it. Follow through with commitments you make. Treat people with courtesy, dignity, and respect. Conduct yourself honestly. These are the behaviors that deserve an excellent reputation. 

Reputation is your entry point into desirable business opportunities and high caliber friendships. It’s a necessity for building that highly desirable life. Place great effort into building, maintaining, and protecting your reputation. Afterall, it’s your brand. It’s what people say and think about you. 

When you purchase a Coke or eat a McDonald’s meal, you know exactly what you are getting. Every. Single. Time. These companies are focused and relentless about maintaining and protecting the quality of their product and brand. They understand its value. 

When it comes to your reputation, your brand, you do the same. There’s a reason that excellent reputations are unusual. It’s a lot of work and typically means avoiding the path of least resistance. It’s about setting high standards. It’s about consistency, consistency, consistency. 

While none of us will ever be able to live a life without mistakes, the pursuit of building and maintaining an excellent reputation will serve us well. It will open doors to opportunity and help lead to a life of honor and satisfaction. Just one more step down the path of getting a life.

“Success is not final, failure is not fatal: It is the courage to continue that counts.”  ~ Winston Churchill

“We are called to be the architects of the future, not its victims.” 

 ~ R. Buckminister Fuller

Long-term close friendships have become increasingly difficult to keep, especially if friends relocate hundreds of miles away. Rather than simply accepting that another valued friendship will fade into the sunset, try staying connected with a group experience. 

In my family’s case, we joined up with friends at beautiful Estes Park, Colorado. We rented inexpensive cabins and spent time hiking together, eating meals and sitting around the fire pits sharing laughter and stories. In fact, We’re planning another trip together as I write this section. 

Resist the temptation to passively accept that friendships will naturally fade due to distance. Yes, phone calls and social media are adequate methods to stay in touch. Yet, nothing can replace a special kind of connectedness and anchor friendships like time spent together. 

Take personal responsibility for the relationships in your life. Take the initiative and make plans for a group vacation. It’s worth the effort!

“Those who love deeply never grow old; they may die of old age but they die young.”  ~ Benjamin Franklin