CategoriesActionFinancialObserveProgressThink About ItTime

Trying To Make Things Better, Can Make Them Worse

Whether it’s welfare, tractors in Africa, lower lending standards, or government covid policies, when people with good intentions get involved, the long run outcome can be worse.

Of course the immediate benefit is observable and often desirable. Unfortunately, the second and third order implications can be less beneficial, or even damaging or disastrous. (Though rarely for the people that initiated the policy).

Many of the world’s modern issues are derived from well intentioned people getting in the way and trying to control outcomes. Most often, people would be better served if there was less human intervention and they let the natural course of events take place. There is balance in the universe. Sometimes we should respect that and be patient.

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CategoriesActionFinancialProgressReframe your thoughts

Get Your Costs Down

If you would like more calm in your life, then get your costs down. Most of what you buy could be foregone or purchased with a cheaper alternative.

This goes for clothes especially but also works for food, travel and entertainment.

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CategoriesActionFinancialHealth & FitnessReframe your thoughtsTime

Plan!

Few people want to plan for later life and ageing but the sooner you do it, the easier and better it is.

Don’t leave the tough decisions about DNRs, funeral arrangements, inheritance, finances, POA, care, assisted living, long term care, and medical decisions to the last minute. You’ll be too tired and disinterested to do it. You might not be thinking straight or you may have dementia.

Plan ahead while you’re younger and energetic and clear headed. You can thank me later.

FYI: Amazon has a deep sale on and my book can be purchased for the price of a coffee but could help you become a happy millionaire! (Great value!!)

Grab a copy or two as gifts for some friends and family! At these prices they won’t last long. I just saw a half dozen purchased in the last half an hour. And there are now less than a dozen left! Act now!

Amazon.co.uk

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CategoriesActionFinancialThink About It

Credit Card Debt

Ideally you will never pay more than 4% per year on any credit card debt.

This means you pay it off in full, and on time, every month. Or you have done a Balance Transfer or Money Transfer deal. This usually means you’re paying 0% interest for 9, 15 or even 36 months! And the fee they charge for this is often 2.9%, which is incredibly low, especially when spread across 3 years!

If you currently pay more than £25 per month in interest payments on any one card, or combined across several cards, you can save that money if you learn a few key concepts.

Let me know if you would like any help.

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CategoriesActionFinancialObserveReframe your thoughts

Know Where Your Money Flows

You should have a plan for every penny. That would be ideal. Get as close as you can to this idea. Direct 10% to your savings and investments pot. Get it out of your account with an automatic payment, as soon as your income goes in.

If you have any money left over at the end of the month, pay down your personal debt more aggressively.

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CategoriesActionFinancialGratitudeObserveThink About It

Big Purchases

A house, a car, long haul flights and an all-inclusive or five star hotel stay can be some of the biggest purchases you’ll make in life.

Note how you feel when you consider the 5, 6 or 7 figure sum for the first time. How does that change once you’ve decided to take the leap and pay the bill? And once it’s been paid? It’s an interesting mental transition.

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CategoriesActionFinancialObserveReframe your thoughtsTime

Get Rich Quick Versus Easy

You can get rich quick but it’s unlikely to be easy. First define what quick means. In an 80 year life, I’d say quick would be 5 years, though you could stretch it to 10.

You also have to define what rich is. So let’s say USD2.0 million. That’s a reasonable sum. If you put that in a dividend stock like IBM and received 5% per year plus some capital gain, you’d have USD100,000 per year income and a growing capital base. This would be more than 3x the average salary of a US worker and they’d never have to lift a finger for it for the rest of their life. For the average person, that would be life-changing and feel rather rich.

Can it be done? Of course it can. You can achieve anything. It is rare but happens 1,000’s of times per year.

Example can be found in tech startups, sports, entertainment, music, finance, sales and small companies. In 5 years, a person can go from 17 and obscure to 22 and minted. It won’t have been easy but it was very quick. Now go make it happen!

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CategoriesActionFinancialHealth & FitnessProgressReframe your thoughtsTimeWeight

Percent Now V Later

Have you ever had these thoughts? Should I party now and hope things get better or should I spend a little time preparing for my future life? The tough part is deciding what the optimal balance is for this constant, once-in-a-lifetime consideration. Should I spend and enjoy today or save now and spend later? The ratio adjusts at every moment, consciously or not. Now is the time to make better, conscious decisions.

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CategoriesFinancialObserveReframe your thoughts

No Solutions. Only Tradeoffs.

I happened upon a video today that reminded me of this point made by Thomas Sowell, and possibly others too. Everything in life seems to be about tradeoffs. Certainly everything to do with money. We like to think there are absolute solutions but really they are just more, or less, palatable tradeoffs.

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