Scott's Thinking - Page 121 of 173

Feeling Grown Up

Posted on June 13, 2021

At what point do people feel like an adult? There are many times that people say they feel 18, 23 or 28. Feeling grown up means different things to different people.

Some people feel grown up when they can drive a car on their own. Others are instilled with civic duty, so voting is their grown up moment. For others it could be travel overseas on their own, getting married, having kids, buying a property or having a senior role in a prestigious company.

There probably isn’t just one grown up moment for anyone. Different moments will elicit a range of feelings and emotions. Perhaps they build on each other until you feel you are doing grown up stuff all the time.

There can be a lot to unpack in just how people approach this term. Are you grown up because you are serious or take on a level of responsibility? Owning an impressive house can feel grown up to some. It may depend on what they say ‘grown ups’ do or what seemed to be expected for that group when they were young.

Being grown up may just be moments of taking particular responsibility for yourself, your future and others around you.

Feeling grown up can be a mental burden for some. Remember to let your hair down occasionally.

Action Reframe your thoughts

How Do I Do That?

Posted on June 12, 2021

You probably don’t know this, but this is the most important question in your life. For everything that interests you, ask “How do I do that?”

Ask yourself or Google or anyone, to start. Then upgrade to people who have some experience in that space or activity. Then start asking people with greater success than them. Read books on it. Search it up on the internet. Speak to practitioners, professors, experts, gurus, journalists, commentators and avid fans of the activity.

Too often we start off on the wrong foot for these things we want. Sometimes we just sit there amazed it is being done. We don’t even consider it as something we could do. Even if we do think we would fancy a go at it, we too often think, “No chance, not me. I couldn’t do that.” Well neither could the person doing it now, when they first started.

Sure it looks difficult or even ‘scary’. But so did most of the great things you’ve done in your life. Like learning to walk, asking someone out, skateboarding, or living on your own.

If you want to super charge your life for fun, excitement, thrills and happiness, start asking this question and follow the process.

How do I do that?

Action Financial Observe Reframe your thoughts Time

The Power Of Compounding

Posted on June 11, 2021

Following on from the last few days, I’m combining retirement thoughts with compounding. The power of compounding is quite incredible.

I read an article recently about setting aside almost $3,000 for a child when they are born. This money could come from parents, grandparents, uncles and aunties or even from crowdfunding, I suppose.

The idea was that you could put that $3,000 into a low cost S&P 500 index fund and just let it sit there for 65 years. You would not take any out, nor would you need to put any more in. You would just let it roll over and compound.

Using the figures from the article, it noted the S&P had delivered an average annual return of between 10% and 11% in its nearly 100 years of existence. If it continued to average that rate, or even a little less (9.5%), the account would be worth over $1m by their 65th birthday.

This is more than 90% of what people would have in their retirement savings. By doing this one thing, during pregnancy or within the year after their birth, you would set them up for retirement. Regardless how their financial habits developed, they could always count on their $1m retirement fund when they turned 65.

The power of compounding is compelling.

Observe Think About It Time

See Compounding In Nature

Posted on June 10, 2021

Financial compounding is sometimes considered a wonder of the world. However, you can see compounding in nature too, if you look for it.

Let’s first review the common example of a penny doubled every day for 30 days. Would you rather be patient for 30 days or have $1m today?

Being patient pays off. After 30 days of doubling, that humble penny will be worth over $5m!! This is why consistent and frequent saving and investing is important for financial freedom. In the longer run, the difference can be very large.

We see compounding effects elsewhere too. Global population growth has shown strong growth over the last 100 years. It took thousand of years to reach the first billion people on Earth (1804). The second billion took 123 years. The third billion was only 33 years after that. You get the picture.

You also see this in animals, rodents, bugs, birds etc. And think how a chicken can produce one egg per day. Get a rooster involved and you can soon have dozens of chickens laying eggs and producing more chickens And more eggs to eat. Now some people aren’t so patient and want to eat the chicken for meat on day one. And then struggle or starve after that.

Think ahead, be patient and let nature take its course. When you see compounding in nature, use it to your benefit.

Action Health & Fitness Observe Progress Reframe your thoughts

Going Faster

Posted on June 9, 2021

Life seems to be going faster. Expectations and everyday things seem to change more quickly than before. Going faster can be great though it is good to slow it down occasionally too.

With most things, there is a finite limit for speed. Even light seems to reach a maximum speed. Other things like cars, rockets and airplanes have been pushing their limits further for decades. Though there is a point where it is not safe or technically possible to go faster.

Perhaps people reach that point too. Getting all those things done in one day might not be possible. Nor should we try to do it. Speeding around in a car isn’t good. Rushing through work may reduce the quality we bring to the table. Rushed conversations are rarely productive, especially if they have some differing views or involve a delicate subject.

When do we assess we are going fast enough? Is it when we have an incident or accident or health scare? Clearly going slow has its own challenges, which we won’t get into here. However, as individuals, we do need to double check that all that ’faster’ actually translates into better somehow. If it doesn’t, we should consider adjusting some things in our life.

Going faster is fun and desirable, but is it the best option?

Financial Observe Think About It

The Retirement Idea

Posted on June 8, 2021

Is it a myth or reality? Even if it was realistic for everyone, would everyone want to do it? The retirement idea is an interesting one.

Leaving one’s job and ceasing to work is roughly what the Oxford dictionary says it means. The ceasing to work is the bit that I find most interesting.

The idea that you do not work at all from that magical date, might be alluring for some. However, many others may find it a bit stressful not working at anything. So we have to dig at its meaning a little more.

Would it have to be no paid work or simply no working at all? What if you like your work? Many older people continue to work at their career job well after retirement age. Musicians and actors are both groups where we see some people working into their 70’s. Entrepreneurs and business owners can also be found working into their 70’s, 80’s and even 90’s.

Other people who work in occupations outside of the spotlight can also carry on working past the official retirement age.

For some, they like keeping busy. For others, they don’t have something else they would necessarily like to do. Others do it to keep some money coming in, even if they don’t really need it. Still others continue to work because the extra income helps them have the income they want or need.

The retirement idea may need a rethink.

Gratitude Health & Fitness Observe Think About It Time

The World Is Amazing

Posted on June 6, 2021

Without context this might seem a bold statement to some. However, with historical data one can see the world is amazing and getting better.

Why you might not believe this could be for many reasons. It doesn’t make it less so though. It is certainly how I see the world. There are a lot fewer bad things happening than 100, 500 or 5,000 years ago. In addition, we can see quite a few good things in this era that didn’t exist previously or weren’t as good.

With this is mind, I have been wanting to read Factfulness by Hans Rosling for several years. I received it for my birthday last week and thought I would read a few pages today to see what it was like. Wow! I am really enjoying it.

It is loaded with facts, psychology and ideas. That is my kind of book. It was so easy to read a few pages quickly as it makes sense and I already believe it so there is no convincing needed. Nor is there any rebuttal of the ideas or data as I am already on that same page. In addition, it is great to have it as a reference book with all the data, graphs and charts.

The world is amazing and it keeps on getting better. It is not perfect, and it is unlikely to ever be so. But, it is so much better than 20 years ago, let alone 200.

Action Financial Health & Fitness Think About It

We Invest in AI Not IAM

Posted on June 5, 2021

We teach machines more than humans. Some people are more interested in creating robots that learn and not children. We invest in AI not IAM. Despite the incredible progress and benefits of the AI industry, perhaps we are missing something.

Some studies I have seen suggest we need USD 36 billion to teach the rest of the children not already being taught. Meanwhile USD 73.4 billion was raised by AI startups in just the fourth quarter of 2020 alone!

We are trying to get a machine to learn and think. Investors are putting more money and intelligent resources into how to improve AI rather than in teaching children to be better.

It does seem a little odd. All those people out there who could learn and improve but few do. It is partly that they do not want to but more often they are not aware it is an option.

Sure there may be more efficiency in AI and robotics. But we have the people available. And while we are at it, could we get the curriculum to include money, financing, budgeting and self-discipline. Perhaps they could teach goal-setting and a few other life essentials.

Teach children phrases like I am amazing or I am winning.

Unfortunately, we invest in AI not IAM.

Action Financial Think About It

Provide Value To Receive Money

Posted on June 4, 2021

The economy is not rigged. The world is not run by 30 all-powerful people. Think this through folks. You need to provide value to receive money.

Now there are a lot of other things you could receive. However, the main culture around the world is to give money to those providing a valuable product or service.

The greater the perceived value for the item in question, the greater the amount of money to change hands. No one forces you at gun-point to buy your groceries from Ocado or Tesco. Neither do people force you to use Amazon to buy books, gifts or tech equipment.

However, the natural flow of things means that if you do use a certain company to fulfil your desires, it will receive your money. So, if lots of people do this, the company will receive lots of money. No conspiracy or rigged system.

If you have a problem with your money going to Amazon employees, suppliers and shareholders, then stop using their services. It really is that simple. However, you are unlikely to stop the millions of other consumers from using their service. But if they did, they would shrink out of existence like Blockbuster and Kodak.

You need to provide value to receive money. What value are you creating for others?