The Difference Between A Pay Raise & Self Reliance

Look, some people reading this will hate what we are about to say but we’ve found that it’s always best to share what you feel needs to be shared.

Here it is…

You can’t depend on other people for your financial well being.  Not the company you work for, not the Conservatives or the Liberals, not your family.

A story for you…

A good friend got a promotion a while back and couldn’t hold back his delight.  We could understand, we used to be the same way.

But then something hit us in the head one day (maybe the sky was falling that day!) and we realized that if you get a raise your standard of living likely increases along with that raise.

No matter how many books about saving you have read, you’ll likely go out a buy that new cell phone with the larger data package or that 52″ Plasma you’ve been dreaming about since you saw it you friend’s house.

Maybe you even book a little vacation to Cuba and for you Americans reading this…maybe it’s the Bahamas 😉

So you end up spending more money.

Guess what?

You are MORE dependent on your income than you were before.

Your raise has increased your dependence on your income.  Not decreased it.

Your raise has chained you even more closely to your job.  The shackles grow stronger.

With the family to support and the mortgage on the house you feel locked in.  No options.

And then if the financial markets hit some tough times, like they are today, your company sponsored RRSP plan doesn’t look so promising any more.

Look, you need to take control of your own financial future.

If you’re looking to start this process, and it really is a process, here are some ideas to think about:

1. You must read biographies of people who have accomplished what you want to accomplish. They are the most revealing and most instructive because they give you direct insight into the thought processes and decision making used.  Start with people like Richard Branson or Warren Buffet or Ted Rogers (Rogers Wireless).

2. If you are at the stage that you really need some motivation then spend a few months on goal setting and reading.  Although Robert Kiyosaki’s books get a lot of flack for not being detailed enough they are great for thinking big.  Start with Rich Dad, Poor Dad and make sure you read his book titled, Cashflow Quadrant.  Don’t spend more than six months on goal setting. Anything longer is a waste of time.

3. Instead of using newspaper articles to make your opinions read the reports that the articles are based on.  For example, you can read reports directly from top economists at every bank’s website.  Click here to see TD’s weekly bottom line (click Weekly Bottom Line on the right hand side).

A Cupful of Espresso Motivation

We’re 37 and 32 years old respectively and it’s right about now that we’ve noticed a lot of friends second guessing their direction in life.

They’re asking themselves if they really want to be doing what they’re doing for the rest of their lives.

A few are reaching the magical 40 mark and that seems to be having a pretty big affect on them.

Earlier this week we interviewed a real estate investor and developer that’s worth tens of millions of dollars.

It took him 23 years to build his empire.  He did it one day at a time and he loved every moment of it.

Did he have doubts, yes.  Did you push forward, absolutely.

Recently we’ve been reading, A Cupful of Motivation, Howard Schultz.

It’s the story of how Starbucks started.  Howard came from the projects with nothing to his name.  He built up an amazing career for himself in New York but decided to leave his corporate gig after only a few years to join Starbucks in Seattle.

At the time Starbucks wasn’t the same place you know today … they focused on selling coffee beans, not actually single espressos and lattes.

He had a vision and decided to leave Starbucks to follow his dream.

The story twists and turns and we won’t ruin how they all come back together but we wanted to share this particular passage of when Howard decided, yet again, to leave what he was doing to continue following his passion.

It’s definitely a strong cupful of espresso motivation…check this out:

Big Goals But Small Results? Read This.

We’ve been mapping out a plan for the next stage of growth in our portfolio and our business.

Choices have to be made.  Do we pay down existing mortgages or purchase new properties?

Do we expand our business into other areas of the province and other areas of interest or do we focus on expanding the core?

This discussion got us doing some serious reflection.

With some startling observations.

Let’s begin…

How did we get to this point?

Why is it that years ago we had big goals but didn’t get anywhere fast but in the last three years we’ve accomplished more than in the previous ten.

Please understand that we’re not coming from a place of arrogance here.  We have a lot more to accomplish and others have certainly accomplished much more than we have.

But we’re still proud of where we are.

So how did this happen?

And what can we learn from it?

Here’s what we’ve learned…

When a young boy/girl starts playing street hockey with their friends they may start having dreams of playing professional hockey.  The NHL even.

And they may start talking about scoring 50 goals in the NHL.

They’re “thinking big”.

And as parents, we encourage it.

The Drill Sergeant In Your Pocket 5-Day Challenge

So how has the “drill sergeant in your pocket” been treating you?

Confused?  Check out last week’s Feature Article over here to learn about the 5-day challenge.

So, here comes the money question…

Did you do it?

Did you take the 5-day challenge and use the simple little index card strategy we outlined last week?

Or did you not have enough time to get to it?

When we first started using this strategy it became pretty clear that:

Are You Looking For ‘Riches’ Or ‘Wealth’?

I made my return from a great trip to Trinidad & Tobago and as usual, the experience has allowed me to gain some more insight into the goals I am moving towards.
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This is where I was when I had the realization. I think you can tell from the look on my face that the thought process was a good one! 🙂
We recently launched our Rock Star Inner Circle (sidenote: it looks like we will be closing it down very soon as it fills up), shortly after our launch we received an email about our intentions since we were ‘rich’.

This caught me off guard as I never think of myself as, or try to portray myself as ‘rich’. In fact, it is a word I don’t commonly use. Unconsciously I have always preferred the word ‘wealth’, and to me, there is a big difference.

When I think of riches I think of a 10,000 square foot house with a four-car garage, $500 jeans, and $5,000 handbags. These are things I don’t have. There are a lot more details but I think you understand.