Where Can Your Dreams Take You?

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I was 24 when I took my first flight in a plane. Growing up poor didn’t give me much of any opportunity to travel. In fact, it wasn’t until I started my career as a CPA that I realized how much I had missed out on. At Arthur Anderson I flew for the first time to Chicago. Woe. I was dumbstruck. Everything about that first trip I remember. Emotions do that. When stoked, they enable you to remember everything.

My initial dream, out of college, was… well honestly, I didn’t have one. I was a janitor. That’s what I was. That’s how I saw myself back in college. A janitor who happened to be going to college. Dreams? Come on. Who has dreams when you are scratching just to get by? Dreams, I believed back then, were something relegated to the rich. And back then, I hated the rich. They were everything I wasn’t. So, no dreams for me. [Read more…]

5 Questions That Could Change Your Life

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As I’ve mentioned often in my writings and interviews, self-awareness is a prerequisite to change. If your life is not what you expected it to be and you don’t know why, self-awareness holds the key. Self-awareness forces you to discover the truth about yourself. Unfortunately, most avoid thinking about why things are as they are. Without self-awareness you will never be able to understand why your life is the way it is. So, I thought I’d put on my muse hat to help you confront the inner demons that are holding you back. I’ve devised 5 questions to ask yourself that will help you better understand why you are where you are in life:

Question #1: Who Are My Mentors?

Mentors put you on the fast track to success. Those who seek out and find mentors to help them learn what to do and what not to do, excel. Those who don’t flounder. Have you ever sought out a mentor? Do you have any mentors right now? Is there any successful people you know who you could ask to be your mentor?

Question #2: Do I Have Toxic Relationships?

Success-minded people lift you up, inspire you, motivate you, encourage you, energize you and help you maintain a positive mental outlook. Successful individuals surround themselves with success-minded individuals. But, more importantly, successful people avoid toxic people like the plague. Toxic people drag you down. They demotivate you, antagonize you, anger you, interrupt your life and add little value to your life. They are typically negative, gossip mongers and naysayers who stop you in your tracks. They distract you from pursuing your dreams and your goals. They consume your limited resources of time and money. The fewer toxic relationships one has in life, the better their life will be. Have you thought about which relationships are toxic? How much time do you spend with those toxic relationships?

Question #3: How Much Self-Study Do I Do Every Day?

Daily self-improvement causes growth. Successful people pursue learning every day in order to grow into the individuals they need to be in order for success to find them. Do you read every day for learning? Do you write down what you learn? Do you have a growth mindset?

Question #4: What Are You Passionate About?

Those who pursue things they are passionate about accumulate the most wealth in life. They are the most successful individuals. What makes your heart sing? Are you pursuing things that you are passionate about? What are your dreams and you stretch goals?

Question #5: How Many Hours Do I Waste Every Day?

The hallmark of successful people is their productive use of time. They devote hours every day to self-study, networking with other success-minded people and pursuing their dreams and the goals behind their dreams. They develop a blueprint for their lives and create habits that function like a GPS, directing them to their destination – the life of their dreams.

 

Temporary Wealth – 6 Common Blunders of the Rich That Vaporize Their Wealth

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Sometimes rich people stop being rich. Things can go wrong. Sometimes those things that go wrong are outside the control of the wealthy (i.e. random bad luck) but more often than not they are things that are completely within their control.

As a CPA, I’ve been advising wealthy individuals in money matters for more than 30 years. Plus I spent five years studying the money habits of the rich and the poor (Rich Habits Study). In my CPA business and from my research, I’ve written books, articles and done many TV and radio interviews about the many blunders wealthy individuals make that cause their wealth to evaporate. You would think they’d know better but they don’t. The wealthy who make these mistakes all seem to be reading from the same script. So, I thought I’d share a few of the most common blunders of the rich that steal their wealth like a thief in the night:

  1. Penny Wise and Pound Foolish Many millionaires are frugal. By frugal, I mean they penny pinch dry cleaner costs, bank fees, credit card fees, landscaper costs, grooming expenses, such as haircuts and manicures, professional service fees, such as CPAs, attorneys, doctor and dentist charges. They will fight like a hell if they think they were overcharged for a grocery item or a restaurant charge. And then these same penny pinchers will go out and buy an expensive boat, Tesla, a diamond ring, Rolex, or take an absurdly expensive vacation. I have seen far too many wealthy business owners fight to keep wages down at their business only to spend their hard fought savings on yachts, big homes or expensive cars. It’s as if they have Jekyll and Hyde battling it out inside their very own minds. While it’s a Rich Habit to watch your pennies, it is a Poor Habit when you take those hard earned pennies and make an expensive emotional purchase.
  2. Sheep in Wolf’s Clothing – The vast majority of the rich in my study and in my CPA practice are long-term investors. They buy, hold and never panic. In fact, when the economy turns south they might even double down on their investments, buying more at a discounted price. But I’ve seen some wealthy individuals who invest aggressively and continue to do so until the economy turns south. Then they panic and begin unloading their investments. These so-called “aggressive investors” are actually conservative investors in disguise. They are sheep in wolf’s clothing. And their wolf disguise comes flying off the moment they start losing money.
  3. Ignore The Devil is in the Details – Most wealthy individuals become wealthy in one of four ways: #1 They Live Below Their Means (save more than they spend), #2 They Expand Their Means (grow their income), #3 They Do Both (save and grow income), or #4 They Inherit Their Money. Some of the individuals who fall into the Expand Their Means or Inherit Their Money categories have something in common – they often do not pay attention to the devil in the details. What I mean is that they don’t review their monthly bank statement, monthly bills or monthly credit card statements in order to make sure there are no unauthorized transactions or fees. They also don’t review certain transactions such as hotel bills, retail purchases or restaurant tabs to make sure they were not overcharged and paid the correct amount. They also don’t review their expenses at least once a year to see if they can reduce those expenses for the following year. For example, cable and cell phone costs keep going down due to increased competition. If you don’t spend any time trying to find the lowest price, it could result in you paying more than you should.
  4. Eggs Are All in One Basket – In my Rich Habits study I discovered that those with the greatest amount of wealth had three or more streams of income. This was strategic. When one stream dries up due to economic downturns, the other streams of income can come to the rescue like a knight riding on a white horse. But some rich people make the mistake of tying the bulk of their assets up in one place, such as their own business or in real estate, two very illiquid investments. For these wealthy individuals, when something goes wrong they are forced to sell some of their investments at a discount or increase their debt by securing a loan or tapping their credit line.
  5. Lack of Proper Planning – Another common money misstep is lack of proper planning. The three big missteps in this category include: #1 Lack of Adequate Retirement Planning, #2 Lack of Adequate Estate Planning and #3 Not Having an Updated Will. When Prince died he had no will and no estate planning. Settling an estate with an old will or no will at all increases the costs of probate. Also, without an estate plan in place, you will pay higher federal and state estate taxes and inheritance taxes. Millions of dollars of Prince’s estate will now go to paying the salaries of politicians.
  6. Generous to a Fault – Too much of anything is bad and this applies with giving away your money. Once you give away your money, it’s gone. Self-made millionaires are pretty responsible when it comes to distributing their wealth to others in need, but those who inherit their money or where the money comes with little effort, have a tendency to be irresponsible with their giving. Those who don’t have to work very hard for their wealth simply do not value their money as much as they otherwise would and they have a tendency to give too much of it away to their family, friends or charities.  Once people find out you’re rich they hit you up for money. It can come from every direction and overwhelm you. Those who anticipate this deluge establish a maximum amount of money they are willing to give away every year.

Staying wealthy is not as hard as getting wealthy, but it’s still hard. Any one of these six missteps can act like an anchor dragging you down off your mountain of wealth. Being aware of them is probably the best insurance you can have to preserve your wealth.

 

 

Entrepreneurs in Wonderland

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Starting a business leads you downs paths you’d otherwise never tread. For most, this uncertainty is way beyond their comfort zone, so they hold on to dear life to employment. But for those few brave souls who venture into the looking glass of entrepreneurship, they are in for the experience of a lifetime.

In the beginning, that experience is fraught with many unknowns. The obstacles and pitfalls force you to change, to grow and to learn very quickly what to do and what not to do. Sometimes the lessons are painful, but only in pain can you appreciate pleasure. Eventually, you will figure things out, get it right, develop processes to prevent further mishaps and experience the wonderland of entrepreneurship – more money, more control over your time and more freedom.

Along your Wonderland adventure you will meet many interesting people. Some will discourage you, others will take advantage of you, a few will talk a great game but fail to deliver on their promises and there will be those you meet who will actively stand in your way, preventing you from moving forward. This downside of entrepreneurship is a learning experience. Eventually, you will be able to see these types of people a mile away and avoid them.

But, along your journey, you will also meet some people who will help you. These individuals will energize and inspire you. They will open doors for you. They will mentor you. They will go out of their way to steer you in the right direction. This is the upside of entrepreneurship. Eventually, you will also be able to see these types of people a mile away and learn to embrace their help.

Fortune favors the brave. Luck visits entrepreneurs in a way that can never be anticipated. Luck favors the bold and the brave. All luck asks is that you take action. There is a Wonderland of opportunities out there but you only have one life to find out what those opportunities are.

Who Am I? Your Habits Hold the Clue

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Two out of every five minutes of our lives are devoted to habits. This means 40% of the time we are all zombies, unconsciously thinking and acting. This is why when we are confronted with the question who am I, most of us don’t know. How can you peel that onion when 40% of the time we are engaged in unconscious behavior? The key, therefore, to understanding who we are, is to track our habits, our unconscious behaviors.

Habit awareness is the key to answering the question who am I. Our daily habits reveal the answer. We cannot possibly know ourselves until we know our habits. Habit awareness is the lens through which we are able to see our true selves. Our habits reveal who we are. Habit awareness is like pulling the curtain on our otherwise unconscious existence. Only by studying our habits will we be able to truly see, for the first time, the nature of who we are.

Habits define us. They shape our lives. If you want to understand your strengths and weaknesses look at your habits. Some are good habits, which create a life of success and happiness, and some are bad habits, which create a life of misfortune and unhappiness. Our strengths and weaknesses, therefore, are revealed through our daily habits. Make habit awareness a priority in your life. Only through habit awareness will you be able to answer the question who am I.

Create a WOW and Success Will Follow

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Have you ever been wowed? We remember wow events. They stick in our mind. Wow’s happen when someone does something for you, paid or unpaid, that wow’s you. It stokes your emotions. Emotions, it turns out, creates long-term memories. When you wow someone, you create a long-term memory for that person. They will never forget what you did to wow them.

In pursuing any dream, the ability to create a wow event will dramatically improve your chances of making that dream a reality. When what you do wow’s another person, it causes a buzz. That buzz spreads like a virus through the social networks of the individual who was wowed. Soon family, friends and co-workers are looking for their own wow event. This draws more people into your herd. The more people you are able to wow, the larger your herd grows. In time, you will have a large herd. Millionaires have large herds, deca-millionaires have bigger herds and billionaires have the largest herds.

The key to realizing your dreams and success, therefore, is to wow those you serve. You wow others when what you do exceeds their expectations. When our expectations are exceeded, we remember it. And we tell others about it. So, if you want to make your dream a reality, if you want to be a success, you need to wow others. Creating a wow in what you do will virtually guarantee success. So go out and start wowing others. And watch your herd grow!

How to Ace Any Standardized Test

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Acing standardized tests comes easy to only a select number of individuals. Unfortunately, most perform at a subpar level and this holds them back from getting into their school of choice or getting licenses that will help them in their careers. But I figured out a process that will virtually guarantee that you will ace every standardized test you take in life. This process assumes that you will be using a topic-based study guide which includes practice exams. If you follow this process you will perform above your wildest expectations and leave your competition in the dust. I’ve successfully used this process over the years to obtain my CPA, CFP, Series 6, 7 and insurance licenses. In my last exam, the CFP exam, I used this finely tuned process to pass the CFP in one sitting. The pass rate on the CFP exam is less than 50% for those taking it the first time, so this process will ensure you do your absolute best the first time you take any standard exam. Here’s the process: [Read more…]

Focus is the Key to a Successful Life

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The subthalamic nucleus is a region in the brain that interrupts our ability to focus on tasks. It is called into action whenever something in our environment catches our attention. Its purpose is to prepare us for fight or flight by clearing out all current thinking so that we can focus on the external stimuli that interrupted our thinking. In the modern age of email notifications, text message notifications, Facebook notifications and phones ringing, the sub thalamic nucleus is perpetually at work, distracting us. As a result, we are constantly preparing for fight or flight. Thus, our focus is constantly shifting from one thing to another. And this is very bad. An overactive subthalamic nucleus means we are constantly distracted at work, decreasing our efficiency, productivity and costing us (if small business) or our employers (if employee) time and money. It’s no wonder so many individuals and companies are struggling financially.

So, what can we do? Daily meditation may be the solution. Like exercising a muscle, daily meditation increases your ability to focus and, through daily practice, when distractions occur, your brain is strong enough to shut down the subthalamic nucleus from pulling you in different directions. A study from Emory University found that 20 minutes a day of meditation is enough to override this region of the brain, allowing you to focus. Also, shutting off notifications limits external distractions from pulling you away from the tasks you are focused on. Lastly, taking a break from a task, every hour or so, helps restore your willpower reserve, enabling you to focus more on those tasks. So, start meditating, shut off notifications and take a short break every hour or so and you will increase your ability to focus, which will improve your efficiency and productivity.

How to Distance Yourself From Toxic Relationships

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One of the most important Rich Habits is growing relationships with other success-minded individuals. These relationships lift you up in life and open doors that are otherwise closed to you. One of the most common Poor Habits almost everyone has is having long-term relationships with individuals who turn out to be toxic, meaning they drag you down in life: they ask for money, they engage in negative gossip that hurts you or a close family member, they throw you under the bus and damage other relationships you have or they drag you into their problems.

It’s not easy to just turn off a long-term Toxic Relationship because they were very likely forged over many years. There’s just a lot of history there. Consequently, I’m constantly asked the same question, which is:

How do I distance myself from Toxic Relationships?

One common thread with Toxic Relationships is that these individuals eventually cross the line and when that happens there’s always a lull in the relationship following an event. Their M.O. or routine is to try to repair their relationship with you by offering an apology or by doing something nice for you. This lull represents your opportunity to pull back and distance yourself. Your reaction should be to not react when they attempt to repair the relationship. When they attempt to repair the relationship, ignore it, pull back, distance yourself. Then, the next step is to make a habit of limiting your exposure to these Toxic Relationships. Limit your contact with them as much as possible. This sends a message to them that the relationship is not going to continue as it did in the past. Eventually, the Toxic Relationship will weaken. They will shift their focus away from you and onto others who are more tolerable of their transgressions.

Remember, Rich Relationships are the currency of the wealthy. If you are on a path towards success, you need to build up your Rich Relationships and weaken your Toxic Relationships. Toxic Relationships will hamper you on your journey towards success. Avoid them like the plague.

Leaders See Through the Invisible

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One of the common traits of self-made millionaires is that they are leaders. 91% of the wealthy in my Rich Habits Study held leadership roles either as a small business owner or as a key employee working for a large company.

There are many studies on leadership. In these numerous studies, a common trait often cited among leaders is vision. Leaders have the ability to see things that are invisible to everyone else. They see solutions to problems others can not see. They see opportunities in situations where others only see pitfalls. They see a path towards success where others only see obstacles.

I have seen this trait at work while advising small business owners and senior executives in large organizations. What separates leaders from everyone else is their ability to see through the invisible. When you develop the ability to visualize solutions, opportunities and alternate routes towards success, you are able to pivot and pursue those solutions, opportunities and alternate paths towards success.

Acquiring this trait, however, takes practice. Vision is an acquired habit. And this habit emerges only by developing a positive mental outlook. When you have a positive mental outlook you open up your mind to possibilities. Positivity gives you a superman-type X-Ray vision. Those with a negative mental outlook, on the other hand, are only able to see problems, pitfalls and obstacles. Negativity makes you blind to possibilities. It causes a type of tunnel vision that shuts down your peripheral vision. There’s a lot of science to back this up. Dr. Barbara Frederickson, University of North Carolina, recently published the results of a study she conducted on this very topic. According to her findings, when you are able to adopt habits that shift your thinking from negative to positive, you expand your thinking. An abundance mindset takes hold and you are able to see solutions and opportunities that are all around you. You turn on your entire brain, which then goes to work helping you see solutions, opportunities and alternate paths to take that lead to success.

If you want to succeed you need to lead. Leadership requires a positive mental outlook and a positive mental outlook takes daily practice. You have to practice positivity every day. Gratitude is the gateway to positivity. Gratitude shifts your focus from a scarcity mindset to an abundance mindset. So, the starting point for those desiring to become leaders is to develop an abundance mindset. An abundance mindset enables you to see a garden of flowers. Those with a scarcity mindset see only the weeds. The key to becoming a leader is therefore to become a visionary and this requires a positive mental outlook. It’s a domino effect. Positivity creates an abundance mindset which allows you to see solutions, opportunities and helps you find the yellow brick road that leads to your City of Oz.