Rich Habits Word of the Day

Chirpy – Happy.  Tom’s chirpy attitude infected the entire office, making it a better workplace.

Rich Habits Fact of the Day

Psychologist Ed Diener, author of Happiness: Unlocking the Mysteries of Psychological Wealth, describes what psychologists call “subjective well-being” as a combination of life satisfaction and having more positive emotions than negative emotions.

Martin Seligman, one of the leading researchers in positive psychology and author of Authentic Happiness, describes happiness as having three parts: pleasure, engagement, and meaning. Pleasure is the “feel good” part of happiness. Engagement refers to living a “good life” of work, family, friends, and hobbies. Meaning refers to using our strengths to contribute to a larger purpose. Seligman says that all three are important, but that of the three, engagement and meaning make the most difference to living a happy life.

Rich Habits Lesson of the Day

Once we move beyond the need for food and shelter, we are all after one thing in life – happiness. Happiness, unfortunately, is elusive. Most people, unfortunately, are unhappy. You have the power within yourself to change that. If we can make just one person happy for just one day by saying something nice or by doing something nice, we elevate ourselves in the eyes of others. We turn ourselves into people magnets. People will flock to anyone who will make them happy, even if only temporarily. Become a people magnet by making it a daily habit to make just one person happy for one

Rich Habits Word of the Day

Blarney – Exaggeration, overpraise.  Tom considered his argument blarney but, somehow, it worked and he got what he wanted.

Rich Habits Fact of the Day

Kissing the Blarney Stone is said to give a person eloquent speech. How this Irish tradition came about is told in a variety of tales that have been passed down through the ages. The Blarney Stone has a legendary history that combines Celtic mythology with facts from the Middle Ages. It is a popular destination, attracting over 300,000 visitors a year come to receive the gift of flattering and persuasive speech.

Blarney Castle is in a small town of Blarney about five miles northwest of Cork, Ireland’s second largest city. The castle, that still stands today, was built in 1446 and is the third one on this site. The first was made of wood in the 10th century; the second was out of stone in 1210. Cormac McCarthy, the King of Munster, sent 4,000 men to help the Scottish defeat the English in 1314 at the Battle of Bannockburn. In appreciation for his help, he was given part of the “Stone of Scone,” also known as the “Stone of Destiny,” as a gift by Robert the Bruce. It was brought back to the McCarthy stronghold, Blarney Castle.

Rich Habits Lesson of the Day

The power of persuasion is not a gift but a skill. Persuasion is all about effective negotiation. There are really only two steps. The first step in persuading anyone to do anything is to understand their wants and needs. The next step is to trigger a positive or negative emotion about their wants and needs. “If you hire me as your salesman I will double your sales, which will double your income and allow you to buy a house by the beach for your family.”  Once the emotion is triggered, the subconscious will go to work on the person you are trying to persuade and work its magic of reprogramming that person’s thinking and behavior. Triggering an emotion is a critical component because the subconscious only receives emotionalized thoughts. Emotion is the key that opens the door between the conscious and subconscious mind.

Rich Habits Word of the Day

Transcend – Exceed.  Tom always tried to transcend other’s expectations at the end rather then at the beginning, by under-promising.

Rich Habits Fact of the Day

Wealthy, successful individuals make it a Rich Habit to exceed expectations. Expectations are a tricky thing. Unsuccessful people have a  tendency to want to “wow” others, so they make promises out of the gate that exceed another person’s expectations. They “wow” them at the beginning. That’s backwards. It sets you up to fail by not meeting expectations.

Successful people make it a habit of changing the other person’s perception of reality, out of the gate, reducing their expectations at the beginning of the promise stage. By reducing expectations this way, they set themselves up for success, making it easier to exceed expectations by over delivering. This allows them to “wow” them at the end.

Rich Habits Word of the Day

Cowed – Afraid, fearful.    Tom would not be cowed by his fear of rejection and decided to take the baby step of starting his new book.

Rich Habits Fact of the Day

Fear rears its ugly head in  the face of change. Even if that change is good, fear can hold you back. Do not confuse fear with intuition. Fear is a Poverty Emotion. Giving into fear is a Poverty Habit. Wealthy, successful individuals have made it a Rich Habit not to give into fear. Fear is one of those limiting beliefs that hold many of us back. The key to overcoming fear is to make a habit of overcoming fear by embracing small change in your life through baby steps and leaning in, just a little. Small baby steps help you to gain momentum. Each time you conquer your little fears, you gain confidence to face the larger ones. Once you overcome your larger fears, the experience will give you confidence to embrace change and not fear it.

Rich Habits Word of the Day

Gaffe – Mistake, blunder.  Tom’s pursuit of his dream resulted in many gaffes and, through the process of elimination, found those things that did work.

Rich Habits Fact of the Day

Rich Habits Lesson of the Day

Success is built on a mountain of mistakes. The greater the number of your mistakes the higher your mountain of success. This is why it is important to push yourself out of your comfort zone by pursuing goals and dreams. The pursuit of goals and dreams forces you to reach in life. This reaching into new territory elevates your learning in two ways: learning created by self-education and learning created by making mistakes. Both increase your knowledge and skill level. Learning what not to do is very often the best education because mistakes cost you time and money. As a result, they aren’t easily forgotten. They stick out like missing teeth in a smile. Mistakes force you to make course corrections; to adjust your thinking and behavior.

Rich Habits Word of the Day

Acumen – Knowledge, wisdom.   Tom’s habit of seeking feedback increased his acumen.

Rich Habits Fact of the Day

Bill Clerico, CEO of payment collection service WePay, found he gets the most information through voice-to-voice conversations with his customers. “Last month the CEO, COO, marketing director, marketing coordinator, PR manager, three sales managers, three customer support reps and even some engineers got on the phone with a variety of customers — both pleased and displeased — and simply asked for feedback on the product, support and how they perceived WePay as a company,” he says. “The information was more valuable than any digital survey we’ve ever completed.”

Rich Habits Lesson of the Day

Everything you do, that is related to your job or career, can improve dramatically if you simply seek feedback. Getting feedback from your colleagues, supervisors, staff, clients, customers and business partners will help you improve. Continuous self-improvement is one of the hallmarks of successful, wealthy individuals. If you typically avoid feedback you are operating out of fear. Fear is a Poverty Emotion that holds you back in life from being successful and wealthy. Giving into your fear of criticism is a Poverty Habit. Seeking Feedback is a Rich Habit.

Rich Habits Word of the Day

Fortuity – Risk, uncertainty.   Tom understood the fortuity of investing and limited his investment to 25% of his annual savings.

Rich Habits Fact of the Day

I loved the book The Frugal Millionaires: 70 millionaires anonymously share their ideas about money to help each other and you and thought I’d share a bit of it with you. The author starts the book by listing six simple concepts that most of the 70 frugal millionaires in the book have in common. The list:

1. Delayed gratification is easy for them.
2. Resourcefulness in getting what they want is a key to their success.
3. They make living way below their means painless.
4. They don’t like wasting anything (especially money.)
5. Their sense of “self-entitlement” is highly minimized.
6. Spending is OK with them depending on what they are buying.

Rich Habits Lesson of the Day

There are three ways to become financially successful in life:

1. Live Below Your Means (80:20 Rule) or
2. Expand Your Means or
3. Both 1 & 2

Believe it or not, most of the wealthy people in my five year study did not make a lot of money. But they did save a lot of money. They were fortunate. They learned the 80:20 Rule from their parents early in life and it became a habit. The 80:20 Rule requires that you make a habit of saving 20% of your net pay and learning to live off the remaining 80%. You pay yourself first by automatically setting aside 20% of your net pay before you pay one bill. This forces you to live off of the 80% that’s left. Here are some budgeting, spending and savings guidelines to help you accumulate wealth:

1. Don’t spend more than 25% of your monthly net pay on housing. It doesn’t matter if you own or rent. Stick to this 25% rule.
2. Don’t spend more than 15% of your net monthly pay on food.
3. Don’t spend more than 10% of your monthly net pay on entertainment. This includes bars, movies, restaurants etc.
4. Don’t spend more than 5% of your monthly net pay on auto loans and never lease. Leasing is something I call a Poverty Habit. Buy your cars and take good care of them.
5. Don’t spend more than 5% of your net annual pay on vacations.
6. Never gamble. If you’re going to gamble on the lottery, it comes out of your entertainment budget.
7. Stay away from accumulating credit card debt. If you are doing this it means you are living beyond your means and you need to cut back on something.
8. Always invest your savings prudently. Never gamble your savings on get rich quick schemes. There’s no such thing. The power of compounding can grow your savings and make you wealthy. Saving just $250 a month over 40 years will produce $500,362 at a 5% return. Savings and investment are two completely different things. You should never lose money on your savings. Investments represent a portion of your savings you are putting at risk. When you invest you accept the risk that you could lose some or all of that investment.
9. Max out your contributions to the company retirement plan. If the company matches your contributions, great. That’s free money. Always take free money when you can get it.
10. Know what you spend every month. Create a monthly budget and track what you spend. I have a budget template I’d be happy to share with you readers.

Rich Habits Word of the Day

Trenchant – Vigorous, intense.  Tom engaged in trenchant communications with all of his valuable relationships.

Rich Habits Fact of the Day

Warren Buffett once took a course offered by the Dale Carnegie Institute because he perceived himself to be a poor communicator. Since then, his ability to communicate with individuals at all levels of the investment world has significantly contributed to his reputation as the greatest financial genius ever.

Rich Habits Lesson of the Day

Thanks to all of the recent advances in technology, communication has become more efficient. Today’s phones, emails and social media have displaced the art of conversation and now make it possible to communicate thoughts and ideas with a few keystrokes. Carrying on a fifteen minute conversation has become passé. Now you can say what you want to say and move on. While technology has increased our ability to communicate efficiently, the fallout is the loss of effective communication that is only possible with one on one dialogue. If you want to grow the roots to each one of your relationship trees you need to spend more time communicating with them. Here are some strategies:

• Call, don’t text. Have a ten minute phone conversation with your relationships.
• Send personal letters. Instead of an email, send them a personal note.
• Meet your relationships for breakfast, lunch or dinner. Instead of getting together with your friends, family or anyone else who matters to you, on Facebook, arrange a one on one meeting with them.
• Call your relationships on their birthdays or when they experience a “life event” such as a birth, death, promotion, new job etc.

Rich Habits Word of the Day

Modus Vivendi – Process.  Tom’s modus vivendi was to accomplish five things every day that move him closer to realizing his major goals in life.

Rich Habits Fact of the Day

One of Thomas Edison’s major goals in life was to create a system that distributed electricity in major cities.  Edison’s first major power station for the delivery of electricity to diverse customers was in Lower Manhattan on Pearl Street. On Sept. 4, 1882, Edison threw the switch that activated the Pearl Street system. Juice flowed down the wires from six sets of steam-generators.

Rich Habits Lesson of the Day

95% in America eke out a living. They live paycheck to paycheck. Most have very little savings. If you want to accumulate wealth and become financially successful in life, it is not impossible to do. Failure, like success is just a process. The process you are following is revealed by your daily habits. If you have bad daily habits you will fail in life. If you have good daily habits you will succeed. To achieve financial success, you simply need to eliminate one or two old bad daily habits and add one or two new good daily habits. This is how the rich get rich.

Rich Habits Word of the Day

Mastermind – Organized group, team.  Tom’s mastermind group was instrumental in his success.

Rich Habits Fact of the Day

Mastermind groups have been around since the beginning of time:  the founding fathers of the United States were essentially a mastermind group; likewise Jesus and his disciples. The Greek king, Alexander the Great (356-323 BC) had a group of advisors as have most world leaders in history; these groups of advisors can be considered mastermind groups.

You may have heard of Benjamin Franklin’s Junto. (Junto is a Spanish word which means “council.”)  Ben Franklin, an individual committed to self-improvement, in 1727 founded a discussion group called the Junto that evolved into the American Philosophical Association and helped establish the first U.S. lending library as well as an academy that evolved into the University of Pennsylvania. The Junto was essentially a mastermind group.

Andrew Carnegie, one of the most famous leaders of industry of the late 19th and early 20th centuries, and a Scottish immigrant who became the richest man in the world, believed participating in a mastermind group to be an essential ingredient for success.

Rich Habits Lesson of the Day

One of the keys to success for companies like Apple, Goldman Sachs and Ford is the ability to get thousands to work together for one common chief aim, purpose or goal. Napolean Hill likes to call organized effort, the Master Mind. In order for this success principle to work you need at least two individuals who are obsessively dedicated to the same chief aim, purpose or goal. “One for all and all for one” makes organizations take off. Ideally, the more individuals you are able to include in your Master Mind, the better. More means more money, success and wealth. All must share five things: a common Chief Aim, Focus, Persistence, Passion and Patience.