March 9, 2018, my first child had arrived! My wife and I are very proud parents of our new baby boy. Prior to the arrival of our baby, I spent 5-6 days a week at the gym, worked 60-80 hours a week including both my career as an engineer and working on my business and investments, went to dinner at least once a week with my wife, and hung out with friends frequently. Of course, things are going to change when a new baby joins your family, but I want to make sure the important things do not change.
I have created a list of important activities I want to maintain as shown here:
There will be sacrifices I need to make, but do not want to sacrifice these four items because they are important to me. I still have career aspirations and life goals I want to achieve. It would be a poor decision to give up on my goals due to the arrival of a new baby. My life is changing and will change further because of my new son. To still reach my goals, I may just need to put a little bit more effort into the important things to stay on track. Remember, excuses are the kryptonite of success.
Since I can remember, I have always been extra picky about what I buy. At one point when I was visiting my family in Canada, I went to a local convenient store with my Uncle and purchased a pack of gum. As I opened my wallet to pay the cashier my Uncle said, “you are letting the cob webs out”. He was referring to the fact I rarely open my wallet. I am frugal in my spending because I take responsibility for my financial situation. I would be the last person not pay a bill because I spent too much money on other things. I take pride in paying off debt and growing my funds. With this being said, there is a difference between financial responsibility and being simply cheap.
Someone who goes about saving money in unnecessary ways may be deemed simply cheap. If you do not purchase things you or you family need, then I would say that is cheap. If you are purchasing products of less quality, which do not meet your requirements, then you may be cheap. It is okay to be frugal, but it should not be at the cost of living your life the way you want to.
Someone who monitors their spend and does purchase necessary items should be considered financially responsible. This person is frugal because they are aware of their financial situation and what they actually need. I would not say you are cheap because you are conscious of your bills and need to save to pay them. There are products like alcohol, tobacco, and jewelry that I do not see as necessities. Luxury cars and fancy vacations are also not necessities. If you have the money, then it is fine! If you do not have the money, then it is not fine! I do not think there is anything complicated about that.
I would never let someone else’s judgment on me sway my decisions on what to buy and what not to buy. I purchase the clothes and food based on what I can afford. I would not purchase something I cannot afford to impress others. Too many people do this and end up in a poor financial situation. At that point, they are not impressing anyone.
At some point in life someone invented the drinking straw, which is used everywhere. Marvin Stone invented the ‘modern drinking straw’ in 1842. Prior to the drinking straw it would have been impossible to drink out of a fast food style cup with a plastic lid. It would also be difficult to drink those fancy island drinks like long island ice tea, Pina colada, and strawberry daiquiris. There is no doubt in my mind that the drinking straw does serve a purpose in our society.
In searching around for different straws, I found this: Tiffany & Co. is selling a $350 rose vermeil crazy straw. Tiffany’s is looking to make everyday objects extraordinary. I am not sure what type of person would spend $350 on a drinking straw, but can assure you I am not one of those people. In your search for civil accomplishment, you will want to avoid ridiculous purchases like this one. This may sound obvious, but it is similar to someone spending a few $1,000 on a gold necklace. The funny thing is, the $350 Tiffany’s drinking straw has more function than a gold necklace.
There are a few items I purchased that did not make complete sense and if I went back, I would probably not have purchased them. For example, I purchased Timberland Boots in high school for $150+. I only wore these two or three times because they did not match any outfit I had. They were a blue suede color and now looking back on it, not a very good investment. Are there any items you purchased that ended up being worthless?
Imagine… everyone around you has advanced to levels above you in their careers, social status, and personal lives. You may feel jealous, discouraged, and maybe even deficient. In order for you just to catch up, you would need to complete your degree, work for years in an entry level role, and break poor habits you have today. Surprisingly, many would rather not put in the effort to change their lives.
“I am too old to go back to school…and I do not have the time”
“I do not have the money to go back to school…”
“It is too late for me to change my career now and I do not want to start allover again”
There are countless excuses out there for why people do not pursue a better life for themselves and their families. This is often easier said than done, but is important. Do not delay any further from pursuing your goals. If you want a new career and it requires additional education (i.e., college degree, training), then research information on the program, create a plan, and execute. This needs to happen quickly before you can talk yourself out of it.
At one point of my life, I knew I needed a graduate degree to keep moving up in my career in the corporate world. I researched various programs to see, which one fit me best. Since I was working full time, I knew I needed a program friendly to professionals. I also knew my company would pay up to $10,000 per year, so I wanted a program reasonably priced. Each of us will have different situations and we need to be cognizant of this.
Once I identified the program I felt was best, I drew up a plan, which included timing for each step required. I immediately purchased a GRE (Graduate Record Examination) study guide to help me with studying for the GRE. I booked an exam date for the GRE, sent my undergraduate transcripts to the University I was applying to, and asked for three letters of recommendation from an old professor and two colleagues. After getting the application process completed and being accepted, I selected my first courses. After two years, I had my graduate degree. If I thought I was too old or it was too late, I would not have finished this today and would still be thinking about it.
Work towards your goals by acting today without second guessing yourself. If you are looking to improve your situation, then you are on the right track. Do not be the people who generate unlimited excuses. Be the person who generates results by taking action.
Imagine there are two tennis players analogous to one another in terms of talents, skills, and abilities. How can one tennis player increase their chance of winning the match knowing their talents, skills, and abilities are comparable? Looking past all other physical factors (i.e., weather, location, equipment), a tennis player with a superior mindset will have a better chance of overtaking the match and winning. A negative attitude can be detrimental to a tennis player’s game and once it starts, it can be very difficult to reverse. If you want to win, you need to have the mindset of a champion. This mindset does not come to most overnight and does require time to build.
Confidence is a major ingredient needed to start developing the mindset of a champion. If you are a tennis player, you need to win a few matches to start building your confidence. In other words, positive experiences are a great starting point to begin building confidence.
Ownership is another ingredient for developing the mindset of a champion. Acting like a victim when you do not get what you want is simply lack of ownership. By taking ownership of your results, you are going to work harder to do better and achieve excellence.
Optimism is also key in developing the mindset of a champion. This should not be confused with creating false hopes. Do not stress and create a negative environment because automatically you are creating the conditions to fail. Keep your head up and believe in yourself and your teammates. This will further solidify a health mindset and help you reach success faster.
So going back to the question, if you have two individuals with similar talents, skills, and abilities, how does one set themselves apart from the other? Confidence, ownership, and optimism are going to be key ingredients in developing the mindset you want. As mentioned, these are not characteristics mastered overnight. As badly as we may want to be confident, it does take time to build confidence. The more positive experiences you have, the more confident you should be. It is also easier to take ownership of successes than failures, but we need to take ownership of both. Optimism is also a feature that may not come natural to some of us and we may need to keep reminding ourselves to be optimistic.
These are just a few things I think about when I think about the mindset of a champion.
I started blogging 02/11/18 on http://www.civilaccomplishment.com and have blogged about many topics. Some of these topics include Mortgage Removal, Working from home, 2018 Tax Season, Eating out versus eating in, and many others. I am still working to fine tune the mission of civil accomplishment.com, but feel I am getting closer each day. There are far too many with financial issues and far too few with financial stability. How does this happen? Why is it so difficult to become financially stable? It appears there are more forces working against you than with you.
It can be super stressful to be low on funds and not know if you can keep your electric on. It can also be frustrating when you know you are putting in many hours at your job and only scraping by. As I discuss in Mortgage discouragement, people are likely to become discouraged and not end up successfully paying down their mortgages in a timely fashion. Once a person becomes discouraged, it can be very difficult to get them motivated again to push forward and succeed.
Since it has only been a month since I first started http://www.civilaccomplishment.com, I do not expect an overwhelming number of visitors. I will say, we are not doing too bad considering the limited advertising. I ask you to share this blog out with your friends, so we can grow our discussions on the topic of financial stability. This is important to me and should be important to you. If we all grow together financially, our economy can do better and will.
Similarly, setting goals in your personal life, a business plan is crucial to running a successful business. If you own a business or are starting a business, you will want to have a document titled, business plan. In my experience, you will want to review this plan at least once per quarter. As guidance to help you create a business plan if you do not have one, I laid out the crucial parts and briefly describe each one.
Defines business purpose. For example, a financial business can say to develop and implement financial solutions to assist small businesses leverage cash in the marketplace.
I typically divide out the business goals into long term (>5 years) and short term (<5 years). It is most effective to list a maximum of 3 goals per long term and 3 goals per short term. This will help you stay focused on the large priority goals versus a bunch of smaller goals with less impact on your overall business.
This portion is used to describe the beginning of your business and how it was created. The story can be used further down the road when selling your products to your customers. A good story about your company can help your customers better relate to your business and potentially persuade to purchase from you instead of your competitors.
Any additional information such as your business type, address, phone numbers, e-mails, and so on can be added into this section.
Personnel and organization
In this section, you would lay out the hierarchy of your company. You may even want to add specific areas of expertise for different departments and people.
This section lists the market you are selling to (i.e., food & agriculture industry, automotive industry).
Product / services
You would list out the products and services you are selling. If you sell 1,000s of items, then you may want to just classify the items into different categories.
This section would contain sales, expenses, profits, and any other financial information you find pertinent. You can list financials on how much you sell to the largest customers or list financials on how much you buy from the largest vendors.
Lessons & key takeaways
I am not sure if a lot of people put this in their business plans, but I find it very important. Since I update my business plan yearly, I like to list the lessons and key takeaways I’ve learned from the previous years. It has been quite helpful.
2018 plan to follow
This is another one that I am not sure if other people use in their business plans, but I also find this very helpful. This list is usually produced from the information collected from lessons and key takeaways. These are the things you will want to execute to make sure your company is successful.
The last thing I put into my business plan, which may or may not belong is big projects. These will be the projects I am pushing to complete in the upcoming year. I list out the project name, objective, and budget. This may be optional for your business plan, but I thought I’d mention it anyways.
If you look up the definition of success, you may find a definition like this – accomplishment of a purpose. We also know when we talk about something personal, we are talking about one’s private life. A lot of times when people think about success, they often think about being a millionaire, living in a mansion, having a supermodel wife, and maybe even vacationing all the time. Even though these things sound fantastic, they are not always realistic. When we think about personal success, we should think about goals pertaining to us as an individual. Not all people associate success with being a millionaire or living in a mansion. In my opinion, there is more to success than materialistic things.
When you set your personal goals, you should be thinking about the things truly important to you. These can sprout family values, personal experiences, role models, or maybe somewhere else. Think about the steps you will need to take to achieve each goal. Prior to purchasing a home, I knew I needed to identify a home I wanted to purchase, apply for a mortgage, and be approved for a mortgage. I thought about the process of purchasing a home early on to make sure I was prepared and had everything I needed to succeed. This falls under my key strategies, gather information/data to better prepare yourself for the future. You can read more about this in my blog titled, C.A. strategy exploration.
Personal success is defined by the individual and not everyone will have the same set of goals. The process of setting goals and thinking about how the goals are going to be achieved may be similar. Another example I can share involves my career path. In high school, I was stocking shelves at a local grocery store making roughly $6 per hour. I knew this was not the job for me for my entire life and I wanted to make much-more money. In order to get a better job and start my professional career, I knew I needed to graduate college. To better prepare for a professional career I knew I needed to perform well in high school, get accepted to a college, and finish college with decent grades. This would be a long term goal (>5 years).
Try thinking about some of your goals (both long term and short term). Work through the process and the steps required for you to be successful. Keeping a journal as mentioned in my blog titled, Keeping a journal for success may be beneficial. As mentioned a journal will help you keep yourself accountable for your goals. It is important to create realistic goals, but do not be afraid to stretch them a little bit to challenge yourself.
Please share your personal success stories. Both success and failure stories are welcomed.
When you look at your mortgage and see the remaining balance, you may feel discouraged. Some will say, I have been paying my mortgage payment for years and still do not see it decreasing by much at all. Even if you are adding more money to the principal, in the beginning it may appear the balance is decreasing very slowly. This is when most people will reduce their payment to the minimum each month and by doing this, you can be certain the remaining balance will move like a snail throughout the rest of mortgage’s days.
My previous blog titled Mortgage Removal briefly talks about paying off your mortgage as quickly as you can. I discuss how financial advisors may tell you to invest your money in other investments instead of putting extra money towards your mortgage. I strongly believe in most cases, putting your extra money towards your mortgage is a better investment. Although this is an interesting topic, I want to really dig into the discouragement of a mortgage balance not moving fast enough.
Since I purchased my home I have always been consistent in putting the same amount of extra money towards my principal each month. I am adamant about not reducing the extra principal payment throughout the year. I only change this amount in January when a new year starts. At that point, in the new year I increase the amount of money I put towards my principal. Just as an example, if I am paying $250 extra on my principal in 2017, I may increase my extra principal payment to $350 starting January of 2018. In 2019, I may add another $100 to my total principal amount making it $450. I would never decrease my extra principal payment unless unforeseen circumstances forced me to do this.
The important thing is to remain consistent and not get discouraged. In the beginning, the principal will reduce at its’ slowest rate. As you progress through the life of the mortgage, I assure you will see faster decreases. It is important you keep going and remind yourself that it is important you continue paying extra towards your principal. This will help you build equity in your home, which I would advise you not to use. It is just a nice to have in my opinion.
Let me know your thoughts on this.
Not all jobs are work from home type of jobs. For example, if you are a maintenance mechanic, then you will most likely need to be on site to do your job. If you are a project manager, you may have flexibility on where you can work from. There are both advantages and disadvantages to working from home.
Starting with the advantages, you are saving yourself time and money when you do not have to drive. The 15 minutes in the morning and 15 minutes in the afternoon could be an extra 30 minutes you are working. You may also be able to save a few dollars on gas and tolls by working from home. When you are working from home there is no one for you to chit chat with to consume extra time that way. In my opinion, your productivity increase when you do work from home as long as you are discipline and motivated.
On the disadvantage side, you are not getting the same face time you would when you are in the office. It is easier to build relationships face to face than on the phone or via email. You may also miss out on some common knowledge being shared in the office. In my field, a disadvantage is not being able to run into the lab to use equipment to run a quick test to confirm what a supplier is telling me.
I do believe working from home is beneficial, but should be mixed in with working in the office. Working from home one day a week seems reasonable to me. In my situation, I drive 30 miles each way. With traffic this ends up costing me roughly 90 minutes per day of travel time. I am spending $7.50 per day on gas because my Jeep gets 20 mpg and gas is roughly priced around $2.50 per gallon. The toll each way is $0.75, so in total I am spending $9 each day I go into the office. If I work from home once a day for the entire year, I am saving $468 and 78 hours. In this example the money piece is significant, but more importantly I could be using 78 hours more effectively. This is nearly two extra weeks of working where I can get more done and possibly set myself apart from the rest of the pack.