Living with Purpose

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To live a life with purpose means to live with intent, direction and destiny.

“Living with purpose” means doing what truly matters to you in strict alignment with your values, beliefs and goals. Anthony L. Burrow, associate professor of Human Development at Cornell University says, “Purpose is a forward-looking directionality, an intention to do something in the world.”

When you’re in alignment with your purpose, life feels right. Things seem easy and right, and everything just seem work. You feel alive, passionate, and lit up from within. You aren’t concerned with how to get where you’re going; you’re sure of yourself, even if you’re uncertain at the same time.

The unknown is scary. We feel safe and comfortable with how things have always been. Uncertainty and fear are part of us and will always be there, but they can’t rule you unless you let them; so take action toward your purpose and goals anyway.

A purposeful and happy life consists of moving towards goals that synchronize with your values

To live with purpose, you must awake every morning with gratitude and focus intently on your overall goals, dreams and desires. It’s the ultimate key to success and personal achievement.

Do you have amazing, audacious goals and dreams for your life?

Finding purpose is about being be authentic. It is about finding what motivates you. And pushing and planning to be successful in that endeavor. And then follow that.

Maybe you live with the sole purpose of finding your one true passion, or to help others to learn and grow, or to seek out new adventures and travel the world. Whatever you’re looking for in life or what you’re passionate about is usually your purpose.

“The person who’s willing to give the most wins. The person who’s the most extreme wins. The person who refuses to lose wins.” Andre Norman

Determine the three to five things you live by now, for example:

  • I am a NYTimes best selling author,
  • I am a civic and community leader
  • I became a billionaire, and
  • I traveled and experienced the world.

Always remember, important keys to success and personal achievement are a definite of purpose and a burning desire.

Additionally, confidence and belief in yourself are key. Consciously decide that you know what’s best for you. Put your hand on your heart and tell yourself, “I trust my ability to make the best decisions for me.” Do this for every area of life that’s important to you.

It means that you become the golden eagle that soars and it means that you’re allowed to fly and spread your wings. Being a golden eagle means soaring and not settling.

Bottomline, “There is nothing that can’t be done if God is with you.”

A purposeful and happy life consist of moving towards goals that align with your values, beliefs and purpose.

“Every person has a longing to be significant; to make a contribution; to be a part of something noble and purposeful.” ~ John Maxwell

References:

  1. https://chopra.com/articles/first-steps-to-creating-a-life-of-purposehttps://chopra.com/articles/first-steps-to-creating-a-life-of-purpose
  2. https://www.entrepreneur.com/article/336600
  3. https://www.lifeadvancer.com/purpose-driven-life/
  4. https://crisp.co/podcast/episode-98-andre-norman/
  5. https://www.desire-and-belief.com/napoleon-hills-“six-ways-to-turn-desires-into-gold”/

Seven Common Characteristics of the Wealthy

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Accumulating wealth has little to do with an individual’s level of income.

Most of the truly wealthy in America don’t live in Beverly Hills or on New York City’s Park Avenue, instead, they live next door to you and the typical American.

In the bestselling book, The Millionaire Next Door, the authors, Dr. Thomas Stanley and Dr. William Danko, identified seven common characteristics that show up repeatedly among those who have accumulated wealth over the long-term.

If you want to build wealth and achieve financial freedom, it’s essential to study and embrace these seven common characteristics of the wealthy:

Characteristic #1: They live well below their means.

Frugality is the foundation of wealth building. Habits of frugality that are void of luxury-car purchases may not impress the neighbors, but they’re important traits to embrace to build wealth. The goal is financial independence and financial freedom, not the appearance of wealth.

Characteristic #2: They allocate their time, energy, and money efficiently, in ways conducive to building wealth.

The wealthy know how to budget their money, and they know how to budget their time. They anticipate and plan their incomes and expenses. They spend significant time researching their investments. They spend time examining ways to increase their unrealized income; i.e., tax-advantaged investment accounts.

Characteristic #3: They believe that financial independence is more important than displaying high social status.

It’s easier to appear wealthy than it is to be wealthy.

The wealthy understand that conspicuous consumption and high levels of “domestic overhead” carry a highly negative correlation with one’s true net worth. The wealthy aren’t interested in status vehicles or other showy products. After all, it is much easier to appear wealthy than it is to be wealthy.

Characteristic #4: Their parents did not provide economic outpatient care.

Statistics demonstrate that the more financial assistance an adult child of affluent parents receives, the less likely it is that that adult child will become wealthy.

Generally speaking, the more dollars adult children receive, the fewer they will accumulate.

These gifts — whether for down payments or for a grandchild’s private-school education − will, more often than not, simply generate higher levels of consumption. After all, it’s much easier to spend someone else’s money than your own.

Characteristic #5: Their adult children are economically self-sufficient.

Cash gifts from parents to their adult children result in dual outcomes:   They increase the children’s dependence upon the parents for continuing financial support, and they deplete the parents’ financial position.

The authors of Millionaire Next Door found that cash gifts from affluent parents to their adult children serve dual negative outcomes:

  • They increase the children’s dependence upon the parents for continuing financial support, and
  • They continuously deplete the parents’ financial position.

Characteristic #6: They are proficient in targeting market opportunities.

Finding specific niches and exploiting them is often the key to generating an above-average income. In a nation geared toward turbocharged levels of consumption, market opportunities are created constantly for those willing to supply new products or ideas.

Characteristic #7: They chose the right occupation.

The successful man or woman is a person who likes their work and who can’t wait to get up in the morning to get down to the workplace.

Wealth is generated through talent, desire, and discipline. There are four times as many millionaire entrepreneurs as there are millionaire employees.

There are too many people [employees] today working at jobs that they don’t like.

The successful man or woman is a person who works at a job, who likes their work and who can’t wait to get up in the morning to get down to the workplace. They can’t wait to rise up from bed and get down to their workplace and get the job underway.

Each “characteristic” played an integral part in the means by which these people achieved their enviable financial positions and became The Millionaire Next Door”.

References:

  1. https://themillionairenextdoor.com/publications/the-millionaire-next-door/
  2. https://themillionairenextdoor.com/2011/08/factor-7-a-key-characteristic-of-the-millionaire-next-door/
  3. https://www.mdmproofing.com/iym/7factors.php

Thought of the Day

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“You are never too old to set another goal, or to dream a new dream.” ~ C.S. Lewis

The legendary Alexander the Great, king of the ancient Greek kingdom of Macedonia, lived only to the young age of 32, but he built a great empire. During his 13 year reign, he conquered the eastern Mediterranean, Egypt, the Middle East, and parts of Asia in a remarkably short period of time.

You don’t need to match Alexander the Great’s accomplishments, but think intently about what you want out of life. And, once you do, focus on your burning desire in life and chase it with all your energy.

We never know when our journey will come to an end.

U.S. Housing Market

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Updated: July 22, 2022

Home sellers are contending with apprehensive buyers amid rising mortgage rates and the possibility of an oncoming recession. RedFin

Single family home sales in June showed the first signs of leveling off after steady monthly increases for more than a year, according to the Jacksonville Daily Record. Although, sellers still were receiving slightly above 100% of asking price in June in certain housing markets, the general trend is mixed nationwide.

Price drops have become a common feature of the cooling housing market, particularly in places that were popular with homebuyers earlier in the pandemic, writes Dana Anderson, a data journalist at Redfin. Nearly two-thirds (61.5%) of homes for sale in Boise, ID, had a price drop in June, the highest share of the 97 metros in RedFin’s analysis. Next came Denver (55.1%) and Salt Lake City (51.6%), each metros where more than half of for-sale homes had a price drop. 

Home prices rise in June

In June 2022, home prices were up 11.2% compared to last year, selling for a median price of $428,379, according to Redfin.

On average, the number of homes sold was down 17.4% year over year and there were 609,147 homes sold in June this year, down 737,598 homes sold in June last year. The national average 30 year fixed rate mortgage rate is at 5.5% and is up 2.5 points year over year.

While also in June 2022, the number of homes for sale was 1,647,846, up 1.6% year over year.

The number of newly listed homes was 782,083 and down 4.4% year over year. The median days on the market was 18 days, up from 3 year over year. The average months of supply is 18 months, up from 3 year over year.

Additionally, 55.5% of homes sold lower list price, down 0.86 points year over year. There were only 17.9% of homes that had price drops, up from 9.0% of homes in June last year. There was a 102.3% sale-to-list price, down 0.24 points year over year.

Moreover, inflation and higher mortgage rates have slowed sales and priced out of the housing market many potential home buyers. As a result, the inventory of homes are beginning to pile up on the market and prices are slowly falling nationwide.

Takeaway…the once red hot U.S. housing market is showing signs of cooling and housing prices are contracting. Instead of over eager buyers and multiple offers on listed homes for sale, buyers are canceling sales contracts in increasing numbers and walking away from earnest money. And, what was unthinkable just a year ago, home sellers and builders are cutting home prices to entice potential home buyers and close sales.

For sellers, there is still money to be made in the housing market, but asking prices need to be very attractive to home buyers.

References:

  1. https://www.redfin.com/us-housing-market
  2. Dana Anderson, More than 60% of Boise Home Sellers Dropped Their Asking Price in June Amid Cooling Market, Redfin.com, July 14, 2022. https://www.redfin.com/news/price-drops-cooling-market-june-2022/
  3. Dan MacDonald, Northeast Florida home prices dip after months of increases, Jacksonville Daily Record, July 22, 2022, pg. 4. https://www.jaxdailyrecord.com/article/northeast-florida-home-prices-dip-after-months-of-increases

Mary McLeod Bethune: The First Lady of the Struggle

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“Believe in yourself, learn, and never stop wanting to build a better world.” ~ Dr. Mary McLeod Bethune.

Dr. Mary McLeod Bethune was an educator, philanthropist, humanitarian, and civil rights activist who founded the National Council of Negro Women and served in several capacities during the Franklin D. Roosevelt administration, including head of the Division of Negro Affairs of the National Youth Administration and advisor on selecting officer candidates for the Women’s Army Corps.

Tireless, talented and committed to service, Dr. Bethune founded Bethune Cookman College and served has its president. While leading the school, Dr. Bethune also held leadership positions in several prominent organizations.

Because of her dedication to improving the conditions of African Americans, she was called “The First Lady of the Struggle.”

A statue of the Dr. Mary McLeod Bethune was unveiled in the National Statuary Hall at the U.S. Capitol, making Bethune the first Black American to have a state statue in the hall’s collection.

“I plunged into the job of creating something from nothing…. Though I hadn’t a penny left, I considered cash money as the smallest part of my resources. I had faith in a living God, faith in myself, and a desire to serve.” ~ Dr. Mary McLeod Bethune

References:

  1. https://www.internetpillar.com/mary-mcleod-bethune-quotes/
  2. https://www.blackenterprise.com/black-educator-mary-mcleod-bethune-honored-with-state-statue-at-u-s-capitol/

Price to Earnings (P/E) Ratio

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Price is what you pay. Value is what you get.

The price-to-earnings ratio, or P/E ratio, helps investors compare the price of a company’s stock to the earnings the company generates. The P/E ratio helps investors determine whether a stock is overvalued or undervalued.

By comparing the P/E ratios companies in the same industry, investors can determine which companies are relatively under or over valued in comparison to their industrial peers.

The P/E ratio is derived by dividing the market price of a stock by the stock’s earnings.

The market price of a stock tells you how much people are willing to pay to own the shares, but the P/E ratio tells you whether the price accurately reflects the company’s earnings potential, or it’s value over time.

If the P/E ratio is much higher than comparable companies, investors may end up paying more for every dollar of earnings.

The typical value investor search for companies with lower than average P/E ratios with the expectation that either the earnings will increase or the valuation will increase, which will cause the stock price to rise.

On occasion, a high P/E ratio can indicate the market is pricing in greater growth that’s expected in the future years.

A negative P/E ratio shows that a company has not reported profits, something that is not uncommon for new, early stage companies or companies undergoing financial perturbations.

Current stock price may be important in choosing a stock, but it shouldn’t be the only factor. A low market stock price does not necessarily correlate to a undervalued or cheap stock.

The P/E ratio is a key tool to help you compare the valuations of individual stocks or entire stock indexes, such as the S&P 500.

References:

  1. Rajcevic, Eddie, Greenbacks & Green Energy, Luckbox, May 2022, pg. 58.
  2. https://www.forbes.com/advisor/investing/what-is-pe-price-earnings-ratio/

The Power of Faith

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“Faith consists in believing when it is beyond the power of reason to believe.” ~ Voltaire

What is the Power of Faith?

One example of the “power of faith” is to imagine that you’re a passenger on a Boeing 747 jetliner and trusting that the law of physics applies regarding the lifting force generated by aircraft wings are sufficient to allow an inanimate cylindrical object that has a mass of several thousand kilograms to sustain controlled flight at an altitude of over thirty thousand feet for several hours and several thousand miles.

Faith is believing and trusting that aeronautical engineers properly designed the passenger jetliner, that manufactures, such as Boeing or Airbus, correctly assembled the technological complex flying machine, and that government agencies, like the FAA, reliably certified the jetliner as safe you’re currently flying on as a passenger.

Finally, faith is accepting that the pilots at the controls are adequately trained and experienced to fly the multi-engine passenger jet, that the maintenance technicians were competent and skilled in their duties to maintain the aircraft systems and prevent catastrophic failure while the aircraft is in flight, and that the operations watch standers are cognizant and alert to ensure no other aircraft will share the same volume of airspace at the same time with the jetliner in which you’re a passenger.

Bottomline, most things we do in life, such as flying the friendly skies, are based solely on conscious or subconscious faith.

Faith is believing, trusting and accepting the unknown or that which you cannot know for certain. In a way, faith is believing and trusting what you cannot be entirely be certain about.

It’s the complete and absolute trust or confidence in someone or something. Educator Dr. Mary McLeod Bethune was quoted as saying, “I plunged into the job of creating something from nothing…. Though I hadn’t a penny left, I considered cash money as the smallest part of my resources. I had faith in a living God, faith in myself, and a desire to serve.”

Believing and having faith in yourself will ensure you achieve your loftiest goals. You can say that faith is the key to living a better and more fulfilling life.

“Faith is the first factor in a life devoted to service. Without it, nothing is possible. With it, nothing is impossible.” ~ Mary McLeod Bethune

Home Buyers Cancelling Contracts

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Home buyers are increasingly canceling home purchase contracts citing a slowing housing market, and rising mortgage rates as biggest factors

Approximately 60,000 home purchase agreements were canceled last month by homebuyers, about 14.9 percent of homes that went under contract that month, according to a report from Redfin.

The cancellation rate is the highest percentage since Redfin began collecting the data in 2017, excluding March and April 2020, the first two months of the pandemic.

The percentage of canceled contracts compared to homes put under contract is up from 12.7 percent in May and up from 11.2 percent year-over-year.

Prospective homebuyers are canceling contracts for two primary reasons:

  • Some are exercising contingency clauses, which were waived by many buyers to increase their offer’s chances of being accepted when the market was hotter.
  • Others are backing out because of rising mortgage rate. In mid-June, the average 30-year fixed-rate loan flew past 6 percent, significantly higher than it was at the beginning of the year, when it was at an average of 3.22 percent.

Housing prices are still rising but less than they were, and signed contracts indicate the number of sales will drop in the coming months.

The housing market has cooled in recent weeks as the Federal Reserve has boosted interest rates in an effort to quell four decade high consumer price index (CPI) inflation. That has given house hunters more freedom to seek concessions from home sellers, but higher rates also make housing less affordable for average Americans.

References:

  1. https://therealdeal.com/2022/07/11/deal-or-no-deal-home-buyers-increasingly-canceling-contracts/amp/
  2. https://www.redfin.com/news/home-purchases-fall-through-2022/

Gratitude

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“Integrate gratitude into your daily life.”

It’s essential to find gratitude every day.

Gratitude means thanks and appreciation for all things. It’s the state of feeling grateful — a conscious, positive emotion one can express when feeling especially thankful for something, whether intangible or tangible.

Robert Emmons, in a Greater Good essay, “Why Gratitude Is Good”, argues that gratitude has two key components:

  • “First, it’s an affirmation of goodness. We affirm that there are good things in the world, gifts and benefits we’ve received.”
  • Second, people should “recognize that the sources of this goodness are outside of ourselves. … We acknowledge that other people—or even higher powers, if you’re of a spiritual mindset—gave us many gifts, big and small, to help us achieve the goodness in our lives.”

“Gratitude is “an affirmation of goodness and a recognition that this goodness is sourced outside the self.” This doesn’t mean that life is perfect and peaceful, but when you look at life as a whole, gratitude encourages you to identify some amount of goodness and joy in your life.” Dr. Robert Emmons

References:

  1. https://greatergood.berkeley.edu/topic/gratitude/definition
  2. https://www.brownleeglobal.com/gratitude-research/