Tag Archives: Mindset

TWELVE SUCCESSFUL WAYS TO SAVE MONEY | America Saves

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Start small, Think big. Make a commitment to yourself to save money, reduce your debt, establish an emergency fund, invest for the long-term and begin building wealth.

By Barbara O’Neill, Ph.D., CFP, CRPC, AFC, CHC, CFEd, CFCS, Rutgers Cooperative Extension

Savings is the foundation for investing. You cannot invest money if you have not saved it first. Like dieting, saving money is hard to start, even harder to maintain, and requires patience and discipline. When you achieve your financial goals, however, the results are so worth it. Below are 12 time-tested ways to save:

  1. Pay Yourself First – Treat savings like an important household bill (e.g., loan payment). Set aside a part of each paycheck, even if it is only a small amount, and leave it there. Save automatically where possible.
  2. Collect Coins – Put loose change into a can or jar. When the container is full, deposit the money into a savings account. Set aside $1 a day, plus loose change, and you should have about $50 a month, or $600 a year, saved. Save $2 a day, plus loose change, and you should have about $1,000.
  3. Complete a Savings Challenge – Pick a savings Challenge that matches your time frame and savings goal such as the 30 Day $100 Savings Challenge or the 50 Week $2,500 Savings Challenge. Savings challenges gradually ramp up savings deposits over time and provide motivation and structure.
  4. Continue to Pay a Loan or Bill – Make payments to savings or investment accounts with money that is freed up when loan payments end or an expense, such as childcare, ends. The rationale behind this savings method is that you are already accustomed to the payment so “redirecting” it will not pinch your cash flow.
  5. Break Costly Habits – Track your spending for a month or two and pick a few places where spending can be cut back or cut out to “find” money to save. For example, brown bagging lunch two or three days per week could save hundreds of dollars over the course of a year.
  6. Bank a Windfall – Save all or part of large, infrequent expected or unexpected sums of money. Examples of common financial windfalls include tax refunds, inheritances, settlements, awards and prizes, retroactive pay increases, and year-end bonuses at work.
  7. Crash Save – Decide that, for a month or two, you will buy only absolute necessities and save any money that remains after paying bills. At the end of the crash savings time period, treat yourself and buy the item(s) that you were saving for. Then resume your “normal” spending habits or set a new crash savings goal.
  8. Start a “Club” Savings Plan – Start a structured savings plan to save money over the course of a year for holiday or vacation expenses. Some banks and many credit unions still offer them. Unlike “coupon books” of years ago, weekly savings deposits are often transferred electronically from checking to savings.
  9. Save Your “Extra” Paychecks – Mark your paydays each year on a calendar. If you are paid bi-weekly, in two months of the year, you will receive three paychecks. If you are paid weekly, there will be four months with five paychecks. Anticipate these months in advance and plan to save part of the “extra” paycheck.
  10. Save Excess Expense Reimbursement Money – Review your employer’s reimbursement policy. If you get a fixed sum for business travel expenses, instead of having to collect receipts, and spend less than the per diem amount, save the difference. Ditto for mileage reimbursement for using a personal car for business.
  11. Reinvest Interest and Dividends Automatically – Arrange to have dividends and capital gains on mutual funds reinvested to purchase additional shares rather than receiving a check for a small amount and spending it. This is a painless way to increase investment account value over time.
  12. Participate in a Tax-Deferred Retirement Plan – Reduce your salary via payroll deduction to save for retirement and aim to take maximum advantage of employer matching. Money contributed to a 401(k), 403(b), or similar retirement savings plan and earnings on these funds grow tax-deferred until withdrawal.

For additional information about saving money, visit the America Saves program website.

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Spring is here! This is the perfect time to do some spring cleaning in your financial house. April has been declared as National Financial Capability Month. Throughout the month, the Financial Literacy and Education Commission (FLEC) and the Ready Campaign encourage people to take action to improve their financial futures and to be prepared when disaster strikes.

References:

  1. https://americasaves.org/resource-center/partner-resource-packets/financial-capability-month-ways-to-improve-your-financial-capability-now/
  2. https://americasaves.org

Sir Christopher Wren and The Story of Three Bricklayers

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Mindset affects just about everything–including your attitude. Your attitude is based upon your beliefs. Beliefs affect your decisions. Decisions affect your behavior, behavior affect your actions, actions affect your results.

After the Great Fire of London destroyed much of the medieval city of London in 1666, Sir Christopher Wren designed new churches and supervised the reconstruction of some of London’s most important buildings. His name is synonymous with London architecture.

He produced ambitious plans for rebuilding the whole area but they were rejected, partly because property owners insisted on keeping the sites of their destroyed buildings.

Wren did design fifty-one (51) new city churches, as well as the new St Paul’s Cathedral. In 1669, he was appointed surveyor of the royal works which effectively gave him control of all government building in the country. He was knighted in 1673.

Story of Three Bricklayers

We see things as we are; not as they are

The story of three bricklayers is a true story. After the great fire of 1666 that leveled London, the world’s most famous architect, Sir Christopher Wren, was commissioned to rebuild St Paul’s Cathedral.

One day in 1671, Sir Wren observed three bricklayers on a scaffold, one crouched, one half-standing and one standing tall, working very hard and fast.

  • To the first bricklayer, Christopher Wren asked the question, “What are you doing?” to which the bricklayer replied, “I’m a bricklayer. I am cutting this stone to a certain size and shape.” He was just doing a task
  • The second bricklayer, responded, “I’m a builder. I’m building a wall. I’m working hard laying bricks to feed my family.” He was just earning a living
  • But the third brick layer, the most productive of the three, when asked the question, “What are you doing?” replied with a gleam in his eye, “I’m a cathedral builder. I am helping Sir Christopher Wren build St. Paul’s Cathedral for The Almighty.” He was doing his small part of building a great cathedral.

The lessons from the story of three bricklayers:

  • Big Picture Thinking – Being able to see the end result and how your work contributes to that end.
  • Attitude – A positive attitude and pride in what you are doing will show up in your work and your motivation.
  • Connection to the Organization’s Mission – Employees who are rightly connected to the organization’s mission, vision, values, and goals are happier, more engaged, and more productive employees.

The Power of Purpose and Calling

The story of the three bricklayers is also a metaphor on the power of purpose, where the “cathedral builder,” demonstrates a personal expression of purpose that transforms his attitude and gives a higher meaning to his work. Another term for purpose is “calling.” For the first bricklayer, building the wall was a job. For the second bricklayer it was an occupation. For the third bricklayer, it was a calling.

A calling reflects our universal need to matter, to influence, and make a difference in the world around us.  Victor Frankel made this clear in his book, The Meaning of Life.  He wrote about how some people survived the holocaust, but so many didn’t.  One of the things he identified was those who had a purpose or reason to continue to live that was beyond themselves tended to survive, while those who were focused primarily on themselves did not.  Those who survived found some meaning in their painful circumstances.  The meaning they found was in caring for and helping others in this horrible experience.

References:

  1. https://www.thoughtco.com/sir-christopher-wren-rebuilder-of-london-177429
  2. http://www.bbc.co.uk/history/historic_figures/wren_christopher.shtml
  3. https://sacredstructures.org/mission/the-story-of-three-bricklayers-a-parable-about-the-power-of-purpose

Black-White Inequality Wealth Gap

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“Wealth is a safety net that keeps a life from being derailed by temporary setbacks and the loss of income.”  Brookings Institute

The wealth gap for African Americans remains significant. A close examination of wealth in the U.S. finds evidence of persistent and staggering racial disparities and past racist federal policies, according to the Brookings Institute findings. Specifically, the disparities include:

  • At $171,000, the net worth of a typical white family is nearly ten times greater than that of a Black family ($17,150) in 2016.
  • Gap in stock market participation between the groups persists, with 55 percent of Black Americans and 71 percent of white Americans reporting stock market investments.

This disparity means that Black Americans will have less money saved and invested for retirement, and less accumulated wealth to pass onto the next generation than their white peers.

Figure 1. White families have more wealth than Black, Hispanic, and other or multiple race families in the 2019 SCF.

Notes: Figures displays median (top panel) and mean (bottom panel) wealth by race and ethnicity, expressed in thousands of 2019 dollars.

These gaps in wealth and investments between Black and White households reveal the effects of centuries’ of accumulated inequality, discrimination and racism, as well as differences in power and opportunity that can be traced back to this nation’s inception. The Black-White wealth gap reflects a society that has not and does not afford equality of opportunity to all its citizens.

It is important to note that it was never the case that a White asset-based middle class simply emerged, according to research based on a study of historical and contemporary racial inequality. Rather, it was extraordinary government policy, and to some extent literal government giveaways, that provided Whites the financial assets, educational opportunities, land grants and infrastructure to accumulate and pass down wealth.

In contrast, blacks were largely excluded from these wealth generating benefits. When they were able to accumulate land and enterprise, it was often stolen, destroyed or seized by government complicit in theft, fraud and terror.

Federally funded racism in housing and labor unions

In the mid-twentieth century, the government subsidized builders to construct suburbs of single-family homes  in scores of developments across the country on explicit federal condition that no homes be occupied by African Americans, according to the NAACP Legal Defense Fund. Over several generations, federally subsidized white homebuyers gained a quarter million dollars in home equity or more. In contrast, the government restricted African Americans, including war veterans, mostly to segregated urban apartment rentals where no wealth appreciated.

White homeowners were able to bequeath some of this federally subsidized wealth to subsequent generations, after using it for retirements, children’s college education, care for elderly parents, or medical emergencies. African Americans had to use current income for such expenses, if they could do so at all, pushing many into poverty. Largely because of twentieth century federal segregation policy, while average African American income is about 60 percent of white income, African American wealth is only 7 percent of white wealth.

Other federal policies forced African Americans into poverty, continuing for generations. In 1935, the government gave construction and factory unions the right to collectively bargain for higher wages and benefits. As proposed by Senator Robert Wagner, the law denied that right to unions that barred African Americans. Segregated unions lobbied to remove that provision and the Wagner Act was then passed, unconstitutionally empowering unions to exclude black workers — a policy that continued for over 30 years. Denied the best blue-collar employment, African Americans participated less in the collectively bargained income boom that raised white working class incomes in the three decades following World War II.

Wealth

“Black children are less economically upwardly mobile partly because of the multigenerational effects of federal and state government racist policies that purposely segregated their grandparents and great-grandparents into low-income communities and low paying jobs from which exit was difficult.”

Wealth is the sum of resources available to a household at a point in time; as such it is clearly influenced by the income of a household, but the two are not perfectly correlated.

Two households can have the same income, but the household with fewer expenses, or with more accumulated wealth from past income or inheritances, will have more wealth.

As a result, high- and middle-income white families are much wealthier than Black families with the same incomes. A few reasons are that White families receive much larger inheritances on average than Black families. Economists Darrick Hamilton and Sandy Darity conclude that inheritances and other intergenerational transfers “account for more of the racial wealth gap than any other demographic and socioeconomic indicators.”

For example, while 51 percent of white Americans say they have inherited wealth, just 23 percent of Black Americans have, according to an annual Ariel-Schwab Black Investor Survey.

All of this matters because wealth confers benefits that go beyond those that come with family income.

Wealth is a safety net that keeps a life from being derailed by temporary personal economic setbacks and the loss of income, according to Brookings Institute. This safety net allows people to take career risks knowing that they have a buffer when success is not immediately achieved.

Family wealth allows people (especially young adults who have recently entered the labor force) to access housing in safe neighborhoods with good schools, thereby enhancing the prospects of their own children.

Wealth affords people opportunities to be entrepreneurs and inventors. And the income from wealth is taxed at much lower rates than income from work, which means that wealth begets more wealth.

Education a Way to Weslth

Social science research indicates that blacks attain more years of education than whites from families with comparable resources. Essentially, blacks place a high premium on education as a means of mobility

Yet, the racial wealth gap between Blacks and Whited expands at higher levels of post secondary education. In short, Black families where the head graduated from college have less accumulated than wealth than white families where the head dropped out of high school.

One take-away…better mindsets regarding wealth and money alone can’t fix the legacy of unconstitutional and racist federal and state sanctioned economic policy.

References:

  1. https://www.brookings.edu/blog/up-front/2020/02/27/examining-the-black-white-wealth-gap/
  2. https://www.aboutschwab.com/ariel-schwab-black-investor-survey-2021
  3. Source: Federal Reserve Board, 2019 Survey of Consumer Finances.
  4. https://www.marketwatch.com/story/heres-why-black-families-have-struggled-for-decades-to-gain-wealth-2019-02-28
  5. https://www.epi.org/blog/is-poverty-a-mindset/

Financial Literacy: Six Principles of Personal Finance | TD Ameritrade

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Imagine operating a boat without the basic understanding of nautical rules of the road or even how to operate a boat. Scary thought.

Here’s another scary circumstance – one that is all too real. Many Americans are making financial decisions with minimal financial knowledge of investing, budgeting, and credit. The TIAA Institute conducted a survey on U.S. financial literacy, asking 28 basic questions about retirement saving, debt management, budgeting, and other financial matters. The average respondent answered only about half of the questions correctly.

Another study, conducted by Pew Research, found that one in four Americans say that they won’t be able to pay their bills on time this month.

It has been said that knowledge is power, and if that’s true, then too many Americans lack the power to control their financial futures. Financial success rarely happens by accident; it is typically the outcome of a journey that starts with education.

Talking about money is one of the most important skills to being a fiscally responsible and a financially literate person. However, 44% of Americans surveyed would rather discuss death, religion or politics than talk about personal finance with a loved one, according to CNBC.

Why? Two major reasons are embarrassment and fear of conflict, even though the consequences can be grave: 50% of first marriages end in divorce, and financial conflict is often a key contributor. Additionally, it is considered rude to discuss money and wealth.

The missing component is financial literacy education and training.

Mastering personal finance requires you to look at your financial situation holistically and come up with a plan for how to manage your money. In this TD Ameritrade video, we’ll look at helpful principles for six personal finance topics:

  1. Budgeting – focus on the big ticket items by cutting cost on the expensive costs such as cars and homes
  2. Saving and investing – be specific about your destination and your plan on achieving your goal and reaching your destination
  3. Debt and Credit – avoid high interest debt and loans on items that will quickly lose value
  4. Reduce taxes – find ways to legally pay less taxes on the income you earn,
  5. Avoid insurance for expenses you can pay out of pocket – purpose of insurance is to protect you in unfortunate scenarios.  60% of all bankruptcy is related to medical expenses
  6. Investing for retirement. – don’t just save for retirement, invest for retirement.

Make high impact adjustments to your finances to improve your financial future.

References:

  1. https://www.cnbc.com/2019/04/30/the-us-is-in-a-financial-literacy-crisis-advisors-can-fix-the-problem.html
  2. https://www.tiaainstitute.org/publication/financial-well-being-and-literacy-midst-pandemic
  3. https://www.pewtrusts.org/en/research-and-analysis/articles/2017/04/06/can-economically-vulnerable-americans-benefit-from-financial-capability-services

Change Your Perspective, Change Your Life

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“It’s never the situation that’s at fault. It’s the way we choose to view it. How we see our lives is how we live our lives.” Nicolas Cole

Many people, after experiencing setbacks and failures, emotionally give up and stop trying. They believe that because they were unsuccessful in the past, they will always be unsuccessful going forward. In other words, they continue to see a barrier or obstacle to their success in their heads, even when no barrier or obstacle exists between where they are in their life and where they want to go.

Yet, no matter how hard the world tries to hold you back and convince you that you’re not worthy of achieving the life you desire, it’s imperative that you always continue to believe that your goals and what you want to achieve in life are possible. Believing you can become successful and you can achieve your wildest dreams and goals are the most important and critical steps in actually achieving them.

Taking accountability.

The reason why so many people struggle and fail at achieving their wildest dreams and goals is that they take the easy path and blame others for how they feel, for their current life, or for their personal issues.

Instead of “manning (or womanning)-up”, they default to blaming their parents, their childhood, or their bad luck for the reality they find themselves.

The key to achieve success and accomplish your goals is to take accountability. To shift your perspective from “blame” to “ownership.” By taking ownership and accepting accountability, you are allowing yourself to open up and to see opportunities to learn and grow.

Focus On The Lesson, Not The Problem

Many people fail to realize that it’s the journey that’s most important, not the end of the journey or reaching the destination. You are “successful” when you are walking your path, always learning, always growing. You are “doing what you love” when you see every moment as an opportunity.

It’s on you to discover the opportunities to grow and learn, and to embrace every moment as an opportunity.  Regardless of where you are in life, or what you’re doing, there are lessons to be learned. And unless you can discover those lessons and embrace your own journey, you will never actually reach the state of feeling “successful”–in the sense that you are learning and growing and effortlessly becoming a better version of yourself.

Lessons Are Everywhere. It’s On You To Find Them.

It is important to train and to condition yourself to always find the positive. Create moments of growth and opportunity. Growth is the result of how you utilize your environment and the people around you, and create opportunities for yourself.

The key to shifting your perspective is to remember what you’re aiming for. For example: A job where you perform mundane tasks is going to continue being mundane if you just see it as “just a job.” But a job where you perform mundane tasks that could be seen as a way to learn skills you need in order to one day do what it is you truly want to do, is no longer “just a job.” It’s an opportunity to learn.

You should recognize that what you look for is what you tend to see. So, instead of looking for an outcome that is negative or some flaw, look for something positive that can be beneficial or add to your. Shift your search for happiness and you can help create what you most desire.

Replace negative thoughts with something more positive. Practice focusing on the positive thoughts. The more you practice, the easier it will be for these thoughts to become second nature. Strive to say at least three positive thoughts about yourself each day, as it can make you feel happier and more confident during the day and help banish negative thoughts. Remember that perspectives can change, so work towards striving for positivity.

In the story above, nothing physical or tangible changed with your circumstances. The only thing that changed was your perspective.  And that makes all the difference.

So, when you’re looking at what’s going on around you and wonder how to escape the negativity and dark feelings. Maybe it’s not your circumstances that need to change—it’s your perspective and mindset.

References:

  1. https://www.marcandangel.com/2013/05/21/4-short-stories-change-the-way-you-think/
  2. https://www.inc.com/nicolas-cole/change-your-perspective-change-your-life.html

What Every Woman Needs To Know About Her Money

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“The lion’s share of wealth, two-thirds of wealth in the United States, is going to end up in the hands of women by the year 2030.” Jean Chatzky

The women that Jean Chatzky, New York Times Bestselling Author and financial editor at the NBC TODAY Show, has talked with “share a lack of confidence” regarding managing and investing their money. “Whether we’ve got one hundred, one hundred thousand, or one million dollars, we don’t always feel equipped to manage it, even when we’re doing exactly the right things,” she explained.

In order to create a better world, Chatzky suggests women should, “…use this power that’s coming our way to improve not just our lives, but the lives of the people that we love and care about, and the causes that  we believe in. We really do have an opportunity through giving and investing to create the world we want.”

Women…”have an opportunity through giving and investing to create the world we want.” Jean Chatzky

Chatzky offers 15 tips to help you get a handle on your finances and to create the financial future you want for yourself.  A future that aligns with your goals, values and purpose in life.

1. Talk openly about money

Chatzky explains, “We gather groups of women who don’t make a habit of talking about money with the specific purpose of talking about money…and it’s really freeing.” One open ended question she asks is, “What do you want your money to do for you?”.

2. Track your spending to see what you really value

Do you want a clear picture of your spending? More so, do you want to uncover whether or not what you say are priorities are aligned with your expenditures?

3. Determine what your ideal life actually costs

“What do you want from your life?” This is a question Chatzky believe you need to consider so that you can determine what your ideal life actually costs. Write down what you want and next to each item, list the price to do or have it.

4. Use money as a resource to buy you more time

Money is a tool which creates freedom of time and choice. Chatzy shares, “The most important thing to realize is the opportunity that you’re wasting. Money we can get more of. Time, you absolutely can’t get more of…But by moving around some of our money, we can restructure our time in a way that feels much better, much more fulfilling, and much less stressful. We are so stressed, and using our money to swap for a little bit of extra time is one great way to reduce some of that stress.”

5. Identify your money scripts

“We all have stories around money which became ingrained as children. In some cases we mimic them, in others we rebel against them. In order to know where you’re going with your financial future, it’s helpful to identify the scripts that are overtly or subliminally impacting your views and habits around money,” advises Chatzky.

6. Find financial harmony in your primary relationship

Chatzy suggests, “Listening is the key to success within a relationship. You have to understand why your partner needs what they need as much as they need to understand what you need.”

7. Don’t let money injure your friendships

“Listen and read between the lines. We know an awful lot about our friends’ financial situations, even if they tell us not one thing. We see how they spend. We see how they manage. We know if they’re stressed financially. We just have to be a little bit empathetic and open-minded about the fact that they may not have the same choices or priorities that we have. And that doesn’t mean that we can’t be great friends,” shares Chatzky.

8. Teach your kids early

It can feel scary to talk to your kids about money, especially if you feel tentative about your own financial skills. Fortunately, it doesn’t have to be challenging: “Kids have to have money in order to learn to manage money.”

9. Get paid what you deserve

To charge or get paid what you deserve, “First, you must know what you deserve and once you know what that number is, you have to ask for it:

10. Negotiating won’t hurt your outcomes

The person on the other side of the table, they are waiting for you to negotiate, according to Chatzky. They’re not going to punish you for negotiating. You may not get the money. But asking is not going to hurt you.

11. To be or not to be (an entrepreneur)

30% of US businesses are women-owned, and that number is rising steadily.

12. Spend on others

Studies show that when you do for others, you’re guaranteed to feel happier. This includes when you spend on others. “There’s no sense in feeling guilty for spending money that’s not sabotaging our financial life”, says Chatzky.

13. Talk with aging parents

“If you haven’t had a conversation with your parents before you’ve hit age forty or they hit age seventy, it’s time”, she comments

14. Have a little fun with your money

Chatzky comes from a judgment-free zone when it comes to how you spend your money. But, “know how much it costs” since you earned that money and yours to do with as you want.

15. Consider your legacy

“You have to think about what’s important to you. That’s where a lot of us fall down when it comes to charitable giving”, Chatzky says.

Building wealth

If you want to build wealth, you need only do four things, according to Chatzky:

  1. Make a decent living.
  2. Spend less than you make.
  3. Invest the money you donʼt spend.
  4. Protect the financial world you build so that a disaster doesnʼt take it all away from you.

Building wealth sounds easy, so why is it so hard, particularly for women?  “Because women according to Chatzky, “make excuses”. We tell ourselves that we’re “just not good with money,” or that our husbands “like taking care of the finances.”

In short, “what successful women want from their money are: independence, security, choices, a better world, and–oh yes–way less stress, not just for themselves but for their kids, partners, parents, and friends.”

To read more: https://www.vunela.com/jean-chatzky-on-the-top-15-things-every-woman-needs-to-know-about-her-money/

References:

  1. https://www.vunela.com/jean-chatzky-on-the-top-15-things-every-woman-needs-to-know-about-her-money/
  2. https://www.jeanchatzky.com/books/

GET YOUR “MINDSET RIGHT”

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“Change your thinking, change your life.” Frank Sonnenberg

If you want to be successful – in both your personal and financial life – you must have the right mindset. Essentially, your mindset represents the way you approach the world and what you believe to be true.  When it comes to success, your mindset is the most important predictor of your future success in personal finance and life. Everything in life begins with your mindset, thoughts, attitude and habits.  

Think of mindset as a set of attitudes, beliefs or ideas each person possesses. These attitudes, positive or negative, may come from your environment, home life and your personal experiences, or they might have been learned while at school. No matter their source, what you do to foster a positive growth mindset really does matter.

A growth mindset helps foster more positive thinking and a belief that intelligence can change, develop and grow. It is the belief that people can learn from their mistakes and that the brain is like a plant, always ready to soak up new information and knowledge. A student with a growth mindset might say: “I’m not going to give up,” “I’m going to keep trying,” or “I can do this.”

“Whether you think you can, or you think you can’t – you’re right.” Henry Ford

Success and financial security begins with your mindset. If you are determined to do something, and believe that you can achieve it, then you will find ways to succeed. Your determination to develop good financial habits and manage your money better are key to realizing your financial goals and achieving financial security.

Anyone can make a budget and have a financial plan to save for the future, spend less, and invest for the long term. But that is only 10% of the financial equation. The other 90% is how you think, how you behave and what you believe about money.

Your mindset is key to creating the life you desire and deserve. Your beliefs drive your habits and emotions, and in turn, these determine your behavior. If you believe you can, you will. You must believe that, “You are good enough. You are smart enough. You have unique and valuable gifts to offer the world and people notice and respect you for it.”

Studies have shown that allowing stress to overtake you can often have lasting negative effects on more than your mindset. Your health can be affected, your careers can be affected, and your entire lives can be affected!

David Bach, author of the best-selling book, The Latte Factor: Why You Don’t Have to Be Rich to Live Rich, says. “I’m super positive about things [long-term], but I think people need to be preparing themselves for volatility and rockiness.”

But there’s a silver lining to the downturn, Bach says: “Recessions create millionaires.”

If you believe that there is never ending potential to learn new things and grow in your talents, not only will you put yourself in new situations that could help you grow, you will embrace them with eagerness.  Negative feedback is more fuel for growth, not something to be dreaded.

Or, according to Carol Dweck, a professor at Stanford and the author of Mindset, a classic work on motivation and “growth mindset”: “People with a growth mindset believe that a person’s true potential is unknown (and unknowable); that it’s impossible to foresee what can be accomplished with years of passion, toll, and training… Why waste time proving over and over how great you are, when you could be getting better?  Why hide deficiencies instead of overcoming them?  Why look for friends or partners who will just shore up your self-esteem instead of ones who will challenge you to grow?  And why seek out the tried and true instead of experiences that will stretch you?”

References:

  1. https://www.dollarbreak.com/wealth-creation-mindset/
  2. https://justmind.org/mindset-matters-most/

No. 1 Secret to Success, Wealth and Happiness in Life

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“Kindness and generosity are the keys to happiness and prosperity.”Wahei Takeda, president and founder of Takeda Confectionery Co.

Wahei Takeda, president and founder of Takeda Confectionery Co., was considered a truly happy man, and lived by example a life that demonstrated to others what it really meant to live a successful and meaningful life. Often called the “Warren Buffet of Japan”, Takeda was one of the country’s most successful and well-known investors.

The key to a happy and abundant life

Takeda’s philosophy of “maro,” which in Japanese means ‘a sincere heart’, “inner contentment and gratitude are the keys to a happy and abundant life”.

The secret to a happy life isn’t an abundance of wealth, since rarely does anyone says they have too much, or just enough. “Winning a $20 million lottery ticket won’t make you happier,” said Dr. Sanjiv Chopra, a professor of medicine at Harvard Medical School. “Research has shown that after one year, lottery winners go back to their baseline. Some are even less happy.”

Chopra explains the four things that have been scientifically linked to happiness:

1. Relationship with Friends and family

Developing a close bond with people we trust and confide in is essential to our overall well-being. “Choose your friends wisely and celebrate everything small and good with them,” Chopra says.

Researchers have also warned that “loneliness and social isolation can be as damaging to health as smoking 15 cigarettes a day,” whereas friendships can “reduce the risk of mortality or developing certain diseases and can speed recovery in those who fall ill.”

2. Forgiveness

“The ability to forgive frees you from the burdens of hate and other unhealthy emotions that can negatively impact your happiness quotient,” says Chopra.

He cites Nelson Mandela as a hero who truly mastered the art of forgiveness. In 1990, when the legendary freedom fighter emerged from his 27 years of prison, he was asked whether he had any resentment toward his captors.

“I have no bitterness, I have no resentment. Resentment is like drinking poison and then hoping it will kill your enemies,” Mandela responded.

“Resentment is like drinking poison and then hoping it will kill your enemies.”  Nelson Mandela

3. Giving

Chopra says that getting involved with charities and donating money to help others is one of the most fulfilling ways to spend your time and money.  Researchers have suggested that people who volunteer experience greater happiness, higher self-esteem and a lower mortality rate.

A study from the University of Chicago and Northwestern University found that giving, rather than receiving, leads to long-term happiness. In one experiment, 96 participants were given $5 every day for five days — with the option to either spend it on themselves or on others.

“Everyone started off with similar levels of self-reported happiness,” the researchers wrote. “Those who spent money on themselves reported a steady decline in happiness over the five-day period. But happiness didn’t seem to fade for those who gave their money to someone else.”

4. Gratitude

“Gratitude is not only the greatest of virtues, but the parent of all the others.” Roman Orator Marcus Tullius Cicero once

“There’s a wonderful anonymous quote that goes, ‘If you don’t know the language of gratitude, you’ll never be on speaking terms with happiness,’” Chopra says.

Practicing gratitude can be as simple as saying “I’m grateful” at least once a day. In fact, one study from the American Psychological Association found that doing so can help people savor positive experiences, cope with stressful circumstances and strengthen relationships. It will also measurably improve your own overall satisfaction and happiness in your relationships and life.

“Happiness flows not from physical or external conditions, such as bodily pleasures or wealth and power, but from living a life that’s right for your soul, your deepest good.” Socrates

“Taking time to think about what you’re grateful for makes you more aware of the positive things in your life,” says Chopra. As a result, “it makes you less biased by the fewer negative things in your life.”

In a money-obsessed capitalist society, the simplest way to reach a state of happiness, contentment and abundant life is to express gratitude and give to others, instead of always wanting or asking for more. Bottomline, “gratitude is a key to wealth, health, and happiness”.

References:

  1. https://www.cnbc.com/2021/01/25/warren-buffett-of-japan-secret-to-success-happiness-and-wealth-in-life.html
  2. https://www.cnbc.com/2019/05/31/harvard-professor-says-winning-20-million-lottery-wont-make-you-happy-but-heres-what-will.html?updated
  3. https://www.cnbc.com/2019/01/24/saying-this-powerful-phrase-is-the-science-backed-secret-to-a-happy-relationship.html?__source=iosappshare%7Ccom.microsoft.msedge.EMMXShareExtension

 

Habits for a more Abundant Life

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Two most important:

  • Read at least thirty minutes everyday
  • Know and pursue a goal your passionate about

Intelligence, talent and charm are great, but more often than not these aren’t what separate the wealthiest among us from the poorest.

Instead, the differences are in our daily habits.

Do you realize that these subconscious, second-nature activities make up 40 percent of our waking hours? That means that two out of every five minutes, all day and every day, we operate on autopilot.

It’s true: Habits are neural pathways stored in the basal ganglia, a golf ball-size mass of tissue right in the center of our brains, in the limbic system.

This neural fast lane is meant to save the brain energy: When a habit is formed and stored in this region, the parts of the brain involved in deeper decision-making cease to fully participate in the activity. However, we all know there are good habits and bad habits.

5 habits

We know that habits can either help or hurt your success in life. Bad habits can fester and grow into a lifestyle that takes you away from the things you want to do—and good habits can help you create a life that’s full of action and accomplishment.

If you were to look at someone you respect, someone who’s successful, you would see that they spend each day doing the things that help them accomplish their biggest goals. This isn’t to say they’re perfect—because no one is—but despite the things that are not perfect in their lives, they continue to make moves that have a positive impact. And it starts with their daily habits.

Now, while we can all study successful habits, it’s meaningless if we don’t implement that knowledge. So, according to Kimanzi Constable, here are five daily habits you can adopt to create the life you truly want to live:

1. Plan out your day the night before.

It’s easy to get off track when you don’t have a plan. Without planning what your day will look like, you wake up not knowing what you want to do or accomplish. Spend a little time the night before giving yourself clear goals for the next day. Life rarely works out as planned, but with a plan, you can adjust without losing momentum.

2. Read books and novels to get inspired.

Reading is an essential element in success—books contain so much knowledge. Forming a daily reading habit will expand your knowledge, allow you to learn more about your profession and help you on your journey to success.

3. Make your health and fitness a priority.

What you eat and how much you exercise affects every area of your life. Successful people use their exercise as a time to reset and reinvigorate. And they make smart food choices that will give them the energy they need to accomplish everything on their daily to-do list.

4. Don’t get distracted by what other people are doing.

Other people’s journeys to success can be inspiring; you can learn so much—about their mistakes, their victories, what to do, what not to do. But if you start comparing your progress to theirs, instead of using their stories as inspiration, you can lose focus and fail to keep your eyes on your own mountain top. Realize your journey is unique and can’t be compared. So don’t get stuck in the comparison trap—stay focused on your why.

5. Live each day as if it were the last.

Life is busy, it’s chaotic, and so you tend to want to focus on the future—we all do it, worry about what’s next. But while planning is important, so is living—being fully present.

Life is short, and there’s no guarantee as to when it will end. Successful people live each day as if it were their last and make the most out of each moment—and so should you.

When you look at a big goal, it’s common to get frustrated at the enormity of what you’re trying to accomplish. If you wake up each day determined to spend it forming good habits, you give yourself a better chance at success. So use these five habits as a starting place to build whatever a successful life means to you.

Read more:

  1. https://www.success.com/16-rich-habits/
  2. https://www.moneycrashers.com/productive-habits-wealthy-successful-people/

Becoming Ageless: The Four Secrets to Looking and Feeling Younger Than Ever

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Don’t try to overhaul your life overnight. Instead, focus on making one small change at a time. Over time, those small changes will add up to big transformation. Don’t give up!”

A reporter once asked Albert Einstein what’s man’s greatest invention was, and the scientist, after a long pause, simply replied: “Compound interest.”

Compounding—the idea of something gaining value exponentially into the future through better decisions made in the present—is one of the greatest lessons any human being can ever learn.

In Becoming Ageless, “it is never too late to reverse how you look and feel, and to develop the mindset of how you do it. Day in and day out, if you want to live longer and live better, you need a clear and basic understanding that the outcome of your journey is the sum of its steps.”

There are no guarantees with your physical or emotional health, just as there are no guarantees with your wealth. But, you can stack the odds in your favor by making sacrifices today that are worth the gains in the long term.

And with the principles explained in Becoming Ageless, you’ll be living longer—and with greater clarity of thought, mobility, and freedom from pain. Ultimately, you can take the tactical insights about daily living and the strategic insight into the larger quest to live longer and better. After all, you can be living proof that if you’re willing to consistently and incrementally implement small changes—while keeping your eye on the larger goal at all times—you’ll boost your chances of living longer and living happier than you ever imagined.

You can have the mind, body, and spirit of someone half your age, and add more years to your life. Or, you can have people stare in disbelief when they discover how old you really are. You can become…ageless?  You can. It’s possible.

Becoming Ageless: The Four Secrets to Looking and Feeling Younger Than Ever is the result of years of research into the science of longevity. It is about looking and feeling eternal. It has worked, and it will work for you. On this effective plan, you’ll:

  • Lose stubborn belly fat and watch the pounds melt away.
  • Enjoy amazing meals, workouts, and a sense of community.
  • Look and feel noticeabley younger—for life!
  • The strategies contained inside Becoming Ageless, you’ll discover:
    • An easy and effective program for everyone that will help you flatten your gut and become healthier than you ever thought possible.
    • Delicious, healthy, and easy-to-make recipes including hearty breakfasts, easy-to-make lunches, filling dinners, and even desserts.
    • A full workout plan that will sculpt your body and help you prevent back pain and sleep better.
    • A holistic mind/body approach that really works. Look and feel better than ever without deprivation dieting, counting calories—or ever feeling hungry!

    Becoming Ageless: The Four Secrets to Looking and Feeling Younger Than Ever, explains exactly what it takes to be fit and healthy at any age with all the research to support it.

    The three most interesting things Zelnick learned about keeping the mind and body young.

    1. Try the less-is-more approach.

    When it comes to staying youthful and increasing longevity, deliberately plodding along can actually be more effective than going all out. A 2015 study looked at more than 1,000 runners and found that those who jogged slowly had lower mortality rates than those who ran faster. “I was a terrible runner, so a few years ago I worked with a coach,” says Zelnick. Even though they suggested brisk, one-hour sessions, Zelnick insisted on 45-minute jogs. “That was just at the brink of what I could live with before saying, ‘I hate this so much, I’ll never do it again,’” he says. “Taking it slow and steady was my strategy.”

    2. Stay adventurous.

    Research from the University of Texas at Dallas found that trying new, cognitively demanding activities improves memory function in older adulthood. “It’s just not true that we lose the ability to learn or improve our performance after the age of 25,” says Zelnick. “I picked up skiing in my 30s, cycling in my 40s, boxing in my 50s, and I’m picking up gymnastics and squash now.” Not only is it possible to learn new skills as you age, but doing so can keep your body and brain young.

    3. Accept the learning process.

    Study upon study shows the importance of grit in predicting success, and Zelnick believes it also keeps you young. You probably won’t pull off a world-class performance the first, even the 10th time you try something. “Don’t be afraid of failure or slow progress,” he says. “There are days when I play squash and I do really badly. And yes, I might get frustrated with myself but then I realize, you know what? I showed up, I did the best I could, I’ll do better the next time—or I won’t. But I’m still going to keep going.”

    With Becoming Ageless, you’ll feel fitter, sharper, and more energized than ever before—with the body of someone half your age! Boost your metabolism and enjoy all-day energy. Feel younger for life. All you have to do is follow the four secrets in the book.

    – Ageless Secret #1 You’ll Indulge in Delicious Foods 
    It’s true: You can eat to be younger. Most people associate eating for health or weight loss with a “diet”—It’s important to break that association. Diets fail. Instead, focus on “Forever Fuel.” It doesn’t mean you can’t eat your favorite foods; you’re just getting the best versions of them. On the Becoming Ageless plan, enjoy the following and lose 20+ pounds:

    • Unlimited Foods—Lean Protein, Salads, and Vegetables—eat as much as you want. bison, light tuna, chicken, eggs, grass-fed beef.
    • Limited Foods—Some fruits and dried fruits, nuts, and cheese—in moderation.
    • Highly restricted foods—no processed foods, fried foods, or added sugars. Processed foods account for 70% of the calories that Americans take in. They don’t just make you fat; they age you. Research has linked ultraprocessed foods to a higher risk for obesity, heart disease, and cancer. Intriguing new work even suggests that they may actually encourage overeating, possibly because their particular mashup of ingredients disrupts the hormones that control hunger, or it scrambles the gut-brain signals that tell us how much to eat.
    • Commit yourself to eating sensibly and eating yourself healthy.

    The book is packed with a ton of easy-to-make recipes that will help you get your best body ever. It’s true—even with a busy schedule, you can cook, because they’re that simple. And if you cook just three meals a week, you’ll live a decade longer, studies show.

    – Ageless Secret #2: You’ll Unlock Your Inner Strength
    Fitness is the foundation for so much success in many individuals lives—it improved their moods, shrunk their belly, got them out with colleagues (which led to promotions) and you don’t have to run an ultra-marathon or climb Mt. Everest. Just commit and be consistent. Get moving a little every day.

    Work out every morning and some evenings. Some moves take just minutes to do. Here’s a few ways to do it right:

    • Start slow—incorporate regular walks or body weight exercises to feel the burn.
    • Workout when you’re working—like with a stressball or a hand grip strengthener
    • Incorporate a complete exercise plan for building muscle. Use it and you’ll avoid back pain and get injured less.

    – Ageless Secret #3: You’ll Bulletproof Your Body
    You can’t feel younger if you’re sick all the time.  You want to turn your body into a disease-fighting machine. That’s why you should include:

    • Preventative measures—a complete checklist of all the tests you need, and when you should have them.
    • A guide to better sleep, so you can have a more peaceful rest.
    • Cover mental health too…favorite tip to boost confidence is to ditch the scale. Measure success by what you see in the mirror and how you look and feel. If you like what you see, what the scale reads isn’t important. That was a game-changer. Little changes mean big results.

    – Ageless Secret #4: You’ll Discover a Deeper Connection
    People who focus solely on the body and not the mind are shortchanging themselves. For lasting success, it’s essential to construct a support system that will hold you accountable—and provide incentives for you to succeed. Consider texting a friend after every workout, and revel in the virtual high-five; better yet, join a workout class. You’ll strengthen bonds with friends and loved ones and elevate your mood and productivity.

    It’s a benefit in embracing my spiritual side. For quiet reflection, personally integrate morning prayer. It’s life-changing, and feeds into personal success on every level. To help you focus, meditate, do yoga, and find a community that supports your new lifestyle.

    By following the pillars in Becoming Ageless, you’ll be happier and healthier; stave off disease; enhance your spiritual connections; and lose fat from where it matters most. That’s something you want at any age. It works.

    Start by asking yourself an important question: “What do I want?” That answer will drive every decision you make. It will also make the how easier to pinpoint and, eventually, accomplish. Here are a few answers to that question: You May want to . . .

    • Live as long and healthily as possible while being cogent and mobile.
    • Be fit and strong.
    • Perform my job at my highest level.
    • Have warm and meaningful relationships with my family and friends.
    • Push my limits both mentally and physically.
    • Look good in and out of clothes.
    • Feel youthful, happy, satisfied, and as stress-free as possible.
    • Be spiritually connected.
    • Help others achieve their goals.

    You don’t want is to be limited or defined by your age. Yet sometimes, we forget that, while there’s no stopping the passage of time, we can control how well we age. Because the notion that you’ll get too old to run marathons, too weak for century rides, too fragile to ski or snowboard, or too fatigued to keep up with your grandchildren at a park is just plain wrong.

    It doesn’t matter if you’re a millennial or a centenarian: Right now, you have all the resources you need to make changes to obtain or reclaim the life you want. That’s if you know what you want. So think about what you want. Be honest and don’t edit your thoughts. Contemplate it for a week if you need to. Then write down five to 10 goals. Write them right now.

    About the Author

    Strauss Zelnick is founder of the private equity firm Zelnick Media Capital and president and CEO of Take-Two Interactive, the company behind blockbuster video games such as Grand Theft Auto and NBA2K.

    “Live your truth!”