The Risk of Doing Nothing

I like to see the world as being full of opportunities. Maybe I’m a bit of an idealist. Maybe I’m not representing the world that we all live in. But there are a lot of us that can feel fortunate.

But when these opportunities do come along you’ve got to be ready to act upon what you’ve discovered. We could be talking about your money, or your life in general. The risk of not doing is very often bigger than the risk of doing. Not every opportunity is right for you, but if you simply run away from every single thing put in front of you then it's far harder to get ahead.

Money, money, money

It’s like leaving your car in the garage to protect it from the rain. Only you haven’t checked on it for months and when you do get to look at it the car doesn’t work, it’s rusted away and there’s a pigeon living in the glove compartment.

That’s the point. You need to be fully engaged either way. So even if you choose to run away from a problem or a situation, sticking your head in the sand shouldn’t be an option. Empowering yourself to make decisions should be. Think about your money in your context. 

It’s about taking control of whatever life throws at you. You don’t always have to create from scratch. You simply just have to take responsibility and control.

14 Pointers For Success in Life and Finance

We can choose to wallow in the negatives in life, or we can seek to get ahead through applying some positive approaches and strategies. Check out how John Paul Dejoria did it in the video below. 

And whether you’re thinking about your finances or life in general, consider the following:

1. Look at what you’ve got. We spend so much time trying to ‘fix’ things and add new things, we sometimes don’t fully appreciate what we have. If you have a skill or talent, acknowledge it. In fact, sing it from the mountain tops. You’ve spent a lot of money on some good stuff in the past, so enjoy it. Remember, there are things about you that others could only dream about having.
2. Dress the part. The old adage, “Don’t dress where you are, dress where you want to be”, goes a long way. But that also includes all forms of grooming. Is your hair more surfer than CEO? Is your make up more vamp than VP? Do you want to represent a certain way of life? It’s up to you.
3. Read. We all know that many successful people had to come through unspeakable hardships to get to where they are now. So why not read about them? Their biographies can be part inspiration, part model of how to apply yourself in life. If they can conquer financial problems, why can’t you?
4. Listen. We all learn differently, and reading may not be everyone’s bag. So how about watching or listening instead? If you can’t stretch your hard-earned cash to watch personal development gurus Tony Robbins or Wayne Dyer in person, then why not buy one of their programs? Or cheaper still, simply go onto YouTube for inspiration. And there are so many tips on finance there as well. If it works, it works.
5. Be nice. A smile and a compliment don’t cost anything and can go a long, long way.
6. Be helpful. Remember, ‘getting ahead’ isn’t just about you. There are 7 billion of us sharing this rock and every act of kindness helps in our interconnectedness. It’s the butterfly effect. It’s good for the soul.
7. Choose who you hang around with. It’s been said that we are the average of the five people we spend most of our time with. Think about that. Are the people you surround yourself with lifting you up, keeping things stable or dragging you down? Are they going to inspire you to a greater financial existence? It’s your call as to what these people mean to your past, present and future.
8. Be positive. It’s obvious, really, yet we forget that thinking and acting positively is far better for us than thinking and acting negatively. If you need a reminder to be positive once in a while, set an alarm in your phone to pop up, “I’m just amazing”, or whatever takes your fancy.
9. Note down the good bits. It’s good to record your successes. Big ones, little ones, money ones, personal ones, communal ones, national ones. Any that move the dial inside of you. One strategy is to find an empty jar, write any success that you may have on a piece of paper and then place it in the jar. At the end of the year, open it and see how amazingly successful your year actually has been.
10. Filter out the bad bits. We all know that consuming unhealthy stuff isn’t good for us. And ‘consuming’ relates to eating, drinking, watching, listening and so on. We are bombarded with negative images and influences, and we are all in a position to decide what to absorb. There’s no need to wallow in debt conversations. The less of the bad stuff that encases us, the more the good stuff can get through.
11. At least you tried. Not everything you turn your hand to will succeed. That’s the way life works. We try, we fail, we learn, we adapt. But as long as we take on board the lesson from it not working, well, we haven’t really failed. You’ve lived and learned.
12. Get out there. No man is an island. You need to stay connected. You need to interact with people that can move you forward.  You need to realise that you alone won’t get you to the Promised Land. So network, join clubs, make new friends. From a finance perspective, consider a coach or a mentor. Move on from where you already are, basically.
13. Little by little. Rome wasn’t built in a day and all that. Not all change has to come via big sweeping actions. In fact, little habits, actions and behaviors can go a long way. If you implement small changes every single day, you’ll be surprised what advancements you can achieve.
14. Be authentic. It’s a phrase we’ve all heard but don’t always know how to apply. Basically, it’s about being real. Being real in your interactions with others, being real with how you choose to live your life, being real about walking the walk, being real about what you want to represent. Being real to yourself. Trying to keep up with the Jones is not being authentic. Saying you want to retire at 55 while spending like you’ll only be able to retire at 85 is not being authentic.

Knowing My Financial DNA

Awareness remains a core pillar of personal development. So I was intrigued to see what insights would come to the surface when I looked into my Financial DNA. Hugh Massie’s programme is all about “discovering your unique financial personality for a quality life”. 

It’s really about becoming more aware of your blind spots and behavioural dynamics that are either holding you back or moving you forward financially. It’s packaged as primarily a tool for personal finance but, boy, it’s a real eye opener for how you look at life in general.

So what did I find out? Well, according to insights outlined in my ‘Natural Behaviour Discovery’ assessment, I am by nature a Community Builder. It says I’m all about cooperation and harmony, while being easy going, receptive, uncomplaining and forgiving. My ‘Strengths’ within this context are that I’m satisfied with the status quo, I’m focused on a balanced life, I’m approachable, I want to create a steady environment, and I allow open dialogue. Yep, I kind of assumed a fair bit of that so I’m not going to question it.

What intrigued me more, however, were what were termed as my ‘Struggles’ (or ‘Weaknesses’ to you and me). These showed that I was prone to complacency, prone to stay in my comfort zone, and that I may not set boundaries. 

Although my initial reaction was a mixture of annoyance and denial, it wasn’t long before I actually felt some relief. I’ve always talked about the concept of “growth”, whether that’s to do with personal finance or broader life itself, but have often struggled to make inroads.

Deep down I knew some of these issues all along but I was always willing to ignore, excuse or blame instead of address. It’s not that I’ll be able to change my behaviours overnight. Not much hope of that. 

But now that it’s out there in front of me on a printed piece of paper, with my name on it, I can actually stop pretending and can start using tools and strategies to make it easier for these areas to be less limiting. So whether we’re talking about finance or some other strand of your developmental story, this assessment provides an interesting insight.

It's A Lottery

According to a recent survey commissioned by Liverpool Victoria Insurance, something like 3.6 million people in the UK are relying on winning the UK national lottery to fund their retirement. That’s a lot of people pinning their personal finance hopes on the concept of possibility (and an unlikely one at that) rather than building better probabilities for their future. 

Coincidentally, according to Cracked.com, 5% of lottery ticket buyers buy 51% of all tickets sold in the US. But we can't all be like Joan Ginther, a Texan woman that won four lottery jackpots.

Just as scary was the number of people who were hoping to finance their future on the chance of becoming famous. About 10% of the people in the Liverpool Victoria survey were sure that they would find the fame to bring the fortune. 

Pinning your hopes on unlikely outcomes aren’t a great way to manage your risk-reward picture, even if there are books that have strategies on how to win. While the solutions might seem a tad misplaced, the reality is there are a great deal of people that are too scared, confused or overly complacent to find suitable answers to the prevailing questions – what do I need for my retirement and how am I going to get there?  

Sometimes you just need a bit of nudging and guidance, whether it's from a good friend or even through a financial coach.

Regularly putting aside money in savings and investment plans may not have the whizz-bang excitement of seeing your six numbers come up on lottery night or winning the X Factor but, quite frankly, taking the boring route to securing your financial future is going to be a hell of a lot more reliable.

Getting To Know You

Many financial problems faced later in life can be avoided if individuals are provided with proper personal finance solutions from their earlier years. Unfortunately, a lot of these solutions are learned “on the job” at home, or via your peers at school or in your community. And, let's face it, for many parents money is another taboo subject - many simply avoid the conversations as they don't really have their own houses in order. 

“Knowing yourself” in relation to personal finance is partly about getting to know your ideal outcomes in life – the “why” behind the need to have and manage your money. Decide what you want money for. Financial needs do change as life ticks along, but we have to at least have a think about it.

If your goal is to live by yourself in a shack without any trappings of modern life, surviving on mung beans, then so be it. As long as you’re not hurting yourself or anyone else, it’s no one else’s business as to how you choose to live. Some know where they're going, the rest of us should just focus on the process of getting to know. Whatever you do decide, just learn to fund that lifestyle accordingly.

Personal Finance - Where To Start

There’s such a lot of information on personal finance out there; some good, some less so. But don’t allow yourself to be overwhelmed. You’ve got to start somewhere. And starting with yourself is as good a place as any.

Having a sense of where you are at this point in time and what you want in the future can play a big part in achieving success in yourpersonal finances.

Spend enough time to know yourself that you find a formula that works for you - i.e. that allows you to not obsess over money, fear its loss, or take risks you cannot tolerate.  Look at how your own mind works, and let money flow to those aspects that make your life more dynamic and creative.

So look at today as your start line. 

It doesn't matter what you have done so far in your life, it doesn't matter whether you have a professional qualification or how you look. It also doesn't matter what the markets are doing, nor what everyone else is doing. It’s about you taking control of your actions, applying the right structure, attitude and behavior to take your financial story forward. As long as you are prepared to put the time and energy into improving your condition, whether you do that by yourself or via financial coaching, you can do ok.

A Line In The Sand

I've thought long and hard about this blog in recent weeks.

It started out a few years ago now, partly with the hope of spreading a bit of cheer but often with the aim of simply allowing me to express myself in written form. There have been some good, bad, indifferent and amazing blogs along the way. Some have been heart-felt, some have been self-indulgent. Some days I've been so inspired it almost hurt, other times I've had to try my hardest just to squeeze out a collection of words to form sentences simply to keep the thing ticking over. Hopefully, once in a while it turned a frown "upside down", or provided the occasional bit of insight to the casual reader.

But from today I'm going to change things slightly. There's been a bit of downtime since parting ways with my employer last year, and I've had a lot of time to think about "stuff". I've struggled to be consistently inspired and haven't really offered up (in my view) everything I have to offer. I'm still all about personal development, championing those wanting to following their dreams, finding those insights in life that take you down those less travelled roads. But I wanted to bring something new to the table. Personal finance.

"Yawn", I hear you cry. "Aren't there already dozens upon dozens of finance blogs teaching you tips on saving money with Groupon, how to retire early and what stocks to buy in a deflationary environment?" I guess there are. But I just want to throw my two cents into the mix. Or maybe that should be 'two pence', because I'm actually British - and that's part of the point. I may have lived in the US in the past but I have no idea about Roth IRAs or the intricacies of IRS jurisdictions, something which I'm happy to leave to US bloggers.

I'm just a guy that has worked in finance for a number of years, lived in a few different countries, was brought up in poverty (both materially and of thought), and have always had an interest in what makes people tick (both materially and in thought). I like to think in real world generalities that (hopefully) anyone can relate to - whether you're in Anchorage or Zanzibar. Personal finance is simply an extension of what went before only, again hopefully, with a bit more substance for readers to work with.

So, over time, this blog will change a fair bit but I'd like to think there will still be one constant to it all. Me.


 

Life's What You Make It

"Life is like a game of snakes and ladders. There are going to be good times and bad times, but you have to keep throwing the dice to stay in the game."

That's what you get to hear when you're sitting in a coffee shop, reading the paper and earwigging the table next to you. Well, at least that's what happened to me the other day. Two people chewing the fat about life, love and soap operas. And it seemed quite apt for me to hear it as well.

Things have taken a bit of a turn in recent months. I recently left my job, broadly by "mutual agreement", and I'm taking some time out to find some new direction and get some head space.

I've been thinking about it for some time and I provisioned accordingly for time away from the workforce. Still, it is pretty scary. I know there will be ups and downs along the way, but hopefully at the end of this crazy journey I'll be able to say "at least I tried", regardless of the outcome.

So I'm just going to have to keep throwing the dice and live the life I'm destined to live. That's the plan anyway. And at least I get to spend time in a few more coffee shops in coming months as well...

E=MC²

I failed an exam yesterday. I haven't got the results yet, mind you, but it's not one of those false modesty things. "Oh, I'm sure you'll do fine - you're quite bright." No, I pretty much failed.

But I'm actually quite fine with it. Very fine with it, in fact. Like every Tom, Dick and Harry I've had a penchant for wanting to run away from failure. Don't take risks - that way you can't fail. Don't commit - that way you can't fail. Don't follow a path - that way you can't fail. Well, this time I did risk, commit and follow a path - and I failed. And you know what? It feels fine.

We all know the platitudes about failure is an opportunity in disguise, how all the great inventors of our time had failures before that breakthrough success, if at first you don't succeed....etc. Well, in the real world it's not always that easy to accept so truism. We've fed our ego with some much garbage, it's no wonder we can't always accept when something doesn't work out.

But for the first time in a long time I'm comfortable with the idea of being willing to "make more mistakes". I know that it will toughen me up a bit and actually give me a bit more focus for next time. For once I'm able to leave the ego at the door and be honest with myself. Cool.

Stop

I had a bit of a revelation a few weeks ago. Many years ago I absolutely loved psychoanalysing myself. Well, maybe "loved" isn't quite the word. Rather, I just couldn't stop doing it. "Why am I this...Why do I do that"-kind of nonsense. Some of it was revelationary, some of it was just plain bad. Bad, bad, bad. None of it was really about the finer points in my personality. No, this period of self abuse, for want of a better phrase, was all about why I had messed up and why I would continue messing up.

I'm guessing this went on for years, going by some old diary entries I've tracked down. I can't remember when I stopped. But one day, I just did. Or rather, I no longer drifted to the darkest depths of my self criticism, but instead skated on the surface.

Anyway, my recent revelation was all about how my analysis of the self differs between then and now. Back then it was so very much coming from a space of doubt, of blame, of dislike. And while I do have those moments of "woe is me" I'm most definitely coming more from a position of acceptance and love. I know I mess up - but now I more often than not throw in "but don't we all". And I'm glad I do.

Running Up That Hill

Ahh, yes, running up that hill.

Balance. Where are you? I mentioned in my last blog how busy things are getting in my world. Of late, the part-time Masters course has been getting a lot of attention from me.

The trouble is, of course, some areas of my existence have been sidelined - I have barely been to the gym or kung fu (admittedly, that's more down to a sore toe though), the blog has been 'resting', I've made less time for friends, and I've barely registered that fast-approaching event called Christmas.

I realise some of it is temporary but often what starts out as a short-term distraction can turn into a longer-term concern about the balance of life.

Thankfully, once my mid-term exam is out of the way this weekend I'll be able to reconnect a few of the dots. But it has made me think again about the importance of maintaining discipline and balance.

It's not as if we can create more than the 24 hours in a day we're all blessed with so I have to work smarter with what I've been given. In the same way that you can 'leak' money without having a clue as to how it's left your wallet, so too can time be frittered away without any value being added. So it's time for a bit more awareness and to get that routine back on track. It's not about time management - it's about priorities management. Game on!

Control

I was thinking the other day about a comment I heard many years ago from the great English footballer, Sir Bobby Charlton. A journalist was asking him about his excellent record when taking penalty kicks. The conversation went something like:

Journalist: So, Sir Bobby, when you used to take penalties were you ever worried that you'd miss?

Sir Bobby: No, I used to hit the ball as hard as I could and let the goalkeeper do the worrying!

It did get me thinking about the idea of controlling the controllable. We all do a fair bit of worrying about what other people are thinking about us and the like. Sometimes we just need to focus on what's ours to control and be the best we can in that context.

Golden Brown

It's amazing what you can find on the internet to get you thinking and, hopefully, take you to the next level. I fell upon a TED lecture by Brene Brown, an academic researcher, that discusses the concept of vulnerability and "being enough".

It's a great piece - if you get the chance to watch it all, give it a go. It may well expand your perception.

Only You

I was walking down the street when I heard the old Platters song 'Only You' belting out of a shop doorway. It's one of those oldies but goodies you rarely hear, even on old school radio.

But here it was talking to me. I say talking to me as I was having one of those early-year, post-resolution-setting moments of aaaggghhh!!!

The day's gym effort had been pretty feeble even in the context of recent less than stellar efforts. The plan to push on with more life coaching had hit invisible speed bumps. My guitar heroics hadn't quite turned me into the next Eric Clapton. And, quite frankly, I was getting nowhere fast really. I always had excuses. It was the weather, the water, the whatever. And then I heard the song and remembered it was all down to me:

Only you can make this world seem right
Only you can make the darkness bright
Only you and you alone
Can thrill me like you do
And fill my heart with love for only you

Only you can make this change in me
For it's true, you are my destiny
When you hold my hand
I understand the magic that you do
You're my dream come true
My one and only you

Cool.

Finding yourself, creating yourself

There are a crazy number of books providing a template for life. How to speak to your inner soul, how to speak confidently within thirty seconds, how to become a millionaire overnight, how to deal with stress, and so on. And I, for one, have read a trailer load of the above.

I see nothing wrong with this kind of literature as they do a lot of good for a lot of people. Personally, however, I prefer to view them from a certain angle. Different bookstores will categorise the same books under different criteria. Maybe it’s just my bugbear but you walk into certain bookstores and it will be “Self Help", walk under others and it will be “Personal Development”.

I prefer to see it all from the development rather than the help angle. There’s nothing wrong with a bit of self-valuation. In fact, an unobserved mind and all that can be a little dangerous.

But while some people may see life as being about finding yourself and these books are a tool for doing so, I’d prefer to see life as more about creating yourself, which these books are perfectly positioned to do as well.

There’s probably no right or wrong answer to this. It’s probably more down to how we individually prefer to see the world.