Debt is expensive.

Americans spend about 34% of their income on servicing their mortgages, car loans, and, of course, credit cards.¹

Assuming a household income of $68,703, that translates to roughly $23,359 going down the drain each and every year.²

Obviously, converting that money from debt maintenance to wealth building would be a dream come true for most Americans. But there’s more at stake here than retirement strategies.

The true cost of debt is your peace of mind.

Take the example from above. A third of your income is going towards debt and the rest is split up between everyday living and transportation expenses. You feel you can make ends meet as long as the money keeps coming in.

But what happens if a recession causes massive layoffs? Or if a pandemic shuts down the economy for months?

The sad fact is that the hamster wheel of debt prevents a huge chunk of Americans from saving enough to cover even a brief window of unemployment, let alone a shutdown!

That lack of financial security can have serious repercussions, including bankruptcy. And feeling like you’re always one unexpected emergency away from a financial crisis can result in a myriad of mental health issues. Numerous studies have shown that high levels of debt increase anxiety, depression, anger, and even divorce.³

Conquering debt isn’t about changing numbers on a page. It’s about reclaiming your peace. It’s about securing financial stability for you and your family. Your income is a powerful tool if you can protect it from lenders.

If you’re stressed about debt and seeking some relief, let me know. We can review your situation together and come up with a game plan that will recover the financial security that’s rightfully yours.

We all know credit cards charge interest if you carry a balance. But how are interest charges actually calculated?

It can be enlightening to see how rates are applied. Hopefully, it motivates you to pay off those cards as quickly as possible!

What is APR?

At the core of understanding how finance charges are calculated is the APR, short for Annual Percentage Rate. Most credit cards now use a variable rate, which means the interest rate can adjust with the prime rate, which is the lowest interest rate available (for any entity that is not a bank) to borrow money. Banks use the prime rate for their best customers to provide funds for mortgages, loans, and credit cards.¹ Credit card companies charge a higher rate than prime, but their rate often moves in tandem with the prime rate. As of the second quarter of 2020, the average credit card interest rate on existing accounts was 21.44%.²

While the Annual Percentage Rate is a yearly rate, as its name suggests, the interest on credit card balances is calculated monthly based on an average daily balance. You may also have multiple APRs on the same account, with a separate APR for balance transfers, cash advances, and late balances.

Periodic Interest Rate

The APR is used to calculate the Periodic Interest Rate, which is a daily rate. 15% divided by 365 days in a year = 0.00041095 (the periodic rate), for example.

Average Daily Balance

If you use your credit card regularly, the balance will change with each purchase. So if credit card companies charged interest based on the balance on a given date, it would be easy to minimize the interest charges by timing your payment. This isn’t the case, however—unless you pay in full—because the interest will be based on the average daily balance for the entire billing cycle.

Let’s look at some round numbers and a 30-day billing cycle as an example.

Day 1: Balance $1,000

Day 10: Purchase $500, Balance $1,500

Day 20: Purchase $200, Balance $1,700

Day 28: Payment $700, Balance $1,000

To calculate the average daily balance, you would need to determine how many days you had at each balance.

$1,000 x 9 days

$1,500 x 10 days

$1,700 x 8 days

$1,000 x 3 days

Some of the multiplied numbers below might look alarming, but after we divide by the number of days in the billing cycle (30), we’ll have the average daily balance.

($9,000 + $15,000 + $13,600 + $3,000)/30 = $1,353.33 (the average daily balance)

Here’s an eye-opener: If the $1,000 ending balance isn’t paid in full, interest is charged on the $1353.33, not $1,000.

We’ll also assume an interest rate of 15%, which gives a periodic (daily) rate of 0.00041095.

$1,353.33 x (0.00041095 x 30) = $16.68 finance charge

$16.68 may not sound like a lot of money, but this example is a small fraction of the average household credit card debt, which is $8,645 for households that carry balances as of 2019.³ At 15% interest, average households with balances are paying $1,297 per year in interest. Wow! What could you do with that $1,297 that could have been saved?

That was a lot of math, but it’s important to know why you’re paying what you might be paying in interest charges. Hopefully this knowledge will help you minimize future interest buildup!

Did you know?

When you make a payment, the payment is applied to interest first, with any remainder applied to the balance. This is why it can take so long to pay down a credit card, particularly a high-interest credit card. In effect, you can end up paying for the same purchase several times over due to how little is applied to the balance if you are just making minimum payments.

Mortgage protection insurance seems like a great idea… on paper.

Afterall, you financially protect your home, your car, your health, and your life with insurance. Why not do the same for what’s typically your largest debt obligation?

But a MPI policy might not be the best way to help your family pay off the house.

Here are three questions you should ask before you buy mortgage protection insurance.

Will my payout change?

The fundamental weakness of most MPI policies is that their payout decreases over time. As you work down your mortgage, there’s technically less to protect.

That becomes a problem if your premiums don’t change even as your payout plummets. You’ll be paying the same amount for less protection!

Ask about policies that feature a level death benefit. They’ll provide you with the same amount of death benefit regardless of how much is left on your mortgage.

Will my premiums change?

Premiums for MPI aren’t always fixed. The amount you pay for protection each month might decrease or skyrocket. Your wallet is at the mercy of your insurance provider!

Just remember that fixed premiums might be a double edged sword. It may be useful to have a policy with premiums that lower over time if you don’t have a level death benefit. Ask about fixed premiums for your MPI before you find yourself paying more for less!

Would life insurance be a better option? (hint: the answer may be yes)

Term life insurance may be a better choice than MPI. Payouts are guaranteed by the insurance company and premiums are fixed. You won’t have to worry about paying more for less protection as the years go by.

It’s also flexible. A chunk of the death benefit may knock out the mortgage, while the rest can fund college, health care costs, and living expenses.

There are special circumstances where MPI is superior to term life insurance. It typically doesn’t have medical restrictions, making it a good option for people who normally wouldn’t qualify for term life insurance. Just remember to ask your financial professional these questions if you decide to learn more!

Your life insurance coverage should be worth roughly ten times your annual income.

That’s not as crazy of a number as it might appear. Your income funds your family’s lifestyle and fuels their dreams. It’s how you pay for the house, the car, their education, and all the big and little things that make life run.

So what would happen if your income were to suddenly stop if you became ill or were to pass away?

Could your family afford to stay in the neighborhood? Would a child have to compromise their education? Would your spouse have to get an additional job to cover the daily costs of living?

Life insurance helps answer those questions in the event of your income disappearing.

So why buy a policy ten times your annual income?

First, it can act as a buffer while your family grieves and figures out next steps. A proper life insurance death benefit can allow your family to cover final expenses while they decide how to move forward.

Second, it can help your family pay off remaining debts and start funding future opportunities. This reduces the financial burden your loved ones will face in your absence.

Obviously, there are exceptions to this rule. A stay-at-home parent provides services and care that would be costly to replace and should be covered with that in mind. Families with medical concerns might need to consider a policy worth more than ten times their annual income.

But in general, a life insurance policy for ten times your income will help cover the major expenses your family will face.

Want a more precise estimate on how much life insurance you and your family need? Contact a financial professional. They can offer insights into how much coverage your specific situation calls for!

Successful businesses are good at solving problems.

The larger the problem to solve, the more rewards you will reap. We instinctively know this is true, even if we can’t articulate it. Just look at our spending habits.

Our favorite coffee shop solves our lack-of-energy-in-the-morning problem.

Music streaming soothes our rush hour stress with our favorite tunes.

A food delivery app removes the hassle of driving to a restaurant.

Your brands of choice provide you value by solving your problems. The more they fix, the more you love them!

So, imitate your favorites. Explore the problem you’ve identified until you’re an expert. Next, develop a solution that crushes the problem.

Training your sights on providing value won’t magically make you successful. But it can serve as a guiding light when you feel directionless and unsure of your next steps.

Can’t find your target market? Brainstorm which companies or agents would gain the most from implementing your solution. Be as specific as possible in explaining the benefits.

Struggling to discover a niche in a saturated market? Look for issues that competitors and industries have ignored or missed. It might be something they’ve accepted as the cost of business.

Trying to scale up? Diligently research the obstacles your new clients face and tailor your solutions to their specific needs.

Let me know if you’re hungry to start a business. We can talk about the problems facing some of the largest industries in the world and how you can provide much needed solutions.

Your paycheck makes everyone rich… except you. Allow me to explain.

Your labor actually is helping make your boss rich. He gives you a portion of earnings in exchange for your time and effort. No harm, no foul. But what becomes of that paycheck?

It goes right back to people just like your boss.

The owner of your favorite coffee shop gets a piece.

Whoever dreamed up your favorite streaming service gets a piece.

Your landlord gets a huge piece.

And your credit card provider? They gobble up whatever’s left.

Everyone gets rich while you’re left scrambling to make ends meet. You get another paycheck and the cycle repeats.

So how do you escape this endless cycle and begin building wealth?

Before you do anything else, you’ve got to pay yourself first.

Start treating your personal savings as the most important bill to pay. Here’s the simplest way:

• Decide how much you want to pay yourself each month and adjust your budget accordingly

• Set-up a recurring automatic payment from your checking account to your savings account. Schedule it right after your payday.

• Pay rent, utility bills, and buy groceries after your automatic transaction goes through

• Use whatever is left for your lifestyle

Remember, the most important person you owe money to is you. Prioritize your own savings and use your income to build wealth for yourself.

The goal of this article is to empower you to take bold action.

You want to increase your income and be your own boss. Who doesn’t? You just need the practical know-how to overcome your fear and start the journey.

So turn off the YouTube videos and fire up Google Docs. Here’s how to choose the right side gig for you.

Step 1: List your hobbies. Passions make excellent side gigs. Why? Because they leverage skills you already have, and likely command your attention and interest. Those are critical ingredients for success.

It doesn’t matter how niche or strange your hobby might be. Write it down. In fact, the more oddball your interest, the more potential you may have more monetizing it.

Step 2: Evaluate the market. Simply put, can your skills solve a widespread problem? If so, then you have a potential client base at your fingertips.

Those problems may not seem obvious at first. But you will certainly be surprised by what people will pay for.

Not knowing how to play an instrument is a huge problem for music lovers.

Lacking time to decorate and organize is a huge problem for type A personalities.

Social Media illiteracy is a huge problem for older people starting small businesses.

All of those problems are opportunities to boost your income, if you have the skills to solve them. It just takes some time and creativity to identify problems.

Step 3: Size up the competition. But here’s the catch—there might be hundreds, or even thousands, of others seeking to solve the same problems as you. In fact, your competitors might have a stranglehold on your target market.

However, if your skills or niche are highly specific you could have a rare opportunity on your hands. You could eventually scale your side gig income to replace your day job!

This leads to a critical principle for deciding which side gig is right for you…

Opportunity lies at the intersection of high demand and low supply.

The more people demand a service, and the fewer competitors already providing it, the greater your likelihood of success.

There’s just one factor left to consider…

Step 4: Weigh costs against rewards. Starting a business requires a combination of time, effort, and money. No exceptions. The question is whether—and when—the rewards will outweigh the costs.

Starting a car manufacturing business? Good luck—you’ll require a huge amount of capital, and won’t see profits for years.

Refurbing curb-side furniture with tools and skills your grandpa left you? Hats off—your start up costs are almost zero, beyond some time and energy.

In summary, you want a side gig that…

• Aligns with your skills and passions

• Solves a major problem for many people

• Lacks competitors

• Offers high rewards with small costs

Which side gig fits that bill for you? Whatever it is, let’s chat about it. We can discuss what it would look like for you to start pursuing it today.

You walk out of the office like a brand new person.

That’s because you’ve done it—you’re going to be earning a lot more money with that raise. The first thing that pops in your head? All the fancy new things you can afford.

Dates. Your apartment. Vacation. They’re all going to be better now that you’ve got that extra money coming in.

And to be fair, all of those things CAN get substantially fancier after your income increases.

But one thing may not change—you still might end up living paycheck to paycheck.

Why? Because your lifestyle became more extravagant as your income increased. Instead of using the boost in cash flow to build wealth, it all went to new toys.

This phenomenon is called “lifestyle inflation”. It’s why you might know people who earn plenty of money and have nice houses, but still seem to struggle with their finances. The greater the income, the higher the stress. As Biggie put it, “Mo’ Money, Mo’ Problems.”

The takeaway? The next time you get a raise, do nothing. Act like nothing has changed. Go celebrate at your favorite restaurant. Keep saving for your new treat. But you’ll thank yourself if you devote the lion’s share of your new income to either reducing debt or building wealth.

Rest assured, there will be plenty of time to enjoy the fruits of your labor in the future. But for now, keep your eyes on the most important prize—building wealth for you and your family’s future.

Without careful planning, your money will never go the distance for your retirement.

Well, unless you win the powerball or stumble upon buried treasure.

The simple fact is that retirement can last a long, long time and often be expensive. According to the Federal Reserve, the average American can expect a retirement of almost 20 years, requiring $1.2 million.¹

How long would it take you to save $1.2 million? Even if you could stash away your entire paycheck, it would likely take over a decade. Factor in the daily costs of living, and decades may become centuries.

Unless, of course, you leverage two simple strategies…

Strategy One: Maximize the power of compound interest.

Strategy Two: Start saving today.

These are time-proven strategies that anyone can leverage. And they can mean the difference between your savings running out of steam or lasting as long as you do.

Let’s start with strategy one: Maximize the power of compound interest…

Compound interest can supercharge your savings. Instead of taking centuries, you have the potential to reach your retirement goals just in time!

That’s because compounding unleashes a virtuous cycle. The money you save grows on its own over time.

But here’s where the magic happens—the more money you have compounding, the greater its growth potential becomes. Even a fraction of your paycheck can eventually compound into the wealth you may need for retirement.

Think of it like changing gears on a bike. Savings alone is first gear—good enough for going down hills or casual jaunts through the neighborhood.

But for reaching greater goals, you need more power. Compound interest is those extra gears—it’s an advantage that can radically improve your performance.

That leads straight into the next strategy: Start saving today.

The longer your money compounds, the greater potential it has for growth. To prove this, let’s crunch the numbers…

Let’s say you can save $500 per month. You find an account that compounds 10% annually.

After 20 years, you’ll have saved $120,000 and grown an additional $223,650 for a grand total of $343,650. Not bad!

But what if you wait another 11 years? Your money will more than triple—you’ll have $1,091,660!

The takeaway? A few years could be the difference between reaching your retirement goals and coming up short. The sooner you start, the greater potential you have to get where you want to go.

No more sporadic saving when you feel the panic. No more burying your head in the sand because you don’t know what the future holds. No more fear that your finances won’t cross the finish line.

These simple strategies can help you go the distance and retire with confidence. Contact me if you want to learn more about building wealth!

Wealth, simply put, is the stockpile of resources you have at your disposal.

The rarer the resource, the “wealthier” you are.

On a surface level, that definition conforms to the common stereotypes of wealth. Can we all agree that a stacked bank account is a rare and precious resource?

But dig a little deeper, and you’ll find that wealth takes many shapes and forms.

Your knack for finding the right word at the right time?

Your secret talent for creating with your hands?

Your indestructible support network that’s there for you, no matter what?

Those are all resources. Those are all rare. Those are all wealth. They just don’t have a dollar value… yet.

To be fair, you shouldn’t monetize all of your assets, especially if those assets are people. Leveraging your network for money is something that must be done with the utmost care and respect, if at all.

But the fact remains that you likely possess an abundance of resources that could be converted into increased cash flow. Your talents, your ability, and your time are all precious assets that have the potential to boost your income.

The takeaway? When you break it down, you’re wealthier than you may think. The real question is, how will you monetize the resources you’ve been given?

Self-improvement is big business.

In 2020, the self-improvement industry was estimated to be worth $10.4 billion in the United States.¹

But here’s the catch—most of the advice you get from self-improvement gurus is either really simple or generic to the point of useless.

So here are five completely free self-improvement moves you can make that can actually help you feel better, starting today.

Get some sun

Sunlight, especially in the morning, offers a host of benefits, including…²

• Stronger eyes (just don’t look straight into the sun!)
• Healthy weight loss
• Stronger immunity
• Boosted emotional well-being
• Higher quality sleep

As a rule of thumb, try to get sunlight before noon for between 5 to 30 minutes. Don’t wear sunglasses or view the sunlight through a window, and get out of the shade for maximum results.

That’s it. Spend 5 minutes each day in the sun and see if you notice results!

Optimize your sleep

Getting better sleep can transform your life. It can improve everything from mood to focus to your ability to build muscle.³

But it’s often low on the priority list. How many times have you heard your overachieving friend say “I’ll sleep when I’m dead”?

Don’t be like them! Implement these simple strategies to get the rest you deserve…

• Get sunlight early in the day, preferably within 60 minutes of waking
• Dim the lights before bed
• Keep your room cool and dark

Above all, aim for 8 hours of sleep each night!

Kick your self-improvement addiction

Let’s face it—self-improvement can swiftly become counter productive. At first, you get that rush. You’re setting goals and crushing them. You’re noticing improvements in mood, your productivity, your physique. It’s like the answer you’ve been waiting for!

But reality slowly settles back in. You start noticing inefficiencies in your routine. Bad habits creep back in. The world is still on fire. You’re still human.

That’s where you have a choice. You can throw yourself deeper into the self-improvement rabbit hole, optimizing every moment in the hope that one day, you’ll finally feel okay.

Or, you learn the ultimate self-improvement technique of them all—self-acceptance. Sure, you make tweaks and deal with problems. But you acknowledge that, at the end of the day, you’re still human. You take the good with the bad. You do your best to treat other people—and yourself—right.

So wake up tomorrow and get some sun, first thing. Before bed, dim the lights well in advance and turn on the fan. Wake up and see how you feel. And if these tips don’t fix all your problems, don’t sweat it—celebrate the improvement, and remember that you’re still human. And that’s a good thing, because that means you’re, well, you!

It can sometimes feel like there’s a life insurance language barrier.

Words and ideas seem designed to confuse and trick you. But you might be surprised by how simple the concepts and terms actually are once they’re explained.

Consider this article your personal life insurance phrasebook to help you cut through the lingo and better understand the products you’re exploring. Let’s start with the basics!

Policy and Policy Holder

A life insurance policy is a contract between you and an insurer stating that they will pay out a certain amount of money upon your passing (or another event specified in the policy). The policyholder is the person who owns and controls the policy.

Death Benefit

The money that gets paid out from the policy when you die.

Beneficiary

You, as the policyholder, get to decide where the death benefit will go. The people who receive the money are called beneficiaries. That could be a spouse, child, or anyone who depends on your income.

Premium

The payment you give the insurer in exchange for the life insurance policy is called the premium. You might have to pay these monthly or annually.

Term Life Insurance

Some life insurance covers you for a specific amount of time. Your beneficiaries only receive the death benefit if you pass away during that time frame. This is referred to as Term Life Insurance. It’s typically considered the most straightforward form of life insurance available.

Permanent Life Insurance

Another type of life insurance lasts for your entire life. This is called Permanent Life Insurance. There are multiple subcategories of permanent life insurance.

Cash Value

Some permanent life insurance options come with a savings component. This is called a Cash Value. You can usually borrow against the cash value and spend the money on whatever you please!

This isn’t an exhaustive list of life insurance words and phrases, but it should be the minimum to get you started. Consider reaching out to a financial advisor to act as your translator as you dive deeper into the language of life insurance!

Automating your finances can take the pain out of wealth-building behavior.

You know how it goes. The thought flashes through your mind—”I need to start saving money!”

And then… well, that’s it. You read a few articles on saving and try to spend less, but after a week or two your mind has moved on.

Why? Because all forms of positive change are energy intensive, at least at first. And your brain, smart as it is, likes conserving energy.

So to jump-start saving, you need to take several one time actions that are borderline thoughtless.

Enter automation. It’s a small step with massive return potential.

It’s simple… • Log in to your online banking account • Set up a deposit • Choose to make the deposit recurring instead of one time

Like that, you’ve set the stage for dozens of wealth-building actions well into the future.

And what did it take? A few taps over a few minutes.

So what are you waiting for? Automate your savings right now. I’ll wait! Even if it’s $5 per month, it’s a step in the right direction—to build wealth for your future!

Starting your own business can be a challenge.

It will test your talents, your mental toughness, and your ability to adapt. And those tests—if you pass them—can spark extraordinary growth.

Here are four ways entrepreneurship will change you.

You’ll develop self reliance.

Entrepreneurs need to learn to solve their own problems, or fail. They don’t have a team to handle the daily grind of running a business.

Instead, new entrepreneurs handle everything from product development to accounting. It’s a stressful and high stakes juggling game.

But it can teach you a critical lesson: You’re far more resourceful than you thought. You’ll learn to stop waiting for help and start looking for solutions.

You’ll discover loyal friends.

One of the downsides of entrepreneurship is that it may expose toxic people in your circle. They’re the ones who might…

▪ Mock your new career

▪ Feel threatened by your success

▪ Try to one-up you when you share struggles

As you and your business grow, you may need to limit your interactions with them. They might be too draining on your emotional resources to justify long-term relationships.

Rather, your circle should reflect values like positivity, encouragement, and inspiration. Those new friends will support you through the highs and lows of entrepreneurship.

You’ll learn how to manage stress.

Late nights, hard deadlines, and high stakes are the realities for entrepreneurs.

To cope, you must build a toolkit of skills that can carry you through the hardest times. Otherwise, you may crack under the pressure and lose any progress you’ve made.

It comes down to one key question: Why do you want to be an entrepreneur?

Are you driven by insecurity? Or by vision?

If you’re trying to prove a point to yourself or others with your business, you may fall apart at the first hint of failure.

If you’re driven by vision, you’ll see failure as part of the process.

Examine your motivations. Over time, you’ll grow more aware of your insecurities. Talk about them with your friends, families, and mentors. As you bring them into the light, you may find they have less and less power.

Entrepreneurship can spark an explosion of professional personal growth. You’ll grow up. You may start with an employee mindset, but you’ll mature into a leader. That’s how entrepreneurship will change you.

P.S. If this seems daunting, start with a side hustle. It can ease you into the role of entrepreneurship without throwing you into the deep end too soon!

Peak human performance.

Operating at your full potential consistently sounds too good to be true. We all want to accomplish more at our jobs and around the house. But a million little distractions always seem to throw us off course. Sure, we all have flashes of inspiration, but many of us settle for a fraction of our true capabilities.

But there’s a better way.

Researchers have discovered that high productivity doesn’t have to be limited to short bursts. There’s actually a very specific state of mind that results in stunning levels of output that’s triggered by certain psychological factors. It’s called flow, and understanding how it works may change your life.

What is flow?

Technically speaking, “Flow is a cognitive state where one is completely immersed in an activity… It involves intense focus, creative engagement, and the loss of awareness of the self.”¹ Think of it like this: what’s your favorite quarterback thinking about when he’s making a game winning play? Almost nothing else besides what he’s doing in the moment. That state of total concentration on the task at hand is what defines flow. Other sensations follow. Decisions seem to make themselves. You lose awareness of what’s going on around you. Time either seems to fly by or you see things in slow motion. And, most importantly, you feel awesome. You’re “in the zone.”

Achieving flow

You’ve almost certainly achieved this flow state at least once in your life. But it probably doesn’t seem replicable. You were just on during that highschool football championship game or playing that local show with your buddies or giving that presentation. Fortunately, research hasn’t just described flow; it’s discovered a few factors that contribute to achieving peak performance.

The first flow key is to establish goals.

Your brain loves objectives. It loves feeling like it’s accomplishing things. Having a clear outcome in mind will help you tune out the distractions that don’t matter and hone in on what does. Identify your desired goal, outline in detail how you’ll accomplish it, and then proceed to the second flow key.

The second flow key is the balance between challenge and boredom.

Very often, facing a difficult task doesn’t naturally induce deep focus. It actually can make us feel anxious, scared, and avoidant. However, a mundane and simple activity, like washing dishes, doesn’t require the brainpower to trigger intense concentration.

Flow lives in the happy medium between those extremes of crushing anxiety and mind-melting boredom.

You have to have the confidence that you can actually crush the challenge at hand, but also not find it too easy or boring. Dial in your ideal difficulty level before you start a project. Expect more from your mundane responsibilities and get help for the daunting ones. Raise the stakes for your performance but make sure you don’t drown in the process!

The third flow key is immediate feedback.

Let’s say you’ve hired a coach to help you master a skill. Would you prefer them to write up an annual review on your progress or give you tips, critiques, and advice as often as possible?

Think about all the bad habits and practices you would develop without their regular oversight. You might discover you’ve been doing things wrong for a whole year if you’re only getting an annual checkup!

Instant feedback allows you to constantly refine your process and execution while also setting up micro goals for you to accomplish. It’s a simple way to add a dash of challenge to your daily routine that locks you in and helps you achieve peak performance.

Seek out frequent feedback. Ask your boss or co-workers or coach to give you critiques as often as possible. That constant stream of input will either make you feel good about what you’ve accomplished or give you new obstacles to overcome!

Achieving this state of peak performance isn’t always easy. There’s a cycle to entering flow that includes a difficult first phase. It’s hard work for our brain to enter into total focus and concentration. This first barrier is where most of us quit because intense concentration doesn’t feel great at first. But overcoming that initial resistance can open up a whole new world of productivity and performance. Use the three flow keys, push past the opening waves of discomfort and get into your zone! Sources

Stock images of freelancers and entrepreneurs are essentially identical.

They feature a wide range of people in neat home offices and coffee shops bent over laptops in deep focus. And that reflects how most of us think about them; freelancer and entrepreneur are two different words for people who work outside the traditional employee/employer world.

But there’s more to the picture than stock photos let on. Here’s a look at the difference between freelancers and entrepreneurs.

Freelancers trade time and skill for money

The word freelance comes from the early 19th-century when English authors attempted to describe medieval mercenaries. Most knights in the middle ages pledged their loyalty to a lord. They swore that they would use their skills and resources to support their sovereign in times of war. But there were many knights who worked as mercenaries. They would fight for whoever had the most coin. Sir Walter Scott referred to these soldiers for hire as “free lances” in his novel Ivanhoe, and the name stuck.¹ Soon it was used to describe working without long-term commitments to a single employer.

Freelancers are essentially modern day mercenaries. They have a skillset that’s in demand and they sell it off to the highest bidder, typically for a short period of time or a specific project. They trade their skills and time for money, and then move on. A freelance graphic designer, for instance, might get hired by a small business in need of a new logo. They pay the designer a set fee, the designer delivers the logo, and the two parties part ways. The freelancer doesn’t have any more responsibilities towards the small business beyond completing a specific task, and the small business pays the freelancer a fee.

The main appeal of freelancing is flexibility. You get to decide for whom you work, the hours you work, and from where you work. Yes, you’ll have deadlines, but you get to decide how you’ll get everything done. Freelancing is also a great choice if you’re currently an employee and want to start exploring your options. Striking a balance with your side-gig and your main income stream can help bring in extra money to cover debt, save for retirement, or just have nicer vacations.

But freelancing has drawbacks. You’re still completing tasks for other people, you have to manage projects by yourself, and work can sometimes dry up. If you can’t maintain a healthy time balance with your main job, that work could suffer.

Entrepreneurs trade their team for money

Defining entrepreneurship is tricky. Freelancers and entrepreneurs have many things in common. But they end up working on different levels of risk and solving problems in very different ways. Remember how we said freelancers were like mercenaries, fighting wars for other people in exchange for money? Entrepreneurs are like the lords mercenaries fight for. They make decisions, assume responsibility for outcomes, and build things that last even when they are long gone.

A more modern example would be your favorite local restaurant. The owner of the business doesn’t take your order, pour your drinks, and prepare your food. They have a team that does all of that for them. But they had the vision of owning a restaurant, may have reached out to investors, and then took on the financial uncertainty of starting the restaurant. They make the top-level decisions but rely on a team to ensure that the day-to-day operations work smoothly.

Starting a business is risky. Only 25% make it past their 15th birthday.² But the advantage of successfully starting a business is that it will eventually reach a point where it runs on its own. Apple didn’t need Steve Jobs to operate. Amazon doesn’t need Jeff Bezos. Neither does your favorite local restaurant. They’re all built on a system and have teams that empower them to grow and accomplish more than they could independently. A freelancer’s income, however, is tied directly to the time they invest. If they get sick, they can’t earn. Losing just a single client could be a significant loss of business.

Interested in freelancing or starting up your own venture? Let’s talk! There are perfect opportunities out there for you to start exploring your potential.

Here’s a misleading fact: the United States has the largest economy in the world.

It makes up nearly a quarter of the global economy and has a GDP of roughly $21.44 trillion.(1) But that statistic doesn’t tell the whole story. The truth is that only a few Americans have truly mastered how money works and the rest are lagging behind. Despite having the largest economy, the U.S. ranks 13th in GDP per capita.(2)

And it all begins with the state of financial literacy.

Knowing how money works has never been more important. But it’s becoming an increasingly rare skill among Americans. Here’s a quick look at the significance of financial literacy in the modern world and how ignorance is hampering our ability to build wealth.

The importance of financial literacy is increasing.

Americans are faced with a complex world. We have access to unlimited information on everything under the sun, endless opinions on every issue, and infinite options for entertainment. Money is no exception. The two tried and true safety nets of the past—social security and pension plans—can fall short, so we need to figure out how to provide for our own futures. The options for how to save and grow our money are myriad. Now it’s on us to figure out how to build wealth, save for retirement, and leave money behind for our kids.

Understanding how money works isn’t just helpful for achieving those goals. It’s absolutely mandatory. Saving, budgeting, and the power of compound interest are just a few of the concepts that you’ll need to master before you can start building your financial future.

Financial literacy is decreasing.

Americans are less able to plan and provide for their futures than ever. Financial literacy slid from 42% to 34% between 2009 and 2018.(3) And that number is significantly lower for Millennials than for the rest of the population, with only 17% able to answer 4 out of 5 basic questions about finances.(4) That ignorance shows in our decision making and our inability to build wealth. A stunning 33% of Americans have nothing set aside for retirement.(5) 44% don’t have enough saved to cover a $1,000 emergency.(6) We’re surrounded by money and opportunity but don’t have the knowledge to convert them into personal wealth.

There are several reasons why financial literacy could be decreasing. Financial education is not widely taught in public schools, with less than half of states requiring a personal finance course for a highschool diploma.(7) Perhaps we’ve just been slow to keep up with the rapid changes in the global economy. Or maybe some people benefit from having a large chunk of the population stay in financial ignorance. The lack of financial literacy is most likely a combination of all these reasons! The real question is, do you know how money works? And if not, where will you learn?

There are plenty of reasons for not buying life insurance. There just aren’t many good ones!

Every year, Life Insurance Marketing and Research Association (LIMRA) collects data on why people aren’t buying life insurance. Here are the three most popular objections to owning life insurance and a few points to consider if they’re stopping you from protecting your family.

“Life insurance isn’t that important.”

This is the #1 reason Americans don’t buy life insurance. 67% say they have other financial priorities.¹ And there’s an extent to which that’s understandable! Your mortgage, car payments, and college tuition are incredibly important for the wellbeing of your family. They’re the building blocks of your lifestyle and empower your loved ones to pursue their dreams.

But life insurance helps ensure that your family can meet those financial obligations and maintain their lifestyle, no matter what. It replaces the income they would lose if something were to happen to you unexpectedly. Life insurance is important because you have other financial priorities!

“Life insurance is not affordable.”

65% of Americans think they can’t afford life insurance.² But it’s incredibly common to overestimate the cost. LIMRA found in 2018 that 44% of Millennials thought life insurance was 5 times more expensive than it actually was.³ To put things into perspective, a healthy, smoke-free 25 year old can expect to pay about $31 per month on life insurance.⁴ That’s roughly the same as subscribing to several streaming services combined.⁵ A young person can protect their financial future for the same monthly cost as binging their favorite shows and movies.

“Do I really need life insurance?”

The third most common reason Americans don’t have life insurance is because they don’t think they need it. There are many reasons for this. Maybe you’re thinking some of these yourself. “I’m young and healthy, I don’t have a family,” and the list goes on. A 23 year old without financial dependents like a spouse, aging parent, or child might legitimately have bigger financial fish to fry. But anyone with people in their lives that depend on their income to make ends meet and to pursue their dreams should have life insurance coverage. It’s not about how healthy you feel or how much you’ve saved up. It’s about protecting your family regardless of what life throws your way. Would you skip out on car insurance because you’re a good driver? Or ignore homeowners insurance because you have a fire extinguisher?

So the question now becomes, why don’t you have life insurance? Did any of these objections ring a bell? I would love to talk sometime about your concerns around securing the right protection for your family!

Hitting the snooze button.

Brewing coffee first thing in the morning. Working out right after you leave the office. Our lives are full of actions that we’re almost unaware of. Many of them just help us get little things done more efficiently. But some habits can have a huge impact on our lives in either a positive or negative way. Here’s a quick breakdown of how habits work and ways to “trick yourself” into better behavior patterns.

Your brain craves efficiency. It looks for the path of least resistance when it comes to using energy. Making decisions takes a lot of brain power. Too many choices in a day can leave you feeling mentally exhausted, so your brain looks for ways to cut corners. It starts automating little decisions that you make repeatedly. Brushing your teeth, tying your shoes, and checking your social media are choices you’ve made so often that your brain stops consciously weighing in and seems to just spontaneously make you do them.

So that’s why your brain likes forming habits. But the mechanics of how a habit forms is essential if you’re trying to upgrade your unconscious behaviors.

Cues, Routines, and Rewards

A habit can be broken down into three basic components. It starts with a cue. That’s any kind of trigger that makes you want to do something. Actually performing the action suggested by the cue is called a routine. Following the routine usually results in some kind of reward, either physical or psychological.

So let’s say you’ve developed a habit of eating a cookie with your morning coffee. You wake up, put on the pot, and brew a delicious cup of joe. You instantly start craving the cookie when you smell that medium roast goodness. That’s the cue. You reach into the jar, grab the biggest chocolate chip cookie you can get your hands on, and take a bite. That’s the routine. And the tingling joy and comfort you feel when that life-giving treat hits your tongue? That’s the reward that brings you back morning after morning. But the consequence might be that you’ve put on a few unwanted pounds in the last couple of months.

How to use the habit pattern

It’s easy to see how certain habits can lead to some undesirable outcomes. We tend to form habits around anything that rewards our brains, whether it’s junk food, caffeine, or dangerous substances. But our brains also like things such as observing progress and accomplishing goals.

How can we use this to encourage good habits? Here are a few ideas:

• Start really small. Break your desired habit down into pieces and try to regularly perform each one. You might be surprised by how good it feels to accomplish something, which can prompt you to make more and more progress.

• Reward yourself. Some activities are very rewarding in the moment. But not everything that’s good for you leaves you feeling accomplished right away. Try something like only playing video games after 30 minutes of reading!

• Be patient. Habits don’t form overnight. You’ll probably mess up before it sticks. Don’t sweat the little failures and keep trying until that habit becomes second nature!

You can also use this knowledge to break bad habits. Try to identify the cues associated with the habit and avoid or eliminate them. Also, consider ways that you might actually be rewarding yourself for bad behavior. It’s worth asking friends and sometimes professionals for insights into your habits!

“Money can buy you happiness.”

Well, not exactly. But money CAN help remove stressors that impact your happiness.

A new study by Penn State University revealed that happiness increases with income. On the surface, that may appear obvious.

But in fact, people who equated their self-worth with money were LESS satisfied with their lives.

So it’s not the money itself that brings happiness.

Instead, money can provide security and freedom. It helps eliminate the fear of going without, and opens up choices for how to live your life.

Think of it as a foundation for investing in the things that matter most, like…

- Your relationships

- Your career

- Your life mission

If you only take one thing away from this article, let it be this…

Money itself isn’t the goal. It’s a tool to help you achieve your goals.

So keep your eyes on what matters most, like your family and mission. Then, take an inventory of ways money can help you safeguard and pursue the things you value. That’s how money can help you “buy” happiness.