BASIC SUCCESS PRINCIPLES: PART II

Four facts of life:
1. We are all egotists.
2. We are more interested in ourselves than anyone else.
3. Every person you meet wants to feel special.
4. There is a craving in everyone for the approval of others, so that he can approve of himself.

We all need to have a good image of ourselves and there are loads of books on self esteem and such. A lot of the time, I find that we are too caught up on ourselves and if we take our eyes off of ourselves and onto other people- life is more balanced!

It is good to think well of yourself and, when you can do that, you are free to think well of others. There is no need to put someone else down to make yourself feel good.

People with low opinions of themselves are usually bully’s and they like to put people in their place. They attack first so that people will not really get to know them and their insecurities.

Our usual instinct when faced with such people is to get angry or defensive. I have found that if I make a serious effort I can find something I like about everyone and tell them so in a sincere manner.

In my line of work, I deal with a lot of lawyers and, at times, I am at the wrong end of their attacks. In a courtroom setting there is usually a lot of posturing and I have found that by treating these people with respect (whether they seem to deserve it or not) I have developed good friendships in situations which could have been acrimonious for months or years.

Help the other fellow feel better about himself. People act or fail to act largely to enhance their own ego.

Be the kind of person that people feel bad when you leave the room and not when you enter.

Jacques
CreatingWealthThatlasts

BASIC SUCCESS PRINCIPLES !

There is a lot of information on how to succeed in business and most of it is very technical. It seems everyone is an expert but you rarely know how successful the people giving the advice are.

To keep it on a simple level consider the following:

1. 66% to 90% of all failures in business are due to failures in human relations. Getting along with people is crucial. The stereotype successful business tycoon who lords it over everyone and seems to succeed with bad manners is a myth. If you cannot get along with people, you cannot succeed in business or in life on a long term basis.

2. Personality issues such as timidity, shyness, and self consciousness are all basically problems in human relations. These are areas in people’s personalities that will stunt their growth, especially in business.

3. We all must learn the necessary skills in dealing with people. There are no gimmicks only principles

I will be covering this in more detail in the coming days and I wanted to lay down a basic foundation. A lot of people want to be in business for themselves, however, they neglect the most important and elementary element: self improvement.

This is a lifetime process which includes reading, listening to CD’s, attending seminars, and developing mentoring relationships. It requires a time and financial investment.

Most people will think nothing of going out and spending $50-$60 on a meal but would never pay that much for a book or to attend a seminar.

Where are you in the self improvement process?

Jacques
CreatingWealthThatLasts

HOW MUCH STUFF ARE YOU KEEPING?

I travel about a 1,000 miles per week as part of my business and I am amazed by how many self storage places are being built all over the place. We have become a society of consumers that have no place to put all our stuff.

We have been conditioned to buy, buy, and buy some more! I learned several years back to make a thorough assessment of all of our belongings at the end of every year and to discard anything that was not being used. Clothes, books, TV’s, cars, you name it- it goes!

We used to try to sell things at garage sales and essentially found this to be a big waste of time for what little money we got. We have started to give things away.

This provides tangible and intangible benefits. You are in essence helping out other people and making room to receive yourself.

This fall we gave a car away. It had about 135,000 miles and was running well, however, we did not need it. We gave it to a friend who in turn gave it to his daughter in law who needed a car to get to work.

Have you ever gone into your clothes closet and seen clothes that you have not worn in years. What gives? Empty your closet and give it away.

I emptied one of my book shelves and gave well over 100 books to our local library. Once you start this process you will realize that you are actually simplifying your life.

Give, give, and give some more!

Jacques
Creating Wealth That Lasts

GIVING THANKS IN ALL THINGS!

Having a thankful spirit regardless of the situations we may be facing is a crucial step in living a stress free life. We all have had, will have, and maybe are in a crisis in our lives. Our lives ebb and flow with victories, disappointments, challenges, setbacks, and losses.

That is life for all people who have walked on this earth. I have learned, as the Apostle Paul has said, to be content in all things; whether abounding or in need.

Our needs may not be material or financial but spiritual, physical, social, or mental. Today’s world is in turmoil but we can be at peace if we have an eternal perspective and hope. As a Christian, I have a hope and assurance that God is ultimately in control of everything and especially my life. Nothing escapes God or surprises Him.

I have learned that He will supply all of my needs, as I focus on Him and put Him first. He has never let me down and never will. I might not have felt like He was there, but He was.

As we live our lives one day at a time, let us be thankful for the little things. As an American, I feel blessed to be living in this country. It is not a perfect country but it is the best country for me. Let us count the good and not the bad. America has weathered many a storm and this too shall pass.

Be thankful for being able to breath, work, eat, walk, live in comfort, have family, have a future and hope.

Be blessed to be a blessing. Be thankful!

Jacques
CreatingWealthThatLasts

HANDLING LIFE’S UNEXPECTED EMERGENCIES!

A few weeks back I wrote about the experience I had with my wife when she developed an irregular heartbeat. This had been an especially challenging time and with a lot of prayer and faith, we eventually got a good report.

This Friday I had planned my schedule tightly and I had a full weekend of reports and projects to work on that where time sensitive. We had gone up to our home in northern Maine, as we had carpenters coming in to do some work and we planned to spend the weekend there.

In the morning, my wife started to feel uneasy and we decided to drive right away to Bangor, a 3 ½ hour trip, in order to make plans to see her doctor. We encountered inclement weather on the way down and eventually ended up at the emergency room at Eastern Maine Medical Center.

My wife was taken in for tests and while we were waiting for the results, here comes my son, his wife, and three daughters into the emergency room. My daughter in law was having severe stomach pains and she was admitted as well. A few hours later my wife is in one room in the emergency room and my daughter in law in another room.

As if this wasn’t enough, my son Jason starts feeling very weak and ends up being admitted and also put into a separate room in the emergency ward. Come to find out he was fighting a severe stomach flu and was dehydrated!

My wife gets a good report and is discharged. We had come to the emergency room at 5 PM and it is now 9:30 P.M. My daughter in law was discharged at 10:30 P.M. ( she had some type of inflammation) and I stayed with my son until 1:15 A.M. and he was released after being stabilized.

Talk about a stressful situation. It puts life in perspective real quick and shows you what’s really important. Believe me when I say prayer works and God answers prayer.

My carefully planned schedule was suddenly changed but you know what, God had arranged this so that we would all be together at the same time when we all needed one another for support and comfort.

How to handle these emergencies and changed schedules? Trust in God, pray, and believe!

Jacques
CreatingWealthThatLasts

TIME MANAGEMENT TECHNIQUES !

Time is our most precious commodity. We can’t make more time and once it’s gone-it’s gone. We must use this commodity wisely and we all need adjustments along the way. It’s the little things that sometimes make a big difference.

Here are a few things I have incorporated over the last years that have helped me take more control of my time.

1. I always gas up the car on my way home. I travel a lot and even if the tank is ¾ full, I make sure it is full for the next day. I can start my day without having to take time to go to a gas station. Also, living in Maine in the winter months has its challenges. If your gas tank is not full, you risk the danger of ice buildup in the gas tank, which can lead to problems.

2. I leave on time-all the time. I make sure everything is ready the night before and I give myself an extra 30 minutes to make sure I have not missed anything.

3. I arrive on time-all the time. I make sure I am early for every appointment. Is this a waste of time? Certainly not. I bring business books along to read (should I have extra time), I have a list of contacts with me that I can call, and I have the time to review notes and plan for my meetings.

4. Leave your car keys, wallet, cell phone, brief case and cash in the same place. The next day, it’s all there waiting for you. No need to rush all over the place trying to find things.

5. Always have at least 2 sets of keys for everything: cars, house, locks, etc. If you misplace something-no big deal you have another set.

6. If you are doing something important-don’t answer the phone. The phone rings to tell you someone is calling-you have a choice in the matter. If you are working on an important item, a phone call can distract you and gobble a lot of precious time. That’s why they make answering machines.

7. Invest in a good GPS system. Like I said this is an investment. If you travel as much as I do and you are on a tight schedule, getting lost is not the thing to do. I have found this little device to be a big timer saver. Not everyone is able to give good directions.

This list is a start and I think I have saved you enough time for you to take a nap! This also is a good time technique. If you are fatigued in the middle of the day or after you get home from work, take a power nap-1/2 hour to ¾ of an hour and you will feel refreshed to finish your day with a bang.

Jacques
CreatingWealthThatLasts

DO YOU HAVE CONTROL OF YOUR TIME?

D
You lose control of your time when you:

1. Start late for work or an appointment.
2. Arrive late, making excuses.
3. Allow interruptions to detour your planned activities.
4. Become rushed and pressured and, therefore, under stress.
5. See unforeseen events as “big deals”.
6. Become the victim with thoughts like “why me?”
7. Feel exhausted and depleted at the end of the day.
8. Finish your day complaining about what went wrong.
9. Measure your day in terms of what didn’t get done instead of what did.

You maintain control of your time when you:

1. Plan your activities a day in advance.
2. Prioritize those activities.
3. Start on time.
4. Show up on time.
5. Refuse to get side tracked.
6. Eliminate disruptions.
7. Don’t get emotionally upset.
8. Maintain a positive attitude in all things.
9. Plan your work- then work your plan.
10. Complete your day by setting your agenda for the next day.

Where do you see yourself?

Jacques
CreatingWealthThatLasts

ARE YOU A PERSON OF YOUR WORD?

We must be one in what we say and what we do. Are you? I wasn’t always this way and I had to learn to master this area of my life if I really wanted to succeed in a substantial way.

Why is this important? If we are not people who keep our words and do what we say we will do, we will surely lose the respect of others and eventually of ourselves.
Our self respect in large part is based on our actions and words. They must be in harmony. No one can succeed on a long term basis without this key element in their lives.

Do you know people that you know you cannot count on based on your experience with them? They talk the talk but do not walk the walk. I have been led astray by a lot of people who fall in this category and I have only myself to blame. I have learned to allow people only two chances. The first time it’s my fault, the second time their fault, and there is no third time.

As we progress in life we will continually come in contact with people that will prove to be essential in our long term success and we must be perceived as people that can be trusted to do what they say they will do.

It not only shows respect for people but it demonstrates that you can be counted on when the going gets tough. True success in life is being true to yourself at all times.

Be one in word and spirit!

Jacques
CreatingWealthThatLasts

ARE YOU DISCIPLINED?

One thing I have learned the hard way is to be disciplined in all areas of my life. Have I been successful all the time? No! What areas? Physical, mental, spiritual, financial, social, and family.

We need discipline in all the major areas of our lives. Time management is a discipline that applies to all the above categories. In my business, I have to make appointments several weeks in advance, keep track of what needs to be done by then, and constantly monitor my progress as I get there.

Over the years I have had to develop the discipline to plan each day in advance, each week in advance, and generally projects months in advance. At the end of March I am off to Florida for a business and family trip and I already have my list of what I need to bring for both the business part of the trip and the family part.
When the time comes up for the trip I don’t need to feel stress, as I have already planned and everything will be ready.

If you are in business or self employed you will not be able to survive if you are not disciplined in your time management. There are no short cuts or excuses!

One of my pet peeves is people that are late for appointments. I would rather be an hour early than 5 minutes late. I have a client that I have been meeting with once per month for over a year. He has never been on time for one of our scheduled appointments. I have finally solved this dilemma in this way: I show up ½ late and he is only 15 minutes late! If he wasn’t a client, I would have severed this relationship a long time ago.

What areas do you need to be disciplined in?

Jacques
CreatingWealthThatLasts

SURVIVING IN THESE ECONOMIC TIMES !

If you want to survive playing someone else’s game, you have to play by their rules. So it goes when you have a boss. I spent 10 years teaching at the high school level and I worked for a vocational school and I traveled between 4 different high schools in those 10 years.

In those ten years, I had to learn to live with 2 vocational directors and 4 high school superintendents. All these people had different personalities and expectations, sometimes opposing expectations. It was like trying to deal with 6 different bosses.

I remember all the frustration and anger I went through trying to keep everyone happy. One day a more mature teacher took me aside and provided sound advice:

1. You can’t fight and change the system, it’s a losing battle.
2. When you are in a specific school, follow all of their rules with a smile.
3. When dealing with the vocational director, do the same.
4. It doesn’t matter if you feel it makes any sense or not.
5. If you can’t do the above, find another occupation.

I did follow his advice for several years and then switched career paths.

I recently had a conversation with someone who’s salary was cut (everyone else’s salary was cut as well in this particular business ) due to the economic conditions we are experiencing. He was not a happy camper. My advice, play by the rules. A cut in pay is better than no pay.

I recently talked to a friend of mine who is a nurse. She was making $32/hr and had been with this particular hospital for 25 years and was downsized. She applied for work in a nursing home and was offered $22/hr and she asked for $25/hr (she stated she was very insulted by the offer). The rules of the game with the nursing home where that the particular position that was open paid $22/hr. Someone else got the job.

It’s tough to swallow at times but the rules are the rules. The only way you can change the rules is to be your own boss. Then the customer makes the rules!

Jacques
CreatingWealthThatLasts

WHERE ARE YOU LIVING?

We all have three places to live: past, present, or future. Where are you living?

At times we live in the past and focus on all of the could of’s. What I could have done, should have done, did not do, etc. This is not a good place to live. We all have had our challenges, setbacks, loses, and, yes, victory’s. We need to learn from the past and move on. Even our victory’s can hold us back if we are always looking back to the good old days to the detriment of the future.

Speaking of the future, that’s a hard place to live also. One day I’ll take that vacation. One day I’ll spend time with my kids, wife, friends, etc. One day island is not the place to live! We postpone living in the present believing that there will be ample time in the future to do all those things we want to do. Not necessarily.

The only moment we are guaranteed is the present moment. So what to do? If you are working-work. If you are on vacation-be on vacation. If you are with your family-be with your family. I am preaching to myself.

In today’s society we are tied to our cell phones, emails, and pagers. God forbid that we should miss a phone call! What did we do before cell phones and emails? We survived obviously.

In my traditional business, I operate three offices and all my phones are forwarded to my cell phone so I do not miss any messages. I am constantly monitoring my emails. My schedule is booked weeks and months in advance. So busy! To what purpose? Are we living to work or working to live?

We must all learn to live in the present. It’s all we’ve got at this time and it’s the best place to live!

Jacques
CreatingWealthThatLasts

ARE YOU WAITING TO WIN THE LOTTO?

Listen to this: Of people making less than $35,000/yr, 40 percent said the best way to have $500,000 at retirement age is to win the Lotto. Your chances of winning the Lotto are 1 in 15 million. You are 10 times more likely to be struck by lightning.

People repeatedly keep putting off increasing their savings or emergency fund by fooling themselves into believing that they will win big or get an unexpected wind fall.

What happens is that these types of people get to retirement age and rant and rave and complain about their circumstances and they look to the government and will vote for any politician who will dole out the cash.

19% of people who file for bankruptcy are college graduates. Education does not make you financially wise. You might just end up broke at a higher level!

The point I am making is that WE are RESPONSIBLE for taking charge of our lives. Not the government, not our parents, not our neighbors-US.

I have covered a lot of financial topics over the last weeks geared toward getting people to be PASSIONATE about getting and staying out of debt. It is not that hard to do. It may be more difficult if you have a large debt load but it can be done.

The bottom line is that WE have to accept that responsibility. We are the authors of our FATE. We are writing our lives by the choices we make.

Today’s media is focused on the “VICTIM” mentality. It’s not our fault. We all need counseling, Dr. Phil, or Oprah!

No! In large part it is our faults. It’s time to grow up!

Jacques
CreatingWealthThatlasts

HOW LONG COULD YOU LAST IF YOU LOST YOUR JOB OR BUSINESS?

49% of Americans could cover less than one month’s of expenses if they lost their job. Frightening isn’t it? My last blog stressed that you needed to put aside at least $1,000 and then increase this to include 3 months and then 6 months of living expenses.

My wife and I had tried this on several occasions and we could never seem to put the money aside, as there was always an emergency that came up that required that cash! Sound familiar.

Right now one of my homes needs another roof. We had a new roof put on this property in 2001. The contractor is not returning my calls.

We put a new roof on another one of my properties a few months back. Thank God that we had the cash to pay for it. This is for emergencies only and we have another account for 6 months of living expenses that we are continually adding too.

It takes work and diligence. We made a game plan to sell those items we where no longer using, stop all unnecessary spending and put all of this away. You really need to make this a priority.

Look at this statistic. The average American family with a $40,000 annual income would normally have a $850/mo. house payment, a $350/mo. car payment, and an average credit card bill of $12,000. You can see what would happen if the income would suddenly stop.

The media is lamenting the fact that consumers are not spending and saving instead. It sounds as if this is bad. No way!

When my wife and I finally had the emergency fund set up and 3-6 months of income set aside, it was a great feeling and still is. It eliminates unnecessary stress.

You may think this cannot happen for you. It can. It did for us but it did not happen overnight.

Jacques
CreatingWealthThatLasts

IT IS WORTH THE EFFORT!

Living debt free is worth the effort. The discipline, sacrifice, and toil will pay back huge dividends. How to you eat an elephant? One bite at a time. How to you get out of debt, one step at a time.

It’s all about developing new habits. What about the new car habit? You see it all the time: no interest charged, get a $3,000 rebate, no payments for a year; whatever it takes they want to sell you a new car.

The minute you drive the car off the lot that new vehicle is now a used vehicle and it has lost 10-15% of its value in that short time span. Why lose so much so quick? Buy a good 2-3 year old vehicle with low miles and save thousands upon thousands of dollars.

In my business, I drive 40,000 to 45,000 miles a year. It would be foolish for me to buy a new vehicle every 2-3 years. I drive my cars up to 250,000 miles and then give them away to a vocational school and they use it with their students as a tool.

My wife drives very little and her last vehicle lasted her 11 years! In that span of time my neighbors have had numerous new vehicles, all the latest styles with all the bells and whistles. The difference? We pay cash and still get to where we need to be.

This is just one habit that can save you substantial amounts over a lifetime. Here is another small step. Save $1,000 in an emergency fund. Write it down as a goal.

Once you have achieved this, the next goal is to save three months of living expenses. It’s a stair step method that will get you started to peace of mind.

Till next time.

Jacques
CreatingWealthThatLasts

DON’T BE FINANCIALLY ILLITERATE!

Ignorance is not lack of intelligence; it is a lack of know-how. No one is born financially smart. We all need to learn. The problem is that the education system does not teach financial literacy. From high school to college, I did not have one course on how to manage finances and I have a B.S. Degree in Business Management!

My university professors where teachers, not business people. The average U.S family will make over 2 million dollars while working. Where is it going? Most people stop learning as soon as they leave school. We must all be lifelong learners especially in the financial realm.

Where to start? There are a lot of good books out in the marketplace by people like Larry Burkett and Dave Ramsey. Learn from them. Learn the basics. Budgeting and saving. It’s not rocket science. It’s about self control and living within your means.

People are concerned about their weight and they take action. People are concerned about their image, looks, status, etc. and they take action. Take ACTION in your finances.

Want some valuable insight? Read the Millionaire Next Door by Dr. Tom Stanley. You will be surprised at how they live under the radar and their wealth is not conspicuous. If you would meet them on the street you would never guess that they are millionaires.

If you weighed 500 lbs., you could not hide that fact, however, you could be in debt up to your eyeballs and nobody would ever know. Don’t’ look at the Jones’s. They may look fit and proper but they have a 500 lb debt load.

Get a good book (on finances) and READ!

Jacques
CreatingWealthThatLasts

THE BEST INVESTMENT VEHICLE: 30 %-60%-100% RETURNS!

I am going to step on a lot of toes in this article. If I could show you a guaranteed investment vehicle that would give you returns of 30%-60%-100%, would you be interested?

You are probably thinking that if this was really real, I would be under investigation by governmental authorities in search of a new scandal. But with my investments, I don’t need to worry about the government. Still interested?

I would like to start off by saying this is not a spiritual or religious discourse on what I think can happen but is based on my actual experience. I am a born again believer in Jesus Christ for the last 30 years.

A principal that has changed my life and the life of my family is: tithing. Ouch! Have I touched a sacred cow?

I could write books on this subject and not even touch a little of what has been taught or discussed. All I can provide is my experience.

When you give 10% back to God (it’s all HIS to begin with), you are setting up a spiritual law that is designed to bless and protect you. From there you can progress into offerings and gifts, which is the BEST investment you can ever make.

My experience:

1. My wife and I started tithing when we could not afford to and we where deep in debt. Every year we seemed to accomplish more with the money we had and it did not make sense when we added up the figures.

2. There was always enough for our needs to be met.

3. We progressed into offerings and gifts. We had more than enough for our needs and that allowed us to increase our giving to ministries and individuals, as we felt led to do so.

4. There is no lack in our lives in any area.

5. We focus on giving more and more as the increase comes in.

When you give to the LORD, you are using heaven’s banking system and you never get ripped off. You are investing for the immediate, the future, and after you are gone!

It all belongs to GOD! We are just stewards.

Jacques
CreatingWealthThatLasts

PIE IN THE SKY!

What about the Zillion dollar bail out? It is not a bail out! Where is the government getting this money? The economy is down, people are losing their jobs, and, therefore, there are less taxes coming in. The government is printing the money, which in the long run will devalue the dollar. It’s like borrowing more money to pay off ever increasing debt. The spiral never ends.

The fact is there is NOTHING for NOTHING. No FREE lunch. Everyone has to PAY!
If you look at all the PORK that has been put into this, it is actually sickening. We are slowly getting into a Socialist state where people expect the government to do everything and take care of them. Russia tried this, remember!

I truly believe that you let the businesses that goofed up or made mistakes take the loss and move on. I am a business man and if I screw up and make mistakes, do you think the government will bail me out?

What about people who have been reckless in their spending, borrowing, and increasing their debt load. Should they be bailed out? Now it seems that nobody should be responsible for their mistakes! It’s all the fault of something beyond our control!

We have been a blessed nation and we have squandered our inheritance, just like someone who inherits a lot of money and spends it foolishly. We are all to blame in some way. That is why I have been harping on living debt free. If you are debt free and have practiced living frugally ( I did not say stingily), you can go through any storm and actually prosper.

The level of distortion and animosity in the news is pathetic. It’s time for America and individual Americans to grow up and take responsibility for their actions.

You take control and don’t be waiting on the government! There are economic cycles that go back hundreds of years and they come and go. People have survived and prospered in the tough times. So can you!

Jacques
CreatingWealthThatLasts

PAYING FOR COLLEGE CAN BE DANGEROUS: PART II

With unregulated interest rates being charged by private lenders for school loans, it behooves everyone to tread lightly in this area. My last blog showed how high interest rates on borrowed money over several years can add up to $100,000 of dollars of debt or more upon graduation.

In my travels lately, I have noticed a lot of people talking about declaring bankruptcy as an easy way out of their debt load. Bankruptcy is not a good idea and I have covered this previously. You cannot dissolve student loans through bankruptcy.

The bankruptcy law of 2005 covers this in detail. Without this exception, every student would run through a bankruptcy between graduating and starting a career.

A disproportionate number of high interest student loans go to low income students attending for profit institutions according to a study by Charlene Wear Simmons, assistant director of the California Research Bureau.

Look at medical students. A government web site names 199 doctors with $17 million in unpaid loans.

What to do to keep cost down? Attend a State college or university. Don’t go to school out of State, you will pay more. Forget private colleges or universities. By doing this you can almost cut in half your expenses.

Instead of taking out loans, work for a year or so and pay cash. If you are in school and don’t have the money for the next semester. Take time off and go to work. Take night classes or online classes.

Take this seriously or you will pay for a long, long, time!

Jacques
CreatingWealthThatLasts

PAYING FOR COLLEGE CAN BE DANGEROUS!

My overriding passion is to get people to take debt seriously and have a long term perspective on the negative impact of debt. One area that is almost a scam and, is almost as bad as the situation in the banking system, is student loans.

Some people do not qualify for government backed loans that typically run 6%-8% and are going to private lenders and this is not only frightening but almost highway robbery. These institutions can charge as much as 18% variable rates and more with upfront fees that can be as large as 10%.

The figures that are coming out are awful. In the 2007-2008 academic year private lenders accounted for 20 billion dollars in loans. Students are graduating with student loans upwards of $100,000 easily.

If you know anything about compound interest, if you are paying 18% interest on a loan and just pay the minimum payment, you will NEVER pay off your loan. The average graduate takes at least 10 years to pay off college loans. Imagine starting out you’re working life with $100,000 in debt from one source not counting car loans or credit card debt! Not a pretty picture.

Both of my children worked while going to high school. They were also involved in band and sports and they graduated with good sized bank accounts. They did the same while going to college and university and both graduated with no debt.

At first they wanted to follow their friends, take out loans, and not have to work. We did not give them a choice. We helped out, of course, but they HAD to work.
When they graduated and saw how much debt their friends had and the monthly payments they had to make, they were glad they had listened to mom and dad.

Be very prudent in this area. It could cost you years of grief!

Jacques
CreatingWealthThatLasts

BUILDING A FINANCIAL FORTRESS !

In sports you have an offense and a defense. Both are critically important for success. The same is true in the financial realm. Some people do not believe in any kind of insurance. They just go along day by day believing that things will work out and if something should happen the government will be there to help them out. I wouldn’t count on it.

We all need to build a financial fortress for protection for ourselves and our families. Let me give you some ideas:

1. Auto and Home Insurance: Must haves. Auto insurance to protect yourself in case of an accident that could be your fault and home insurance to protect your investment. Choose higher deductibles and this will lower your payments. You must protect yourself in these areas.

2. Life insurance: Use term insurance at 10 times your yearly salary. This is inexpensive insurance to protect your family.

3. Long term disability: This too is a must have to protect yourself against any unexpected loss of income. The younger you are the more the need is for you to have this. I recently had dealings with a 34 year old man who is a quadriplegic due to a tragic accident and his long term disability is his life line for himself, his wife and two children.

4. Health Insurance: This is difficult for a lot of people. I am self employed and presently pay about $450/mo. to cover myself and my wife with a $5,000 deductible for both of us. You can take advantage of a health savings account where you can put money away tax free every year for medical emergencies.

Remember, we all hate insurance until we need it. You cannot Create Wealth That Lasts without having instruments of protection in your arsenal.

Jacques
CreatingWealthThatLasts

GETTING CONTROL OF YOUR FINANCES !

There is so much contradictory information about finances that it can get very confusing, very fast. What about a budget? John Maxwell says “ A budget is people telling their money where to go instead of wondering where it went”.

You need a written plan to know where your money is going. It’s that simple. If you don’t know where it’s going, how do you expect to get a handle on your finances? A budget does not have to be complicated. Write down all of your financial commits into categories and then put money aside out of every paycheck to meet that obligation.

What about using Debt Management Companies? Bad idea. This is not the same as debt consolidation. They charge a fee for taking over the payment of your various loans and they have worked out lower interest rates and payments for you. The down side is that mortgage companies view this almost the same as if you had filed a Chapter 13 bankruptcy. They are a lot of rip off artists in this industry and you must be extra careful.

Do you know that most of us focus on our health and our money after it’s gone! People tend to say that things will work out in retirement even though they are not saving. Hey, don’t expect Ed McMahon to show up at your door with a big check!

If things get bad enough I’ll just declare bankruptcy you say. Everyone seems to be doing this. Declaring bankruptcy is not the answer and will be something you will regret for the rest of your life. It is one of the top stressors in life and will be on your record for life. I have a young friend who declared bankruptcy and he has been passed over for good jobs due to this.

This is not the time to deal with options to not declaring bankruptcy but be advised that alternatives do exist.

More coming up!
Jacques
CreatingWealthThatLasts

IS MONEY GOING THROUGH YOUR FINGERS?

I keep hearing people say, “If I could only make more money, I would be alright”. Maybe yes, maybe no! It all depends on your habits. If you don’t change your habits it does not make any difference how much money you may be earning, you will continue to be broke.

Why do I say this? From personal experience, I have lived it. Get a 4% raise and spend 10% more doesn’t make sense but that’s what a lot of people do. Are you familiar with the Jones’s? You know, those people that live next door and have all the new toys: cars, SUV’s, TV’s, expensive vacations and designer clothing.

We seem to think that if they can afford to live that way, we can to. Wrong thinking! Material things have a way of losing their luster very quickly and if you have paid for it on a credit card, the payments still keep coming every month, even when the excitement has passed.

I cannot over emphasize this and I keep harping on it. Why, because I know how foolish this is and how much pain it can cause you when you finally have to face the huge mountain of debt that seems to materialize overnight.

When my daughter was younger she used to babysit for a couple that lived a few houses down from us. They had all the trappings of success: new vehicles, snow mobiles, ATV’s, and they vacationed in the South every winter with their kids. The trouble was they never seemed to have any cash to pay our daughter for babysitting and she usually had to wait several days to eventually get paid.

Please focus on eliminating your debt and stop all unnecessary spending. Believe me, you will be glad you did!

Jacques
CreatingWealthThatLasts

WHERE DOES RETIREMENT FIT IN?

There is so much emphasis on getting ready for retirement: Will you have enough to retire on? Will you have to keep on working? You need 40%, 50%, 60 %, etc. of your pre-retirement income to survive! What gives? Who says we have to retire?

If you look at most of the muti-millionaires and billionaires, they are working into their 80’s and 90’s. Why? That is what we were born to do: be productive all of our lives.

Did you ever notice in the Bible that God created the world in 6 days and rested on the 7th. That means we should be working 6 days a week and resting on Sunday or the Sabbath. Did God tell Adam how long to work and when he should retire?

Retirement thinking was a product of the great Depression when the U. S. government wanted to make room for younger workers in the work force. By brain washing people into the retirement mode, we end up losing the benefits of highly skilled workers who still have a lot to contribute to society.

Granted, what we do for work might change and how much we need to work but we still need to work for pay or volunteer our time. How much golf can you play and still feel fulfilled?

By harping on retirement we are creating needless stress for people and making it seem that for those who choose not to retire that there is something wrong with them.

Don’t get caught up in this trap. You will be forever seeking help from financial wizards to make sure you do not run out of money in your retirement years or sooner, depending on the advice you get.

The Internet has opened up countless ways for people to be self employed in the their own business and continue to lead productive, fulfilling lives and be able to continue contributing to society.

Keep on keeping on!

Jacques
CreatingWealthThatLasts

BEING THANKFUL FOR GOOD MEDICAL CARE: PART II

I had recently shared about the scare that my wife and I had a couple of weeks ago when she started to feel ill and we did not know what was wrong. Fortunately, the people that we dealt with at the hospital, both doctors and nurses, where extremely professional and compassionate.

With the challenges that we are facing in today’s economy, I was surprised by a recent article I read about how today’s doctors are more in debt than ever before. This is largely due to the fact that most graduating MD’s have student loans totaling an average of $180,000 upon graduating!

The average salary for a doctor was $250,000 with family doctors averaging $110,000. This is not a huge income considering the amount of time and dedication it takes to get your degree and also the debt load that you have when you get there.

If you factor in malpractice insurance and the cost of managing an office, your actual income is again reduced.

We have an aging society with increasing health care costs and we NEED good doctors, nurses, and other medical professionals. With the type of stress that is involved in the medical field, we are fortunate that there are people that are called to the medical field and they labor in an area where, at times, they are not appreciated and considering the above, are not really well compensated.

Let’s be thankful for our health care professionals and let them know with a word of thanks and smile that they are appreciated!

Jacques
CreatingWealthThatLasts