Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts

Thursday, 5 January 2017

Amazing Motivational Speaker Jim Rohn's How To Have The Best Life Ever Seminar And Notes

Jim Rohn is the most inspirational motivational speaker I have ever seen. He appeals to me because he is very concise and his comments are extremely profound and digestible. More commonly referred to as a Business Philospher Jim Rohn has mentored millions of people via his seminars, books and videos aswell as personally mentoring hundreds of people including motivational speaker Tony Robbins.

Having listened to Tony Robbins for many months without results (they always led to him needing you to buy more of his products !!)  I looked into Tony Robbins' background and heard that he was mentored by a man called Jim Rohn. I looked Jim up and came across his seminar called 'How to have the best life ever'. I watched it and it changed my life. Needless to say I never listened to another Tony Robbins CD again. 

The seminar is jam packed with excellent information, reassurance, encouragement, fantastic quotes aswell as simple and powerful philosophies. Below is the video and the notes/transcript I made when I was listening to the seminar. The notes like Jim are concise and to the point !.

I hope that this seminar is as enjoyable and insightful as it was for me. I would love to hear your Jim Rohn stories in my comments section, so please share.

Without further ado the legend Jim Rohn.

How To Have The Best Life Ever - Jim Rohn Seminar



Seminar Notes Of Jim Rohn's Philosophy And Quotes

Time is more valuable than money, you can always get more money but you can never get more time.

Make sure what you do is the product of your own conclusion - Don’t be a follower be a student

Information or a person may be shown to a multitude of people but you will always get a different reaction. Some people will believe, some people will be confused, some people will mock and laugh. DONT try and straighten this out, the mockers and laughers will always mock and laugh.

A persons personal philosophy is a major factor of how someones life turns out. - Each person’s personal philosophy is like the set of the sail

Definition of failure : A few errors in judgement repeated everyday. If you continue to do it, it will accumulate into disaster. Look at them (errors) as to what they will cost you in 6 months, 6 years etc.

Definition of success :  A few simple disciplines practiced everyday.

Eliminate the errors and replace it with disciplines practiced.

Don't wish things were easier, wish that you were better.

Start where its easy and then move onto the more complicated disciplines.

Attitude – We’re affected by how we feel about the past. Use it as a school not a club that we beat ourselves with. How you feel about the future – set goals, promise of the future – without a future well designed we take hesitant steps.
How you feel about everybody else – you have to feel good about people as it takes people to make a business, economy , country systems.
How you feel about yourself. Understanding self worth, if anyone can do it, you can do it. IF HE CAN DO IT I CAN DO IT.

Life change does not start with inspiration, it starts with education. Education to see where you’ve messed up.


Activity – Taking action -  Is the miracle working piece – The labour. God says if you plant the seed i’ll make the tree. Do what you can – Do the best you can.
Question to ask as you make a list – “What am i not doing that would be easy to do, that could greatly change my health and my wealth”.
If you handed a problem to a miracle worker what would he say..... “No problem”. You’ve gotta hang out with people like that. People like that would read as many books as it takes to solve the problem, they would do whatever it takes.

Could + should + wont = disaster
Could + should + don’t = disaster
Could + should + will = Action (miracle)

Do what you can – Clean up the things that you should be doing.

Results you have to take a measure and see how you are doing. Results are all there is , the only thing that matters.

Success is a numbers game. Check your own numbers.

If you wish to be wealthy , study wealth. How good is your current economic plan. Why wouldn’t you have a superior financial plan that is going to take you to where you want to go.
If you wish to be happy, study happiness.  Happiness isn’t something you postpone it is something you design, it’s a study , a practice and an art. Don’t be lazy in learning, how to do well and how to live well.

Its not what happens that determines your future, its what you do about it - You cannot change the circumstances but you can change yourself.

What you have at the moment you’ve attracted from the person you’ve become. If you will change, everything will change for you. To have more you simply have to become more.
Dont wish for less problems, wish for more skills.

We get paid by bringing value to the marketplace – marketplace is also described as “reality”. It takes time to bring value to the market place. We don’t get paid for time , we get paid for value.
If you’re not very valuable you don’t get much money.

You can’t get rich by demand.

Learn to work harder on yourself than you do on your job. If you work hard on your job you’ll make a living, if you work hard on yourself you’ll make a fortune.

Life and business is like the seasons. You cannot change the seasons but you can change yourself.

Human history – life = opportunity mixed with difficulty

  1. Learn how to handle the winters. The downtime , the discouraging time , when things go wrong. In winter, get wiser, stronger and better.  
  2. Learn how to take advantage of the spring. Spring follows winter. Spring is called ‘opportunity’, everyday is a new opportunity.  Opportunity keeps coming but you need to take advantage. Learn to plant in the spring. Sieze the day , seize the moment, seize the opportunity.
  3. In the summer learn how to nourish and protect. Become capable to nourish whats good and defend yourself from threats. As soon as you plant your garden weeds and bugs will try and take it and they will unless your protect it. Deal with the weeds, kill the weeds. Take sword to your enemies. Love like a mother hate like a father. Anything that is valuable to you, you have to nourish and defend it.
  4. In autumn/ harvest. Learn to reap without complaint. Take full responsibility for what you get. No complaint and no apology. No complaint if you haven’t done badly and no apology if you’ve done well.
Take care of yourself. Treat your body like a temple – something you take extremely good care of. Its the only place you’ve got to live.  Vitality is a major part of success.

Appearance is important. Never have a second chance to make a first impression. God looks on the inside, people look on the outside. Makes sure the outside is a major reflection of what is happening on the inside.

Spirituality – study it and practice it.

Personal development, mental development takes time.

Be ready to defend your virtues and your values. Information is the key, learning is the beginning of wealth, health, prosperity.

5 Abilities


Develop the ability to absorb – most people are just trying to get through the day, you must become committed to get from the day. Commit yourself to learning and absorbing.

Casualness leads to casualties.

Learn to respond – let life touch you, don’t let it kill you but let is touch. Let sad things make you sad, let happy things make you happy. Give into the emotions. Our emotions need to be as educated as our intellect. Its important to know how to feel and how to respond.

Develop the ability to reflect, study it again – go back over the notes, mp3s video. Go back over the day, keep a journal to capture that day. Lock in the experience the knowledge, colour emotion and picture. Take a few hours at the end of the week as time to reflect, go back over your calendar. Take half a day at the end of the month.  Solitude is important in reflecting especially if there is alot going on and people are demanding your time.Its important to reflect because the aim is to make the past more valuable so it serves you in the future. Its powerful to gather up the past and invest it in the future.

Work on yourself and then you bring more value to every area of your life. Self development is the best contribution. Not self sacrifice as this only attracts contempt self development attracts respect. Self sacrifice is not noble. “I’ll take care of me for you, if you please take care of you for me”. Develop the strength and the power, so that we bring more and we do this if you follow the absorb, respond and reflect.

Develop the ability to act- not hasty if it isn’t required but don’t waste much time. The time to act is when the idea is hot and the emotion is strong. Action as soon as possible, the law of diminishing intent. If you don’t put the idea into action it diminishes over time. Set up a discipline. Disciplines are how you capture capture the emotion and the wisdom and transform it into equity. All disciplines affect each other. Everything affects everything else. Everything matters.
Every let down affects the rest of your performance.
Every new disciplines affects the rest. Greatest value of discipline is self worth, self esteem and self respect. When you do less than your best it starts to erode your psyche. Neglect starts as an infection and if you don’t take care of it, it becomes a disease and one neglect leads to another it diminishes our self worth, self value and self esteem.

"Affirmation without discipline is the beginning of delusion."

Poor people don’t talk like they talk don’t do what they do, don’t blame what they blame. Do the best you can.

Rest very little. Make rest a necessity not an objective. The purpose of life isn’t to rest its to act.

Invest your life in disciplines so its not wasted.

Develop the ability to share, if you get a good idea, pass it along. If you share with 10 different people they get to hear it once you get to hear it 10 times.
When someone shares everybody wins. If you share it makes you bigger than you are. You should want your capacity to grow so you can hold more of the next experience.

If you’re small you don’t get much, if you’re small in comprehension, think and wonder, appreciation it doesn’t matter how much prosperity is poured on you you wont get it.

Goals are your vision of the future. Two ways to face the future. 1. With apprehension 2. With anticipation.

People face life with apprehension because they don’t have their life well designed so they fall into someone else plans. And what do people have planned for you ‘not much’. You have to count on your own ability to design the future. If you are apprehensive and take hesitant steps for six years it will mount up in disaster. The price is easy  if the promise is clear and powerful.
If you can’t see, you don’t want to pay the price.

Goals : Decide what you want and write it down. The reason why you set a big goal isn’t to get the goal its what it makes of you in your pursuit of it. The greatest value in life isn’t what you get, its what you become.

Set the kind of goals that will make something of you to achieve them. What will this make of me in this process.

Dont set your goals to low. Dont join an easy crowd you wont grow. Go where the expectation, pressure and demand is high.

Dont compromise and don’t sell out. Count the cost. The greatest source of unhappiness is self unhappiness. Doing less than you can thats where it starts, not feeling good about yourself.

Financial

Out of a pound (or dollar) – never spend more than 70, with the other 30 – 10 charity – 10 active capital i.e trying to make a profit yourself buy and sell render service. Profits are better than wages. 10 passive capital – you provide the capital and they use it to make money and then they pay you interest. You are passive and they are active.

These numbers are the ideal. Its not the amount that counts its the plan that counts. If you had a better plan you would have more money. This the philosophy it is the set of sail.

“ If your outgo exceeds your income then your upkeep becomes your downfall”

Become profit minded - Leave a profit every where some are tangible some are intangible. Just leave something better than you left it. Dont leave it worse – touch something and leave it better than you found it. Become a person who leaves a profit don’t be a person that whatever you touch turns to trash, whatever you touch gets dirty, nothing you touch gets better , its poor philosophy no wonder it leads to poverty, small lives as one writer called it ‘living a life of quiet desperation’.

  1. Keep strict accounts this is the best of disciplines.
  2. A new attitude. Get passed hating to pay taxes. Taxes are how you feed and take care of the goose that lays the golden egg. Better a fat goose than no goose. Not everyone hates to pay there bills, it is possible to love to pay your bills, reduce your liabilities increase your assets. Keep the money in circulation.
  3. Everybody must pay. We must all pay a price.
Communication

Words can work miracles. Is it possible to create light with words. Nothing more magical or powerful than words as they can affect people lives.

Have something good to say. Communication starts with preparation.

Interest – develop a new interest in life, in people, economics, politics religion.

Fascination – kids learn so much first 6 years because they are so fascinated. Turn frustration into fascination if you can, you’ll learn more.

Sensitivity – is so important. People that aren’t like you, where people are coming from where they’ve bin, people that have difficulties and challenges where they find themselves. He was touched and moved by where he found people. Remembering what its like to be in that situation that is the key to sensitivity. If i want to get in touch with other peoples difficulty i need to remember my own difficulty and let it hurt again. Emotion close to the surface and then well chosen words delivered with emotion.

Say it well

  1. Sincerity
  2. Repetition – it is the mother of all skill
  3. Brevity – sometimes you don’t need many words if you’re sincere. Jesus could attract followers with few words because “OF ALL THAT HE WAS THAT HE DIDN’T HAVE TO SAY”.
  4. Vocabulary – definitely a relationship between vocabulary and behaviour. The more limited the vocabulary the more tendency for poor behaviour. Words are a way of seeing and if you don’t have a good vocabulary you cant see very well. Words are a way of expressing whats going on in your head and your heart. Stretch your vocabulary.
  5. Read your audience – if you’re talking to someone read there face body language to see if you should come on a little stronger, ease back etc. Read by what you see – body language. Read what you hear and listen to the response. Read what you feel – read the emotional signals.
  6. Intensity – words mixed with emotion. Words mixed with hate, love, faith, courage that is what is powerful.  Put more of you into what you say. Don't be casual in words. Emotions must be measured, it can’t be too much for the occasion if its not called for. Don't shoot a cannon at a rabbit. “ WELL CHOSEN WORDS MIXED WITH MEASURED EMOTION”. The more you care the stronger you can be.
There is a time to laugh and a time to cry. How can you identify with people if you can’t feel their emotions. Learn to master the negative, it makes us better than we are to wrestle with it.

The day that turns your life around

  1. Disgust – I’ve had it !. The day you say enough is enough.
  2. Decision – Clean up a list of decision it could furnish enough inspiration for the next 5 ten years.
  3. Desire – wanting to bad enough. Sometimes desire waits for a trigger. Confrontation with an enemy a friend that finally levels with you. Welcome every experience you never know what is gonna turn everything on.  Break down the walls, the same walls that keep out disappointment keeps out happiness.
  4. Resolve – says ‘i will’ two of the most powerful words in the language. Promise yourself that you will never give up. Promise yourself you will read and watch seminars UNTIL you get it. You’ll discover the worlds best treasure when you pay that price.
Learn to help people with their lives not just their job. Help people with their lives, dreams , mistakes.

If you work on your gifts they will make room for you.

Monday, 1 February 2016

Types of debt : Good debt vs Bad debt

Is there such a thing as good debt ?. Previously I would have answered a resounding NO to this question as I have always avoided debt like the plague.

However, through experience and knowledge over time I have taken on debt in various forms and now feel I can define two types of debt : Good debt and Bad debt.

Good debt

Generally good debt should be strategic and part of a long term sensible plan. It should be clear, manageable, cheap as possible (interest rates), provide opportunities and be affordable to repay.

In a nutshell good debt should be an investment.

Let's look at some examples of good debt.

Investing in your business

Businesses are a great way to generate money but you don't get something for nothing in this life. Therefore, depending on the type of business you are going to start you may need some initial expenditure. This could be for equipment, premises or staff etc and will get your money making machine up and running. There is a saying that you have to 'spend money to make money' and a business is a prime example.

Any kind of debt should always be treated with caution as it can be a fine line between success and failure. If you are going to take out a business loan make sure you have a solid business plan and all of the skill, drive and determination to make it turn a profit. If you get this right you can repay the loan and everything else you get to keep.

Student Loans

Student loans to pay for University can be very beneficial for your future. Graduates generally get paid more than non-graduates so a university degree is definitely worth pursuing. Many would agree that 5 years to repay a loan is a small price to pay for a 45 year high earning career.

Much like the business loan you have to be careful. Only borrow what you need, don't waste money and make sure you work hard and get a good qualification. If you can save some of your student loan to act as a deposit for a property even better !.

Mortgages

Rental prices are increasing all the time and is effectively 'dead money'. The beauty of a mortgage is that not only does it give you a roof over your head but once the loan is repaid it also gives you a huge financial asset. Property appreciates over time so your money is making more money which is great especially coupled with the fact that your mortgage payments are still likely to be cheaper than paying rent.

Home improvements

Now this item won't feature on most lists under good debt because it is a broad category that can mean many things. In my definition borrowing money for home improvements means two things : Finding a zero (or close to zero) per cent credit card or loan and making improvements that are long term.

Examples of this are as follows :

  • Structural work which are essential for the property to be safe e.g. rewiring and plumbing
  • Long term items which make the house livable and comfortable such as carpets, sofa, heat efficient doors, new bathroom and kitchen. As a rule ask yourself 'will I still have this item in 5 years?'.

Not only will this improve your life short and long term (a key characteristic of good debt) but it will add value to your property which is money in your pocket.

Like with all the good debt just make sure you can afford to repay it in a time frame that works for you.

Bad debt

If good debt is strategic and part of a long term sensible plan then bad debt is the opposite. With good debt we invest in the short term and in appreciating assets whereas bad debt places us in deficit with little or no future return.

Here are some examples :

Car loans

Other articles I have seen say that car loans can be good debt if you can afford it and is a statement I completely disagree with. Cars are DEPRECIATING assets and will always result in a loss 5 years down the line. I personally have always saved and purchased my cars cash which hasn't given me the best cars in the world but when my circumstances have changed I never had to worry. Knowing that no-one had a claim over your means of getting to work or running essentials errands is very reassuring. Car loans act as a compounded loss because not only is the car's value depreciating you also have to pay the loan amount back with interest. It is lose-lose.

Clothes

Unfortunately I have witnessed many people end up with financial problems due to spending excessively on clothes and fashion accessories. Not only do these items wear out in short period of time but some remain in good shape but simply fall out of the latest fashion trend and therefore are no longer wearable. The sad reality is some people are still losing a portion of their monthly income for outfits they wore briefly 4 years ago.

Home fashion items

Home improvements are good but home fashion items are bad if your paying for them with credit or loans. Ornaments, fashionable art and soft furnishings etc look good now but they will be out next summer when you want a fresh look. You may throw these out but the debt remains.

Borrowing money to pay regular bills

I implore anybody who is using money to pay living expenses (bills) or other credit commitments to contact debt management organisations for advice. These are free and have been setup to help people that are caught in this difficult and distressing situation. For those that are contemplating short term or 'pay day' loans please also utilise these organisations as these short term schemes are designed to dig you further into long term debt while giving you short term relief.

Holidays

These are the worst form of bad debt probably owed to the fact they have a specific time limit. For that 1 week holiday you could be paying for it for 3 years. If you want a holiday each year and use debt each time to pay for it, you are subscribing to a life of money worries.

Hopefully this article has shown that debt can be good and bad. If you are careful you can make debt work for you in a positive way and enhance your life or alternatively it can work against you.  So understand the risks, make sure it's affordable and always read the small print.

If you found this article helpful or would like to share your thoughts on the types of debt mentioned, please leave your comments below.

Tuesday, 8 December 2015

FTSE 100 UK stock Return On Capital Employed (ROCE) list

After watching a video  (3 tips for finding good companies) from Terry Smith
explaining why his fund Fundsmith Equity is so successful, I decided to follow his advice and take a look at some FTSE 100 stocks to see how they measured up.

In the video his first tip referred to Return On Capital Employed (ROCE). I had heard of this calculation before but had never looked into and applied it to prospective stocks. The first step was to learn what ROCE is and how to calculate it based on the financial reports from a company. I completed this step and then looked at 22 different FTSE 100 companies and calculated their ROCE percentage.

The results are as follows :

Company Net Profit Before Tax 2014 Net assets 2014 ROCE %
Admiral 350.7 580.9 60
Astrazenica 1246 19646 6
Aviva 2663 12276 22
BAE 882 1877 47
Barclays 2256 65958 3
BATS 4848 26167 19
BP 4950 112642 4
Glaxo 2968 4936 60
HSBC 18680 199978 9
Imperial Tobacco 1525 5696 27
Legal & Gen 1413 6303 22
Lloyds 1762 49903 4
Nat Grid 2628 11974 22
RBS 2643 60192 4
RDSB 28314 172786 16
Severn Trent 318.9 823.3 39
SSE 592.5 5119.5 12
Standard Life 422 4950 9
Taylor Wimpey 468.8 2535.3 18
Unilever 7646 14263 54
United Utilities 543.3 2215.9 25
Vodafone -5270 71781 -7

Having reviewed the list it becomes instantly apparent why he uses this calculation as an initial filter. Applying this alone would save you from investing in the likes of Barclays, BP, RBS and HSBC which have all yielded terrible results for investors. However, it would encourage taking a closer look at Unilever, Severn Trent, Glaxo and BAE which are proven to be fundamentally sound.

If you like this post or would just like to contribute some thoughts, please leave a comment.

3 tips for finding good companies from Fundsmith Equity Fund Manager Terry Smith

I discovered Terry Smith some time ago and invested in his Fundsmith Equity Fund which has yielded some impressive returns over the years. He like Warren Buffett is obviously a master at what he does and this morning I found a video where he tells you how he does it.



In the video Terry refers to three basic principles when trying to select a 'good' company :
  1. Don't buy a company with a low Return On Capital Employed (ROCE) percentage which he states should be above 15% and definitely no lower than 10%.
  2. Work out what percentage of the company's profits arrive in cash and if the answer isn't 90% or more - don't invest.
  3. Does the company make it's money from a  large number of everyday repeat predictable transactions i.e. you don't want to select a company that relies on one off things that may or may not happen such as winning contracts.
I have purchased many individual stocks and tried to use some sound fundamentals but I have never implemented a filter like this one so I will be trying it out and reporting back in future posts.

If you like this post or would just like to contribute some thoughts, please leave a comment.


Saturday, 5 December 2015

Basic dividend reinvestment goals and planning for passive income


Several years ago I knew that dividends were a good source of passive income and that passive income was a great entity to pursue. However, I didn't know how to pick good dividend stocks or have any plan/reinvestment strategy for my dividends once I received them.

Picking the right dividend stocks I will cover in a different post but one of the most important factors for dividend investing success is the system that you place around your dividends to grow and compound your returns.

This still sounds abit too complicated for my liking so let's start with a dividend investing goal.

"To make your dividend portfolio SELF FUNDING" 

So what do we mean by this : Basically we want to use our earned money e.g. salary to purchase our dividend paying stocks and then use the dividends received to buy more stocks. The beauty of this scenario is that we start off buying all of our stocks and then the stocks start buying themselves !

There are two approaches you can take with this strategy one is 'capped' and the other is 'uncapped'.

CAPPED EXAMPLE

In this example the cap refers to the maximum amount we will invest in our dividend portfolio each month. To keep the numbers simple I have selected £100, your amount will depend on your circumstances and attitude towards risk. Lets imagine your timing is good and you catch a record date for a stock that has a payment date the month after.

August

Dividend received : zero as you have not previously purchased any stock.
Salary : £100 from your salary  goes into buying your first dividend stock.
Amount invested :£100

September 

Dividend received : £5 received from the dividend stock you purchased the previous month which can now be reinvested.
Salary : £95 from your salary  goes into buying more dividend stocks
Amount invested :£100

October 

Dividend received : £7 received from the dividend stock you purchased the previous month which can now be reinvested.
Salary : £93 from your salary  goes into buying more dividend stock.
Amount invested :£100

In summary you cap your investment amount at a figure in this case £100 and then use your dividends received to reduce the amount you have to put in from your salary each month. This is great because you still invest £100 and you also get to save your own salary for use elsewhere in your life !.

UNCAPPED EXAMPLE

So this approach is much simpler you still decide on an amount each month that you want to invest but you never reduce that amount even when you receive dividends. To use the examples above the monthly invested amounts would be.

August : £100
September :  £105
October : £107

As you can see you will increase your portfolio worth faster but it all comes down to your personal choice.

I stated earlier that the goal is for the portfolio to become self funding and this is what I am working towards. For the above portfolio to become self funding you would need to be receiving £100 a month in dividends. If you are using the capped method you can at this point cease your salary payments into your portfolio and just reinvest the dividends received. Thus the portfolio is funding itself.

This has been a very successful strategy for me and if you are going to try this approach, are already doing something similar or have your own strategy it would be great to hear from you in the comments section.