Time is Money

The more time we spend at work, the more money we make. If we can hit overtime, then the dollars really start to add up! It seems like a No-brainer, More time More money. But is it what we really want?

I often find myself equating items I purchase against my time. "Do I want to spend 3 hours working for this pair of jeans, or could I get by with these other jeans that only cost 1 hour of work?" or "I can take my family to see this new release movie for 4 hours of work, or I can go see the dollar movie for just 1/2 hour of work".
This type of thinking began entering my mind while I was working at a Mink farm skinning mink. I guarantee* that when you realize that large shake is the equivalent of over 1/2 hour in the hottest, smelliest, nastiest place you have ever stepped foot.. YOU DON'T WANT IT!! When you know a tank of gasoline is going to take a full day in that misserable place, you choose to walk to the store to buy your mountain dew (that you have to drink to get rid of the head ache the mink have caused-Which costs another 10 min of minking to pay for the Dew)
In addition to realizing every thing you buy costs time at work, it also means it costs time FROM family. Now my large shake is 1/2 hour of mink, and a 1/2 hour of missed family. That equals 1 hour of pure Hell to buy a bit of Ice cream. NO THANK YOU!
We begin to cut out things we don't need when we realize what they actually cost. Whats the cost of cable TV? $70? Now our beloved TV costs us over a full days pay, and a full day away from the family! That's 2 days a month taken so we can watch some show about fat people loosing weight. Not in my house-We'll go camping instead!
By keeping our expenses down, we can keep down the need to be away from our family.




*100% MONEY BACK mink guarantee- If you do not believe in my "minking time cost equivalent", I am more than happy to set you up on a two week time trial. You come skin mink. At the end of 2 weeks, if you are not fully convinced, you are welcome to give me all you earned MONEY BACK and go on your way.

Polictics, Religion, and Money

It is said that one should not openly discuss Politics, Religion, or Money. That for some reason these horrid topics cause bad feelings, or resentment, Maybe even an awkward moment or two. I have a different perspective, and would like to share it with you.
When we decide to become more advanced in any subject, be it dancing, computer skills, or learning to make a good pasta salad (if such a thing exists) we usually decide to enlist the help of other. We hire teachers, take certain classes, read books or manuals. We have conversation with our friends and neighbors about the subject. We post it on Facebook, we blog it, we mass text it to the world, etc. We are accustom to having our entire lives broadcasted to anyone willing to read or hear (which is a whole problem on it's own). We have also come to realize that the more people who know, the more answers and help we receive. It's a great plan all together.
The problem is that when it comes to things that REALLY make a difference in life, we keep it in. We don't share important thought and feelings. We don't share information that may alter another persons life in a good direction. We don't try to change the world around us. It's easier to not deal with it. So we go about Tweeting what our dog did this morning, that really cute thing that made us laugh.
When it comes to money we tend to be shy. I am sure it is for many reasons, and different for every one. You may think you know it all, or make to little to need to worry, or maybe you think you make more than all your friends and don't want to cause embarrassment. Maybe you have no clue about finances and don't want to admit it. No matter what reason you have, I am sure it can be corrected or changed.
Money is a Major part of EVERYTHING we do. It runs the world. It can make the difference between life or death, it can bring families together, it can build a future for your posterity that will last centuries. It can provide a great education for your family. It can Help to do just about anything.
On the other side money can be dark, it can destroy families, it causes murder and greed. It turns good people into politicians. Money can be horrible.
How can we learn to handle money in the correct way? How can we control our money, instead of having it control us? We can talk about it. We can LEARN about it, we can facebook about it. There are so many great books we can read. Look around you, there are great people who are doing well at their finances you can talk to (not the guy with the new shiny car he got for a great payment, the guy who paid cash for his car). As we open up and talk about money, we can all become better financially. This is not a topic to keep in the dark. Now is the time to change how we think and act around money. It's time to talk!

Diversified income

Diversifying our investments is VERY important to keeping our money safe. We know to keep all of our eggs out of the same basket. By having All our money in the same place we can quickly lose it. Having it spread around in different types of investments we may still lose some, but not all.
If this is a simple, but important concept to understand why do we completely disregard it when it comes to our working income? We earn ALL of our money from one place. We go to work, get a paycheck, get the weekend off, then go back to the same place. Over and Over- Week after Week- Year after Year we Gamble that our Income will not be lost. We place all of our earning eggs in the same basket, but even worse, we let someone ELSE carry it! Our employers have no obligation to us. We are at their mercy. One move and it's game over.
I have had the unfortunate privilege of not having work for over a month. This is potentially devastating to a family. With out income one cannot pay the mortgage, utility bills, or buy groceries. Very quickly we can find ourselves hungry and in a cold house without heat. (of course most of us will have found a way to keep the netfilx coming). For a person who has spent most of their career working for the same company it may takes months or even years to find a replacement job, and with today's unemployment rate who knows if one will be found at all!
But what if we had diversified our income? What if per chance I had a second, or third source of income I could use to pay my bills? What if the income we were using to "win in the margins" could cover our basic needs? Life would be much better. We would be much safer.
It only makes sense that if we want to have a safer income, just as a safer investment, that we diversify it. We must not gather all our eggs from the same Hen.
As we begin to diversify our income it may start rather slow. We may not earn much at all. but with some time our little side incomes may begin to pay for small things like a tank of gas (not in my truck of course), then maybe the phone bill, then the utilities, then the mortgage, THEN maybe even fill my truck! The potential is endless. But most important we have created a security net to catch us when we fall.
What are some ways to diversify our income? Some sources that have helped me are:
-Auto Repair from my home
-Snow Removal
-Handyman Work
-finding free junk to sell on KSL
-I even skinned mink for a season

What are some ways that you have diversified, or will now begin to diversify, your income?

Decide to be Wealthy

What does it mean to be wealthy? Is there a dollar amount that suggests wealth? Is there a measuring stick to determine who is or isn't wealthy?
According to various online dictionaries to be wealthy means to have a large abundance, or have a much greater amount than the average person in an society.
I think that wealth is an intimate relationship between physical, emotional, and spiritual desires. Wealth cannot simply come by riches alone. Wealth, in the physical aspect, may vary greatly for each of us. I have put a lot of thought in to what I believe my life will look like when I am wealthy. I'll share my wealth indicators with you in hopes that they may help in your plans to become wealthy.

Wealth Indicator #1 : Mortgage free property. I feel that my first step to wealth is not owing a single person money. By having NO debt, including my home, I have completed the first side of my Wealth Triangle. This also provides a safe place for my family, no matter what the economy, job situation, or other factors may bring.

Wealth Indicator #2 : $100,000/yr in PASSIVE income. This is a great figure for an income. It should provide an adequate amount to allow for family recreation, Paying for schooling or church missions, and sharing with others less fortunate. It also provides a sufficient amount of income in case I could, for some reason, be unable to provide for my family.

Wealth Indicator #3 : $100,000/yr in self produced income. This is the third side to my wealth triangle. This is money I need to earn each year, as a self employed person, working with out a boss. This can be through what ever means I feel appropriate at the time, but it may be through owning a few businesses, Appraisal Work, Rental properties, etc. This will keep me busy, and teach my children that daddy knows how to work, and will hopefully teach them good work ethics. It will also help to to maintain a perspective on the value of money, and that it requires an effort to earn and control.

Each of us must determine what we think it means to be wealthy. We must envision our own wealth filled life. What does it mean for you? Can you see what you need for security? Can you see what you want for your family? Only after we can SEE what we desire can we begin to work towards that goal.
Wealthy people are just a small percentage of the population. In order to have what most people do not, We must be willing to do things that most people do not. We must set ourselves apart from the wasteful spending, Credit Card Use, and inability to save that permeates our society.
We must set clear, measurable goals and be willing to stick to them.
We must determine to be wealthy. This is the first, and most important step. Unfortunately it is also a very overlooked step. Plenty of people would like to be wealthy, but very few will take the actions required.
Determine now to be wealthy! Write down your goals and dreams to become so. Together we will become some of the few who truly enjoy wealth.
If you feel like sharing, post in the comments your goals of wealth.

Winning in the margins....

Even though we follow our budgets, we don't spend out of control, and we save every penny we can, it seems that sometimes we just can't get ahead. We need just a little more money to really make the difference. What can be done? Most of us used to be able to increase our hours at work, but most no longer have that option. If our budget is right then there probably isn't anything to cut out that would help.. It's time to "win in the margins" or to do a little extra. It is hard to create an additional income, right? I don't think so. Just a thought and a little effort and extra money will start to come. I prefer to use a hobby as an extra income (Never would I use a hobby for full time income, as it will destroy the hobby. but for a little income it will be fine)
I use recreational vehicles, from motorcycles to ATVs to camper trailers, to whatever else peaks my interest for the day. You may want to use your vinyl cutter, or sewing machine, or computer skills, or what ever your hobby is.
I often times receive requests from people I know, or people I don't to fix a problem they are having with a machine. I have done bikes, quads, cars, snow blowers, and just about anything with a motor. I charge a good fee for myself, but less than half of a typical shop. I have made thousands over the years, but it usually comes $20-$60 at a time. It does not interfere with my real job, and doesn't cause me stress (because it is a hobby) and it puts some extra in the pocket.
I also buy, then improve, and sell many motorized toys. This usually takes more time and effort but it pays out much more. I have also made many dollars in this extra area.
A friend of mine has started her own way to win in the margins. With a simple blog and a few pictures she has turned a hobby into extra cash! http://cuddlebugbynatalie.blogspot.com/ (hope thats ok Nat!)
Another friend has started selling vinyl stickers she cuts. It may not be making millions, but she can more than pay for her own expenses in doing her own hobby.
So the question is.. What can you do today?

It's time for all of us to be winning in the margins.

With a little extra effort we will be well on our way to a secure financial future!

Spread the wealth

I recently read a letter from a person whom I admire highly. This letter had many important subjects in it, some of which I agree and other that make my stomach ache in distress. One of the subjects in this letter talked about the need to "spread the wealth", or to take what the rich have and give it to those who do not have money. At a first glance one may like this Idea. The majority of the people are "poor", so naturally most of us would benefit from taking from the rich. It could be a real Robin Hood adventure! Only the rich would be negatively effected, so it' s not a big deal, Right? For those of us on the bottom it is easy to look up and say that these rich folk are somehow hording the money, and are too selfish to share.
According to a survey released by the Federal Reserve, only 4% of the American population have achieved Millionaire status. This would include anyone who has a $1,000,000 in the bank, or in stocks, real estate, or other form of wealth. 80% of these Horrible millionaires are first time millionaires. Meaning they earned their own money, it was not handed down through the family.
I have had personal experience with those who receive "free money" taken from those who earn it. Let me share with you what I have witnessed, both here in Utah and other states I have been.
When a person or population receives free money over a period of time they learn to expect it. There becomes this sense of entitlement that makes them feel others owe it to them. It becomes easier to not earn and to live for free off the earnings of others. Crime rates go up, attitudes are negative, and progression ceases. When this sense of entitlement comes about it can spread like a wild fire, and soon there are no earners, and only receivers. (ever been to Mississippi?)
When some one receives something they did not earn, someone earned something they did not receive.
"spreading the wealth" can only lead to our destruction.
There is a solution to the huge poor/rich contrast we have in America. If we can learn to handle our money, and live on less than we earn, then it naturally follows that we have Extra money, and can begin to build our own wealth!
We can't all be rich can we? where would the money come from?
Because I am around real estate often I will use an example of a home.
If I own a piece of land that I want to build a home on, I would hire a builder. I pay this builder $150,000 to build my home. He is now 150k more wealthy. but what about me? I just spent my retirement, right? No. I now have 150k in paid for real estate, and my land is now worth more for having a home on it! So I have increased in my wealth, as did the builder! we BOTH are better off.
Providing a service is providing a value. As we provide a service we add value, and both parties profit. If each person in the population continues to add a service, or value, then there continues to be prosperity. When we take from those adding value and give it to those who add no value, then we are setting up the failure of our country.
The solution to poverty, again, is not to TAKE, But to teach each person to ADD value, and then to be RESPONSIBLE with their earnings. When this is accomplished we will all be able to prosper in the great country of America.

Good Debt vs Bad Debt

What is the difference between "Good Debt" and "Bad Debt"? Is there a Difference? How can we tell? I shall attempt to answer these questions.
Lets start with the bad debt. We all know what this is. Credit Cards are the first thing to come to mind, followed by personal loans, car loans, title loans, etc. We should avoid these debts, and do our best to pay off what we have quickly.
Good Debt: I have been taught about this good debt, and about how it can help further you financially. I was taught about it's ability to make you wealthy. I've been taught how to manage it, and make it go farther. I have been taught how to leverage it and make it multiply. I am talking about a mortgages, home equity line of credit, or second mortgages, etc.
These are wonderful! you can buy a house - on credit - make it nicer - on credit- borrow money against it (credit) and get another home - on credit -! the process is easy! and with in a few short years you can have multiple properties! Money will fall from the heavens, someone else will pay your bills, nice cars will always be in your driveway- life will be good!-Right?
WRONG!!! Good debt is a myth! There is NO SUCH THING AS GOOD DEBT!
I have debt, Don't think I am perfect. In fact I have close to 1/2 a million dollars of this "Good Debt" and I could easily double it this year if I desired. But I don't desire.
I have been taught wrong in the past. I believed good debt was ok to have. I believed it would make my life better.
I know many people (once my friends, mentors, and associates) who have gobs of this good debt in the form or real estate, as I do. Now they have gobs of problems.
I know just a handful of people (now my friends, mentors, and associates) who also have much real estate. But they have it with out the "good debt". They have it because they OWN it. no payments, no debt, nothing. Just own it.
So, What is the difference between good debt and bad debt? Nothing. It's a trick question. We should not obtain any type of debt.
But Brian, how do I buy a house? How do I go to school? I am not a die hard no debt at all person. We all need a place to live. Weather you rent or buy, we should only pay 25-30% of our income to our home. If you can purchase a home and not spend more than 30%of your monthly income, then go for it. If not, save until your down payment makes the mortgage small enough that you can. If you need to go to school, do it as cheap as possible, and pay it back quickly.
But Brian, how do I buy a nice car? You need a car, but get one you can pay cash for. Save some money, look for a good deal, and buy it.
If we avoid all types of debt, then we truly become free. We will owe no one. We will be controlled by no one. We can live life to the fullest!