Silver and Gold. An Interesting Scoop.

I have to admit that I’ve never been big on gold or silver investments. Historically, the stock market has been a much better investment over the long haul that silver or gold, but there are times when silver and gold make sense in your investment portfolio. Let’s take a look.

According to Wikipedia from 1970 to 2010, gold’s growth was 3,792% while the Dow Jones Industrial average was 1,280%. That makes gold look like a very good investment tool! However, from 1975 to 2010, the Dow Jones outperformed gold 1,259% to 929%, and depending on the day, gold is actually down around 7% from it’s $1,410 value in 2010. Gold peaked around $1,800 in January 2011. Now trading around $1,300, that represents a 27% decline in value.

Now what about silver? In 1970, silver was valued at $1.63 per ounce. In 2010, silver’s valuation had grown to $20.19, a 1,138% gain per Wikipedia. Those numbers however, only tell part of the story. In January 2011, silver’s value peaked near $50 per ounce. Today, silver’s valuation fluctuates around $17 per ounce. That’s nearly a 65% decline in value from it peak in 2011! But still, if you had purchased at just the right time, silver would still be a viable investment tool, and you may have benefited from it.

As a savvy investor, investing in silver or gold appears to be an inferior investment tool compared to the S&P or the Dow Jones. However, there are times when silver or gold do make sense in an investment portfolio, and if you are looking deep enough for the right signs, you may just be able to benefit from buying some silver and gold. Perhaps one of those is upon us now.

Sometimes the best investment decision is to follow the leaders. In this case, the leaders are some very well known players in the financial world. Let’s start with Russia and China. Russia and China have both been acquiring gold at the state level as they both move away from US Dollar holdings, according to Bloomberg.com. You can see the aggressive acquisition of gold by both Russia and China with the Official International Gold Holdings.

Another major player to watch is JP Morgan Bank which has aggressively been acquiring silver since 2010 and now holds the largest ever quantity of silver reserves in history. In 2014, this article at the Market Oracle was published related to JP Morgan’s acquisition of silver naming them as the largest silver holder in history. It is estimated that JP Morgan may be sitting on as much as 700 million ounces of silver. So you have to ask why? Considering silver is down 65% from it’s high in 2011, JP Morgan stands to make a bundle as the prices return, but you may do well to think that they may know something that we do not.

The last indicator is to see what billionaire investors are doing like Warren Buffett. In recent years, we’ve seen Buffett buying up infrastructure and energy. Another way to look at this is that he is buying up transportation of goods and oil, which is a commodity similar to silver and gold. Buffet has in the past been a silver buyer himself to hedge against market collapses when he acquired 129 million ounces of silver and held it from 1998 to 2006.

So while I’m not an avid gold and silver buyer myself, the signs are all around us that power players are preparing for something, and we would be wise to pay attention.

Primer on how to buy silver

Tips on buying gold

Great silver and gold vendor

 

Danger. Economic Turmoil Ahead. Be Prepared.

I’m going out on a bit of a limb here to highlight some financial stuff and economic signs that aren’t being covered in the news, but I think it’s necessary. As I bring this stuff up with people in my circles, they are unaware. These things are happening around us, and many people are going to be caught off guard.

The Economic Signs

Last year, I read one of Jim Rickards’ books called the Death of Money. Jim is a former financial analyst for the CIA along with many other qualifications. While Jim included quite a bit of useful information, there were a couple of things that really stood out to me.

  1. Jim highlighted that America came off the gold standard in the early 1970s. That is when our money ceased to backed by gold or any “asset.” However, Jim also highlighted that Russia and China have been working to accumulate gold. I’ll speak more on this later.
  2. In the early 1970s, the US dollar was setup to be the “World Reserve Currency” by an agreement with OPEC to price oil in USD. That has helped to cement the United States as the world power that it is. It is what has allowed America to impose sanctions to such “wayward nations” as we saw fit…mainly to strong arm America’s or the western countries enemies.
  3. Since the Bush administration and more specifically during the Obama administration, have accumulated mountains of debt. In additions to this debt, the US Government and Federal reserve have printed trillions of dollars. This has served to greatly destabilize the value of the USD. Interestingly enough, we have not fully seen the repercussions of this yet which will be mass inflation.

The Death of Money was published in 2014; I read it in 2017. In the book, Jim made several projections which are now coming true.

  1. Russia and China are accumulating gold for the purpose of challenging the USD as the world reserve currency. Without adding too much detail, it is estimated that the top four gold holding entities are 1) the European Union with 8,500 tons, 2) the US with 6,500 tons, 3) China reported 4,500 tons (estimated to be much more), and 4) Russia with 1,500 tons.
  2. China along with Russia would provide an alternative for international trade by allowing oil to be traded with the Yuan, now a gold backed currency.

Normally, projections like this get forgotten over time, however, both of these projections have now come true. In early 2018, China opened oil trading based on the Yuan (Bloomberg.com) thus challenging the Petro Dollar as the only world reserve currency. Iran, Venezuela and other countries are beginning to use the Yuan for international commerce as well. Other news sources covered it as well, RT.com

Cementing the challenge to the US Petro Dollar, Russia is in talks with Saudi Arabia about production agreements that could last 10-20 years. Reuters.com Now this may actually be a good thing as oil and gas prices would stabilize over longer periods of time allowing the world economy to experience less volatility on several levels.

The other big piece of information I have for you is a series of articles related to JP Morgan Chase Bank. In 2011, JP Morgan Chase began acquiring silver. Lots of it. On the books, they’ve acquired 150+million ounces of silver. Unknown, it’s estimated they may have acquired as many as 500 million ounces of silver. By the numbers, that’s about 5,000 tons and $2.5 billion in silver or it could be 15,600 tons and $8.2 billion.

So now you have Russia, China, and JP Morgan Chase all acquiring huge amounts of precious metals (silver and gold) beginning around 2009. You have to ask, “who else might be acquiring large amounts of precious metals? Why?

In reading Jim Rickards’ book about the coming economic collapse and the death of money, he made projections that have now come true, and now we see JP Morgan Chase following one of Jim’s recommendations to protect wealth. Coincidence? I don’t think so.

Okay. So What Now?

So what should we do? I wish I had all the right answers, but I don’t. What I can do though is continue to learn and prepare as best I can.

  • I’ve recently purchased Jim’s latest book, Road to Ruin and I’m eager to see what other nuggets he has for me.
  • Don’t hold too much cash. Inflation causes your cash to lose value. During hyper inflations cycles, it loses value fast.
  • Buy some silver. How To.
  • Buy some gold. How To.
  • Stick with solid financial principles. Pay off your debts. Don’t waste your money.
  • Don’t be too heavy in stocks. Economic turmoil could cut the stock market by 1/3 to 1/2. Diversify your wealth to protect yourself.

Historically, I’m not a silver or gold buyer, but now I am. Gold and silver have not been great investments when compared to the S&P, real estate or other investment options. However, during an economic upheaval, you’re not looking for investment returns. You are looking for financial stability and protection. Gold and silver have been present in the global financial system for over 3,000 years. The USD has existed for a little over 200 years which exceeds the lifespan of typical fiat currencies which is about 27 years.

How Just $10,000 Can Turn Kids into Millionaires

As a father of six kids, yes six, it is my responsibility to teach my kids how to manage and multiply their money. Most parents, like mine, taught me how to work, make money and spend it. They did not teach me how to manage or multiply my money. I had to learn how to do that on my own, and thankfully, I did learn.

Now, it is my responsibility to pass on what I’ve learned to my children. Hopefully, since they are learning about money as children and not as a twenty five year old as I did, they will be much more successful with their money. If I do a good job teaching them, they may be able to become millionaires as well, and we can keep building family wealth and our ability to help other people in need.

Lately though, I’ve been thinking a little differently. Sure I can teach my kids how to manage and multiply money. They may even become millionaires, but what if there was a way I could virtually guarantee they would become millionaires. And, I could do it for just $10,000 per kid.

Well, it turns out, that idea isn’t so far fetched. I first got the idea last year while out on a walk in downtown Salt Lake City. I’m sure it was a chilly evening since March is usually cold in Salt Lake. After a bit of work and pondering, the idea started to have legs, and it is continuing to evolve.

Now you may be thinking, $10,000 can’t make someone a millionaire. And, you would be dead wrong. In fact, $10,000 can make someone a multimillionaire, if you start soon enough. The problem is, we all wait too long to get started on our investing. Many Americans wait well into their 30s or 40s to begin investing and saving for retirement. While it’s better late than never, the real opportunity to build wealth needs to start much sooner especially if you are going to turn $10,000 into a $1,000,000.

I know it sounds little like magic or hocus pocus, but it really just boils down to time…and economic and political stability. Let’s indulge ourselves a bit by assuming economic and political stability will exist in the future. Then we just need to concern ourselves with what happens when we invest $10,000.

According to Investopedia, the average growth rate for the S&P 500 dating back to 1928 is 10%. At 10% growth, it takes money about 7.2 years to double your money, which allows us to multiply our money like this over a 70 year period.

  • Initial Investment: $10,000
  • 7 years: $19,487
  • 14 years: $37,975
  • 21 years: $74,002
  • 28 years: $144,210
  • 35 years: $281,024
  • 42 years: $547,637
  • 49 years: $1,067,190
  • 56 years: $2,079,651
  • 63 years: $4,052,651
  • 70 years: $7,897,470

Now, why did I use a 70 year period for this example? The answer is simple. Because if you put $10,000 into an investment fund the year a child is born, allows it to grow in this manner. The number years mirror the child’s age. Are you getting the picture yet? $10,000 in an S&P Index Fund could become $1,067,190 by age 49 based on historical returns.

Now I know that sounds like a long time however, based on statistics, the average population life expectancy worldwide is approximately 70 years. In theory even with economic downturns, $10,000 will turn into $1,000,000 within a person’s lifetime between 49 and 70 years. If everything goes well, $10,000 could even make a person into a multimillionaire. So let’s look at the chart a bit differently based on age.

  • Initial Investment at birth: $10,000
  • Age 7 years: $19,487
  • Age 14 years: $37,975
  • Age 21 years: $74,002
  • Age 28 years: $144,210
  • Age 35 years: $281,024
  • Age 42 years: $547,637
  • Age 49 years: $1,067,190
  • Age 56 years: $2,079,651
  • Age 63 years: $4,052,651
  • Age 70 years: $7,897,470

Time for some questions.

  • “If you could make your kids into multimillionaires, why wouldn’t you?”
  • “How would it change a your child’s thinking if they KNEW they were going to be a millionaire?”
  • “If money were not an issue, what would your children and grandchildren do to help others? How much good could they do?”
  • “If there were more millionaires, with good hearts and values, how would our world change?”

I came from financially challenged family. The idea of being a millionaire was not in my head nor in my vocabulary. The possibility of being a millionaire was a foreign concept to me. At age 25, that all changed, and along with it how I thought about money and myself. The perception of who I would become grew together with the possibilities of what I could accomplish in life.

Now, I have six children. My oldest is headed of to college in the fall. My youngest is six. I look forward to how they will use the principles and the money they will be empowered with to help others in need and to change our world for the better.

With a bit of work and vision, it’s possible to change the financial outlook of our families, our children, our country and the world. Now what will you do? A great option to start is with a Vanguard S&P Index Fund.

Detours on Life’s Journey.

What a crazy couple of years my life has been. Quite a few of my friends often accuse me of TMI, and I confess I’m guilty as charged. Today may be one of those TMI days, but I’m a pretty open book. I like it that way.

Two years ago on May 2, 2016, I was released, fired, from an amazing company working in the personal finance education space. After fifteen years and seeing the company grow from 30 people to 550, it was my time to go. I tell people one of the best things that ever happened to me was joining that company, and when it was my time to leave, one of the best things that happened to me was to leave. Although I found it emotionally easier than I expected to move on, the resetting of life and career had to take place, and after fifteen years with the same company, some unplugging too. In the midst of all this, the timing was uncanny.

My mother-in-law had been battling cancer for about a year. She passed away in July 2016 and was buried on July 29th, my youngest son’s birthday. Without a job, I was better able to support my wife, her family, and my family through this time.

My mother was diagnosed with cancer in August 2016. She passed away in early November and was buried on November 15th, my middle daughter’s birthday.

As you can imagine, 2016 was quite an upheaval time for our family, and in the midst of it all, I spent an enormous amount of time delving into politics. I discovered how utterly naive I was about our national and global politics. What I learned truly shocked me and transformed my thinking, but I’ll save that for in person discussions with interested parties.

In January 2017, I found myself yet again working in the personal financial education space for a small company out of Salt Lake City, UT. I hadn’t sought out our planned to re-enter the personal finance space, but there I was as COO for a company that was trying to compete with my previous employer. With a little team of 12 people, my new journey began.

In the first 30 days, I stopped a $500,000 mobile app project, released 4 people, discovered how bad our financial position really was, and put together a brand, product and marketing plan to get things moving in the right direction.

In the next 30 days, the CEO revealed he and his five companies were under investigation. As expected, investment funds dried up quickly, and my time with the company ended May 31, 2017. After a short five month stint, I was once again unemployed. Five months, may not sound like a long time, but its what you do with the time that matters.

During my five months in Salt Lake City, I did a lot of soul searching and thinking. A lot. Searching for what was really important to me as 46 year old husband, father of six, Christian, and digital entrepreneurial minded guy. I thought about what possibilities the future held and where I wanted to go.

Being away from family five days a week, three weeks a month, makes you realize how valuable your family really is. Working sixteen hours a day, five days a week, makes you realize how valuable life really is. Seeing people struggle with life and money helps you realize how important people really are. Helping and inspiring struggling people is extremely satisfying.

And then there was all this free time I had from being unemployed. Hmmm. I kinda liked this freedom. Freedom to explore new endeavors. Freedom to be with my family. Freedom to be with my kids. Freedom to be with my wife as I sit in a coffee shop now with her writing this blog post. I rather enjoy this freedom, and I am very reluctant to give it up. It was interesting to me why hadn’t I thought this way before.

Since childhood, I was programmed for the job mentality getting my first real job at thirteen. From there, the job mentality continued to get more deeply ingrained. Over the last two years, I have been blessed to meet dozens of people who have broken free of the “job” mentality, and they have inspired me to do the same. Jobs are great tools for many people, but for me, they’ve run their course. I’m looking forward to taking months off with my kids through the summer and traveling. Even as a top level executive, I wouldn’t get that level of freedom if I’d stayed with either of my former employers.

Where has my journey and all of my thinking and soul searching led me over the last two years? Well, it has led me to a place I never imagined. In May 2017, I decided to write a book and began the task. In June 2017 with all my free time, I completed the first draft of 60,000 words. This month, I am putting on the finishing touches, and turning over a finished manuscript to my publisher on Monday, April 2 with my book due to release later this year. Crazy.

So let’s do an inventory of the last three years, marriage on the rocks in 2015 (did I forget to mention that?), lost job of 15 years as top level executive, loss of mother in law and mother due to cancer, and “reboot” job ended. Yet, through all of that, now my family is stronger and happier than it has ever been, my marriage is better than its ever been (pretty freaking amazing actually), and I’m finishing my first book (more to follow).

Aren’t the detours on life’s journey interesting? Even when things are crashing around you, do your best to keep moving forward. You’ll be amazed at what can happen.

Through this season of life, I found a few things that really helped me keep moving forward.

  1. Marriage Counseling. Recently, I’ve spoken with several friends that are going through divorces, and I admit that my wife and I were dangerously close as well. However, we chose a different road when facing our marital issues.

    I’ve spoken with people that say, “we went to marriage counseling.” Then I ask, “how often?”, and they reply monthly for three months. Sadly, my friends were not serious about saving their marriage.

    When I first suggested marriage counseling to my wife, she was reluctant and a bit afraid. I simply asked, “Do you want the next 18 years of our marriage to look like the last 18 years?”, and she replied, “No.”

    At the end of our first session, the counselor asked when we would like to come back. I said next month. My wife said next week. That was the beginning of weekly marriage counseling for six months, and it was the beginning of reshaping our marriage into what we have today as we sit together at the coffee shop writing. She’s amazing.

  2. Learn and explore. When I lost my job, I spent a lot of time learning about politics, real estate, investing, raising kids, being a better husband and other things. I should have been doing that all along, but with a job and six kids, life gets a little overwhelming.

    During my jobless season, we were fortunate to have enough money in place to give me flexibility to learn and explore new areas in life. Now once again, it’s a continuing part of who I am. My reading list has ballooned into new topics causing my mind to expand.

  3. Good people. It is so important to surround yourself with good people. As a working family man, I had allowed myself to become too isolated from other men. Truthfully, my parents had very few friends and were very isolated. I followed their example, and it was unhealthy. The additional free time to reflect on life, allowed me to address this issue in my life.
  4. Be open to new things and new opportunities. Over the last year, I’ve been exposed to new ideas and opportunities. Things like cryptocurrency which I’ve avoided for the last seven years are now on my radar. While one day I wanted to write a book, I didn’t think it would be in my 40s, and I didn’t think I’d write it an be published all in one year! But, I had the time, idea, and desire, so why not? After that, it just became work to do.

Life’s detours sure can be interesting.

Taking Advantage of Our Millionaire Opportunities.

What an exciting time it is to be in the financial space. The financial markets are at all time highs with the Dow Jones breaking 25,000. Personal and governmental debt has reached extremes possibly causing an implosion of the entire western financial system at any time. Russia and China are weaning themselves off the western financial system by working to create a gold backed alternative currency with the goal of dethroning the US dollar as the only world reserve currency. And then there’s cryptocurrency, where new “Bitcoin Millionaires” are being minted regularly.

In this crazy financial climate, the question is, “what are you doing to build and protect your family’s wealth?” Too many of us are going for the immediate gratification of that new car, luxury vacation, or indulging in some other way to spend your hard earned money. The reality is, it’s what you do with your money today that will determine if you will be a millionaire or multi-millionaire tomorrow. Does that make you think differently about how you are going to spend your money today? It should. Every dollar you spend costs you multi-dollars in the future.

At a meager 10% annual growth rate, $500 spent this month would have become $2,000 in just 14 years if you had invested it. $8,000 in 28 years. Now, how will you spend that $500 this month?

Perhaps, you have a bit more disposable income than the average person. Maybe you have $5,000 to spend this month. If you spend that $5,000 this month, you just cost yourself $20,000 in 14 years or $80,000 in 28 years.

Whatever money you have available, if you want to be a millionaire, you have to learn to multiply your money rather than spend it. To multiply your money you have to practice taking what you have and turning it into more. You can’t do that by spending it all on the latest gadget or your favorite latte at Starbucks.

Now, let’s get a little radical. 10% is a great annual return if you’re using real estate or the stock market, but what about getting a better return? Sometimes opportunities are all around us, but we miss them. I missed one in 2003 when my wife told me to invest in Apple Computers at $4 a share. Ouch. That one still hurts. Hindsight is usually 20/20, and we recognize our missed opportunities. Why do we miss these millionaire maker opportunities? That is a great question. Sometimes we’re just clueless about the opportunity, and it isn’t on our radar. At other times, we’re just not willing to take the risks. Well, the opportunity is here again and it’s called cryptocurrency. Bitcoin, Ethereum, Litecoin and the like. How do I know this is a millionaire opportunity? Because I’ve met quite a few people who have already become millionaires through cryptocurrencies. I’ve recently met several people who invested modest amounts between $5,000 and $50,000 who saw their investments grow to over $1,000,000.

Over the last several months as I’ve continue to get deeper into the cryptocurrency industry, I’ve recognized we’re still in the early stages of the industry, and we are quickly entering the early adoption phase where the industry takes a deeper hold on society and becomes more mainstream. The news is all around if you look for it. Crypto Coins News and Coin Telegraph keep you abreast of the daily industry news.

During my cryptocurrency dive, I’ve talked with dozens of people about cryptocurrency. Some people are taking the risks with cryptocurrency investments, and some are skeptics. The skeptics are usually the tradition financial and investing guys committed to the status quo and what they know. I would call these guys safe traditional investors. Cryptocurrency is too new and volatile for them. To them it’s a bubble waiting to pop. What I believe they are missing is that cryptocurrency is the birth of an industry. It won’t follow all the traditional rules of investing. When Ford created the car, he created an industry. It changed everything. Here we are again with Bitcoin in the financial market

I believe the “wise” risk takers will be smiling with millionaire, and I believe that the skeptics will once again be reliving the “missed opportunity moment.” In time, we will know who is right and who is wrong.

In any case, you can’t be a fool with your money or investing. Whether you want to stick with traditional investing tools like real estate and the stock market or you prefer riskier investments like crytpocurrency, it is important to take advantage of your millionaire opportunities and be smart about them. Educate yourself and sync up with people who are smarter than you on the topic. As part of my cryptocurrency learning, I connected with the team at Crypto Capital Club’s Telegram Chat and Adela Investment, the first Cryptocurrency Investment Fund based in Nashville, TN. Adela’s team has helped bring me up to speed on the cryptocurrency space. A few other great resources include Chris Dunn and The Bitcoin Knowledge Podcast hosted by Trace Mayer.

I always remember to consider the risks with any investment. Here are some simple rules that I follow.

  1. I never invest more money than I am willing to lose if things go 100% south.
  2. I never risk money I need. I could lose it all.
  3. I know cryptocurrency is considered a “high risk” investment at this time. It is very volatile. As the industry matures, the risk should become lower.
  4. I only put at risk 5-10% of my net worth. If things blow up, I have plenty of money to fall back on to keep going.

Let me know if you become a “Cryptocurrency Millionaire”. I’d love to hear your story.

Fiat Money vs. Cryptocurrency

We are definitely living in a very interesting time in history on many levels. While the world is itself in a period of turmoil and change throughout the Middle East and Europe, the financial industry is also undergoing significant change. Unlike what is happening overseas, which is somewhat visible to the American public, what is happening in the financial world is much less visible to Americans. I’m talking about cryptocurrencies including Bitcoin, Ethereum, Litecoin and the other 1,500 altcoins (an altcoin is an alternative cryptocurrency to Bitcoin).

While I’ve known about cryptocurrency as far back as 2010, I didn’t take the time to learn about it. As I’ve learned more about the cryptocurrency industry over the past year, I’ve become more fascinated with it and the potential it represents to the financial and commerce world. However, whenever speaking with the vast majority of my associates, I’m reminded how little most people know about cryptocurrency.

When something new like cryptocurrency is introduced, there is a period of denial and ignorance for most individuals. Cryptocurrency is very different from what we already know about silver, gold and fiat currencies like the United States dollar. Because of this “new idea”, it will take time for the majority of people to accept that a different form of currency is not just coming, it has arrived.

The creation of cryptocurrency is not very different from the creation of any other currency in ancient history. The only difference is that it is digital instead of tangible. Once you learn more about the different types of monies used throughout history including beads, coins, silver, gold, paper, and more, it is not as difficult to realize that we’re seeing yet another evolution of the monetary system. One that eliminates a primary problems with fiat currencies, counterfeiting. If you’d like to read up on the history of money, head over to Wikipedia or PBS.org for a lesson.

Now, what about Fiat vs. Cryptocurrency? Since the creation of Bitcoin in 2008/2009, cryptocurrencies have been under attack by established monetary, investing and business leaders. Every year since its inception, “experts” have predicted the demise of Bitcoin and cryptocurrencies roughly 10+ times per year. You might say in the words of Mark Twain, “The rumors of my death have been greatly exaggerated.” Cryptocurrencies have survived repeated assaults against their viability and legitimacy. This isn’t going to stop any time soon, but in the end, a lot of people will be eating crow when it comes to cryptocurrency as a viable financial tool.

While the US dollar is the dominant form of currency in the world today, I think we can all get distracted from the reality that worldwide, government currencies come and go over time. The US dollar will not remain dominant forever. Currencies also go up and down in value based on the current economic situations. For you money nerds out there, you might enjoy looking at the changing value of the dollar historically or versus other currencies. Inflation eats away at the value of fiat currencies like the US dollar.

While some may say that the argument is fiat currency vs. cryptocurrency as the title of this article suggests, the real question is “will cryptocurrencies like bitcoin and others play a role in the financial markets long term?” Don’t be suckered into the argument of fiat currency vs. cryptocurrency. That’s not the real question on whether or not cryptocurrencies will survive long term or make a viable investment asset. Very smart people fall into varying degrees of beliefs on both sides of the question.Only time will prove who is right.

With the emergence of ecommerce, did we see retail stores disappear completely? No. After 20 years, ecommerce finally surpassed the $300 billion mark in 2015. By comparsion, the entire retail segment for the United States stands around $4.7 trillion for 2015. Ecommerce has it’s place in the market, but it hasn’t come close to replacing the entire retail chain. Cryptocurrencies will likely serve a similar role in the financial space for the near future. They won’t replace money entirely anytime soon, but they will fill a very needed role.

Those who believe “cryptocurrencies are here to stay” are investing and making a lot of money. Those who believe “cryptocurrencies are going to fade away” may well find themselves using cryptocurrency to make purchases in the future and like all the other previously missed investing opportunities, they’ll regret missing this one.

 

Cryptocurrency Headed Up. Are You In?

Confession. I’m a tech guy and financial guy. I started my career as a manufacturing/mechanical engineer, then in 2001 switched careers to a internet-website-tech-business entrepreneurial role eventually becoming CIO then COO of a $100+ million business. Cryptocurrencies starting spinning up in 2009 with Bitcoin, and I missed it. Fortunately, it’s not quite done yet.

With every new industry innovation there is the cutting edge (bleeding edge as some call it), then come the early adopters, then come the late adopters, then come the laggards. So where are we with cryptocurrency? We’re moving from the cutting edge into the early adopters phase. How do I know that? Simple. More press. More adoption. More use cases. More money. For example:

  1. Banks have started testing. The banks are late to the game, but they will catch up fast. If they don’t, they will be obsolete, and they will be gone…or at least lose a huge chunk of business.
  2. Corporate CEOs are beginning to back it.
  3. Use cases are expanding

I could go on like this for pages and pages, but you need to look it up yourself. Crypto Coin News is a great source.

So back to ARE YOU IN? Yes, we missed the big money and opportunity during the cutting edge, but we also avoided the risk that any new industry innovation brings. I’m okay with that. Now however, we are in early adoption phase. Returns will probably be less, but still good. Risk is lower…the proof of concepts are done, the use cases are growing, and adoption is growing. A great opportunity, with less risk…but still risk.

The question you face now is will you be an early adopter and make money, or will you be a late adopter and laggard who just uses cryptocurrency to purchase things?

People Say Bad Things About Crypto

Smart people have been saying bad things about crypto since 2009. It’s going away. It’s going to fail. It’s a ponzi scheme. It’s not backed by anything. Let me answer these things for you in sequence.

  1. It’s going away. It’s going to fail. It’s a going away. It’s a bubble.
    People who don’t get it, say it. So far, many of the naysayers have changed their tunes. A few examples of people who have changed their tunes.

  2. It’s a ponzi scheme. It isn’t backed by anything.
    • This one makes me laugh a bit. Pull a dollar out of your pocket. Now look at it and ask yourself, what gives that value? You’re answer should be “you.” You believe that dollar has value so it does. Along with you billions of other people believe that dollar has value, which is what makes it valuable.
    • Let’s dive a little deeper into economics. In the 1970s, the United States abandoned the gold standard. That’s right, your dollar’s value is not tied to gold. While you can buy gold with your dollar, as long as someone will give it to you, you can’t get gold from the government.

      Also in 1970s, the United States struck a deal with the middle east to price oil in dollars. All oil in the world from 1970s until this year, 2018 was bought and sold in US dollars. This made the dollar the global currency. Countries bought and sold goods in US dollars because it was tied to gold. However, that is about to change.

      What most people don’t know is that China, Russia and a few other countries are tired of the Western elite bankers “BS” and strong arm economic tactics (i.e. sanctions). China, Russia and others have been accumulating gold with the intent of breaking the Petro-dollar. Beginning in 2018, China will open their own oil trading exchanges based on the Chinese Yuan. The Yuan will be tied to gold. Russia and China are the first two countries to begin international trade on this new financial system. Gone are the days of the US sanctioning Russia because Russia isn’t following the Western “agenda”. I think this is a good thing since the west has essentially been starting wars for its own economic benefit. I.e. Iraq war, Libyan war, Syrian war, and the recent Turkish coup attempt. Note that Russia stepped in to stop the Western agenda in Syria.

      Now that you know, China and Russia are valuing their countries money against gold. Why does this matter?

    • The United States and Western Central Banks (run by the central bankers, Rothchilds, etc.), have been printing money and the people and government of America have been accruing massive amounts of debt. As the new Yuan financial standard comes online, the western fiat monies (tied to nothing), will begin to fail. This is much sooner than you might think. Yes, a financial collapse is coming. When? Sooner than you think.
    • Our government is roughly $20 trillion in debt, depending on who you talk to. However, when the numbers get that large, can anyone truly be right? So I ask you again. People believe our money has value because it is backed by our government. However, our government is bankrupt. The pin just hasn’t popped the balloon yet. It’s coming. Once that happens, all perceived value of the US dollar will disappear. The system will be dead and then we will have to rebuild.
    • I said all of that for this purpose. What is the value of the dollar? Perception. What is the value of cryptocurrency? Perception? What is the value of gold and silver? Perception. We as a people ascribe value to things. We determine the value. When enough people perceive something has value, it becomes value. When enough people want something, it has value.

      Cryptocurrency is growing in value right now because people perceive it has value. In truth, cryptocurrency is as valuable as gold because the people believe it to have value. For example, 1 bitcoin is priced around $10,000. 1 ounce of gold is priced around $1,300. Essentially, 1 bitcoin is worth 8 ounces of gold.

In my opinion, it is we the people that give value to anything whether it be gold, silver, fiat currency like dollars, or cryptocurrency. However there is one very big difference between crypto currency and the dollar. Central Banks and the government control the value of the dollar. The people control the value of cryptocurrency. Personally, I’m much more comfortable with people controlling the value of their currency. However, Governments and the Central Bankers will not give up that power easily.

Volatility of cryptocurrency will eventually settle down as we move out of the early adopters phase and into mass adoption. Stay tuned. It’s guaranteed to be an interesting ride.

 

Cryptocurrency 101. Real Deal or Not.

I’ve been interested in personal finance and building wealth since I was 25. It’s now 2018, and I’m 47. My fascination with learning about money started when I realized I made $39,000 in 1995, but somehow ended up $16,000 in debt. WTH? For 22 years, I’ve been learning about money. How to make it. How to save it. How to multiply it.

Now, we have a new development in the financial world, and depending on who you talk to, the jury is still out on if cryptocurrency will be a total bust or the biggest thing to hit the financial world since gold. I’ve been studying cryptocurrency more lately. While some form of digital currency has been around in various forms for over 20 years, the latest iteration came into being with Bitcoin in 2008/2009.

As I’ve gotten deeper into bitcoin and cryptocurrencies, I’ve realized that the resources are very scattered and it can be very difficult to make sense of it all. It shouldn’t have surprised since the industry is still so new. As with any new industry, it takes years, even decades for the industry and knowledge to mature. Cryptocurrency is still very much in its infancy and early stage development.

During my learning process, I came across a group of individuals who are launching a cryptocurrency hedge fund. As a financial guy and business entrepreneur/executive, I decided to help them pull some of the details together for their business, which should be launching in the next 90 days. As a result of my efforts, we’re putting together some resources to help explain and simplify cryptocurrency. We’ve coined this explanation and getting started steps “Cryptocurrency 101.”

Cryptocurrency 101

Cryptocurrency History and Foundation

The current iteration of cryptocurrency began in 2009 following the financial upheaval brought about by the banking industry and traditional monetary practices. While modern cryptocurrencies are a more recent innovation in the financial sector, it is important to recognize that historically, the digital and cryptocurrency concept began much earlier in the mid-1990s.

In the mid-1990s, DigiCash was founded by David Chaum. Since that time, multiple other iterations of digital currency models have had their run including egold, prepaid cash cards, and PayPal. All of these prior contributions helped in the development of digital payment systems and commerce finally bringing the latest innovation to market.

In 2008, the Bitcoin paper was released by Satoshi Nakamoto. With the release of the bitcoin, the idea of a decentralized currency was launched. While Bitcoin was the first in this generation hence the reason it is called a “1st generation cryptocurrency”, many others have followed it. They are referred to as “alt coins” or “alternative coins.” With bitcoin being the “1st generation coin”, these alt coins are classified as “2nd generation” and “3rd generation” cryptocurrencies. Currently, there are over 1,500 cryptocurrencies.

More on the foundation of crypto currencies…
https://en.wikipedia.org/wiki/History_of_bitcoin
https://en.wikipedia.org/wiki/Cryptocurrency
https://www.moneycrashers.com/cryptocurrency-history-bitcoin-alternatives/

The Market Problem and Innovation

Technologists and entrepreneurs have attempted to bring digital currency to market since the 1990s. The financial problems of 2009, pushed one individual, a.k.a. Satoshi Nakamoto, to publish the Bitcoin papers.

Problem #1 Centralized Banking

The centralized banking and currency system which governs the finances of most countries had nearly collapsed. Engineered inflation and debt by the financial powers in the global economy had nearly brought the world to a devastating financial impasse. In the end, it was the people’s tax money that bailed out the banking and financial sector from their failures.

Problem #2 Trust Based Slow Transactions

In addition to widespread financial mis-management by the banking sector, the financial industry had yet to undergo any of the major innovation that other industries had experienced from technology. This is best seen in the clearing process for transactions.

Payment processing for small transactions could take days to clear while larger business or international transactions could take weeks. It is time for innovation in the financial sector. Discrepancies among the transactions required manual processing to clear up, and a certain amount of loss is acceptable as part of the process. The result is a banking industry charges $1.7 Trillion per year in transaction fees just to move money around the world while collecting interest on the money during the hold and transition times.

Both of these market problems are addressed with the cryptocurrency innovation. First, a decentralized network of computers handles the management of the currency, who owns it and which transactions are taking place. This removes the need to use the banking industry as a “clearing house” to track ownership of funds. Peer to peer transactions without the need of a “middle man.”

Secondly depending on the currency, transactions take place in a matter of seconds rather than hours, days or weeks with the current banking system. Near instantaneous transactions is the goal. It should be recognized that the crypto currency technology is still in its infancy and developing. As more users and transaction load are applied to specific cryptocurrencies, like Bitcoin, the limitations of the technology are shown. Hence the need for more advanced “alt coins” technology. Bitcoin is a 1st generation cryptocurrency. Ethereum, Litecoin and others are second generation currencies, and as a result, address some of the design flaws of bitcoin including transaction speed.

Virtually every industry has seen innovation changes from the technology age.

Communications innovations like email, text, and video conferencing.
Retail with ecommerce and Amazon.
Marketing industry with the advent of search engines, Google and Facebook.
Music with Napster followed by Pandora, Spotify, and iTunes.
Entertainment and video with online streaming.
Travel industry with Expedia, Travelocity, Priceline, etc.
Hotel and Vacation lodging with Hotels.com, AirBNB, VRBO, and Booking.com.
Transportation with Uber and Lyft.

Each of these industries underwent extreme innovation makeovers. It is now the banking and financial industries time to undergo the same type and level of innovation. While we have not seen the final developments in the cryptocurrency space, there is one thing that most experts agree on…cryptocurrency is here to stay.

The Cryptocurrency Market

As of late, Bitcoin has dominated the industry and news, but other coins are now rising up to fill their place in the cryptocurrency space. Since Bitcoin, over 1,500 crypto currencies have been created and are in different stages of maturity.

Bitcoin has seen substantial growth in value since it’s inception in 2009. The last several years have seen it increase in value causing many to classify it as a new asset class. With its increase in value and growing adoption as a medium of exchange, Bitcoin has paved the way for the new wave of alt coins and their growing valuations.

Bitcoin Annual Valuations per Coin
December 31, 2017 – $12,622
December 31, 2016 – $967
December 31, 2015 – $429
December 31, 2014 – $317

2017 was a monster year for crypto currency growth and valuations. Bitcoin’s value grew over 1,000%, while Ethereum experienced nearly 10,000% growth and Litecoin saw almost 5,000% growth. Other cryptocurrencies experienced significant growth as well.

Bitcoin has come to be called “digital gold” by many people as it has become the primary medium of value and exchange in the cryptocurrency space. Much like gold was a primary medium of exchange for transactions over the last 3,000 years. Ethereum has taken on the title of “digital silver” as it has been the second most valuable cryptocurrency for an extended period of time. Both of these currencies are considered “trusted” and as such are the primary methods for obtaining other cryptocurrencies for speculative investors.

Many investors are familiar with “IPOs” or “Initial Public Offerings.” However, investors are not as familiar with “ICOs” or “Initial Coin Offerings.” Initial Coin Offerings companies to raise funds for their projects without all the regulation of an IPO. It also allows investors to get in early on a new development project. The speed and fervor surrounding these ICOs is very reminiscent of the .com days from 1998 to 2002. This comparison has caused many financial minds to call Bitcoin and the cryptocurrency space a “bubble”, while other entrepreneurs disagree with the comparison instead saying that we are witnessing the birth of something new in the financial sector the potential of which we do not yet fully understand. In any case, there will continue to be development in the cryptocurrency space and its full effects on the financial and commerce markets are yet to be fully seen or understood.

Many exchanges have been created as the space has expanded including gemini.com, coinbase.com, gdax.com, bittrex.com, hitbtc.com, kraken.com, binance.com, and more.

For a list of exchanges, visit https://www.cryptocompare.com/exchanges/#/overview

Getting Started with Cryptocurrency

To get started with cryptocurrency you have to decide which type of user you are: 1) Investor, 2) Miner, or 3) User. Let’s review.

Investors – want to benefit from the newly developing cryptocurrency space by making money through investing in the projects. This can be done through the ICO, trading for coins on one of the exchanges or investing through a cryptocurrency fund and letting someone else do the investing for you. The investing types could be classified as “Do It Yourself” or “Someone Do It for You.”

Miners – many of the cryptocurrencies allow “mining.” Mining is when people use their computers to expand the cryptocurrencies network. The specific cryptocurrency mined rewards the miner with coins for helping the network expand to serve the users.

Users – As adoption continues to grow in the merchant community, users continue to shop and buy things at a greater rate with bitcoin. In fact, there are some things online now that you can only buy with bitcoin. ATMs are also being put in across the world. They are more common today in Europe than America. In 2018, we expect to see larger online merchants and communities being to work cryptocurrency into their systems.

Cryptocurrency Investment Funds

For the average investor, a cryptocurrency investment fund is the way to go. In a speculative and volatile investment like cryptocurrencies, it is important to lower your risk through a good investment strategy. A cryptocurrency investment fund allows you to benefit from a “diversification strategy” by investing in multiple cryptocurrencies.

The fund managers are responsible for staying ahead of the development and growth curve by staying on top of the latest developments in the cryptocurrency markets. With an investment team working full time to analyze the market for the best opportunities, the probabilities of achieving a positive return are increased. However, there are no guaranteed returns on cryptocurrency investing.

Cryptocurrency funds will charge you a “management and growth” fee for their services and responsibilities to grow your funds.

Solo Investing

As cryptocurrency is a newly developing industry, cryptocurrency fund investment options are limited. It has only been in the last 2 years that a more significant number of funds have been created. The majority of investing in cryptocurrency has been done through individual investing. Solo investing can carry more risk especially for the inexperienced investor. Even a seasoned stock market investor can have problems with the highly volatile cryptocurrency space.

To get started solo investing, you will enter the market by purchasing one of the top 2 crypto currencies, BitCoin or Ethereum, through coinbase.com or gemini.com. You will then need to transfer your Bitcoin or Ethereum to one of the exchanges. On the exchange you will trade your cryptocurrency for another cryptocurrency of choice.

The transfer and trading process is a delicate and somewhat “dangerous” in that a typo can cause several irreversible problems.

During the transfer process you could lose your crypto currency if you mistype the deposit address. Cryptocurrency is a “digital asset.” If you lose it, it’s gone. Cryptocurrency is stored in “wallets” or “holding accounts.” As you move your currency to the exchange you are moving your funds from one wallet to another. A typo at this stage means that you sent your funds somewhere else. At that point, your funds will be irretrievable.

Once inside the exchange you will begin the trading process, trading your coins for other coins that you believe will generate growth and a return for you. During the trading process, it is possible to enter a purchase amount that exceeds the current value of the coin you are purchasing. It is like buying something at a premium; you could “overpay.” This possible error is not unique to cryptocurrency, but it is inherent issue with the currency trading systems in general. Be especially careful when doing your own currency trading.

Crypto Mining

Cryptocurrency mining is the backbone of many of the cryptocurrencies. It is viable way for the newly launched coin based businesses and projects to get access to the infrastructure they need to expand without spending their precious capital. It is also a great way for the community and supporters to get involved with the project.

Crypto mining began on a smaller scale with bitcoin and hobbyists, but has now grown to include major enterprise operations. “Mining Rigs” as they are called, range from relatively low cost home computers to computers design specifically for mining costing $2,500 to $15,000. Mining operations are generally located in homes, offices, basements, or warehouses filled with tens to thousands of these specifically designed computers. Miners are paid “rewards” for their mining services which are either Bitcoin payments or payment in the coin they are mining.

Solo mining vs. Pool Mining

As mining has grown it has been more difficult for entry level miners to keep up. In the earlier days of Bitcoin, Ethereum, and other coins, solo mining was possible. As the difficulty of the mining as increased with the size of the network, pool mining surfaced. Pool mining allows an individual to join a group of miners where they can work as one group to continue solving the mining algorithms. Each new miner increase the power of the mining pool. Pooled miners share in the rewards by being issued “shares” of the mining reward. For the more difficult mining operations, this is the only way to get in.

For newer coins, it is still possible to do solo mining and obtain rewards in the coin you are mining. However, the risk is that the coin mined may not be successful long term which means it has little or no value during the time of the mining. However, if it does turn out to be successful, the miner would be able to sell his coins for a nice profit since he obtained a significant amount of them at a relatively low cost.

Cryptocurrency mining resources are available online.
https://www.cryptocompare.com/mining/guides/#/overview
http://www.minergate.com

Last Thoughts

Now back to the title of this post, “Cryptocurrency. Real Deal or Not.” Personally, I believe cryptocurrency is here to stay. In 10 years, cryptocurrency may not look like it does today, but we will likely look back in hindsight and say it was the biggest innovation in the financial world of the last 100 years (or longer).

Resources

Coin Market Cap – https://coinmarketcap.com/

Crypto Coin News – https://www.ccn.com

Chris Dunn – https://chrisdunn.com/

 

Earn Money. Spend Money. Save and Invest Money.

Money can be a complicated thing, but many times we just over complicate it. If you want to be successful with money, it’s really comes down to just 3 things. The three things are how much money you earn, how much money you spend, and how much money you save and invest.

If you pay attention to those three “money metrics”, you’ll do just fine. The problem is that most of us don’t pay attention to any of those metrics, and that’s why most of America is broke. It’s also why so many people end up relying on social security.

Even successful career people don’t pay attention to these metrics, and consequently, they end up squandering years of wealth building opportunity. What do I mean? Well, for most of us college graduates, we enjoy seeing our incomes grow substantially from the time we graduate college through the first 20 years of our careers. However, as our incomes grow, so do our spending habits. We raise our expenses to match our income, and there goes our wealth. Bye bye millionaire potential.

I was on that path when I got out of college. I made $39,000 on my first professional job out of college, but somehow I ended up $16,000 in debt. What?! How the hell did that happen? Fortunately, that was my wake up call, and I made some drastic changes. For starters, I got money smart. I learned everything I could about money because obviously I didn’t know jack. I read Kiplinger’s magazine. I read Smart Money magazine, and a host of other things I can’t recall. That was 20 years ago. It changed me. It transformed my financial future. After I got money smart, I decided I wanted to be a millionaire. I was 26 and decided to become a millionaire by the time I was 40. I made it.

The funny thing about goals and plans. They often don’t work out exactly as you plan, but many times you still hit your goal. I hit my goal, but my path was a little different than I planned. That’s okay. For anyone wanting to become a millionaire, the place where we start is often the same. Get money smart. Then pay attention to how much money you earn, how much money you spend, and how much money you save and invest.

These were all keys elements to my millionaire plan when I was 26, and they’re still part of what I teach today. For anyone who aspires to be a millionaire, they apply to you too.

  1. Pay attention to how much money you earn. Always work on ways to increase how much you earn. If you’re stuck in a job that limits how much you can make, you need to look for other ways to make money, and that may include finding a new job. Don’t let yourself get stuck at an income plateau. If you make $50,000 a year, set a goal and look for ways to boost that to $100,000 a year. If you make over a $100,000 a year, set a goal and look for ways to boost that to $200,000 a year. You can do it. Almost anyone can do it.Early in my career my goal was to make more, but work less. I started out working 60+ hours a week and making $39,000 a year. I was able to lower my hours down to 45 a week an raise my income to $47,500, but I was stuck at an income plateau. Shortly after that, I changed jobs and saw my income soar into six figures plus. I’m sure glad I made that change. It was a key piece of the puzzle on my millionaire journey.My world was rocked recently when I met a new friend. I was about 36 or 37 by the time I had earned $1 million as an adult. It took me about 10 years to earn my first million dollars. Then recently I met a new friend. He rocked my paradigm. He was 22 without a college education when he earned his first $1 million. Ouch. He beat me by at least 14 years.

    Are you “income stuck?” Change it. Get unstuck. Do it today.

  2. Pay attention to how much money you spend. Don’t let your spending habits kill your ability to build wealth. Big ticket items like buying new cars on debt can cost you hundreds of thousands of dollars in future wealth. But bad daily spending habits like eating out can cost you just as much if not more. Take a look at your spending habits and learn to make better decisions. Keep your lifestyle under control until you’ve built your wealth, then you can really enjoy a more relaxed and cushy lifestyle. It’s worth it.If you’re not doing a spending plan, do one. Spending plans and budgets are a pain, but the results are worth it. If you’re not the type of person to run a tight budget, then do a “spending audit” and make adjustments. I guarantee you’ll find money (and your future wealth) slipping through your fingers. Do an audit. Find the problems. Make a adjustments. Every wasted dollar you find can help you build future wealth and help you with your millionaire goal.
  3. Be aggressive with your saving and investing. Many of us are so busy living life that we make excuses for not saving and investing more. The reality is so many of us are afraid of what we don’t know that we just avoid it. Sadly, we’re just too lazy to learn more so that we can get comfortable with it.Many of the people I talk to are clueless about investing tools, the stock market, or real estate. Real estate and the stock market are two of the primary investing tools available to us for wealth building, but very few of us take the time to learn more about them. As a result, we fail to leverage them, and that’s a perfect recipe to stay broke.How much should you save and invest? Well that’s really up to you. If you want to be a millionaire, which is the lowest goal you should set for yourself, you need to account for your age and create your millionaire plan. For most people, $10,000 a year is a good number to hit the millionaire goal in a respectable time, but you still need to account for you age. However, if you want to be an over achiever, keep pushing yourself to do more. Whatever the case is, get started ASAP with whatever  you can do and keep pushing yourself to grow it. Can you do $100 a month this year? Set a goal to double that next year, and then double it again the next year. If you can double that $100/month investment each year for 5 years, you’ll be investing $1,600 a month in 5 years. That’s $19,200 per year! That will add up quickly, and make you a millionaire pretty quickly.

Once you get “money smart” you’ll be better equipped to develop your own Millionaire Plan and build wealth for you and your family. If you don’t have a financial coach, you should get one soon. It’s good to have someone smart to talk with about money and building wealth.

Once you have built your wealth, life gets even more fun. You’ll be better equipped to help other people in need, and it is so rewarding. You can be a millionaire.

Great books/resources to read:
I Will Teach You to Be Rich by Ramit Sethi

Good Financial Cents website by Jeff Rose

 

 

How You Use Your Time Affects Whether or Not You Will Be Wealthy

Have you heard that time is money? As I’ve grown older and a little bit wiser, I’ve realized just how true that statement really is.

Now in my 40s, I look back over what I did with my time in my 20s and 30s. While I’ve attained a moderate level of success moving up through the executive ranks, I can see how much time I wasted, and I’m left wondering how much untapped potential I left on the table. Now heading into my 50s, I’m determined to make the best use of my time possible. Minimize the distractions. Focus on what’s really important. Focus on what creates lasting value for you, your family, your friends, and the people you want to help. The people you care about. For me, that’s about helping orphans and people trapped in poverty mindset and cultures.

Perhaps one of the best books that helped me re-prioritize my time was Robert D. Smith’s 20,000 Days and Counting. Robert does a masterful job of explaining the importance of every single day and encouraging us to make the most of each one. By looking at historical figures and seeing what they accomplished with the time they were given, Robert helps us to take an introspective look at what we’re doing with our time. Are we using it wisely?

Now, if you desire to become wealthy and you’ve set your eyes on becoming a millionaire, what you do with your time will affect whether or not you reach either one of your goals. Millionaire or Not. You Can Choose. One of those choices is what you do with your time.

As I mentioned, I wasted a lot of time in my 20s and 30s. I spent a lot of time on video games and watching movies. A lot. How much exactly? A number that I would be embarrassed to share. Fortunately, somewhere in there I found time to squeeze in some personal growth and development time, and through that time was able to reach a moderate level of success. However, I’m still left watching great people like Tony Robbins, Grant Cardone and host of others who’ve done a much better job focusing and leveraging their time. I’m left wondering what else could I have accomplished if I’d been more focused. Well, I can’t do anything about the past, but I can be more purposeful with the future.

The reality is if you want to maximize your life’s accomplishments, you need to maximize your time. Time bandits as I like to call them, rob you of your time. They keep you from reaching your peak potential.

Time Bandits.
Time bandits rob you of your most important resource. Your time. Whether or not you realize it, time bandits are stealing your future. Minimize the time bandits and you’ll maximize your future.

  • Video games
  • Reality TV
  • TV and movies
  • Overdoing sports tv
  • Social media (Facebook, Twitter, etc.)
  • What other time bandits are stealing your future potential away?

Life Multipliers.
Life multipliers help you maximize your “life output.” They boost your ability to accomplish really cool things during your lifetime, and ultimately how much you can help other people. By using your time wisely and boosting your performance with life multipliers, you’ll leave an impact in your own life, but also on the lives of those around you.

  • Reading a book (Top CEOs read 50+ books per year)
  • Listening to a growth podcast (marriage, money, parenting, career)
  • Hanging out and networking with awesome successful people
  • Picking up some side work to increase your income. Invest it.
  • Starting a small business for additional income.
  • Volunteering to help others in need
  • Learning something new

Resources to help you rethink and maximize your time for a more successful and purposeful life.

20,000 Days and Counting by Robert D. Smith (Amazon.com)

Halftime by Bob Buford (Amazon.com)

7 Habits of Highly Effective People by Steven Covey (Amazon.com)

Time Bandit vs. Life Multiplier Exercise

So try this…

  1. List out 3 Time Bandits in your life that you’re going to remove or reduce.
  2. List out 3 Life Multipliers that you are going to do now that you’ve squashed the time bandits.
  3. List out what results you hope to accomplish with this change. What will be different in your life in 12 months as a result of this change?

Always remember, your time is one of the most precious assets you have. Don’t waste it. Make every minute count no matter what you’re doing.