Entrepreneurs

Money Can Buy Happiness

March 16, 2018 By Twila Van Leer

Contrary to the common adage that says you can’t buy happiness, a massive research project conducted by Purdue University and the University of Virginia indicates that there is a certain amount of happiness that is related to satisfaction with life that comes from a certain income.

The two universities analyzed World Gallup Poll data that was gathered from 1.7 million people in 164 countries and cross-referenced earnings with life satisfaction. The results of the study were published in the journal Nature Human Behavior.

The study acknowledged that costs and standards of living varied among the countries included in the study and factored that into their conclusions.

The upshot for Americans was that an ideal income for individuals is $95,000 per year to obtain life satisfaction. Emotional well-being, the study showed, is achievable at $60,000 to $75,000 per year. Families with children, of course, will need more.

The researchers defined life satisfaction as an overall assessment of how one is doing financially. Emotional well-being related to day-to-day feelings such as happiness, sadness, excitement, anger, etc.

The extensive survey also indicated that once a threshold was reached, additional increases in income actually were associated with reduced happiness, indicating that the more people have, the more they want. They tend to compare themselves with others more often.

There is a happiness “tipping point,” the researchers concluded., related to how well an individual feels about money. A small decline in earnings causes one to relate with others who make slightly lower incomes, perhaps because of the costs that come with higher incomes, said Andrew Jebb, lead author of the study and a doctoral student at Purdue.

He noted that the findings of the large study raise issues about money and happiness across cultures. “Money is only part of what really makes us happy and we’re learning more about the limits of money.“

David Bach Has Financial Answers

January 11, 2018 By Twila Van Leer

When it comes to giving sound answers to personal finance questions posed by the American public, no one does it better than David Bach.

His best-selling “The Automatic Millionaire” was on the New York Times’ best-seller list for an unprecedented 31 weeks for a book on that topic. Over the past decades, he has written nine consecutive New York Times best-sellers that have been translated into 19 languages. He is the only business author to have four books simultaneously on the NYT, Wall Street Journal, BusinessWeek and US Today best-seller lists. His seminars and appearances on top media shows have made him familiar to those who are looking for guidance in their personal finances. More than a hundred million Americans have been exposed to his no-nonsense approach to improving finances.

For simplicity, he boils his advice down into 15 “timeless truths.” To wit:

• Always spend less than you make. Life will be easier and less stressful.

• Automate your financial life, rather than wasting time budgeting. Budgeting causes frustration and failure, he believes. Automation relieves the stress.

• Be an investor rather than a borrower. Investors get rich. Borrowers stay poor.

• Buy a house. Don’t rent. Homeowners and landlords make money and build wealth. Renters stay poor.

• Don’t lend money to family or friends. You’re not a bank and you could lose both the money and the relationship.

• Never invest in things you don’t understand. If a potential investment cannot be explained to you on one piece of paper, it’s too complicated.

• Invest for the long term. Building wealth takes decades, not days.

• Never invest on margin. Leverage kills you when things go wrong.

• Never assume that “things are different this time.” Things work until they don’t work. Never bet the farm. You could lose it.

• Once you become rich, stay rich. It beats starting over again. Talk to those who have been in this position and they’ll attest to that truth.

• Give back. The more you give, the more you will grow, and you make the world a better place. (Bach is known for his charitable contributions.)

• Never give up. No matter how many times you fail, you haven’t lost as long as you get up and try again.

• Compound interest is a miracle that works when you work it. Save $10 per day at 10 percent interest and in 40 years, you’ll have $1,897,233. If the interest is only half that, you’ll still have near a half million dollars, a considerable amount. Your older self will thank you.

A bottom-line quote from Bach crystallizes his philosophy: “When your values are clear, your financial decisions become easy.”

Bezos Surpasses $100 Billion in Wealth

December 8, 2017 By Twila Van Leer

Jeff Bezos Surpasses 100 Billion — The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share.

Jeff Bezos, founder of Amazon and Amazon’s largest shareholder captured the title of Richest Man in the World. When Bezos reached the $100 Billion in wealth, the moment was noted by Forbes Real-Time Billionaire Rankings. The exact time when the total ticked up to $100 billion was 1 p.m. Eastern Time on Friday, November 24, 2017. He was able to continue his $100 billion figure for 5 days – through November 28.

His riches are a reflection of his long term devotion to building Amazon into the biggest “Everything Ecommerce Store” on the planet. Even his selection of the name of Amazon – the largest river in the world – reflects his goals and aspirations.

Bill Gates, Bezos’ competition in the race to see who can amass the greatest fortune based on the world’s technology mania, once enjoyed a few hours in the $100 billionaire’s spotlight. His personal wealth reached that pinnacle in 1999, but it was very short-lived. Gates today lists his personal wealth at $89 billion-plus. That doesn’t include the $35 billion he has donated to his charitable foundation.

The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share. Amazon experienced a similar phenomenon in July, when a surge added $10 billion to the bottom line in one day.

Bezos, now 53, has capitalized on his successful wedding of technology and retail sales. He created an ecommerce phenomenon that seems to have no end. It is due to his unique genius that this holiday season is expected to end with record-breaking online purchasing.

Secrets Of Some Millionaires

November 12, 2017 By Twila Van Leer

Millionaire Secrets — According to financial guru Dave Ramsey, more than 80 percent of America’s millionaires are ordinary people who have accumulated their wealth in one generation.

Everyone knows that when you have a million dollars, give or take a few, that you live high. Right?

Wrong. In some instances, people with a lot of money continue to live modestly. For instance, in 1958, Warren Buffet, whose net worth today is pegged in excess of $75 million, bought a home in a quiet Omaha neighborhood for $31,500. He still lives there, although its value now is more than $800,000. That’s still pretty tony, but not what you’d expect for one of the richest men in the world.

Actually, according to financial guru Dave Ramsey, more than 80 percent of America’s millionaires are ordinary people who have accumulated their wealth in one generation. Their stories are told in a book by Thomas Stanley, “The Millionaire Next Door.”

Among the lessons Stanley draws from his study of the ultra-rich:

They read. On average, they read at least one non-fiction book a month. Quoting late-President Harry S Truman, “Not all readers are leaders, but all leaders are readers.” A constant desire to learn is a hallmark of the successful. They spend more time in books, particularly biographies and leadership how-tos than with the latest reality show. When they have free time, they use it wisely.

They understand the principle of delayed gratification. Many of those with money have spent a lifetime of sacrificing immediate gratification for long-term gain. They aren’t afraid to own a used car, live in a modest neighborhood and wear inexpensive clothing. They don’t waste time and resources in the elusive race with “the Joneses.” They tend to save for the things that they want, including education, a down payment for a home, retirement.

The popular concept of “debt as a tool” evades them. They avoid debt and prefer to save for what they want. Car payments, student loans and same-as-cash financing are things they avoid. They end up with more of their own cash to do with what they want.

Budgets are important to them. Ending up with a million or more dollars doesn’t just happen to the majority of the wealthy. They plan and they budget to reach their goals. On a monthly (or more frequent) basis, they assess where they are visa vie their money. Even those with plenty of money to spend, such as Ramsey, track it down to the penny.

They share. The majority of those with money to spare share it with those less fortunate. They tithe at their churches, contribute to charities, give to more needy persons in their circles of family and friends. They plan ahead to look after loved ones through sufficient inheritances, instead of spending it all on too-much house, $500-per-pair jeans and other unnecessary items.

You may never have to deal with money on the level of a millionaire, but the same principles can work for you.

Successful Habits Of Billionaires

July 11, 2016 By Twila Van Leer

Learning a few successful habits can improve the quality of your life. Interviews with more than 200 highly successful people, conducted by Kevin Kruse, revealed several repeating themes that might be guides for others aiming for success. He talked with billionaires, Olympians and a selection of entrepreneurs. The question was simple: “What is your number one secret to productivity?” The most consistent answers included the following:

Successful Habits

Many people look to their family, friends or mentors to learn successful habits. It’s better to learn from the experts.

Time Management

There are 1,440 minutes in a day and nothing is more valuable than time. Time spent can never be reclaimed. Most people block out one-and-a-half hour segments of time. Olympic gymnast Shannon Miller told Kruse that her schedule is almost minute-by-minute. Mastering minutes means mastering life.

Focus On One Thing At A Time

Identify the most important task ahead of you, the one that will have the greatest impact on reaching your goal, and work on it without interruption. Dedicate your morning, when you are most productive, to that objective.

To-Do List

Only 41 percent of what’s on the to-do list actually gets done, according to research. Those unfinished talks lead to stress and insomnia and occupy your mind until they’re done. Put items on your calendar and then work by the calendar in the order that is most feasible.

Predicting Future Success

You can’t trust your future self. Most of us are time inconsistent. For instance, we load up on fresh veggies anticipating salads for a week, then throw away the rotting mush before the week is up. Do what you can do right now to. Look ahead and see what you can do now to defeat your future self.

Family Time

Successful people include family time, exercise and health time and time for giving back. There is always at least one more thing to do, so know where you can draw the line. Think about where your priorities lie and allocate time to what you think is most important. Don’t allow work to nudge out the more important things.

Journaling

Richard Branson, who built Virgin, says a simple notebook goes with him everywhere. That’s a “million dollar lesson” they don’t teach in business school, said Aristotle Onassis, Greek shipping executive. Writing down things as they occur to you leaves your mind free to think of other things.

Manage Emails

Process emails a few times a day. Don’t feel obligated to respond to every vibration that ends up in your inbox. Schedule time to respond to emails quickly and efficiently and then leave them to the next session.

Protect Your Time

The advice of Mark Cuban is “Never take meetings unless someone is writing a check.” Meetings tend to start late, have the wrong mix of people, meander around topics and run long. Avoid them if possible. If it is necessary and you can influence the proceedings, made them short and to the point.

Learn To Say “No”

Remember that old 1,440 minutes thing. Trying to respond to every request for your time will use them up in a hurry. Screen your time and protect the minutes.

Pareto Principle

The reality that 80 percent of results come from 20 percent of activities. Those who succeed best learn which activities drive the greatest results and stick with them, ignoring the rest.

Delegate

Take the “I” out of the equation whenever you can. The question should be “How can I get this task done?” not “How can I perform this task?” The successful don’t get bound up in control issues and they don’t micro-manage.

Touch Things Once

Picking up a bill then setting it aside without handling it means you have given twice the time to the same objective. Try the “touch it once” approach. Deal with everything when it arises, if possible. You can then free your mind from that particular chore.

Use A Morning Routine

Many of the people Kevin interviewed shared a consistent morning routine. The successful habits varied, but repeat suggestions included a good breakfast, light exercise and mind soothers such as meditation, prayer, inspirational reading or journaling. Over the day, maintain your energy level. Don’t skip meals, sleep or breaks in an effort to fill more time with productive work. Food is fuel, sleep an opportunity for recovery and breaks the way to recharge periodically.