2601, 2011

Skippy the bush Kangaroo ! !

By |January 26th, 2011|Miscellaneous, Uncategorized|1 Comment

Today is Australia Day and we celebrate everything Australian.

And today I am an official Ambassador for Australia Day – an honour I gladly and whole-heartedly accept. I am truly and proudly Australian !

Today in Camden’s celebrations in the south-west of Sydney I will be giving a speech on what it means to be Australian. So I thought I’d tell you some of the things that being an Aussie means to me. No order. just thoughts on Australia Day.

Sun and beaches. Skippy the bush Kangaroo hat’s that skip … ? Jumping under the sprinkler as kids. Icypoles. Ovaltines. Voilet Crumble. Stubborn and proud people. A peaceful country. Long summer afternoons. A sunburnt country. Driza-bones. The Man from Snowy River and amazing horsemen surviving in the bush, droving, catching brumbies. Kangaroos. Koalas. Platypus. Wombats. Bilby. Emus. Crocodiles. Many venomous snakes. Sharks. Red dirt. Uluru. Beautiful black smiling faces of the traditional people of our land – the Aborigines. A young country. A country more capable than people may know (as people saw during the Sydney Olympics). great sportspeople and a strong and successful sporting heritage. A great mix between the traditions of England and the Commonwealth and the conveniences of the US, without being too much of either way. Friendly, easy going and happy go lucky people. Mateship. People like Aussies around the world. What you see is what you get. Uncomplicated people. Musk sticks and mixed lollies at the milkbar. Multi-cultural country. We hate politicians. Drought. Paul Hogan. Cricket and Aussie Rules. Surf life-saving. Farmers doing it tough yet they are in many ways the salt of the earth and the backbone of this country. The Opera House and beautitful Sydney Harbour. Fire works on New Years Eve off the Sydney Harbour bridge. The sound of lawnmovers during summer. Suntan cream and endlessly applying it. Vegemite. The boxing kangaroo. Lamingtons. Green cordial. We call them mountains but by any other countries standards they are hills. Driving a long way to the snow and hoping there is even snow. Lots of long plane trips to get anywhere. Flying in to Sydney – nothing beats that view. Amazing gorges in the the Northern Territory – waterfalls and waterholes. Swimming and splashing in waterholes and pools and dams and bores around the country. A convict heritage – of prisoners in a penal colony doing hard labour and forging a new life in an unknown hard land. The great southern land – and we like being so far away.

Ahhh – Australia. My home. Happy Australia Day

1801, 2011

20 things I learned after travelling around the world for 3 years

By |January 18th, 2011|Travel|0 Comments

It is the new year and we often say to ourselves – I want to travel more this year, explore the world, broaden my horizons, have more adventure ! Well in view of that I thought this post that I saw recently would be fantastic to fuel those thoughts.

Gary Arndt is the man behind Everything Everywhere, one of the most popular travel blogs in the world, and one of Time Magazine’s “Top 25 Best Blogs of 2010.” Since March 2007, Gary has been traveling around the globe, having visited more than 70 countries and territories, and gaining worldly wisdom in the process. Here’s some of the wisdom he has to share.

Enter Gary …

On March 13, 2007, I handed over the keys to my house, put my possessions in storage and headed out to travel around the world with nothing but a backpack, my laptop and a camera.

Three and a half years and 70 countries later, I’ve gotten the equivalent of a Ph.D in general knowledge about the people and places of Planet Earth.

Here are some of the things I’ve learned…

1) People are generally good.

Many people are afraid of the world beyond their door, yet the vast majority of humans are not thieves, murderers or rapists. They are people just like you and me who are trying to get by, to help their families and go about living their lives. There is no race, religion or nationality that is exempt from this rule. How they go about living their lives might be different, but their general goals are the same.

2) The media lies.

If you only learned about other countries from the news, you’d think the world was a horrible place. The media will always sensationalize and simplify a story. I was in East Timor when the assassination attempts on President José Ramos-Horta and Prime Minister Xanana Gusmão occurred in 2008. The stories in the news the next day were filed from Jakarta or Kuala Lumpur, not Dili. It was all secondhand news. I was in Bangkok during the political protests this year, but you’d never have any idea they were happening if you were not in the immediate area where the protests were taking place. The media makes us scared of the rest of the world, and we shouldn’t be.

3) The world is boring.

If there isn’t a natural disaster or an armed conflict, most places will never even be mentioned in the news. When is the last time you’ve heard Laos or Oman mentioned in a news story? What makes for good news are exceptional events, not ordinary events. Most of the world, just like your neighborhood, is pretty boring. It can be amazingly interesting, but to the locals, they just go about living their lives.

4) People don’t hate Americans.

I haven’t encountered a single case of anti-Americanism in the last three-and-a-half years. Not one. (And no, I don’t tell people I am Canadian.) If anything, people are fascinated by Americans and want to know more about the US. This isn’t to say they love our government or our policies, but they do not have an issue with Americans as people. Even in places you’d think would be very anti-American, such as the Middle East, I was welcomed by friendly people.

5) Americans aren’t as ignorant as you might think. (* Jeremy – not sure I agree totally on this Gary)

There is a stereotype that Americans don’t know much about the rest of the world. There is some truth to that, but it isn’t as bad as you might believe. The reason this stereotype exists is because most other countries on Earth pay very close attention to American news and politics. Most people view our ignorance in terms of reciprocity: i.e. “I know about your country, why don’t you know about mine?” The truth is, if you quizzed people about third-party countries other than the US, they are equally as ignorant. I confronted one German man about this, asking him who the Prime Minister of Japan was. He had no clue. The problem with America is that we suffer from the same problem as the rest of the world: an obsession with American news. The quality of news I read in other parts of the world is on par with what you will hear on NPR.

6) Americans don’t travel.

This stereotype is true. Americans don’t travel overseas as much as Brits, Dutch, Germans, Canadians or Scandinavians. There are some good reasons for this (big country, short vacation time) and bad ones (fear and ignorance). We don’t have a gap year culture like they have in the UK and we don’t tend to take vacations longer than a week. I can’t think of a single place I visited where I met Americans in numbers anywhere close to our relative population.

7) The rest of the world isn’t full of germs. (* Jeremy – again I’m not so sure of this either Gary)

Many people travel with their own supply of water and an industrial vat of hand sanitizer. I can say in full honestly that I have never used hand sanitizer or gone out of my way to avoid contact with germs during my travels. It is true that in many places you can get nasty illnesses from drinking untreated water, but I don’t think this means you have be a traveling Howard Hughes. Unless you have a particularly weak immune system or other illness, I wouldn’t worry too much about local bugs. (* Jeremy – within reason I think Gary. Precaution is not a bad thing as the body gets used to fighting the bugs it knows)

8) You don’t need a lot stuff.

Condensing my life down from a 3,000 sq/ft house to a backpack was a lesson in knowing what really matters. I found I could get by just fine without 97% of the things I had sitting around my home. Now, if I purchase something, I think long and hard about it because anything I buy I will have to physically carry around. Because I have fewer possessions, I am more likely to buy things of higher quality and durability.

9) Traveling doesn’t have to be expensive.

Yes, if you insist on staying in five-star hotels and luxury resorts, travel can be very expensive. However, it is possible to visit many parts of the world and only spend $10-30 per day. In addition to traveling cheap, you can also earn money on the road teaching English or working on an organic farm. I’ve met many people who have been able to travel on a little more than $1,000/month. I met one man from the Ukraine who spent a month in Egypt on $300.

10) Culture matters.

Many of our ideas for rescuing other countries all depend on them having similar incentives, values and attitudes as people in the West. This is not always true. I am reminded of when I walked past a Burger King in Hong Kong that was full of flowers. It looked like someone was having a funeral at the restaurant. It turned out to be people sending flowers in celebration of their grand opening. Opening a business was a reason to celebrate. In Samoa, I had a discussion with a taxi driver about why there were so few businesses of any type on the island of Savai’i. He told me that 90% of what he made had to go to his village. He had no problem helping his village, but they took so much that there was little incentive to work. Today, the majority of the GDP of Samoa consists of remittances sent back from the US or New Zealand. It is hard to make aid policies work when the culture isn’t in harmony with the aid donors’ expectations.

11) Culture changes.

Many people go overseas expecting to have an “authentic” experience, which really means they want to confirm some stereotype they have in their mind of happy people living in huts and villages. They are often disappointed to find urban people with technology. Visiting a different place doesn’t mean visiting a different time. It’s the 21st Century, and most people live in it. They are as likely to wear traditional clothes as Americans are to wear stove top hats like Abraham Lincoln. Cultures have always changed as new ideas, religions, technologies sprang up and different cultures mingled and traded with each other. Today is no different.

12) Everyone is proud of where they are from.

When you meet someone local in another country, most people will be quick to tell you something about their city/province/country that they are proud of. Pride and patriotism seem to be universal values. I remember trying to cross the street once in Palau, one of the smallest countries in the world, and a high school kid came up to me and said, “This is how we cross the street in PALAU!” Even crossing the street became an act to tell me about his pride for his country. People involved in making foreign policy should be very aware of this.

13) America and Canada share a common culture.

This may irk Canadians, but we really do share a common North American culture. If you meet someone overseas, it is almost impossible to tell if they are American or Canadian unless they have a particularly strong accent, or they pronounce the letter “z.” It is easier to tell where in England someone is from than it is to tell if someone is from Denver or Toronto. We would probably be better off referring to a “North American” culture than an “American” culture. What differences do exist (Quebec being the exception) are more like differences between states and regions of a similar country. (*Jeremy – that was Gary’s words not mine 🙂 but in a worldwide sense he is right)

14) Most people have a deep desire to travel around the world.

Not shocking, but every day I meet people who are fascinated by what I do and how I live. The desire to travel is there, but fears and excuses usually prevent people from doing it. I understand that few people can drop what they are doing and travel around the world for three years, but traveling overseas for even a few months is within the realm of possibility for many people at some point in their lives. Even on an island in the middle of the Pacific, people who would probably never leave their home island talked to me of wishing they could see New York or London for themselves one day. I think the desire to explore and see new things is fundamental to the human experience.

15) You can find the internet almost everywhere.

I have been surprised at where I’ve found internet access. I’ve seen remote villages in the Solomon Islands with a packet radio link to another island for their internet access. I’ve been at an internet cafe in the Marshall Islands that accessed the web via a geosynchronous satellite. I’ve seen lodges in the rainforest of Borneo hooked up to the web. I once counted 27 open wifi signals in Taipei on a rooftop. We truly live in a wired world.

16) In developing countries, government is usually the problem.

I have been shocked at the level of corruption that exists in most developing countries. Even if it is technically a democracy, most nations are run by and for the benefit of the elites that control the institutions of power. Political killings, bribery, extortion and kickbacks are the norm in many places. There is little difference between the Mafia and the governments in some countries I’ve visited. The corruption in the Philippines was especially surprising. It isn’t just the people at the top who are corrupt. I’ve seen cops shake people down on the street for money, cigarettes or booze.

17) English is becoming universal.

I estimated that there were at least 35 native languages I would have had to have learned if I wanted to speak with locals in their own tongue. That does not include all the languages found in Papua New Guinea or Vanuatu or regional dialects. It is not possible for humans to learn that many languages. English has become the de facto second language for the world. We are almost to a point where there are only two languages you need to know: whatever your parents speak… and English. English has become so popular it has achieved an escape velocity outside of the control of the US and UK. Countries like Nigeria and India use it as a unifying language in their polyglot nations. Other countries in the Pacific do all their schooling in English because the market just isn’t there to translate textbooks into Samoan or Tongan.

18) Modernization is not Westernization.

Just because people use electricity and have running water doesn’t mean they are abandoning their culture to embrace western values. Technology and culture are totally different. Japan and South Korea are thoroughly modern countries, but are also thoroughly Asian. Modernization will certainly change a culture (see #11 above), but that doesn’t mean they are trying to mimic the West.

19) We view other nations by a different set of criteria than we view ourselves.

On the left, people who struggle the hardest for social change would decry changes in other countries that they view as a result of globalization. On the right, people who want to bring democracy to other countries would be up in arms at the suggestion that another country try to institute change in the US. In both cases, other nations are viewed by a different set of rules than we view ourselves. I don’t think most people around the world want the help or pity of the West. At best, they would like us to do no harm.

20) Everyone should travel.

At some point in your life, whether it is after college or when you retire, everyone should take an extended trip outside of their own country. The only way to really have a sense of how the world works is to see it yourself.

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You can subscribe to Gary’s blog at http://feeds.feedburner.com/EverythingEverywhere, or follow him on Facebook.

1101, 2011

New Years resolutions – The Not-to-do list

By |January 11th, 2011|Efficiency|0 Comments

In recognition of the new year I thought I would share some thoughts on 9 habits to stop. The ‘not-to-do’ list. After all, ‘not-to-do’ lists are often more effective than to-do lists for upgrading performance. Why ? : because what you don’t do determines what you can do.

I certainly can’t lay claim to all of these and nor can I honestly say I have implemented all of these in my own life. But, nevertheless they are great food for thought and a work in progress. So be challenged … 9 stressful and common habits that we should strive to eliminate from our work life.

1. Do not answer calls from unrecognized phone numbers
Feel free to surprise others, but don’t be surprised. It just results in unwanted interruption and poor negotiating position. Let it go to voicemail, and consider using a service where you can receive voicemails as e-mail.

2. Do not e-mail first thing in the morning or last thing at night
The former scrambles your priorities and plans for the day, and the latter just gives you insomnia. E-mail can wait until 10am, after you’ve completed at least one of your critical to-do items…

3. Do not agree to meetings or calls with no clear agenda or end time
If the desired outcome is defined clearly with a stated objective and agenda listing topics/questions to cover, no meeting or call should last more than 30 minutes. Request them in advance so you “can best prepare and make good use of the time together.”

4. Do not let people ramble
Here I am distinguishing between being cordial and friendly and relationship building to rambling. The point though is, consider how much time is taken up in conversations and meetings with needless, unproductive ramble. Try “what’s up?” or “I’m in the middle of getting something out, but what’s going on?” when people call instead of “how are you?” if you want to help people to get to the point.

5. Do not check e-mail constantly — “batch” and check at set times only

Focus on execution of your top to-do’s instead of responding to manufactured emergencies. Tim Ferriss’s book The 4-hour workweek is gold for going into this in more detail.

6. Do not over-communicate with low-profit, high-maintenance customers
There is no sure path to success, but the surest path to failure is trying to please everyone. Do an 80/20 analysis of your customer base in two ways–which 20% are producing 80%+ of my profit, and which 20% are consuming 80%+ of my time? Then put the loudest and least productive on autopilot by citing a change in company policies. Send them an e-mail with new rules as bullet points: number of permissible phone calls, e-mail response time, minimum orders, etc. Offer to point them to another provider if they can’t conform to the new policies.

7. Do not work more to fix overwhelm — prioritize
If you don’t prioritize, everything seems urgent and important. If you define the single most important task for each day, almost nothing seems urgent or important. Oftentimes, it’s just a matter of letting little bad things happen (return a phone call late and apologize, pay a small late fee, lose an unreasonable customer, etc.) to get the big important things done. The answer to overwhelm is not spinning more plates — or doing more — it’s defining the few things that can really fundamentally change your business and life.

8. Do not carry a cellphone or Crackberry 24/7
Take at least one day off from your cellphone or crackberry. Turn them off or, better still, leave them in the garage or in the car. Leave the phone at home if you go out for dinner. So what if you return a phone call an hour later or the next morning? As one reader put it to a miffed co-worker who worked 24/7 and expected the same: “I’m not the president of the US. No one should need me at 8pm at night. OK, you didn’t get a hold of me. But what bad happened?”The answer? Nothing.

9. Do not expect work to fill a void that non-work relationships and activities should

Work is not all of life. Schedule life and defend it just as you would an important business meeting. Never tell yourself “I’ll just get it done this weekend.” Get efficient, focus and be productive in set hours. Get the critical things done, and get out. E-mailing all weekend is no way to spend the little time you have on this planet.
It’s hip to focus on getting things done, but it’s only possible once we remove the constant static and distraction. If you have trouble deciding what to do, just focus on not doing. Different means, same end.

What other no-no’s would you add to the list? I’d be interested to know.

2012, 2010

Santa Klaus, Jesus and tears

By |December 20th, 2010|Miscellaneous|0 Comments

Have a watch of this video. I dare you not to be moved.

And now that you’ve watched it take a minute to ponder the following at this special time of year:

  • People will forget what you said and what you did, but they will never forget how you made them feel
  • The best things in life really are free
  • There is no substitute for love in this world. At the heart of everything, that is what we crave
  • Give thanks for those in your life who love you and those you love
  • Will Santa Klaus bring you this or do you think we get carried away by the commercialisation of Christmas and forget what really counts
  • How is it that we forget the CHRIST in CHRISTmas. For he came, a king born in a lowly manger, to live humbly as a human and then to die a excruciating death nailed, whipped, bleeding and hanging to a cross … the real present of Christmas we celebrate – “For so God so LOVED the world that he gave his only begotten Son that whoever believes in him, shall not perish, but have eternal life” (John 3:16)

Have a blessed and Merry Christmas everybody.

1312, 2010

My b’day post – the strongest muscle in the body is the heart

By |December 13th, 2010|Motivation, Passion|0 Comments

This is my birthday present to you on my birthday today. I chose this because it is so dear to me. This video inspires me every time I watch it and it represents so much to me.

Here’s why I love it and here’s the takeaway for you !

  • Heart = motivation and perseverence. Talent is common and talented people who do not fulfill their potential is almost a proverb. To be successful and achieve all you want takes more than just talent – it takes motivation, perseverence, guts, courage and hardwork. And that comes from your heart.
  • The Limbic System – in my upcoming book ‘A Life that Counts’ I explain this in more detail, but in brief, the Limbic System is an area in our brains that control out base emotions – fight or flight, anger, sex drive, attraction, fear, hunger. It is a strong and powerful force that drives us  (often unconsciously). It is not your conscious motivation (frontal lobes). Think of it as heart. So is more than just a saying to say the heart is the strongest muscle in the body – it is grounded in psychology and how our brains work.
  • Heart = passion. Passion = motivation and drive. Motivation = the day to day energy to become all you can be.
  • Heart = emotion. And that is how I want to live me life. Not out of obligation. Not out of duty. Not because I have to. Because I want to and because I love doing it. And following your heart is not always easy. In fact it is easier said than done. I know, I’ve left my job twice to follow my heart and chase my dream. It comes at a cost but it is a better way.

And so on my birthday may I give you the one of the best presents I can give you – the inspiration and encourgement to follow your heart and live from your heart. And may you encourage me to continue to do the same.

612, 2010

Automating your finances where your money works for you !

By |December 6th, 2010|Money|2 Comments

I was inspired to write this blog based solely on having read Tim Ferriss’s The 4-Hour Workweek blog. It is the source of lots of interesting and great information and one of those blogs that I found particularly useful was contributed by his friend Ramit Sethi (co-founder PBWiki and author of best seller I Will Teach You To Be Rich). In the interests of transparency please know I have taken the liberty of editing and emphasizing parts of this original blog as I see fit. There is some Americanisation, but you will get the point.

Think about the 50+ money decisions you have to make today: Should you save more? What should you cut down on? What about investing — real estate or shares or index funds? Pay off debt? Did you send in that water bill on time? Is it time to rebalance your portfolio?

Faced with an overwhelming number of choices, most people respond in the same way: They do nothing. As Barry Schwartz explained in The Paradox of Choice … as the number of super funds in a retitrement plan offered to employees goes up, the likelihood that they will choose a fund — any fund — goes down. For every 10 funds added to the array of options, the rate of participation drops 2 percent. And for those who do invest, added fund options increase the chances that employees will invest in ultraconservative money-market funds.”

Why do so many people believe that personal finance is only about willpower? The idea goes like this: “If I just try harder, I’ll start saving more, pay off my debt, stop spending all that money, keep a budget, learn about investing, start investing, rebalance ever year…” Unlikely. It’s not about willpower. More than anything else, the psychology of automation is critical to successfully getting control of your finances.

In one study in the US, researchers found that making 401(k) (superannuation in Australia) accounts opt-out instead of opt-in— in other words, making employees automatically participate, although they could stop at any time — raised contribution rates from less than 40% to nearly 100%. ==>> so defaults matter.

And that is what this is all about. Automating the day-to-day decisions you have to make — paying bills, investing, rebalancing, cutting down on spending, increasing spending on things you love. That is your automated money flow will automatically route money where it needs to go — investments, paying bills, savings, and guilt-free spending— so you are not a slave to your personal finances and so you can focus on the things you care about.

Example : To see how this will work, let’s use Michelle as an example:

automation-overview

1. Michelle gets paid once a month. Her employer deducts 5 percent of her pay automatically and puts it in her 401(k) (super). The rest of Michelle’s paycheck goes to her checking account by direct deposit.

2. About a day later, her Automatic Money Flow begins transferring money out of her checking account via direct debits. Her Roth IRA retirement account  will pull 5 percent of her salary for itself. Her savings account will pull 5 percent, automatically breaking that money into chunks: 2 percent for a wedding sub-account, 2 percent to a house down-payment sub-account, and 1% for an upcoming vacation. (That takes care of her monthly savings goals.)

3. Her system also automatically pays her fixed costs like gym, TV, and insurance. She’s set it up so that most of her subscriptions and bills are paid by her credit card. Some of her bills can’t be put on credit cards—for example, utilities and loans—so they’re automatically paid out of her checking account.

4. Finally, she’s automatically e-mailed a copy of her credit card bill for a monthly five-minute review before she pays that from her checking account (once a month).

5. The money that remains in her account is used for guilt-free spending money. To make sure she doesn’t overspend, she’s focused on two big wins: eating out and spending money on clothes.  To track spending more easily, she uses her credit card as much as possible to pay for all of her fun stuff. If she uses cash for cabs or coffee, she keeps the receipts and tries to enter them into a spreadsheet or other budget system eg Mint as often as possible. She also keeps a reserve of $500 in her bank account just in case. In the middle of the month, Michelle’s calendar reminds her to check her Mint account / spending budget to make sure she’s within her limits for her spending money. If she’s doing fine, she gets on with her life. If she’s over her limit, she decides what she needs to cut back on to stay on track for the month. Luckily, she has fifteen days to get it right, and by politely passing on an invitation to dine out she gets back on track.

6. By the end of the month, she’s spent less than two hours monitoring her finances, yet she’s invested 10 percent, saved 5 percent (in sub-buckets for her wedding and down payment), paid all of her bills on time, paid off her credit card in full, and spent exactly what she wanted to spend. She had to say “no” only once, and it was no big deal. In fact, none of it was.

So to summarise – “The Next $100″ Principle Applied: Automating your Finances

Too many people try to save money on 50 things and end up saving 5% on everything — and causing themselves a huge amount of stress that makes them give up entirely. Instead, focus on your top two discretionary expenses (for me, eating out and going out), and cutting 25%-33% off over a period of six months. This generates hundreds of dollars of extra cash flow that you can re-route to investing and travel. So here’s the order of  to do’s.

1. Set up automatic transfers – First, link your accounts together so you can set up automatic transfers from one account to another.  This is really simple: It’s just a matter of working with each individual account’s website to make sure your payment or transfer is set up for the amount you want and on the date you want.

account-flows

2. Don’t forget to change and automate dates – Most people neglect one thing when automating: dates. If you set automatic transfers at weird times, it will inevitably necessitate more work, which will make you resent and eventually ignore your personal-finance infrastructure. For example, if your credit card is due on the 1st of the month, but you don’t get paid until the 15th, how does that work? If you don’t synchronize all your bills, you’ll have to pay things at different times and that will require you to reconcile accounts. Which you won’t do.

The easiest way to avoid this is to get all your bills on the same schedule. To accomplish this, get all your bills together, call the companies, and ask them to switch your billing dates (eg from the 17th of each mont to the 1st of each month). Most of these will take five minutes each to do. There may be a couple of months of odd billing as your accounts adjust, but it will smooth itself out after that. If you’re paid on the 1st of the month, I suggest switching all your bills to arrive on or around that time, too.

Now that you’ve got everything coming at the beginning of the month, it’s time to actually go in and set up your transfers. Here’s how to arrange your Automatic Money Flow, assuming you get paid on the 1st of the month.

3. Understand the flows and let the automation begin !

date-flows1

  • 2nd of the month: Part of your paycheck is automatically sent to your 401(k). The remainder (your “take-home pay”) is direct-deposited into your main bank account (checking account here). Even though you’re paid on the 1st, the money may not show up in your account until the 2nd, so be sure to account for that. Remember, you’re treating your main bank account like your e-mail inbox— first, everything goes there, then it’s filtered away to the appropriate place. Note: The first time you set this up, leave a buffer amount of money—I recommend $500—in your checking account just in case a transfer doesn’t go right. And don’t worry: If something does go wrong, you can always negotiate to get any fees waived. Call it growing pains if worst comes to worst.
  • 5th of the month: Automatic transfer to your savings account. Log in to your savings account and set up an automatic transfer from your checking account to your savings account on the 5th of every month. Waiting until the 5th of the month gives you some leeway. If, for some reason, your paycheck doesn’t show up on the 1st of the month, you’ll have four days to correct things or cancel that month’s automatic transfer. Don’t just set up the transfer. Remember to set the amount, too. The amount you transfer from your main account into a separate savings account is entirely dependent on your budget. The key thing is that ‘out of sight, out of mind’). If you can’t see if and it is automatically transferred away you wont miss it and you wont spend it ! U
  • 5th of the month: Automatic transfer to your investment account (whether that is another separate bak account or a fund manager account etc). Again, consult your budget to calculate the amount of the transfer. 10% is a good starting percentage.
  • 7th of the month: Auto-pay for any monthly bills you have. Log in to any regular payments you have, like gym, utilities, car payments, or student loans, and set up automatic payments to occur on the 7th of each month. I prefer to pay my bills using my credit card, because I earn points and I can easily track my spending on online sites like MintQuicken, or Wesabe. And if your merchant doesn’t accept credit cards, they should let you pay the bill directly from your checking account, so set up an automatic payment from there if needed.
  • 7th of the month: Automatic transfer to pay off your credit card. So you’ve just paid your monthly bills using your credit card and now you are paying off your credit card to ensure you don’t get into any trouble and aren’t paying the high interest rates etc. Log in to your credit card account and instruct it to draw money from your checking account and pay the credit card bill on the 7th of every month— in full. (Because your bill arrived on the 1st of the month, you’ll never incur late fees using this system.) NB: you have to be responsible here. If you have credit card debt and you can’t pay the bill in full, you can still set up an automatic payment; just make it for the monthly minimum. NB: As a tip. Set-up your credit card account so you get sent a monthly e-mail notification of your bill, so you can review it before the money is automatically transferred out of your checking account. This is helpful in case your bill unexpectedly exceeds the amount available in your checking account—that way you can adjust the amount you pay that month.

NB: Tweaking Your System: Freelancers, irregular income, and unexpected expenses

That’s the basic Automatic Money Flow schedule, but you may not be paid on a straight once-a-month schedule. That’s not a problem. You can just adjust the above system to match your payment schedule. eg If you’re paid twice a month: I suggest replicating the above system on the 1st and the 15th—with half the money each time. This is easy enough, but the one thing to watch with this is paying your bills. If the second payment (on the 15th) will miss the due dates for any of your bills, be sure that you set it so that those bills are paid in full during the payment on the 1st. Another way to work your system is to do half the payments with one paycheck (retirement, fixed costs) and half the payments with the second paycheck (savings, guilt-free spending), but that can get clunky.

If you have irregular income: Irregular incomes, like those of freelancers, are difficult to plan for. Some months you might earn close to nothing, others you’re flush with cash. You therefore need to allow for this. First figre out your bare minimum costs per month eg rent, uttilities, food. Don’t invest until you have a buffer of 3 months bare-bones income. For example, if you need at least $1,500/month to live on, you’ll need to have $4,500 in a savings buffer, which you can use to smooth out months where you don’t generate much income. The buffer should exist as a sub-account in your savings account.

Your money is now automatic – Your money management is now on autopilot. Not only are your bills paid automatically and on time, but you’re actually saving and investing money each month. The beauty of this system is that it works without your involvement and it’s flexible enough to add or remove accounts any time. You’re accumulating money by default.  Most importantly, whenever you’re eating out, or you decide to buy a new pair of shoes or fly out to visit your friends or get the “Pro” version of that web app you’ve been eyeing, you won’t feel guilty because you’ll KNOW that your finances are being handled — automatically.

Smart hey ! … And just in time for Christmas and the New Year. DO IT !

3011, 2010

Myth of the Leprechaun

By |November 30th, 2010|Action, Luck, Perseverence|0 Comments

When I look back over my own life and reflect upon my successes along the way, I also pay  homage to the failures, difficulties, sacrifices etc that it took to accomplish each of them.  In very few cases did so-called “luck” have anything to do with it. But yet I find it funny when people say “… you’re so lucky”.

I think of the journey to get to my first Olympics in 2006. It was a childhood dream of mine to become an Olympian and I certainly wasn’t the guy at school with all the talent so it was never an inevitability. I’d already had two dreams shatter around me – my dream to represent Australia in rugby and play for the Wallabies. This dream crumbled before my eyes when I snapped my PCL ligament two weeks out from the Hong Kong Sevens World Cup whilst playing for Australia A in the Fiji Sevens. Then four years later, after having taken up bobsleigh and after much blood, sweat and tears, I was ready to have my dream of becoming an Olympian come true. We had satisfied the international qualification criteria to compete in the Olympic Games in Salt Lake City 2002 and were just waiting for the final but all important telephone call telling us we had been selected in the Australian Olympic team. The phonecall came, but unfortunately it is one I will never forget. They had decided not to select us and impose a higher Australian qualification criteria. We would not be going, despite being the only team who qualified who would not be going to compete ! It was a devastating time. So before I even came around to the 2005-06 season I had to find the strength to put my heart on the line again, knowing it could be crushed as it had two-times in recent years. And that was before I even started to compete on the ice and the hard work began.

So off I went. Travelling from Australia to Norway – Germany – Austria – Canada – Germany – Switzerland – Australia – Italy – Germany – England – Australia – Austria – germany – Australia – Italy. Doing almost 200 runs in the season. Competing in minus 15. Crashing and seeing people almost die in front of me. Training and training. Investing time and money and energy and emotion into making my dream become a reality.

This certainly wasn’t luck. LUCK ? What did luck have to do with this ? This was hardwork and resilience.

Perhaps there is some truth in the expression “The harder I work, the luckier I get” as that speaks of positioning yourself so that you can best take advantage of the opportunities that come your way. But luck … no … If you want success then you need to be out there doing the hardwork that comes with making your dreams come to pass. Lance Armstrong says it well ….

Everybody wants to know what I’m on. What am I on? I’m on my bike busting my ass six hours a day. What are you on?

Challenge – what do you need to work harder in ? What opportunities have you missed because they are dressed in overalls and look like work


2311, 2010

Authentic – living the dream

By |November 23rd, 2010|Dare to Dream|0 Comments

I was at a workshop last week and we spent a lot of time discussing our core self and the authentic life that we wanted to live. Here was a definition we came up with for living an authentic life.

Authenticity is the courage to live life on your own terms, and the actions that must occur to achieve that dream”

We speak so much (including myself) about goal-setting and achieving our goals. But I think sometimes we forget the order of things. The goals are the means to the end, not the end in themselves. The end game is to live the life we dream of, whatever that might be and however that looks. It will be different for every person. And in fact I would go one step further than that. Achieving our goals – living our dream life – even that can become a bit mechanical and a drudgery or meaningless unless it is attached to a higher purpose.

But back to living an authentic life and living the life we dream. How many people do you know living it ?

Challenge – To construct your ideal life it is useful to consider your ideal average day. What is your ideal average day ? Write it down …

Here’s part of mine to get you started …

I get up early without feeling tired. Morning is the best part of the day. I go for a jog or walk along the beach. I come back and have breakfast and head off to work. I spend a few hours at my desk, organising, sending emails, taking and making phonecalls, checking the passive income that is coming into my account. I have a couple of meetings with like-minded people who inspire me and are doing great things in their worlds and making a difference. I have lunch with friends or colleagues or I go to the gym. The afternoon differs. It may be coaching. It may be meetings. It may be exercise. It may be doing something else fun. It may be planning the next adventure or project. I have the freedom to do this and no financial pressure. I get home from work in good time so I have time for my wife and family. We share. We laugh. We have fun. We couldn’t think of anywhere else to be ….


1611, 2010

Andy Irons – I lost to a girl in my first contest !

By |November 16th, 2010|Perseverence|0 Comments

It was a sad week last week as we’ve saw the tragic death of Andy Irons and we mourn his loss and think of his wife and unborn baby left behind. Here is a video tribute to him.

But in everything that has been written and said and shown … one thing stood out like a beacon to me.

Andy Irons: “….I lost so many heats to get to where I was. I lost to a girl in my first contest ever.  And I quit for a year and never touched a jersey.  And I had to pick up the  jersey after that and get back in there.  And that’s the only reason I got to where I’m at, or I was at, five years ago when I won those titles.  And, you know, I haven’t won the title in a long time, but you know I’m getting back in the jersey and I’m not winning heats yet, but I gotta start somewhere.”

That there is what makes a champion. That is another testament to the age old value of resilience.  The people that win in life are not always the smartest, biggest, strongest, or most talented. The people who win have all these things in some measure but the traits that are the stepping stones to their success are also

  • Learning from their mistakes
  • Overcoming disappointment
  • Perseverence and resilience
  • Believing in themselves
  • Hard work and commitment

Never ever forget that. Be inspired by Andy Irons. Lest we forget

1910, 2010

Put some energy into your life

By |October 19th, 2010|Action, Finding your dreams, Motivation, Passion|1 Comment

I was thinking about various books and speakers the other day and one interesting thought came to me.

The authors and speakers who are most successful (eg Richard Branson and Anthony Robbins at a recent seminar) refer often to “never giving up” or “always find a way to make it happen”… It was only the lower level speakers and less known authors wo you often hear say, “this only takes half an hour a day to be successful..”

They annoys me because they are lying to sell their system / product. To achieve requires effort. The key is to get your purpose, values, emotional state, strategies and life structure right, so that you can ENJOY putting in the effort along the way.

You may remember a video I had in one of my previous posts from Michael Jordon (one of my heroes). In it he says …

“I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”

And after two Olympic Games, I absolutely know this to be true. You achieve because you work hard at it. Talent is never enough. A system may be good but it takes work. You will inevitably face obstacles and at that point you need perseverence and mental toughness to keep going. To be successful requires:

1. Putting effort and energy into your life (and the many forms that that takes)

2. Putting it into the best strategies, decisions and structure. (don’t find these first before you find the energy to put into them)

My challenge today is to find that energy FIRST. Forget the structure or strategy. That gets added once you find and have the energy to apply to it. This is the key !

http://www.youtube.com/watch?v=m-EMOb3ATJ0