Classic New Year Refresh

I went ‘home’ to Ottawa over Christmas. The temperature only went down to -10 Celsius this time around and we had a White Christmas.

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The only family member that wanted to go outside in the cold.

My affiliate marketing membership with Amazon expired after 6 months with zero sales (and zero clicks). Monetizing this blog feels like sending Morse code into outer space. You’ll see a few click ads around for now instead of me slipping in links to books and coffee machines.

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We happened to get a chance to visit the Canadian Centre Block Parliament buildings before they closed around Jan. 26 ’19 for 10-15 years of rehabilitation! I’ll have to go back and tour the new temporary setup.

After that, and with the new year, I fairly quickly reviewed my efforts and debated cutting my losses and giving up sunk costs both here and in trading (that’s right, day trading). But over the last few days I happen to have been watching Jim Rohn videos. Jim Rohn was the motivational speaker that originally inspired Tony Robbins. If you watch videos of Jim now, it looks and feels very dated in style, but has good principles. They also feel a bit like church sermons with no lack of Jesus references. And then Jim doesn’t hide the fact that he learned everything from his mentor John Earl Shoaff (whom I know nothing about).

To give you hours of Jim Rohn video-watching value in a few words would be to read the Richest Man in Babylon. Even better, read the Wikipedia page about the Richest Man in Babylon.

Jim’s financial advice is primarily centered around your ratio of budgeting. Pay yourself first, pay bills later. Profits are better than wages. He gives a starting framework of:

  • Spend 70% on necessities, bills. It should be easy to squander!
  • Donate 10% to charity
  • Invest 10% on active capital – basically create a side hustle business
  • Invest 10% on passive capital – give to someone else to make you money that is fairly safe like dividends, rental income, etc.

He then goes on to admit that he only spends 20-30% of his income and let’s you assume the other proportions: perhaps Save 20%, donate 10%, invest 30% in active capital, 40% in passive capital. This makes more sense with a higher income as well, so we have figure out what ratios we can individually start with and squeeze our percentages from spending into capital.

I really like this idea and am surprised that I hadn’t heard it before. One contrasting example is Warren Buffett. He gives annoyingly simplistic financial advice: buy the index (not mutual funds!). Okay, done. Sit and wait until retirement.

With investing in both active and passive capital, you are hedging yourself. If your active endeavors fail, your passive income can keep you moving along. This framework also fits well with Rich Dad Poor Dad’s quadrants in simultaneously pursuing the Business owner and Investor quadrants rather than Robert Kiyosaki’s recommended route of Business owner, then Investor (after presumed business success!). Here is his quick explanation, again, instead of reading his books. If I am dissuading people from buying books, would it be called anti-affiliate marketing?

Jim also mentioned in his lecture not to just try and see what happens. That has been exactly my attitude. He said to do everything that it takes to succeed. Learn as many skills as you need to, read as many books, meet as many people, etc. Go as far as you can possibly go. This gave me the push to keep going rather than switch and try something else. But I still want to try the other things!

On that note, and back to Warren Buffett, I had once read an excerpt for what you should do with your life that someone had gotten from Warren. I will once again save you from the lengthy process that was described, cut out steps, and not force you to do each step right now.

  1. It said to list 50 things that you want to do in your life, anything at all. It actually takes a bit of stretching to get 50 things.
  2. Then, prioritize the list with the most desired at the top to the least desired at the bottom.
  3. Dedicate your entire life to the top 3 things and forget about the rest; there isn’t enough time. Boom.

So, I will continue to see where this website goes and press on the aforementioned activities.

And with this blog being in the Japan theme, and blogged from Japan, you might have to find the references to Japan in each post like Easter Egg’s, or Where’s Waldo (‘Wally’ in Japan).

 


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