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Teach A Man To Fish And You'll Feed Him For Life...Or Maybe Not

Wed, 26 Sep 2012 17:04:00 -0600

We all know the old saying, "Give a man a fish and you'll feed him for the day, teach a man to fish and you'll feed him for life." There is much wisdom in this teaching, as it is as old as time itself. Yet, though there is some truth to this saying, it's not "the" truth. It's obvious that the man being handed the fish is at an extreme disadvantage and probably living below his potential.

However, I want to focus more on the man that's been taught to fish. We have always been told that he is the wise one. Now that he has learned to fish for himself, he no longer is dependant on anyone to give him anything. He can go out and earn a living comparable to his skill set. He can write his own check...or can he? The truth is that the one taught to fish does not have much more of an advantage over the one given a fish.

We're all Employees, Self-Employed, Investors and/or Business Owners. The one given a fish is simply an employee and although unhappy, he is not willing to put himself in an uncomfortable position to take any risk. Thus "perceived" security is his objective. The one taught to fish is simply Self-Employed. He now has a new skill set, but the business depends on him. If he doesn't show up, there are no fish caught.

Both the Self-Employed and the Employee are bound. Therefore, although nice to be giving a fish and even better to be taught to fish...I have to say the best option is the third option, which is to buy the entire lake and charge all that want to use it to fish. Stretch yourself, dream big and then go do bigger.

Show. Me. The. Money. (Or At Least Point Me In the Right Direction)

Sun, 26 Aug 2012 00:35:00 -0600

Money lending. Those words seem to have become dirty words these days, at least to bankers, venture capitalists and our favorite grandmothers with the deep purses and great sweet potato pie. Although Granny will still happily dish up a serving of her homemade pie, she is much more hesitant to loosen the clasp on the burlap purse.

Banks now require applicants to run 40-yard dashes in the parking lot in addition to providing DNA samples as part of the loan application process and venture capitalists are not returning calls at all these days. So where has all the money gone? When will it be back? Why did it leave in the first place?

The answers to those questions are many and complex. What is clear is that the days of the dot-com gold rush and no-doc loans are light years behind us. Once again, it is a brave new world; and it looks a whole lot like the old world. Which begs the question: exactly how did people get money to turn million-dollar ideas into million-dollar enterprises before money started growing on trees? According to the scrolls of the ancients, the method of choice for capital infusion were stone-aged financial products called "conventional loans." However, with many lending institutions now blowing the dust off their Rigid Guide to Stingy Money Lending, and with many consumers taking credit-score hits during the economic slowdown, conventional loans are simply not an option for many entrepreneurs, causing many to put their investment or business ideas on hold.

Instead of holding your breath for the return of better days at some indeterminate point in time (which is an option), take note that there are still a number of creative and non-traditional ways to obtain investment capital that are sound, reliable and completely above-board. Man, if not most, are unaware that these options are available. These options may or may not be right for you, but the important part is that you realize that these avenues exist and are available to the average business person and entrepreneur.

Discussed below are a few favorites, but you should realize that many other non-traditional options exist. As is always the case, prior to doing business with any of the companies outlined below, you should conduct a thorough and careful review of each company to ensure that you are comfortable with the company and transaction and that the transaction is right for you and your venture.

If traditional lending is not an option for you, one or more of the following companies (listed in no particular order) may be able to provide the solution that you need.

1. PROSPER MARKETPLACE (Peer lending)

Company Website
Prosper Marketplace, Inc. www.prosper.com

Synopsis
Prosper Marketplace offers a number of financial investing and lending products, via its innovative peer-to-peer lending system. Prosper's peer-to-peer lending product is one of the most unique financial lending vehicles in the market today, whereby investors bid on the right to grant lenders fixed-rate loans of specified amounts. The peer-to-peer loans have a turnaround of about seven (7) days. Generally requires a credit score of 640+.

2. THINKCASH (Short-term cash infusion)

Company Website
ThinkCash www.thinkcash.com

Synopsis
ThinkCash works with the First Bank of Delaware to provide small, short-term loans from $250 to $2,500 to individuals. ThinkCash offers loans at flexible loan costs depending on credit score, and are open to individuals with "poor credit."

3. CREDIT (Financial sourcing site)

Company Website
Credit.com, Inc. www.credit.com

Synopsis
Credit.com, Inc. offers a wide variety of information and sources to various credit services and products, including free credit reports and credit scores, credit monitoring, credit and prepaid cards (with options for no-credit to excellent-credit applicants) and a wide assortment of loan products, counseling, advisement, etc. An excellent resource for one-stop shoppers looking for to satisfy a number of financial needs.

4. CREDITCARDS (Credit card hub)

Company Website
CCRD Operating Company, Inc. www.creditcards.com

Synopsis
CCRD Operating Company, Inc. provides a hub site for a wide spectrum of credit card needs at www.creditcards.com. As the name suggests, the Web Site includes information, products and services on virtually everything credit card. The Site offers products from low interest and instant-approval credit cards to credit card search solutions for bad credit and bank/issuer specific demands. A strong resource for credit card applicants with varying degrees of credit history.

5. NEWHORIZON (Nationwide Good and Bad Credit Lending)

Company Website

Newhorizon Business Services Inc. www.newhorizon.org

Synopsis
Newhorizon Business Services Inc. are business consultants that provide financing for businesses nationwide, including loan and credit card programs for good and bad credit applicants. Newhorizon works with a number of SBA lenders to obtain SBA loans for successful applicants and maintains contacts with financing companies, leasing companies, and banks to provide unsecured signature loans, equipment leases, factoring and purchase order financing for businesses.

Investment Deceit

Thu, 26 Jul 2012 00:34:00 -0600

These days, everywhere I turn, I hear about a new investment scam. One day, Bernie Madoff, a prominent investment manager, pleads guilty to 11 federal crimes and admits to turning his wealth management business into a massive Ponzi scheme that defrauded thousands of investors of billions of dollars.

The next day I hear about Allen Stanford, a prominent financier, philanthropist, and sponsor of professional sports, who on on February 17, 2009, was charged by the U.S. Securities and Exchange Commission ("SEC") with fraud and multiple violations of U.S. securities laws for alleged "massive ongoing fraud" involving $8 billion in certificates of deposits.

The SEC later described the alleged Stanford fraud as a "massive Ponzi scheme." Although the Madoff and Stanford cases involved massive frauds and infiltrated high society New York and the international communities in Antigua and Barbuda, the case of Kirk Wright hit even closer to home.

A Ponzi scheme is an investment fraud where an individual takes money from new investors to pay existing investors' returns, and was named after early 20th century con artist, Charles Ponzi. Ponzi's scheme was simple. He created an extremely attractive investment scheme in which he guaranteed investors a 50 percent return on their investment in postal coupons. Although Ponzi was able to pay off the initial investors, his scheme evaporated when he was unable to pay investors who came later to Ponzi's investment party. He had simply run out of funds.

Kirk Wright developed a special kind of investment fraud. Wright was the founder, CEO and portfolio manager of International Management Associates ("IMA"), which offered seven separate hedge funds from 1997 through early 2006. IMA maintained offices in New York, Los Angeles, and Las Vegas. By early 2006, IMA had thousands of client accounts, and had taken in more than $180 million in investments. Wright's own mother even invested with her son.

Wright's case is an all too familiar one. The Harvard-educated Wright told his clients he could bring them annual returns in the region of 27 percent by short selling certain stocks. Wright wooed various high net worth individuals by holding seminars in Las Vegas, at the hospitality suite at Atlanta Falcons football games and at parties at his extravagant suburban Atlanta home, which had a pool and three fountains. Among Wright's investors were prominent doctors, whom Wright used for introductions to several other rich and connected doctors. Wright's biggest coup of investors arrived, however, the day that Steve Atwater, a former NFL player, decided to invest $1.5 million with IMA. In all, several former NFL players invested (and lost) in excess of $20 million.

In what most people view as a tragedy in every sense of the word, it was discovered that nearly all of the money that Wright collected from investors over the years had been used for personal expenditures, including cash for himself and family members, jewelry, house renovations, a $500,000 wedding, up to six luxury vehicles, and multiple pieces of real estate, mainly in Atlanta and California. When IMA collapsed, Wright took out $500,000 in cash, which was almost all of the remaining money in IMA's accounts. Once Wright withdrew the funds, he abandoned IMA and fled Atlanta. After several months of hiding, the Federal Bureau of Investigation ("FBI") found Wright lounging by the pool with his wife, Kilssis, at the Ritz-Carlton hotel in Miami's South Beach neighborhood. In his room, the FBI agents discovered debit cards, an ID card with a different name - one of three aliases Wright used while in hiding, and ID-making equipment.

After his arrest and a two-week trial in May 2008, Wright was found guilty on 24 federal charges of mail and securities fraud. Wright was facing 710 years in prison and a $16 million fine after being found guilty. However, what only adds to the tragic financial circumstances of this case was the fact that on May 25, 2008, Wright committed suicide in jail. Despite the tragedy that is the Kirk Wright case, there are several valuable lessons to be gleaned from it.

If It Sounds Too Good To Be True, It Is . When you hear about an investment opportunity that seems too good to be true, assume that it is. Wright told potential investors that his investment strategy was able to yield annualized 27 percent returns. Alleged returns of such a high figure should immediately raise red flags in your mind. No matter what statistics and figures you choose to rely on, average annual percentage returns, when tracked over years, are typically no higher than 8 percent. Even the smartest of individuals on Wall Street cannot consistently provide annual returns of 27 percent.

Perform Considerable Due Diligence . Avoiding a Ponzi scheme can sometimes come down to doing your homework and maintaining a high level of skepticism. Always make sure that the individuals you entrust your money with are legitimate. Specifically, check their credentials as a financial planner, accountant, or investment adviser with the appropriate agency. Additionally, request that any investment adviser you are relying on provide you with his ADV Form. The ADV Form is required by the SEC and will inform you of the adviser's education, business, fees, investment strategies, and any disciplinary actions in the last ten years.

If The Investment Strategy Looks Like Calculus, Avoid It . This is a fairly simple lesson. If you do not understand how the investment works or your money manager cannot adequately explain how it works, stay away from the investment.

Finally, when I think of the above investment cases of investment deceit, I think of the quote from Randall Jones book, "The Richest Man in Town," which says the following: "Life by the inch is a cinch, life by the yard is hard." What the above quote says to me is that, nothing lasting and worthwhile comes easy. If you are being sold on extreme riches overnight, be on high alert.

Long-term success and results in business requires hard work. As a general matter, a successful business, no matter what type, takes consistent effort and daily dedication. Never be fooled by the glitz and glamour of investment opportunities that you believe deserve "platinum" status. There is no mistaking the fact that platinum is an extremely rare metal that is only found in .0003 parts-per-billion in the Earth's crust. Platinum investments are equally rare.

Just Working... Isn't There More Than This

Thu, 17 May 2012 00:34:00 -0600

When asked "How Are You," I found myself answering with the proverbial "Just Working" and that's when it hit me... I allowed my life to be relegated to just working Monday thru Friday, living on Saturday and feeling more depressed as Sunday passed because I was heading back to the dreaded Monday. More Working. When I realized this disturbing trend, I fell even deeper into depression because I had summed up my existence and had no clue how to change it!

Crap, the sun's in my face. Another morning just like the last 30, I awaken to the sun piercing through the small crack between my blinds and the window. This is near blinding... almost like the habitual robotic state I allowed myself to fall into. I had to change something, I could not wake another day with my first thought being "that dag sunlight" followed by "ahhhh crap, another day!"

There was so much to live for... so much to be thankful for... so much to do... and I was missing it all because I fell for the bait. That's right, straight out of a college dorm room I took the freakin' blue pill and settled for a life of corporate slavery! But I decided enough. I searched for a way... anyway out of this massively suffocating box of nothingness. And then I came across a book called the Traveler's Gift by Andy Andrews.

Eureka! My life instantly changed after reading that book! Well, not instantly, but a few months later. I understood exactly why I was where I was, but more importantly I knew precisely what to do to get out! I know, I know, I've heard these stories before... however, I had never experienced one. And now I have. So, this is my story... it's my turn to preach from the other side of the river, because I have put in my dues. I always wanted to be that guy that said... "when I turned and never looked back," well I'm that guy now! There is a way, a much better way than "Just Working."

At 25, I now make more per year than most corporate executives and I owe it to God slapping me around until I got it and Andy Andrews for the wisdom he laid out in his book. I found a community of entrepreneurs who get it... they are at-home dads and moms... they travel monthly with the entire family... they wake up to see the kids off to school, go shopping or wherever they want that day... everyday is Saturday with these guys! I wanted in and I took it. And it was the best decision I ever made. Oh yeah, I vomited the blue pill... don't take the blue pill people.

If you also want out of the rat race that's killing you softly and would like to learn how others are morphing from cubicle chimps to work from home studs, then simply CLICK HERE. If not, continue "just working..."

#1 Rated Work From Home Business 5 Years Straight, Click Here To See For Yourself!

How A 2000 Year Old Letter Can Increase Business Profits Today

Fri, 10 Feb 2012 00:34:00 -0700

Your business in need of help? Are you tired of feeling depressed, overwhelmed, defeated or stressed? Are you just overcoming the last curve ball before getting knocked down by another? More than anything else, do you simply desire peace. Peace that your financial situation is under control, peace that your family is secured, peace that you are in good health... I found a short letter that is roughly 2000 years old that not only can provide the personal peace and business stability most desire, but guarantees it!

This letter was written to the church of Philippi and is recorded in the Holy Bible today. A portion of the letter reads as such:

Philippians 4: 4-9

4 Rejoice in the Lord always. I will say it again: Rejoice!
5 Let your gentleness be evident to all. The Lord is near.
6 Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God.
7 And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.
8 Finally, brothers, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable-if anything is excellent or praiseworthy-think about such things.
9 Whatever you have learned or received or heard from me, or seen in me-put it into practice. And the God of peace will be with you.

We often times look to our growing business or financial gain to provide us with a sense of stability, peace or comfort. We have it backwards. We should first seek after peace so that we have the character and integrity to make better business decisions and not be swayed due to our fears of failure or financial loss. The aformentioned verses give us the blueprint as to how to accomplish this.

Take the focus off of you and your business and learn to praise God inspite of your successes or failures.

1. Always rejoice in the Lord

a. Learn to praise God in every situation for He, nor His Love, has
changed (Heb 13:8).
b. Abraham denied doubt and negative thoughts by praising God and
giving thanks (Rom 4:20)

Learn to be a giver. Find another business or business owner that is in a similar situation and give unto that business. You'll be amazed that as you sow into another, you are establishing an abundant harvest for your business.

2. Let Your Gentleness be Evident to All

a. Have Christ-like consideration for others (2 Cor. 10:1)
b. Take the focus off of you & sow into or serve someone else in need

Kill Anxiety through Prayer and Giving Thanks. As you meditate only on the positives in your business and the promises of God, you will drown out the doubts and fears currently in your subconcious.

3. Be Anxious or Worry about Nothing, But via Prayer & Thanksgiving Make Your Request Known To God

a. Trust in God's Word that He will provide your every need (Matt 6:25-34)
b. Jesus knows that worrying kills your faith and without faith, it is impossible to please God ( Hebrews 11:6)
c. How to keep from worrying, think only on these things: (Meditate
on the Word)

Things that are True
Things that are Noble
Things that are Right
Things that are Pure
Things that are Lovely
Things that are Admirable
Things that are Excellent or Praiseworthy

In summary, God's Word is all of "these things." If we make a habit of meditating on God's Word day and night, then we do not allow our minds to be consumed with thinking on our fears, failures, current issues, etc...

It is a scientific fact that the mind cannot possess two conflicting thoughts at the same time. Therefore, by dwelling on the positives in the Word of God, we eliminate anxiety and worry, but more importantly, we receive an unexplainable peace and the assurance that the God of this very Peace is literally with us! So how do you increase business sales... by simply appropriating the Word of God in your business.

Thus, the assurance that if God is for you, who can be against you (Rom 8:31-39)! Meditate on this Word, Believe this Word, Speak this Word and Expect the promises of this Word. Now watch the explosion of your small business growth regardless of the economy!

Financial Responsibility. Where Do I Start?

Mon, 09 Jan 2012 00:34:00 -0700

The Foundation Philosophy

For as far back as I can remember, I have been able to find success to things at which I put my mind and focus. To be honest, I had never really given much thought to why I seemingly have been able to excel in many vastly different environments with strikingly different objectives, whether it be in my personal life, academic excellence or in the field of finances.

In large part, I never really gave it much thought because I never really saw myself differently than anyone else in terms of achievement. Sure, like everyone, I am proud of my accomplishments (I am known to trade a war story or two if you get me talking long enough), but I never considered myself anything unique in business, finance or any other world. And while I was far from a protégé like Mark Cuban or Steve Jobs, I was, in hind-sight, able to find some moderate personal and financial success by the time I had reached my mid-twenties.

At a very young age, I noticed that people seemed to routinely ask me for advice in financial matters. What was I doing, what is the best way to earn money, what is the "smart play" on the stock market. Most of the time, these inquiries would amuse me, particularly prods for hot stock market tips. I knew next to nothing about Wall Street and the complexities of the stock market in my early twenties, and even now, although I have educated myself more on the area and own a few shares here and there, I am far from a Wall Street wizard; stocks really are not my thing. What I did take from the peppering of financial questions was that, at least financially, I was either doing decently well when compared with my peers, or at least appeared to be doing so.

That piqued my curiosity: what truths did I know about financial responsibility that I could pass along. I was determined to come up with something better than my standard line, "I really cannot help you because I really do not know what I am doing. I am really just a fortunate guy." So I did what I had grown accustomed to doing whenever I desire to identify a truth, I thought, prayed and reasoned. In time, I got the answer to the question I sought; and it was painfully simple. Most truths are.

The truth about financial responsibility is that it is a servant to the following taskmasters: 1) character; 2) integrity; 3) discipline; 4) logic/wisdom; and 5) drive. In non-poetic terms, if you can maximize the foregoing qualities in your life, and genuinely dedicate yourself to that end, you will be financially responsible, and financially successful, in whatever field of endeavor on which you focus. Exactly why and how these qualities dictate financial responsibility and sound financial practices (or even how to cultivate these qualities) is a topic that requires much more discussion than this article permits, but suffice it to say that honing and growing these qualities will do more for your financial well-being than anything I can tell you in a single paragraph.

I know, I know, for many readers this advice is too esoteric or wispy to grasp or to put to use. Most people want a list of 10 things to do or something that can be purchased, uploaded and installed in under 30 minutes. Do not get me wrong, there are lists and products that are helpful, but what I have provided for you are directed to ultimate truths, ultimate truths that have serviced me well as a foundation for my financial philosophy. Whether you realize it or accept it, there are divine (some people prefer the word "natural") laws and principles that guide reality. For example, gravity naturally exists whether we acknowledge it or not.

Its characteristics are guided in accordance with the divine laws and principles that shape this reality. It is simply an aspect of the way the world works. Gravity did not come into existence when Sir Isaac Newton scribbled down Fg=GMm/d2. In fact, the opposite is more accurate. The truth was the phenomena. Sir Isaac Newton's equation was simply his attempt to try to understand and capture that truth in a way that could be easily replicated and explained to others. The same can be said for any mathematical equation, chemical formula or academic model. It is a way for us to under the world as it exists. In a similar manner, there are ultimate truths about our financial reality. It is simply the way the financial world works. The qualities I listed above are calculated to leverage those ultimate truths.

One important point in this regard, most people respond to what I have just shared with you by saying something along the lines of "I wanted a hot stock tip and you give me some mystical secrets of the ancients." Do not lose sight of what I am saying because it does not come in a box with a bar code on it. These truths are not as nearly as mystical and philosophical as many take them to be.

Many of these truths have broad and straight-forward practical application that most people overlook. There are tons of practical, real-world business reasons why, for example, rational market actors want to do business with persons with high degrees of integrity and character and why such persons tend to excel in financial business environments that are, ultimately, built on relationships. Again, the social, technical and philosophical underpinnings for why this is the case is too complex for this article, but, in a nutshell, it is simply the way the world works. Try it. You will not be disappointed.

Life Tips

Here are a few tips that help keep me focused:

Integrity is defined by what you do when no one is looking.
Never think that you are not smart enough. There is an infinitesimally small percentage of the population that can achieve on shear genius and brain power alone. The rest of us each have to work at it.
"Luck" can never be used to explain sustained wealth.
Knowledge is what you know. Wisdom is the proper application of knowledge. With wisdom comes an understanding. In everything that you do, get an understanding.
If you are in a hole, stop digging.
When you are around experts, you should do more listening than talking. When you are talking, you should be asking more questions than making statements.
If you have a great idea, write it down.
There is a fine balance in responsible research and procrastination. Improperly managed, either can fatally factor into any investment. The simple remedy: measure three times, cut once.
If you do not understand an investment, do not invest. If you cannot accurately explain an investment to someone else, you do not understand the investment.
There is simply no "get-rich-quick" scheme in which you should invest.
It is not all about you.

Literature

I am an avid reader and have read a ton of books, some of which relate to business and finance. Importantly, while I am always adding to and tweaking my approach to business and finances, I do not adopt a new approach every time I pick up a new book. You will never succeed under those conditions. As I discussed above, the ultimate truths are what they are; some books resonate with some people and lead to deeper understandings of those ultimate truths more effectively than other literature. The trick is to identify and understand those ultimate truths. Indeed, every piece of financial literature that is worth reading and ingesting, whether wittingly or unwittingly, is building on these ultimate truthts. Find what works for you. I will share with you what resonated with me.

Must read. There is only one book that I recommend as an absolute must read for everyone's financial and life management (at the risk of sounding cliché and predictable even), and that book is the Bible. I happen to be a man of deep faith, however, I honestly recommend the Bible for study to believers and non-believers alike. Whether you ascribe to a particular faith or not, I believe that no reasonable mind can contest that it is packed with financial wisdom, principles and life examples that have stood the test of time. Every financial truth and dilemma that has ever presented itself or that will present itself is touched upon in that single piece of literature. I will be the first to admit that is a complex read and a life-study (it is undoubtedly a marathon and not a sprint), but everything that you need to know is between the covers and spine and I would be remiss if I did not bring that to your attention.

If I could only read two pieces of literature. Outside of the Bible, the two literary works that have had the greatest impact on my financial life and outlook is, in order, The Richest Man in Babylon, by George S. Clason and Rich Dad, Poor Dad, by Robert Kiyosaki and Sharon Lechter. Honestly, these two books, again outside of the Bible, and in particular The Richest Man in Babylon, are basically all I use to manage my financial outlook; everything else is simply minor tweaks to the systems, strategies, understanding and architecture provided in those books.

If you are looking for a start, I can think of no better place than the Richest Man in Babylon. It contains the higher level strategy and softer management points that are necessary for long-term success, but also details the best concrete, well-defined, wealth management system that I have come across that you can implement tomorrow and that actually yields results. Use the system it advocates. It works.

Other Great Reads. I am not an advocate of tearing through tons of books at once because I believe information overload can introduce inefficiencies and can in fact be counterproductive. I recommend reading the references above, implementing a management system that works for you and then read the following references at your comprehension and retention pace to strengthen that system.

The Secret directed by CreateSpace
The 4-Hour Work Week by Timothy Ferriss
The Richest Man Who Ever Lived: King Solomon's Secrets to Success, Wealth, and Happiness by Steven K. Scott
The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber
Good to Great by Jim Collins
The 7 Habits of Highly Effective People by Stephen Covey
How to Win Friends & Influence People by Dale Carnegie
Cash Flow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki and Sharon Lechter
Purple Cow: Transform Your Business by Seth Godin
The New Rules of Marketing PR by David Scott