Set and Then Forget… (at least for a little while)

As an aggressive entrepreneur, I was ready to conquer the world at a very young age. My plan was to out-work, out-innovate, and out-run my competition at all costs until I was financially free.

I started a lawn mowing business… then a custom T-shirt business… and then a motivational poster business…
After several years of intense entrepreneurship, I had reached my mid-20’s… and I was still broke.

Stabilize Your Finances

Financial stability starts with steady income and low expenses, NOT with a great investment or the next great entrepreneurial idea. It took me awhile to realize this, but it’s only when you have a strong base to stand on that you can take big risks.

I always wanted to put risk before stability, but it’s actually the other way around. In America, we’re romanced by the stories of great entrepreneurs. We learn that you have to take risk to receive reward. What isn’t on the front pages is that most of these success stories started with a strong base. Without the security of stable finances to fall back on, these entrepreneurs wouldn’t have been able to weather the ups and downs of entrepreneurship and investment.

1. Get/Keep Your Income… A Job is not necessarily bad

As a free spirit, I’ve always hated “workin’ for the man.” Every time I had a J-O-B, I dreamed about setting up a business and leaving that place behind. The feeling was overwhelming and eventually, I would succumb…

I’d put in my resignation and set out on my next business adventure. Unfortunately, because I’d jumped ship too early, I’d be right back at the job after several months.

Entrepreneurs: Don’t Jump Too Soon
As an entrepreneur coach, I see the same situation over and over again. People come into my office, ready to start a new life. They say, “OK, I quit my job… now what?”

My advice is always something they don’t want to hear:

“Try to get your job back…”

Realize that entrepreneurship is risky.

The Moat Theory
Risk is not something we want to take until we have a stable foundation. Mitch Stephen, a friend and author of the book “My Life and 1000 Houses” calls it The Moat Theory. Get your basics covered and surrounded by a moat before you set off over the draw-bridge with your horse and joust.

Then… if you’re not successful… you can just retreat back to your little castle, pull up the bridge, and regroup.

Financial Gravity
The fact is: you have a much better chance of being successful if you’re operating form a place of security as opposed to a place of desperation. It’s part of financial gravity… people can smell it when you’re weak.

2. Take Inventory… As Painful as it Might Be

The vast majority of people have no idea where they are financially. They might have a vague feeling of “I’m broke”, or “I’ve got some extra money”… but if you asked for their net worth or cashflow statement, they’d just give a blank stare.

It can be a painful process to pull together all of your statements and fill out a financial statement… but the end result is liberating.

Even if it’s bad news… at least you know where you are! Finally, you can start taking steps forward.

Here’s the gist of financial statements:

Balance Sheet
(Your Net Worth)

Add up all of your assets and then subtract your liabilities.

Assets (find the current value of the items below if you were to sell them today)
Home
Savings Accounts
Stocks & Bonds
IRA/401K
Life Insurance
Businesses Owned
Personal Property

Liabilities
Home Mortgage
Credit Card Debt
Student Loans
Auto Loans
Other Loans
Other Debts/Collections

Income Statement
(Income Minus Expenses)

Income:
W2 Income
Real Estate Cashflow
Interest Earned
Business Income

Expenses:
House Payment
Car Payment
Utilities
Insurance
Food
Entertainment
Miscellaneous Expenses

3. Increase Income/Axe Expenses until You are at Least $200/mo Cashflow Positive

Whew, that feels better…

Now that you know where you are, you can take the first step toward tightening up your finances.
If the bottom line of your income statement was positive… great! You can move to the next step (as long as you keep it positive!)

If your bottom line was negative, it’s important to get it into positive territory as soon as you can. Increase your income and/or decrease your expenses until you’ve got an extra $200 a month.

Be Strong
This is where #13 “Get Rid of Insecurities” really kicks in…

If you’re an insecure person, it will be hard to get rid of luxuries in order to be cashflow positive. You have to dig deep and realize that you are making short-term sacrifices for long-term gain.

4. Make a Pact Never to Decrease in Net Worth Again

Now that you’ve proven to yourself that you can maintain a positive monthly cashflow, it’s time to commit.

As long as you always make more than you spend, your net worth will always increase (provided you don’t invest in risky assets… see The Equity Goose and Cashflow Golden Egg)

Take time at the end of each month to fill out your balance sheet and income statement. Check to see that you have a positive number on the bottom line of your income statement and your net worth is higher than it was the month before.

Even if your net worth only increases by $100, you are always moving forward. It’s much harder to catch up from a loss than it is to make a small gain.

When you stabilize, you will notice that your net worth will begin to accelerate.

5. Pay your savings and bills the minute you get your paycheck

Here’s a tip that really helped me do away with “surprise” bill payments. Each time you get your paycheck, make the following transactions in this order:

1. Put at least $200 in your untouchable savings account.

2. Pay all of the bills you owe for that pay cycle.

3. Take out a budgeted amount of cash for all of the day-to-day spending you will incur until your next paycheck.

6. Build a $1,000 Emergency Account

I owe Dave Ramsey for this powerful tip:

Save up to $1000 in your “emergency account” before you make any other financial moves such as paying down debt or making an investment.

It took me awhile to “see” the wisdom (again, I was thinking too hard…), but it’s very powerful.

There is no way you can predict all of the expenses that will appear in your life. Most people spend every dollar they have, and when something “unexpected” happens, they have to borrow to pay for it.

Once you realize that “unexpected” expenses are a part of life… they will no longer be unexpected.

7. Get Your Credit Above 700

After you stabilize your income statement and put away an emergency account, you can start working on your credit.

DISCLAIMER: We’re not building credit so that you can buy more “stuff.” Credit is a fragile tool that we can use to buy income-producing investments.

There’s a complex formula (that’s way above my head) to increasing your credit score. Trying to figure it out will only confuse you. I would recommend finding a reputable credit consultant who can work on your credit on your behalf. (Be careful, there are a lot of credit repair scams out there.)

8. Focus on Building Your “Equity Goose”

Once you’ve built up to a 700 credit score, you can start building your net worth with assets such as real estate. The idea is to buy an asset such as a house at a discount, fix it up, and either rent or sell it.

If you’ve bought the asset correctly, you’ll make $20-40,000 every time you repeat this process.

Never Touch the Goose!
Take those chunks of $20k and put them back into the system…

Never live on the equity of your investments (the goose), only the cashflow (the golden egg).

Stabilize Your Life

I started this article by writing about finances. My intention was to keep your attention, not to suggest that finances are the most important part. Most people like the tangibility of financial advice so that they can apply in their life.

But, the reality is: your financial fitness often mirrors your social, physical, and spiritual fitness. If you’re struggling financially, it may be an indicator of an imbalance somewhere else in your life.

Even though these areas can be harder to measure than finances, ultimately they are the entire reason we seek more money in the first place.

9. Exercise at Least Three Days a Week

The easiest and most immediate way to see improvement in your life is to improve your physical fitness. All of the other areas of your life (including mental, social, and spiritual) are affected by your physical being.

The trick with fitness is simple:

Consistency is more important than intensity.

Getting some moderate exercise three times a week for the rest of your life will do more for your overall well-being than jumping into intense exercise cycles that will eventually burn you out.

A good book to illustrate this point is “The Compound Effect” by Darren Hardy. He points out that massive changes can be made in your life by making consistent, small efforts.

10. Realize that You’ll Be Fine No Matter What Happens

When I face great stress in my life… I always resort to something I learned early in my adulthood:

After all is said and done… you’re going to be fine.

Look back at times in the past when you’ve faced trials and tragedy. In the end, you were okay.

It takes an amount of spiritual maturity to realize it; but even if the worst scenario you can imagine happens… you’re going to be okay.

Take some time to ponder and meditate on this concept and it will free you to face life with more vigor and confidence.

11. Seek Guidance

As a strong self-determinist, I thought I could create wealth on my own through reading books and brute force… It wasn’t until I had a few years behind me that I realized the immense power of seeking guidance… and results started to follow.

Intelligence vs. Wisdom
I’ve always had a very strong intellect (I thought that was all that I needed). What I didn’t realize is that intelligence can actually be an obstacle to success without wisdom.

The difference between intelligence and wisdom is similar to the difference between leadership and management. To borrow from one of my favorite books of all time, “The Seven Habits of Highly Effective People” by Stephen Covey; the managers are down in the jungle, sharpening the blades, organizing a work schedule, motivating the workers, innovating new tree-chopping techniques…

The leader is the one who climbs the tallest tree… surveys the land… and yells, “Wroooong Jungle!”

Wisdom Comes From Experience
The reason it is so important to seek guidance is that wisdom cannot be manufactured through sheer brain-power alone. It can only be found in the minds of those men and women who have been there before.

The great thing is that it doesn’t have to come from your own experience… you can skip the learning curve if you are open-minded enough to listen to the advice of someone who has been successful.

Find someone who is in the financial, social and spiritual position you want to be in and ask them for advice.

Pride
It was hard for me to ask for help in my younger years because I let my pride get in the way. I wanted to become successful on my own.

When I started to seek guidance from people who where more successful than me, my own success increased exponentially.

The World Is Immense
I’ve had the blessing of being well traveled (I would recommend it to anyone). The more I traveled, the more I realized that the world is larger than a human brain can comprehend.

It is almost guaranteed that someone has faced the same obstacle that you are facing now… thousands probably have.

Instead of trying to figure it out on your own, it makes much more sense to learn the wisdom of those who have already overcome.

12. Set Your Intention

The easiest part for me was always knowing what I wanted… I read books on visualizing my goals and I became good at it. I was able to create the feeling of achieving the objective before I even began on the journey.

Having a clear picture of what you want is important to establish in the beginning. Take some time and imagine who you would like to be.

It doesn’t have to be some grand dream… If you’re having trouble with a goal, start with something simple like finishing a good book or smiling more at work.

Engrain it in Your Head
Once you’ve got an idea of what you want, it’s time to engrain it in your head by setting your intention. Realize that thoughts are fleeting… it takes real discipline to engrain a thought in your head. Here are a few ideas on how to set your intention:

• Write it down… the act of writing “crystallizes” your thoughts.

• Leave notes everywhere… on your bathroom mirror, computer monitor, steering wheel, etc.

• Meditate on it… clear your mind and visualize it as if it were real

• Keep a symbol in your pocket… every time you reach for your keys, you’ll bump into that rock or figurine

• Create a vision board… make a collage of magazine clippings symbolizing what you want to become

It’s important to “Begin with the End in Mind”, (as Stephen Covey would say); but it’s also important not to get stuck living in the future dream space. Once you’ve set your intention, set it aside and get back to working on your foundation.

13. Get Rid of Insecurities

Insecurity is a huge obstacle to success. Most people hold some level of insecurity in some aspect of their life. Those who learn how to manage and overcome their insecurities are much more likely to succeed.

A person who is secure with his or herself is able to give to others and create win/win relationships. An insecure person is always taking from others, attempting to fill a seemingly endless void.

Read “Sings of Insecurity” for more on this topic.

14. Participate in Your Hobby at least Once a Week

In today’s fast-paced society, work and making money consumes us more and more. Many people can’t remember the last time they took time to enjoy a hobby.

Taking time to shut off the work thoughts in your head and enjoy yourself “resets” the neurons in your brain, making you more efficient when you return to work.

When your brain is always engaged, it becomes weaker.

Read “The Power of Full Engagement” for more on this topic.

15. Take Time Each Week to Visit with Friends and Family

What good are possessions or experiences if we don’t share them with someone?

The relationships we make and maintain are the greatest investments we can make in our lives. Be sure to spend quality time with loved ones as a part of your weekly schedule.

In Conclusion…

When working on personal development, it can be tempting to jump straight to the more glamorous activities such as investing, entrepreneurship, and shooting for the stars.

None of those things matter unless we have a stable base to stand on. Start by stabilizing your life and finances before you move on to more aggressive investments.

The Burden of Talent at a Young Age

I’ve seen this scenario a thousand times:

Gifted kid in high school… good looking… smart… athletic…

Never had to study because he “was a good test taker…”

Able to charm his way out of late homework…

Probably voted “Most Likely to Succeed” or “Most Popular” in the senior yearbook.

But did he succeed?

Whether or not the fallout started in college or the real world was probably an indicator of how talented he actually was… but the shortcuts eventually caught up; leaving him with a false sense of entitlement and an empty wallet.

You see, in the real world, talent isn’t rewarded… production is.

In other words, you don’t get paid for being able to solve problems… you get paid for actually solving them; which often takes time, effort, and “the grind.” That’s why you often see the less talented, but hard working, high school kid sneak up on the studs and become successful in life. They never had a large enough ego to convince them that they didn’t need to do the hard work.

“The Grind”

“The Grind” is a term used to describe the boring, tedious, painful little actions that need to be done to accomplish a result. I’ve been in about a dozen career fields in my lifetime and every single one of them required “the grind” to get ahead… at least at first.

When I was a kid mowing lawns… I had to knock on doors and get rejected ten times before I picked up a client.

When I was building my bulk candy vending business… I had to get rejected by ten store owners before one would take my gumball machine.

When I was in film production… I had to get coffee and make copies for bosses ten years younger than me before I was promoted.

Now, when we buy investment houses…we have to talk to twenty home sellers before we find a deal that works.

If you’ve chosen the right career field, a lot of hard work in “the grind” can lead to easier and easier ways to make money as you build wealth or get promoted, but the principle remains that it’s all about production… not talent.

It’s All About the Ratios

The science behind the grind is that production is a ratio of energy exerted. The best examples I can think of are in sales (which you may not think apply to you; but sales permeates everything in life from closing a house to negotiating which movie to watch with your spouse.)

In sales, everyone is familiar with the term “close ratio.”

For example: a store that sells kettle corn might advertise free kid-size bags of corn in the local entertainment paper. The ad attracts 100 moms with kids, 50 of which just take their free popcorn and run.

The remaining 50 buy larger bags to take home, and 20 of those sign up for the “flavor of the week” program where they pay $20 a month to get a free bag of kettle corn each week.

This particular store had a 50% close ratio on regular corn and a 20% close ratio on the monthly program. The salesperson behind the counter had to be rejected by 50 people to get 50 regular sales, and by 80 people to get 20 “flavor of the month” sales.

No matter how talented you are, only a portion of your effort will be rewarded in life. More talented people might have higher “close ratios”, but it doesn’t matter if they are not participating in “the grind” to begin with.

“The Grind Doesn’t Apply to Me”

I write with such contempt for talent-waste because it started to happen to me before I realized what was going on.

I breezed through junior high and high school (with honors) without ever taking my mother seriously when she told me to finish my homework before I go out to play. In college I boasted a self-proclaimed “highest GPA to attendance ratio in university history.”

(I had a 3.5 GPA, which meant the ratio was probably close to 10.0!)

I was clearly skating by on my talents and I thought that I had schmoozed all the teachers into loving me until I ran into an old high school friend at my 10 year reunion. It was great to see her for the first time in many years and I learned that she had become a teacher at our hometown junior high.

The funny thing was: most of my old teachers still worked there and she gossiped with them every day in the teacher’s lounge. I started to feel a little uncomfortable under the collar as the expression on her face turned into an evil grin.

“They had a nickname for you…. Do you want to know what it was?”

Before I could spit out “no”, she blurted out in laughter, “Doesn’t Apply To Me Lee!”

My heart sunk. I pictured myself as the model student; but clearly, the teachers
were smart enough to know my skating ways (even if they were complicit by enabling me).

New Beginnings

The experience made me reflect and realize that my talents had handicapped my progress in the real world. Skipping “the grind” was all I knew in high school and college… why wouldn’t I carry that over to my career?

That’s when I started to force myself to knock on doors to place gumball machines, even if i didn’t like it.

Now, it seems obvious. Success is a combination of “the grind” and talent… with a strong lean towards “the grind”. The good news is: if less talented people are succeeding at “the grind,” imagine how successful a more talented person would be if he just worked harder.

The Higher Levels

The highest paid jobs in our society are for creative problem solving. People that can use their heads to create new products, systems, plans, etc. stand to make a lot of money.

Talent is definitely a much higher factor in these jobs, the problem is: you have to go through the grind to get there. You have to know what it’s like to be in sales before you can be the CEO.

Types of Talent

We’ve mainly been talking about intelligence: the type where you can ace a high school test without studying; but the bottom line is that any major advantage you have over others at an early age might come back to bite you.

A good example is attractiveness.

Extremely attractive people have an advantage over others starting at an early age. They’re more popular, they get away with more bad behavior, and people coddle to their needs more than their less-attractive peers. This can lead to the same false-sense of entitlement as extremely intelligent people.

Someone who is born into wealth can face the same issue. Not having to work as hard to get what you want can “soften you up” in your later years.

Awareness

The key is to be aware of falling into the trap. If you are a person to whom things come easily, it wouldn’t hurt to take a look at your choices and habits. The difference between a great life and a good life might just be a little bit of “the grind” to get you started.

A very wise man once taught me that the key to marketing is not what you say, but how well you can transfer emotion to your audience.

Subtlety

It’s an extremely hard concept to master because it’s subtle. There is no instruction manual on how to transfer emotion. This is bad news for over-analytical types that want the exact formula for success, and good news for creative types that know how to tap into other people’s emotions.

Considering that marketing is a part of everything you do, from getting a date to getting a job to asking your parents (or boss) for money; you would serve yourself well to understand and learn to implement this concept.

Why do you think that top actors are among the wealthiest in our society? They have mastered the concept of transferring emotion from the screen to you in your seat.

Digging Deeper

Steve taught me this concept about a year ago, and since then I have been working on it weekly in my role as a presenter and mentor. Over the last 3 months, I’ve submersed myself even deeper through the process of training my business partner, Shauwn, to present.

It has been a fascinating experience to watch his growth as a presenter from an outside perspective. We have learned without a doubt that Steve was right. Shauwn (or I for that matter) could say the exact same thing on two different nights, but the results might vary drastically based on how well he transferred his passion on the subject to the audience.

Sometimes it even seems like he could say almost anything as long as he transferred the emotion well enough.

The “Ah-Ha” Moment

A few weeks ago, I sat in as Shauwn gave his presentation. I could see in his eye that something had changed. The information was the same (making the same mistakes in the material.. damn you Shauwn!), but the delivery was very different. I found myself looking up and leaning forward in my chair, where before I had the tendency to mentally wander.

It ended up being his best night up to that point. Interestingly enough, he didn’t quite understand why. He told me that he actually felt like he had given a worse presentation than in previous nights. No…., I told him, It’s not the presentation that mattered, it was your transference of emotion. It was there!

I find it fascinating that the difference was so subtle that it was hard for him to put his finger on, but the audience could sense it.

How To Transfer Emotion

You may not be a public speaker like Steve, Shauwn, and I; but the concept still applies to you. Anytime you want something that someone else has, such as money, attention, acknowledgment, etc; you market yourself to get it. To be effective, it’s important to transfer the emotion of urgency, desire, sympathy, or whatever feeling is necessary to get them to take action.

Transferring emotion to another human being takes a delicate balance of passion, communication skills, and empathy.

Passion

To transfer an emotion to someone else, you first have to strongly have the emotion yourself… but how do I tell you to how have an emotion?

Feelings are funny, subtle things… especially for men. Maybe that’s why women tend to be better communicators.

If you don’t have passion for what you are selling, writing, asking for, etc; you are not going to be successful. Your audience can sense your feelings for the subject matter. If you are weak in this area, it’s possible that you are suppressing your emotions (a lot of us men), or maybe it hasn’t been properly marketed to you yet.

It might help to go back and become an audience member again for someone who is passionate about the topic. For example, if you are a blogger who wants to write about poetry (and you’re not feelin’ it.) It might help to find someone who gets excited about the ancient poets and listen or read them for awhile to hopefully acquire their excitement for it.

You see, we all pass emotions to each other like currency flows in an economy.

Controlled Passion

Once you have sufficient excitement for your topic, it’s important not to go overboard (I told you this thing is subtle). With practice, you will eventually find that delicate balance between passion and control that your audience will respect.

Too much passion and people won’t believe you. Too little passion and they won’t even hear you.

Communication Skills

In our school system, it’s very hard to find classes on communication. I guess we’ve decided as a society that we should learn it on our own. I made it through high school and 1 year of college before I took an elective class on interpersonal communication; and I will argue that it was the most beneficial class I have ever taken.

Think about how inefficient interpersonal communication is: Right now, I have an idea in my head that I’m trying to transfer to your head. The idea has to be translated into an imperfect language that took thousands of years to develop and put into words on this page before it gets to you. By some chance, it got to you, and hopefully I kept your attention long enough for you to make it this far in the article. You now have to take the words and the language and try and reconstruct my idea in your head.

The closer I can come to reconstructing my idea in your head, the more successful I have been as a communicator. That being said, it is impossible to reconstruct an idea perfectly in someone else’s head.

Mastering communication takes study and practice. Start by learning what makes people tick. Learn the differences between how men and women think. Learn the different Meyers-Briggs personality types. Learn a different language.

Take your knowledge into practice by talking to people. Get in front of groups. Write. Communicate!

Empathy

The most important part of marketing is actually caring for your audience. You have to actually care enough about how they feel to transfer your emotion to them.

Steve used to tell me to “love your audience.”

The Bottom Line

In conclusion, marketing is tough and takes a lot of practice. It is a pursuit that takes a lifetime to master.

The journey, though difficult, is worth every step. If you can master the transference of emotion, you can have anything that you want in this life.

Have you ever been a little frustrated with a co-worker and wrote an email to express your concerns; and instead of reading your calm, yet concerned tone, the co-worker read a little more attitude than you intended and snapped of an even more explosive email with three other co-workers and two supervisors CC’d?

Your next move played a pivotal part in the escalation of the conflict and said more about your character than any email could ever describe.

The Pivotal Moment

Did you:

A) Snap off an even more heated email, with everyone in the company CC’d including the CEO?

B) Go into damage-control mode by crafting a very detailed email in a level-headed, yet firm tone explaining the conflict to everyone attached to the email chain.

C) Take a lunch break to cool off and resolve the issue by picking up a phone.

Technology and Civility

Here are two of my major frustrations with the onset of technologies like email, text messaging, and Facebooking:

1) Lack of Non-Verbal Communcation

2) Lack of inhibiting factors

The Downfall of Non-Verbal Communication

If you’ve ever taken a communications class, one of the first principles you were taught is that (depending on the source) 70-95% of communication is non-verbal. You can literally say the same sentence an infinite number of ways and communicate an infinite number of meanings.

Here’s an example from an article about how your brain interprets what your ears hear at The National Institutes of Health website:

Try changing the emphasis on a different word and see how it changes the meaning of this sentence:

The blue fish is too big for that tank. (Meaning: The blue fish is too big, but fish of other colors are the appropriate size.)

The blue fish is too big for that tank. (Meaning: The blue fish is too big, but other blue creatures are the appropriate size.)

The blue fish is too big for that tank. (Meaning: The blue fish is too big for that tank but may be the appropriate size for some other tank.)

Add voice tone, facial expressions, hand motions, eye contact, etc. and you can see how easy it is to make mistakes in communication. It’s amazing that we can even communicate at all.

Digital Emotions

That’s why I try to make all important or emotional communications by voice; preferably in person, but at least over the phone.

Think about a simple message such as: “Are you going to get that project done, or are you really busy?” Let’s say you were in a hurry and you decided to send it in a text-message. You sent it with a smile, in a caring tone, as if to offer help.

But think of all the ways that message could be interpreted. The person who reads it might imagine you to be crossing your arms with a snarky tone. They might imagine a smirk on your face as if to put you down. They might see you rolling your eyes in a condescending way.

You have no way of controlling how your message is interpreted, because you are not there to add your non-verbals and view the reaction.

Feedback Corrections

When you’re face-to-face with someone, you have the luxury of instant feedback in order to make course-corrections. If something didn’t come out as you intended, or if someone gets offended, you can instantly backtrack, or clarify your position.

With electronic communication, if your recipient is offended, they might stew on on it or bring other people into the conversation before you have a chance to react.

Lack of Inhibitions

People are simply more civil to each other face to face. If someone cuts you off with a grocery cart you’d probably bite your tongue and force a smile; but when you get home you might scream at the wall to release your frustration. The potential consequences of a conflict inhibited you from screaming at the person face-to-face.

Behind your computer screen at home, the consequences of offending someone else seem far away, almost non-existent. It’s much easier to tell someone “what you really think” in the heat of the moment, even if you’ll regret it later.

It doesn’t take any guts to confront someone from behind your computer. This is what cowards do, they hide behind someone or something else and yell insults.

Grow a Pair

Today, it seems like everyone wants to use email and text messaging for their dirty work. Breaking up, firing someone, canceling a date… It drives me crazy. Do you realize how little toughness it takes to fire someone over email? Grow a pair. (Yes, this actually happened to someone I know.)

People want to hide behind the digital divide and lob missiles. They say things that they never would face to face. Toughen up. Here’s a good rule of thumb: If you can’t say it in person, don’t say it at all.

The Last Time I Succumbed to Temptation

Early in my professional career I had a rocky relationship with a co-worker, let’s call her Sally. Sally had been around the job awhile and held the same position that I held. We reported to the same person; but, for one reason or another, she thought that it was their business to tell me what I could and could not do at work.

About twice a week, I would get a very detailed email from her listing what I had done wrong. I held my tongue every time it happened because I wasn’t going to lower myself to this sort of argument.

I simply ignored her and continued on with my day. My supervisors were very happy with my work and I didn’t see the problem.

One day, her frustration with me must have hit critical mass. Sally gathered all the emails she had ever sent me, pasted them into one huge email, added a few more things and emailed it. Not only did she send it to me, but to our boss, our boss’ boss, and about 5 other people who had nothing to do with anything.

My Test

I promptly drafted up the most scathing email I could write, CC’ing everyone I could think of who would support me, and sat staring at the “send” button. The email draft explained how she constantly rode me (when it wasn’t her place); furthermore, it went on to criticize everything else about her I could think of at the time.

I knew I shouldn’t send it, but in a moment of weakness I clicked…

I immediately felt remorse, but there was no turning back. The deed had been done. If I had just left it where it was; spoke to my supervisor and Sally in a civil way, she would have looked like the idiot. Instead, I went down into the mud where she lived.

The email did what it was intended to do. She had a sit-down with the supervisor and stopped the behavior, but it wasn’t worth the unintended consequences. The tension in the office made working together a problem and I was moved to a different department. I never worked it out with her and I regret it to this day.

The CC is the New Tattle-Tale

CCing your boss is really the same as telling your mom on someone. Come on. Are we still in Kindergarten?

Count to Five

Before you click “send”, force yourself to do these five things:

1. Wait 24 Hours.

Things never seem as bad 24 hours later… The emotions of the moment cloud your judgement. You might even realize some fault.

2. Don’t Make it Personal

In business, emotions can get you in trouble. Think about what you want your results to be and stick to what will get you there. Don’t play he said/she said and possibly risk much more. Just solve the problem.

3. Talk to The Most Rational Person You Know

Immediately, call a trusted friend who can talk you off the ledge. Try to avoid emotional or irrational personality types. Call the most level-headed, non-emotional person you know for some advice. You’ll almost always find that there are much simpler ways to resolve your problem.

4. Check the Ego

It’s tough to conceive, but you might actually be wrong. If you are wrong, fighting back might just make it worse. Have the courage to accept fault where deserved and move towards solving the problem. Don’t make this about destroying the other person. Make it about a mutual solution.

5. Pick up a Phone

Have some integrity and pick up the phone. Stop the CC email madness and cut to the chase.

Your counterpart will probably be so shocked that they will drop their guard. At the very least, you will get their respect. Even if they hate you for it, they will respect you because you had the integrity and guts to face your problem head on.

Blue vs. White

Here’s one you may not have considered: Is it better to be a working stiff or a suit if you’re an entrepreneur who’d rather be working for himself than the man anyway?

Entrepreneurial types tend to gravitate towards management (suit), but does that really serve their greater goal? Managers tend to spend long hours on the job and usually get paid on salary (which means no overtime). Where’s the time to make yourself rich?

My Prism

I see the business world divided into two groups: working stiffs and suits. “Suit” doesn’t necessarily mean they wear a suit to work every day; it’s a metaphorical term for someone who makes the decisions and delegates work to the stiffs.

Under my definition, an airline pilot is a stiff, the same as a coal miner. Each does the job they were hired to do with little say over the larger decisions, such as which routes to fly or where to dig.

“Stiff” Characteristics

Hourly Pay
Overtime
Repetitive Tasks
Supervise Few or No People
Make Local Decisions
Gets Delegated to
Limited Upward Mobility

Stiffs:

Bartender
Airline Pilot
Flight Attendant
Construction Worker
IT Professional
Film/TV Editor

“Suit” Characteristics

Salary
No Overtime
Varied Tasks
Supervise Several People
Make Global Decisions
Delegates
Expanded Upward Mobility

Suits:

Restaurant Manager
Airline Supervisor
Construction Manager
IT Supervisor
Film/TV Producer

Risk and Reward

The decision of which path to choose is a big one. If you’re a GeniusTypes reader, you probably have high expectations. Anyone who is looking for passive income obviously wants bigger and better things. If you choose to be a stiff and the passive income thing doesn’t work out, you risk being a stiff for the rest of your life. If you choose to be a suit and never have time to create passive income, you risk working for “the man” for the rest of your life.

Even more powerful are the sociological beliefs that we and our peer groups have about our career choices. If you come from a family of college graduates, you might be expected to pursue a white collar career. Conversely, if you come from a blue-collar family, being a “suit” might be looked down upon.

To get where you want to go, it’s important to get past your beliefs about career issues and choose the path that serves your goals the best.

Restaurants

A lot of creative types work in the service industry as waiters and bartenders. In New York, LA, and Austin (all of which I’ve spent time), when someone says they’re an actor; it’s usually followed by a tongue-in-cheek “which restaurant do you work at?”

Service jobs fall under the “stiff” category, which serves artists well. The jobs are flexible, the pay is relatively decent, and the job doesn’t require much responsibility. An actor or writer can pay their bills with a bar job and spend the rest of their time creating art (which probably doesn’t produce much income).

I’ve been around the bar/restaurant scene long enough to see many artists face the same dilemma: after several years in the service industry, without much success as an artist, they’re given the opportunity to go into restaurant management.

It’s usually a tough decision. Their friends and family have been pressuring them for years to get a “real job,” and management looks much better on a resume. On the other hand, managers spend endless hours at the restaurant which leaves less time to pursue their art.

To complicate matters, entry-level restaurant managers often make less than waiters and bartenders on an hourly basis. The trade off being they have more power and the chance to eventually become the General Manager of their own restaurant: a job that pays pretty well.

In my experience, choosing restaurant management means the end of their dream as an artist. This can be a good or bad thing depending on your perspective. If they weren’t ever going to make it as an artist, perhaps it’s a good thing.

Entrepreneurship as an Art

Entrepreneurs are creative types with a little more business sense than the average artist (notice I said “little”). Therefore, entrepreneurs face many of the same challenges as artists. The rewards for their passion can be massive, but the risk is great.

In the restaurant example above, you could easily exchange “real estate investor” or “bulk candy vending entrepreneur” for “artist”.

Film/TV Business

A similar thing happens in Hollywood. Everyone’s first job is always PA (production assistant), which is definitely a “stiff” job; but after that you have to choose if you want to start on the path to producer (suit) or specialized labor (stiff).

It’s an interesting dilemma, and your choice will depend on either your personality or objectives. Producers get to call the shots. They have all the power in Hollywood, but they don’t necessarily have all the money. Think about it: who gets paid more, actors or producers? In most cases, actors do. Until you get to Jerry Bruckheimer’s level and you own the joint, you won’t make as much as a highly specialized stiff.

Being a paid actor might just be the greatest “working stiff” job on the planet. They get paid ridiculous amounts of money to have fun all day, but they don’t get to call the shots… producers do.

On a lesser scale, the same thing happens with other specialized jobs. In post-production, editors get paid much more than producers. I’ve worked in edit bays where the editor is getting paid over three times as much as the producer, but the producer is controlling the editor’s every move.

Some producers do it because they love the power. They would gladly give up the money as long as they can boss people around all day. I’m just the opposite: I’ll do anything you want, as long as I’m getting paid three times as much as you.

Editors get paid a certain amount of money because the art of editing is a specialized skill that few people possess. They need to have the technical skills of an I.T. professional AND the creative skills of a storyteller. The “suits” hire the editors for an hourly rate and tell them what to do. If an editor works more than 8 hours in a day, they get paid overtime. If a producer works more than 8 hours, they may not.

That’s not to say that there’s anything wrong with choosing the producer route; it just depends on your objectives. If you plan on running the studio some day, then producer is where you want to be.

Airline Business

The same thing happens at airlines. Airline pilots have a specialized skill that few people have and they get paid for it. I once knew a pilot that made $500 an hour.

It’s a high-paying profession, but it’s still a “stiff” job. Most of the pilots I’ve talked to say it’s actually pretty boring. After you take off, the plane flies itself (it will even take off by itself if you want). On a seven hour flight to Europe, pilots kill time by reading the newspaper and turning a little dial every once in awhile to change course.

Pilots punch the clock like any other stiff… they just get paid more.

An Interesting Idea

Consider your objectives when choosing a career path. If you’re an entrepreneur who hopes to create passive income streams in your spare time; your only criteria for getting a day job might be this: the one that pays the most for the least amount of time spent.

You need to make enough to have some left over to invest, so stay away from minimum wage “stiff” jobs. There are plenty of specialized labor jobs that pay well. Think bartender, pilot, editor, etc. Even construction workers make a rather decent hourly wage.

If you choose this path, it’s important to stay focused. If you forget to put money away to invest in your entrepreneurial ventures, then maybe you would have been better off as a suit. I know more than a few actors/waiters who never found time to act. It’s a pretty crummy feeling to have spent many years in a “stiff” job without anything to show for it.

Check the Ego

When I was starting out in the career world, I had a mental block towards “stiff” jobs. I worked at an airline for awhile and briefly considered going to flight school. I ultimately decided that I wouldn’t be happy as a pilot because I wanted more control. I saw myself as more of an executive type who told the pilots what to do. (is that crazy or what?.. for $500 an hour, I could have controlled just about anything I wanted).

That’s the thing about life experiences: they make you who you are. Because of that experience, I didn’t make the same mistake the next time around. I joined the TV/Film industry four years ago and was told that I could pursue any career path I wanted. It was tempting to take the producer route… but I chose the path to editor.

Reader Beware

Be careful when you read Kiyosaki, Robert Allen, or any of the army of gurus preaching that passive income will end all your troubles. The overall concept of “Rich Dad, Poor Dad” is profound, but it doesn’t tell the whole story. Don’t quit your day job yet.

When I first read Kiyosaki, I was immediately hooked on the concept. I read all the books and they blew my mind. I bought the game Cashflow 101 and hunted down every last friend and family member who was still brave enough to donate a few hours to reliving their financial failures in a board game.

Young Passive Income Warrior

I went out and started my portfolio. The economy was on still on a real estate bender, so I was able to buy a rental house with no money down, no proof of income, and no credit. I stuck in a tenant who paid me $100 more than I paid to the mortgage company and thought to myself: …damn I’m good.

I got the idea to start a bulk candy business for passive income. We bought ten machines and placed them in ten restaurants in Austin. Just like that, we added $250 a month to our passive income.

When we were ready to move to LA to give the entertainment industry a shot, I started scanning the internet for bulk candy vending businesses in Southern California. I found a guy who was willing to let go of 40 machines in decent locations for next to nothing. I almost covered the acquisition cost on my first day in LA. Just like that, I added another $500 a month in passive income.

I thought… damn I’m good.

King of the Anthill

At this point, I pretty much decided that I had made it. All those suckers moving to LA, struggling to pay the massive cost of living increase had nothing on me. I had $850 a month in passive income. What did they have? …a crappy job? Kiyosaki taught me that jobs were for suckers.

Hero Fallen

I went to see Kiyosaki once at the Real Estate Wealth Expo in New York City. It was an event where hundreds of real estate gurus all got together to give speeches, sell books, CD’s, and boot camps. Robert was one of the headliners and I could hardly contain my excitement to see him.

With my girlfriend at my side, I proudly stood up to greet him along with hundreds of others in the auditorium as he entered the stage. My perma-grin turned to puzzlement as he put his right hand on his forehead in the shape of an “L”. “Losers!” he yelled and the crowd cheered.

“What is he talking about?” my girlfriend asked. I wasn’t sure, so I continued to listen as he explained to the crowd that working a 9 to 5 job was the mark of a loser. Over and over again, he stuck his hand to his forehead and repeated the chant: “Loser!, Loser!, Loser!”

Wait a minute, I thought. I bet 95% of this audience has a 9 to 5 job… and they’re cheering.

Steady Ahead

The experience had taken Kiyosaki down a notch in my eyes, but I still believed strongly in his concepts. To me, he was a brilliant “big picture” guy who left something to be desired in the category of tact, humanity, and details. I didn’t need him to be a good guy to know that passive income was for me.

I found sporadic work in Hollywood producing small-time pieces for TV and internet, but never pursued full-time work. Why would I? 9 to 5 was for suckers (but not losers).

Soon after, I started GeniusTypes and added another $750 a month to my cashflow. My passive income streams were over $1500 a month. I thought: …this just keeps getting better.

The First Sign of Trouble

Life should have been good. I had done everything the books had taught me. It was almost as if everything I touched turned to gold. I had money coming into my bank account even as I slept… Big pimpin’ …right?

As I explained all of this (with great pride) to my girlfriend, something weird started to happen. I was telling her how great everything was and somehow, she was ticked off!

I don’t remember the exact conversation, but it went something like this:

Her: Your stupid “passive income” isn’t helping us pay the ridiculously high cost of living here!

Me: What are you talking about? I make that money in my sleep!

Her: Who the hell can live on $1,500 a month in LA?

Me: But it’s passive!

Her: That’s the freakin’ problem: you need to get your butt into action!

Me: But it’s passive…..?

Her: (shut down)

Something had gone terribly wrong.

Starting Over

Now you have the long version of why I stopped posting on GeniusTypes. I went out and got a job… Actually, I got two. I worked 60 to 80 hours a week in order to make up for the long period of time that I was quote/unquote “self employed” (which really means unemployed). It was the antithesis of everything that Kiyosaki had taught me.

I also went looking for guidance. Instead of believing in authors and trying to do it on my own, I found people who had achieved the success that I wanted. I found some mentors.

The Right Map

The first thing they taught me was something I didn’t want to hear. I wouldn’t have bought their book if they were selling it like Kiyosaki because it kind of sucked…

They agreed that passive income was the ultimate, but everyone needs money to survive. If I couldn’t pay for my monthly expenses with passive income, then I must do the next best thing: get a job.

…But Kiyosaki says jobs are for Losers!

…Who’s more of a sucker: Someone who works full time and supports their family, or someone who quits their job and gives all of their remaining money to Kiyosaki fpr books, CD’s, and boot camps?

Wow. That was kind of harsh.

Leverage Your Time

I re-learned the concept of leveraging time. Kiyosaki had taught me that passive income was a way to leverage other people’s time in order to free up more of my own. He was accurate in that assessment, but he left out a crucial detail:

When you don’t have enough passive income to pay your bills, the best way to leverage your time is to get a job.

Think about it. If you have no money, is it better to spend your time chasing passive income or to get a job? The answer is to get a job… but the advanced correct answer is to get a job and use your nights and weekends to build passive income.

Large in the Margin

The ultimate goal is to get enough passive income to cover your bills; but in the meantime, it’s important to view passive income as a marginal profit center. This means that passive income should be above and beyond your regular operating income and expenses.

Everyone has a minimum cost of living. No matter where you live in the U.S., it costs several thousand dollars a month to stay afloat. If you have no money, your only option (if you want to remain independent) is to get a job. Passive income would only help you if you had enough to cover your basic expenses.

Believe it or not, a job is the best way for a broke person to leverage their time. Think about it: what activity will yield me the greatest number of dollars for forty hours of work a week? If you have no money to invest, the answer is to get a job.

After the hours you need to spend to pay for your basic cost of living, the next highest leverage activity is to gather passive income. Any passive income you make from now on will be in your profit margin. When I was making passive income without a job, I had no profit margin. I was taking a net loss every month on my basic expenses.

Passive income is most beneficial when it’s in your profit margin. $1,500 a month in passive income won’t pay your bills, what if it was extra? That’s $18,000 a year that you could use to invest in real estate. Do you see what a tremendous difference it makes when you take it from primary to marginal income?

Your Credit

Another great reason to get a job when you’re broke is your credit. If you want to accumulate passive income-generating assets, you’re going to need the help of a lender. The wealthiest people I know are in real estate. In order to purchase real estate, a bank wants to know that you have steady income. If you are quote/unquote “self-employed” with no real income, the bank isn’t going to budge.

Check Your Ego

It was a bit of a reality check when I realized I wasn’t above working for the man. In fact, working for the man was the only way that I stood a chance to succeed.

Creative types are highly intelligent (which comes with a little bit of ego). It’s hard for a really smart person who thinks they know it all to realize that he can’t break the laws of nature. You might have the greatest idea in the world, but great ideas alone don’t pay your rent.

Build a Foundation

You can’t fight for financial independence until you have a foundation. Even though there are many ways to create passive income with little money, everyone needs a minimum amount of money to survive.

Furthermore, the best ways to create wealth (real estate) require money. If you don’t have any to start with, the best way to get some is to work. Work enough to pay your expenses and put away some to invest. That’s what my mentors taught me. It’s boring, but it’s proven.

Download Podcast

Is Genius Types changing format? How much money do bulk candy vending machines make? How do you generate traffic and money by blogging?

Music By:
Big Head Todd
PodShow PodSafe Music Network

Send questions for future podcasts to mail@geniustypes.com. Please include your City/State/Country.

My top 5 books of all time:

1. The Seven Habits of Highly Effective People -Steven R. Covey
2. Rich Dad Poor Dad -Robert Kiyosaki
3. Think and Grow Rich -Napoleon Hill
4. Drawing on the Right Side of The Brain -Betty Edwards
5. The 4-Hour Workweek -Timothy Ferris

Download Podcast

Links:
A Roadmap From Debt to Living Your Passion

Music By:
Big Head Todd
PodShow PodSafe Music Network

Send questions for future podcasts to mail@geniustypes.com. Please include your City/State/Country.

iPhone

I officially own the coolest toy ever invented… the iPhone. Ever since I got it two weeks ago, I can’t keep my hands off of it.

It’s great because there’s always something new to discover. Just today, Apple updated the software adding several new features including a way to find out where you are by triangulating your position through cell towers.

Customized Force-Field

The first thing I did was customize an iSee case to create a protective, yet functional shell. I’m pretty rough on my hardware, so I needed something that could accompany me just about anywhere.

The iSee case adds a tough, yet sleek layer of rubber and plastic to protect the iPhone. It’s curves are aesthetically pleasing and don’t add too much bulk. I actually prefer to use the phone with the case because the rubber adds a nice grip.

Another great feature of iSee is that the holster can clip onto either side of the phone, adding a strong layer of protection to the glass face if you choose to clip it face-down. When my $400 pride and joy is locked in this fashion, I don’t think twice about throwing it into a pocket full of loose change.

Power-Sander

The part I didn’t like about the iSee cover was the bulky belt clip attached to the holster. I solved this problem by breaking it off and flattening the plastic nub with a power-sander.

To get rid of the scuff marks caused by the high-grit sandpaper, I wiped it down with black shoe polish. I covered the former clip holder with one of the two signature Apple stickers that came in the iPhone box for the cherry on top.

Productivity Apps

I might have just found the replacement for my pre-historic day planner. iPhone is like a little computer in my pocket that helps facilitate my life.

Before now, I never really found the perfect balance between the digital and analog worlds when it came to organizers. Although it has flaws, the iPhone comes close. Plus, it’s upgradable, so it can continually be improved.

Productivity Web Apps

Another great thing about the iPhone is that people can develop web-based applications designed specifically for it. Some of the web apps I uncovered are fantastic, adding an amazing amount of functionality in the palm of my hand. Here are just a few:

1. Buxfer

Buxfer is like Quicken for the iPhone. It allows you to track your income and expenses as they happen, instead of having to wait until you get home to your computer, and most likely forgetting all about them.

Like Quicken, Buxfer can communicate with your bank accounts to make updates easy. Direct connect is available for those banks that offer it, and Buxfer can also read all the popular download formats.

The analysis features are still pretty basic compared to Quicken, but the service is free and the service is rapidly developing.

(Buxfer iPhone Version)

2. Toodledo

The iPhone calendar feature is a bit of disappointment; luckily, web app developers have filled in the void. Toodledo is a powerful to-do list program that fits nicely on the iPhone.

Tasks can be organized by category, priority, due date, tags, and context. Your to-do list is organized nicely by the criteria you provide in a “hot list” and even emailed to you daily if you choose.

(Toodledo iPhone Version)

3. EditGrid

EditGrid is my favorite web app at the moment. It’s an incredibly powerful spreadsheet program that works on the iPhone.

EditGrid is so powerful, it can do almost anything that can be done with Microsoft Excel; except it’s free and available anywhere to you online.

You can even share your spreadsheets with other people and update them remotely in real time.

I’m a spreadsheet freak, so finding this little gem has made my year. My only complaint is that it can be a little slow, especially when you’re not connected to a wireless network.

(EditGrid iPhone Version)

4. Live Scores

I can’t go anywhere without my sports scores, and Live Scores allows me to access them easily from anywhere. It displays the most current NFL, NCAA Football, NBA, NCAA Basketball, and NHL scores in an easy-to-read format that updates automatically.

Best of all, you can click on a specific game and see a graphic display of the game progress.

5. The Weather Channel

The Weather Channel has developed an impressive web app that goes far beyond the weather function that comes with the iPhone. It gives you access to multiple maps, forecasts, and weather data that will quench your thirst for data.

More to Come

Like I said, the great thing about the iPhone is that it’s upgradeable. That means that there will always be a great new web app and productivity booster to explore.

I’ll be sure to keep you updated.

Which organizational system do you prefer? One in which each individual employee or member is considered equal, no matter how long they’ve been a member or what they bring to the table; or a system in which each employee or member earns their way up the organizational hierarchy based on seniority, contribution to the group, or the respect of their peers?

Duality

I’ve been in enough organizations over the course of my life to see the two opposing forces of this duality in action. While the system in most companies and groups is a combination of these two philosophies, I’ve seen a wide range of cultures that fit all along a continuum between one extreme and the other.

For example, when I worked for Continental Airlines, just about the entire company was based on a seniority system. Each person’s pay, schedule, vacation, and even their social standing was based on their seniority number. A person who was hired just one day after another would forever hold rank over that person in almost every aspect of the job.

When I worked in the restaurant industry, I witnessed a wide variety of systems. One restaurant constantly rotated the sections so that everyone spent an equal amount of time in the good and bad sections. Another reserved the good sections for bartenders and waiters who earned the right to be there. The most senior employees had been there for years and held tightly to those high-paying sections.

The Continuum

On the extreme right of this continuum is a hazing system where senior members put junior members through physical and mental challenge; forcing them to prove how much they want to be a part of the organization or quit. On the extreme left is a system in which everyone is equal, no matter how long they’ve been a member or what they bring to the table.

Fraternities and sororities are notorious for the tough system that new members have to go through. Although hazing is illegal today, it used to be widespread and still exists in some form today. Most new members of a Greek organization have to do all the dirty work; including cleaning the house, working the events, and paying respect to the older members.

In the film industry, everyone starts out as a PA (production assistant), which is a generic term for an entry level position. PAs are paid the least and are asked to do the dirty work. Advancement has to do with proving yourself to someone who will hire you for a better position on the next project.

The Nebraska Example

I’m originally from Nebraska; and like most Nebraskans, I keep a close eye on the football program. There’s been a lot of upheaval this year with last season’s athletic director, Steve Peterson; and coach, Bill Callahan, getting fired. The situation has provided some interesting insight into the preferred organizational method of the state of Nebraska.

The Nebraska football program enjoyed great success with more than 40 years of winning seasons until an abrupt end in the Peterson/Callahan Era, when 2 of the last 4 years were losing seasons. This drastic change in culture brought on an enormous amount of speculation as to why this was happening.

Callahan was bringing in the best recruiting classes the state had ever seen with 4 and 5 star recruits everywhere. Nebraska was finally hitting the top 10 lists of the major recruiting watch sites; but this talent wasn’t translating into wins on the field.

Recruiting classes in the winning era were never nationally recognized, but somehow they came together to win a ton of games and 5 national championships. What was the reason for this apparent contradiction?

Many players in the winning era have come out this year to describe the culture under the previous leadership. As they explain it, it was a tough place where hard work and respect ruled. A new player was expected to earn his way up the social hierarchy with hard work and discipline.

The prevailing opinion in Nebraska is that the new leadership tried to “modernize” this system by bringing in better recruits and creating a “friendlier” environment for the athletes. The result was a culture of individuals with few leaders emerging from the group.

My Preference

If you ask me, I prefer a system that is based on both hierarchy and individualism. I feel more comfortable with systems that are heavier on the “earn your way” side. I understand that it can be tough in today’s world where people seem to change jobs every three years, but I like the idea of waiting your turn for the good of the whole.

One thing I do know is that a team is only as good as the synergy between its members. You can assemble a group of great talent, but it won’t matter if they don’t know how to work together. In my opinion, systems that require members to earn their way tend to promote a greater sense of loyalty to the group as a whole.

The Realization

A few years ago, I came to the realization that just about all of my close friends and everyone that I really “clicked” with in the professional world had played some form of team sports when they were a kid. They all weren’t necessarily stand-outs, but they had at least played on a team at one time or another.

It’s not like I ask people what sport they played before deciding if I can be friends with them or not; I’ve just identified an interesting tendency that’s pretty reliable.

Thanks to My Parents

I’ve also become much more appreciative that my parents pushed me to play sports when I was kid. I remember a few times that I resisted; but today, I can’t think of another activity that did so much to prepare me for life.

There’s just something about people who played team sports when they were young… To put it simply, they just “get” it. They’re competitive, yet able to work with other people. They know how to work hard, and they know how to play hard.

Psychologically, they’ve developed the ability from a young age to put aside their personal comfort for the good of the group. This is such a hard quality to find in people in today’s self-centered society. Most people want everything handed to them, but I’d rather work with someone who understands that they have to earn their status.

A Hollywood Example

Here’s a decent example: in Hollywood, everyone starts out as a PA. PA stands for “Production Assistant,” which is a generic term for an entry-level gopher job. The entertainment is a largely closed-off community and the only way in is through the bottom.

PAs get worked. They’re usually forced to put in 12-16 hour days for just about no money. Their existence is often reduced to degrading work such as fetching coffee or picking up dry-cleaning for the producers. It’s tough work, but PAs get exposure to the inner-workings of entertainment production and tend to be the first in line for higher-level jobs in the future.

How to Get Past PA

To make it past PA and get hired for a better job, you have to: 1. have the ability to suspend your ego and 2. have a ferocious work ethic; two qualities that are in short supply in today’s world.

Many people can’t lower themselves to get coffee for someone else. They feel entitled to a certain level of status. They are concerned with upholding their reputation.

Work ethic is a whole other story. The human body is capable of working many times harder than the brain realizes. Most people stop at the first sign of pain, but they could go much further if they had developed any toughness.

Pushing the Limits

Pushing the body past previous limits causes growth. Muscles of the body and mind rebuild stronger, with higher limits. Legally, your boss can’t force you to work until you’re in pain; but those that do are definitely going to stand out.

Playing team sports lays the foundation for humility and work ethic. These two qualities are tough to acquire at an older age. You can’t just put someone in a seminar and expect them to come out a productive team-player. It’s woven into the fabric of your being.

The Best Way I Know

The best way I know to instill this ethic is to play team sports. That’s not to say that it can’t be learned any other way. I’m sure growing up on a farm or being forced to run the family drugstore at 12 years old might do the trick. I just haven’t run across anyone who “gets it” without having played team sports as a kid.

Am I wrong?

Jim Cramer

I heard Jim Cramer say once on his TV show that when he worked at Goldman Sachs, he only hired people that had played team sports. Apparently, he felt so strongly about the connection between playing team sports and work ethic that he wouldn’t even take a chance on someone who didn’t.

I can see why he had that policy. Just because someone didn’t play team sports doesn’t mean that they don’t have the right work ethic; it just means the chances are a lot less. A numbers guy is going to go with the odds that work in his favor.

Subscribers: Don’t forget to visit the Genius Types home page from time to time for the latest Feature Articles, “Old-Old School Posts of the Day”, Twitter Updates, Comment Threads, and Most-Read Articles of All Time.

The grass is always greener…

You might not realize it when daydreaming at your 9-5 about starting a small business, but there are a few things to miss when you’re gone. To an entrepreneur, it’s blasphemous to suggest that anything good can come from working for The Man; but going solo isn’t always the end-all be-all.

This entrepreneur is not discouraging you from starting your own business. I believe that independence is the only way to go; but it’s important to be smart about it. Instead of burning all bridges and jumping into the water on your own; take advantage of all the things that both working for yourself and someone else has to offer.

My way is to build low-maintenance, residual income-producing businesses that give me freedom over my time. I then take short-term jobs for the education, not the money.

The Rat Race

It’s easy to get stuck on the treadmill of working for money. There always seems to be a new expense to match every pay increase. The end result is continually choosing a job for the money instead of what you can learn from it.

If you can just use some of your spare time or money to create a low-maintenance business, you will eventually empower yourself in the workplace. You see, when you’re workin’ for The Man because of money; he has control over you. There’s pressure to agree with the boss, mind your p’s and q’s, and generally let the man screw you over.

Working for The Man and not needing his money is a whole different story. You’re doing him a favor. You’re not afraid of being fired. Your confidence shines through and tends to get you what you want.

The Rat Race Part Two

If you don’t know what you’re getting into, working for yourself can also be a drag. Starting a business is an easy way to get into mounds of debt. It’s always more expensive, more difficult, and less productive that you think it’s going to be at first. That’s just the nature of entrepreneurship.

Going it alone can be a lonely, humbling experience. I know several entrepreneurs, including myself, who have caught themselves actually missing their old jobs.

What it Takes to Go Big Time

If you’re like me, you want to go big time. You won’t be satisfied working for yourself if it means barely getting by in a teeny tiny small business that consumes all your time. You want to own something that’s world-class, but still gives you time freedom.

Most small businesses are just that: small. Think of the corner store, or the guy with a little website, or the gal with the consulting business. What separates the little guy from a world-class business?

Resources

Financial resources, technical resources, contacts, reputation, world-class minds, etc. These assets are built up through the gravity and legacy of an organization, and can’t just be thrown together. Big companies have resources, small businesses do not.

For example, you can’t just go out and start an aerospace company. If you’re starting with nothing you will never be able to assemble the team of experts, government contracts, and enormous financial reserves you would need to compete with Boeing and Airbus.

That being said, it would not be inconceivable (if you started at a young age) to start by building financial freedom with a low-maintenance business. This would allow you to take a new job every two years in every possible department of both Boeing and Airbus.

The foundation you would have created with your low-maintenance business would give you the freedom to only take the most interesting jobs; and the confidence that you would need for promotions.

Twenty or so years of this process and you could have a sound-enough understanding and complete-enough rolodex to solicit the funds to create your own aerospace company.

Extreme, but possible! I don’t have the patience, nor the desire to take on a challenge that big; but if a person could do that, they could do anything.

Movies

My desire is to make movies. It’s not aerospace, but the millions of dollars it takes to make a movie puts up quite a barrier to entry.

Fifteen years ago, a guy like Robert Rodriguez could donate his body to science for a few thousand bucks, run around with a camera, and cut together a movie with blood, sweat, and tears; but it’s not as easy today.

Plus,

1. it’s a whole lot easier to do if you have no debt and a low-maintenance business to live on in the process,

and

2. why not spend a few years volunteering under Rodriguez, Tarantino, or Linklater to learn from the best? No sense reinventing the wheel. Working a low-paid film job will teach you how movies are made and put you in touch with experts who will make your life a lot easier when it’s your turn.

Benefits of Working for The Man

Working for The Man is a tough gig, but don’t let it blind you from the benefits. (When I say “The Man,” I’m using the term loosely to include working for anyone other than yourself.)

Expertise

As entrepreneurs, we often think that we do everything on our own. Creative people who are talented can be lured into the illusion that they don’t need to learn any more.

In reality, there’s no one who knows it all. Organizations have money to hire experts. There is so much to learn from people who have spent their whole lives refining their skills in an industry. This kind of knowledge can be invaluable.

Proven Processes

You might have a million dollar idea, but there are just certain processes that tend to work better than others in each industry.

Processes are a boring subject for creative people, but vital to success. Spending some time in the industry of your interest can teach you best practices that will make your entrepreneurial life much easier.

Contacts

No one does it all alone. A great leader knows a little about everything, but finds a group of people who are experts in their field.

Working in your industry puts you in touch with those people. You can’t put a price on the bonds you can make while working in the field. Interviewing candidates for you team is no replacement for working side by side with them.

Camaraderie

One of the first things that I missed about old jobs when going solo was being around people. You forget how much friendly relationships add to your life.

Whether it’s saying hi to the receptionist every morning or chit-chatting with a co-worker when you’re supposed to be working; people are the most meaningful aspect of any job.

Your Turn

It takes a little patience and humility to put in your time for someone else before going it on your own. It’s a mistake to make the leap too early, but it’s also a mistake to never take it at all.

Be smart with your strategy and reap the benefits of both working for yourself and The Man by building low-maintenance businesses and taking jobs for the education, not the money.

I thought I was getting tired of all things to do with The Secret until I read John Assaraf’s Having It All – Achieving Your Life’s Goals and Dreams.

I expected to read a remixed version of the movie, but instead I was left motivated and curious to learn more about Mr. Assaraf. The book is rich with inspirational wisdom and specific goal setting instruction. I found myself relating to his down-to-earth style and unique background.

Vision Board

I remember John’s part in the movie by the story he told about his son finding his “vision board.” Several years earlier, he had put together a board with clippings that represented his vision for the future.

He had forgotten about it by the time his son discovered it upon moving into his new house. As he was trying to explain what it was, he became very emotional when he realized that he was living in the exact house he had envisioned for himself several years earlier.

The Street Kid

Assaraf has a unique perspective because he was once a self-described “street kid”; having lived a life of petty crime before taking control of his destiny and achieving great success. Some of the lessons he learned on the street helped him later in life.

Balance

I especially liked the book’s balance between science, spirituality, and practicality. Most success books tend to focus on one of these areas. I respect an author who recognizes that we are multi-dimensional beings.

John spends time exploring scientific issues such as brain function and physics, spiritual issues such as the law of attraction and meditation, and practical issues such as goal setting.

Seven Natural Laws

I was particularly interested in Chapter 4 titled, “The Great Law and the Seven Natural Laws that Will Change Your Life Forever.” Here he breaks down the law of attraction, polarity, rhythm, relativity, cause and effect, gender and gestation, and the law of perpetual transmutation of energy.

My favorite was the section on The Law of Rhythm, in which he likens the universe to an ocean. The powerful waves and currents of life cannot be fought. Instead, it’s best to learn to go with the flow.

Goal Setting

The book contains at least two dozen pages of goal setting worksheets. This feature alone is worth the cover price.

Taking the time to fill out the worksheets will leave you with a greater sense of who you are, where you are, and where you are going.

Seven Power Factors

Another great section of the book discussed “The Seven Power Factors:” persistence, attitude, discipline, vision, purpose, focus, and action.

Even though these were familiar constructs, reading John’s explanation was quite motivating. Realizing that all of these factors are within a person’s control painted a roadmap for accomplishment.

A Great Read

I’ve been fortunate enough to have picked a string of really great books lately. Since I started Genius Types, I’ve had a lot of like-minded people offer winning suggestions. Having It All – Achieving Your Life’s Goals and Dreams by John Assaraf was no exception.

Cutting the Cord

A couple years ago, I decided to cut out Cable TV for a couple of reasons:

• First, we were trying to get out of debt and we decided that at over $1000 a year, cable was a luxury we could live without.
• Second, we often found ourselves mesmerized in front of the tube, hours after we sat down on the couch, unaware of where the time had gone or what we had even watched.

The fateful day was a bittersweet moment. We were entering an unknown realm without the security of an old friend. At the same time, we finally got to stick it to the company who constantly irritated us by leaving technical problems unfixed and keeping us on hold.

I sat on the couch and asked: “Now what do we do?”

1) XM Radio

The first thing we did to get re-connected was set up an XM Radio. Our local bank was offering free radios for opening up a checking account. Everyone knows I love bank accounts, so I said, “Hey, why not get another?”

I brag about XM Radio so much, I wish I got a commission for everyone I’ve turned on to it. I tried with their XMiRep program, but it didn’t work for squat and eventually shut down. Now, I spread the word for free.

The monthly fee is around $14, which is a small portion of what we were paying for cable. The way I see it, I actually spend more time listening to XM radio than I ever did watching TV.

I can do things while I listen to XM like drive around, work on the computer, or even go for a hike (with the portable); instead of being stuck on the couch with all of my auditory, visual, cerebral faculties being consumed.

I can still get the audio from all the major cable news channels, which is what I watched 90% of the time anyway when I had cable. Best of all, they’ve got live radio broadcasts of almost every sports match-up imaginable, most importantly (for me): Big IX Football.

2) Blockbuster Online

I am in the movie business, so we also saw this as a perfect opportunity to expand our knowledge of the film universe. Ever since NetFlix came out with a revolutionary way to rent movies, watching a gazillion films has never been easier.

We chose to go with Blockbuster’s online plan because we liked the idea of being able to get the movies through the mail or the store for even faster access. By now, you should know how this works. If you don’t: you basically pay a monthly fee of anywhere between $5 and $25 a month depending on how many DVDs you want to have at a time.

We get three at a time that come to us based on a massively long queue of movies that we set up online. When we’re done with one, we either send it back in the mail or take it into the store for another movie plus the next one on our queue.

My movie knowledge has grown exponentially over the last few years now that I watch five to ten movies a week. I especially like to dig around in the special features section to learn about how the movie was made. It’s like a mini film school.

I consider watching movies a much more valuable way to spend time than watching mindless TV. Although many TV shows are becoming mini-movies, film is still more of an artistic and cultural experience.

We’re also considering adding NetFlix in addition to our Blockbuster membership. We watch so many movies, sometimes three at a time isn’t enough.

I hear that the main advantage of NetFlix is their vast selection. It’s great for finding those obscure foreign, independent, or documentary films that you can’t find at Blockbuster. Plus, they just added the ability to watch movies over the internet.

3) Radio Time

I’m sort of an information junkie (as evidenced by this article). I especially like to stay up to date with several local radio shows that I listened to when I lived in Austin and Omaha; including the local sports talk shows and this really great real estate investing show that only airs in Austin.

When I moved to LA, I tried to find a reliable way to listen to these stations over the internet. I found a few webcast links, but the timing wasn’t always right.

A few months ago, I ran into this web service called Radio Time; which solved all my radio problems at once. There have been few free services that have added more enjoyment to my life than this one.

Radio Time catalogs just about every radio station in the US as well as their programming. They streamline and localize the webcasts so I can get them all in one place.

Better yet, there is a way to schedule and record your favorite shows for later playback! I have six or seven shows that I record on a daily basis so I never miss a beat. It’s absolutely incredible.

If you’re on a PC, Radio Time schedules and records everything for you; but since I’m on a Mac, I have to take a few extra steps.

1st, I downloaded a program called Audio Hijack, which I think has now mutated into Radio Shift. It was free when I downloaded it, but they might be charging 30 bucks or so now; which is completely worth it considering what this thing does.

2nd, I set up a couple of AppleScripts. The first moves the large audio files into the trash each night after they have been imported into iTunes. The second empties everything in the trash over 2 gigabytes.

Now, I’m in hog heaven (as my grandpa would say). I can listen to my radio shows on my iPod while I hike. I can save up a week’s worth of shows to keep me busy on a 24 hour road trip to Austin from LA. I never miss a show (especially my real estate show), and therefore keep on top of the information universe.

(Click here for my Real Estate show)

4) Network Shows Online

Just recently, the four major networks, ABC, CBS, NBC, and FOX started releasing full episodes on their websites.

Holy smokes, this is cool! I’m one of those guys who’s computer monitor is bigger than his TV, so this is great! Now there’s even less reason to have cable.

I was behind on “The Office” after watching season three on DVD and waiting for season four to pass on TV, but now I don’t have to wait!

Best of all, they offer these shows in full-screen high-definition video. That’s way better than I was getting on my clunky old TV. This is great.

5) Books

I love reading books, but like most people, it’s hard to find time with all the distractions in my life. I used to only read when I flew on planes, but since I left my airline job, that doesn’t happen as much anymore.

Without the constant hum of streaming TV in the background, it’s a lot easier to decide to pick up a book. It would be nice to just have enough willpower to shut off the TV in lieu of a book, but it’s a little more subtle than that. Mustering the will to shut off cable once is a lot easier to maintain that having to muster it every day.

Life is Good

I never realized that life could be so nice without cable TV. The only thing I miss is being able to watch college football games in the fall. Now, I have to venture out of the house on Saturdays; but other than that, I don’t even realize it’s gone.

I’ll probably go back to cable or satellite someday; when I’ve got money to burn, or when I have a huge house to hide it in. I’ll put it in the entertainment room, deep in the basement and far away from the living spaces.

I’m not one of these guys who thinks that all media is bad, or who wants to go live in the trees to get away from it all. I’m just a guy who was trying to save a few bucks and got creative in the process.

Subscribers: Don’t forget to visit the Genius Types home page from time to time for the latest Feature Articles, “Old-Old School Posts of the Day”, Twitter Updates, Comment Threads, and Most-Read Articles of All Time.

Genius Types income last month was $787.33.

Income

The compound growth rate (three-month rolling average) is currently at 21% per month.

With 55,415 page views, the CPM (income per 1000 page views) was $14.20, up 20% from the month before.

Income Breakdown

$331.58 from Text-Link Ads
$242.89 from Google AdSense
$150.00 from LinkWorth
$20.69 from Amazon Affiliate Commissions
$10.00 from tips
$2.17 from Revver.com

Text-Link Ads: $331.58

Text-link Ads took the top spot for the first time ever. Genius Types made $181.58 from text links sold and an additional $150 from affiliate referrals.

Google AdSense: $242.89

AdSense income took a drop for the first month this year, falling into the second spot. Traffic has been slower lately, and AdSense income is reflecting that.

LinkWorth: $150.00

No new LinkWorth advertisers were added last month, but the residual income on the 3 that I’ve had remained.

Amazon Affiliate Program: $20.69

Amazon income paid for another book to read this month.

Tips: $10.00

A little excitement in the tip jar last month. Ten bucks from some really generous readers!

Revver: $2.17

I keep Revver around just to giggle every time the income stats come in. Most of the money comes from this little video that we did of our cat Milo. We like to joke that that makes him employed, unlike our other cat who mooches off us all day.

Subscribers: Don’t forget to visit the Genius Types home page from time to time for the latest Feature Articles, “Old-Old School Posts of the Day”, Twitter Updates, Comment Threads, and Most-Read Articles of All Time.