Thursday, May 19th, 2011 — —— — —— — —— — —— — —— — —— — — Spring Edition #169

Russell R. Shippee
Author, Speaker, Life Coach


Cameron is now asking 'WHY' and, when I answer him, he follows up with 'WHY' and then 'WHY' again. It's not easy to answer him all the time.

Me, I wonder WHY people do not DOUBLE THEIR MONEY. You'll enjoy the article below.

We had a most interesting Master Mind meeting this week. Each meeting we spend time focusing on a problem one of the members has. This week it was cash flow. The business is running out of cash, the expenses are more than the current income, and the issue is how to continue. The owner is a wonderful young college graduate in a new business with experienced advisers. In hindsight, there could have been better planning of cash needs compared to revenue. The real issue is what to do NOW. Master Mind Groups work to find the best answer based on the current situation. It's not about blame, it's about solutions.

We all need a Master Mind Group, be it for our business, for our parenting, for our retirement planning, or for our golf game. We can all learn from others and we can also teach. A Master Mind groups benefits all involved. Yes, you too. Yes, you can add value for others. Yes, others can add value for you. Don't believe me? Try one, you'll see. You have nothing to lose and everything to gain.

TODAY we have a special offer. Have four friends sign up for the newsletter, and you will ALL receive the workbook, Living My Life on Purpose, as a reward AND be given a tele workshop to do the exercises. Have your friends hit the subscribe button or, with their permission, sign them up. Hit reply to this email and tell me the four, and you'll be included also.

Life Lessons will be a tele seminar to attend. Too often we forget the important life lessons. Take a moment, take a breath, and reflect with us on the important lessons in life. Too often we get caught up in what does not matter and let go of what does matter. Is that you?

Life Lessons tele seminar. Wonder what the life lessons are? Sign up to find out. Sign Up! You can also sign up for Dad, I Sold The Business, which is for family business owners wondering about change. If you own a business, especially a family business, sign up! Click here to sign up.


P. S. Would you like to DOUBLE YOUR MONEY?


Talent is God given, be humble. Fame is man-given, be thankful. Conceit is self given, be careful.


It isn't what you have, or who you are, or where you are, or what you are doing that makes you happy or unhappy. It is what you think about.

Dale Carnegie

Never get married in college; it's hard to get a start if a prospective employer finds you've already made one mistake.

Elbert Hubbard

Never believe anything in politics until it has been officially denied.

Otto von Bismarck

OK, I do ask WHY. WHY not? Kids learn by asking. Be glad we ask WHY as that is how we learn. Kids dig deep. Sometimes Pop does not have an answer.

Asking WHY makes the other person think. So, it'll do the same if you ask yourself the question. WHY is good for everyone.
I value Pop's answers. Well, most of them, anyway. He values his time with me. He won't say it, but he does.
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Spotlight Article


To double your money, fold it and put it back in your pocket.

As the old saying goes, ‘a penny saved is a penny earned.’

Managing money is not hard, but it does take focus and attention. Here are the key items:

Manage your investments

Sure, you can hire a manager but you still have to research and choose the right managers for you. Then you still have to watch your money and the effectiveness of the chosen person. You have to change when it is necessary and you have to pay attention to the possibilities.

Manage your spending

I like to use the 5% rule. If retired, or planning for retirement, you can only spend 5% of your assets each year. By using a 5% spend rate you should be fine. Some years you will earn more than 10%, some years nothing, and some years you will lose money.

I also tell people to use the 5% spend rate to determine how much principal they have to have to retire. For example, if you need $100,000 a year income then at 5% you’ll need $2,000,000 in the bank. Then, I tell them to double the amount. That covers inflation and a severe stock market adjustment.

Test your purchases. Is the item worth the expense? Is it in your budget that you have set up? Ideally, you have a budget and that budget includes money being put away for retirement. If the item is more than your budget, then you need to decide if it is worth going without something else in your budget. They are choices.

Is the purchase worth the time it would take to earn the money, after taxes, to purchase it? What if it took one month? Would you invest one month of your life working to have the item? If yes, get it. If no, then go without or look for an alternative that is acceptable in price and value, that you would be willing to work for.

Living on a budget is important for all of us. It helps us make decisions and help us to value things.

Without a budget, or plan, it’s easy to give into the emotion of the moment and make the purchase. It is only later that we realize we did not need it, or did not need such a big one, or whatever it is.

Life is to be lived and enjoyed. Doing so takes money. Earning money is one part, investing money is another, and spending another. It’s a balance.

Do you need a big house? Is it worth the taxes, the expense, and the upkeep? Are you a slave to the house? Are there other things you’d rather be doing with your time and money?

What we do or buy does not have to be forever. We can have a great experience, but we can also move on to new ones.

I used to work hard, buy new cars all the time, and just spend as I was earning. When I realized it was not worth it, I changed. In changing I saw vividly how much I was wasting on stuff that did not give value. Now, I have a 10 year old sports car that still does not have 50,000 miles. It’s as good as a new one and, in many respects, feels as good or better. Better in that the car is fine, and the savings make me feel good.

Now I am aware of people with far more money than I who watch what they spend more closely than I. An older gentleman took some people out on his boat for lunch and was going to tie up at a dock. They wanted $10. He told them it was too much and went out, set his anchor at age 70, and rowed in to the free dock to take his guests for lunch. Well, that might have been a little much, but it proved a point to me.

How much will you save keeping a car longer? How much will you save by buying a Subaru? In the area I live, the joke is that if you want to find the truly wealthy people look for those that drive a Subaru. Maybe that is one of the reasons they have all the money.

It’s not about being cheap. It’s not about going without. It’s about buying what has true value to you, what is worth your time and effort. Is it more important to have money to educate your grandchildren, or to take a long vacation, or to own a new car? Do you get a $5,000,000 ski condo or one for $100,000 or less on the same mountain?

The more things you have, the more it costs to keep them, as well as the income potential from the lost cost capital. Expensive cars cost far more to maintain and repair than some other vehicles that are just as good. Look and you will be surprised. I was.

Notice your friends who always take great vacations. I have found they are the ones that search the deals and schedule based on great deals. They know how to travel and they know value.

I was skiing in Telluride. The lift tickets were $98 a day. We ran into a club. They paid $48 a day for their tickets and discounted lodgings. A retired couple joined for the savings. They also packed their lunch to eat on the mountain. Well, the mountain food is about $15 a person and no better than a packed lunch. Who is the smartest? They get to travel more and do more, spending far less.

How big a boat do you need? The bigger the boat, the more it costs, the more it costs to dock and maintain. At some point you even need a captain and crew. Look at the cost vs the usage. You’ll find that, unless you love it and use it often, it’s cheaper to rent. You will also find that a smaller boat will fit your needs 99% of the time.

As we get older our values change. We no longer need to impress anyone, and we focus more on what has value to us. Age does bring wisdom.

Double your money and don’t waste it. You’ll have the extra you need for a rainy day, to help your children, to help your grandchildren, to give to the charities of your choice, and to enjoy your sunset years.

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