Just for Today

Think and act cheerfully, and you will feel cheerful.

Create your happiness by follow daily program of cheerful and constructive thinking written by Sibyl F. Partridge.

  1. Just for today, I will be happy. This assumes that what Abraham Lincoln said is true, that “most folks are about as happy as they make up their minds to be.” Happiness is from within; it is not a matter of externals.
  2. Just for today, I will try to adjust myself to what is, and not try to adjust everything to my own desires. I will take my family, my business, and my luck as they come and fit myself to them.
  3. Just for today, I will take care of my body. I will exercise it, care for it, nourish it, not abuse or neglect it, so that it will a perfect machine for my bidding.
  4. Just for today, I will try to strengthen my mind. I will learn something useful. I will not be a mental loafer. I will read something that requires effort, thought and concentration.
  5. Just for today, I will exercise my soul in three ways; I will do somebody a good turn and not get found out. I will do at least two things I don’t want to do, as William James suggest, just for exercise.
  6. Just for today, I will be agreeable. I will look as well as I can, dress as becomingly as possible, talk low, act courteously, be liberal with praise, criticize not at all, not find fault with anything and not try to regulate nor improve anyone.
  7. Just for today, I will try to live this day only, not to tackle my whole life problem at once. I can do things for twelve hours that would appall me if I had to keep them up for a lifetime.
  8. Just for today, I will have a program and plan. I will write down what I expect to do every hour. I may not follow it exactly, but I will have it. I will eliminate two pests, hurry and indecisive.
  9. Just for today, I will have a quiet half-hour all by myself and relax. In this half-hour sometimes I will think of God, so as to get a little more perspective on life.
  10. Just for today, I will be unafraid, especially I will not be afraid to be happy, to enjoy what is beautiful, to love, to believe that those I love, love me.

Written by Sybil F. Partridge and printed in How To Stop Worrying, And Start Living by Dale Carnegie, 1951

10 Powerful Quotes ~ “The Psychology of Money”

“Rich is the current income. Wealth is income not spent. Wealth is hard because it requires self-control.” Morgan Housel

10 Powerful Quotes from “The Psychology of Money” by “Morgan Housel”

  1. “Spending money to show people how much money you have is the fastest way to have less money.”
  2. “Getting money is one thing. Keeping it is another.”
  3. “Be nicer and less flashy. No one is impressed with your possessions as much as you are.”
  4. “You might think you want a fancy car or a nice watch. But what you probably want is respect and admiration.”
  5. “Use money to gain control over your time.”
  6. “Saving is the gap between your ego and your income.”
  7. “Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you. Money relies more on psychology than finance.”
  8. “Rich is the current income. Wealth is income not spent. Wealth is hard because it requires self-control.”
  9. “Happiness is just results minus expectations.”
  10. “In fact, the most important part of every plan is planning on your plan not going according to plan.”

https://twitter.com/books_dq/status/1517815934056075264

A few bonus quotes:

“”Be more patient” in investing is the “sleep 8 hours” of health. It sounds too simple to take seriously but will probably make a bigger difference than anything else you do.”

“The formula for how to do well with money is simple. The behaviors you battle while implementing that formula are hard.”

“”Save more money and be more patient” is too simple for most people to take seriously, but it’s the best solution to most financial problems.”


References:

  1. https://www.collaborativefund.com/blog/rules-truths-beliefs/
  2. https://www.collaborativefund.com/blog/$/

Long-Term Investing

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” — Paul Samuelson

Everyone is a long-term investor up to the moment the stock market correction or crash occurs. “During bull markets, everyone believes that he is committed to stocks for the long term,” opines Billionaire investor William J. Bernstein. “Unfortunately, history also tells us that during bear markets, you can hardly give stocks away. Most investors are simply not capable of withstanding the vicissitudes of an all-stock investment strategy.

Yet, successful investing is a long game. It takes “time, patience and discipline”, says Warren Buffett. When you put money to work in markets it’s best to set it and forget it. Billionaire investor Warren Buffett quipped, “Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

Myopic Loss Aversion

Investors must manage the battle between fear and greed in their heads and stomachs to be successful in building wealth in the long term. Unfortunately, the fear of loss is generally a more powerful force that overwhelms many investors during periods of steep losses in stock prices.

Even though they don’t plan to liquidate the investment for decades, many investors panic during market corrections and bear markets; causing them to miss out on the often sharp recovery in prices that follows.

Being a long-term investor is more about inner attitude, about positive mindset and about behavior then the asset holding timeframe. Being a long-term investor requires a confidence based on clarity of purpose, rigorous research, and insightful analysis.

Long-term investors should invest in sustainable and growing companies – companies that are likely to be around and that are increasing their intrinsic value for the long term.

Behavior is an essential value of a long-term investor since behavior drives results. Thus, staying calm during a downturn is indeed a critical quality of any long-term investor,

For long-term investors, if you are clear about your investment principles, confident in your investment’s thesis, and genuinely believe in your investment strategy, a market downturn is the best time to invest in companies.

Overall, investing is all about focusing on your financial goals and ignoring the noise and mania of the markets and the financial media. That means buying and holding for the long term, regardless of any news that might move you to try and time the market. “There is only one way of investing, and that is long term,” says Vid Ponnapalli, a CFP and owner of Unique Financial Advisors and Tax Consultants in Holmdel, N.J.

Investor, Mohnish Pabrai, says it best, “You don’t make money when you buy stocks, and you don’t make money when you sell stocks. You make money by waiting.”

“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.” Warren Buffett


References:

  1. https://www.forbes.com/advisor/investing/tips-for-long-term-investing/
  2. https://www.institutionalinvestor.com/article/b18x07sykt3psy/What-Long-Term-Investor-Really-Means
  3. https://www.forbes.com/sites/forbes-shook/2022/05/10/an-investors-mind-6-ways-it-can-block-the-path-to-long-term-wealth/?sh=7ca749405f7c

The Great Benefits and Joy of Movement

“Anytime you engage in regular activity, you’re becoming this version of yourself that is more hopeful, more motivated, more energized, and better able to connect with others.” ~Kelly McGonigal, Ph.D.

Knowing only great benefits and happiness will result from movement, why are Americans so resistant to making movement a priority in their day?

While our brains and bodies reward us for moving and exertion, we also are built with an instinct to avoid overexertion, conserve energy, to rest, to avoid discomfort, and avoid failure and embarrassment, says Kelly McGonigal, Ph.D., a research psychologist, a lecturer at Stanford University, and an award-winning science writer and author of The Joy of Movement.

To retrain our bodies to encourage movement, we must first start with self-compassion and the practice of gratitude. We must remove the negative connotations from movement and recognize how the practice of movement can be really rewarding on its own.

“Exercise is health-enhancing and life-extending, yet many of us feel it’s a chore.” Kelly McGonigal

Research shows, according to Dr. McGonigal, there are three motivations that keep people moving:

  • Enjoyment – doing something you actually enjoy
  • The activity provides social community or sense of identity (i.e. “I’m a runner”), … positive social connection, and
  • It’s a personal challenge and meaningful to you as you’re making progress toward a goal.

If you can find an activity that gives you all three – you’re hooked for life! Exercise is health-enhancing and life-extending, yet many of us feel it’s a chore and burden.

Movement can be a source of joy and is intertwined with some of the most basic human joys, including self-expression, social connection, and mastery–and why it is a powerful antidote to the modern epidemics of depression, anxiety, and loneliness.

Basically, bliss can be found in any sustained physical activity, whether that’s hiking, swimming, cycling, dancing, or yoga. However, the runner’s high emerges only after a significant effort. It seems to be the brain’s way of rewarding you for working hard.

McGonigal tells the stories of people who have found fulfillment and belonging through running, walking, dancing, swimming, weightlifting, and more, with examples that span the globe.

Along the way, Dr. McGonigal paints a portrait of human nature that highlights our capacity for hope, cooperation, and self-transcendence.

Movement is integral to both our happiness and our humanity. By harnessing the power of movement, you can create happiness, meaning, and connection in your life.

The latest theory about the runner’s high claims that: Our ability to experience exercise-induced euphoria is linked to our earliest ancestors’ lives as hunters, scavengers, and foragers.

As biologist Dennis Bramble and paleoanthropologist Daniel Lieberman write, “Today, endurance running is primarily a form of exercise and recreation, but its roots may be as ancient as the origin of the human genus.”

The neurochemical state that makes running gratifying may have originally served as a reward to keep early humans hunting and gathering. What we call the runner’s high may even have encouraged our ancestors to cooperate and share the spoils of a hunt.

In our evolutionary past, humans may have survived in part because physical activity was pleasurable. It takes about six weeks of consistent moderate movement to see structural and neurochemical changes in your brain. And, increase intensity amplifies the benefits. The harder stuff seems to payoff. Exercise gets easier and more pleasurable sooner.

The key to unlocking the runner’s high is not the physical action of running itself, but can be achieved on continuous moderate intensity exercise. And in fact scientists have documented a similar increase in endocannabinoids from cycling, walking on a treadmill at an incline, and outdoor hiking.

If you want the high, you just have to put in the time and effort. 


References:

  1. https://getmadefor.com/blogs/perspective/the-joy-of-movement-how-looking-backwards-moves-us-forward
  2. https://www.amazon.com/Joy-Movement-exercise-happiness-connection/dp/0525534105/ref=nodl

Kelly McGonigal, Ph.D., is a research psychologist, a lecturer at Stanford University, and an award-winning science writer and author of The Joy of Movement.

Jackie Robinson #42

Jackie Robinson, the six-time Major League Baseball (MLB) All-Star and Hall of Famer, wasn’t just a pioneering athlete. His effort—and sacrifice—launched a cascade of human and civil rights advances.

Seventy-five years ago when Jackie Roosevelt Robinson started at first base for the Brooklyn Dodgers on April 15, 1947, he broke major league baseball’s six-decade-long color barrier, which not only made him an icon to those fighting for racial equality, but he was also a target for those who sought to fight against it. Jackie’s poise and strength—both on and off the field—are why he is honored today. He signaled to America that African Americans would no longer remain quiet and accept second-class citizenship status. 

“His courage and bravery played a major role in the history of integration, both on the field and throughout American society,” wrote Harvard historian Henry Louis Gates, “and no history of the civil rights movement would be complete without noting Robinson’s major role.” 

“Jackie Robinson gave all of us—not only black athletes, but every black person in this country—a sense of our own strength,” wrote MLB Hall of Famer Hank Aaron in his introduction to Robinson’s autobiography ‘I Never Had It Made’. 

Robinson’s strength was not only as a gifted athlete and fierce competitor who earned Rookie of the Year, MVP and six-time All-Star status. His strength manifested itself as dogged perseverance in the face of a tidal wave of racism—from daily taunts and threats to broad institutional inequities.

Robinson’s athletic brilliance and contributions to history earned him the Presidential Medal of Freedom and resulted in Major League Baseball retiring his number “42” in 1997—a first for any athlete, in any sport. 


Shortly before Robinson’s induction into MLB Hall of Fame ceremony, Dr. Martin Luther King, Jr. paid tribute to Robinson’s pioneering achievements this way: “Back in the days when integration wasn’t fashionable, he underwent the trauma and the humiliation and the loneliness that comes with being a pilgrim walking the lonesome byways toward the high road of Freedom. He was a sit-inner before sit-ins, a freedom rider before freedom rides.” 

U.S. Army

After receiving his military draft notice in March 1943, Army recruit Robinson reported to Fort Riley, Kansas for basic training. After racism initially barred him and other Black recruits from Officer Candidate School—despite their clear eligibility—they were eventually accepted.

But his time in the segregated U.S. Army would prove deeply frustrating. It ended not long after an incident near Fort Hood, Texas. In 1944, he was riding in a U.S. Army bus with the wife of a fellow Black officer. The driver, believing the light-skinned woman to be white, ordered Robinson to the back of the bus. Robinson, noting the fact that U.S. Army buses were not segregated, refused. The driver backed down, but called Military Police after the ride. Robinson was taken into custody and eventually court-martialed for disrespecting and disobeying a superior officer, disturbing the peace and drunkenness (although he neither drank nor smoked). He fought back and, despite false witness statements stacking the deck against him, he was eventually acquitted of all charges and received an honorable discharge in 1944, having reached the rank of second lieutenant.

Jackie Robinson Day

Beginning in 2007, players across the MLB started wearing Robinson’s No. 42 every April 15 in observance of Jackie Robinson Day, a tradition that continues.


References:

  1. https://www.history.com/news/jackie-robinson-life-baseball-pictures
  2. https://www.history.com/news/jackie-robinson-color-barrier-baseball

Don’t Fight the Fed

“We continue to believe that the S&P will see a correction of at least 20% over the next one to two years as the Fed is more aggressive than expected to deal with inflation running higher than expected and easy money begins to decrease.” Dan Niles

“The markets are in a volatile and dangerous place as of now,” writes Dan Niles, founder and portfolio manager for the Satori Fund.

In his article entitled “Market Thoughts Following Q1”, Niles contends that investors heed the warning: “Don’t Fight the Fed”.

He states that “Investors are forgetting that it [Don’t Fight the Fed] works on the way down as well as the way up. The Federal Reserve (The Fed) expanded their balance sheet by $4.8 trillion since the start of the pandemic while the US government added ~$5.5 trillion in stimulus. Combined stimulus of roughly half of US GDP of $20.5 trillion is the major driver of why the prices of stocks (along with homes, cars, boats, crypto, art, NFTs, etc) all went up over the past two years during a global pandemic. Now, the Fed dot plot shows 10 rate hikes in less than two years and they will be cutting trillions off the balance sheet probably starting on May 4th along with a 50 bps rate hike.”

“The #1 concern for investors in 2022 should continue to be that the Fed is so far behind the curve on dealing with inflation that they will have to be much more aggressive than in prior tightening cycles despite high inflation & geopolitical risk.” Dan Niles

“We [Satori Fund] continue to believe that the S&P will see a correction of at least 20% over the next one to two years as the Fed is more aggressive than expected to deal with inflation running higher than expected and easy money begins to decrease. Since World War II,

  1. Every time Inflation (CPI) is over 5% a recession has occurred
  2. Every time oil prices have doubled relative to the prior 2-year average ($54 in this case) a recession has occurred
  3. 10 of the 13 prior recessions have been preceded by a tightening cycle by the Fed
  4. 10 of the last 13 recessions have been preceded by the 10-year yield going below the 2-year yield”

For retail investors, Niles recommends “cash until inflation, Fed tightening and economic slowing run their course over the next one to two years. He writes that “most of the time, cash is a terrible investment especially in a high inflationary environment, but it is better to lose 6-7% to inflation this year than 20%+ in a stock market drop. With the Fed being this far behind the curve on inflation, we will find out how much froth is in valuations as the Fed starts tightening as growth continues to slow.”

Satori Fund likes companies that

  1. Benefit from economic reopening (not pandemic beneficiaries);
  2. Are profitable with good cash flow;
  3. Have growth but at a reasonable price;
  4. Benefit from higher-than-average inflation;
  5. Benefit from multi-year secular tailwinds. 

They foresee investing tailwinds in:

  • Datacenter, office enterprise, and 5G infrastructure.
  • Reopening plays such as airlines, cruise lines, travel, rideshare, and dating services as people adjust to covid becoming endemic.
  • Banks which should benefit from higher interest rates.
  • Alternative energy as geopolitics and fallout from the Russia-Ukraine War drives investment in the space.

References:

  1. https://www.danniles.com/articles

Bonds Getting Clobbered

“Bondholders are going to be in for some nasty surprises…because the losses are piling up.” CNBC’s Kelly Evans

A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time.

When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation. In return, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal, also known as face value or par value of the bond, when it “matures,” or comes due after a set period of time.

Just as individuals get a mortgage to buy a house, or a car loan to buy a vehicle, or use credit cards, corporations use debt to build factories, buy inventory, and finance acquisitions. Governments use debt to build infrastructure and to pay obligations when tax revenues fluctuate. Loans help to keep the economy running efficiently.

Whenever the size of the loan is too large for a bank to handle, companies and governments go to the bond market to finance their debt. The purpose of the bond market is to enable large amounts of money to be borrowed.

Bonds can provide a means of preserving capital and earning a predictable return for investors. Bond investments provide steady streams of income from interest payments prior to maturity.

The bond market (also known as the debt market or credit market) is a financial market where players can buy and sell bonds in the secondary market or issue fresh debt in the primary market. Like the stock market, the bond secondary market is made up of investors trading with other investors. The original company that received the money and is responsible for paying back the money, is not involved in the day-to-day trading. The market value of bonds can fluctuate daily due to changes in inflation, interest rates, and fickleness of investors.

The United States accounts for around 39% of total bond market value. According to the Securities Industry and Financial Markets Association (SIFMA), the bond market (total debt outstanding) was worth $119 trillion globally in 2021, and $46 trillion in the United States (SIFMA). The worldwide bond market is almost three times larger than the global stock market.

“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a 400 basball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” James Carville

The bond market is more important to the health of the U.S. and global economies than the stock market. And, you prefer for the bond market is not in the news, to be boring and functioning smoothly. Disruption in the bond market is what can get the economy in trouble.

As with any investment, bonds have risks which include:

  • Interest rate risk. Interest rate changes can affect a bond’s value. If bonds are sold before maturity, the bond may be worth more or less than the face value. Rising interest rates will make newly issued bonds more appealing to investors because the newer bonds will have a higher rate of interest than older ones. To sell an older bond with a lower interest rate, you might have to sell it at a discount.
  • Inflation risk. Inflation is a general upward movement in prices. Inflation reduces purchasing power, which is a risk for investors receiving a fixed rate of interest.

In aggregate, bond values are down significantly over the past three months–one of the worst quarters the securities have experienced since the 1980s, explains CNBC’s Kelly Evans. According to Natalliance, “government bonds are on pace for their worst year since 1949.”

Famed former Legg-Mason investor Bill Miller warned several years ago that “when people realize they can actually lose money in bonds, they panic”. Going into the inflationary 1970s, he said, “investors had done so well in bonds for so long they viewed them as essentially riskless, until it was too late.”
Investors have been warned for years about a bond crash that never panned out until recently. The chorus of financial pundits have said that the Federal Reserve’s massive quantitative easing and the federal government’s fiscal response to the financial crisis would ultimately cause inflation and crater bonds, it turns out they were right.

As a result, investors are piling out of bonds, which have seen outflows for ten straight weeks. Municipal bonds have seen historic outflows and are about to post their worst quarter since 1994, down more than 5%, according to Bloomberg. Investors have also been fleeing high-yield debt, especially as the Fed has turned increasingly hawkish this month.

You won’t find many financial professionals, other than fixed-income specialists, recommending big exposure to bonds right now. The outlook is just too uncertain.

“Bonds have nowhere to go but down since [interest] rates have nowhere to go but up.” Liz Young, SoFi Chief Investment Officer

Bonds are not expected to rally or perform better if growth slows, unless there is a meaningful dent in the outlook for inflation, and it would take a very deep and lengthy downturn to do so, as economists and financial pundits have warned.

Bonds have sold off and they haven’t served as downside protection within an investor’s diversified portfolio of stocks and bonds. Year-to-date, bonds have returned -8.7% YTD on 7-10-year Treasury bonds compared to a -6.0% YTD return in the S&P 500.

When bonds are in the red and cash is losing value because of inflation, investors turn to the stock market, at least tactically.

In this environment, “real assets” like real estate and commodities have done extremely well tend to do well in a tough investment environment for the long run (gold, metals, energy — along with globally diversified real estate).

As for stocks, Bill Smead, of Smead Capital Management, likes energy and housing market plays; noted investor Bill Miller likes energy, financials, housing stocks, travel-related names, and even some Chinese stocks (he’s also still bullish on mega-cap tech like Amazon and Meta).

The S&P 500 overall has been impressively resilient thus far, hanging in there with drop of less than 5% since the start of January–less than bonds, in other words. As bond losses deepen, don’t be surprised to see the “TINA” (There Is No Alternative) dynamic continue to bolster stocks.

However, there are several good reasons for purchasing bonds and including them in your portfolio:

  • Bonds are a generally safe investment, which is one of their advantages. Bond prices do not move nearly as much as stock prices.
  • Bonds provide a consistent income stream by paying you a defined sum of interest twice a year.
  • Bonds provide diversification to your portfolio, which is perhaps the most important benefit of investing in them. Stocks have outperformed bonds throughout time, but having a mix of both can lower your financial risk.

References:

  1. https://www.investor.gov/introduction-investing/investing-basics/investment-products/bonds-or-fixed-income-products/bonds
  2. https://www.themoneyfarm.org/investment/bonds/why-is-there-a-market-for-bonds/
  3. https://www.sofi.com/blog/liz-looks-stocks-vs-bonds/
  4. https://www.cnbc.com/2022/03/28/kelly-evans-its-getting-ugly-out-there-for-bonds.html
  5. https://archerbaycapital.com/bond-market-more-important-to-economy/

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining market equity values.

Summary: The 7 Habits of Highly Effective People

“Dependent people need others to get what they want. Independent people can get what they want through their own effort. Interdependent people combine their own efforts with the efforts of others to achieve their greatest success.” Stephen R. Covey

Stephen R. Covey’s seminal book, The 7 Habits of Highly Effective People, remains relevant because it focuses on timeless principles of fairness, integrity, honesty, and human dignity. It’s timeless principles are also extremely relevant for those desiring to develop a wealth mindset and to build wealth.

In his book, Covey argues that it’s your character that needs to be cultivated to achieve effectiveness and sustainable success, not your personality and behavior. Effectively, what we are says far more than what we say or do.

Character is closely related to moral and ethical values. It focuses on the traits that are unique to a person. Character is often regarded as the true self, meaning that it represents deep rooted attributes possessed by a person.

While, personality is often referred to as the mask identity of a person. It is reflected by the outer appearance and behavior that may or may not be true to inner character.

In a nutshell, the seven habits of highly effective people are:

  1. You take initiative. “Be proactive.”
  2. You focus on goals. “Begin with the end in mind.”
  3. You set priorities. “Put first things first.”
  4. You only win when others win. “Think win/win.”
  5. You communicate. “Seek first to understand, then to be understood.”
  6. You cooperate. “Synergize.”
  7. You reflect on and repair your deficiencies…you focus on your well-being. “Sharpen the saw.”

In short, you are what you habitually do, so adopt productive habits. You have the ability to improve your habits and your life.

Covey’s seven habits are composed of the primary principles of character upon which happiness and success are based. Rather than focusing on altering the outward manifestations of your behavior and attitudes, it aims to adapt your inner core, character, and motives.

Your character is a composite of your habits, which factors heavily in your life. Because habits are consistent, unconscious patterns, they constantly express your character and result in your effectiveness or ineffectiveness. Habits are deeply ingrained and you are constantly pulled in their direction. Breaking deeply imbedded, habitual tendencies such as procrastination, impatience, criticalness or selfishness that inhibit effectiveness involves more than simple willpower or a few minor changes.

“What we are communicates far more eloquently than anything we say or do.” Stephen R. Covey

A habit is the intersection of knowledge, skill, and desire:

  • Knowledge is the theoretical paradigm, the what to do and the why.
  • Skill is the how to do.
  • Desire is the motivation, the want to do.

Creating a habit requires work in all three dimensions–to listen, knowing how to listen and to want to listen. By working on knowledge, skills, and desire, we can break through to new levels of personal and interpersonal effectiveness as we break from old paradigms. 

Paradigms (another term for mindset) are powerful because they create the lens through which we see the world… “If you want small changes in your life, work on your attitude. But if you want big and primary changes, work on your paradigm.” – Dr. Stephen R. Covey

Habit 1: Be Proactive – Principle: I am free to choose and am responsible for my choices.

Your life doesn’t just “happen.” Whether you know it or not, it is carefully designed by you. The choices, after all, are yours. You choose happiness. You choose sadness. You choose decisiveness. You choose ambivalence. You choose success. You choose failure. You choose courage. You choose fear. Just remember that every moment, every situation, provides a new choice. And in doing so, it gives you a perfect opportunity to do things differently to produce more positive results.

Habit 1: Be Proactive is about taking responsibility for your life. You can’t keep blaming everything on your parents or grandparents. Proactive people recognize that they are “response-able.” They don’t blame genetics, circumstances, conditions, or conditioning for their behavior. They know they choose their behavior.

All external forces act as stimuli that we respond to. Between the stimulus and the response is your greatest power–you have the freedom to choose your response. One of the most important things you choose is what you say. Your language is a good indicator of how you see yourself. A proactive person uses proactive language–I can, I will, I prefer, etc.

Being proactive means more than taking initiative. It means we are responsible for our own lives. Our behavior is a function of our decisions, not our conditions. 

“It’s not what happens to us, but our response to what happens to us that hurts us.” Stephen R. Covey

Habit 2: Begin with the End in Mind – Principle: Mental creation precedes physical creation.

Sometimes people find themselves achieving victories that are empty–successes that have come at the expense of things that were far more valuable to them. If your ladder is not leaning against the right wall, every step you take gets you to the wrong place faster.

Habit 2 is based on imagination–the ability to envision in your mind what you cannot at present see with your eyes. It is based on the principle that all things are created twice. There is a mental (first) creation, and a physical (second) creation. The physical creation follows the mental, just as a building follows a blueprint.

If you don’t make a conscious effort to visualize who you are and what you want in life, then you empower other people and circumstances to shape you and your life by default. It’s about connecting again with your own uniqueness and then defining the personal, moral, and ethical guidelines within which you can most happily express and fulfill yourself.

Begin with the End in Mind means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen.

Covey states that the most effective way to begin with the end in mind is to create a personal mission statement. It should focus on the following:

  • What you want to be (character)
  • What you want to do (contributions and achievements)
  • The values upon which both of these things are based

In time, your mission statement will become your personal constitution. It becomes the basis from which you make every decision in your life. By making principles the center of your life, you create a solid foundation from which to flourish.

To begin with the end in mind means to start with a clear understanding of your destination. You need to know where you are going in order to better understand where you are now so that the steps you take are always in the right direction. 

Habit 3: Put First Things First – Principle: Effectiveness requires the integrity to act on your priorities.

Habit one encourages you to realize you are in charge of your own life, and habit two is based on the ability to visualize and to identify your key values. Habit 3 is the practical fulfillment of Habits 1 and 2. Habit 1 says, “You are the creator. You are in charge.” Habit 2 is the first mental creation, based on imagination, the ability to envision what you can become. Habit 3 is the second creation, the physical creation. It focuses on the practice of effective self-management. By asking yourself the above questions, you become aware that you have the power to significantly change your life in the present.

To live a more balanced existence, you have to recognize that saying no to everything that comes along is okay. There’s no need to overextend yourself. All it takes is realizing that it’s all right to say no when necessary and then focus on your highest priorities.

Habit three concerns itself with putting the most important things first. This means cultivating the ability to say no to things that don’t match your guiding principles. To manage your time effectively, your behaviors and actions must adhere to the following habit 5 concepts:

  1. They must be principle-centered.
  2. They must be conscience-directed, meaning that they give you the opportunity to organize your life in accordance with your core values.
  3. They define your key mission, which includes your values and long-term goals.
  4. They give balance to your life.
  5. They are organized weekly, with daily adaptations as needed.

The focus is on improving relationships and results, not on maximizing your time.

Habit 4: Think Win-Win – Principle: Effective, long-term relationships require mutual respect and mutual benefit.

Think Win-Win is a character-based code for human interaction and collaboration.

Win-win sees life as a cooperative arena, not a competitive one. Win-win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. Win-win means agreements or solutions are mutually beneficial and satisfying.

To adopt a win/win mindset, you must cultivate the habit of interpersonal leadership. This involves exercising each of the following traits when interacting with others:

  • Self-awareness
  • Imagination
  • Conscience
  • Independent will

To be an effective win/win leader, Covey argues that you must embrace five independent dimensions:

  1. Character: This is the foundation upon which a win/win mentality is created, and it means acting with integrity, maturity, and an “abundance mentality” (i.e., there is plenty of everything for everyone, one person’s success doesn’t threaten your success).
  2. Relationships: Trust is essential to achieving win/win agreements. You must nourish your relationships to maintain a high level of trust.
  3. Agreements: This means that the parties involved must agree on the desired results, guidelines, resources, accountability, and the consequences.
  4. Win/win performance agreements and supportive systems: Creating a standardized, agreed-upon set of desired results to measure performance within a system that can support a win/win mindset.
  5. Processes: All processes must allow for win/win solutions to arise.

Win/Win is not a technique; it’s a total philosophy. This frame of mind and heart constantly seeks mutual benefit in all human interactions. It’s not your way or my way; it’s a better way, a higher way.

Habit 5: Seek First to Understand, Then to Be Understood – Principle: To communicate effectively, we must first understand each other.

Communication is the most important skill in life. You spend years learning how to read and write, and years learning how to speak. But what about listening?

If you’re like most people, you probably seek first to be understood; you want to get your point across. And in doing so, you may ignore the other person completely, pretend that you’re listening, selectively hear only certain parts of the conversation or attentively focus on only the words being said, but miss the meaning entirely.

Seek first to understand involves a deep shift in paradigm. We typically seek first to be understood. Instead, most people listen to the reply. They’re either speaking or preparing to speak. 

Habit 6: Synergize – Principle: The whole is greater than the sum of its parts.

To put it simply, synergy means “two heads are better than one.” Synergize is the habit of creative cooperation. It is teamwork, open-mindedness, and the adventure of finding new solutions to old problems.

Synergy is the highest activity in all life – the true test and manifestation of all the other habits combined. Synergy catalyzes, unifies, and unleashes the greatest powers within people. Simply defined, synergy means that the whole is greater than the sum of its parts. 

Habit 7: Sharpen the Saw – Principle: To maintain and increase effectiveness, we must renew ourselves in body, heart, mind, and spirit.

Sharpen the Saw means preserving and enhancing the greatest asset you have–you. It means having a balanced program for self-renewal in the four areas of your life:

  • Physical: exercise, nutrition and sleep
  • Social/Emotional: meaningful human connections and relationships
  • Mental: learning, visualizing, acquiring new knowledge, growing
  • Spiritual: mindfulness, art, meditation, music, time in nature, prayer and service

As you renew yourself in each of the four areas, you create growth and change in your life. Sharpen the Saw keeps you fresh so you can continue to practice the other six habits. You increase your capacity to produce and handle the challenges around you. Without this renewal, the body becomes weak, the mind mechanical, the emotions raw, the spirit insensitive, and the person selfish.

Feeling good doesn’t just happen. Living a life in balance means taking the necessary time to renew yourself. Remember that every day provides a new opportunity for renewal–a new opportunity to recharge yourself instead of hitting the wall. All it takes is the desire, knowledge, and skill.

Habit 7 makes all of the other Habits possible. When you sharpen the saw, you preserve and enhance the greatest asset you have – yourself. 

In conclusion, real change comes not from the outside in, but from the inside out, explains Covey. And the most fundamental way of changing yourself is through a paradigm shift.

There are so many people out there who are excelling in their work lives but failing miserably in their personal lives. They’re a success story on the outside but their lives are falling apart. Their problems are deep and painful. A quick fix doesn’t work in this case. To change such situations, you have to improve yourself and your mindset.

A paradigm is a way you see and perceive the world. Like a map of a territory, a paradigm is a model of something else. Two people can see the same thing and interpret it differently, and they’ll both be correct. It’s not logical but psychological.

Your paradigms affect the way you interact with people.

“Of course, things can hurt us physically or economically and can cause sorrow. But our character, our basic identity, does not have to be hurt at all.” Stephen R. Covey


References:

  1. https://resources.franklincovey.com/mkt-7hv1/the-7-habits-of-highly-effective-people
  2. https://www.oberlo.com/blog/7-habits-of-highly-effective-people-by-stephen-covey-summary
  3. https://www.stratechi.com/7-habits/
  4. https://www.nps.gov/common/uploads/teachers/lessonplans/7%20Habits-of-Highly-Effective-People.pdf
  5. https://earlgreyninja.com/the-7-habits-of-highly-effective-people-stephen-r-covey/

Prioritize Your Happiness

Prioritize. Spend on the things and on the activities that make you the happiest.

Most people spend their lives sacrificing their own happiness either because of career pursuits or chasing riches. You fail to realize how important it is to value your own happiness and taking care of yourself.

As a result, you unconsciously stumble into a busy and fast paced lifestyle. And, there never seems to be enough time to do the important things you really want, like exercising, hanging out with friends, or attending a wealth seminar. Yet, with so much already on your plate, how can you fit it all in?

In Work Less, Live More (Nolo Press, 2007), Bob Clyatt argues that you can make time for fun stuff. The secret, he says, is prioritizing:

“Imagine you have an empty jar, a collection of a few large rocks, and several handfuls of gravel. Your task is to put all the large and small rocks into the jar. One approach would be to pile all the gravel first, but doing so would leave room for only one or two of the large rocks; you wouldn’t get everything to fit. Switch your approach and put the large rocks in first, and you’ll find that the gravel will all fit nicely around the empty space. If a bit of gravel doesn’t fit at the end, you’ve not lost much.

Let too many little things take priority, and there never seems to be time for the big things. Consider the Big Rocks to be really important things you want to accomplish in life, the things that define you. Get the big things in first, work on the right projects and priorities, and let the little stuff fit in around the edges. Let your Big Rocks be non-negotiable priorities in your weekly calendar—and learn to say “no” when other things begin to intrude. Then fit those other things in where you can.

So if exercising makes you happy, schedule your exercise—and then fit the rest of your life around them. Don’t ignore your obligations, but make the stuff you have to do fit around the stuff you want to do, not the other way around.”

What you buy matters too in making you happy. You are happier when you use your money to buy experiences rather than things and when you use your money to help others. So the next time you are feeling down, buy a trip to the spa or donate to a charity.

Thus, your happiness lies in things that you love to so. Therefore, it is important to find time to do all the activities that bring joy to your life. You must prioritize taking time out of your day to spend time on your favorite activities and hobbies that makes you feel refreshed and content.

Bottomline, each day is a new opportunity for you to choose to live a life filled with purpose and happiness. You must consciously and intentionally prioritize to be happy on a daily basis. Otherwise, it’s easy to get stuck in a rut for months or even years.

“Putting yourself first is not selfish. Quite the opposite. You must put your happiness and health first before you can be of use to anyone else.” ~Simon Sinek


References:

  1. https://www.oreilly.com/library/view/your-money-the/9780596809430/ch01.html
  2. https://www.beingguru.com/2019/04/prioritize-your-happiness/

Don’t get financial advice from NFL stars

When it comes to financial investing, investors should not rely on advice from professional athletes who promote crypto-currencies or currency trading platforms.

In November 2021, cryptocurrency market prices were skyrocketing to new heights and Bitcoin was one of the red-hot. Concurrently, two well-known NFL football players, Green Bay Packers quarterback Aaron Rodgers and Los Angeles Rams wideout Odell Beckham Jr., stated that they would accept a portion of their 2021 salaries in the cryptocurrency during a month when Bitcoin hit an all-time high of $68,906 per coin. 

As often happens with volatile currencies and investments, Bitcoin market price has crashed from that November peak to a nearly 52 percent dive, reaching a January bottom of $33,076.

If ever there were a case of buyer beware with the products athletes endorse, this would be it. Most especially when that “product” is actually a volatile form of currency that can cost investors massive sums of money.

The sad fact is that the vast majority of people don’t truly understand how cryptocurrency works. And that group also includes most professional athletes who have advisers paid to guide their investments, as well as agents who find commercial opportunities to endorse products like Bitcoin.

It’s been assumed that athlete such as Odell Beckham Jr. has take a substantial financial hit in pay with Bitcoin.

It was reported by Darren Rovell that Beckham’s entire salary is now worth only $413,000 USD equivalent in Bitcoin as opposed to the $750,000 USD guaranteed by the LA Rams football team, excluding taxes. Once federal and state taxes are factored in, Beckham is projected to make around $35,000.


References:

  1. https://www.yahoo.com/lifestyle/odell-beckham-jr-suffers-major-085440249.html
  2. https://www.msn.com/en-us/sports/nfl/bitcoin-s-recent-crash-is-a-reminder-don-t-get-your-financial-advice-from-nfl-stars/ar-AAT8kiG