Sunday, July 12, 2015

Liabilities and assets

Liabilities and assets


Here's the bottom line; liabilities destroy, assets produce. Liabilities benefit someone or something else. Assets benefit you. Liabilities and assets may be physical, conceptual or temporal.


Credit card debt is a physical/tangible example of a liability. If you owe credit card debt, the debt is a liability. However if someone is paying you at interest for the credit card debt that other persons debt is your asset. That person is essentially your slave.


A conceptual liability may be a lack of self-confidence in competing for a job opportunity. However, if you are a self-confident competitor, the person's lack of self-confidence serves as your asset.


A temporal example of liability is not using time wisely. Those who fail to prepare for changing seasons open themselves up to calamity. Example; those who fail to save money throughout the course of their life for retirement will find themselves barely able to survive when they are unable to work due to ill health or age. Time is therefore a made liability. Those who save and invest money during the working years may be able to retire and live life on their own terms and no longer have to work. In this example, time was made an asset.  This is because money invested overtime typically accrues interest.


Life is about managing liabilities and assets. Failure to do so can often lead to poverty. This is because the liabilities you create are someone else's assets.

Slavery with a different face

Slavery with a different face


We’re all slaves for the most part. And, slavery does not just apply to people of color, but to people who lack status, education, money and opportunity. The funny thing is you may not realize it.


Every possession comes with a price. That price begins when you trade your limited lifespan in exchange for a possession or money.


Sure, we need to earn our keep to have the necessities to survive. It is when we go beyond ‘needs’ into what are ‘wants’ that gets many of us into trouble.


You spend your limited time on earth trading your time for some kind a paycheck. While we all pretty much agree life on earth is precious, the people you work for look at your life from a different lens. You are an asset as long you produce/provide product and services that generate revenue. People make an agreement to purchase parts of your life to invest your life-force into their own dream. For you, however, it is called the JOB.


JOB means Just Over Broke. It means you want things bad enough you to trade portions of your life for possessions for an extremely small return. This is only the start.


You then take that little bit of return and then purchase a home, car and/or credit. Once you cross this line, you entered the zone whereby you transition from worker to slave.


Congratulations, you now have more than a job to survive, you now work for two, three or more people. These are the people who lend you money with interest so you can purchase your illusion of ownership over a car, home, vacation, etc. If you stop working for all these entities, you begin losing your possessions one by one. You are now caught in the rat-race of life.


Before you go on to think this only occurs in the business realm, you are mistaken. People in any hierarchical system be it business, government or society, rely on the masses to achieve their level of success in life or work. We also see this in nature amongst primates. This is noted by well-known Stanford neuroendocrinologist, Doctor Robert Sopolsky. You can see the pros and cons of being in a hierarchical society/organization in his video, “Stress, Portrait of a Killer” (link below).


Nobody starts at the top of a hierarchy, one ascends to such positions through merit, relationships and fortune. At the same time, you don’t always want to be on the lowest rung of your working life or social environment. Instead, you want to evolve, and evolving involves being competitive, as well being savvy, calm, resourceful and financially flexible.


Stress, Portrait of a Killer - Full Documentary (2008) - YouTube

The Most Important Letters of the Alphabet: E, S, B and I

The Most Important Letters of the Alphabet: E, S, B and I


If you're not familiar with the name of Robert Kiysosaki, you need to be. Kiysosaki is the author of the book, "Rich Dad, Poor Dad".


Kiysosaki exposes readers to ideas unconventional in nature to design a successful financial future. One of his most important ideas refers to the letters E, S, B and I. These letters help you self-reflect as well as assess if you are heading for a life of financial freedom, or debt. To Robert the “E” means Employee. The letter “S” is for small businesses or self-employed. “B” stands for Business owner. Finally, the letter “I” stands for Investor.


Employees toil away all their life working in building someone else's dreams. Employees give a portion of their life away in exchange for an amount of money; often just enough to get by. Employees do this by having a job. To the savvy “JOB” is an acronym that stands for “Just Over Broke”. You can only work a job for certain period of time until you're too old, get sick and/or die. If you're lucky, you get some kind of retirement, but retirement pensions are becoming scarcer in the 21st century. And, the more debt you take on with your job means it you are actually working for each person, business or material item.


Being “S” (self-employed) is not much different than being an employee working a job. If you stop working, your income flow stops. The business consumes your life.


You can still have a job as an Employee and live a good life… Provided you invest, the letter “I”, your money so that it works for you. There is risk in investing, but the risk is actually higher if you don't invest because you can be assured you will have only a limited amount of money for short duration of your life. Additionally, some investments work for you while you are asleep such as stocks, mutual funds or mechanisms that bring you residual income.


You want to be "B" for business person. Businessmen build scalable infrastructure that can exist without the businessman's constant attention. Businesses are built with money from investors and hiring employees who make the businessman’s dreams come true. To learn more about these concepts read, "Rich Dad, Poor Dad".

Emotions - Control Them or They Will Control You


Emotions – Control Them or They Will Control You


Emotions are part of being human. Emotions refer to strong feelings we experience such as happiness, a broken heart, anger, fear, desire etc. These strong feelings urge us into actions and behaviors that can enable, or disable us.  


When emotions are not managed, they impact our ability to make good judgments. We become slaves to emotion which can drive our lives in an unfocused manner. The lack of focus can lead us to addictions or other issues which further cause us to lose direction and focus in life.


If we want success, happiness and prosperity, we must learn how to recognize, channel and exercise emotions toward a desired goal. If not, we find ourselves enslaved to emotions.


According to some, emotions can be so powerful they can lead to physical and spiritual self-destruction. Those emotions are lust, greed, gluttony, laziness, anger, jealousy and pride. Each of these emotions impact judgment. Each unmanaged emotion leads to the downfall of great leaders and even empires.


If you want to build an empire you must master your emotions. This ability often distinguishes the rich from the poor; the wise from the ignorant; the winner and the failure.


So, what we feel shapes how we perceive, think and act in this world. Manage your emotions, channel them, or they will control you. We become no more than a mere reactionary animal.


Emotions can cause a person who has everything to lose everything… Their wealth, honor, trust, judgment, etc.


To help mitigate the sometimes overpowering control of emotions, we need to develop a stoic approach to life through critical self-reflection and contemplation.