June 1st – Impossible
If that's a word in your vocabulary, delete it.
Its dangerous. Its a self-fulfilling prophesy. The word “impossible” actually creates impossibilities.
We are always told that things are impossible. Quit your day job? You can't do that until you're 65!
Nobody can do that! That’ll never work! You’ll never succeed! We’ve heard it all. Then some of us went and did it anyway.
Modern technology was once impossible. Landing a man on the moon was once impossible. Carrying an entire universe in your pocket was once impossible.
Until someone dreamed up a smart phone, and made it.
You've probably heard the saying, “Anything is possible, as long as you believe.” and thought maybe that's something you tell kids. But here's the psychology. If you don't believe something is possible, you can't achieve it, fight for it, create it, complete it.
The first step to making it possible is the simple choice to believe. Believe in yourself, believe in your future.
In Think and Grow Rich, Napoleon Hill says,
“You are the master of your own destiny. You can influence, direct and control your own environment. You can make your life what you want it to be.”
And guess what? No one's going to do it for you.
Here are eight steps to move forward in attaining the impossible:
- Trust Yourself
- Commit by writing it down
- Visualize it happening – over and over again
- Be willing to sacrifice for it
- Be willing to fail and try again
- Remember why you started. Keep your eyes on the prize and keep pushing.
You're gonna make it happen
I believe it. Do you?
June 2nd – Drop-Shipping
Have you ever heard of Drop-Shipping? I know quite a few digital nomads who earn an income from online drop shipping stores.
I connected with this community several years ago when I created my own drop shipping store – a small-space furniture site called HotModdie. It was just getting it off the ground when I got a job in a new state, and had to deal with moving all of our things.This is back when I was a single Mom, and just didn't have the time to pour into the site.
I made some sales, and I definitely see how it could have been profitable if I had committed another 6 months or so.
Drop shipping is a business model where you, the store owner, doesn't buy or store any inventory. You list the items that fall into your store's niche in your storefront – most drop shippers use Shopify – and then when a customer orders from you, you send the order to the supplier or manufacturer, and they send the product directly to the customer.
Its a super cool business model that major sites have been using for years. Wayfair, Walmart.com, Overstock, and many others. There are directories you can access that will give you a list of suppliers in different niches that you can open accounts with – who do drop shipping.
I heard about this business model when I first started saving money for financial freedom.
There's a popular course called Drop-ship Lifestyle that many successful drop shippers have taken – it teaches every step that you take to set up your drop ship store, starting from how to choose a profitable niche. It was too expensive for me back in the day, so I had to figure it all out on my own.
And the best part? It has a built supplier list, so you don't have to find them yourself.
If you're interested in this business model, I know many people out there are making money with it. Some people, like Johnny FD, have even sold their profitable stores for thousands of dollars, so that's another option if you don't want to run a drop shipping business indefinitely.
Either way, this business model is definitely side-hustle worthy.
June 3rd – What IS Financial Freedom?
What is Financial Freedom? I talk about this term alot so I want to be clear on I mean when I say it.
Believe it or not, Financial Freedom has nothing to do with your income level. I've seen families making $50,000 a year who were more financially free than some executives I've worked with. There are people out there who make a million dollars a year in income and still live paycheck to paycheck.
Financial Freedom means you have the ability to walk off your job tomorrow and say goodbye to your day job, and still be able to cover your living expenses and meet your financial obligations.
How do you do that without a day job income? Through savings, and income streams or businesses that you've purchased or built, Through investment dividends and interest income.
One way financial freedom can be achieved quicker is by lowering your cost of living. How?
Adopting a minimalism mindset is one way.
Some are taking it to the extreme by moving into RVs, Sailboats, Tiny Houses, and vastly lowering the amount of money they are financially obligated to spend every month. No more house payment, no car payment. Commute costs. Utility expenses.
This isn't a new concept. I have a book called The New Way of Life written by Pat and John Samson back in the 70s that encouraged countless numbers of readers to throw off the shackles of working life, build a boat, and sail off to the South Pacific.
They were way ahead of the curve. I learned about this way of life from Nick O'Kelly and Patrick Schulte in their book, Live on the Margin, and I couldn't shake the idea once I learned of it.
Financial Freedom isn't for everyone. I was sitting in an admin meeting after a coworker had returned from time off, and she told me how relieved she was to have her daughter back in school and to be able to come to work every day. “I love my routine,” she told me.
For those people, a day job is just what they want and need. But for the rest of us, please know that there is a path forward to quit your day job years, or even decades before you thought you could.
It may require some sacrifices, and some compromises on living expenses.
Decide what's most important to you, and shape your financial goals around that.
June 4th – Boglehead Formula
For those of you out there who may be opening retail brokerage accounts outside of your 401k and making investment choices for the first time, I want to introduce you to a popular way to invest. Its called the Boglehead formula.
The Boglehead formula gets its name from John Bogle, the founder of The Vanguard Group, and who is credited with creating the first index fund. He's also the author of The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns.
Just to cover the basics, an index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500, the Nasdaq, or the Dow.
Some examples of index funds are the SPY, which follows the S&P 500, the QQQ, which follows the NASDAQ 100 index, and the IWM, which tracks with the Russell 2000 small cap index.
The Bogleheads investment philosophy promotes low-cost, do-it-yourself investing using nearly-free, or free, index funds and a simple asset allocation formula called the Three Funds formula, 34% in US stocks, 33% in international stocks and 33% in US bonds.
A domestic index fund basically trends with the stock market each year. If the market rises, your portfolio value rises. If the market declines, your portfolio value declines.
History teaches us that over time, the stock market has always gone up. Not every year, but given enough years, it has given an average annual return of at least 6%.
The thing is, you have to be willing to leave your money in there for long enough to make it work out.
How do you buy index funds? You can use a TD Ameritrade account, or nearly any full-service brokerage account to buy them.
Always do research and understand what you're investing your money in. As a disclaimer, do not consider this investment advice. Its meant to provide education so that listeners can learn about investment options that are available to them.
If you want to learn more about the Boglehead formula, visit their forum at Bogleheads.org.
June 5th – Locke's Goal Theory
I studied Locke's goal setting theory when I completed my master's degree thesis on intrinisic motivation in the workplace, and some principles of the theory can also be applied outside the workplace to personal achievements.
Locke's goal-setting theory, which has been tested and supported by many studies, has been known to deliver positive changes in the lives of individuals worldwide.
Locke’s primary revelation was around the power of setting specific and measurable goals, rather than keeping outcomes general.
Here are some things we can learn from Locke:
- Goals that are too easy or too difficult are unlikely to be accomplished. The highest level of motivation is achieved when goals are both challenging and realistic.
- Content is the outcome of the task, and Intensity is the resource required to achieve it – which can be both mental and physical. Locke highlighted the importance of considering the whole journey of completing a goal and not just the outcome. I think this is key when we're talking about saving money towards a specific goal. When we start this journey, we don't always think about the hurdles, and the temptations we're going to face along the way. We need to acknowledge that just because we want something badly, and believe in it, we're not always going to make the right decisions. We're human, we have temptations, and its just not always easy. The journey isn't always a straight path. Coming to terms with those struggles is important, and we need to get over it when we mess up and move on.
- Commitment to your goal is vital. If you aren't all in, forget it. In order to be committed, you have to believe that the goal is important and attainable. This goes back to that whole argument of belief – belief is the first step to reaching any goal.
Here are some things you can do to encourage yourself when you're struggling to keep going:
- Make a chart and hang it on the wall. Set small milestones, and each time you reach one, fill in a new section of your chart and give yourself a mini reward.
- Stay on top of your progress. Tracking your savings often will help you stay focused on your goal.
- Remember why you set out to do it in the first place, and keep dreaming and planning for your future. Visualize yourself in your new house, life, job, whatever it is you're reaching for.
- Some people find it helpful to have a daily mantra. Here's an example: “In 4 years, 3 months, and six days, I will have enough money saved to quit my day job.” Something like that can be very powerful.
Before you launch your weekend plans, remember why you started saving money, and review your progress. If you're into mantras, craft a powerful one, and be sure to use it today.