Fake It ‘Til You Make It

The other day I had an interesting conversation with a friend that happens to be a client, about faking financial prosperity. My friend, for the sake of privacy, we'll refer to him as "Mr. P" told me that he has a different opinion on the subject and that he wanted to call in and voice his concerns when he heard me talk about it on my radio show. For those of you who are new to me and my world, Lynda, my sister in law and I have a financial talk radio show called "Understanding Money"; it airs live, every Saturday morning from 8am-9am. Visit our website www.newundergroundrailroad.com for more information. In Mr. P's view, he felt that I came down pretty hard on people who practice this superficial life style. For those of you who didn't have the pleasure of hearing the show, I'll recap what I said, then, we'll discuss his view on the subject. I said it then and I'll say it again: "Faking ones financial status by showing off obvious signs of luxury like expensive clothes, fancy cars and bling-bling jewelry, even though you can't (credit cards) afford them, is a clear sign that you lack financial responsibility." Honestly, it really does very little for the people that you love and care about. It only conjures up feelings of envy or secret resentment. In fact, the practice has been the cause of many failed marriages and broken relationships. To fake is to lie. Faking is a way to conceal the defects of or to make you appear more attractive than you, yourself, feel you are. Which is better? To appear to be rich, or to be rich? Well, "Mr. P" said that sometimes "faking it 'til you make it" may be all that, that person has. He said sometimes a person's self esteem is so low, that material luxuries is the only thing that will instantly lift them up. He said if you can't be rich, you might as well look rich. My response to that is, If you spend your time and money trying to appear to be rich, where in the world, are you going to get the money to invest properly, so one day you will become rich?. People who adopt the "fake it till you make it" superficial way of life tend to focus on short term happiness, while unconsciously building a life of long term poverty. Listen, let's not kid ourselves, we all know someone who looks like "glitter", but if you dig deep, there's no gold. Don't get it twisted. Faking it is not the same thing as positive thinking or visualizing the things that you want (these are mind exercises), neither is faking it, positive affirmations, it's just lying. Trust me, the things that you do and how you carry yourself, have a profound effect on all of the people that you encounter (your neighbors, your community) rather you know them or not. Faking it is one of the major reasons why so many people can't seem to get ahead generation after generation. The sum of money might be one problem, but how money is used is a much bigger problem. Say what you want and do what you want with your money, but seeing a first year school teacher (single and not rich) drive up in a 500 series Benz, doesn't say "you've made it" actually it says you're living beyond your means. The other day, my 21 year old son told me how his 21 year old friend "Jose" (spanish kid), just purchased a new 750 series BMW and how everybody's ooh and aahing him. Never mind the fact that "Jose" works at a Kiosk (a booth) in the middle of a shopping mall. My son said "Jose" was bragging and talking big about all the new found attention he was receiving after buying his new depleting asset, which is costing him $1200 per month. This is the same kid who, a few months ago backed out of sharing an apartment with my son because his father told him, he should wait until he paid off his old car (2007 Camry) before taking on the expense of an apartment. So now, the kid remains home with Mama and Papa, with a wasting asset in the drive way to impress the neighbors. Get this, "Tony"(white kid), another one of my son's 21 year old friends was so envious, that went out and purchased a white brand spanking new (with fancy rims) 750 BMW also. As you can see, this "fake it 'til you make it" stuff crosses all ethnic lines. As for my son, he's out looking for an apartment right now; a cow would have to jump over the moon before he tries something like that while he's under my roof.


"To fake it is to stand guard over emptiness"-Arthur Herzog


What do you all think?

Robert

Wall Street vs. Main Street

Listen up and please pay attention to what I'm about to say.

I've been in the financial services business for over 25 years, and after being in this field and witnessing firsthand how money talks and BS walks, I can honestly tell you that if you, me, the president or anything or anybody else thinks that Wall Street can be man handled, fined, and told what to do without human and financial casualties-they'd better think again! Wall Street knows all too well how to play and use the rules that help create and define, free enterprise and capitalism. America has never been known to just "ask" for what it wanted; America takes what it wants and justifies it later with the help of some sort of Jedi mind trick. Former President Bush once announced, to his rich audience at a black tie affair "you are my base". Trust me, he wasn't talking to "Main Street", he was addressing Wall Street. Main Street doesn't own or control the media, Wall Street does! Main Street doesn't control or own the banks and money centers; again…that's Wall Street! Wall Street has enough money, power and influence to make you tell a lie, and then, believe your own lie. Ever heard a new song played on the radio that you didn't like? Don't worry, after the radio station plays it 27 times, you'll be singing it in the shower. Yeah, you can thank Wall Street for that too. The point is, we have a president that's really trying to do the right thing; but doing the right thing is always harder than doing the wrong thing. Anytime a new idea is born or a change in thought appears, it's always placed in a minority position rather than in the majority. If Wall Street is against the president, then you know the president is right. Unfortunately, the masses are weak; people are tired and scared. This reminds me how the people chose Barabbas over Jesus; they chose a so-called murderer over someone who demonstrated love. Folks with money have generally always been able to influence folks with less money, that's just the nature of being a lost human. There's a big difference between the letter of the law and the spirit of the law. Right now, President Obama is dealing with the spirit of the law which falls under the realm of good will, moral values and ethics. And since he can't get that from Wall Street, they are daring him to tamper with the letter (old capitalist rules) of the law. They want him to move in the direction of socialism so the people can rally against him. He's daring to do things that no other president has ever been successful in doing (healthcare reform, balancing the scales, reducing the income gap ) what's more is, he's attempting all these things while being the first black man to ever become president of the free world. What an exciting time to be alive and to bear witness to how this moment in time will play out. I can tell you one thing for sure; this won't be an intellectual battle between man versus man. Oh no, this show down is too juicy for human intellect! The outcome, and what's at stake here is probably too vast for average human comprehension. This is certainly not about democrats and republicans, oh no, that's just a decoy. This power struggle is much bigger than that. Wow! Wall Street versus Main Street, or should I say, good versus evil.

“That's what it takes to be a hero, a little gem of innocence inside you that makes you want to believe that there still exists a right and wrong, that decency will somehow triumph in the end”-Lise Hand

Let me know your thoughts.

The 3^rd Eye

Robert

Committed to Investing

When I think about the word commitment, I immediately think about marriage; maybe being married (and committed) to the same woman for over 22 years has something to do with it. I can’t speak for you all, but I know that when some of y’all either hear or see the word commitment, y’all think of a mental institution or hospital; heck, some of y’all think of jail or prison, I know, I was raised in the ‘hood too. But in truth, the word commitment means many things to different people. However, the definition of the word committed is: to pledge (oneself) to a position on an issue or question; to bind or obligate, to commit oneself to a promise; to be committed to a course of action. The reason that I feel the need to bring up this word and its definition is because so many people seem to have either forgotten or don’t know what a commitment is. Right here, and right now, millions of people all over the world aren’t committed to doing anything meaningful that will enhance their lives. Case and point: investing. Investing ones money requires a firm commitment. Just because you invest a lump sum of money at one particular time, doesn’t mean you’re investing. No, you made an investment. Don’t get it confused, investing (meaning more than one time) is the key to building wealth. Many people open an investment account and within 12 months, they are treating it like a bank ATM (Automatic Teller Machine), withdrawing money for reasons like getting the car fixed or making home improvements such as, putting in new windows, or putting down wood floors. Think about it for a moment, you’ve purchased shares (stock ownership) in apple computer, which means you’re a shares holder, which means, you’re part owner of this multibillion dollar company. You even have voting rights, which means you have a right to vote on company policy. Apple share price has been climbing (increasing in value), in other words, it’s been working for you, making you more money than you can earn for doing “nothing”. The IPOD and the IPHONE are producing billions of dollars for the company that you are part owner of, and you call your broker and say “I need five thousand dollars for wooden floors, how soon can I get it?”. Don’t get me wrong, I’m not saying you shouldn’t ever take money out of your account, however, I believe that money should be used for worthy causes. I just don’t think you should sell your growth stocks and your ownership in great companies to pay for something you should use your discretionary money to pay for. Wooden floors are not a need, it’s a want. When you sell your interest (ownership shares) in major corporations for things like vacations, and auto repair, you reduce your overall net worth. The five thousand dollars spent on flooring won’t count towards adding value to your personal financial statement. Point is, the only way you can ever build wealth is to make a commitment to investing on a regular basis. Not one time, not two times, but consistently a certain amount each and every month.

Remember, time isn’t waiting for no one. Start out with whatever amount you can, just as long as you start! 

“There's a difference between interest and commitment. When you're interested in doing something, you do it only when circumstance permit. When you're committed to something, you accept no excuses, only results.”-unknown

Let me know your thoughts.

The 3^rd Eye

Robert Henderson Jr. CFP   

New Year, New You!

Hello and happy New Year! I’m sure that as we kick off the year 2010, many of you have been greeted with this phrase, but as you politely return the greeting, I want you to do me a favor and take a moment and ask yourself, “Is this really a new year for me?”. In other words, are you bringing the same old baggage (selfishness, jealousy, envy, fear etc.) from the old year into the New Year? If so, don’t kid yourself, it really isn’t a new year for you at all. In fact, many folks proclaim “A New Year” but truth is, many of us haven’t had a “New Year” in years. The numbers change but there’s a good chance that you, the person, haven’t changed at all. Maybe the problem is, most people really don’t understand what is meant by “New Year” so let us clarify the word new. The word “new” means something that has not existed or hasn’t been seen before. Something recently invented or discovered. A new idea…a new thought.  Bottom line, to have a “New Year” truly means to change. And according to universal law, everything under the sun must change in order to grow. When I think about change, Taco Bell always comes to mind. Here’s a company that been around since 1956 selling tacos (in the beginning they sold hot dogs), every year they find different ways to basically change and reinvent the same taco (hard or soft); now that’s a “New Year”!  They serve 36.8 million consumers each week, and get this, for the “New Year”, Taco Bell is introducing the new Drive-Thru Diet Menu. Wow!! Diet Tacos! Just when you thought you knew the menu, they changed it on ya. I can’t wait to see what they come up with in 2011….energy Tacos?!? Take note from Taco Bell and really make this a “new” year for yourselves. 


"Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better." — King Whitney, Jr.

With that said, leave your comments and tell me what’s changed about yourself that will make 2010 truly a New Year.

Later,

The 3^rd eye

Robert   

New Year’s Resolution

It has been said many times before, "A New Year's resolution is something that goes in one year and out the other". In other words, for the most part, New Year resolutions are all talk and no walk; just wishful thinking. We begin each year with good intentions, but data shows within 90 days we're back to our old way of doing things. The number one New Year's resolution is to lose weight. Ah, how many of us have made that promise? To manage debt & save money is the second most promised New Year's resolution. These two resolutions have been in the top two spots for many years. Many people from all walks of life have tried but to no avail, have failed miserably. Losing weight, managing debt and saving money both have one thing in common. Self discipline. Self discipline isn't something you're without on December 31 and on January 1^st you speak it and it appears. Self discipline must be acquired, (you can't buy it) it must be earned by the training of one's mind; it's like acquiring a taste for fine wine. Repetition is a major component in the development of self discipline. In other words, you have to keep doing it over and over until it becomes a habit. It doesn't just happen overnight. When I ran a marathon (26 miles), I didn't just up one day and run the next day, heck, I trained for 6 months, and yes it did become addictive. It's amazing what one can do when we develop self discipline. Imagine, being able to make yourself, do the things that you ought to be doing, when you just don't feel like doing them. Wow! There would be no limits to what one could accomplish. I'm reminded of the biblical story of King Solomon and his wish. After Solomon had become King, the night after God appeared to him in a dream and said, "Ask what you wish, and I shall give thee." "Lord," replied Solomon, "thou hast made me King, and I am but a little child. Now give me wisdom and understanding, that I may govern this people." Now that's what I'm talking about! Solomon could have asked for riches and glory but he didn't, neither did he ask for a long life. Instead he asked for wisdom and understanding (God granted his wish). The brother knew if he had wisdom and understanding, his wisdom would automatically bring him wealth and all of his heart's desires, and understanding would bring him more. Some of you might be wondering what does this story has to do with your New Year's resolution. Well here's the connect; if you're going make a New Year's resolution, don't focus on the effect, focus on the cause and the effect will automatically appear. In other words, if weight loss is your goal, weight loss represents the effect, self discipline is the cause. The same principle applies with managing debt and saving money, both are effects. You must first deal with the cause (self discipline) and all of your hearts desires will come true. Happy New Year! Or should we say Happy Self Discipline! Give me your thoughts.



"Men are anxious to improve their circumstances, but are unwilling to improve themselves; they therefore remain bound. The man who does not shrink from self-crucifixion can never fail to accomplish the object upon which his heart is set. This is true of earthly as of heavenly things. Even the man whose object is to acquire wealth must be prepared to make great personal sacrifices before he can accomplish his object; and how much more so he who would realize a strong and well-poised life."-James Allen


Here's another...for the road *wink*


"The first and best victory is to conquer self."-Plato

 
The 3^rd Eye

Robert