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This is a guest article by Evan, creator of My Journey to Millions. In the article, Evan discusses what motivated him to move forward with earning multiple streams of income along this journey, and takes a motivational approach to inspire readers to improve their personal finances.

Take a moment and just think about what you did last night — that time after the kids are sleeping and you are “relaxing.” Were you watching television? According to one recent government study the average American watches 2.7 hours of television per day. Assuming that counts weekdays, that is more than 10 hours per week doing nothing productive! Don’t get me wrong. I love Teen Mom just as much as the next person, but I almost never watch it without multitasking. People often ask me how I have time to blog and attempt to build multiple streams of income, and my answer is always the same, “How do you nothave time?”

Television remote controlSometimes people have legitimate reasons for not finding time in the day, but when I look closely at someone’s schedule, it’s not that they don’t have time; often they don’t share my irrational motivation.

To put it bluntly, it confuses the hell out of me. (Side note: I have also found that when you actually create a budget with someone, most people have no idea what they are spending).

What motivates me

Some people are naturally competitive or envious of others’ success, but that is not what drives me. Blogging about personal finance for the past three years has given me a chance to look at 28 year-old Evan with 30 year-old Evan’s eyes. Blogging is a very valuable tool that most people don’t use.

When it comes to finances, I am almost entirely motivated by fear.

  • I am afraid I will not be able to provide for my family.
  • I am afraid I will live an average life.
  • I am afraid I can get fired one day.
  • I am afraid my lifestyle can be taken away at any time.
  • I am afraid I will be forced to work until I am 65.

It can probably be argued that for the most part my fears are irrational and exaggerated in my mind, but with employers having less and less loyalty to their employees, I’ll stick with being overcautious.

Harnessing what motivates you

I truly believe that the first step in bettering one’s financial situation is understanding what motivates you. From my limited experience, it is easier to change the systems around you than actually changing yourself. Knowing what motivates you is the first step in harnessing that power.

For example, if you are are a competitive person, instead of toning down your natural tendencies, try creating a game out of your situation. Find a person you can compete with. Share your balance sheets with each other and bet dinner on who can increase their net worth in a certain amount of time, or try to see who can save more money on fixed costs like cable or cell phones.

If you are a person motivated by material goods then set a goal for yourself like save a certain amount of money, perhaps the cost of that new television before you buy. If you are homebody family guy, put pictures of your kids everywhere. That could be enough motivation to work to a better financial position.

For me, my motivation — my fear — has inspired me to try and build multiple streams of income, which I think is more valuable and effective than trying to change my motivation.

Stop making excuses

Regardless of what is motivating you, it is time to stop making excuses. If you are that average American and watch 10 hours of television a week, you can never claim to have no time. So I ask once again:

What did you do last night? Are you proud of it?

Bureau of Labor Statistics

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Whether you agree with it or not, the reason this country has supported programs like welfare, Social Security, the GI Bill, food stamps, Medicare, government-backed mortgages, FEMA insurance, and other social programs is because a modern society benefits when as many citizens as possible have opportunities to succeed financially. Social programs aren’t perfect and don’t always provide what they promise, and there’s always a small percentage who take advantage of the system.

The push-and-pull between the focus on the society and the focus on the individual existed even before the founding of the nation, and this particular Weeble that wobbles between left and right without falling down (yet) has allowed the United States to become the biggest economy in the world in a relatively short period of time, and that’s a good thing.

From an individual perspective, it might not be that intuitive that one needs to be concerned about the “very poor.” After all, with social safety nets, one might think that the “very poor” have little to worry about. Regardless of the existence of programs — both public and private — poverty is still an issue in this country, even if you don’t see it in your daily life as you shuffle in an office building from meeting to meeting or shuttle from city to city on business trips. It’s hard to be concerned about something if you aren’t faced with it every day.

If, however, you are concerned about the “very poor,” there are ways to help, even if you don’t believe that handouts are effective. The most popular rationalization for not caring about poverty is the idea that helping another individual teaches complacency rather than responsibility, interdependence rather than independence. The incorrect assumption is that families in destitute situations have no desire to work for their money like those who have built wealth for themselves and have earned the right to let their money do the work for them and receive income from dividends and interest rather than working in the middle-class and working-middle-class sense of the word.

The real problem is tied into that psychology 101 concept I turn to repeatedly, Maslow’s hierarchy of needs. If most waking minutes in your day are spent worrying about your shelter, your food, and having a safe place to sleep, “income mobility” is a fantasy. You’re a victim of “class warfare,” but in your reality, you don’t have time or energy for political arguments about class warfare.

If you are concerned about the very poor, there are options. Helping bring attention to poverty can form provide opportunities to those without them without much sacrifice from those with opportunities.

  • Give money directly to organizations that run programs focusing on providing opportunities. The top-rated charities focusing on poverty according to Charity Navigator are Direct Relief International (although International is in the name, they also work to eliminate domestic poverty, particularly in disaster-stricken areas), SOME (So Others Might Eat, focusing on the D.C. area), and the People’s Resource Center (based in Chicago). If you prefer to give a hand-up rather than a hand-out, focus on organizations that provide job training and placement, programs that expand the reach of educational opportunities, and programs that present positive financial role models.
  • Volunteer with the organizations that run these programs. Build houses. Build schools. Help at a food bank. When you are actively involved, you get to experience the results of your work much more closely than if you were to send a check every month. No, you won’t get a tax deduction for volunteer work, but that’s not the point.
  • Become a community leader. When people from poor communities manage to succeed financially, they often don’t return to be the role model their community needs. This is the reason financial illiteracy is a problem that will continue from generation to generation, keeping low socio-economic status communities from thriving.

Are you concerned about the very poor? Does paying your taxes and being satisfied with existing social safety nets relieve you from any other possible responsibilities for how the country fares as a whole? Do we even have any responsibilities to anyone other than ourselves and our families?

Related: Here’s how you might be able to avoid poverty for your family. Also, could you survive at the poverty line?

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There’s a chance you could become a multi-millionaire after repeatedly slamming your head into other people and suffering through the resulting mini-concussions and minor brain damage, but not everyone can be a professional football player in the NFL. There’s a safer and less harmful path toward financial independence.

Cognitive ability is an important part of your human capital, and your human capital measures, among other things, how likely you’ll be able to support yourself financially, particularly through difficult economic times. Cognitive ability is important because many jobs requiring intricate skills and the best careers that offer opportunities for advancement require the ability to learn and adapt, and that’s the core of cognition.

The ability for the brain to process information changes throughout one’s lifetime, and without stimulation, cognitive ability can decline. When companies like Google or SAS ask puzzling interview questions, they’re testing, among other things, cognitive ability. To be hired as a software engineer, you would need to show that you have a strong command of whatever primary programming language is popular at the time, but in an industry that changes so quickly, strong cognitive ability will show that you can learn and adapt to the changing environment.

Rubik's CubeThe key is instilling cognitive ability in children at an early enough age. As we get older, we can continue to refine cognitive ability, but only to a small extent. These tactics may no longer work for me; the best adults can generally do to keep cognitive skills sharp is to get enough sleep and exercise, and eat nutritious food.

If you’re interested in helping your child prepare for a life full of challenges, there are some tactics you can employ.

Learning a new language

As a child, I enjoyed learning languages. I never became fluent in anything other than English, but I enjoyed the process of learning the rules. As a kid, I was fascinated by languages, and spent time learning a little bit of as many as possible. Like many kids, I learned a little Spanish from Sesame Street. I learned Hebrew and tried to teach myself Yiddish. I studied Latin in middle school, was taken out of usual classes to study Greek independently, and took five years of German. I learned programming languages like BASIC, Pascal, lisp, and C. And as a younger kid, I dabbled with creating my own languages and codes.

Music and mathematics have features in common with languages, as well. Music, particularly learning to play an instrument instead of just listening to Mozart, has been shown to improve cognitive ability.

As an adult, learning a new language or a musical instrument is a time-consuming task. There are programs that help frequent travelers learn languages quickly, but you could get a bigger cognitive benefit by learning a language through a more academic curriculum or through immersion. Rather than focusing on key phrases that help you get by in a foreign land, incorporating a new language into the way you think can help keep your brain active. On the other hand, young children, even those learning their first language or languages, can often learn multiple languages concurrently without being confused. Language skills not only improve cognitive ability, but they can make someone a more marketable employee around the world or increase the chance of international success in their own businesses.

Completing puzzles

Elementary school is a great time to focus on solving puzzles whose solutions require thinking “outside the box.” I seem to remember this being called “lateral thinking” when I was younger, but I don’t know if that term is widely used today. These are the types of puzzles that stymie job applicants at companies like Google. But puzzle solving as an adult won’t have the same impact as puzzle solving when the brain is at its most impressionable.

  • Logic puzzles are kind of like the game Clue. You often have two or more dimensions to work with, and the goal is to pair each of the dimensions together based on a limited number of clues. A grid helps eliminate incorrect pairings to discover what’s correct. The more dimensions included in the puzzle, the more brain power necessary to solve the puzzle.
  • For a child, a Rubik’s Cube can be an engaging puzzle. While the answer now comes packaged with the toy, and there are numerous Youtube videos describing how to solve the puzzle in about twenty moves, the cognitive challenge is in working to find patterns of movement that move closer to the result.
  • Text adventure games open up a child’s mind to being able to control their environment. Video games have changed since I was a kid, but I enjoyed the early text adventure computer games like Scott Adams’ Adventureland. (Classic game lovers can play Adventureland here.)

Reading and writing

Reading and writing help develop important cognitive skills focused on processing information the same way they’ll need to make sense of problems as adults. Writing, particularly creative writing, improves the command of language and can help children find clarity when expressing their ideas. Writing is a skill that will easily set someone apart from the competition, as might be necessary in tough job markets. I’ve personally seen atrocious written communication among co-workers throughout the many jobs I’ve had. I will never say I’m a great writer, but these skills are lacking in my former non-profit and corporate environments.

When I compose a well-worded communication, the supervisors shouldn’t be surprised. Every employee with a college education should be able to express himself or herself somewhat eloquently.

These cognitive skills nurtured at an early age can help prepare children for financial success in life. The best careers need smart and flexible employees to take on unforeseen challenges. People often predict what the hottest careers may be one generation from now, but the specific opportunities are irrelevant if children are prepared today to handle any problem that presents itself.

What did you do as a child to improve your cognitive ability? If you have children, how are you helping them prepare for the future?

Photo: Don Wright

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For almost as long as I’ve been living without a human roommate, I’ve enjoyed the company of my cat, Rupert. I adopted Rupert from my friend who determined his newborn daughter was allergic to cats. He had already owned Rupert for a long time, and I knew I’d be the cat’s new owner for the second half of his life.

Rupert was fifteen or sixteen years old when I brought him to the veterinarian to have him put to sleep this weekend. His quality of life had been worsening over the last year, though trips to the vet didn’t indicate why he was unhappy or having health problems, nor could the vet offer any suggestions to help. His suffering seemed to increase in the past weeks, and I had to make the difficult decision.

For most of my years with Rupert, I commuted to my place of work every weekday, and I knew that he would be waiting for me when I returned home. In recent months, as I’ve been working from home, Rupert kept me company when he wasn’t sleeping during the day. There were times he was a pest, but overall, he was a very sweet cat who was always happy to provide companionship. I may find a new cat sometime in the future, but not until I can settle other aspects of my life.

Here are some articles from around the web that piqued my interest lately. Read the full article →

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