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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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The option to work from home has been shown to benefit employees and employers. This type of flexibility in working arrangements, when appropriate based on the employee’s responsibilities, increased productivity and retention for the employer and job satisfaction for the employee. The same benefits apply to working arrangements that include flexible hours.

As Margaret Heffernan explains in INC Magazine, “Treating employees like grown-ups made it more likely that they would behave the same way.” This treatment includes trust; if you hire the right people, you can trust them to accomplish their tasks and goals on time and under budget without worrying about the time they walk into their cubicle and the time they leave.

ClockIt’s difficult to treat employees like adults, however. At one of my corporate jobs, I joined a team some time after the management hired an efficiency consultant. The consultant sat with each employee and monitored and logged every minute of each employee’s work day in order to determine opportunities for improvement in productivity. After the study, productivity might have increased, but it most likely didn’t last long. Employees resented the requirement of tracking every minute of their days.

Around the same time, one of the supervisors made a habit of walking the floor at nine o’clock in the morning to see who was at their desk on time every day. This type of micro-management benefited the supervisor, and perhaps it gave her a feeling of control, but the employees resented the approach, even if they were at their desks on time each morning. Even when arriving on time, the employees would need to be at their desks at the moment the supervisor walked by rather than in the rest room or the kitchen area.

Thankfully, this supervisor was no longer with the team by the time I accepted my position.

A policy that includes flexible hours gives employees ownership of their roles and allows them to make decisions about the best time to do their jobs. The right people can handle these decisions without taking advantage of the employer or the flexible policies.

A flexible working hours arrangement can take a variety of forms:

  • forty hours every week spread over four days instead of five
  • eighty hours every two weeks spread over nine days instead of ten
  • eight hours every day starting earlier or later than nine o’clock

This type of flexible working arrangement may increase productivity. Happy employees tend to be better employees, and they stick with the company longer. Long-term loyalty to a company has decreased over the years due to many changes in the relationship between employers and employees, but a policy involving flexible hours and other benefits can help reverse that trend.

Work/life balance isn’t always appropriate. I am always torn with this concept, because different goals require different treatment. When I worked for a small non-profit organization whose lofty goals were difficult to achieve on a tiny budget and a lack of resources, the expectation was to put our lives into our work. The only way to achieve greatness is to be completely dedicated to the mission, and that required making many personal sacrifices. Most jobs and careers do not work in this fashion, but in any career, this type of dedication can lead to success.

Work/life balance is a great approach for the cast majority of the American workforce that recognizes that life outside of work is important, but those whose personal mission is to become the best in the world at their job, life is just a distraction.

As a business owner without any employees, I took advantage of flexible hours. When I left my corporate job over a year ago, I experimented with creating a regular schedule for myself, but I determined — and this was something I had known since I was a teenager — that I just work better and more efficiently when I have the flexibility to work when I like.

Do you have flexible working hours at your job? Is it beneficial or detrimental to your group? If you work flexible hours, have you seen any personal benefits?

INC Magazine, American Psychological Association, Forbes

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I was torn when Amazon.com, the online-only retailer for books, music, and movies, became popular. I liked the convenience, but it was clear that local brick-and-mortar bookstores would have difficulty competing with Amazon’s prices in the long term. I was swayed enough to the side against Amazon when I participated in a boycott of the company when they filed for a patent for the 1-Click ordering system.

Over the years, though, I’ve come to accept Amazon.com as a part of my life as a consumer, and I shop using Amazon.com for more than just books, music, and movies. I gave into my desire for speedy delivery and joined Amazon.com Prime, as well.

BooksAmazon.com’s aggressively competitive tactics has extended recently to book publishing. With a book publishing arm, Amazon.com has the right to sell its own published books exclusively. With the new tools Amazon.com is offering authors, traditional publishers are having a hard time competing.

This week, I saw that Amazon.com is planning to open a physical, brick-and-mortar store in Seattle. It could be the first step to bring storefronts to more locations throughout the country, but that depends on the results of this one Seattle location. The purpose doesn’t seem to be to keep an inventory of books, movies, and other media on hand to sell, but to focus on Amazon.com’s own electronics, like the Kindle.

I was recently reminded of why I was wary about Amazon.com in the first place. I’ve seen what has happened to local book stores, some of which have gone out of business, and what has happened to Borders, with large, empty stores left in the wake. There are several local book stores that remain, but I can’t say whether the stores are thriving and predict how long they’ll last. I spoke with a book-lover who was mortified that I rarely shop in independent book stores and that Amazon.com is changing the landscape for consumers and hurting small business owners.

If Amazon.com extends its new store front model beyond one location in Seattle, the primary competitive target seems to be Apple, not local book stores. Yet, if the e-book, and particularly Amazon.com’s proprietary version of the e-book, becomes the preferred method of reading for more consumers, and these e-books could be purchased only from Amazon.com, local bookstores will be in danger.

What will a book store look like in the future? Will locally-owned book stores continue to exist as viable businesses?

Photo: shutterhacks
O’Reilly, The Globe and Mail, New York Times

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A group of fresh, unemployed lawyers have banded together to sue law schools. 73 alumni have filed at least fifteen class-action lawsuits, alleging the schools inflated employment figures and salary data to attract students and increase rankings. The real goal of the lawsuits seems to be to effect systemic change in the education industry and associations that accredit law schools, like the American Bar Association.

Schools are in the business of generating alumni, and to a great extent, use as many marketing tricks that any company uses in order to influence public opinion. It’s true that a 90% graduate employment rate looks better than a 75% rate on paper, and I’d be more inclined to choose a school with a higher employment rate, with all other factors being equal. But a 90% graduate employment rate doesn’t guarantee that I would receive the job I want after graduation, even if I were in the top 10% of the class.

Furthermore, I’ve come to the conclusion over the years that any statistic used for marketing purposes is subject to manipulation in an attempt to further the goals of marketing. Hard numbers give the impression of fact. From an early age, we’re trained to believe that one plus one equals two, in all circumstances, and numbers are truth. Statistics can be misleading in many ways, and are used more often to try to convince others of a point of view rather than quantify facts in reality.

Law school graduationThe group of lawyers probably can’t prove that the blame for their unemployment situation rests with the law schools. There are many factors that contribute to unemployment, including the overall economy, local job markets, and the effort, skills, and self-marketability of each alumnus. It doesn’t appear as if the former students are suing to have the schools compensate them for the lack of expected income from working, but they are suing to enlighten the public to the issue of misleading statistics throughout the educational industry.

Mutual funds must advertise that “past performance does not guarantee future results.” Even if a graduate employment rate were perfectly measured and accurately reflected exactly what a potential student understood the number to be, a good rate today is no indication that the rate will continue to be high by the time the school awards a degree or certification. If my index mutual fund returned 12% last year and lost 8% this year, I can’t sue the fund manager or the stock market for not providing the dividends I was hoping for. If fraud was involved, it might be a different situation. Perhaps misleading statistics like graduate employment rates are somewhat fraudulent, but I don’t see a parallel as schools do not typically promise that students will be employed at the level they’d like after graduation — and in the case of lawyers, after passing the bar exam.

There might be better ways of raising the issue of misleading statistics in the marketing endeavors in which institutes of education engage. Using the courts to make a point is only one tool that’s available to increase awareness of an issue. When you’re a hammer, though, everything looks like a nail.

Several years ago, while I was completing my Masters in Business Administration degree, I considered attending law school. Ultimately, I decided not to pursue a law degree and to focus my energy on my business instead. I think I made the right decision.

Photo: CubanRefugee
WNYC

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Debt Collections: Do You Have To Pay?

by Flexo
Clock - time-barred debt

People who borrow money generally understand that they will eventually need to pay borrowed money back to the lender. This understanding, whether codified in a contract or not in any particular case, makes lending and borrowing money work as an economic mechanism. It’s interesting that regardless of what’s written in a contract, most debt can ... Continue reading this article…

6 comments Read the full article →

Your Ego and Your Wallet

by Marc Pearlman
Poker chips

This is an article by Marc Pearlman. Marc is a money management professional who has been in the finance industry over 20 years, and he is the author of The Positive Money Mindset and host of the radio show, Your Money Matters. I watched as these two were duking it out — at the poker ... Continue reading this article…

8 comments Read the full article →

Are You Concerned About the Very Poor?

by Flexo

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 ... Continue reading this article…

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Participate in Self-Control Research

by Flexo

I’ve written extensively about taking control of your finances. One aspect of the ability to succeed with your financial goals is making active, thoughtful decisions pertaining to your use of money. Uptal Dholakia is a professor of management at Rice University in Houston, and he is currently conducting research pertaining to self-control and decision making ... Continue reading this article…

6 comments Read the full article →
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