Wealth and Wisdom

It’s Monday morning and you are ready for the final match of the week. You look back at the previous week and are amazed. What a ride it’s been…

Your first match
You start off slowly feeling out your opponent. You try a run and gun style of play only to go down 0-5 early in the first game. You reassess your game plan and adapt to your opponent. Slowly you dig yourself out of the hole and win the game 15-10. Now that you have figured him out you take control. You go up 13-2 in the second game before you get hit with his racket. You realize you have a limited time to finish things off before the pain sets in and the swelling starts. You dig deeply and push through to win the match. Two vicious serves and the match is yours.

And you have learned your lesson: don’t try and beat your opponent at his own game.

The next match
The next match isn’t as easy. The kid is half you age and is good. Your only hope is to play smarter and keep him moving. You go in with a game plan and start to execute. Keep the kid off balance. Change the pace. Make him move and keep the ball out of center court. Slow it down and make more defensive shots. Give him shots that are tempting but hard to hit. Let him make mistakes.

You win the game pretty easily. The kid keeps playing into your game and makes your job easy.

Game two is much harder as he adapts to your style of play. He takes an early lead and you can never quite get back into the game.

Now comes the tiebreaker. This is an epic battle-youth against wisdom! This kid gets to everything. Every point comes hard, but you start to assert your game plan and take control. It is hard, but you eventually prevail.

Quarterfinals
Now on to the quarterfinals. This time it is the opposite side of the age spectrum. Your opponent is 30 years your senior. He has been playing since before you were born. He has seen every trick in the book, and invented a few of them himself! This time your game plan is more like a blitzkrieg than a chess match. Hard and aggressive serves. Fast pace. Make him move and don’t give him time.

The first game is quick and easy. He tires easily and you start to ace him on your serve. He no longer gets to your shots, but nothing gets past you with your speed and agility.

The second game is harder. He doesn’t go down easy. Remember, he’s been doing this as long as you’ve been alive! This time wisdom isn’t enough to overcome youth and vigor. You win the match and move on.

Semifinals
Up until now you have been better than your opponent. This time it is different. He goes up early in the first game and puts you back onto your heals. You dig deep and stagger back. You are good at serving and start to pound him. Slowly you start to build momentum. You lose, but it wasn’t a blow out. He is dripping with sweat and exhausted. You are energized and take momentum into the second game.

Suddenly he starts playing like a different person. The shots he missed last game start hitting. He takes control and easily wins the match. He goes on to the finals. You go play for third place.

Back to Monday morning
It’s Monday morning and you are ready for the final match of the week. You have spent six days playing the best in the nation. You have been tested. You have been hit with rackets (and hit someone as well). Your body is worn and bruised but not beaten. You are focused, have a solid game plan, and are ready. Now is the time to execute.

Only your opponent doesn’t show up for the game. You win by default. You tell yourself that a win is a win, but it just doesn’t feel the same. There isn’t the rush of emotion that comes with a hard fought victory. It will always be in the back of your mind as you wonder how the game would have turned out. You feel deflated. Then you reflect on what you have achieved and learned. You look at the friends you have made. You remember the joy on your son’s face when he played the best game of his life. You remember the hurt when he lost a match he should have won.

Wow, what a week!

Last week I was honored to be able to play in US Racquetball Association’s National Singles Championship. I had a lot of fun meeting and playing with the best in the nation. Watching them in action was amazing, especially the players in better divisions.

All in all I am:

• Proud of my accomplishment. Last year I didn’t belong and it was apparent. This year I took third place.
• Exhausted. A week of racquetball is exhausting. The competition is so much higher at nationals and it requires you to play at an elevated level.
• In pain…Everywhere. It is easier to list the parts that don’t hurt. Everything from aching knees to sore hips to a bruised and swollen arm (a direct hit with a racket) to a tight back.
• Ready to get focused on work, my website, and my blog.

What did I learn?

One of my primary beliefs is that we should take time to savor our experiences and to learn the lessons that life is trying to teach us. Usually you can apply the lessons to most areas of you life.

• Learn from past mistakes: Last month I played in the Regional Qualifier (7 Ways Losers Win). While my skills had improved from last year my performance was less than satisfactory. One thing I did right was learn from the experience. This helped me win third in nationals which was a major achievement.
• Dig deep if you want to win: Often the winner is the last man able to stand. When I was in my second round match I was playing someone half my age. I had to dig deep into my reserves to pull off a victory. I was absolutely determined to win in spite of exhaustion, aches, and pains.This isn’t always a physical effort. Sometimes you need to dig deep emotionally to get yourself back into the game. Again, the determination to win is a key factor in sucess.
• Have a game plan: Having a game plan is critical if you want to win. Every win I had was based on having a plan and executing. I may have to adapt but that is part of my plan.My son learned this lesson as well. He was up against a national champion (juniors 14 and under) who’s parents were top ranked players. She had a professional coach. She had already beat a couple of his friends. We watched her play and evaluated her strengths and weaknesses. Based on this we came up with a game plan. In game one he just played his normal game…and lost. Then he got smart and executed his strategy. It was an amazing match to watch, and in the end he won.
• Take it one point at a time: Each and every point is a new challenge. Set aside the last shot and execute right now. 15 individual victories and you win the game. Win two games and you win the match. It doesn’t matter how many missed shots or lost points you experience as long as you win two out of three games!This applies to life as well. A successful life is a string of successful years. A successful year is a string of successful days. One bad day won’t ruin your life. Accept it, learn from it, and move on.
• Pause to enjoy the victory: Win the match? Sit back and relish it. Make a great shot? Let your exuberance show!This can also be other people’s victories. Several friends and my son were playing in the tournament as well. We cheered each other on every step of the way. It builds friendships. You give each other moral support. It makes the experience more fun. Their achievements mean almost as much to me as my own.
• Attitude: A good attitude always pays off. It helps keep you focused and executing your game plan. It gives you the determination to win in spite of setbacks. It shows good sportsmanship.This is another lesson my son learned. His biggest weakness is losing his mental focus and letting his opponent take his head out of the game. During is match with the 14 and under national champion, he kept his head in the game. Even though he lost the first game, he stayed focused. This allowed him to concentrate on executing his strategy. This allowed him to win the match.
• Learn from both your successes and failures: We often forget to learn from our wins. We get carried away on the emotional high and don’t take the time. Also, it is often easier to learn from losses. It gives your loss meaning and helps ease the pain.As well as I did, I still have a long way to go. I know where my game needs improvement. I will make steady progress throughout the year. I have several things to learn that will take my game to the next level. Next year I will test my skills and see how far I have improved.
• It isn’t all about winning: I enjoy winning but it isn’t why I play. I like meeting new people and making new friends. I like testing myself and having a way to measure my improvement.

I’m a self professed computer geek
I love playing with computers. I’ve been programming since I was 12. I’m not a professional website developer, but I’m pretty adept at it. I’ve used every major website development software (Dreamweaver, MS Frontpage, Go Live, and MS Expressions Web) as well as several free versions.

Last year I started using XSitePro and have been sold ever since. It doesn’t do everything Expressions or Dreamweaver does. I still have to go back to Expressions (my current #2) to do certain advanced things, especially when it comes to scripting or forms. Why use it if it can’t do everything? Because it does the important thing extremely well.

The other software is designed for the uber geek (I can say it because I am one). It does everything…but not easily.

XSitePro is almost idiot proof. It was designed by businessmen who’s bread and butter was internet marketing. They needed a tool to allow the average Joe to build a powerful and professional website in record time. That person doesn’t have the time to spend days tweaking their website and plugging in all the things they need.

The list of tools and features is impressive but there are some issues. For example, I still need another program to do certain things. The templates are an afterthought. No ability to do forms. The layout options are great but there are some limitations. Probably the biggest issue is that I still have to find or write scripts to do a lot of things like incorporating RSS into my site.

Tomorrow everything changes
Tomorrow XSitePro version 2 is being released to current users. The full release is in a few weeks. It is a major improvement on an already fantastic piece of software. From what I can see most of the issues with the original version are fixed. Many of the old features are improved. I’m amazed at how many features and tools were added while keeping it simple to use.

I can now throw away Expressions Web.

Upcoming changes to my website and blog
There have been a lot of changes that people have requested, and some that I just have wanted to add. I have been holding off for this version of XSitePro to be released because it allows me to do some pretty amazing things.

I have already changed hosting services to allow for more functionality. As far as I can tell this went seamlessly and didn’t result in any time offline or blog reposts. The next step will be to make changes to the website offline. When it is tested and verified, I will release it.

What are some the the things coming up?

• New layout: Our goal is to provide a professional look that is consistent on both the website and blog. My options for a quick layout were limited. I now have access to hundreds of professional templates that I can then further modify to be exactly what we want.
• Website content: Our initial web page was based on what we thought you wanted. Thanks to your feedback we have a better idea of what is needed. One big change will be news feeds and blog posts (from other blogs) on the front page. These will all be on our core topics, making it easy for you to get your life balance, wealth building, and personal development news in one easy source.
• More tools: we will be adding tools to help you. This is an ongoing process, and we will be adding them as we find or develop them.

I’ve received requests to make some changes to my blog and website. There are several features that can’t be added using my current web hosting. During the next few days you may have some problems accessing my website and blog. My old blog posts may also reappear on your reader as new. This is because I am shifting hosting from Microsoft to Linux. This is being done because:

• There are several things I want to do with my site and blog to add features you have requested. I can’t implements several features with the Microsoft hosting. Most of this is due to a lack of support for several scripting languages.
• It will allow me to use Wordpress which is a more capable Blog platform than Blogger. This should allow me to better integrate the website and blog providing you a more seamless experience.
• I use XSitePro for 90% of my web development activities. They are coming out with a new version in a week or so. I will be able to use more of the features with a Linux platform.

Bottom line is that this should improve the quality of my blog and website.

Common advice, common results
I shake my head when I hear most “experts” talk about getting ahead. Their advise is almost always the same: “reduce your spending to the bare minimum. Maximize the amount you save. Invest in good mutual funds for the long haul.”

Every once in a while you hear someone who focuses on increasing your income. Most of the time it is based on working harder and longer. Often it includes being more productive.

Don’t get me wrong, it isn’t bad advice. For 80% of Americans, it is a step in the right direction. Considering the rampant abuse of credit cards, it is their path to salvation.

Path 1
This is the most common path you see personal finance guru’s advise. This is what you hear from the frugal blogger community. It is 90% of the help Dave Ramsey and Suze Orman give.

The concept is basic: reduce your expenses below your income. Interest and penalties are unnecessary expenses, so they must be eliminated.

While this is the foundation for personal finance, it is missing a key element to build wealth. By itself it leads to a safe and stable life of mediocrity. Yes, you can become a millionaire by using this path. It just won’t happen until you are too old to enjoy it. And how much will your nest egg be worth? By then a million dollars will be the equivalent of $700k. While this is a good chunk of money, it leads to a lower middle class retirement. Not the golden watch we all dream of!

Path 2
Ahh, this path is riddled with scams and charlatans. Don’t worry about expenses, increase your means. On the surface this sounds great. Keep enjoying the latte. Drive cars you can’t afford. Live in a house that is too big for your income. Trust that you will make enough to pay it all.

There are some real experts that tell you to focus on increasing your income. Michael Masterson is one. Robert Kiyosaki is another, though his status as “expert” is questioned by many. Most of their focus is on increasing your pay or starting a side business.

This road has major flaws.

• First, if you can’t manage your finances at $30k/year, it will just be magnified at $300k. This is a fact and has been proven in study after study. The typical person’s expenses increase faster than their income. What was a financial problem at $30k becomes a downright crisis as the income increases.
• Living within your means is safety. Your financial security is inversely proportional to your debt. For the non-math majors, that means that as you decrease your debt, your life becomes more secure and stress free.
• Dollar for dollar, decreasing expenses results in more free cash than increasing income. This is due to income taxes.
• The second path is littered with get rich quick schemes. There are legitimate businesses out there. Some of the advice is good. 97% is bunk.
• If you do find or build a legitimate business, you need more than just income. You also need expense control and budgeting. Hmmm…Doesn’t that sound like personal finance?
• There is truth to the belief that material things get in the way. They clutter your life. They increase your expenses. They are an emotional drain. I’m not saying we should live like monks. We should just be careful what we bring into our lives.

Path 3
This is Benjamin Franklin’s path. Decrease your expenses. Increase your income. This is the best of both worlds.

Dave Ramsey (and similar experts) touch on this, but often it is to help get you out of debt. “Take a second job to speed up your debt repayment” is their mantra. That is great to get you out of a bind, but is not a long term solution. You work 40 hours a week at your day job. You do 20+ hours as a pizza delivery guy. That doesn’t leave you any time for family and fun. Once you are out of debt, this is not the way to lead a rich and balanced life.

There may be many ways to bring in more money, but I find two to be most effective.:

1. Earn more at you job: What are your doing to earn a raise or promotion? Your compensation is based on your contribution. You must first increase your contribution if you want more pay. And remember, the training you receive while on the clock is to do your current job. It is the time you spend after work that will help you get ahead.Another thing to consider is whether your pay is appropriate for your industry. Often you find that other companies are paying more for your skills. If so, you have the justification to ask for a raise or find another job. For more info on job hunting, check our my post 11 Steps to the Job of Your Dreams.
2. Start a side business: My advice is to practice what Michael Masterson calls chicken entrepreneurship. Start a small business on the side. Stick to an industry you know well. Stick to your existing skills. Find a niche and identify their needs. Build your business around filling those needs. Start on a shoestring to minimize your risk. This topic is far too in depth to be discussed in this post, so look for it in the near future.

This morning my wife and I were talking about RSS. This is definitely a “told you so” moment. Several months back my wife told me “we need to look into this RSS thing.” I downplayed it, and didn’t see how it would improve my life. Why figure out a RSS reader when I only check a couple sites daily?

If the self proclaimed compute geek doesn’t understand it…
The funny thing is that I’m a computer geek. I always have been. Heck, I started programming back in 1982 on a TSR80. Nothing has changed since, and I still love playing with C# or Visual Basic.

Fast forward to today
I don’t know how I would get by without RSS. Once I started reading blogs it became invaluable. I can now keep up with the score of blogs I read daily in a quick and efficient manner. And now that I am a blogger, it makes it easier to reach my readers.

How RSS can save you time and make your life easier

1. It saves you time: It is much quicker to have all your blogs and news sites sent the info to you. No more surfing from site to site. And if you use a reader like Google Reader (my personal favorite) you can skim through the feeds quickly. Not interested in the topic? Skip it!
2. You are in control: You don’t have to give out your email address. No personal information. You simply subscribe and start receiving information. When you want to stop receiving the info, a few clicks and you are unsubscribed.
3. Simple: All you have to do is click on the RSS icon .
4. Privacy: Since you don’t give out your email address, you don’t receive spam. No more emails about increasing your libido. No more emails about fake Rolex’s. No more worrying about the loopholes in a site’s privacy statement.
5. You already use it: It may surprise you but you are already using RSS feeds. Do you have a Yahoo / MSN / Google homepage? Did you ever wonder at the modular design, and at how you could add other news sources, sports scores, stock info, and the weather? These are all RSS feeds.

• You can use a service like MSN, Yahoo, or Google and set up your homepage.
• You can use an aggregator like Bloglines.
• Use a stand alone reader like Google Reader (my favorite), NewsGator, or Feed Demon.
• Use Foxfire or the latest version of Internet Explorer. Both have RSS capabilities.
• Integrate into your email program. The latest version of Outlook comes with a built in RSS reader. If you use an older version, programs like NewsGator will work inside Outlook.

How do I sign up?
The easiest way is to click on the RSS icon . Most blogs use a service like Feedburner to make their feeds more accessible. Follow the direction and in a few simple steps the blog is delivered to your reader.