Author Archives: Craig Bailey

Feb 28 2014
7 Comments
Personal Success

Raising the Bridge

In a recent post (Raise the Bridge or Lower the Water?) I referenced the fact that financial independence involves raising the bridge (increasing income) and/or lowering the water (decreasing expenses). And, the fact that we can get there by taking either approach, but the path is MUCH shorter if we work it from both ends.

Since the prior post “began” coverage of lowering the water, we’ll now “begin” to cover raising the bridge (increasing income).

A key factor in raising our income is, well, doing MORE and being MORE than we are paid for. Said another way, we need to grow in, and then out of, our job! If we choose to do ONLY what we are paid for, then we are being paid for all we are worth, aren’t we? How can we expect a raise or promotion if we are ONLY doing what we are paid for? We haven’t shown any ability or motivation to get to that next level.

I’ll never forget a meeting I had with an employee, in which I asked her “Where do you want to be in 3-5 years?” She quickly and enthusiastically responded with “I want your job! What will it take to get there?” That was the best answer I could have hoped for, because if there wasn’t someone lining up to take my job then – I’d be stuck. I’d be stuck doing the same job with only “incremental” raises that come with that position / level in the company. I hate being stuck! Instead, I was able to leave that position in good hands  (in a relatively short period of time) and obtain a significant raise with broader responsibilities (because I too, had become bigger than my job).

So, the question: How do I go about growing in, and then out of, my job?

In addition to doing more than we are paid to do, on the job, we need to invest in ourselves, off the job.

A guideline I’ve heard is we should invest 3% of our income in our own personal development. The medium can include: books, audio programs (a car becomes a “university on wheels”), seminars and training programs. Most companies will pay for “some” of these. We just need to ask (and push). When an employer won’t cover the costs, we can pay for it out-of-pocket. It is our future, so we can’t use the excuse of “my employer won’t pay for this.” Another option is to find a new employer who WILL pay for continuing education. We do have a choice!

Certainly domain knowledge and expertise is important. But, are these the only factors? Absolutely not. My experience jives with the following quote:

“I will pay more for the ability to deal with people before any other ability under the sun.” ~ John D. Rockefeller

There are numerous resources to develop interpersonal skills. The absolute highest recommendation I can make on this topic is that we must each read, re-read and re-re-read the book “How to Win Friends and Influence People” by Dale Carnegie.

HTWFAIF

If you really want to take things to the next level attend a seminar on the topic. Again, your employer may pay for this, but if they won’t; go for it (out-of-pocket). Be Brave!

In future posts I will cover other approaches and key skills that are crucial to raising the bridge (increasing your income).

Note: I am in no way affiliated with “any” training or personal development firm and therefore reap no benefit by you attending, other than making the world a better place 🙂 I am making this training recommendation simply because it is an extremely powerful tool to catapult you in your career!

Feb 26 2014
5 Comments
Inspirational

How do you get through your day?

For every excuse that we have for NOT working towards or realizing our dreams, there are people who have done so despite unbelievable challenges. We all know of prime examples such as Helen Keller.

Watch this short video for a modern day example and inspiration.

A friend and business associate of mine, from the UK, just sent me the following quote, which I think is apropos!

“Any area of your life that is not empowered will be overpowered. If you don’t fill each day with high priority actions, your day will fill up with low priorities.  If you don’t clearly define, plan and pursue your highest aspirations in your career you will keep being positioned in low priority positions that are unfulfilling.” ~ Dr John Demartini

I hope this provides you a “shot in the arm” to help you “make it through your day” and realize that you too can achieve your dreams!

Feb 23 2014
19 Comments
Financial Success

Raise the Bridge or Lower the Water?

Financial independence involves raising the bridge (increasing income) and/or lowering the water (decreasing expenses). You can get there by taking either approach, but the path is MUCH shorter if you work it from both ends. We’ll talk later about raising your income (this takes a bit more time). Lowering your expenses, however, can begin RIGHT NOW.

A key factor to financial independence is not so much how much we make, as it is how much we keep.

There are a number of measures we can take right now to lower expenses. A first good step is to look at those (discretionary) expenses that are on auto-pilot. That is, we’ve subscribed to a service for which we are charged (automatically) each month.

Where I’m about to go some might consider sacrilegious. Chill – It takes guts (and many small steps) to achieve financial independence 🙂

We are too often “tricked” into the sales pitch (or excuse) that “it only costs $90 per month.” Let’s do some math. What is $90 times 12 (months)? Because I hate math, let’s just simplify and say this equals $1,000. That is $1,000 per year for that small expense. Let’s keep going…What is $1,000 times 10 (years)? $10,000. The question we must ask ourselves is “Am I willing to invest $10,000 in that small expense?” Make no mistake, those 10 years will pass (much faster than we think). Would we rather have the $10,000 to invest for our retirement, go on an exotic trip, pay (cash) for a portion of our child’s education? I certainly would rather have the $10k for those “options.”

What might that small expense be (for you)? One of them, for me, was cable TV. I’ll talk (freak some of you out) about others later.

One day I came home from a hard day’s work and saw my family sitting around the one-eyed monster (TV). I said, “Why am I working to pay for people to sit around my house killing time.”

I had recently talked to a good friend of mine (Mike) who conducted a science experiment. He put one of those antenna things on top of his house and was receiving digital signal “over the air” for several networks (including ABC, CBS, NBC, FOX and MORE)! I like to tinker with stuff, so I did my own science experiment (put up an antenna). And, it worked!!! I cut the cord with the cable provider almost a year ago. We no longer pay for air. I mean, it is free, all around us…

Yes, for a few weeks there were some “awe dads” to the effect of “you are ruining my life.” Being fair, there were some available options…Someone else in our household could pay for cable service, but it was NOT going to be me.

A common/fearful question is “will I miss the big games?” NO. The channels we receive broadcast (via crystal clear digital signal) the Superbowl, World Series, Olympics, etc. To be fair, we do subscribe to Netflix for a mere $7.99 a month which provides a TON of additional content (TV series, movies, documentaries, etc.). And, there is a bunch of free content available over the internet.

In summary, if we think short-term “it is only $90 per month” we are losing sight of the bigger picture (and impact on our financial future). The suggestion here is to take a look at your discretionary expenses that are on auto-pilot. It becomes too easy to let a company draw on your net worth. Frequently (every few months) review these to determine if there are opportunities to reduce or eliminate any. Doing so is a crucial step towards shortening your path to financial independence!

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