Hack My Life

The Difference Between Prosperity and Poverty

Photo Credit: MargoLuc

I have been re-reading Your Money or Your Life by Joe Dominguez and Vicki Robin. In my opinion this is the one personal finance book that everyone should read. Instead of focusing on earning, saving, or investing this book focuses on your relationship with money. Once you have a clear understanding of that relationship, you empower yourself to make the life changes needed to put you on the path to the life you want to live.

There was a line that really hit me this time through the book:

So much dissatisfaction comes from focusing on what we don't have that the simple exercise of acknowledging and valuing what we do have can transform our outlook. Indeed, some people would say that, once we're above the survival level, the differences between prosperity and poverty lies simply in our degree of gratitude.

Most people see prosperity as a financial measure, but you can measure it in so many other ways. By focusing on what you have, you may see that you already live a prosperous life whether you are a millionaire or not. Everyday you will see examples of how fame and fortune do not buy happiness. Celebrities are in the news all the time for affairs, drug usage, criminal activity, and premature deaths.

When you think back over your lifespan, we all have highs and lows, but the times that often stick out most as being the happiest were often when you had the least. In my college years I was scraping by financially but my life was filled with so many wonderful adventures. The spontaneity of a life not weighed down by things and responsibilities brings such great joy. Your Money or Your Life will lead you on a path to financial independence, a path that will return you to the life of spontaneity and happiness.

Check out the New Road Map Foundation, a site by the authors based on the steps discussed in the book.

Conflicting Advice

Photo Credit: PhotoJonny

From Driven by Paul R. Larence and Niten Nohria:

All of these events [debunking of belief systems] have led people to a cynical and severely skeptical view of the world and even to a loss of faith in the possibility of further human development and progress. This has led them to a refusal to believe and to a fear of any general explanation of human existence or positive vision of the future. 

This segment was taken from a chapter discussing the intersect of the drive to defend and the drive to learn. Humans in general have a drive to learn and make sense of the world. This is what leads people to religion, science, spirituality, communism, etc. The last 150 years according to the authors has been a story of debunking on belief system to another. This has lead to an existence where out of self defense, people choose not to have a system not based on belief but of criticizing others' belief systems. I will admit that I to fall habit of this from time to time.

This behavior unfortunately expands well beyond the search for meaning, here are some other areas that people fall victim to a sort of paralysis by analysis:

Diet

No matter what you choose to eat, like eggs for example, there will be one "expert" saying eggs are good for you and another "expert" taking the opposite stance. A person trying to eat a healthier diet does not know who's right and just gives up and returns to their diet of high fructose corn syrup that the government, through corn subsidies, says is good for them.

Exercise

Cardio, weight training, yoga, pilates: which should I do to lose weight? The whole fitness industry is a sham. Magazines will tell you to do start running one month and the next month they tell you its bad for your knees. Then they tell you to use machines instead of free weights because you are less likely to hurt yourself, but the next month they tell you to use the free weights because the machines don't use all the stabilizer muscles. The idea is to keep you confused so they can move you from one product to the next keeping sales high. Those trying to lose weight end up back on the couch because of all of the conflicting stories even when picking one thing, anything, and sticking to it would be better.

Environment

Paper bags waste trees, plastic bags are made from oil cause us to go to war, disposable is better because you use less water, reusable is better because it keeps disposable crap out of the landfill. A very similar problem to that discussed above in exercise. The best solution could be to not buy anything, but the retailers would never tell you that!

Domestic or Foreign; Local or Global

Foreign products come from sweatshops; Any money is better than what they had before; Buy domestic to keep jobs here; Domestic labor unions drive up prices and bankrupt companies with pension plans that ultimately require a government bailout; I just can't buy anything any more without feeling guilty!

The list goes on, and on, and on. What to do? Stop listening to people. Turn off the TV, computer, radio, and anything else that bombards you with advertisements. Go on a low information diet. Spend the time that you would normally be wasting doing one of these activities and instead reflect on what you truly believe the right answer is. Come up with your own belief system, one in which only you can debunk as you advance through life. Stop letting others determine what you think. 

-Rex

Knowledge: Pass it on

Photo Credit: tinaylin

Productivity improvements are limitless. There is no limit to human ingenuity. Everyday someone finds a better way of doing things - Jack Welch, Former CEO of General Electic

What would life be like like without the Airplane, Internet, Telephone, and Refrigeration? These were all inventions of the 20th century. Lets bring it back a little ways. What would like be like without: the wheel, language, alphabet, and the decimal system? These were all invented at some point in time. What if the inventor kept the idea to himself? Two drives discussed in the book Driven by Paul R. Lawrence and Nitin Nohria are the drive to learn and the drive to bond. The drive to learn is what makes humans innately curious about how everything functions in there environment. An improvement in productivity always helps the inventor, but if he does not share the knowledge it will pass along with the inventor. It is when the drive to learn combines with the drive to bond that creates these great intellectual leaps for man kind.

All inventions come from an individual scratching the itch of curiosity. We all have at some point or another developed a method of doing something more efficiently. Many times, however, the thought never occurs to us that someone else could find this useful as well. The internet has made the facilitation of such information easier than it has ever been. Here are some ways that you can pass your knowledge on:

Blogging

A blog is defined as a frequent chronological publication of personal thoughts and web links. It is essentially your own personal soap box. Write about anything you want. Give your commentary on politics or the economy, discuss the goings on in your industry, give tips on a subject that you have knowledge in. I wrote about a problem that I solved last week.

Wikipedia

Wikipedia is an openly-editable encyclopedia written collaboratively by largely anonymous volunteers. Anyone can write or edit an entry which are constantly monitored by editors and the multitude of users. If you are an expert in a certain field or subject, check out the wiki pages for that subject and see if anything could be added, cited, or updated.

Instructables

Instructables is a very interesting site. It is an online community in which users submit step by step image and text instructions on how to make or modify something. Many of the items my seem trivial to you or something that you would not have use for, but there are a few gems here for everyone. Check out the forum as well. Users will submit an idea they have, and the community members will go to work trying to create it. This often ends up with a new Instructable.

Open Source

Open Source is like Wikipedia in software form. It is software that is developed and distributed with access to the source code. Users can then correct glitches or add any modifications they find necessary and re-release the software. For any commercially available software there is an open source equivalent that is in most cases as good if not better. Since there are legions of home developers always working and adding to the software, security loopholes are quickly shut and new features are constantly being added.

YouTube

YouTube as taught me how to repair my television, X-Box, and car. It is the video version of instructables. Are you an expert in a subject? Submit a lecture or seminar to YouTube. Making a repair around the house? Have someone follow you with the video camera documenting your steps. Preparing your specialty dish? Yes Please! Submit that too, I am always looking for new meals. 

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This is partial list of the many ways in which you  can inform the multitudes of your new invention or idea. what are some of the methods you use?

-Rex

A Toast to Toastmasters

I am a member of a very vibrant Toastmasters club. Toastmasters is a group that teaches speaking and leadership skills through peer to peer evaluation. Most people think of it as an organization in which you go to practice public speaking. In my first year with the program I have found that Toastmasters is much more than that. Below is a short list of the ways that I have benefited from Toastmasters.

Confidence

I have an increased confidence and not just with speaking. At our club, members are encouraged to walk around and personally greet every member and guest in the room. This practice has given me the confidence to walk up and introduce myself to new people in other social and business settings. I have developed many new relationships that may have never occurred due to my prior shyness.

Introductions

How often do you meet someone only to forget there name immediately? At our club meeting, each member introduces another member or guest to the rest of the room. You also give a little nugget of information about this person. Assigning a piece of information to a face and a name really allows the person to sink into your memory.

Impromptu Speaking

Besides the prepared speeches, there are plenty of opportunities for impromptu speaking. One such opportunity is the Table Topics session of the meeting. A question is asked and then a member is called upon to answer it. This simulates real life events in which you may be caught off guard with a question such as in a job interview, or from your kids "where do babies come from?", etc.  In addition to Table Topics, there are also the verbal speech evaluations and explanations of functionary roles. Speech evaluations are a two to four minute improvisational mini speech in which you provide commentary and suggestions on one of the prepared speeches. The functionary roles are predetermined but members often put there own spin when called upon to give an explanation for newer members and guests.

Listening

The functionary roles of ah counter and grammarian provide unique opportunities to improve your listening capabilities. As the person performing one of these roles, you have to listen intently to every speaker and report later on what was done well and what or who could use improvement. Each member also gives a written evaluation each prepared speech. To give an effective evaluation, you must pay close attention to speech structure, grammar, body language, and a multitude of other factors that go into giving a quality speaking performance.

Leadership

There are plenty of leadership opportunities in Toastmasters. You can be a Toastmaster of the meeting: organize the meeting scheduling speakers, evaluators, and other roles. You can be elected to an officer position of the club. There are several members of a clubs executive committee that coordinate events on a club level. You can also move up to leadership positions in the organization at a district level and above. Leadership opportunities are endless.

Networking

Between club, district, national and international events, Toastmasters is a great venue to meet people from all different backgrounds and industries. Besides meeting some great people on a personal level, my involvement with Toastmasters has led to multiple side jobs.

Community Service

Many Toastmaster clubs are active in the community teaching communication skills at schools, homeless shelters, and community centers. I personally had the opportunity to work with some local high school students in preparing speeches for competition. It was amazing to work with such talented young speakers. There is a saying "To teach is to learn something twice", I could not agree more.

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As you can see, Toastmasters is much more than public speaking. It is also a great value. Personal speaking and leadership coaches can cost thousands of dollars. The toastmaster dues for my club is under $100 a year. Check out the Toastmasters website for more information about the organization and to find a club near you. 

-Rex

How to Give a Compliment

Photo Credit :stevendepolo

Most of us have identity and self-esteem issues. We don't like what we see in the mirror, we are constantly paranoid about what people might be saying about us, and we place low value on ourselves as individuals and our work. This is what makes it difficult for people to give and receive complements. We are afraid to give them because we think the receiver will take it the wrong way, and we assume the person is being insincere when giving us a compliment.

Compliments are very important, however, because if given the right way they can make the other person happier. Working, living, and associating with happy people will elevate your mood as well. So, how can we compliment someone in a better manner?

Be Selective

When you complement someone, you want it to mean something. Do not be effusive in your praise to someone. If you compliment someone every time you see them it will stop being praise and at a point start becoming brown-nosing. Constantly complimenting someone waters down the value. If you are selective and choose the right moment to issue a compliment it will carry more weight.

Be Specific

When you compliment someones appearance, pick a specific part of their outfit or a certain characteristic about there hair and makeup today. Don't just say you look pretty. Complimenting a specific trait shows that you are attentive and genuinely care. Same goes for complimenting an action or a performance such as there work on a project. Pick out something distinct and explain how this action effected you in a positive way. 

Location

Complimenting a person in public requires a different strategy than complimenting someone in private. In a crowd, people are often more defensive and may take the compliment the wrong way. Even if you have the best intentions, what you say may be misunderstood. Be extremely particular with your word choice. In private, people will let their guard down and be more receptive to what you have to say.

Body Language

Body language is crucial because much of what someone is communicating shows up through body language rather than words. Pay close attention to your smile, eye contact, and touch. People notice when you roll your eyes or put up a phony smile. Do not compliment someone unless you truly mean it because your body language will tip the other person that you are being insincere.

This post was inspired by an article from Elizabeth Bernstein of the Wall Street Journal titled Why Do Complements Cause So Much Grief?

Why does this post suck? Because I was multi-tasking.

 

Photo Credit: susanvg

Think you are a good multi-tasker? Think again.

Since you are reading this post, I will assume you are at a computer. You probably have many different applications going on right now and many more processes running in the background. It would appear that your computer is an excellent multi-tasker. What the computer actually does however, is line up the processes and loops through them one by one, spending a fraction of a second on a process, executing the next step, and moving on to the next process. The loop is executed so quickly that to the human eye, it appears the computer is multi-tasking.

Now the sample computer just described is using a single core processor. A duel core processor can handle two processes simultaneously and so on.  Each core can be considered a "brain" in the computer. A quad-core computer has 4 "brains". The last time I checked, humans still only have one brain and therefore function in a similar matter to the single core processor. The only difference is computers can block out other distractions more efficiently than humans. Computers don't make errors.

When a person attempts to handle multiple processes, to continue with the computer lingo, simultaneously we end up performing each task slower while increasing our odds for error. There is plenty of research to prove this, which is why many states are passing laws regarding using cell phones while driving. It is too dangerous for us to attempt to perform both tasks at the same time.

Multitasking will not increase your productivity but rather inhibit it. Batch work and uni-tasking, focusing solely on one task will produce better results at a faster rate.

Remember that doing two things at once is doing two things poorly.

-Rex

For more info on not multitasking check out these sites:

Zen Habits

The Minimalist Path

Getting Things Done an excellent resource for tips on batch work

Four Hour Work Week 

Articles on the inefficiencies of human multi-tasking

Human Multitasking

Think Your Multi-tasking, Think Again.

Multi-Taskers bad at Multi-Tasking

Improvise and Save

Necessity who is the mother of invention - Plato

Most people spend more time and energy going around problems than in trying to solve them. - Henry Ford

I had a problem. There was not a single cup holder in my car. This may seem like a trivial problem to some, but try steering, changing gears, and holding a hot cup of coffee all at the same time. I drive a very small early 1990's Japanese sports car. Apparently at the time the great people at Nissan Motors thought cup holders were not that important to their customers. If there was one thing American car companies had right, it was putting in at least 2 cup holders per passenger in each vehicle. But I digress, I had a problem and I needed a solution.

Option A would be to buy one of those cup holders you can hang on the door. This was not a very good solution as I am 6'1 so I barely fit in the car as is. I would be bumping into that cup holder all the time and most likely knocking over the drink.

Option B would be to buy a new car. This seems a little drastic, but desperate times call for desperate measures.

Which option did I choose? Neither! I put my thinking cap on and created a solution. A picture of it is below:

Yes that is exactly what it looks like: A disposable drink tray carved up to fit into my armrest console. It is fully functional, the lid still closes and everything. I even scotch guarded the thing in case I ever had the need of an iced drink. Cardboard and condensation don't mix well.

We all have little problems like this that bother us and no matter how trivial they seam to others, they are big to us. For me it was a vehicle lacking cup holders, for you it is probably something completely different. Instead of solving these problems, most people turn to one of two things: complaining or consuming. The answer however may be right in front of you in the form of a free drink tray, all we need to do is use a little imagination.

-Rex

The Drive to Acquire

The book Driven, by Paul R. Lawrence and Nitin Nohria, describes the four innate drives that are hardwired into human beings. The first of these drives being the drive to acquire. There is a basic level of acquisitions that we all need to make in order to survive: food, shelter. water, etc. What other ways does the drive to acquire manifest itself?

Currency

Currency could be considered a regular good, but I think it should be separate because it is what modern man uses to facilitate his acquisitions. Recall that currency is anything that is commonly accepted in exchange for goods or services.Theoretically, currency is the ultimate acquisition because it allows the acquisition of anything listed below with possibly the exception of status.

Regular Goods

Regular goods consist of food, clothes, shelter, and other items necessary for survival. The authors also include pleasurable activities eating, entertainment, and sex in this category. So books, movies, alcohol, and other items used for entertainment value are considered a regular good.

Positional Goods

Positional goods are goods that are acquired to express our socio-economic status. Shoes for example: Everyone needs a pair of shoes, but purchasing a pair of Jordan's or Manolo Blahniks would be considered buying positional goods. Artwork is the example used in the book. The value of art does not lie in the intrinsic value of the good, but whether the piece of art is popular with the right crowd. The demand of the artwork goes up as the price goes up.

Social Status

Along with positional goods, you can seek social status by achieving certain positions in the workplace, being elected to public office, or becoming acquainted with the certain individuals. Status seeking is a unique because what is considered popular one minute might be detrimental the next. Especially in a field such as politics. Consider President George W. Bush's popularity ratings shortly after 9-11, they were through the roof. Candidates running for office at that time were digging up any possible way they were connected to the presidents policies and running on that as the basis of their campaign. Towards the end of his time in office however his ratings were low and all candidates running at that time were distancing themselves as much as possible.

Experiences

There are certain groups of people who forgo material goods and instead focus on collecting experiences. Backpacking across Europe, eating escargot and going skydiving would all be examples of this. Instead of belongings, they focus on memories.

Longevity

Life is one asset we all will run out of. People in the experience are often those who try to "Get the most out of life" and "live life to the fullest", those who fall in the longevity category try and extend there lives as long as possible. They often focus there energy on learning about proper diet and nutrition, what is the best exercise plan, and ensuring proper amounts of rest. 

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I personally fall into the experiences and longevity category. I currently have all of my basic needs met so I try and focus experiences and relationships. I also an avid runner, exerciser, and pay very close attention to what I fuel my body with. I would much rather go for a run in the mountains than buy new iPad and show it off. The drive to acquire to some extent is based on the desire to attract a partner, it is also important to acquire during feast so we can survive during famine.

At a certain point however the drive becomes to strong and all we are left with is greed and envy. Why after our needs are met is this drive still so strong?

What other categories would you add to this list? Which categories does your drive to acquire fit into?

-Rex

Productive or Active

Photo Credit: ckaiserca

Many of us while at work will look for meaningless busy work just to help us get through the day. If we can stay active the time might fly by faster. I will often read emails sent to my inbox that are absolutely meaningless to my position just to look like I am staying busy. Staying busy however is not necessarily being productive. Take a look at your routine tomorrow: How much of what you are doing is actually working towards goals that you have set for yourself? Are you making progress towards anything, or are you just staying busy and collecting a paycheck? Lifestyle design expert Tim Ferriss suggests when you get stuck in an active rut to make two lists:

1. Define a very short "To Do" list
2. Define a "Not To Do" list

Let's start with the to do list. The shorter the better. Leo Babauta of Zen Habits suggests that you kill your to do list and have a to do item. When you wake up in the morning, write down the ONE thing that you absolutely want to get done. Don't put something simple like "brush my teeth", put down something challenging that has been festering in the back of your mind. Something very important that has been keeping you up at night. The one item list allows for complete concentration by clearing out all distractions. David Damron at The Minimalist Path has talked about keeping a list of three items or less. The idea here is that the shorter the list is the better. Having a long to do list keeps these tasks in your mind and you begin to think about way to many things at once. Keep a clear focused mind, and you will see results.

Now we move on to the "Not To Do" list. Put down stuff here that you constantly turn to when you fee overwhelmed. Tasks that you do just to make it through the work day: reading email, arranging file folders, updating contact information, etc. All these items may be important at some point, but they should be handled in batch fashion. Collect a pile of several contact updates before sitting down to enter them in.

This week at the office or in the field, with each new task you perform, ask yourself: Am I being productive, or just active? Am I just staying active to avoid tackling important tasks?

Don't catch a case of the Mondays.

-Rex

Hundred Goals' Blog Carnival #2

This blog has been featured in Hundred Goal's Blog Carnival #2. Hundred Goals is one of my favorite blogs around. The author Steven his listed 100 hundred goals that he would like to achieve during his lifetime and is writing about his financial journey in achieving those goals. Here is a list of the articles featured in the blog carnival so far:

Untypically Jia - A blog about Jia's journey to accomplish her goals while overcoming axiety, OCD, and infertility. Her most recent post is an entertaining tail about how she met the love of her life.

A Rebuttal to the Latte Factor - The article discusses the benefit of that daily latte that is so commonly harped on by personal finance gurus.

Car Negotiation Coach - If you have any questions about buying or selling a car, Geoff is your man. His most recent post Trade It, Junk It, or Give it to Charity poses some solutions on what you should do with your old car when buying a new one. The post is complete with an exceptional flow-chart which I have printed out for future use. 

Let-Off - A blog about living ethically. Steven the author is currently embarking on a bike odyssey in which he is raising money for a homeless shelter.

The Habit of Becoming an Early Riser - FastHabits Blog writes about developing discipline and positive habits. This post list steps you can take to overcome your snooze button and become an early riser.

Boykie Mackay - A blogger focused on developing a well laid financial plan, and now a fitness plan, to help him on his path to a happy and successful life. 

The Lunacy of the Literary Mind - It’s a place where Erin, blog author and avid reader,  poses questions on unique and often overlooked topics for readers as food for thought and discussion.

Please check out carnival and these great blogs!

-Rex