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Treating If-Only Syndrome

prescriptionWhat do you do when things don’t go your way? You may feel discouraged. The events of life may just sap your strength of spirit. You lose your mojo!

It’s hard to live your life on your own terms when you’re feeling down, but it’s only natural for us humans to have down days.

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One cause of this is what we call If – Only Syndrome.

If only I had finished college.
If only I got a different degree.
If only I had taken that job.
If only I hadn’t quit that job.
If I had only done this instead of that, my life would be so different.
If only. If only. If only.

It’s easy to do. We start to beat ourselves up. We may even feel sorry for ourselves and mope a little.

As with many things, the right thing to do isn’t the easy thing to do.

Fighting these urges is hard.
Getting past the past is hard.
Lifting ourselves up is hard.
Fighting our natural urges is hard.

Focus matters

We get trapped on what might have been. What might have been doesn’t matter at all.

What does matter is what is and what can be.

You can be a bigg success. You can live your life on your own terms starting today.

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georgeI struggled with this when I was younger. I dropped out of college. I went on to start three businesses. But every time things got a little rough, I would beat myself up for not getting a degree. I thought that if I just had that degree, I wouldn’t have these problems. But I was wrong!

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The prescription for If – Only Syndrome comes in two parts. The first part of the cure is a healthy dose of …

So what?

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marylynnTo continue with George’s example, say you didn’t get a college degree. So what? How many people have succeeded bigg without a college degree?

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We don’t mean to diminish the importance of a good education. It does open up opportunities that may not be open otherwise. But it’s just one factor.

What about your experiences? They are irreplaceable.

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Would you like more tips and tools to live your life on your own terms?
Subscribe to the Bigg Success Weekly – it’s FREE!

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Now along with a healthy dose of “So what”, drink a little …

What can be?

Sticking with the college degree example, why don’t you get one now if it’s that important to you?

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georgeThat’s what I did; I went back to school. It’s not a path I would recommend. It was hard! I still had my three businesses, but I did go back and get a degree. It’s interesting … I then went on to get an advanced degree because I didn’t think I would ever go back to school again. Had I gone the traditional path, I doubt I would have ever gotten that advanced degree.

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What can be for you?

How can you make it happen? How will you find the time? How will you pay for it?

When you begin to focus on the actions necessary to move to where you want to be, you’ll feel energized. You’ll feel hope instead of discouragement.

What do you do when you feel discouraged?

You can share that with us by leaving a comment below, calling us at 877.988.BIGG or sending us an e-mail at bigginfo@biggsuccess.com.

Thanks for checking in on us today. It means so much to us!

Please join us next time as we discuss one of the largest mistakes many people make when it comes to building their brand.

Until then, here’s to your bigg success!

 

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00363-040109.mp3

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Is Your Project Worth Your Money?

money If you’re like most bigg goal-getters, you have a lot of ideas. But how do you know which ones you should invest in? That’s what we want to talk about today – project selection.

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This process can be used for so many things. You could use it to decide if you should start a business. It would help figure out if you should expand your existing business. You could even use it to determine if it’s worth going back and getting more education.

To get started, you’ll need to make some projections, using assumptions, about the expected income and expenses of your project. The process itself is a science but the assumptions are definitely an art. It requires that you use your own judgment and the only way to learn how to do it is by doing it.

So let’s look at the two most common ways to determine if a project is worth doing.

Payback period

As its name implies, this method simply looks at how quickly you get your investment back. So if you invest $100 now and earn $25 the first year and $75 the second year, you have a two-year payback.

Payback is commonly used because it’s so simple. But think about it … it ignores all the money you could make after the payback period. And that can really skew your investing decisions. You choose projects that return your investment quickly and neglect projects that may offer greater potential but more patience. 

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Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

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Discounted cash flow (DCF)

Fortunately, there is a better way to calculate the worth of a project. With this method, you explicitly recognize that a dollar today is worth more than a dollar tomorrow. However, a dollar tomorrow is still worth something which isn’t recognized by the payback method.

It’s called discounted cash flow because we look at all of our expected cash flows and determine how much they’re worth right now by discounting them back to today. That is called the “net present value” (NPV).

Calculating the NPV is a four step process:

  • Determine how much you will invest by year.
    Usually most of your investment in a new project is made upfront (and probably in the first year). But if your project requires that you make an investment over a few years, you’ll want to account for that.
  • Estimate how much income this project will generate by year.
    Obviously, you don’t want to take on a project if it doesn’t increase your income. So look at how much you think you will make with this project and compare that to how much you think you plan to make without it. That’s your increased income from the project.
  • Decide upon your opportunity cost.
    Here’s where it gets a little tricky. Consider where you could invest your money if you didn’t invest it in this project. Weigh in how certain you are about your projections.
    For example, if you determined your project was no more risky than investing in Certificates of Deposit at a FDIC-insured bank, you could use the interest paid on those accounts as your opportunity cost.

Most projects aren’t that certain so your rate will usually be higher than that. Just remember – the less certain you are about your incremental income, the higher your opportunity cost.

  • Run the numbers in Microsoft Excel (or your favorite spreadsheet program) using the formula:

NPV formula

Example – Should I get certified?

We’ll offer an example so you can see this concept in action. Let’s say you want to go back to school to get certified. It costs $2,000 for the certification program. You expect to make an additional $2,000 a year if you do it. You plan to retire in three years so the increased income won’t benefit you for too long. You’ve looked at other opportunities and determined that you need to earn at least 6% on your money.

We see that your payback period is one year. That’s how long it will take to pay you back the money you invested.

Using DCF, your NPV is $3,157 as shown in this screenshot from Microsoft Excel:

Microsoft Excel set up screen shot

To get that, use Excel’s “Insert Function” command:

Microsoft Excel insert formula command screen shot

With DCF, the rule is: If NPV > $0, then invest in the project. After all, your expected return exceeds your expected cost. So in this case, your NPV is over $3,000. Therefore, you should go for it! 

If you want to know what your annual return is, just change the opportunity cost field in your spreadsheet until your NPV equals $0. In this case, your annual return is 83% over the life of the project.

In general, pick the projects with the highest NPV until you run out of money to invest. However, there is one important variable we failed to account for in this calculation – your time. We’ll discuss that tomorrow.

Thanks so much for stopping in to read our post today. Until next time, here’s to your bigg success!

 

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00321-020209.mp3

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5 Questions for Job Seekers in 2009

By Bigg Success Staff
12-15-08

2009

It would not be wise to base a career decision on a single year. However, if you’re looking for a job now or are considering a career change in 2009, you have to factor in the current conditions.
With that in mind, here are five questions to guide you through a career change now:

Is this career in an industry that is essential?

People will primarily spend money on necessities. Luxuries will be out the door for the most part. Even industries, that in past recessions have performed well, are predicting decreases in revenue. So think about what people have to buy.

For example, while there are reports of cutbacks by some healthcare institutions, most careers in health care should be relatively safe. New jobs in health care are driven by the aging population, and that will continue regardless of economic conditions.

Is it a cheaper substitute?

Consumers will be frugal in 2009 and perhaps beyond. So before you jump into an occupation, ask yourself if the service offers a cheaper substitute.

For instance, consumers will cut back on do-it-for-me and rely more on do-it-yourself. Finding a new job in a firm that helps consumers serve themselves may be more fruitful with most consumers pinching pennies.  

What’s the news?

When we think of 2008, words like “bailout”, “stock market crash”, and “credit crisis” come to mind. Think about the news this year for a hint of what will be hot next year.

As a case in point, careers that help individuals and companies wade through the financial and legal hurdles of their debt will likely be strong.

Is it a long-term trend?

Education is expected to remain strong, especially at the college level. In fact, enrollments are expected to rise, fueled by a large number of college-aged young people, increased desire to get a college degree, and more adults returning to school. Educational institutions are expected to hire to fill this demand by their patrons.

Expand your mind to the possibilities

You may be reading this article because you’re looking for a job right now. You may be considering a career change. In either case, before you do your own research, consider what the future holds.

We found a great article that discusses top careers in 2012. That’s not that far away, but some of these jobs sure do seem far out!

Oh, and now for the fifth question –

What career matches an opportunity with your passion and talents?

Some recommended reading on Bigg Success to help you find your passion and talents:

Your Personal SWOT Analysis (Part I)

Your Personal SWOT Analysis (Part 2)

Back to the Future: Visualizing the Life You Want (Part II)

Once you know the answer to this last question, you'll be on the right career track for you!

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Get the tips and tools you need to be a BIGG success!
Subscribe to the Bigg Success Weekly – it’s FREE!

Hear today's lesson and laugh on The Bigg Success Show. 

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I Don't Know How to Spell Millionaire, But I is One!

On the show, George shared a story from when he was a young man. So, obviously, this is an old story! He met a gentleman who was very successful in business and real estate investing. But you wouldn’t have known he had a dime to his name.

George said he can still picture this man sitting at the table in his coveralls with his cap. He was a great guy who said something George never forgot.

This man said, “I don’t know how to spell millionaire, but I is one.”

How did he become a millionaire?
He bought something!

Not a new wardrobe. Or a bigger house, a new car, a second house, or a boat.

He bought an income-producing asset. He bought a duplex.

What he bought is important
He put down a small amount of money and found a bank that helped him finance the rest of it. He improved the property by doing minor things like painting, putting down new carpet, and some basic landscaping.

So now he had a property that looked much better. So tenants were willing to pay more to live there. So he increased the rent.

Then he went back to the bank because he was making more money. They gladly refinanced his loan, because the income from the property would support it.

What he did next is even more important

He took this money from the bank and bought another investment property. A slightly bigger one. Which he then improved. He kept doing this over and over again until he became a millionaire. Eventually he owned a whole bunch of things.

What you don’t need to become a millionaire
You don’t have to be that smart to become a millionaire; just be sensible. It also doesn’t take that much money to get started. You don’t have to be a super savvy business person. And you don’t have to have a fancy education, although education is a good investment.

And you don’t have to wear flashy clothes!
 
4 tips that can lead you to a million dollars

#1 – Start small.
Don’t bite off more than you can chew. Assume you’ll lose everything, so don’t invest more than you can afford to lose.

#2 – Know your strengths and weaknesses.

Get help. If you’re handy, find someone who is financially savvy. If you’re financially savvy, find someone who’s handy. If you have time but no money, find a partner with money. If you have money but no time, partner with someone who has the time.

#3 – Make yourself accountable.

The CEOs of the biggest companies in the world answer to a Board of Directors. Get someone who will hold you accountable – be it a mentor, a coach, or a partner.

#4 – Logic, not emotion, rules.

Don’t fall in love with a property. You’re not looking for cute; you’re looking for cash flow. Don’t rent to a tenant because you like him or her; rent to them because of their good credit score.

Our bigg quote today is by Brian Koslow:

“Any self-made millionaire listens for opportunity. The average
person listens for what's wrong and why something won't work.”

Paying attention may just pay you a million!

Click on our Comment link below to share your thoughts 
Click on the Share This button below to Digg, Stumble, Mixx, etc.

Next time, we’ll offer up nine questions to answer before you make extra mortgage payments.

Until then, here’s to your bigg success!

 

Related posts  

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BIGG Success Logo boxed

I Don’t Know How to Spell Millionaire, But I is One!

On the show, George shared a story from when he was a young man. So, obviously, this is an old story! He met a gentleman who was very successful in business and real estate investing. But you wouldn’t have known he had a dime to his name.

George said he can still picture this man sitting at the table in his coveralls with his cap. He was a great guy who said something George never forgot.

This man said, “I don’t know how to spell millionaire, but I is one.”

How did he become a millionaire?
He bought something!

Not a new wardrobe. Or a bigger house, a new car, a second house, or a boat.

He bought an income-producing asset. He bought a duplex.

What he bought is important
He put down a small amount of money and found a bank that helped him finance the rest of it. He improved the property by doing minor things like painting, putting down new carpet, and some basic landscaping.

So now he had a property that looked much better. So tenants were willing to pay more to live there. So he increased the rent.

Then he went back to the bank because he was making more money. They gladly refinanced his loan, because the income from the property would support it.

What he did next is even more important

He took this money from the bank and bought another investment property. A slightly bigger one. Which he then improved. He kept doing this over and over again until he became a millionaire. Eventually he owned a whole bunch of things.

What you don’t need to become a millionaire
You don’t have to be that smart to become a millionaire; just be sensible. It also doesn’t take that much money to get started. You don’t have to be a super savvy business person. And you don’t have to have a fancy education, although education is a good investment.

And you don’t have to wear flashy clothes!
 
4 tips that can lead you to a million dollars

#1 – Start small.
Don’t bite off more than you can chew. Assume you’ll lose everything, so don’t invest more than you can afford to lose.

#2 – Know your strengths and weaknesses.

Get help. If you’re handy, find someone who is financially savvy. If you’re financially savvy, find someone who’s handy. If you have time but no money, find a partner with money. If you have money but no time, partner with someone who has the time.

#3 – Make yourself accountable.

The CEOs of the biggest companies in the world answer to a Board of Directors. Get someone who will hold you accountable – be it a mentor, a coach, or a partner.

#4 – Logic, not emotion, rules.

Don’t fall in love with a property. You’re not looking for cute; you’re looking for cash flow. Don’t rent to a tenant because you like him or her; rent to them because of their good credit score.

Our bigg quote today is by Brian Koslow:

“Any self-made millionaire listens for opportunity. The average
person listens for what's wrong and why something won't work.”

Paying attention may just pay you a million!

Click on our Comment link below to share your thoughts 
Click on the Share This button below to Digg, Stumble, Mixx, etc.

Next time, we’ll offer up nine questions to answer before you make extra mortgage payments.

Until then, here’s to your bigg success!

 

Related posts  

40]

219]

199]

489]