Health

Not getting The promotion

You Did Not Get The Promotion, Now What

Money Maroon

At some point in our lives, if you are an employee, a worker for pay, you will miss out on a promotion in view of someone else. This other person may be a current coworker or someone from outside the company. In either case, it will leave you wondering, why. Especially if you believe that the person receiving the promotion is less experienced and/or less qualified.

Be Graceful

Once a promotion has been given to another, congratulate that person. Rise above your feelings of disappointment and be professional. No matter how you may be feeling, your reputation matters. Do not come off as unprofessional or as someone who do not know how to deal with disappointment. By not being graceful or lashing out because you were passed over for a promotion, you may be confirming that you are not mature enough for the role. Be graceful, even if it is difficult.

Evaluate Why You Did Not Get The Promotion

If you missed out on a promotion, you will be hurt. This feeling is normal. It does not matter whether or not you really wanted the position or not. Just being rejected will have an effect. While you may be hurt, you must try to be objective. Was the chosen person better for the role? Where you misled about what is required for the role? Do you think that you were treated unfairly in any way?

If in the end you were objectively not the best person for the position, if you really want this position, it is time for you to add to your skillset. Work toward a direction that will get you where you need to be.

On the other hand, if you were truly the better person, find out why you did not get the role. Is there a bit of favoritism or some other isms at play? Did you have the credentials, but others did not believe that you were qualified or ready? If this is the situation, it may be time to begin advocating for yourself. Begin to show who you really are and what you know. At times, the most qualified person may not get the position. The role typically goes to those who promote themselves. Lots of idiots have been promoted because they know how to play the game.

Ask For Feedback

Ask for feedback. If you did not get a role that you believe that you are qualified for, ask for feedback. Note that most managers are terrible at giving feedback, so try to read between the lines. At times, when you ask for feedback, your manager may justify the case for the other person being promoted, without actually giving you the feedback you asked for. So read between the lines. 

Some managers will provide adequate feedback and provide a roadmap to being promoted.  This rarely occurs, but it does. When you have such a manager, you are very lucky. You are more so lucky if the roadmap provided actually leads to a promotion.

Some managers will flat out tell you that you did not get the promotion because you are needed in your current role. If this happens to you, it may be time to leave. It essentially means that you are too good at your job. The company is not incline to promote you and train two people to do your work, when they can simply keep you at that position.

Some managers may even say that you will be up next or there was a business need for a specific skillset or there will be more opportunities in the near future. It will really be up to you to believe if this is truly the case or not. Many employees have been strung along in the past with the promise of a position opening up or an opportunity that is just on the horizon. Be careful in how you approach these promises. Many times, these promises are only lip service for you to calm down and to move beyond your disappointment.

Review The Landscape

In your evaluation of why you did not receive the promotion, review the landscape. Were you best placed for the role? For example, were you told not to apply, encourage not to apply or told that there are certain requirements but then the chosen individual did not fit the announced requirements? There could be more at play here.

Take a step back and look at the individuals in the role that you did not receive. The requirements posted about the role may just be a preference but not really a requirement. The most important characteristics may not actually be posted. By looking at who previously occupied the role, or who currently occupies that role, you can gain a lot of information. 

Some corporations have a certain type that is elevated to certain positions. That may be education level, select schooling, sex, race or demeanor. When you look at the role you missed out on, do you fit? This is a real question and you must be honest with yourself? If you do not fit the role, it may be time to leave as it is unlikely that you will ever be elevated to that position.

Improve Yourself

If you received a road map that will lead to a promotion, if you believe that the recommended action would lead to a promotion, follow that path. Also, seek to improve yourself for the job you want with your current company but also for another company. Work to improve yourself not only for a promotion but also to better yourself. Take additional classes in an area. Volunteer for new assignments. Work across departments. Make your resume the best it can be for your future role or new job that you may be interviewing for in the near future.

Didn’t Get The Promotion, Leave!

If you believe that you were wronged, or you see your non promotion as a pattern of activities, begin your task of leaving. Many times when we work for a company, we may hear stories and rumblings of who is being promoted. It may not bother you at first because it was not affecting you, but once it affects you directly, you may see things a bit differently. If you are in this situation, know that this is how your company works, and they will likely not change. As such, it may be time for you to leave.

This does not mean announcing that you will leave or making an ultimatum. Simply prepare your resume and improve yourself. Over the next few months, keep an eye on job openings and apply. When the time is appropriate give your two weeks notice and move on. There is no reason for you to stay in a toxic environment. Especially if your non promotion begins to impact your mental health.

At times, once you give your two weeks notice, you may be offered a higher salary, you may even be offered a new role. Whether or not you stay at your current company or leave is up to you. But note and keep in mind what it took for the company to come up on your salary or offer you the new role. You had to threaten to leave. Will this be required going forward? This also does not bode well for you when times are hard and the company performs a reorganization to cut headcount, it is highly likely that you will be cut.

Conclusion

At some point in our lives, if you are an employee, a worker for pay, you will miss out on a promotion in view of someone else. This other person may be a current coworker or someone from outside the company. In either case, it will leave you wondering, why. Especially if you believe that the person receiving the promotion is less experienced and/or less qualified. In these situations, be graceful, evaluate why you did not receive the promotion, ask for feedback, improve yourself and if necessary, leave.

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Video Summary

Jealous friends and your wealth

Jealous Friends And Your Wealth

Money Maroon

While you are focus on your financial objectives, you may lose sight of one very important aspect, your friends. Based on the people around you, can you or will you be able to truly enjoy your wealth? Would your friends be happy and congratulatory of you achieving your financial objectives? Put simply, do you have jealous friends. 

Here, the assumption is that you are not purposely flaunting your wealth to belittle your friends. If you are doing this, then you are the bad friend, and your friends should be distancing themselves from you.

Money Changes Friendships

It is understandable that as time progresses the dynamics of our relationships change. Some friends will grow with you while others will grow away from you. But for those that you aspire to be apart of your life for the near and foreseeable future, how will they react to your wealth or you achieving financial independence? 

You will likely believe or have heard the refrain that true friends will not care. But the fact is, this is wishful thinking. Money changes the dynamics of all relationships. Just do a general search on the internet and you will see what I am talking about. As you transition in life, few of your old life will be with you in your new life.

While I know this, I do hope for you and me, that we are able to navigate achieving our goals and continue to have current friends around us that cheers us on. 

Cheap

If your aim is to achieve financial independence and you have tried to balance your expenses by trying to limit your spending, you will be called cheap. You will hear it multiple times from certain friends who may not completely understand what you are doing. You will be mocked for wearing the same pants or shirts that you have had for years. You will have to endure others around you having newer things, but if you are really about attaining your goal, you will not care. 

But a funny thing happens as you get closer to your goals. All the mocking and jeering will fade away to real questions. How close are you to retiring? What do you think about this financial move, what do you think about that? Your friends will have real interest in what you are doing. They will want to get to where you are, but there is an issue. You have been sacrificing and working on this path for years while they are seeing the end results and wanting that result.

This is where issues may develop.

Real Friends

As your dreams begin to come true, your real friends will continue to cheer you on. 

What I am saying here is that if you are low key, you will continue to be low key. If you believe in stealth wealth, you will likely continue to do the same things with slight changes. If you have achieved financial independence, well, you may change jobs or begin to pursue other things. It is unlikely that you will tell your friends your net worth. However, your real friends will know that you have enough based on your actions.

But your other friends may not see it that way. They will say that you have changed. If you decide to upgrade after being frugal comments will be made. You may also be accused of thinking that you are better than others. Overtime, some friendships will become strained.

Resentment may come from comparison, sometimes it may be linked to your friends own self-esteem and the way they view themselves. Especially if you and that friend started at the same financial point or you were from a lower economic position but have now surpassed them.

Real friends or jealous friends - friends jumping in the sun
Really friends or jealous friends

Why You May Have Jealous Friends

Some friends will be jealous friends because they do not want to see others, not even a friend, do better than they are doing. Some jealous friends are jealous because they love to cause chaos. Misery loves company. But if you have friends who have been with you for a long time and they become that jealous friend, it could be a matter of envy because you had the confidence to take the risks and make the sacrifices to achieve your goals.

How To Solve Or Preempt Jealous Friends

To prevent jealous friends, be aware and have the tough conversations. As you embark on your journey to financial independence and early retirement, note that not everyone is on the same journey. Be conscious of this. While you may be ostracized at first, note that the lifestyle that you will build for your family will likely be the envy of others. 

Once you have achieved your goals, you will likely have amply free time and the financial resources to do as you choose. You will be able to travel, do a job that you want, and spend time with family. You will be able to more so do the things that will make you and your family happy. Who doesn’t want that? This is all while your friends are toiling at a job that they hate and potentially have a life that they do not want. Be conscientious of this. Be understanding.

When friends ask about what you are doing, try to be patient and explain, do not judge their lifestyles. Do not fall into the “I told you so” mantra. 

Above all, live your life as they live there’s and if a friendship needs to end, it needs to end. Do not put yourself or your family in a terrible situation to maintain a hostile friendship.

Conclusion

While you are focus on your financial objectives, you may lose sight of one very important aspect, your friends. Based on the people around you, can you or will you be able to truly enjoy your wealth? Would your friends be happy and congratulatory of you achieving your financial objectives? Put simply, do you have jealous friends. 

Whatever the situation, do what is best for you and your family.

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Video Summary

Friends

Friends Influence Your Success And Wealth

Money Maroon

Show me your five closest friends and I can provide a very accurate description of you. The fact of the matter is that the friends we have not only tells us who we are generally. Our friends influence who we are and who we will become. Yes, those closest to you will impact who you will become. Peer pressure  in proximity is strong, so is the influence of mentors and leaders. Choose your friends wisely because they will influence not only your career success but also the wealth you will attain in the future.

Friends

We may deny it, but those around us have the power to influence us. We are constantly picking up on cues from those around us. These cues subconsciously inform and shape our behavior. These behaviors over time become habits, and our habits determine who we become. The influences of our friends are not only behavioral. Who we have around us affect our world view, the way we think and the way we feel about ourselves. As such, our success and in a sense our wealth in life will come down to the people we choose to spend our time with.

Think for a second about the company kept by your financial heroes. Now, contrast this with the financially illiterate and those living on the edge. The friends kept by these two groups are diametrically oppose.

At this moment, consider who are your closest friends. Think of their attributes and how these friends have affected your life. What habits do these friends have that you want? Also identify attributes that you do not wish to adapt? Mostly, do you need new friends? 

Success

To be successful, be around successful people. If you want to be in shape, hang out with those who are healthy. If you want to be happy, surround yourself with happy people. We become those who are around us.

If you want to build wealth and become financially independent, do not have a circle of people around you who are struggling and lack financial discipline. Instead, associate yourself with positive, focused people. Be friends with those who are committed to constant improvement and the pursuit of the best in life. Have friends who will facilitate your journey to wealth and financial independence.

Choose Your Friends Wisely

Remember, while you may not be able to choose your family, you do choose your friends. To be friends with another person, you must agree to have this individual in your life. And while the decision to cut people out of your life may be difficult, tough decisions must be made for you to achieve your goals. 

Be the CEO of your life and demote or fire your friends as needed to achieve your goals. If not, do not be surprise when your ambitions, goals and position in life are at the same level as those around you.

Choose your friends wisely

Conclusion

Show me your five closest friends and I can provide a very accurate description of you. The fact of the matter is that the friends we have not only tells us who we are generally. Our friends influence who we are and who we will become. Yes, those closest to you will impact who you will become. Peer pressure  in proximity is strong, so is the influence of mentors and leaders. Choose your friends wisely because they will influence not only your career success but also the wealth you will attain in the future.

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Stay positive

Stay Positive And Being Positive

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It is amazing how much better our days are when we stay positive. It is simple, when you give off good vibes/energy, it is likely to return to you. Just think of how a smile will almost always be responded to with a smile. On the other hand, with a frown, you will likely get a reciprocal emotion in return. Achieve your goals and impact those around you by staying positive.

Staying Positive Is Not About Ignoring Reality

When you are being positive, it is really not about ignoring reality. The fact of the matter is, life is happening around us. While there are a lot of bad things on going, there is also the good. Here, we are not saying that there is always a bright side and that the worst of an event should be ignored. What we are saying is, stay positive, while acknowledging the not so pleasant part of life. 

It is important to understand the things that we can change and then take action to change these things to favor what it is that you are trying to achieve. Be present for what is taking place around you but stay positive and maintain perspective.

Stay positive, be positive

Staying Positive Is A Choice

No matter what is happening in life, it is your choice whether or not you will stay positive. Take as an example being cut off by someone on the road. Yes, the first reaction is to get angry, be upset and as it is common for many of us to pull up next to the person that cut us off to show our displeasure. Others may take it much further and that is where we see episodes of road rage. The above was all a choice. The decisions that we make have a direct impact on our lives and the lives of those around us.

Let us approach the above situation differently. Following being cut off, you could choose to stay positive, be thankful that you did not get into an accident and continue on your way. Note that being cut off is only a few second of your day. You have so many more thousands of seconds in this day. Do not allow an action by another to ruin the rest of your day or your life. It is really your choice. 

Stay Positive  And Create Opportunity

Have you realized how difficult it is to be creative when your mood is in the gutter. If you accept that there is no way out of a situation or dwell on the worst of a situation, you will never be able to lift your head up to see all the opportunities. It is only when you stay positive and keep perspective, that you are able to fully appreciate the entirety of a situation and be able to formulate a plan to take advantage of what is available.

In some instance, instead of focusing on what you do not have, focus on how lucky you are to have what you do. Then go and make use of what you have to exploit the opportunities present. Further, do not focus on your failures, learn from them. Stay positive and learn where things went wrong and adjust your strategy and approach accordingly. Stay positive and see a learning opportunity in everything that occurs in life, good or bad.

Your mind is a powerful tool. If you stay positive, you not only affect those around you, but also those around those who are around you. One person does make a difference, choose to be that difference. Start by having a positive attitude.

Conclusion

It is amazing how much better our days are when we stay positive. It is simple, when you give off good vibes/energy, it is likely to return to you. Just think of how a smile will almost always be responded to with a smile. On the other hand, with a frown, you will likely get a reciprocal emotion in return. Achieve your goals and impact those around you by staying positive.

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Father's Day

Have The Father’s Day Money Talk

Money Maroon

For father’s day, instead of falling into the commercialization trend, let’s make our fathers proud. Have a father’s day money talk. This talk will not only impact your father and show him that you are thinking about his future, but will also help you organize yourself to better care for him.  Buying shirts, cards, or tools is a nice gesture. But having a financial chat with dad is impactful. Be impactful on this father’s day and show dad how much you truly care.

The Sacrifice

On this father’s day, remember the financial sacrifices that your father has made over time. Think back to how much your father worked and his pains. Yet, he continued on. While you are at it, it should become very clear why some people stay at jobs that they hate. At times, some people will stay at jobs that they hate in the name of love and responsibility. He did it for you.

Father’s Day And Financial Education

Many have the luck of having a dad that inspires. For some, this is manifested in financial success or the search for financial success based on lessons learned. For example, save, invest, live below your means. It may be in the form of literal education or an education based on observation. Was it his struggle or was it his drive and position as an authoritative figure who did what was best for the family that motivates you to become financially independent? For some, it was the unfortunate mismanagement of finances that provided the teaching lessons that motivates today. Whatever your reason, I am confident that your father contributed and continues to contribute to your reasons for reading a financial independence blog and this article.

While your father may not be your biological father in the context of the man who took care of you, we all have a father, show him that you care.

Father's Day
Happy Father’s Day

Having The Father’s Day Talk

With all that your father has done to influence your financial life, it is time to have a father’s day money talk. Check on his current financial situation and his future plans. Although it may be difficult to talk to family about money, it is important to start.

Previous generations had the now acclaimed three legs to their retirement stool: (1) personal savings, (2) social security and (3) a company pension. Over the years, the three legs have been significantly weakened.

First, many have very little to no personal savings; second, as it currently stands, the social security program is teetering on the edge of insolvency; and  third, for the most part, company pensions are a thing of the past. Taken together, the baby boomer generation have little saved for retirement, no pension plan and are dependent on social security. This is the reason for the talk.

The Talk

To have the money talk with dad, there is no reason to be aggressive. Do not forget that it is father’s day. If you approach your father’s finances aggressively, your father is likely to get defensive. The point here is to begin a conversation or continue the conversation such that you know where your dad is financially. More importantly, these conversations will aid your financial planing.

We cannot control what another person does, especially our parents. However, if we can make them aware of potential issues that may be on the horizon, maybe they can and will take action to change course. 

The fact is, you as the child may be responsible for your parents during retirement. It is important that you begin taking steps to mitigate the impact on your financial future by talking to your dad this father’s day. 

The Best Father’s Day Gift

For most of us, as adults, it becomes a struggle to get the perfect gift for dad. Guess what, you have most likely provided a lot of his material wants over the years. There are only so may cruises, trips, tools, shirt or gadgets that you can gift dad. At this point, the best father’s day gift may be just showing that you care by having an important conversation. Instead of gifting something that will be used for only a day or a month, have an impactful financial conversation.

Conclusion

For father’s day, instead of falling into the commercialization trend, let’s make our fathers proud. Have a father’s day money talk with dad. This talk will not only impact your father and show him that you are thinking about his future, but will also help you organize yourself to better care for him.  Buying shirts, cards, or tools is a nice gesture. But having a financial chat with dad is impactful. Be impactful on this father’s day and show dad how much you truly care.

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When can I retire

When Can I Retire?

Money Maroon

When can I retire? How can I retire? Where can I retire? These are questions that we all have at one point or another. Sometimes, we begin to ask ourselves these questions once we are a few years into our careers, or at a career/life crossroad. At times, we ask these questions not because we “hate” our jobs. Of course, hating your job will no doubt lead to these questions. More times than not, we ask these questions as a matter of wanting freedom. The freedom to do whatever you want. The freedom to spend the limited time you have on this planet as you want. The problem, for many of us, when can I retire is not a question that is our decision alone. The decision to retire is intricately linked to your financial ability to support your retirement.

Can you retire?

Do You Have Enough 

If you are seriously asking the question of when can I retire, you must appreciate the financial factors that are driving whether or not you can retire. How much do you have in retirement savings/investments? This includes funds that are currently in personal accounts, retirement accounts and government sponsored accounts.

With regard to personal accounts, think about savings, property and investment accounts. With regard to retirement accounts, consider your tax advantage accounts such as roth accounts, 403(b), 457(b) and 401k or related like retirement accounts.  The third component to consider is the value of your government sponsored accounts such as your social security.

Now that you have an inventory of your accounts and their value, consider how much you currently spend? What is your projected spending during retirement? When you retire, will you continue to work part-time or will this be a complete retirement? What you are trying to get an estimate on is your cost of retirement and can you afford it. Well, can you?

Location, Location, Location

You have heard this before? The three things that matter in property is location, location, location. Location not only matters when it comes to property, location also matters when it comes to your retirement. Location matters because it will significantly impact your cost of living. Consider not only the cost of goods but also healthcare and taxes. Also, I forgot, location will also impact the type of life that you will have during retirement. Do you want to be sitting on the beach or do you want to be on a farm? Again, location, location, location.

Your Health

There is no point to wealth if you do not have health. I figure you would not want to be hooked up to an I.V drip while having millions of dollars in the bank. If you do not have good health, it is likely that your retirement will be a very expensive endeavor. So have you been taking care of your health? Who will pay for your healthcare? Are you old enough to be covered by a government subsidized plan or will you be paying out of pocket for an expensive premium? This could seriously impact your retirement plans. So when you ask when can I retire, think not only about your financial health but also your literal health.

When Can I Retire?

When can you retire? Well, it depends at least on the above. It depends on what you have saved for retirement. It also depends on what government sponsored programs you are eligible for, the location where you will retire and also your health. It all matters. Once you are able to assess where you are financially, location wise and your health situation, you will have a very good view of when you can retire. Of course, no plan is perfect and life is unpredictable. Who thought we would have a pandemic in 2020 and the related impact. But as is famously stated, “a dream without a plan is a wish.” Evaluate the situation and have a plan.

Conclusion

When can I retire? How can I retire? Where can I retire? These are questions that we all have at one point or another. Sometimes, we begin to ask ourselves these questions once we are a few years into our careers, or at a career/life crossroad. At times, we ask these questions not because we “hate” our jobs. Of course, hating your job will no doubt lead to these questions. More times than not, we ask these questions as a matter of wanting freedom. The freedom to do whatever you want. The freedom to spend the limited time you have on this planet as you want. The problem, for many of us, when can I retire is not a question that is our decision alone. The decision to retire is intricately linked to your financial ability to support your retirement. Can you?

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Pay off mortgage early

Is It Worth It To Pay Off Mortgage Early

Money Maroon

If you have a mortgage, you have asked if it is worth it to pay off mortgage early? This thought is normal. No one likes to be in debt for a day much less for 30 years.  We all would like to have the freedom to do as we like with our money, and paying a mortgage is not one of those things. But should you pay off your mortgage early? The answer, it is a personal decision.

The Financial Perspective

When you ask if you should pay off mortgage early, you will hear a number of important things to consider. These considerations include the stock market, the mortgage interest deduction, and the potential safety net of having money on hand. 

The stock market argument goes something like this: if you have a mortgage, by paying it off early you will essentially be getting the interest rate of the mortgage that you paid off as a return. As a simplistic example, if you pay off your mortgage that has a 3% interest rate 10 years early, you will have earned 3% per year for that 10 year period. Essentially, the 3% that you did not have to pay. You will then be told that if you had place the same amount of money that you used to pay off your mortgage in the stock market, you would have earned 8-10%. This 8-10% is in reference to the average stock market return over the past decades.

As such, the upshot of the stock market argument is that by paying off your mortgage early, you would be losing out on the difference between the average stock market return and your mortgage interest rate.

Further, you will be informed that your mortgage interest payments are tax deductible. But you would have already known this as your taxes are due yearly and you would have taken advantage of this deduction based on qualifications.

Next, if you pay off your mortgage early, if you ran into hard times, your money would be locked up in your home. The fact is, houses or the money held in your home is not as easily transferable as money in the bank. As such, if you lose your job, or run into financial difficulties, it would be a bit more difficult to unlock the money in your home than going to the bank and withdrawing what is needed. 

These are all considerations that must be contemplated. As such, from a purely financial perspective, the answer to the question of whether or not  to pay off mortgage early looks to be a no.

Pay off mortgage early? It's personal
It’s a personal decision

The Counter To Pay Off Mortgage Early

Why would you ever answer yes to whether or not it is worth it to pay off mortgage early? The answer, life is not as simple as a mathematical calculation. Further, the only thing certain in life is uncertainty.

While there is a historical increase in the stock market on average, we do not know what the future holds. Will the next 30 years see the growth of the last 30 years? It is uncertain. The stock market is risky and your mortgage payment is always due. This is to say that if you lose money in the market, your mortgage is still due. No matter what happens with the stock market, by paying off your mortgage early you have a guaranteed return. I am sure you have heard the saying “a bird in hand is worth two in the bush.”

In view of the mortgage interest deduction, will this deduction continue? Will you continue to qualify for this deduction? This also is unknown. Change is a constant, we just do not known.

Peace Of Mind Is A Reason To Pay Off Mortgage Early

When assessing if it is worth it to pay off mortgage early, consider your peace of mind. Paying off your mortgage early may not make financial sense if you pay off your mortgage early and miss out on a significant stock market return. However, nothing beats being able to sit back in your home and know that it is paid for.  Peace of mind. 

By paying off your home early, you will not have a mortgage payment, therefore you can use that money to spend as you see fit and you will no longer need to worry much about foreclosures or repossessions. Pay your taxes and related utilities and keep on living. This is peace of mind.

What is your peace of mind worth? When assessing if it is worth it to pay off mortgage early, this is the real question. How much better would you sleep knowing that you have no mortgage payment.

In the end, it is your decision and it is about what you are comfortable with. In some ways, you can pay more on your monthly mortgage payment to pay off your mortgage earlier. You may find a middle ground and pay more on your monthly mortgage payment but also invest a portion. It is also your decision to not pay any extra at all toward your monthly mortgage payment. It is about your comfort level and what is good for you and your family.

Conclusion

If you have a mortgage, you have asked if it is worth it to pay off mortgage early? This thought is normal. No one likes to be in debt for a day much less for 30 years.  We all would like to have the freedom to do as we like with our money, and paying a mortgage is not one of those things. But should you pay off your mortgage early? The answer, it is a personal decision. On the journey to financial independence, sometimes, peace of mind is more important than financial returns.

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Never Give UP

Never Give Up

Money Maroon

As I get older, what I have learned time and time again is that it is not about how smart you are. It is really about persistence. Yes, the never give up mentality is one of the most rewarding attribute a person can have. Getting knocked down but getting up and continuing on is a hard lesson to learn. But once you master it, the world is yours.

Never Give Up

Learning To Never Give Up

There are certain things that we are each innately good at, and far more things that we are absolutely terrible at. Throughout our lives, we will discover these things on an almost daily basis. How we deal with these discoveries will have a profound impact on our lives.

Do you recall the first time you tried to ride a bike, or for that matter, attacked a difficult math problem? Our success in learning how to ride a bike or solving a math problem is somewhat based on our mentality, but also those around us who shaped that mentality. For example, if the first time you fell trying to ride a bike your parents rushed to you and gave in to your cries to never get on a bike again, it is highly likely that you will never learn to ride a bike. I know a few individuals where this is a reality. The issue here is much larger than learning to ride a bike, you may potentially develop the mentality of trying, failing and quitting. 

If on the other hand, you fell, and you decided to get up, or your parents or others around you encouraged you to get up and try again, it is highly likely that you eventually learned how to ride a bike. 

Again, this translates to other life events. Now let’s talk about the math problem. The same principle applies. If you are discouraged and give up once you notice that the math problem was difficult, you may never learn how to solve the problem. If you eventually do solve the math problem, you may develop a hatred of math and avoid math at all cost. I am sure you know many individuals who fall into this category.

On the other hand, if you are able to power through the math problem and never give up, not only will you solve the math problem but also appreciate the concept of effort and persistence. These seemingly basic events do have an impactful effect on our lives.

Practice Makes Perfect

Have you ever heard the saying, “Practice makes perfect.” This is only another way of saying never give up. Don’t forget, while Michael Jordan was good, he became great by practicing. For that matter, Usain Bolt lost a number of races before he came into his own and dominate his sport. 

Some call it being stubborn. For others, they are classified as having a short memory. It really does not matter what you call it, it is typically a manifestation of pride, self belief, and the never give up mindset.

To bring this close to home, I am certain that you know individuals who may not have been the best at an activity that came naturally to you. Unbeknownst to you, this individual wanted to get better. As it turns out, while you rested knowing that you were good, they practiced, put in the required work and became better than you. This occurs all the time.

Persistence Pays

I have known individuals who are amazingly smart. They are able to grasp new material ridiculously fast and never had to really study. Many of these individuals never achieved their full potential. They took their gift for granted. They thought everything would come easily. However, when they hit an obstacle, they were unprepared to deal with failure. They did not have the tools, mental strength or sadly, they did not have a support system around them.

On the other hand, I know a number of individuals who were not the best. You know these individuals as well. They were likely middle of the pack with regard to academics, but they worked hard, took the long route, persevered and ended up at the top. These were the individuals who did not make the team on the first try, they did not get accepted to their top choice for college, they were rejected from professional school, but instead of giving up, they went back to the drawing board, reapplied themselves and were able to move forward. 

The fact is, in life, you will hear a lot more no’s than yes. Get use to it. “No” is an opportunity. Rejection builds character. Never give up!

You Will Hear No Far More Times Than Yes

We have all come across individuals who have not heard “no” very often. These individuals cannot handle rejection and if anything, avoid the possibility of getting a rejection or simply flips out if they are rejected. We all know individuals like this. They are typically not fun to be around. An outburst for the simplest thing is typically just around the corner.

Rejection is apart of life, and if viewed in the right context, rejection can be a huge motivational factor in life. Rarely do we make it through life without being rejected. For many overachievers, rejection is their fuel. That person who other’s may say act as if they have a chip on their shoulder did not become driven by always winning. It is rejection that fuels their fire. The agony of defeat built them mentally to never give up.

For others, if the door was close on one path, they never give up, they simply found another way in. The never give up attitude is exemplified in the winners of life. The earlier we can see failure as an opportunity, the more likely it is for us to succeed. This is true in our financial life and otherwise.

Conclusion

As I get older, what I have learned time and time again is that it is not about how smart you are. It  is really about persistence. Yes, the never give up mentality is one of the most rewarding attribute a person can have. Getting knocked down but getting up and continuing on is a hard lesson to learn. But once you master it, the world is yours.

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Growth mindset

Adapt A Growth Mindset Today

Money Maroon

Every once in a while, you will come across something that is so impactful that it will stop you in your tracks. Recently, it was a quote from Nelson Mandela “I never lose, I either win or learn.” The quote is simple yet profound. In reality, it represents a different way of approaching life. This quote is the foundation of a growth mindset. 

Growth mindset and fixed mindset
Growth Mindset

Growth Mindset

The growth mindset is not necessarily natural. We all have fears and are prone to acting for short term gratification. We are also prone to feeling sorry for ourselves and blaming others. The growth mindset on the other hand relates to believing that your success depends on time and effort. Believing that you control your destiny. Believing that you can improve with effort and persistence. This mindset thus leads to embracing challenges, persisting through obstacles, learning from criticism and seeking inspiration in others’ success. Those having this mindset therefore believes that with time and practice, they can achieve. 

Change Your Mindset

We typically have a mix of a growth mindset and a fixed mindset (believing that certain qualities are inborn, fixed, and unchangeable). But it is up to us to take control of our lives and realize that we are in control of our actions and the resulting consequences.

It is up to us to learn from new things/experiences and to view errors as learning opportunities and only a stop on the path to achieving our full potential.

Nelson Mandela

We all know Nelson Mandela’s story. It is amazing and down right inspiring on it’s own. However, the words spoken by Nelson Mandela are truly profound. Nelson Mandela, an amazing optimist, a truly amazing man.

To view life in the context of “I never lose, I either win or learn” is the basis for continual growth.  This is the growth mindset. Viewing failure as an opportunity to learn internally pushes you to seek new experiences and challenges you to better yourself. When you believe that you can get better by challenging yourself and learning, it is easy to understand the correlation between hard work and success. Therefore, you will put in extra time and effort to gain higher achievement.

Growth Mindset In Life

Having a growth mindset in your life, generally, is a good thing. It is never a bad idea to seek knowledge and continue to learn and grow over time.  As this is a financial independence related blog, the following must be addressed. It is important to note that having a growth mindset, more specifically, in your financial life is a great attribute. 

The path to a financially secure life takes patience and the requisite need to learn from your experiences as well as others. Like anything else in life, the more you learn, the better you become. The more you learn about your financial situation, an emergency fund, saving, investing and other financial tools, the better you will become at creating a more financially secure life.

Conclusion

Every once in a while, you will come across something that is so impactful that it will stop you in your tracks. Recently, it was a quote from Nelson Mandela “I never lose, I either win or learn.” The quote is simple yet profound. In reality, it represents a different way of approaching life. This quote is the foundation of a growth mindset. Adapt a growth mindset and journey to financial independence.

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Financial Mental Health

Financial Mental Health Is Important

Money Maroon

When we think about health, we typically think about our physical health. We think of muscle vs fat vs cardio. But within health, we must also address our mental health. We can replace a hip and a heart, but we cannot replace our brain (at least not yet). So we must take care of what is happening in our mental space, both consciously and unconsciously. Within our mental health, it is important not to forget that our financial situation affects our mental health. When addressing health, we must address our financial mental health. Without good financial mental health, you cannot have great overall health. Work on your overall health by getting your finances in order.

Your Financial Mental Health

You can work out all you want, and eat correctly too, but if you are stressed and having anxiety about paying your mortgage/rent or affording your next meal, you cannot achieve your best health. Let us face it, when it comes to health, mental health is typically an after thought. With  millions in debt and financial literacy at a low, financial health is even further removed from our consciousness.

Your Financial Mental Health
Your financial mental health is important

Improve Your Finances, Improve Your Mental Health

To improve your financial health, improve your financial security. This basically means that you should become more comfortable with your finances. Become more comfortable with your assets and your liabilities. In a simpler form, know the amount you owe and the amount of money you have. 

Next, to improve your financial security, increase your wealth beyond what it is today. This can be done by increasing your funds and/or decreasing your debts. By increasing your wealth, we mean increase your wealth to the point of being able to handle unexpected costs. Yes, building an emergency fund. This act of having a safety net has an indirected effect on your mental wellbeing. It is a stress relief knowing that you are able to handle unexpected costs. You need not worry about being homeless, hungry or the effect of a car breaking down. Having an emergency fund frees up your mental space to do other things that can further improve your life. 

Comfort Before Millions

While the goal for many is to be rich and have millions in the bank, you do not need millions to improve your financial mental health. Just building an emergency fund will substantially impact  your mental state. In a recent study, it was found that the ideal income point for individuals is about $95,000 for life satisfaction and about $60,000 – $75,000 for emotional well-being. You do not need millions to be happy.

Start Small

To improve your financial health, start small. By making small incremental financial changes, you are most likely to stick with the process and achieve your goals. Slow and steady wins the race.

To increase your wealth, begin small by saving a portion of your income. Start slow. Aim to save at least about 1% of your take home income. Slowly increase the total over time to the point where you can begin to confidently build an emergency fund. Take a similar approach with your debts, begin small. Begin by aiming to owe less next week than you do today (for example, credit card debt and student loans). This can be achieved by buying only what you need and consistently reduce your spending over time. Think about your wants and needs before each purchase. Also, consider using a budget and track your spending. These are the initial steps on a journey to a better financial mental state and financial independence.

Conclusion

When we think about health, we typically think about our physical health. We think of muscle vs fat vs cardio. But within health, we must also address our mental health. We can replace a hip, and a heart, but we cannot replace our brain (at least not yet). So we must take care of what is happening in our mental space, both consciously and unconsciously. Within our mental health, it is important not to forget that our financial situation affects our mental health. When addressing health, we must address our financial mental health. Without good financial mental health, you cannot have great overall health. Work on your overall health by getting your finances in order.

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