We all know what to do. We just don’t know how to convince ourselves to do it.”
— Mel Robbins

How’s the New Year’s resolution going? Did you resolve to eat healthier, exercise more, save money?

Unfortunately, many have already abandoned their goals. According to US News, 80% of people have given up on their New Year’s resolutions by second week in February. That’s only 6 weeks into the new year!

Current society has programmed us to expect immediate results. Technology, customer service, GPS, Facebook, Alexa. All this has created an impatient lifestyle. When we don’t get the immediate results, we get discouraged and move on.

That’s why New Year’s resolutions are almost always destined to fail. We are only thinking about simple solutions to issues that are not so simple.

We need a different method to bring REAL change in our lives

For real change, you must think long-term, as a change in your identity. There has to be deep self-reflection to find the core of your discontentment. From this point, you can discover what led to your current state of discontentment, understand what keeps you there, and create a path to change it.

Sounds simple, right?

When your identity changes, it becomes a multi-year plan. And that’s when real magic and change happens.

I’ve got a buddy, Kevin. He became a long-distance runner a few years ago. Before then, he was a smoker and discontent with his health. His path to change started with self-discovery. He realized he loved adventure and big challenges. So, he decided to become a long-distance, off-road runner. His solution was not to just quit smoking. Instead, he created a lifestyle that didn’t allow smoking. He created new friends, new habitats, new routines. In his new life, there is no place for a smoker.

For Kevin, the reward is greater now! As he is now training for his next ultra-marathon, he knows completing an super long run in a rugged terrain is much more rewarding than a temporary rush from tobacco. He created a plan, created a new identity and solved his original discontentment.

Let’s be clear here – A change in identity is not just one massive jump from where you are to where you want to be. The change is committing to the person you want to be and start taking small steps to get there.

Much like in Kevin’s case. He didn’t stop smoking and run a 10k the next day. He just decided he wanted to be a runner and suffered through short, 2-mile runs. Over time he started adding more distance. He progressed to 3 miles, then 6, 13, 26, 50miles and so on. He enjoyed small wins to build up to bigger rewards.

If you are ready to plan out your change, check out the six tips below to get you started.

1. Define Your Why
   The challenge is going to be difficult & you will have moments of weakness. It is optimal to define your ultimate driving force or your “why”. Why are you making the change? Are you making the change to be an example for your children? Did your doctor tell you to change your lifestyle? Something else? Write it down and review it constantly. You will need this on days you don’t feel like putting forth the effort to change.
2. Start With The End In Mind
   You must determine what you really want out of this life. Is it wealth, happiness, adventure? Don’t just think of the issue you see. Think about the bigger solution, which is usually not so obvious.
3. Know Yourself
   We are all different. You should know what inspires you. And you need to know your limitations and weaknesses. Are you a stress eater? Do you hate surprises? Do you love the outdoors? Know what you like and what you don’t like. Then, you will have a much better chance of real change.
4. Develop A Plan
   There is too much to lose if you live your life without a plan. A plane does not take off without a destination because the risk is too great. Your life is no different. If you want real change, you must put in the time to plan before you actually do the work.
5. Build Routines
   Robert Collier reminds us that “success is the sum of small efforts, repeated day-in and day-out.” So, think about taking small steps daily and the bigger accomplishments will come. Consistency is key. Small steps every day
6. Find Accountability
   Lastly, find an accountability group. Check out my previous article about leveraging accountability.

I challenge you to never set a New Year’s resolution again! Instead make a commitment to change your identify and you will be grateful you did.

If you’re looking to make a change, then I say stop worrying about results and start worrying about your identity. Become the type of person who can achieve the things you want to achieve. Build the habit now. The results can come later.
James Clear

In the professional world, I consider myself a hard-charger. I’m always involved in something new and progressing on some type of challenge. I am always exploring different concepts, learning new technology and researching new investments. I’m always signing up for something new and taking on new commitments.

Recently, I’ve noticed something has been off. I found that I was becoming less motivated and less productive. Items on my to do list kept getting bumped down each day. It was an odd experience for procrastination to take such a priority. Even more, I had less drive to change it.

Becoming aware that the lack of motivation was a problem; I started to think back to the last time I was most productive, inspired and ready to take action. Then it hit me. It was when I returned from my last big trip.

That was the AH-HA moment! The answer was so obvious. I needed a break. Things were becoming too bland and I needed a jolt to my life. That’s when I planned a trip with a few buddies, which led to an early fall morning enjoying the view of colorful leaves from my hammock!

See, I want to live a BIG life. I want to make an impact on the world, give to charity, inspire others and leave a legacy. Yet to live a big life, one must grow to handle the responsibility of a BIG lifestyle. The constant drive, goal setting, accountability, networking, presentations.. it all becomes a burden at times.

One can’t just push forward without a periodic break to recharge. We need a REAL mental break to keep a big life going. I’ve realized that this type of break is often in the form of a trip, an escape, or best referenced as a “mini-break!”

A mini break is not quite a vacation, but it is definitely a selfish, no responsibility small break from the normal day-to-day routine. It is a great reminder to enjoy life, even when you are in grind mode! A mini break will help boost creativity, allow opportunity to find focus and re-energize.

You can create your own version of a mini break. However, I recommend a mini break follow these characteristics:

• provide a different perspective by doing something different like run a lap, climb a tree, swim in a cold pond
• take on no responsibilities by allowing selfish fun
• be with people that inspire to do something different and beyond your capabilities
• get a bit scared by doing something outside your comfort zone
• keep it short to a day or a few days

From this point on, I will be be purposeful with my mini breaks by scheduling every 3-4 months. This is the timeframe when I start to get overwhelmed and productivity starts to slack.

What do you do to recharge?

“When the student is ready, the teacher will appear.”

Previous President and COO at Waffle House Inc., Bert Thornton, presented his 10 Basic Laws of Success to the Gulf Breeze Rotary a few weeks ago. These laws can serve as guidelines for continual growth in your career and life.

Bert speaks from his 40 years of experience of progressive growth, as he experienced Waffle House grow from a few southern restaurants to an iconic national presence. Bert frequently speaks on leadership and is the author of “Find an Old Gorilla: Pathways Through the Jungle of Business and Life.”

Bert’s 10 Basic Laws of Success

1. Always take notes (always keep pen and paper)

Bert warns that your mind is always at work and you must find ways to make best use of it. It is impossible to always remember an idea. If you write it down, you have a better chance of remembering it again later.

2. Hang around the right people

Your network is your most valuable asset and will provide either a positive influence or a negative influence. So, you should be proactive to ensure you allow the right people to have an influence on your life. Bert encourages you to be around people that: have things you want, do things that you want do to, and hold positions that you aspire to achieve. You should be around these individuals and listen.

Bert stresses the importance of finding a mentor for guidance. The greater the mentor is respected by peers, the greater chance of your success as a mentee.

Learn more about finding the RIGHT mentor.

3. Be honest

Honesty is the key to long term survival in business and life. You can find short term success being dishonest, but the truth will eventually always come out. In the end, it is easier to just be honest.

4. Keep a great attitude – Always

More than your car, house, appearance; your attitude is the single most observed thing about you. Having great attitude is a magnet for great experiences.

5. Get up earlier than your friends 

Waking up early is a great routine to set yourself up for success. If you are in business,  get up earlier than competition. Remember the saying, “the early bird gets the worm.”

Learn more about setting your morning routine.

6. Learn to say yes & learn to say no

Leaders set their own agenda that align with their goals. To follow their example, when you are asked do something that does not align with your goals, learn to say “NO!” If you say “yes” to something that does not align with your goals, you will make two people unhappy: yourself and the person you said “yes” to.

If you are asked for something that does align with you goals, then say “YES”.  Bert warns to never just say “ok”. Go forward with a task with passion or just say “NO.”

7. Nourish yourself

Three important parts in need of proper nourishment:

1. Body
   You must take care of your body by starting with breakfast every morning. Without nourishment, you are not at your best to complete your goals!
2. Mind
   Your mind is a muscle that needs to be exercised daily. One easy way to do that is to read every day.
3. Soul
   You should practice prayer or meditation frequently for clarity of thoughts. Every culture understands that there is a greater power in charge.

8. Learn to manage time 

All have same amount of time. By focusing on these three areas, you can be a better time manager:

1. Set Goals
   Define purpose and set goals. This will provide direction so you know where you are going.
2. Create an Action Plan
   You can avoid distractions by creating action plan. You can be a bird chaser and frequently running a different direction, or retain focus by following an action plan.
3. Learn to establish deadlines
   To get anything accomplished, you must have a deadline.

Extra: Never underestimate the power of small things repeated frequently over long period of time.

9. Give away all credit – take all the blame

People who do this are called great leaders. People that do not are called great followers.

10. Give away anonymous things of value 

Following this law will give you power and fulfillment.

In conclusion, Bert shares his driving motivation as the age-old adage: “When the student is ready, the teacher will appear.”

For an abbreviated version of Bert’s presentation, see the video below titled: CMO Talks: Basic Laws of Success with Bert Thornton

Everyone wants success, but no one wants to put in the work!

I have a confession. When I work on really big projects, I work really hard when the project is new, I am learning and having fun. Then, when the project gets to about 80-90% of completion, it gets hard. Progress slows. It starts to feel like work and boring. The fun is gone and I lose interest.

That’s the magic moment when projects can fail. Yet failure is not an option for the readers of this blog.

I have found that the following actions keep me moving forward:

• Prioritize – Re-evaluate priorities and determine where this project fit. If this is your priority in your life, then stop focus on everything else that could be a distraction. In the book, “The One Thing”, there is an overall question to keep in mind: “what is the one thing you can do such that by doing it everything else will be easier or unnecessary?”
• Slow Down – Often we are trying to rush something that does not need to be rushed. If I am working on a big project and progress slows, sometimes I allow it. Life happens and things change. So, if you can find flexibility in your project, use it. As long as you are moving forward and hitting milestones, things are good. Learn from this situation and consider setbacks when planning timeframes in the future.
• Accountability – You can reach out and ask for accountability from others. I recently wrote an article about how you can leverage accountability to achieve goals.
• Consider your “why” – Ask yourself: why am I working on this project? If it is a good reason, keep that top-of-mind and focus on your “why”. It is a powerful motivator.

These are just a few thoughts about progress. I am currently working a project and that has started to slow and I have used all of these actions to keep progress moving forward. Feel free to share any additional ideas below in the comments.

One of many life’s failures are people who don’t realize how close to success they were before giving up  – Thomas Edison

“Only those who will risk going too far can possibly find out how far one can go.”
— T. S. Eliot

We all have goals. Either expressed in statements like “one day, I plan to …” or you actually have it written down as a goal, we all are working towards a dream.

Our goals are only as good as the action we put to support them. It is human nature to loose focus, cut corners and skip steps. However, these actions prevent us from achieving our goals and are avoidable. The magic component to stay on the path to success is accountability!

Accountability is easily accessible and comes in many forms! You can set up an accountability partner or a group of partners. The idea is to have someone keep you honest to your goals. Below are a few ideas and resources to find accountability partners:

1. Paid Coach – Connecting with coaches is easier than it has ever been, as many are available online with many tools for communication. There are coaches ranging from small to large budgets and communication ranging from daily to monthly. A few sources worth considering:
   1. Coach.me – For $15/mo, coach.me is a very affordable way to get immediate accountability. You select a coach that best meets your needs and get started right away.
   2. Tony Robbins Coaching– For a bit more premium cost, Tony Robbins Coaching starts with a DISC assessment. Then, aligns a coach and style what best supports your natural working working style.
   3. Nigel Cook – For a more personal approach to coaching, Nigel will work to review long term goals with you. Then follow-up every few days to ensure you are moving forward.
   4. EMyth Coaching– In connection with the popular business book, The EMyth, EMyth coaching appears to take an analytical approach to understanding your goals and steps to achieve them. I do not have personal experience with EMyth coaching, but it looks great!
2. Paid Mastermind – More than just group accountability, mastermind groups are usually groups of 8-10 individuals with shared interests in success. There are many mastermind groups in various industries and budgets.
   1. M1 by Rock Thomas – The M1 program helps you create a wealth and success mindset and creates opportunities for connections with high net worth individuals.
   2. Internet Business Mastery Mastermind – The guys at Internet Business Mastery provide great content on their podcast. I assume their mastermind would be great as well. I do not have personal experience with this mastermind, but is looks legit.
   3. Screw the 9 to 5 –  This group is run by a fun couple, Jill and Josh Stanton, that found success in affiliate marketing. I was a big fan of their podcast. I do not have personal experience with this mastermind, but is looks good.
   4. A longer list of mastermind groups from a blog I found. You may find a gem in this list.
3. Public – You can leverage the accountability of the general public. Facebook is an ideal platform for this. The concept is simple. You just make a public claim like “I will run a marathon in 6 months”. Then, periodically post on your progress.
4. A Few Other Ideas
   1. Meetup.com – Meetup.com is a bit more hit and miss. I once found a great real estate investing mastermind group on Meetup.com. So, it is worth a try.
   2. Start your own – If you can’t find a group, then start your own. Michael Hyatt has a great blog post about the topic of starting your own mastermind.

Much like my recent article about finding the right mentor, it is vital that you find the right accountability group that meets your budget, communication style and commitment.

Like launching a rocket , the majority of the effort is in the first stage – getting started! Today is the day. It’s time to get stop thinking about “one day” and get started today.

“A great mentor helps you achieve what seems impossible” – Mariela Dabbah

Dating back to the Ancient Greeks, there have always been mentor/mentee relationships. Closely related to apprenticeships, the knowledge and experience of the mentor is utilized to speed up the process for success. A great mentor is one that aligns with your values and pushes you beyond your comfort zone to achieve more and be more. There are many types of mentor relationships and mentors can be found in various ways. Although the mentorship is often the act of a successful person volunteering their time and attention, it is a two-way relationship where the mentee can provide return value.

Not only speeding up success, a mentor can help with times of failure. The proper mentor can help you recover from those failures or reduce the collateral damage as you work to fix a problem. You can leverage a mentor’s experience and guidance to help with planning so that many failures or mistakes can be avoided in the first place. In addition, the right mentor help you with creative approaches by providing alternative perspectives to problems you are facing.

While most think of a mentor as someone you know or meet with personally, there are actually mentorsship you can establish on a virtual basis. We can discuss these types of mentors as in-person and virtual.

In-person Mentor
The most common mentorship, in-person mentors, allow you direct access to an individual that you chose and has accepted the status of mentor in your life. This individual can be someone you respect in your career or place of employment (or anywhere).

Some think of a perfect mentor as one that is 10 steps ahead of you and someone that knows you personally already. However, do not let your network hold you back. If there is someone living the life that you want, try to get into their world. Then, evaluate them for potential mentorship relationship. 

Virtual Mentor
On the complete other end of the spectrum is the concept of virtual mentorship. This concept was first introduced to me by the real estate legend, Pat Hiban, as he discussed the concept on his podcast, Real Estate Rockstars Radio. He shared his concept of a virtual mentor as someone that he studies and models their life, but he does not know personally. It is an amazing concept as it opens up the entire world of potential mentors. There is nearly an endless surplus of successful personalities and business leaders available. The best part is that many live their lives in alignment with this age of social media making it very easy to learn about a person’s life, how they found success and habits they create to continue the path of success. You can model your life and habits similar to that of a virtual mentor. 

Now let’s focus on finding the RIGHT mentor. The first step is self analysis. You must understand what you want and who you want to be! This step is crucial, as it will define the best type of mentor for you and alleviate frustrations. Once you define the image of your future self, you can find someone that fits that model. 

When profiling a mentor to align with the image of your future self, you will want to consider:

• Characteristics of your personality – If you are going to start spending time either researching or talking with a mentor, you should share some personality characteristics.
• Ethics – It is ideal to have mentor that shares the same moral standards. Does this person respect others? Do you share the same importance on family?
• Success Level – Sometimes the gap from where you are to your prefect being can be overwhelming. Instead of considering Bill Gates as a virtual mentor, you could apprach someone that is a leader in your industry. You may be able to relate to challenges of this type of individual rather than challenges Bill Gates faces.
• Respect Level – Consider how a potential mentor reached their level of success. Did they achieve it in ways that gained respect of others? 
• Down Time – What do they do to unwind? Go clubbing? Climb Mt. Kilamanjaro?
• Contribution – How and where do they give back? Why? 
• Lastly, are you some one that you would like to mentor (if the roles were reverses? Are you open-minded, flexible, respectful, accepting of advice? Are you eager to learn, and committed to change and success?

Places to find a mentor
Now we get to the point of this article and actually find a mentor. While these relationships happen by chance, you have better chances proactivly  looking for mentor. Below are a few ideas of places to find a mentor. 

• Trade organizations – Successful people network with other successful people. Get involved in a trade organization to expand your network and create better potential to leaders in your industry. Search your industry to find an organization.
• SCORE – This non-profit provides free mentoring services for entrepreneurs. One of my mentors is from the SCORE program. I cannot recommend this service enough. 
• Findamentor.com – Another free service I found. I don’t know anything about the organization. Please comment about your experience if you have used the service. 
• Podcasts – Successful people are constantly interviewed or host thier own podcasts. I have found many virtual mentors by listening to them on podcasts. 

While the mentor is volunteering their time/etc, there are many ways you can “pay” them back for their sacrifice. Mentors volunteer their time for many reaasons. Your job is to determine what that perpose is and help them out. In many times they just enjoy what they are doing – so brining them fulfilment in their efforrts is enought.

A few ways to share your graditude to your mentor include: 

• Listen & Take Action – Your mentor wants your success. You simply listen, take the advice given and take action. It’s a win-win!!
• Buy Lunch, Coffee, whatever – If a mentor gives up time to be with you, make sure you don’t let them pay. 
• Promote Them (if they want it) – You can like and share their posts on social media or support their organization. 
• Do Good – Since the basis of mentoring is volunteering, do your part and give your time or money to make the world a better place through a chairing or such. 

In conclusion, we all know finding a mentor is a good idea. However, many never take the initive to make it happen. If you are truly committed to your success, you will make it a priority this week. No excuses. 

Either you run the day or the day runs you! – Jim Rohn

One of the biggest challenges we all face is staying in control of our day. Far too often we end a long day exhausted with nothing really to show. We work hard, but in the end of the day often you can question – did this get me closer to my goal? If you didn’t start the day right, then the answer is usually “no”.

One way to ensure you stay in control of your day is to start it correctly. If you wake up to a buzzing alarm clock, stumble out of bed, get ready and leave for work; then you have already lost control of your day.

Owning your day, starts by waking up earlier to spend time alone to refine your purpose, set proper mindfulness and establish priorities for the day. You can accomplish this with set routines that you can easily run though in the morning hours. This process takes a bit of effort to get started, but makes a massive difference in the long run. There are countless leaders and successful entrepreneurs that recommend a good morning routine because of the benefits they experience.

The well known leadership speaker, Robin Sharma, has been a major promoter of a morning routine. He calls his concept the Holy Hour and even provides some tactics to help you get out of bed early.

The first step to get started is to adopt a proven routine. A few years ago, I was introduced to the book, “The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM)” by Hal Elrod. The book is the tells the story of his interest in finding common traits that successful people share. From his studies, he discovered the value each placed on their morning routine. Hal created a set of morning routines called the S.A.V.E.R.S (explained below). This simple routine can help you get organized with a solid morning strategy.

So, let me explain the S.A.V.E.R.S and share a few hacks that work for me.

(S) Silence
Morning meditation or prayer is a time of purposeful silence. If you are like most, your day runs at light speed. This time is to establish an optimal mindset that can guide your actions for the rest of the day. Many successful businessmen and celebrities claim that this daily time of clarity and self awareness helps them deal with stress of a high profile life.

I find great value in my morning meditation. For optimal organization to get into a meditation session, I have found the iPhone app, Calm, to be very helpful.

(A) Affirmations
Affirmations allow you to program your mind for optimism and success. We all have self doubt and limiting beliefs which make it vital to surround yourself with optimism. If we can believe in our actions, great things can happen. Henry Ford summed up the idea by the statement, “Whether you think you can, or you think you can’t, you’re right either way.”

There are many ways to time hack daily review of affirmations. You can record affirmations to play while driving or just listen to recordings by others on YouTube. I have found that just simply writing my affirmations on a index card and repeating them 3 times each day is most effective.

(V) Visualizations
Visualizing is creating a mental image of what you really want. In the process you visualize exactly what you want to achieve or attain, then mentally rehearse what you will need to do to accomplish it.  Keep only positive thoughts – where everything works out for you. Then think about after you achieve your goal.

For example: if you want to own an island; you would visualize yourself finding great success in what you are doing now. With this success, you would have great amounts of wealth or insider knowledge of gaining an island without money. You would visualize finding the prefect island. Then, imagine yourself owning the island – walking on the beach, looking at the waves, the sun glaring off the water, toes in the sand.  You get the idea.

The actor, Jim Carrey, wrote a check to himself early in his career for 10 million dollars. He dated for 10 years in the future and added in the memo line, “For acting services rendered.” He then visualized it for years. Less than 10 years later, he made 10 million dollars for his starring role in Dumb and Dumber.

I find that early in the morning my mind tends to wander too much when I am trying to visualize. My hack is to write down the vision of success (with details of how I enjoy it) as the images pop in my mind.

(E) Exercise
A very simple workout will get your body in a positive mode and mentally prepared. Your brain soaks up 20% of the oxygen in your body. Cardio-focused workouts boosts blood flow to your brain delivering the essential oxygen to stimulate the important muscle. As a word of advice: Don’t overthink it. A simple set of jumping jacks, sit-ups or even a walk around the block will do the job and get your mind ready for the day.

I have experimented with several great apps, such as Seven and yoga videos on Youtube. However, I will primarily run or walk in my neighborhood because I love being outdoors.

( R) Read
Keep your mind active and thoughts progressing by reading every morning. If you really don’t like reading a book, then listen to an audiobook or consider a daily thought guide. You can even time hack by listening to an audiobook while you exercise.

I have found the greatest success reading something that is thought-provoking. I really enjoy Easwaran’s Thought for the Day app which provide a good variety of secular quotes or readings and bible verses with additional thoughts about how the message relates to our lives.

(S) Scribe
Journaling (or scribing) is the last step of the S.A.V.E.R.S. method. During this step, you are to write what is on your mind. This can include anything from thoughts to feeling to ideas. You can either us a blank notebook or use a daily journal guide like the Five Minute Journal.

I use a blank notebook to free flow thoughts and ideas what is on my mind. I also created my own guide that covers different mindsets that I want to cover such as gratefulness, daily priorities, thoughts of others and awareness of fears.

That’s the overview of the S.A.V.E.R.S. strategy. Many have found success with this strategy. Even the Author of Rich Dad Poor Dad, Robert Kiyosaki, claims that “I can always make another dollar, but I cannot make another day.’ If you want to maximize every day of your life, read The Miracle Morning.”

The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.
Martin Luther King, Jr.

Think back on a tough time in your career or your business. I mean, think of a really tough time. Yeah, you’ve got a story. I bet it was really, really not fun times. None of us enjoyed the those times, but you probably remember a major lesson learned from it – something you have vowed never to do or allow to happen again! I  bet you also had to get really creative and improvise to just to survive. Then, little by little and step by step you started to gain back your confidence and were able to overcome the challenge. Today, you are now stronger and smarter because of that hard time!

I’m sure you remember the scenario: you were working really hard on a project or a deal. Things were going well. You are seeing progress – thinking you finally made it. Numbers were increasing (maybe even by a lot). Then out of nowhere; the apocalyptic, unexpected event happened. Following that, several smaller issues bubbled up. Then more issues arose. Numbers declined and continued to decline – and continued. Finally, you hit what you consider “rock bottom”. I bet you can still remember sitting there feeling sorry for yourself thinking “how could I have done something so dumb” or “how could this happen to me”. What happens next is the most crucial time in your career! You react.

Adversity is what defines us. During time of comfort, there is no growth. It is just a time of comfort and success is easy. We often get lazy during those times and pay less attention to expenses, business relationships, and growing skills. We become soft. When adversity arises, it creates a time of honest decisions. It is a test of our true passion. In these situations, you either give up or you find a way to work harder. You either break or grow!

Amazingly, if you commit to persue, you find a way  to continue. During these times, you must create a new plan or revise your existing plan. You focus on the basics just to survive. You are forced to grow – to become stronger. There many areas of your mindset you refine during hard times. Below are a few of the elements of your revised mindset essential to survive.

• Refine Skill Set – During the last US recession (around 2008), there were massive business and job losses. It was a dark time for employees and business owners. However, many people took the opportunity to return to school to make themselves more marketable. Many online education companies experienced massive growth of students during the recession. During hard times, you are forced to refine your skill sets.
• Focus on Budget – When you are forced to cut back expenses, you realize that how careless you had become when things were comfortable. No one needs a $5 cup of coffee twice a day, but it’s easy to forget when we have extra money. When you focus on budget, you tend to also cook at home more – which is much healthier than most restaurants.
• Relationships – Business is all about relationships. When things are going well and we are comfortable, we often forget the essential relationships that helped us find success or the continued relationship building needed to thrive. During a time of focusing on the basics, you return to those beneficial relationships and the relationship building skills essential to your success.
• Mental Strength – You know the saying, “whatever does not kill you, makes you stronger.” No saying is more relevant. This strength can help you better navigate difficult times that will appear in the future.
• Learned Lesson – Encouraging words by Richard Branson remind us that “You don’t learn by following the rules. You learn by falling over.” All successful business professionals learn at least one huge lesson in what not-to-do in their business.  It is almost a rite of passage on your way to success.

While we all love the comfortable times, it is the challenging times that mold and shape us into the unstoppable force we are to become as we strive to build our businesses or make ourselves a legend in our chosen career. So, enjoy the comfortable times, but try to find fulfillment in that you become stronger when times turn bad.

Most important: keep the the saying by Robert H Schuller close to heart, “tough times never last, but tough people do.”

Extra
On one my favorite podcasts, The Brian Buffini Show, published a great episode on a related topic titled “How to Change Your Life Once and For All.” Enjoy!

Real estate makes a great option to gain consistent returns for future abundance. Real estate can be an active or passive investment, but either way you have control of your investment. You get to chose the location, actual property, style, and so much more. In addition, you can decide on solutions to problems such as replacing an AC or just getting the current one replaced. Alternatively, you have the option hire a property manager and have them make those decisions.

Beyond just control, real estate has a multitude of benefits including: tax benefits, loan pay down, appreciation and cash flow. Most of all, it just makes sense. The demand is  high, as people and businesses will always rent property. Current home ownership rates in the US are the lowest in over 20 years.

Now that I have hopefully convinced you that real estate is a good investment, let’s cover strategy. A simple strategy to develop a profitable real estate portfolio is using the BRRRR method. This method stands for buy, rehab, rent, refinance and repeat. Brandon Turner at Bigger Pockets is credited for creating the term, but the concept has been around for a long time.

BRRRR method explained

B- Buy
However you do it, your first step is to actually buy the property. The important element to this step is to buy the property at the right price. That means finding a house that is available well under the potential value. A good rule-of-thumb is to keep the total costs (including remodeling costs) around 70-75% of the potential fair market value. You must be mindful and calculate any needed updates to the house before closing on the property. For example: if you find a house with a potential fair market value of $100,000 that needs about $15,000 of repairs, then you will not want to spend more than $60,000 to purchase the property to stay at 75% of fair market value.

Since you must find the properties at such a discount, you can’t just hire any real estate agent that only depends on data on the MLS. Many of these deals require hard work through direct solicitation or through real estate wholesalers. There is a great article at Bigger Pockets that provides additional sources to find real estate deals.

R- Repair/Rehab
The step is my favorite. In this step,  you add value to the property through updates or upgrades. This step is also very tricky because you must control your desires to over-remodel the property. It is important to keep in mind that you are not updating a house for you to live in, but as an investment. Sometimes “good enough” is perfect! A great example is with the kitchen. Granite countertops are ideal for your house, but you can often save over $1000 if use tile or another economic material for counter tops.

R- Rent
The next step is to start generating income. If you like working with people and are good at organizing your time, self management may be an option. It can be a great cost savings, as property managers charge from 8%-10% along with additional fees. However, a lot of people use property managers just for the convenience and experience. It all comes down to personal preference and availability, but I think it is always a good idea to start with self management when starting out. Gaining the experience of property management can help you better communicate when outsourcing it in the future.

If you self-manage, a great resource is Cozy. This site consolidates the listings, rental applications (including background and credit checks), rent payments and more in all at one source. The best part is that it is free for landlords to use.

R- Refinance
Now you reach the point where you’ve purchased the house, you’ve made the updates, and you’ve got someone renting from you; this is the step where you convert the property to a long-term investment strategy. This is the point when the beauty of the strategy comes together. You assume liability of the mortgage, but the equity is built while your renters pay the mortgage.

You must plan to only be able to refinance 80-85% of the fair market value. That’s why it is ideal to only spend a total of 70-75% of the fair market value on the purchase and the updates. The difference of 5-10% is needed to cover closing costs and margin of error with the appraisal. Your estimate of fair market value sometimes can differ from the official appraised value.

When it comes to actual finance, I have found the most success with smaller community banks or credit unions. Some have a bit old school processes, but they are definitely more willing to work with you. I recommend shopping around and finding the best terms that work for you.

R- Repeat
You cannot have success until you expand your portfolio. Utilizing the strategy, the possibilities are unlimited as you can continue to secure good properties that bring cash flow.
As with all strategies, there are particulars that one learns through experiences.

Below are a few lessons I have learned while executing the BRRRR strategy.

1. Cash– To utilize this strategy, you must have access to enough cash to buy the house, cover the remodel costs and pay closing costs. This is the part of the strategy that scares most people to the point they do not get started. There are options ranging from credit lines from assets (such as you home, IRA or 401k), investors, friends/family, and many more.
2. Vision – The strategy only works with properties if they are bought at the right price, which 90% of the time means the properties are distressed. So, you will have to look at a trashed house and create a vision of what it can become (while keeping to a budget)!
3. Network– This strategy is based on your ability to find deals and that usually aligns with the strength of your network. These deals are not going to be delivered to you by a real estate agent. In most cases, you need to network to find the individuals that are selling houses off market (off the MLS). Also, I urge you to tell everyone what you are doing. Tell friends, family, co-workers that are you looking to buy houses and can close fast. You will be surprised how many people know someone that needs to sell their house fast or inherited property and just wants to cash out easily.

Conclusion
As with any strategy to grow your wealth, it takes hard work. However, the strategy works. With creativity, you can find funding and create a new future for your family. I currently have a small portfolio of rental homes and using the BRRRR strategy to expand my portfolio.

Book Overview

During a series of unfortunate events in his life; the main character, Amit,  casually commits to an unplanned pilgrimage – the Camino de Santiago. The Camino de Santiago (aka: The Way of St. James) is an ancient 550-mile Christian pilgrimage route across northern Spain to the city of Santiago De Compostela, where St. James’ body is buried. Today, it is popular with non-Christian and Christian pilgram searching for purpose and deeper understanding of life.

The book is a collection of conversations during the pilgrimage on the Camino. Most of the conversations are with other travelers, but some are internal conversations as the author tries to figure out answers to his own life. 

Amit ponders the recent death of his father and his struggle to come to terms with anger with is father. He also deals with the loss of his job, failing career and collapsed relationship with his girlfriend. He thinks and discuses these issues as he simply walks in nature and follows the trail markers each day on  the Camino.

As Amit works through these issues, he discusses thoughts on fear, choice, struggles and vulnerability. The pilgrims that he meets each share their individual bits of wisdom that culminate to provide a greater understanding of how Amit can work through his own challenges in life. Below are several selections from the book that can serve as great takeaways.

Thoughts on Fear

At one of the refuges (essentially a hostel established for the pilgrims on the Camino), a traveler told a story about temptation of fear and the Buddha. The following excerpt is from the book.

The night before he achieved enlightenment, the Buddha was attacked by Mara, the God of Death. He threw everything he had—lust, greed, anger, doubt, fear in all its forms—at the man meditating under the tree. No luck.
But even after he lost, he continued showing up throughout Buddha’s life. Each time, the Buddha said, “I see you, Mara.” That’s it. The genius of this is in the simplicity. He named fear for what it was, acknowledged its existence, and then just let it be. That took away Mara’s power, which was an illusion anyway. Eventually, Mara grew bored and lost interest. 

The biggest take away from this story is that fear is often defeated when we just acknowledge it’s existence thus removing the majority of the power of fear.

Reflections on choice

Amit had several discussions and thought about choice and consequences. One thought in particular that stood out was the idea of a different outcome to Ernest Hemingway’s life. The following excerpt is from the book.

The stories Hemingway told, the life he lived, all of it ended with a squeeze of a finger on a trigger. What else could he have done if he had put the shotgun down, gone back to bed? What would he have learned in that moment of choosing to live, what other books would have been written?

A simple, interesting thought about what other ways Ernest Hemingway could have contributed to society, if he had not passed by the actions of his own hands.

Thoughts on Struggle

Amit had various reflections on learned lessons through struggle. There is one point in the book, after spending weeks in basic refuge housing with many pilgrims, he mentions desire to have enough money for a nice hotel room. He then immediately realizes that if he had money, he would  not have committed to the pilgrimage in the first place. The discovery of the lesson is that the struggle is the blessing. It is a true time of growth.

Thoughts on Vulnerability

Although Amit had many challenges in life, he meets a fellow pilgrim that has grand challenges and experiences making his seem not so big. The pilgrim’s name was Cat and she was quirky as she was profound. She had dealt with many traumatic experiences in her life and shared her thoughts on vulnerability. The following excerpt is from the book.

We must be vulnerable. In life and in love. It’s by being vulnerable that we learn. It’s our vulnerabilities that move us forward, not our strengths. That’s why I so do not like convention. Convention says: be strong. Especially for a man: be strong, don’t show emotion. Poppycock! My greatest strength is my vulnerability

Growth through vulnerability is an interesting concept. It makes sense, but takes a certain level of self-awareness.

Conclusion

The book ends with the main character completing the Camino de Santiago and finding peace through the experiences and people he met along the way. The book appropriately leaves readers with the mystery of what direction the author will take next, but confident that he will make progress towards creating a positive future with whatever he decides.