SMS 192 – The Cost of Having Kids

3. Successful individuals engage in family planning.

Engaging in family planning is the third of twenty-five things that successful people do. In this 25-part series, we’re spinning our original inspiration “5 Things Poor People Do That the Rich Don’t Do” into something more constructive, positive, and inspirational to guide our future actions and decisions.

In this episode we discuss:

  • The importance of creating a family legacy or following a previously established family legacy
  • Busting child raising cost myths: 
    • You can let life just happen to you 
    • “How” is not as important as the “why” – the necessity of supporting and providing for your children quickly becomes the mother of invention 
    • Ensure you are doing things for your children versus doing things because of your children 
    • The reality behind waiting until you can afford to have children 
    • Putting a cost around raising children (note: Canadian research shows that this cost ranges between $10k – $15k per year) 
  • The cost considerations of having children: 
    • Daycare versus a stay at home parent 
    • Accommodations 
    • Transportation 
    • Food and hygiene 
    • Education and life experiences 
    • Miscellaneous – thinking about things beyond yourself (such as life insurance)

The content within this episode was also guided by a listener write-in from a new parent, who posed great questions that we address:

  • What changes should we be making prior to becoming a parent, and what should stay the same?
  • What’s a rough outline of changes in expenses as children grow up?
  • What hidden or surprise expenses should we be planning for that we might not have thought of yet? 
  • What are some realizations or discoveries as a new parent?

Do you have feedback that relates to any of the ideas featured below from a past episode or an episode to come? Connect with us through email at livelifesimple365@gmail.com or through our Contact Submission Form.

25 Things Poor People Do That the Rich Don’t Do – Positive: 25 Things Successful People Do

1. They don’t understand the game – Positive: They understand basic economics 

2. Lack of a Value System – Positive: They have a well-developed value system 

3. No Birth Control – Positive: They engage in family planning

4. Flawed Priorities – Positive: They have clear priorities 

5. Lack of Effective Time Management – Positive: They have effective time management 

6. They lack motivation – Positive: They are motivated

7. They don’t work for money – Positive: They understand the difference between work and job

8. Lack of Strategic Investment – Positive: They are Strategic with Investment

9.  Running without a Budget – Positive: They prioritize budgeting 

10. They rely on will power – Positive: They understand discipline

11. Lack of Self Development – Positive: They embrace continuous improvement

12. Not Taking Calculated Risk – Positive: They understand risk reward trade off

13. Always Playing the Blame Game – Positive: They own their actions

14. Bad Saving Culture – Positive: Saving is a way of life

15. Nonchalant Attitude towards their Health – Positive: They prioritize their health 

16. Keeping the Wrong Company – Positive: Surround themselves with quality people

17. They Watch Too Much Television – Positive: Understand the value of down time

18. Turn Pursue Opportunities – Positive: See opportunities where others don’t

19. They Don’t Bank on Wishes and Luck – Positive: Understand that Good fortune is usually earned

20. Giving Room for Pessimism – Positive: They are Critical Thinkers

21. Lack of Vision – Positive: They have vision to see what could be

22. Lack of Focus – Positive: Can Prioritize Effectively

23. They give up too quickly – Positive: They understand passion is pushing through the hard parts 

24. They are Master Procrastinator – Positive: They do what they can when they can

25. They are afraid of change – Positive: They Understand Change Equals Growth 

SMS 191 – Have a well-developed value system

2. Successful people have a well-developed value system.

In this episode we discuss:

  • What a value system represents:
    • Pre-made decisions (and decisions that you’ll never have to make again)
    • An opportunity to never be a victim of temptation
    • Something that should evolve as you go though life
    • An opportunity to ensure that all of your pre-made decisions become aligned with your life goals
  • Why having a value system is crucial
  • Some examples of Trevor’s personal values:
    • Always purchase used cars
    • Never dine out for hunger
    • Buy thrifted clothes
    • When in doubt, minimalism comes first
    • Does not take advantage of warranties
    • Opts against contracts when possible

Having a well developed value system is the second of twenty-five things that successful people do. In this 25-part series, we’re spinning our original inspiration “5 Things Poor People Do That the Rich Don’t Do” into something more constructive, positive, and inspirational to guide our future actions and decisions.

Do you have feedback that relates to any of the ideas featured below from a past episode or an episode to come? Connect with us through email at livelifesimple365@gmail.com or through our Contact Submission Form.

25 Things Poor People Do That the Rich Don’t Do – Positive: 25 Things Successful People Do

1. They don’t understand the game – Positive: They understand basic economics 

2. Lack of a Value System – Positive: They have a well-developed value system 

3. No Birth Control – Positive: They engage in family planning

4. Flawed Priorities – Positive: They have clear priorities 

5. Lack of Effective Time Management – Positive: They have effective time management 

6. They lack motivation – Positive: They are motivated

7. They don’t work for money – Positive: They understand the difference between work and job

8. Lack of Strategic Investment – Positive: They are Strategic with Investment

9.  Running without a Budget – Positive: They prioritize budgeting 

10. They rely on will power – Positive: They understand discipline

11. Lack of Self Development – Positive: They embrace continuous improvement

12. Not Taking Calculated Risk – Positive: They understand risk reward trade off

13. Always Playing the Blame Game – Positive: They own their actions

14. Bad Saving Culture – Positive: Saving is a way of life

15. Nonchalant Attitude towards their Health – Positive: They prioritize their health 

16. Keeping the Wrong Company – Positive: Surround themselves with quality people

17. They Watch Too Much Television – Positive: Understand the value of down time

18. Turn Pursue Opportunities – Positive: See opportunities where others don’t

19. They Don’t Bank on Wishes and Luck – Positive: Understand that Good fortune is usually earned

20. Giving Room for Pessimism – Positive: They are Critical Thinkers

21. Lack of Vision – Positive: They have vision to see what could be

22. Lack of Focus – Positive: Can Prioritize Effectively

23. They give up too quickly – Positive: They understand passion is pushing through the hard parts 

24. They are Master Procrastinator – Positive: They do what they can when they can

25. They are afraid of change – Positive: They Understand Change Equals Growth 

SMS 190 – Do you understand the game?

1. Do you understand the game?

What is the game? The game of numbers. Poor people are quick to complain about why the entertainers earn so much money whereas a hardworking school teacher goes home with miserable pay. What they don’t understand is that wealth is attracted to numbers. Your earning is directly proportional to the number of people you efficiently serve in the society, directly or indirectly.

  • Helping people gets noticed
  • Supply and demand – see needs that are not being filled
  • Solving problems rather than doing tasks – continuous improvement
  • Doing important work rather than urgent work – requires good planning
  • Adding value rather than putting in time – work you job like a business

25 Things Poor People Do That the Rich Don’t Do – Positive: 25 Things Successful People Do

  1. They don’t understand the game – Positive: They understand basic economics
  2. Lack of a Value System – Positive: They have a well-developed value system
  3. No Birth Control – Positive: They engage in family
  4. Flawed Priorities – Positive: They have clear priorities
  5. Lack of Effective Time Management – Positive: They have effective time management
  6. They lack motivation – Positive: They are motivated
  7. They don’t work for money – Positive: They understand the difference between work and job
  8. Lack of Strategic Investment – Positive: They are Strategic with Investment
  9. Running without a Budget – Positive: They prioritize budgeting
  10. They rely on will power – Positive: They understand discipline
  11. Lack of Self Development – Positive: They embrace continuous improvement
  12. Not Taking Calculated Risk – Positive: They understand risk reward trade off
  13. Always Playing the Blame Game – Positive: They own their actions
  14. Bad Saving Culture – Positive: Saving is a way of life
  15. Nonchalant Attitude towards their Health – Positive: They prioritize their health
  16. Keeping the Wrong Company – Positive: Surround themselves with quality people
  17. They Watch Too Much Television – Positive: Understand the value of down time
  18. Turn Pursue Opportunities – Positive: See opportunities where others don’t
  19. They Don’t Bank on Wishes and Luck – Positive: Understand that Good fortune is usually earned
  20. Giving Room for Pessimism – Positive: They are Critical Thinkers
  21. Lack of Vision – Positive: They have vision to see what could be
  22. Lack of Focus – Positive: Can Prioritize Effectively
  23. They give up too quickly – Positive: They understand passion is pushing through the hard parts
  24. They are Master Procrastinator – Positive: They do what they can when they can
  25. They are afraid of change – Positive: They Understand Change Equals Growth

SMS 189 – 25 Things That Successful People Do

Afterschoolaferica.com 25 Things That Successful People Do  // Poor People do that Rich People Don’t

Introduction Episode

  • Introduce the 25 concepts
  • Listener experience
  • Spinning the narrative – what you are rather then what you’re not
  • Pursue things that challenge your current beliefs
  • Being honest with yourself – what you are doing and what you really want
  • The two lotteries in life that we all play – we all start from a different place
  • Improving on your strengths rather than focusing on your weaknesses
  • What is True poverty

25 Things Poor People Do That the Rich Don’t Do – Positive: 25 Things Successful People Do

  1. They don’t understand the game – Positive: They understand basic economics
  2. Lack of a Value System – Positive: They have a well-developed value system
  3. No Birth Control – Positive: They engage in family
  4. Flawed Priorities – Positive: They have clear priorities
  5. Lack of Effective Time Management – Positive: They have effective time management
  6. They lack motivation – Positive: They are motivated
  7. They don’t work for money – Positive: They understand the difference between work and job
  8. Lack of Strategic Investment – Positive: They are Strategic with Investment
  9. Running without a Budget – Positive: They prioritize budgeting
  10. They rely on will power – Positive: They understand discipline
  11. Lack of Self Development – Positive: They embrace continuous improvement
  12. Not Taking Calculated Risk – Positive: They understand risk reward trade off
  13. Always Playing the Blame Game – Positive: They own their actions
  14. Bad Saving Culture – Positive: Saving is a way of life
  15. Nonchalant Attitude towards their Health – Positive: They prioritize their health
  16. Keeping the Wrong Company – Positive: Surround themselves with quality people
  17. They Watch Too Much Television – Positive: Understand the value of down time
  18. Turn Pursue Opportunities – Positive: See opportunities where others don’t
  19. They Don’t Bank on Wishes and Luck – Positive: Understand that Good fortune is usually earned
  20. Giving Room for Pessimism – Positive: They are Critical Thinkers
  21. Lack of Vision – Positive: They have vision to see what could be
  22. Lack of Focus – Positive: Can Prioritize Effectively
  23. They give up too quickly – Positive: They understand passion is pushing through the hard parts
  24. They are Master Procrastinator – Positive: They do what they can when they can
  25. 25. They are afraid of change – Positive: They Understand Change Equals Growth

SMS 188 – How school can set you up for failure

How school can set you up for failure

Once upon a time

If you remember your time back in post secondary school how you were sold the idea that if you get this diploma or degree the world would be waiting for you at the other end.

Ways that we’re sold this

  1. In high school with limited knowledge of future careers
  2. In post-secondary with a very reductionist mindset (this is what your education will lead to with very specialized programs)
  3. In post-secondary with networking events 
  4. Assignments make you feel like you’re solving real problems

And everyday

So you worked really hard and got good grades with the belief that the system would deliver what it was promising

Until one day

Upon graduating you realize that getting a good paying job is more of a challenge then you thought. You could get a job that was maybe somewhat close to your field of study but not with a liveable wage or you could get a job but not in your field of study.

Why we hesitate to work in a career that deviates from the education we received

  1. We feel like we failed 
  2. We feel like we’re off track

And because of this 

So you decided that more education was the missing piece so you borrowed more money and picked up a masters degree which you thought would solve the problem

Reasons why we feel education is the answer:

  1. It’s easy – throwing money at problems is always easy
  2. It delays the inevitable
  3. It feels like progress 
  4. We’ve always been told “education can’t hurt”

And because of this

Now with student debt heaped on top of student debt you just need a job to deal with solving that problem.

Until finally

You realize that the job market values work experience more than education, and for good reason. My educational credentials represent the price of admission to the interview. You now focus on how to get job and life experience that the job market will value. You now know that your education was the foundation on which your marketable skills can the developed on. 

How do you know if you’re going down the right road?

When you’re facing a fork in the road and you choose education (what is actually the easy path whether it looks that way or not) and you go down that fork for too long and turns out you should have went down the other path (entering the job market) and taken the lower levels jobs but you’re already so far down the education road. If you took the education road, just like hiking down the wrong trail, you’ll have to come all the way back to the fork, so therefore it’s important not to go down the wrong fork for too long. 

It’s also important to ask people who are where you want to be how they got there. If you found out that that person got to where they are by piling education on top of education then go that route, but if you talk to the individual who is where you want to be, and they got there through job experience and taking opportunities then that’s where it’s all about; it’s worth checking in with people who are where you want to be. 

Ever since that day

You realize that there is no easy path or secret formula, although some people are lucky and happen to be in the right place at the right time. However, for most people, it is all about putting in the time and paying your dues to learn from people in your industry who have been where you are. It is about moving forward and gaining as much real world knowledge and experience that you can by doing more than is asked of you and working hard even when no one is watching. The most important takeaway here is life is not a straight line. Don’t follow the money follow the opportunities.

SMS 187 – The Problem with Warranties

Warranties

Introduction: A warranty is a legally binding commitment forming part of the sales contract which assures the buyer that the product or service is free from defects. A warranty often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty.

– The difference between insurance and warranties

– Apple Care

– Why avoid warranties

– The concept of being self insured

– The pricing model for warranties

– How to reason you way out of a warranty with basic math skills

How are warranties marketed?

  1. Basic manufacturing  warranty – Supposed to be company standing behind a product that a company believes in but in reality they are just protecting their brand
  2. Limited warranty (seen with everything) – generally cover nothing, usually just manufacturing defects which shouldn’t exist anyway, you think you’re getting something 
  3. 30-day money back guarantee – this is the best warranty you can ever be offered (protects the seller/retailers and protects them against the buyer) 
  4. Extended warranty – worst warranty, something you actually have to pay for
  5. Imposed warranties – Ontario New Home Warranty Program, administered by Tarion 

Buying extended warranties

  1. Warranty economics
    • If a consumer was always winning the warranty company would go out of business 
  2. Valuing the warranty instead of the product
  3. Extended warranty statistics
    • Warranties statistically cover the period of time with the least amount of risk or the most reliable time period of the product you’re buying

What do warranties actually represent?

  1. You potentially buying something you can’t afford to replace or repair
  2. Something you hope to never use – Don’t buy things you can’t afford to replace – own things don’t let things own you
  3. Artificial sense of security
  4. When you buy a warranty you are just moving problems into other buckets
  5. In the case of purchase extended warranty, prepaid repairs

If you bought a car and purchased the 3 year $2,800 extended warranty.

  • If you needed $1,000 of repairs over the 3 years would the warranty have been a good idea? No you would be down $1,500.
  • If you needed $2,800 of repairs over the 3 years would the warranty have been worth it? No you risked $2,500 over 3 years to save $300.
  • If you needed $3,000 of repairs over the 3 years would the warranty have been worth it? No, you bough a car that need $3,000 worth of repairs that is a very bad car

Problem: Do warranties really fill this need or are they marketed as something else. Warranties move buckets of worry from what if this thing fails can I afford to fix it to I hope what ever goes wrong with this thing it is covered under the warranty which is really just the prepayment of future repairs.

Problem: The economics of warranties. If a warranty company sold 100 people a $1,500 warranty which covered a bumper to bumper defects for 2 years on their car the warranty company would have collected $150,000. If half of the car owners claimed $1,500 worth of repairs

SMS 186 – Hobbies

Hobbies

Hobbies are more important than you think, this can often fill the gaps left between our life responsibilities and job responsibilities.

Hobby risk – chasing a new hobby every couple of months, when investigating a hobby try to identify the challenges of the hobby and try to determine if those are challenges or problems you enjoy solving.

You should have a minimum of three hobbies

  1. A hobby that exercises your body
  2. A hobby that exercises your mind
  3. A hobby that exercises your soul

Hobby perspectives:

  1. Beware of the hobby inside the hobby – sometimes you think you have a hobby that is an activity but you actually have a hobby of accumulating the equipment and supplies of a hobby.
  2. Hobbies 10 feet deep rather than 10 feet wide.
  3. Hobbies that are intertwined, pursue a hobby that leads to another hobby.

Hobby Considerations:

  1. Most hobbies can be test driven without much expense
  2. The more equipment/supplies you add to a hobby the more complexity you introduce
  3. You need to be realistic given your time constraints
  4. The more specific your interest the more engaged you will be
  5. A hobby should involve challenge, this is what will sustain interest

SMS 185 – Accepting the lifestyle your income delivers

Accepting the lifestyle your income delivers 

Life is full of choices, where you live, how you live, where you work, how you work 

You can choose a lifestyle and then try to acquire an income level to support it or you can choose a career and then discover a lifestyle that that career will support. 

Life stress vs job stress 

If you had to guess which is more stressful — choosing a lifestyle then acquiring an income or choosing a career and then discover a lifestyle — the reality is that both have their own stressors.  

Choosing a lifestyle first: 

(Lifestyle can be defined as an expensive truck, boat, cottage, and yearly trips or cash flowing your children through post secondary and reaching early financial independence) 

  1. Prioritize where you live over what you do 
  2. You limit your career options 
  3. Most likely unfulfilling working life 
  4. May experience more job stress 
  5. Income replacement may become more challenging  

Choosing a career first: 

  1. Prioritize what you do over where you live 
  2. Flexibility in employment opportunities  
  3. Most likely very fulfilling working life 
  4. May experience more life stress 
  5. Sometimes a lower earning potential  

Can you have both? 

Neither of these are wrong, just don’t try to do both you will be chasing a solution for most of your life.  

  • Common thread among both:  
    • The requirement to make concessions or sacrifices, be okay with that 
    • Accept the lifestyle that the income delivers  

Why may one appear more stressful? 

  1. One is notably more important to you — prioritize family etc.  
  2. Society and relational influences  
  3. You might not have considered the nuances of prioritizing one over the other  

What if you want to choose lifestyle first (and want the perks that come along with that) but are having a challenging time digesting the type of career, job, or industry that is required in order to finance prioritizing lifestyle over career? Does that mean you simply don’t want it badly enough? Tips.  

SMS 184 – You Can Have Anything You Want….Not Everything You Want

You Can Have Anything You Want…just NOT Everything You Want 

Have you ever wondered about the people who look like they have it all? 

Tip on finding focus: have interests and hobbies the lead to related interests and hobbies – hobby matrix 

We often idealize people’s lives or situation but are not willing to make the sacrifice  

If you want something nobody else has have to be will to do something nobody else does so  

if you want something somebody else has you need to look for the sacrifice they are making 

If you do the 5 whys you can get you can get to the sacrifice 

Upgrades in live are an example have anything you want – don’t let stuff own you….you own stuff 

Your anything needs to be realistic given your income 

The sacrifice can be what you are not choosing – Artists are known for sacrifice. Writers, painters, performers – all of them choose their art over other things – security, comfort, leisure, even relationships. 

The problem with having everything you want: 

  1. Cost – unsustainable 
  2. Sacrifice – you will have to make some at some point 
  3. Contentment – you will always be chasing that next thing 
  4. Short-term benefit….long-term cost 

The benefits of having anything you want: 

  1. Avoid regret – if you know what you truly want 
  2. Focus – 10 feet deep rather than 10 feet wide 
  3. Quality over quantity 
  4. Time – you only have so much to go around 

SMS 183 – Avoid Lifestyle Inflation…….Until When?

Avoid Lifestyle Inflation…….Until When? 

What is lifestyle inflation? 

The Problem with lifestyle inflation: 

  1. It happens gradually 
  2. It can impact your future goals 
  3. The new normal will become normal 
  4. Undoing lifestyle inflation is painful 

How to Avoid Lifestyle inflation: 

  1. Avoid comparisons – you have different goals 
  2. Have a documented plan – this will remind you why you are doing this 
  3. Associate with like-minded people – people can drag you down or pull you up 
  4. Focus on percentages not absolute dollars 
  5. Embrace the process……of building wealth 

Avoid Lifestyle Inflation…….Until When? 

  1. When you have a positive net worth you can start 
  2. When the math says you can 
  3. Do you really need to…..in every aspect of your life