EXTRAORDINARY MARKETING Wealth vs. Lifestyle (Part 2) by Grandmaster Stephen Oliver You know what I’d like to hear about? 1. What’s the quality of your lifestyle? Do you enjoy life? Are you doing what you enjoy? Do you take time for hobbies, travel, family and entertainment? If you don’t have time for these things because of your incredibly long hours, then, really, what good is the money?It’s easy to get caught up in working and striving for more and more money, but money is only good for two things: First, insuring that you can do and have the things you want RIGHT NOW. Are you able to afford those “toys” that are important to you? Do you refrain from spending money on things that won’t contribute substantially to the quality of your life. Do you have expensive STUFF to impress others, or because you appreciate them personally? Second, so that you can build security for your future — and I don’t necessarily just mean for your retirement. What if your school has a downturn (remember all kinds of unexpected things can happen)? Are you financially strong enough to weather the storm? What if one of your kids has unexpected medical expenses, or if you have a medical emergency? 2. What’s your NET Income? How much money do you have left over from your business after EVERYONE ELSE gets paid? If your expenses are in line and your gross is adequate or excellent, you could have 15%, 25% or maybe even 45% or 50% left over. Do $30,000 per month with $15,000 left over, and I’ll think you are incredible. Do $180,000 per month with $3,000 left over — well nothing personal, but who cares? 3. How much Net Worth have you built, and how much do you save? Do you have equity in your home? Equity in the building that houses your school? How’s your IRA, savings, and investments? Does your SCHWAB account grow every month,or are you living week to week? Forget about the guy who boasts a huge student base — I want to be like a friend of mine who bought the building that houses his school, and ended up owning the whole city block, with positive cash-flow from rental income and huge equity. Not very glamorous in the “bragging rights” pool at the next karate tournament or business convention, but hey, he paid HIMSELF first! 4. How much have you learned this week, month and year? If you are constantly learning, you will always be about to recover from setbacks as well as capitalize on new opportunities. Stuff: Your day-to-day lifestyle expenses must really be determined by what is really going to add enjoyment to your life, relative to the costs. A Personal Example Many years ago, many friends and employees laughed at me (remember when they laugh, it’s your money not theirs). Why did they laugh? Well, once a year, I would hold a Christmas party at my house — which is huge, beautiful, in one of the most expensive neighborhoods in the Denver metro area and has tremendous views overlooking the city. At the same time, on a day-to-day basis, I drove an Audi 4000, which was at about 150,000 miles (I finally traded it when it failed the emissions inspection, got damaged by hail and needed more repairs than it was worth). During this period, my house appreciated over $300,000, and my car basically went from the $20,000 I paid for it new to a value of $0. Often, we are tempted to buy things based upon the image we hope to project to friends, neighbors, business associates and others. If you really want that expensive toy because it enhances your enjoyment on a day-by-day basis, then by all means, get it and enjoy it. Just decide, on a daily basis, not because of the “image” you hope to project, or because of an attempt to impress your friends. Remember, about the only thing that you can buy for yourself that has any real value after you buy it is your home. Everything else, with very few exceptions, begins to depreciate or have minimal value right after you’ve spent the money. GRANDMASTER STEPHEN OLIVER, is a 9th degree black belt and is the founder and CEO of Mile High Karate schools, and founder of the <strong>Martial</strong> <strong>Arts</strong> Wealth Mastery Program. 74 MARTIAL ARTS WORLD NEWS VOLUME <strong>23</strong> | ISSUE 3
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