Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings

Having a job? You can make it to the top 5%

There are 100 people at 65 years old:
One will be rich.
Four will be financially independent.
Five will be working.
Thirty six will be dead.
Fifty four will be dependent.

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Let’s suppose that most men and women start working at 25 and retire by 65.
How much money do you suppose an average man earn in 40 years?
According to CNBC( https://www.cnbc.com/2017/08/24/how-much-americans-earn-at-every-age.html ), this figure would be over $1.6 million. This is a substantial amount. This is a fortune.

Earl Nightingale in his popular audio program “Top 5%” talks about a research. There are 100 men and women at 25 starting out equally in America, the richest country on earth. Each has as much opportunity as the rest. By the time they are 65 years old:

  1. One will be rich.
  2. Four will be financially independent.
  3. Five will be working.
  4. Thirty six will be dead.
  5. Fifty four will be dependent.

Earl’s tape was in 1960s. However, the stats holds even in this present time. Only 5% are financially independent. This is the top 5% that we all want to belong to.

So according to CNBC above, most people will earn at least $1.6 million ($40K per year * 40 years) by the time they are 65 if they started working at 25. Only 5% makes the grade. 95% are either dead or don’t become financially independent. As I wrote in the article “Making 6 figure? How to avoid being one of 69% of Americans who have less than $1000 in the bank“, the survey by GoBankRates year after year still points out that many Americans who make 6 figures have less than $1000 in the bank. So where does the money all go? What’s the problem?

If you practice karate 40 hours a week, 50 weeks a year, for 40 years, you will agree that you will be an accomplished martial artist. I use Karate in this example as I practiced Musokai Karate for over 10 years. I realized the difference between an accomplished karate master and the rest is how much time they put into practicing persistently. My Shihan Arakaki is a living example of an accomplished Karate master through hard work and persistence.

If you practice anything (piano, acting, investing, programming, …anything) 8 hour a day, 5 days a week, 50 weeks ago, for 40 years, you can become an expert. 

In the above research, the fifty four men and women out of 100 who arrive at age 65 without having become financially independent in the richest land in the world have worked in the economy for 8 hours a day, 5 days a week, 50 weeks ago, for 40 years and have not figured out how to be financially independent for the remaining years of their life. 

The experts say that only 5% make the grade because that is the group that does not conform. They do not follow the crowd. 

Conformity is to act like everybody else. And by acting like everyone else, the odd is that 95 to 5 that we will miss the boat of becoming financially independent.

Why do people conform?

The reason to conform is simply because it is an easy thing to do. We have been taught to conform. From the time we were born through school, we were told what to do. We don’t want to be different as being different is ridiculed by others. We want to be liked and to belong to the group. We spent at least 18 years learning to conform.

Out of school, suddenly we find ourselves to be on our own for the first time. We get a job. The most natural thing for us to do as we have been trained to conform is to look around and see how other fellows are doing their jobs. Since we have always been told what to do, why should we start thinking for ourselves? Thinking for ourselves is much hard than to conform.

By starting at 25 and retiring at 65, you know that people have 40 years to become great at their craft. However, 95 percent won’t do it. The reason is because they do like everyone else, they follow the crowd.

Everyone has a choice. You can choose to follow the crowd to be like everyone else or to join the top 5%. The choice is yours.

If you don’t want to conform, you must think now before it’s too late.

If you decide to join the top 5%, let’s continue. If not, reading more will waste your time.

There are only two steps when it comes to financial independence. And anyone can do these two steps:

  1. One’s attitude toward their work.
  2. The money one can save.

First, no matter what your present job is, it contains many hidden opportunities. Take a moment in quietness, ask yourself those questions, and silently write down the answers:

  1. How can you become an expert in your present industry?
  2. Do you know your job and your industry like a doctor knows about medicine?
  3. What will your job be like in 5 years? Can you do it the same now?
  4. What are some ways that have not been done before to improve your job?

No matter what your job is, it contains the key to greatness. Look for it until you find it.

Second, your financial success has nothing to do with the money you earn but only with the money you save. Unless you save 10% or more of what you earn, you are doing yourself a disservice. Following those steps consistently and you will know the power of saving as well as enjoy your life, especially the later part when you need it most.

  1. First, save one-tenth of what you earn and dont touch it.
  2. Second, for every dollar you save, make it work for you. Make your savings your slaves. Make their children your slaves also.
  3. Third, control your expenditure so that you never have to tap into your saving. Better yet, slash your expense so that you may have some extra dollars to put into your saving. Remember #2, your saving will work for you along with its children, grandchildren,
  4. Fourth, guard your capital. Remember that getting rich is not a quick venture. You must be patient and not jump into any venture that causes you to lose your saving.
  5. Fifth, be disciplined and remember step #4. Warren Buffett follows this principle by saying “the first rule of investing is to not lose money. The second rule is to never forget rule #1”.

For detailed explanation, you can read more at: Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.

Don’t follow the crowd. Start thinking for yourself now. Look for the key to greatness in your job. Start saving and put your saving to work.

Remember that 95% won’t do it. You want to be financially independent. You want to join the top 5%. And you can.

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Other popular articles:

  1. How to guard yourself against negative influences
  2. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  3. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  4. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  5. How to get your dream job with no experience – Lessons from Bill McDermott
  6. 20 minutes that can change your life
  7. Life lessons from a Uber driver who was laid off
  8. Leaders are readers
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.
If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com

 

 

How can this Uber driver be happier driving Uber than being an executive?

The driver was a Vice President at a pharmaceutical company. He worked there for over 20 years. He’s happier now being a Uber driver than being a VP. The guy had so much energy. How?

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The uber driver got out of his car and helped load my luggages into the trunk after seeing that I was limping. He looked like a 30-year athlete. I appreciated him as my foot was injured.

The drive was pleasant. A a coach, I often start the conversation and build a relationship. However, the driver started first. He asked about my trip, my foot, and my stay. Then he shared with me about his life. We had a great connection being built up.

The driver was a Vice President at a pharmaceutical company. This explained why he was very good at relationship building.  He worked there for over 20 years. When his company struggled, he was laid off with a big severance package.

When he was working as the VP, he made a lot of money. He ate out all day. He lived in a mansion. He bought expensive stuffs for his wife every month. However, he’s a big fat guy. He was not satisfied with his life but was too busy to even care.

As for his spending, the more he earned, the more he spent.

Once he got laid off, at first it was a devastating blow to his lifestyle. After a month being in quietness, he realized that he’s not dead yet and he still has many years to live as well as a family to take care of.

He also noticed that his health was much better. He started joining groups to exercise. In three months, he lost 90 lbs. Now he’s an active member of a group that bikes daily at 6am.

He’s in late 50s with a look of a young 30s. He’s very upbeat about life.

And he has more money in savings now as a uber driver than he had as an executive of a big pharmaceutical company.

He often goes back to his former company to party with his former co-workers. He said that he felt sorry for them as they are big fat guys burying themselves into a life that they have no control over.

Several companies invited him to work for them after his layoff. He tried and left as he chooses his life as it is now.

Several lessons from this driver:

  1. Spend less than what you learn. The Uber driver was following this strategy: Learn the skill here.
  2. Create your life. Choose happiness.
  3. Exercise often. Start now.
  4. If you are laid off, get off it and congratulate yourself for starting a new life. Then start a new life.
  5. Rewrite a new chapter of your life everyday.
  6. Be friendly to others. Build relationships. You never know what might come after.
  7. Be friendly to Uber drivers. You can learn great deals from them.

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How to think BIG – the Jeff Bezos’ way

When Jeff Bezos announced to his boss that he would quit his job to start an online book store, his boss advised him to think about it for 48 hours. The important thing to know is that Jeff Bezos was working as a vice president for the famous firm D.E. Shaw. D.E. Shaw hired only genius (1% acceptance rate among math and computer scientists). Quitting his job would mean that Jeff Bezos would be leaving behind the high-paying job at one of the most famous firms on the Wall Street.
He did and outlined a framework to make BIG decision. This framework called Regret Minimization Framework centered around the question: “If you are 80, what will you think?”
For Jeff Bezos, leaving a stable, high-paying job with a big bonus was not a regret. He would be regretting if he did not take the opportunity to become an entrepreneur on the Internet.
Jeff founded Amazon in 1993 and as of this post, it’s a $761 billion company. Jeff is the richest person in the world with a $129.9 billion net worth.
Jeff Bezos’ words on decision-making:
I wanted to project myself forward to age 80 and say, “Okay, now I’m looking back on my life. I want to have minimized the number of regrets I have.”
I knew that when I was 80 I was not going to regret having tried this.
I was not going to regret trying to participate in this thing called the Internet that I thought was going to be a really big deal.
I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not ever having tried.
I knew that that would haunt me every day, and so, when I thought about it that way it was an incredibly easy decision.
And, I think that’s very good.
If you can project yourself out to age 80 and sort of think, “What will I think at that time?”
It gets you away from some of the daily pieces of confusion.
You know, I left this Wall Street firm in the middle of the year.
When you do that, you walk away from your annual bonus.

That’s the kind of thing that in the short-term can confuse you, but if you think about the long-term then you can really make good life decisions that you won’t regret later.

If you are facing a BIG decision, project yourself at the age of 80 and ask yourself: “What will I think?”, “Will I regret?”
Just remember that Jeff Bezos left behind a high-paying job with a big bonus as a vice president of one of the most famous firms on the Wall Street. He followed his dream and embraced a decision that he would be proud of when he’s 80 year old.
As you read this, you might say that only Jeff Bezos could do so and this does not apply to you, or this method does not work for you. You are absolutely right. The mere reason for your thinking so is what stops you from taking on something big.
Steve Jobs, the co-founder of Apple Inc, put the question differently: “if today were the last day of your life, would you want to do what you are about to do today?”
In Steve Jobs’s most inspirational speech:
For the past 33 years, I have looked in the mirror every morning and asked myself: if today were the last day of my life, would I want to do what I am about to do today?
Whenever my answer has been NO for too many days in a row, I know I need to change something.
Remembering that I will be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life.
Because almost everything, all external expectations, all prides, all fears of embarrassment or failure, these things just fall away in the face of death, leaving only what is truly important.
Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There’s no reason not to follow your heart.
Don’t let yourself regret at your death bed that you have not done something extraordinarily. Or as my mentor said, don’t die with the music still in your ear.
Like/share/put + if this helps someone.
Recommended reading:  The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company by John Rossman
#thesamuraicoach

Spending what you earn: less or more

Two friends Zo and Ma work for a big company. Both Zo and Ma make over $300K annually.

Ma is a big spender. He buys branded clothes, drives an expensive car, lives in a big house, goes on expensive vacations every year.

Zo never spends more than what he makes and always puts more into his savings. Zo goes shopping at thrift stores. 

When Zo and Ma turn 65s, both retire. Zo has $3 million in savings plus 401K while Ma has less than $10K plus 401K.

Ma figures that he can’t live too long. He takes money out of 401K, which amounts to over $2 million. Ma goes on vacations after vacations. He runs out of money in 5 years and is back to work at 70s making minimum wages.

Zo lives a happy retirement life. Without work, instead of vacations or spending, he contributes to charity, organizes community events, and teach financial freedoms.

What kind of life do you prefer?

“Buy what you have no need of and soon you shall sell your necessities.”

Read why this Uber driver is so happy after being laid off: https://wp.me/p74Bbr-Oz

Learn the steps to financial freedom: https://wp.me/p74Bbr-vB

If you think of too old, read this: https://wp.me/p74Bbr-Fw

Life lessons from a Uber driver who was laid off

The uber driver got out of his car and helped load my luggages into the trunk after seeing that I was limping. He looked like a 30-year athlete. I appreciated him as my foot was injured.

The drive was pleasant. A a coach, I often start the conversation and build a relationship. However, the driver started first. He asked about my trip, my foot, and my stay. Then he shared with me about his life. We had a great connection being built up.

The driver was a Vice President at a pharmaceutical company. This explained why he was very good at relationship building.  He worked there for over 20 years. When his company struggled, he was laid off with a big severance package.

When he was working as the VP, he made a lot of money. He ate out all day. He lived in a mansion. He bought expensive stuffs for his wife every month. However, he’s a big fat guy. He was not satisfied with his life but was too busy to even care.

As for his spending, the more he earned, the more he spent.

Once he got laid off, at first it was a devastating blow to his lifestyle. After a month being in quietness, he realized that he’s not dead yet and he still has many years to live as well as a family to take care of.

He also noticed that his health was much better. He started joining groups to exercise. In three months, he lost 90 lbs. Now he’s an active member of a group that bikes daily at 6am.

He’s in late 50s with a look of a young 30s. He’s very upbeat about life.

And he has more money in savings now as a uber driver than he had as a VP of a big pharmaceutical company.

He often goes back to his former company to party with his former co-workers. He said that he felt sorry for them as they are big fat guys burying themselves into a life that they have no control over.

Several companies invited him to work for them after his layoff. He tried and left as he chooses his life as it is now.

Several lessons from this driver:

  1. Spend less than what you learn. Learn the skill here.
  2. Create your life. Choose happiness.
  3. Exercise often. Start now.
  4. If you are laid off, get off it and congratulate yourself for starting a new life.

If you like what you just read, please click Like or put + in the comment.
Feel free to share if it helps someone.

Enter your email to subscribe to notifications from this site

Join 4,661 other followers

Other popular articles:

  1. How to guard yourself against negative influences
  2. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  3. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  4. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  5. How to get your dream job with no experience – Lessons from Bill McDermott
  6. 20 minutes that can change your life
  7. Life lessons from a Uber driver who was laid off
  8. Leaders are readers
  9. This simple skill is worth millions, helped many become millionaires, billionaires

Still need help, send me an email at coach@hoanmdo.com