Motivational Sales Speaker’s advice on how to use Key Sales Performance Indicators to ‘See if the Shoe fits’ on both Sides of the Sales Interview Table
Sales Management: Do you have a sales management interview process that defines which sales candidate has the best ‘Right to Win’ for the sales position that’s being interviewed for?
In sales organizations located in competitive industries, the sales employee turnover water runs deep; averaging 30-70% per year. That results in a measurable hard-dollar cost, something you can actually put your finger on. But with the proper strategies, process and support tools that cost can be minimized with great returns. And it all starts with the interview process.
Sales Representatives: Do you have an interview strategy to diagnose if the company you are interviewing with is the right ‘Career Vehicle’ for you to make the money you want and get the recognition you deserve? Because it you don’t, you may find yourself in that sales employee turnover pool of 30-70%. And that’s not what you want on your next resume.
So let’s take a look at a way for ‘Both sides of the Table’ to discern if the sales position available is a mutual marriage for long term success.
It’s done through identifying Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good Key sales performance indicator example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that’s a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what’s the average revenue you achieve? That’s certainly an important KPI. Because if your average revenue per sale is 40% less than the average peer KPI, you might want to find out why and take focused action to improve it, as you’re leaving money on the table.
And what about the length of a sales cycle in days? Is that conditional or do you have a degree of control over it? If you have a team member that has an average sales cycle 30% shorter than the peer group, uncover and assimilate those best practices out to the rest of the sales team. Less time, more results. That makes ‘Sales Cycle’ a valuable KPI.
Here are the main key sales performance indicators to focus on:
• Average Revenue per sale
• Sales cycle in days
• 1st appointment to proposal ratio
• Closing ratio
These key sales performance indicators will dictate how many new appointments per week are necessary to generate to have a right to meet the sales objective for the sales position.
Perhaps this is better illustrated by the following two mock interviews:
Sales Management: “So Ted, I see here that you were in the top 2% of your sales peers for the last 4 years, averaging 172% of quota. That is excellent. I would love to hear about your process. Can you share your process with me?
Sales Candidate: “Well, I have always loved sales. My dad was in sales. I work very hard and talk with a lot of people. I knock on 100 doors per week. I like people and people like me. I’m the first one to the fax machine in the morning to see if any leads came through. I’m a great closer. I won’t take ‘No’ for an answer. Sometimes I come in the office on Saturday mornings to do some paperwork. By the way… did I mention my Dad was in sales?”
From a sales management perspective that type of answer is a huge red flag – even if their past performance is legitimate and not embellished. Based on that answer, this person may not be equipped to get the job done in a new environment.
The key to the sales interview question is the term ‘Process’. If a sales candidate has a ‘Process’, odds are that process is transferable to another sales position even if it’s selling another type of Product or service. Because ‘Process’ is transferable, hit and miss is not. But there’s one caveat.
The caveat is for both sales management and the sales candidate to understand the current sales opening’s key performance indicators so both parties can understand if the sales candidate’s ‘process’ is indeed transferable to the new position, basically to see if the shoe fits.
With that in mind, let’s look at the next sales candidate:
Sales Management: “So Cindy, I see here that you were in the top 2% of your sales peers for the last 4 years, averaging 172% of quota. That is excellent. I would love to hear about your process. Can you share your process with me?
Sales Candidate: “That’s a great question. Before I took the position, I did some research to make sure that the service I would be selling had a “Right to Win” in the marketplace.” In other words, were there any conditions either internally or externally in the marketplace that would impede my success?
Next, I set a goal to reach quota by my 2nd full month. The company did not expect it until the 4th month, but I saw how that would negatively affect my W-2.
To reach that goal, I needed an in-depth understanding of the critical elements of the sales process. So I researched the company’s historical sales numbers such as selling cycle in days, average revenue per account, the ratio of how many times a 1st appointment turns into a proposal, and the average closing ratio.
With that data, I was able to calculate how many new appointments I needed to set every week to ultimately reach my sales goal. Then I made sure this number was my first priority.
I kept track of my key sales performance ratios on a weekly basis. As my key sales performance ratios adjusted, I adjusted my new appointment sets per week.
My necessary new sales appointment activity varied between 4-6 appointments per week depending on where I stood on my other ratios.
I used my off time to expand my education about my industry. I conducted post sale interviews with decision-makers to learn everything I could about how I could better understand their business issues to be more effective in the future.
To supplement my front-end prospecting activity, I developed my own referral program and attended a lead-sharing group. I guess I was fortunate. Everything worked out.”
The second candidate illustrates a mastery of the sales process, and a deep understanding of how key sales performance indicators drive sales success.
So whether you’re the ‘Interviewer’ or the ‘Interviewee’ in diagnosing the right fit for the sales position, (1) Communicate your key sales performance indicators, (2) Identify what the benchmark ratios are needed for sales candidate Success and (3) communicate the ‘Fit’ for both company sales objectives and the sales candidate’s career goals.
After all, the main objective of any sales interview process is for BOTH parties to narrow the Gap between the perception of the sales position ‘pre-hire’ and the Reality of its accountability ‘post-hire’.
Saturday, December 09, 2006
Don’t Make These Mistakes With Your LLC or Corporation
A business entity can provide personal liability protection for its owners. The problem is that many people start business without proper instruction on how to run and manage agreements between parties, agreements with customers, internal paperwork, cash controls, voting rules, state and Federal reporting requirements and a host of other issues.
In fact, we have found between 20 to 25 actions, behaviors, or neglected tasks which commonly cause a business structure to be forfeited and can result in personal liability for the owner or owners.
Here are 5 of them:
1) USING THE BUSINESS FOR FRAUDULENT ACTIVITIES: YOU CANNOT, SHOULD NOT, AND SHALL NOT USE YOUR BUSINESS TO CHEAT OR DEFRAUD! For example, John Smith gathers money from investors claiming that he will develop a new product for his company. He never had planned to use this money for product development. He is sued by the investors, but John claims that his personal assets are protected since he was acting as the president of his limited liability company. No court will honor the limited liability company since fraud was involved. His personal assets and business assets will be at risk.
You may think that since this is an egregious example, it won’t ever happen to you. However consider the fact that many deals struck with the so-called ‘motivated sellers’ could give rise to a lawsuit under your state’s Deceptive Trade Practices Act (DTPA) or similar statute. Sometimes the line is not so clear. One bit of wisdom is to make sure that your agreements are fair:
a. You also can’t be wholly unfair or flagrantly one-sided when dealing with customers. A court can always look at a one sided transaction and either decide against you. Even worse a judge could declare that you are using the business to promote unfair dealings. This is bad news for you!
b. ASK YOURSELF: Would you want to be the buyer/customer on the other end of your deal? Despite popular conception you can structure ‘win-win’ deals with motivated sellers and make money. Ever hear of karma? Everything you do to or for another person will one day be done to or for you…so be fair!
2) FAILURE TO RESPECT THE BUSINESS AS SEPARATE FROM ITS OWNERS. YOU SHALL NOT MIX FUNDS FROM BUSINESS ACCOUNTS WITH YOUR PERSONAL FUNDS, ACCOUNTS, ETC. DO NOT USE COMPANY MONEY TO BUY PERSONAL ASSETS, GROCERIES, ETC. Simply put, if you do any of these things routinely (or perhaps only once) then your business structure is not likely to hold up in court. If you think this is another easy one…then WATCH OUT, because there are other more complex issues relating to the use of business and personal assets in the business. For more information see some of our top-rated courses.
3) INSUFFICIENT CAPITALIZATION: THE FAILURE TO PROPERLY CAPITALIZE THE BUSINESS. IN OTHER WORDS, A LACK OF RESERVES AND/OR INSURANCE COVERAGE. If your business does not have enough capital and/or insurance to cover operating expenses and potential liabilities then a state court will likely ‘pierce’ the business entity and hold the owners personally liable. Why would a court do this? The reason is to ‘find the money’. Your business must have enough insurance and/or savings to cover expenses, liabilities, and obligations. The amount of capitalization generally refers to the total value of assets (equipment, cash, etc.) in the company and the amount of insurance coverage. This is another COMPLEX area because you may need more or less ‘capitalization’ based on your business type. A general rule is: The more you deal with the public, the generally the greater your required level of capital.
4) FORGETTING TO FILE STATE REPORTS – Your secretary of state’s office will require you to keep up with reports and state taxes (sometimes called franchise taxes and/or business privilege taxes). If you don’t keep up with these reports and/or taxes (even if nominal amounts are owed) your business privileges will likely be revoked. Guess what privilege goes first?: The personal liability protection.
5) OTHER FORMALITIES – These include meetings, paperwork, required records, proper roles and obligations among the parties, and transfers of ownership interests, and more. It is very rare that we see full step-by-step and easy-to-follow details on creating ‘iron-clad’ records in these areas. For state liability protection and the ability to satisfy IRS auditors you need to understand these rules!
The list does not stop here, because we have found between 20 to 25 areas which are common traps for the business owner. While we have covered 5, many of the others are very easy to miss but just as important. Please make sure you get proper instruction on how to run your business entity after it is created! The true ‘lost art’ is learning how to maintain the protection of your LLC or corporation.
To learn more about the remaining traps, mistakes, and errors, which entity may be best for your business and how to file, create, run, and maintain your own ‘iron clad’ LLC or corporation, please see Mr. Barazandeh’s, Incorporate for Wealth ™ and Wealth Building LLC ™ courses at www.theinformedinvestor.com and www.attorneysecrets.com
I want to wish you all the best in your business and email me if you ever need help: taxenterprises@yahoo.com
In fact, we have found between 20 to 25 actions, behaviors, or neglected tasks which commonly cause a business structure to be forfeited and can result in personal liability for the owner or owners.
Here are 5 of them:
1) USING THE BUSINESS FOR FRAUDULENT ACTIVITIES: YOU CANNOT, SHOULD NOT, AND SHALL NOT USE YOUR BUSINESS TO CHEAT OR DEFRAUD! For example, John Smith gathers money from investors claiming that he will develop a new product for his company. He never had planned to use this money for product development. He is sued by the investors, but John claims that his personal assets are protected since he was acting as the president of his limited liability company. No court will honor the limited liability company since fraud was involved. His personal assets and business assets will be at risk.
You may think that since this is an egregious example, it won’t ever happen to you. However consider the fact that many deals struck with the so-called ‘motivated sellers’ could give rise to a lawsuit under your state’s Deceptive Trade Practices Act (DTPA) or similar statute. Sometimes the line is not so clear. One bit of wisdom is to make sure that your agreements are fair:
a. You also can’t be wholly unfair or flagrantly one-sided when dealing with customers. A court can always look at a one sided transaction and either decide against you. Even worse a judge could declare that you are using the business to promote unfair dealings. This is bad news for you!
b. ASK YOURSELF: Would you want to be the buyer/customer on the other end of your deal? Despite popular conception you can structure ‘win-win’ deals with motivated sellers and make money. Ever hear of karma? Everything you do to or for another person will one day be done to or for you…so be fair!
2) FAILURE TO RESPECT THE BUSINESS AS SEPARATE FROM ITS OWNERS. YOU SHALL NOT MIX FUNDS FROM BUSINESS ACCOUNTS WITH YOUR PERSONAL FUNDS, ACCOUNTS, ETC. DO NOT USE COMPANY MONEY TO BUY PERSONAL ASSETS, GROCERIES, ETC. Simply put, if you do any of these things routinely (or perhaps only once) then your business structure is not likely to hold up in court. If you think this is another easy one…then WATCH OUT, because there are other more complex issues relating to the use of business and personal assets in the business. For more information see some of our top-rated courses.
3) INSUFFICIENT CAPITALIZATION: THE FAILURE TO PROPERLY CAPITALIZE THE BUSINESS. IN OTHER WORDS, A LACK OF RESERVES AND/OR INSURANCE COVERAGE. If your business does not have enough capital and/or insurance to cover operating expenses and potential liabilities then a state court will likely ‘pierce’ the business entity and hold the owners personally liable. Why would a court do this? The reason is to ‘find the money’. Your business must have enough insurance and/or savings to cover expenses, liabilities, and obligations. The amount of capitalization generally refers to the total value of assets (equipment, cash, etc.) in the company and the amount of insurance coverage. This is another COMPLEX area because you may need more or less ‘capitalization’ based on your business type. A general rule is: The more you deal with the public, the generally the greater your required level of capital.
4) FORGETTING TO FILE STATE REPORTS – Your secretary of state’s office will require you to keep up with reports and state taxes (sometimes called franchise taxes and/or business privilege taxes). If you don’t keep up with these reports and/or taxes (even if nominal amounts are owed) your business privileges will likely be revoked. Guess what privilege goes first?: The personal liability protection.
5) OTHER FORMALITIES – These include meetings, paperwork, required records, proper roles and obligations among the parties, and transfers of ownership interests, and more. It is very rare that we see full step-by-step and easy-to-follow details on creating ‘iron-clad’ records in these areas. For state liability protection and the ability to satisfy IRS auditors you need to understand these rules!
The list does not stop here, because we have found between 20 to 25 areas which are common traps for the business owner. While we have covered 5, many of the others are very easy to miss but just as important. Please make sure you get proper instruction on how to run your business entity after it is created! The true ‘lost art’ is learning how to maintain the protection of your LLC or corporation.
To learn more about the remaining traps, mistakes, and errors, which entity may be best for your business and how to file, create, run, and maintain your own ‘iron clad’ LLC or corporation, please see Mr. Barazandeh’s, Incorporate for Wealth ™ and Wealth Building LLC ™ courses at www.theinformedinvestor.com and www.attorneysecrets.com
I want to wish you all the best in your business and email me if you ever need help: taxenterprises@yahoo.com
Why Do I Need To Write A Sales Letter?
"If You Are Going to be in Business, You Must Know How to Sell"
In his book Automatic Wealth Michael Masterson states that in order to achieve Financial Independence you need to master a financially valuable skill.
Selling is the number one skill you MUST learn if you are going to be in business, and this applies offline too. If you do not know how to sell, you and your business will struggle financially.
Now, before you give me that stock answer "I don't know how to sell..." think about this: we are selling everyday, whether we sell ourselves our friends or the latest film we've just watched.
Look at this common everyday phrase: - "have you seen xxxxxx? I saw it last night and I..."
Sound familiar?
Well that is selling in a nutshell! Some people do it better than others but we all do it, and with a little bit of training and practice you can soon become a master at it.
If you do not know how to sell or HATE selling how can you tell people about your product in a way that makes them want to buy it from you? And, if they don't buy from you - HOW can you make money?
Today, the Internet marketplace is jam-packed with plenty of fantastic ideas and wonderful products. Chances are that you have already located:
* A great idea that you think you can make money from
* A product that solves a specific problem, and/or
* An income opportunity to provide to people online
But the fact is:
"If you do not know how to sell your products, you cannot turn them into money-producing assets, no matter how great the demand or high in quality they actually are"
You can't - period.
Whether you are selling your intellectual asset, service, tangible goods, yourself or whatever kind of product or solution you have, unless you have the ability to sell, your product or asset is worth absolutely nothing.
This may sound a little harsh but it is a cold hard reality. Sure, you may get lucky once in a while but to really become successful.. Well, you have to be able to sell.
Good News.
All you need for the selling to be done on your behalf is powerful sales copy.
Take another look at that last statement again because...
"Your Sales Letter is Your Sales Person"
Yes, your sales letter is your virtual sales person. Your sales letter does all the selling to your prospects on your behalf.
Unlike in conventional and direct response marketing businesses, there is no need for you to train and recruit multiple sales people. Instead, all of your efforts should be focused on creating a powerful sales letter that produces a minimum 2 to 4 percent conversion rate, then fine-tuning that letter to improve the conversion rate as you go.
In other words, for every 100 prospects you refer or who visit your web page, you are aiming for a minimum of 2 to 4 of them to be your customers. Once you achieve that (and you will!), all you need to do is introduce targeted prospects to your sales letter, confident that it will do all the selling for you, day after day.
Your sales letter is like a personal letter from you to your prospect, in it you tell him why he needs your services / product. You remind him of his problems and why you have the solution to those problems, thus convincing your prospect to buy your product or the access to a service from you.
What You Need
You have probably already got a great idea, or a product and some basic selling skills (remember the film you saw the other day?)
Now all you need to do is develop and hone those skills in order to formulate a sensational sales letter. A sales letter that arouses a deep primal need in your prospects and makes them bolt frantically to your order button, desperate to buy your products, every time.
This means that you have to:
1. Improve your writing skills
Since you will be writing your own sales copy, you will need to have good writing skills and a good command of English. Even if English is not your mother tongue, with a little work you can develop this skill.
Note however, that you do not need to be a master of English to write a successful sales letter. As long as your letter carries emotion and personality it will work. Forget all the grammar lessons you learnt at school - just copy what works and learn from the masters.
2. Inject your personality into your letter
Yes, you must inject your personality. You will be writing a somewhat personal or emotional letter to your prospects. A letter which needs to move and arouse them to take action, so be friendly and approachable with your words. You need to write from the heart. Don't write a stiff letter, not only is it boring to read but it will turn people away from your web page faster than you can blink.
NB. Mix your writing skills with your personality, write from your heart with truth and sincerity and you will compose the perfect sales letter.
And last but not least, you need:
3. To take action
There is a wealth of information on how you can write your own killer sales copy staring right at you, don't waste it by not doing anything with it. If English is not your first language - no problem. Print out a couple of great sales letters that move you and copy their structure and grammar (Learn as You Earn) Don't just copy the letter wholesale though that's plain old theft. Your letter must come from your heart.
Got it? Good, now go and get started.
Copyright (c) 2006 Stuart Elliott
In his book Automatic Wealth Michael Masterson states that in order to achieve Financial Independence you need to master a financially valuable skill.
Selling is the number one skill you MUST learn if you are going to be in business, and this applies offline too. If you do not know how to sell, you and your business will struggle financially.
Now, before you give me that stock answer "I don't know how to sell..." think about this: we are selling everyday, whether we sell ourselves our friends or the latest film we've just watched.
Look at this common everyday phrase: - "have you seen xxxxxx? I saw it last night and I..."
Sound familiar?
Well that is selling in a nutshell! Some people do it better than others but we all do it, and with a little bit of training and practice you can soon become a master at it.
If you do not know how to sell or HATE selling how can you tell people about your product in a way that makes them want to buy it from you? And, if they don't buy from you - HOW can you make money?
Today, the Internet marketplace is jam-packed with plenty of fantastic ideas and wonderful products. Chances are that you have already located:
* A great idea that you think you can make money from
* A product that solves a specific problem, and/or
* An income opportunity to provide to people online
But the fact is:
"If you do not know how to sell your products, you cannot turn them into money-producing assets, no matter how great the demand or high in quality they actually are"
You can't - period.
Whether you are selling your intellectual asset, service, tangible goods, yourself or whatever kind of product or solution you have, unless you have the ability to sell, your product or asset is worth absolutely nothing.
This may sound a little harsh but it is a cold hard reality. Sure, you may get lucky once in a while but to really become successful.. Well, you have to be able to sell.
Good News.
All you need for the selling to be done on your behalf is powerful sales copy.
Take another look at that last statement again because...
"Your Sales Letter is Your Sales Person"
Yes, your sales letter is your virtual sales person. Your sales letter does all the selling to your prospects on your behalf.
Unlike in conventional and direct response marketing businesses, there is no need for you to train and recruit multiple sales people. Instead, all of your efforts should be focused on creating a powerful sales letter that produces a minimum 2 to 4 percent conversion rate, then fine-tuning that letter to improve the conversion rate as you go.
In other words, for every 100 prospects you refer or who visit your web page, you are aiming for a minimum of 2 to 4 of them to be your customers. Once you achieve that (and you will!), all you need to do is introduce targeted prospects to your sales letter, confident that it will do all the selling for you, day after day.
Your sales letter is like a personal letter from you to your prospect, in it you tell him why he needs your services / product. You remind him of his problems and why you have the solution to those problems, thus convincing your prospect to buy your product or the access to a service from you.
What You Need
You have probably already got a great idea, or a product and some basic selling skills (remember the film you saw the other day?)
Now all you need to do is develop and hone those skills in order to formulate a sensational sales letter. A sales letter that arouses a deep primal need in your prospects and makes them bolt frantically to your order button, desperate to buy your products, every time.
This means that you have to:
1. Improve your writing skills
Since you will be writing your own sales copy, you will need to have good writing skills and a good command of English. Even if English is not your mother tongue, with a little work you can develop this skill.
Note however, that you do not need to be a master of English to write a successful sales letter. As long as your letter carries emotion and personality it will work. Forget all the grammar lessons you learnt at school - just copy what works and learn from the masters.
2. Inject your personality into your letter
Yes, you must inject your personality. You will be writing a somewhat personal or emotional letter to your prospects. A letter which needs to move and arouse them to take action, so be friendly and approachable with your words. You need to write from the heart. Don't write a stiff letter, not only is it boring to read but it will turn people away from your web page faster than you can blink.
NB. Mix your writing skills with your personality, write from your heart with truth and sincerity and you will compose the perfect sales letter.
And last but not least, you need:
3. To take action
There is a wealth of information on how you can write your own killer sales copy staring right at you, don't waste it by not doing anything with it. If English is not your first language - no problem. Print out a couple of great sales letters that move you and copy their structure and grammar (Learn as You Earn) Don't just copy the letter wholesale though that's plain old theft. Your letter must come from your heart.
Got it? Good, now go and get started.
Copyright (c) 2006 Stuart Elliott
Getting a Mortgage After Bankruptcy
It is unfortunate that many bankruptcy attorneys do not give their clients more direction with regard to restoring themselves after their bankruptcy.
There are some simple steps that anyone who files a bankruptcy needs to take in order to restore themselves financially.
Using these steps below, you can restore your credit and prepare yourself to become a homeowner.
1. Get a copy of your credit report.
Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately. You can contact each credit reporting agency (Equifax, Experian, and TransUnion) directly to get a copy.
2. Have derogatory credit items that were charged off in your bankruptcy removed from your credit report.
You will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies. This process can be done by mail for free, or online for a small charge by the agencies.
3. Pay all of your bills on time.
Bankruptcy is a means to financial recovery. It is intended to allow you to "start over" financially. After your bankruptcy, you need to make sure that all of your bills are paid on time. If you are having trouble with an upcoming bill, DO NOT IGNORE IT. This is where most people go wrong. Call your creditors before they call you and let them know what your challenges are. If you can't get a reasonable rep on the line, ask for a supervisor, but again, do this as early as possible, not the day the bill is due or after it is late. If you are having trouble with your bills, you may need to solicit some help.
4. Have a strong documented rental history.
This is critical as it is most likely the largest monthly expense that you have. Underwriters (the people that actually sign off on your loan's approval) will look very hard at how you have paid your rent as they are going to replace it with a mortgage payment of equal or greater size. It is very important to be able to document your rent payment history very specifically. If you rent from an apartment community, then all the bank will have to do is request a Verification of Rent (a.k.a. VOR). If you have a private landlord, then the BEST way to document this is with cancelled checks for the last 12 months rent. Banks can do VOR's for private landlords, but rarely do because they feel that a landlord may have a relationship with the borrower and say what the bank wants to hear to help them get a loan. If you pay with cash or money orders, please stop doing this immediately and start paying with checks. Simply put, this is hurting you because by filing a bankruptcy you have already shown some financial instability. Paying your rent with cash or money order shows further financial instability and will not give you the positive rent history that the underwriter is looking for to give them the confidence in approving your loan.
5. Apply for a secured credit card.
A secured credit card allows you to make a deposit into an account to secure a credit card and then borrow against it to establish a new positive payment history. As time progresses, the bank may increase your credit line to an amount greater than your deposit, and then eventually return your deposit to you. (They will also often pay you interest on your deposit.) Be very cautious of companies that charge excessive fees or interest rates for their secured cards.
6. Prepare "non traditional" trade references These are accounts that you pay on such as cell phones, car insurance, and store accounts which can be used to document a positive payment history, but would not be traditionally reported to a credit bureau. Ideally, if you can provide 3 of these accounts with a 12-month payment history, this will help your loan officer in convincing the banks underwriter that you are a good credit risk. The best way to document this is with a letter from the company stating that you have had a positive payment history with them for the past 12 months. Alternatively, you can provide 12 months of cancelled checks showing 12 months of timely payments.
7. Resist the urge (or encouragement) to buy a car.
Some may tell you that this is the best way to rebuild your credit. The problem is that your interest rate will be so high, that your payments will make your debt ratios higher than normal, making it harder to qualify for a mortgage. Do you remember the figure of 45-50% of your monthly income that the bank will allow you to use towards your debts? This will quickly be absorbed by a car payment.
Only buy a car if a) you NEED (not want) a car, and b) you have the income to cover the car payment, any of your current debts, and your proposed new car payment.
We have seen SEVERAL people that have cars rather than homes because they went out and bought a car that they could not sell and their debt ratios were too high to qualify for a mortgage. It would be a shame to have a nice car (that depreciates daily), as opposed to a more humble car along with a mortgage on a home that gives you a tax break, and increases in value over time.
I hope this is helpful and helps get you on your way to financial recovery and on to finding the home of your dreams.
There are some simple steps that anyone who files a bankruptcy needs to take in order to restore themselves financially.
Using these steps below, you can restore your credit and prepare yourself to become a homeowner.
1. Get a copy of your credit report.
Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately. You can contact each credit reporting agency (Equifax, Experian, and TransUnion) directly to get a copy.
2. Have derogatory credit items that were charged off in your bankruptcy removed from your credit report.
You will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies. This process can be done by mail for free, or online for a small charge by the agencies.
3. Pay all of your bills on time.
Bankruptcy is a means to financial recovery. It is intended to allow you to "start over" financially. After your bankruptcy, you need to make sure that all of your bills are paid on time. If you are having trouble with an upcoming bill, DO NOT IGNORE IT. This is where most people go wrong. Call your creditors before they call you and let them know what your challenges are. If you can't get a reasonable rep on the line, ask for a supervisor, but again, do this as early as possible, not the day the bill is due or after it is late. If you are having trouble with your bills, you may need to solicit some help.
4. Have a strong documented rental history.
This is critical as it is most likely the largest monthly expense that you have. Underwriters (the people that actually sign off on your loan's approval) will look very hard at how you have paid your rent as they are going to replace it with a mortgage payment of equal or greater size. It is very important to be able to document your rent payment history very specifically. If you rent from an apartment community, then all the bank will have to do is request a Verification of Rent (a.k.a. VOR). If you have a private landlord, then the BEST way to document this is with cancelled checks for the last 12 months rent. Banks can do VOR's for private landlords, but rarely do because they feel that a landlord may have a relationship with the borrower and say what the bank wants to hear to help them get a loan. If you pay with cash or money orders, please stop doing this immediately and start paying with checks. Simply put, this is hurting you because by filing a bankruptcy you have already shown some financial instability. Paying your rent with cash or money order shows further financial instability and will not give you the positive rent history that the underwriter is looking for to give them the confidence in approving your loan.
5. Apply for a secured credit card.
A secured credit card allows you to make a deposit into an account to secure a credit card and then borrow against it to establish a new positive payment history. As time progresses, the bank may increase your credit line to an amount greater than your deposit, and then eventually return your deposit to you. (They will also often pay you interest on your deposit.) Be very cautious of companies that charge excessive fees or interest rates for their secured cards.
6. Prepare "non traditional" trade references These are accounts that you pay on such as cell phones, car insurance, and store accounts which can be used to document a positive payment history, but would not be traditionally reported to a credit bureau. Ideally, if you can provide 3 of these accounts with a 12-month payment history, this will help your loan officer in convincing the banks underwriter that you are a good credit risk. The best way to document this is with a letter from the company stating that you have had a positive payment history with them for the past 12 months. Alternatively, you can provide 12 months of cancelled checks showing 12 months of timely payments.
7. Resist the urge (or encouragement) to buy a car.
Some may tell you that this is the best way to rebuild your credit. The problem is that your interest rate will be so high, that your payments will make your debt ratios higher than normal, making it harder to qualify for a mortgage. Do you remember the figure of 45-50% of your monthly income that the bank will allow you to use towards your debts? This will quickly be absorbed by a car payment.
Only buy a car if a) you NEED (not want) a car, and b) you have the income to cover the car payment, any of your current debts, and your proposed new car payment.
We have seen SEVERAL people that have cars rather than homes because they went out and bought a car that they could not sell and their debt ratios were too high to qualify for a mortgage. It would be a shame to have a nice car (that depreciates daily), as opposed to a more humble car along with a mortgage on a home that gives you a tax break, and increases in value over time.
I hope this is helpful and helps get you on your way to financial recovery and on to finding the home of your dreams.
The Real Estate Mom’s Car – Organizing your Business on the Road
As a real estate professional, you already know your car is an extension of your business. It’s important to reflect this in the organization of your vehicle. You don’t want a client to see popsicle wrappers and other miscellaneous kid stuff in the backseat of your car. The impression you leave with your clients is vital. Nothing spells disaster faster for the real estate mom than to be perceived as unprofessional. Yes, life is busy, and yes, our cars often show that. However, taking the time to create the proper environment in your car is important.
While it can be difficult to do, it is a necessity. After all, our cars are an extension of ourselves and our lives. From business to running to the grocery store to stopping at McDonald’s after picking the kids up, creating boundaries for yourself AND for your children are important. Often, we’re as much to blame for a messy car as our children are, so it’s time to change habits.
The first rule for the real estate mom’s car is…
Keeping It Clean
If the car you do business in is messy to begin with, consider having it detailed at a professional car cleaning establishment to start. Not only easier to begin with, but less stress for you. Plus, they’ll likely do a far better job overall because that is their business.
If you prefer to tackle it yourself, be sure to vacuum up any and all stray crumbs, spot wipe any stains you see, and use a deodorizer to get rid of any clinging smells. When you’re done, the end result should be a sparkling clean car – inside and out.
Now all you have to do is keep it that way! Sounds simple, but let’s face it – at the end of a busy day, the last thing we want to do is clean anything, especially our car. Here are some hints to get you on the road of maintaining a professional appearance in your car:
• Set Rules. What comes into the car must go out of the car. This includes garbage, backpacks, sports equipment, books, etc. Keep a few extra garbage bags in your trunk – easy to pile a bunch of stuff into a bag to carry into the house, or into the garbage, in one haul.
• Use the Trunk. Anything that isn’t needed in the car itself put in the trunk. From real estate signs to basket balls, hide them away where your clients can’t see them.
• Keep it Professional. From simplicities to keeping the floor mats, cup holders, and dash wiped clean of dust and debris; to where you store your briefcase (in the backseat, not in the front), keep your vehicle professional in appearance. Purchase a small container of disposable cleaning wipes to keep in your glove box for quick clean-ups during the week. Also, you may want to reconsider personal accessories such as window stickers, children’s pictures, and fuzzy dice hanging from your rearview mirror.
• Keep Spare Change Handy. Keep some extra quarters in your glove box for impromptu visits through the local car wash. Plan on regular visits, regardless, to keep the car shiny and clean.
• Instill the No Eat Rule. Unless you’re going on a long car trip, it really doesn’t make any sense to ever eat in the car. Not only messy, but also potentially dangerous. Make sure meals and snacks are dealt with BEFORE getting into the car.
Consider some extras you can keep on hand to assist you in your business day. From paperwork to an extra change of clothes in the trunk, think about what “may” happen and be prepared for those necessities.
In today’s crazy rush to everything lifestyle, our cars can easily become a disaster area as we move from one event to another. Take the time to organize the clutter to give your clients the best impression of you possible. After all, their reflection on you could mean more or less business from their associates.
While it can be difficult to do, it is a necessity. After all, our cars are an extension of ourselves and our lives. From business to running to the grocery store to stopping at McDonald’s after picking the kids up, creating boundaries for yourself AND for your children are important. Often, we’re as much to blame for a messy car as our children are, so it’s time to change habits.
The first rule for the real estate mom’s car is…
Keeping It Clean
If the car you do business in is messy to begin with, consider having it detailed at a professional car cleaning establishment to start. Not only easier to begin with, but less stress for you. Plus, they’ll likely do a far better job overall because that is their business.
If you prefer to tackle it yourself, be sure to vacuum up any and all stray crumbs, spot wipe any stains you see, and use a deodorizer to get rid of any clinging smells. When you’re done, the end result should be a sparkling clean car – inside and out.
Now all you have to do is keep it that way! Sounds simple, but let’s face it – at the end of a busy day, the last thing we want to do is clean anything, especially our car. Here are some hints to get you on the road of maintaining a professional appearance in your car:
• Set Rules. What comes into the car must go out of the car. This includes garbage, backpacks, sports equipment, books, etc. Keep a few extra garbage bags in your trunk – easy to pile a bunch of stuff into a bag to carry into the house, or into the garbage, in one haul.
• Use the Trunk. Anything that isn’t needed in the car itself put in the trunk. From real estate signs to basket balls, hide them away where your clients can’t see them.
• Keep it Professional. From simplicities to keeping the floor mats, cup holders, and dash wiped clean of dust and debris; to where you store your briefcase (in the backseat, not in the front), keep your vehicle professional in appearance. Purchase a small container of disposable cleaning wipes to keep in your glove box for quick clean-ups during the week. Also, you may want to reconsider personal accessories such as window stickers, children’s pictures, and fuzzy dice hanging from your rearview mirror.
• Keep Spare Change Handy. Keep some extra quarters in your glove box for impromptu visits through the local car wash. Plan on regular visits, regardless, to keep the car shiny and clean.
• Instill the No Eat Rule. Unless you’re going on a long car trip, it really doesn’t make any sense to ever eat in the car. Not only messy, but also potentially dangerous. Make sure meals and snacks are dealt with BEFORE getting into the car.
Consider some extras you can keep on hand to assist you in your business day. From paperwork to an extra change of clothes in the trunk, think about what “may” happen and be prepared for those necessities.
In today’s crazy rush to everything lifestyle, our cars can easily become a disaster area as we move from one event to another. Take the time to organize the clutter to give your clients the best impression of you possible. After all, their reflection on you could mean more or less business from their associates.
Portfolio Management Art Of War
It’s been a long and hard decade…
Having been managing investment portfolios and accounts for the past decade both professionally and personally, me, like an army of other portfolio managers out there, are not only looking for the perfect trading system, but also the perfect way to manage an investment account.
Indeed, there are whole bombardments of theories of risk management and portfolio management out there that it is mind boggling. There are risk management concepts that attempt to govern each investment trade and position sizing based on complex probability calculations and there are even concepts that were born in Las Vegas, claiming what high stake poker gamblers do. The problem with these concepts is that they are mainly mathematical concepts that took the human factor out of the game completely.
Let’s face it, if you have ever managed a portfolio or an investment account, you will know that it is never as simple or left to chance as a game of poker and it is never as mechanical and emotionless as the mathematical calculations claim.
After a decade of thinking along these lines, I realized that these portfolio management concepts are important but there must be something on top of these that must govern the mind that executes these concepts. This “Meta Program” must be the “Operating System” in the mind of the portfolio manager and rule the way the portfolio manager or trader looks at a portfolio or investment account. With such a “Meta Program” in mind, the portfolio manager will be able assess changes in a portfolio or investment account in the right light and to behave in ways that are appropriate to the prevailing situation.
Here I present my personal “Meta Program” called the Portfolio Management Art of War.
Every Investor, Trader, Fund Manager or Portfolio Manager is an Emperor or King of his or her own trading Empire. Your Empire exists in a world that is engulfed and consumed in an eternal warfare. This world is called the Exchange (stock, forex, commodity or whatever exchange you are involved in.).
The boundaries and resources of your Empire are defined by the size of your Fund. Some Kings have bigger territories and some have smaller ones but all are driven by the common need to survive in the Exchange by expanding their territories and boundaries.
As a King, your mandate in the Exchange is to find ways and means to expand your Empire over time. If that cannot be done, you will soon find that you might not be the King of this Empire for very long.
In order to expand one’s territory, one must lead one’s Empire into war against the rest of the Exchange. Some Kings are more aggressive and some, more conservative. Regardless of level of aggression, every King’s resources must be committed in various ways into battle against the Exchange. Every winning battle expands the King’s territory and every losing battle loses part of the Empire and the boundaries shrinks. Some King has a target boundary size but know that as long as you remain a King, you will one day be drawn into battle against the Exchange again. The war in the Exchange is eternal.
In order to battle in the Exchange, every King must have a Strategy. Some splits one’s army up into many squads which fights independently and some engages in a total war against the Exchange with the whole Empire leaving only very little backup. Some organizes one’s army into many functional squads, with some squads fighting more aggressively and some squads fighting more conservatively. This Strategy is called the Portfolio Management System that the King chooses to adopt. Each squad then fights using specific Tactics called Trading Systems.
How a King chooses his Strategy and Tactic depends largely on the part of the Exchange that a King chooses to fight in. Every part of the Exchange (Forex or commodity or equity etc..) has its own unique characteristics and rules of engagement which the King must be thoroughly familiar with.
Every time a King sends forward a squad to do battle in the Exchange by drawing upon his Empire and placing a position in the Exchange, it must always be held in mind that there is no guarantee that you will ever see that brave general that was being sent forth again. If the squad loses, you lose a part of your Empire to the Exchange. Therefore you must take very frequent look at the overall map of your Empire (which should always be pinned up prominently in your war room.) and monitor how far back the Exchange has taken your Empire before thinking about and making your next move. If the squad wins, that general expands your Empire farther into the Exchange. That gives you more resources and more troops to wage your next battle. The King must then decide how these new resources are to be deployed… shall he assign the new troops into his existing squads? Should the King hold the new troops and resources back as backup for future battles? Should the King expand on the number of squads using the new troops? Strategic deployment of these resources could turn the tide of the entire war.
Before a King sends a squad forward, he must first assess the capability of the General that is to lead this assault. This is your Research. If you are highly confident that this General will win the battle, should you give him more troops so that he can claim more territory? If you are slightly less confident of that General, should you cut back on his troop or hold back the assault altogether?
Finally, if your Empire has been compromised and the Exchange has claimed a significant portion of it, is it time you consider a change in Strategy and Tactics? Even if the Exchange has claimed a large portion of your Empire, you might still be able to wage a series of battles so successful that you could probably claim the Empire that you started with and maybe even more, like so many famous Kings and Generals in the world. So, even if your Empire has taken a rough hit, it is not time to surrender yet. You are the King. If you give up, the whole Empire falls.
With this “Meta Program” in mind, you will be able to apply many of the famous art of war and their centuries of wisdom on top of the modern finance techniques that you have learnt in order to have even more certain survivability for a long time to come.
Every King needs a tactical map. I have made one such map which you can use for free in order to have a strategic overview of your Empire and help you keep the metaphor in mind at http://www.mastersoequity.com/metamap.htm
For everything you want to know about option trading, please visit http://www.optiontradingpedia.com
Having been managing investment portfolios and accounts for the past decade both professionally and personally, me, like an army of other portfolio managers out there, are not only looking for the perfect trading system, but also the perfect way to manage an investment account.
Indeed, there are whole bombardments of theories of risk management and portfolio management out there that it is mind boggling. There are risk management concepts that attempt to govern each investment trade and position sizing based on complex probability calculations and there are even concepts that were born in Las Vegas, claiming what high stake poker gamblers do. The problem with these concepts is that they are mainly mathematical concepts that took the human factor out of the game completely.
Let’s face it, if you have ever managed a portfolio or an investment account, you will know that it is never as simple or left to chance as a game of poker and it is never as mechanical and emotionless as the mathematical calculations claim.
After a decade of thinking along these lines, I realized that these portfolio management concepts are important but there must be something on top of these that must govern the mind that executes these concepts. This “Meta Program” must be the “Operating System” in the mind of the portfolio manager and rule the way the portfolio manager or trader looks at a portfolio or investment account. With such a “Meta Program” in mind, the portfolio manager will be able assess changes in a portfolio or investment account in the right light and to behave in ways that are appropriate to the prevailing situation.
Here I present my personal “Meta Program” called the Portfolio Management Art of War.
Every Investor, Trader, Fund Manager or Portfolio Manager is an Emperor or King of his or her own trading Empire. Your Empire exists in a world that is engulfed and consumed in an eternal warfare. This world is called the Exchange (stock, forex, commodity or whatever exchange you are involved in.).
The boundaries and resources of your Empire are defined by the size of your Fund. Some Kings have bigger territories and some have smaller ones but all are driven by the common need to survive in the Exchange by expanding their territories and boundaries.
As a King, your mandate in the Exchange is to find ways and means to expand your Empire over time. If that cannot be done, you will soon find that you might not be the King of this Empire for very long.
In order to expand one’s territory, one must lead one’s Empire into war against the rest of the Exchange. Some Kings are more aggressive and some, more conservative. Regardless of level of aggression, every King’s resources must be committed in various ways into battle against the Exchange. Every winning battle expands the King’s territory and every losing battle loses part of the Empire and the boundaries shrinks. Some King has a target boundary size but know that as long as you remain a King, you will one day be drawn into battle against the Exchange again. The war in the Exchange is eternal.
In order to battle in the Exchange, every King must have a Strategy. Some splits one’s army up into many squads which fights independently and some engages in a total war against the Exchange with the whole Empire leaving only very little backup. Some organizes one’s army into many functional squads, with some squads fighting more aggressively and some squads fighting more conservatively. This Strategy is called the Portfolio Management System that the King chooses to adopt. Each squad then fights using specific Tactics called Trading Systems.
How a King chooses his Strategy and Tactic depends largely on the part of the Exchange that a King chooses to fight in. Every part of the Exchange (Forex or commodity or equity etc..) has its own unique characteristics and rules of engagement which the King must be thoroughly familiar with.
Every time a King sends forward a squad to do battle in the Exchange by drawing upon his Empire and placing a position in the Exchange, it must always be held in mind that there is no guarantee that you will ever see that brave general that was being sent forth again. If the squad loses, you lose a part of your Empire to the Exchange. Therefore you must take very frequent look at the overall map of your Empire (which should always be pinned up prominently in your war room.) and monitor how far back the Exchange has taken your Empire before thinking about and making your next move. If the squad wins, that general expands your Empire farther into the Exchange. That gives you more resources and more troops to wage your next battle. The King must then decide how these new resources are to be deployed… shall he assign the new troops into his existing squads? Should the King hold the new troops and resources back as backup for future battles? Should the King expand on the number of squads using the new troops? Strategic deployment of these resources could turn the tide of the entire war.
Before a King sends a squad forward, he must first assess the capability of the General that is to lead this assault. This is your Research. If you are highly confident that this General will win the battle, should you give him more troops so that he can claim more territory? If you are slightly less confident of that General, should you cut back on his troop or hold back the assault altogether?
Finally, if your Empire has been compromised and the Exchange has claimed a significant portion of it, is it time you consider a change in Strategy and Tactics? Even if the Exchange has claimed a large portion of your Empire, you might still be able to wage a series of battles so successful that you could probably claim the Empire that you started with and maybe even more, like so many famous Kings and Generals in the world. So, even if your Empire has taken a rough hit, it is not time to surrender yet. You are the King. If you give up, the whole Empire falls.
With this “Meta Program” in mind, you will be able to apply many of the famous art of war and their centuries of wisdom on top of the modern finance techniques that you have learnt in order to have even more certain survivability for a long time to come.
Every King needs a tactical map. I have made one such map which you can use for free in order to have a strategic overview of your Empire and help you keep the metaphor in mind at http://www.mastersoequity.com/metamap.htm
For everything you want to know about option trading, please visit http://www.optiontradingpedia.com
A Synopsis Of What It Takes To Trade The Forex Market With Success
This is the first article of a series whose purpose is both educational and practical.And above all they aim to be interactive meaning that any comments suggestions or ideas are more than welcome.
Lets start from the basics.The first thing someone needs is very good education.And this requires a lot of thorough research as there are many sources but not all are worth the money for their services.So in this sense an online forex course could be a good idea along with some books.But here comes the first major problem.Which course and which books,which aspects to cover?The technical analysis issue?The maxim go with the trend?The candlesticks analysis?And which system to use and follow?There are thousands of them!So before we even begin a trader is confused.And confusion is a very bad enemy but it can be arranged.How it can be arranged?With some simple steps.Such as simplicity.The more you know the better chances you have to succeed trading forex and it all comes down to probabilities.
Education is a must to all trading aspects from stocks to futures to forex.But forex has two unique features.High liquidity and extremely high leverage.And although the liquidity is a very good feature high leverage is not.At least not until you know what you are doing.Here we focus again on education.Besides a participation in a forex course either online or not,an amount that will be put away as an investment for education is the first thing a trader must do.Some ideas are to focus on analyzing the current conditions of the market and to have a bias for a specific currency pair.A system such as following the trend could be the core of a trading strategy.And a demo account with many virtual trades as many as possible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan,stick to it and apply very strict money management rules because if the capital is finished and it very easy this to happen then our trading career will finish within a few days,months or even hours.
Lets face the truth that trading is not easy.It is unfortunately far more easy for someone to lose all his account rather than make wild profits beyond each expectation.That is because emotions and psychology are very crucial for success.Some of the most important emotions are fear,uncertainty,euphoria and revenge.Revenge comes into play very very often as when someone loses an amount wants desperately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader.Without specific goals and a written procedure a trader is like a cargo ship that has sailed without any destination.Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may happen.Risks exist all the time.The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates,you never know what you gonna get!
It is true.Be as prepared as possible.Do not let the brokers excite you promising very high returns and extremely high leverage.Do some very thorough research before opening an account funded with real money.Compare the bid-ask spreads and technical support to name only a few aspects.
Be very skeptical to previous results as offered from many signal services.The major aim should be to learn to trade and make your own decisions and not blindly follow some others decisions and opinions. Confidense and experience come with the passage of time.
So we mentioned simplicity before.Being realistic and having a controlled life balance is very important.One major goal should be consistency so as to have the ability to make profits each month and keep them.
Fundamental news are another important issue and in essence the technical analysis is the mirror of fundamentals.Expectations change rapidly and emotions also.And if you think about it emotions and expectations mainly move the forex market.Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best approach for a trader would be to set specific goals and if achieved then stop trading.The worst idea is to trade in a choppy market where random noise will make it difficult to get specific profits.
So a tested system with very precise rules such as entering exiting and having stop-loss orders may not be a holly grail but is surely one very good approach to start with and focus on it.Pivot points are such a system.At least it is a good start.They encompass education,discipline,strict criteria,targets and are a proven system that major players use.They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as possible.Meaning that :
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance.Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be.Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be conservative and even apply an 1:1 ratio by applying very strict risk management risking no more than 2-3% of total capital per trade.Survival is everything.
3.It would be a good idea from time to time to have breaks from trading.Opportunities exist always so stopping trading when losses of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost.Trading is not gambling it is a way of investment.The philosophy should be to define realistic goals such as a number of pips per day and if achieved then stop trading.Greed is another bad enemy of traders.On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to psychology to a proven trading system etc.Each idea will have more in depth analysis in the very near future.Your comments and suggestions will help us a lot to focus on what you need or want to analyze.Above all interactive communication brings the best results.
Lets start from the basics.The first thing someone needs is very good education.And this requires a lot of thorough research as there are many sources but not all are worth the money for their services.So in this sense an online forex course could be a good idea along with some books.But here comes the first major problem.Which course and which books,which aspects to cover?The technical analysis issue?The maxim go with the trend?The candlesticks analysis?And which system to use and follow?There are thousands of them!So before we even begin a trader is confused.And confusion is a very bad enemy but it can be arranged.How it can be arranged?With some simple steps.Such as simplicity.The more you know the better chances you have to succeed trading forex and it all comes down to probabilities.
Education is a must to all trading aspects from stocks to futures to forex.But forex has two unique features.High liquidity and extremely high leverage.And although the liquidity is a very good feature high leverage is not.At least not until you know what you are doing.Here we focus again on education.Besides a participation in a forex course either online or not,an amount that will be put away as an investment for education is the first thing a trader must do.Some ideas are to focus on analyzing the current conditions of the market and to have a bias for a specific currency pair.A system such as following the trend could be the core of a trading strategy.And a demo account with many virtual trades as many as possible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan,stick to it and apply very strict money management rules because if the capital is finished and it very easy this to happen then our trading career will finish within a few days,months or even hours.
Lets face the truth that trading is not easy.It is unfortunately far more easy for someone to lose all his account rather than make wild profits beyond each expectation.That is because emotions and psychology are very crucial for success.Some of the most important emotions are fear,uncertainty,euphoria and revenge.Revenge comes into play very very often as when someone loses an amount wants desperately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader.Without specific goals and a written procedure a trader is like a cargo ship that has sailed without any destination.Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may happen.Risks exist all the time.The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates,you never know what you gonna get!
It is true.Be as prepared as possible.Do not let the brokers excite you promising very high returns and extremely high leverage.Do some very thorough research before opening an account funded with real money.Compare the bid-ask spreads and technical support to name only a few aspects.
Be very skeptical to previous results as offered from many signal services.The major aim should be to learn to trade and make your own decisions and not blindly follow some others decisions and opinions. Confidense and experience come with the passage of time.
So we mentioned simplicity before.Being realistic and having a controlled life balance is very important.One major goal should be consistency so as to have the ability to make profits each month and keep them.
Fundamental news are another important issue and in essence the technical analysis is the mirror of fundamentals.Expectations change rapidly and emotions also.And if you think about it emotions and expectations mainly move the forex market.Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best approach for a trader would be to set specific goals and if achieved then stop trading.The worst idea is to trade in a choppy market where random noise will make it difficult to get specific profits.
So a tested system with very precise rules such as entering exiting and having stop-loss orders may not be a holly grail but is surely one very good approach to start with and focus on it.Pivot points are such a system.At least it is a good start.They encompass education,discipline,strict criteria,targets and are a proven system that major players use.They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as possible.Meaning that :
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance.Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be.Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be conservative and even apply an 1:1 ratio by applying very strict risk management risking no more than 2-3% of total capital per trade.Survival is everything.
3.It would be a good idea from time to time to have breaks from trading.Opportunities exist always so stopping trading when losses of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost.Trading is not gambling it is a way of investment.The philosophy should be to define realistic goals such as a number of pips per day and if achieved then stop trading.Greed is another bad enemy of traders.On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to psychology to a proven trading system etc.Each idea will have more in depth analysis in the very near future.Your comments and suggestions will help us a lot to focus on what you need or want to analyze.Above all interactive communication brings the best results.
"Liar Loans" Lead To A Spike In Mortgage Foreclosures
It starts out all so innocently, the loan application (1003) is filled out while gathering the income and debts verified through credit reports and mortgage payoffs. Then the Debt To Income Ratio (DTI) is calculated dividing the debts including the new housing expense by the income and wham, it happens. The DTI is over 60%. Conventional loan guidelines historically have been around 28% for housing expenses including taxes, insurance, private mortgage insurance and homeowner maintenance fees. The total debt ratios had been around 36% for all monthly debts including the housing expense. With computer modeling and automatic approvals some DTI ratios have been allowed to float up in some cases to 50% to 60% if the borrower has lots of assets and the loan is on a full doc basis. As time passed, more and more hybrids began to show up. Mortgage Brokers were inundated with this new loan product called Stated Income. Simply the borrower would state their income on page two of the 1003 loan application and ratios would fall within lender acceptable limits. The original thinking by lenders were grounded in the premise that many busy well to do borrowers didn’t have time to compile tax returns and a litany of proof of their assets. This especially applied to borrowers who owned a multitude of income producing properties or had filed for extension on filing a personal or corporate return for a self-employed borrower. This was a very popular plan and billions of new mortgage originations were sold using the Stated Income or other derivations of the basis plan. It was great for self-employed borrowers who found it difficult to compile in a timely manner all the documentation for a fully documented loan which would use tax returns and a year to date statement from a CPA.
Later on, due to the heavy volume of mortgage business and a desire on part of lenders to expand this popular niche into other areas W-2 wage earners were allowed to state their income as well as those on fixed income such as social security, disability and pensions. For a few years this seemed to be ok. However, as time went on, and the economy in various parts of the country began to slow down, borrowers with stated income loans began to have an inordinate amount of foreclosures. At this time, Stated Income mortgage loans rival the Option ARM for frequency of foreclosures. Fraud reared its ugly head as participating players in the loan process were structuring deals with phony baloney borrowers who didn’t exist. These phony buyers are called “straw buyers” by prosecuting attorneys. Many times the first payments were never made. Most mortgage brokers and lenders have buy back agreements from the secondary markets so when a loan goes bad the originator is on the hook to buy the loan back. If fraud was involved, that shop many times already closed up and had run away with any ill-gotten gains together with the rest of the crew who were working the scam. Those players are prosecuted and serve prison time for their sins.
The other borrowers who were just trying to get a loan to pay off debts and a few months down the road after the new mortgage was in place were not able to make their payments. A Notice of Default is sent to the borrower with foreclosure action following when mortgage payments are not made. In a foreclosure process, the lender holding the bag goes back through all the files looking to perform an autopsy on the loan to determine what happened. Every piece of paper is examined, verifications are double-checked with a high powered microscope. All who committed a fraudulent lending practice are sought out and demands are made for redemption and loan buy back. Some enterprising participants had provided false bank statements and other loan documents, which were in fact fraudulently created on a fine computer word processor. The fix had been in.
Many of these stated loan products were all the rage then the fraud hit the fan. Borrowers could not afford the payments and did not even come close to having enough to even live on. Major changes are afoot. Many mortgage brokers exercise much self-discipline and will not even consider a Stated Loan with someone on fixed income. Where is the “real” money going to come from? Guidelines are tightening well after the horse has escaped from the barn. There is a web page called www.salary.com that gives the high and low range of income for various occupations. Lenders will immediately check this to see if the Stated Income is within this range. In the past, many times, these loans were done with a wink. This is no longer the case. Recently, Form 4506, which is an IRS form that a borrower signs allowing the lender to check with the IRS and determine income from the borrowers tax returns and W-2s if any. Formally this verification process with the IRS was a time consuming endeavor, but this is not the case anymore. For like $4.00 per file, a lender can access, with the borrower’s written permission, an online web site and access the IRS site to verify income. Many lenders will not close the Stated Income loan without an IRS Form 4506 being signed. Many of these loans are sold into the secondary market that helps keep the mortgage money supply flowing. As more and more foreclosures ensue from the Stated Income Mortgage Products there will be a major shake out with tightening of regulations and a search for any player, including the borrowers, who may have had a hand in this “Liar Loan” product. The fallout is already underway.
What is a borrower to do? For one, look for mortgage products that do not require stating a phony income number. A No Doc loan requires stating No Income on the 1003 loan application. A No Ratio does not require income to be listed but verifies employment and term on the job. It has to make sense. The days of loose lending may be over for many. Bottom line, if it doesn’t make sense, it probably is not a good loan. Think long and hard about using a Stated Income loan product. If it conforms with what it originally designed loan program for the busy borrower with lots of cash and assets and no time to pull things together, great. If not, think about passing for some other loan product. It could impact your walk around freedom. A negative loan experience will certainly impact a borrower’s credit and help precipitate a long and painful recovery from this credit blemish resulting from a foreclosure. Find another mortgage product to achieve your financial goals.
Dale Rogers
http://www.brokencredit.com
http://www.sellerhelpsbuyer.com
Later on, due to the heavy volume of mortgage business and a desire on part of lenders to expand this popular niche into other areas W-2 wage earners were allowed to state their income as well as those on fixed income such as social security, disability and pensions. For a few years this seemed to be ok. However, as time went on, and the economy in various parts of the country began to slow down, borrowers with stated income loans began to have an inordinate amount of foreclosures. At this time, Stated Income mortgage loans rival the Option ARM for frequency of foreclosures. Fraud reared its ugly head as participating players in the loan process were structuring deals with phony baloney borrowers who didn’t exist. These phony buyers are called “straw buyers” by prosecuting attorneys. Many times the first payments were never made. Most mortgage brokers and lenders have buy back agreements from the secondary markets so when a loan goes bad the originator is on the hook to buy the loan back. If fraud was involved, that shop many times already closed up and had run away with any ill-gotten gains together with the rest of the crew who were working the scam. Those players are prosecuted and serve prison time for their sins.
The other borrowers who were just trying to get a loan to pay off debts and a few months down the road after the new mortgage was in place were not able to make their payments. A Notice of Default is sent to the borrower with foreclosure action following when mortgage payments are not made. In a foreclosure process, the lender holding the bag goes back through all the files looking to perform an autopsy on the loan to determine what happened. Every piece of paper is examined, verifications are double-checked with a high powered microscope. All who committed a fraudulent lending practice are sought out and demands are made for redemption and loan buy back. Some enterprising participants had provided false bank statements and other loan documents, which were in fact fraudulently created on a fine computer word processor. The fix had been in.
Many of these stated loan products were all the rage then the fraud hit the fan. Borrowers could not afford the payments and did not even come close to having enough to even live on. Major changes are afoot. Many mortgage brokers exercise much self-discipline and will not even consider a Stated Loan with someone on fixed income. Where is the “real” money going to come from? Guidelines are tightening well after the horse has escaped from the barn. There is a web page called www.salary.com that gives the high and low range of income for various occupations. Lenders will immediately check this to see if the Stated Income is within this range. In the past, many times, these loans were done with a wink. This is no longer the case. Recently, Form 4506, which is an IRS form that a borrower signs allowing the lender to check with the IRS and determine income from the borrowers tax returns and W-2s if any. Formally this verification process with the IRS was a time consuming endeavor, but this is not the case anymore. For like $4.00 per file, a lender can access, with the borrower’s written permission, an online web site and access the IRS site to verify income. Many lenders will not close the Stated Income loan without an IRS Form 4506 being signed. Many of these loans are sold into the secondary market that helps keep the mortgage money supply flowing. As more and more foreclosures ensue from the Stated Income Mortgage Products there will be a major shake out with tightening of regulations and a search for any player, including the borrowers, who may have had a hand in this “Liar Loan” product. The fallout is already underway.
What is a borrower to do? For one, look for mortgage products that do not require stating a phony income number. A No Doc loan requires stating No Income on the 1003 loan application. A No Ratio does not require income to be listed but verifies employment and term on the job. It has to make sense. The days of loose lending may be over for many. Bottom line, if it doesn’t make sense, it probably is not a good loan. Think long and hard about using a Stated Income loan product. If it conforms with what it originally designed loan program for the busy borrower with lots of cash and assets and no time to pull things together, great. If not, think about passing for some other loan product. It could impact your walk around freedom. A negative loan experience will certainly impact a borrower’s credit and help precipitate a long and painful recovery from this credit blemish resulting from a foreclosure. Find another mortgage product to achieve your financial goals.
Dale Rogers
http://www.brokencredit.com
http://www.sellerhelpsbuyer.com
Pensions Guide: Private Pensions
It’s now unlikely that the state pension will be enough to keep you living comfortably when you retire. It provides only basic support, and the government itself is keen to encourage people to save as much as they can to supplement their state pension and give themselves a comfortable income in retirement. Combined with better health in the general population – meaning longer life expectancies – and dwindling stock market returns over the last decade or so, the so-called ‘pension crisis’ is a call to action for people to plan their finances carefully and put more and more cash aside to ensure a safe and secure future for themselves.
This article is the second of two guides examining the fundamentals of pensions. The first guide focuses on state pension provision, while this one outlines some of the possibilities for making personal pension arrangements. They are intended for information only and do not constitute financial advice. It is recommended that you speak to a financial advisor for professional advice on planning your finances for retirement.
Saving for the future
There are lots of ways in which you can save for the future – savings accounts, stocks and shares and property investment, for example.
However, all of these are subject to tax. Pension schemes are much more tax-efficient as tax relief is given on contributions made and the income they provide during retirement is tax-free. This is why pensions are a common way of saving for retirement.
There are two main types of personal pensions – final salary and money purchase. The first can only be provided through occupational schemes, but the second can be purchased privately on an individual basis.
Final salary
Final salary schemes, also known as defined benefit schemes, provide a guaranteed income based on a percentage of salary earned during your final year of work as well as length of service with the company. It’s possible to retire on up to two thirds of your final salary.
As it guarantees to provide a certain level of income, it’s often considered to be the best type of pension scheme available. However, there has been a decline in the number of employers offering final salary schemes in the last few years because of the expense of maintaining them. Falls in the stock market have seen many pension investment funds drop drastically in value, meaning that the employer must make up the difference in order to provide the guaranteed income to the scheme’s members. Another expense for employers with final salary schemes is the 10% tax levied on dividends, a measure introduced by the government in 1997, which again can have a detrimental impact on the size of pension funds.
Money purchase
With money purchase schemes, also know as ‘defined contribution’ plans, members make payments into a fund which is then invested into the stock market. On retirement, the accumulated funds are used to buy what’s called an annuity, which provides a regular retirement income. The amount you’ll receive in retirement isn’t guaranteed – it depends on how well the stock market has performed and on annuity rates at the time that you take out your annuity. Whereas final salary pensions put the burden of risk on the employer, who must make up the amount to a guaranteed level, it’s the member who’s responsible for the risk of a shortfall in money purchase schemes. Members may therefore need to save more cash independently to ensure they’ll have a comfortable retirement.
You’ll have some flexibility to choose what funds your money is invested in, and your decisions will depend on your attitude to risk.
Higher risk investments can provide much greater potential returns, but at the same time can also make the biggest losses. ‘Safer’ investments will reduce the risk of losses but will not be likely to yield as big returns as higher risk investments.
Annuities
An annuity is a fixed, regular amount of money paid to someone, usually for the rest of their life, which is purchased using a lump sum from a pension fund, for example. It’s invested in the stock market, usually in funds considered to be safe. Annuity rates have plummeted in the last decade, meaning that many people are now expecting lower annuity incomes and are having to change their retirement plans. However, there are various different options when it comes to annuities. Members aren’t obliged to take out the annuity offered by their own scheme – they can use their accumulated pension funds to buy an annuity from any annuity provider on the open market, where they may be able to get a better rate. It’s also possible to take up to 25% of the pension fund as a tax-free cash lump sum, leaving the other 75% to purchase an annuity. A third option is to take out a short-term annuity of up to five years to keep your pension invested for a little longer in the hope that it will increase in value to allow you to purchase a better lifetime annuity further down the line. Another way of delaying taking out an annuity is to receive an income directly from your pension fund, keeping it invested in the hope of gaining higher returns to sustain the income received. However, the value of the funds could fall just as easily as they could rise, which may leave you worse off. This option is known as an ‘unsecured pension using income withdrawal’. Finally, it’s possible not to purchase an annuity at all and instead receive an income directly from your pension fund from the age of 75 with an ‘alternative secured pension’. Before 2006 it was a legal requirement to purchase an annuity from pension funds by the age of 75, but the law changed to allow people over 75 to receive this type of income instead, although the total amount of income that can be drawn down from it is 70% of a lifetime annuity. It’s intended for people who are opposed to purchasing annuities on ethical grounds as a result of their religious beliefs.
Stakeholder schemes
Stakeholder pensions were set up by the government in 2001 with the aim of facilitating access to personal pensions for people whose employers don’t run occupational schemes. As with money purchase plans, stakeholder pensions invest in the stock market, bonds and cash savings accounts and accumulate funds which are used to purchase an annuity upon retirement. They’re designed to be easy to understand, flexible and lower cost than other pension plans. The maximum charge that administrators will be able to charge each year for managing the funds is 1% of the value of the fund, and they cannot charge penalties if members wish to transfer cash in or out or stop contributing. However, there’s a limit to the amount that can be invested, so they’re designed for people on low to middle incomes rather than high earners.
This article is the second of two guides examining the fundamentals of pensions. The first guide focuses on state pension provision, while this one outlines some of the possibilities for making personal pension arrangements. They are intended for information only and do not constitute financial advice. It is recommended that you speak to a financial advisor for professional advice on planning your finances for retirement.
Saving for the future
There are lots of ways in which you can save for the future – savings accounts, stocks and shares and property investment, for example.
However, all of these are subject to tax. Pension schemes are much more tax-efficient as tax relief is given on contributions made and the income they provide during retirement is tax-free. This is why pensions are a common way of saving for retirement.
There are two main types of personal pensions – final salary and money purchase. The first can only be provided through occupational schemes, but the second can be purchased privately on an individual basis.
Final salary
Final salary schemes, also known as defined benefit schemes, provide a guaranteed income based on a percentage of salary earned during your final year of work as well as length of service with the company. It’s possible to retire on up to two thirds of your final salary.
As it guarantees to provide a certain level of income, it’s often considered to be the best type of pension scheme available. However, there has been a decline in the number of employers offering final salary schemes in the last few years because of the expense of maintaining them. Falls in the stock market have seen many pension investment funds drop drastically in value, meaning that the employer must make up the difference in order to provide the guaranteed income to the scheme’s members. Another expense for employers with final salary schemes is the 10% tax levied on dividends, a measure introduced by the government in 1997, which again can have a detrimental impact on the size of pension funds.
Money purchase
With money purchase schemes, also know as ‘defined contribution’ plans, members make payments into a fund which is then invested into the stock market. On retirement, the accumulated funds are used to buy what’s called an annuity, which provides a regular retirement income. The amount you’ll receive in retirement isn’t guaranteed – it depends on how well the stock market has performed and on annuity rates at the time that you take out your annuity. Whereas final salary pensions put the burden of risk on the employer, who must make up the amount to a guaranteed level, it’s the member who’s responsible for the risk of a shortfall in money purchase schemes. Members may therefore need to save more cash independently to ensure they’ll have a comfortable retirement.
You’ll have some flexibility to choose what funds your money is invested in, and your decisions will depend on your attitude to risk.
Higher risk investments can provide much greater potential returns, but at the same time can also make the biggest losses. ‘Safer’ investments will reduce the risk of losses but will not be likely to yield as big returns as higher risk investments.
Annuities
An annuity is a fixed, regular amount of money paid to someone, usually for the rest of their life, which is purchased using a lump sum from a pension fund, for example. It’s invested in the stock market, usually in funds considered to be safe. Annuity rates have plummeted in the last decade, meaning that many people are now expecting lower annuity incomes and are having to change their retirement plans. However, there are various different options when it comes to annuities. Members aren’t obliged to take out the annuity offered by their own scheme – they can use their accumulated pension funds to buy an annuity from any annuity provider on the open market, where they may be able to get a better rate. It’s also possible to take up to 25% of the pension fund as a tax-free cash lump sum, leaving the other 75% to purchase an annuity. A third option is to take out a short-term annuity of up to five years to keep your pension invested for a little longer in the hope that it will increase in value to allow you to purchase a better lifetime annuity further down the line. Another way of delaying taking out an annuity is to receive an income directly from your pension fund, keeping it invested in the hope of gaining higher returns to sustain the income received. However, the value of the funds could fall just as easily as they could rise, which may leave you worse off. This option is known as an ‘unsecured pension using income withdrawal’. Finally, it’s possible not to purchase an annuity at all and instead receive an income directly from your pension fund from the age of 75 with an ‘alternative secured pension’. Before 2006 it was a legal requirement to purchase an annuity from pension funds by the age of 75, but the law changed to allow people over 75 to receive this type of income instead, although the total amount of income that can be drawn down from it is 70% of a lifetime annuity. It’s intended for people who are opposed to purchasing annuities on ethical grounds as a result of their religious beliefs.
Stakeholder schemes
Stakeholder pensions were set up by the government in 2001 with the aim of facilitating access to personal pensions for people whose employers don’t run occupational schemes. As with money purchase plans, stakeholder pensions invest in the stock market, bonds and cash savings accounts and accumulate funds which are used to purchase an annuity upon retirement. They’re designed to be easy to understand, flexible and lower cost than other pension plans. The maximum charge that administrators will be able to charge each year for managing the funds is 1% of the value of the fund, and they cannot charge penalties if members wish to transfer cash in or out or stop contributing. However, there’s a limit to the amount that can be invested, so they’re designed for people on low to middle incomes rather than high earners.
How To Get The Best Credit Card
Different people have different needs. Depending on who you are and your circumstances, the best credit card deal for you will vary. I will take you through the things you should be looking for, but for the best current deals I suggest you check Money Savings Expert regularly (http://www.moneysavingexpert.com).
Credit cards allow you to spend a certain amount of money at an interest rate that will be charged every month. The spending amount that is available to you can be seen differently. Some see it as an additional amount to spend, some see it as a ‘risk-free' borrowing opportunity. Credit card spending is not a ‘free' spending opportunity, as you will need to pay this money back. This money does not work like a loan, as the amount available to you is not all cash. However, it can be treated as a ‘loan' and this concept will be explained later.
Other very important concepts that have to be understood before getting a credit card, is 0% offers. There are two kinds of 0% offers: on purchases and on balance transfers. The first one allows you to spend the money provided to you by the credit card without paying any interest for a certain amount of time. So, for example, if the credit card gives you a limit of £500 for three months, then you can spend £500 against this credit card and not be charged interest for the first three months since the credit card was opened. However, once this period of time expires, you will be charged the credit card interest rate. This interest differs depending on the credit card, so if you intend to pay this interest, then you ought to look for the lowest interest rate available. Paying interest can be avoided, unless you have already overspent too much and are using credit cards to pay off other credit card interest. In this case you should call some of the debt consolidation companies and try to get some your credit card debt written off. Another reason why you might be in the position of paying interest is because you forgot when your ‘0% free time' ended. If this is the case, you will be informed about this with your first bank statement. Transfer your balance to a different bank or pay the debt off and avoid any further interest payments.
For those of you who don't have interest payments, you can take advantage of the 0% purchasing and make some money. You need a good credit history record to make this work and you also need to be disciplined. The easiest method is to do all of your normal spending against the credit card, while putting the money that is coming in into an interest-earning savings account. For example, if your credit card company lets you borrow £2,000, and you have £1,000 coming in as a salary every month, then put the £1,000 into a savings account and do all of your purchasing with a credit card. There are a few things to watch out for: credit card companies will charge you for cash withdrawals; your cash limit is much lower then the full available credit; and choose a savings account from which you can withdraw easily. At the end of the 0% purchase period, you will need to return all the money that you have spent against your credit card. You should have that amount available in the savings account by then, plus interest. The interest gained is your earnings for this transaction. You can earn even more if you chose a credit card with a cashback deal. This deal will pay you interest on all of your purchases made with the card. However, you should remember, that this is a money-making technique, rather then a ‘spend more' opportunity. There is a more complicated trick of making money from credit cards, details of which are outlined by Money Saving Expert (2006).
If you are making money from the credit cards, there is no need for you to get card protection insurance, as you should have enough money to pay off the credit card debt at any time. At the end of the 0% purchasing period, you can also transfer the balance to a different card provider. This is known as 0% balance transfer, but you will be charged a fee for these transactions, usually around 2%. However, these fees vary, so you need to check the conditions. There are a few things to watch out for: the credit limit offered by your bank also includes your purchases. For example, if the new credit card offers you a £2,000 limit, with 0% balance transfer for 12 months and 0% on purchases for three months, and you have transferred £1,500 from your old credit card, you only have £500 to spend on this credit card. The second thing to watch out for is your credit score. "Most lenders' scoring systems aren't sophisticated enough to detect that you're playing this free-cash game. Yet multiple applications, especially at the same time, coupled with high outstanding debts, even at 0%, will diminish your ability to get competitive credit, so the most important thing is to spread card applications out" (Money Savings Expert, 2006).
However, if you are in the position where you are already fighting the interest payments, as has been mentioned before, the best thing to do is to call debt consolidation experts. In any circumstances it is best to pay off the most expensive credit and store cards first (i.e the ones that charge the highest interest rates). Furthermore, avoid opening any new credit cards to pay off the debt. Instead transfer your high-interest debt to lower interest rate credit cards. For example, if your credit card interest rate is 16%, while your store card rate is 25% per month, transfer the store card balance over to the credit card.
Whatever your circumstances, when you do open a new credit card always look for the longest 0% balance transfer and 0% purchase period, lowest transfer fee and interest rate charged afterwards. The limit offered to you will not only depend on your salary and credit rating, but also on the company that you go with.
Finally, do not forget – don't play the credit card game if you cannot control it or have a high debt already.
References
Money Savings Experts 2006 "Card Trick" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1076883546,34894 (Accessed on: 10/11/06)
Money Savings Experts 2006 "Card Card Shuffle" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1102335753,51771 (Accessed on: 10/11/06)
Money Savings Experts 2006 "Credit Card Newbie MoneySavers Guide" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103212597,43859, (Accessed on: 10/11/06)
Copyright © 2006 Verena Veneeva
Credit cards allow you to spend a certain amount of money at an interest rate that will be charged every month. The spending amount that is available to you can be seen differently. Some see it as an additional amount to spend, some see it as a ‘risk-free' borrowing opportunity. Credit card spending is not a ‘free' spending opportunity, as you will need to pay this money back. This money does not work like a loan, as the amount available to you is not all cash. However, it can be treated as a ‘loan' and this concept will be explained later.
Other very important concepts that have to be understood before getting a credit card, is 0% offers. There are two kinds of 0% offers: on purchases and on balance transfers. The first one allows you to spend the money provided to you by the credit card without paying any interest for a certain amount of time. So, for example, if the credit card gives you a limit of £500 for three months, then you can spend £500 against this credit card and not be charged interest for the first three months since the credit card was opened. However, once this period of time expires, you will be charged the credit card interest rate. This interest differs depending on the credit card, so if you intend to pay this interest, then you ought to look for the lowest interest rate available. Paying interest can be avoided, unless you have already overspent too much and are using credit cards to pay off other credit card interest. In this case you should call some of the debt consolidation companies and try to get some your credit card debt written off. Another reason why you might be in the position of paying interest is because you forgot when your ‘0% free time' ended. If this is the case, you will be informed about this with your first bank statement. Transfer your balance to a different bank or pay the debt off and avoid any further interest payments.
For those of you who don't have interest payments, you can take advantage of the 0% purchasing and make some money. You need a good credit history record to make this work and you also need to be disciplined. The easiest method is to do all of your normal spending against the credit card, while putting the money that is coming in into an interest-earning savings account. For example, if your credit card company lets you borrow £2,000, and you have £1,000 coming in as a salary every month, then put the £1,000 into a savings account and do all of your purchasing with a credit card. There are a few things to watch out for: credit card companies will charge you for cash withdrawals; your cash limit is much lower then the full available credit; and choose a savings account from which you can withdraw easily. At the end of the 0% purchase period, you will need to return all the money that you have spent against your credit card. You should have that amount available in the savings account by then, plus interest. The interest gained is your earnings for this transaction. You can earn even more if you chose a credit card with a cashback deal. This deal will pay you interest on all of your purchases made with the card. However, you should remember, that this is a money-making technique, rather then a ‘spend more' opportunity. There is a more complicated trick of making money from credit cards, details of which are outlined by Money Saving Expert (2006).
If you are making money from the credit cards, there is no need for you to get card protection insurance, as you should have enough money to pay off the credit card debt at any time. At the end of the 0% purchasing period, you can also transfer the balance to a different card provider. This is known as 0% balance transfer, but you will be charged a fee for these transactions, usually around 2%. However, these fees vary, so you need to check the conditions. There are a few things to watch out for: the credit limit offered by your bank also includes your purchases. For example, if the new credit card offers you a £2,000 limit, with 0% balance transfer for 12 months and 0% on purchases for three months, and you have transferred £1,500 from your old credit card, you only have £500 to spend on this credit card. The second thing to watch out for is your credit score. "Most lenders' scoring systems aren't sophisticated enough to detect that you're playing this free-cash game. Yet multiple applications, especially at the same time, coupled with high outstanding debts, even at 0%, will diminish your ability to get competitive credit, so the most important thing is to spread card applications out" (Money Savings Expert, 2006).
However, if you are in the position where you are already fighting the interest payments, as has been mentioned before, the best thing to do is to call debt consolidation experts. In any circumstances it is best to pay off the most expensive credit and store cards first (i.e the ones that charge the highest interest rates). Furthermore, avoid opening any new credit cards to pay off the debt. Instead transfer your high-interest debt to lower interest rate credit cards. For example, if your credit card interest rate is 16%, while your store card rate is 25% per month, transfer the store card balance over to the credit card.
Whatever your circumstances, when you do open a new credit card always look for the longest 0% balance transfer and 0% purchase period, lowest transfer fee and interest rate charged afterwards. The limit offered to you will not only depend on your salary and credit rating, but also on the company that you go with.
Finally, do not forget – don't play the credit card game if you cannot control it or have a high debt already.
References
Money Savings Experts 2006 "Card Trick" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1076883546,34894 (Accessed on: 10/11/06)
Money Savings Experts 2006 "Card Card Shuffle" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1102335753,51771 (Accessed on: 10/11/06)
Money Savings Experts 2006 "Credit Card Newbie MoneySavers Guide" [Available from]: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103212597,43859, (Accessed on: 10/11/06)
Copyright © 2006 Verena Veneeva
The Religion On NLP
I find it fascinating that as people, we are drawn to the idea of being part of something bigger than ourselves. We want to find unity and yet still be unique, we want to have similarities but not be the same.
For me, religion is a classic example of where people can find unity and common ground, or common beliefs. So a couple of weeks ago, I tried out the whole religion thing. I've not been bought up in a religious family, nor was my school particularly religious- although we sang hymns and the such like, prayer time was more of an opportunity to sit with my eyes half shut whilst sneakily looking around to see who was genuinely into this praying malarkey, then usually discovering that the rest of the school was doing the same.
So this was my experience. My boyfriend has been bought up in a very religious family and for him, popping off to church for the evening, was probably equated to the ease at which I could pop to the pub. But church for me was quite an event, so I took the plunge one week and went with him.
We got fed (great!) and it was cheap (very great!) but I have to say that I was quite surprised to see a bunch of Christian grandma's dishing out rice and veg, with a decent sized lump of chicken breast on each plate. “That's funny”, I thought “they've managed to get gods permission to eat his creatures. There must be some sort of arrangement, where they spread his love and he lets them know it's ok to eat chicken”. Still I know that Jesus ate fish and if it's good enough for him….
After the food, the vicar got up and did a presentation about Jesus and how we can know that he really existed. It was a good presentation. The vicar was quite charismatic and pretty funny too. Then after that, we sat at our tables and had a chat about what the vicar had talked about. It seemed that all the regulars were pretty sold on what the vicar had said, and I felt like a bit of a trouble maker by throwing some new ideas into the agenda. It's not that I didn't believe that Jesus walked the earth, in my opinion, he probably did. But I don't think he was the only smart spiritual being to have ever set foot on our planet. There's a lot of convincing stuff about other religious folk from other religions. This concept wasn't welcomed I found, when I planted it on 'em. Now, don't get me wrong, they were a nice bunch and no-one accused me of being in cahoots with the devil when I told them that I'm a hypnotist (although that has happened since!) But when they began to discuss the power of prayer and I linked this to a higher consciousness rather than a higher being, I knew I was pushing my luck.
The thing for me, is that life is filled with possibilities, all the time in everything that you ever do or say, you have an abundance of other possibilities that you could take. How then, could anything you ever do, ever be wrong, or sinful. Would someone so great, powerful and majestic as god really spend his time watching a DVD of each of us throughout our entire lives, ready to place judgement on us when our time is up, and tell us if we're spending the rest of eternity in his kingdom or in the fiery furnace of hell. That's a tough call, how would He ever decide. Some people have done some really bad stuff, but they might have done it with a positive intention.
You're probably guessing by now that I am in no way qualified to speak about religion. I don't claim to be, but bear with me.
My other concern for a long time has been, that there are a lot of good people in the world. Surely then heaven must be suffering from over crowding, not least from the vast array of rabbits, hamsters, and goldfish I've had over the years, that my nan told me had all gone to heaven when they'd popped their clogs. I guess there are dead architects up there, god must have got them to create high rise building like they have in China. Especially since Jesus said that the entire kingdom of heaven is smaller than the mustard seed.
If you were married and your partner died, then you met someone else and got married again, which partner do you end up spending the rest of eternity with when you die?
In my confusion, I decided to relate what I'd learnt to the presuppositions of NLP, since they had for me for the last few years, been my bible.
This is what I came up with.
Everyone has a unique model of the world. This could mean that what you absolutely believe to be true, is true (for you at least) so if one person has absolute belief in god, then he exists, and if someone else believes that he doesn't then, for that person, he doesn't.
The map is not the territory. In quantum physics, the whole contains the part and the part contains the whole. In the same way that an apple contains a part which is just a seed, the seed contains all the information required to grow into a tree and create further apples. So I could be god (it has been said!) at the quantum level. When I die the tiniest quantum part of me that remains, could be god, who has the power to create further things.
The meaning of all behaviour is dependent upon the context it exists in. This might means that there is no judgement at death.
All behaviour has a positive intention and everyone one is doing the best that they can with the resources that they have available. No hell maybe?
Everyone has all the resources they need to succeed and to achieve their desired outcome. Knock and the door shall be opened unto you.
There is no failure only feedback. My flesh and my heart may fail, but god is my strength for ever.
I'd never thought about NLP as a spiritual tool before, more as a series of change techniques, but this ever evolving subject continually inspires me to take on new perspectives in my life. I'm thinking now about starting up a spiritual group- no not a cult!- something where people can meet together and discuss their ideas about the meaning of life etc. It will probably create more questions than answer, but what's the harm in that. When we think we know the answer to something, we become cut off from all of the other possible answers. When we have only questions, we also have the wealth of possible answers- you might like to call that confusion! Possibilities create many opportunities, and I suppose the one thing that I discovered about my introduction to religion, is that sometimes religion is about stating what you can and can't do, say or believe, how you should or shouldn't behave and this could limit life's opportunities. I'd like to be part of something that is open to limitless possibilities of being, I think that that's the way god would like me to be.
For me, religion is a classic example of where people can find unity and common ground, or common beliefs. So a couple of weeks ago, I tried out the whole religion thing. I've not been bought up in a religious family, nor was my school particularly religious- although we sang hymns and the such like, prayer time was more of an opportunity to sit with my eyes half shut whilst sneakily looking around to see who was genuinely into this praying malarkey, then usually discovering that the rest of the school was doing the same.
So this was my experience. My boyfriend has been bought up in a very religious family and for him, popping off to church for the evening, was probably equated to the ease at which I could pop to the pub. But church for me was quite an event, so I took the plunge one week and went with him.
We got fed (great!) and it was cheap (very great!) but I have to say that I was quite surprised to see a bunch of Christian grandma's dishing out rice and veg, with a decent sized lump of chicken breast on each plate. “That's funny”, I thought “they've managed to get gods permission to eat his creatures. There must be some sort of arrangement, where they spread his love and he lets them know it's ok to eat chicken”. Still I know that Jesus ate fish and if it's good enough for him….
After the food, the vicar got up and did a presentation about Jesus and how we can know that he really existed. It was a good presentation. The vicar was quite charismatic and pretty funny too. Then after that, we sat at our tables and had a chat about what the vicar had talked about. It seemed that all the regulars were pretty sold on what the vicar had said, and I felt like a bit of a trouble maker by throwing some new ideas into the agenda. It's not that I didn't believe that Jesus walked the earth, in my opinion, he probably did. But I don't think he was the only smart spiritual being to have ever set foot on our planet. There's a lot of convincing stuff about other religious folk from other religions. This concept wasn't welcomed I found, when I planted it on 'em. Now, don't get me wrong, they were a nice bunch and no-one accused me of being in cahoots with the devil when I told them that I'm a hypnotist (although that has happened since!) But when they began to discuss the power of prayer and I linked this to a higher consciousness rather than a higher being, I knew I was pushing my luck.
The thing for me, is that life is filled with possibilities, all the time in everything that you ever do or say, you have an abundance of other possibilities that you could take. How then, could anything you ever do, ever be wrong, or sinful. Would someone so great, powerful and majestic as god really spend his time watching a DVD of each of us throughout our entire lives, ready to place judgement on us when our time is up, and tell us if we're spending the rest of eternity in his kingdom or in the fiery furnace of hell. That's a tough call, how would He ever decide. Some people have done some really bad stuff, but they might have done it with a positive intention.
You're probably guessing by now that I am in no way qualified to speak about religion. I don't claim to be, but bear with me.
My other concern for a long time has been, that there are a lot of good people in the world. Surely then heaven must be suffering from over crowding, not least from the vast array of rabbits, hamsters, and goldfish I've had over the years, that my nan told me had all gone to heaven when they'd popped their clogs. I guess there are dead architects up there, god must have got them to create high rise building like they have in China. Especially since Jesus said that the entire kingdom of heaven is smaller than the mustard seed.
If you were married and your partner died, then you met someone else and got married again, which partner do you end up spending the rest of eternity with when you die?
In my confusion, I decided to relate what I'd learnt to the presuppositions of NLP, since they had for me for the last few years, been my bible.
This is what I came up with.
Everyone has a unique model of the world. This could mean that what you absolutely believe to be true, is true (for you at least) so if one person has absolute belief in god, then he exists, and if someone else believes that he doesn't then, for that person, he doesn't.
The map is not the territory. In quantum physics, the whole contains the part and the part contains the whole. In the same way that an apple contains a part which is just a seed, the seed contains all the information required to grow into a tree and create further apples. So I could be god (it has been said!) at the quantum level. When I die the tiniest quantum part of me that remains, could be god, who has the power to create further things.
The meaning of all behaviour is dependent upon the context it exists in. This might means that there is no judgement at death.
All behaviour has a positive intention and everyone one is doing the best that they can with the resources that they have available. No hell maybe?
Everyone has all the resources they need to succeed and to achieve their desired outcome. Knock and the door shall be opened unto you.
There is no failure only feedback. My flesh and my heart may fail, but god is my strength for ever.
I'd never thought about NLP as a spiritual tool before, more as a series of change techniques, but this ever evolving subject continually inspires me to take on new perspectives in my life. I'm thinking now about starting up a spiritual group- no not a cult!- something where people can meet together and discuss their ideas about the meaning of life etc. It will probably create more questions than answer, but what's the harm in that. When we think we know the answer to something, we become cut off from all of the other possible answers. When we have only questions, we also have the wealth of possible answers- you might like to call that confusion! Possibilities create many opportunities, and I suppose the one thing that I discovered about my introduction to religion, is that sometimes religion is about stating what you can and can't do, say or believe, how you should or shouldn't behave and this could limit life's opportunities. I'd like to be part of something that is open to limitless possibilities of being, I think that that's the way god would like me to be.
1000 New Catastrophe Adjusters Needed Right Now in the USA
Yes, it's true...there currently is a need for 1000 trained catastrophe adjusters in the United States. As a consumer advocate I'm always looking for new career opportunities for the people that have been downsized. So I heard about catastrophe adjusting and went to the top expert in the country, Howard Williams, to learn more. Here is my interview.
Recently I had a chance to sit down with Howard and discuss his years as a storm adjuster.
Hugh: “Howard, what exactly is a “storm adjuster” and what do you do?”
Howard: “When a major storm or other catastrophe hits anywhere in the country and the claims load is larger than the local adjusters can handle, the insurance companies turn to a core group of storm adjusters. These adjusters are available to respond to disasters wherever they are and whenever they are needed. Working as an extension of insurance company's claims department, adjusters assist the company's policyholders in evaluating and preparing their claims for damages.”
Hugh: “I think that you have created a slogan that pretty well says it: “Going where needed, when needed.”
Howard: “Yes, that is true and it has certainly been true in my case. In the past 35 years I have been to almost every natural disaster and even several man-made ones that have made the headlines in the United States. Most recently I spent six months in the Hurricane Katrina ravaged areas of Mississippi and Alabama.”
Hugh: “Six months?”
Howard: “Yes, I was there in the area for six months except for coming back home several weekends. That is one of the requirements of this profession. You must be able to go any time and any where they need you. For instance, with Katrina I was on the road heading to Mississippi as soon as the roads were open for rescue trucks to get in there. I arrived there to find no motel rooms available in either Mississippi or Alabama. I finally found a condo that I was able to rent in the panhandle of Florida. Therefore I had to make that long trip daily back and forth. So you have to know how to take care of yourself and I credit a great deal of that ability to my former police training.”
Hugh: “Yes, I knew that you had been a police officer in your earlier years. What other training have you found valuable?”
Howard: “As you know I'm also a personal coach and that training has been immensely valuable. For instance, in Florida, when I have worked the big hurricanes like Andrew I have found numerous senior citizens who were in a total state of shock. I would arrive at their homes to find them sitting in living rooms that had no roofs with water soaked carpets. Many had no one to turn to since their neighbors were too busy taking care of their own problems. So the first item of business is for me to get them out of that house. I want to get them into a nice clean, dry motel room if possible.
Hugh, you have to learn to EMPATHIZE with their situation and not get caught up in the drama going on. That's where my personal coach training has been invaluable. Most storm adjusters either are too business like or they get caught up in the drama happening. You want to help but you still have to focus on the situation – determining the damage done to their dwelling.”
Hugh: “So what do you do to determine that damage?”
Howard: “This is where you have to use your skills of estimating and also having a background in construction certainly does not hurt. I have to begin to look at the overall situation to determine what has been damaged by water and what has been damaged by wind. As you are aware as a consumer investigative reporter, there have been numerous stories in the media regarding this with Hurricane Katrina victims. No one seems to understand that certain damages are not covered by insurance.
Estimating and surveying the damage is where it can get very interesting. You may find yourself climbing up to a roof to explore damage and the next minute find yourself crashing through that roof! It has happen to me. Also usually in areas like Mississippi you are likely to find numerous snakes beginning to take up residence in the houses. Not to mention the heat that usually returns after the storm.”
Hugh: “Well with my fear of heights over 10 feet this is certainly not something that I would do well with.”
Howard: “That's where a husband/wife team comes in real handy. We find a number of husband/wife teams in storm adjusting. Usually, but not always, the husband will do the climbing and the wife will write down the findings. Both need to know how to estimate and a background in construction is a plus"
Hugh: “Well, I'm sure people reading this interview will want to know: 'How much can one make in this business?'”
Howard: “This can be a very lucrative career especially if you are doing major events like Katrina. I earned in the neighborhood of $120,000 for the six months work.”
Hugh: “WOW, $120,000 for six months work?
Howard: “Yes, when you learn the ropes like I will be teaching at my new school in North Carolina, it is possible to eventually be earning that amount for six months work. And both fortunately and unfortunately, this type of work will not have any downsizing in the near future.”
Hugh: Yes, as you know I also own an emergency preparedness consulting business. Our reports from Max Mayfield, chief meteorologist for the National Hurricane Center, are that the powerful hurricanes like Katrina will increase in number over the next ten years.”
Howard: Yes, and that is just hurricanes. Think of all the earthquakes, tornadoes, wild fires, wind storms, floods, etc. occurring in the United States every year. According to our industry association there will be a need for 1,000 new storm adjusters in 2007 alone.”
Hugh: Howard, you mentioned your new school. Tell us more about it and how people reading this interview can learn more.”
Howard: “Yes, I have decided to take my 35 years of experience in storm adjusting and offer a two week school for those looking for a new career. Also I will be sharing all the updated information in this field from my recent classes that I have attended. A person taking this course will learn about estimating, construction information that can make their job easier (I want to assure people that you do NOT have to have a background in construction to apply), writing the reports, communicating and working with the insurance companies, etc. For those that would like to learn more they can visit our web site at http://www.stormadjusterschool.com and after reading if interested can contact me at stormboss@earthlink.net.”
Recently I had a chance to sit down with Howard and discuss his years as a storm adjuster.
Hugh: “Howard, what exactly is a “storm adjuster” and what do you do?”
Howard: “When a major storm or other catastrophe hits anywhere in the country and the claims load is larger than the local adjusters can handle, the insurance companies turn to a core group of storm adjusters. These adjusters are available to respond to disasters wherever they are and whenever they are needed. Working as an extension of insurance company's claims department, adjusters assist the company's policyholders in evaluating and preparing their claims for damages.”
Hugh: “I think that you have created a slogan that pretty well says it: “Going where needed, when needed.”
Howard: “Yes, that is true and it has certainly been true in my case. In the past 35 years I have been to almost every natural disaster and even several man-made ones that have made the headlines in the United States. Most recently I spent six months in the Hurricane Katrina ravaged areas of Mississippi and Alabama.”
Hugh: “Six months?”
Howard: “Yes, I was there in the area for six months except for coming back home several weekends. That is one of the requirements of this profession. You must be able to go any time and any where they need you. For instance, with Katrina I was on the road heading to Mississippi as soon as the roads were open for rescue trucks to get in there. I arrived there to find no motel rooms available in either Mississippi or Alabama. I finally found a condo that I was able to rent in the panhandle of Florida. Therefore I had to make that long trip daily back and forth. So you have to know how to take care of yourself and I credit a great deal of that ability to my former police training.”
Hugh: “Yes, I knew that you had been a police officer in your earlier years. What other training have you found valuable?”
Howard: “As you know I'm also a personal coach and that training has been immensely valuable. For instance, in Florida, when I have worked the big hurricanes like Andrew I have found numerous senior citizens who were in a total state of shock. I would arrive at their homes to find them sitting in living rooms that had no roofs with water soaked carpets. Many had no one to turn to since their neighbors were too busy taking care of their own problems. So the first item of business is for me to get them out of that house. I want to get them into a nice clean, dry motel room if possible.
Hugh, you have to learn to EMPATHIZE with their situation and not get caught up in the drama going on. That's where my personal coach training has been invaluable. Most storm adjusters either are too business like or they get caught up in the drama happening. You want to help but you still have to focus on the situation – determining the damage done to their dwelling.”
Hugh: “So what do you do to determine that damage?”
Howard: “This is where you have to use your skills of estimating and also having a background in construction certainly does not hurt. I have to begin to look at the overall situation to determine what has been damaged by water and what has been damaged by wind. As you are aware as a consumer investigative reporter, there have been numerous stories in the media regarding this with Hurricane Katrina victims. No one seems to understand that certain damages are not covered by insurance.
Estimating and surveying the damage is where it can get very interesting. You may find yourself climbing up to a roof to explore damage and the next minute find yourself crashing through that roof! It has happen to me. Also usually in areas like Mississippi you are likely to find numerous snakes beginning to take up residence in the houses. Not to mention the heat that usually returns after the storm.”
Hugh: “Well with my fear of heights over 10 feet this is certainly not something that I would do well with.”
Howard: “That's where a husband/wife team comes in real handy. We find a number of husband/wife teams in storm adjusting. Usually, but not always, the husband will do the climbing and the wife will write down the findings. Both need to know how to estimate and a background in construction is a plus"
Hugh: “Well, I'm sure people reading this interview will want to know: 'How much can one make in this business?'”
Howard: “This can be a very lucrative career especially if you are doing major events like Katrina. I earned in the neighborhood of $120,000 for the six months work.”
Hugh: “WOW, $120,000 for six months work?
Howard: “Yes, when you learn the ropes like I will be teaching at my new school in North Carolina, it is possible to eventually be earning that amount for six months work. And both fortunately and unfortunately, this type of work will not have any downsizing in the near future.”
Hugh: Yes, as you know I also own an emergency preparedness consulting business. Our reports from Max Mayfield, chief meteorologist for the National Hurricane Center, are that the powerful hurricanes like Katrina will increase in number over the next ten years.”
Howard: Yes, and that is just hurricanes. Think of all the earthquakes, tornadoes, wild fires, wind storms, floods, etc. occurring in the United States every year. According to our industry association there will be a need for 1,000 new storm adjusters in 2007 alone.”
Hugh: Howard, you mentioned your new school. Tell us more about it and how people reading this interview can learn more.”
Howard: “Yes, I have decided to take my 35 years of experience in storm adjusting and offer a two week school for those looking for a new career. Also I will be sharing all the updated information in this field from my recent classes that I have attended. A person taking this course will learn about estimating, construction information that can make their job easier (I want to assure people that you do NOT have to have a background in construction to apply), writing the reports, communicating and working with the insurance companies, etc. For those that would like to learn more they can visit our web site at http://www.stormadjusterschool.com and after reading if interested can contact me at stormboss@earthlink.net.”
Are Leaders Born or Made?
For centuries people have debated whether leaders are born or made. Several decades ago researchers started trying to answer the question. The debate goes on, even though we know the answer.
It turns out to be a little of both. Leaders are sort of born and they're always made. Knowing the details will help you develop effective leaders for your company.
Leaders are Sort of Born
It seems like there's only one thing that a person needs to actually be born with in order to be a leader later in life. That's intelligence. A leader needs to be smart enough.
Effective leaders aren't necessarily the smartest people in the room or the company or even on the team. But they have to be smart enough to do the job they're assigned.
What's more important is what kind of person the potential leader is when he or she becomes an adult. The person who emerges from adolescence into young adulthood has the psychological and character traits they'll demonstrate for the rest of their life. Some of those matter for leadership.
By the time a person becomes an adult we can tell if they can help other people achieve results. That, after all, is what we expect leaders to do. We expect them to achieve success through a group. We expect them to help their subordinates grow and develop.
By the time a person becomes an adult, we can tell if they want to achieve objectives or if they just want to go along and take it easy. We expect leaders to be responsible for achieving results. You can have a marvelous life without a results focus, but if you're going to lead successfully you have to have the drive and willingness to be measured by the results of your leadership.
By the time a person becomes an adult, we can tell if they are willing to make decisions or not. Lots of people wake up every day and let the world happen to them. But leaders must be able and willing to make decisions that affect themselves and others.
By the time a person becomes an adult we can tell if they have the basic qualities that we expect leaders to have. We can determine if they're smart enough to do the job. We can tell if they are willing to help others to achieve results as a group. And we can tell if they will make decisions.
Those things are essential. People who have them can learn the multiple skills it takes for them to become effective leaders.
No matter how they measure up on the key essentials, no one emerges from the womb or from adolescence with all the skills in place to be an effective leader. Everybody has to learn the job. That's why leaders are always made.
Leaders are Always Made
Leadership can be learned by anyone with the basics. But an awful lot of leadership cannot be taught.
That's because leadership is an apprentice trade. Leaders learn about 80 percent of their craft on the job.
They learn from watching other leaders and emulating their behavior. They choose role models and seek out mentors. They ask other leaders about how to handle situations.
Leaders improve by getting feedback and using it. The best leaders seek feedback from their boss, their peers and their subordinates. Then they modify their behavior so that they get better results.
Leaders learn by trying things out and then critiquing their performance. The only failure they recognize is the failure to learn from experience.
In their book, Geeks and Geezers, Warren Bennis and Robert Thomas identify the special power of what they call "crucibles." These are trials which teach hard lessons that leaders use as the basis of their strength in later crises. Many of these events can be called "failures," but leaders turn the bad situation to good by learning from it.
Effective leaders take control of their own development. They seek out training opportunities that will make a difference that will make a difference in their performance.
Effective leaders look for training programs that will help them develop specific skills that they can use on the job. Then, they when they return to work, they devote specific, deliberate effort to mastering in real life what they learned in the classroom.
Marshall Goldsmith and Howard Morgan studied the progress of 88,000 managers who had been to leadership development training. The people who returned from the training, talked about it, and did deliberate work to apply their learning were judged as becoming more effective leaders. The ones who didn't showed no improvement.
If you're responsible for leadership development for your company, you should structure your support for your leaders to recognize that most leadership learning happens on the job. Help people develop leadership development plans. Help them select specific skills training and then work on transferring skills from the training to the job. Help them find role models, mentors and peers to discuss leadership issues.
Help your leaders get feedback from their boss, peers and subordinates. Work to create the culture of candor that will make that feedback helpful and effective.
Don't stop there. Make sure that you evaluate your leaders on their leadership work. Reward them and hold them accountable for accomplishing the mission through the group. And hold them accountable for caring for their people and helping them grow and develop.
A Leader's Growth is Never Done
Leadership learning is a lifetime activity. You're never done because there's always more to learn. There are always skills you need to improve.
Effective leaders seek out development opportunities that will help them learn new skills. Those might be project assignments or job changes. What they have in common is that the leader develops knowledge and skills that can be used elsewhere.
Effective leaders also seek out opportunities that will increase their visibility. The fact is that great performance alone will not propel you to the top in your career. You also have to be visible to people who make decisions about promotions and assignments.
If you're responsible for developing leaders in your company, set up programs to give your leaders both kinds of development opportunities over the course of their careers.
There's no magic formula for developing quality leaders in your company. But if you select potential leaders with the essential traits, then support them with training, feedback, on-the-job learning and development experiences and hold them accountable for results, you'll have the leaders you need to shape your company's future.
It turns out to be a little of both. Leaders are sort of born and they're always made. Knowing the details will help you develop effective leaders for your company.
Leaders are Sort of Born
It seems like there's only one thing that a person needs to actually be born with in order to be a leader later in life. That's intelligence. A leader needs to be smart enough.
Effective leaders aren't necessarily the smartest people in the room or the company or even on the team. But they have to be smart enough to do the job they're assigned.
What's more important is what kind of person the potential leader is when he or she becomes an adult. The person who emerges from adolescence into young adulthood has the psychological and character traits they'll demonstrate for the rest of their life. Some of those matter for leadership.
By the time a person becomes an adult we can tell if they can help other people achieve results. That, after all, is what we expect leaders to do. We expect them to achieve success through a group. We expect them to help their subordinates grow and develop.
By the time a person becomes an adult, we can tell if they want to achieve objectives or if they just want to go along and take it easy. We expect leaders to be responsible for achieving results. You can have a marvelous life without a results focus, but if you're going to lead successfully you have to have the drive and willingness to be measured by the results of your leadership.
By the time a person becomes an adult, we can tell if they are willing to make decisions or not. Lots of people wake up every day and let the world happen to them. But leaders must be able and willing to make decisions that affect themselves and others.
By the time a person becomes an adult we can tell if they have the basic qualities that we expect leaders to have. We can determine if they're smart enough to do the job. We can tell if they are willing to help others to achieve results as a group. And we can tell if they will make decisions.
Those things are essential. People who have them can learn the multiple skills it takes for them to become effective leaders.
No matter how they measure up on the key essentials, no one emerges from the womb or from adolescence with all the skills in place to be an effective leader. Everybody has to learn the job. That's why leaders are always made.
Leaders are Always Made
Leadership can be learned by anyone with the basics. But an awful lot of leadership cannot be taught.
That's because leadership is an apprentice trade. Leaders learn about 80 percent of their craft on the job.
They learn from watching other leaders and emulating their behavior. They choose role models and seek out mentors. They ask other leaders about how to handle situations.
Leaders improve by getting feedback and using it. The best leaders seek feedback from their boss, their peers and their subordinates. Then they modify their behavior so that they get better results.
Leaders learn by trying things out and then critiquing their performance. The only failure they recognize is the failure to learn from experience.
In their book, Geeks and Geezers, Warren Bennis and Robert Thomas identify the special power of what they call "crucibles." These are trials which teach hard lessons that leaders use as the basis of their strength in later crises. Many of these events can be called "failures," but leaders turn the bad situation to good by learning from it.
Effective leaders take control of their own development. They seek out training opportunities that will make a difference that will make a difference in their performance.
Effective leaders look for training programs that will help them develop specific skills that they can use on the job. Then, they when they return to work, they devote specific, deliberate effort to mastering in real life what they learned in the classroom.
Marshall Goldsmith and Howard Morgan studied the progress of 88,000 managers who had been to leadership development training. The people who returned from the training, talked about it, and did deliberate work to apply their learning were judged as becoming more effective leaders. The ones who didn't showed no improvement.
If you're responsible for leadership development for your company, you should structure your support for your leaders to recognize that most leadership learning happens on the job. Help people develop leadership development plans. Help them select specific skills training and then work on transferring skills from the training to the job. Help them find role models, mentors and peers to discuss leadership issues.
Help your leaders get feedback from their boss, peers and subordinates. Work to create the culture of candor that will make that feedback helpful and effective.
Don't stop there. Make sure that you evaluate your leaders on their leadership work. Reward them and hold them accountable for accomplishing the mission through the group. And hold them accountable for caring for their people and helping them grow and develop.
A Leader's Growth is Never Done
Leadership learning is a lifetime activity. You're never done because there's always more to learn. There are always skills you need to improve.
Effective leaders seek out development opportunities that will help them learn new skills. Those might be project assignments or job changes. What they have in common is that the leader develops knowledge and skills that can be used elsewhere.
Effective leaders also seek out opportunities that will increase their visibility. The fact is that great performance alone will not propel you to the top in your career. You also have to be visible to people who make decisions about promotions and assignments.
If you're responsible for developing leaders in your company, set up programs to give your leaders both kinds of development opportunities over the course of their careers.
There's no magic formula for developing quality leaders in your company. But if you select potential leaders with the essential traits, then support them with training, feedback, on-the-job learning and development experiences and hold them accountable for results, you'll have the leaders you need to shape your company's future.
Top 10 Holiday Tips For Career Success
Every year as the holidays approach, most jobseekers and career changers make the mistake of halting all their efforts. They believe there is no point in pursuing new opportunities during the holidays, and that nobody is making hiring decisions until January, so “why bother?” Many decide to do absolutely nothing from mid-November to the second or third week in January!
Making these kinds of assumptions about the holidays is, again, a huge mistake!
When it comes to the holidays, I suggest you become a "contrarian" – and do what all the other job seekers are not doing. Since most of them are taking an extended break, this opens up real opportunities for you!
The reality is that the holidays are an excellent time to develop and create new contacts for your job search or career transition. Many companies are completing their budget planning for the next fiscal year. This is often the best time to get in front of hiring managers to create a position for you next year. Many managers have to fill openings early in the year or they may lose the budget for that position. Also, once year-end bonuses are paid, a predictable percentage of employees will leave their jobs, creating new vacancies!
Here are 10 career-savvy tips for the holidays from Ford R. Myers, President of Career Potential, LLC, an executive career consulting firm based in Radnor, PA:
1. IT’S ALL ABOUT RELATIONSHIPS
Business is all about establishing relationships – and relationships are developed in social settings! During the holidays, most people are naturally more convivial and generous in spirit. There is simply no better time to solidify existing relationships and forge new ones!
2. TUNE IN TO THE NETWORK
There are many networking events in November and December – in your social life, in your community, and in your professional circles. Think of all the companies having holiday parties. Many charities have their last fundraisers of the tax year in November and December. Book sales, holiday fairs and other celebrations make this the best time of year for productive networking!
3. SMALL TALK REAPS BIG BENEFITS
Most professional associations have a holiday party for their December meeting, with a more informal atmosphere than the formal presentations held throughout the rest of the year. Do not bring a resume to these events. Create a simple, tasteful business card with your name, phone number and e-mail address. Be prepared to make interesting small talk to establish new contacts. Ask the people you meet about themselves, their work, and their interests. Remember, everyone’s favorite subject is “themselves!”
4. CONVERSATION STARTERS AND STOPPERS
Prior to a social or networking event, prepare at least three neutral questions you can ask, such as:
* How do you know the host, the company, etc.?
* What made you decide to come to this event?
* What other organizations in this industry do you belong to?
When you find it’s time to move on and talk with someone new, you’ll need some phrases to help you transition during the event. Here are some good “exit lines:”
* I’ll let you go now, so you can continue circulating around the room.
* I’ll stop monopolizing your time so you can meet some other folks.
* It was great speaking with you. I’ll follow up as we discussed.
5. VOLUNTEER
There are more volunteer opportunities around the holidays than at any other time of year. This is a good way to help other people, feel good when you need a boost, have a renewed sense of purpose during your search, and meet other professionals. Volunteering also gives you something interesting to discuss with the new people you meet!
6. CALL PEOPLE
Use the day after Thanksgiving to make both follow-up calls and cold calls. You’ll find that whoever is at work that day will not only be available for a conversation, but will be grateful to speak to someone! If there are people who you’ve been having a hard time reaching, be sure to take advantage of this unique opportunity.
7. SEND HOLIDAY CARDS
Pick a seasonal, nondenominational theme – usually a depiction of a winter scene is best. This is the time to send cards to everyone on your “career list,” including executive search firms, Human Resource professionals, and hiring managers with whom you have interacted over the past year. Don't write about your job search in the card. Send your cards early enough for people to remember to invite you to their holiday get-togethers, and to send you a card in return! Be sure to include your contact information with the card, so the recipient can also reach you.
8. ‘TIS BETTER TO GIVE THAN TO RECEIVE
Remember the old saying popular at this time of year, “Tis better to give than to receive.” This is certainly true when you’re attempting to connect with people during the holidays. The fastest and most effective strategy for getting help is “give to get.” Ask the people in your network if you can be of help to them in any way, or if there is anyone who they might like an introduction to. Become a real “connector,” and in turn, you will become “connected!”
9. PLUG IN AND TURN ON
Technology has come a long way. Use the holidays to connect and reconnect with people on business networking web sites, such as http://www.linkedin.com, http://www.ryze.com and http://www.ecademy.com. Connect with local businesspeople in cyberspace and then take your connection “live” with a face-to-face meeting. You can also use these web sites as a great system to follow-up and keep in touch!
10. BECOME AN OPPORTUNITY MAGNET
At holiday time, some jobseekers tend to become overly negative or cynical during what they perceive as a “lull” in their career transition. Don’t fall into this trap. Get into positive action precisely when others are “giving up” until early next year. Think and speak positively, and you’ll become a magnet – ready to attract, interview, and “hire” your next employer.
If you’re currently in career transition or looking to move-up at your organization, these strategies should give you a new perspective on the holidays! Instead of “taking a vacation” from your career development activities, take full advantage of this overlooked opportunity to make real progress in your quest. Then, you’ll really have something to celebrate!
_____________________________________
Permission to Reprint: This article may be reprinted, provided it appears in its entirety with the following attribution: Copyright © 2006, Ford R. Myers and Career Potential, LLC.
Making these kinds of assumptions about the holidays is, again, a huge mistake!
When it comes to the holidays, I suggest you become a "contrarian" – and do what all the other job seekers are not doing. Since most of them are taking an extended break, this opens up real opportunities for you!
The reality is that the holidays are an excellent time to develop and create new contacts for your job search or career transition. Many companies are completing their budget planning for the next fiscal year. This is often the best time to get in front of hiring managers to create a position for you next year. Many managers have to fill openings early in the year or they may lose the budget for that position. Also, once year-end bonuses are paid, a predictable percentage of employees will leave their jobs, creating new vacancies!
Here are 10 career-savvy tips for the holidays from Ford R. Myers, President of Career Potential, LLC, an executive career consulting firm based in Radnor, PA:
1. IT’S ALL ABOUT RELATIONSHIPS
Business is all about establishing relationships – and relationships are developed in social settings! During the holidays, most people are naturally more convivial and generous in spirit. There is simply no better time to solidify existing relationships and forge new ones!
2. TUNE IN TO THE NETWORK
There are many networking events in November and December – in your social life, in your community, and in your professional circles. Think of all the companies having holiday parties. Many charities have their last fundraisers of the tax year in November and December. Book sales, holiday fairs and other celebrations make this the best time of year for productive networking!
3. SMALL TALK REAPS BIG BENEFITS
Most professional associations have a holiday party for their December meeting, with a more informal atmosphere than the formal presentations held throughout the rest of the year. Do not bring a resume to these events. Create a simple, tasteful business card with your name, phone number and e-mail address. Be prepared to make interesting small talk to establish new contacts. Ask the people you meet about themselves, their work, and their interests. Remember, everyone’s favorite subject is “themselves!”
4. CONVERSATION STARTERS AND STOPPERS
Prior to a social or networking event, prepare at least three neutral questions you can ask, such as:
* How do you know the host, the company, etc.?
* What made you decide to come to this event?
* What other organizations in this industry do you belong to?
When you find it’s time to move on and talk with someone new, you’ll need some phrases to help you transition during the event. Here are some good “exit lines:”
* I’ll let you go now, so you can continue circulating around the room.
* I’ll stop monopolizing your time so you can meet some other folks.
* It was great speaking with you. I’ll follow up as we discussed.
5. VOLUNTEER
There are more volunteer opportunities around the holidays than at any other time of year. This is a good way to help other people, feel good when you need a boost, have a renewed sense of purpose during your search, and meet other professionals. Volunteering also gives you something interesting to discuss with the new people you meet!
6. CALL PEOPLE
Use the day after Thanksgiving to make both follow-up calls and cold calls. You’ll find that whoever is at work that day will not only be available for a conversation, but will be grateful to speak to someone! If there are people who you’ve been having a hard time reaching, be sure to take advantage of this unique opportunity.
7. SEND HOLIDAY CARDS
Pick a seasonal, nondenominational theme – usually a depiction of a winter scene is best. This is the time to send cards to everyone on your “career list,” including executive search firms, Human Resource professionals, and hiring managers with whom you have interacted over the past year. Don't write about your job search in the card. Send your cards early enough for people to remember to invite you to their holiday get-togethers, and to send you a card in return! Be sure to include your contact information with the card, so the recipient can also reach you.
8. ‘TIS BETTER TO GIVE THAN TO RECEIVE
Remember the old saying popular at this time of year, “Tis better to give than to receive.” This is certainly true when you’re attempting to connect with people during the holidays. The fastest and most effective strategy for getting help is “give to get.” Ask the people in your network if you can be of help to them in any way, or if there is anyone who they might like an introduction to. Become a real “connector,” and in turn, you will become “connected!”
9. PLUG IN AND TURN ON
Technology has come a long way. Use the holidays to connect and reconnect with people on business networking web sites, such as http://www.linkedin.com, http://www.ryze.com and http://www.ecademy.com. Connect with local businesspeople in cyberspace and then take your connection “live” with a face-to-face meeting. You can also use these web sites as a great system to follow-up and keep in touch!
10. BECOME AN OPPORTUNITY MAGNET
At holiday time, some jobseekers tend to become overly negative or cynical during what they perceive as a “lull” in their career transition. Don’t fall into this trap. Get into positive action precisely when others are “giving up” until early next year. Think and speak positively, and you’ll become a magnet – ready to attract, interview, and “hire” your next employer.
If you’re currently in career transition or looking to move-up at your organization, these strategies should give you a new perspective on the holidays! Instead of “taking a vacation” from your career development activities, take full advantage of this overlooked opportunity to make real progress in your quest. Then, you’ll really have something to celebrate!
_____________________________________
Permission to Reprint: This article may be reprinted, provided it appears in its entirety with the following attribution: Copyright © 2006, Ford R. Myers and Career Potential, LLC.
A Sure-Fire Shortcut to Competitive Advantage
All businesses that outperform their competitors have two key characteristics in common: a highly-energized workforce, plus hordes of delighted customers that keep coming back. Two nice things to have - but of course everyone knows the reason so few businesses enjoy a clear competitive advantage is precisely because these two things are so difficult to achieve. But wait. If it’s really as difficult as all that, shouldn’t those few businesses that manage to pull it off be absolutely exhausted by the effort? When you take a close look (as I have) at those rare businesses that consistently achieve both objectives - flashpoint businesses, as I refer to them - what you invariably see is just the opposite. Employees at all levels seem perpetually fired up, as if every day they’re engaged in some kind of fun group activity. Is there some big secret about "energized workers" and "delighted customers" that these flashpoint businesses understand, and everyone else seems to have somehow missed?
There most certainly is. And it has to do with what most people consider the basic difference between "work" and "play". The first step on a shortcut to competitive advantage is to understand the specific elements that make play so much more satisfying than work.
Play Element 1: Challenge
Achieving better bowling scores would be so much easier if the bowling pins were closer. On the other hand, who would pay to go to a bowling alley where anyone could knock down all the pins every time with ease? Knocking them all down over and over again would quickly begin to feel like the kind of repetitive, pointless activity most bowlers experience at their jobs, and go bowling precisely to get away from. To be fun, it has to be a real challenge—that’s key.
In most workplaces, there is no one single well-defined “mission” that takes precedence over everything else. Instead, there are all kinds of tasks and objectives and deadlines that often make workers feel they’re being pulled in a dozen directions at once. For many, the only real challenge on the job is resisting the temptation to quit.
Contrast this with flashpoint businesses, where the one crystal-clear overriding mission is to draw business away from competitors by attempting to delight every customer every time. In these businesses, the reason it looks like workers are having fun is because in many ways their work feels like a game with a single, challenging, shared objective.
Shortcut to Competitive Advantage, Part One: Challenge everyone in your business to think of -outperforming the competition through superior customer care” as the primary objective that overrides all others at all times.
Play Element 2: Rules
Every play activity has it own elaborate set of rules. In a new game, even before play begins, all the rules are carefully spelled out. These rules add to the challenge, and keep the game fair for all.
In the work setting, the rules are often vague and unclear. They may even seem to shift and change from time to time, based on different situations as they arise. Workers often feel reluctant to take initiatives, unsure if doing so will later earn them praise (for “thinking outside the box”) or rebukes (for “breaking the rules”). They tend to adopt a play-it-safe approach.
By comparison, most flashpoint businesses spell out their values and their priorities—the rules—over and over again. “Your goal is to delight the customer, but not by doing anything that harms the organization in any way.” “We want to pull business away from our competitors, but never in an unlawful or underhanded way.”
Shortcut to Competitive Advantage, Part Two: Ensure that your workers understand how the game is to be played—how, for example, you will be giving them opportunities to come up with their own ideas for enhancing the customer experience. Clarify what constitutes a “foul” or a violation of the rules.
Play Element 3: Scoring
In play activities of every kind, there exists some sort of scoring mechanism that lets the players know immediately how well they’re doing. This immediacy is critical. How popular would bowling be if the pins were in the dark, and players never found out how well they played until their scores arrived in the mail weeks later?
This is what it feels like for most workers on the job. They don’t find out how well they’re doing until the “quarterly reports” come out, or until their annual performance evaluation meeting.
Things are different in flashpoint businesses. There, spontaneous positive feedback from happy customers becomes the number-one scoring mechanism. At the same time it also serves as the number-one employee motivator, the basis for endless internal celebration and recognition.
Shortcut to Competitive Advantage, Part Three: Harvest immediate positive customer feedback by every means at your disposal, (especially informal face-to-face conversation), and direct as much of this feedback as possible to your workers.
Play Element 4: Satisfaction
Bowlers know before every game that they won’t succeed in knocking down every pin every time. Players in every kind of game know they’ll never achieve a perfect score—but this does nothing to diminish their attempts to do so. And when their score tells them their performance has moved closer to the unachievable goal, their feeling of satisfaction and accomplishment is profound. There’s shouting and high-fiveing and every kind of exuberant victory dance imaginable.
Flashpoint businesses also know they won’t succeed in delighting every customer every time. But when the feedback indicates they’ve moved closer to that unattainable objective, the same kind of cheering and celebration erupts. It’s something that’s almost never experienced in the majority of workplaces, and it’s something that’s almost routine in flashpoint businesses. They’ve once gain beat the opposing team, and once again the dance of victory unites all of them in their shared accomplishment—and in their shared determination to play the game again, and strive together to win another round.
Shortcut to Competitive Advantage, Part Four: Create a culture of celebration that maximizes workers’ sense of accomplishment with every “rave review” from delighted customers. This is the motivational fuel that quickly gains the most powerful competitive edge in any business—and helps sustain it over the long term.
Customer-focus consultant Paul Levesque’s latest book is Customer Service From The Inside Out Made Easy (Entrepreneur Press, 2006).
There most certainly is. And it has to do with what most people consider the basic difference between "work" and "play". The first step on a shortcut to competitive advantage is to understand the specific elements that make play so much more satisfying than work.
Play Element 1: Challenge
Achieving better bowling scores would be so much easier if the bowling pins were closer. On the other hand, who would pay to go to a bowling alley where anyone could knock down all the pins every time with ease? Knocking them all down over and over again would quickly begin to feel like the kind of repetitive, pointless activity most bowlers experience at their jobs, and go bowling precisely to get away from. To be fun, it has to be a real challenge—that’s key.
In most workplaces, there is no one single well-defined “mission” that takes precedence over everything else. Instead, there are all kinds of tasks and objectives and deadlines that often make workers feel they’re being pulled in a dozen directions at once. For many, the only real challenge on the job is resisting the temptation to quit.
Contrast this with flashpoint businesses, where the one crystal-clear overriding mission is to draw business away from competitors by attempting to delight every customer every time. In these businesses, the reason it looks like workers are having fun is because in many ways their work feels like a game with a single, challenging, shared objective.
Shortcut to Competitive Advantage, Part One: Challenge everyone in your business to think of -outperforming the competition through superior customer care” as the primary objective that overrides all others at all times.
Play Element 2: Rules
Every play activity has it own elaborate set of rules. In a new game, even before play begins, all the rules are carefully spelled out. These rules add to the challenge, and keep the game fair for all.
In the work setting, the rules are often vague and unclear. They may even seem to shift and change from time to time, based on different situations as they arise. Workers often feel reluctant to take initiatives, unsure if doing so will later earn them praise (for “thinking outside the box”) or rebukes (for “breaking the rules”). They tend to adopt a play-it-safe approach.
By comparison, most flashpoint businesses spell out their values and their priorities—the rules—over and over again. “Your goal is to delight the customer, but not by doing anything that harms the organization in any way.” “We want to pull business away from our competitors, but never in an unlawful or underhanded way.”
Shortcut to Competitive Advantage, Part Two: Ensure that your workers understand how the game is to be played—how, for example, you will be giving them opportunities to come up with their own ideas for enhancing the customer experience. Clarify what constitutes a “foul” or a violation of the rules.
Play Element 3: Scoring
In play activities of every kind, there exists some sort of scoring mechanism that lets the players know immediately how well they’re doing. This immediacy is critical. How popular would bowling be if the pins were in the dark, and players never found out how well they played until their scores arrived in the mail weeks later?
This is what it feels like for most workers on the job. They don’t find out how well they’re doing until the “quarterly reports” come out, or until their annual performance evaluation meeting.
Things are different in flashpoint businesses. There, spontaneous positive feedback from happy customers becomes the number-one scoring mechanism. At the same time it also serves as the number-one employee motivator, the basis for endless internal celebration and recognition.
Shortcut to Competitive Advantage, Part Three: Harvest immediate positive customer feedback by every means at your disposal, (especially informal face-to-face conversation), and direct as much of this feedback as possible to your workers.
Play Element 4: Satisfaction
Bowlers know before every game that they won’t succeed in knocking down every pin every time. Players in every kind of game know they’ll never achieve a perfect score—but this does nothing to diminish their attempts to do so. And when their score tells them their performance has moved closer to the unachievable goal, their feeling of satisfaction and accomplishment is profound. There’s shouting and high-fiveing and every kind of exuberant victory dance imaginable.
Flashpoint businesses also know they won’t succeed in delighting every customer every time. But when the feedback indicates they’ve moved closer to that unattainable objective, the same kind of cheering and celebration erupts. It’s something that’s almost never experienced in the majority of workplaces, and it’s something that’s almost routine in flashpoint businesses. They’ve once gain beat the opposing team, and once again the dance of victory unites all of them in their shared accomplishment—and in their shared determination to play the game again, and strive together to win another round.
Shortcut to Competitive Advantage, Part Four: Create a culture of celebration that maximizes workers’ sense of accomplishment with every “rave review” from delighted customers. This is the motivational fuel that quickly gains the most powerful competitive edge in any business—and helps sustain it over the long term.
Customer-focus consultant Paul Levesque’s latest book is Customer Service From The Inside Out Made Easy (Entrepreneur Press, 2006).
Make a Living in your Underwear
Bill finished college in May, it was a beautiful ceremony, and was the culmination of many hard years of study. “So what are you going to do now?” I asked him, as we were having a cup of coffee in a local cafe. “Get a resume together and start looking for jobs” was his reply. And that is the reply of about 99% of the people getting out of college. It’s the way we are socially programmed to think, it’s the same thing that everybody else does. Now just because everybody else does it, doesn’t necessarily make it the right thing to do. I believe that if you have a reasonable amount of intelligence and an entrepreneur spirit there are many other far better ways to make a living. People have the attitude that I need to work hard to support my family, but in my opinion it’s all for nothing if you only get to enjoy time with your family a small portion of your life. I don’t know about you but when I am gone I don’t want my kids to know me as a good provider, I want to be remembered as a good father, and I cannot be a good father when I am a serving and making another person wealthy and I am never around.
Goals
The first thing that you need to accomplish is set some goals for yourself, I cannot stress to you enough how important goals are in your life, set personal goals and spiritual goals. Goals will give you something to shoot for, write them down and read them everyday. Now don’t set your goals unrealistically (ie. I want to make 20,000 a month in three months) start small young man and meet the reachable goal then set another one and meet that. Be specific in your goals and structure the steps to meet them, don’t write a goal like I want to be a millionaire. We all want to be millionaire’s but we have to be a thousandaire’s first. There are plenty of books and articles on writing goals, so your first assignment or goal will be to write down a set of goals and the steps to reach them, and read them everyday, it will be your motivation to keep you on track.
Your Passion
What is your passion? What do you have or what can you create that others will pay you for? Can you create art that people would love to have hanging in their home? Can you create music that others would love to listen to? Can you write computer programs that others just can’t live without? Can you make beautiful websites? Can you write informational articles? There are no limits, choose something that you are very passionate about that others will pay you for, then monetize it. At first you might have to get a job while you monetize your passion, take baby steps, start a goal to make an additional $10.00 a month with your passion, and once you meet that, bump it up to $50.00, keep this momentum going until you are able to quit your regular job and do your passion full-time, then you will be successful.
Obstacles
I want you all to ponder these next seven words that I am going to say. “As you think, so shall you be” Thoughts are things, if you think you can then you will, If you think you can’t, then you wont. Get rid of your obstacles that you have conditioned yourself to believe. It drives me crazy when you hear people sabotage themselves by blaming things that have happened in the past for the reason they cannot succeed in the future. I’m not smart enough, I never had a chance, I was raised in the ghetto, I’m too poor, I’m too short, too old, too young, enough with the excuses, quit using other people and other events for excuses why you can’t do something or are unable to succeed. It is all too easy to do this, because the other choice takes a little effort and in reality the person down deep inside really doesn’t want to change or improve themselves, they just want to use excuses. Think about this parable, Imagine yourself in the back of a truck riding down a dirt road. Now you are standing in the bed of this truck looking out the back and seeing the trail in the dirt from the tires, these tracks in the dirt is your past. Now think about what is moving the truck forward, it is the engine, consider the engine as the drive of yourself to improve your life or become successful. Now ask yourself does the tracks that the tires are leaving in the dirt make the truck go forward? The answer of course is NO. So enough with the excuses of things that have happened in the past, and it is now time to start moving forward.
Residual or Passive Income
When you are owned by another company, in other words trading your time for money, you only get paid while you are working. Wouldn’t it be nice to make money all the time? This is the definition of passive or residual income. The simplest example of this is having money in a mutual fund drawing interest, it doesn’t matter if your sleeping, eating, playing with your kids or whatever, you are always making money. This is what you must set in place to make a living and also do whatever else it is that you enjoy doing. Again going back to your passion, write a software program and put it on a web site, where people can pay for it and download it, and you will make money at all times, put some photographs on a site that people can buy, create a web site that generates a massive amount of visitors and sell your ad space. There are thousands of ways to create residual income, try them out see which one works for you. Generate multiple sites and put different items on them, get rid of the ones that don’t work and keep and duplicate the ones that do.
Success and Failure
Before success comes in any man’s life he is sure to meet with much temporary defeat and, perhaps, some failures. When defeat overtakes a man, the easiest and most logical thing to do is quit. That is exactly what the majority of men do. Napoleon Hill
Being challenged in life is inevitable, being defeated is optional. Roger Crawford
Defeat never comes to anyone until they admit it. Josephus Daniels
Develop success from failures. Discouragement and failure are two of the surest stepping stones to success. Dale Carnegie
Keep in mind if you are not failing, then you are not moving forward, so don’t get discouraged, keep the strong will going and you are destined to succeed. One of the biggest fears that you will go through in your mind is I don’t have anything to offer others, maybe getting a job is the best option for me. Don’t fall in to this line of thinking, it is just part of the social programming that you are accustomed to. You already know that getting a job is not the option that you want to take, so don’t listen to others that try and discourage you. “That is crazy talk, that wont work, just get you a job”. The reason there are so many people including family members that try to discourage you, is that when you try and do something different to better yourself, it makes others feel guilty, and well you have heard the old saying Misery loves Company, they try and discourage you. Learn to trust your Intuition, even if the whole world is telling you it can’t be done. Years from now when you look back as a successful Work at Home entrepreneur you will thank heavens you had the intestinal fortitude to stay on the straight and narrow and become a success.
Goals
The first thing that you need to accomplish is set some goals for yourself, I cannot stress to you enough how important goals are in your life, set personal goals and spiritual goals. Goals will give you something to shoot for, write them down and read them everyday. Now don’t set your goals unrealistically (ie. I want to make 20,000 a month in three months) start small young man and meet the reachable goal then set another one and meet that. Be specific in your goals and structure the steps to meet them, don’t write a goal like I want to be a millionaire. We all want to be millionaire’s but we have to be a thousandaire’s first. There are plenty of books and articles on writing goals, so your first assignment or goal will be to write down a set of goals and the steps to reach them, and read them everyday, it will be your motivation to keep you on track.
Your Passion
What is your passion? What do you have or what can you create that others will pay you for? Can you create art that people would love to have hanging in their home? Can you create music that others would love to listen to? Can you write computer programs that others just can’t live without? Can you make beautiful websites? Can you write informational articles? There are no limits, choose something that you are very passionate about that others will pay you for, then monetize it. At first you might have to get a job while you monetize your passion, take baby steps, start a goal to make an additional $10.00 a month with your passion, and once you meet that, bump it up to $50.00, keep this momentum going until you are able to quit your regular job and do your passion full-time, then you will be successful.
Obstacles
I want you all to ponder these next seven words that I am going to say. “As you think, so shall you be” Thoughts are things, if you think you can then you will, If you think you can’t, then you wont. Get rid of your obstacles that you have conditioned yourself to believe. It drives me crazy when you hear people sabotage themselves by blaming things that have happened in the past for the reason they cannot succeed in the future. I’m not smart enough, I never had a chance, I was raised in the ghetto, I’m too poor, I’m too short, too old, too young, enough with the excuses, quit using other people and other events for excuses why you can’t do something or are unable to succeed. It is all too easy to do this, because the other choice takes a little effort and in reality the person down deep inside really doesn’t want to change or improve themselves, they just want to use excuses. Think about this parable, Imagine yourself in the back of a truck riding down a dirt road. Now you are standing in the bed of this truck looking out the back and seeing the trail in the dirt from the tires, these tracks in the dirt is your past. Now think about what is moving the truck forward, it is the engine, consider the engine as the drive of yourself to improve your life or become successful. Now ask yourself does the tracks that the tires are leaving in the dirt make the truck go forward? The answer of course is NO. So enough with the excuses of things that have happened in the past, and it is now time to start moving forward.
Residual or Passive Income
When you are owned by another company, in other words trading your time for money, you only get paid while you are working. Wouldn’t it be nice to make money all the time? This is the definition of passive or residual income. The simplest example of this is having money in a mutual fund drawing interest, it doesn’t matter if your sleeping, eating, playing with your kids or whatever, you are always making money. This is what you must set in place to make a living and also do whatever else it is that you enjoy doing. Again going back to your passion, write a software program and put it on a web site, where people can pay for it and download it, and you will make money at all times, put some photographs on a site that people can buy, create a web site that generates a massive amount of visitors and sell your ad space. There are thousands of ways to create residual income, try them out see which one works for you. Generate multiple sites and put different items on them, get rid of the ones that don’t work and keep and duplicate the ones that do.
Success and Failure
Before success comes in any man’s life he is sure to meet with much temporary defeat and, perhaps, some failures. When defeat overtakes a man, the easiest and most logical thing to do is quit. That is exactly what the majority of men do. Napoleon Hill
Being challenged in life is inevitable, being defeated is optional. Roger Crawford
Defeat never comes to anyone until they admit it. Josephus Daniels
Develop success from failures. Discouragement and failure are two of the surest stepping stones to success. Dale Carnegie
Keep in mind if you are not failing, then you are not moving forward, so don’t get discouraged, keep the strong will going and you are destined to succeed. One of the biggest fears that you will go through in your mind is I don’t have anything to offer others, maybe getting a job is the best option for me. Don’t fall in to this line of thinking, it is just part of the social programming that you are accustomed to. You already know that getting a job is not the option that you want to take, so don’t listen to others that try and discourage you. “That is crazy talk, that wont work, just get you a job”. The reason there are so many people including family members that try to discourage you, is that when you try and do something different to better yourself, it makes others feel guilty, and well you have heard the old saying Misery loves Company, they try and discourage you. Learn to trust your Intuition, even if the whole world is telling you it can’t be done. Years from now when you look back as a successful Work at Home entrepreneur you will thank heavens you had the intestinal fortitude to stay on the straight and narrow and become a success.
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