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The problem with money and why I never give financial advice

By Newsletters, Registered

Hello again

Just to recap, none of this is financial advice. What I say is merely for entertainment purposes only. Shame that I have to keep writing that, but that’s the world we live in folks.

Over the last few newsletters I have been discussing the way we as human beings live our lives based around the concept of money. As a recap it is my philosophy that you should earn more and spend less. That way you get to a point where your investments are sufficient to keep you in the lifestyle you want…….. so that you can then step back and work only because you want to not because you have to.

Now for those who want to take up this philosophy (and let me tell you from the start it is not for everyone) the spending less money every month is the place to start. The reason being is a little law called “Parkinson’s Law”

“Expenses rise to meet earnings”

It doesn’t matter how much you earn if you spend it all. You have to break Parkinson’s Law if you want to be financially independent because you aren’t going to win it and you aren’t going to inherit it. Admittedly, you might be able to build up a practice and sell it for a large capital gain, but if you have large debts and large overheads, that’s really not going to be such a windfall. Just run the maths.

Some people take to this like a duck to water, others struggle with it immensely.

“But I like driving flash cars”

And that’s fine, there is nothing wrong with that. If you want to spend the equivalent of six months income on a box that gets you from A to B go for it. I’m not telling you what to do, I’m just exploring possibilities.

You see I have a big problem with the “buy me and be happy” culture that is rammed down our throats by marketers. One because much of the marketing techniques used today are based on dubious psychological and NLP technologies, and secondly at the end of the day most people find that the happiness found in that latest purchase is fleeting. A new kitchen quickly becomes an old kitchen.

But that wasn’t what I wanted to talk about today. If you remember, the second part of the philosophy is to make more money. And there will be many of you who will be tapping me on the shoulder saying “well I tried that, but I just got a whacking great tax bill that sucked it all off to HMRC”. And that will happen initially, and many people keep hitting this wall time and again. But, let me tell you a little secret.

That wall is there for a reason.

And there are 2 points of view on this. The first is that there is an international conspiracy of bankers and puppet politicians that have manipulated the whole system to stop people getting ahead and stop them breaking out of the “matrix” for want of a better word. Keep them trapped, keep them producing and tax them to the hilt.

I think the second point of view is more empowering, and somewhat more realistic. The wall is a test. If you pass the test you get to a place that very few people see. Having spoken to several people who have passed the test, let me describe that place for you.

You no longer worry about your tax bill. You no longer have any debt, other than business debt. Your credit cards (if you even use them) are paid off in full every month. You never travel economy, but you also don’t flaunt your wealth. If you found you were suddenly unable to work tomorrow, you could last several years on the reserves you had set aside.

And the little voices of protest are rising up. It’s OK, you situation is different, I know. You’ve got kids, business is slow, you lost money in a dodgy investment. Of course, the people I spoke to pretty much all have or had those same things in their lives too, but we’ll not talk about that.

Did you know that most American millionaires went bankrupt at least once?

There is a threshold with making money. Once you have reduced your outgoings and broken Parkinson’s law, you find it easier to put aside your tax money. The more you earn, the more your earning power starts to outrun the tax taken (harder now with the 50% tax bracket I know, but still very possible). And what also happens is you stop relying on earnings that are hit by income tax. You start to gather investments that come under capital gains tax. You start to think “well maybe a bank account with its taxed interest isn’t the best place for my money” and you start to look elsewhere.

Once you pass the test, you start to get smart. And then something amazing happens.

Money just starts to appear. You just seem to attract it. Because you are no longer worrying about money, you brain shifts……… and you start seeing opportunities all around you. It’s scary. There is of course something else that can happen, some people get complacent and lazy…… and get sucked right back below the threshold.

But you don’t even reach the threshold until you get out of the spending habit.

And as for making it, well I’m shortly going to announce something that will be extremely exciting to some of you. But only some of you.

The rest of you (the rest being the large majority) will have no interest in it whatsoever…. which is a good. Because firstly it involves an investment technique that is more risky than keeping your money in the bank. Secondly it’s very expensive. Thirdly, it’s not guaranteed to make you any money whatsoever, in fact you could easily lose money. And fourthly it involves travelling to another country.

I know that’s not saying much. What I can tell you is for those of you who are interested, I will be able to get you a significant discount through my contacts with the organisers.

I’ll keep you posted.

Right I’m off to buy myself a new car :)

Regards

Stephen Hudson BDS, MFGDP, DRDP

Please help support the Sick Dentist Scheme and the BDA Benevolent fund by buying my book atChoose Your Reality. A proportion of the profits from its sale are split equally between these two charities

PS: Please feel free to pass this newsletter onto anyone you feel may be interested in it

PPS: Remember to check out our regularly updated PDS blog at http://nhsdentistry.blogspot.com/

GDP Resources

Disclaimer: S.Hudson or SNH Publications will not be held liable for any actions taken based on the information provided in this newsletters. This information is for entertainment only.

Your children will look at you 10 years from now with nothing but contempt

By Non registered

The following was sent to me by an anonymous source, and has asked me to print it.  So here it is.

“You see that the country is collapsing into a fetid pit of paper pushing, over regulation and newspeak, and yet you do nothing.  After all what on earth can you do?  You are but one man/woman.  Someone forgot to tell that to Rosa Parks.

You sit at home, watching your TV and mumble softly into your Shiraz because there is nothing you can do.  Someone forgot to tell that to Ghandi.

Another regulation is dumped on you from a great height and you grumble, but carry on regardless because there is nothing you can do.  Someone forgot to tell Martin Luther King that there was nothing he could do.

You voted for the Lib/Con coalition, but you forgot that their best intentions would be destroyed by the beast that is parliament, so you carry on regardless because there is nothing you can do.  If only someone had told Lech Wa??sa this.

You read the Daily Mail and chunter about the madness you see there.  But again you do nothing because there is nothing you can do.  If only Neslon Mandella had listened to the naysayers 

Your children will come to you 10 years from now and ask you WHY you let this all happen.

And you will answer that you were afraid.  You were afraid of being judged.  you were afraid you will be ridiculed.  You were afraid that the agents would come knocking on your door and ask you for your “papers”.  You were afraid that you were wrong.  you were afraid that you were right.

Can you look your child in the eye and say you are handing over a world fit for them to live in?

I merely ask the question”

Worth thinking about.

What do you want?

By Newsletters, Registered

 

Hello again

You are where you are in life at present pretty much due to the decisions you have made. Much of what happens to you from now on will be due to the things you did (or didn’t do) in the past. Of course you can choose to believe in fate, genetics, even Karma……. but when it comes down to it, you are the Captain of your own ship.

Let me give you some examples.

  • If you’re not rich and you want to be….. why aren’t you. It is because you have not CONSISTANTLY done what rich people do.
  • If you are overweight and you want to be thin….. why aren’t you. It’s because you have not CONSISTANTLY done what thin people do (it’s also because the modern western diet of high fructose corn syrup, MSG and non organic food resets the hypothalamus to lower your metabolism)
  • If you are not enjoying dentistry to the degree you once did…… why aren’t you. It is probably because you have lost your passion, your drive.

As I said, you are the Captain of your ship. And as always happens someone will come out with an excuse that what has happened to them wasn’t their fault. And sometimes that’s true. But most of the time, it’s your fault. Not your wifes, not the neighbours, not your stock brokers…….. yours.

It’s all down to you.

So let me ask you a question.

“What do you want?”

You see I know what you need. You need food, water, shelter and social interaction. But what do you WANT?

  • Do you want to make a million pounds?
  • Do you want to be the next J.D.Hull?
  • Do you want to own your own island?
  • Do you want to weigh a certain weight?
  • Do you want to look a certain way?
  • Do you want to feel a certain way?
  • Do you want to go Cliff Diving in South America?
  • Do you want to learn to fly a Helicoptor?
  • Do you want to spend most of your time in the garden?
  • Do you want to race camels under the gaze of the pyramids?
  •  

What do you want? And why do you want it?

Do you know? Or do you just THINK you know?

So my question to you is, if there is something you wanted that you haven’t achieved………. why haven’t you achieved it?

The answer is partly because you don’t want it badly enough.

The problem with most of us westerners is that we reach a certain point where we become comfortable. We think, oh this will do. I can put my feet up now. And you start coasting like a sail boat with no one in charge. The suns out, the waters are calm, and there is a nice gentle breeze to guide you on. Time to sit back and open a nice bottle of red. Because that’s what you THINK you want.

Are those storm clouds on the horizon? Ah, it’ll be ok. Think I’ll have a little snooze.

You know there are reefs around here don’t you?

It’ll be fine. Stop bothering me.

NO, IT WON’T BE FINE.

If you don’t have a plan, a roadmap as it were, then you are sailing randomly towards the rocks. Now the person in the boat next to you, he’s heading towards those same rocks………. but he sees them. He’s fighting like a bastard to change his course to steer round them. Because he knows what he wants. He knows where he is going. He sees the danger. Not only does he know what he wants, he knows what he DOESN’T want.

You laugh at him and sip champagne.

This is why so many people got their arses handed to them on a plate financially in 2001/2008. They listened to the wrong people and didn’t do a “worst case scenario” of their finances. They invested money in bubbles when every bubble from the dawn of time has popped.

They were coasting. You might say “but those people wanted more money, that’s why they invested. It’s not their fault the stock market tanked”.

Really? There were many people NOT invested, and they sailed through the financial storm unscathed. The latter knew what they wanted……… which means they knew what they wanted to AVOID. They wanted growth in funds with protection of capital. They saw the reef and protected themselves.

So I ask again, what do you want and what do you want to avoid?

The two go hand in hand. You cannot have one without the other.

I merely ask the question.

And several years ago I wrote for myself a goal setting system that dealt with all this. This system eventually became my Mastermind alliance product http://www.gdpresources.com/mastermind.shtml

It constantly ceases to amaze me how few people have direction in their life. They don’t know where they are going, and they wouldn’t even know how to get there if they did. Is that how you want to live your life, because it’s not how I want to live mine?

Your life is what you make it.

Regards

By the way if anyone thinks that the financial situation of this country (and the rest of the world for that) is on the mend………. well I’ve got some shares in Enron to sell you.

This from Australia

http://www.abc.net.au/news/video/2010/05/20/2905304.htm

Stephen Hudson BDS, MFGDP, DRDP

Please help support the Sick Dentist Scheme and the BDA Benevolent fund by buying my book atChoose Your Reality. A proportion of the profits from its sale are split equally between these two charities

PS: Please feel free to pass this newsletter onto anyone you feel may be interested in it

GDP Resources

Disclaimer: S.Hudson or SNH Publications will not be held liable for any actions taken based on the information provided in this newsletters. This information is for entertainment only.