When you engage in proper money management even the seemingly impossible often becomes certain in time. When you engage in improper money management even the probable becomes impossible in time.
I thought about posting this to my literary blog, but… then I thought to myself, no, this story contains so many of the lessons I’ve learned in business and regarding corporate espionage that I’ll put it here, on Launch Port.
I’ll continue writing the story in sections and then serialize it here on Launch Port. Enjoy.
THE BUTT-NAKED BUSINESSMAN
Chapter One: The Breeched Bureau
End-Over placed his luggage at the foot of the bureau. The important thing about a bureau in his mind, if you were going to have one at all, was that it be tightly arranged and well ordered. Most people didn’t understand this, even those who made much use of bureaus. Then again, most people started at the over, and not at the end. He had been born breeched. The end as the logical starting place was natural to him.
It also struck many people as either odd, or humorous, or both, that he would bring so much luggage to a Nudist Camp. But to him, if you were going to camp, the important thing was to always be prepared. Being naked in the face of being nude was to him a very different thing than being both naked and nude. The nude part he had worked himself up to without much trouble. Truth was he had always preferred being nude. The being naked though, that was another matter. They didn’t mesh well in his mind with the other parts of himself. Nude was just another form of camouflage, and another form of gregarious sociability. Naked was, well, it was being naked. You either got that, or you didn’t. End-Over got it, and because of that, he avoided naked.
Everyone at the colony, for he preferred to call it a Colony rather than a Camp, called him John. Or Tule. Because he told everyone his real name was John Tuli. It wasn’t of course, and it wasn’t the only alias he employed. After all real names left one naked, and considering that he was a businessman and considering his business, he was satisfied to let everyone else see him nude rather than naked. His name didn’t interfere with his time at the Colony, it didn’t interfere with his fun, it didn’t make him any less likely to be what he was or to do what he’d do, it was just a name. A corporate structure. He wasn’t attached to it. He wasn’t even attached to his real name. It implied certain things about him, helped clarified aspects of his past. Like all names though it was self-limiting, wasn’t really descriptive at all, other than the meaning others attached to it. Public names, real, or imagined, or created, were like terms to him. Something you could hang an idea on, not something you could develop a solid, working description from. He had a secret name for himself, something no-one else knew. Well, no-one else except maybe God. But it wasn’t a naked name, and it wasn’t a nude name, and it wasn’t a public name, and it wasn’t even a private name. It was a name he used when he talked to himself. Which was often enough that he was respectful of it. So he never used it otherwise, and never spoke it in vain.
He turned from the bureau and examined the room he stood in. It was part of the same cabin he always stayed at when he visited the colony. The floors were stained hardwood, dusty and warm, it seemed to him, no matter what time of year he visited. The furniture was typically resort issue. Standing floor lamps, warm yellow bulbs that shed very little light. That was perfectly fine by him.
The bed was low slung, with no headboard. The mattress was new, and the sheets clean and well tended. On his pillow lay a single wrapped chocolate and with a white rose topping a crisp, bright, white envelop with gold, calligraphic insignia cut to conceal a card rather than a letter. The card was no doubt the typical greeting he always received whenever he visited.
The small kitchen would be clean, swept, dry, and sterile. The floor tiles black and white, the polished faux granite counters would gleam dully. The sinks would shine, the faucets would be scrubbed. Dishes would be neatly stacked and put away in their proper places. The silverware would look as if just purchased. The white-frosted, spherical, enclosed light fixtures would hang halfway between the roof and the floor of the vaulted kitchen ceiling. The refrigerator and freezer would be completely empty of anything but ice, which would be plentiful, and the cabinets would be entirely bare. This didn’t matter to him though; he would stock his own larder. He preferred it that way.
The single bathroom of his cabin would be spotless, the toilet almost pristine, a large shaving mirror would hang above a sink free of all traces it had ever been previously used, and a full length door mirror would decorate the inside door of the bathroom. The bath would be part programmable Jacuzzi, part rounded tub, and would conceal a detachable, multi-pulse showerhead. He liked the set up and looked forward to a few long, relaxing soaks at night while he listened to opera and dozed in the warm water. Which he would salt and pour white wine in for the smell, and because it would relax him all the more…
You should treat your assets, your businesses, your creations, your investments, your money, and your wealth exactly like your children. You should build them up, develop and grow them so that they can function, and function well, without your presence. Eventually you want your every asset to have a completely independent existence, entirely free of the necessity of you.
You want the things you create and the things you have and the things you produce to have their own life, to outgrow you, and to do those good things in the world that you could never do alone because, after all, you are but one man.
Look at your assets as you would your own children and off-spring, the point is never to maintain a life-long control of them, but to develop them in such a way that they no longer need you. That they outgrow and exceed you. Do this and you will prosper, do this and the world will prosper.
In the long run this approach will make you much, much wealthier and much, much wiser, and better still it will make the world much, much wealthier for your uncommon Wisdom. When good things outgrow their creator everyone benefits. Especially the creator.
Do not just do good with the things you create and possess, let the things you create and possess Do Good on their own.
As a child my parents taught me almost nothing at all about money. (Other than earn and save it.) Despite the fact that my father was a successful tool and die maker, an inventor, and had owned and sold his business (at a nice profit) I nevertheless received a very scant education in money matters.
I remember many times, seeing my parents doing their taxes and asking them, “teach me about taxes, teach me about money, and how this works.”
They always basically told me, “You’re a child, you don’t need to worry about this right now, you’ll learn about this when you grow up – on your own.”
I guess that was simply the Weltanschauung of their generation and age. It is, however, not mine.
Because of that when I entered college, and for the rest of my life, I have been learning about business, capital, Capitalism, economics, finance, investment, money, and all other related money-matters. Money is a big part of my Personal-Education Plan (PEP Program), and my self developed IEA (Individual Education Account).
When I first got married I realized pretty quickly that my wife had no idea about money, how it operated, or why it worked as it did. She, likewise, had little to no real education on money matters from her parents either.
Determined not to let financial ignorance and bad money management work against her, me, our marriage, or in the lives of my children I have developed Economic and Monetary Educational Materials to use for their instructional benefit. Since I homeschooled my children for their entire primary educational period (pre-college) I made sure to incorporate both basic and advanced course materials on budgeting, business, Capitalism, career, economics, entrepreneurship, finances, investment, profit, etc. I also make sure they practice what they learn. Both are far better at money matters than I was at their age.
I am to the point now that regardless of what happens to me I feel confident that they are in possession of enough useful materials, and have been trained and habituated in such a way as to assure they will be successful in their own businesses, careers, and with money.
Below you will find a very basic summary of the most fundamental things I have taught them concerning money. They are well advanced beyond these simple ideas, but, in starting any venture it is always necessary to begin with the fundamentals. Often, over the course of time, it is necessary to return to the fundamentals as well.
Beneath the section on Money and Power 101 is a short document I developed regarding the Hoards I believe each person should develop over their lifetimes and how to employ and use these Hoards.
This “List of Hoards” is hardly exhaustive, but it does include most of the Hoards I consider most basic, except for the Word Hoard. Which technically could be a part of your Charisma Hoard, but really I consider a person’s language, linguistic, and vocabulary (Word) hoards to be an entirely separate set of treasures.
I offer these posts in the hopes that they may assist you, especially if you are just starting out in the world, to master your own Money and to develop the Hoards that you will find most useful.
I do not insist you necessarily agree with my definitions, but I do urge you to make your own studies of Money and the Power it engenders, I do urge you to master Money (rather than be mastered by it, wither as a poverty-stricken person or as a wealthy person), and I do urge you to develop and grow your own Hoards.
You will thank yourself for such efforts later on in life, and very likely the world will thank you for having made such efforts.
Comments are welcome.
MONEY AND POWER 101
MONEY is the financial power to do as you need and wish in the world. The more money your have the more power you have, the less money you have the less power you have.
SURPLUS is the amount of anything you have in excess to your actual or current needs. Your surplus should always be as great as possible of imperishable items.
PROFIT is the amount of money earned or generated in excess of expenditures.
INSURANCE is a money pool set aside for emergencies. If possible it is best to self-insure.
TAXES are the amount of money lost or exhausted to an individual by being seized by the government.
EARNINGS are the amount of money you generate for yourself through various actions of Work. Earnings are divided into three separate subcategories.
Income is the total amount of earnings one generates through all earnings sources. Originally it was that income (come-in) generated by investments.
Investments is the amount of earnings generated by whatever vehicles one is invested (vested) in. Investments are earnings or income vehicles generated by Risk.
Salaries or Wages is the amount of earnings generated by working for or laboring for others paid in the form of salary or wages. (Time or Work for money.)
SAVINGS – the amount of money already earned but not invested or spent but retained for long term goals or for emergencies.
EXPENDITURES – all monies spent to buy or pay for non-income producing items or services
Bills and Living Expenses – those monies paid to creditors or service providers for goods and services purchased. Bills and Living Expenses are monies lost to others.
Necessities – those monies expended for all goods and services of a necessary nature: food, shelter, power, necessary maintenance, etc.
Emergencies – those monies expended for emergencies and immediately unforeseen expenses, such as medical bills and repairs.
Entertainment – those mines expended for entertainment, recreation, etc.
GIVING – all monies given to the care and well-being of others to service their needs, also any resources given to others for their support.
Charity – giving to Church and/or Charitable causes with the intention of supporting the long term needs of an individual or an organization.
Philanthropy – giving to humane and other causes with the intent of addressing or solving specific needs or problems or projects. For instance one might found or support a philanthropic enterprise to support literacy, to build a hospital, to fund a scholarship, etc.
PREPARATION – always keep your money growing, in motion, invested, and in use for worthwhile things. Always plan as far ahead as possible regarding expenditures to be made. Always have accurate and complete information about all aspect s of your money and how it will be used.
RISK – all enterprises require risk. Risk is the amount of danger required to service a worthwhile enterprise or investment relative to the potential reward or Return on Investment (ROI) the enterprise or investment will generate (in the case of business, financial, and monetary activity). Generally speaking the higher the risk the greater the return or reward, and the lower the risk the lower the return or reward. However measures should always be taken to favorably mitigate risk as much as possible.
REWARD – is the amount of gain generated by the successful conclusion or progress of a worthwhile Risk. Another term that is synonymous with reward in financial and monetary matters is Return on Investment, which is a measure of gain generated by risk relative to the danger of initial loss of the initial loss of the investment.
MONEY – having more than enough money needed to meet all of your needs and the needs of others should make you happy. Making money should make you happy, and having a large surplus of money should be associated with pleasant thoughts and feelings and with security. Money is a personal, physical, financial, economic, psychological, social, and spiritual force, or power, and should be treated and employed as such. Money should not master a man, either by having too little, or by being consumed and over-powered by it. Money is a servant, not a Lord.
CAPITALISM – is that form of economic activity, or that system of economics, that seeks to build and generate Capital Pools, or reserves of money, that can thereafter be employed to build businesses, funneled into investments, grow and expand enterprises, etc. and thereby generate even more Capital and ever larger reserves of Profits. Capitalism depends on the fact that money is constantly invested and employed and that new ventures and enterprises are continually started and grown so as to continually create New Wealth. Capitalism also depends heavily upon Free and Unfettered Markets.
Always make ongoing use of and constantly develop your hoards for an unused hoard is useless and an undeveloped hoard has no value.
ABILITY HOARD – every ability, capability, skill, and talent that a person possesses and develops in life
ACHIEVEMENT HOARD – every good and worthwhile achievement or enterprise that a person ever accomplishes
CHARISMA HOARD – all beneficial influence and powers of persuasion an individual possesses to sway others to participate in worthwhile endeavors
CHARITY AND PHILANTHROPY HOARD – all charitable and philanthropic works that one engages in to assist others
CREATION AND WORK HOARD – everything of value that a person creates, and all of the valuable Work that one ever does over the course of life.
ESTATE AND LAND HOARD – all estates, lands, and real properties that one owns or controls
INVESTMENT HOARD – all good and profitable investments that a person is engaged in or is participating in
RELATIONSHIP HOARD – all beneficial relationships which an individual may rely upon for advancement, comfort, friendship, and support
TREASURE HOARD – all objects, things, or possessions that are of economic, monetary, and physical value
VIRTUE HOARD – all of the Virtues that a person possesses and can command within his person
BLESSINGS, HEIRLOOMS, LEGACIES, AND INHERITANCE – all of the blessings, heirlooms, legacies, and inheritances passed down by one individual or one generation to another
I had to learn a very similar lesson myself. One of the hardest, and yet most productive lessons I ever learned.
With well over 50 billion dollars to his name, Warren Buffett is consistently ranked among the wealthiest people in the world. Out of all the investors in the 20th century, Buffett was the most successful.
Given his success, it stands to reason that Buffett has an excellent understanding of how to spend his time each day. From a monetary perspective, you could say that he manages his time better than anyone else.
And that’s why the story below, which was shared directly from Buffett’s employee to my good friend Scott Dinsmore, caught my attention.
Let’s talk about the simple 3-step productivity strategy that Warren Buffett uses to help his employees determine their priorities and actions.
The Story of Mike Flint
Mike Flint was Buffett’s personal airplane pilot for 10 years. (Flint has also flown four US Presidents, so I think we can safely say he is good at his job.) According to Flint, he was talking about his career priorities with Buffett when his boss asked the pilot to go through a 3-step exercise.
Here’s how it works…
STEP 1: Buffett started by asking Flint to write down his top 25 career goals. So, Flint took some time and wrote them down. (Note: you could also complete this exercise with goals for a shorter timeline. For example, write down the top 25 things you want to accomplish this week.)
STEP 2: Then, Buffett asked Flint to review his list and circle his top 5 goals. Again, Flint took some time, made his way through the list, and eventually decided on his 5 most important goals.
Note: If you’re following along at home, pause right now and do these first two steps before moving on to Step 3.
STEP 3: At this point, Flint had two lists. The 5 items he had circled were List A and the 20 items he had not circled were List B.
Flint confirmed that he would start working on his top 5 goals right away. And that’s when Buffett asked him about the second list, “And what about the ones you didn’t circle?”
Related: 3 Simple Ways to Improve Your Sleep
Flint replied, “Well, the top 5 are my primary focus, but the other 20 come in a close second. They are still important so I’ll work on those intermittently as I see fit. They are not as urgent, but I still plan to give them a dedicated effort.”
To which Buffett replied, “No. You’ve got it wrong, Mike. Everything you didn’t circle just became your Avoid-At-All-Cost list. No matter what, these things get no attention from you until you’ve succeeded with your top 5.”
The Power of Elimination
I believe in minimalism and simplicity. I like getting rid of waste. I think that eliminating the inessential is one of the best ways to make life easier, make good habits more automatic, and make you grateful for what you do have.
That said, getting rid of wasteful items and decisions is relatively easy. It’s eliminating things you care about that is difficult. It is hard to prevent using your time on things that are easy to rationalize, but that have little payoff. The tasks that have the greatest likelihood of derailing your progress are the ones you care about, but that aren’t truly important.
Every behavior has a cost. Even neutral behaviors aren’t really neutral. They take up time, energy, and space that could be put toward better behaviors or more important tasks. We are often spinning in motion instead of taking action.
This is why Buffett’s strategy is particularly brilliant. Items 6 through 25 on your list are things you care about. They are important to you. It is very easy to justify spending your time on them. But when you compare them to your top 5 goals, these items are distractions. Spending time on secondary priorities is the reason you have 20 half-finished projects instead of 5 completed ones.
Eliminate ruthlessly. Force yourself to focus. Complete a task or kill it.
The most dangerous distractions are the ones you love, but that don’t love you back.
Not for me it won’t. I may be a kind of throwback but Work is far too enjoyable and far too important a part of my very Nature for me to limit it to 3 days per week. As a matter of fact I often Work 7 days a week if you count having ideas and making notes about projects I intend to later pursue.
I cannot imagine only wanting to work 3 days per week or how unfulfilling that would be, but to me it would be extremely unfulfilling. Now if someone wants to pay me 7 days worth of compensation for 3 days worth of Work and effort than that is fine by me, But I would not simply screw away the other two days. I’d find something productive to do with them, and Work on that thing.
By the way simply having more time will not buy you more opportunities, more things, or more useful and fun activities or experiences. More money allows you to buy more control over your time, but more time alone will not purchase anything other than unproductive and wasted time.
More money will allow you to purchase more control of your life, but more time without more money will purchase nothing in itself. It is the time-to-money-ratio that is the pathway to profit and control of your time and resources, not the time in exchange for money ratio.
October 8, 2014: 12:11 PM ET
The richest man in the world thinks you’re working too much.
Carlos Slim, the Mexican telecom tycoon worth over $80 billion, believes life would be better with a three-day work week.
“You should have more time for you during all of your life — not when you’re 65 and retired,” Slim told CNNMoney’s Christine Romans on Tuesday.
But if Slim had his way, people would also work longer days and much later in life. He suggested 11-hour shifts and pushing the retirement age to 75.
Slim raised eyebrows over the summer by calling for a three-day work week, but he doubled down on that proposal on Tuesday.
“I am sure it will happen,” the 74-year-old told CNNMoney, though he conceded he’s not sure when.
While “machines should work 24 hours and services should work as much as possible,” Slim said people deserve more time for entertainment, family and to train for better jobs.
He also believes the radical change would give younger workers more opportunity to enter the workforce and be a positive for the economy and financial markets.
“It’s a society of knowledge and experience. You have better experience and knowledge when you are 60, 65 and 70,” Slim said.
The $83 billion man: It’s an interesting idea considering the source: a self-made billionaire who Forbes estimates is worth about $83 billion. Slim has been alternating the crown for the world’s richest man with Microsof (Tech30)founder Bill Gates, whose wealth is valued at nearly $81 billion…,