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PERSONAL GROWTH AND DEVELOPMENT
The Definition of Success
Last month, one of my monthly readers sent an email asking for my definition of success. While I had the question on my mind, one of my kids mentioned how cool it would be if he won the lottery. He jokingly said he would share with me, as long as a couple of million were left for him. Then my son asked me what I would change about my life if I had all that money, and that's when it hit me: nothing really. The only difference would be that I wouldn’t have to be concerned about paying the monthly bills anymore, and maybe I would purchase a really nice house on a lake. But the actual contents of my life and the way I have furnished it so far would not undergo any significant transformation.
This discovery intrigued me. In fact, I was mulling it over long after the conversation with my son was over. I started wondering if success should be defined as the degree of satisfaction a person achieves with regard to the general contents of their life and contentment with the choices they have made. Just think about it for a moment: there are many wealthy people I meet who would give away much of their assets if only they could obtain contentment. Then there are the people balancing on the edge of poverty that have peace in their hearts, smiles on their faces, and activities that they would not want to change for the world. Now, which category of these people is really successful?
My conclusion is that success has just as many faces as any other possible theme, depending on the society in which it is measured, and the character of the person who measures it. Many people confuse success with wealth: they assume that a person's triumph can be determined by the cost of a watch, a car, or a house. They envy those in their circle of acquaintances who can financially afford more than they can. They keep comparing themselves with the Joneses and allow their happiness to depend on the level to which they can equal these people's lifestyles. They forget to do the simplest thing in the world: turn inside and analyze what it is that they really want. I always ask people in my seminars: If what you want has not become a reality at this time in your life, is it because of lack of discipline, effort, strategy, and timing, or is it someone else’s goal and not truly your heart’s desire?
I think success should be synonymous with happiness rather than affluence. It's only when you find satisfaction with what you're doing and don't dread facing each new day that you are truly successful. When you can move in an environment that pleases you, and where you feel at ease with the ones you deal with on a daily basis; when you feel loved, cared for, understood, and valued in what you do, and you don't have to switch personalities from one location to another, that's when you've really attained success. When you see that you make a difference, even if it is only in one person's life, when you are presented with gratitude, not only from others, but from your outer-self to your inner-self, that's when you are a real winner.
We cannot measure success by a person's cash or material cover, but by what exudes from his or her personality. You can feel it in a touch; you can hear it in a voice and in the way someone speaks, and you can see it in the eyes. Successful people are self-assured, know what they want, and go for it. And what they want, they determine internally and not by what others dictate to them.
So, my question to you is “Have you found the true success that matters most in life?” I would love to get your feedback on this.
PERSONAL FINANCIAL TIP
Myths about Credit
People always ask me about ways to improve their credit scores. Your overall financial mission is to get to a place where you don’t need credit. Think about it for a moment—if you are debt-free, own your home, and have $500,000 sitting in investments, would you finance a car? But what do you do now to improve your credit rating. I found this excellent article titled “Top Ten Myths about Credit Reporting and Debt Management” written by Nance Kelly.
There is a lot of information—and misinformation—about credit reporting and debt management on the internet. Here are 10 myths about credit reporting and debt management, as well as the cold hard facts.
Myth 1: Paying a debt will remove it from your credit report.
Late payments, delinquent accounts, tax liens and collections will usually stay on your credit report for seven years from the date of the delinquency, even if it has been paid. Having a delinquent account on your credit report can substantially lower your credit score; however, the more remote it is - the farther in the past - the less likely it is to have a large impact so long as the debt is reported as paid. An unpaid negative account will continue to lower your overall credit score.
Myth 2: Canceling your credit cards will improve your credit score.
Not true. Approximately 15 percent of your credit score is based on the length of time you’ve had credit reported. If you close a card you’ve had for a long time, leaving only newer cards open, you’re effectively shortening your credit history. Thirty percent of your credit score is based on the amount you owe in relation to your total lines of credit, so keeping a card open that has a zero balance can help you keep your total available credit high in proportion the balance you carry, which can help raise your score. Of course, the total mix of accounts is factored in there too, so having too many open cards isn’t advisable.
Myth 3: Your credit score is the same at all three credit bureaus.
Each of the three major credit bureaus, Equifax, Experian and TransUnion, generate their own scores based on the information that is reported to them. If a particular creditor only reports to Experian, then your score at Equifax and TransUnion won’t take that creditor’s information into consideration when calculating your score, resulting in a different score.
Myth 4: Routinely checking your credit report will lower your score.
Your credit score isn’t affected by inquiries that are made for marketing purposes, or that are initiated by you for the purpose of verifying the accuracy of your credit report. Additionally, while marketing inquiries are reported on your credit report, your own request for a copy of your report is not shown, nor is it reported to your creditors.
Myth 5: Shopping around for a loan can damage your credit score.
Rate shopping should not affect this factor because the inquiries will be made for a particular type of credit during a short period of time. If the same types of inquiries are made within 14 days of each other, they only count as one inquiry on your credit report, although this only applies to loans, not to credit card inquiries.
Myth 6: Paying cash helps increase your credit score.
Paying cash is a great way to stay out of debt, but it can hurt your overall credit score. Your score is determined by your credit history, which means having and using credit; paying cash for everything, unless you’re using it to pay your credit card bills in full each month, won’t show up on your credit report, nor will it help you establish a positive credit history.
Myth 7: Marrying someone who has poor credit will hurt your credit score.
Although getting married generally means that you’ll be combining finances, your credit reports won’t be combined. If you open a joint account, the credit information will show up on both reports, but your (or your spouse’s) past negative credit history won’t be reflected on the other person’s credit report unless you add your spouse to an account that has a negative history.
Myth 8: Co-signing for credit doesn’t make you responsible for the loan.
Many parents make this mistake when they help their child buy a car. If the primary loan recipient is not able to pay, the co-signer is responsible for making the loan payments—period. It doesn’t matter who has possession of the car (or other collateral), the creditor will come looking for the person who is most solvent.
Myth 9: Negotiating a settlement on a debt won’t hurt my credit score.
While it helps to have a debt marked as “paid”, you’ll need to remember that unless you pay the full amount of the debt, the creditor is within its rights to report the debt as “charged off” or “paid a negotiated amount.” You can ask the creditor to report the item as “paid as agreed” when you negotiate a settlement of the account; make sure you get that in writing though.
Myth 10: Making a late payment won’t affect my other credit accounts.
It shouldn’t, however, the universal default clause that is included in most credit card agreements allows a creditor to raise your interest rate if you make late payments on other credit accounts
QUOTE OF THE MONTH
“A successful man is one who can lay a firm foundation with the bricks others have thrown at him.”
David Brinkley, Television News Anchor
BECOMING AN EFFECTIVE LEADER
Dealing with Maverick Personalities
This article was inspired during the NBA Championship. I am not a very big sports enthusiast, but how can you live in Dallas and not be drawn into the Cowboys, Rangers, Stars, or the Mavericks, especially when they make it into the championship? This article is about mavericks—not the Dallas Mavericks. However, I plan on discussing the owner of the Dallas Mavericks who is a maverick. Let me explain.
Merriam-Webster Online defines a maverick as “an independent individual who does not go along with the group.” Mark Cuban, the current owner of the Dallas Mavericks, is definitely a maverick personality. Shortly after college, in 1982, Cuban moved to Dallas and found work with a new software dealer. He was fired for choosing to make a sales call to close a $10,000 software deal instead of sweeping the floor as his boss told him to do. After losing his job, he founded a new company, Micro Solutions, which he later sold for $6 million. He then started AudioNet which later became Broadcast.com. Cuban later sold it to Yahoo for $5.7 billion. Cuban always had a love for basketball. Once, he and some friends were watching a Mavericks game and Cuban remarked that he could do a better job of managing the team than whomever was doing it at the time. His friends then told him to put his money where his mouth is. So he purchased the Dallas Mavericks in February of 2000.
The inspiration for this article was an interview that aired on a local television station during the championship games. The sportscaster was interviewing Mark Cuban and he asked him if he would ever consider selling his team. His answer caught my attention. “If I can no longer improve the sport and the NBA as a whole, I would sell the team in a heart beat.” That statement is why I refer to Mark Cuban as a maverick personality. Cuban is not a rebel (although you might think so after hearing about the total fines of $1.6 million the NBA has imposed on him for misconduct). His actions are truly for the good of his team and the NBA as a whole.
The point is you have to make room for creative personalities that appear to be mavericks in your organization. They are the ones that will bring your organization to the next level. They will determine your future. Here are some ways to recognize the mavericks in your organization.
1) They deliver results and make a difference in their present position. Their methods may be unique to your organization but their contributions speak for themselves.
2) Although they have their own ideas, they care about the goals and the overall success of the organization.
3) They are willing to earn the right to be heard.
4) They usually display leadership skills and others will follow their lead. Their influence is producing good results.
Here are also some dos and don’ts when you have a maverick among you.
1) Do leave them alone and give them room to be creative.
2) Don’t monitor their every move.
3) Do put them in charge of something that they can really own.
4) Don’t put them on the bottom layer of small-thinking bureaucrats.
5) Do listen to them and encourage their ideas.
6) Don’t control every decision from the top.
When it comes to employees, I personally do not like thick policy manuals. Good principles, discernment, and sound judgment of character are far more important. When we become too preoccupied with policy, procedure, and conformity, we run the risk of squeezing out some of the most gifted individuals.
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