Here is your Seven-Bullet Monday
1. A quote I am pondering:
"TV is a distraction from being awesome." – James Blacker
There is not much I can add to this quote except how well it describes the inverse relationship between TV time (especially the mindless sort) and achieving meaningful things in our lives.
2. A question I am asking myself:
What can I do today to create the most time in my future?
Most of us understand that good time management is a combination of being effective and efficient with our allotted time. This question takes it a level deeper, asking what can I actually do today that will give me more time in the future. That could be many things, from better planning, investing instead of spending, learning a new skill, delegating and automating. Rory Vaden said, "Automation is to your time what compounding interest is to your money." If we explore this, I'm sure there are things we can automate that will create more time for us in the future.
3. A book I am reading:
100 Baggers: Stocks that Return 100-to-1 and How to Find Them - Christoper W Mayer
In investing terms, a 100 bagger means the price you paid for a stock increases one hundredfold over time – i.e., a $1,000 investment becomes $100,000. As investors, we would all love to find a couple of these, but that is easier said than done. This book studies several different 100 baggers over the last fifty years and provides valuable lessons on finding our own 100 baggers. You will also need a lot of patience and much fortitude because there are typically lots of ups and downs on the way and a decade or more before these stocks reach the 100-bagger status.
4. My favourite podcast this week:
How to Get Rich: Every Episode - Naval
This is quite the podcast, at 3.5 hours long. It is almost in the audible book category! I got through it in two sessions, and it was well worth it. There are so many great principles shared on the podcast, and even better, Naval has provided a transcript for future reference. I made sure to capture some notes from it to remember as much as possible to put into application somewhere down the line.
Why investing inactivity increases your compounding power
As I have explained before, holding your stocks for at least a year before selling them will result in you paying capital gains tax on any profits instead of income tax. This is smart because the capital gains tax rate is typically half the marginal income tax rate. There is, however, an even better way to lower your tax, and that is not selling at all. By not selling, you allow the share price to run further, giving you greater compounding ability. In essence, you are deferring the tax payment, that comes with selling, and allowing it to compound for your benefit for years to come before you actually pay the tax. On the other hand, selling sooner means you have to pay the capital gains tax or, worse, the income tax now, and you then land up losing the chance to compound that money for the years ahead.
6. My highlight this last week
Launching Making Money Work 2022 with 15 students at Tumbler Ridge Secondary School
I kicked off the second Making Money Work training for students at Tumbler Ridge Secondary School this week and was delighted to have 15 students sign up. This is due primarily to two students from last year's class advertising the course and encouraging their classmates and other students to sign up. It was so rewarding to see such enthusiasm and eagerness on the part of the students in the first session. I can't wait to get into the training and see them all learn and grow along the way.
7. My challenge to you for this week
Learn something brand new
Alright, why don't you spend 15 minutes learning something brand new this week? Discovering new areas of previously unexplored knowledge is excellent for your brain, so here are few ideas for something new to learn:
· a few phrases in a different language;
· the facts and figures of a different country;
· a new music genre (how about classical music?);
· a completely different industry or job from your own;
· an unfamiliar sport.
Or, you could learn about anything else you wish, as long as it is brand new and you haven't done it before.
Have a great week