Started a Personal Finance Blog

I started a personal finance site at wealthworm.com to make some youtube videos and other things. I have just started it and will do it until it stops being fun!

Currently Reading

Last week I finally finished off the two books I have been reading for the past while. I finished Be My Guest which is Conrad Hilton's autobiography and the book I mentioned in a previous post Talent Is Overrated.

The other day I started reading Maverick by Ricardo Semler which is quite good so far.

Tracking and Decisions

Yesterday I was sharing my thoughts on tracking business success. For some reason tracking anything seems to be prerequesite to achieving high performance in an area. I think it is because it helps people to make accurate data driven decisions.

Better data equals better decisions.

Tracking Success

Around a year and a half ago I started to do online affiliate marketing. I worked hard at it but didn't see the results I was looking for with it. However, I copied some of the strategies of the people who were successful in this arena that I still use to this day. One of the strategies is to track daily progress with Excel spreadsheets. The people who made money in affiliate marketing would track everything every day to try to increase their performance by even a fraction of a percentage. If they can accumulate a fraction of a percentage this week and a fraction next week and so on, it can really add up. If I am not tracking my results closely I may not know whether my actions are producing slightly better or slightly worse results. The power of cumulative incremental profit can be enormous.

Today, I use spreadsheets in business to track my performance and hold myself accountable to certain results. If I track my data I can fish out patterns from the data which allows me to understand and run my business better. It gives me information that I can use to set attainable goals with. A side benefit of tracking information is to keep me motivated even if I am having a slow week. I can look at my points of success over the past six months and believe that I am capable of succeeding.

Cyclical Growth

I was thinking today about how a person's growth is cyclical. If you assigned numbers to a person's growth they would not always be growing at a steady rate of 5. Instead one month, or even day, they make grow at a rate of 3, the next 2, the next 6, and the next even -1. The point is that you can't expect to always be experiencing a high rate of growth. I think learning to accept the low points as well as the high makes life a lot more peaceful.

This is not to down-play the responsibility we have in creating our lives. Certainly we are responsible for our current state of affairs. It is important to realize that we don't have total control over our lives, yet we must act as if we do.

Strength Finder 2.0

I recently took this online test developed by Tom Rath. He wrote the book that goes with it as well, but the main reason to buy the book is that you get a code to take the online Strength Finder 2.0 test. The results of the test will give your top 5 strengths that you should try to work within. Tom's reasoning is that you will achieve the best results if you work within your strengths.

My top 5 Themes in order were:

Futuristic
Strategic
Maximizer
Individualization
Ideation

I was actually surprised by my results. I wouldn't have thought of myself as a futuristic thinker before but after the test I completely see that as being a major component of the way I think. Futuristic means that I think about the possibilities of the future. I have vivid visions of what could be possible for people or businesses. It also makes me enthusiastic about the future, which explains why I don't fear getting old, I actually embrace it. My belief is that I should be able to accomplish more as I get old because of increased wealth, connections, and wisdom. I expect every year to be better than the one previous.

Strategic was one I anticipated as I like to think through solutions to problems and potential effects that would come with different solutions.

Maximizers like to take things or people that are good and turn them into things or people that are great. I think this works well with the futuristic thinking because I can picture an exciting future and think of ways to convert the present into that future.

The great thing about taking this test is knowing what your strengths actually are so you can seek to further develop those areas and work within them. Also, if you are strong in certain areas you should enjoy working in them more than other areas.

Talent Is Overrated

I am currently reading Talent is Overrated by Geoff Colvin. Its tag line is "What Really Separates World-Class Performers from Everybody Else." The premise is that top performers learned to be top performers rather than being born into natural talent. Using research done on musicians, athletes, and chess players Geoff builds a case for anyone being capable of world-class performance. The catch is that you must be willing to put in the work to become a top performer by performing what he calls deliberate practice. This deliberate practice accumulates over the lifetime of the individual adding up to their total lifetime hours practiced in a particular area.

This book has helped me to understand human performance better. For example, last year I took the test Strength Finder 2.0. It stresses the importance of focusing on your strengths, which I understood to mean that you are born with and have developed your strengths. My refined view now is that my activities in life and the things I have practiced up until this point have developed certain strengths in me. I should continue to work in the areas that I have spent the most practice as it is in those areas that I will achieve the highest results.

An axiom in the business world is that you should do what you like and the money will follow. A major reason for this is that you are willing to spend many more focused hours working on something you love than something you hate. If there is something you want to do 3-5 years down the road in your life, start doing it now! Use the next 3-5 years to gain more experience in that area.