Comments on: To Succeed Financially, You Must Know Yourself http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 23:42:26 -0330 http://wordpress.org/?v=abc hourly 1 By: WittyArtist http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-120395 WittyArtist Tue, 24 May 2011 11:10:58 +0000 http://www.milliondollarjourney.com/?p=1251#comment-120395 I have no problem working for others as long as I like what I have to do and put passion in it. As for financial peace of mind I like to have some saving funds. I believe passion is important when we want to make money. I've also written similar issues on this theme on my blog if you want to read. :) I have no problem working for others as long as I like what I have to do and put passion in it. As for financial peace of mind I like to have some saving funds. I believe passion is important when we want to make money. I’ve also written similar issues on this theme on my blog if you want to read. :)

]]> By: zud http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111474 zud Wed, 10 Mar 2010 17:33:22 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111474 i think i'm still in the process of getting to know myself. i used to be salaried but now i'm a contractor. i can pick and choose work and the amount of work available is much more than i can do in normal waking hours. given this opportunity to work work work and rake in the huge income, i find myself working less hours than a normal workweek. i have learned that money is not a motivator for me, i work enough to cover my basic expenses plus some savings then its painfully hard for me to continue working. my financial success is that i feel stable, not wealthy whereas before i always thought i wanted to be wealthy if only i had that high paying job or opportunity to make alot of money. faced with that opportunity i'm not even taking it. if you could make the same, assuming good, income working 20 hours a week, would you work an additional 20 for the extra? i think i’m still in the process of getting to know myself. i used to be salaried but now i’m a contractor. i can pick and choose work and the amount of work available is much more than i can do in normal waking hours. given this opportunity to work work work and rake in the huge income, i find myself working less hours than a normal workweek.

i have learned that money is not a motivator for me, i work enough to cover my basic expenses plus some savings then its painfully hard for me to continue working. my financial success is that i feel stable, not wealthy whereas before i always thought i wanted to be wealthy if only i had that high paying job or opportunity to make alot of money. faced with that opportunity i’m not even taking it.

if you could make the same, assuming good, income working 20 hours a week, would you work an additional 20 for the extra?

]]> By: Ed Rempel http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111410 Ed Rempel Mon, 08 Mar 2010 05:13:43 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111410 Hi Kathryn, Have you found that knowing yourself is more of a continuous journey? New experiences keep teaching you more about yourself and that you change with time. Or do you think that at one point you mainly know yourself? Ed Hi Kathryn,

Have you found that knowing yourself is more of a continuous journey? New experiences keep teaching you more about yourself and that you change with time. Or do you think that at one point you mainly know yourself?

Ed

]]> By: Kathryn http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111402 Kathryn Sun, 07 Mar 2010 16:09:38 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111402 It's a good question - how long does it take to really know yourself? For some it happens more quickly than others. For me it took until my mid 30s to really understand who I was and what I wanted out of life. It’s a good question – how long does it take to really know yourself? For some it happens more quickly than others. For me it took until my mid 30s to really understand who I was and what I wanted out of life.

]]> By: Financial Cents http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111387 Financial Cents Sat, 06 Mar 2010 13:47:47 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111387 Couldn't agree more Sarlock. I just need to find something I'm passionate about and start my own business, instead of working for the man. Couldn’t agree more Sarlock. I just need to find something I’m passionate about and start my own business, instead of working for the man.

]]> By: AnalystAnalyzer http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111385 AnalystAnalyzer Sat, 06 Mar 2010 03:15:12 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111385 I wonder how long it takes to really know yourself. I certainly would not be confident about how I know myself without trying a bit of everything. I wonder how long it takes to really know yourself. I certainly would not be confident about how I know myself without trying a bit of everything.

]]> By: Sarlock http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111342 Sarlock Wed, 03 Mar 2010 21:30:27 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111342 If an audit came my way, all they'd find is a set of meticulously kept accounting records with all the i's dotted and t's crossed. I, and other smart business owners, know what you can and can't flow through and keep it all squeaky clean. I know entrepreneurship isn't for everyone... it is just really unfair that those who run a corporation have so many advantages against someone who works for a paycheque. Two people who work just as hard, earn the same money and save in a similar fashion, one running a company and one working for a paycheque, should be expected to reach retirement with the same amount of money saved... but the system is structured in such a way that the company owner will be typically much farther ahead financially just because of the opportunities to shelter from taxes. If an audit came my way, all they’d find is a set of meticulously kept accounting records with all the i’s dotted and t’s crossed. I, and other smart business owners, know what you can and can’t flow through and keep it all squeaky clean.
I know entrepreneurship isn’t for everyone… it is just really unfair that those who run a corporation have so many advantages against someone who works for a paycheque. Two people who work just as hard, earn the same money and save in a similar fashion, one running a company and one working for a paycheque, should be expected to reach retirement with the same amount of money saved… but the system is structured in such a way that the company owner will be typically much farther ahead financially just because of the opportunities to shelter from taxes.

]]> By: fastmoney http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111340 fastmoney Wed, 03 Mar 2010 19:04:41 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111340 Having a business/corporation offers much more tax advantages to an individual versus not having one. Sure, there are people who try to find ways to manipulate the system to their advantage. But as long as Sarlock's expenses are legitimate he has nothing to worry about from the CRA. As everyone here is aware, there is a fine line between tax avoidance and tax evasion. Having a business/corporation offers much more tax advantages to an individual versus not having one. Sure, there are people who try to find ways to manipulate the system to their advantage. But as long as Sarlock’s expenses are legitimate he has nothing to worry about from the CRA. As everyone here is aware, there is a fine line between tax avoidance and tax evasion.

]]> By: Ms Save Money http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111337 Ms Save Money Wed, 03 Mar 2010 18:07:34 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111337 As long as your a skilled - it doesn't matter whether you're an entrepreneur, doctor, lawyer - you just really need to be happy with what you're doing and believe in what you're doing and know that there is a need for what you're doing you'll be successful. As long as your a skilled – it doesn’t matter whether you’re an entrepreneur, doctor, lawyer – you just really need to be happy with what you’re doing and believe in what you’re doing and know that there is a need for what you’re doing you’ll be successful.

]]> By: Brendan http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111331 Brendan Wed, 03 Mar 2010 16:29:56 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111331 Sarlock your plan is fine until CRA decides to audit you. And I hope they do audit you and your friends who cheat the system. Sarlock your plan is fine until CRA decides to audit you.
And I hope they do audit you and your friends who cheat the system.

]]> By: Matt @ Dividend Monk http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111319 Matt @ Dividend Monk Wed, 03 Mar 2010 00:27:05 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111319 True. Everyone has different strengths. People can become quite wealthy by working for someone else as long as they are really good with the money that they receive. I remember reading about a woman who worked as a secretary, but invested much of what she made into the company she worked for, retired early and let her money sit and grow, and when she died, her will gave millions of dollars to the school she went to. True. Everyone has different strengths. People can become quite wealthy by working for someone else as long as they are really good with the money that they receive. I remember reading about a woman who worked as a secretary, but invested much of what she made into the company she worked for, retired early and let her money sit and grow, and when she died, her will gave millions of dollars to the school she went to.

]]> By: Monevator http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111317 Monevator Tue, 02 Mar 2010 22:47:53 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111317 I agree with Kathryn - many people aren't cut out to be entrepreneurs. And not because they aren't smart or capable or responsible or even risk takers, but because of some other trait that turns out to be important that they didn't realize they never had. If I had to pick one thing often overlooked, it's people skills. Besides being vital in start ups, if you're good with people you can find a close partner to do the other things you're not good with. In contrast an entrepreneur without people skills has to be able to do everything - and have thick skin! I agree with Kathryn – many people aren’t cut out to be entrepreneurs.

And not because they aren’t smart or capable or responsible or even risk takers, but because of some other trait that turns out to be important that they didn’t realize they never had.

If I had to pick one thing often overlooked, it’s people skills. Besides being vital in start ups, if you’re good with people you can find a close partner to do the other things you’re not good with.

In contrast an entrepreneur without people skills has to be able to do everything – and have thick skin!

]]> By: Kathryn http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111316 Kathryn Tue, 02 Mar 2010 21:34:54 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111316 I agree that being an entrepreneur is one of the best ways to become financially successful. What I think some people need to recognize is that not everyone is cut out to be an entrepreneur. They may do more damage than good if they aren't very good at it or if they start a business for the wrong reasons (to make money rather than to create a product they believe in). I agree that being an entrepreneur is one of the best ways to become financially successful. What I think some people need to recognize is that not everyone is cut out to be an entrepreneur. They may do more damage than good if they aren’t very good at it or if they start a business for the wrong reasons (to make money rather than to create a product they believe in).

]]> By: Sarlock http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111315 Sarlock Tue, 02 Mar 2010 21:07:45 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111315 Most of the wealthy people I know run or have run their own business and it's for a reason: the corporate structure gives you so many more opportunities to get ahead than working for someone else. You can earn money corporately, pay your 15% or so small business tax and keep it in the business and turn it in to future profits - the only money you take out personally is that money you need for living day to day. It's like having a limitless RRSP available (and the capital gain you make if you later sell the business is tax free up to a large figure too!!). Compare that to paying 30-40% for personal tax and then investing it from there. You can also hide a lot of personal expenses in to a corporation, especially a larger one where it gets buried under a ton of legit expenses. These two components alone ensure that if you compare two individuals who have the same T4, same return on investment, the person with the corporation will have 2 or 3 times the net worth of the other person after 10 years or so. It's extremely unfair, but that is how the system is structured. Take the HST for example... it comes in to effect in a few months and those people who have corporations are actually excited about it. Why? Because all of those personal items that they flow through the corporation will suddenly become 7% cheaper because the PST will be a flow through credit to the corporation instead of an expense. Suddenly there's an additional 14% income gap between those who are paying for everything personally and those who have a corporation to hide under. If you can flip $20,000 per year through your corporation instead of personally, that's an extra $2,800 in your pocket. Most of the wealthy people I know run or have run their own business and it’s for a reason: the corporate structure gives you so many more opportunities to get ahead than working for someone else. You can earn money corporately, pay your 15% or so small business tax and keep it in the business and turn it in to future profits – the only money you take out personally is that money you need for living day to day. It’s like having a limitless RRSP available (and the capital gain you make if you later sell the business is tax free up to a large figure too!!). Compare that to paying 30-40% for personal tax and then investing it from there. You can also hide a lot of personal expenses in to a corporation, especially a larger one where it gets buried under a ton of legit expenses. These two components alone ensure that if you compare two individuals who have the same T4, same return on investment, the person with the corporation will have 2 or 3 times the net worth of the other person after 10 years or so. It’s extremely unfair, but that is how the system is structured.
Take the HST for example… it comes in to effect in a few months and those people who have corporations are actually excited about it. Why? Because all of those personal items that they flow through the corporation will suddenly become 7% cheaper because the PST will be a flow through credit to the corporation instead of an expense. Suddenly there’s an additional 14% income gap between those who are paying for everything personally and those who have a corporation to hide under. If you can flip $20,000 per year through your corporation instead of personally, that’s an extra $2,800 in your pocket.

]]> By: ctreit http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111314 ctreit Tue, 02 Mar 2010 21:01:25 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111314 I really enjoyed reading this post. Most of the times we focus on the "finance" part of "personal finance", when "personal" is just as important if not even more important than finance. The old adage applies, "Different strokes for different folks." I really enjoyed reading this post. Most of the times we focus on the “finance” part of “personal finance”, when “personal” is just as important if not even more important than finance. The old adage applies, “Different strokes for different folks.”

]]> By: ldk http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111310 ldk Tue, 02 Mar 2010 15:25:07 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111310 Great post, Kathryn! I think to succeed period (at marriage, parenting, finances, whatever) the first and most important step is 'knowing yourself'...after that it's all just details! Cheers~ Great post, Kathryn! I think to succeed period (at marriage, parenting, finances, whatever) the first and most important step is ‘knowing yourself’…after that it’s all just details!

Cheers~

]]> By: Bruce http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111309 Bruce Tue, 02 Mar 2010 15:12:47 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111309 I prefer to work for myself and cooperate with other people. I like the 50% equity & 50% load investment. If you are 100% debt free, It`s a low risk portfolio, however , if your cash flow is good, it can not make big money in the long term. I prefer to work for myself and cooperate with other people. I like the 50% equity & 50% load investment. If you are 100% debt free, It`s a low risk portfolio, however , if your cash flow is good, it can not make big money in the long term.

]]> By: Mike 4P http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111308 Mike 4P Tue, 02 Mar 2010 14:45:18 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111308 I used to be pretty frustrated with my job because I was working really hard and putting lots of hours in, but it didn't appear that I was getting rewarded for that extra effort compared to people who just did their "fair day of work". Eventually, I clued in that if I just do the 9-5, I make the same money and I could enjoy more of a life outside work. Since then I've enjoyed my job a lot more because it is just "there", it still pays well and I have a fair bit of time in the evenings and weekends to do whatever I want to do (or whatever the kids want to do). As far as entreprenurial stuff - I love running my business (which is mainly 4P). I would argue by the fact that you are doing some freelancing that you are a bit of an entrepreneur as well. I used to be pretty frustrated with my job because I was working really hard and putting lots of hours in, but it didn’t appear that I was getting rewarded for that extra effort compared to people who just did their “fair day of work”.

Eventually, I clued in that if I just do the 9-5, I make the same money and I could enjoy more of a life outside work. Since then I’ve enjoyed my job a lot more because it is just “there”, it still pays well and I have a fair bit of time in the evenings and weekends to do whatever I want to do (or whatever the kids want to do).

As far as entreprenurial stuff – I love running my business (which is mainly 4P). I would argue by the fact that you are doing some freelancing that you are a bit of an entrepreneur as well.

]]> By: tom http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111306 tom Tue, 02 Mar 2010 14:09:20 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111306 Kathryn, You hit the nail on the head in all your points on this article. It's nice to read an article on 'wealth management' that wasn't pumping the latest and greatest technique to loop-holing your way to becoming rich. I have enjoyed reading your previous articles and this one finally made me comment as it makes so much sense. I talk to people all the time that are obviously not in a position to take on much risk, but are looking for the 'get rich solution' that involves tonnes of risk. I will be forwarding this article to many of them... My wife and I have very similar thoughts on life and money management as you and we have discussed many of your articles in the past. Thanks and keep up the good writing! Tom Kathryn,

You hit the nail on the head in all your points on this article. It’s nice to read an article on ‘wealth management’ that wasn’t pumping the latest and greatest technique to loop-holing your way to becoming rich.

I have enjoyed reading your previous articles and this one finally made me comment as it makes so much sense. I talk to people all the time that are obviously not in a position to take on much risk, but are looking for the ‘get rich solution’ that involves tonnes of risk.

I will be forwarding this article to many of them…

My wife and I have very similar thoughts on life and money management as you and we have discussed many of your articles in the past. Thanks and keep up the good writing!

Tom

]]> By: cash back credit cards http://www.milliondollarjourney.com/to-succeed-financially-you-must-know-yourself.htm/comment-page-1#comment-111305 cash back credit cards Tue, 02 Mar 2010 12:40:46 +0000 http://www.milliondollarjourney.com/?p=1251#comment-111305 These are some great questions to really be thinking about, and really be searching deep within yourself to see what your truly passionate living for and about. Thanks for opening up and sharing like this. These are some great questions to really be thinking about, and really be searching deep within yourself to see what your truly passionate living for and about. Thanks for opening up and sharing like this.

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