What you spend on is more important than frugality.

When it comes to the blogs and other tracts providing information on building wealth, frugality carries most of the weight. And it makes sense. The greater the difference of income over spending is a strong determinant of the level of wealth an individual will achieve during their lifetime as compared to their income level. 

As important as frugality is, spending is even more important, even if it doesn’t garner the column inches the matter deserves. Spending less than you earn is the seed money for investments and without investments it is impossible to build significant wealth.

As an accountant I see people from all spectrums of income. Frugality, even hyper-frugality, is the hallmark of those with modest levels of wealth. Even the lowest income earners can amass a half million or more in a working career when frugality is taken to religious levels, with the excess invested in equities like index funds.

Mid-levels of income also do well with only the single tool of frugality. As their wealth grows they sometimes seek out professionals to help them. These clients tend to want short consulting sessions once a year with a review at tax time. 

Then come the serious achievers. These people sometimes have modest incomes, sometimes large incomes.  Regardless their income level, these people smack it out of the park. Their level of wealth is well beyond what would be expected for their income level or level of frugality (the excess of income above spending).

Super-achievers in wealth building focus on spending rather than frugality. They know spending is more important. And they know most spending drains their energy and wealth while proper spending can actually make them richer!

They also know that wealth is fleeting. The highway is littered with the corpses of wealthy people of yesteryear. A lifetime of building wealth can be lost in less time than it takes to snap your fingers. That is today’s topic. Wealthy people that keep it long enough to leave a legacy spend on the 5 things listed below in a disproportionate amount compared to the general population. As you flex your frugality muscles you want to consider spending some of that excess on these things to grow and preserve your wealth. Because, remember, when you have money there are always those looking to separate you from it.

Millionaires and Health

How wealthy can you really be if you are chronically sick? In pain? Or dead! 

If you have your health you are already wealthy and rich people know it and take steps to keep it that way. Eating quality food and exercise are primary. Proper medical care also plays a key role.

I see poor people and those looking to super-charge their frugality, to achieve goals like early retirement, refuse to pay for quality food or a gym membership or a piece of exercise equipment. It is counter-productive behavior.

I have a membership at Lake Park Swim & Fitness. Mrs. Accountant attends two or three exercise groups per week and I hit the floor (where the weights are) three times per week. This is a part of our routine! Physical activity is a priority in our life. Mrs. Accountant loves it so much she took a part-time job their working two nights per week cleaning up a bit (and for a free membership).

Outside the gym I also remain active. I walk an hour each day and sometimes jog. My sneakers see at least 3 miles of travel daily above and beyond normal movements (walking to the water cooler, et cetera). I chop wood on my farm, plant trees and work the garden. I recently bought a step meter to see how I’m doing. Rare is the day with fewer than 10,000 steps and many days are well above 20,000. Mrs. Accountant has similar numbers.

Lake Park isn’t the cheapest gym, but they also are not the cheapest gym. (Yes, you read that right.) It is the cleanest gym (and friendliest) gym I’ve ever been a member of.  I want a clean environment and working equipment. My workouts are serious business and I want a gym that feels the same way.

Food is another important expenditure for the wealthy. I grow much of my own food, but nutritious food can be had from the grocery store and it doesn’t require the “organic” label. Processed foods are limited in my household. Fresh fruits and vegetables are a common sight. We freeze and can lots of homegrown produce. Home prepared meals are the best so we do it a lot.

Health includes medical services. I see many poor people (and even some earning a reasonable wage) foregoing medical care and recommended treatments. Modern technology has given us the longest lifespan in human history, but it does no good if you don’t use the technology. 

Reasonable medical insurance to deal with a big medical issues is a must in the U.S where there is limited national healthcare for people under age 65. Regular checkups and taking required medications are all part of the program. Wealthy people know it is easier to stay healthy than to regain health. And as a reminder, without health, financial wealth has far less meaning.

 

Millionaires and Legal

Most people know they need to take care of their health. Fewer understand the importance of legal protection.

What takes a lifetime to build can be sued away in a fraction of a moment. Wealthy people know it, too. Keeping wealth already accumulated is vital to keeping wealth all the way to the finish line. 

It blows this accountant’s mind when people set up their own business entity. They have no experience (in most cases) in how to do this correctly, but they do it anyway. These hard working people put in the hours for years and even decades. Yet, their first step is to take a shortcut, the cheaper way. (Notice I said cheaper, not frugal. Frugal doesn’t take shortcuts; cheapskates do.) 

The same applies to wills and other legal documents. Of course, if you do it wrong you will not be around to clean up the mess; your friends and family will. (Nice memory you left the kids.) 

In all my 37 years in practice I’ve never seen a truly wealthy person take legal shortcuts. I have seen many people lose a lifetime of work, sometimes while in retirement, over  not using a qualified professional to handle their legal needs. 

I keep a law firm on speed dial for legal questions and other legal services. They have my retainer. When in doubt I go to the professionals to help me make quality decisions. I understand tax laws well (and still rely on other tax professionals for research all the time), but legal matters not so much. Attorneys sometimes have a bad reputation. It should not be that way. My legal team is a vital part of my financial plan. Their advice is always welcome. Attorneys can save you a massive amount of money and grief when planning ahead, or, they can cost even more trying to fix a mess that might end up with a settlement costing you decades of your invested savings (work or lifeforce, as some say).

 

Millionaires and Tax and Accounting

I’ll admit this part is self-serving. It is also a vital part of wealth creation and retention. 

When you add up all the taxes you pay (income, property, excise, gift, sales and more) it is the biggest single expense in your life. Even your home doesn’t cost as much as all taxes combined are pealing from your wallet. Even a modest income can see half or more lost to the litany of taxes the government has devised to separate you from your hard-earned money.

In my office the tax professionals sometimes laugh when people say they prepare their own tax return. “We always enjoy summer work,” is their response. There is some truth to that.

Frugality is not enough if you want to be wealthy. How you spend and what you spend on will make the difference in how wealthy you become. If you want to be a millionaire you need to spend like a millionaire. That means frugality one one hand and intelligent spending that serves your needs on the other.But it gets worse. To this day I have never had a consulting session with a client or someone from this blog where I didn’t save that client several times in taxes what they paid me. There have been cases where a $1,000 consulting fee yielded 6-figures in additional wealth, much of it from tax savings. 

I have no problem with people preparing their own return when it is very simple. However, a tax professional is worth her weight in gold if she works with you! Rare is the non tax professional that knows when it is best to elect to treat their side hustle or business as an S-corp over a sole proprietorship. If you own income properties do you understand the mechanics of a cost-segregation study? If you own any investments are you aware of tools to defer and eliminate taxes on the profits? Like-kind exchanges? Opportunity funds? Delaware Statutory Trusts?

Even something as simple as  professional bookkeeping can send your net worth skyward faster. One of my accountants just helped an investment property owner from Mississippi clean up his books. Now he knows where he is financially at all times. He can make better decisions; I can give him better advice. Banks loans are easier to get and rates lower. He really has professional looking books! (It would be bragging if I did the work, but Dawn gets all the credit.)

His taxes are also lower because I can help him plan instead of react. He refers to us as his OCD accountant. Yes, we take pride in our work and pay attention to detail. It is never enough to have clean books. We demand we provide guidance to optimize wealth building for every client we serve. 

It doesn’t come cheap, of course. But I deliver greater results because I am incentivized to do so and invest in growing my arsenal to better serve clients. The cheapest isn’t always that cheap.

The income property owner discussed above had several accounting firms who could not get his fast growing rental business under control. Dawn even struggled in the beginning. There was, and is, a lot to digest. I kept applying steady, yet firm, pressure. While the client benefited, I was training an accountant on how to handle the difficult cases. Now that the books are clean it isn’t so challenging anymore.

And this brings up another important point. Not every tax and/or accounting professional is cut from the same cloth. Some are better than others and some are outright incompetent. In a previous post I discuss how you can find high quality tax professionals and accountants for your wealth building team. The same applies when looking for a legal professional.

With so much on the line it is worth hiring a competent tax professional. If your return is simple you can prepare it yourself. I have many consulting sessions with people who prepare their own tax return. I review the prior return as part of the consulting session and it is usually okay.

Tax and accounting  professionals are worth their most when consulting. Their large reservoir of knowledge and experience can help you make better career and investment choices. It is difficult at best to build serious wealth without a highly qualified tax professional.

 

Millionaires and Education

Primary and secondary schooling, along with a college, is designed to teach you how to learn. Until you learn how to learn nothing else will matter. Yes, college will educate you on the basics in your field of study, but it is just the basics, as hard as those final exams were.

The most powerful tool the millionaires has to create and build wealth is never-ending education. Learning never ends for the wealthy.Nothing prepares you for real world. College textbooks have nice neat questions with exact answers. Real life rarely delivers such a neat package. Thinking on your feet and designing answers on the go is vital to success. That is why doctors spend so much time in college and even more time sharpening their skills as interns and in residency.

Once you learn how to learn the world is at your beck and call. What you learn in college can quickly become dated. Your “real” education begins after graduation!  

Many professions require continuing education (CE). Doctors, attorneys, accountants and enrolled agents (a tax professional designation) all are required to take continuing education courses each year. And for good reason. Bad habits can set in and CE can bring behavior back in line. New technologies and changing laws all require more learning, more education.

Application is harder than theory. I see tax professionals and accountants come out of college and struggle when they move from the legal facts to applying those facts in real world situations. Clients don’t always bring in all their paperwork. Some (all too many) are trying to game the system. Your job is to keep clients in line (they didn’t teach you that in college, did they?) and use the material at hand to build the most accurate record.

Doctors face a rude awakening when the classroom makes way for the medical theater. Answers are not always easy to define or find and time is of the essence. It’s an open book test with a human life on the line and the clock speeding forward.

You don’t have to be in a profession to benefit from education. In all facets of my life I have continued learning. Reading is a daily part of life (a big part of life). Every day is a learning experience! Even after all these years of study and thousands of books digested, I still feel like a neophyte most of the time. The more you learn the more you realize there is to learn. It is humbling.

Learning is one of the great pleasures in life, too. Wealthy people find this compelling. They spend a disproportionate amount of their income and wealth on education at all times of their life and enjoy the process. The wonder of discovery never grows old. 

Spending on education is a guilty pleasure wealthy people never skimp on. My personal library has pushed past 3,000 volumes and I make prodigious use of several local libraries as well. I am a sponge for knowledge and people pay me a lot of money to see how I put the pieces together as it applies to them. And there is nothing more pleasurable and fun than that.

 

Millionaires and Insurance

This expenditure of the wealthy might come as a surprise to many. That is because you need to sift the junk insurance from the stuff that matters when it come to building and retaining wealth.

To start, we are not talking about the insurance you purchase for small electronics at retail outlets. If you can’t afford to fix or replace an $86 item you can’t afford the item. This is junk insurance and wealthy people don’t buy it. Besides, most credit cards provide similar insurance for free just for charging the item on their card.

Wealthy people strategically target their insurance spending. It has to protect wealthy adequately or build wealth.

Large assets require coverage. Homeowners should have adequate insurance to protect against large losses. Wealthy people frequently have high deductibles, however. Small losses are easily handler out-of-pocket and insuring for small losses is always a losing game.

Home and auto insurance are more than just protecting the asset’s value. Many wealthy people don’t have collision on their vehicle or have a high deductible. That is because a damaged car is a mild inconvenience when it comes to building serious wealth. 

Lawsuits, on the other hand, are a different story. A minor fender-bender might set you back a few thousand; the lawsuit several hundred thousand and a boatload of time, anxiety and stress.

Wealthy people almost always enhance their insurance with an umbrella policy, extending liability coverage beyond the original policy limits. Damage to property almost always  is a minor issue when it comes to wealth, but a lawsuit can eliminate all vestiges wealth ever existed in your portfolio. And, as already mentioned, it can happen faster than the snap of the fingers.

Other insurances wealthy people use fund legacy planning and business protection. Protecting a business protects the income stream, an important consideration for the wealthy and those soon to be. Legacy planning frequently includes insurance to deal with tax issues, fund charities of choice and provide long-term for family after our wealthy friend departs this realm. You would be surprised how much income can be generated with a proper insurance policy and it isn’t the insurance policy providing the income, only the protection and/or framework to provide such additional income.

Non-wealthy people fight this expenditure the most. I even saw a popular blogger a few years back claim he forewent homeowner’s insurance. I can only imagine the risk and damage readers taking his advice faced. (The real value of homeowner’s insurance in the liability protection, not the casualty coverage, by the way.)

Wealthy people buy insurance that protects against serious losses to wealth while poor people insure items on Amazon with a sticker price under $100. That one simple fact tells a very large story.

The right insurance is important. The insurance agent might not be the right place to go to find out the best values in insurance (insurance agents don’t always understand legal and tax issues). That is why we consult with educated attorneys and tax/accounting professionals. Your accountant and attorney are a vital part of your plan to build and retain wealth, and frequently have a fundamental understanding of all the wealth issues involved, including insurance.

 

Coda

There are other things wealthy people spend on too. The 5 above are areas wealthy people generally do not skimp on. Too much is at stake if they do.

Thinking like a wealthy person is the first step in building wealth. Keep yourself as healthy as possible, adequately protect yourself with qualified legal professionals, also hire qualified people in the tax and accounting field, never stop learning and protect your current and future assets with proper insurance.

You might have other priorities. Many wealthy people travel more than I do, but it isn’t required. Some buy more home than I would feel comfortable living in. To each their own, I say. But the 5 categories above are where all wealthy people focus their spending if they plan on keeping it. That might be a hint you should, too. 

Engage frugality and put the excess monies to work. Learning to save and spend properly is the only way to reach financial goals; to reach true levels of significant wealth.

 

More Wealth Building Resources

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Reading is the foundation of every form of wealth: mental, spiritual and financial. There is even an argument to be made that reading good books is good for you physically, as you can learn to eat better and exercise more productively. 

Books are the cornerstone of knowledge. The more you immerse yourself in quality material, the better decisions you can make. 

Focusing on only recently published books is a mistake. Avoiding novels is also an error. A well rounded education comes from digesting material from all genres, even topics you normally don’t read. Even fiction can teach us plenty about the world around us and ourselves.

I read about a book per week. Some books are doorstops and require more dedication while there are times I polish off several shorter books in a week. The goal is never volume (pun intended). I never set out with a reading goal for a number of pages or books read in a certain time frame. The goal is to absorb as much knowledge as possible from the text. Some books read fast while others slow to a glacial crawl. If it takes longer, so be it. As long as I acquired the information and it sticks.

Without intention, my reading habits were unique this past year. I read some recently published material and plenty of older stuff. Novels played a bigger role than at any time in over two decades. Even a few self-published books made the cut.

I re-read a few books this year, too; some is part, some in entirety. Some of the Stoics come to mind. Re-reading a good book is something more people need to do. As with good movies, you pick up more with each reading. 

Before I share the 3 best books I read in the past year, let me point out this isn’t an exact time frame. I don’t mark a place on my bookshelf to delineate the changing of the calendar. Books I borrowed from the library are not included on my list because I can’t pull them up or easily quote from them. I have a bias toward my personal library.

Be aware the links in this post are affiliate in nature. That means I get paid a small fee if you use the link/s to buy the book.

 

Business and Investing Book of the Year

It might surprise you that I don’t spend all day reading investing and business books. Sure, I read plenty of business reports and financial statements; and most classics of the genre have been consumed and re-consumed. Only a few published each year are worthy of my time.

Many bloggers in the personal finance field have been self-publishing books. I’m unconvinced my time is well spent reading how a young person either dug themselves out of debt or retired at an early age. Without any personal debt there is nothing to resonate in the debt books. And since owning my own business is something I want to spend the rest of my life doing, retirement of any kind is a foreign concept to me. (I might slow down just a bit as age takes its toll.)

The best books of the genre tell personal and non-personal stories. This is where Business Adventures by John Brooks comes in and is our pick for this category. Brooks shares the tales of twelve intense situations on Wall Street. The stories are older, but the lessons are as valuable today as ever. Rather than a how-to book, Brooks allows us to learn from example.

While I may not “officially” read a personal finance book, I spend plenty of time reviewing personal finance books consumed in the past. The list would easily break 100 if I started dropping names. One book does stand out, however. My friend, Jim Collins, published The Simple Path to Wealth several years ago. As far as I’m concerned. this is the most modern classic of the genre. I page through the book for a short read constantly. You would do well to have a copy next to your reading chair. I keep a copy at home and the office. Yes, it is that good.

 

Novel of the Year

There was a time when I read over 100 novels per year. Science fiction topped the list, but anything was game. I’m a sucker for a good story.

SevenEves would have been the winner were it not for a strong showing by A Gentleman in MoscowSevenEves is a powerful science fiction novel mixing story with scientific facts. I enjoy science fiction stories that twist stories around realism. If it is possible, even if improbable, it makes for an engaging story.

But the nod goes to A Gentleman in Moscow. I finished this novel as year came to a close. The classic Russian novels have always intrigued me which is what attracted me to this novel. Gentleman is in the style of the Russian classics. 

A Gentleman in Moscow starts in 1922, at the dawn of the Communist Revolution, and ends in 1954. Count Alexander Ilyich Rostov is sentenced to house arrest in the Metropol Hotel for life for writing a poem years earlier, before the Revolution. We later learn he didn’t even write the poem.

Rostov befriends staff and guests at the Metropol as he settles into his life of house arrest. His vantage point is unique as he watches the horrors of the 20th Century unfold. And then he meets a 9-year-old girl that changes his life. 

Gentleman is a novel about living life on your own terms. The history is impeccable, adding to your reading pleasure. You will learn a lot about yourself reading this novel, just like the classic Russian novels. The bittersweet humor brings the story to life. It’s almost as if you are there, desiring a life encapsulated within the Metropol as the world unfolds around you.

Whether you read fiction or not, you need to read A Gentleman in Moscow. It’s that good. . .  and important.

 

General Non-Fiction Book of the Year

The list of good non-fiction is extensive, necessitating an Honorable Mentions List to follow. How do you choose between Factfulness by Hans Rosling, Enlightenment Now by Steven Pinker, Thinking, Fast and Slow by Daniel Kahneman and Empty Planet by Darrell Bricker and John Ibbitson? It comes down to personal bias.

Thinking, Fast and Slow is kind of like a business or investing book so it appealed to me most. The list in the prior paragraph are also must-read books, along with the selections in the Honorable Mentions List to follow.

Thinking is useful in every facet of life: business and personal. Learning how and why you think the way you do helps reduce error. Fast thinking is a reflex. It’s easy, but sometimes wrong. Slow thinking, the kind that requires energy to think things through, takes effort to engage due to the work involved. Knowing when our fast thinking is wrong and when to force ourselves to think slowly is vital to achieving goals.

At Camp Accountant this year I used examples from Thinking to illustrate errors we make when investing in retirement accounts. It isn’t always as intuitive as you would think. I also published two posts this year using the information from this book: here and here.

President Obama’s 2019 Reading List

Honorable Mentions

Why only “3” best books of the year? Everyone else uses a longer list. Ten is a common number with a few going much longer. President Obama listed 38 books for 2019. I suspect that is every, or nearly every, book he read last year. 

Long lists need to be honed down to a manageable size. Not every book read is worthy of recommendation. I read a few clunkers last year that will not be sharing here. Even a few good books that just didn’t fit in right for this post were edited out. 

There is a logical reason for a shorter list. When you give long lists people tend to skim the list and move on without reading a single book. A shorter list takes away most of the decision and the odds go up exponentially you will read one or more of the three books. If this post has any value, it must get you to take action. And for the avid readers, the Honorable Mentions gives you plenty additional to chew on.

Factfulness and Enlightenment Now remind us the world is better than it has ever been and getting better. Both authors provide proof. 

Empty Planet informs us the demographic bust is coming with plenty of evidence human population will fall later in the 21st Century. Climate change isn’t mentioned in Empty Planet, but with fewer people and increased technology, greenhouse gas emissions will be coming down regardless what governments do or Greta says

I love Ryan Holiday’s work. Stillness is the Key is must-read material.

Vaclav Smil’s Energy and Civilization is also required reading. The history of energy utilization and prime movers is a fascinating story, dispelling the myths surrounding energy, consumption and pollution.

The classic, Lord of the Flies, entertained, as it has for over 60 years. Still, I had to give the nod to A Gentleman in Moscow.

I end with an extra special Honorable Mention, Maps of Meaning: The Architecture of Belief, by Jordan B. Peterson. The difficulty level of this book made me step back. Maps of Meaning may be the most difficult book I ever read. And important! 

Maps of Meaning looks at how we develop our beliefs and how they shape us. Archetypal stories help us define the world around us, offer a framework to culture and a map to living a meaningful life. Reading this book took a lot of time. Sometimes a sentence or paragraph would force me to put the book down for an hour to think about what I just read. If you enjoy deep thinking, you want to invest in Maps of Meaning.

 

Now it’s your turn. Share books you found valuable or important this past year in the comment section below so readers, and a certain unnamed accountant, can enjoy those books, too.

Happy reading!

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

How to give a powerful speech or presentation. Move the crowd. Create engagement and interest. Get more sales. Turn your speaking gig into profits. #speech #sales #motivation #engagement #presentation #speaking #publicspeaking #profitLast Monday I attended a one day seminar on Reading Financial Statements. While I am not a CPA, I am an enrolled agent (tax professional). Working in business my entire adult life in the tax field means I have a working knowledge of financial statements. I also took accounting, business and economics courses in college.

Having a strong background does not always mean you are good at it. Sometimes we fall into bad habits or forget some of the more esoteric details of the craft. My hope was to learn at least one new insight into reviewing financial statements that would give me a better or clearer view of the report.  

Financial statements are the lifeblood of business and investing. Running an efficient company requires solid recordkeeping and the ability to understand what basic financial reports tell us. Without a firm understanding of the financial reports you are guessing when making important decisions in your company. 

The same applies to investing. Warren Buffett said that accounting is the most important class he took in college. Buffett feels business classes are important, but accounting gives you the knowledge you need to run virtually any business. A firm understanding of financial reports means you understand details about the firm. You don’t need a world class business school to acquire a firm grasp of accounting. A local tech school or extension college is just as valuable.

Even in personal finance financial reports are important. If you don’t understand your own financial condition (the balance sheet) you are at risk or serious financial error and loss. The same can be said if you don’t understand where the money is all going (cash flow statement). Tracking your income and expenses (income statement) is a powerful tool for building wealth. Guessing is not a substitute for knowledge when money is involved.

 

Train Wreck

Last Monday promised to be a day of review with a few additional insights. The promise took a left turn quickly.

I was the first to arrive at the class. (I am like that; teacher’s pet, showing up early.) About 20 students filled the room. Kimberly, a fine young lady from Florida, was our instructor.

From the beginning she looked nervous. I was quiet, yet attentive as she struggled to deliver the message. 

A small class of 20 student should not shake a speaker. At first I thought she might have personal issues or feel ill. 

Then she interspersed light comedy pieces between sections. They didn’t match the curriculum and were very out of place.

 She decided not to follow the workbook, instead, using a PowerPoint of her own design as her teaching tool. 

There were several glaring errors. At one point she had the accounting equation on the screen and proceeded to  explain how the equation worked on the balance sheet. This is what her slide showed:

Asset=Liabilities-Owner’s Equity

Can you see the problem? The formula is really:

Assets=Liabilities+Owner’s Equity

Some people call Owner’s Equity Capital or just Equity. The point is that liabilities and equity are added, not subtracted, to equal assets.

Kimberly went on to explain why her equation was how accounting worked. Nothing added up. Something was very wrong!

I bit my tongue. It isn’t my place to embarrass her. However, it did bother me the other students were getting bad information. Some of the other students were drinking it in because they really didn’t know the right answer.

 

Some Education is Better than None

By mid-morning it was painfully obvious Kimberly was in over her head. Situations like the formula above and statements like, “accounts payable should never exceed accounts receivable” were blatantly false. 

The course provider (name withheld to protect the innocent) had a workbook we did not use. By going off on her own PowerPoint Kimberly was reinventing the wheel. I still has not put the pieces together as to what was really wrong with our speaker. She has 17 years experience in bookkeeping. You don’t survive that long (and get hired to teach a course) if you are that bad at it.

The few questions asked by the class I answered. To help the group move in a more appropriate (and hopefully more accurate) direction I asked a few questions and guided the responses. I decided to gently mention accounts payable (AP) can, and in many instances should, be higher than accounts receivable (AR).

It was time to drop a golden nugget to return interest to the class. I went back to an earlier discussion on cash versus accrual accounting and asked: When should a small business use accrual accounting instead of cash accounting?

The room looked like a herd of deer in the headlights. Small businesses can use cash accounting for taxes by default. You can elect to use accrual if you choose. (The upcoming Halloween post on  Financial Horror Stories II includes a story where a client made a big time mistake I fixed by understanding why accrual accounting can be a powerful tool. Be sure read it.) 

Most small businesses have an accounts receivable. Not all, but a large percentage do. If your receivables are larger than payables you want to remain on cash accounting, especially for taxes. However, if your AP tend to always be larger than your AR you will want to consider accrual accounting. 

The reason for this is clear. If AR are larger you don’t want to pay tax on money not yet received so cash accounting is better. If AP is larger you can deduct the expense before it is paid under accrual. 

With this it was time for lunch (fifteen minutes early). Thank God.

 

Time for a Break

Kimberly did not join us for lunch. As some of the students ate together we talked. One student was a retired CPA from a large CPA firm. He was not happy.

I admit I expressed concerns over lunch. It is my policy to never denigrate another person pouring out their soul to a group. I am by no means always innocent myself. In this instance I was reasonably true to my policy, and as will soon become clear, I am glad I was.

A third of the class never returned from lunch. Kimberly looked worse than in the morning. 

From what I gathered, she ran out of material in the morning.

The afternoon session was worse than the morning. We returned from lunch at 1:00 and by 1:30 it was getting ugly. The material was all over the map and did not make sense. Most was a glossing over of the morning material. 

Either I had to take action or the class would be over on the spot.  

I interjected, “I read the workbook over the weekend and would like to review some of the material there.” 

Everyone, including Kimberly, was happy for me to provide some direction. 

“On page 32 of the workbook there is an income statement. What is wrong with it?”

A good discussion on fraud prevention ensued. In a short period of time I was able to pry from the financial statements many details of the company presented.

What glaring problem do you see with this balance sheet?

What glaring problem do you see with this balance sheet? I’ll answer in the comments in a few days after publication. Hint: The company is in trouble.

I will not give a play-by-play of the remainder of the afternoon. What I will say is the discussion picked up and for the few that remained for the afternoon we had a good discussion with value.

Class ended early.

 

The End was the Beginning

When the curtain came down the remaining students left. Many grabbed my card (I didn’t bring my business card so I handed out my card for this blog).

The first to arrive I was to be the last to walk out with another student, a retired teacher.

Kimberly walked behind us and said, “Thank you for asking questions and moving the class forward.”

I replied it was no problem. I mentioned I could tell something was wrong.

“This is my first class,” Kimberly said. She was nearly in tears. It was a long, hard day for her.

The pieces all fell into place. 

“I can’t understand what went wrong,” Kimberly continued. “I spent two weeks planning this class and practiced.”

The school teacher and I stayed for about an hour helping Kimberly improve her game and good thing. Kimberly was headed back to Illinois for two more presentations of the same program before heading home. The reviews from today’s class were brutal. If she didn’t make a comeback she was at serious risk of losing her job.

I recommended she dump the PowerPoint. The school teacher said she might want to use a meme.

I gave an example of how I would conduct the class: Use the workbook, ask students questions, get the students thinking. Tell stories. Engage the class. Find the reason they came and work it. 

Kimberly recorded some of my remarks on her phone for review as she drove back to Illinois. She wanted to listen to it again and again. In less than an hour I outlined how I would conduct the class. It would be impossible to finish it all in a day. That makes for a good, fast-paced class.

Mostly, I told Kimberly, she needed to have confidence. She has almost 20 years experience as a bookkeeper. Yes, she is not a CPA, but she is very familiar with financial statements. There is plenty of material to engage and peak the interest of any group. Focus on what is relevant to the attendees. Each presentation, as a result, will be slightly different.

Kimberly looked very tired when we left. She also looked like she had hope. The company had a workbook with plenty of material to easily fill a day. Mixing in personal stories would keep the group awake and engaged. 

 

For the Sake of One

I made it clear to Kimberly she had nothing to lose. It is unlikely she will ever see any of these students again in her life. Just give the best darn presentation you possibly can, I suggested. Give a piece of you. Make it real. Go in with the goal of helping everyone present learn at least one new thing this day.

The knowledge doesn’t have to come from you, I continued. You would be surprised how often the best insights come from other students as they ask questions and debate answers. 

As I said to Kimberly, it is unlikely we will ever cross paths again. There is nothing to lose. Nothing to be embarrassed about. This was not about personal gain; it was about paying-it-forward. It is the only thing that gives life meaning; helping others find meaning in their’s.

Kimberly did not contact me afterwards. I have no idea how it turned out in the Illinois classes. 

Steve Jobs asked John Sculley if he wanted to change the world. Well, I haven’t changed the world at the level of Steve Jobs.

But I may have changed the world for one. And it was worth the effort.

 

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

There are many forms of communication; none are as vital as the written word. It is the edited word which conveys more information than any other media. Sure, video is superior when showing majestic vistas, but words, when edited well, are the most powerful learning tool we have. There is a reason the written word has survived so long even with radio, television and YouTube desperate to overturn the monarchy.

Wealthy people the world over credit their success to reading. From Warren Buffett to Bill Gates to Elon Musk to Richard Branson to your favorite accountant, good books are part of the history of the people currently in the winner’s circle. Educated people possess the tools to create the future the rest of us are forced to live in. Most failures can be traced back to a lack of understanding or misunderstanding.

For these reasons I’ve been a dedicated reader since my late high school years. Before that I couldn’t get myself to read a book the the end and it showed. I struggled with direction in life until the magical day I picked up a book from the school library on weather. It was a mere 128 pages and there were a few drawings of clouds and cloud formations, but when I finished that book something clicked and I never looked back.

Before long I was consuming (and digesting) 1000 page books and begging for more. My interest in personal finance was unleashed! I was reading The Wall Street Journal (every section) from beginning to end daily. Business magazines and books were an addiction. (Science fiction novels were also an addiction I never shook if we can be brutally honest here.)

Learning became a part of my daily life, as important as eating and sleeping. I cannot remember a day when I didn’t read at least a few pages of a book. It has been a long time.

From the humble pages of that 128 page book on weather I built a library with well over 2,000 volumes. It might be at 3,000 by now, but I don’t have time to count; I’m too busy reading.

Find a quiet place to read these powerful books from the past year.

You can always find a quiet place to read.

A few months ago I started a Facebook marketing program for this blog. (I fell in love with writing shortly after I discovered the high finishing a book creates which eventually led to this blog.) As the program started a facilitator asked the group for an interesting fact. I said “I read more hours per day than I sleep.” She was shocked! I told her the truth. “I read a lot — several hours per day — and sleep seems to elude me too often for good health.”

Each year I add 50 or so books to my library. This is down from my younger days when I’d add 150 or so novels to the ranks annually, plus a dozen or so meaningful books. Then I visited the library. When I reflect I sometimes feel like Charlie Munger, (Warren Buffett’s right hand man) a book with hands and legs sticking out from it. It is a rare event for me to go somewhere without a book at hand.

If you love books as I do you enjoy lists of good books to help you select your next literary victims. If an educated individual publishes a list of “Best” books I save the list. I’m always looking for more good material and I rely on the smartest people to give me a recommendation.

Fiction is a minor part of my reading now. There is just too much I want to learn before I go to the Great Beyond. My goal is to be the smartest guy in heaven (or biggest smartass in hell). So I read mostly non-fiction now.

Because I read so many books I have a ready mental arsenal to draw from. By sharing with you the best books I read this past year you can focus on the most important material with your limited (egads!) reading time. I hope you pick up my habit of carrying a book with you where ever you go. A few free moments is easily turned into a education if you do.

Below is my list of favorite books I read in the last twelve or so months. There are many more, but I don’t want to bog you down. I grabbed from the stack the books that most moved or educated me. Consume at your leisure. (Consumption is sometimes dirty word in our society. It is far from dirty when it comes to books, learning and knowledge.)

China’s Great Wall of Debt, by Dinny McMahon

There is a fear in the West that China is taking over the world. The China Miracle, we learn from McMahon, is more mirage than miracle. Ghost cities, complete concrete jungles with few people, really do exist in China. Take away all the extravagant (and wasteful) construction and China’s economy isn’t even close to the size of the U.S.

And then there is the debt for all the wasteful building. The tax system encourages bank lending to state enterprises and local governments. The bad debt is hidden from public view. Nobody know how bad it really is. One thing is sure: if it wasn’t that bad there would be no reason to hide the numbers.

China is still a vibrant nation with a growing economy. However, we need to put the economic miracle into perspective. China has lots of problems and time is running out to fix them. The real question is how bad will it hurt Western economies when China implodes?

And China doesn’t manufacture everything! Many products are created and produced elsewhere and shipped to China for assembly. The trade war is unnecessary and more damaging to U.S. companies than politicians are letting on.

This is my favorite business book of the year because it was so eye-opening. I knew China had massive debt and sewer oil was a real issue, but I never realized how difficult the situation in China is.

 

12 Rules for Life: An Antidote to Chaosby Jordan B. Peterson

Jordan B. Peterson has been everywhere these last two years. His newest book is a set of rules for living life well. It seems so common sense at first: Tell the truth—or, at least don’t lie; Stand up straight with your shoulders back; and, Pursue what is meaningful (not what is expedient) are three of the twelve rules. But it doesn’t take long before you realize the depth of his message.

Peterson struck a cord in our world of identity politics and constant offense at every action. I’ve written on Peterson’s work before. And here. And ended up with endless grief. People either love his work or hate it. Those who hate did their best to deliver a groin shot to a certain unnamed accountant.

But many do find value from Peterson’s videos and books. 12 Rules happens to be the best selling book this year on this blog. Readers are also clamoring for a review of his earlier book (Maps of Meaning: The Architecture of Belief) since they discovered I purchased. (Note: I started reading Maps, but this one will take a while. This is serious and difficult reading. I’m 40 pages in as I write and will read several other books in between—something I rarely do. The material is just too deep to plow through without a break. You’ll get your review if I don’t suffer an aneurysm first.)

12 Rules is highly recommended. One of the best books ever written on what makes us tick.

 

Enlightenment Now: The Case for Reason, Science, Humanism, and Progress, by Steven Pinker

Media constantly tells us how bad things are and many times we yearn for the good ‘ol days. But the data doesn’t bear that out. Things are better now than ever and improving at a rapid pace!

I’ve always been an optimist. There has always been a grand appreciation in me for the awesome time we live in. But even an optimist adjusts to our modern opulent lifestyle and begins to wonder.

The most successful people today spend more time reading than anything else. Here are 5 must-read books on success and growth from the past year. Even the honorable mentions are incredible books.

Winners read.

Pinker not only makes the case, but backs it up with data. This approach appeals to my analytical accountant mind. Here are a few things I found fascinating: We are living longer by a lot, are healthier, eat better, have more wealth, are less unequal (yes, inequality isn’t as bad as we pretend!), enjoy a cleaner environment in most Western nations than a few decades ago, enjoy more peace (no world wars recently), are safer, have more rights, are smarter and have access to more knowledge, and enjoy a quality of life never before experienced by the species.

It is socially acceptable to whine about how bad we have it. Yet the facts are clear. We are in the best of times and the time are getting better! Reading Pinker allowed me to internalize the worldview that the sky isn’t falling and the world isn’t coming to an end.

There is also a good reason for optimism. Warren Buffett is also an optimist. When the world is ending (the stock market is down double digit percentage points) Buffett knows it’s fake news and buys more great businesses at discount prices. If you can discard the negative attitude for a moment and focus on how good the world has become—as outlined by Pinker’s work—you to can make profitable decisions when the Chicken Little’s of the world are screaming like chickens with their heads cut off.

Sapiens: A Brief History of Humankind, by Yuval Noah Harari

Sapiens really surprised me. I’ve read dry mega-histories of the human race and expected the same here. Regardless, I enjoy ancient human history so I pried open my wallet and am glad I did.

Harari compiled an incredibly vibrant and alive story of human history all the way back to the beginning. A good history story allows us to see ourselves in a cleaner and clearer light. This work does just that.

Who we are and where we come from is lost in the fog of a “time from long ago.” In keeping with the theme of this blog, Harari did an excellent job explaining where and when money was created and first used. It was enlightening to see the backstory to our current financial system. It cleared up many questions I had.

We all want to know where we came from. That is why DNA tests are so popular as tools to determine our true ethnic background. Bringing the details into perspective allows us to live a better life, filled with the knowledge we have an important place in the grand scheme of things.

Once you finish reading Sapiens I’m sure you’ll be on the horn with Amazon ordering Harari’s latest classics: Homo Deus: A Brief History of Tomorrow  and 21 Lessons for the 21st Century. These two are on my shelf waiting for digestion. How I’m going to keep these off next year’s “Best Books” list is beyond me.

 

The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century, by Walter Scheidel

Have things ever been worse when it comes to inequality? Well, actually, yes! It has also been better, too.

Inequality is the buzzword of the year. Media is filled with demands of gender and race equality. We demand equal pay and equal rights. Some go as far as wanting equality of outcome! (I have no idea how to accomplish that. We tried communism in many societies in the 20th Century with less than desirable results.)

Equality is a worthy goal regardless what happened in the past. There is a sense of unfairness when the rich get richer while the poor keep getting poorer. (Refer to Steven Pinker’s book above for a clearer perspective.) There is something noble about helping people with less get more for their efforts. Poor people can be just as hard working (if not harder working) than the wealthy. So inequality is a necessary study.

Scheidel gives us a broad view of equality in the past up to modern times. No spoiler alerts from me. You have to read the book! But let me say this: There are four ways to lower inequality (as history has taught), but you might not like the answer. Worse, equality doesn’t mean the poor become wealthier; usually it’s the other way around. This is an eye-opening book you want to read.

 

Honorable Mentions

As mentioned above, I read about 50 books a year; a few more if they are short. The list of all I read is more than most can get their arms around. The five books above are page turners worthy of investment. You might want to chisel time out of your schedule for these honorable mentions as they are equally as good as those above. (You should see the good stuff I left off the list. It makes my eyes bleed.)

Energy and Civilization: A History, by Vaclav Smil is the best book I’ve ever read on energy production and consumption by humankind. The facts and figures are addicting. From prehistory to modern times, energy sources and uses are illustrated in an easy to understand format.

Books are a vital part of education, learning and success. Here are the best 5 books of the last year. They are required reading.

You are never too old to read or learn.

Inheritors of the Earth: How Nature is Thriving in an Age of Extinction, by Chris D. Thomas and The Ends of the World: Volcanic Apocalypses, Lethal Oceans, and Our Quest to Understand Earth’s Past Mass Extinctions, by Peter Brannen are two excellent books covering the worries of environmental doom popular on social media and news outlets. Things are not as bad as they seem and there is actually some good news! And history tells a story of renewal, rejuvenation and healing from the planet’s past.

Business Adventures: Twelve Classic Tales from the World of Wall Street, by John Brooks, was promoted on the CNBC website. After Bill Gates gave a nod I made the purchase. As expected, these are twelve really engaging (and informative and instructive) stories of Wall Street behind the scenes. If you like money then Business Adventures will read better than a Stephen King novel.

Hoover: An Extraordinary Life in Extraordinary Times, by Kenneth Whyte. I always thought of President Hoover as the guy who brought us the 1929 stock market crash and The Great Depression. The truth is far from it. Many of FDR’s policies came from Hoover and were not instituted over politics and misunderstanding of economic theory until Hoover was out of office.

I now have a healthy respect Herbert Hoover and his life of public service. Our 31st President was an incredible man of many accomplishments. This biography so moved me I have plans of visiting his Presidential Library in Iowa soon. If only I could find the drive to work as hard and productively as he did.

Finally, we end with a novel: Seveneves, by Neal Stephenson. My shelf is filled with westerns, romance novels, mystery novels and every other genre known to man. What stands out is the shear volume of science fiction I once read. Old habits die hard so I’m back at a familiar trough.

Seveneves is the best kind of science fiction: engaging, entertaining, filled with suspense and mystery, and just enough science fact to make it all work suspending disbelief. This novel start with the moon blowing apart and gets more exciting from there. Two-thirds of the way through the the human race is all but extinct; the attempt to save the world from a lunar catastrophe is nearing an end and seven women (the seven Eves of the future human race) are all that remains of the species. I’ll let you enjoy the story on your own. My guess is you’ll end up staying up too late at night, unable to put this book down, as I did. But trust me, it is all worth it.

 

These are my favorite books of the past year. I encourage you to read the ones that interest you. Please share books you were moved by this past year. You see, I need more good books to read, too.

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

 

This post will cover several issues. It will serve as a:

  1. FinCon18 review,
  2. as an example of how to best manage conference and seminar attendance for maximum results and
  3. as an update on the future of this blog.

These three issues are interconnected as will be clear shortly.

 

Professionals from all walks are either required to attend conferences or strongly recommended to do so. As a tax professional for over 30 years I’m familiar with the different types of conferences and how they can provide value well beyond the fee paid to attend. As we explore using conferences to further your wealth and career, I will use personal examples to build an actionable plan you can use to maximize results, creating the most value for your time and financial investment.

FinCon is a large personal finance conference that floats around the U.S. each year. We will use the FinCon conference to illiterate best practices with my experience as an example. FinCon18 in Orlando is the best conference of any kind I ever attended. That is a tall order considering I crashed and burned at FinCon17 in Dallas the prior year.

Small conferences are straight forward. A small number of people gather with a common goal. These small gatherings are generally seminars. Our discussion today involves the larger gatherings with several tracks. Seminars are easy to define. If your goal is learning about the new tax laws you find a seminar on said topic and attend. Seminars are usually a day or two with one topic in one room. You will not miss a breakout session because there are no other tracks.

Large conferences are overwhelming. FinCon had 8 breakout session tracks running simultaneously at times this year. FinCon Central was a hive of activity concurrently with vendors hawking interesting products and ideas. (Some of the best lessons are learned in the mosh pit where people mingle without a formal framework . Vendors bring new ideas to the table. The combination is a powerful mixture.) Unscheduled meetups and parties are common. It’s easy to feel overwhelmed when 2,000 people of like mind gather. So much opportunity abounds! Where to begin?

Lessons from FinCon

 

Pain is a more powerful motivator so we’ll start with my struggles from both FinCons I attended.

Large conferences are hard to understand before attending first. FinCon has multiple cultures under one roof. Virtually every interest in the financial community is covered. Finding people with similar interests is easy. Finding sessions tailored to your goals is equally easy. So why did I fail the first year and sail the second?

Upon review I believe the disaster that befell me at FinCon a year ago was set in stone before I ever left the house. I was well aware of the educational benefits FinCon offered, but choose instead to focus on meeting as many people as possible without regard to sessions.

FinCon is the best financial conference I ever attended. The social and educational opportunities are endless. Build your business, increase blog traffic and more. #wealthyaccountant #FinCon #FinCon18 #money #media #education #seminars #blogtraffic

FinCon is the best financial conference I ever attended. The social and educational opportunities are endless.

You probably share a trait I have. I want to help as many people as possible so maximizing the number of people I associate with during the conference seems like a valid strategy at first glance.

A second trait we may share involves goals. I made the critical error I could learn what I needed to know elsewhere and therefore disregarded educational benefits from sessions. Traffic to this blog is what I wanted and felt the more people I bumped shoulders with would increase my chances of hitting the right combination that would spike blog traffic.

There is nothing wrong with traffic goals. Traffic is the lifeblood of blogs, YouTube videos and podcasts. If nobody shows up all your hard work is in vain. Unfortunately, bumping shoulders with every warm body isn’t the brightest idea I ever had. It eventually comes off as pretentious. Running a  million miles an hour also alienates many people that would normally be happy to help you achieve your traffic goals.

The inevitable happened, of course. My energy drained, I was less engaged, made less than quality first impressions and then met an individual edgy enough to want to hurt me and did. This is where I totally went off the rails. At first I pointed the blame out there. After I calmed down and seriously considered what happened, I realized I needed a good long look in the mirror.

FinCon ( and the accompanying Plutus Awards) are the best the industry ever produced. And my ignorance destroyed my first chance at massive gains. My goals were unmet.

It hurts to confess my errors. But it must be said! FinCon is too large an opportunity for anyone who attends. Wasting the first year over such foolish decisions is something I want you to avoid.

Now we can explore how I turned this boat around.

Round Two

 

I might have crazy ideas, but I’m a fast learner. Some people lick their wounds and never return. You and I are not those people. We own up to our mistakes and try again. We learn from past experience — wins and losses — and grow from there.

Last year I never made it to a single FinCon session except for the First Timers’ Orientation. I didn’t listen well.

I made a point to talk to every person I could. Attended every party, too. Didn’t drink much, but talked the leg off every human without a nautical mile. The hours were long and grueling. A repeat wasn’t something that excited me.

Want to be rich? A millionaire? Then you need to attend the FinCon conference. Learn how you can be a millionaire. #wealthyaccountant #millionaire #rich #wealth # money #conference #seminar

The right conference or seminar can change your life. This conference makes millionaires.

Once again, the FinCon experience was set in stone prior to leaving the house. This time I made a point to attend at least a reasonable number of sessions. I wanted to finish FinCon with actionable material. (More on this in a bit.)

Touching base with old friends and business acquaintances was secondary, but still part of the scheduled program. Attending sessions I found most important was a priority.

Education is a powerful motivator for me. I like working with people, but people are exhausting! Too many people pulling at me simultaneously and I start to fray around the edges. But education is something I can immerse myself in every waking hour. By spending at least a portion of each day learning at FinCon I reduced stress and burnout. My defenses were up and there was not a repeat of the prior year.

You would think a focus on attending workshops and sessions would limit my socialization. It didn’t! I had more in-depth conversations with readers than last year as we waited for a class to begin. People I never met before came to me to shake my hand. How awesome is that? The solitary life of a writer suddenly became real when faced with people I helped with my work. It is humbling to say the least.

Avoiding the parties is a personal choice. Parties can be loud which isn’t good if you want to keep your voice. For an old guy, ah, an accountant, an earlier bedtime worked wonders. You might be different. I recommend listening to your body. Don’t push to the point where it hurts the next day’s performance. You never know when you’ll need to make a solid first impression.

Without attending parties you would think I interacted with fewer people. Au contraire! Parties are great to let off steam and mingle with friends new and old. But parties are a poor way to gather necessary information (unless you’re waiting for people to get drunk and spill the beans). I’m not telling you to avoid parties. I’m saying my focus on learning allowed for ample interpersonal interactions with people I needed to communicate with.

All I’m saying is balance is the best way to get the most value from a conference. Experience told me I should focus on learning and mingle with attendees as opportunity presented itself. Every tax seminar/conference I ever attended was about learning, but plenty of valuable interaction and communication also happened.

Now we turn to the most important part of this lesson and how it will affect you and this blog.

How to Build a Million+ Page View a Month Blog

 

Many lessons learned at FinCon were things I already knew but hadn’t yet reached the deepest part of my gray matter. A good many things were also new to me.

From inception I shot myself in the foot with this blog. All I wanted to do was write, to tell my story. I missed all the reasons, you, kind reader, bother to show up around here and spend your precious time reading my work.

First, it’s all about user experience. All too often I did things I thought would generate traffic and then throw an attitude when it didn’t work. After all these years it finally sunk in. If I focus on improving the user experience they will come. Thankfully I avoided the dreaded pop-ups and similar annoying devices. Still, I modified the blog with the intention of increasing traffic. This was my first and greatest mistake.

A close cousin to the above error in my thinking is I put too much emphasis on “me” instead of the reason people show up around here: “you.”

Create massive traffic for your blog with these 5 steps. A simple to follow program that will super-charge your traffic. How to increase blog traffic. Awesome traffic tips. #wealthyaccountant #blogtraffic #traffic #tips # pageviews #awesometips

Build a million page view per month blog with these 5 ways.

The best writing in this field focuses on actionable material “you” can use in your life to solve problems. Yes, my stories are illustrative and add to the content and its value. However, I frequently never traveled beyond the confines of the personal story. I forgot real people are actually reading this!!! Typing in the solitude of deep evening it is easy to forget I’m not writing a journal to myself, but actually providing material people are seeking to improve their lives and solve problems.

I guess I could add a “Duh!” here, but that would be counter-productive.

The third lesson I was already aware of. Shortly after this blog took its first breath I showed my true prolific colors. The third lesson finally sunk in: Stop publishing so much!

Not only is a rapid publishing schedule grueling on the writer; it’s murder on the reader! Too much material too fast wears readers out.

Publishing too often also reduces the quality of my work. If this is all about the user experience and “you” then publishing just to say I can bang out a certain number of posts a week is, to be blunt, stupid.

Publishing when I have something important to say is a smarter move that keeps you, kind readers, in mind. The extra time allows for more and deeper research.

I was also reminded longer posts are important because it allows for inclusion of actionable material readers can apply immediately, lessons four and five on our list.

Not every post needs to be 5,000 or more words. But some issues demand it! Posts here have always tended to the long side. But many times I intentionally left off actionable material because I felt the post was getting long. This is a tactical error if my goal is to improve the user experience, make you the centerpiece of the post and increase traffic (a little something for your favorite accountant after serving your needs).

The New Wealthy Accountant Blog

 

With the above information in hand, here are some of the changes you can expect to see around here starting now or in the near future.

  1.  The publishing schedule will decline and will not be on a set schedule. I estimate 2-4 posts per month for this to be done right. This is a major reduction! Jim Collins warned me two years ago my traffic would be fine if I reduced my publication schedule. I was too stubborn to accept good advice. One good post per week with actionable material is miles ahead of publishing like crazy just to say I published. Some weeks will have two posts; some weeks none. But my promise to you is better material. (I took off publishing last week for the first time ever and traffic was fine.)
  2. Posts will get longer when it adds valuable information. By spending more time thinking about the topic at hand I’ll be able to include more usable information. Deeper research will make for a better user experience. Material will contain actionable elements. Previous posts centered around 1,500 words. There will be times I work well past 5,000 words to get all the information out. You can pick and choose what you need.
  3. Experimenting is still in. The internet is constantly evolving. Experimenting is vital to the health of a blog. Experimenting gives me the opportunity to help you better.
  4. Some old posts will be deleted. Looking over old posts there are a few that need to go. The Stalking the Accountant series was a thinly veiled attempt to sell books. They were good books, don’t get me wrong. But my intentions were not honorable. In the near future those posts will disappear forever.
  5. Some old posts will be re-purposed. Certain posts were fun to write, but didn’t add much value and get virtually no traffic. An example of a really old post that doesn’t resonate is Caveman TV. It was a fun story on how I raised my kids in the backwoods of Nowhere, Wisconsin with limited doses of commercial media. However, if I edited the post with actionable material and with a new title it would be a far better piece. I could re-title the post: Free Alternatives to Commercial Television. If the changes are minor the post will stay where it is in the Binge list. If a major re-write happens I will bump the post to the front of the list as a new post. (Note: Bumped posts generally are not reported to subscribers with an email. A periodic check of the Binge list is a good consideration.)

I know many readers enjoy hearing my stories of life in the backwoods and in the accounting office. All those things will still be here. A healthy dose of “me” is still part of this blog. The improvement I demand of my work is something more than entertainment value for “you”.

Here are a few examples of what is in store:

  1. Filled-in Form 3115 for cost segregation studies along with verbiage for a grouping election. It sounds like a mouthful. but a lot of tax professionals have been begging me to provide material on handling a cost segregation study on a tax return. Since I recommend cost segregation studies and there is no current filled-in Form 3115 online covering these issues, I plan a step-by-step guide I periodically update with filed-in tax forms as examples. Tax professionals and DIYers will have a tool to prepare an accurate return when a powerful cost segregation tax reducer is involved.
  2. A tradelines series. I can’t tell you the number of people who came up to me at FinCon to thank me for introducing them to selling tradelines. People are paying their entire mortgage selling tradelines and spending less than an hour a month in the process. There are so many more powerful ways you can use tradelines to your advantage. I will not neglect my duty any longer. I will take a good idea and turbo charge it just for you.
  3. Goodies in the queue. Here are a few goodies I have planned as soon as I adequately fleshed out the material: Cheap Auto Repair; The History of Money; The History of Retirement; The History of Polarized Politics in the U.S. I might even touch on the Suze Orman Afford Anything podcast controversy.
  4. Videos. Embedded YouTube videos are coming! The Suze Orman thing might be a video only since it is more an opinion piece than anything. Slowly I will start building a video library made available on YouTube and inserted in posts where appropriate.

Now that I’m not chained to a brutal publishing schedule I can focus on adding more value. Videos that compliment the text take time I will now have. Longer, better and actionable posts are the new norm.

And if I have one of those fainting spells I’ll bring back one of those fun posts where we just let it all hang out on the farm.

I look forward to our adventures together.

 

 

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

Note: Camp Accountant is postponed for now. The original planned weekend is two weeks after FinCon and the same weekend as the tax extension due date. A large number of accountants wanted to attend, but couldn’t due to the due date. There were also several complaints the event wasn’t in Wisconsin. Colorado is an awesome place, but a lot of bloggers promote Colorado; it was felt I should promote Wisconsin. We can satisfy all these issues by having Camp Accountant in West Bend, Wisconsin at the Cedar Valley Center & Spa the week following the Novel-in-Progress Bookcamp, a program I’ve been involved with in the past. Sorry for the inconvenience.

 

The Event you have been waiting for your entire life had finally arrived! Camp Accountant is Here!

I don’t know about you, but I’m tingly all over. Camp Accountant is different from any camp you’ve attended in the FI community. All proceeds go to support the local Boys and Girls Club. In fact, all the registration money is collected by the Club. They pay for the cost of running the camp and put the rest to work serving the community. Everybody wins! Many of the venues are provided at low or no cost so more money ends up helping the Boys and Girls Club.

The first ever Camp Accountant is limited by the size of the venue so register early (details and links at the end of the post for registration and accommodations). First I need to share details. Read to the end for a special surprise!

Karen (she can share her full name if she wants) put this thing together. That means she did all the work. Please acknowledge her efforts. These things take time and cause stress so I am tremendously grateful for Karen’s efforts.

Karen and I have communicated during the planning process. She put together an information sheet so I’m going to cut and paste her words because she said it first and better:

 

Location – Salida Colorado — main location 419 D Street

 

Cost – $400 per person.

Participants – 30 people.

 

What this is all about –

 

Have a great time meeting like-minded folks, bike and hike around the Rocky Mountains in Colorado; learn cool stuff about accounting and how it supports our road to Financial Independence.

 

Keith from the Wealthy Accountant is hosting this event.

 

Lodging is not included in the event – it takes place in downtown Salida, Colorado.  Lots of camping and lodging nearby, all info provided upon registration. All lunches and most dinners are included in the cost of the ticket.

 

The camp will be a fundraiser for the Boys and Girls Club of Chaffee County. This amazing program supports youth in a rural county in Colorado.

 

A bonus of supporting the Club is that Colorado residents attending the camp will receive a donation letter for $200 that will equal a $100 credit on their Colorado state taxes.

 

Boys and Girls Club

 

Salida, Colorado is a very economically diverse community. As a small town of 5,000 people, there is no other after school programs for working parents that are affordable, and no other enrichment programs for families of limited means.

 

This program supports our local youth in many ways. Kids are with staff for homework help. They join structured programs to follow interests as diverse as sewing to robotics, and have a chance to be physically active instead of home alone in front of a screen.

 

The Club needs its own building to guarantee its future, instead of renting space and moving every few years. The opportunity to get word out about supporting the Club through the Wealthy Accountant blog could help us get a building so that the youth served by this program will have a permanent home.

 

Link to the Club website – http://www.bgcchaffee.org/

If you want to donate – http://www.bgcchaffee.org/Donate (click green button to donate online)

This is what the FI community is all about. We share ideas to improve our own lives and pay it forward so the upcoming generation can enjoy the same.

Here are answers Karen provided to important questions:

 

FAQ’s

 

Can I come just for the day?

 

The space will only hold so many comfortably, so we will only have tickets for the whole event.

 

Where should I stay?

 

There is camping, Airbnb lodging, and a couple of B&B’s all near the site. Details of lodging and transportation will be sent upon registration. Most locations for lodging downtown are within walking distance of under a mile.

 

Is registration refundable?

 

No, but we will try to find a way to transfer tickets to people on a waitlist.

 

Who is hosting this event?

 

Keith from the Wealthy Account Blog is hosting the event.

Snap Pea (Karen), a longtime reader of the blogs and OG of the FIRE world, is helping coordinate all the logistics, and is crazy excited for the fundraiser for her local charity.

 

For profit event?

 

No. Information on the club is linked above.

 

Could I or Should I bring my rugrats?

 

While there is a lot to do in the area, the setup isn’t good for kids running around if the weather is bad. They would have more fun with a non-attending person around. If you do want to have kids and/or partners join for meals, please email for availability and rates to cover food costs.

If you have any additional question use the contact button on this blog. I’ll do my best to calm Karen down, ah, work with Karen to get you an answer.

Here is the planned itinerary.

 

Tentative Event Schedule

 

Thursday, October 11

 

5 PM

 

Intro: evening at the Salida Hostel.  Beer, wine and appetizers (enough for dinner) provided.

 

Friday October 12

 

9 AM: meet at 419 D Street for a bicycle ride or hike around the Salida area. There are mountain bike trails, road bike routes along low traffic county roads, and hiking trails all nearby.

This activity is dependent on weather – coffee and conversation at the site is the alternate plan.

 

Noon: Lunch at HQ

 

Intro talk by Keith, Q and A’s, etc. (I promise not to upset stomachs.)

 

4 or 5 PM: beer at the site or nearby park, happy hour, dinner on own downtown Salida.

 

Saturday, October 13

 

8:30 AM: Yoga with a volunteer leader – for those so inclined.

 

9:30 am: Event – talks, Q and A, discussion topics, power presentations, breakout discussions

 

Noon: lunch at site

 

1 PM: Event – talks, Q and A, discussion topics, power presentations, breakout discussions

 

5 PM: happy hour and BBQ. Volunteers from Chaffee Boys and Girls Club will be helping with the BBQ.

 

Sunday, October 14

 

10 AM: coffee and conversation, possible 5 min power talks, hanging out.

 

Noon: sandwiches and leftovers for lunch, organized event ends.

 

1 PM: Mountain bike rides and trip to local Hot Springs for those inclined. Car-pool organized by participants.

 

Afterparty –

 

The after-party will continue in Salida, Colorado –

 

Stay longer and come check out our volunteer coordinator’s business – www.salidainnandhostel.com The Inn is set up as a friendly and social place to continue the fun after the Camp.

Salida is near several hot springs, hiking and biking trails and just a cool little town.

I’m happy to do all the talking, but for this to work best we need participation from others. Taxes are always a hot topic, especially with the new tax law in effect. I’ll answer questions personally as well.

We also need volunteers to give short presentations. Topics should be of interest to the FI community. Those active in real estate should consider a short presentation on the real estate market, RE values around the country and rent rates. Frugal living and early retirement are always of interest. And don’t be afraid to step forward and share some travel tips. Just because a certain unnamed accountant prefers to avoid travel doesn’t mean other wealthy accountants feel the same way. (For the record your leader is a slightly nuts!)

Here is additional important information before I provide the registration links:

 

Lodging–

 

We recommend staying in the downtown area. Salida Inn and Hostel www.thesalidahostel.com the Palace Hotel https://www.salidapalacehotel.com/ and the Simple Lodge https://www.simplelodge.com/  are all within walking distance.  We also recommend Airbnb as many locations are within walking distance.

 

Camping/RVs – There is a lot of free camping just outside city limits on public land. There is also a nice private campground just on the outside of town, as well as a public pay campground called Salida East.

 

Transportation to Event

 

There is one bus a day to Salida — it leaves in the afternoon from downtown Denver, to get there from the airport you take light rail. It works best if your flight arrives quite a while before the bus leaves.

http://expressarrow.com/

 

Renting a car is highly recommended unless your flights really work out for the bus.

 

The Colorado Springs and Gunnison airports are much closer — you would need to rent a car from them.

 

I come from a small town so I’m excited about our venue. The boondocks are my home and anytime my tail is planted in the outback I’m a happy camper.

This is going to be such an incredible event. Registration is on Eventbright.

 

Register Here!

 

Now for the surprise! I’m donating all my time and all my travel and lodging expenses are coming out of my pocket so the Club gets more of the proceeds. Airfare between the Accountant farmstead and Denver is really, really cheap; like $100 or $150 per person. Buuuut, Mrs. Accountant and I are driving so we can spend more time checking out the sights along the way. And since I’m driving there is a strong possibility a case (or ten) of the world famous Spotted Cow beer only available in Wisconsin will be smuggled in the truck of a wayward accountant willing to share.

I’d say the first beer is on me, but we all know it’ll be more than one.

See you at Camp, kind readers. There will be loads of powerful information for you and a future for the kids. And that is what life is all about.

Jordan Peterson is one of the greatest thinkers of our time.

When you think of the most powerful, motivating speeches ever given, Abraham Lincoln’s Gettysburg Address comes to mind. In less than three hundred words* Lincoln encompassed the issues facing the nation. As great as the speech was, it was backward looking (Four score and seven years ago) with hope to the future. Lincoln was able to clearly articulate his message in a few minutes. He struggled up to the moment of addressing the crowd as Gettysburg. It was the planning and preparation that lent to the quality of the message.

Closer to home we might consider the commencement address Steve Jobs gave at Stanford in 2005. At fifteen minutes, Jobs communicated a narrower message with significant reinforcement of his theme. Once again, serious planning took place prior to the presentation. Jobs was legendary in his drive toward excellence. He could speak before a crowd extemporaneously, but preferred formal presentations he could and did practice again and again until everything was choreographed to perfection. Errors were ironed out. He practiced so much that when he was live he could continue without missing a beat if technology failed while he was on stage. A Steve Jobs presentation was a show to behold.

Speeches that resonate come in many flavors. YouTube is filled with powerful speeches from movies and sports coaches. Speeches that cause a shiver to run down your spine include elements of life itself. “You can do it” is motivational, but when the words and emotions dig deeper we quickly realize the importance of what we are hearing.

Today I want to share a short speech (10 minutes from a longer interview) by Jordan Peterson. I’ve been reading and listening to his work for a while now. His recent rise to fame makes his plea more vital than ever.

A Typical Day at Harvard

The excerpt comes from a longer interview Peterson gave to a group at Harvard University. The video begins with Peterson asked what advice he would give students that want to make a difference in the world after they graduate. Peterson never missed a beat when he said, “Read great books!”

You can watch the video on your own and should several times to digest the entire message. What you should get on the first pass is that while Peterson was giving an interview, his responses are not completely extemporaneous. Over a long career he has developed a remarkable philosophy on how to live a good life. Does that sound familiar? It should. It’s been a while, but I’ve talked about Stoicism plenty enough in the past in this blog.

The overtones in this interview are dripping with stoic thought. Around halfway through the excerpt the interviewer even asks Peterson how to live a good life. What makes the responses so powerful is how Peterson opened the floodgate and released an articulate and passionate plea for listeners to accept how incredibly awesome our lives are today in the Western world.

A Game of Cards

Friday night is sheepshead (a card game with some (okay, few) similarities to bridge) night in the Accountant neighborhood. Since we are all a bunch of old duffers living in the backwoods of Nowhere, Wisconsin, the game starts at 7 and ends shortly after 9. (Did I mention us country folk prefer to hit the hay shortly after sundown?)

A few weeks ago one of our players, Pete, asked — as he always does — how our week was. I decided to return the favor and ask Pete how his week was. The rest of the night was shot. I don’t think we got more than three or four hands in before closing time.

My faith in the future is firmly intact. A recent sunset at the Accountant farmstead was a reminder and renewal of my faith in life, the future, the world around us and the beauty of life.

My polite interest in Pete’s prior week was all it took to open the gate and let it all out. Pete couldn’t stop talking about how awesome and great life was. Backwoods people live a frugal life due to environment. We can’t order pizza delivery. (There is no pizza delivery in our neck of the woods.) The closest shopping opportunity is 30 miles away and none of us miss the chance to be separated from our cash. (The card game is frequently brutal on the family budget. We play for dimes and a bad night could set a guy back a full dollar, dollar and a half. Like I said: brutal.)

Pete didn’t miss any of the highlights of our incredible modern world. We have internet (high speed!) here in the backwoods. Food is cheap and varied. The cost of living is cheaper than ever. We live longer and have medical technology to not only keep us alive, but to live better. A bum knee is a simple replacement today; in the past it was a permanent diminution to quality of life.

Debt is the only real problem messing up all the fun in our ultra-modern world, according to Pete and company. When things get tough (as if that is even possible today) you can reduce spending in all areas. You can cook more at home or turn down the heat/turn off the AC. You can walk or bike instead or burning gasoline. All budget items are easily reduced, expect debt payments. Those stay stubbornly locked in place regardless of events chipping away at family finances.

Pete retired fifteen or so years ago when he was about my age. He cut back even earlier, enjoying three day (or four) weekends. Now Pete is looking down the barrel of Social Security. Any day now he can pull the trigger and enjoy the influx of even more income. In Pete’s own words, he can’t spend what he already has! He has lived off an amount less than his Social Security check promises to be for years.

What Everyone Must Learn in College, But Rarely Does

Back to Jordan Peterson.

Peterson made it clear what college and a college education is all about. Most people think college is about learning a skill you can use to get a job. It’s not! College is where you must learn to think; a place where you must learn to articulate. That’s why he places such emphasis on reading good books.

Books have been a massive part of my life from an early age. I took a super early mini retirement in my young 20s to sit at home and read all day. There is no doubt the three or four years I bowed out of life to immerse myself in quality literature determined the success in all areas of my life.

My thirty year marriage has been the highlight of my life and still going strong. I learned from people who spent a lifetime together how to have that very thing. I read about raising good children, running a business, investing, personal finance, budgeting and taxes. I also took time to read novels with a powerful message.

So, if you go to college to learn how to articulate, think and speak, what are you to do with this superpower? “Stop unnecessary suffering,” according to Peterson.

Personal Mission

Money is only a tool. This is a personal finance blog firmly in the categories of tax, financial independence, early retirement and wealth building. But none of that is the underlying theme. I need to learn to articulate better, as Peterson suggests, to communicate this message. You don’t want money; you want to be useful!

The wisdom Peterson shares in a ten minute interview segment is a lifetime worth of knowledge. He shares another secret society is struggling with currently. He talks about how the 1% are not greedy bastards. He explains why you are not richer than you are. It’s because you are young! If you are a good steward of your money it will grow. Given time it will grow rather large. Your favorite accountant is a prime example. I’m currently on the top of the net worth list over at Rockstar Finance. I’m also a bit old to be telling people I’m considering early retirement. Give it another decade and I’ll be looking over the edge of late retirement (grow up, man!).  The truth is I had more time than folks in their 20s to accumulate my wealth. And as Peterson said, I’m not a greedy miser hoarding my money. I’m looking for new opportunities to reduce suffering in the world so to speak.

Life is so good today! When people whine and complain over how oppressed they are, I, like Peterson, am so disappointed. We can make a difference, but it will never happen complaining about everyone else!

The Accountant girls enjoying Frogg’s ice cream in Sherwood, Wisconsin.

My card-playing buddy, Pete, shares some traits with your favorite accountant. He doesn’t like to travel and has managed to live a life with far less traveling than yours truly has done. His wife likes to travel and does so with her friends. Pete happily drives his old truck (he recently bought a new one since the old one gave up the ghost) around the neighborhood playing with his solo rental property. He milked cows for a farmer just south of my farm for many years to pass time. If he gets bored and something pops up (it always does) he will do that for a while. Oh, and he stops at Frogg’s Ice Cream a lot in the summer.

If you get the chance to cure cancer, then do it! The suffering your will reduce in the world will be incredible! Most of us will make a smaller mark in the world. I’m here to tell you it’s okay to make a small difference. Just make a difference!  Daily incremental improvement compounds into massive results.

Pete provides shelter for a family and helps neighbors in need of fill-in help. He reduces suffering in his small way while living the life of his dreams. Maybe you prefer travel and grander endeavors. Awesome! We each need to play the role our personality allows.

I’m a lowly tax accountant. Yes, I reduce suffering by solving tax issues for businesses and individuals. I also contribute by sharing my experience and knowledge on this and other blogs.

Jordan Peterson makes it clear we need to learn to articulate because the world is in desperate need of people who can communicate a message, knowledge and information in an articulate way. I still have room to grow.

And good thing because I’m not ready to hang up my cleats yet.

 

* There are at least five versions of the Gettysburg Address, each with slight variations from the others, including word count. The Bliss copy is the most famous.

 

 

Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

Today we have a special feature. My daughter provided today’s post as promised last week. It is hard to capture the work she did in preparation to winning all those scholarships and the pitch contest. She practiced in front of anyone who would sit still long enough for her to get it out. She honed her presentation until it was as smooth as silk. I even tried to interrupt and distract her as she practiced so she would be prepared for anything.

A few notes are in order. When Heather says the pitch conext was organized by a local bank, local business owners and the college, know I was not involved in any way with the program and had zero influence over the results. I listened to Heather practice, but did not attend the event. I didn’t want to be a distraction.

I want to point out Heather mentioned hard work. Sorry to say you can achieve great things as long as you are willing to do the work necessary to succeed. Another point I hope people don’t miss is Heather’s encouragement to never give up. If one thing doesn’t work, research and study more and reapply. The prize frequently goes to the consistent and persistent.

Taking the Lottery Out of Scholarship Applications

by: Heather Schroeder

 

I’ve never been comfortable with bragging. I wouldn’t go around telling people I got the best grade on a math test or that I got accepted into one of the best colleges in the United States. This is something I just can’t get myself to do. So, when my dad asked me to write a blog post about a recent success I had, I had to tell myself that it’s OK to be excited about winning something.

I struggled when I was in primary school. I was in a special reading class as I couldn’t read at the level I needed to be at and I was equally horrible at comprehension and writing. My reading disorder continued throughout my middle school career and I thought, based on my experiences, that I would never be able to read. Once I entered high school and wasn’t forced to read, I willingly picked up a book at my high school library. In less than a year, I had read more than twenty books and suddenly I knew how to write. This was the starting point that has led me to where I am today—an entrepreneur, a mentor, and a teacher.

I’m currently a student at Fox Valley Technical College in Appleton, Wisconsin. Fox Valley Technical College has a 94% employment rate, the highest in the area. This was the first year that the college had a pitch contest for FVTC students. A local bank, several entrepreneurs in the area, and FVTC staff all supported and funded the pitch contest.

Naturally, I felt a need to sign up, but even though I signed up, there was no guarantee that I would be picked to be one of the eight finalists. Three months after I signed up, I got the email stating I was accepted as one of the finalists. I was rejoicing, and I felt like I was on top of the world. There was only one problem, though—I had a lot of work to do because my business was not what the judges were looking for. And if I wanted to win the grand prize, I needed to switch from being a solopreneur to an entrepreneur.

Think about it. I started a tutoring business with the intention of being the only employee and taking on as many clients as humanly possible. This worked great and was a nice way to have some extra cash coming in on the side; yet, I wasn’t making enough to survive. This is one of the reasons I decided to go back to college. I knew I needed an education, no matter how little or how much, to be taken seriously as an academic tutor.

I had one month to come up with a 90-second pitch for the Fox Trap Pitch Contest in hopes of winning the grand prize. First through third place were guaranteed a financial award. This is something I was bound and determined to win.

My adrenaline was pumping as I entered the room full of judges and FVTC staff. My entrepreneurship teacher was also running the show. I had to make him proud as my entrepreneurship teacher is the reason I’ve come so far. My pitch went great and the judges seemed interested in my teaching style I created and the opportunities for people in the valley and around the world to become employed by me. I’m an ambitious little thing that doesn’t let my size determine how big my dreams can be.

I won first place at the Fox Trap Pitch Contest. This was one of the first times I’ve seen myself succeed at something and then be told that I need to continue with my plan. I learned many things when I prepared and presented my 90-second pitch. The most important thing I learned was that writing a pitch is nearly identical in writing an essay for a scholarship.

When preparing my pitch for the contest, I had to identify a problem, identify the target market, identify the solution or solutions, and determine how my idea will make money. I also had to identify what I was going to do with the winnings. This outline is exactly how many scholarship essays should be written.

All scholarships follow the same general rules including determining the winners by how creative the applicant is, how well written the essay is, the quality of the information, and determining if the applicant is a right fit for the scholarship. When writing an essay for a scholarship, follow these simple rules.

  1. Identify the problem or identify the topic

When writing essays, research reports, and personal memoirs, the stories or the introduction introduces the audience to the situation. Research reports are the easiest when determining and solving a problem. With my pitch, I determined the problem by stating startling statistics and examples of why it’s important to help “at risk” students and students in special education succeed.

 

  1. Identify the target market or who you are trying to reach

Scholarship essays usually want applicants to write about issues that are affecting others in the United States. One scholarship I run across yearly is the drinking and driving scholarship that requires applicants to write about and videotape themselves on describing how they think they can help make people aware of the risks that come with drinking and driving. With my pitch, I determined my target market by identifying who I wanted to help. My target market is “at risk” students and students in special education. The target market for the drinking and driving essay could be people who drink often and take the risk of driving or college students. According to the college drinking prevention website, “1,825 college students between the ages of 18 and 24 die from alcohol-related unintentional injuries, including motor-vehicle crashes.”

  1. Identify the solution or what you think could be done in the future

When writing a scholarship essay, determine what you think could be done to solve the problem. My solution for my pitch was offering academic tutoring services for “at risk” students and students in special education and teaching these students by utilizing my teaching style, which has so far been a success.

 

  1. Identify what you will do with the winnings

Like with the pitch contest and writing scholarship essays, judges want to know what you will do with the winnings. I determined in my pitch that if I won I would use the winnings to go to China to determine if my business idea can work globally. With scholarships, determine how you will use the winnings. I usually state that I would use the winnings for housing, tuition, food, and supplies.

The last piece of information I can give is to research how to write scholarships outside of reading this blog post. I have given some valuable information, but there is so much more available online. I suggest looking on YouTube and searching for videos on pitch contests. These contests have great insight on how to reach your audience and make a difference in lives of others.

I wish you the best of luck.

May the odds be ever in your favor.

Endnote: Once again I encourage you to reach for your dreams. Heather is 23 years old and living her dreams. She is on her way to China for a month to teach in a few weeks. More opportunities are coming her way as a result. I don’t like to travel; she does. I never asked my kids to live the life I expected of them. I always encouraged they walk their own road. There will be bumps and even painful experiences. It’s part of life. But the journey is all worth it.

Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to skyrocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here.