Wednesday, January 25, 2012

Why We Seek Security Versus Freedom

By: Roshawn Watson


The traditional path of going to school, getting good grades, and obtaining a nice secure job is all too familiar. It is hard to be at odds with a path that has lifted millions out of poverty and provided sustenance for their needs. Moreover, not everyone is best suited to become full-time entrepreneurs. The challenge is not to demonize traditional employment but rather to have an honest discussion of the perils of focusing on job security instead of financial freedom. Here are three reasons why we seek job security instead of freedom.


We Seek Job Security Instead of Freedom Because We Lack Role Models



The most important single influence in the life of a person is another person who is worthy of emulation- Paul D. Shafer


The examples set before us serve as powerful influences of our behavior. All many of us know is how to make linear income with traditional jobs because that’s all that we have seen modeled. With linear income, you work and get paid once. Many can get by with this strategy, but the challenge arises when you can’t work (such as with a job layoff or sickness) or want to expand your income. I suspect when faced with this scenario, the proteges of successful businesspeople respond differently from most people.

Incidentally, that was the case for actress and producer Tori Spelling. After getting a relative pittance from her late father’s estate, she decided she was going to create for her family the lifestyle she had become accustom to. For example, she wanted to purchase their dream home, but it was out of their budget. Her husband said they needed to find a more affordable home, but Tori’s response was certainly a product of watching her late father create wealth. She said, “I’ll start a business....I’ll start several if I have to, but I want this house.” Did you catch that? She didn’t say “let me call my contacts so that I can find a job,” borrow more money, or shrink her vision to accommodate their budget. Her response to financial lack was to create systems that siphoned wealth into their hands.


We Seek Job Security Instead of Freedom Because Of Fear




Fear is pain arising from the anticipation of evil. - Aristotle

Fear is another reason why we seek job security rather than freedom. Fear is believing in the ability of something to harm you. That’s important because often our fears are much worst than reality. We sometimes give up on dreams because of the fear of falling flat on our faces.  I remember about 13 years ago, I told an authority figure what my plans were, and he laughed. However, after a few short years, he was no longer laughing. His inability to see me excelling in that area and his fear of my failure were immaterial. What was important was that I was willing to stretch myself into unfamiliar territory and dared to achieve my dream anyway.

Likewise, I encourage you to strategically step out of your comfort zones and prove the naysayers wrong. Sure, this will require faith and courage, but faith and courage are necessary to fulfill  great dreams, high goals, and  strong passions anyway . Often, our worst concerns are never even realized, and if they are, we will survive and emerge stronger. By eliminating (or at least controlling) our fears, there will be more opportunities to obtain freedom because we have already dealt with one of the biggest thieves of success: fear.


A coward dies a thousand deaths. A soldier dies but once

We Seek Job Security Instead of Freedom Because We Feel Trapped



Man is the only kind of varmint (that) sets his own trap, baits it, then steps in it. John Steinbeck

Another big stumbling block in pursuing freedom is being trapped (or at least our perception of being trapped). Here are some startling examples of how we become financially trapped:
  • We have a culture of debt. The government even gives you tax breaks for being in mortgage debt. Currently, the average US household debt to income ratio is about 1:1, meaning we collectively borrow just about as much as we take in. Many people must have jobs to service their debts in addition to meeting their daily needs. Moreover, since student indebtedness exceeds credit card balances, these loans represent additional financial burdens plaguing even some of the most highly educated and productive professionals.
  • Of course, there are also tax concerns as well. We’re taxed when we earn, save, spend, and invest. Many of the tax laws do not work in favor of traditional employees, and taxes typically represent our largest household expenditure. Being ignorant of the tax laws could mean that you are ignoring more tax-advantaged sources of income and other tax benefits that could help you escape the rat race more quickly.
  • Lifestyle inflation is another culprit. The McMansion may be nice, but freedom is much better. Be mindful that conspicuous consumption and significant wealth building are often diametrically opposed, particularly in the beginning. You should fulfill your dreams, but just don’t go broke trying to do so.


The point is there are many factors that can cause us to feel trapped seeking job security. Often, our own choices are substantially, and perhaps unknowingly, impacting our plights. Merely attempting to change our circumstances, such as obtaining new jobs, while ignoring the underlying contributions our own decisions have on our bondage is futile because we’ll inevitably end up in similar predicaments.  

For freedom, an expansion of our thinking is typically needful. For example, you don’t have to leave your job to become a skillful investor; many people can successful analyze investments, deals and transactions in their spare time. You can likewise be an accomplished business owner without leaving your job. Leverage your education, skill sets, and network to serve additional people. For example, consider creating and/or selling a product, becoming a speaker in your chosen area of interest, or freelancing. The biggest resource for most business owners during the start-up phase is typically personal capital anyway. Entrepreneur Daniel Lapin argues that employees need not be wage slaves. What a powerful revelation!

Closing Thoughts


In summation, there is nothing wrong with using a job as a means to fulfill your life’s vocation and to provide for your family. However, focusing on job security is dangerous because in these tumultuous business and economic climates, your only security is your ability to produce. Strategically adding other sources of cash flow to your household income can decrease your risks, allow you to explore untapped gifts and passions, and accelerate your financial goals. Don’t settle for the tenuous promise of job security. Seek your freedom today.

Lastly, if you like this article, please subscribe to my FREE email updates or RSS feed (reader), Retweet it, Like It on Facebook, Tipd it, Fark it, Stumble it, and tag it on Delicious. Also, click here to receive my eBook for FREE.

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The Architect Round Up

By: Roshawn Watson

It's been a few weeks since I have done a round up. Here are some uncommon articles and carnivals that I have participated in.

Thanks to all of my readers, subscribers to this site, and followers on twitter (all 6100 of you!). I also thank the sites that have featured posts from here in their round ups and those that accepted my two recent guest posts. I’m so appreciative to all of those who have supported me for some time now and to my brand new readers. Thanks for helping me champion financial literacy!

Uncommon Round Up


  1. Be The Architect of Your Own Life (Pick The Brain) - This empowerment post quotes Leonardo Di Vinci, career coaches, and much more. It resonated with many, and several stated that it was insightful, so I naturally want to share it with you.
  2. In God We Trust: Your Money And A Higher Power (The Simple Dollar) - This is a high-level, thought-provoking post. All too often people are so used to providing excuses for their lack of productivity, that they will convincingly justify doing nothing for a prolonged period of time in the name of religion.
  3. Let There Be Light (Money Cone) - This scholarly article is an easy pick for me. In addition to being well-researched and including figures and tables, it presents the data for incandescent, CFL, and LED bulbs in an accessible way. If you are looking for an authoritative article on the subject, this is a very good choice.
  4. Consumer is King, Believe It or Not. Now Act Like One  (One Cent At a Time) - Did you realize that consumers are royalty? To be perfectly honest, we often forget just how much power we hold. If we change our conduct to be more kingly, you’ll be surprised by the response.
  5. 31 Days to Improve Your Financial Life (PT Money) - Philip had put together exhaustive posts all month long on improving your finances. I was so happy that he included December’s unrealistically high goals post in this edition.
  6. 5 Jaw-Dropping Financial Advisor Interview Questions (The Free Financial Advisor) - Average Joe present five good questions to ask when hiring a financial advisor. I think these questions actually apply to other professionals as well.
  7. The 10 Steps Between a Vague Idea and Definite Success (The Money Principle) - I enjoy posts that make me think. Lately, I’ve been discussing many success principles. In this article, Maria outlines the how to move into success from a non-specific idea. It is an interesting read.
  8. Retiring Abroad — A Few Things to Ponder (101 Centavos) - This post prompts the reader to work through some of the practical issues of retiring abroad. Unfortunately, it is not all palm trees and hammocks.
  9. 5 Signs You May Be Trapped in a Dead-End Job (Invest It Wisely) - Being professionally trapped can be disheartening and mentally and emotionally damaging. If you feel trapped, then consider the steps to get unstuck. I certainly don’t want to sound trite, but I also don’t want to advocate staying at a job you hate for 40 years.

Other Honorable Mentions: Thanks to Barbara Friedberg, Net Worth Protect, and Debt Blackhole Thank you for your support as well.

Carnival’s I have recently participated in:

Best of Money Carnival
Best of Money Carnival #133 @ One Cent At A Time (Editor’s Pick)

Carnival of Personal Finance
Carnival of Personal Finance #340 @ Financial Success for Young Adults
Carnival of Personal Finance #341 @ Money CactusCarnival of Personal Finance #342 @ Sweating The Big Stuff
Carnival of Personal Finance #343 @ Wealth Pilgrim
Carnival of Personal Finance #344 @ Diva In Debt (Editor’s Pick)
Carnival of Personal Finance #345 @ Matt About Money (Editor’s Pick)

Carnival of Financial Camaraderie
Carnival of Financial Camaraderie #12 @ My University Money
Carnival Of Financial Camaraderie #13 @ Christmas Edition @ My University Money
Carnival of Financial Camaraderie #15 @ Boomer and Echo
Carnival of Financial Camaraderie #16 @ My University Money
Carnival of Financial Camaraderie #17 @ Financial Success for Young Adults

Festival Of Frugality
Festival of Frugality #310  @ Help Me To Save
Festival of Frugality #312 @ The Magic Penny (Editor’s Pick)
Festival of Frugality #320 @ Squirrelers

Yakezie Carnival
Yakezie Carnival @ MJTM
Yakezie Carnival @ Broke Professionals
Yakezie Carnival @ Prairie Eco Thrifter
Yakezie Carnival @ Little House In The Valley

Totally Money Carnival
Totally Money Carnival #46 @ Help Me To Save
Totally Money Carnival #48 @ Help Me To Save
Totally Money Carnival #49 @ Mother Miser (Editor’s Pick)
Totally Money Carnival #50 @ Family Money Values

Wednesday, January 18, 2012

Do You Have The Courage To Be Wealthy?


By: Roshawn Watson 

Many of the activities required to become a self-made multimillionaire involve forsaking conventional wisdom and overcoming adversity. The path to great wealth is often the road less travelled because the journey can be uncomfortable and lonely. It often requires bucking societal norms on spending, indebtedness, investing, and vocation. One must have resolve and courage to follow such a path. Let’s explore three ways courage can be instrumental in building wealth.

Courage Is Important Because of the Risks


One key area that shapes many of our financial and professional decisions is risk. Lacking courage when facing risks can be detrimental. Most millionaires are self-employed, business owners, and/or fastidious investors. Some have navigated the professional or corporate jungles to achieve high levels of responsibilities. Accordingly, millionaires deal with risks that would unnerve many.

I recently learned points from a Morgan Stanley managing director regarding professional risks. She was very bullish on gaining additional levels of responsibilities and taking on new challenges on the job. She advised young professionals to adopt a similar mindset. She questioned the wisdom and safety in ducking for cover during an adversarial situation. In her own words, if the bullets are flying, ducking will not necessarily spare you. By keeping your eyes open, you can at least see what’s coming your way. She recommended being comfortable with F.E.A.R. (False Evidence Appearing Real) and thriving. Her words ring true, perhaps more so in the current climate than ever before.

It’s hard to gain a competitive advantage by always playing it “safe.” Taking strategic risks is often necessary to dominate a market or even a small niche. Regardless of whether you are contemplating starting your own venture, increasing your positions in paper assets (such as stocks and bonds), or exploring an unconventional career path, remember a) there’s a reward for merely trying and b)  there are also risks involved in “playing it safe.” Have a reality check regarding risks. The wealthy don’t avoid risk, and neither should you.

Sometimes the greatest risk is not taking one

Courage Is Important Because The Path Is Lonesome


Sometimes people are so fickle. When watching the Tudors, one thing I noticed was how quickly the public and royal sentiments changed towards “noble servants.” It didn’t matter whether you were Cardinal Wolsey, the Duke of Sulfolk, or Anne Boleyn, you could go from saint to trash in Henry’s court in a matter of days without changing your activities, faithfulness, or your beliefs. Even today, we’re just as capricious. The same people who are criticized and ridiculed for their differences become celebrated as innovators and visionaries after a little success.

With respect to wealth accumulation, dealing with the discomfort of being different and criticism is particularly important. First,  a high-consumption lifestyle is at odds with accumulating and maintaining high levels of wealth. Most millionaires do not get huge paydays each year.

  1. Fewer than five thousand of the nearly 100 million US household will earn $5 million in a single year.
  2. The majority of millionaires earn a small fraction of $5 million in a year.
  3. Approximately, two-thirds of millionaires are worth less than $2.5 million.
The point is,  it is the tortoise’s approach (consistent investing over time and frugality), not the the hare’s approach, that leads to prosperity and wealth accumulation for most millionaires.  Second, paucity of vision or lack of care may cause the people around you to not appreciate the difficulty in decisions you must make. Standing alone in the truth is perhaps one of the most challenging aspects of becoming successful, especially when those who disparage your efforts continue to play with little thought of tomorrow. Somehow, broke people afford everything!

When broke people make fun of your financial plan, you’re on the right path.- Dave Ramsey

When you feel lonesome, remember that 1) your dream does NOT require the approval of everyone you love, and 2) the same people who malign your priorities and assassinate your character may become your allies tomorrow.  People are fickle that way.

Courage Is Required Due To Adversity


A gem cannot be polished without friction, nor people perfected without trials. Chinese proverb

Some people seem to feed off of the havoc they create, and the more successful you become, the bigger the target is on your back. I’m convinced that poisonous people sometimes cause trouble to distract attention from their own lack of accomplishment. Most productive people I know don’t have time for drama.

Regardless of whether it’s dealing with a critical person, failing to meet ridiculously high expectations, facing outright lies, or competing with the nonfriendly, when you attempt to do something great, you will face adversity.

Let me give you an example. Sylvester Stallone was a struggling actor and writer when he became so inspired by the Muhammad Ali fight with Chuck Wepner, where Wepner refused to quit against perhaps the greatest fighter of the world, that Sylvester reportedly wrote for 20 hours straight. The product of this period was the script to Rocky. He  pitched his script to movie producers, and they loved it, BUT they wanted to cast another actor as the lead. In fact, they raised Sylvester’s payout to $325,000 to sell the script and NOT star in his film. At the risk of losing the script, the producers finally settled on paying him $35,000 for the script AND casting him as the title character. This occurred during the 70s, so in inflation-adjusted dollars, the original payout that Sylvester walked away from would exceed $1.3 million.

What value do you attach to YOUR dream?

Today, Sylvester Stallone’s main movies have grossed upward of $2.6 billion. Imagine if he had given in to the negativity regarding his abilities, looks, and chances of making it amongst the rich, famous, and beautiful. Instead, he held on to his convictions and excelled admirably. It was passion and courage that allowed him to reject every deal involving relinquishing his dream.

Your conduct under pressure will reveal the true measure of your character.

Closing Thoughts


Courage is defined as mental or moral strength to venture, persevere, and withstand danger, fear, or difficulty. Courage is important to wealth accumulation because it takes strength to defiantly proclaim that the culture of debt is ridiculous, to resist conspicuous consumption, to start businesses when pundits argue “9 out of 10 businesses fail,” and to invest in the markets during “the worst recession since the Great Depression.” It take strength to tell relatives NO when they try to set YOUR financial priorities. Indeed, wealth researcher Thomas Stanley listed courage as amongst the most common and important characteristics of millionaires. I may not know the value of your dream, but I admonish you not to sell yourself short. Take courage, live well, and PROSPER!


Lastly, if you like this article, please subscribe to my FREE email updates or RSS feed (reader), Retweet it, Like It on Facebook, Tipd it, Fark it, Stumble it, and tag it on Delicious. Also, click here to receive my eBook for FREE.

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Editor’s Note: If you want to learn more about SOPA and PIPA, head over to Stop American Censorship.