Thursday, February 7, 2008

Step 2

So the second step in changing the way you think about money (according to T. Harv Eker) is to understand how what you learned about money growing up has affected how you've acted as an adult.

Here is what I came up with:

I never expect to really make money from my writing. I have many writing friends who poke fun at aspiring writers who think they will simply write a book and live off the income. Most books sell less than 1000 copies. So if you get published AND the book sells more than 1000 copies, gosh, you are way ahead of the game. I never expect to write a book that would sell enough copies to bring in real income. Unless I change that expectation, what do you think are the odds of it happening?

Until I read Rich Dad, Poor Dad, I never thought much about non-job methods of earning money. Now, I consider such opportunities all the time, BUT.... much of my time currently is taken up by my day job, which I believe I need for income and medical benefits.

One of my 401K’s is in an Etrade retirement account, until now I have told no one that its value is lower now than it was the day that I opened it with a deposit from a former job’s pension fund. I viewed my failure with those stocks as a great disappointment and let it sour my desire to consider the stock market as a possible income source.

Because I felt people should only start a business if they had other money to fall back on, I waited for years to accumulate the ‘money to fall back on’. In the last 3 or 4 years I’ve realized I could wait my whole life for ideal conditions to make a career change or I can act now. I have chosen now.

Since I have been told it’s unrealistic to expect to quit your day job, I pace my efforts outside my day job. I think that I have only so much extra time beyond my family and job to put into any new ventures. It had never occurred to me, before now to think, “for six months I’m going to continue my day job AND launch my new business. It will be exhausting, but soon I’ll be able to focus just on my new business.” I never REALLY expected to have a new business venture bring me real money in less than a year.

SO..... where does this leave me. Now I need to realize that these thoughts represent only what I learned and are not who I am. Okay, so I'll ponder that a bit and write more another day. Till then...

1 comment:

Dan Blue said...

Hi Diana, I have been investing for several years in my 401k and for about two years with my own funds. Very risky, but with risk comes the potential for rewards.

My first year I lost over $16,000 and I had to take some money out of my 401k and take the penalty. Then last year through the first 3 quarters I made $103,000. In the fourth quarter of last year I lost $44,000 and so far this year I'm down $10,000 on one stock but un $8000 on my etrade stock. The Etrade stock I feel is very under priced and this is my opinion. So I currently own 30,000 shares in hopes that Etrade is bought out by mid march. I guess what I'm trying to say is alot of stocks are down not so much because of companies balance sheets is more due to the analyst's spooking the market and spreading fear making this a buying time. Your investment friend,