Killing Sacred Cows Blog

The following are tips that one can do to increase cash flow and identify resources more productively to be applied towards your economic well-being and/or Soul Purpose.  Remember, that one's perspective is more important than just going through the motions. The key is discipline to be productive with the money freed up rather than spending it on consumptive or destructive items. Each of these points can be utilized to recapture lost dollars, but can also be abused in a way that could lead to financial misery.

 1. Track income and expenses and eliminate expenses that are destructive to your human life value and Soul Purpose.  This could include overdraft charges, excessively eating out, monthly charges for memberships that aren't being utilized, etc.

 2. Look to getting some food items by finding deals from local "grocery gurus."  Warning - do not just buy things because they are on sale. However, if you are going to purchase certain items anyway, then see if you can capitalize on special sales. For those in Utah, the web link for weekly specials is http://www.pinchingyourpennies.com/forums/forumdisplay.php?f=62 (Yes, I do think the name of the website is very ironic considering the conversation).

 3. Increase tax exemptions.  If you receive a tax return each year, increase exemptions to receive it on a monthly basis rather than yearly. Consult with your tax accountant to know what number is optimal.

 4. Temporarily pay minimum payments on credit cards and other loans.  If you are making extra principal payments or anything beyond the minimum payments, identify that as a resource. If you do not know what else could be more productive than paying down high interest credit cards, then please put it towards your credit card payments.  If you are paying extra on your loans, be willing to question if that is the highest utility of your dollars.

 5. Consider stopping contributions to 401(k)'s and IRA's.  This may be an obvious choice considering the volatility of the markets. Most would have been better in money market accounts over the last few years, if not the last 10 years.

 6. Sell off any unutilized assets.  This may be time to clean your clutter and get rid of things that are only taking space but providing no utility in your life. Look to sell these off or donate to increase tax exemptions.

 7. Get rid of duplicate insurances.  If you have life insurance tied to certain loans, it will likely be more cost efficient to get an individual term policy. Most life insurance offered through banks or credit unions are expensive for the coverage and benefit the banks more than the client.

 8. Consolidate, refinance, or negotiate lower interest rates on loans.  Many of us can call our credit card companies and ask if they will lower the current interest rates on credit cards or other loans. Try it!  You may be surprised.

For more details and podcasts on the subject, go to the Fire Your Financial Adviser website.

How To Influence the External Economy With Internal Decisions

Every expert in America agrees that our economy is under serious strain. We even hear speculation that the U.S. is headed for another Great Depression. The government bailout of Fannie Mae and Freddie Mac will cost taxpayers $5.3 trillion. The proposed $700 billion bailout of other notable financial firms is a Band-aid approach to a gaping-wound quandary.

So what is the long-term solution? Does the current crisis represent the end of America as we know it? What can you do to contribute to a more secure and prosperous economy? Is it possible for you to prosper in economic downturns?

The first step to identifying solutions is to accurately diagnose the problem. While the reasons are diverse, our current predicament is the product of three primary factors, on three different levels: 1) the government manipulates the economy with the money supply, creating artificial demand and warping natural market forces, 2) corporations have been guided by shortsighted greed, and 3) average Americans consume more than they produce.

Since corporate behavior and government policy represent individual action, the only long-term solution to America’s economic woes is for individuals to be the change they wish to see in the world; to focus more on their internal economy than on the external economy.

Internal v. External Economy

The external economy represents everything outside of you: GDP, the Federal Reserve, international trade, supply and demand, manufacturing, etc. Your internal economy is the sum total of the value you offer to others minus the factors that limit your production. It is your human life value—your knowledge, skills, abilities, relationships, confidence, etc. It is what happens within you that determines your material and spiritual prosperity, or lack thereof.

Our pressing crisis hasn’t happened in a vacuum; it’s the result of a steady shift in culture, based on personal, internal decisions. We can blame the government and corporations all we want, but government agents and corporate executives are common Americans like you and I, doing common things. There’s little you and I can do to influence government policy during this crisis, but there’s an infinite number of things we can do to ensure security and prosperity regardless of what happens in the external economy.

Do you want to learn and grow, or complain and wallow in the misery? If you choose the former, then it’s time to grow your internal economy. But how, exactly, is this done? Your personal economy will be strengthened and vitalized by living the following five principles:

1. Entitlement is the enemy of prosperity.

Stop waiting for someone else to solve your problems and give you economic security. Contrary to New Deal lies and cradle-to-the-grave propaganda, the only things you’re entitled to are life, liberty, private property, and the pursuit of happiness. The government owes you nothing but the protection of your unalienable rights. Corporations can give and take benefits as they please.

Your suffering during hard economic times will be directly proportionate to the degree to which you feel entitled to “security” and benefits from any person or institution. You’re entitled to the fruits of your own labor and ingenuity—nothing more or less. Don’t abdicate your responsibility to prosper to funds that you don’t understand, investments that you can’t control and that are not collateralized, and managers that you don’t know. Take full responsibility for your money and your life.

2. Produce more than you consume.

The average American—while complaining about the federal budget deficit—spends more than $1.20 for every dollar that he earns. Contrary to the crippling myth that “consumer spending drives the economy,” production drives the economy. Production—creating value for others in a way that they compensate you for it—is what gives any individual or entity the ability to consume.

You can’t control government spending. But you can control your own. Spend less than you earn. Never, ever borrow to consume. Pay off consumer debt as fast as you are able. Cut up your credit cards if that’s what it takes. Increase your production through education, better marketing, a career change, etc. Save and invest ten percent of your income. Do whatever it takes to ensure that your home economy produces more than it consumes; this is the best way to fight inflation.

3. Value creation comes before desire fulfillment.

Who has more money—you, or other people? Obviously, other people. How can you get others to give you money? By providing something to them that they value more than their money. Greed and selfishness are at the basis of so many of our current problems. The wise understand that they can only get what they want by first focusing on what other people want; they are still self-interested, but they are not selfish.

What do you have to offer that other people want? What suffering exists in the world that you have the ability to alleviate? What do other people need and how can you provide it efficiently? Dollars follow value—creating value for others is the only legitimate way to meet your own needs.

4. Integrity is worth its weight in gold.

Corporate executives are being caught in lies like flies to honey. But what about you? Are you going to unfairly take advantage of others in the name of “Everyone else is doing it?” Or will you take the road less traveled and be a person of your word, a person who others can trust in and rely upon? Does your private life reflect your core values?

When times are hard, people look for stability. Integrity provides stability of character, drawing others toward you. Integrity alone is a magnetic marketing tool and will boost your ability to influence and serve others, and therefore profit in spite of crises.

5. Find and live your Soul Purpose.

Soul Purpose is your unique set of talents, abilities, values, and passions applied productively and effectively, making tremendous impact upon the world and bringing the highest levels of joy and fulfillment to you and everyone you touch.

You were born for something wonderful. Are you doing it? Do you love to get up every morning? Are you energized by your career? Does it continually stretch you to achieve your fullest potential? Are is it time for you to choose something different?

Prosperity is much more than dollars, investment accounts, and toys; it’s the internal joy that you experience by applying your best work to pressing problems. Soul Purpose is the best long-term investment.Find what you were born to do and do it—your prosperity will increase exponentially.   


The problems we face are big—which means that there’s now more opportunity than ever to create value by alleviating suffering. Big problems require bigger solutions, and bigger solutions pay bigger dividends. The positive side of the financial meltdown is increased awareness; there is now enough pain for us to course-correct and overcome the economic myths of the last century.

The solution isn’t to elect new leaders any more than changing drivers on a broken car makes the car run better. The solution is for common Americans to reform the economy from the inside out by eliminating the entitlement mentality, producing more than we consume, creating value for others, developing impeccable integrity, and living Soul Purpose. If you don’t know what to invest in—especially during hard economic times—your best bet is to invest in yourself through education. After all, the external economy is nothing but a reflection of the aggregate of internal economies.

Garrett had a great opportunity to be on the KTLA Morning News. Watch the video.

Sandwiched between the latest "Twilight" vampire book and Obama-bashing tome on Amazon.com is the No. 11 ranked "Killing Sacred Cows," financial advice by entrepreneur Gunderson.

Click Here to Read the Full Article

By Chris Miles  

This is an essay I recently wrote about independence which I feel pertains to our discussion of overcoming myths and becoming financially free.

Could independence be no more than freedom from oppression and domination? Conversely, is independence merely unobstructed freedom to do anything we desire with no fear of intentional or unintentional consequences? Absolutely not! The more freedom we expect, the more responsibility we inescapably accept.

Today, we see a pandemic paradigm governing humans to blame anyone when things go awry. Thomas Jefferson proclaimed, "Timid men prefer the calm of despotism to the tempestuous sea of liberty." Why do we shrilly scream for independence and utter whining whispers at the first sight of responsibility?

To many, independence means to be "in dependence." They fancy others slavishly sowing so they can slothfully reap. They "fight" for freedom, but ultimately, beg for bondage. They want what has never existed - freedom from consequence. Indisputable independence is the freedom to pioneer one's path and be accountable for the destination.

My challenge is to consider what areas of our life and finances are we not taking on responsibility. Are we blaming market events, investors, financial institutions, oil companies, politicians, etc for our problems rather than creating solutions? Why can we see so clearly others' errors which are somtimes trivial and are so blind to our own destructive faults? What possibilities would arise if we focused the energy we waste complaining and repeatedly pointing out others' mistakes towards production and creating greater happiness and financial freedom through discovering soul purpose? What blessings are we failing to see because we focus more time and energy on the lack thereof? I challenge each of us to objectively ponder these questions, journal our responses, and identify ways to further focus on our financial independence.

| Book Review | Response #1 |

In a recent review in the St. Petersburg Times, personal finance editor Helen Huntley writes, "[Killing Sacred Cows] makes some good points. I agree that you need to take responsibility for your own financial success and you should invest in yourself and your money-making potential. However, the main purpose of the book seems to be to convince you to cash out your 401(k) -- he doesn't mind that you have to pay income tax and possibly a 10% penalty -- and pay Gunderson to show you how to manage your money. If you 'apply' for his program and you have enough money, you just might be accepted!"

We appreciate this perspective because it brings out three valuable things to discuss and clarify: 1) The primary focus and main purpose of the book, 2) Garrett's position on what you should do with your 401(k), and 3) The purpose of Garrett's "program" in question (the Financial FastTrack process that qualified participants of the 401(k) Hoax Challenge experience) and the reason behind the application process.

This post will deal only with the first point, and the second two will be discussed in subsequent posts. And none of these posts are meant to single out Helen Huntley; we simply raise these points because they are common points, indicative of typical perceptions about the book and its message.

 

The Main Purpose of Killing Sacred Cows

While Mrs. Huntley graciously agrees with the book's focus on personal responsibility and investing in oneself, her perception of its main purpose is reversed; what she mentions as "good" points (personal responsibility/investing in oneself) are the main points, and what she states as the "main" point (detailing the risks with 401(k)s) was a good point taken out of context. It's an understandable mistake, especially when one hasn't read the entire book, as Helen admits in her review.

As stated in the Introduction (pg. xvi),

"The purpose of this book is to train your mind and help you to cultivate the ability to be able to see through the myths that limit wealth creation. If this is accomplished, you may well experience a productivity breakthrough on an unprecedented scale...

"My purpose isn't so much to identify and answer every myth for every reader as it is to just get readers thinking about the rhetoric, propaganda, and traditional 'logic' that we're fed through the financial media."

Wanting to give her the benefit of the doubt, Mrs. Huntley's remarks made me wonder if perhaps we don't emphasize enough personal responsibility, stewardship, investing in oneself, and Soul Purpose, and if we over-emphasize the problems with 401(k)s.

Not wanting to go on gut feelings and knee-jerk reactions -- as those who are entrenched in financial myths often do -- I took a scientific approach, did a lengthy and in-depth search of the book, and extracted the following data on the major concepts that we focus on. The appearances of the words that I highlight below were only counted if they were in the proper context. (In other words, I could have counted much more, but I wanted to be as objective and fair as possible.)

In the context that I speak of, the word "responsibility" appears 77 times in the book, with 22 uses of the variation "responsible." "Stewardship" is used 30 times; "steward" 20 times. We speak of "Soul Purpose" on 124 occasions throughout the book. And most importantly, 61 times we use variations of the word "invest" in the context of teaching that the best investment one can make is an investment in themselves through education. The total uses of each of these words and phrases in their proper context -- which together represent our primary focus -- comes to 334.

Constrast that to just 78 mentions of "401(k)s."

(I eliminated all occurences of these words and phrases that were not relevant to the actual content of the book, such as references in the table of contents or the index.)

Clearly, something went wrong with this reviewer's analysis, yet it provides an excellent opportunity to illustrate the power that financial myths can have over us -- when subject to the myths we see only what we want to see. We see the things that coincide with our current beliefs, and casually reject anything that challenges our beliefs. Since 401(k)s are so popular, anything that challenges them will stick out much more than the things with which we agree, or think we already know.

As we learn in the Introduction of Killing Sacred Cows (page x),

"It's human nature to relate things that we are unfamiliar with back to the things that we are already familiar with, or with the things that we think we know. But what if the things we think we know are false, or at least misguided? How can we make sense of new things when our frame of reference is distorted or not founded in truth? One of the most critical steps we can take toward financial freedom is to accept the possibility that what we though to be true may be completely false, and that there are infinite truths we have yet to learn."

The main purpose of Killing Sacred Cows is not to convince any individual reader to cash out their 401(k). In fact, such a direct exhortation is not even a purpose of the book. We completely agree with Helen Huntley that to make such a blanket recommendation -- without knowing the context of the lives of individual readers -- would be highly irresponsible and inappropriate.

If any of our readers have taken this to be the core message of the book, we stress that it was not our intention. Targeting the 401(k) was a way to highlight the importance of self-reliance, responsibility, and stewardship -- not to make a specific financial recommendation to readers.

While we do, quite strongly and in no uncertain terms, detail the inherent dangers of 401(k)s, qualified plans, and the accumulation theory of wealth creation, we never once recommend to any reader that they should liquidate their qualified plan. (This will be discussed in the next blog post.)

The main purpose and primary focus of Killing Sacred Cows is to teach that individuals must take personal responsibility for their prosperity, be wise stewards over their assets and resources, invest in themselves, and live their Soul Purpose. It is to teach people that they are their most important investment -- not products, techniques, or strategies. It is to teach that what happens within a person determines what happens in their external world. It is to detail universal, timeless principles of wealth creation. It is to teach that these things are far more important than -- and determine the success of -- financial products, techniques, and strategies.

This is contrary to much of the traditional financial services industry which teaches people that the right financial products are what matter. Such advisors often recommend products without knowing the full context of their client's lives. We're taught that just throwing money into mutual funds and qualified plans and letting them sit for 30 years -- without knowing what they're doing, where the money is going, who is managing it, how to control it, and how it's creating value in the marketplace -- is all that's needed to make people's retirement dreams come true.

Garrett's point is that people need to take a step back from that flawed approach, invest in themselves, consider every angle, know what they're doing before they invest, and invest based on a macroeconomic plan that takes every aspect of their financial situation into consideration. People must stop believing that financial products -- such as 401(k)s -- have intrinsic value and that people hold the only intrinsic value.

| Book Review | Response #1 |

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Click Here to See the Building Walkthrough Garrett Mentions in the Video

Billionaire investor Warren Buffett was once talking to a group of college students and told them, “I am really no different than you. I may have more money than you do, but money doesn’t make the difference…

"If there is any difference between you and me, it may simply be that I get up every day and have a chance to do what I love to do, every day. If you want to learn anything from me, this is the best advice I can give you.”

If you’re unhappy with your life, the chances are that you are not providing a fraction of the value that you’re capable of. Happy people who focus on developing their unique gifts always produce more value for others and alleviate more suffering in the world than those who are routinely unhappy.

What will it take for you to live the life you love? What will be the effect in your personal life? What will be the effect on the world at large? How many more people can you impact by living your ideal life and doing what you were born to do? How many problems exist and how many people are suffering if you're not?

Getting Rich Your Own Way, written by Srully Blotnick, details a study that began in 1960 of 1,500 people representing a cross-section of middle-class America.

Throughout the twenty-year study, they lost almost a third of participants due to deaths, moves, or other factors. Of the 1,057 that remained, 83 had become millionaires.

When Mr. Blotnick’s team interviewed participants at the beginning of the study, the most widely shared impression they found was that “great wealth can come to you only as a result of doing things you don’t want to do.” They also noted that from the start, most participants assumed that chance would play a decisive role in determining who became wealthy.

They found that the 83 successful people shared five characteristics: They were persistent, they were patient, they were willing to handle both the “nobler and the pettier” aspects of their job, they had an increasingly noncompetitive attitude towards the people with whom they worked, and their investment activities—aside from their main career—consumed a minimum of their time and attention.

Writes Blotnick, “We originally expected the people in our sample to become wealthy by taking the money they earned at work and investing it wisely, in such things as stocks, bonds, and real estate…we thought there’d be no way for [them] to become rich unless they used their surplus income to generate more income…It didn’t work out that way…More often than not they made little or no money investing.”

In short, what the study unveiled was that the main source of wealth for the successful participants was that they found something they loved to do and they did it well. “In case after case,” says Blotnick, “they did increasingly well occupationally, while their pursuit of investment profits proved to be largely a waste of time. in the long run, it was their work which made them rich.” Blotnick concludes that investing in yourself, what you do, and with whom you do it are the most important determining factors of wealth.

Are you living your Soul Purpose ? If not, it's highly unlikely that you will achieve financial freedom.

“A person can have many talents and gifts and do many things exceptionally well, but your vein of gold, ah...That is the thing you do superbly.”     -Julia Cameron  

America's earliest citizens believed in an ideal that they called Providence, which is something that has been largely forgotten today. To believe in Providence means two things: 1) You believe in a Creator that governs, and 2) You believe that you were born with a unique mission that you alone can perform, and that the world suffers if you don’t fulfill your mission.

Providence is having a relationship with your God that gives you the faith and motivation to fulfill your unique mission regardless of the consequences.
Another way to say Providence is “Soul Purpose.” Soul Purpose is your unique set of talents, abilities, and passions applied productively and effectively, making tremendous impact upon the world and bringing the highest levels of joy and fulfillment for you and everyone you touch. It’s the mission that you were born for; it’s what you would do every day even if you didn’t get paid for it. When you’ve truly found your Soul Purpose, you create so much value for others that you’re almost inevitably paid very well indeed.

How do you know if you are living Providence and Soul Pupose? A good indication of that is if you can't wait to jump out of bed and begin every day with excitement and purpose. If you find yourself dreading going to work you know that something must change.

The best thing you can do for yourself and for society is to find and develop your passion--to revive the spirit of Providence in your own life and live your Soul Purpose.

Recommended Resources to Help You Find Your Soul Purpose:

Kolbe A Index

Strengthsfinder

Enneagram Institute