The Personal Finance Learnographic

First up, the news – We, the Learnographics team, are back with a new learnographic. A learnographic, as you might have guessed, is a synthesis of learnings from a book (or a couple of books ona  topic). In the spirit of starting with “why,” I’d like to share our thesis on learnographics –

We believe that our progress as a species occurs when we find, build and share great ideas. We also believe in the power of learning, reflecting, and sharing ideas in living happy lives. Books are a big source of learning and ideas and we’ve embarked on a mission to spread ideas from our favourite books.

After our first learnographic on willpower last year, we took a bit of a break as we thought about how we wanted to make this process sustainable. Our promise for this year is release 4 learnographics by the end of the year – 2 in the first half and 2 in the second. Producing these is a real labor of love – it involves us reading a bunch of books, synthesizing them, picking a book or two that we think would make for an interesting topic, illustrating them so they are easy to follow, and then sharing them with you.

We picked personal finance as it is a topic that we believe ought to get all the attention it can get. In this case, the learnographic is a synthesis of 6 books, 3 interviews, and 1 blog post.

We really hope you find it useful. Please click on the image below to see the full learnographic.

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And, if you like it, please do share and spread the love. :)

Be surprised when things go as per plan

“I wait for you to make a plan so I can make a complete mockery of it and mess it up.” | The Universe

If the universe could talk, I’m certain that would be something it would say. As human beings, we attach ourselves to positive outcomes more often than we should and then waste a lot of energy worrying and cursing when our plans inevitably go awry.

The only way around is to consistently take the opposite stance – be surprised when things go as per plan… because, when you are sitting amidst chaos today having just watched your grand plan disintegrate in the last few hours, you ought to know that all is normal in this world.

No reason for annoyed reactions. Smile, remember the duck – keep calm above water and paddle hard underneath, and carry on.

Tools of the resistance

The tools of the resistance are obvious and repeated – guilt, fear, inadequacy, embarrassment, and insecurity.

As Steven Pressfield shared in the war of art, Adolf Hitler found it easier to wage a world war and kill innocents rather than face the trials that would accompany his childhood dream of being an artist. Some part of it might have been in jest but the point remains. These may be simple tools but there is no doubt they are powerful. Days can be spent wallowing in these emotions and a lifetime can be spent in chasing meaningless goals to keep these emotions at bay.

So, what’s the solution then? There is none. There is a process, however. The process involves reflecting, recognizing these tools at work, reminding ourselves that we have no time to engage with these emotions, thinking about what really matters, and battling on. An intentional approach against these emotions is the stuff of a real hero’s journey. Make no mistake – it is a difficult war and the choice to fight it is ours and ours alone.

The results are not guaranteed (are they ever?). But, the process is sure to be worthwhile.

Inspiring communication…

…always starts with why.

I saw an email the other day that made me feel uneasy. I couldn’t explain why. I finally realized the issue – it didn’t start with why.

A “why” or purpose is a simple and clear articulation of what you’re trying to achieve.

Even if it is communication about a 14 step process you’d like someone to follow, communicating the purpose helps. Writing about the purpose helps us frame our thoughts better and communicate the idea better.The purpose leaves it open for the receiver to use his brain if he wants to and allows for the system or process to be improved upon. It even leads to a better adherence of the process – “why not?”is best asked after understanding “why?.”

And, most importantly, it has the ability to convert a bloody boring instruction email to a very inspiring one.

Start with why. It just works better.

Things that come easy

I just finished reading Boomerang by Michael Lewis. As I was putting down my reflections, I was reminded of this idea from books on personal finance – every decade or so, there comes a craze where there seems to be easy money to be made. It happened with the dot com bubble, with cheap credit in Iceland, with the real estate bubble in Ireland, and numerous other examples from history. This lure of easy money results in the complete disregard of weakly held principles. Financial institutions throw away norms that have served them well for a hundred years to chase the new craze. Everyone gets caught in the insanity and the few who don’t look like fools.

The only thing that is a constant is that lows that inevitably follow are just as high as the highs that preceded it.

So, beware things that come easy. They are sure to go as easy as well.

Now let’s see how we all fare in the next bubble. :-)

Play for Hope – $10 to make a difference

We, at Help2Grow.org, are proud to support Pudiyador – a charity that has been changing lives by educating the underprivileged community in Chennai, India, for the past 10 years.

Pudiyador’s leadership team want to take 45 of their kids to India’s first 5 day Ultimate frisbee camp for the underprivileged and they need help. Most of these kids have never been outside their hometown before.

We have a campaign on Bitgiving.com –  a crowdfunding website for social initiatives – to help them raise their money. Our target is INR 40,000 and have started out with a target of INR 20,000 (roughly USD 341). So, that means $10 from you could go a long way to help these kids. Please watch the 2 minute video below and the note from Liz and join us by contributing here. And, if a contribution is not possible, we’d appreciate it if you shared the love..

The campaign is on http://bitgi.co/playforhope

Thank you for your attention and hope you have a great weekend.

PS: Please let me know if you have any trouble making the final payment and please don’t worry about any messages that say your card won’t be accepted. I am reachable on rohan@rohanrajiv.com/rohan@help2grow.org.


 

Hello there!

I am Liz, Program Manager for Sports at Pudiyador, a Chennai-based non-profit. We would like to take 45 of our kids to Surat for a one-of-a-kind Ultimate Frisbee camp.

Pudiyador believes in changing lives through education. We provide a safe, interactive, fun, and hands-on learning environment for underprivileged kids. For over 10 years, we’ve been running weekend and after-school programs for over 200 children every year across their centers in Chennai.

I am also an ultimate Frisbee enthusiast and I have been teaching the sport at Pudiyador the past year. We’ve seen how ultimate Frisbee changes the way our kids communicate, work with each other and approach life. We truly believe in the impact that play can have on child growth and development.

And we are keen on taking 45 kids to Surat for the National Youth Ultimate Frisbee camp. Most of them have never travelled outside Chennai before and are very excited.

The Surat Camp will be a first in many ways:
– the first sleep-away Ultimate Frisbee camp ever held in India.
– the first initiative to enable bonding and friendships between underprivileged children from different parts of India.
– the first ever camp of such a scale (160 kids from across India and 30 youth coaches).

At this point, we are short of INR 20,000 to make this trip happen. You can help make this happen! Any additional funds will go towards making the Surat experience extra special for our kids.

Thank you so much!
Liz

P.S: We believe that every rupee creates equal impact and hence, all our donations will be treated and rewarded with the same love.

People who don’t walk their talk are like..

..over leveraged banks without enough savings.

Savings come from a track record give have inherent credibility and trust. These savings work like real money – they are generally hard earned and easily lost or spent.

Once you lose that credibility and trust, you’re done. It’s a lesson we can’t take seriously enough given how easy talking is thanks to blogs and social media. Don’t talk about it unless you can walk the talk. Social media is like cheap credit and is really easy to over use without really showing any proof of savings. We all know how that story ends..

The good news (and yes, there is some)? Saving is a straightforward habit. It doesn’t take extraordinary skill – all it takes is some discipline and a will to keep on your path despite what “everyone else is doing.”

A couple of thoughts from Rush

I watched “Rush” a few days ago – the movie that details the rivalry of Niki Lauda and James Hunt. It is a movie that explores the contrast between two top racers – a passionate dare-devil Britisher called James Hunt and a clinical German called Niki Lauda. They raced at a time when F1 was far from safe – a death or two every year was commonplace – and brought incredible skill to a challenging and often punishing sport. Rush is about an epic rivalry that pushed both of them to do better.

The crux of the story is in their differing approach to racing. James Hunt (painted as the more talented racer) approaches racing with passion, love, and possesses the sort of dare-devil instinct that allows him to put his life on the line. His life involves multiple highs and lows with alcohol, women, and substance abuse – he’s the flawed superstar. Lauda, on the other hand, works the percentages. For him, racing is a profession and he’s out there to win. He refuses to race in conditions where he sees more than a 20% chance of death. He also understands every aspect of the car and often helps the technicians with the engineering. It makes for a great contrast and a very interesting story and, as the movie goes on, they develop a grudging respect for each other’s talents.

James Hunt eventually does win the world championship he always dreamed of. However, things go downhill very quickly after that. He loses focus (despite Lauda’s attempts to push him) and he dies aged 44. His story reminds me of that of Manchester United and Northern Ireland legend George Best. Best was the best player of the world at 22 but no amount of talent could save him from himself.

It is a telling reminder that talent is only one part of the equation of excellence and happiness. There’s a lot more to life than that and the boring traits of discipline and consistency rarely get the credit they deserve.

Lauda sums it all up brilliantly after a conversation with Hunt just after Hunt’s world title.

“Of course he didn’t listen to me. For James, one world title was enough. He had proved what he needed to prove. To himself and anyone who doubted him. And two years later, he retired. When I saw him next in London, seven years later, me as a champion again, him as broadcaster, he was barefoot on a bicycle with a flat tire, still living each day like his last. When I heard he died age 45 of a heart attack, I wasn’t surprised. I was just sad. People always think of us as rivals but he was among the very few I liked and even fewer that I respected. He remains the only person I envied.”

Understanding what drives us

There are 2 ways I know of understanding what drives us – our schedule and our track record.

The schedule is a short term measure while the track record is the long term measure. The track record functions as the real test while the schedule forms a check. A bit of soul searching might reveal what we’d like to think we’re driven by but the schedule and track record are the real answers.

If we haven’t done anything around serving the community ever, it is definitely not something we care about all that much. Words don’t get work done and only work done counts. And, if we haven’t spent much time with our family this week, it’s safe to say that’s not what drives us. The schedule reflects our priorities.

This doesn’t mean the answer to the “what drives us” question is set in stone. A detailed look might reveal things we don’t really want to talk about – free time, Facebook, television, etc.

We can begin to change it by fixing our schedule this week and the next. Over time, it’ll show on our track record.

Becoming immune

Even the best performers receive 1 star reviews and boos when they try something out that doesn’t work. “She should stick to what she’s good at.” But, it doesn’t stop them. The best performers consistently reinvent themselves because change is essential. If every song follows the style of the first hit, it’ll mark certain death.

While there probably is art and science to making change without alienating those who follow you, this post is about the other useful skill – building immunity. A 1-star review on Amazon, a boo when you are performing, or an insult to your face never stops hurting. But, over time, top artists learn to be immune enough so it hurts a little bit but not too much.

How? By doing what’s painful.

When you start out playing the guitar, there’s no way to avoid the pain caused by cuts in your fingers. Over time, however, those cuts lead to hardened skin which in turn mean less pain. The pain doesn’t ever entirely go away. We just become immune to its intensity. The pain is important because it shows we still feel and creating art requires us to be in touch with those feelings. The immunity, however, reminds us that there are things more important than that pain.

So, if you’re worried about being criticized, go do something (it doesn’t matter what) – the criticism will follow. if you’re worried about failing, go do something (again, it doesn’t matter what) – the failure will follow as well. Action -> initial encouragement -> pain -> failure -> more pain -> immunity -> creating stuff we are proud of.

Time to take the first step.