213) How to know if you are in your Comfort Zone?

You have heard from motivational seminars or your friends telling you that you are stuck in your comfort zone.

Have you ever wonder how to know if you are in your comfort zone?

Here's an easy way to find out the answer.

You can take it literally.
If you feel comfortable, you are in your comfort zone.

How to know if you are in your comfort zone?
If you feel relaxed and calm in what you are doing, then you are in your comfort zone.
If you feel confident that you can achieve a task easily, then you are in your comfort zone.
If you can do a task without thinking much, then you are in your comfort zone.

People like to do the same things again and again. It is a way our brain works to keep us out of danger. Doing the same things give us safety. We know what to expect. It is self preservation.

However, doing the same things will give you the same result.
Albert Einstein quoted, "Insanity is doing the same thing over and over again and expecting different results."



Then how do you know you are out of your comfort zone?

You can take it literally too.
If you don't feel comfortable, you are out of your comfort zone.

How to know if you are out of your comfort zone?
If you feel pressure, stress, panic, worried, lost, doubtful, etc, then you are out of your comfort zone.
If you have no confidence that you can achieve a task, then you are out of your comfort zone.
If you have to plan and think a lot, then you are out of your comfort zone.
If you have to ask or look for help, then you are out of your comfort zone.


If you want to change, you need to change on how you do things.

Doing something differently can be in many ways. It can be a small change or a major change.
Small change will bring small differences.
BIG change will bring BIG differences.

Even doing something with different mindset will produce different results.

A simple example to illustrate. You may be angry of driving in the traffic jam. However, by making a small change in your thinking, you will change the way you look at the traffic jam. If you think that you are lucky to be able to drive, it will make you feel grateful to be in the traffic jam. There are many others who cannot drive and cannot even afford a car.

How do you make changes to get different results?

Let's say you have to make phone calls to get sales appointment. You can confidently and easily make 10 calls per day. You have no problem at all. Out of the 10 calls, you can get 3 appointments. As you can be confident to get 3 appointments, then this is your comfort zone.

Try to increase your calls to 20 calls per day. Increasing your number of calls is something outside of your comfort zone.

At first, you will get a lot of questions and doubt your ability.
Your will ask yourself if this is possible?
Where to get the names to call?
What time to call so many people?
Will that many people want to pick up my calls?

If you don't feel comfortable, then you are out of your comfort zone.


Similarly, getting 3 appointment per 10 calls is 30% success rate. Try to increase to get 50% success rate. 30% is in your comfort zone, 50% is outside your comfort zone.

Many people stop trying to do new things because of the big changes they try to do. 
Your mind will resist the major changes to keep you safely inside your Comfort Zone. But, having small changes will be more comfortable to you. You are slowly and steadily expanding your Comfort Zone. Make your Comfort Zone circle bigger and bigger until you reach your goal.

If you have done 10 calls per day, then make it 11 calls for tomorrow. Slowly and steadily increase the number of calls until you reach your target of 20 calls per day. When you achieved a small goal, celebrate your success with a small celebration.

You will be motivated to keep doing more and EXPAND your Comfort Zone. Your mind will associate celebration and happiness with your effort to try new things and do more. Expanding your comfort zone is going to be an exciting experience.

Once you have the expanding momentum, you will be able to make bigger changes.

212) Seeds to grow in your mind garden...

One ______ seed will grow into one _______ tree, which will give you many _______ fruits.

Choose your seeds wisely:

Happy, rich, angry, motivated, easy, abundance, hate, lazy, love, care, difficult, amazing, great, powerful, grateful, integrity, idea, sad, friendly, big, blessed, High Level, etc. 

You are free to decide and grow other seeds of your own choice.

Happy Planting.

#highlevelrules
#highlevelmotivation

211) Sow Seeds on an Empty Land.

Your mind is like a piece of empty land.
Your thoughts are like seeds of trees.

You will have lots of different seeds (Thoughts).
You choose to sow one seed (initial Action).
You continue to take care of the young tree (continuous Actions).
It will grow into a big tree (Result).
Then the tree will bear fruits (Reward).

If you sow a Good seed, then you will get Good fruits.
If you sow a Bad seed, then you will get Bad fruits.
So, be careful and aware of the seeds that you have.

Also, you will notice that good seeds are harder to grow as compared to bad seeds. For example, a durian tree is harder to grow as compared to grass. 

If you leave the land empty, grass will quickly grow without your notice.

So, in the same manner, be aware of your thoughts and be more determined to take care of the good thoughts. 

Else, you will get bad thoughts taking over your life.

#highlevelrules
#highlevelmotivation

210) Do You spend more or less during retirement?

An interesting topic for a long Debate.

A post in Facebook on the same question attracted many comments. Most people commented that the expenses will go higher.

  

So, what do you think?

The answer is not as simple as just higher or lower. Your expenses are different depending on your situation. 

The comments on higher expenses can be summarized into few main reasons:

1) More Time to Spend

More time to travel, eat, holiday. By staying more at home, the utilities are also used more. The water and electricity bills go higher. You will switch on the electrical items for longer period. Air-cond, TV, lights and internet are used more. When you are working in an office, the water and electricity are paid by the company you work for.The appliances at home are switched off.

As the saying goes, during retirement "Everyday is a Holiday". We tend to spend more during holidays.

2) Higher Inflation

Prices will go higher as time progress due to inflation. During your retirement, your expenses are higher even you buy the same things. Inflation rates are also different for different products and services.

3) Pay for More Things

While working for a company, you can claim certain expenses like travel and handphone bills. Companies also provide benefits like insurance, dental, medical and hospitalization. Company even give drinks, snacks, birthday celebration, sports facilities, uniform, t-shirts, paid holiday and annual company trips. 

When your retire, all expenses are to be paid by you. You cannot claim back any expenses.

4) Housing Loans
As the housing costs is getting more expensive, the banks had been extending the loan tenure until age 65 or even 70. This is to allow a lower monthly installment repayment by the house buyer so that he or she can be eligible for higher loan amount. House prices are increasing faster than income increments.

Even after retirement age, many people still have to pay for their housing loan. Any increase of interest rates will incur more expenses servicing the loan.

Housing loans repayments is a major expenses for most people. It is good if the house are fully paid up before your retirement.


5) Car Loans
As cars are also getting more expensive, the car loan tenure had been extended to 9 years. Higher installments are also due do higher car prices.

Car loans repayments is another major expenses for most people. It is good if the car is fully paid up before your retirement. Furthermore, having the convenience of a car also incur other costs like maintenance, road tax, car insurance, parking, etc. Consider taking public transport for your traveling.

6) Children Education
As more people are getting married at older age, they are also having children at a later age.

Education fees for the younger children are still required even after a person retired. As more students are getting higher education, having a tertiary education is longer a luxury, but a necessity.

More from this link:
https://highlevelrules.blogspot.com/2018/07/must-i-send-my-child-to-tertiary.html

Children's tertiary education are major expenses for most people. It is good if the children completed their studies before your retirement.

7) Children Expenses

Many people are still paying for the living expenses of their non-working children. As the cost of living is getting higher and increase faster than income, the younger generation is finding difficulty to survive on their own. Many young people still depend on their parents for the basic expenses. Only after many years working, can the younger generation to afford their own property.

8) Other Dependents
Aged parents or older relatives may still depend on the younger retiree. Many people are caught in the "sandwich generation" where they have to support their parents and young children. Refer to point above on children expenses.

Listed below are quick points of expenses and savings during working life and retirement life.

9) Lifestyle
Your lifestyle will be one major impact to your expenses. Are you willing to change your lifestyle to reduce the expenses? Are you still willing and able to work after the official retirement age?

10) Other Considerations
The are also other factors that is beyond our control. Among few considerations are the  impact of government policies, benefits to citizens, taxation, advancement of science, technology, healthcare and cost of medication.


Expenses During Working Life

- Transport to work
- Working clothes
- Outside food during lunch
- Children school, tuition fees
- Housing loan

Savings During Working Life
- Medical claim
- Insurance provided
- Travel claims
- Allowances
- Company Trip
- Notebooks provided
- Mobile & line subsidy

Expenses During Retirement Life
- Travel holidays
- Higher Medical insurance
- Higher Medical expenses
- More time to spend
- Expenses by staying at home

Savings During Retirement Life
- less on clothes
- less on makeup
- less on food
- less on expensive items

Do get a better understanding on your circumstances and prepare better for your retirement.

Here is an Excel file where you can compare the Cash Flow (income and expenses) during working and during retirement. 

Assume you retire today. What was your cash flow last month vs your cash flow for next month.

Another tab in the Excel file is for you to do your Yearly Income and Expenses for next few years.

Link to Cash Flow excel file:

https://drive.google.com/open?id=1c9m6z1g_WxOmxHDhaM7wQLsjqSuuy21P

Do take note that the expenses are based on current values. The inflation effect is not taken into consideration.

Prepare your expenses covering many areas.
Do compare before vs during retirement.
Do the annual cash flow for several years to understand your cash flows.

209) Expanded Formula for Invesment

209) Expanded Formula for Investment, 

FV= PV(1+i)^n

If you are in the Unit Trust industry, you would most probably have seen the formula below.

FV= PV(1+i)^n

FV = Future Value or End Value
PV = Present Value or Begin Value
i = interest rate or rate of return
n = number of years or periods

Yes, it is the same formula you learned during your preparation for the Unit Trust Exam, CUTE.

Let us see the formula from different perspectives. Most probably it is your first time ever.

As you know about Unit Trust and PRS investments, your invested money is converted into units.
The amount you invested is divided by the unit price to get number of units.

Eg,

If you invested $1000 into a fund with the unit price of $0.25, you will get 4000 units. Assume service charges are paid separately.

PV = UP x NU
where,
UP = Unit Price
NU = Number of Units

$1000 = $0.25 x 4000

Let us expand the formula to separate the n.
We assume it is for 3 years to simplify the calculation. In actual practice, the n can be any number of years.


FV= PV(1+i)^n

FV= PV(1+i1)(1+i2)(1+i3)
where,
i1 = rate of return for year 1
i2 = rate of return for year 2
i3 = rate of return for year 3

Let us expand the FV and PV, indicating:
PV1 as the Begin Value in Year 1
FV3 as the End Value in Year 3

So, the expanded formula is:
FV3= PV1(1+i1)(1+i2)(1+i3)

Now, expand PV1 and FV3 in terms of Unit Price (UP) and Number of Units (NU)
PV1 = UP1 x NU1
FV3 = UP3 x NU3

The expanded formula is:
FV3= PV1(1+i1)(1+i2)(1+i3)
(UP3 x NU3) = (UP1x NU1)(1+i1)(1+i2)(1+i3)

This formula above can only be used if the Number of Units Remains Constant.

What if the number of units increased?

Let us combine another formula from Second perspective.
Total Return is the calculated by the compounded return over the different years.

So the Total Return for 3 years can be shown as formula below:

(1+TR3) = (1+i1)(1+i2)(1+i3)

The formula, 
FV3= PV1(1+i1)(1+i2)(1+i3) becomes
FV3= PV1(1+TR3)   


Let us combine another formula from Third perspective.

(1 + Total Return) = (1 + Number of Units Growth) x (1 + Unit Price Growth)

(1+TR3) = (1+NUG3)(1+UPG3)

TR3 = Total Return for 3 years
NUG3 = Number of Units Growth for 3 years
UPG3 = Unit Price Growth for 3 years

The formula, 
FV= PV(1+i)^n

FV= PV(1+i1)(1+i2)(1+i3)

FV3= PV1(1+i1)(1+i2)(1+i3)
FV3= PV1(1+TR3)  

FV3= PV1(1+NUG3)(1+UPG3)
(UP3 x NU3) = (UP1x NU1)(1+NUG3)(1+UPG3) 

In General Terms, for n years, the formula is
(UPn x NUn) = (UP1x NU1)(1+NUGn)(1+UPGn)

This is the new derived formula to calculate the end investment value from the growth of unit prices and growth of number of units.

Try this formula out and check the answer.

Using the above formula, the original investment PV of $1000 with 4000 units at $0.25 each has grown into end value FV.

Let's say the unit price had increased to $0.30 and number of units became 5000. The investment value has now become $1500.

So,
Number of Units Growth = (5000 - 4000)/4000 = 0.25
Units Price Growth =  ($0.30 - $0.25)/$0.25 = 0.20

FV3 = (UP1x NU1)(1+NUG3)(1+UPG3) 
FV3 = ($0.25 x 4000)(1+0.25)(1+0.20)
FV3 = ($1000)(1.25)(1.20)
FV3 = $1500

FV3 = UP3 x NU3
FV3 = $0.30 x 5000
FV3 = $1500


More details from these links:

251) How Total, Annual & Annualized Returns are Related

https://highlevelrules.blogspot.com/2020/05/251-how-total-annual-annualized-returns.html

179) Unit Price and Number of Units Growth Rates Effect on Investment Values.
https://highlevelrules.blogspot.com/2018/06/unit-price-and-number-of-units-effect.html

208) Weak Blame Strong Praise

208) The Weak Blames, The Strong Praises

What do you normally do? Blame more or Praise more?

Why is that people like to blame more?
They blame others because they want to show that others are wrong, and they are right.

It is human nature wanting to be correct or right all the time. Our society demands us to always to do the right things or being right.

The successful are being celebrated, looked up to, praised and honoured.
The failures are being looked down, neglected and even scolded.

It is the Maslow's hierarchy of needs, esteem needs is one of the psychological needs.

Images courtesy from
https://www.simplypsychology.org/maslow.html

One of the easiest way is for the psychologically weak person to blame others and feel being right to fulfill his/her own self-esteem. Being right while others are wrong.

The Psychologically Strong person has already enough Self-esteem. They have no need to blame others. When another person make a mistake, the strong normally will still praise that person for trying out. Maybe even give some encouragement and tips to do better.

The Strong always see the positive while the Weak always see the negatives.
They are Strong because they see the positives.
They are Weak because they see the negatives.

So, set your mind on what you want. To be Strong or Weak?
See the positives in yourself and others. Praise others for the effort they put in,

Everyone starts from different starting point levels. To start doing something is always better than watching for something to happen.