These taxes are Killing Me!

 The Boston Tea Party sparked the growth of the American Revolution.  The Boston Colonists objected to the Tea Act that had been passed by the British Parliament.  They believed it violated their right to only be taxed by their elected representatives.

Fast-forward 238 years and the contentious relationship between the taxed and those entities who charge taxes and increase tax rates.

The assortment of taxes we pay today – estate tax, FICA, property tax, federal income tax, and others didn’t always exist.

Back in 1909 Congress enacted the corporate income tax. Today corporate taxable income rates vary from 15% to 35%.  In 1913 a system of graduated federal income taxes was implemented by Congress to help finance World War I.  The rates started at 1% and went all the way up to 7%.

Between the years of 1913 and 1915 only 2% of the U.S. population had to pay  federal income taxes because the system taxed mainly those with large incomes.

Sales tax is known as a consumption tax. That means that it is levied at the time a purchase is made. The tax is usually a percentage of the sale price.  The seller, who then remits the tax over to a government agency, usually collects sales tax from the buyer.

Use tax – You would pay this tax if you make a purchase without paying your home state’s sales tax and you use, give away, store or consume that item in your home state.

Payroll tax – A tax that employers are required to ‘withhold’ from an employees’ wages. Employers are required to withhold state and federal income taxes plus social security and Medicare taxes from your employee’s wages.

FICA – Also known as Social Security and Medicare taxes. The current social security tax rate is 6.2%. The Medicare tax rate is 2.9% for both the employee and employer. Employers withhold 1.45% from an employee’s wages and pays a matching amount for Medicare tax.

President Franklin Roosevelt signed the Social Security Act in 1935 and Social Security taxes were first collected in January 1937, although no benefits were paid until January 1940.

Property tax - in the U.S. charged on real estate and is usually levied by local government between about 0.2% and 4% of the home value.

Capital Gains tax – A tax charged on the profit realized on the sale of a non-inventory asset. Capital gains are most commonly realized from the sale of stocks, bonds, precious metals and property.

Progressive tax – Basically the more income one earns, the higher the tax rate.  If your taxable income is between 0 and $8,500 your tax bracket is 10% but if your taxable income is over $379,150 your tax rate would be 35%.

Regressive tax – Under this system a larger percentage is taken from low-income people than those that earn higher incomes.  Examples of regressive taxes would be gas or sin taxes because they take a larger bite of the income of a lower earner.

Where does are tax money go?

Federal income taxes support the U.S. military and assorted federal programs like Social Security and healthcare.  Local taxes support police and fire departments, schools, potholes in streets among others.

I believe that the current tax system is way past out of control. There has to be a simpler way to collect what is owed and eliminate the loopholes and tax havens that are so prevalent.

What do you think? Should an entire industry exist simply so that U.S. citizens can obey the law?

Tax the Rich…or at least anybody but me!

The nation should have a tax system that looks like someone designed it on purpose. 

                                                           ~William Simon

The Bush tax cuts were enacted in 2001 and 2003. They are also scheduled to expire on December 31^st 2011.  A fight has erupted over what to do next. Democrats lean towards letting them expire, Republicans tend to favor that they be extended.

The Bush tax cuts really helped folks in the upper middle class or “lower rich” range because the majority of their money is not derived from investment income.

If the Bush tax cuts were to end, the biggest losers would be individuals who earn over $200,000 and couples who earn $250,000 or more.  In certain parts of the country those sorts of numbers would identify you as rich.  Now, where I live (S.F. Bay Area) not so much.

Did the Bush tax cuts benefit the rich? Why or why not?

Most millionaires don’t get wages / paychecks.  For example, Warren Buffetts’ income as CEO of Berkshire-Hathaway is $100,000.

But to dig deeper, how much does Warren Buffett actually make?  Different question…different answer.  He makes millions of dollars but it is investment income from capital gains and dividends. That money is taxed at the capital gains rate of 15%. The average accountant pays a higher rate than that.

Last Monday in his White House address, President Obama called on Congress to increase taxes over a 10-year period by $1.5 trillion as part of a deficit reduction package.  He also proposed an overhaul to the tax code and introduced a plan that he referred to as the “Buffett rule” named after billionaire investor Warren Buffett.

This inspiration no doubt stemmed from Warren Buffett’s August 2011 op-ed piece in the New York Times. Since then political think tanks have been pondering whether or not millionaires are actually taxed less than average workers.

According to one Washington think tank (Tax Policy Center, I think) most people making over $1,000,000 pay 29% in federal income taxes but those earning in the $50,000 - $75,000 pay only15%.

The rest of the story is that middle class wage earners also pay payroll taxes that are not applied to those making over $106,800.

When you’re talking about incomes above $1 million, they can range up to several billion dollars and the bulk of that income is usually derived from capital investments. The top tax rate for dividends and capital gains is 15%.

Long story short, if you ended the Bush tax cuts, folks like Buffett wouldn’t feel a thing.

Closing the gap between capital and wage income is the real goal here.

What do you think? Should the Bush tax cuts expire? Be extended? Should the rich pay more in taxes? How do we determine who is really rich?

THE LIBOR and its’ importance in Economics

London Interbank Offered Rate – LIBOR

With all of the economic stability taking place throughout the world it is not unusual to hear discussions involving something known as LIBOR.  What the heck is a LIBOR and why should I care?

The LIBOR is the world's most widely used benchmark for short-term (one day to five years) interest rates. Think of it as the interest rate that the banks charge each other for loans (usually in Eurodollars).

Why is it important? Because this is the rate at which the world's most preferred borrowers are able to borrow money.  In addition, it’s also the rate upon which rates for less preferred borrowers are based. A good example would be a large multinational corporation with a very solid credit rating having the ability to borrow money for one year at LIBOR plus four or five points.

The LIBOR is officially fixed on a daily basis by a small group of large London banks, known as the British Bankers' Association (BBA) but the rate changes throughout the day.

The LIBOR is also widely used as a reference rate for financial instruments such as forward rate agreements, short-term-interest-rate futures contracts, variable rate mortgages, currencies, especially the US dollar and several other financial instruments.

Back in 1984, an increasing number of banks were trading actively in a variety of fairly new market instruments, such as: interest rate swaps, foreign currency options and forward rate agreements. While such instruments brought more business London Interbank market, bankers were concerned that future growth could be hampered without some measure of uniformity.  In October 1984 the British Bankers' Association (BBA) —working with other parties, -- established various working parties. They eventually produced the BBA standard for interest rate swaps. Part of this standard included fixing BBA interest-settlement rates, which was the predecessor of BBA LIBOR. 

Rate calculations are derived by 16 of the world's most creditworthy banks' across 10 currencies and 15 lending periods ranging from overnight to one full year. These calculations incorporate variables such as time, maturity and currency rates. There are hundreds of LIBOR rates reported each month in numerous currencies. 

BBA LIBOR fixings did not commence officially before 1 January 1986. Before then, some rates were fixed for a trial period beginning in December 1984.

Countries that rely on the LIBOR for a reference rate include the United States, Canada, Switzerland and the U.K.

How Does All of This Affect Me?

Although the LIBOR rates are fixed in the United Kingdom, American consumers can benefit by having a greater understanding of how LIBOR works, since LIBOR is used as an index in the pricing of many kinds of consumer loans in the United States.

Chances are that adjustable rate mortgages and credit card interest rates are based on LIBOR. As rates reset, the high LIBOR will make your monthly payment also higher. It is estimated that 60% of all adjustable loans within the United States are tied to the LIBOR.

If that wasn’t enough consider the fact that student loans are also pegged to the interest rate charged to the LIBOR. If rates go up the loan will become more expensive. As if getting a college education wasn’t financially draining already.

In addition to ARM mortgages, your credit card debt is affected by the LIBOR rate.

A risking LIBOR will make many types of consumer and business loans more expensive.  When this happens, more money is taken out of the economy, slowing growth and increasing unemployment.

What is a Patriot?

...the true patriotism, the only rational patriotism, is loyalty to the Nation ALL the time, loyalty to the Government when it deserves it.

- "The Czar's Soliloquy"--Mark Twain

You know, patriotism is one of those terms that gets bandied about but I wonder if we  really understand what we mean when we describe someone as a patriot.

Bringing out your U.S. flag on July 4^th, Memorial Day or September 11^th doesn’t make you a patriot.  Shouting “U-S-A, U-S-A” doesn’t make you a patriot. Knowing the words to the national anthem doesn’t cut it and just because you served in the armed forces doesn’t make you a patriot.

No, I suspect being a true patriot requires a bit more work than that.

Patriotism is defined as the love and support for ones country. I would dare say that the true meaning of patriotism has been both hijacked and denigrated in recent history. Often it gets misused in order to serve a certain person’s agenda.

I want to go to war. If you don’t agree with me, you’re not a patriot.

I want to erect a monument that pays homage to MY hero. You don’t agree with me? No way you’re a patriot.

You’ve never served in the military. You’re no patriot. You don’t love your country.

It kind of reminds me of Archie Bunker. How can you call yourself a patriot when you hate the majority of folks who live in your country?

Who were the original patriots? My guess would be our nation's founding fathers.

You can’t get more original than that.

George Washington, Thomas Jefferson, John Adams, the signers of the Declaration of Independence all would qualify as American patriots. Just by signing the Declaration of Independence they were basically signing their own death warrant.

Women have also put their lives on the line in making this country live up to its’ principles. One of these would be Ida B. Wells, who fought against lynching even as she fought on behalf of women’s rights. Another example is Susan B. Anthony, who was quite prominent in the fight for civil rights and also played a major role in the 19^th century struggle for women's rights.

"Patriots" was the term used to describe those who supported resistance to the policies of King George and his ministers and, later, independence from England.

Depending upon what side you were on you could have considered them rebels or traitors.

You might say that a true patriot should be willing to die for his country. I’m obviously not just talking about military service. Consider Dr. Martin Luther King Jr. He died in the attempt of making the United States a better place.  A true patriot? Perhaps.

What about the case of the Reverend Jeremiah Wright? I’m sure you remember Reverend Jeremiah Wright. He is President Obama’s former pastor. Back in 1963 Reverend Wright served two years in the Marines and later volunteered to become a Navy medical serviceman. As a Navy medical man he helped care for President Johnson after his surgery in 1966. Do those actions describe a patriot?

It is not unusual for "being patriotic" to became confused with nationalism and even jingoism.

I prefer to think of patriotism as inclusive of both social responsibility and self-sacrifice.  We can’t make our country better by sitting on our butts watching Monday Night Football or American Idol.

On this 10^th anniversary of 9/11 I’d like to ask: How would you define patriotism? What would you consider a patriotic act? Who today best exemplifies a true patriot?

A Matter Of Persective, And The Economic Hyping Of Professional Sports

  

As a young child I have vague memories of an Ebony magazine cover circa 1970 or 1971.  The subject of that issue’s front cover was the $100,000 club for major league baseball players.

As best as I can recall, the faces on the cover were Willie Mays, Hank Aaron, Pete Rose, Frank Robinson, and others. If you know baseball history I don’t have to tell you that these names were the absolute cream of the crop.

                      Salary in 1970                    Inflation adjusted salary

Hank Aaron            $125,000                                             $696,939

Harmon Killebrew     $95,000                                             $529,673

Frank Howard         $125,000                                             $696,939

Roberto Clemente   $100,000                                             $557,551

Carl Yastremski       $125,000                                             $696,939

Bob Gibson             $125,000                                             $696,939

Frank Robinson       $125,000                                             $696,939

Pete Rose               $105,000                                             $585,429

The average baseball salary back then (1970) was $29,303.  The minimum salary was $12,000.

As best as I can determine from research the average person’s salary back in 1970 was $6,186. The average median household income at the time was $8,730.

According to the U.S. Census Bureau the median household income for 2010 was about $51,425, and median income per person for 2010 was $27,041.

By contrast the average salary in the NBA is at $4.9 million; the average salary in the NFL is $1.3 million.  The NHL average is slightly higher at $1.8 million.  The average in the MLB is at about $2.5 million per player.

Today of course, almost no one even bats an eyelash with regards to pro athletes and their salaries. We’ve become accustomed to it.  Some would argue that we have also become accustomed to the average working person’s salary stagnating.

The Rise To Mega Bucks
So exactly what drove the salary explosion in pro sports?  Back in 1975, the "reserve clause" was eliminated.  Under the reserve clause, when a player’s contract expired, his team retained the rights to that same So, even though both the player's obligation to play for the team as well as the team's obligation to pay the player were terminated, the player wasn’t free to enter into another contract with another team. The player had two options: (A) negotiate a new contract to continue playing for the same team or (B) ask to be released or traded.

The reserve clause system has, for the most part, been replaced by free agency.

From this point forward the players were allowed to collectively bargain for higher salaries. In 1920, the average baseball salary was $5,000 a year. It took 50 years for salaries to reach $30,000, but with the reserve clause removed the average salary soared to $143,000 by 1980.

Elimination of the reserve clause, coupled with the rise of televised sports and the advertising revenues that began to flow, has led to the meteoric rise in players’ incomes.

The business of professional sports has also changed a lot over the years, allowing teams to spend big bucks on their players. Games have been televised as far back as the late 1930s, and by 1966 games were being sold as a national television package.  Businesses used commercial time during sports games to advertise their products and sports teams have become ever more valuable. Professional athletes went from heroes to super-heroes with Hollywood style production commercials featuring their exploits.

I remember watching sports(including championship boxing matches) for free. Now, much of what you’d like to view is offered via pay per view or a premium entertainment channel such as HBO. Many of today’s fans have been “trained” to accept high-ticket prices and millionaire athletes. They haven’t known anything else. Especially the fans younger than 45. 

Along with the escalating salaries, the cost of heading out to see a professional sporting event live has climbed as well:

New York Yankees

Average Ticket Price $72.97

Parking: $23

Beer: $6

Tampa Bay Buccaneers

Average Ticket Price: $74.25 
Parking: $25
Beer: $5.75

Los Angeles Lakers

Average Ticket Price: $93.25 
Parking: $15
Beer: $7.75

Boy, this is a far cry from my days as a kid paying a $1.00 for bleacher tickets at the Oakland Coliseum and munching on hot dogs for $1.00 each!

For the most part I won’t pay for televised sporting events. It’s nothing against sports. I love sports and the athletes are amazing. I just have a hard time wrapping my head around spending what little money I have to watch athletes whose salaries dwarf mine. I mean it’s not like these guys are curing cancer.

And that, my friends is the magic of hype. Consider the Super Bowl. When the first Super Bowl was played, almost no one paid attention. Now, it’s practically a national holiday. What happened? Hype. I mean it’s still just a football game, right?

My question is, how can professional sports continue to enjoy such a huge growth in income during a time when much of their target market can barely afford to purchase what they are selling? Once again, the answer is hype.

I realize that many of the tickets are being purchased by corporations as no ordinary family could afford to attend very many games at these prices. But that only underscores the disconnect between the fan base and the sporting events that they love.

Do you agree that the professional sports machine has used “hype” to get millions of dollars from today’s fan?

LOVE AND ADMIRATION

What companies, if any, do you admire? Why do you admire them? What is there to admire in a corporation? Do they possess qualities similar to those of people that you admire?

When we consider the traits of people that we admire descriptive terms such as: perseverance, the ability to remain calm and cool during hard times, being open minded, or being able to adapt to different situations come to mind. Can we translate such attributes to a corporation? Maybe.

Sometimes it’s a case of an iconic figure who sets the pace for the corporation as a whole.  Business leaders such as Steve Jobs, Warren Buffett and Bill Gates immediately come to mind.

I remember back when Jack Welch was chairman and CEO of General Electric, it was the most admired company in the country. Now, perhaps not so much. What changed?

I recently took a look at the FORTUNE’s 2011 list of the most admired companies in the world.  I’ve glanced at these lists over the years and it just got me thinking: What companies do I admire and why?

Personally I love companies that have a reputation for quality or for treating the customer well. Prime examples of that are Nordstrom’s or Coach Inc. Another criteria would be financial strength although I’d have to question HOW any company built its’ coffers. I’m thinking Exxon and Walmart here. I’m not throwing stones, just throwing it out for thought and discussion.

What about the most innovative companies? To me Apple is tops in that category. What about company’s that make the best use of their assets?  Which company’s are considered to be the most socially responsible?

These days I am impressed by organizations that provide me with a memorable shopping experience.  I started using Zappo’s in the early 2000;s to buy shoes. Who would have thunk it, buying shoes via the internet? Somehow Zappo’s made it all work beautifully. 

I’ve been grocery shopping all my life, but somehow Trader Joe’s has figured out how to turn a mundane chore into something I actually look forward to. Apple seems to have a knack for providing products/services that you never even knew you needed before they made it.

Years ago I remember watching a story on either 60 minutes or 20/20 about a manufacturing plant that suffered a devastating fire. It just about gutted the building. The owner of the business made an amazing decision. He decided to continue to pay ALL of his employees their regular salary during the rebuilding process.  

The owners’ position was that he already possessed great wealth($750 million or so, I believe) and there was only so much he could ever want to spend his money on.

Imagine that. Instead of going all “Gordon Gekko” about the situation, this man opted to take the high road. I really admire that.

Another example. The Spungen family founded their Chicago ball-bearing business in 1941. When the company owners sold their operation they made a decision to share the wealth with their employees.

In 2008 they were bought out by a Swedish company and instead of keeping all of the money to themselves, they gave away 6.6 million dollars to about 230 of their former employees.

Some employees received a few thousand dollars while others got six figures.

The checks were based on years of service.

In a  final example, an Australian mining magnate named Clive Palmer gave 50 Mercedes-Benz B-Class 180s sedans to his most-valued employees as a Christmas bonus. He also gave all 750 of his longtime workers a holiday trip to Fiji. The final touch: He also threw in a $2 million holiday party.

He said he wanted to thank his staff for the $200 million in profit his company earned from a nickel refinery he had recently purchased for about $10 million. His holiday gift-giving earned him the nickname “St. Nickel.”

These examples send a powerful message: that workers play a large role in creating wealth and that they should share in the spoils.  Once again, I personally find this to be an admirable trait.

I personally believe that there are times when people get the admired player and the dominant player confused. If you’re the dominant player in your industry, that’s great but it doesn’t necessarily mean that you possess admirable qualities. Think Standard Oil back in the late 19^th and early 20^th century.

A winning combination for me would be a company that was successful, possessed a great reputation for quality, set a high standard for performance but also had a conscience toward both employees and the larger community.

Here’s a quick peek at the top 10 companies on FORTUNE’s list:

Apple

No mystery here. Whether we’re talking itunes, iphones, ipad, ipods, Apple is clearly an example of an innovative, creative company that is constantly setting super high standards and then raising the bar from there. "firing on all cylinders."

Apple is simply amazing. They constantly release great new products while continuing to set the bar high for tech companies across the board.  They are truly game changers.

Google

Where would we be without Google? When a company or product becomes a verb, that’s when you know it’s a game changer. Searching for some vital or esoteric bit of information? No problem. Just “google it”

They maintain top position as the king of search. The company is also spreading through its deep dive into devices with its free, open-source operating systems.

According to Google, they activate devices loaded with their Android operating system at a rate of over 10 million every month!

Berkshire Hathaway

I don’t know if this ranking is more about the CEO or the company as a whole. Clearly Buffett is an iconic figure whose reputation precedes him in all business-related matters.

This company is synonymous with its CEO Warren Buffett. He remains an admired leader, both for his judgments about stocks and for having built a huge operating company besides.

Buffett has developed a practice of picking up stocks when they're out-of-favor, betting on them to rise when trouble recedes. His most recent purchases have included Johnson & Johnson, Burlington Northern and Bank of America.  And we’re talking tens of billions investment dollars.

Southwest Airlines

This one really confused me. One reason is that I’m used to airlines being vilified and additionally simply because I don’t know a heck of a lot about Southwest.

Since it started offering low-cost flights in the 1970s, Southwest Airlines has been a more consistent performer than most airline companies. Recently, airlines in general have been receiving a black eye in the press for tacking on fees to compensate for rising fuel prices, but Southwest has remained one of the world's most admired with its’ “No Change Fees” and “Bags Fly Free” policies.

Southwest generated strong earnings in its most recent quarter, with profits up 13% from a year earlier. According to Morningstar analysts, “Southwest is the healthiest company in the airline industry”.

Procter & Gamble

Procter & Gamble is the world's largest consumer-products company, with annual sales around $79 billion. P&G has been ranked first in its industry every year that it's been in the survey since 1997.

P&G's products, including Tide, Crest, Charmin, Bounce, Downy and many other household staples, form a strong foundation to weather volatile prices down the supply chain.

Coca-Cola

Coke is a beverage colossus to put it mildly. They have continued to expand across China, and has earned positive attention for its environmental efforts by conserving water.

With a portfolio of more than 3,500 beverages including diet and regular drinks, fruit juices, waters, sports and energy drinks, teas and coffees, milk and soy-based beverages.

Coca-Cola also continues to stand as one of the world's great brands, in a league with corporate giants like Nike and GE.

Amazon.com

In December, Amazon announced that the 3G Kindle was its best-selling item ever. Who knew? I still remember the good days of the dot-com bubble when Amazon had yet to record a profit. Everyone wondered if they ever would. Well, wonder no more.

From a personal point of view I really enjoy the shopping experience I receive via Amazon. Books, DVD’s and small appliances are my usual products of choice when I head to their website.

Meanwhile, Amazon has invested in new technology and continues to see growth. Soon, Amazon.com will begin operating an app store for Android.

FedEx

I still remember when this company was known as Federal Express.  This is another example where the company has become a verb. Sending  a package out for overnight delivery became known as “fedexing” it. Built in 1971 in Memphis, TN.  Before Federal Express hit it big back in the 1980’s I don’t recall anyone pushing to have packages shipped overnight. That was a big time game changer.

Microsoft

Still living in the shadow of its’ iconic founder, Bill Gates, Microsoft continues to operate as a dominant player in the computer industry. In the past couple of years Microsoft has rolled out strong new products. Search engine Bing, Xbox Kinect, and its Windows Phone 7, are a few examples of Microsoft’s expansionary ambitions.

According to Microsoft, it has sold 300 million licenses for the Windows 7 operating system to date.

McDonald's

I haven’t eaten at McDonald’s for about 20 years but I have to admit that given the fact that they are a large corporation with a huge target on their back, they continue to grow and innovate. Whenever someone discusses the evils of fast food, who is the big satan that receives the most blame? You guessed it: McDonald’s.  Consider the implications of having to operate in that kind of environment.

Even amid an enduring fast-food backlash it’s difficult to attack a company that consistently produces healthier new items on the menu: salads (with Newman's Own low fat dressing!), wraps, oatmeal, and apple dippers.

Plus, the chain constantly adds to its Dollar Menu, catering to those who are feeling the pinch of the recession.

McDonald's also operates a wide range of charity programs, including teacher awards and youth basketball games. You’ve got to give them credit.

What companies do you admire and why?  What companies have you admired in the past and which ones do you admire today?

If I'd Only Known Then What I Know Now

Hindsight is always 20/20. If you don’t believe me, just ask any economist.

I remember as a kid grown ups would always ask, “What you want to be when you grow up?”  I always gave some song and dance about wanting to be a doctor or a cop.  That always went over pretty well.

Since I was constantly getting the question,  I thought I was supposed to have an answer.  How the hell should I know? I’m just a kid. Okay, that answer wasn’t actually an option.

Well, now I'm a grown up and although I still don't technically know what I want to be, I've had enough life experiences to have sober reflections on lessons I've learned along the way.

Of course all of us would love to go back in time to apply our 'today' knowledge to 'yesterday'.  Unfortunately, the best any of us can hope for is to keep learning as we get older, and try to pass along what we have learned for the benefit of others. Most of them probably won’t listen, but what the hell? 

For the longest time, I bought into the old myth that the secret of life was to go to school, get good grades, stay out of trouble. Yadda, yadda, yadda.  But now, I think everyone realizes that in the real world nobody has EVER been hit it up about their GPA or SAT scores.

Like most people, there are some things that I wished I had known years ago(ages 14-21) that I know now. Here are a few of them:

A lot of what seems important to you now, really doesn’t matter. When I reflect back on many of the things that I got excited over, agonized over or wasted my time and energy on, so much of it was for nothing.  Make a list of what truly makes you happy, concentrate on those things and let most of the other stuff(baggage) go.  Chances are, the list is pretty short.

Waiting for the “perfect” time to do something is largely a waste. More than likely (I’m thinking 99% of the time) you’ll never do it. Whether it’s traveling to a foreign land, starting your own business, losing weight or just cleaning out the garage. If something sounds like a fantastic idea, act on it NOW! Tomorrow never comes. There is no such thing as the perfect time.

Now, that doesn’t mean that some times are not better than others. Perhaps you want to save a certain amount of money before you take that trip of a lifetime or there is a certain time of year that logically works better for you to do something.  That, I understand. Thank god I learned this one fairly early in life. Step out on faith, even if you have to go it alone. This is a great opportunity to learn and develop.

Buying the latest electronic gadget, hottest automobile or following the latest fashion, is a useless pursuit, although a profitable one…for merchants. In work or in life, the important thing is to be an original. There’s nothing wrong with owning an ipad or the latest shoes.  The bigger issue is, “Why did you buy it?”  Ask yourself how you will feel when the next new item comes out on the market. Are you strong enough to think and act for yourself? 

Learn to pick your battles. Don’t fight, argue and make a big deal over petty issues.  Of course, you need to know which issues are petty in the first place! You will age yourself prematurely and chase away friends and family. On the other hand, you will attract other losers like a moth to a flame.

Enjoy your work, work hard and do your best, but don’t make work your life. I never quite understood this.  I always viewed work as a means to an end. Not an end in and of itself. I work in order to afford the things that give my life greater pleasure. For some lucky individual’s their work isn’t just work…it’s who they are.  But most of us don’t have that innate sense of what we were meant to do.  Quite a few of us don’t have some overwhelming passion that also happens to allow you to earn a living doing it.  For most of us we need work to make money in order to live. There’s nothing wrong with that.  But at the end of your life I doubt that you will lament not having finished that report at the office.

Try not to argue with ignorant people. I am constantly amazed and amused by folks who get riled up over issues that they have not even slightly researched.  Or better yet, don’t want to be bothered with the facts. I mean, if someone is happily ignorant on a certain subject, do you really want to waste a ton of your time engaged in a debate with them? I didn’t think so.

Avoid whiners. Another time suck. Unfortunately life ain’t fair. ‘nuff said.

Your health is your greatest asset. Without it all the wealth in the world won’t mean much. Protect your health: eat a healthy diet, exercise regularly, get enough sleep.  I know I sound like some old man. Sorry. I’m just sharing the knowledge. You can thank me later.

Many “experts” are anything but. See my second sentence at the top about economists. Don’t believe the hype. Do your own research. Develop and trust your own instincts.

Figure out who your real friends are--fast!. I mean friends, not associates. There are people that you associate with because of school, work, church, situations where you an they just happen to share the same space.  A friend, on the other hand, is someone that you willingly spend time with.  A friend supports you when you are down, is not jealous of your success and always inspires you to do your best.  A true friend will tell you something hurtful for your own good. Find out who your real friends are and cherish them.

Trying to please other people largely a waste of time.  We’ve all tried to do it at one time or another, fail miserably and it drives us crazy. A few people truly cannot be pleased. Ever. Accept it. Most people will have some issue with just about everything you either say, or try to do. Seek their input, weigh the best option and move forward. If anyone questions why you did what you did, explain it honestly and let them know you considered their point of view.

There’s an old song called, “Garden Party”. The singer’s name was Ricky Nelson. Back in the 1950’s he was a huge teenage singing sensation. Anyway, in the 1970’s he gave a concert at Madison Square Garden and wanted to sing his current songs. His fans were angry. They wanted to hear his old 1950’s hits. On “Garden Party” Nelson sings, “It’s alright now, I’ve learned my lesson well, you can’t please everyone so you have to please yourself”.

Be true to yourself. It’s a great filter. What do I mean by that? By being yourself you will attract people who are truly interested in you, not someone that you are pretending to be.  On the other hand you will repel, or filter out the folks who just aren’t in to you. It works out perfectly.  In the end, would you rather be a fake someone else or a wonderful, genuine, “you”?

What are some things that you know now that you wish you had known years ago?