- The Borrow Smart Chronicles
- Posts
- Habits Guarantee Results - Let's MOVE!
Habits Guarantee Results - Let's MOVE!
Todd Ballenger
November 08, 2024
"The Chains of Habit Are Too Light To Be Felt Until They Are Too Heavy To Be Broken."
Small habits are key to growing your Money Tree - one habit at a time!
Everything compounds. We show this each week in various examples in this newsletter and there is nothing more powerful than the compound interest of actions that lead to greater financial fulfillment. I really enjoyed Atomic Habits by James Clear, and you’ll see a link below to my AI summary on the Spotify podcast (also now available on Amazon Music, Apple Podcasts and more…
Key points: Spoiler alert - (tiny changes repeated over time lead to amazing results)
The book emphasizes the importance of small changes in context and daily habits, the role of cues and cravings in habit formation, and the power of making good habits obvious, attractive, easy, and satisfying. In my language, if you invest your time to listen or read anything, the only key is that you identify one thing you can start doing immediately because of that investment.
It also explores the influence of social norms and the impact of repetition and friction on habit formation. I use the example of Pringles, you just eat one and before you know it the can is gone. That’s why it is more important to call one prospect each day, than to call 10 only one day a week or 100 one day a month. Also, why it is important to travel in a caravan… you see others doing it while you are doing it and that reinforces your behavior.
James Clear discusses the "Two-Minute Rule," which suggests making new habits as easy as possible to start. The concept of deliberate practice, which is essential for maximizing potential and achieving mastery to release that dopamine to keep you going. You may have 4 bad calls, but that 5th call is the ONE that keeps you going. Take a lot of small risks and build up to the big one. The risk of calling on a few financial advisors in my community lead to my speaking to thousands on stage 8 years later.
A long journey begins with one step… what one step might you take now? Maybe start by listening to this 17 minute podcast!
Listen on: Apple | Spotify | Amazon Music - see all options: HERE
a BORROW SMART CONCEPT
Does a Great Economy Put Pressure on Rates?
I am not an expert on interest rates, and the economy but I am curious and the MOVE index is something I’ve been learning more about. How do you learn? You inquire… start with this short video with Cem talking about the market, then the chart, then listen to a recording using AI that summarizes a paper on why rates are going to go lower.
You can say - ‘hey, that doesn’t get me a new loan today’ and I’d say ‘correct, but it builds your confidence and as you grow yourself the business will work very hard to keep up with you.’
the curve is un-inverting…
LIABILITIES and DEBT
What’s Happening.
we want rates lower because that’s the best way to get housing affordable (not house prices getting cut in half through depreciation)
The market things rates will be in the 5% range next year, but maybe not come down as aggressively with Trump, but I think he has to get them down so he will - QE anyone?
“Under an expected Trump presidency, Fed funds futures now suggest that the US central bank will only have room to cut rates four more times between now and the end of 2025 to 3.75%-4%. As recently as last month, trading suggested that the Fed would make seven cuts in the same period. — Jonathan Levin”
average spread is still too high (see MOVE index commentary above) - VOLATILITY BAD!
Trump is a big spender and that is good for economy but bad for inflation
our debt for our economy is YUGE!
We’re #1
the market is happy with the results and that creates more income for those that have houses and investments
but those that don’t are still seeing pressure
and while the market is higher the housing values have slowed their growth
borrowing is always in they system and many will borrow again to buy if they feel the future is BRIGHT - so watch how you feel about your future too!
"Mastery is the best goal because the rich can't buy it, the impatient can't rush it, the privileged can't inherit it, and nobody can steal it. You can only earn it through hard work. Mastery is the ultimate status."
REAL ESTATE
What’s Happening?
sentiment shifted back negative as expected lower rates didn’t materialize
"We are what we repeatedly do. Excellence, then, is not an act, but a habit." —
there will be many alternative strategies for those willing to educate consumers
those engaging real estate are typically older than the past
people are moving back in with parents and sharing housing which increases vacancy
average rent going down as vacancies go up…?
rents down (another look) take pressure off permanent housing
new home sales are trending down with annual cycles, but above last two years
still well below norm
inventory is also increasing
housing goes up!
when houses sell they do so now at close to asking price
we have to watch jobs as that would increase foreclosure risk - but market can probably handle that without too much housing volatility
over time better to own than rent
"Motivation is what gets you started. Habit is what keeps you going."
ASSETS and INCOME
What’s Happening?
what a difference, this is last week’s results, you’ll see a big shift in your investments after this week and probably through the end of the year… I worry about late January…
the US is making all the hay!
and our incomes are also increasing…
the next few months look good…
there is so much FLOW of new buying that HAS to happen that pushed the market up
overall we are seeing massive shifts in wealth
and low unemployment rates…
but wow we are pricing in perfection
since 2009 the key has been to simply stay in the market…
you can see that reflected here in a unique way
you only need 5 stocks to do the work!
and while they aren’t making more land, they are making more Billionaire’s
"Sow a thought, and you reap an act; sow an act, and you reap a habit; sow a habit, and you reap a character; sow a character, and you reap a destiny."
ON BEING HUMAN
What’s Worth Sharing?
This simple book had a profound impact on me as a child, and still does:
DOPAMEMES
And Other Happy Moments…
Artificial Intelligence
And the Future of Work…
Create cool surveys for your clients:
https://duonut.com/
"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones." — Benjamin Franklin
Was this email forwarded to you? Sign up here.