Wise like Marc Andreessen

This week’s mentor for all of us is named Marc Andreessen who has amassed a large pile of wealth in his career.

This is a man who has experienced ambition and clearly worked towards his goals without an end in sight.

Although I did not yet finish the chapter on March, I caught one idea that stood out for me. Now this concept is something that could affect people in different ways but what it did for me was made me focus on what I was doing outside of my work.

He mentions the nerd at night principle which I might have butchered slightly but the main idea is – what is that individual (you) doing at night, what keeps them up and interested. Are they a fanatic for sports, science, reality TV, etc.

What drives them and gives them pleasure. Or do they do absolutely nothing at all besides sit and eat potato chips all night.

Now this can be used as a question for new hires for business, or even a first date question but what I find relates most to me is the idea of focusing on my strengths. What I mean by that is I should be looking at what I enjoy and spend time on and double down in those areas to gain a larger expertise and depth so that later in life I can capitalize on those in some way.

What I believe is that it’s nice to have a breadth of interests but it is more beneficial these days to be a specialist than to be average in everything.

That’s what I took away from this very intelligent man’s saying.

Let me know what you think or if you know anything about Marc and his philosophies that is worth sharing.

Have a great night,

David

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Setting Financial Goals

Setting a goal is a lot like following a diet, you need to plan ahead of time what you need to do to be successful and follow it every day without straying.

If you plan on saving up for a vacation make some calculations on how much per week you need to put away and start saving. Small amounts over long periods of time make up for more than you think.

And if you don’t have the income necessary or you don’t have any income at all, the plan will be longer but you can still make that plan. However, it should start with the steps needed to acquire the skills and capabilities of a job you wish to obtain. Value offering is extremely important in this case.

But lets once again imagine you want to go away for a one week vacation in the tropics. If you start saving 4 months ahead of time instead of 4 weeks, obviously, you will need to save less per week and that’s idea.

Put away small amounts so that it doesn’t interfere with your normal expenses. If you can’t spare any extra money to save consider cutting out one or two meals out, ideas like this can save you enough to be putting aside for the vacation.

Trust me, once you’re at the end goal it feels a lot better to spend that money debt free than to have to put it all on a card. You almost feel like you’re getting an all-expense paid trip depending on the lavishness of it of course.

So remember, plan ahead, start early and commit to the plan.

Hope this helps!

Loans from Employers

Today we’re going to dive into a tax related topic. My tax knowledge is based on the Canadian Income Tax Act so it might be uniform across North America or it might differ from country to country.

However, this is how to account for loans in tax when you receive one as an employee from your employer.

Firstly, you need to understand whether or not this is classified as a shareholder loan or an employee loan. The way to do that is by asking some simple questions:

1) Are all other employees in the company eligible to receive this loan?

2) Would someone in my position in a similar firm be able to receive this loan?

3) If I am also a shareholder in the company do I not have any control or influence in the company?

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When to Straddle a Stock and What Is Straddling?

Straddling….

I recently entered a Options Trading Simulator through my University just to learn a bit about how the Stock Market works. To be eligible to win certain cash prizes, everyone needed to follow some listed trading strategies, including straddling.

Having never traded on the Stock Market before I was completely unaware of what straddling actually was. And after actually taking my first crack at it I failed.. miserably. Lost the entire “fake money” investment.¬†However, I learnt from this mistake and now know the benefit of the strategy.

What is A Straddle?

Straddling consists of two popular options called “Put” and “Call” options. When you straddle a stock, essentially at a “strike price”, which usually is the current price of the stock, you own a put and a call option. The put option allows you to sell the stock before the option expires at the strike price and the call option allows you to buy the stock before the option expires at the strike price.

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