Let It Go

If there is one thing I have learned over the past few months it has been that it does not matter what makes sense or what I think should happen, things will unfold as they will.  I used to get frustrated when things would not go the way that I though they should.  Now I realize that I should stop trying to predict things that are out of my control but rather be flexible and just react to the changes as they happen.  Most people are not flexible or willing to change quickly and because of this I think that many new opportunities will emerge to those who are willing to do things a little different while others keep doing the same things which may no longer work. 

Does it really make sense that the government is making cheap money available to the citizens of our country.  They are again making it easier than ever for people to get into debt.  I can't believe this is happening.  The governments of the world are trying to get us out of a situation of too much debt by creating more debt.  This is exactly what is unfolding before our eyes.  It does not make sense to me.  But I don't care, this is happening and so I have been trying to find a way to use it to my advantage.  I think the worst thing you could do, which is what the government hopes you will do, is go out and buy stuff that depreciates, you know, new cars, boats, tvs, furniture, vacations, etc... in hopes of stimulating the economy.   Instead take this cheap (almost free) money and buy income producing assets like businesses, income real estate, stocks, equipment, etc... and buy as much as you can with borrowed money while it is cheap and lock in the rates.  The great thing about low interest rates is that it is very inexpensive to use other peoples money to make yourself rich, as long as you buy the right things.  This makes it very easy for individuals who have very little cash of their own to go out and make a fortune.  So don't go out and buy a new Hummer because it seems cheap and all your friends are buying them(they will continue to get cheaper, especially if GM goes bankrupt, which is very likely right now) but instead look for deals/opportunities  that have the potential to put money into your pocket every month.

The one thing that can be noted with interest rates is that they don't jump up and down.  They usually move in one direction for an extended period of time.  This is something to be aware of, especially since rates can really only go one way from where we are today.  So you should be aware that once rates begin going up they will probably continue in that direction for quite a while.  It is hard to say how long rates will stay at close to zero, but it will be just a matter of time before they will start creeping back up.  I think rates will have to go up.  The first reason will be to combat the inflation that will be caused by the current increase to the money supply.  The second reason will be to promote saving, people will not save if they are not able to earn a decent interest rate.  The third reason is to promote foreign investment in our country, other countries will not buy our government debt and invest in Canada if the rates are low like they are right now. 

So stop worrying about things that are outside of your control.  The US has a lot of issues to work out and this will no doubt continue to have a negative affect on Canada until other emerging countries begin importing our products at greater rates to offset the decline by the US.  This will happen, China and India continue to grow and develop and this will cause an ever increasing demand for the resources that we have.  Change what you can, yourself and the way you think and do things, and you will greatly improve your chances of a successful financial future.  Don't focus on the problems, just the solutions and opportunities.

Focus your energy on building, continue to learn, add value to your life and the lives of others every day, look out for your best interests, exercise, laugh, and most importantly enjoy your life and what you are doing. 

If you are not growing you are dying.

Start NOW.  NOW is most important.  What you do NOW will determine what you are doing later. 

Have a fantastic day!!

Kirk Walper


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