Coming Back from Financial Mistakes

"Even the knowledge of my own fallibility cannot keep me from making mistakes. Only when I fall do I get up again."
~Vincent van Gogh

I stumbled upon a very interesting article from a few months ago... it was talking about how a charity auction raised $2.35 million for someone to have lunch with Warren Buffet, one of the wealthiest men in the world. 

So I looked up Buffet’s life via Wikipedia and found out he started buying stock in Berkshire Hathaway in 1962, which at that time was heavy in the textile industry. Eventually, Buffett acknowledged that the textile business was floundering and the company's financial situation was not going to improve. In 1964, the CEO of the company made a verbal tender offer of $11-1⁄2 per share for the company to buy back Buffett's shares, which Buffett agreed to. A few weeks later, Buffett received the tender offer in writing, but the offer was for only $11-3⁄8 (it was only 1/8 less than the original offer). Buffett later admitted that this lower, undercutting offer made him angry. Instead of selling at the slightly lower price, Buffett decided to buy more of the stock to take control of the company and fire the CEO, which he did. However, this put Buffett in a situation where he was now majority owner of a textile business that was failing. 

In 2010, Buffett claimed that purchasing Berkshire Hathaway was the biggest investment mistake he had ever made, and claimed that it had denied him compounded investment returns of about $200 billion over the previous 45 years. Buffett figures that had he invested that money directly in insurance businesses instead of buying out Berkshire Hathaway (due to what he perceived as a slight by an individual), those investments would have paid off several hundredfold.  

Can you imagine...$200 Billion!?

The moral of this story is that sometimes we make mistakes in our personal or business life. We choose bad investments, we leave money on the table. We let our egos or our pride get the best of us. It’s okay! Learn from your mistakes. Pick up the pieces where you are now and move forward.

You too can still become a billionaire!

You can read more about Business and Finances in Ch. 9 of the success program Sculpt Your Life From Sketch to Masterpiece(TM). This e-book program presents 12 crucial strategies for success, starting with your inner purpose, and designed to motivate you to set and reach your goals, overcome obstacles and ultimately lead your Masterpiece life!

For more FREE tips and strategies and to get instant access to the "12 Secrets to Success Strategies" video with more great insight from Sculpt Your Life From Sketch to Masterpiece(TM), sign up now:

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Financial Freedom: What does this mean?

In my business I’m constantly challenging the notion of the “struggling artist.” Certainly many people nowadays, including artists and creatives, are trapped in the Month-to-Month financial game. However this happens no matter what industry you are in and how much income you make. I’ve had clients earning over seven figures who scrambled every month to make payments. 

Working in banking many years, I learned that Financial Freedom is highly subjective and personal. For some, it means living “comfortably” now and when they retire. For others, it’s having millions of dollars set aside to be able to live whatever lifestyle they wish.  

Whatever it means to you, Financial Freedom starts with Saving. In order to save, you must have an idea of your budget, income and expenses. It may not be easy at first, but saving requires discipline. The beauty is that small actions today have a great effect on what happens to your tomorrow.  

How about being a slave to debt and your expenses? We’re in one of the worst debt crises of all time. Yet, if you are disciplined, you can begin to turn around your life from a position of indebtedness to independence.  

Even with a financial background, I’ve made mistakes with money. It was glaringly apparent when I became an arts entrepreneur and had to deal with fluctuating income. Fortunately, I used my past experience as a wake up call to learn and implement “the way”!  

We all need a Plan that works, and stick to it. Financial Freedom doesn’t happen overnight. It takes time to get out of indebtedness, and it takes time to build a nest egg. BUT, you can begin to change how you manage your finances immediately, which can lead you to a positive path. Little by little you’ll find your way to your golden eggs. It just takes the first step.

Remember the great quote by Vincent Van Gogh: “Great things are done by a series of small things brought together.” 

*This article is derived from Ch. 9 on Business from my new e-book Sculpt Your Life From Sketch to Masterpiece(TM) designed to give you the 12 Strategies for Success!

For more FREE tips and strategies and to get instant access to the "12 Secrets to Success Strategies" video with more great insight from Sculpt Your Life From Sketch to Masterpiece(TM), sign up now:

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