By: Stefan Aarnio
Freedomway.ca
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In North America, for the past 100 years, we’ve had an astounding progression of wealth. Every generation from 1900 has enjoyed a better life with more opportunity and more amenities than the last. Our grandparents (the war generation) who lived on the farm gave their children a better life by moving to the city. The children (the baby boomers) grew up and got manufacturing jobs, then the next generation grew up, went to university and got middle management or intellectual careers (Generation X) and today we are at the next step in the progression: Generation Y.

Unfortunately, where other generations had an “easier” time claiming a better life than their parents, I can see that Generation Y will be the first generation to be poorer than their parents.

The poorest person today in North America has far more amenities than a wealthy man 200 years ago ie: flushing toilets, heated water, refrigerators etc. Even in the poorest households in Canada, first world amenities are available. We live in a very wealthy time, but unfortunately, like musical chairs – the music cannot go on forever and eventually someone is left without a chair. In the game of inter-generational musical chairs, generation Y will be the generation “without a chair”.

I know first hand how difficult it is for Generation Y to fit into the ever-changing economy. I’m born in 1986, graduated from high school in 2004, university in 2008 and hit the job market later in the same year. I did everything conventionally ie: go to school, get good grades, get a degree, get a good job and instead of landing a promising career, I wound up with post grad depression and lay on the couch for months while trying to find something that matched my talents, skills and useless degree.

The sad part is, in 2004 after high school, I took a summer job painting houses for $10 per hour and I worked that summer job every year until I graduated university in 2008. In 2004, minimum wage was $6.50 per hour, so $10 per hour was a great deal. By the time I finished school in 2008, minimum wage had inflated to almost $10 per hour. My first job out of school was a dead end, telephone sales, straight commission, middle of the night job that earned $10 per hour even after hitting my sales targets and ranking in the top 5 sales people. I felt like I had sold out and was sold a fraud. I was better off skipping school and opening up a house painting business. I remember seeing that skilled painters could make around $30 per hour and I was now making $10.

Today in 2013, in Winnipeg, Manitoba where I live, minimum wage is now $10.45 and it will be increasing again next year – along with the price of every single commodity in the economy.

But forget my first hand experience, why is it that Generation Y will be poorer and have a more difficult life than their parents, the baby boomers?

Here are 15 reasons why:

1)    Faster changing job market

a.     Generation Y will statistically change jobs every 4 years. It is no longer feasible to get into a career or company and stay for life – the world is changing too rapidly and labor is always in flux. There is a high probability for Generation Y to learn and relearn skills many times throughout their lives and they will not be able to stay in one place very long.

2)    Highly skilled knowledge workers are needed and formal education does not offer young people what is required.

a.     We live in a primarily knowledge based economy today where the skills to survive are not readily available. For myself, I am an entrepreneur and the knowledge and skills required are unavailable from traditional education institutions like universities and colleges. Apprenticeships and internships are coming back so that young people can actually learn practical skills needed for a successful career. For the last 10,000 years, humanity has acquired skills through apprenticeships. Universities, as trade schools are a relatively new idea, and an idea that fails to deliver what it promises.

3)    Too many options

a.     Having no options can be a luxury, in today’s world, too many options is certainly a burden. Making a choice to commit to a career is more difficult nowadays because young people are bombarded with hundreds of options. In reality, we only need one path to become successful, but the illusion of too many options creates doubt and inaction.

4)    No mentors/parents

a.     Where the baby boomers enjoyed a nuclear family ie: Mom, Dad and a collection of brothers and sisters. Most of the Echo boomers or Gen-Y families are divorced. Many young people don’t have access to the guidance or mentorship that other generations had access too. In the old days, if your father was a blacksmith, you were a blacksmith and he mentored you. Today, you barely know your father, hardly see him and when you do see him, he has nothing valuable to say.

5)    Increasing inflation ie food/clothing/shelter

a.     The economy is inflating at a rapid pace. Items like food, clothing and shelter get increasingly expensive every year while wages stay the same. A rising minimum wage doesn’t help because when the bottom rises, so does everything else in relation to the bottom. Buying a house was once a necessity for the baby boomers and for the echo boomers it may become a luxury or impossibility.

6)    Increasing education costs and education fraud/deception

a.     Education is increasingly expensive year after year in both Canada and the United States. In Canada, we have a much easier time financing education, but sadly, many students leave school with a mortgage of student debt (minus the house). In contrast, our parents could finance education with a few months of work at a summer job at the end of the school year.

7)    Fewer workers are required

a.     Businesses require fewer and fewer workers to do the same tasks. Between my laptop and cell phone, I do not need to hire a secretary because the technology can handle the work of many people. Other technologies wipe out entire classes of workers like 1) ATM’s replacing bank tellers and 2) automated factories have mostly replaced human assembly lines ie: the decline of Detroit in the last 60 years.

8)    Manufacturing has moved overseas – global competition, not local

a.     Generation Y not only has to compete with the local boys and girls for jobs, they also have to compete with their peers in India, China and around the world. I can hire a graphic designer for $300 in Toronto, or get a similar product for $30 from Pakistan. Sadly, $30 goes a long way in Pakistan and the designer in Toronto can’t even make the rent on $300.

9)    Increasing household debt

a.     Not only does Generation Y have more debt through student loans, the entire household that they come from has more debt than ever. Low interest rates has made debt affordable and not only is Generation Y loaded with credit card debt, The boomers (their parents) have remortgaged their home with a Home Equity Line of credit, have multiple auto loans, and maxed out credit cards.

10) Parents who cannot retire and will become a burden

a.     We are sold a fantasy of retirement in North America that at age 55 (or 65) you will get to golf and lie on a beach all day. The reality is that the vast majority of baby boomers will never retire and shortly after the “kids” move out (generation Y), the “parents” (baby boomers) will be moving back in with the kids (to their small home or apartment that is unaffordable). However, this isn’t too terrible, around the world in Europe, Japan, China, India, and even North America 100 years ago, it was normal for inter generational families to live together. Unfortunately, the dream of the retirement that the “war” generation had is smashed forever for the sweeping majority.

11) The deception that 30 is the new 20, lost time

a.     Somehow, generation Y is one of the most “babied” generations in history. Adulthood is now pushed towards 30 because of overbearing parents and over sheltered kids. It also takes more resources and more time to do things that were once normal like 1) Moving out of Mom and Dad’s basement and 2) Starting a career that can provide a living. Losing an extra decade to school or “finding yourself” will severely affect your long-term wealth and ability to invest for your future. An extra 10 years for your money to grow can in theory allow you to have twice as much principle in the future.

12)  Less work ethic

a.     Along with an over sheltered generation Y is a poor work ethic. Generation Y is more interested in Facebook and Twitter than they are with putting in the time and getting ahead. Bill gates used to say “Your grandparents had a word for flipping burgers, they called it opportunity”. It amazes me to see how little interest there is in “getting your hands dirty” or “starting from the bottom”. Gen Y wants to be handed the corner office on a silver platter.

13)  More materialistic

a.     Because Mom and Dad were “keeping up with the Jonses”, their children, Generation Y, are much more materialistic than their parents were. Their parents had to slave away and save for years to afford the house in the suburbs and two brand new cars (purchased on credit). Without ever working to earn, young people want to keep up with the illusion of success and have financed their glamorous lifestyles on 1) student loans 2) credit cards or 3) hand outs from mom and dad. Sadly, all of the resources above will eventually run out and when they do, the over spending youngers will be hit harder than a heroin addict going cold turkey.

14)  The attitude that “we should have it better” than our parents, when in fact, we will have it worse.

a.     Many young people do not even try to enter the job market or start at the bottom and work their way up. They remain underemployed working at Starbucks while trying to become an actress, artist, musician, writer or some other esoteric dream without facing reality. The truth is, generation Y will have a much more difficult time growing up and raising a family than the boomers did and we will have to work much harder than our parents ever did to achieve the same lifestyle.

15) Technology changes the game every 5 years or less

a.     The last threat to Generation Y is that technology is changing every 5 years (or less). New jobs are being created and old jobs are being deleted just as fast. We can never predict which technologies are coming next and which industries will be forever changed or wiped out. Think of Blockbuster getting annihilated by Netflix or the traditional record labels becoming wiped out by Napster and online music. There are always young and hungry entrepreneurs looking to wipe out the dinosaur businesses of the past.

I don’t want to appear to be overly pessimistic in light of all of the facts above. There is more opportunity in the world than ever; new jobs, new markets, new technologies and new businesses can be created in record speed and magnitude. However, it will take a smarter, harder working, and more creative generation to capture such opportunities and that is what Generation Y must focus on becoming.

Thanks for reading,
Stefan Aarnio
Freedomway.ca
facebook.com/stefanaarnio
https://twitter.com/stefanaarnio
http://ca.linkedin.com/in/stefanaarnio

Get Stefan Aarnio's book "Money People Deal: The Fastest Way to Real Estate Wealth" at MoneyPeopleDeal.com!

Remember: Please share this article if you found it enjoyable!

By Stefan Aarnio
Freedomway.ca

Photo left: Build your tribe with the 3 most important types of capital.

In the world of business, capital is needed to fund ventures, purchase equipment, land, product, time, talent, people, relationships and leads. Most entrepreneurs and Real Estate investors chase and compete for cold hard capital all day long and never learn about the "other" types of capital that are often more important and powerful than cold hard cash.

When I began in business, all I could think about was cash, profits and revenues. I couldn't see the bigger social, educational or relational picture that was taking place around me. Consequently, when I began in the world of business, I was isolated, ignorant, alone and broke. In the animal kingdom I would have been eaten by a large carnivorous predator.

Unfortunately for me, my fascination with traditional capital had blinded me from the true wealth and value that circulates every day and pays zero in taxes to the government. I didn't realize that business is a TEAM sport and that you cannot run it alone with just cold hard money - or lack thereof.

JT Foxx, one of my teachers and mentors, showed me the 4 types of Capital, and the 3 that most people don't think about.

The 4 types of capital:

1)   Capital (real money) for business: This is the type of capital that everyone thinks about. It's cold hard cash and most people chase it and compete for it. In my opinion, this type of capital is the most worthless of the 4 types and very easy to obtain if you understand the other 3 types of capital.

2)   Educational capital, money for your education: This is an extremely important type of capital. Many people finish high school or university and then never invest in their education again. This year alone, I have invested 3x my college education in educational capital and will have it all earned back by the end of the year. This type of capital is absolutely required for you to grow your business. The people who avoid this type of capital move slowly through life, cannot expand their business geometrically and cannot collapse timeframes. THIS TYPE IS ESSENTIAL.

3)   Social Capital – investing in causes etc. We've all heard of social capital, but so many people don't build their business around it. People do not buy products and services, they buy what you believe in. Social capital is created when you do GOOD things for your community. Make sure you give back once in a while. Select a charity to either raise for or volunteer for that aligns with your business and beliefs. This type of capital is extremely important because prosperity attracts prosperity. If you are going to succeed, you need to be an attractor of prosperity and not hoard to create poverty. People who fail to invest in social capital become isolated, alone and vulnerable. DO NOT FORGET ABOUT SOCIAL CAPITAL.

4)   Relational capital – between people. Relational capital, like social capital connects us on a greater level. People are tribal creatures and in the tribal days, isolated tribe members were cannibalized by other tribes or predators in the jungle. Today the world is no different. Relational capital is formed when you take care of the people around you and build solid, long lasting, reciprocal relationships. This type of capital is the glue that teams and tribes are built out of. Without this type of capital, you cannot bind yourself to other people or create strategic partnerships or alliances to take on bigger missions. Build your team, invest in RELATIONAL capital or die alone at the hands of a bigger, stronger tribe.

The very interesting thing about the 4 types of capital is; the more you focus on the unconventional types of capital, the more opportunities, people, deals and cash you attract. Recently in my own business, I have focused on the 3 neglected types of capital and my business has exponentially exploded. I work on the projects I want to while bigger and better opportunities fall into my lap every day. I focus on my network, bringing value to other people and creating synergies with colleagues. This is where successful people find true wealth and satisfaction in life. Stop chasing the money... The harder you chase - the faster it runs.

Thanks for reading,
Stefan Aarnio
Freedomway.ca

P.S. Please share this article if you find it helpful.

By: Stefan Aarnio, FreedomWay.ca
Photo Left: Phill Grove and Stefan Aarnio

I had the pleasure of meeting an extremely successful Real Estate Investor by the name of Phill Grove in Chicago last week. Phill has done 1000 Real Estate deals in a period of 5 years and made a $1,000,000 profit in Internet Marketing in his first year. The man is a scientist of his craft and extremely methodical in his approach. I will be writing a number of articles on lessons I learned from Phill Grove (phillgrove.com), but I'd like to share one that we all can study from and apply immediately.

Business, Real Estate Investing, Raising Capital and finding deal partners is a social game. All of these games are won and lost by networking. He who is the best networker gets the best access to deals, money and people. Since Real Estate and Business are heavily driven by social skills, Etiquiette and how you conduct yourself is often the deciding factor between the investors who become rich and the others who die broke.

Etiquette is a french word that means "a code of behaviour that delineates expectations for social behaviour according to contemporary conventional norms within a society, social class, or group. The French word "étiquette", literally signifying a tag or label first appeared in English around 1750.

Your Etiquette defines you and as the definition above suggests, it will signify, tag and label you in a social circle and will either give you the midas touch or the kiss of death in a social network.

Some basic fundamentals for etiquette are:

1. Have excellent manners - Please and Thank You go a long way.
2. Don't "fake it till you make it", act like you belong.
3. Dress for success. Look like the boss, not an employee. Many investors start out with poor image. Consider getting an image consultant and pay attention to your shoes, hair, eye brows, and grooming.

Positioning is important when networking and once you have the basics down, position yourself where the money is:

• Insert yourself into high net worth situations like charity events, operas, country clubs, golf clubs, theatre, art and the right parties. Remember, putting all of this together will take time. You are building a network.

If you already have some money, Phill Grove recommends giving $10,000 to the united way. After you make your donation, you will be flagged by every charity in town and invited to every single event charity event available. He also recommends donating $100,000 to any politician to be flagged on every political list in town. Another great positioning tip from Phill is to buy a Bentley and get a golf membership, schedule your tee times for 2:00PM on Thursdays and start golfing with the power brokers that prefer that time slot.

Unfortunately not everyone has $100,000 sitting around to donate to a politician or access to a Bentley so we will have to get a little more creative.

Phill Grove's ETIQUETTE CASE STUDY, 3 ways to socially kill your personal brand as an investor.

Stefan's comment: I have met many people who fit into the following 4 Case profiles. There are many many people who run around at events falling into these categories. These are REAL types of people and they are VERY common at investor events.

CASE 1) "The Magic Trick Guy". You meet "Magic Trick Guy" at a local real estate investing club or seminar. He has the following attributes:

1. Poorly dressed
2. Missing teeth
3. Performs magic tricks for others at the event
4. Leans into your personal space while talking
5. Has bad breath
6. Follows you like a stalker
7. His intro: "I can transform a $200,000 investment into 2 BILLION DOLLARS in 3 months"

Established brand: He is a crazy seminar person.

Case 2) "The Bulk REO Webinar Guy". You meet the "Bulk REO Webinar Guy" at a local real estate investing club or seminar. He has the following attributes:

1. He listened to a FREE webinar on the internet and has decided to make millions in Bulk REO deals.
2. He brags about his success at the event.
3. His intro: "I'm looking for $50M for a big bulk REO Deal"
4. He has no prospectus and says "I know what I'm doing, I don't need one!"

Established Brand: Idiot who doesn't know what he's doing, very common brand to find at an investment event.

Case 3) "The Real Estate Club Guy A, B and C". You meet 3 guys at a real estate club, their names are A, B and C. They all claim to have a great deal:

1. Investor "A": Has an REO deal listed at $93,000 that he can get for $86,000 that has been listed for 5 months.
2. Investor "B" has a mansion worth $1.6M that he can get for $1.1M (The catch is that it's only 1.2M and it has been sitting for 34 months).
3. Investor "C" has a Land deal, a mobile home deal, a weird semi commercial thing, a fire damaged house, a risky newbie development deal and a tear down at "land value".

Established Brand: Rookie investors who don't know what they're doing.

Stefan's comment: These investors in Case 1,2 and 3 are committing social suicide by having poor etiquette and presenting bad deals in an unsolicited manner. I know because I used to fall into some of the above categories.

Phill Grove's guide on: How to scare money away:

Any jackass can find a high risk deal and then ask someone with money to assume all of the risks. However, people with money want to partner with other people who treat their money more conservatively than they treat their own.

So many new entrepreneurs and investors have a "I want to go to Vegas and gamble your money mentality" - this terrifies people with money.

People who have money and want to invest are NOT LOOKING TO GAMBLE. They want:

1. Safety First
2. High Returns
3. Speed
4. Rinse and Repeat
5. WInners and who minimize their risks.
6. People with experience who have done their homework and know what they are doing.

Phill Grove's ETIQUETTE CASE STUDY: One way to brand yourself as a Winner:
Case 4) (Continued from above) Profile: "The sharp looking kid at the Billionaire Class". You meet a sharp looking kid at an investing class and he has the following attributes:

1. He is dressed sharp
2. He speaks well
3. Talks of working long hours every day
4. Talks about studying, training, books, he is well read.
5. Talks about doing tons of marketing and spending lots of time evaluating deals, but he's looking for a good one.

Established brand: This kid is a go-getter!
Phill Grove's take home feeling from this kid: "I hope this 21 year old kid calls me when he's got a deal!"

***End of Phill Grove's case study.***

Stefan's comment: I hope you take some time to carefully study the attributes and etiquitte of the above 4 cases. Ask yourself the honest question "which one of these cases am I closest to?" What parts of etiquette do I need to work on? After spending some time studying these cases myself, I have already taken drastic measures to study more, improve my wardrobe, improve the way I speak and read more books. Raising money from other people should not be taken lightly and you have to be a professional. There is no room for idiots.

Remember: Etiquette is an essential skill in the networking game and a major key to succeeding in the world of business and Real Estate. Proper Etiquette can spell the difference between becoming rich and dying broke.

Thanks for reading,
Stefan Aarnio
freedomway.ca

By: Stefan Aarnio
Photo: Lunaar, prior to finishing in the studio.

The Jubilee Fund in Winnipeg, Manitoba is auctioning my original painting "Lunaar". It's an Original piece (A HUGE Painting) 60"x36" made of Acrylics with crushed glass and sand on Stretched Canvas. The website for the fund allows bidders to bid up the price of the painting and the current bid is $100 (Less than the price of the canvas). 100% of the proceeds go to the Jubilee Fund and allow for "Ethical Investing in Manitoba".

The website states:

"
Artist: Aarnio, StefanOn the Lunaar

60" x 36". Original Acrylic with crushed glass & sand on stretched canvas.

Signed by Artist.

Stefan Aarnio was born and lives in Winnipeg. His art is wildly coloured, textured, high contrast acrylic artwork. He relies mainly on pallet knife and spatula to aggressively lay down the hard edged lines that define his work.

Stefan can be reached at 204-960-3689

Value Price: $997

Current Bid: $100"

Now is the chance to get an original piece of Artwork, help out charity and own one of my biggest pieces for a ridiculous price. Please take the time to bid on this piece, you will not be disappointed with the piece or the cause... And with a starting bid at $100, you really cannot go wrong - it's a no brainer.

http://www.jubileefund.ca/auction.php

Thank you,
Stefan Aarnio

Local Winnipeg Artist, Real Estate Developer and Entrepreneur Stefan Aarnio has launched a program open to all charities in the City of Winnipeg, Manitoba. Although successful at selling his locally for profit, Mr. Aarnio's successes in Real Estate have allowed him to produce Art that is no longer commercially for sale.

All of Stefan Aarnio's current and ongoing art pieces are to be donated and sold through charities only, all proceeds collected belong 100% to the charity. Stefan Aarnio has made the decision to have all of his artistic work serve a higher purpose.

Our program has been launched with a donation to Jubilee Fund, a charity specializing in funding small, local entrepreneurs who cannot secure traditional financing.

It is our mission to serve as many charities as possible with quality, local Art pieces for fund raising purposes to serve their communities at a maximum capacity. We are always seeking charities looking for specific Art donations.

If you are a charity interested in fund raising with Stefan Aarnio's art, please contact us here.

For additional samples of Stefan Aarnio's Art work please visit stefanaarnio.com