Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

Category: Money & Wealth

Rat Race

An endless, frustrating, self-defeating, or pointless pursuit that conjures images of lab rats racing through a maze to get the cheese, much like society racing to get ahead financially. Commonly associated with an exhausting, repetitive and overscheduled work that leaves little time or energy for relaxation or enjoyment. Burdened with financial obligations and responsibility to pay mortgages/rent, cars, credit cards, children and a never-ending cycle of consumption, digging deeper into financial holes, stress, worry, fear and lack of choices. Doomed to put up with dead-end jobs, careers, and relationships, living paycheck to paycheck with no end in sight. This lifestyle happens independently of income level, with many high-income earners unable to quit the treadmill. The key to winning this race is: don’t be a rat.

Real Estate

A property comprised of land, buildings and any natural resources including flora and fauna, farmed crops, livestock, water, and minerals. Real Estate can be grouped into three categories: residential, commercial and industrial. Examples include undeveloped land, houses, condominiums, townhomes; office buildings, warehouses, and retail store buildings; factories, mines, and farms.

Real Rate of Return

The actual financial benefit of an investment after accounting for inflation and taxes. The after-tax real rate of return is an accurate measure of investment earnings and usually differs significantly from an investment’s nominal rate of return. Calculated as the nominal return – inflation rate x tax rate = Real Rate of Return.

Assume your bank pays you interest of 5% per year on the funds in your deposit account. If the rate of inflation is 3.5% per year, and your tax rate is 33% the real return on your savings is 1%.

You may think 5% sounds great, however, when taking into account inflation and taxes, it is a very low return. If the nominal interest rate goes down, inflation goes up (global inflation was 5.05% in 2011), and taxes go up you can have a negative return on your savings.



1. Something or someone that can be used for support or help. 2. An available supply that can be drawn upon. 3. Something that can be used to advantage. 5. Available capital; assets.


A fictitious country that is designed from scratch to personify all the excesses of capitalism, greed, workaholism, and consumerism to create a society that is soulless, heartless, and unhappy. The value of citizens is measured by their job title, salary, and sacrifices made in the pursuit of money, wealth, status, success, and recognition. Love is measured by external factors, rather than internally, inequality reaches extreme levels with an attitude towards the less fortunate that they have access to the same opportunities and don’t make anything of themselves, therefore they are undeserving. The media spews bad news, while the future is talked up frantically with pollyanna optimism. Art, aesthetic, nature, philosophy, and spirituality are devalued and discouraged as wastes of time and opportunity. Rich celebrities and capitalists are celebrated while kindness and compassion are marginalized due to a low perceived ROI. Working longer and longer hours are seen as heroic with intense competition for who can sacrifice the most personal life for the career, for success, and for recognition. Vacations are frowned on for people who are not committed. An inability to relax leads to a frenetic pace of life that is classic time poverty, with heart disease and depression masked by fashion, youth, and artificial beauty.


1. The probability or threat of loss, liability, damage or any other negative occurrence and that may be avoided through preemptive action. 2. The probability that an actual return on an investment will be lower than expected. 3. Can be divided into categories: emotional risk, relationship risk, physical risk, political risk, sovereign risk, operational risk, financial risk. 4. Risk can be reduced through preemptive action including; buying insurance, education, and experience.


Return On Investment is a performance measure used to evaluate the efficiency of an investment. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.

To calculate your ROI, the formula is:

Return On Investment (ROI)

Rule of 72

A shortcut to estimate the number of years required to double your money at a given annual rate of return. Divide the rate, expressed as a percentage, into 72. Years required to double an investment = 72 ÷ compound annual interest rate. For example, if you start with $1,000 and want to know how long it will take to double to $2,000 at an interest rate of 20%, then the calculation is: 72 ÷ 20 = 3.6 years.

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