Master the Art of Progress



Master the Art of Progress:
Harnessing the Power of the 1% Rule

What if you improved just one percent every day? Of what if you improved one percent each week? It could be improving your knowledge of the housing market, mortgage lending, reverse mortgage regulations, or a better understanding of the basic tenets that most financial advisors adhere to.

If you dedicated yourself to daily improvement you would be 37 times better in one year. Or so says the math. It’s an intriguing concept and one that certainly warrants our attention. However, we’re not money-earning compound interest- we’re people who sometimes have big leaps in our professional and personal development, and other days it seems like for every step we move forward we take two back.

But what if we committed ourselves to the mission of incremental and continuous improvement? If we did we would see remarkable growth which at a minimum would help soften the blow of the periodic big mistake or failure. At least when that happens we’re further ahead than we would have had we accepted the status quo.

So where do we begin? A piece of paper is a good place to start. Write down what you want to improve, what areas you want to see even more growth in, and lastly those areas where you just plain stink. It’s okay. I have plenty in the last category too.

Next, break it down. How would you pursue improvement? Is it reading, enrolling in online classes, or working with a mentor or trainer? Write it down.

Now it’s time to set some checkpoints. Write down which dates you’ll check on your progress. Add this to your calendar as well as the time blocks of the activities that come before. Note- that we’re not establishing goals, but activities in the areas we want to enhance.

Tiny gains become bigger gains. Small daily decisions lead to big outcomes. Remember what seems insignificant today may have big repercussions or outcomes in the future.

Sure, at some point you’ll realize this is the best I can do in this area. But that certainly beats a lack of growth or stagnation or even worse digression.

So what if you improved just one percent each week? Who knows- but you’ll find out if you try.

Share your thoughts in the comments below.

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Homeowner’s Insurance Premiums are Surging in These Five States

American homeowners, especially older ones, are being crushed by record increases in homeowners insurance premiums.

Money.com reports these five states saw the largest increase in premiums from May 2021 to May 2023.

  1. Florida: 68% ($1,127 to $1,896)
  2. New Mexico: 47% ($855 to $1,255)
  3. Colorado: 46% ($1,390 to $2,031)
  4. Idaho: 46% ($552 to $804)
  5. Texas: 46% ($1,471 to $2,141)

The spike in premiums is attributed to a perfect storm of a spike in natural disasters, record insurance losses, and higher construction prices.

 

Natural disasters such as wildfires have long-lasting impacts. For example, in the wake of New Mexico’s most destructive wildfires insurers began hiking homeowners insurance premiums. The same can be said for Colorado, Idaho, and California. In the wake of the disastrous and deadly Maui Fire island residents will soon face the same challenge.

 

As a result of the surging cost of premiums, many older homeowners without a mortgage on their home have chosen to forego homeowners insurance altogether. The Insurance Information Institute reports that 5% more homeowners have not purchased homeowners insurance than just two years ago.

 

Such homeowners are very likely house-rich but cash-poor. Even worse, their greatest source of wealth is now at risk of being wiped out. One disaster could push an older homeowner into complete financial ruin or possible homelessness.

 

Reverse mortgage professionals who originate in states with marked premium increases should reach out to their local property and casualty insurance agents. Ask if they’ve seen an increase in homeowners insurance policy cancelations. If the agent has noted an increase of clients opting out of insuring their home you can explain that reverse mortgage could provide the means needed to purchase a policy and protect what’s likely their largest asset.

 

Working with an agent

While the insurance agent cannot divulge the identity of homeowners who’ve canceled their policy, they can make contact and recommend the homeowners arrange a meeting to learn how a reverse mortgage could help get them insured again.

 

This is a potential win-win-win scenario. The homeowner wins by protecting their home. The insurance agent wins back a client. The originator wins a sale but most importantly, helps eliminate the risk of a homeowner losing their home to a disaster or fire.