Tuesday, June 25, 2013

How To Get Rich - Learn To Squirm ?

Are you comfortable with the life you have today ?

Do you think being comfortable is the best way to become wealthy ?

If you do, think again ! Being comfortable is a huge roadblock to building wealth !

The Comfort Syndrome

How often do you hear the rags to riches story being told ? There is a very good reason why this change in position is so vital to one's success.

The more comfortable one's life is when they are growing up, the less motivated they are to make the big changes that are needed to become really wealthy. When one comes from poverty there is also much less to lose on the way to building wealth. They have not been used to life's comforts so they don't know any better.

Growing up in a comfortable environment where you are used to having basically everything you need makes a person extremely lazy. You merely have to do the bare minimum to maintain your comfortable lifestyle. You do not want to risk your comfortable lifestyle by taking the risks you need to take to become really wealthy.

Squirm Like a Worm

Have you ever watched an earth worm squirm around when you disturb their comfortable surroundings ? They frantically look for another safe haven before they are eaten or squished. This is a protective reaction that nature provides. We as humans are not that much different.

We become very comfortable in our surroundings and do not like it when anything or anyone comes along that threatens to change that comfort zone. We have a tendency to do whatever it takes to remain the same and to not venture into new territory. We are like worms hiding under a rock.

To really get ahead in life, you will need to take some chances. You will have to crawl out from under your comfort zone and try something new. At first you will feel very uncomfortable and try to squirm around to find safety. This is nature's protective way of keeping you safe. But keeping you safe also prevents you from growing.

What To Do

Because we are blessed with a superior brain compared to the earth worm, take the opportunities that are available to learn all you can about becoming wealthy. Learn from those that have gone before you.

Next, get out from under your comfort zone and try something new. Challenge everything from your past that you took for granted. Squirm like a worm until you find the way to grow to a point where your fears melt away. Nothing ventured, nothing gained is an old saying that is still very relevant today.

You do not have to come from rags to become rich. But you do have to get out from under your rock of comfort to achieve anything in life.

As always, I welcome your comments and suggestions for future topics.

Tuesday, June 18, 2013

How To Get Rich - Use Your Magic Mirror

What do you see when you look into the mirror ?

Do you see the type of person you really want to be ?

If not, you had better read on !

Mirror Mirror

Mirror, mirror on the wall. Who is the fairest of them all ? This old line from one of the Disney classics is something you should give a try from time to time. Let me explain why !

Most of us should have a mirror we can look into. In fact, if you're like most people it is something you do daily without giving it any thought. But do you really look deeply? Probably not.

Ok, this may seem like a crazy post, but please bear with me. What you see in the mirror is what others see as well. On the surface it seems it is all you have to work with. But is it ? Not at all !

What Do You See

When I look into the mirror I see a person, sometimes happy, sometimes sad. But above all I always see the person that has made or will make the biggest difference in my life. Whatever actions that change my life are made by this person in the mirror. Not by anyone else.

There it is. You are one hundred percent responsible for everything that happens in your life. There is no one else in the mirror telling you what to do or what to say. Just you. 

Blame Game

Do you know someone who always blames someone else or something else for all their problems ? I think we have all encountered these types of individuals. In fact sometimes I have caught myself being one of them. That is why I use my magic mirror. It reminds me of who is actually responsible for where I am today.

We blame other outside forces simply because it is easier. It is very difficult to blame ourselves and realize that we are responsible for our actions or in-actions. That's right, the lack of taking action is one of our many faults. 

Magic Mirror

I call it my magic mirror because it reveals who I really am. It shows who I should really blame for mistakes and it shows who I should thank for all that has been achieved. Of course there is no real magic at all, but mere reflection. But what a reflection it is. The person that will change my life in whatever way I wish. 

The one and most important thing your magic mirror will show you is who you really are. Who you really want to be must come from within to someday be reflected outwards to show your future self.

What To Do 

Whenever you feel yourself blaming anything or everyone but yourself, look into your magic mirror. Take note of who is really in charge and who can change your future. Tell yourself what you want to do and when you want to do it. Then make it happen. Simple.

If you start making this a habit, you may find that you will outwardly blame others less and accept responsibility for where you are today. Your magic mirror will become the reflection of your true self.

As always, I welcome your comments and suggestions for future topics.

Tuesday, June 11, 2013

How To Get Rich - Generate More Time

Do you know how important time is in growing your wealth ?

Do you think the wealthy have more time than you do ?

Yes, the wealthy actually do have more time. Read on to find out how !

Why Time Is So Important

When it comes to investing, time is extremely important. Simply put, the sooner you start building your wealth the more you will have.

Think of yourself as saving a fixed amount of money every month. The more months you do this, the more money you will have. Go to the tools page on this site under the savings calculator. Run through a couple of examples and see what the outcome is. You may be amazed.

The sooner you start your wealth building plan the more time you will have to grow and enjoy it. Ideally, you should start your plan right after high school or college, with your very first job. Before this point is even better if you can. Time is on your side.

There are 525,600 minutes in each and every year plus an additional 1,440 minutes every fourth year (leap year).  This should give you plenty of time to plan for your future. However, most waste away these valuable minutes sleeping, eating and just plain goofing around.

Wealthy Have More Time 

The wealthy have more time to become even wealthier because they use other peoples time. Let me explain.

People that own businesses or rental properties quite often hire employees to make money for them. As long as the employee generates more income for the employer than the wages and benefits paid to the employee, the employer gains. The more profitable employees you can hire, the more money you will make

Most full time jobs are 40 hours per week, or 124,800 minutes per year. Minus approx. 24,000 minutes for annual vacation (2 weeks) This means the average individual sells approx. 100,800 minutes of their time each year for a fixed amount of money in wages. This time is being used to make money for the employer.

This means that for every 5 or so employees a wealthy person has, their time is doubled. This is called time leverage and it is one of the most powerful concepts for accumulating wealth.

Employee or Employer

Now, if you had a choice I think you would like to be an employer instead of an employee, right ? At least I hope so after reading the above.

Did you know that some of the wealthiest individuals in the world today are college drop outs ? It's true, and they realized early on in life that they would not become wealthy by being an employee for someone else. There simply wasn't enough time no matter how high a wage they could earn.

However, for most of us, we simply don't have the knowledge or the ideas to start our own profitable business. There is also a great deal of risk and time required to develop a profitable business on our own.
The good news is there is a safe and easier alternative for building your wealth.

Be Both and Prosper

It is possible for you to be both an employee and an employer at the same time. You can be an employee to earn enough to pay your living expenses and live your desired lifestyle. You can be an employer by investing a portion of your income in large profitable businesses who hire many employees.

For most, it is best to be both, at least until the investments make enough to pay for your living expenses and support your desired lifestyle. At that time you can "retire" as an employee and become an employer full time.

Well, actually your time can be used to enjoy your life or look for other ways to become wealthier, it's your choice. This is because you have now hired other people (through your investments) who will be working to make you money. You no longer have to sell your valuable time for money.

Your time and the time of others can be used to your advantage to build your wealth. It's now your choice to see how you can use your most valuable commodity, time.

As always, I welcome your comments and suggestions for future topics.

Tuesday, June 4, 2013

3 Ways To Make Money From Real Estate

Do you know all the different ways you can make money from Real Estate ?

Do you think the truly wealthy ignore any of these income streams ?

Chances are you don't and no they never ignore all the income streams !

Building Real Estate Wealth

Real Estate offers the average individual an abundance of opportunities to add to their wealth building efforts.
There are three basic forms of profits from Real Estate investments. Many investors do not realize how to maximize their profits in all three ways from one single investment. Let me show you all three ways so that you can decide how you will maximize your profits.

Profit Builder #1

This first way of making money in Real Estate is what most people look at when buying a property. It is a thing called Capital Gains. It basically means you buy a property, do some repairs or renovations and sell it for more than you paid for it. Some call it flipping and depending on the market conditions during your hold period, it can be quite profitable.

The big problem with this form or Real Estate investing is that you totally ignore the other two forms of income that you could be making. In my opinion this form of "flipping" is more speculation than truly investing. If markets are in a decline you could lose a lot of money. Let's look at the other ways.

Profit Builder #2

The second way of making money in Real Estate is Rental Income. You buy a property, fix it up enough to make it rentable to good tenants and collect rent each and every month. The key to making money here is that you must have positive cash flow. In other words what you collect in rent must be more than what you pay out each month in expenses.

This form of Real Estate investing in much longer term than "flipping" as shown above. For this reason, you are not so concerned about the short term direction of the market so long as you have positive cash flow each month. Your bigger concern here is the quality of your tenant and how much damage they will do to your property.

Profit Builder #3  

The third way of making money in Real Estate is Equity Accumulation. You buy a property, fix it up enough to make it rentable to good tenants and then take your money out by getting the biggest mortgage you can. This way you can use your money to buy another property or other investment. Let me explain this a bit further to clarify how money is made.

The key here is to still have positive cash flow after making your mortgage payment each month. If you have chosen your property and your tenant well this should be the case. Most mortgages contain two components, interest and principle repayment. The principle repayment is basically the amount of the loan that you pay off each month. This amount will increase over time based on the amortization of the mortgage.

This may seem confusing at first, but simply put, your tenant is paying off a piece of your loan every month. This makes the portion of the property that you own more each month. Therefore your equity (how much you own) will continue to grow over time.

What To Do  

You must look for properties that will give you a positive cash flow after all expenses including management and mortgage costs. Using others to manage your properties will free up your time and using mortgages will free up your money. More time plus more money equals more opportunities to grow your wealth.

This process can be repeated any number of times anywhere in the world you choose that offers the best opportunities. This is how the truly wealthy continuously grow their wealth, one investment at a time.

In summary, buy a property, fix it up a bit, rent it out, get a mortgage, sell it when the time is right. Repeat, repeat, repeat. Reinvest your profits in other opportunities. Continuously grow your wealth.

As always, I welcome your comments and suggestions for future topics.