Tuesday, October 29, 2013

How To Get Rich - Be In Control of Your Purchases

Are you one that falls prey to a good sales pitch ?

Do you think the wealthy ever fall victim to a good pitch or line ?

Truth is, even the wealthy are sometimes caught by a smooth talker !

Modern Day Prospectors

In the old gold rush days prospectors used to prospect for gold. They used to buy up supplies, picks, shovels and other equipment to help them in the quest for their fortunes. Would you believe me if I said there were more prospectors today than in the gold rush days ?  

Chances are that statement is true but in a much different way than in the old days. Modern day prospectors use different tools, even the tools of modern day technology. They use telephone solicitation, door to door solicitation, email spam and even personal contact and relations. I am sure you have had encounters with many of these prospectors already even if you are unaware.

The modern day prospector is prospecting for sales for whatever product or service they are selling. Their modern day territory is their calling or mailing list. You could be on any number of these lists. Beware.

Creating A Need

These prospectors will almost always try to convince you that you absolutely need their product or service. They will try and make you believe that your life will be so much more comfortable or so much better with the aid of their product or service.

Do you really think you absolutely need something that you had never even thought about before the phone call or email ? Sometimes yes, but most of the time no. There are some good products and services that are being sold this way, but how do you separate them from all of the others ?  How do you know if any of these are good for your situation ?

Make Their Ideas Your Own

Most sales pitches that you receive this way can probably be ignored without it damaging your lifestyle. In fact you may not be even remotely interested no matter how hard the prospector tries to convince you. But there may be some that make you think they may be good for you. These are the ideas that you should write down and think about further once you dismiss the prospector.

Never buy directly from a prospector, but use their ideas to do further research into the product or service they are offering. In most cases you will find a much less expensive alternative from one of the prospects competitors that do not sell this way. Simple reason, less marketing costs.

What To Do    

First and foremost, never buy from a prospector directly. If you like a sales pitch and feel you would like a product or service, write it down. Take this idea and research all the different sources for it. If it is a legitimate product there should be competition for it. Beware the ones that are not available anywhere else. They could be a hoax.

A good example of a financial product that is sold this way is life insurance. Check out my previous posting on the sidebar " What Is Life Insurance - Is It Really Needed " for more on this sometimes created need.

Take control of your spending. Never buy anything that is not your idea without doing proper research on your needs and the competition. Shop around before buying anything. Initiate all buying and you will never be sold a bill of goods so to speak.

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

Tuesday, October 22, 2013

How To Get Rich - Understand Human Emotions

Do you know what emotion causes investors to lose the most money ?

Do you know how to avoid making mistakes based on emotion ?

Read on to find out how to profit from Human Emotions !

Two Emotions That Fuel Markets

The stock market can be a great place to make a lot of money. It can also be a place that many can lose a lot of money. The reason many lose a lot of money is because of human emotion.

There are two emotions that cause individual investors to make the wrong decisions at the wrong times. These two emotions are fear and greed.

When stock markets are soaring and everything is going up , up, up every day, people get greedy and keep buying long after they should. Many lose sight that things can and do go down very suddenly. Once the market starts to go down, these same inexperienced investors start to become fearful believing that they could lose everything. This often results in panic selling far beyond what is rational, driving the markets down even further.

Fear and Greed are two emotions that experienced investors take advantage of to increase their profits.

How To Make Emotions Work For You

First of all, you must remove all emotion from your investment decision making. You should be choosing your investments based on facts about the underlying businesses, not about hype and what everyone else is talking about. Choose businesses that are making money each and every day no matter what the stock markets are doing at the time. By choosing good businesses you can ignore the everyday fluctuations in markets most of the time.

However, there are times when you can use these fluctuations to make more money. Let me explain. When the markets drop in value, the underlying businesses shares drop in value as well. What this means is that everything could be on sale. You could snap up more shares of your great businesses for a great discount.
Use the fear of others to buy more shares of great businesses.  

On the other side, when the stock market is going up, up ,up for a long period of time, everything becomes very expensive to buy. This is the time when the wise investors actually start selling their shares and build cash  to use for the next sale or market downturn. Use the greed of others to lock in your gains.

Understand Cycles

All markets have cycles. Even without the emotional influences,  markets go up and down for many other reasons. What emotions tend to do is exaggerate these cycles tops and bottoms. By understanding the natural cycles of the markets you are investing in, you should be able to know when the good times are for buying and when the good times are for taking profits. These profits can be used for the next buying opportunities.

The more frequent these cycles are, the more often you can take profits. Thus, the more volatile the market you are in, the more opportunity for profit. But only invest on facts, not emotion.

What To Do

You must take all emotion out of your investment decision making. Buy only good, profitable businesses based on the facts about their underlying operations. Preferably, buy only businesses that pay you a dividend every month or quarter.

Sell some of your shares when you feel they have become too expensive because of the greed of others. Keep the cash from your sales for buying at a later date when everything goes on sale again because of the fear of others.

Understand that cycles are a normal part of investing and that they can be used to make more money if understood properly.

Most importantly, do not become greedy with your investing. Do not become fearful when things go down.
Opportunity awaits if you learn to go against the flow.

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

Tuesday, October 15, 2013

How To Get Rich - Do Not Stand Still

Do you think the wealthy are in the dark about new trends ?

Do you think they are stuck in the past with old ideas ?

The answer is no, the truly wealthy are on top of all new trends and developments today !

The Past Is History

Many ideas and good investments of the past may no longer be relevant today. The time for buying a good investment and holding it forever is slowly fading away. This is because the past is history and the pace of everyday life today is increasing at an alarming rate.

People are no longer satisfied with things the way they were, at least not in the developed countries of the world. If you don't believe me just look at the cell phone industry for example. It seems like almost weekly there are announcements of new hardware, software and most commonly new apps.

Would you invest in a typewriter company today if one even existed ? If you don't know what a typewriter is, then my point is proven. Look it up on Wikipedia. Even companies that used to own the personal computer market are struggling today. Wow, who would have known that a few years ago.

Unlock Yourself From The Past  

Yes, the past is gone forever never to return unless someone invents a time machine. If that happens who knows what will happen.

If you are sitting back gloating about your success stories of the past, you had better stand up and look around. You may be in for a huge surprise when you realize the world has changed and you find yourself with no direction for the future.

It is so easy to feel great about what you have done. I know, I feel that way a lot myself. The key is to keep looking forward and try to anticipate what the needs of the future world will be. Position yourself for taking action when a trend starts to develop.

Keep Yourself Moving

Just as the fitness industry tells you to keep your body moving to stay healthy, so too must your vision of the future keep moving. Do not get caught standing still or you may become left behind and your financial health will begin to suffer.

I enjoy keeping up with new trends and developments. It is what keeps life interesting for me. How boring life would be if nothing ever changed.

What To Do

Do not sit and gloat too long about your successes of the past. Instead, stand up and look around at the world around you. Learn all you can about what is being developed and try to make sure you are in a position to take action when the time is right.

Most people never become wealthy because they are comfortable with their past and present and do not care about what the future may bring. They wake up one day only to realize that life has passed them by and they now have much less time to make a difference. Don't let this happen to you !

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

Tuesday, October 8, 2013

Making Huge Returns on Real Estate

Would you like to make 1000% or more returns on your Real Estate ?

Do you think these types of returns are even possible ?

Truth is they are and it's not that hard !

Defining Returns

First let's determine what a return on investment (ROI) really is. This is a term that you hear all the time but many have no clue of it's real meaning.

Would you believe me if I told you I have made infinite returns on my Real Estate investments? Probably not, but I have. Let me explain.

ROI or Return on Investment is defined as the amount of profit divided by the amount of money invested expressed as a percentage. For example if you made $1,000.00 on a $10,000.00 investment, your ROI would be 10%.  Now let us suppose you made that same $1,000.00 without investing any money of your own. Any number divided by zero gives you infinity. In this case your ROI would be infinite.

How To Invest Zero

It is all in your perception, but Real Estate promoters advertise all the time about investing in Real Estate with zero dollars. Truth is, the invested capital is all borrowed money, therefore you are investing none of your own money.Whatever return you make on your so called investment is technically infinite.

My Real Estate investments have all been 100% borrowed money, therefore one could say my profits are infinite. It is generally easier to get financing for Real Estate than it is for any other investment. Mortgages for 80 to 90 percent of purchase price are common. The other 10 percent can be funded by a secured line of credit from another property holding. It's that simple once you have it set up properly.

 Beware the ROI

Always take the ROI numbers stated in an ad with a grain of salt. You must dig deeper into the details of any investment to get the true value as ROI numbers can be easily manipulated. Creative Accounting is a term that is used for making an average or below average investment look much better. Remember, there are many dishonest individuals out there, so beware.

What To Do

Be careful of how you perceive the returns on your investment holdings. Many will manipulate numbers to make their product look better than it really is.

Investing in Real Estate with 100 percent borrowed money can explode your wealth tremendously if done properly. On the other side of the coin, if not done properly you could get into serious trouble. Whenever leveraging (borrowing money) your risk becomes much higher.

Gain the knowledge first before leaping into any investment, especially Real Estate. Your time spent researching will be rewarded tremendously once you have the knowledge.

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

Tuesday, October 1, 2013

How To Get Rich - Invest Your Time

Do you waste a lot of your time doing non productive things ?

Do you get caught up in today's many distractions ?

Many do, but you must try to limit these distractions !

Time Distractions

Time is something that once it is gone you will never get back. We all have only so much time in a day and week to accomplish our goals and dreams. How you spend your time is vital to your future success.

I am sure you have all heard of the latest craze Candy Crush Saga, the mobile game app that is catching the world by storm. This is a great product for the developers and the mobile phone companies. It is estimated to rake in over $600,000.00 per day each and every day. I wish I had a piece of that income stream.

This is an example of the latest in the many of today's distractions. My prediction is, because there is so much money to be made, we will see many more of these types of distractions in the future.

Focus Your Time  

In order to limit the many distractions we much learn to plan and prioritize our daily activities. If you have no plan of how to spend your time, guess what happens ? You will most certainly waste a good portion of it on one or more of today's many distractions. Guaranteed, because they become addictive.

I am not saying that you should not have recreational time. Recreational time is vital to avoid burnout. However, it must be scheduled and prioritized just like any other task. A limit must be placed on this Rec Time or else it will eat into your Productive Time.

Invest Your Time  

It has always been said that you get out of something exactly what you put into it. What this means is that the more time you spend on a task, the more you should benefit in the end. I know personally that I spend a great deal of my time researching different investment markets. That is exactly why I have been so successful with most of my resulting investments.

Simply put, you must invest your time before you invest your money. Even by reading this blog you are investing your time in gaining the knowledge needed before you invest your money in something. You are heading in the right direction.

What To Do  

Schedule your time, both productive time and recreational time. Do not let today's many distraction eat into your productive time. Be careful not to become addicted to games, etc. They will consume you in many ways if you let them.

Invest time into your project before investing even a penny. It will be time very well spent and you should be rewarded many times over. Remember, your time is your time. Once it is gone it is gone forever.

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