Tuesday, November 18, 2014

How To Get Rich - Understand Networking

Have you ever heard of the term  "networking" ? Do you understand how networking can grow your wealth ? The wealthy know and so should you !

Networking Defined

Most of us have heard of the term network marketing when it applies to companies like Amway, Fuller Brush, etc. These are companies that have chosen to market their products through a network of individuals instead of the more traditional wholesale, retail methods.

Companies that sell through a network of individuals is much more efficient at distributing the wealth among many instead of a select few. The more people an individual can get into their network, the more income they can earn. This creates more individual opportunities.

But the word networking today can mean much more than the selling of products. Networking today can actually save you money on your everyday living expenses. It is actually an old term called "bartering" which was used extensively before money was widely used.

Networking today means building a group of individuals that can supply items and services used in everyday living. Examples are hair dressers, grocers, tax accountants, farmers, fishermen, etc. Basically anyone who provides a product or service used in everyday life.

How Networking Can Work

Anyone can start their own network. Do not confuse this with the companies as mentioned above. Money will have absolutely no place in your network. Money will not be needed.

Simply make a list of everyone you know and ask them what product or service they can provide you. Next, identify what product or service you can provide them. Now, ask these individuals if they would be willing to "exchange" their product or service for your product or service.

An example would be a hair dresser could cut a farmer's hair in exchange for a couple of chickens or whatever. Repeat this with many things and you now have a network. Simple.

How Networking Can Save You Money 

You may be wondering why anyone would bother going to all this trouble when you can simply buy what you need. A good point considering most people are too lazy to set up their own networks. One simple word answers the question. Tax. How do you tax something if there is no monetary value.

With a network of friends exchanging good deeds for each other, there is no motive for profit. Our income tax systems are based on profit. No profit, no tax. Many religious communities have been living this way for years. With global communication advancing as it is today, there is no reason why we all can't do the same thing.

Imagine how much better your life would be if you did not have to pay any tax. How much less time you would have to work. How much more time you would have to enjoy life.

What To Do

Get together with your friends and start your own network. Get friends of your friends involved. Get friends of friends of friends involved. The possibilities are endless. Pretty soon money could have a lot less meaning in your everyday life. Money is really a lot less important than the time we have left to spend on this planet.

Money can create greed and corruption. Greed and corruption creates inequality of life. Everyone deserves the right to be an equal.

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

Tuesday, November 11, 2014

3 Big Real Estate Mistakes To Avoid

Do you love the idea of making big money in Real Estate ? Do you think anyone can build their fortune with Real Estate ? If you answered yes, then you had better read on !

Mistake #1

I have been to many Real Estate presentations from various promoters who claim anyone can make a fortune with Real Estate. They play on your emotions and get you excited about entering the big leagues and making the big dollars. Is it realistic to expect everyone that attends one of these presentations will become a real estate tycoon ? Not likely !

When it comes to any type of investing, keep your emotions at home. Investing in anything based on emotion can be a disaster, especially when it comes to Real Estate. If you find yourself really excited about an investment opportunity, put it down and walk away. Distance yourself from the excitement and take as much time as you need to calm down and get your head together.

Investing is a business, not a marriage. Do not get excited, fall in love, or think that there will never be another opportunity. There will be many opportunities if you leave your emotions where they belong.

Mistake #2

You are investing your money and/or time for one reason and one reason only. To make money. Period !

It may sound boring and it probably will be, but you must run the numbers. Who ever said investing was exciting anyway. Many investments look promising on the surface but fail miserably once you run the numbers.

Revenue Real Estate investing is more complex than many other forms of investing and careful attention to detail must be taken. Know your costs and obligations before you ever make an offer.

You absolutely must have a positive cash flow to have any kind of chance of making money in Real Estate. Positive cash flow is after all expenses including mortgage payments. Don't be fooled into counting on Capital Appreciation to make your money. That may never happen and in many cases you may loose capital over time depending on market conditions.

Mistake #3

Would you ever think about flying a plane without first learning how ? I would hope you said no to that question. Then why would you buy any Revenue Real Estate without first learning how ? In both cases you would most likely crash and burn, one physically and one financially.

It amazes me at how many people get into the Revenue Real Estate market before taking the necessary steps to learn how. They get caught up in the excitement of other people they know or have heard of that have done well in Real Estate. They mistakenly start thinking that if so and so could do it, so could I. Bad assumption.

Before taking the huge plunge into Revenue Real Estate take a course from a reliable source. Be the one that initiates this action and look for ones with a good reputation. Do not get suckered into the travelling road shows selling get rich quick Real Estate schemes. All you have to do is ask why are they wasting their time travelling around when they could be making gobs of money for themselves buying Real Estate. The answer. They are making their money from you.

What To Do 

There you go. Three very common mistakes that you should now not make when it comes to investing in Revenue Real Estate. The successful Real Estate investors are the ones that are in the know. They do not buy on emotional impulses. They never buy anything that does not put positive cash flow into their pocket from day one. They never get into a deal where they do not know exactly what they are doing.

Do what the pros do. Keep your emotions out of your investment decisions. Run your numbers well before ever considering making an offer. If it doesn't give you a positive cash flow, continue your search. Know what you are getting into well before you ever consider taking the plunge.

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

Tuesday, November 4, 2014

How To Get Rich - Being Lazy Is Not Always Bad

Do you think lazy people deserve to become wealthy ? Do you think you must work hard all day every day to deserve wealth ? Truth is many of the wealthy make money by being lazy !

Pants On Fire Attitude

If you are like me, you were brought up with the attitude that you must work hard every day to get ahead in life. You must work hard at school, get good marks, get a good job, etc. etc.

This attitude persists today in what I call the Pants On Fire Attitude. You get a good paying job, or maybe two or three perhaps. You make lots of money, but you spend a lot of your time doing it. In fact many spend so much time making money, they leave little or no time for the important things in life. They leave no time for living.

Why Lazy Is Considered Bad

Our society has developed an attitude that being lazy is very bad for your health and your wealth. They mistakenly associate being lazy with having no ambition. Lazy people are always depressed or lack the drive to make something of themselves. They end up on welfare and suck money from society. Sound familiar ?

Yes, society has conditioned us to believe that we must be busy, busy to get ahead in life. Anyone who is considered lazy must be a deadbeat and will go nowhere in life. In reality, this is far from the real truth.

How Being Lazy Can Be Good 

There is a good lazy and a bad lazy. Bad lazy, as described above, is when you expect others to pull you through life without trying to help yourself. Many on welfare fit this description.

Good lazy is when you develop a way to provide your everyday needs without spending much of your time doing it. Most importantly though, you do not rely on others to do this for you.

You may ask, how is this possible ? Well, simply put, find ways to create passive income. Passive income is basically income you make without spending much of your time developing it.

There are many examples of passive income including investing in companies that pay you a dividend simply for owning the shares. Purchasing revenue properties is another, as long as you have them managed by someone else. A vending business is another where very little time is needed for collecting this income.

What To Do

First of all, get over the stigma that being lazy is always bad. Next, get out there and look for ways to make money without trading your valuable time for it.

I have been considered by many as being semi retired since somewhere in my thirties. I chose to work less, pay less tax and look for ways to develop income without always being there. I am sure there are many that thought I was lazy with no ambition. Lazy yes, but not without ambition. That is the huge difference between the wealthy and the poor.

True wealth is defined as spending your time doing what you want to do, not spending your time doing what others want you to do.

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