WEALTH BUILDING TIPS AND TRENDS

Are you happy with where you are today ? Are you satisfied that you have done all that you can do to better yourself ? Chances are you have not consciously thought too much of the above ! Take a Pause  During the seasonal holidays is a good time to take stock so to speak. This is a time that there is a natural pause in your everyday busy life. This makes for an excellent time to take a pause and have a good hard look at where you stand today. Take a look backwards in time and write down everything that you have accomplished in your life. Hopefully there are a few things on your list that make you proud and give you a good feeling inside. It is very important to stop and give yourself a good pat on the back so to speak. There is nothing wrong with taking pride in your past achievements as long as you don't go overboard with the celebration. In other words it is better to keep your celebration more inwards than outwards if you want to keep your friends. Modesty is the bes...

Do you know the most important Real Estate rule ? Do you think the rich neglect to use this rule ? Chances are you probably don't and no they never neglect this rule ! Number One Rule  The number one rule for buying real estate is not how much you pay or how much you can charge for rent, although these are very important too. The number one factor to consider when buying any Real Estate is location. Whether you are buying your personal residence or an income property, location should always be the number one factor to consider. The reason is actually quite simple. Location is pretty much the only thing that you cannot change. You can renovate this or renovate that in order to increase your rent or the value of the asset. But if you buy a property in a bad area, there will be nothing you can do to increase your value. You will be stuck with it and chances are you will lose money. How to Avoid the Mistake Many newcomers to Real Estate investing do make the mistake of b...

Have you ever heard of the Korean rapper PSY ? Do you know of his big Youtube hit "Gangnam Style" ? Unless you live on another planet you probably answered YES ! World Sensationalism Several months ago hardly anyone had ever heard of this group. However, thanks to the extreme power of Youtube, they are now a household word.  Even more, you see their dance moves everywhere. This kind of worldwide stardom can now happen to anyone at anytime. I have seen the strangest things on Youtube with millions of views. It demonstrates what a great world of opportunity we live in today. How Does it Make You Rich Directly, it doesn't obviously. However, you can use this example of extreme success as a beacon for your future efforts. You can look at this real life example and know that absolutely anything is possible in the world we live in today. Whenever you get discouraged or frustrated with what you are trying to achieve, think of this example. I personally have watch...

Do you enjoy the sense of giving during the holidays ? Do you enjoy going into huge debt over the holidays ? If you are like most your answers would be yes and then no ! Marketing Mania The holiday shopping season is the time of year that will either make or break many retail organizations. It is no wonder then that there is an absolute media blitz at this time of year. All of these retailers are fighting to grab your holiday shopping cash before their competition does. Between Black Friday and now Cyber Monday, it's doubtful whether anyone will possibly be able to stay out of debt this holiday season. I realize this post may be a little late for some this year, but hey there's always next year right ?  Sorry, but I wasn't thinking because I leave my shopping until the very last moment. What the ?!@% is a Santa Grinch ?  Basically what I call a Santa Grinch is a shopper that gives like Santa but spends like the Grinch. In other words give reasonable gifts that...

Do you feel comfortable in a crowd ? Do you feel safe from danger if you stay with the masses ? When it comes to investing, you must learn to stand out ! The Herd Effect The herd effect is basically what happens when most investors go with the flow so to speak. They pattern their buy and sell decisions based on what is popular with all of the analysts and financial planners. The problem with following this advise blindly is that the average investor has absolutely no idea why they are buying or selling at any particular time. Even scarier, some don't even have a clue what they are investing in. They are following the crowd because it seems like a safe way to go. But is it really as safe as they think ? My answer is no, it is not as safe as they think. How can it possibly be safe if you don't understand what you are investing in and why ? Learn Before you Leap Would it not make sense for you to learn as much about an investment before you invest your hard earned...

Have you ever wondered when was the right time to buy an investment ? Do you think you can just buy an investment and hold it forever ? Truth is there are good times and not so good times to buy most investments ! Life is All About Cycles Yes, life is all about cycles ! In your own life, you have many cycles. From your natural internal bio cycles such as mood and normal bodily functions to external cycles such as reaction to weather conditions and other influences in your life. Cycles are everywhere ! Have you ever thought about how many times you breath in a minute or hour ? Probably not. Just as our own lives have cycles, so too does the average investment. Investment cycles are normally much longer than our body cycles, but they do absolutely exist. Nothing in the investment world goes up forever. Also, most things in the investment world don't go down forever. ( they can only go down to zero when the company goes bankrupt ) In most cases investments go up for a per...

If you have been a regular reader of this blog, you will already know what the very first step to building wealth is. For those of you who are new, I suggest reading my previous posting entitled " How to Get Rich - The Very First Step" before you continue reading here. No sense repeating what I have already written. Make the First Step a Habit Once you make the first step a habit, you will see a growing amount of money accumulating in your savings account. It is always nice to see this amount continually growing and adding to your overall wealth. The fact is, if you were to just do this one step you will probably be better off than the average person that has trouble with this discipline.  However, I think you owe it to yourself to do even better. You owe it to yourself to reward yourself by making your money work for you. Chances are you are already used to working hard for your money. Would it not make sense then to make the money you save work just as hard for yo...

Do you know how to use other peoples' money to grow your wealth ? Do you think all types of loans are created equal ? This post is a continuation of my first post on this topic ( "How To Get Rich - Use Other Peoples Money" ) review first post before proceeding (check the side bar for link under most viewed posts) All loans are not created equal.  Read on to find out what investment loan, if any,  may best be suited for you in your current position. Line of Credit  A Line of Credit is an open ended load that can be paid off at any time and quite often you can make interest only payments which keeps your investment working longer for you. This type of loan is recommended for most liquid investments such as stocks and bonds, REITs, Royalty Trusts, etc. Basically for anything that can be cashed in quickly if necessary. If you have equity built up in your home, you should also be able to secure your line of credit with this equity in order to ensure a much lower in...

Have you ever listened to a negative person complain about everything ? Do you enjoy the atmosphere created by a negative person ? A negative person can be a real downer to your life ! Don't be one of them ! Negative is Everywhere We are all exposed to so much negativity in everyday life it can be downright depressing. Just listening to the news everyday can depress anyone. Negative sensationalism sells and the media knows this. It's not very often you see a positive enlightening news article. It's no wonder there are so many negative people around. They listen to the news, they listen to other negative people, etc. etc. Many are defeated before they even start out in life. What a shame it is that we live in a society where it is deemed normal to be negative. Can You Change On the other side of the coin there are positive people that refuse to let anything get them down. They seem to attract good fortune and everything just seems to go their way. I think we a...

Do you like to get a good deal on a product or service that you buy ? Do you feel good when you pay less for something than someone else you know ? If you are like most people, you would say Yes to both of the above! Human Nature Yes, it is human nature to get a feeling of satisfaction when you know that either someone else paid more or that you were successful in negotiating a price down from the sticker price. Most people, however, only experience this feeling occasionally when something goes their way. Most of the time they pay the full price on everyday items without even questioning the price. This is the way that our modern retail system is designed. Make It a Habit There is another way! Why not try to get the very best price on everything you buy ? If you do, you can put your savings towards building your financial future ! An old saying once said that a penny saved is a penny earned. Although this saying is very outdated, you could say that a dollar saved is a d...

Have you ever wondered how big corporations ever got started ? What do you think led to their success ? Well, all businesses started with an idea and the desire to turn that idea into profits ! Your Life as a Business  You too can become a big successful business. Think of your business idea as investing in other businesses in order to give you an income. You can even imagine this flow of income as tiny employees that you hire in order to make you more money. The best thing about these tiny employees is you don't have to pay them or give them any benefits. Also, they will never call in sick or require a vacation. They will be working for you 24 hours a day, seven days a week without the need to take a break. Basically, the more employees you can hire (the more money you can save !) the faster your growth of new employees will be. These employees will be put to work for you (money invested in other businesses) in order for you to make more employees, and so on and so on....

Do you know the difference between good debt and bad debt ? Do you know how to make debt work for you ? The wealthy know the answers to these important debt issues, you should too ! Bad Debt  Bad debt is defined as any debt that you incur to purchase something that you do not receive an income from. Most consumer debt falls into this category. Credit cards, car loans, lines of credit, even most mortgages fall into the bad debt category. Good Debt  Good debt, yes you probably guessed, is any debt that you incur to purchase an income producing asset. Investment loans, brokerage loans, mortgages for investment properties, etc. fall into this category. Kill Your Bad Debt When it comes to building wealth, the key is to eliminate  (or kill) all of your bad debt. You cannot possibly get rich if you have to continually carry around the ball and chain of bad debt. Your income will continue to make someone else rich, namely your bank or other financial institutio...

Are you worried about losing your job ? Are you worried about what will happen if you are unable to pay your bills ? If you are, you are not alone ! This is one of the top financial concerns of individuals today ! Your Main Income Stream Chances are if you are like most people, your job is your main source of income that you rely on to pay your bills and have a little fun. The reality is, even if you take the necessary steps to become wealth, you are going to need a job for quite some time yet. This means that you had better enjoy what you are doing and take the necessary steps to protect your income. Enjoy Your Work Many people I have talked to hate their jobs. My advise for them is to find a job or career that they can actually enjoy or at least not absolutely hate. This will not only make their life much more tolerable, but they could actually be seen by others to actually like what they are doing. This could create interest by their current boss and actually lead to adv...

Have you ever driven anywhere without knowing where you planned to go ? Have you ever set out to do a job without knowing the desired outcome ? Chances are you answered NO to both the above !  At least I hope so ! Plan Your Work Before starting on a project you should always make a plan of the steps you need to take to accomplish your desired task. You also need to have a method for measuring your results versus what you planned. Designing a financial improvement project is no different. In fact it should be easier than most other projects because everything can be measured in numbers. Let me use an example to explain this point.  Let's say your project is to get out of debt by a certain length of time. You already know the amount of your debt and the length of time to accomplish your project. You simply divide the debt by the time to know how much you must save out of each paycheck etc. More complicated projects will require steps. These steps should be planned ou...

Do you think you can get rich by paying too much for your home ? Do you think the wealthy ever get caught on the wrong side of a real estate deal ? The answer to the above is a resounding NO ! Your Home as an Investment A common phrase often heard is that your home is the biggest investment you will ever make. I am not sure how this old saying ever got started, but my money is on the banking or mortgage industry. They are generally the ones with the most to gain from you having too big a housing debt. First of all, the real estate that you live in is not really an investment. If you can't draw an income from it, then it is really just a place to live. I find it amazing how most individuals have been convinced to think otherwise. Why is it that everyone seems to be obsessed with buying a home well beyond what they can afford or even need? The answer is marketing ! From the banks, the home improvement companies, and yes the numerous reality tv shows. What a scam ! A Place...

Do you think the wealthy go through life without ever facing challenges ? Do you think they never have to solve problems to get what they want ? Of course not, everyone has challenges ! It's what we do or don't do to overcome those challenges that make the difference ! Your Biggest Challenge The first step to overcoming your challenges is to identify your biggest challenge. What is the one big monster in your life or the biggest elephant on your back so to speak ? For some it may be digging themselves out of debt. For others it may be earning more income to meet current expenses. Whatever it is, you must learn what you need to do and then just find a way to do it. Remember, if you do nothing to overcome your challenges, you will go nowhere financially. Determination The one big thing that separates successful individuals from the average individual is determination. You will notice that a successful person has lots of energy and will not let anything stand in th...

Do you know what is significant about the number 72 ? Do you know why it is so important to building wealth ? If you read my last posting you do ! 72 is a Magic Number Further to my last posting, I would like to explain further why the number 72 is such an important tool for you to use in building your wealth. As previously explained, the rule of 72 states that if you divide the number 72 by your investment's current rate of return and assuming you reinvest all of your compounding  income once a year at the same rate of return, the resulting answer will be the number of years it takes to double your money. Ok, pretty straight forward. But why is it so important to building your future wealth ? Let me explain by example. Suppose you invest $10,000.00 at a  yield of 10% rate of return paid annually. If you reinvest your annual income every year your investment would be worth $20,000.00 in 7.2 years. Now suppose your investment only yields a 5% rate of return...

Do you ever wonder why getting rich seems easy for others ? Do you wonder what secrets they must possess ? Truth is, they understand the Magic of Money and how to make it work for them ! Work for Your Money Most people understand that you must get a job and trade your time for money. This is how you pay your bills and maybe someday save for your future. However, most people do not understand how to turn the tables and get money to work for them. The rich understand this principle very well. They have mastered the art of the Magic of Money ! Turn the Tables  In order to turn the tables as the wealthy do, there is one simple lesson to learn. You must have some money in order to have your money work for you. Pretty simple. However, most of us start out with no money. Then how do you get money ? Some inherit money, some win money and some even steal money. But those cases are rare and are not the ways you should be concentrating on to get your money. For most, you must...

Have you ever wondered why some people are just so successful ? Do you really think that they are so much better than you ? You have the ability to join them, read on and find out how ! Blinders When it comes to the path of life, most people have blinders on. The older they become the more set in their ways they become. Unwilling to look at new ideas or ways to improve on what they have already done. I find this aspect of individuals the most frustrating. For whatever reason, most people just don't want to change even though the change would do them good. There is absolutely nothing you or I can do to help these people. Change must start from within ! Internalize To have a chance at someday becoming successful you must internalize your desires and dreams and learn to embrace new ideas. If you are not already filthy rich then obviously what you have done in the past is simply not working. Does it not make sense then to change your course and direction ? Are you scar...

Have you ever wondered how much you have to have to be considered rich ? Do you know how much you need to have to enjoy a comfortable life ? Truth is, it isn't really about the asset numbers at all ! Number Obsession If you ask any Financial Adviser or Financial Planner you will get a different number on how much you have to have saved to live the rich life. They all use formulas and future projections to show what they feel you will need to be comfortable.But really how accurate are these numbers they give you ? The truth is, they are all making educated guesses as to what they feel the future will be like. No one really knows what the future will be like. If they did, I suspect they would already be on a beach somewhere enjoying all their own wealth. Therefore, the numbers they give you should only be used as a guideline. Many times their number is higher than what you actually need. Remember, for the planners who sell investments, the more you invest with them, the m...

Are you afraid to take a chance on something new ? Are you afraid of losing money on an investment ? If you answered YES, then you are part of the majority of investors today ! FEAR is a four letter word that prevents most people from becoming truly wealthy ! To excel at anything you do, you must first conquer your fear ! Fear is generated in the mind and is most commonly associated with doing something new for the very first time. Fear of the unknown so to speak is what stops many people dead in their tracks. Don't let FEAR stop you from achieving your dreams. Let me try to spell out a process for conquering your fears. F is for FAITH Before attempting to do anything, you must first believe that you will be successful. You must visualize in your mind that you have already achieved your goal. You must focus on the outcome and not the obstacles. It feels good when you are able to do this on a constant basis. Having FAITH before even starting on your adventure is ...

Would you like to fire your boss ? Would you like to have the freedom to tell your boss to take a hike ? I think we have all felt this way at some point in out careers ! Reality of  Work Let's face it, most people don't go to work because they love what they are doing. They go to work in order to pay their bills and provide for some fun in their lives. Period ! Oh yes, there are a few who really love their jobs to the point where it has become a part of their personal identity. I think that is great for them but personally I don't think they will ever become truly rich ! That is simply because they don't have control over their own time. Time is Most Valuable Yes, time is our most valuable commodity. None of us know how much we have left. Our life as we know it could be over at any time. I think we can all relate to that ! It is therefore very important that we spend what ever time we have left doing something that we enjoy. It is a shame...

Have you ever wondered why some buildings crumble during an earthquake while others remain standing ? Do you think some buildings are built better than others ? The answer yes, it's all in the construction ! The Financial Earthquake We all know what devastation an earthquake can cause because it is reported all over the news. Sensationalism sells, the more widespread the better. The financial earthquake happens more in the shadows and will rarely ever be reported on. This is simply because there is nothing to show, nothing to cause a sensation. Merely dwindling savings accounts and a few bankruptcies, hardly anything to report on. However, if not properly prepared, a financial earthquake can happen to anyone. The sad part is no one else really cares. How to be Prepared Just as the astute contractor builds a solid foundation upon which to build their building, so too should the average individual. Without a strong foundation, the financial earthquake can happen at an...

Have you ever wondered how the turtle has managed to survive throughout history ? How could such a slow moving creature not have become extinct long ago ? I believe that it's all in the shell ! Build Your Shell We could all take a lesson from the slow moving, well protected, cautious turtle. The first part is to protect yourself from all potential financial disasters. Example. loss of a job, loss of health, loss of life for your loved ones future. Get adequate insurance for everything you value. Your income, your health, your belongings and  even your very life itself. Build your shell of protection to ward off all financial disasters that could destroy your future financial wealth building plans. A must for anyone who wants to obtain true wealth. Step Slowly Step very slowly and cautiously with every step you take towards achieving your wealth. Do not step into something before understanding it totally. A missed step along the way could actually cause you to lose man...

What do you think the very first step is to creating a wealthy future ? Do you think it's landing a good job or winning the lottery ? Do you think it is marrying someone rich ? Answer = none of the above The Starting Point The very first thing you must do is create in your mind a "burning desire" for whatever it is you want to achieve in your lifetime (financially, that is) You must make this burning desire so intense that you will be able to sacrifice other things in order to achieve it. Chances are if you are reading this, you already have a strong desire to become wealthy. But what is the very first active step you can take to turn this desire into reality ? It is something extremely simple yet unobtainable for many. Step Number One Realize in your mind that you are entitled to keep for yourself at least ten percent of all income that you bring home. This amount that you are entitled to keep for yourself must be stashed somewhere safe before paying any ...

Have you ever wanted to know everything about everything ? How about to know everything about something ? Well, for most it is best to know something about a lot of things ! Why Be a Generalist The reason that it is best to be a Generalist is that it gives you a wide base of knowledge upon which to build for the future. To know something about a lot of things will make it much easier for you to spot deceptions and to avoid the many questionable opportunities that you will face in everyday life. To know something about a lot of things will allow you to protect yourself and your financial future from whatever the future may bring. It will also allow you to hire an expert in an area and still know enough to challenge or question any advise given. It will make it easier to maintain control over your future financial decision making, which is a must for building wealth. Don't Be A Know it All Never be afraid to admit that you don't know something. Nobody really likes s...

Do you think getting rich takes a complicated formula ? Do you think that getting rich is just too complicated to bother ? If you answered YES to the above, you may be quite surprised ! Complex Schemes Just Don't Work  You have probably noticed many investment schemes being advertised throughout most media sources. There have even been some that have created computer software to help simplify the process. These schemes and programs have two things in common. First, they all try to make you believe that investing and getting rich is very complicated. They try to convince you that you cannot possibly be successful without buying their product. This is totally not true. Second, they are all designing these schemes and programs to make money for themselves. I really have to question why these schemes and programs even exist. Let me explain. Let's say someone developed a complex formula for getting rich that was fool proof and never failed. If this did exist, do you th...

Have you ever looked at someone and instantly known that they were wealthy ? Did this person ooze wealth or was it something else you noticed ? Chances are, you could be dead wrong on your observation ! Appearance of Wealth I have seen and known many individuals whom I had thought on first sight were extremely wealthy. Much to my surprise, once I got to know them better, I realized they were far from the wealthy person I had envisioned. What many individuals try to do is make themselves appear wealthy even if they can't really afford the image.This type of behavior is what I call the "keeping up with the Jones' syndrome". This type of lifestyle can be very dangerous for those who truly want to be wealthy some day. Generally, these individuals must live beyond their means simply to maintain their image of prosperity. This means there will be no room in their lives to set aside savings and to invest those savings. Eventually they will have to borrow money ju...

Have you ever wondered how wealthy families have managed to keep their wealth throughout history ? Have you ever wondered why some family member didn't go crazy and spend it all ? The simple answer is education ! Learn to Teach It's great to have the goal of getting rich and making lots of money. But have you ever thought of how much good it is going to do if you lose it as fast as you get it? In order to have the most benefit for yourself and your loved ones, you must learn how to retain your new found wealth and preserve it for future generations. In order to do this, you must learn how to teach your next generation to make the right financial decisions. Unfortunately, our school systems never teach courses on wealth creation and preservation. These lessons are generally learned the hard way by trial and error, or if you are fortunate, through a mentor who can guide you through the many obstacles. How Wealthy Families Survive Wealthy families have the advantag...

At this point you should be well on your way to building your income producing portfolio. Hopefully, you have been able to find a few good quality investments that you can be comfortable with. If not, don't worry. It may be that the time is just not right to take action. Don't be afraid to keep building your cash (in your money market fund ) until the time is right or you become more comfortable with the process. Don't Feel Rushed You should never put yourself in a position where you feel rushed to make an investment decision. Take the time you need to learn about a particular investment and/or about the whole investment process. Once you become more comfortable and with a little experience, you will find that your decisions can be made much faster. Remember, your investment time horizon is the rest of your life. There is no rush to do anything until you fully understand. Review, Review, Review  Once you make investment purchases it does not mean you just forg...

Have you ever invested in an IPO only to see it falter ? Do you even understand what an IPO really is ? Be careful when looking at any IPO for your future ! What is an IPO Let's start by defining what an IPO (short for Initial Public Offering) really is. An IPO is created when a privately held company wishes to go public and start selling shares of it's organization in the public market place such as a stock exchange. In order to do this, the organization creates the IPO and establishes a reasonable value for it's shares based on it's economic fundamentals. It will determine how many shares will be issued and at what price. This is the general definition of the IPO. Why the IPO is Created   There are many reasons why a company may wish to go public. However, one of the most common is that the founder of the organization feels that he/she for whatever reason can no longer develop the organization to it's full potential. Another reason could be that the ...

Have you ever heard of the 50 - 12 Rule for Income Investing ? Chances are, if you haven't been a frequent reader of this blog, you never have !  Read on and discover it's magic ! Income Investing Basics Investing for income means quite simply investing in securities that will provide your portfolio with a regular and increasing flow of income. Less emphasis will generally be placed on the ups and downs of the markets. The main focus is on the amount of income you will receive each month or quarter. This form of investing is designed particularly for the individual investor who wants to retire from the workforce at an early age. It will not be as advantageous for the high income individual where taxation becomes a major drawback. However, even the high income individual can see benefits if they wish to consider early retirement. The 50 Part The 50 part of The 50 - 12 Rule is basically investing in a particular security in a way to generate $50.00 per payment frequ...

Have you ever heard someone say that their friend is giving them good investment advice ? Or how about "my financial adviser is a good friend of mine" ! I have heard this term so many times I can't remember ! What is a Friend A lot of people you meet use the term "friend" very loosely. Some seem to think that everyone they meet is somehow a friend. This is just not so, especially in business. A recent story in my local media illustrates this point. An elderly lady who had a substantial sum of cash to invest ( over 3 million to be exact) became "friends" with a financial adviser whom she trusted to invest it for her future. To her horror, she soon  realized that he had stolen her cash. He had never invested it as promised and the cash had just disappeared. This adviser will be spending the next ten years behind bars, but this poor woman will be ruined for life. All of her life savings are gone for good. Meanwhile in ten years, this adviser w...

Have you ever wondered what would happen to your home if you just stopped paying your property taxes ? How about if you never again paid a mortgage payment ? I think you know the answers ! Ownership of Real Estate People often say "if only I owned my home" or "if only I owned several rental properties" , then I would be rich. Well, let me tell you one thing straight up. No individual can ever truly own real estate. Well, at least not in my previous experiences. Let me explain this before you go clicking somewhere else. When you purchase real estate, you purchase the obligations that go with it as well. Every piece of property that I know of has a realty tax obligation attached. If you don't meet this obligation, the government could sell your property to someone else to reclaim this unpaid tax.  Therefore, you don't truly own the real estate. Control the Key A better way to look at purchasing real estate is that you are actually purchasing co...