Before we address the issue at hand, let
Archive for June, 2009
The Art Of Becoming Wealthy
Jun 30
The concept behind any form of wealth is creating income.
Are you satisfied with your current income? Probably not.
Have you ever wondered why this is so? A typical case,
shared often at seminars, is that of a person who has
constant challenges with money but disapproves of
accumulating wealth, implying that it is dirty and that it
spoils and changes people.
Further, this person is uncomfortable with people in
business who have more money and yet he or she can\’t
succeed. What should such a person do? Clearly this person
is carrying around a mental image that says: \”If you have
much money, you\’ll be ruined by it and you don\’t want that.
So, it is better to remain poor than seek wealth.\” The
consequence of such thinking is, not surprisingly, a lack
of money.
Get rid of these thoughts if you want to be wealthy
someday. The Law of Income says that wealth is first
created in the mind. A Wealthy Self-Image People who can\’t
imagine themselves wealthy are not yet mature enough to
become wealthy.
Everything begins in the mind as a thought – life is a game
that is directed from between your ears. If you can\’t \”see\”
yourself with money, then your subconscious still doesn\’t
have a clear picture of how to act and therefore cannot
help you get there.
In fact, whatever picture you hold of yourself in your
subconscious mind is the person your mind is busy ensuring
you are. If your self-image is one of a poor person or
someone \”struggling to get ahead,\” then that is who you
will be. Make sure you create and nurse positive pictures
of yourself.
Why You Are Not Wealthy Today? There are two reasons that
you don\’t have as much money today as you desire:
1. You didn\’t think about or plan for today before it
arrived. Had you been more aware, then, that you would
always need money and acted on that awareness in the past,
you would be wealthier today than you are right now. Why?
Because, you would have intentionally saved money, perhaps
even by making small sacrifices over the years or invested
money. Even small amounts, and would therefore have more
money today than you currently have.
Make a list of your expenses for one month; you\’ll quickly
discover how many unnecessary things you buy and how much
you could therefore set-aside for tomorrow. If you want to
free yourself from financial troubles, then start putting a
portion of your money into a special account.
2. The work you have now isn\’t bringing in enough money.
There are many ways to increase, even maximize, the
financial and non-monetary rewards you earn from your job.
Ridding Your Path of Obstacles The unfavorable financial
situation you are in usually comes from a very specific
challenge.
Those who do not have money have usually been taught to
believe that money is dirty or that it can\’t be earned in
an honest way. So how will you find your fortune, if your
subconscious is being fed with things like, \”All rich
people are dishonest and I don\’t want to be like that.\”?
What follows is clear, perhaps you believe that money
changes, even spoils people.
If you hold this to be true, wealth will elude you. You
have to be clear about the following fact: \”Money itself
doesn\’t mean anything – it\’s just a piece of paper, a tool
that can be used to trade for material goods.\” Money is a
\”stand-in\” for the things you want to buy. Does this mean
that all the things you buy are bad and rotten? If that\’s
true, why do people desire new cars? Imagine your job pays
you \”in cars\” instead of money – would you say now that
cars are bad and rotten?
Copyright ? 2006
Abe Cherian is the founder of Multiple Stream Media, a company that helps online businesses find new
prospects and clients, who are anxious to grow their business fast, and without spending a fortune in marketing and automation. Free Home Business Tips.
Writen By : Abe Cherian
We?ve been talking about some guiding principles that will make you rich. Of course, we?re covering them quickly, but I?m trying to open your mind to a different way of thinking. As you read this, bear in mind that we live in a world where 95% of the people out there don?t do what I?ve told you. They end up working hard with nothing to show for it at the end of their lives. You don?t want that do you? You want to end up rich right?
Now, there is one more principle that I want to cover in this series. Without following this you simply won?t ever get rich. As I said before, you might make a lot of money, but you won?t get rich.
Let me ask you, why do you want to get rich? Really think about it. Could it be to get some financial pressure off your back? Would you just like an extra $100,000 in a bank account? I?ll bet you would.
You see most people spend everything they make. No matter how much money they make, they spend it. That?s why they want to make more money. They think it will solve their problem. It won?t. I know, you?re thinking, ?Come on Bryan, If I?m making an extra $5,000 a month I won?t have any money problems?. This will be true for a little while. But, your spending habits will catch with you. A downturn in your business or job and all the sudden you have money problems again.
The good news is, by using this one principle you?ll certainly be rich. Here it is:
?Save 10 percent of what you earn?
Engrain this into your thinking. Above all else do this. Start today. Open a free account with http://www.ingdirect.com. It?s easy to do and they offer the best savings rates of any bank I?ve seen. Set it up to take 10% out of your pay automatically every week. Here?s why:
Why do you think the government takes taxes out of your paycheck? Why don?t they trust you to just pay them at the end of the year? What do they know that you don?t know?
I?ll tell you what they know: They know you?ll spend the money! They want to get paid before you spend it on a new big-screen TV.
Do yourself a favor. Pay yourself first. You?re more important than anyone else. You?re more important than Visa, Master Card, or a new computer. These things will take care of themselves. You?ll always find a way to pay them.
I can hear you now, ?But Bryan I can?t save 10% I don?t even have enough money now?. You know something, everyone feels that way. But, I?ll give you a tip: You only have to get by for 4 weeks. After that you?ll never miss the money. I know you can?t believe this, but it?s true. That?s the magic of saving and paying yourself first.
Here?s another Tip: If you don?t build the habit now, it will be harder to build when you do start making more money. Do you really think it?s easier to save $1,000 a month out of $10,000? It?s not. It?s much easier to save $50 out of $500.
When you do this, the money will build up. Even just by working a regular job you?ll end up richer and richer as time passes. In fact anyone who simply did this, at any income level, would amass a fortune. If you think about it, it really seems silly that something so simple; something that takes 5 minutes to set up will make you rich. Nobody does it because they can let go of that 10%.
Start saving 10% of what you earn today. If you don?t do this, you?ll never get rich! When you do it, you?ll wonder how you lived your life any other way.
Bryan C. Fleming is the author of his blog http://www.BryanCFleming.com or http://bryancfleming.blogspot.com. Stop on by to check out more articles like this one.
Writen By : Bryan Fleming
Why Should You Save Money?
Jun 30
We are always hearing save, save, save. But if you don\’t have a reason to save, it isn\’t likely you will.
Most people live paycheck to paycheck. Many people simply do not have the money to save. There just doesn\’t seem to be enough money left over after paying the necessities.
And I\’m not just talking about the lower-income groups. Often, those driving new cars, living in nice homes and wearing name brand clothes are barely making it by financially. They often have a harder time finding extra money than do those who make incomes below poverty level.
There are a lot of people that wear money well, yet they don\’t really have any. Is that you? Are you caught in an endless cycle of wanting more and wanting better? Do you see that it just isn\’t working for you?
Sit down and examine what your main goals are in life. I mean the really important financial ones. You may want to retire someday. Have you started saving? Do you want your children to go to college? Have you started saving? You might just want to be able to pay all of your bills? Have you started saving?
You get the hint — it\’s all about the saving. I\’m not going to go into how to save, you can research that later. Let\’s talk about why you should save.
The number one reason to start saving right now is for emergencies. Things happen. People pass away. People get hurt at work. People get laid off. We have accidents. We have cars break down, washing machines stop working and sometimes even disasters hit our homes.
With an emergency savings, you are cushioned from the financially ruin. You can make ends meet until you are able to figure something out. You are able to buy that new washer without hurting your monthly budget. You are able to sleep without worrying where you will find the money. It\’s in your savings.
I suggest starting with three to six months worth of monthly expenses. This gives you a pretty good cushion. Put as much in as you can. My husband recently lost his job, and we found that three months fly by fast. Before we knew it, the fund was gone. But it gave him valuable time to find a good job — he didn\’t have to take one just to make ends meet.
Once you have this savings built up, you should start working on your goals. You can work on several at a time. For example, if you are able to put $100 from each paycheck into savings, yet have three goals you are saving for, do a portion to each.
For example, your goals are for retirement, college for your child and buy a home. Decide which is most important to you and what you need to dedicate of that $100 to each goal. You might put the largest amount to your retirement, the second largest to your home and the third to the college education.
You should save money. I can\’t tell you why. That is your decision. There are goals that can only be fulfilled from savings. Think about what you want in life. If you want out of debt, to own your own home or to retire comfortably, you have to start saving now.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
Writen By : Martin Lukac
If you are a frequent visitor of webmaster and business forums you will often see posts accusing someone of being lazy or looking to get rich quick. Someone may come in and make a post that says I want to make $1000 this week what should I do? Those that get mad at these types of questions do not seem to take into consideration that a lot of people are poor. That person that says that may have a legitimate reason to want to get rich quick. They most likely need the money to make a difference in their life. Also just because someone wants to make money in a short period of time does not mean they are lazy or that they do not work hard. People always associate money and success with hard work when they should not. Someone could work really hard to make money and still not make any.
It is very easy for that person to then change their approach out of desperation and try to make money in a faster way because they need it no because they are greedy. Also because they have worked hard and not benefited so they change their approach. Do not assume that everyone is in the same situation to be patient. Do not assume that someone has not worked hard or is lazy just because they are in a different financial situation then you are.
Andre Bias is the owner of the websites http://www.enlargementdeals.com, http://www.goodbyeacne.net, and http://www.inkjetdealz.com.
Writen By : Andre Bias
In my experience, people become entrepreneurs for several reasons, including:
? To achieve financial freedom
? Build a business to leave to family
? The ego satisfaction of building a successful business
Yet, most overlook what is arguably one of the fastest, most proven, most profitable businesses there are, real estate investing.
Over the years, more people became millionaires by investing in real estate than any other business.
Guess it is too close to home for many, like the ?Acres of Diamonds? story.
One of the big reasons real estate investing doesn?t get considered, is that many people believe it takes a lot of money to get started.
Another group of people have heard of the difficulties in managing rental properties and don?t want any part of them.
Yet another group disdains real estate investments because they are supposed to be illiquid.
These issues, though real, are not insurmountable, but are not the subject of this article.
Here, we are here examining the tremendous wealth building capacity of real estate investing for the budding entrepreneur.
First, let?s make sure we are talking about the same thing. There are many ways of making money in real estate, but not all of them are classified as real estate investment.
If you buy undervalued properties and sell them for more; or buy properties, fix them up and resell them, these are active businesses and not investments.
A real estate investor acquires properties as is or fixes them up and holds them for income for the long term.
Let see what makes this such a great way to achieve financial independence.
Leverage
Whatever amount of money you are starting with can be magnified, or leveraged with bank financing by a factor of ten to one, or even infinitely!
Your $25, 000 cash investment can purchase a quarter of a million dollar asset.
Your $100,000 investment will give you ownership of a $1 Million dollar asset, right out of the box!
Few industries enjoy such trust from the banking establishment. Ever try to get a loan from a bank to start a restaurant?
These days, if you have good credit, you can get started with Zero Down, just as they say on late night TV.
As a matter of fact, I am currently in the process of buying a $260,000 3 family investment property in Philadelphia with 103% financing!
High returns
Real estate builds wealth in many ways.
? Positive cash flow, monthly passive income exceeding expenses
? Your tenants pay off your mortgage, thereby increasing your equity in the property every month!
? Appreciation, or increase in value of the property over time
? Tax shelter-the depreciation deduction can cut your tax bill, increasing your net income
Let?s look at appreciation a little closer. If the property you bought for $100,000 with 10% down appreciates 5% to $105,000 in the next year, (the historical appreciation rate in the US), this represents a 50% return on your $10,000 down payment! Not your average stock market return. But wait, there is more!
Say you collected $300 per month positive cash flow during the year, or $3,600 and paid off $800 of your mortgage. That is $4,400 more or another 44% return on your cash.
Tax benefits
You are able to write off not only your mortgage interest expense, your real estate and insurance costs but you can write off depreciation as well.
The government allows you to write off depreciation, a certain percentage of the building?s value against its income each year. This expense can partially shelter your cash flow. Or even be used to reduce the income from your other sources of income, like your job.
In the above example of the $100,000 house, your depreciation allowance would come to about $3,000 per year, which, if written off against your salary, would yield another $1,000 in cash if you are in the 33% tax bracket.
The total return on your $10,000 investment would therefore be:
Appreciation $5,000
Equity build up $ 800
Cash flow $3,600
Depreciation $1,000
Total return $10,400
That is a 104% return!
As an investor, you can shelter 100% of the gain from taxes when you sell your property, allowing you to invest all the gain into the next property!
Summary
As far as the potential drawbacks mentioned above, management and illiquidity, they can be handled. There are management companies to handle property management and illiquidity can be managed like any other financial variable.
Don?t step over the real estate ?Diamonds? at your feet in pursuit of entrepreneurial success. The low start up costs, the ?bank-ability? of real estate and its high, tax favored returns to most other businesses can catapult you to unbelievable heights in a few years.
I was able to retire from my National Sales Manager job in computers in only 5 years after my first real estate investment!
Copyright 2006 Bill Young. Bill is a former bank loan officer. He is a real estate investment and personal wealth building consultant. You can read more of his investment and wealth building articles at: http://EzineArticles.com/?expert=Bill_Young He is available to consult 1 on 1 or to your group. He can be reached at 877-291-3642
Writen By : Bill Young
How The Rich Become Richer
Jun 30
Have you ever wondered why it is the rich seem to only get richer? I know that the question appears to be a generalization, and it is. In this article, we will look at the stereotypical rich person. What makes their wealth continue to grow?
There are things that the rich do that keep them rich. There are things that the poor do that keep them poor. If you want to be wealthy financially, you have to think, act and handle money like the wealthy.
The first thing that is noticed about the wealthy is that most of them are well educated. Especially when it comes to financial matters. I\’m not necessarily speaking of college or business school when I say education. I mean financial education.
This is obtainable by anyone. All you have to do is start learning. Can you answer any of the following questions?
Do you know how to buy a piece of foreclosed property?
Do you know the difference between a loaded and no-load mutual fund?
Do you know what a P/E ration is?
Most Americans cannot answer the question with a \”yes.\” But the answers are easily found in the library, on the internet and through your local community college.
You don\’t have to know everything at once. Pick a specific area that really interests you, such as real estate investing, and learn all you can. Move on to investing in mutual funds and trading in the stock market. Choose one or two areas that you really enjoy to excel in.
Don\’t start moving your money around until you know the area like the back of your hand. If you want to trade in the stock market, read at least five books on the subject before you make that first trade. You can also seek out a good mentor to help you decipher information. Most financially minded people enjoy helping others learn the tricks of the trade.
The next characteristic of the rich is that they are extremely disciplined. I know a couple that own a million dollar home and have no debt. They splurge every now and then, but if you ask the Mrs. how much her outfit cost, it probably came from a sales rack at Walmart. The point is — the rich aren\’t necessarily out there blowing every penny.
They have developed discipline over the years. There are rules to finances that they follow. They don\’t buy things on credit. If they don\’t have the money, they wait until they do. You don\’t find the wealthy using credit cards for their purchases. They don\’t go out and blow their money. They\’ve worked hard for it, and they want to see it continue to grow.
Successful people, whether it is incredible wealth or simply living debt free, focus their time on things that pay them back. They increase their knowledge, wisdom and understanding. They don\’t entirely focus their lives on money, but they give it a good amount of thought and planning.
I challenge you to act wealthy for just one month. Balance your account once a week. Stick with a budget. Learn as much as you can. See if your life is even better. The benefits of managing your money wisely are never ending. From a stress-free life to an early and comfortable retirement, you will be glad that you changed your way of thinking about money.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
Writen By : Martin Lukac