Posts Tagged rich

Why All the Guilt About Being Wealthy?

There’s a strange dichotomy in Western culture, with people desiring great wealth but also believing that the rich should feel bad about having so much. We watch TV shows devoted to lifestyles of millionaires, envying their marble-tiled bathrooms, private jets and closets full of $300 shoes, but we also feel like actually having all that money is something to be ashamed of. It really doesn’t make sense.

The basis of our capitalist society is the acquisition of wealth it’s called the “American dream,” and our economy relies on it. Money provides us with food, clothes, shelter, cars and a wide variety of luxuries, and it also makes our later years more pleasant. But many people find it difficult to enjoy wealth once they achieve it, suffering from an affliction that’s been nicknamed “affluenza” ? a sense of confusion, guilt and even depression that hits the newly rich.

Sometimes acquiring wealth brings with it an overwhelming fear of losing it, with the subject becoming increasingly anxious over investments, expenditures over home improvements, and small, seemingly unimportant purchases. Terror of losing money may make someone scared to take risks with their money, even if they made their money through risky speculations in the first place. It can also turn rich people into penny pinching misers, spending thousands of dollars to build a tennis court behind the home but never picking up a lunch check.

Self-made entrepreneurs who hit it big often become workaholics, as if they have to burn the midnight oil to justify their success. They say they’re working so hard to provide for their families, yet their families don’t get enough quality time with them. In the process of building their fortune by devoting the lion’s share of their energies to their business, they lose the love of the people closest to them. But actually enjoying their money isn’t an option for many of the newly rich, who get in the habit of working so hard that they never take a break to play a little.

But money – particularly money that you’ve earned through hard work and smart investing  shouldn’t something that causes family problems and depression. And it certainly shouldn’t be something of which to be ashamed. Sure, movies and television usually portray rich people as mean, bitter people who have no qualms about stabbing others in the back to get what they want. But there are as many good-hearted rich people as there are good people of modest means. Millionaires like Bill Gates and Oprah Winfrey create foundations to spread portions of their wealth among those less fortunate and still enjoy their money, building fabulous houses and flying their own jets to far-flung locations.

So achieve your dreams of wealth and then take the time to enjoy your money. After all, it’s what you’ve been working towards. Being rich doesn’t make you a bad person any more than being poor makes you a bad one it’s all in how you choose to live your life, so make the most of your success and have a good time!

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Stock Market Myths

1. You can tell if a Stock is cheap or expensive by the Price to Earnings Ratio.

False: PE ratios are easy to calculate, that is why they are listed in newspapers etc. But you cannot compare PE?s on companies from different industries, as the variables those companies and industries have are different. Even comparing within an industry, PE?s don?t tell you about many financial fundamentals and nothing about a stock?s value.

2. To make Money in the Stock Market, you must assume High Risks.

False: Tips to Lower your Risk:
? Do not put more than 10% of your money into any one stock
? Do not own more than 2-3 stocks in any industry
? Buy your stocks over time, not all at once
? Buy stocks with consistent and predictable earnings growth
? Buy stocks with growth rates greater than the total of inflation and interest rates
? Use stop-loss orders to limit your risk

3. Buy Stocks on the Way Down and Sell on the Way Up.

False: People believe that a falling stock is cheap and a rising stock is too expensive. But on the way down, you have no idea how much further it may fall. If a stock is rising, especially if it has broken previous highs, there are no unhappy owners who want to dump it. If the stock is fairly valued, it should continue to rise.

4. You can Hedge Inflation with Stocks.

False: When interest rates rise, people start to pull money out of the market and into bonds, so that pushes prices down. Plus the cost of business goes up, so corporate earnings go down, along with the stock prices.

5. Young People can afford to take High Risk.

False: The only thing true about this is that young people have time on their side if they lose all their money. But young people have little disposable income to risk losing. If they follow the tips above, they can make money over many years. Young people have the time to be patient.

Cory operates an educational website to help people discover their options to becoming financially free.
To learn more checkout:
http://www.choose-to-be-rich.com

Writen By : Cory Bain

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Building Assets The Right Way

Anyone with a desire to be wealthy, rich, or comfortable needs to follow a few steps. The first step is to create a plan of attack. An attack on poverty, on risk and on conventional thinking. Then they actually need to follow through with their plan. The plans vary person to person. For instance, older people can’t take the same risks as young people. They don’t have the time to spare. Nor would it be easy for them to replace lost money. But anyone can choose an investment plan that will work for their situation.

To create wealth you clearly need assets. An asset is not only something with value, but something that will put money in your pocket on a regular or planned basis. The assets you acquire can be purchased, like a dividend bearing stock or an interest bearing bond. They can be created, like residual income producing assets such as a product, song, book or network marketing system or even an insurance agents list of clients. By creating an asset instead of purchasing an asset, you will be able to build wealth in the fastest possible way because there is no capital investment. The capital you save can be used to create more assets. That is how a person gets rich. By using assets to buy or create more assets. You can earn an income for years to come from the same asset. The more assets you can build or buy, the wealthier you become as long as you reinvest your income into more assets.

Most assets you create become the fundamental elements of a business. The finest businesses to build into assets are the ones where you don’t have to work every day. If you take the day off, your asset is still producing an income for you. Real Estate offers this characteristic in many different ways, through residential properties, industrial properties and commercial properties to name a few. Other vehicles exist as well, such as insurance products, books, videos, audio CD’s, DVD’s and electronic files. Network marketing systems can create millionaires with their downlines. Podcasts and audio casts and any website can be an asset that can throw off income straight into your pockets.

Assets such as these also have another advantage. They create income that is taxed at a lower rate than any paycheck. The income earned on a paycheck is taxed at the highest rates. Income earned through portfolio or passive income is taxed at the lowest rates. There are no social taxes removed either. Social Security or Medicare is not taken from either passive or portfolio income. Expenses are deducted first as well, lowering your overall tax basis.

If you believe that you are incapable of creating an asset of your own, then you will be incapable. If you believe you can build as many assets as you want and actually get to work on building and creating assets, then you will become rich as long as you never quit on yourself. This is not a get rich quick scheme. It takes some time, but after any asset is in your portfolio it will begin to earn money for you. When reinvested into more assets your income will grow. When your assets produce more income than your expenses, congratulations, you are wealthy.

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Obligated Tax

I like most American?s complain about taxes and how the rich keep getting richer and the poor keep getting poorer. You?ve heard the arguments, the poor can?t pay taxes because they are poor, the rich don?t pay enough, and the middle class is left to pay the brunt. I complain not only as a cynic but also as a hopeful citizen that someday, something will change. I don?t wish to be seen as a socialist nor a bigot along class lines. I just want everyone to pay a fair share of the collective burden as our founding fathers intended.

Do you think the rich have paid their fair share? Do you feel that after paying taxes on several hundred thousand dollars the burden should be lessened because you?ve paid enough or more than the average amount per capita? Do you think it is fair or unfair that one person should pay more than another for the same services received?

According to the 16th Amendment on income taxes, ?The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.?

Without apportionment, what does that mean?

Here is a quote from Supreme Court Justice Paterson in Hylton vs U.S. (3 US 171 [1796]): ?The constitution declares, that a capitation tax is a direct tax; and both in theory and practice, a tax on land is deemed to be a direct tax… The provision was made in favor of the southern states; they possessed a large number of slaves; they had extensive tracts of territory, thinly settled, and not very productive. A majority of the states had but few slaves, and several of them a limited territory, well settled, and in a high state of cultivation. The southern states, if no provision had been introduced in the constitution, would have been wholly at the mercy of the other states. Congress in such case, might tax slaves, at discretion or arbitrarily, and land in every part of the Union, after the same rate or measure: so much a head, in the first instance, and so much an acre, in the second. To guard them against imposition, in these particulars, was the reason of introducing the clause in the constitution.?

Without apportionment, means quite clearly that the government has the power to tax people at different rates. In Justice Patterson?s explanation, the reason for taxing people at different rates is, some can afford to pay more than others based on their productivity and it is the governments duty to guard those less able to pay, against imposition.

It does not take a genius to understand that sharing the burden equally does not mean we divide up the national debt evenly and each pay one share. Sharing the burden equally means we all carry that portion of the total burden we are capable of carrying (paying).

Unfortunately the current tax structure soaks both the poor and middle classes only to spare the rich. The ?Who Pays? national study finds that poor and middle income families pay a much higher percentage of their income to taxes than do the rich. The wealthiest pay non federal taxes at a rate equaling 7.9% of their income while the middle class and poor pay 9.8% and 12.5% respectively. In the United States, a country with the phrase ?In God We Trust? bannered on its currency, this seems unconscionable. How can those with the least be expected to contribute the most by percentage? What happened to guarding against imposition?

Taxes are our collective duty, a price of continued enjoyment of the privileges of being a U.S. citizen. When I hear that extremely privileged people can?t afford to pay the same percentage of income in taxes that the poor and middle class pay, I find myself hoping their investments fail miserably so that they will be able to afford to pay their share of the burden. If we are Americans collectively and we all enjoy the benefits collectively, then we should pay collectively and accordingly to what our means allow us to contribute. This may seem a harsh view, driven along class lines, but even some of America?s wealthiest hold this true to one extent or another.

Warren E. Buffett, George Soros, and Ted Turner, have warned about the concentration of wealth and how it can turn a union based on merit into an aristocracy. Economic growth can be hindered by allowing a nation\’s capital to sit idly in the hands of inheritors instead of funneling it back thru the ranks to a new generation of innovators and workers. Even Alan Greenspan, the Federal Reserve chairman, warned in Congressional testimony, \”For the democratic society, that is not a very desirable thing to allow it to happen\”, speaking on the concentration of wealth in our country.

F. Scott Fitzgerald said the very rich, \”are different from you and me,\” to which Ernest Hemingway replied, \”Yes, they have more money.\” To this I would add yes and they pay a disproportional smaller percentage of taxes on that money. This means the wealthiest one percent, are enjoying an unfair economic advantage over the rest of us beyond what they have earned.

Before you gather up arms against your local doctors and lawyers thinking they aren?t paying their share, you should understand I?m not talking about them at all. I am talking about nobody you will, in all likelihood, ever see much less meet. What the average American sees as a person of wealth is more likely a true middle class or upper middle class person. In fact the richest or wealthiest person you know is probably in the 50% tax bracket, fully half of all their earnings going to one tax or another. No, it isn?t these people I am speaking of at all.

The persons I?m talking about are the true upper five percent of Americans, those making over ten million dollars a year. Did you know the wealthiest 5% have collected 59% of the money but only pay 38 % of the taxes? Did you know it gets worse? The wealthiest 1% own 38% of all wealth in this country and pay only 25% of the taxes. Does this seem fair and like a shared burden?

Knowing this, would you now be surprised to learn that the bottom 40% of tax payers (you and me), have an average net wealth of $1100.00 hundred dollars? We on average are worth $1100.00 dollars and are paying on average $1793.00 in taxes. This is 163% of our net worth gone every year and people are still wondering why they can?t seem to get ahead in life. Why are we paying so much? It?s easier to answer this when you consider the wealthiest are paying 3.5 percent of their wealth in taxes. We pay 163% and they pay 3.5 %. The money has to come from somewhere after all.

What does this mean in plain English and what is the solution?
If all taxpayers paid the same 10.5 percent of their wealth in taxes as a median income family pays, the taxes of the lowest 40 percent (you and me) would be cut by 94 percent while the taxes of the wealthiest would triple. Source: Congressional Budget Office and United for a Fair Economy

?We the people?, need to print this up as a bumper sticker, spread the word and start firing the political puppets of the rich. I for one do not hate the rich, they are Americans also. I just want them to pay the same 10% I feel obligated to.

Born in Southern California in 1964, Jason Webb Considers himself a student of life. He is currently attending the University of Northern Iowa pursuing a degree in communication.

Writen By : Jason Webb

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Is It Possible To Make Money Online? Heres The Surprising Evidence

So I?ve quit my job and have am now looking at alternative ways of producing a income. There are probably many people in the same situation.

I?ve got enough money in the bank to last me a couple of years so I?ve approached this from an impartial perspective and am motivated by curiosity more than potential financial gain.

There are lots of web based ?opportunities? which claim to be able to generate cash, but as with all things in life you never get anything for nothing and they all seem to play on the same emotions which drive the stock market ? Greed and Fear.

Is it possible to generate a passive income from an on-line venture?.

I don?t know is the honest answer, but after several days of on line research I?ve chosen a system that?s going to help me find out.

Did it cost me money ? absolutely. The same price as a good night out.

Did it cost me time ? absolutely. A few hours

Did it make me money ? Possibly ? I?ll keep a running total on my website to show money spent compared to money coming in..

To view the system I?ve chosen for my initial venture into generating income from the web please visit my website.

There will be a link from the site to show the financial status to date.

Remember ? I have no reason to lie. I?m doing this for fun and to prove a point.

www.impartial-opinion.com

Good Luck with your online income generation/working from home business venture!.

I\’m a professional engineer but with limited web skills. I\’m following the instructions of one of the more famous \’get rich quick\’ schemes to (dis)prove whether it works and provide an honest view.

Writen By : Richard Johnstone

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So You Want To Be Rich (Part Three)

We?ve been looking at different incomes and hopefully you?re seeing that leveraged passive income will make you much richer than trading time for money.

So why don?t more people do this?

Partially, it?s because they don?t know. But society plays a big part too. Consider that most people spend way too many hours watching TV. On a TV show the crime is solved in a ? hour. Someone instantly wins a million dollars. A home gets remodeled in 30 minutes. TV is teaching us to expect things to happen almost instantly. People expect life to work that way too.

Here?s the problem with leveraged passive income:

You will put a lot of work into earning passive income before you make any money. In the beginning, you do a lot of work for free without any proof that it will earn you any money down the road.

There it is. It?s just that simple. You see, at a job, you work 40 hours (or more) your first week. You wait about a week or two, and then you get paid. A passive income project could take years before you see your first dime. People just get impatient. How long would you show up to work if you didn?t get a paycheck? For most people I?d bet they wouldn?t work longer than a month for a company if they didn?t get paid right away.

If you were to graph most passive income projects they look like this:

* NOTE: I can not post the graph on this article, but you can see it on my blog (address below)

In the beginning you don?t make hardly any money. But years down the road (read that again, I did say years), your passive income can exceed what you make at your job. Now you have time and money. By most standards you?re rich!

You now have free time to make more money if you want, or you can slow down and enjoy life a little more.

Hopefully I?ve sold you on the idea of working for a worthwhile passive income project and not simply working for money. In the next article we?ll look at few ways you can start generating this precious income. Some of them take more money than others, but I assure you that even with no money you can build a substantial passive income stream if you simply stick to it.

Bryan C. Fleming is the author of his blog http://www.BryanCFleming.com. Stop on by to check out more articles like this one.

Writen By : Bryan Fleming

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If You Can See It, You Can Get It!

Every great achievement in life, started with a dream. Whether it is the building of the tallest building in the world, the development of the computer, or the construction of the airplane. They all started as a dream in somebody\’s heart who was courageous enough to keep searching, until he found the answers that made the dream a reality.

All achievers are dreamers. For you to achieve any great thing in life, you must have a clear dream of what you want to achieve. Your dream becomes your reality. This activates the potentials within you, and energizes you to pursue your dream with vigor. It is not going to come easily, for no great achievement comes easily. You are going to meet obstacles and oppositions- that\’s very certain. But it is what you see that would keep you moving on when you meet obstacles. It is what you see that would keep you moving on when you fail. Failure is necessary for success. The most successful people in life are not those who has never failed in anything, but those who kept moving because of what the see, until they succeeded.

One major difference between the poor and the rich, is the courage to confront failure. Whereas the rich see failure as a step towards success, the poor sees it as a hindrance to their success and the reason why they cannot succeed. One secret about failure is that its not as strong as it appears. It really is easier to succeed, than to fail. It all depends on what you see. That limitation can become your greatest strength, if you can see the strength in it.

I heard a story of how a shoe marketing company sent two of their salesmen to an Island. On reaching the Island, one immediately sent a telegraph that he is coming back since none of the people living on the Island wore shoes. The other, too, sent a telegraph that he needed more shoes since almost everyone on the Island needs them. That obstacle is the reason why you must succeed and not the reason why you must fail.

You can become rich, if you can see the riches that are hidden in human needs. Discover an area of human need, and become an expert in solving it. That\’s the secret of wealth creation. Until you meet peoples needs, they will not become willing to meet yours. You can create wealth for yourself by solving a particular human need excellently. People need you to be happy in life. You are a solution to a particular problem, you are not a liability. Wealth building is quite simple, but you have to see it before you can get it.

Life becomes boring when you don\’t see anything to aspire for. It is in achieving your dreams and aspirations that you find fulfillment. So, rise above your limit. See something great and go for it. Be courageous enough to confront the obstacles. You can surely get .

Uche Onutochukwu is an internet business coach that helps small businesses to succeed online through a weekly Way 2 betterlife Newsletter. You can get more about him at http://www.2betterlife.com

Writen By : Onutochukwu Uche

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