Sunday, December 30, 2012

For more than 20 years volunteers from the Mt Hood National Forest, Or Dept of Fish & Wildlife and local fishing organizations have put a smile on kids faces at the annual Trillium Lake Free Youth Fishing clinic held on the Sat of Father's Day weekend, this year, Sat 6/16. Trillium Lake is also a great place for families to see emerging wildflowers as well as birds and other wildlife. For current Summit Meadow cabins availability click on summer availability on this blog

Buy Investment and Foreclosure Property in Colorado

Colorado Investment Properties Colorado State is located in the mountain region of US. It is also known as the "Centennial state", the city offers some of the best mountain views available in USA. Buying an investment property in Colorado would help you earn some extra income for your family. Here are just a few interesting things which Colorado has to offer for tourist around the world.

Sunday, December 9, 2012

Send The Civilians Home

The other day I overheard an Air Force Staff Sergeant tell a civilian the following: SS: “I wrote to my congressman and told him that all the civilians should be sent home. You guys get paid too much”. Civ: “I’m here because I want to be here. I like my job. You can apply for a civilian job when you get back”. SS: “I like my family too much to do that to them”. That exchange got me to thinking… what would happen if all the civilians were sent home? How would the dynamics change at Bagram? How would that affect the military in the long run or the short run? Most of the civilians live in B-huts, relocatable buildings (RLB’s), or tents. Some civilians live in connex containers and a very few of them live in block barracks. The civilians living in block barracks generally work for the Air Force.

Prime Portable Cabins

Welcome to Prime Portable Cabins. We are based in Delhi, we specialising in new and refurbished modular buildings and portable Cabins solutions throughout the India. We offer an extensive range of portable, modular and prefabricated buildings alongside installation for both domestic and commercial applications. Temporary buildings are the ideal and affordable solution for any company or contractors in need of portable accommodation. Possibly due to building work, renovation or as a prefabricated classroom our portable buildings are available for use at a moments notice. We offer a nationwide service with all deliveries on a next day service where applicable. All our portable and modular buildings come in an extensive range of sizes alongside a variety of interior extras depending on the client’s individual requirements. All portable cabins arrive fully equipped and are ready for immediate connection to plumbing and electric facilities.

Tuesday, November 27, 2012

How to Get Rich - Understand Cycles

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 period of time and then fall back (or correct) for a period of time. Good investments will generally have an upward trend, but they still have cycles of growth and correction.

Identify Cycles Before You Invest

If you really want to get rich and stay that way, you had better study the cycles of what it is you want to invest in. You must be able to identify ahead of time where in the cycle your potential investment is. If you don't, you will risk paying too much or even worse you will risk losing a part of your investment.

As I said earlier, there are good times to buy most investments and not so good times. The trick is to know when these times are. Generally after a long period of growth is not so good a time, whereas after a long period of correction is maybe better or possibly even good.

You will find that many experienced investors do most of their buying when markets are performing poorly. After a long period of growth is when they often sell and wait for another buying opportunity. They know how to use the cycles to their advantage. The average investor does not.

Length of Cycles 

Each type of investment has a different length of cycle. Generally, the Real Estate markets have very long cycles that can last years or even decades. Stock markets have cycles that are much shorter, months or even years for instance.

Individual companies can have even shorter cycles based on seasonality or other factors that influence their sales. Every company will have different cycles.Each one must be studied separately.

What To Do

The most important thing to remember is that everything has cycles. You should learn all you can about an investment before you invest. If the time does not look right, don't be afraid to wait for a better time. Never feel pressured into buying now if it doesn't make sense. You will not lose money while you are waiting. Remember the number one investment rule. Don't lose money !

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

Tuesday, November 20, 2012

How To Get Rich - The Absolute Second Step

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 you ? Of course it would !

Put It To Work  

The absolute second step to building wealth is to put your savings to work. This basically means that instead of leaving your savings in a bank savings account forever you must find opportunities that will give you an income from your savings. In other words, invest your savings to get an income in return.

There are many types of investments, but unfortunately many are not so good or even downright bad. The trick in the investment world is to not lose money. Picking bad investments is not the way to ensure a wealthy future.

It is not my intention to give you specific investment picks, but to educate you on what types of investments you are personally comfortable with. There are plenty of sources out there that will give you specific picks when the time comes.

Where To Start 

For the new investor I recommend taking it slow and learning as much as you can about the different forms of investment. There is nothing wrong with leaving the bulk of your savings in low risk investments such as term deposits or money market funds until you feel comfortable. Remember the number one rule of investing "Do Not Lose Money"

Be careful not to fall for the promise of a big return. Generally there is no such thing without taking a big risk with your savings. Risk and Reward always go hand in hand.

As your savings and your education grow, you will eventually feel more comfortable with taking a little more risk in order to earn a little more income from your investments. I encourage you not to jump ahead too quickly until you fully understand the consequences of your decisions.

I will be writing more about investing in the future, so stay tuned or better yet, subscribe to my blog today.

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

Tuesday, November 13, 2012

How to Get Rich - Use Other Peoples' Money - Part Two

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 interest rate. Secured lines of credit generally receive a much lower interest rate as there is less risk for the lenders.


A Mortgage is a loan on Real Estate that is secured by the actual real estate. If you own your home, you will likely already be very familiar with this form of loan. I generally only recommend this form of investment loan if you are planning to purchase revenue producing real estate as your investments. These are not well suited for liquid investments as there are too many restrictions and penalties built in should you decide to cash in your investment and pay off your loan. Good for long term revenue producing real estate only.

Margin Accounts

Margin Accounts are loans that are offered by your stock broker and are secured by the asset you are purchasing. I'm not personally comfortable with this form of loan as your broker can require partial or full repayment at any time your investment is below water (in a loosing position) You have absolutely no control over when to make repayment and you may have to sell your investment at a loss in order to repay your loan. Losing money on your investments is never a good way to get rich.

What To Choose

The line of credit, the mortgage and the margin account are basically the most widely used forms of "using other peoples' money" that investors use today. Which form you use will be determined by your type of investment, the length of time you wish to hold your investment, and last but not least, the form of loan that you will be able to qualify for.

I personally use lines of credit and mortgages for my investments and have never used a margin account. I believe in having total control over when I repay my loan amounts.

Using other peoples' money can be very rewarding, however, there is also a great deal of additional risk involved and should only be utilized by experienced investors. This is not the place for the average investor to be starting as it could lead to a total loss of the invested amount should things go wrong.

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

Tuesday, November 6, 2012

How to Get Rich - Turn Negative into Positive

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 all know at least one of these individuals but maybe not as well as we would like to. We feel intimidated and not good enough to hang out with them. (negative)

The good news is that you too can become one of these positive individuals. It may take some hard work and constant mental conditioning, but it is possible.

Think of life this way. For every negative action that happens there is an equal and opposite positive reaction somewhere. This is a law of nature Life is always in balance. The trick is for you to find the positive reactions  and embrace them.

It may seem like a simple thing to do but in reality it is far from it. You must first learn to overcome the negative conditioning that you have been used to living all of your life. This is not east and near impossible for many individuals. The negative for them is just too overwhelming.

Turn to The Positive

To reverse your polarity (negative to positive) you must start thinking of the positive outcomes to a negative event. There is at least one somewhere, but sometimes they are well disguised. As an example, the good side of a stock market crash is that everything is on sale. There are many bargains to be had for those that embrace the positive.

Another way to become more positive is to filter out the negative whenever possible. You can start by realizing that the media makes money from the negative. Stop believing everything you read or see. Life is not as bad as what they make it seem. Do your own research and you may be amazed.

There are also many books and other programs that are designed to help you think positive thoughts. Make it one of your goals to look for things to encourage your positive thoughts. It is a lifestyle worth embracing.

Turn negative thoughts into positive ones and you will be amazed at what opportunities you will begin to see beyond the fog of the normal negative world we live in.

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

Tuesday, October 30, 2012

How to Get Rich - Never Pay Full Price

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 dollar earned, or a hundred dollars saved is a hundred dollars earned,etc.

If you are having trouble saving the amount you need to achieve your goals,  then why not develop the attitude of never paying full price for anything again. Make this a habit and put your savings towards reaching your financial goals.

Action Steps

There are many ways to get deals and reduce your everyday living expenses.

For instance, make it a habit to always shop around and compare prices. You will be amazed at the huge difference competitors will charge just to get your business.

Another way is to collect coupons from manufacturers and retailers. Coupons are designed as a form of advertising to get you to try their products at a discount, sometimes a big discount. The key here is to only collect coupons for items that you would normally buy everyday. Don't fall into their trap of trying new things just to get a deal. This will likely increase your cost of living. Be disciplined !

Always negotiate the price on big ticket items, such as an automobile, etc. Prices on the larger items are almost always designed to allow for a price discount. If they won't budge, don't hesitate to walk away and take your business elsewhere. The key here is to never let them think you really like something. Develop a take it or leave it attitude. You may find that they will be chasing you down the street when you walk out.

Never buy the add ons such as extended warranties and auto dealer rustproofing etc. These items are designed as pure profit generators and give you very little if any value. Learn how to say No to the pressure tactics they may try to use. Profit for them and extra cost for you. Not good for making you rich.

Penny Pincher ?

Never look at yourself as a penny pincher or being cheap. After all, it's your money and you should be able to spend it however you decide. Why not get the most out of your hard earned dollars. You really do owe it to yourself to get the most bang for your buck.

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

Tuesday, October 23, 2012

How to Get Rich - See Your Life as a Business

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. Pretty soon, you could have a whole army of these tiny employees under your command. What power you will have !

Don't Fire Your Employees

The biggest mistake most individuals will make is to fire their employees (spend their money) before they have a chance to make other employees. In order for a business to thrive and grow they must retain their employees (earnings)  in order to invest for their future ( hire more employees)

This is basically a very simple business strategy that anyone should be able to develop. Start by hiring as many employees as you can (saving as much as you can) . Find productive jobs that these employees can do for you (invest wisely) and most important, never fire your employees (never spend the money)

More Now Equals More Later

The more employees you can hire today, the faster your business will grow and the more employees you will have in the future. Pretty soon, you could be commanding your virtual army of tiny employees that will always be loyal to you and never give up on the fight to survive and thrive.

Perhaps this idea is a bit crazy and off the wall for most. However, I like to see it as a way for the average individual to feel the power of control that they alone have in developing their future potential. It truly is within you to do what you want to do.

Start your new business today and go out and hire as many new employees as you possibly can. The sooner you start the faster your business will grow !

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

Tuesday, October 16, 2012

How to Get Rich - Kill Your Bad Debt

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 institution. Not a good plan.

To kill bad debt, you can either pay it off with a repayment plan or find a way to convert your bad debt into good debt.

Repayment Plan

For most, unless you already have liquid investments, this will be their only option for killing bad debt. Start by identifying which of your debts incurs the highest interest rate. If you have credit card debt, this is normally where you start. Next, proceed to the next highest rate and so on.

To free up funds to put towards repayment, you will likely have to make sacrifices to your lifestyle or increase your current income level. Either way, it will not come without some pain. Motivation is the key in any debt repayment plan. It will take time and commitment.

Turn Bad Debt to Good Debt

If you already have investments that are liquid (easy to turn into cash) and will not incur a lot of income tax if you were to cash them in, it may be best to look at this option for killing your bad debt.

First, cash in all of your investments that fall into the above category. Second, use this cash to pay off all of your bad debt. Third, obtain a new loan for investment purposes. Fourth, use the borrowed funds to buy back your previously cashed in investments.

This will in effect turn your bad debt into good debt. The big advantage of this option is that in many countries, you will now be able to "write off" your interest payments as an investment expense on your income tax. This can be a significant amount, especially as your income increases.

The key for this option to work is that your investment income or expected gains must be greater than the interest you will be paying on the loan. Check with your local adviser before trying this option.

R. I. P.  

Both of the above options could be used together to ensure your bad debt is killed and hopefully will never resurface from it's ugly grave. Motivation and determination to improve your financial life will be absolutely necessary to achieve this ultimate goal.

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

Tuesday, October 9, 2012

How to Get Rich - Secure Your Main Income Stream

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 advancements etc. Grumpy employees generally do not get very far.

It is therefore in your best interest to be liked by your superiors and may prevent you from being the first one to be laid off if tough times are ahead. If you don't like what you are doing, find something you would like to do. Life is too short not to.

Add Value to Yourself

Your goal in any job or career should be to position yourself to be the last one to be laid off. In order to do this, you must give your employer a reason not to consider you for a layoff. If you can work towards being the most valuable employee in the organization, this will certainly help. Be the best at customer relations. Be the most punctual and reliable employee. Do a little more than what is required. Etc. etc. You get the idea !

Adding value to yourself will also make it easier to get a good recommendation some day if needed for another job or career position. This is basically your best insurance from a life of poverty.

Be Prepared for the Worst 

Even doing all of the above does not guarantee you will not someday be the victim of a layoff. Many things can happen that are totally out of your control. A company could go bankrupt. Governments could change policies that eliminate your job. Etc. etc. You therefore need a financial buffer to help through a potential layoff.

Many call it an emergency fund. Today, I call it a survival fund. I recommend saving an amount equal to three to six months of your committed expenses. Keep this amount somewhere where you can't easily get at it such as a savings account with no bank card access.

By following the above suggestions you should be able to prepare yourself as much as reasonably possible for  a possible disruption to your main income stream. Nobody knows for sure what the future will bring, but we can take steps today to help limit the damage should trouble arise.

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

Tuesday, October 2, 2012

How to Get Rich - Have a Destination

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 out in detail and the results should be measured against your desired outcome. For example, let's say you wanted to increase your investment income by a certain amount per month. You must first determine how much you need to save to invest. You must then determine how many investments you wish to make to provide this desired income.  
You must then look for good quality investments to provide this desired income. ( I recommend using my 50/12 Rule for this example - check it out in one of my previous posts)

Work Your Plan

Once you have developed your plan with all the necessary steps, it is merely a  matter of starting to implement your plan. You have already determined what it is you need to do for each step. Start with your first step and just do it.

Of course you may find there to be obstacles in the way which you must find a way to overcome. This is normally the case with all well intended plans. These are the challenges that I mentioned in a previous post that must be overcome in order to reach your desired outcome  (or goal) and to take advantage of the opportunities that await you.

Measure, Measure, Measure

Every step should be measured continuously along the way. Much like your car's odometer measures your distance traveled so that you know exactly where you are at any given time. This way you know how far you have come and how far you have left to go. This is a very important component of your project as it will help keep you motivated towards reaching your desired destination (or goal)

To know exactly where you are will give you a great feeling of well being as you look back to see how far you have come. As your destination grows closer, your feeling of well being will increase and your determination to reach your destination will become overwhelming.

In order to become wealthy, you must first know what wealthy means for you. (Your Destination)
Without knowing your destination and having a plan to get there, you could wander aimlessly in the vast world of financial challenges and opportunities and get nowhere.

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

Tuesday, September 25, 2012

How to Get Rich - Know Your Housing Market

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 to Live

Yes, a place to live. That is all your home really is. Now that you hopefully understand that, how do you know when purchasing your home is the best option ? Simple. When you can afford it. Decide what percentage of your income you feel is wise to spend on housing and don't go over that amount.

If your local housing market forces you to pay more than you are comfortable with, simply don't buy. It may be wiser to rent your home ( if it's more cost effective ) and invest the difference in income producing investments. This will help you in two ways. Firstly, it will increase your level of income. Secondly, it will give you time to really think about how you will be able to someday afford your dream home.

Home ownership is not always a good thing. Just look at the thousands of foreclosures in the US over the past few years. Many of those individuals will never recover financially from the housing market disaster.

Market Bubbles and Collapses

Most things go in cycles and real estate is no exception. Real Estate has a much longer cycle than most commodities, which is why many people lose money in real estate. They don't have the patience or the resources to wait out the cycle. Many simply don't believe that prices will ever fall.

I live in a current real estate market where buyers actually bid on properties, often paying thousands more than the asking price and often far more than the real value of the properties. Insane. Needless to say I have not been a real estate buyer locally for some time. I have however, been a seller on a few occasions taking advantage of the insanity of the buyers. Very profitable for the seller.

Buy low, sell high is my motto even when it comes to Real Estate that you live in. If you pay too much for your home, it could eventually become the noose that may  hang you financially. Don't buy it if you can't afford it. Invest your money instead in something that will pay you an income.

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

Tuesday, September 18, 2012

How to Get Rich - Turn Challenges into Opportunities

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.


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 their way to getting what they want.

They know exactly what they want and thy never give up until they find a way to overcome whatever obstacles are in their path.

 Overcoming Your Obstacles

The first step towards overcoming your obstacle is to believe you can do it. The next step is to gain the knowledge you need to tackle it head on. Lastly, take action with your new found knowledge and don't give up until you succeed.

Sounds simple, but it is far from it. Most people will become discouraged or be led astray by others. Many will become distracted by things that seem far more interesting or important at the time.

Your future will be determined by what decisions you make today. It's your choice.

Choose to become financially successful. Choose to start working to overcome your obstacles today.

Your biggest obstacle could be your own state of mind. Believe you can and you can. It may be that simple.

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

Tuesday, September 11, 2012

How to Get Rich - Understand the Number 72

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 paid annually. If you reinvest your annual income every year it would take 14.4 years before your investment would be worth $20,000.00  (72 divided by 5)

Why So Important

The above example shows just how important it is to find investments with the highest possible yield. Of course most investments fluctuate in value and can even decrease in value over time. Therefore, the rule of 72  should only be used as a guideline for forecasting future valuation levels.It is basically a tool used for estimating future values and in real life will never be exact.

It also does illustrate how valuable it is to invest your money versus leaving it in a bank savings account. The best bank accounts currently pay a yield of only 2% at best. Leaving your money there would take you 36 years to double your money. (72 divided by 2) Not a wise choice.

72 and You

Get comfortable using the rule of 72 and you will be able to see if a potential investment is suitable or basically good enough for your investment portfolio. Remember though, if an investment does not pay out regular income, the rule of 72 will not help in your forecasting. This is because you have no basis for your future growth other than guessing that your investment will rise in value each year. In reality, all investments, good and bad, rise and fall in value over time and are subject to many variables and risk factors.

The rule of 72 is merely one of the many tools at your disposal to aid in your building of future wealth. Use it for estimating your future values and comparing the effects of different investment choices. It will serve you well.

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

Tuesday, September 4, 2012

How to Get Rich - Learn 3 Magic of Money Secrets

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 learn how to save a portion of all you earn, then invest it. Simple. Try saving ten percent of what you earn today !

Magic of Money

1) The saving of ten percent of your income is something I have mentioned many times, but it is one of the most valuable aspects of the Magic of Money. It is the very first step for most of us in creating future wealth.
Without some money, how will you ever be able to have your money work for you ?

2) The Rule of Seventy Two is a very magical way to calculate your future wealth. Simply take the number seventy two and divide it by the rate of return on your investment. The answer will give you the number of years it will take to double your initial investment providing the income is reinvested. Simple, but very effective in projecting your future wealth and income from your investments.

3) The Fifty Twelve rule is basically investing in a way to create an income stream of fifty dollars per month. I have mentioned the details of this method in a previous posting, so I will not repeat it here. To build your income, you simply divide your desired monthly income level by fifty and create that many modules. Simple, but very powerful.

The above three secrets of the Magic of Money are all you really need to start on your way to building your desired level of income and your desired level of wealth that you desire.They can form the very core of your wealth building strategies.

Of course, there is much more you can learn in the world of finance and I encourage you to learn as much as you possibly can. However, these three basic principles (or secrets) can go a long way to ensuring you have a bright and prosperous financial future.

To turn the tables and have your money work for you, you simply must have money. Learn how to save, learn how to invest, then watch your wealth grow.

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

Tuesday, August 28, 2012

How to Get Rich - Open your Mind

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 !


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 !


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 scared to try something new or are you just like everybody else. Comfortable ! Too comfortable to really make the changes needed to prosper. The choice is yours. Internalize ! Become passionate about your goals and dreams ! Do it NOW , not later !

Open Up

Throw off the blinders of life and embrace new ideas and opportunities. Open your mind to the possibility that you can do it too. Just like other successful people in life, you too can enjoy the many opportunities that await you. Seek and you shall find. Be determined and never give up.

Without the proper mindset you will not be able to be truly successful. You must think that you can do something before you ever try. If you don't, you have already lost the battle and may as well give up. You will soon realize that your blinders are still on.

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

Tuesday, August 14, 2012

How to Get Rich - Asset Numbers Not That Important

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 more money they make as well.

Alternative Focus

As an alternative to reaching a savings or investment asset goal, I would suggest you calculate what your current living expenses are today. Now add an amount of additional income that would make you feel rich today. Use this rich income amount as a guideline for building your investments.

This rich income amount would cover all expenses associated with living your dream life in today's dollars.
In other words, what would you have to earn today to feel absolutely filthy rich ?

Now, subtract out your current net income. This difference will represent what additional income you need to generate to feel rich. You can now calculate how much of an investment you will need to generate this income. As an example, at a 10% yield you need to invest 10 times your additional annual income amount requirement.

Eventually, you will also want to replace your current earned income with passive investment income in order to free up your time to enjoy your wealth.

Simple But Effective

This approach is much simpler to calculate on your own without the help of an adviser. There is no need for complex computer software models and future unknown projections. You would simply repeat this procedure once per year to adjust your income targets as you go.

You will also find that you can start to enjoy a rich feeling much sooner as your income starts growing. One drawback of the traditional asset number building strategy is that you don't feel rich until much later in life. You really do owe it to yourself to feel good about your financial position as soon as possible.

Give this approach a try and you may find that you are closer than you think to realizing your future dreams and goals.

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

Tuesday, August 7, 2012

How to Get Rich - Conquer Your Fears

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 the first step towards conquering your fears.

E is for EDUCATION  

Once you know what you want to do, you must learn everything you can from others that have already done what you will be attempting. It can be very comforting to know that others have been successful and you can be too as long as you follow their lead. Don't try to reinvent the wheel so to speak. Utilize the knowledge of others to calm your fears.

A is for ACTION 

Once you have learned as much as you possibly can, it is time to take action and just do it. Without taking action you will never succeed at anything. By taking action, you will be transferring your faith and education into something that is real. Yes, you can still make mistakes. However, without action you will never know how to achieve your goal or how to correct your mistakes. The process of taking action will also calm your fears as it will keep your mind focused on your goal.


Yes, repeat, repeat, repeat. If at first you don't succeed, try and try again. Learn from each attempt and just do it again. Also once you become successful, you will now have the formula in place to repeat what you have done many times over. The more you do something, the more comfortable it will become. Remember when you learned how to ride a bike? Same idea exactly. If you repeat something often enough, it will become second nature. You know that you will be successful before you even start. Your FEAR has been conquered.

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

Tuesday, July 24, 2012

How to Get Rich - Fire Your Boss

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 that so many people dread going to work each day. What a sad life, really !

This is not to say that we do not have to work. Most of us do. It means instead that we should be developing our lives towards doing something we don't hate to do to pay our bills and have some fun. Simple in theory but much harder in practice.

How to Have Control of Your Time

To be truly free and rich you must have control of your own time. In order to do this you must find a way for your bills to be paid without working for the money. The most common legal and ethically sound way is to develop investments to pay your bills. 

In order to do this you must learn all you can about saving, debt reduction and investing . Do not fall prey to the many so called investment professionals that always take care of their own bills first. Learn to do it yourself. Stay in control of your savings and investments at all times. Control your money and you will soon be able to start controlling your own time.

Start working towards taking control today and some day you will be able to fire your boss and tell him/her to take a hike. But don't do that until you are ready and the time is right. 

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

Friday, June 29, 2012

How to Keep Your Wealth - Beware the Financial Earthquake

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 any time and when least expected.


                                                                 The Quake Zone

A few examples of the financial earthquake are as follows. The loss of a good paying job or career. The loss of one's home. The collapse of a good quality investment. The loss of one's health. The loss of a loved one.
The loss of a good credit score. Plus many more.


Components of your foundation should include all of the following. Insurance for everything that matters in your life. An emergency reserve of up to six months expenses. An ongoing savings plan to ensure your building keeps growing. A solid diversified base of income producing investments. Well thought out wills and powers of attorney to ensure continued growth for future generations.

All of these foundation components are described in greater detail in previous posts on this site. Explore them now to ensure you have every corner covered.

Without a proper foundation, you could well become a victim of the financial earthquake. Avoid being a part of the rubble by preparing yourself today. If you fail to prepare, no one else will really care. This I guarantee.

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

PS  To All Readers !!!

During the summer months, I generally take more time to reflect and will likely be writing less often. Please take this time to review this entire site for all you have missed. I would also really appreciate your comments on any of the topics. Remember, I am writing this blog for you. Please let me know what you would like to hear about in the future.

Have a Great Summer !!!

Richard Lyons

Tuesday, June 26, 2012

How to Keep Your Wealth - Think Like a Turtle

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 many steps before you recover.

Stop, Look and Listen

Along your path to building wealth, it is always wise to stop and reflect on where you have come from and even reward yourself along the way for steps that you have achieved. Also, take a look ahead and ensure that the plan you initially developed is still relevant today. Don't be afraid to adjust it when necessary. A course correction so to speak.

Pull in When Danger Approaches

It is wise to become less aggressive with your investing when there has been a long period of steady growth. Most markets progress in cycles and not at a steady and even pace. Never be afraid of selling an investment to capture a gain. There will always be another opportunity in the future. Keep a higher level of cash when you feel there are few opportunities. Wait for the right opportunity at the right time.

Turtle Power

We can all learn lessons from the wise, old prehistoric turtle. The turtle has survived all these years because of built in protection and cautious movements. These are two vital components for anyone who truly wants to create everlasting wealth. Plan for the best and be prepared for the worst. An everlasting plan for true wealth creation.

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

Friday, June 22, 2012

How to Get Rich - The Very First Step

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 of your everyday expenses. It may seem that by doing this, you are being greedy or selfish, and in a sense that is true. However, who is doing all the hard work to earn this income ? That's right, you are ! Then do you not truly deserve to keep a part of what you earn just for yourself and nothing or no one else ? Of course you do!

Keep this amount in a bank account that you can absolutely not access with your bank card. You must ensure this amount is extremely difficult to access and should only be used for future investing. Period.

Why Most Will Fail

Most people will never become wealthy simply because they fail to take the very first step that is needed. For whatever reason (and there are many) they don't feel that they truly deserve to keep a part of all they earn for themselves. They are easily persuaded or distracted by other things or other people that seem more important at the time.

Some will start off well, but become discouraged or distracted. They dip into their savings "just this once" to buy this, that or the other thing. The problem is, this dipping will become a habit that is very hard to break.

Another problem is that a person's income may only be enough to cover everyday living expenses. In this case, the person must reduce living expenses or increase income (or both) in order to take the very first step. Simple in principle, but an overwhelming obstacle for many.

First Step is The Hardest

The first step to building wealth is the easiest yet hardest step. It's easiest in the sense that you merely save a percentage of all income. Period. It's hardest in the sense that it can be a very hard discipline for most people to maintain. There are so many distractions that can take your focus away from what you truly desire for your future.

Take the first step today (if you haven't done already) and focus on your future. Become strictly disciplined in this step and you will have a future of wealth far beyond your imagination. Simple, yet hard.

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

Tuesday, June 19, 2012

How to Get Rich - Be a Generalist

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 someone who thinks they know everything about everything. This is simply not possible and everyone knows that.

It is much better to be open minded and not be afraid to learn new things. Learn from those who have more knowledge in a particular area than you. Never be afraid to ask a lot of questions, for that is how we learn.

Not Too Much Detail

To learn about a particular area, it is best to get a general understand rather than getting too bogged down in all the details and technicalities of a subject. This will allow you to focus your knowledge growth on many areas and not just one. When you need more detailed analysis in an area, you can either consult with an expert or hire an expert outright to do this work for you. This will be much more efficient use of your valuable time.

This blog site is actually designed to do just that. In other words, it is designed to give you just enough information to hopefully understand a topic without getting you too bogged down in the details of it. At least, that is my goal.

By being a generalist in many areas and an expert in none, will enable you to be open to new opportunities and not be tied down to old ways that simply no longer work. Be open to the future.

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

Friday, June 15, 2012

How to Get Rich - Keep it Simple

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 think this person would share it with the world ? Of course not ! They would simply use this formula to amass the largest fortune possible. They would become the richest human on earth in no time at all.

Why Simple is Better

By using a simple set of investment rules and developing a solid investment plan and sticking to it, you should be able to do just as well, if not better, than most of the above schemes. The reason is that you will totally understand what you are doing and why you are doing it. There is no need for complex formulas, because the truth is, getting rich and staying that way is really quite simple.It just takes discipline.

A sample of simple rules are as follows : always keep a minimum of ten percent of your take home pay for yourself and use it for adding to your wealth ; always invest in opportunities that put money in your pocket each and every month ; always invest in good quality investments that have a positive future outlook for growth of both capital and income ; always stay in control of your own investment decisions.

These are just a few samples of the many rules for building wealth that are simple to follow. Many more rules can be found throughout my previous blog postings. Explore now and see how many you can find !

Keep it Simple

Yes, keep your plan for building wealth simple and you will find it much more fun and rewarding than you had ever imagined. Never lose control of your future to someone who is trying to sell you their product or service.If they were truly that successful, they wouldn't need your money now would they.

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

Tuesday, June 12, 2012

How to Get Rich - Stay in the Shadows

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 just to maintain their image and some day may even have to declare personal bankruptcy.

Stay in the Shadows  

A better alternative for someone who truly wants to become wealthy is to stay in the shadows. Basically, this means to live within your means and save at least ten percent of your take home pay for wealth building. Avoid situations where you feel tempted to buy something just because someone else did and you need to keep up or feel left behind.

You must learn to become modest and not shout your success. By shouting your success (or bragging as it were) others may expect you to show off more of your wealth. They may expect you to pay for more things etc. This situation could severely damage your future wealth creation efforts.

Many of the truly wealthy do not look wealthy. They live in a modest home. They drive average looking vehicles. They have no need to show off their wealth as they don't feel the need to impress anyone. They feel very comfortable financially, therefore, there is no need to portray an image of success. They don't necessarily care too much about what others think.

To become truly wealthy, learn to stay in the shadows and let others show off their desire to become wealthy. You can have the peace of mind knowing that you are doing well and soon you won't really care too much about what others think. Your wealth will be real where their's may not be. Enjoy !

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

Friday, June 8, 2012

How to Stay Rich - Learn to Teach

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 advantage of built in mentors. They are generally very successful at teaching their new generations the valuable lessons of wealth preservation and creation. They are also successful at instilling a great sense of pride of past generations' achievements. The future generations don't want to be the ones to drop the ball so to speak.

What You Can Do Now

Chances are you did not come from a wealthy family. Therefore, you are like the rest of us and must learn these lessons on your own. The fact that you are even reading this means that you are already well on your way to learning these lessons. Congrats !

Teaching your next generation the lessons you have learned is just as important as learning them yourself. Without this continuation of education, your hard built wealth could wither and collapse in future generations.

Just as you never stop learning life's valuable lessons, you must never stop teaching your future generation these lessons as well. If you already have children, start educating them at an early age. Do not put this off until the future as none of us know what the future will bring.

Check out the web site on my links page  as it has many valuable lessons and techniques that you may be able to use to help your next generation. Well worth a look.

Continue searching for new information that you can pass on to your future generations. This is truly the most valuable gift you will ever be able to give them and yourself. Wealth everlasting !

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

Tuesday, June 5, 2012

How to Get Rich - Convert Savings to Income ( Part Three )

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 forget about them. It is true that they will virtually run on their own and pay out income to you month after month. However, they must still be constantly monitored to ensure the income remains steady and there are no income cuts planned in the future. Read their financial reports and make it a point to truly understand what you are reading.

It is also wise to constantly check their market position through sites such as bigcharts (see links page) to ensure the value of your investments remain in line with your expectations. In life, things are constantly changing and you must keep up to date with the issues that may effect the value of your investments.

Keep Your Mind Open 

Even when you are fully invested, it is wise to keep searching for other opportunities to invest in. For instance, you may find that a new investment you are looking into has more income or has a better future outlook than one of your current choices. If this is the case don't be afraid to sell your current investment and purchase the new one.

There is no such thing as an investment that is good forever. As times change and your current financial position changes, so should your portfolio. You must keep up to date with current trends and choose the right investments that will help you capitalize on those trends.

To achieve true wealth, you must stay on top of your game so to speak. Don't get so comfortable with what you are doing to the point where you no longer look for new options. Many investors who do this will be left behind when the next change happens. These changes can happen any time and usually when least expected.

Be prepared for change. It is inevitable.

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

Friday, June 1, 2012

How to Get Rich - Beware the IPO

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 founder has another project in mind and wishes to cash out so to speak and put their future efforts towards the new idea.

For whatever reason, the founder is basically selling their organization to the public through this Initial Public Offering.

Dangers of  the IPO

The biggest danger with buying an IPO is that you would be buying a security that has no proven track record in the public marketplace. There is absolutely no history as to how the public will perceive this investment. Therefore, no one knows which direction this security will travel once shares start trading publicly.

The IPO generally has a lot of publicity and even some hype before it's official launch date. The founder's goal is to receive as much as he/she can from it's sale. Often emotion will play a big part in the investor's decision to purchase the IPO. This can be a terrible mistake, especially for the average investor.

The IPO and You  

My advise would be to never even consider buying an IPO. Let the buying frenzy subside and wait until you see some history develop with how the public will see the new security. Let the numbers come out publicly as to the earnings and profitability of the security.

The new security may be of future interest to you. But this should only be if it fits in with your overall investment plan and the numbers make sense. Above all, never let emotions get in the way of your investment decision making.

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

Tuesday, May 29, 2012

How to Get Rich - Learn the 50 - 12 Rule

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 frequency of the investment. An earlier posting entitled ( How to Get Rich -  Convert Saving to Income Part Two ) will show you more about how to go about achieving this goal.

This $50.00 per payment frequency investment will become a building block component for assembling whatever desired level of income you wish to have. Now let me explain the 12 Part.

The 12 Part

The 12 part of The 50 - 12 Rule is basically investing in a way to generate an income to your portfolio every month of the year, hence the number 12. In this way, once your portfolio is built to a sufficient level, you will be able to meet all of your committed monthly expenses without working. The first step towards considering retiring from the workforce.

Combine the Parts

Now your first step is to combine the parts in order to provide your portfolio with a monthly income of $50.00 . You can do this by purchasing one investment that has a payment frequency of once per month or you can purchase 3 individual investments that have a payment frequency of once per quarter.

You will now have set up your first 50 - 12 component of your portfolio. To reach your desired income level, simply divide your monthly income needs by 50 and that will be the number of 50 - 12 components you will need to build.

Tailor to Your Needs

This building block approach to income investing can be tailored to each individual's income needs. It will automatically provide good portfolio diversification as each component will be limited to just a portion of your monthly income. For your favorite investments you can even double up to provide $100.00 per month income as long as you realize this will reduce your diversification and potentially increase your level of risk.

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

Friday, May 25, 2012

How to Get Rich - Beware of Friends

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 will be free to spend her money from wherever he managed to hide it.

All this woman could say to the media was, "but he was my friend,. I trusted him". Wow, what a sad story of friendship gone terribly wrong.

True Friendship

A true friend would never steal from you. A true friend would never even think to hurt you. A true friend would help you in any way possible without any expectation of reward.

True friendships normally build over time and a trust must develop through mutually shared experiences that reveal one's character. People you just meet are not true friends. This takes time and the building of a trusting relationship.

Define Your Friends

You must determine who you could trust with your life savings. Everyone else are not true friends, at least not yet. A true friendship must develop over time and positive experiences. Be careful of who you call a friend.. Do not use the word "friend" too loosely, as many do.

True friendships are a blessing and should be cherished. However, they are fewer and farther between than many would like to admit. Be careful.

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

Tuesday, May 22, 2012

Real Estate Wealth - Control the Key

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 control of how the property is used. You can choose to use it as your Principle Residence. You can choose to use it as a Vacation Property. Or you can choose to use it as an Income Producing Property. The choice is yours.

However you choose to use the property, you will be in control of how it is managed. As long as you meet all of your obligations, you are free to use it as you have decided.

You can receive many benefits from controlling real estate. It can provide you with a comfortable lifestyle. It can provide you with a sense of pride. It can reduce your living expenses by not having to pay rent. It can even provide you with a positive cash flow of income if managed properly.

To Trap a Gain

Another way to benefit from controlling real estate is to coin the term trap a gain. This means simply to sell it to someone at a higher price than what you paid someone else for it originally. This gain could be totally tax free or partially tax free, depending on your local government rules.

Many investors solely invest to trap a gain, while others buy strictly for the positive cash flow it creates. The choice of how they purchase the real estate is totally theirs. In other words, they control how they would like to manage the property to make their desired profit.


For whatever reason or purpose you have for purchasing real estate, please remember, no one truly owns real estate. We merely buy it to control what we want to gain from the property. When it is no longer useful for us, we sell it to someone else along with it's obligations.And so on, and so on, and so on. The only thing constant are the realty taxes.

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

Friday, May 18, 2012

How to Get Rich - Don't Fall in Love

Have you ever bought an investment with the intention of never selling it no matter what. ?

Do you think it is good for you to fall in love with an investment ?

The resounding correct answer to the above questions should be no !

Investing is Business

Yes, you have to look at investing as a business. You are doing it to make a profit and that is the bottom line.
No other investor out there cares if you make or lose money. They are in it for themselves and that is it.

You must look at each investment in terms of what it can do for you right now. This means that you must continually monitor the status of each of your investments. As prices and market conditions change, so too must your strategies with each investment.

This can generally mean taking profits from a good investment when the time is right and not looking back. It can also mean cutting short a loss on an investment that hasn't done as well as you had hoped.

In both cases above, take your cash and look for the next best opportunity as of right now. Don't look back and second guess your previous decisions. It doesn't matter any more.Right now is the time to focus on.

Investment Lifetime

Even the best of investments can come to a point where they can no longer provide you with the amount of income or potential growth to make them the most profitable choice for your portfolio. In this case, it is time to sell your position and move on to the next more profitable opportunity.

All good investments eventually come to a point where they have increased in value so much, they no longer become as profitable to hold onto. The mistake many investors make is to hold on too long, often some time after the investment peaks in value and starts to decline.

The length of time you hold an investment will be different for each investment. It will depend on your profitability analysis that you must conduct regularly. If another opportunity looks better than what you currently hold, then the time has come to say goodbye.

Rejoice in Your Success

You must be happy when you decide to take your profits and run. You must not worry about leaving some of the profits on the table so to speak. You will never be able to sell at the absolute peak of the market. Be satisfied with what you have made and move on. It will never do you any good to second guess your decisions.

Never fall in love with an investment to the point that it interferes with your business decisions. It will never be profitable, this I guarantee.

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

Tuesday, May 15, 2012

How to Create Wealth - Don't Forget to Dream

Dreams are what define us as individuals.

The actions that we take to work towards achieving those dreams are what make us.

Define Yourself

Most of us can say that we had many dreams and visions of out futures when we were young. However, as life goes on and we get caught up in out everyday lives, our dreams can often get cast aside.

This is very unfortunate and even tragic in some cases. Many times people are even discouraged by those who claim to love them. In reality, these discouraging individuals are only trying to bring them down to their level. This is a very selfish act on their part and very damaging as well.

What we need to do is never let go completely of our dreams no matter how outrageous they may seem. Have you ever heard the term "get real" or "yeah, right" when explaining your dreams to someone. These people are truly not on your side.Try to align yourself with people that support your dreams.

Our dreams are truly what define us as individuals and they make us unique and special. We are all special as long as we keep our dreams alive. Do not cast aside or let your dreams die out completely. Without our dreams, life can become very discouraging and seem hopeless. That is truly a tragedy.

Get to Work 

To really start living your dream, you must get to work on developing a plan to achieve your dream. A dream without action is simply wishful thinking and will go nowhere towards improving your life.

The complexity of this plan will depend solely on your dream itself. Some dreams will be much easier to achieve than others. For complex ones, divide the project into tasks and work towards solving each task one by one.

There will likely be setbacks along the way, but don't let that discourage you. No great feat is worth achieving without there being a few roadblocks in the way. Breaking through these roadblocks will make you a stronger person.

The secret to success in anything you do, is to never give up on your dreams.

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

Friday, May 11, 2012

How to Get Rich - Understand Your Risk

Everything in life involves some degree of risk. Every day you wake up it may be your last. Who knows, accidents happen when least expected.

The world of investing is no exception to this rule. Life is risky no matter what you do. Even by not investing you are taking a risk, yet most people don't even realize that.

The Risk of Doing Nothing

Let's say you are very good at saving but never invest the savings. Instead, because you don't trust banks, you stuff the savings in a mattress and sleep on it every night. This method of saving used to be quite common in the past. I am sure there are even still some that do this today.

Now think of the risks of doing this. For starters, you have to leave your savings unattended to earn more money. This leaves it open to theft if someone finds out about it, or what happens if your house burns down.
If either of these happened, you would lose everything. Not smart.

Another not so obvious risk is the loss of purchasing power. A dollar stuffed in the mattress back in say 1940 was worth far more than your dollar you stuffed in there yesterday. Your total stash decreases in value each and every day if you don't put it to work  The reason for this is called inflation, or the slowly decreasing loss of purchasing power on every dollar.

The Risk of Investing

All forms of investing has risk. Whether it be from loss of purchasing power as shown above ( not making enough to match inflation) or the potential for losing from the ups and downs of the stock market roller coaster or somewhere in between. Risk is everywhere.

You can even loose all of your investment if you blindly trust someone and that someone turns out to be a thief. There have been a few lately, no names mentioned. Berney Who ?

Understand Your Risk

The first lesson for every new investor should be the understanding of risk. You must realize that there is risk in everything you do, or don't do.

To know your risk you must understand as much as you can about an investment before investing. Know how to get out of something before you get in. If there is no way to exit, don't enter.

Remember, you will be investing your hard earned money and savings. You must become educated about all the risks associated with the choices you have.

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

Tuesday, May 8, 2012

How To Get Rich - Optimize Your Yield

Do you understand what yield on an investment really means ?

Do you understand how to optimize your investment's yield ?

 Let me show you the strategy !

What Is Yield

The word yield basically means the amount of benefit you will see right now if you were to purchase an investment at it's current price. I'll use the example given in a previous post to illustrate the benefit.

Suppose a stock is selling for $10.00 per share and the yield is listed at 10% . This would give you an annual income of $1.00 per year for every share you purchase at the current price. In this example, you would have to purchase 600 shares to give you a monthly income of approximately $50.00

Therefore, yield means the amount of income you will currently receive if you purchase the stock right at this instant in time. In this case if you invest $6,000.00 right now, you will receive $50.00 per month of income.

The word yield on charts etc. is actually the "current yield" in economic terms. For simplicity sake it is shortened to just yield and this is understood throughout the industry.

Yield Variations

The yield on an investment, just as the price, is constantly changing. For every trade in the investment the price changes along with the yield. This is because the income from an investment is a fixed dollar amount as determined by the investment's board of directors etc.

Now let's suppose the price of our above example drops to $5.00 per share. The yield would now become 20% . This means that you would now only have to invest $3,000.00 to receive your same $50.00 per month of income. An extreme example, but it does show the big difference proper timing of your purchases can make.

Optimizing Yield

All investments go through cycles based on supply and demand as well as a multitude of other reasons. For the income investor, a downturn in the market is a wonderful opportunity to increase yields substantially.

To optimize your yield simply follow this simple discipline. Do all of your buying of an investment at or near the bottom of the cycle. The rest of the time simply accumulate your income and wait for the bottom of another cycle. In this way you will be paying the least amount for the income stream that you desire.

As in many strategies, it is simple. However, it does take discipline and a lot of patience to wait for the proper moments to make your investments. But it will be well worth the wait I assure you.

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

Friday, May 4, 2012

How to Get Rich - Convert Savings to Income (Part Two)

You should now have opened your on line brokerage account and set up your Money Market Fund to deposit your savings into.

It may take some time to accumulate enough (at least $5,000.00) to make your first long term income producing investment. However, now is the  time to learn as much as you can about the investment choices that you will have.

It is not my intention to provide you with specific recommendations. There are plenty of services for that if you should need help in that area. I will show you instead a plan of action on how to organize and manage your chosen investments.

Where To Start

Investments you choose should provide you with a monthly (preferably) or quarterly income. This income should be stable and there should be a long track record of regular payments. The companies should earn this income and not rely on capital payments to meet their monthly or quarterly amounts.

Look for your choices in your on line brokerage stock screen section. Do a screen on dividend paying stocks and focus first on the highest yielding ones. Research each interesting choice and focus on ones that are recommended by analysts that report in your on line brokerage.

How Much to Buy 

I would recommend buying enough shares of a company in order to provide you with a monthly income of $50.00 (or approximately this amount). When buying your shares, always buy in multiples of 100 shares. Never buy what they call odd lots as they are much more difficult to sell when the time comes.

By purchasing in this manner, you will be limiting your exposure to any one company. You will not be putting yourself in a position where you become too dependent on any one holding to provide your monthly income.

Calculating Your Income

Yield is the measurement of your income. The yield, as a percentage, will be listed on all stock charts. This amount changes constantly as share prices change.

To calculate the annual income do the following calculation. Take the share price shown on the chart and calculate the percentage shown as the yield  (Example : A share price is $10.00 with a yield of 10% -the annual income would be $1.00 per share)

To calculate the monthly income simply divide by 12. To calculate the number of shares needed to provide $50.00 per month income simply divide $50.00 by the monthly amount previously calculated. The above example would be as follows : $1.00 per year divided by 12  = .0834 per month. Now $50.00 divided by .0834 is approximately 600 shares. Remember, always buy multiples of 100 shares.

You should now be able to start building your long term income producing portfolio. Simply repeat the above each time you accumulate enough to invest and soon you will be multiplying your monthly income streams. Watch for more in Part Three in a future posting.

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