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.
Tuesday, June 19, 2012
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.
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.
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 www.kidsmoney.org 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.
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 www.kidsmoney.org 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.
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.
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.
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.
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