Do you think the wealthy go through life without ever facing challenges ?
Do you think they never have to solve problems to get what they want ?
Of course not, everyone has challenges ! It's what we do or don't do to overcome those challenges that make the difference !
Your Biggest Challenge
The first step to overcoming your challenges is to identify your biggest challenge. What is the one big monster in your life or the biggest elephant on your back so to speak ?
For some it may be digging themselves out of debt. For others it may be earning more income to meet current expenses.
Whatever it is, you must learn what you need to do and then just find a way to do it. Remember, if you do nothing to overcome your challenges, you will go nowhere financially.
Determination
The one big thing that separates successful individuals from the average individual is determination. You will notice that a successful person has lots of energy and will not let anything stand in 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 18, 2012
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.
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.
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 !
Blinders
When it comes to the path of life, most people have blinders on. The older they become the more set in their ways they become. Unwilling to look at new ideas or ways to improve on what they have already done.
I find this aspect of individuals the most frustrating. For whatever reason, most people just don't want to change even though the change would do them good. There is absolutely nothing you or I can do to help these people. Change must start from within !
Internalize
To have a chance at someday becoming successful you must internalize your desires and dreams and learn to embrace new ideas. If you are not already filthy rich then obviously what you have done in the past is simply not working. Does it not make sense then to change your course and direction ?
Are you 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.
Do you really think that they are so much better than you ?
You have the ability to join them, read on and find out how !
Blinders
When it comes to the path of life, most people have blinders on. The older they become the more set in their ways they become. Unwilling to look at new ideas or ways to improve on what they have already done.
I find this aspect of individuals the most frustrating. For whatever reason, most people just don't want to change even though the change would do them good. There is absolutely nothing you or I can do to help these people. Change must start from within !
Internalize
To have a chance at someday becoming successful you must internalize your desires and dreams and learn to embrace new ideas. If you are not already filthy rich then obviously what you have done in the past is simply not working. Does it not make sense then to change your course and direction ?
Are you 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.
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.
R is for REPETITION
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.
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