Tag Archives: money making

The 8 tips to Making a Fortune from Your Investments

invest why when where how
invest why when where how

It is the dream of many new investors to someday become financially independent from their portfolio.  If you want to make a fortune from your investments, it helps to take a step back and survey your opportunities, both in terms of probable future income and life expectancy, as well as the different methods that are available to you in your quest to compound your wealth.  Allow me to share some of my thoughts on the matter with you.

In the United States, the lifetime earnings of a person with a bachelor’s degree stand at roughly $2,100,000.  Overwhelmingly, college graduates marry other college graduates, bringing that figure to $4,200,000.  (From an economic standpoint, it’s not a stretch to say that wedding rings are the new social status indicator and marriage patterns are not immune to assortative mating, which has some interesting, if not concerning, implications for income inequality.)  As the CEO of your life, how you and your husband or wife allocate that money will have a tremendous influence on your household’s ultimate net worth, passive income, and even happiness levels.

 This is especially true given the significant financial benefits of marriage.

One of the biggest differentiators between those who end up living paycheck-to-paycheck and those who find themselves with a bank vault full of stock certificates pumping out torrents of dividends to enjoy is whether one has a tendency to buy depreciating assets or productive assets with his or her surplus funds.  Depreciating assets are those that, once acquired, begin losing value.  The quintessential example is an automobile.  While it might provide utility, a car is one of the worst outlays you can make from a financial perspective.  People who will never, in their entire life, have the foresight to say, “I’m going to buy a $50,000 block of Hershey and hold it for the next 50 years”, “I’m going to buy $25,000 worth of Coca-Cola and, someday, put it into a trust fund for my granddaughter” or even, “I’m going to add $500 a month to my Exxon Mobil DRIP” will, instead, think nothing of going to a car dealership, buying a new car at 0% interest for $700 a month payments, and stretching it out over 60 months for something that is destined to be utterly worthless.  I have witnessed it time and time again.  Due to the nature of compounding, that first 10 or 20 years in the workforce creates outsized results so the person who was wise enough to begin acquiring cash-generating assets starts to break out and separate himself or herself from the pack.  That ultimately turns into a gulf that is difficult, if not impossible to bridge.

In other words, if you are privileged enough to be highly educated, married to another highly educated person, living in the most affluent economy in the history of human civilization, whether or not you end up financially independent – with few exceptions, such as a non-foreseen health crisis – is almost assuredly going to come down to your own ability, or inability, to manage your income with prudence.  That simple truth, no matter how unpopular it may be to admit in polite company, is the reason minimum-wage janitors like Ronald Read end up being secret millionaires with $8,000,000+ and lawyers with prestigious resumes earning 1,000% more per year have a fraction of the wealth.  You either employ your money, putting it to work for you, or you work for your money, selling your time (hours of your life, quite literally) for what you need that week.  Nearly everyone starts out doing the latter but a fiscally wise man, like Read, ends up in a situation where his paycheck is much smaller than the dividends, interest, and rents he’s collecting.

What, then, is the recipe for getting rich?  Do a few things right and it largely takes care of itself.

  1. Economic data leaves absolutely zero question that if you 1.) graduate high school, 2.) go to college, 3.) get married, and 4.) have children in that order as reporters and academics are fond of reminding everyone, your odds of ever falling into poverty are slashed to the point of being practically meaningless.  It’s the cheat code in the financial game of life.  Take advantage of it.  Any deviation stacks the deck against you in a powerful way.  There is no getting around it.  There is no denying it.  The evidence is irrefutable and the data set gargantuan.
  2. Always live below your means even if you’re just saving a small amount of money.  The discipline it builds is a good life skill to have that will pay off elsewhere, too.
  3. Put that surplus to work in the most tax-efficient way you can.  For most people, this is going to be a twin combination of a Roth IRA and Roth 401(k).  Established correctly, you can probably avoid paying taxes on most of your investments for the rest of your life.  If you are fortunate, and/or disciplined enough, to reach the maximum contribution limits each year, begin building up assets outside of tax shelters that can take advantage of the stepped-up basis loophole when you die.  That will permit you to pass on those assets to your children and grandchildren without ever triggering the capital gains tax.  All of your deferred tax liabilities are forgiven.
  4. Avoid debt whenever possible, especially credit card debt and student loan debt.  When you rent money from other people, which is effectively what borrowing is, you invite them into your life.  They can make demands on your future output.  They can cause you tremendous hardship if you break your promise.  Attending your dream school isn’t worth spending the next 15 or 20 years of your life in what amounts to servitude, existing only for the pleasure of the shareholders of Sallie Mae, Navient, Citigroup, and Wells Fargo.
  5. Reinvest your dividends.  Reinvested dividends are like adding fuel to the fire when part of a diversified portfolio, accelerating your wealth accumulation.  Speaking of diversification …
  6. Diversify your income sources and your assets.  Everyone talks about asset diversification but income diversification is just as important in my book.  Life is much better, and much less stressful, when you have multiple streams of income coming in so you don’t rely on any particular one of them.
  7. Never invest in something you don’t understand and never invest money you can’t afford to lose.  I’ve gone so far as to call the latter the most important rule of investing.
  8. Let your money compound for as long as possible.  Crazy things happen when you pass the 25 year mark.  Case in point: Mere historically average rates of return will produce 1,000% gains over that time horizon.  Get it up to 50 years, and you’re looking at 10,000%.  Of course, there’s no guarantee the past will repeat the future and investing always holds the potential for severe, if not permanent, losses – just ask investors in Austria between 1900 and the present due in no small part to the annexation of the country by Nazi Germany during World War II – but it’s not hard to understand the reason compounding has been called the eighth wonder of the world.

That last one is particularly important.  There are two ways to take advantage of it:

  1. Start investing as early as you can in life.
  2. Live as long as you can.  That means putting your health first.  Follow your doctor’s advice, which almost always amounts to: Don’t smoke.  Don’t drink.  Don’t do drugs.  Don’t be obese.  Don’t operate heavy farm equipment while on prescription medication.  Always wear your seatbelt.  That pretty much covers all of your bases to the degree things can be controlled.  Even an extra five years can be magical once you’ve built a hefty portfolio.

As simple as it sounds, that’s the crux of the wealth building process.  Put the right things in motion, be, in the words of billionaire Charles Munger, “consistently not stupid“, and your money takes on a life of its own, expanding, growing to the sky, showering you and your children with prosperity.  In the short term – and anything under five years is short-term – the rest of it is noise.

http://beginnersinvest.about.com/od/wealthmanagement1/fl/The-8-Part-Recipe-to-Making-a-Fortune-from-Your-Investments.htm?utm_content=20160802&utm_medium=email&utm_source=exp_nl&utm_campaign=list_beginnersinvest&utm_term=list_beginnersinvest

 

6 Must-Do Practices To Reach Millionaire Status

This blog was written by Matt Reiner the CEO of Wela, a digital financial advisory service.

You don’t have to be the next Mark Zuckerberg or CEO of Apple to reach millionaire status. In fact, we’re seeing the “millionaire next door” mindset pushing more people into this status at retirement, but it’s still taking a lifetime to reach this goal. What if we told you that you could do it sooner? Maybe even as soon as your 30’s? Combine some ambition and perseverance with smart financial decisions and you could have what it takes to be a millionaire…before retirement.

The road to prosperity is paved with good business strategies and responsible financial choices. Check out these simple but powerful practices you can apply to your day-to-day life that may help increase your wealth enough to reach that seven-figure mark.

1. Develop Multiple Streams Of Income– Find an opportunity where you have the ability to increase your income. Making more money is easier said than done, but if you can find several ways to rake in some extra cash it can help you grow your net worth more quickly.

In a five-year study of self-made millionaires, author Thomas Corley found that most of them had three or more streams of income.

After doing some research and consulting with a financial advisor, you may want to start investing in the stock market. The stock market has many ups and downs so think long-term when you ride out the waves.

Or if you’re the entrepreneurial type, start your own business on the side and work on projects you’re excited about. If you develop a product you love which you’d use yourself, create an online store or sell your products through other vendors.

2. Focus On Your Overarching Goals – When you start making some extra cash and increase your savings, you may be tempted to buy a new luxury car or designer clothes. Although these purchases would be a nice treat, it could spiral into blowing all of your savings for the future. Don’t let all your hard work vanish after splurging on a few big purchases. People who are determined and focused tend to attract (and keep) more money; so make sure you are respected for your work ethic, not the extravagant items you buy.

3. Put Your Savings To Work By Investing – Consider increasing your savings by investing. Put your money in an investment that you can’t easily access. You can start by contributing to your 401(k)and taking full advantage of your employer’s match program if they offer one. Once you’re taking advantage of any free money your company is offering, consider adding money to a traditional IRA or Roth IRA.  Jason opinion “For this part I don’t recommend investing in 401(k) or IRA, don’t rich doesn’t do this and why should you. You need you saving working hard for you right now and right away. If you ever get fired from that job you will need to transfer those funds to something else and then you will get very little returns anyway. Plus a lot of people withdraw money and they usually buy a boat, car, or a down payment on a house.”

4. Keep Learning – The safest investment to make is in your future. Build a plan, set goals, read books, blogs and listen to podcasts. Expand your mind with good information that will help you reach your goals sooner and more securely. Be willing to learn and talk with others about multiple subjects. By furthering your education and professional development, you are setting yourself apart from others. You don’t need to be the smartest person in the room, just try to be the most prepared.   Jason – “never stop learning, so much info out there”

Don’t let mistakes paralyze you from reaching your goals. Invest time and energy to plan for the future and learn how you can improve. There are multiple paths you can take to achieve your goals and being versatile will lead you to the quickest solutions to your problems.

5. Shoot for $10 Million, Not $1 Million- People often believe that becoming rich is out of their control, but the rich understand that by committing to their financial goals and continually working towards them, their financial future is in their hands. When you change your mindset about money, you may begin to see a clearer path to that millionaire title.

If you believe you’re thinking big, think bigger. To get and stay rich you should make it a priority. Those who strive to be successful and have a positive mindset are more likely to reach their financial goals. You don’t want to be thinking back on what you could have done.

6. Associate Yourself With People Who Inspire You And Have Similar Goals

If you are around people who discourage you from going after your big dreams, you have to learn to ignore them. Prove them wrong, but be humble about it. Your results will speak louder than words.

The truth is that millionaires think differently than most about money, so surround yourself with hard workers who have a similar vision. We become like the people we are always around, so steer clear of the doubters and nonbelievers.

Matt Reiner is CEO of Wela. As a founding partner and Portfolio Manager, Matt also coordinates the Investment Committee and translates the decisions into trades and allocation adjustments within the Wela Models. Matt also serves as a Partner for Capital Investment Advisors (CIA). Matt uses his experience and education in Financial Services to craft the digital advisor experience to bring users the same level of personalization they would receive from a traditional financial advisor. 

 

For more info check out similar post and other information. Great info.

http://financialplan.about.com/od/savingmoney/fl/6-Must-Do-Practices-To-Reach-Millionaire-Status-At-A-Younger-Age.htm?utm_content=7199855&utm_medium=email&utm_source=cn_nl&utm_campaign=moneysl&utm_term=

 

Tips on improving your Credit Score

Tips on improving your Credit Score

Key to having a great credit score is to make your payments on time, esp credit cards.

Your biggest ally (healer) is TIME! Time heals all with credit scores but you need to make payments on time and above the minimum balance.

Ways to improve your credit score:

  • Get a credit card and have it link to a bill like a cell phone and/or gas bill, and only use that credit card to pay that one bill. Set up automatic payments so that the monthly bill will automatically charge your credit card on file. Don’t use the card for anything else lock the credit card away in a lock box or desk. Every month as you making payments your score is going up. – Don’t abuse those credit card keep those balances low
  • Debit cards from your bank that you use with a pin number do not count towards your credit score because this money is coming directly out of checking out and no line of credit is giving to you. So debit cards do not help to improve your credit score.
  • Try to get another credit card and repeat the process this time use a different bill like car insurance and gas, and think of this credit card as vehicle only use. Gas / Car Insurance / Repairs – you will need a minimum of three credit cards.
  • If you have a family member with a great credit score and is welling to add you to their account and the family member can hold on to the credit card to be on the safe side to make sure the card is not being miss used.
  • When you are about to buy a house do not make a large purchase like a car, because now the bank has to redo your file, and now you bought a car that has no credit history, no payments, and is a full balance, another thing to remember once the car loan is paid off the account will close and the payment history will close with it, and over time the credit score will drop. So that is why it’s a good idea to have three credit cards on file.
  • How do companies fix my credit score? They sent out 100’s of letter asking to prove that discrepancy on the account and if they can’t prove it by responding to all 100 letters than they have to remove the discrepancy on your account and they process repeats, sometimes this take months to work.
  • Mortgage Companies take the middle of the three credit scores from the credit bureaus = (Equifax, Experian, TnasUnion) // Car Loan Companies usually only go with just two bureaus and use the better of the two.
  • Don’t forget to check your credit score by getting your free credit report

Tips for Investing in Dividend Stocks

Tips for Investing in Dividend Stocks

How I got into investing in Dividend stocks since I was interested in all things real estate I heard about REITs and started looking into it and learned about monthly distribution and the rate of return on investments, plus it’s an easy way to get into commercial property investing.

  • Always diverse your investments  use a mix portfolio of investments monthly and quarterly  payments. High risk and low risk stocks – REITs / MLP / Blue Chip Stocks, build a mix portfolio of 20 or 30 stocks or whatever you are comfortable with, but more than 10 stocks.
  • Don’t keep checking the price of the stocks everyday or every month, it’s like buying a house once you buy a house you don’t keep checking the price of your house every month to see how much it is worth. If you have to check the price just check the stock price once a year or 6 months if you need to. Just remember you bought this stock for the dividend not the price of the stock.
  • Warren Buffet said during an interview, he likes it when the price drops on a stock because he can buy more of it at a discount. When the price goes down means cheaper price = more stocks.
  • Investing = is investing for the long term you have to be in it for the long haul for it to work. Also I hear people say I will put only 10% of my income in investments and max out my 401k at work. The hell with that invest like you about to lose your job in a couple of weeks, invest as much as you can and try to change your lifestyle to live off the dividends and other investments.
  • Some helpful websites to use for investing in dividend stocks go to Dividend.com  they have a lot of useful tools, options to see different categories, tips, calculators, and so much more.

Check out my eBook to find out some of the things I use to make investing easy for me and some of the ways to create income.

Advice on fixing up rental properties.

This section is for rental properties but trust me you can use this advice on your on home, plus this will help you out if something happens at your house you will have the experience to deal with the situation.

When getting new carpet  installed  take the time to throw  away the carpet yourself. Even if you have  to  cut it up and place it in a few garbage  cans, when I had my carpet installed  labor was a great deal price of carpet was great and the materials, but since  I already had carpet in my house  they charged my a disposal  fee which cost around $900 so this was less than 40% of the total bill, next time I will dispose of the carpet  myself.

Some people hate negotiations or negotiate  on repair jobs, or asking for quotes one thing to do, is have repairmen come out at the same time as the other repair person so they will know  that they better give a great price the first time, and if you like the person but not the price you can ask if you can do  it  for this  price you will beat the other  bid and you have the job.

Ways to create Income

Ways to create Income

  • Dividend Stocks – Stocks that pay dividends, good companies that are know for giving out dividends, also take a look at REIT’s and MLP’s – make a diverse portfolio of stocks mix it up quarterly and monthly. High Risk and Low risk = (don’t put all your eggs in one basket)
  • Real Estate – rental properties, single family houses, multi-units, even being a realtor on the side can create income.
  • Land – if you own the rights to the land you can rent out the land to someone weather for hunting, farming, or if someone wanted to build on your land.
  • Ads on Blogs, websites, = check out adsense from Google easy way to get started.
  • YouTube – does the camera gravitate to you? Then try out YouTube some people get a nice check in the mail.
  • Side Business – pretty handy at making things, have a creative mind – try making a product to sell to people and online.
  • Online – drop-shipping, private label products, Affiliates programs
  • Ebooks – have a something to say, a story to tell?

Always keep investing! Take Action

Looking for more advice, tips, and information than check out the rest of my blog.

How to become a Millionaire one step at a time

How to become a Millionaire one step at a time

 

  • Follow the money. In today’s economic environment you cannot save your way to millionaire status. The first step is to focus on increasing your income in increments and repeating that. My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money and it will force you to control revenue and see opportunities.
  • Don’t show off – show up! I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income. I was still driving a Toyota Camry when I had become a millionaire. Be Known for your work ethic, not the trinkets that you buy.
  • Save to invest, don’t save to save. I like this saying and I tell people all the time. The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.
  • Avoid debt that doesn’t pay you. Make it a rule that you never use debt that won’t make you money. I borrowed money for a car only because I knew it could increase my income. Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.
  • Treat money like a jealous lover. Millions wish for financial freedom, but only those that make it a priority have millions. To get rich and stay rich you will have to make it a priority. Money is like a jealous lover. Ignore it and it will ignore you, or worse, it will leave you for someone who makes it a priority.
  • Money doesn’t sleep. Money doesn’t know about clocks, schedules or holidays, and you shouldn’t either. Money loves people that have a great work ethic. When I was 26 years old, I was in retail and the store I worked at closed at 7 pm. Most times you could find me there at 11 pm making an extra sale. Never try to be the smartest or luckiest person – just make sure you outwork everyone.
  • Poor makes no sense. I have been poor, and it sucks. I have had just enough and that sucks almost as bad. Eliminate any and all ideas that being poor is somehow OK. Bill Gates has said, “if you’re born poor, it’s not your mistake. But if you die poor, it is your mistake.”
  • Get a millionaire mentor. Most of us were brought up middle class or poor and then hold ourselves to the limits and ideas of the group. I have been studying millionaires to duplicate what they did. Get your own personal millionaire mentor and study them. Most rich people are extremely generous with their knowledge and their resources.
  • Get your money to do the heavy lifting. Investing is the Holy Grail in becoming a millionaire and you should make more money off your investments than your work. If you don’t have surplus money you won’t make investments. The second company I started required a $50,000 investment. That company has paid me back that $50K every month for the last 10 years. My third investment was in real estate, where I started with $350,000 a large part of my net worth at the time. I still own that property today and it continues to provide me with income. Investing is the only reason to do the other steps, and your money must work for you and do your heavy lifting.
  • Shoot for $10 million, not $1 million. The single biggest financial mistake I’ve made was not thinking big enough. I encourage you to go for more than a million. There is no shortage of money on this planet, only a shortage of people thinking big enough.

Apply these 10 steps and they will make you rich. Steer clear of people that suggest your financial dreams are born of greed. Avoid get-rich-quick schemes, be ethical, never give up, and once you make it, be willing to help others get there too.

by Grant Cardone Contributor

International Sales Expert

Thank you Grant your article has made a difference and I read it almost once a year.