The internet offers two things a possibility of wealth and a possibility of victimization. In our quest to obtain the freedom we want to enjoy. The freedom to live our lives as old blues eyes use to say "My Way" is a road filled with obstacles and detours. It is an undeniable fact that more people lose money in striving to reach instant wealth. This does not pertain to only the internet it pertains to all the ways people build their business. The more common way at this point is through the internet. This of course is due to the low cost in joining an MLM or a Network Marketing group. As a Life Coach let me give you this piece of advice "caveat emptor" which means "let the buyer beware." The 40 thieves may very well be a children's story, but there are real thieves out there, who claim to have your best interest in mind, while they take all they can from you. In the process of wealth building the fundamentals of business is never set aside because of what someone says what you can do, when the truth is that it may take 2-3 years or more to establish yourself anywhere. This would be inclusive of brick and motor business models to Multi-Level business models. You are probably aware that many of these Network Marketing Models are scams. They will claim the easy fortunes that you can make if you follow their system.
The major problem about following any of these systems is that it takes time. Anyone who has truly succeeded in these models did not make their "fortunes" or supposed fortunes overnight. It took a lot of hard work and it took time. Should you really want to build wealth , the first key to success is keeping the main thing the main thing. Whatever your choice is for a business model you have to keep it the main focus of your thoughts, feelings and actions. The wealth building process includes not just a business, but it includes the managing and direction of your money. Some people believe that just because they have a business even if the income is good or great, that they don't necessarily need to focus too much attention on the management of it. Well that in truth is the fastest way to eventually undue everything that you worked so hard for.
They say "If you can't defend you won't win no matter how good your attack is" and it's the same in creating wealth. The first and utmost important thing for wealth building is that you have to have a big enough nest egg to grow your money no matter what strategies you use - real estate investing or stock market investment. The key is to maintain a will do mindset, use what you've got that may have more value to others, and find inspiring ways to have other people invest in your wealth building program.
The richest and especially the wealthiest people in the world have known about leveraging Other People's Money for years. Everyone from Jean Paul Getty, Aristotle Onassis and Donald Trump have excelled at this wealth building principle numero uno. Their use of OPM to buys assets is legendary. Onassis in particular is known for having secured contracts to transport ore and oil in ships and tankers he didn't yet own and then going to the banks securing the loans to buy the ships and tankers using the contracts. A brazen and gifted deal-maker if there ever was one! People go about building wealth or acquiring assets in different ways based on their background, past experiences and what they have been taught or know about money. For the most part people think of great riches and wealth as largely unattainable because of the model or mindset they have about money. What most people fail to understand is that you actually don't need money to make money. Sure it helps but what you really need is access to Other People's Money in order to make money.
Land in the right location tends to appreciate at a strong upward rate, with very low downside risk and tends to have far better risk reward for example than mutual funds. Its not just the upside potential it's the fact that it tends to lack downside risk. When you invest you want to compound your money and make your money do the work of making more money and this means not aiming for the biggest growth but the best growth you can with low downside risk.
Most people's typical first experience of using Other People's Money is when they take on a mortgage to buy their home. Typically, their initial down-payment combined with their contract of employment that demonstrates their ability to produce future income is enough for them to secure a mortgage loan against home. Unfortunately your home is not an asset, well it is, but it's the bank's asset as they are making income from the loan advanced, not you. If you can get a bank to advance you a mortgage loan so as to purchase an investment rental property (an asset) whereby you get to retain what remains of the rental income after you pay the mortgage, then you have used Other People's Money to buy and asset to produce income. In order to secure this loan you need to demonstrate to the bank that you are a safe bet. They will typically want to see that you have at least 20% of the purchase price as a down-payment and sufficient net income being generated by this asset and other sources to ride out any changes in interest rates, rental void periods etc.
The major problem about following any of these systems is that it takes time. Anyone who has truly succeeded in these models did not make their "fortunes" or supposed fortunes overnight. It took a lot of hard work and it took time. Should you really want to build wealth , the first key to success is keeping the main thing the main thing. Whatever your choice is for a business model you have to keep it the main focus of your thoughts, feelings and actions. The wealth building process includes not just a business, but it includes the managing and direction of your money. Some people believe that just because they have a business even if the income is good or great, that they don't necessarily need to focus too much attention on the management of it. Well that in truth is the fastest way to eventually undue everything that you worked so hard for.
They say "If you can't defend you won't win no matter how good your attack is" and it's the same in creating wealth. The first and utmost important thing for wealth building is that you have to have a big enough nest egg to grow your money no matter what strategies you use - real estate investing or stock market investment. The key is to maintain a will do mindset, use what you've got that may have more value to others, and find inspiring ways to have other people invest in your wealth building program.
The richest and especially the wealthiest people in the world have known about leveraging Other People's Money for years. Everyone from Jean Paul Getty, Aristotle Onassis and Donald Trump have excelled at this wealth building principle numero uno. Their use of OPM to buys assets is legendary. Onassis in particular is known for having secured contracts to transport ore and oil in ships and tankers he didn't yet own and then going to the banks securing the loans to buy the ships and tankers using the contracts. A brazen and gifted deal-maker if there ever was one! People go about building wealth or acquiring assets in different ways based on their background, past experiences and what they have been taught or know about money. For the most part people think of great riches and wealth as largely unattainable because of the model or mindset they have about money. What most people fail to understand is that you actually don't need money to make money. Sure it helps but what you really need is access to Other People's Money in order to make money.
Land in the right location tends to appreciate at a strong upward rate, with very low downside risk and tends to have far better risk reward for example than mutual funds. Its not just the upside potential it's the fact that it tends to lack downside risk. When you invest you want to compound your money and make your money do the work of making more money and this means not aiming for the biggest growth but the best growth you can with low downside risk.
Most people's typical first experience of using Other People's Money is when they take on a mortgage to buy their home. Typically, their initial down-payment combined with their contract of employment that demonstrates their ability to produce future income is enough for them to secure a mortgage loan against home. Unfortunately your home is not an asset, well it is, but it's the bank's asset as they are making income from the loan advanced, not you. If you can get a bank to advance you a mortgage loan so as to purchase an investment rental property (an asset) whereby you get to retain what remains of the rental income after you pay the mortgage, then you have used Other People's Money to buy and asset to produce income. In order to secure this loan you need to demonstrate to the bank that you are a safe bet. They will typically want to see that you have at least 20% of the purchase price as a down-payment and sufficient net income being generated by this asset and other sources to ride out any changes in interest rates, rental void periods etc.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: What IFRS Conversion Will Involve You have full permission to reprint this article provided this box is kept unchanged.
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