Monday, 6 February 2023

Building Financial Security Steps 4 to 6

Step 4: Learn to Set Goals


Most self-made, successful business people and investors have achieved their success by planning to do so.


They have set goals for themselves and achieved them. They invest time in reading and learning about wealth creation and are happy to learn from other people’s mistakes and experiences, as well as their own. They set goals, and realise that they will be far better able to achieve them if they familiarise themselves with the ways in which other people acted and the things that others have done to succeed. Wealthy people create wealth by carefully utilising the income that they have available to them to their best advantage. They know that working harder and longer hours is not the way to achieve financial freedom, instead they have to utilise what they have, and make it grow.


Having a goal enables you to focus your energies on devising ways to achieve it. When someone makes a decision and begins focusing on achieving a specific goal (and even better in a specific period of time), the powerful subconscious mind goes to work and begins playing with ideas and developing strategies of various ways to bring about the successful completion of the goal.


When you set yourself a goal both your conscious and subconscious start working on it and begin to develop an action plan. You will begin asking yourself questions about what needs to be done to enable you to reach your goal. Many find themselves coming up with amazing ideas and solutions to problems or obstacles that have been in the way of achieving their goal. The subconscious is an extremely powerful tool. The more often you remind yourself of your goal, the more your mind will work on ways for you to achieve it. Some people find answers come to them when they are asleep and dreaming.


Have you ever noticed that there is no correlation between being wealthy and having a high IQ or a university degree? If there were, every doctor and university graduate would be wealthy, and as statistics show, most of them end up in the same situation as 95% of the population.


Setting Goals helps you to focus your energy on developing workable strategies. Setting long term goals helps you look at the big picture. Once you can see the big picture, you can develop small sub goals. Sub goals are small simple goals that can be followed one step at a time. When you progressively achieve your sub goals, you will get closer and closer to your major goals. Goals are simply plans to succeed. It is said that if you ‘Fail to plan, then you plan to fail’. Goals help you keep motivated. Progressively achieving your goals can lead to a wonderful feeling of fulfilment.


Step 5: Learn how to Budget.


Budgeting does not have to be tedious. All you need to do is to work out:

What your incomings are. What your regular outgoings are and then make sure that all of your other expenditure is less than the amount remaining. This will allow you to start saving and investing. Budgeting puts you in control of your finances.


Step 6: Learn about investing - in particular about property investing.


Learn to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read investment books. Read auto-biographies of successful people. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.


Find out about Negative, Neutral and Positive gearing - and why gearing is an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.


Once you have educated yourself and understand why investing in property is such a powerful tool, you will be able to embark on the road to financial security.


In Australia, and many other countries less than 5% of the population reach retirement able to support themselves, without government or family assistance. If you want to be one of them, then now is the best time to start striving toward financial security.

Building Financial Security Steps 1 to 3

We would all like to think of ourselves enjoying the good things in life, not having to stress about finances, and not having to be concerned about growing old, poor.


But if we are currently living from pay cheque to pay cheque, never seeming to get ahead or having any savings, how do we change things? Where do we start in our quest for financial security?


The best thing we can do, is sit down, take a deep breath and contemplate the differences between the haves and the have nots, the achievers and the laymen. What is it that the successful and wealthy do, that is different to us? What are the principles that they utilise to create wealth?


Once we find out the principles that others who have created financial security have used, it seems that then the only step left would be for us to try and duplicate the process.


Following is a list of some of the wealth building principles that I have discovered in my study of and conversations with successful people.


These concepts have been utilised extensively by those who have already created enormous wealth.


Step 1: Use the power of Compounding Interest/Growth.


John D. Rockerfeller once described compounding interest as the ‘Eighth Wonder of the World’.


Compounding is also referred to as Rate & Time because the longer the time, and the higher the growth rate, the greater the effects of compounding become.


Compounding works by letting any interest earned get added to the initial investment, and then the next lot of interest is calculated on the sum of the two, and so on. Interest is earned on interest. This gives the effect of exponentially increasing the value of an investment.


One of easiest ways to calculate how compounding interest works with different rates of return is to become familiar with the Rule of 72. This rule states that ‘The number of years that it will take for your money to double is 72 divided by the interest (growth) rate’.


Therefore if you have $1,000.00 invested at 10% interest, then the number of years that it will take for your money to double to $2000.00 is 7.2.


72 divided by 10 = 7.2


Step 2: Use the tried and true method of investing in residential real estate.


Statistics show that over 98% of the world’s millionaires have made their money through property.


It should really not come as a surprise, because everyone needs a place to live, and generally at least one third of the population are renting. Property is a necessity, so it can never go out of fashion.


As the population increases, so does the need for housing. The laws of supply and demand therefore will ensure that prices keep rising.


Banks consider property to be one of the most secure investments and because of this they will loan you a high percentage of the value. This leads to the next principle.


Step 3: Using Other People’s Money or Gearing is a tool used extensively by the wealthy.


Why is using Other People’s Money so important? The reason is that it is possible to use ‘leverage’, also known as ‘gearing’ to obtain a greater result, than you could have obtained using only your own contributions. The word leverage comes from ‘lever’. As you know a small amount of force applied on one end of a lever, can produce force far greater than what was initially exerted. A lever has the effect of multiplying the power exerted.


In the case of investing, it is referred to as leveraging when you use just a small portion of your own money, say 10% deposit on a $300,000.00 house, and borrow (leverage) the rest, in this case 90%. The capital growth that you benefit from is then calculated on the full $300,000.00, not just the $30,000.00 that you personally contributed, having the effect of multiplying your capital gain.


Gearing allows you to purchase a far more expensive property than you could if you were using only your own money. Controlling assets of a higher value means that compounding growth has more to work on, and therefore your net worth will increase much quicker. Gearing allows you to build an investment portfolio more quickly than would otherwise be possible.

Automatic Wealth - The Internet Makes It Possible

Attaining wealth and prosperity is a dream most everyone has, but few ever achieve it. Why? The average person is stuck in a rut with a job they dislike and overwhelming debt. This cycle is hard to break, but many people are breaking out and achieving their financial goals through the Internet. The Internet has made it possible for millions of people to create automatic wealth, and there's still room for you! Here's how you can discover your Internet wealth dreams.


Create Wealth, Not Just an Income


With the Internet, the opportunity is there for you to create automatic wealth, not merely an income. You can build one automatic business or several until they reach prosperity - right from your own home computer. The Internet creates the ultimate wealth package because it's so vast in the number of people that use it, but yet, so personal in that one little niche market can earn you a fortune.


You can choose from thousands of business ideas and pick one small market to target for your business. A small market online, however, can mean big dollars for you because it might contain thousands or millions of prospects around the world. The Internet connects you to the outside world and doesn't limit you to those who drive or walk past your local store location.


Automated Business


Another reason it's more feasible to achieve automatic wealth online is because you can have an automated business. Automated means it can run on auto-pilot once you design your website and set things in motion. You can receive automated payments through online forms. You can automate an e-zine (email newsletter) to your customers. You can automate electronic products by email such as e-books or training materials. There are a number of ways to create automated wealth with an Internet business.


No Longer Wait for Paychecks


Another advantage of an Internet business is you can receive daily payments through your website. Many online business owners accept credit cards or use a third party payment processor such as PayPal or StormPay to accept payments from their customers. Through these venues, money goes directly into your account. This gives you a steady cash flow for your business so you can have capital for your income, business promotion, and inventory.


Tips to Build Automatic Wealth


  • Use your free time at home to surf the Internet and find business opportunities that interest you.
  • Join with one or a few others who are already successful so you can learn the basics of online business. Even if you need to make a small investment, it could be well worth the training you'll receive.
  • Decide on a business that's right for you and schedule daily times to work on your business - promoting, analyzing, and building.
  • Keep building until you've acquired enough automatic wealth to quit your day job!


Whatever Internet business you choose, remember that it takes patience and consistency to build an online business, just as it would any other type of business. The main differences are that you can work from your home as you're building the business, you can set your own work schedule, and you can earn a lot just by reaching a small niche market for almost any popular product. Start today with your new online business, and you too can soon realize your dreams!

Attract The Wealth You Deserve

Is it good when you have huge deposits in the bank, plenty of valuable possessions, abundance of anything of value? Nearly all, measured wealth is in monetary factors. We say that people are wealthy when we see their grand mansions, different cars, lots of jewellery, or expensive clothes.


We assess wealth by material possessions. Wealth can be inherited or created. Only few are born wealthy, most need to work hard and sacrifice a lot of things in order live like a prince. Wealth begets wealth if you know how to manage it.


So the more money you have the more you will become wealthy. Richness offers a lot of opportunities and opens closed doors. It elevates your social standing and gives you power. Ordinarily, it gives superficial happiness. Possessing lots of money is heaven here on earth. You can buy anything you desire, go anywhere you want and own anything your heart desires.


But too much wealth has also its disadvantages. You can read in the papers, wealthy people committing suicide; children of affluent families involved in drug addiction, or people committing murder because of money. Most of these people become distrustful of others and abusive of their fellowmen. Perhaps the saying that money is the root of all evil is true.


Problems with wealth are common that it afflicts people everyday. It affects our everyday relationships, strain on our family lives and even destroys friendships. Wealth problems are mental afflictions that still have to be dealt and overcome; otherwise, it will ruin your life.


Hypnotherapy is one way of dealing with problems related to wealth. Hypnosis has been proven to be effective for similar problems. It is a solution to real life physical, emotional and even financial crisis. Focus on going over that mental block concerning your wealth problem. Have a mindset of ruining the dilemma you have and just believe you can actually do it. Once you get over it, it will let you sleep better and eventually improve your life.


What does wealth mean to you? Wealth is not just about the amount of money we have, rather, it is more of a state of mind. It may be funny how people spend their lifetime to have abundant wealth and yet so little time enjoying it. Wealth may also be classified in other forms, like having abundant love from family or friends supplemented with good relationships.


A Couple of Steps To Help You Be Rich

Your advanced wealth planning strategies should not consist of you going it alone. The key to advancing your wealth is building a quality team of advisor's. Your advisor's will make you or break you. Advancing your wealth cannot and should not be done by yourself. Many people make the mistake of doing everything themselves. Doing everything yourself is fine but if you want to increase your wealth you will need advisor's. Money is an emotional subject for many people. Everyone goes through money problems (even the very wealthy), how you and your team handle your money problems is what counts.


First you should hire a bookkeeper. In order to increase your wealth you must know what direction your money is flowing. Is your spending helping or hurting you? Yes there are many people who balance their own check books but you need an outside opinion. The amount of money you are making is irrelevant when it comes to hiring a bookkeeper. Whether you are making 250,000 dollars a year or 25,000 dollars a year you should still have your own bookkeeper. Once you have your bookkeeper you can now go over your monthly financials. You will see what good and bad spending habits you have. Then you can work to out the bad spending habits and increase the good spending habits.


The next adviser you should have is your financial adviser. Hiring a good financial adviser is one of the best moves you can make. He can help you plan for retirement and other things. Having a 401 K with your company is not enough, be sure to get a financial adviser.


Getting a tax strategist should be your next step. It really does not matter if you are self-employed, own your own business, or have a 9-5 job. Getting a tax strategist is essential because your eyes will be opened when you see the way money is taxed for different people. You will also see how people are penalized with heavier taxes by bringing in a certain type of income.


When choosing your advisor's choose carefully. Do not just hire an adviser who makes money off of commissions. You want an adviser who practices what they preach and is successful at it. Your advisor's will be able to help you setup many advanced wealth planning strategies.