If you save money, the money will save you
The problem with most people's finances today is that they are
not getting enough income to satisfy there needs and wants.
People are naturally going to buy things they want even if it
means spending more than they have (credit cards), and they know
in the back of their minds that they cant afford it, but they
will get it anyway. I think people will develop their own
budgeting scheme when their income meets their wants then they
will be budgeting masters, all by their selves. But till then
there will ALWAYS be people in debt no matter how much you
preach!
I think a solution to some people money problem is to teach them
how to make extra money first, and then teach them how to budget
and save it. Americans really don't want that much; it is the
hobbies that get people in trouble, bills, spending too much on
golf clubs, car parts, computers, things around the house
etc.
I don't know about you but this is how I feel about life. Right
now, I am working a 9 to 5 job making $3200 monthly. I don't
want to be stuck knowing that I will be 'working' for the rest
of my life, taking orders from bosses, putting up with BS and
other peoples attitude, having to get up in the morning when I
want to sleep in and that fear of getting fired. Currently, I am
in this situation but will not be soon. There are people right
now making well over $20,000/monthly working for their selves
and they are everyday people that you see walking their dog, in
supermarkets or even that person arguing with the McDonalds
cashier. If these people ever do go back to work for someone
else they can do it "stress free" even if the job is stressful
(think about that).
Before, you can work for yourself you have to decide one thing:
If you really want that responsibility. If you said yes, you
have gotten over the biggest hurdle and you will not be limited
to the income your employer is giving you. I know what I am
about to say will be over simplistic but I will save the details
for you to research on your own. Here is a breakdown
1st: determine if you really want self-employment
2nd: decide what area of business you want or good at.
3rd: If step 2 requires money, their are program out
there that can help you get started in internet business,
selling or something else before you start in what you want to
do. For example, "I want to own a photography shop but it costs
$10,000 to get started. Well, if I sell product A for a year I
can do it". You never know, whatever you get into before your
dream business may make you $50,000 a month and you may forget
all about that photography shop. I can help you here too.
4th: Research, research and do more research. Find out
what you competition is. Find out how much money they are
making. Find out where they are advertising. Find out what it
takes to get started. Find out where your customer are etc, etc,
etc..research
5th: EXECUTE!! I mean once you have confidence go do
it.
They say that 90% of home businesses fail for the first time.
And you may fail, but all you have to do is try and try again,
please don't give up. Believe me, you will get it right and when
you do, you will be very successful. The percentage of people
who fail for the second and third time is much lower than the
first timers.
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They say the best investment is buying a house (real estate).
You are borrowing money to invest! Every year that property
should go up 7%. So lets look at some figures. You buy a house
for $250,000
year 0: $250,000
year 1: $267,500--------profit $17,500
year 2: $286,225--------profit $18,725
year 3: $306,260--------profit $20,035
year 4: $327,699--------profit $21,438
year 5: $350,637--------profit $22,938
------------------------Total profit: $100,637
Your profit after 5 years is $100,637 + tax benefits - repairs -
local taxes - interest - your time
As we all know maintaining a house is hard work. You borrow
money to invest in real estate, well why not borrow money to
invest in other things such as mutual funds, hedge funds or even
invest in yourself and learn how to trade money or stocks. Here
is an alternate scenario. Lets say you borrowed $250,000 to
invest in 5 hedge funds or managed forex account receiving 35%
annually. You are charged by the bank 10% apy. So, you will
receive 25% in profit a year.
year 0: $250,000
year 1: $312,500-------year1 profit: $62,500
year 2: $390,625-------year2 profit: $78,125
year 3: $488,281-------year3 profit: $97,656
year 4: $610,351-------year4 profit: $122,070
year 5: $762,939-------year5 profit: $152,587
-----------------------Your profit after 5 years is $512,939 -
management fee (around 5-10% per session)
Of course, you can make more money depending on how much you
borrow and the return you get. Now you see how those rich people
make a living without lifting a hand. They are the ones who live
the longest and have the best life!
There are risks involved with this. What if one of the trusty
(SEC approved) funds you invested in suddenly runs with your
money. You may be able to recover from this if you invested
among many funds or programs or you are receiving high interest
on other investment portfolios.
A house or real estate is your safest investment---No one can
steal your house. Well sorry to talk yall half to death, I can
go on and on about this stuff.
About the author:
About Author:
Luke is an independent entrepreneur helping others make money.
Website:
http://home.coastalnow.net/~lukejea/
Email: lukejea@coastalnow.net
