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April 26, 2008

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Thanks for your great suggestions , Global crisis , we should have all this for emergency ,

Tracy Ho
wisdomgettingloaded

I tend to disagree with #6

Using leverage on you investments is one of the best ways to boost investment returns. If you look at many of the seriously wealthy, many used leverage in one form or another to build their wealth. Of course, it is also true than many of those who end up in Chancery got there as a result of using debt. The willingness to take risks is one of the hallmarks of the wealthy.

In a more general, simplistic sort of way (which I think was intended), #6 makes a very good point.

However, it is true that it takes money (i.e. risk) to make money. We can't forget that.

What about education?

Investing in education should be #2 in the list. Whether its paying for your own education, your childreds education or investing your time in self education by reading blogs, books and financial magazines. Reading constantly has helped me discover some of the my best methods to get ahead.

What about networking?

Networking with other smart financial people is what we are doing on this blog. As finances grow, so does your financial advisers. A good network consists of a few experts that you trust, like an accountant, a real-estate agent, an estate planning agent and an insurance agent.

5, 6 and 7 are the same thing.
3 and 10 are also the same thing.

Generally a good list with good advice but I take issue with #4. Yes, living below your means is some of the best advice you can give someone but stating it in this manner is condescending to the poor. Just try explaining to someone making $30,000 a year (and spending $39,000) that they're doing it all wrong because someone making $150,000 is able to "get by" on $105,000.

Some good common sense, but...
he'd be more credible if his web site could spell Lou Holtz's name correctly.

Generally a good list with good advice but I take issue with #4. Yes, living below your means is some of the best advice you can give someone but stating it in this manner is condescending to the poor. Just try explaining to someone making $30,000 a year (and spending $39,000) that they're doing it all wrong because someone making $150,000 is able to "get by" on $105,000.

Good point Mr.AtoZ. I agree that for people watching every dollar the advice to save is tough. However, that's where #3 comes in. No matter where people are on the income ladder in America, they are tempted to define wealth through things. Once you hop off the "keeping up with the Joneses" train, you can find many ways to live frugally and save money.

MonkeyMonk: It really doesn't matter what the guy making $150,000 gets by on. If you're making $30K a year and spend $39K a year, you're doing it wrong.

Good list. I actually have pro forma goals, and I assess progress against each. I have long, medium and short term goals, and measure my 'net cash' position each month.

Any advice for # 8 and # 9? It's hard to buy wholesale when you live alone! And as far as building a business...I have not yet gotten to the "earn $ while you sleep" phase.

What are each of you doing to create your golden goose?

Let me cite "The 10 Habits of the Prosperous" in my own way.

1.They have the prosperous mindset. This means that the law of Attraction is working here. What you focus is what expands in your life. Prosperous people are simply delving themselves on things that they would rather have than what they don't like. The universe simply responds to our wishes in life, if we focus our minds in the lack then the universe will just respond to us in the liking and that is lack and poverty. Visualize your life with prosperity and it will resonate with your life with success and abundance.

2. Prosperous people are save kaholic. This is a lingo term that I used for persons who makes savings as their habit. If you cannot save money then the seeds of greatness is not in you.

3. They have a wide base and array of financial knowledge and wisdom. If you want to become prosperous regarding money then you must be knowledgeable regarding its nature and its cycles. If you want to be financially successful then you must sow the habit of having daily lessons regarding money and financial management. You must have a thorough skills in reconciling your bank balances and the on hand cash that you maintain. You must be literate on how to read the financial statements and must be able to create multiple streams of income.

4. They firmly believe that money that comes along are simply the acknowledge receipt for the values that they have rendered to the populace.
Yes, the prosperous simply believe that money is simply an acknowledge receipt for the values that they have created that most people would crave. They increase their values and simply forward it to the community and money will simply just flow.

5. They practice diversification in their business and investments to avoid divestments. Prosperous people value the concept of diversification, they realize that having simply one line of business or investment would be risky and dangerous. Diversification of investments would rather prevent you to becoming vulnerable to pesky business loss and insolvency.

6. They make integrity as the backbone of their personal life and business. Prosperous people are honest in their dealings with their customers, clients and for the rest of the populace. The prosperous outrightly realize that unless people can trust them since they have integrity in their business dealings then it will be debilitating to continue with their business sojourn. Most prosperous people would attest that their prosperity is simply because of one quality and that is integrity - integrity in their dealings, commitments and meeting their financial obligations.

7. They have a well founded business systems. The prosperous have a well built systems that they have created whether these maybe a well built educational, business, value-based, mission and vision based and goals systems. Even our planet earth is part of a solar system so is with our prosperity. This is the reason why statistics would reveal that majority of prosperous people are college degree holders.

8. They know how to take calculated risk. Business is risk and unless you can see opportunities rather than being a prophet of doom then you will never succeed in business. Money is just a game, those who know how to take calculated risk and know how to play the rules in the game of money, wins.

9. They realize that in this world of business there are only three things - earn as much as we can, save as much as we can and give as much as we can. Yes, the prosperous are the great idol of John D. Rockefeller Sr., by adhering to his wisdom in life that is to earn, save and give as much as we can. Prosperous people are generous, they know that what comes around goes around. What you sow, you shall reap.

10. The prosperous believes that to be poor is a sin. Prosperous people simply believes in prosperity. They enter into business simply to win and not to lose. Even Christ would tell us that our faith will save us. Let us have faith in prosperity and be prosperous.

"If you ask those remaining ten people how many have that financial statement laid out in a pro forma goals format for one, three, five, ten and twenty year periods, nine of the people will sit down. The one still standing will be a millionaire.”

Because of Mint.com, I have a very clear view of my assets and liabilities. I like to look at my net worth graph. However, I don't believe in pro form goals for 1, 3, 5, 10, and 20 year periods. Billionaire Mark Cuban is the opposite of anal retentive [anal laxative] and he still made it. He worked at something that consumed him and that he enjoyed.

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