Tuesday, November 18, 2014

How To Get Rich - Understand Networking

Have you ever heard of the term  "networking" ? Do you understand how networking can grow your wealth ? The wealthy know and so should you !

Networking Defined

Most of us have heard of the term network marketing when it applies to companies like Amway, Fuller Brush, etc. These are companies that have chosen to market their products through a network of individuals instead of the more traditional wholesale, retail methods.

Companies that sell through a network of individuals is much more efficient at distributing the wealth among many instead of a select few. The more people an individual can get into their network, the more income they can earn. This creates more individual opportunities.

But the word networking today can mean much more than the selling of products. Networking today can actually save you money on your everyday living expenses. It is actually an old term called "bartering" which was used extensively before money was widely used.

Networking today means building a group of individuals that can supply items and services used in everyday living. Examples are hair dressers, grocers, tax accountants, farmers, fishermen, etc. Basically anyone who provides a product or service used in everyday life.

How Networking Can Work

Anyone can start their own network. Do not confuse this with the companies as mentioned above. Money will have absolutely no place in your network. Money will not be needed.

Simply make a list of everyone you know and ask them what product or service they can provide you. Next, identify what product or service you can provide them. Now, ask these individuals if they would be willing to "exchange" their product or service for your product or service.

An example would be a hair dresser could cut a farmer's hair in exchange for a couple of chickens or whatever. Repeat this with many things and you now have a network. Simple.

How Networking Can Save You Money 

You may be wondering why anyone would bother going to all this trouble when you can simply buy what you need. A good point considering most people are too lazy to set up their own networks. One simple word answers the question. Tax. How do you tax something if there is no monetary value.

With a network of friends exchanging good deeds for each other, there is no motive for profit. Our income tax systems are based on profit. No profit, no tax. Many religious communities have been living this way for years. With global communication advancing as it is today, there is no reason why we all can't do the same thing.

Imagine how much better your life would be if you did not have to pay any tax. How much less time you would have to work. How much more time you would have to enjoy life.

What To Do

Get together with your friends and start your own network. Get friends of your friends involved. Get friends of friends of friends involved. The possibilities are endless. Pretty soon money could have a lot less meaning in your everyday life. Money is really a lot less important than the time we have left to spend on this planet.

Money can create greed and corruption. Greed and corruption creates inequality of life. Everyone deserves the right to be an equal.

As always, I welcome your comments and suggestions for future topics.

Tuesday, November 11, 2014

3 Big Real Estate Mistakes To Avoid

Do you love the idea of making big money in Real Estate ? Do you think anyone can build their fortune with Real Estate ? If you answered yes, then you had better read on !

Mistake #1

I have been to many Real Estate presentations from various promoters who claim anyone can make a fortune with Real Estate. They play on your emotions and get you excited about entering the big leagues and making the big dollars. Is it realistic to expect everyone that attends one of these presentations will become a real estate tycoon ? Not likely !

When it comes to any type of investing, keep your emotions at home. Investing in anything based on emotion can be a disaster, especially when it comes to Real Estate. If you find yourself really excited about an investment opportunity, put it down and walk away. Distance yourself from the excitement and take as much time as you need to calm down and get your head together.

Investing is a business, not a marriage. Do not get excited, fall in love, or think that there will never be another opportunity. There will be many opportunities if you leave your emotions where they belong.

Mistake #2

You are investing your money and/or time for one reason and one reason only. To make money. Period !

It may sound boring and it probably will be, but you must run the numbers. Who ever said investing was exciting anyway. Many investments look promising on the surface but fail miserably once you run the numbers.

Revenue Real Estate investing is more complex than many other forms of investing and careful attention to detail must be taken. Know your costs and obligations before you ever make an offer.

You absolutely must have a positive cash flow to have any kind of chance of making money in Real Estate. Positive cash flow is after all expenses including mortgage payments. Don't be fooled into counting on Capital Appreciation to make your money. That may never happen and in many cases you may loose capital over time depending on market conditions.

Mistake #3

Would you ever think about flying a plane without first learning how ? I would hope you said no to that question. Then why would you buy any Revenue Real Estate without first learning how ? In both cases you would most likely crash and burn, one physically and one financially.

It amazes me at how many people get into the Revenue Real Estate market before taking the necessary steps to learn how. They get caught up in the excitement of other people they know or have heard of that have done well in Real Estate. They mistakenly start thinking that if so and so could do it, so could I. Bad assumption.

Before taking the huge plunge into Revenue Real Estate take a course from a reliable source. Be the one that initiates this action and look for ones with a good reputation. Do not get suckered into the travelling road shows selling get rich quick Real Estate schemes. All you have to do is ask why are they wasting their time travelling around when they could be making gobs of money for themselves buying Real Estate. The answer. They are making their money from you.

What To Do 

There you go. Three very common mistakes that you should now not make when it comes to investing in Revenue Real Estate. The successful Real Estate investors are the ones that are in the know. They do not buy on emotional impulses. They never buy anything that does not put positive cash flow into their pocket from day one. They never get into a deal where they do not know exactly what they are doing.

Do what the pros do. Keep your emotions out of your investment decisions. Run your numbers well before ever considering making an offer. If it doesn't give you a positive cash flow, continue your search. Know what you are getting into well before you ever consider taking the plunge.

As always, I welcome your comments and suggestions for future topics.

Tuesday, November 4, 2014

How To Get Rich - Being Lazy Is Not Always Bad

Do you think lazy people deserve to become wealthy ? Do you think you must work hard all day every day to deserve wealth ? Truth is many of the wealthy make money by being lazy !

Pants On Fire Attitude

If you are like me, you were brought up with the attitude that you must work hard every day to get ahead in life. You must work hard at school, get good marks, get a good job, etc. etc.

This attitude persists today in what I call the Pants On Fire Attitude. You get a good paying job, or maybe two or three perhaps. You make lots of money, but you spend a lot of your time doing it. In fact many spend so much time making money, they leave little or no time for the important things in life. They leave no time for living.

Why Lazy Is Considered Bad

Our society has developed an attitude that being lazy is very bad for your health and your wealth. They mistakenly associate being lazy with having no ambition. Lazy people are always depressed or lack the drive to make something of themselves. They end up on welfare and suck money from society. Sound familiar ?

Yes, society has conditioned us to believe that we must be busy, busy to get ahead in life. Anyone who is considered lazy must be a deadbeat and will go nowhere in life. In reality, this is far from the real truth.

How Being Lazy Can Be Good 

There is a good lazy and a bad lazy. Bad lazy, as described above, is when you expect others to pull you through life without trying to help yourself. Many on welfare fit this description.

Good lazy is when you develop a way to provide your everyday needs without spending much of your time doing it. Most importantly though, you do not rely on others to do this for you.

You may ask, how is this possible ? Well, simply put, find ways to create passive income. Passive income is basically income you make without spending much of your time developing it.

There are many examples of passive income including investing in companies that pay you a dividend simply for owning the shares. Purchasing revenue properties is another, as long as you have them managed by someone else. A vending business is another where very little time is needed for collecting this income.

What To Do

First of all, get over the stigma that being lazy is always bad. Next, get out there and look for ways to make money without trading your valuable time for it.

I have been considered by many as being semi retired since somewhere in my thirties. I chose to work less, pay less tax and look for ways to develop income without always being there. I am sure there are many that thought I was lazy with no ambition. Lazy yes, but not without ambition. That is the huge difference between the wealthy and the poor.

True wealth is defined as spending your time doing what you want to do, not spending your time doing what others want you to do.

As always, I welcome your comments and suggestions for future topics.

Tuesday, October 21, 2014

How To Get Rich - Look, Listen and Learn

Do you think the wealthy look around to see what the world is doing around them ? Do you think they listen to what others have to say ?  Lastly, do you think they learn something from doing both of the above ? You better believe they do!


You have probably noticed that I haven't written on this blog for the past several months. This was done on purpose because I wanted to have a look at what was going on around the world as well as much closer to home.

What I noticed was that people kept reading my blog even though I wasn't posting any new material. Why do you think this was ? Well, my guess would be, because there is a lot of good information contained within these pages that needs to be shared.

I looked around the world for opportunities and I looked within these pages for insight. Change is constant and we must occasionally stop and just have a look.


Listening to what others have to say is also very important. By listening to others you start realizing their problems and difficulties. Almost everyone you run into has something that really bothers them and to identify the common elements of these problems is crucial. If enough people have the same problem, guess what ? You have discovered a new opportunity !

I have always been a good listener. Many who try to become wealthy forget this crucial step. You must really understand what is going on around you to gain the proper perspective on the bigger picture.


The last part of this trilogy is the learning stage. What is this stage ? Simply, it is taking all of your observations from what you have seen and what you have heard and finding a positive outcome to these experiences.

In other words, find a way to profit from all of your new found information. Realize the new opportunities either by creating a new product or a new service. Solve everyone's problem and you have discovered a new form of income to add to your wealth.

What To Do 

Now, let me sum up what I have just said. Look around you at the world as a whole and your smaller universe closer to your home. Mentally observe what you see. Next, listen to as many people as you can to develop common elements of what is wrong within their lives. Identify what problems people are having and come up with a solution. Come up with a new product or a new service to solve their problems and you could add to your current wealth.

This is how the world works. Stop what you are doing in your small world. Open your eyes and look around. Open your ears to listen to what others have to say. Open your mind and learn from what you have seen and heard. Find a solution. Add to your wealth.

This is what the wealthy do to become wealthier and so can you.

I am still welcoming your new comments and suggestions for future topics. Keep them coming.

Tuesday, March 18, 2014

How To Get Rich - Believe

Do you truly believe that some day you will become wealthy ?

Do you think anything can get done unless you truly believe  ?

Truth is, your beliefs may some day become reality if you truly believe !

Why Believe

Believing in yourself is the very first step to accomplishing whatever you want in life. If you do not believe that you will succeed at something, it is very likely you will never succeed. An old saying by Napolian Hill, the author of one of my favorite older books " Think and Grow Rich "  was " What The Mind Can Conceive and Believe it Can Achieve "

If you believe you will live an average life and jut survive, guess what ? That is exactly the way you will live and you will likely achieve exactly what you truly believe.

First Step

I don't care how many financial planning and strategy books you read. I don't care how much financial knowledge you can learn. If you don't first truly believe that you will succeed, the rest of what you do is just a waste of time.

Your truly first step to becoming all that you want to be is to believe in yourself. I wasted a lot of my time in my early career as a financial planner on people that didn't believe in themselves. It was a very frustrating experience for me as I wanted to help everyone. But I soon learned that someone must want to be helped before they can be helped. That is truly the very first step to accomplishing anything.

Your Next Step

If you can convince yourself to truly believe, then I have a request for you. Send me a direct email on my contact page and tell me what you truly believe you will accomplish. I will keep track of your responses to see if I should bother trying to help you and others through further tips on this blog. I must get enough responses to this request in order that I can believe that you truly want my help.

If this is to become my final blog posting, then I encourage those of you that truly believe to read all of my previous postings to gain as much free knowledge as you possibly can. You can read all that you wish to by clicking on the sidebar.

I hope that my work will be able to continue, but that task is now in your hands. I truly want to help the world become a better place by spreading financial knowledge. But I can only make a difference if those that truly believe are reading what I have to say.

I would like to believe that the world cares enough for me to continue. I await your reply.

Until next time, I hope. ----->> Richard Lyons

Tuesday, March 11, 2014

How To Get Rich - Avoid The Time Share Trap

Have you ever heard of a time share real estate investment ?

Do you think the wealthy invest in time shares ?

Truth is the wealthy stay as far away as possible from time share promoters !

What Is A Time Share

Time share real estate investments are products that are sold to unwary individuals that want to vacation in style. Quite often these scams are promoted to vacationers and involve some pretty high pressure sales tactics.I have seen them try to sell these for as high as $25,000.00 .Beware !

Basically, when you purchase a time share, you buy a 1 week per year use of a condo unit. Along with this you are required to pay an annual maintenance fee which can be very high. Once you buy one of these, it will be virtually impossible to sell to someone else. This is because there are so many time share resales on the market and some for as little as $99.00 . There is absolutely no real value to most time share units.

Listen But Never Sign

It can actually be a very interesting experience listening to what these promoters have to say. They will always get you hooked with a free offer of some kind. But never ever ever give them your credit card number or sign anything to get your freeby. If you do, be prepared for a huge negative surprise when you get home.

Also, if you agree to listen to their presentation, be prepared to waste at least half a day of your vacation. This is usually how long they persist until they give up and give you your freeby. Remember, nothing is really free. You will be spending your valuable vacation time to get this freeby.

What To Do

First, you must be able to recognize one of these scams when you see one. Time share promoters often phone people at their homes promising a free trip of some sort. Either a free stay at a resort or a free cruise. Also, while vacationing, you are bound to see many time share promoters enticing tourists with free stuff. I have seen free spa treatments, free theme park passes and have even seen straight cash. If something is being promoted as free, you can be sure a time hare promoter is near by. Beware.

It is possible to get your free stuff without buying anything. But be prepared to spend a half day listening to their sales pitch and enduring many attempts at them getting into your wallet. Some even get downright angry when you insist you just want your free stuff.

If you just want to enjoy a relaxing holiday, simply say no to the free stuff. Remember, in this world we live in, nothing is really free.

Vacation real estate investing should be left to the experts. Every country has different rules, therefore it is generally an area to stay away from. Rent your place while on vacation and invest your money back home in investments that you really understand.

As always, I welcome your comments and suggestions for future topics.

Tuesday, March 4, 2014

How To Get Rich - Do Not Eat Your Children

Do you think your family would survive if you ate a child ?

Do you think anyone would ever consider the thought ?

An outrageous thought but many do eat their children in a way !

Defining Your Child

Ok, now that I hopefully got your attention, let me explain what I define as a child.

From a financial point of view a child is a component of your life's savings. Whew, I bet you're all relieved now except for the few cannibals in the crowd. Actually, I don't think even cannibals would eat their children. Who would be left to carry on their cannibalism ?

All kidding aside, eating your financial children could kill your future family. At least it would kill your ability to have a comfortable retirement and possibly leave something to your biological children to help them in their future lives.

The Really Wealthy

Many of the really wealthy are really wealthy because they do not eat their children. Instead, they protect their children from all of life's dangers and encourage them to grow.

Of course I am talking about the wealth of the wealthy individuals.  They protect their wealth from all of life's financial dangers and look for ways to safely grow their wealth even more. Then there is the most important part of what they don't do. They don't spend more than what they actually earn from their invested wealth. In fact, as time goes on, the percentage of their earnings that they spend becomes less and less.

The biological children of the really wealthy are often termed "Trust Fund Kids" . Their kids are given a sum of money, but are only allowed to spend the income that the money makes. If they did not do this, their children would be eating the grand children so to speak.

What To Do

Ok, for all of you who are not really wealthy, what are you to do ? Well, remember that many of today's wealthy families were not wealthy several generations back. In fact many were poor or at best average way back. All it took was one ancestor to not eat their children and start the wealth chain growing. They continued by training their next generations to do the same things.

You can do this too starting right now. Simply save a portion of your earnings (say 10% or more) and never ever spend it. Invest it to earn more income and some day you may not have to work in order to survive. Your financial children could be providing all the income you will ever need.

Next, train your actual children and their children to do the same. Who knows, someday your future generations may take their place among the really wealthy. What a thought. Well, it's certainly a better thought than eating your children .

As always, I welcome your comments and suggestions for future topics.

Tuesday, February 18, 2014

How To Get Rich - Do Not Become Discouraged

Do you get down when you see others have more than you ?

Do you feel that it's just too hard to get what you want out of life ?

Reality is, we all have these thoughts of discouragement !

Position Yourself

The first thing you must do when feeling down is to position yourself. What this means is to realize where in life you are today. Realize your accomplishments and give yourself a big pat on the back so to speak. There is no one else that will do this for you as everyone tends to concentrate on their own lives.

You must then visualize the future that you want for yourself. Your future is unique and no two individuals will have the same dreams of their future. You must focus on this desired future and work towards achieving it at all costs. This is your life and it is the only one you will ever have.

Filter Out Extremes

In this day and age everyone seems to be absorbed with the rich and famous or the extremely wealthy. The media seems to thrive on reporting on the accomplishments of the extremely successful individuals. Many become so absorbed that they wish they were someone else that had much more.

It is a shame that our society has become one so absorbed with wealth and popularity. These rich and famous individuals are no better a person than you are.

We must learn to filter out the extremes in our society. Learn not to focus on what the media is saying but instead focus on yourself as an individual. Work towards doing whatever you can do to become the person you want to be tomorrow.

What To Do

When you get down, remember who you are. Remember your past accomplishments and visualize the future you want for yourself. Learn to filter out all of the media garbage and realize that the media is merely a business trying to sell it's image in order to make money.

Sure, there are many individuals that have more than you do. In reality, there always will be. But just say, so what. Learn to be happy with what you have done and what you plan for your future. After all, your life is the one that is the most important to you, as it should be.

Wealth is merely a state of mind. If you are happy with where you are and where you are heading, then you are truly the wealthiest person in your world.

As always, I welcome your comments and suggestions for future topics.

Tuesday, February 11, 2014

How To Get Rich - Choose A Healthy Lifestyle

Do you ever wonder what makes successful people so successful ?

Do you ever wish that you had just a portion of what they have ?

Well, these are things that are totally in your control !

Worship Your Body As Your Temple

Your body is the physical shell in which you must live. Whatever it's shape or size, it is the only one you have or will ever have. Therefore, you must start with what you have right now and work towards the way you want it to be. It is what it is.

If you don't like what you see in the mirror, you can change that. More physical activity and eating better are amazingly powerful choices that will give you more energy and vitality. By making these two choices alone, you should notice you will have a much better outlook on life in general. If you feel good, you think good thoughts. Give it a try if you don't believe me.

Clear The Cobwebs Of Your Mind

One of the biggest challenges is to learn how to clear your mind of thoughts that give you no benefit. These include thoughts of mistakes of the past, thoughts of fears of the future, and thoughts of fearing something totally new.

It is amazing how much mind power is wasted from all of the above thoughts alone. Would it not make sense to channel all of this power into something that will help you reach your goals? Of course it would, but how?

There are techniques that can be learned such as meditation. Meditation clears your mind of all thoughts past and future and places you in the now. You are alive right now and that is all that really matters. It provides you with a calmness of body and spirit and can be a very relaxing experience.

You must learn to realize that the past is in the past and can never be changed. You must also realize that the future is largely out of your control. The present is where you must focus your mind in order to work towards the future you really want to have.

Make Healthy Choices

You future life depends on the choices you make today. By making the choices of more exercise, better eating habits and mind calming, you will notice a huge improvement to your energy level and your whole outlook on life in general.

Start worshiping your temple within and you will notice the ease at which your outside world will take shape. After all, if you do not respect yourself how do you expect others to respect you and aid you in the development of your dreams.

As always, I welcome your comments and suggestions for future topics.

Tuesday, February 4, 2014

How To Get Rich - Know Rental Real Estate Realities

Do you think all properties will make you money ?

Do you think choosing revenue real estate is easy ?

Truth is, most properties could end up loosing you money !

Revenue Real Estate Is A Business

Every revenue real estate option you are looking at is an individual business. Each property you consider buying must be profitable from day one or you shouldn't buy it.

This is where most novice real estate investors make their critical mistake. They do not properly analyze the rental market of the areas they are looking at buying. The rent you are realistically able to charge should be enough to cover all expenses plus put a reasonable amount of profit in your pocket each and every month.

My first step when looking at individual revenue real estate opportunities is to run the numbers. This is done well before an initial drive by of the properties. Your new business opportunity must be profitable. Period.

You Are Not Living In It 

Remember,  revenue property is an investment. You are not going to be personally living in it. This means that you should never over renovate with options you would like in your personal home.

Tenants will almost never treat your property as good as you would. This means that damage will occur and you must expect it and build it into your costs of doing business. A partial renovation may have to be done each time a tenant is changed. This is reality.

The property should be renovated to the point where it is appealing to your potential tenants. Over renovating can cost you a lot of money over the long term. Be careful.

Know Your Codes And Rules

Every area has different building codes and regulations. Before you start looking at an area, know all the rules. Knowing these rules ahead of time will help you avoid potentially costly surprises that could turn your new opportunity into a money loser.

Also, insurance companies have their own rules and regulations that you must follow to be insurable. This is another area that you must be prepared for. If your property is not insurable you risk losing everything. Not to mention you would never be able to get mortgage financing from any financial institution.

What To Do

Real Estate investing can be a complicated but yet very rewarding business opportunity. If considering revenue real estate for your future, be prepared for a lot of learning. Governments, insurance companies and financial institutions are always changing the rules. You must keep up to date with all of these changes.

Insurance companies are in business to make money. Financial institutions are in business to make money. Governments are in place to protect the tenants' rights. To be a successful real estate investor, you must find the balance of being profitable while providing clean safe housing alternatives for your tenants. A very challenging but extremely rewarding experience.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 28, 2014

How To Get Rich - Put Money In Your Pocket Now

How often do you think the wealthy see a pay check ?

Do you think they wait for someone else to determine this ?

Truth is, many see cash in their pockets each and every day !

Pay Me Now Not Later

What would your life be like if you could get paid every day? No more waiting around for your employer to pay you hopefully before your money runs out. I think you would agree, this would be a great way to live.

But how do you start changing your life towards achieving this goal ? Well, it won't happen overnight unless you win the lottery. But you can start working towards this goal today.

This kind of lifestyle is achieved by investing in financial products that pay an income as frequently as possible. Many quality investments will pay you an income each and every month.

How To Work Towards A Daily Pay Check

In theory, this strategy is quite simple. You start investing your savings in financial products that pay you a monthly income. These products will almost never pay their income on the exact same date as other similar products.

You work towards investing in up to 30 of these individual products that have different income payment dates. As I said, in theory this is how it works.

In reality, you may not get income each and every day, but you can come pretty close to it. In reality, some of your investments might pay income on the same dates. Your overall goal is to get paid as often as possible.

What To Do

Your plan for developing your own almost daily pay check starts by saving a portion of your current income. You can then invest these savings in shares of financial products that pay you a monthly income.

As your savings grow, you keep adding to the number and size of your investment holdings.

Depending on your current investment holdings and the amount you are able to save, you will some day start to see the power of this form of investment plan. As your savings and monthly investment income grows, so too will your financial freedom. The less dependent you become on your employer's pay check, the less stressful and more enjoyable your life will become.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 21, 2014

How To Get Rich - Learn To Say No

Do you often feel pressured to give money to something you don't understand ?

Does it seem like everybody wants a part of your wealth ?

These are common difficulties that those trying to build wealth often face !

Initiate, Don"t React

In today's high pressure world there are many trying to make a living on uneducated wealthy individuals. Requests for your money either by mail, by phone or email occur every day.

What do all of these requests have in common ? They are all uninitiated. What this means is that before opening the mail or email or answering the phone, you had no plan to give to the person asking. These people are highly trained to convince you to part with your money.

People that give their money this way are reacting. They are reacting to the persuasions of a smooth talker with a pitch that seems good. But is this the way to build wealth? No.

The successfully wealthy plan ahead with all their purchases, including their giving. They research all the charities and other causes they are interested in and choose which ones to support. They initiate the giving process and therefore can control their costs just like any other purchase. You can too.

Just Say No 

It is really quite simple to change your giving habits to one of initiating. Just say no to whoever calls, mails or emails. If something seems appealing, simply write it down and do your research on it later, in your own time.

Your time is valuable and this is something that no phone solicitor appreciates. They will almost always interrupt you at a bad time. They almost never apologize for the interruption. All they care about is making the most amount of calls in the shortest amount of time. This is what makes them money.

What To Do

There are many great causes to support and give your money to. But how do you really know how the money you give is used ? Simple, do your research first. You may be surprised at how little of your donation goes towards the actual cause.

Make a list of the causes you would like to support. For each one, research how much of your donation goes towards the cause and how much is wasted in overhead. Next, decide how much to give to each one that you still want to support.

Finally, stick to your plan and always say no to the uninitiated causes. This also applies to the follow up requests that always come when you make a donation.

It's your money and your future wealth that is at stake. Never let someone else persuade you to part with money you never planned to spend. It is really that simple.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 14, 2014

How To Get Rich - Be True To Yourself

Do you ever feel coaxed to do something that's not right for you ?

Do you feel everyone should be exactly the same in every way ?

Our unique differences is actually what makes life so interesting and challenging !

Power of Persuasion

I am sure that we have all felt at some point the powerful force of someone with a strong position on a topic. When this topic comes to money and finances, these individuals can actually do you more harm than good.

No one likes to feel they are being told what to do. When it comes to relationships, the person with the strongest personality and opinions can often persuade the other to think their way. The person with the weaker personality will often change simply to keep the peace.

As a financial planner, I have seen this situation far too often. Individually people will generally do whatever they feel is right for them. When left to discuss ideas with a partner, more times than not they will completely change their direction.

Be True To Yourself

When it comes to money and your financial future, you must stand up for what you feel is really the best for you. Do you really think you need that new car or to renovate your comfortable home for the third time ? Not likely.

Life can become very complicated and confusing and even more so when you have someone else to consider. If you feel you are always yielding to someone else's wishes, how can you possibly be happy and fulfilled in your life ? The simple answer is you can't. Freedom of choice is what creates true inner wealth.

As I have mentioned in other posts, wealth is not simply numbers in a bank account. Wealth is much more about living your life the way you want to live it. Be true to your inner self and do what you truly want to do.

What To Do   

If you find yourself in a relationship where you are always giving in to the other, you must seek the proper help. A healthy relationship is one that shares each others ideas and works towards the common good of the couple or family.

When it comes to finances, saving money and investing money is the only proven way to build financial wealth. Do not put yourself in a position where you are waiting for a big score to get ahead. In reality, this big score will always be sometime in the future and your precious time will be slipping away.

If you are contemplating a savings or investment plan, STOP ! Stop contemplating it and just do it and do it now ! Time is something you will never get back.

To become truly wealthy, you must first become true to yourself. Never let someone else tell you what to do. Your inner self will always tell you what choice is right for you.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 7, 2014

How To Get Rich - Reduce Your Cost of Living

Do you find that you have no money left over after paying your bills ?

Do you really need to spend so much to enjoy your life ?

Overspending is one of today's most troublesome addictions !

Know Where All Your Money Goes

One of your first basic steps to building a secure and wealthy future is to know how you spend your money today. A good way to do this is to write down every purchase you make over a one month period. When I say this I mean everything, even your morning cup of coffee or two or three.

By doing this simple exercise you will be making yourself more aware of where all your money goes. This increased awareness may be all it takes to identify what you spend too much money on.

Organize Your Data  

Once you have everything written down you need to add up all the different categories for the month. For instance, how much you spend on your morning coffee for a month. how much you spend for lunches, for dinners out, for movies and entertainment, etc etc etc.

If you add up all these purchases and it totals more than you bring home, you have a serious problem. If the totals add up to the same as what you bring home, this is still not good. Ideally, you should be spending less that 90% of the money you bring home. Preferably much less.

Look For Ways To Reduce

Depending on the results of your above exercise, you may have to make a few conscience decisions about ways to reduce your cost of living. You will not be able to survive too long if your expenses are greater than your income. Bankruptcy or financial despair will only be a matter of time.

If your expenses are greater than 90% of your income, you are treading on thin ice so to speak. If an unexpected expense should come along, this may do you in. What will you do if you have a major bill or obligation to pay ?

Reduce and Build

The way to build a secure financial future is to reduce your expenses to well below 90% of your take home pay. You can then save this difference in a bank savings account to build an emergency reserve. This will become your financial cushion to help offset any sudden unexpected expenses that always show up at the worst of times.

Ideally, your reserve should be build up to a value of between three and six months of your take home pay. This amount should always be maintained at this comfortable level. Once this is achieved, any extra funds can start to be saved for investing. These investments will some day give you even more financial security and provide you the opportunity to realize your dreams.

What To Do    

Reduce your cost of living to well below 90% of your current take home income. Save this difference to start building your emergency reserve. Once reserve is reached, direct all extra funds towards saving for future investments. Your financial security is really that simple. The hardest part is curbing your temptations for overspending. You must be determined in order to reach your financial dreams.

As always, I welcome your comments and suggestions for future topics.