Choosing Investment Property to Make You the Most Money
When you are considering purchasing a property for real estate investing, you’ll want to remember that there are generally two ways to make money on the property you purchased. One is from capital appreciation, where the value of the property increases, and the other is from renting your property out. However, how do you know whether a property is a good investment? Deciding before you purchase an investment property whether to Flip it or Rent it will make you the most money at the end of the day.
Obviously, one of the most important factors in determining whether a property is a good investment or not, is to consider the purchase price of the property. If after you’ve made the initial down payment and your mortgage payment is over and above what you can rent the property out for, you’ll find that to be a poor investment. Determining whether or not the property will bring in a positive monthly cash flow for you is one of the most important factors.
The location of the investment property is also an important factor. Regardless of whether or not you purchase a rental property well below its market value, if you can not find tenants for the property, it won’t matter. Make sure you choose a property in a location where there is a demand for housing. Researching the market can save you the hassle of a poor choice in real estate investing. You’ll also want to make sure the property you choose will appeal to the masses. Just because you like the uniqueness of a house, doesn’t mean someone else will and you may have trouble renting or selling when the time comes.
If the investment property you are considering is a fixer-upper, you may want to bring a contractor with you to determine the cost for repairs and renovations. You’ll want to figure this into the cost of the property and if it will not yield you a return on your money, whether you plan to sell or rent, you are taking the risk that it may be a very poor investment.
Real estate, whether you plan to flip houses or rent them out, can be a very profitable business for yourself. While determining whether or not a property will make a good investment or not can be difficult, the important thing to remember is to always do your research. Find out the rental history on the property, the demand for housing in that particular area, and any other pertinent information you can find on the investment. Any research you do will help you to choose properties that will be beneficial to your real estate investing.
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Making Money On Ebay
Selling on eBay could be a bit tedious at in the beginning. You have to do a lot of researching and book reading just to make sure that your first eBay store will run well and generally create for you a steady income stream.
Well, here are some things that you cant afford to just set aside especially if this is your first time to set up an online auction store like eBay. Some call this a path to eBay enlightenment.
The first block goes with identifying your market. Take a moment to identify those products that sell and those that do not. Please take note that as much as possible you are only to consider product lines that belong to your personal interests. Often, this is being emphasized in many eBay articles, picking products of your interest is a lot more effective than selling items that you just chose for the sake of having products to sell. It actually helps when you are familiar with your products as it gives you more confidence when pricing your items and when you are giving them individual descriptions.
Secondly, every seller must be very keen to watch the competition. Before starting to put any investment money in eBay, always try to see what other sellers strategies are and try to find any flaw those sellers might have with their selling strategies. Flaws will be your opportunity to penetrate into the market as buyers are more up to the better sellers. Try to identify your standing if ever you will join the competition. Study your advantages and disadvantages.
After studying the competition, you may then find your product suppliers. Beware of others who are selling you databases of the suppliers information. Most of them are just going to rip your money off. They do not have any intention of giving you what you have paid them for. You can do researchers online. Forums are good sources of valuable information and recommendations from other sellers. Once you have seen a supplier that can give you a price that is much lower than the average price of items on eBay, then you are set. Remember your main objective is to gain profits from your eBay store.
As a novice, you better start small rather than starting with a big store right away. You may expand once you have made a satisfactory profit and when you fill that you can handle a bigger store. Dont waste your money on an idea which is not yet sure to click although eBay has almost all kinds of market for every kind product regardless of their functionality. You may want to change your existing strategies if they are not so effective. Never be afraid to try different strategies. You dont have to follow others strategies unless they are proven to be applicable to all sellers.
The last block goes for those who easily quit. All successful sellers around eBay have one common story. They have probably tried so many products and selling strategies and they never quit until they have become successful as they are now. Be positive and remember that success is more felt when there are hardships on the way.
http://www.makemoneyonebay.biz
Daniel Millions
Making Money in a S-L-O-W Real Estate Market
If you are looking to profit from the real estate market these days, don’t let a slow market scare you away from the potential to earn a bit of extra money and seriously increase your cash flow. There are ways around a slow market that will allow you to earn an income, even while the home sales in your area are low.
One of the best ways to make real money in real estate is to buy and fix distressed properties, or to “rescue” foreclosed properties from auction. Buying houses at such a discounted price means that you can fix them up and sell them under the market average and still make a tidy profit in the mix.
If you are not a handyman, and don’t want to learn, you can still hire out the work on these properties, but be prepared for a slimmer profit margin. Focus on the less expensive but more valuable repairs, and never over improve a property. Pay attention to the condition of the houses in the area, basically you do not want the nicest or the ugliest house on the block. Fix your house up somewhere in between and you will have yourself a saleable home that will bring a nice profit.
If you are looking for more than a quick fix of income, consider keeping the property on as a rental property or lease it out to tenants. This can keep the cash flowing your way for years to come, and if you find yourself reliable tenants, the income could be steady for decades to come. If your tenants moves, you may typically only need to touch up the house to re-rent it.
The question is if you can make money in a strong or hot market, wouldn’t you be able to make money in a cold market? In a hot market, property is scarce and finding a “deal” on a property just becomes that much more difficult. Let’s face it, in a cold market there are more houses on the market than the demand. This creates a great opportunity to acquiring wholesale properties. The truth is investing in real estate can net you large profits no matter what type of market were in. Just play your cards right, invest in one property that can soon become two then three, and before you know it you will be able to live on your real estate income alone.
Limited time offer, download Free Landlord Forms! Make more money every month and take control of every rental situation from the industry leader in Landlord Forms. Create a Lease or Rental Agreement online and download a complete library of rental forms. http://www.ezlandlordforms.com
Futures Trading: How Fortunes Are Made
If there ever was one business that has made a lot of people a lot of money it is futures trading, also known as commodity futures. This is one business that has made millionaires and multi-millionaires in a very short time while starting up with relatively small capital investments.
Just what is a “futures trading”? Loosely defined, a future is an agreement to buy or sell a given quantity of a particular commodity at specified future date at a pre-arranged price. You “speculate” the direction prices will take and decide to buy or sell based on that. Prices are, to a degree, predictable.
The money-making potential in futures trading is astounding. Examples; John Henry started with $16,000 and amassed a wealth worth more than $1.5 billion. Richard Dennis borrowed $1600 and made $200 million in about ten years. Granted, these examples are atypical. But you can see the potential.
Unlike other forms of business and trading such as real estate, stocks, brick-and-mortar etc., where you have to wait years to see any substantial returns, futures market is immediate.
Better still, you can start from your kitchen table, you never physically handle or deliver the commodities, nor market or advertise, and you can buy or sell large or small quantities.
You also have choice of a wide range of commodities from gold, grains, crude oil, gasoline, currencies, and agricultural products and many more to choose from.
As with any business where you can make lots of money fast, you can also loose lots of money fast. This is one reason why this business is not for everyone. It is certainly not for those who tend to get emotional when things seem not go as intended.
Actually, the more you’re able to keep your emotions in check, the more money you can make as panic and hysteria are commodity traders’ best friend.
When starting out, you might make losses. This is expected and may be a good thing as early success can give you a false impression about your own abilities, and lead to disaster. Loss should be treated as part of business and learning process. The key is to limit your losses by learning to trade like a professional. How?
Professionals approach futures as a business, as opposed to the slot-machine, hit-or-miss approach most people make. And, as with any business you need to understand how the market works.
This means learning as much as you can about the business. And no, you don’t have to pay $2500 to attend some seminar to learn “insider secrets”. You would be better off if you could take a trip to Chicago or New York Board of Trade and observe professionals at it. You’ll learn more this way than in any seminar.
Back to limiting losses. One way of limiting loss (risk management) is placing a stop-loss order on a trade. You pre-determine the amount of risk you are going to take, and stick to it. Successful traders always have a stop-loss order before initiating a trade.
Trading without a stop loss order can have catastrophic effects, especially to the inexperienced trader as they can find themselves unable to pull the plug until it’s too late.
Another key is diversification. As they say “never put all your eggs in the same basket”. A rule of thumb is not to risk more than ten percent of your equity in any one trade, thus preventing losing all your money in one or two bad trades.
Amateurs also make the mistake of re-investing all their earnings, and then loosing it all down the road. Professionals pull their profits and start small again, making small capital increments to facilitate growth.
Good record keeping is also important in that it shows you what is working and what is not, as well as the patterns.
Contrary to what you may have heard you don’t need a lot of money to get started in commodity trading. A good brokerage firm can help you get started without spending a fortune.
Details of running a successful futures trading business are beyond the scope of this article. The best investment you can make is to spend time learning how the business works, starting with the basics.
David Kamau owns http://www.mercantilecentral.com Learn how to trade like a pro and make consistent profits trading futures. Go to: http://mercantilecentral.com/trade_like_a_pro.htm
Learn To Invest Time!
When I think of creating wealth, the first thing that comes to my mind is that I need to invest money. I need apply what I have learned from the Rich Dad series by Robert Kiyosaki by making my money work harder. All along, it never crosses my mind that I need to invest another essential thing to make it happen. In fact, I have been consciously investing this essential thing all along except that I do not realize it.
When I first heard about it yesterday, I feel enlightened. To be rich, I need to invest time too! I need to invest my time to study so as to gain financial literacy. I need invest my time to learn how to invest. I need invest my time to analyze investment opportunities. I need to invest my time to make the actual investments. I need to invest my time to monitor my investments. Time is definitely an essential component for wealth creation.
In short, I definitely need to spend a lot of time to create my wealth as well. That is where my problem comes. I want to be rich but I cannot find time to do it! Does this excuse sound familiar to you?
Unfortunately, according to Rich Dad’s series by Robert Kiyosaki, time is one of the two available components that I can invest to create wealth. In other words, if I want to become rich, I must definitely find a way to overcome this excuse.
And this excuse is used for a lot of other things too. For examples, I want to exercise regularly so that I can become healthy. But I cannot find time to do it. I want to practice regularly so that I can become a good dancer. But I cannot find time to do it. I want to spend more time with my loved ones but I cannot find time to do it.
Why do I say that it is an excuse and not a limitation? Well, I have 24 hours a day like everyone else. No one is privilege to have more time compared to the other. Since the amount of time is the same for everyone, why is it that someone seems to have more time and accomplish more things than others?
The answer is very simple. It is a matter of personal choice on how I spend my time. Usually, I choose to spend my time on something that I feel is more important. That is why I will never have time for the unimportant things. Since it is a matter of choice, then it is an excuse when I say I do not have time. It simply means that I do not find the matter important enough to invest my time on it.
Imagine if 24 hours a day is like a note of $24, how will I spend the $24? I can spend $24 to buy a dozen of can drinks such as Coke from the supermarket. Alternatively, I can spend $24 to drink a few can drinks from a high-class restaurant or pub. Comparatively, I will have gained more if I have spent my $24 on the supermarket.
That is exactly the same situation with time. How much can I accomplish in 24 hours is really dependent on how I have spent it. If I have spent it wisely, I can accomplish more things. If I just laze around and do nothing, then I will accomplish nothing.
For any typical working person, he needs to spend about 8 hours per day on sleep. He spends about 4 hours daily on meals and personal items. Another 10 hours per day of his time is spent on work including traveling time. All that is left at the end of the day is about 2 hours. If he just relaxes and watches the television, then his whole day is basically gone. But if he spends the 2 hours wisely, he will be able to accomplish more things. Similarly, the way he spends his weekends will determine how much he can accomplish in life.
Some people may be luckier than others because they have more leisure time than the others. But that does not necessary mean that they will be able to accomplish more things than others. The key is how they invest their leisure time. Just like a person who earns more than others does not invest wisely as learned from the Rich Dad’s series by Robert Kiyosaki, he will be definitely poorer than others by spending mindlessly.
In conclusion, I feel that learning to invest time is as important as learning to invest money if I want to succeed in life.
* DISCLAIMER *
The author only provides the material and information as a layperson’s views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy.
All the materials, information and procedure in this book are only the author’s personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others.
The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances.
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng shares about his struggle for financial freedom at http://www.richdadsecrets4me.com. He is the author of “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com
Taking Control of Your Finances: Building Residual Income
There is no better feeling than taking control of your finances. Just imagine being able to, on the spur of the moment, take that Caribbean vacation you’ve always dreamed. Maybe you want to help put your kids through college. Or maybe, you want to start to put into motion that plan you and your loved one have always had of having or building a home of your own.
The nine to five daily grind can be a tough thing. Most times, it’s hard enough to make regular ends meet with day to day employment, let alone live happily off of the income your day job generates. Most regular employment doesn’t afford spur of the moment vacations, or lofty castles in the sky such as building or maintaining a home of your very own.
This is the point where it’s important for you to take control of your finances. Implement a stream of money that your household budget hasn’t already consumed. Building residual income in alternative ways is a great way to start this.
Residual income is income that is generated from somewhere other than your primary source of income. Residual income occurs after the effort to generate the income has already occurred, such as purchasing real estate for rental properties. Purchasing the rental property is the event that has occurred to generate the residual income, which is the actual rent that is being paid to you for use of your rental property. And it didn’t even take away from your day job!
Be sure not to confuse residual income with linear income, a term that is often used in conjunction in general discussion. Linear income is generally classified as income that can be calculated using a numerical formula; it is directly related to the number of hours that are invested in creating the income. Having a day job lined up usually qualifies as having a linear source of income; having rental properties as well as a day job qualifies as having residual income as well, or multiple streams of income. This is a good thing!
Building residual income is one of the best things you can do to ensure financial security for not only yourself, but your family and generations to come. It’s a way to make sure that, even though the primary source of income may dry up due to illness, lack of work or other issues, money is still streaming into the household. It is income that occurs outside of your primary employment, hence the word “residual”.
Building residual income does not always involve work though. There are many ways of doing it, it’s really just a matter of how quickly you would like this extra income generated. Stocks and bonds are a source of residual income, as is a savings account that you earn interest on. Normal savings accounts don’t usually have an interest rate worth mentioning as a source of residual income, but it certainly is a start!
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Need Only Be Good At One Thing!
When I want to invest to accumulate wealth, I will diversify my investments so as reduce my risks. For example, if I were to invest in the shares of one company, I would face the risk of losing everything if the company went bust. But if I were to invest equally in the shares of 100 companies, my risk would be reduced to the loss of 1 percent of my investments if one of the companies went bust. In other words, I will not put all my eggs into one basket.
Invest to accumulate wealth is different from creating wealth to become rich. If I want to create wealth to become rich, then I should be focusing on just one thing. I should not be diversifying my resources to various ways of getting rich. If I try to be good at everything, I will never be able to truly master any one of them because I am too stretched out. There are many ways to become rich. Personally, I classified them into a few categories.
Firstly, the dishonest way of becoming rich. This involves crimes such as cheating, robbing, stealing and so on. There are two distinct disadvantages to become rich in this way. The first disadvantage is that the laws may catch up with me anytime. The other disadvantage is that my partners in crimes may cheat on me any time. In the end, I would lose everything that I have made.
Secondly, the easy way of becoming rich. Basically, I do not create wealth right from scratch. Instead, I receive the wealth almost instantly. For examples, I could marry someone for the sake of wealth. I could inherit wealth from someone. I could strike a lottery and so on. The first disadvantage is that chance is very slim for such a thing to happen. The second disadvantage is that I would likely to lose most of them over a period of time because I had not master how to manage great wealth properly.
Lastly, creating wealth right from scratch. This requires a lot of hard works. There is likely to be numerous setbacks along the way. Also, I would face the constant struggle to give up. For examples, I could try to become rich by trading options. After making a few bad trades and loss some money, I might just give up. But if I persisted and learned from my mistakes to become an exceptionally trader, then I could start to teach people to trade. My knowledge of trading becomes my wealth. In other words, I create wealth from my knowledge.
Basically, I have tried a lot of things in the last category. I have tried option trading. I have tried to write a book. I have tried shares trading. I have tried to invest in a real estate. I have tried internet marketing. I have tried network marketing. But I am never good at anyone of them because I lack of focus. Also, I want to become rich instantly. Whenever I found a new way that promise that I could get rich quickly, I become really excited. I would change my focus to the newly found way of becoming rich. In the end, I am nowhere near my goal of becoming rich.
Even though the idea of multiple streams of income is very enticing, I feel that the way to create wealth to become rich is to focus on one thing at a time. After reading so many books and attending seminars on wealth creations including Rich Dad’s Series, I have concluded that I should make it rich by being good at one thing first. Then, I can subsequently branch up to create other sources of income. My mistake is that I have tried to branch up to create other sources of income before I have succeeded to be good at any one of them.
My conclusion is further enhanced when I have learned from successful people that great wealth is only created when I focus on one thing and be really good at it. To be really good at the one thing, I must really love doing it. If I love what I do, I will excel in it. It is no longer work but play for me. Since I am very good at it, I definitely can create wealth out of my knowledge.
For example, if I am very good at options trading. I can trade options for a living. I can also teach people to trade options for a living. Because I am good at it, I can charge a premium for the courses. If I love playing golf and I am good at it, I can play golf for a living. I can also teach people to play golf.
Invest to accumulate wealth required different strategy from creating wealth. I have learned to adopt different strategy for different purpose.
* DISCLAIMER *
The author only provides the material and information as a layperson’s views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy.
All the materials, information and procedure in this book are only the author’s personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others.
The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances.
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng shares about his struggle for financial freedom at http://www.richdadsecrets4me.com. Get a free sample of his book “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com
Reduce Time Wastage!
Reducing time wastage is not just for busy people. I feel that is it an important thing that everyone learn to reduce time wastage. I believe that if spare time is probably invested, it can make a whole lot of difference in the quality of my life.
For example, if I had invested my spare time to learn and create wealth consistently, then I would be able to accumulate more wealth in the long run than if I had done nothing. This extra wealth would definitely help to improve my quality of my life. As I have gathered from Rich Dad’s series by Robert Kiyosaki, time is one of the two available components that I can invest to create wealth. The other being money.
Another example is that if I had invested my spare time to learn how to drive, then I would be able to benefit from the convenience of having a car. I could go anywhere at anytime because now I had a car and I knew how to drive. Thus, my quality of life would improve.
If I want to improve my quality of life, how will I go about reducing time wastage?
Firstly, I need to know currently what are the activities that I am spending my time on. If I do not know how I spend my time, then there is nothing much I can do to reduce my time wastage.
Just like in financial planning, I have to keep track of all my expenses to know where my money goes. From the list of expenses, I will then identify which one of them is unnecessary and think of a way to do away with.
For example, I had subscribed to a weekly magazine. But I never seemed to have time to read it at all. Every month, I would be paying for the subscription without getting any benefits out of it. The money was wasted on the subscription. To fix this issue, I would cancel my subscription since I knew I would never have time to read it even though I wanted to.
Similarly, I can monitor what I have done every day. I will end up with the list of activities that I am spending my time on. From this list, I will then identify which one of them is unnecessary and do away with it. For any time that I am not doing anything, I will classify it as an activity for lazing around. For time that I am relaxing, I will classify it as an activity for relaxing.
Which of my activities are considered to be time wastage? Is relaxing and lazing around considered to be time wastage? That really depends on individual perception of the value of time.
This brings me to the second point on reducing time wastage. The key to reduce time wastage is by increasing the perceived value of time. If my perceived value of time is high, then I will be motivated to reduce time wastage.
For example, if I had only six months of lifespan left, then every single moment counts. To laze around and do nothing will be considered to be time wastage! If I had one thousand years of lifespan left, then time is not as valuable. To laze around and do nothing will not be considered to be time wastage.
Just like in a case of money, I will find means and ways to reduce money wastage because I perceived it as very scare and valuable. This is because I need more money to be invested in assets that generate passive income. Passive income will enable me to become rich. But if I am already filthy rich and earning lot of passive income, then I may not be so concern with money wastage.
How to increase the perceived value of time? One way is to monetize time. I will divide my monthly income by the number of working hours per month to figure out how much I earn in an hour. Let say I earn $10 per hour, then each hour that I am not doing anything useful, I am wasting away $10.
The other way is to remind myself constantly that life is fragile. Each day that has passed, I am nearer to my death. Thus, I will feel the urgency to make full use of time. For people who had survived life-threatening situation, you will understand why I feel that time is precious.
By reducing time wastage, I can afford to have more time to invest for creating wealth. Since I have more time to invest, my path to become rich will be accelerated. And I will be able to realize my dreams in a shorter time.
* DISCLAIMER *
The author only provides the material and information as a layperson’s views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy.
All the materials, information and procedure in this book are only the author’s personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others.
The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances.
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at http://www.richdadsecrets4me.com/articles.php. He is the author of “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com/articles.php
Good Debt And Bad Debt!
If I were to borrow money from a bank to invest in a property, I would incur a debt. Is this debt considered to be a good debt or bad debt? Well that really depends on who is paying off the debt. Based on my understanding of the Rich Dad’s series by Robert Kiyosaki, a good debt is a debt where someone else is paying off for me while a bad debt is a debt where I need to pay off myself.
For example, if I were to rent out my property to someone, then I would be collecting rental income. This collected rental income could be used to pay off my mortgage loan. In this sense, I was the one who had borrowed the money but my tenant would be the one paying off my debt. However, if I had failed to rent out my property to anyone, then I would not be having any rental income. In other words, I would need to pay off the mortgage loan myself. Then this mortgage loan would be considered to be a bad debt.
If my property were rented out, then the debt would be a good debt. If my property failed to rent out, then the debt would be a bad debt. Depending on whether I had any tenant, my debt could be switching to and fro from bad debt to good debt in a given period of time. Thus, a good debt may not stay as a good debt indefinitely while a bad debt may not stay as a bad debt forever.
With this new understanding, there are two things that I can do to strengthen and protect my financial position.
Firstly, I can identify all my bad debts and try to convert them into good debts. For example, if I were to own a car but I rarely used it. I could rent it out to earn rental income. This rental income would be used for covering my car loan. In this way, I had converted a bad debt to a good debt.
If I failed to find someone to rent my car, I would try to settle my bad debt as soon as possible. Using the previous example, my car loan is a bad debt because every month I would need to service the loan repayment. Since I rarely used the car, then it may make sense for me to sell it off and pay off my bad debt.
Secondly, I need to do proper financial planning for all my good debts since there is a danger of a good debt becoming bad debt at any point of time. Based on what I have learned from the Rich Dad’s series by Robert Kiyosaki, it is important to get into good debts to accumulate wealth. But how many or how much good debt should I be taking on?
For example, if I were to borrow from a bank to invest in a property, I would incur a debt. Since my property was rental out and the monthly rental income was more than the monthly mortgage loan repayment, then my debt was essentially a good debt.
Assuming I bought a property valued at $200K and I had loaned at 80% of the valuation price, then my good debt would be $160K. Now there were two possible scenarios that could change my good debt into bad debt.
The first scenario is that my tenant did not continue to lease my property and thus there were no more rental income. Without anymore rental incomes, then my debt would become bad debt. And suddenly, I would need to service my mortgage loan all by myself.
As a precaution based on my financial education, it is necessary for me to set aside 3 to 6 months of expenditure including mortgage loan repayment. If such a scenario were to happen, I would be able survive for at least 3 to 6 months. This period should be long enough for me to find new tenant or sell off my property.
The second scenario is that the valuation price of my property drop to $100K. Assuming that the bank only allowed me to borrow at a maximum limit of 80% of the valuation price, then I could only borrow $80k. Thus, the bank would have to force me to top up the difference of $80k. If I had failed to do so, then it would be considered to be a default on mortgage loan. The bank would have the right to sell off my property to reclaim the loss.
If I had more than one property, then I would be a much worst financial situation when the second scenario occurred. This is where financial education can plays an important part as highlighted by the Rich Dad Series by Robert Kiyosaki. With my financial education, I could determine how many and how much debts that I could take on without running into the risk of becoming bankrupt if the situation were to turn against me. That is I would not be overstretching myself with too many good debts. I would borrow within a reasonably safe limit.
* DISCLAIMER *
The author only provides the material and information as a layperson’s views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy.
All the materials, information and procedure in this book are only the author’s personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others.
The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances.
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng shares about his struggle for financial freedom at http://www.richdadsecrets4me.com. He is the author of “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com
Work Hard For Your Wealth!
When I just started work after graduation, I have earned income to spend on the things I desired. But if I came across something that is too expensive, I would tell myself to forget it. It is outside of my budget. That is the way I was brought up. Spend within my means and forget about things that I cannot afford. These things are meant for the rich people only.
After reading a few books and attending a few seminars on wealth creation, I have realized my mistake of laziness. Instead of thinking very hard on how to earn money to buy those expensive things, I have chosen the easy way out by giving myself the excuse that I cannot afford it.
In fact, my laziness to think hard to make money is inherent in a lot of ways in my life.
Firstly, when someone tried to show me a way that I could earn money, I would turn him because I was too busy with my current employment. I felt that there is no need for me to further stretch myself to earn extra money since I was already receiving a reasonable steady income. I should relax and enjoy myself during my leisure time.
Actually, that was an excuse. The real reason was that I was not prepared to think and work hard to become rich. What I really wanted was instant wealth! I simply wanted to become rich without the need to go through the process of failures and setbacks.
But this is not possible based on my knowledge gained from reading and observations. Failures and setbacks are essential for everyone to learn from their mistakes so that they can improve and achieve success.
Secondly, if there was a proven system available for me to achieve wealth, I was still not prepared to do it. My excuse for laziness would be that I did not have a coach to guide me. I would face difficulties in learning to use the proven system. I would need someone to handheld me all the way. I could not do it by myself.
Thirdly, if there was a mentor to coach me to achieve wealth, the first question that came to my mind was does this really work? What if there is no result after putting in all my efforts? Why don’t I just wait and see. Let observe someone who was doing it and see what would be his outcome. If he were successful, then I would follow him. Wait and see attitude is just another excuse for laziness.
As you can see, I could come out with all sorts of excuses for doing anything even if there were perfect conditions available. All these excuses voice down to one and only one thing, I was not ready to pay the price to become rich. I was ready to work hard for an employer but I was not ready to work hard for myself.
How did I finally realize my mistake? Well, it was due my exploration to gain instant wealth.
When someone told me that I could be rich by doing option trading, I quickly signed up for the course and hope to gain instant wealth. After studying and learning for a while, I realized that a lot of time and effort is required to truly master the necessary skills.
When someone told me that I could be wealthy by investing in real estate, I was distracted and gave up on the previous course that I was learning. I would then signed up for the new course and hope to gain instant wealth.
I had tried a lot of things but only to give up when I found that I needed to put in a lot of hard work to master the skills. I was looking for a way to gain instant wealth. In the end, I was forced to face the reality that there is no quick way but hard work.
Hard work is required mentally, emotionally and physically. If I want to become right, I need to think of ways and means to learn and accumulate wealth. This is mental hard work. Each time I face a failure or setback, I need to deal my emotions so that I do not give up. This is emotional hard work. I need to spend time and effort to carry out the actual actions to learn and accumulate wealth. This is physical hard work.
Without hard work, there will be no failures and setbacks. Without failures and setbacks, I will not be able to learn from my mistakes so that I can achieve success one day. With this new understanding, I am no longer afraid to work hard for myself.
* DISCLAIMER *
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at http://www.richdadsecrets4me.com/articles.php. He is the author of “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com/articles.php
