Tag Archives: investment

Becoming a millionaire takes time and discipline

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Becoming a millionaire takes time and discipline and even if you inherit it or earn thorough some great accomplishment likes sports or entertainment you need to have wisdom and knowledge to keep it!!!!
I believe that this article hits many key points that you will need if you REALLY want to be a millionaire!
Take a look and feel free to add your comments

10 Steps to Becoming a Self-Made Millionaire

You have to have a plan if you want to become wealthy
Building wealth for most people is a long process that requires discipline and sacrifice. There are many people who will waste their life away, wanting things to be different. Then there are those who are willing to change themselves to change where they are going. These are the people who have what it takes to become wealthy. These are the people who have a plan.

1. They don’t live like millionaires.

What we mean is, they don’t spend the way most people you would conceive as millionaires do. Those people who spend money like it’s going out of style generally end up broke. They must file for bankruptcy and get rid of their fancy house, cars, and materials to pay their debt. Self-made millionaires know the value in not spending all their money. They know waiting for what you want and saving for what you need is the only way to get there.

2. They are cheap.

More than not, when you meet millionaires, they are penny pinchers. They will be a little more stingy with their money. And that is OK! You don’t have to help every Tom, Dick, and Harry out there! They are wise with their money. Some of them are maybe a bit like Scrooge. You don’t have to be so extreme, but don’t spend every penny you have, just because you have it.

3. They give to charity.

Charitable donations not only help the conscience, they also help when tax season comes around. Those who give sizeable donations to charitable organizations, and have receipts for it, can take those contributions off their taxes. It is a win-win-win, right?

4. They invest.

Millionaires know that money sitting is just that — money sitting. It isn’t doing anything for you. Even if you don’t invest it, but you put it into a high interest account, it is more likely to accrue money for you later on than money in your pocket. When you get a paycheck, allocate what you need for bills and living, but put 10 percent into investments or savings

5. They earn a little more.

These are the people who are not afraid to go ask their bosses for a raise. They know how to work more hours at their job just to get that paycheck a little bit higher. They know how to do whatever it takes not to have to live paycheck to paycheck, because they put in the effort.

6. Get an education.

Although you will see some who do not get an education, the majority of millionaires see the value of an education, in getting a better job and compensated more for their work. School is expensive, but so is getting to millionaire status.

7. They work side jobs.

Many millionaires work one to three jobs, and their spouses do the same thing. They work as much as they can to bring home as much as they can.
8. They marry well.

Not that they marry rich. They marry someone with the same goals and value of money as their own. Their spouses may be as frugal, or even more so. That is the measure of good millionaires. They know how to become millionaires together.

9. They are organized.

They know where every penny goes. They know what each of their assets are doing. They do their own money managing. Do you think they would let someone who may potentially mess it all up take care of their money?

10. They teach their children.
Millionaires teach their children how to work hard and be millionaires. Their children know how to save for and earn what they want.

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Knowledge is Power by Ed Clark

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The KEY to making a change is knowledge and that knowledge doesn’t have to be complicated it just has to be executed. Take a look at these 4 simple principles and see where you can make a change.

4 Personal Finance Principles to Live by For a Richer Life

Taking control of your personal finances is key to living a more stress-free and stable life — a truly rich existence. All you need to do is take the first step: start becoming more aware of your bank account, and live by these very basic principals that just about sum up what personal finance is all about.

1. Pay yourself first

This is a common personal finance phrase that many people live by. But what does it really mean? No, paying yourself first isn’t buying anything you want and letting your bills collect dust. Basically, it means that before you spend your new paycheck on necessities or wants, you should squirrel away a portion of it to your savings. Getting into this habit is helpful because you’ll learn to prioritize saving, and the steady stream of monthly contributions is the best way to grow your emergency, savings, and retirement accounts. The best and easiest way to pay yourself first is to automate it so that the process is mindless.

2. Live within your means

Don’t spend more than you can afford to spend. Don’t take on loans or debt if you can’t afford it. This even means being cautious on what is generally considered “good” debt. Ever since the financial crisis, all of us had to reassess what we initially thought of as good debt, which includes mortgage, school, and car loans. Once people started getting laid off and defaulting on payments, the good debt very quickly becomes bad. That’s not to say that you shouldn’t go to the college of your dreams; but you should still weigh the costs while keeping in mind realistic expectations of job prospects postgraduation. And if it’s truly worth your investment, you should find ways to cut costs. Other than not taking on debt, conscious spending is also part of what it means to live within your means.

3. Prepare for the long term and the worst

Don’t spend your time living only in the here and now. Think ahead, and start preparing for your retirement and emergencies by starting an emergency fund and contributing to your retirement accounts.

4. Knowledge is king
Keep reading and keep learning about how to better your personal finances. This is just the start of your journey, and there is so much out there to learn

Buying Rental Property

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ImageBuying rental property is hard work but very rewarding if you educate yourself and put processes in place to make sure you succeed.  Remember purchasing a rental property is a big deal it’s one of the biggest purchases that you may make outside of buying a traditional property. Owning a rental property is like owning a small business you need to keep track of paperwork, work with tenants and vendors, file taxes, etc.  Investing in real estate is no easy task make sure you have a reason and a plan of why you want to invest in real estate:

  1. Make sure your personal finances are in order. Never buy a rental property if you don’t have income to cover the payments of the rental property and at least an eight (8) month emergency fund. Remember if something happens with your tenant you are responsible for the mortgage payments and repairs.
  2. Get preapproved for a loan. Sit down with a mortgage lender or broker to find out if you can afford to make an investment before you spend a lot of time searching for a property. You will need a 20-25 percent down payment for most lenders (and that’s 20-25 percent, plus closing costs and renovation costs, might add up to 30-35 percent cash up front to close escrow and get a property rental ready). So, for a $120,000 property, that could easily be $40,000 cash needed. 
  3. Research going rents. Ask real estate agents, property managers, or other renters in the area how much you can realistically expect to charge for rent. There are sites like Zillow.com, Truila.com, etc that can also help you with going rent rates.
  4. Buy properties in good locations. The quality of the neighborhood is important for keeping good tenants. Take a look at the proximity to employers, schools, parks, and public transportation. If you plan to manage a rental yourself, be sure that it’s fairly close to your home (the rule of thumb is no more than 1-2 hours from your primary residence).
  5. Make purchase offers contingent upon inspections. Always pay to have professional inspections made so you can determine what repairs may be needed and if there’s evidence of pest damage.
  6. Get landlord insurance. You need to have plenty of liability insurance to protect yourself in case someone is hurt while they’re living in or visiting your rental property. I also make sure that my tenants have renter’s insurance this will cover all my tenants property at its full replacement cost.
  7. Know the rules. There are federal and state laws regarding rental property that you must not to violate. Visit nolo.com for information about the landlord-tenant laws.
  8. Consider the services of a property manager. After years of managing my own rental properties, I turned them over to a professional. Even though a property manager charges around ten to fifteen percent of the gross rent they collect—to me, it’s well worth it. If you want to circumvent all the hassles of managing a property, be sure to add the expense of a professional manager into your calculations before you decide to buy a property. 

It’s important to remember that there are no guarantees when you invest in real estate.  It’s true that the value will increase but it will also decrease along with the increases and decreases the rents and home prices with go up and down but if you’re cut out for  investing in real estate it is an amazing way to diversify your investment portfolio.