Beginners guide to becoming WEALTHY

[Oxide]

my neighbors own 4-5 condos and make nice living on them.

they once told me a story about a guy who was 21 and needed a place to sleep, so he bought himself this 2 story building with a basement. He leased the top 2 stories to people and slept int he basement. Later he fixed it up, and sold it, buying another 2 places int he nieghborhood. After 5 years he had 4-5 places and bought a nice house for himself with all cash from condos.


so there is nothing that can stop you from getting money.

i myself dont really like real estate, but it seems likea good way to go for financial independence.

 

[Lt dan]

bump

 

[Sammo]

15 y/o seeking advice

Hey str8up.

Im a 15 y/o living in australia. I want to know what you think i should do to help ensure my financial success and independance. I will be taking courses soon on accounting, marketing, laws(so i know whats legal here compared to america, for example: in rich dad poor dad, he says that there really is no job security these days but in australia that is not the case), etc.

 

[Kaizen]

One thing that I found to be extremely important.. if not the most important factor to becoming wealthy is the ability to be a leader. When I became aware of this, I saw how important it was to be a leader... but after reading "21 Irrefutable Laws Of Leadership" by John C Maxwell, it be evident that leadership is one of the most crucial parts of one character to build for the journey to success. Leadership is a skill that is one can be born with. A natural talent, but it can also be a skill to learn and built. If anyone ever wants to reach the top of the mountain, I would recomend buying this book. Do not borrow, rent out, steel, find a ripped one online... buy the book, otherwise you will never see value in it.

 

[STR8UP]

Re: 15 y/o seeking advice

Originally posted by Sammo
Hey str8up.

Im a 15 y/o living in australia. I want to know what you think i should do to help ensure my financial success and independance.

There is no magic formula. You have to try your hand at business, real estate, and the stock market to figure out what suits you the best.

For me real estate has been the only thing that has paid off with cold hard cash. The stock market....maybe I'll go back to that when I have a ton of cash and want to sit back a little. I haven't made any big money in business but it has provided me with a monthly income that pays my bills along with a great education and credit that is going to help me in the future.

You just have to get out there and make something happen.

 

[STR8UP]

Originally posted by Kaizen
One thing that I found to be extremely important.. if not the most important factor to becoming wealthy is the ability to be a leader.

Oh yea. Definitely an important piece to the puzzle.

Once you get to a certain point in the wealth building process your technical knowledge will take a back seat to people skills. Your ability to get others (especially those who can help you) to trust you and sway them to your way of thinking is KEY to kicking the process into high gear.

 

[Kaizen]

Originally posted by STR8UP
Oh yea. Definitely an important piece to the puzzle.

Once you get to a certain point in the wealth building process your technical knowledge will take a back seat to people skills. Your ability to get others (especially those who can help you) to trust you and sway them to your way of thinking is KEY to kicking the process into high gear.

I believe it was Zig Ziglar who said "I would rather get payed 1% on 100 peoples' efforts, than 100% on my own efforts."

I just had a chance to sit through an exclusive training today with one of the top trainers of MLM in the entire world! When I have time... I'll come back and post some of the things I learned.

 

[Shiftkey]

Sammo,

I'd say the best thing for you to do is to start building your credit and educating yourself on business and real estate (and maybe stocks/bonds). 15 is a little young to really start trying your hand in business IMO. Try to get a student credit card through your parents - I'm not sure what the legal age to do it is where you live, but you should at least look into it. Use the card and pay off the entire balance every month with money from a part time job. If you don't already have a job and need to ask your parents, build up your case ahead of time and imagine what their objections will be and your counters to those objections. Same goes for the credit card.

 

[Buzz]

STR8UP

In terms of getting a home loan, is a 30 year loan too long? In order for me to stop renting and start buying a mediocre place, I would only be able to afford a 30yr. The only other possibility is getting a really cracked out house in the ghetto =D. I don't want to get shot or robbed, heh.

Thx,
Buzz

 

[STR8UP]

Re: STR8UP

Originally posted by Buzz
In terms of getting a home loan, is a 30 year loan too long?

That's a great question. But you either haven't read all of my wealth building threads or you don't understand the underlying concept behind borrowing as much as you can for as long as yoou can on your home. So i'll reiterate for you.

BORROW AS MUCH AS YOU CAN FOR AS LONG AS YOU CAN ON REAL ESTATE! If you can find a FIFTY year mortgage program, DO IT. If you could find an interest only mortgage program DO IT. If you can find a 150% LTV mortgage program, DO IT.

What? This doesn't make sense to you? Probably not and I'll tell you why. It's because you've always been taught that debt is BAD. Well, CONSUMER DEBT IS BAD. Investment debt is crucial to wealth building.

The logic behind this is incredibly simple, yet most people fail to grasp it because it flies in the face of what they THOUGHT was correct. It feels like you are doing the right thing by paying down the debt sooner.

Here's the deal. Basically what you're gonna do is borrow the money at 5% and reinvest it to make more. Simple enough?

Don't get me wrong. If you're using that extra $100 every month that would have been going to pay down the loan to buy clothes or furniture or other junk, you're better off paying down the mortgage. But if you're like me, you are going to turn around and invest that $100 into something that makes you 10%, 20%, or even a 50% return. Get it?

Borrow at 5, make 15, pocket the difference.

That's how you get rich. You use other peoples money to acquire income and/or equity producing assets.

Does everyone understand?

 

[Lt dan]

what would YOU buy with that money in terms of assets

 

[STR8UP]

Originally posted by Lt dan
what would YOU buy with that money in terms of assets

What would I buy?

If you are talking about investing an extra $100 per month you will probably have to start by putting it into the stock market and let it grow until you have enough to start to wheel and deal with.



The problem is how long will it take you to SAVE $20k by sticking away $100 per month? A LOOOONG time. That is why it is still IMPERATIVE that you build credit. If you were able to BORROW that $20k you could get started immediately.

Another scenario, if it makes any sense (try to follow me here) is to think of that extra $100 as REDUCING your monthly liabilities which brings you one step closer to financial independence. In other words, if your mortgage payment is $800 instead of $900 per month that means that in order to quit your job you must make LESS money to justify the move. Remember, time is the most valuable asset you have.

The BIGGEST step you make in building wealth is to get out from underneath the burden of having to WORK for your money. You should be FOCUSED on obtaining a passive income that allows you to free your time to pursue REAL money. I can't tell you how valuable that is.

For example, if I were working a job, chances are that I wouldn't have been able to get time off to fly to Europe to pursue investments there. I might have to go back soon. Since my income is at least semi-passive I can act on a lot of things others can't.

 

[Lt dan]

you sound like robert kiyosoki. not a bad thing though. can you recommend some books on investing. im gonna read building wealth when i finish rich dad poor dad. i think that was the book you recomended. the one about purchasing real estate with no money down. at the age of 17, am i too young to start building my credit?

 

[Charisma]

this post is a complete lame rip off, from rich dad poor dad, just pathetic

 

[Kaizen]

Originally posted by Charisma
this post is a complete lame rip off, from rich dad poor dad, just pathetic

Pathetic? If you say so... if I was the one that started this post, I would flattered if someone said that it was a rip off of someone as great as Rober Kiyosake! Duplication of success, mindset, and unsterstanding of finances. As Robert Kiyosake said "if you want to be rich, do what the rich do." Simple as that. So is it a rip off.. I dont know, but if it is, its the complete opposite of being pathetic. If one were to say that what I just explained was pathetic, or how I copy successfull people and what they say... if thats pathetic, then I'm damn proud to be pathetic... because being "pathetic" has gotten the income that I have.

Now I cant speak for STR8UP, but I would like to think that I can understand and relate to where he is comming from.... and after explaining my view, I'm sure you are a very bright person and see it too.

 

[diplomatic_lies]

By the way, I found some post on a property investment board which probably sums anything related to wealth, and any kind of sucess in fact, quite well.

That quote alone changed my entire perspective on life, more than any book I have read.


Quote:
"Its the fisherman who can stand there, with baited hook, who keeps recasting, who has the determination to stay on the shoreline till they catch a fish, who keeps watching the water , the tides, the flocks of birds overhead, the person who is really trying to read the signs of where the fish are...that is the succesfull fisherman, they will eventually catch a fish, and they will eventually get very good at it."

 

[STR8UP]

Good quote diplomat.

If I only had the patience for fishing that I have for investing I might actually bring dinner home, lol.

this post is a complete lame rip off, from rich dad poor dad, just pathetic

I knew the same stuff in RDPD long before I read the book kid.

To be honest with you, I didn't really learn anything from the book. The reason I found it so inspiring was that it was confirmation that someone else out there has the same mindset as I do. That's a HUGE pat on the back when you are still building your portfolio but haven't yet reaped the rewards. It gives you the strength to move forward.

Listen up everyone.

There are only a few different kinds of people when it comes to building wealth. The first one is this guy posting about how what I say is a ripoff, how the only real way to get rich is to work hard for it and all the other crap the clueless masses propogate for lack of knowing better. These people never get ahead and will die poor.

Then there are those who might perk up a bit when they are taught some of this info, maybe they take away a couple of points that help them and that's about it. They aren't stupid enough to criticise something they know nothing about, but at the same time they might lack the motivation to dedicate their life to it and go into it full force.

Then you have the last group of people, the smallest group of all. They realize that there are indeed SOME people out there that seem to be abel to make money no matter what they do. They realize that it isn't LUCK or EDUCATION (in the conventional sense) that gives these seemingly superhuman wealth builders the edge, it is something more. Something that CAN BE LEARNED BY ANYONE. And they take the initiative to find out WHAT IT IS that makes some people seem to be so good at attracting money when others seem to be wearing money repellant.

It is estimated that only 5% of the population falls into this category. I know I personally "get it"- I'm in the group. I know I will be living in a posh highrise and traveling the world within the next five years.

If someone wants to legitimately debate any of my points I'd love nothing more. But anyone who wants to be a member of the first group of people I mentioned please feel free to not clog up this thread with pointless drivel. Some people around here WANT to learn something.

 

[PowerEgo]

Originally posted by STR8UP
It is estimated that only 5% of the population falls into this category. I know I personally "get it"- I'm in the group. I know I will be living in a posh highrise and traveling the world within the next five years.

I dont think 5% of population is in this category, actually, maybe around 15% 'get it' but only 5% ACT

-powerego

 

[Kaizen]

I'll be first to debate one of your statements. 5% is probably a little too modest. As generation X is growing and becoming older, it seems as if the percentages are becoming more and more grim. I hate to think this, but I feel that it is already, and will become much more depressing than 5%.

PowerEgo, in my opinion, if the other 10% of the 15% that you mentioned "get it" but dont act, then they dont truely "get it" otherwise they would act. So they havent quite "gotten it", but are getting there I hope I made sence. Agree or disagree, but that is just how I feel.

Something that I tell the people that in my trainings is "knowledge is NOT power... but knowledge put into use is power. If knowledge is power, then you would see libraries taking over the world, but we dont see that happening, now do we."

 

[PowerEgo]

maybe