How To Start Investing For Financial Independence, Part 1.Written by Chris Anderson, PhD
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Now let’s say after you did your analysis, looked at what had happened in past, looked at why you thought more and more people would want this property, etc., you decide that you think this property will average 20%/Yr escalation over next 2 years. MORE IMPORTANTLY, you decide that barring a major meltdown in market, you think there is little chance that you can’t at least break even after 2 years. So if you end up being right about growth, then you might net a tidy $43,000 (before taxes) or so after everything is considered. After long term capital gains at 15% let’s say, then you just picked up about $36,000 of “market’s money”. That is money that if you take a loss on next investment will not be nearly as painful as if you lost your original money. When you combine this with your original investment amount, you now have around $55,000 of operating capital for step 2. Realistically, you cannot predict how much you will make from investment. When I invest, I try to establish in my mind what is reasonable. Frequently, I have been surprised to positive and made much more than expected. Sometimes I have made less. The key being to put yourself in a low risk situation where you have a strong reason to believe market will go in your favor. To accomplish this first step, let’s look at what you really had to do: 1) Had to be willing to put $$ in harm’s way; 2) Had to educate yourself enough to evaluate risk and opportunity; 3) Had to find opportunity or be in a position to have opportunity presented to them; 4) Had to act. I would like to comment on education side. As a former professor, I have seen very smart people spend 1,000’s of hours and 10,000’s of thousands of dollars educating themselves to “earn a living”; this is a great move in many cases. On other side, I have seen very smart people who want investing to be a major source of income but will not spend any time or any money educating themselves. To me, this is a recipe for disaster. By time we finish this series, you will see that with a few simple steps, implemented over time, many people can easily produce more money than from their regular job. Furthermore, many people will put 100’s of thousands of dollars at risk but know almost nothing about what they are doing. If you chose path of making your investment dollars grow steadily with time, I hope this does not end up describing you. ** Footnote: If you are not yet at that level, here is what I suggest. First, read Michael Masterson’s book called “Automatic Wealth”. This is an excellent book on how to rapidly change your financial position while staying employed. Next, I would read Van Tharp’s new book called “Safe Paths To Financial Freedom”. Van uses a very different thought process from many and so adds a great deal of rounding. Like anything else, you will not agree with everything written in these books but they provide some great thought processes. When you have some capital and are cash flow positive, them come back and revisit this article.
Dr. Chris Anderson is a leading authority on real estate investing and has been referenced in many venues including the New York Times and USA Today. Free sign up at GetPreconstructionDeals.com for education and articles. Visit Mastermind Group for world class investing projects.
| | How to Help the unbanked Save MoneyWritten by Ethel Robinson
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The prepaid debit card can be gotten at a bank, but how can you get it at a bank it you can't get a checking or a saving account. Many consumers are locked out when it comes to ordering online, from TV, or some other businesses. Many businesses only accept credit or debit cards. The prepaid card can be gotten online with a check or money order . The prepaid card can also be used for people who have checking or savings accounts. Most bank debit card is attached to a saving or checking account, leaving account holder open to fraud. An unknown person can get account number and withdraw funds without your knowledge. Having a prepaid or debit card can eliminates this threat. With prepaid or debit card, only amount of money on card is subject to loss. This card can also help one stay on a budget and lower credit card debt. Parents, this card is great for college students. With two cards you can keep an eye on how your child is spending cash you are sending via transfer to put on card for college expenses. There is an online statement of all transactions. Or you can make a call to get it. What a great way to save money and but this on card for vacation. Add to card little by little or save and add at one time. Keep saving pennies, nickels and dimes. They will pay in a great vacation. Make your hotel and rental car reservations. Not only can this card but used for above situations, they also can be used for following: customers with bankruptcies, county court judgments, defaults, a low credit score, are unemployed, payment privacy and income support or benefit. Not only do this cards help save money, some also give a person a chance to earn money in their own business. Ethel Robinson has an online business. www.directpaycash.com/go/visabiz4us
Ethel Robinson has successfully ran a mortgage business for several years. She now is focused on helping others increase their knowledge in financial matters.
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