Growing Wealth in 2016

To grow the wealth necessary to live the life of your dreams, you will need a mechanism to do so. It doesn’t matter if your dream is having luxuries beyond your wildest imagination or helping out family members or the local charity of your choice. You need the money and assets to help you accomplish your dreams and goals.

In this New Year, learning how to be wealthy in today’s economy is as much “art” as it is “science” – but both are learnable. It’s not a mystery, and the fact that it’s been repeated throughout history, over and over, in every culture testifies to the fact that yes, indeed, you can learn how to get rich. Sitting on your couch playing video games is probably not going to make you rich, but digging ditches for the next 50 years probably won’t either. So how can you become rich?

1.) Grow Wealth: Invest in Real Estate

This is my favorite way to get rich! Buying real estate has been one of the surest ways to get rich since before there was money. As you know everyone needs it and, as Mark Twain so eloquently stated, “they’re not making it anymore.” There are numerous paths to wealth in real estate, but it generally revolves around buying property that brings in more income than it costs to own, and holding on to that property until the prices go up.

You can start building your real estate empire right now by reading my book The Book On Investing:The Ultimate Guide for the Savvy Investor.

2.) Grow Wealth: Invest in the Stock Market

The stock market can be an incredible source of wealth for you and your family. There are a lot of different ways to invest in the stock market. From penny stocks to mutual funds to options and more – there is enough to easily make your head spin. If stocks are going to be your chosen path to getting rich – don’t simply throw your money at random companies. Take time to fully investigate the kind of investing you want to do and follow other investors within that niche to learn how they have made their fortunes.

3.) Grow Wealth: Start an Internet Business

Many internet entrepreneurs are building pretty substantial wealth through online websites and web companies. One of the most significant benefits for starting an online business is that barrier to entry is much lower, as you don’t need buildings, employees, merchandise, or other expensive items to begin – just a computer and some ingenuity. To find out more about starting or building and internet business go to My Biz Dream Team.

4.) Start a Traditional Business

Although a lot of the shopping in the world is moving online, brick and mortar businesses are still the cornerstone of our economic system. For example, you could move to an area where the economy is thriving (North Dakota) and start a business to serve the oil and gas workers in that area. Building wealth through a traditional business is built by selling either services or products to consumers or other businesses.

5.) Grow Wealth: Save Your Money

Finally, there is the good old fashion way to get rich: slowly. Save your money, each and every month, and you’ll grow wealthy just by principle. For example, if you make the average American salary, around $50,000 per year, and can live frugally to save half of your income – you could bury your cash under your mattress for 40 years and retire with a cool million bucks.

Or, if you took that money and invested in real estate, earning an average return of 12% per year, you could have $26,389,054.18 after 40 years. This is why I choose investing in real estate rather saving my way to riches.

Conclusion:

These are the top five ways that you can use to build wealth in today’s economy.

To learn how we are helping our clients achieve success by investing in real estate and in businesses, please join us at The Book On Investing. Also, if you are interested in investing in real estate, join us at RADAR Investments

Do You Want to Be Wealthy When You Grow Up?

“What do you want to be when you grow up?” is a question that you become accustomed to hearing as a child from adults. Many of us were annoyed by that question, but we admit that we have asked many children that question ourselves.

Today, let’s focus on you! Now that you are grown up, “What do you want to be?”

Do you want to be wealthy? Or are you worried about not being broke? If your focus is on not being broke, you will never be wealthy! By focusing on “not being broke” you attract “brokenness” into your life and all the negativity associated with it.

Research shows that you have over 60,000 thoughts a day and that 95% of them are the same thoughts that you had yesterday. 80% of those thoughts are negative—wealth robbing, happiness robbing thoughts. You must release those negative “brokenness” thoughts and replace them with positive “wealth building” thoughts. Then you can be what you want to be!

As you begin the New Year, think about the wealthy, abundant, and happy life that you want to live.

Conclusion
In The Savvy Investor Program™, we teach you how to create the life of your dreams. We can teach you wealth building tips that you can begin to use immediately! We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven wealth building strategies and techniques. Today, buy your copy of The Book on Investing.

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How the Wealthy Use Real Estate Investments to Buy Luxuries: Boys (and Girls) With Their “Toys”!

One of my wealthy business coaches taught me a four part formula for creating generational wealth. He said first, you need to build a business. Second, reinvest in your business. Third, invest in real estate. Fourth, buy luxuries.

The fourth part in the formula is what I am writing about today… using your real estate investments to buy your luxuries. Luxuries or “toys,” include cars, boats, trips or any non-asset that costs a considerable amount of money. I emphasize non-asset because if it’s not making you money, it is a non-asset.

Did you know that the average term of a new car note stretches out more than five years to 65 months? This is the longest average term ever reported. Seventeen percent of all new car loans in the fourth quarter of 2012 were actually between 73 and 84 months, and some notes stretched as long as 97 months. Just four years ago, only 11 percent of loans were in the 73-to-84 month category. Experts warned that long term car loans seriously present a heightened risk for consumers because it takes so long for consumers to reach a point where they owe less on the car than it is worth. Although “underwater” cars are pretty common and generally do not come with the emotional issues that underwater houses do, they still are extremely hard to trade or sell when you can no longer afford the payments.

Today, most mid-size sedans cost in the range of $20,000 to $30,000. The higher end luxury cars cost $40,000 and up to $80,000 or more. Now I know that there is nothing like driving a brand new car. The automobile is embedded into the American culture. Like most men my age, I like high end luxury sports automobiles. However, using the formula taught to me by my coach, I have learned to use my assets to purchase the “toys” that I want.

Instead of paying cash or financing a car like most people, just imagine taking your money and buying a house or commercial property either with cash or using the money as a down payment. You can then rent the house or lease the property and use the positive cash flow from the rent to finance your dream car. This way, you use the asset to pay for your “toy” while preserving your capital in the property. In addition, you get all the benefits of depreciation, appreciation, and tax savings on your real estate investment.

This is how wealthy people create and maintain wealth while living a life filled with luxurious “toys.” You too can let your business or your asset pay for your “toys”.

Conclusion
In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.

The Power of Leverage in Real Estate Investing: So Easy, A Cave Man Can Do It!

Leverage is a very simple principle in the physical world. You use one or more objects to multiply the force it takes to move a bigger object. For example, in the illustration above, with the right tools the smaller rock on one end can move the larger rocks on the other end. Using the principle of leverage, the cave man figured out how to move big boulders to provide shelter for his family. This was the start of civilization.

The Power of Financial Leverage in Real Estate Investing

Leverage in the financial world is very similar to leverage in the physical world. Instead of using a smaller rock to move a larger rock, you use a small amount of cash, in combination with debt, to make a much larger investment. Leverage has the effect of multiplying the return on investment. With a small initial equity (cash) investment, you gain control over a larger investment and you reap the returns on the larger investment.

Let’s look at a few examples. In the first example you purchase a $100,000 investment with $20,000 of equity and debt of $80,000. In the second example you purchase a $100,000 investment with $10,000 of equity and debt of $90,000. In these two examples, both have a 10% gain.

As you can see from the table, a gain of 10% generates a 50% return on equity with a 20% investment compared to a 100% return on equity from a 10% equity investment.

Using leverage can mean huge rewards for a real estate investor. Imagine you had $100,000 in an IRA, 401K account, or a savings account that was available for investment. You could use this capital as a 20% down payment on a $500,000 investment property. Assume the property appreciates at a moderate rate of 8% per year for three years. At the end of the three years the equity in the property has increased over $120,000, a return on equity of 120%. When was the last time your stock fund, savings account, or IRA performed like that?

Now, just imagine you could take the $220,000 above (initial $100,000 + $120,000) in equity and gained control of a $1,000,000 investment property. If the $1,000,000 investment property appreciates at the same 8% rate, the equity will grow by $80,000 per year. That’s power of leverage!

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From Coffee Cans and Mattresses to 401Ks: Where Do You Stash your Cash?

Where do you stash your cash? Are you one of the millions of Americans who is giving your hard earned money over to money managers charging exorbitant fees to invest in the stock market? Or, are you blindly pouring money into your 401K plan hoping that it keeps going up? Do you know what you are getting as a return on investment on your cash? Well, a recent article in CNN Money (http://economy.money.cnn.com/2013/03/22/american-householdwealth/) suggests that people are getting poorer while the investment companies and money managers who direct your 401K accounts are getting richer investing your money.

According to the article, which was based on recently released Census Bureau statistics, the median net worth of American households was $68,828 in 2011, down from $81,821 in 2000 (adjusting for inflation). Overall, median household net worth fell by $12,993, or 16 percent, between 2000 and 2011. Median household net worth showed no statistically significant change between 2010 and 2011.That means no growth for you.

The Census Bureau report also indicated that Americans are pouring money into retirement investment vehicles such as 401Ks in record amounts. In 2000, 30 percent of all wealth was held in the form of home equity. By 2011, this percentage had declined to 25 percent. At the same time, the share of wealth held in retirement accounts increased from 18 percent to 30 percent over the same period.

What does all of this mean? It means that the lack of financial education is costing you dearly. Are you like so many other Americans throwing all of their money into retirement accounts hoping that when you retire there will be enough there to cover your expenses? Meanwhile, the profits of the companies that you invest in are relativity flat. This sounds more like gambling than investing. It also means that we are way too dependent on the advice of others when it comes to our money. We need to take charge and learn how to manage our own financial destiny by investing in ourselves with good education and trusted investment coaches and mentors. We need to diversify our investments and know more about using self-directed IRA’s to invest in real estate, cash flowing entities, and financial instruments such as notes and liens.

Conclusion
In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.