Monday, January 27, 2014

Dr. Dennis Kimbro Interview: Black Millionaire Success Secrets

Saturday, January 18, 2014

Rules of the Rich People and Millionaires and how to be a millionaire

I recently ran across this article entitled 21 Ways Rich People Think Differently Than Average People based on a book called How Rich People Think. I was immediately struck by the similarities between the writing on Bold and Determined and the thoughts of the rich elite. The 21 rules of the rich are in bold and my thoughts are underneath.

1) Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

Average fellas are SCARED of money. You read that correctly. FEAR of money. You’ll hear average fellas say things like “I would never try and make money from this. I would never do this just for money” etc. Like money is AIDS and they would never try and get it. Everyone needs money because money is freedom. This fear of money is a one-way ticket to average town. Everyone needs money, there is no damn reason to make excuses or justify it or be afraid of it. I want money. This is how I make my money. Deal with it. Don’t be ashamed of your need or want for money. Get out there and take it and leave the excuses for average Joe.

2) Average people think selfishness is a vice. Rich people think selfishness is a virtue.

Everyone is selfish, but there are two types of selfishness: overt selfishness and covert selfishness. You want to be OVERTLY selfish. Covert selfishness is for chicken shits. When you come right out and say “I want it my way and I’ll have it my way” you will get what you want. When you play the covertly selfish guy, also known as nice guy syndrome, you are only going to get shit on. Nice guys aren’t nice guys, they’re chicken shits. They want the same thing overtly selfish guys want, money and women, but they’re too scared to come right out and demand it so they play nice and hope they’ll be able to manipulate that outcome. But it won’t happen, it’ll never happen. You want it? Take it. You want to eat shit? Play the nice guy game.

3) Average people have a lottery mentality. Rich people have an action mentality.

I hear these losers all the time, “if I could just win the lottery. If I could just get a chance. If my big break would come in” and blah blah blah. I don’t expect anything to be given to me. If I want it you can be damn sure I’ll go and get it. Play your stupid lottery, sit on your stupid couch in front of your stupid tv, and make your stupid excuses. Someone else is out there kicking ass and taking what is rightfully his.

4) Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

Universities are leftist indoctrination facilities. And they are full of deluded morons. You must educate yourself. Any damn thing you want to learn about you can learn about. You don’t need to spend time in women’s studies to learn it. Every damn thing is on the internet, for free. If you want to learn about it the only thing stopping you is you. I will say it again and again: Everything you learn in college is useless if you want to be an entrepreneur and it’s up to YOU to learn your craft.

5) Average people long for the good old days. Rich people dream of the future.

Some people call it planning for the future, I like to call it visualization. Visualize the future and how you will be. Actually see yourself as you wish to be. The things we think tend to become reality (assuming you aren’t a delusional narcissist).

“Things used to be so great, but nowadays….” Forget that nonsense and mold your future the way you want it.

6) Average people see money through the eyes of emotion. Rich people think about money logically.

Money is like an extra emotion to poor people. They always have “money problems” and they’re always whining about it. For some damn reason they can’t ever have enough to pay rent and the car payment and the damn electric bill. I have been poor many times but I’ve never been so poor I couldn’t pay my bills and I’ve never been so poor I cried about it. Forget about money as emotion, it’s just a damn game making money. Think about it like you think about your next 15 chess moves. Don’t be like these idiots living paycheck to paycheck and never having enough. Here’s a simple solution: If you’re poor…..DOWNSIZE!

…and then get to work, plan ahead, and quit spending your money on nonsense.

7) Average people earn money doing things they don’t love. Rich people follow their passion.

I don’t like the word passion, that’s a word for women’s romance novels, the correct word is obsession. Rich people follow their obsessions to the edge of the earth and beyond. Average people can’t understand this because their obsession stops at their favorite sports team or tv show or smoking pot or some other nonsense. 4 Hour Work Week is a cool little motivational book but you can’t take the title literally. If you’re going to find success in your field you are going to spend every waking minute thinking about it, you will have to be obsessed. Forget relaxing, forget taking a break, just give in to the obsession.

8) Average people set low expectations so they’re never disappointed. Rich people are up for the challenge.

“Hey man, don’t worry about it. It’s no big deal. You expect too much. Let’s just watch the game!“

I have no time for this type of person. How any man could live his life so pathetically free of any and all challenge is beyond me. You get the same types in the gym. Type A is afraid to exert any real energy and Type B will go all the way. Type B will have the physique to show for it.

9) Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

“What do I have to do to get rich?“

“Be the type of motherfucker that gets rich“.

Be a damn killer and go get it.

10) Average people believe you need money to make money. Rich people use other people’s money.

I’ll tell you boys, I made my first money using NONE of my own money. Not a penny. Where there’s a will, there’s a way. If you want it bad enough, as in you are obsessed with it, you will get it. Even if you only have $12 to your name, makes no difference.

“I can’t make money because I don’t have any money“. Sounds pretty stupid doesn’t it?

“I have to make money because I don’t have any money” sounds much better.

11) Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

I have no time for these people who constantly talk about logic and strategy. “I like logic. I deal with things logically.” Logic is only one part of the picture. If you look at everything logically you aren’t looking at the big picture and I’ll tell you why. Most people in the world do not think logically, they think emotionally. When you speak to them logically you are not getting through to them.

Most people in the world are dummies and they don’t think logically, they can’t think logically. But these “I’m so logical” types always assume that everyone else also thinks “logically”. If you think they think logically you are thinking like a dummy.  Not everyone thinks like you, in fact most people don’t even think. They just react. They’re idiots and shouldn’t be treated like they are masterful logicians, and they shouldn’t even be assumed to understand logic. Logical thinking is only half the the puzzle.

12) Average people live beyond their means. Rich people live below theirs.

Again, these people can’t pay their phone bills at the end of the month. Live like a Spartan. Have money leftover. Hell, I live like a king and I barely spend any money. I’m able to live very well because of a little word called Geo-Arbitrage. Make money in dollars, spend in baht and I want for nothing. My monthly expense are bare minimum. Few bucks in rent for my high rise condo with pool view, few bucks for water and electric, few bucks for internet, few bucks for gym membership, few bucks for my maid, and a few bucks to run my websites. Easy, spartan, simple and clean. If need be, all those expenses can be reduced even further. I spend less money to live on now than I use to spend on just my mortgage.

13) Average people teach their children how to survive. Rich people teach their kids to get rich.

I had average parents who taught me how to be average. They didn’t know anything about making money but they sure were adamant that college and a full time job and saving for retirement was the answer. I wasted years following that stupidity. For most of my life I’ve been a fool, and a lot of you probably have too. But it’s not too late to wake up and start kicking ass instead of licking ass.

14) Average people let money stress them out. Rich people find peace of mind in wealth.

Money is freedom, baby. I can’t say this enough. Money buys you freedom. If you have money you don’t have to take orders. When you have money you have the pleasure of saying my favorite word, “no”. I do anything I want any time I want. I don’t ask permission.

15) Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

Television, magazines, celebrity websites, sports – the mark of the average. If you can’t learn or earn from it, burn it.

16) Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

Rich people are different. After you’ve made it why would you ever want to go and hang out with losers who are jealous of you? Average people cannot hide their envy and jealousy. I have seen this look in their eyes, up close and personal, it is the most pathetic look I have ever seen and the most hateful look I have ever seen. They made the poor decision to go and waste their life at a job and now you’re demon because you are free and have money. You took the time to educate yourself, you took the time to make your own money, you took the chance, you did all the work and they look at you like you got lucky and they have the gall to get enviously angry at you. It has often been noted that you end up exactly like the people you hang out with, so say goodbye to the losers, be elitist and hang out with the winners.

17) Average people focus on saving. Rich people focus on earning.

How many people have told you of the wonderful benefits of saving for retirement and how you can finally live like a king when you’re 65? None of those people seemed to be living large, though. Weird, huh? Can it be that they have no clue what they’re yammering about? I choose to live like a king right now, I’m too selfish and impatient to wait. To afford my lifestyle I had to quit my damn job and focus on earning. And it was the best decision I ever made.

18) Average people play it safe with money. Rich people know when to take risks.

What I have found is that when I take big risks, the kind of risks that give me nausea, diarrhea and anxiety for days, they tend to payoff for me. For some damn reason I have been able to risk my money many times and have always made it back plus some extra. It has always been when I didn’t take a risk, when I chose to hang on to the money I had, that I burned through it and was left broke. You can never, ever make it without risking something.

19)  People love to be comfortable. Rich people find comfort in uncertainty.

Average people don’t want to do any damn thing except eat snacks and watch tv. Wasting your days at a 9-5 and wasting your nights in front of the tv on a La-z-boy recliner with a bag of chips is comfortable for some, I guess, but it always made me miserable. Personally, I hate relaxing. It’s such a damn waste of time.

20) Average people never make the connection between money and health. Rich people know money can save your life.

“Well, at least I have my health“.

This saying always makes me laugh a little. What they are really saying is “my life is terrible….but at least I’m alive“. I’d rather be dead than be 65 years old and living on social security and medicare. I’d rather be dead than be old and living on a fixed income and relying on the government to give me my “pills”.

Not only does money give you piece of mind, which can save your damn life from high blood pressure and stress, but it also buys the best medical care and the best drugs.

21) Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

Average people are excuse-makers. “I chose to have a family instead of going into business“. Bullshit, you chose mediocrity because you’re mediocre. Lie to yourself all you want, but I can see through those lies a mile away. If you were driven and not a liar you would let your family motivate you to give them a better life. A family isn’t a burden or an obstacle in making money, it’s an excuse to be lazy and coast at a job. Rich people demand more out of life, and they get it. Demand more, especially from yourself, and your quality of life will go up. Demand more from your personal relationships and you will get more. Demand more from your business partners and you will get more. If they don’t want to play ball then fuck ‘em, find others who want to play. It’s a big world out there and there is plenty for your taking. Be a man and take it.

source

Sunday, January 12, 2014

Become a Real Estate Millionaire



 Why buy-to-let property is a low risk investment producing exceptional returns.

Conventional knowledge dictates that high risk investments will produce high returns, and similarly, low risk investments will yield low returns. Dr Koos du Toit, CEO of P3 Investment Group explains why this adage does not hold true when it comes to buy-to-let property, a low risk investment producing exceptional returns. While it is certainly true that no investment is without risk, some investments are less risky than others. For example, an investment in equities is riskier than an investment in bonds. Traditionally, higher risk investments are associated with higher returns, while lower risk investments generally produce lower returns. The reason for this is simple: No one will invest in a high risk investment vehicle - with a significant possibility that you might lose your money - unless a promise of a high return is attached to it - a possibility that you could make a lot of money. Unfortunately, high risk does not guarantee a high return - it only provides a possibility that you could make a lot of money, with far less emphasis on the fact that you might not… and that you might actually lose your money. There is another issue that few investors understand: low returns are a significant risk! "The so-called 'low risk' investments should actually be called "low return" investments, because they do not pose a low risk. In fact, low returns a pose a massive risk for investors: the risk that the investment returns will not at least keep up with inflation - eroding their capital," comments Dr Koos du Toit, CEO of P3 Investment Group.

"If you are not at the very least beating inflation, what is the point of investing? You may as well stash your hard-earned money under your mattress, where it is at least safe from volatile markets, inept asset managers and high asset management and advisor fees." But there is one investment - buy-to-let property - that is truly low risk, and yet produces high returns, if done properly. Dr du Toit provides the following facts to support P3 Investment Group's assertion that buy-to-let property is a low risk investment. Why buy-to-let property is a low risk investment

 * The investor's personal out-of-pocket investment is much less than in the case of traditional investments. A R500 000 investment in shares would cost R500 000 out-of-pocket. But because a bank will provide a loan to buy the property, and the tenant's rental will subsidise the bond repayments, an investor can buy a R500 000 property for as little as R100 000 out-of-pocket investment - this would include a deposit and other fees related to buying the property, as well as the monthly shortfall between the rental and the bond repayments and other monthly property expenses, spread over a number of years - not required upfront.

 * If the property is bought in a good area and at a good price, it is highly unlikely that an investor would be unable to recover the investment by selling the property, since capital appreciation will ensure the value of the property rises steadily over time. Of course, the property could be destroyed by fire or earthquake, but insurance against these risks are compulsory to obtain a bond.

* Tenants may default on the rental, or damage the property, but both rental insurance and property damage insurance, as well as rental management and property management services, are widely and affordably available.

 * Annual rental escalations are standard in the industry and included in all rental agreements, which provides a built-in hedge against inflation.

* An investor might make a poor buying or management decisions, but property investment experts, such as P3 Investment Group, provides not only pre-screened and pre-selected properties to mitigate this risk, but also training, a proven selection system with state-of-the-art software, access to management experts and even a personal mentor to guide investors. But does buy-to-let property offer high returns? "If the return on investment calculation is done correctly, the returns produced by buy-to-let property is nothing short of spectacular," says Dr du Toit. "The returns are often erroneously calculated on the value of the property. But, unlike a R500 000 out-of-pocket investment in shares, the investment in a buy-to-let property worth R500 000 is not R500 000 out-of-pocket, but can be as little as R100 000, as explained above. If the returns are correctly calculated on the actual out-of-pocket investment R100 000 over a number of years, a good buy-to-let property investment can yield returns of as high as 70% per annum, and this return grows exponentially the longer the property is held by the investor. In fact, buy-to-let property can produce infinite returns if it is bought in the right structure, which will allow it to continue producing an inflation-linked income for generations beyond the investor's lifetime." "Given the high risk presented by both high risk and 'low risk' traditional investment vehicles in a volatile market, buy-to-let property as an investment alternative is certainly worth investigating," concludes Dr du Toit. "The P3 Investment Group has already helped thousand of ordinary South Africans to protect their hard-earned money by educating them about property investment as low risk alternative and empowering them to take control of their own investments with an investment vehicle that can produce not just high - but infinite returns - without the risk." * This article was prepared by P3 Investment Group. The views expressed above are their own. If you wish to contribute to Moneyweb's blog email: copy@moneyweb.co.za

Monday, January 6, 2014

How To Be A Millionaire


How To Be A Millionaire 

There’s no real practical reason to ask “who wants to be a millionaire?” because the only people who won’t put their hand up are religious types who’ve taken vows of poverty and those who are already multi-millionaires. Unfortunately, there’s a big gulf between those who want it and those who do the things to make it happen. (For related reading, see 5 Easy Steps To Becoming A Millionaire.)  

  Based on recent statistics on U.S. household income, millionaire-dom is not something that’s going to happen for most people, even with the dubious benefits of inflation. A household earning the median level of income (approximately 50K) and saving an impressive 20% of that would need almost 100 years to save $1 million (excluding taxes and investment gains). It’s pretty clear, then, that a would-be millionaire has to think outside the boundaries of “median” experience. Start a Business There are certainly people who can become millionaires by working for other people, but this is not an especially good route to choose. The trouble with trying to become a millionaire by working for other people is that there are always other people siphoning off the value of whatever you produce. Say you’re a hotshot salesman – although you’re going to get your cut, a lot of the value you create is going to get split among a broader pool of workers, managers and the owner(s) of the business. Start your own business, though, and you get to decide how to divide that pie. Better still, your ownership stake can become more and more valuable over time as that business becomes larger and larger. While a good employee may get raises and promotions as his or her employer grows, they’ll never see the same benefits (including the tax-free appreciation in the value of the ownership interest) as the owners. (To learn more about starting a business, read Business Startup Costs: It’s In The Details.) Use Other People’s Money One of the remarkably consistent features of stories about people who go from relatively no wealth to major wealth is the role of other people’s money in making it happen. Sometimes it’s start-up capital from a generous relative, or maybe it’s a small business loan or venture capital. Borrowed money can be a major force multiplier. Behind virtually every real estate empire is borrowed money and the use of leverage in investing (whether through buying stocks on margin, buying options or buying futures) can rapidly magnify a skillful investor’s success. Of course, this cuts both ways – just as borrowed money can create a large business (or portfolio) quickly, just one mistake in an over-leveraged enterprise can bring the whole thing crashing down. It comes down, then, to risk tolerance. Those who really want to build large wealth (and do so quickly) through business or investment will have to do so in part with other people’s money. Cultivate a Valued Skill Wages respond to supply and demand just like everything else, so it is very important to cultivate a skill that is not only in demand, but scarce enough to be valuable. Architecture and law, for instance, are both specialized skills, but not necessarily rare enough to make their practitioners wealthy unless they are at the high end of their profession. Sports is an obvious example, but most people know in their teens whether they have the rare physical gifts (and perhaps the even rarer mental discipline and dedication) to open the doors to a professional sports career, and it’s not really a door that can be opened in college or later. Medicine and engineering, though, are both open to college-aged people who have the requisite abilities and the willingness to put in the effort. The services of these professionals is not only almost always in demand, but the supply is small enough that professionals here can fairly expect to become millionaires on the basis of their labors. This is also true for unconventional skills as well. Pursuing a career as a writer, actor or professional gambler is a virtual guarantee of poverty for most people. For those who actually have the skills necessary to succeed, though, it can be their best chance of building real wealth. (For more information, check out Hot, High-Paying Career Sectors.) Out-Think or Out-Hustle Lazy and self-made millionaire just don’t go together. Hearkening back to that supply-demand equation, anything that’s relatively easy, convenient and accessible is going to have ample supply and relatively low payouts. Since most people don’t actually want to work that hard, though, there are real wealth-creation opportunities out there for those willing to think and/or work just a little harder than average. One option for building exceptional wealth is to out-think the majority of people out there. While endeavors like writing, investing and inventing all involve a tremendous amount of effort and dedication, there is at least some aspect of out-thinking to them all. Steve Jobs of Apple, Herb Kelleher of Southwest and Alfred Mann of MannKind all clearly worked hard to achieve success, but a lot of that success was predicated on seeing things that others didn’t see and figuring out how to do them even better. Out-hustling is an undervalued aspect of wealth creation. Success in business is often about the hustle – the willingness to make one more call or work an extra hour later. The field of “hustle” is wide, rich and fertile. You can make good money visiting estate sales and reselling undervalued items, just as you can make good money from a variety of multi-level marketing programs. The question is whether you want to spend the hours it takes to drive the process forward. Rental real estate is a good example. It is actually not all that difficult to find rental properties, buy them and rent them out. Do this well and it’s fairly easy to earn an annual return of 8-15%. The problem is that there are a myriad of small annoyances that go with it – hassles in haggling over the purchase price, hassles in getting mortgages, hassles in getting tenants, hassles in dealing with tenants and so on. Some people just don’t want to be bothered with this, but those who don’t mind the annoyances can reap the rewards. The Bottom Line Having $1 million or more in net worth is still uncommon enough to be special and significant, and it doesn’t often come as a byproduct of luck or chance. Hard work is a virtual requisite, but so too is a willingness to take on some risk (such as starting a business or using leverage) or cultivate a rare gift (like writing or inventing). Although simple living and sound investing will help anyone build more wealth, a special level of success requires a special person who is willing to do more and risk more than most people. (For additional reading, check out 6 Millionaire Traits That You Can Adopt)