Definition of Investing

Warren Buffet defines investing as the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power -- after taxes have been paid on nominal gains -- in the future. More succinctly, investing is forgoing consumption now in order to have the ability to consume more at a later date.

Seven Secrets of Self-Made Multimillionaires [By Grant Cardone | Entrepreneur – Thu, Feb 2, 2012 10:00 PM SGT]

First, understand that you no longer want to be just a millionaire. You want to become amultimillionaire.

While you may think a million dollars will give you financial security, it will not. Given the volatility in economies, governments and financial markets around the world, it's no longer safe to assume a million dollars will provide you and your family with true security. In fact, a Fidelity Investments' study of millionaires last year found that 42 percent of them don't feel wealthy and they would need $7.5 million of investable assets to start feeling rich.

This isn't a how-to on the accumulation of wealth from a lifetime of saving and pinching pennies. This is about generating multimillion-dollar wealth and enjoying it during the creation process. To get started, consider these seven secrets of multimillionaires.

No. 1: Decide to Be a Multimillionaire -- You first have to decide you want to be a self-made millionaire. I went from nothing—no money, just ideas and a lot of hard work—to create a net worth that probably cannot be destroyed in my lifetime. The first step was making a decision and setting a target. Every day for years, I wrote down this statement: "I am worth over $100,000,000!"

No. 2: Get Rid of Poverty Thinking - There's no shortage of money on planet Earth, only a shortage of people who think correctly about it. To become a millionaire from scratch, you must end the poverty thinking. I know because I had to. I was raised by a single mother who did everything possible to put three boys through school and make ends meets. Many of the lessons she taught me encouraged a sense of scarcity and fear: "Eat all your food; there are people starving," "Don't waste anything," "Money doesn't grow on trees." Real wealth and abundance aren't created from such thinking. 

No. 3: Treat it Like a Duty - Self-made multimillionaires are motivated not just by money, but by a need for the marketplace to validate their contributions. While I have always wanted wealth, I was driven more by my need to contribute consistent with my potential. Multimillionaires don't lower their targets when things get tough. Rather, they raise expectations for themselves because they see the difference they can make with their families, company, community and charities. 

No. 4: Surround Yourself with Multimillionaires - I have been studying wealthy people since I was 10 years old. I read their stories and see what they went through. These are my mentors and teachers who inspire me. You can't learn how to make money from someone who doesn't have much. Who says, "Money won't make you happy"? People without money. Who says, "All rich people are greedy"? People who aren't rich. Wealthy people don't talk like that. You need to know what people are doing to create wealth and follow their example: What do they read? How do they invest? What drives them? How do they stay motivated and excited? 

No. 5: Work Like a Millionaire - Rich people treat time differently. They buy it, while poor people sell it. The wealthy know time is more valuable than money itself, so they hire people for things they're not good at or aren't a productive use of their time, such as household chores. But don't kid yourself that those who hit it big don't work hard. Financially successful people are consumed by their hunt for success and work to the point that they feel they are winning and not just working. 

No. 6: Shift Focus from Spending to Investing - The rich don't spend money; they invest. They know the U.S. tax laws favor investing over spending. You buy a house and can't write it off. The rich, in contrast, buy an apartment building that produces cash flow, appreciates and offers write-offs year after year. You buy cars for comfort and style. The rich buy cars for their company that are deductible because they are used to produce revenue.

No. 7: Create Multiple Flows of Income - The really rich never depend on one flow of income but instead create a number of revenue streams. My first business had been generating a seven-figure income for years when I started investing cash in multifamily real estate. Once my real estate and my consulting business were churning, I went into a third business developing software to help retailers improve the customer experience.
Lastly, you may be surprised to learn that wealthy people wish you were wealthy, too. It's a mystery to them why others don't get rich. They know they aren't special and that wealth is available to anyone who wants to focus and persist. Rich people want others to be rich for two reasons: first, so you can buy their products and services, and second, because they want to hang out with other rich people. Get rich -- it's American.

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Quick Tip: Learn from successful people

Be open to advice from others can help. After all, learning from another’s expensive mistake can help insure you don’t do the same.

Business success is finding the right business model!

"The key to success is working harder...for longer hours....until you finally make it"

You may've heard this advice before...but is it always true? Consider this. 

Dale Beaumont released 15 bestselling books in 2 years – something no other Australian author has accomplished.

This allowed him to make $1.2 million in business income by age 30.

Question: How did he crank out 15 best-selling books...in the same time most authors might get only one book done?

Answer: He worked strategically.

For each book in his 'Secrets Exposed' series he got a different expert to contribute each chapter.

So, instead of 1 person writing 15 books which might take 30 years...

He had over 120 experts write one chapter each...which took just a couple of years.

FACT: Up to 80% of business success is finding the right business model....just like Dale did.

Keys to success [by Billionaire Eric Sprott]

Be pragmatic
Think independently
Be bold
Search for opportunities

The Broken Window Fallacy

Silver And The Shift To Measuring Wealth In Ounces Instead Of Dollars [http://hubertmoolman.wordpress.com; Feb 2, 2012]

Quote of the week: Robert Kiyosaki

"Donald Trump thinks in billions and I think in millions. In order for me to become a billionaire…I had to expand my mind to think in billions." Robert Kiyosaki

SBSS 5. Infinite Money Finite World [Jan 27, 2012]

Understanding the Current M2 Money Supply

The Federal Reserve has one tool comprised of 3 separate functions which are all a mechanism to increase liquidity in the overall system. To express this liquidity, the following chart from the Fed shows the M2 money supply levels:

The 3 functions are the printing of currency, the monetization of U.S. Treasury debt (QE, QE2, QE2.5, Operation Twist), and exceptionally low interest rates (ZIRP) near 0 for an "extended period of time (2014)."

If central banks around the world continue to print money there are only a few places to hide. Precious metals and other commodities like oil will vastly outperform stocks in the long run if the Dollar continues to slide.

Chris Vermeulen [The Fed, the S&P 500, & Why Gold Is Shining Bright; January 27, 2012]

Are you feeling Intimidated? This can hold you back from achieving many things!

Any time you are too humbled to admit what you see in them is inside you and you are exaggerating what they have and minimizing what you have, you set yourself up for intimidation.

Road to wealth: Wealth cycle

Predicting the future...

"...... predicting the future is never easy. The best chance of getting it right results from having a clear understanding of the past, an understanding of the direction in which the most important factors are moving and the momentum with which they are moving. If a person has a good understanding of what the important factors are (credit/debt, government spending, paper money creation, globalization, income & income distribution, and technological change), their history and their momentum or force, then he or she will have a much better chance of understanding how those factors will shape the future." Richard Duncan [Author of The Dollar Crisis]

Quote of the week

"Money has never been important to us, but our freedom and the freedom for our children means everything!"
Philip & Lisa H. 

US NATIONAL DEBT [Peter Schiff U.S. is In Worse Shape Than Europe;FoxBusiness Jan 17, 2012]

"The crisis we are creating is going to be much bigger than the financial crisis of 2008; and if our leaders couldn't see that one coming it stands to reason that they're not going to see this one coming." Peter Schiff

Assets vs. Liabilities

Simplified:
Assets cashflow money into your pocket [income]
Liability takes money out from your pocket [expense]

Eg. A house you own can be both an Asset or a Liability depending on the key word CASHFLOW. If you are renting out your property and it is bringing CASHFLOW into your pocket every month, then it's an ASSET. If you are living in your property and have expenses related to the ownership of this property, flowing out each month, then it's a liability. This is an important differentiation and to be RICH you need to understand this.

Sharing a personal message from my mentor

Dear.........,

More than terrorism, more than natural disasters, the biggest fear most people have is outliving their money. Our natural reaction to any fear is to fight, flee or freeze. Financial fear often leads to paralysis - where you ignore your money problems and hope they will somehow go away.

Don't let fear cost you money.

Every day I am seeing increasing turbulence in the markets. "Playing it safe" by trusting others with your financial future is probably the riskiest thing you can do. People who used to dream of getting rich are now just hoping not to lose their home. Without financial education, you're at the mercy of the market.

Sincerely,

Mentor

How you look at MONEY

If you truly do not have a value on MONEY, then you will struggle with it your whole life.

When the WHY is big enough the HOW's take care of themselves, if you have a big enough reason for building wealth- you will!

1. What are the benefits of building a business that serves ever greater numbers of people. Money is a bi-product of services rendered.
2. Write down the benefits of polishing, refining and managing most effectively and efficiently that business to maximize profits. Work on the business and not just in the business.
3. You have to save the profits. If you don't have liquidity you have volatility. So you must have liquidity. If you have liquidity you don't have a survival mentality, you think about CREATIVITY. This is the importance of psychology of having a stable foundation to build an empire around it.
4. Write the benefits of investing in an ever progressive leverage and risk system.
5. Write the benefits of amassing a fortune.
6. Write down the benefits of creating a cause a financial cause that leaves a legacy.

From Dr John Demartini

Quick tip: We have a Body, we have a Mind and we have a Soul

The body must be guided by the Mind, Mind must be directed by the Soul, in order to maximize Human Potential!

"Most people, when they're not living fulfilled by their highest values, they're looking for immediate gratification which cost them their life, instead of long term vision that inspires them." Dr John Demartini

Quick tip: Overcome your FEAR

Decide on the path to financial freedom, get the financial education you need to succeed and take ACTION now!