Monday, July 30, 2007

The Ideal Cycle


Wouldn't it be better to be able to travel the world, live luxuriously, have free time, send your kids to the best schools, live in the best houses, provide jobs and housing for others, and at the end of the day, decide whether, or not, you really want to go to work?

I adopted some of the ideas from the book, "Cashflow Quadrant," and essentially I made a diagram of the ideal pattern of investing. (Yes, and I drew that diagram.) So bam, one invests four to six years in a a college. After leaving college, people are usually financially drained and /or desperate for work. In order to feed theirself, habits, and investments many believe a job is neccesary. (And, it is.) Then the excuses come along. (":Oh, the bills, the children, the racism, the economy,... yadda, yadda yadda.. ") Ridiculous.


-This is America; the easiest country to get rich in.

LEAVING A JOB..
In my opinion, building businesses are often the easiest way to ensure a steady income flow outside of a normal job. Statistics prove that -1 out of 5 businesses lasts five years. That's pretty fascinating that we have such an opportunity.. You can't even imagine how much lower success rates are outside of America--where redtape is high, and government is big.

Author Robert Kiyosaki says after those first five years, as a business owner, most businesses die off due to a lack of motivation of the owner. Therefore 9 out of 10 fail. Sure, nine out of ten fail- so, that just means that you have to start ten businesses. But maybe you'll strike gold on the first one. Try starting three businesses a year until you make it.

If you start three businesses per year starting at age 25, you will have started 60 businesses by AGE 45!


In an unfavorable scenario, you will have six businesses with numbers that work. Therefore, it would be far safe to say that a paycheck of $100,000 a year, from each, is fairly possible. (6 X 100,000+ $600,000/ year).

Take this money and invest it as you please. Only an average return investment on Wall Street, like a mutual fund, will double your principle in only six years (150,000 X2+$300,000)! In real estate, rather than splurging the money on single family homes, invest in multi-family apartment buildings or motels. Many investors can't buy a $2 million, 13 unit building upright with 100% cash down- but you can! The numbers will work tremendously well and you will be well on you way to extreme wealth.

No comments: