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Articles > Finally, The Whole Secret to
Making Serious Money |
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Finally, The Whole Secret to Making Serious
Money is Revealed
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Let me tell up how I think
about making money ... serious money ... say, $7
million in 7 years:
Making that sort of money - for most of us who don't
inherit, win, steal, speculate, gamble our way to
that much cash - is a long journey. It's not so bad
when you consider that 99% of people can't SAVE
their way to $1,000,000 in 20 years but, my point is
that it's still a journey that takes quite some
time.
So, if you were to go on a long journey (besides a
toothbrush!) what would you need?
Three things:
1. A destination
You would need to know where you're going for a
short, local journey, you probably need an address.
For a long, global-scale journey, a country and city
would be a nice start.
2. A map and compass
If it's a local journey, you will probably need a
street map. Athough, very simple instructions from
somebody who knows the way will probably do.
But, if it's a global-scale journey, the trip will
most likely be broken down into stages for you by
your travel agent, and you will need a series of
'planes, trains, automobiles' maps, telling you how
to get from HERE to THERE.
Also, it would be a good idea to have a compass to
tell which way is UP when you read the maps!
3. The Rules of the Road
Now, it would be nice to get to where you're going
without being arrested. If it's a local journey, you
can probably use common sense (although, it's still
best not to jaywalk).
But, if it's a global scale journey, the rules may
be totally different at different stages of the
journey (you DO know that the English drive on the
other side of the road, don't you?).
Well, making money is a journey as well and you need
three things:
1. A destination
When it comes to money, your destination is in two
parts (a) HOW MUCH you need, and (b) WHEN you need
it. The when is usually in terms of WHEN you stop
working, but it need not be; and the HOW MUCH is
determined by how well you want to live when you get
there (1 star? 5 star? In between?).
2. A map and compass
Your map will be the three stages of your financial
journey (getting debt free and starting a savings
plan; ramping up both your income and your
investments; keeping your money once you get
wherever 'there' is for you) and we will cover that
over the coming weeks.
Your compass will be your Investment Net Worth
(we'll discuss the difference between this and your
ordinary, old 'net worth' later this week).
3. The Rules of the Road
Like every good 'rule book' the Rules of the Finance
'road' is a thick one! An example of a Financial
Rule is the 20% rule of investing in your own home.
This 'rule' says to NEVER have more than 20% of your
Net Worth tied up in your own home - add another 5%
to cover your car and other 'stuff' that you may
own, this is another way of saying: ALWAYS have at
least 75% of your Net Worth in investments IF you
want to get rich and stay rich! There are many, many
more. By learning them, you can shave YEARS off the
time it takes you to get rich.
There's one other thing that most people need when
they are traveling, and that is a good 'tour guide'
... when it comes to making money. Find a mentor or
guide who is willing and able to show you how!
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Adrian J Cartwood
http://7million7years.com Who says that
how to make money should be kept a secret? Read the
7million7years.com blog to find out how ... no scams
or schemes, just good old-fashioned FREE advice! |
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It's choice,
not chance,
that determines
your destiny.
Jean Nidetch |
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