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Showing posts with label Making Money Mentality. Show all posts
Showing posts with label Making Money Mentality. Show all posts

Tuesday, 16 February 2016

Planning for Success – 10 Rules for Achieving Your Goals + Bonus

Planning for Success  

It’s normal to fail a few times when you want to achieve something meaningful. When you fail all the time then there’s probably an underlying reason. When people set out to achieve something they underestimate the effectiveness of adequately planning for success

Most people just have a vague idea of what they want and a rough idea of how to do it. Most of the time, these people fail repeatedly and then blame other people for their failure. I get a lot of emails on The Millionaires Giving Money Forum asking for advice on success so I thought I would compile a list of traits to help people achieve their goals in life.

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Without a shadow of a doubt planning effectively improves to odds of success. Suppose two people want to become stock market traders, one man just jumps into trading while the other man takes a year to learn and follow the markets before he starts trading. 18 months later the first man takes his life while the second man becomes a multimillionaire. The latter more intelligent man has a greater probability for success. 

Without sounding too arrogant I’ve been successful at most things in life and one reason for this is my aptitude for planning for success. There are ten Rules that I adhere to whenever I want to achieve something big. I spend a significant number of hours perfecting my plan before I take any action. If you’re a person who has big plans but the results never materialize try to follow these rules to see if they make a difference to the end result.

 

Rule 1: Exactly Define Your Goal  

The first rule when planning for success is to know exactly what you want to achieve in life. If you have a vague idea of what you want then your results will be vague. If you have an exact definitive goal you will achieve exact definitive results. 

One of my previous goals was to earn $10,000 per month online and through other investments and enterprises. I then broke this goal into several smaller goals so I knew exactly what I would need to do. Just saying I want to earn $10k per month without exactly knowing how I was going to do it is like playing the lottery.   

Rule 2: List All the Tasks  

Once you’ve clearly defined your end goal the second rule when planning for success is to list all the steps that you need to take in order to achieve that goal. Suppose one of your goals was to become a professional blogger for a given subject. The steps you would take would be as follows  

1. Define the target market  
2. Analyse the competition  
3. Differentiate your style and delivery of content  
4. Place yourself in a niche with little competition  
5. Choose a word press blog design  
6. Add all the plug ins  
7. Add all the normal content such as Privacy Page and Disclosure Page  
Start adding content  
8. Monetise your site using Adsense  
9. Monetise your site using affiliate marketing  
10. Create a readership  

These are general steps that need to be taken, when I first started this blog I probably had 100 steps I needed to take so I could create something I was proud off. The more refined your plan the more likely it is you will succeed. The more general the plan the more general the results will be.  

Rule 3: Have Realistic Deadline  

Once you’ve listed all the tasks that are needed to achieve your end goal you will feel a sense of clarity and focus. You will know exactly what you have to do in order to get to where you want to be. The next rule when planning for success is having a realistic deadline. Don’t just say I’m going to earn $10k per month in 6 months because that’s like plucking figures right out of the air. 

Instead look at all the tasks and then give yourself realistic targets to get these done. Once you’ve worked out how long you need for each task you can aggregate the hours or days together to know exactly when you’ll achieve your end goal.  

Rule 4: Efficiency, Effectiveness and Economy  

Now you have all the tasks in front of you and you’ve got a deadline to complete the tasks the next rule when planning for success is to complete these tasks in the most efficient, effective and economic way. Whenever you’re faced with a task ask yourself what’s the most effective efficient way I can do this without wasting too much of MY time and MY resources?   

Suppose one of your task was to create logo for your blog. You could either attempt something yourself or you could have it done professionally. The professional logo would be more effective, efficient and economic as you’re not wasting your valuable time learning something that others can do quickly. Its all about working smart not just hard.  

Rule 5: Seek Mentors when Planning for Success  

Whatever your goal is there’s a chance that someone else has done it already. Rather than thinking your own way forward you could befriend a mentor that would be happy to guide you. Having mentors means that you don’t have to learn from your own costly mistake. Instead you can understand your mentor who will warn you of the pitfalls and advise you of all the shortcuts you can take.

Recently I wanted to learn more about Options Trading so I could generate $2000 per month trading. I found someone who was earning in excess of $10,000 per month and had 30 years experience. I read everything I could from her site and then became a member and have forged a profitable relationship with her. She is now advising me on how to trade effectively which means the likelihood of actually making money is high. Whatever you do in life have a mentor because you’ll achieve what you want to achieve in no time at all.      

Rule 6: Surround Yourself with Like Minded People  

The people you surround yourself with will determine your mindset. If you hang out with deadbeat losers you’ll probably end up a dead beat loser. If you surround yourself among winners in your field then you’ll eventually end up a winner. Find like minded people who want to achieve the same things you do and you’ll be able to bounce ideas off of each other.

You’ll feel motivated to succeed and you’ll encourage each other to keep going during the good times and the bad times. Finding like minded people is easy, if you’re pushed for time find a forum to fuel your curiosity and thinking. When planning for success positive people who want what you want will boost you on to success.  

Rule 7: Become Obsessed with the Goal  

Being passionate works but being obsessed means that you’ll achieve your goals faster. Become passionate and obsessed with your goals. Keep asking yourself if other can do it why can't I? Who’s stopping you other than yourself? If you eat, drink and breath your goals it's only a matter of time before you get what you want.

The seventh rule when planning for success is continually reminding yourself of your end goal. Look at the progress you are making and keep asking whether you can do more. It is important to find balance between obsession and feeling burnt out. 

Rule 8: Beware the Naysayers  

People will laugh at you, they’ll also try and drag you down, AND they’ll try to make you fail before you even start. (Make a note of this) The two words you should say to these people are BACK OFF. If I had a dollar for every naysayer in my life I would probably have another $1000 in the bank. Think of these people as ENERGY VAMPIRES who only pleasure when no one else progresses. Sever all ties with these naysayers and never look back at them. These are the enemies when planning for success.   

Rule 9: Prepare for Failure when Planning for Success  

Even the best laid plans have unplanned surprises and setbacks. Therefore the next rules when planning for success is always prepare yourself for setbacks and minor failures. Always understand and reaffirm in your mind that whatever happens you’ll have the mental strength and courage to succeed and keep going. Learn from your mistakes the second it happens and then review your plan to weed out repeat occurrences. Accept, Move Forward and Plan.   

Rule 10: Never Lose Focus and Drive  

To win a race you need focus and drive. You need to have your eyes, your mind, your heart on nothing else but the end goal. Nothing else should really matter as much. You need to keep driving forward. Use your imagination to think of how great life would be if you were to achieve this goal. Use your imagination vividly, one of my goals was to quit work and take charge of my financial life. 

Planning for Success  

Follow the 10 rules when planning for success and you’ll never look back. If you’ve failed after following all these rules then the goal is impossible or you’re still not planning well enough. People, life is short, start planning and achieving in life before it is too late. Before long you’ll find yourself in a retirement home being spoon fed by fat nurses who wished you were dead.  

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Monday, 15 February 2016

How to Become a Millionaire Wealth Builder From Scratch

How to Become a Millionaire Wealth Builder From Scratch


For an aspiring individual it’s important to build wealth because money buys freedom to do whatever you want to do. A wealth builder never likes to be in other people’s employ because they don’t like taking orders from anyone or being told what to do. The sad fact is there are a lot of aspiring individual stuck in menial jobs unable to realize their full potential of building vast sums of wealth.

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Building wealth takes time but it is possible to get rich very quickly if you follow the rules of building wealth outlined below. These rules have helped me to double my net worth year on year and most of these ideas come from the 50+ personal finance books and e-books that I have read to become better with my finance. The rules are split into 3 groups as follows: Solid Frugal Foundation, Investing Capital Preservation and Compounding and finally Exponential Financial Growth. You need Meteoric-Confidence and Unapologetic-Discipline in order to succeed with money - Be sure to read my words of wisdom right at the bottom to help you achieve these two characteristics.  

As an wealth builder you need to take a multi dimensional route to building wealth. You should acknowledge that frugality is important but it won’t make you incredibly wealthy. Also investing money requires patience and understanding so you won’t become a millionaire overnight. The best chance of getting rich and building wealth comes from creating a solid foundation which allows you to save and invest money. 

As you increase your investment knowledge you will also begin to see opportunities that double or even triple your wealth which I will explain below. 

Part 1 of 3: Solid Frugal Foundation 


Rule 1: Live Within Your Means to Build Wealth 

This is a very obvious rule but always worth reinforcing because building wealth requires a solid foundation. Don’t be a flippant and live above your means because you’ll have to pay it back eventually! No one will come to the rescue and paying off indentured servitude is the main road block to building wealth. If you do have debt then call the creditor and demand interest to be stopped or reduced so you can pay it off. 

Rule 2: Always Budget to Build Wealth 

Budgeting is another simple rule which seems obvious but is in fact oblivious to the masses. Any person who wants to build long term wealth must learn to budget, this means knowing your income and your expenses and then using your money in the most efficient way possible. Don’t be oblivious going through life without any respect for money because you’ll eventually run out and become ridden in hardship reliant on the Government who serve scraps to helpless people.

Rule 3: Increase Income Decrease Expenses 

This is another no-brainer which many men choose to neglect because they’re unsure how to build wealth. To get ahead in life you need to save and the best way to do that is to trim your expenses and increase your income. Personally I spend 10% of my personal finance time trying to look for ways to reduce my outgoings and I use 90% of my time to look for ways to increase my income. The greater the gap between income and expenses the quicker you’ll be able to build wealth and become filthy rich.

Rule 4: The Enemy of Building Wealth is Debt 

Debt is the worst enemy an aspiring individual could have, this is because being in debt is like being in someone else’s pocket, someone else owns your time. As time is the most important commodity to men you should not be giving it away cheaply. Never get into debt, if you want something get off and earn the money you need. Don’t be a indoctrinated and use other people’s money to fund an unsustainable lifestyle. 

Rule 5: Understand the Power of Passive Income 

Normal people exchange their time for money. Smart aspiring individual exchange their time to build something meaningful which will give them a lifetime’s income and capital growth. Think of passive income as building a house which might take 1 year. This house will then give you rent for as long as it is standing. Building several of these houses will create enough passive income so money comes in regardless of whether you’re working or not.  

Part 2 of 3: Investing, Capital Preservation and Compounding 


Rule 6: Become an Expert in Investing 

When you save money you need to make it work as hard as possible every year. Deposits accounts offer paltry rates of return which are normally eroded by inflation. By reading and learning about investments you’ll begin to understand that there are investment vehicles that can give you a return between 5% and 10% annually. Do not fear investments that offer a high return, instead understand the investment and judge for yourself whether the risk is worth the return. 

Something I invest in is Closed End Fund Investment Trusts which offers investors between 8% and 10% return. On the surface this might seem like scam however proper research and analysis will show that this is how the rich get richer. 

Rule 7: Invest in the Stock Market but Reduce Risk 

You can remove the fear of losses when you invest in the stock market by taking out Market Crash Insurance. Savvy investors insure their portfolio using 0.5% of their wealth. The portfolio is insured using out of the money Put options which shoot up in value when the stock market falls. 

Personally I invest in stocks which will always be around, stocks like Coca Cola, Bristol Myers Squibb and Johnson & Johnson. These stocks have stood the test of time and pay a dividend every year which increases between 5% and 10%, this means that If I receive $100 dividend in year 1 I will receive $110 in year 2 which helps me stay ahead of inflation, these stocks are often referred to as Dividend Aristocrats. 

Rule 8: Diversify Your Portfolio 

Don’t put all your eggs in one basket. When you invest you should try and mix your portfolio up. I split my main portfolio between cash, stocks and bonds. 30% cash, 30% bonds and 40% stocks. The reason I have 30% in cash is so I can take advantage when an opportunity comes along. 

Personally I have 30% in cash earning 3% which is instant access. I am now waiting for the next stock market crash to buy stocks on the cheap. By reading about the history of the stock market I know that markets crash every 7 to 10 years where stocks are given away for nothing. 

Back in 2008 after the credit crisis Citi Group plunged from $80 to $3. By investing $10,000 into this stock you would now be sitting on $133,000 as Citi is currently priced at around $40. Having cash available to capitalize on these crashes every 5 to 10 years will make you incredibly rich. 

Rule 9: Hedging and Insuring 

Always look for ways to protect your capital and compound it at every opportunity. You can hedge stock portfolio using Out of the Money Put Options. You can make additional income from your portfolio using Covered Calls. By becoming an expert on Stocks and Options you no longer have to take a loss because you can manipulate a position to give you a profit eventually. 

Rule 10: Analyze Risk and Return and Be Aware of Scams 

Whenever you invest first look at the risk, then look at the return, think whether someone is trying to pull the wool over your eyes. I always strive to align myself with reputable companies that are squeaky clean. Remember how hard it is to build wealth and be aware than a con artist could take it all away very quickly. 

Part 3 of 3: Exponential Financial Growth 


Rule 11: Create Businesses For Income/Capital Appreciation 

The quickest way to wealth is to build a business from scratch which offers income and then liquidate it for big money. It’s entirely possible to build a business on the internet with minimal start up costs. Building a website costs a few hundred dollars and then adding content and monetizing can help to increase income and readership. If you continue to add quality content the site will grow. 

Rule 12: Look for Start Up Companies and Invest Early 

Savvy investors who want explosive growths invest in start up companies. They invest just at the beginning so growth is explosive when the company starts to expand. Just imagine the return you would get by investing at an early stage in companies like Facebook and Google. Google have just recently launched an equity fund which invests in start ups, this fund is traded publicly so it’s a great way to get exposure. 

Rule 13: Develop Property to Build Wealth

Property development is a great way of building wealth especially when prices are depressed the way they are now. Property will eventually recover and any savvy investors are investing in property in good quality sought after locations with the intention of receiving rent and liquidating when prices start to explode again. 

During the credit crisis I was able to invest in properties in central London which now pay me a decent income after mortgage. If current trends repeat then these properties should rise in value when property market recovers fully. 

Rule 14: Be Aware of Trends 

Smart people look at trends over the last 100 years when building wealth. They look at charts of the stock market, bond market, inflation, gold and interest rates. When you look at the bigger picture you will see periods of boom and bust, these savvy investors double even triple their wealth during these boom bust period where the transfer of wealth is monumental, this is where the rich get richer and the poor get poorer. Take the time to learn these trends so you can capitalize the next time the market crashes. 

Rule 15: Always Give and You’ll Receive 

Every time I give a deserved person some money I feel a mental boost which gives me the courage to pursue my convictions. Recently I gave some money to a charity which helped to build a home for poverty stricken family. This feeling of helping the poor who are trying to get themselves out of poverty is very powerful feeling and has helped me to make even more money. 

These 15 rules or ideas have helped me to make an impressive portfolio. These rules have helped paved the way to build a solid foundation where I can build wealth and then make the wealth grow through continual compounding. 

These rules have helped me to capitalize on trends and to protect my money through growth of knowledge. As an aspiring individual you need to accumulate as much money as fast as possible. Money buys freedom so you can roam the way you were meant to. 

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