Blowing Up The Most Common Investment Strategies

Before we get on with the training I think that itabundance? Do you want to pay off the
is very important that we go ahead and blow-upmortgages of people like Warren Buffet? Or do
some of the most common investmentyou want to have someone else pay off your
strategies that are out there.mortgage like Warren Buffett did in high school?
1) Diversify your savings into an IRA by payingAre you ready to get after it and begin doing the
$150.00 per month until you tour 65. Then oneuncommon things you have to do to become
day when you're in your 60s (if you live that long)successful in your investments? Do you want to
you will have $3,000,000. I take issue with thistravel when you want and work when you want,
idea for a variety of reasons, but here are myor would you like to work for the weekend for
biggest issues with this investment theory. One,the rest of your life? If you don't have the strong
you might not live that long. We could all get hitdesire to succeed then stop reading this. If you
by a bus tomorrow. Two, you will need thatare ready to grow to next level, then read on.
$150.00 that you are investing per month to buildHowever, quick word of caution. Their are
your own business. Three, if you would rathergrowing pains ahead.
invest in a business that you have no ability toI have a strong desire to invest, but what should
control, what does that say about your faith inI invest in?
your own abilities? Four, I have never met aIf you have a strong desire to invest, but you
millionaire (and I have worked with manydon't know what to invest in, you are not alone.
millionaires) who told me that their financialTheir are millions of Americans in the same boat.
fortunes were built through diversification inIt's ok, just don't stay in this boat.
mutual funds. FIve, inflation will eat the value yourIf you are like many new investors you might
dollar. You could by a new house in the 70s forfind yourself wanting to invest in this great IPOs
$50,000.00 an now that same house will cost youthat you have heard about. Or you might want to
$200,000 today. What will $3,000,0000 be worthinvest in an office building. However, there is a
when you are 65?problem here. For most of you reading this, you
2) Buy a stock, hold it and pray over it daily. Thiscan't.
whole idea is based on insanity. This wholeThe government will not allow you to invest in
concept is based on gambling. Investing is notmany of the best investment deals that are out
gambling. If your game plan is to sincerely look forthere. Most people are not aware of this, but if
a good stock and then bet everything you ownyou are not an accredited investor the
on its success or failure, you are delusional (unlessgovernment will not even allow you to invest in
you are the CEO of that company). This form ofsome of the very best deals. Why? The
investing will leave living in fear of the next crash.government believes that you will not have the
The truly wealthy people in our country makeability to know what is a good or bad investment
money in boom or bust cycles. Rockefeller grewunless you are an accredited investor. If you
his influence, his land holds and the size of hiswould like more information on this, I highly
business exponentially during times of greatrecommend that you Google the Exemptions
economic turmoil. Friend, cash is king. When peoplefrom the Securities Act of 1933. Basically here is
get tight on cash, they will sell you their $6,000a rough run-down of what that act says (mind
entertainment center, TV and couch for $500.00.you, the government changes their mind alot):
When people are running low on cash they will sell1) You are an accredited investor if you have a
you their house for what they owe, not for whatnet worth of $1,000,000 or more.
their home appraises for.2) You are an accredited investor if you have
3) Invest in this one guy I know. I hear he buysearned $200,000 or more in each of the most
houses. This idea is insane too, but their arerecent years (or $300,000 jointly with a spouse)
people using this strategy daily to invest their hardand have a reasonable expectation of reaching
earned dollars. My friends do not invest in a guythe same income level in the current year.
you know, who might or might not be legit. If thisMy friends, most of the great investments that
guy has corn-rows and drives a beamer, theare available to accredited investors require
chances are that he is not legit. If this guy doesminimum investments of $50,000 or more. Thus,
not have business cards, the chances are that heas I said earlier most people reading this will not
is not legit. If this guy uses a gmail account as hisbe able to invest in the office building or the next
primary investment email address, the chancesbig IPO. However, I think that we should not
are that he is not legit. If this guy does not havefocus on the financial qualifications needed to
an investment company, the chances are he isbecome an accredited investor. We really need to
not legit. I don't care if you have gone to churchfocus on the mental qualifications needed to
with him for 30 years or if someone that youbecome build enough wealth to become an
know said that they knew someone who knowsaccredited investor. To become an accredited
him through and investment that someone mightinvestor, you will need the following assets /
have made with him back in day. Do not invest inpersonal tools:
people that do not have verifiable financial1) Practical Education - Skills pay the bills. What
statements that can and will openly show you.can you do that people are willing to pay for?
As we begin to delve into this course with a little"Knowledge without application is meaningless." -
more intensity, I want to give you a quick realThomas Edison
estate investing tip: If you want to build profound2) Experience - You have to know the financial
levels of wealth, just ask everyone that youterms. You have to know how to negotiate. You
know what they are doing and then do exactlyhave to know how to work with a bank. You
the opposite of what they tell you. Most peoplehave to know how to find the good deals. You
will never become rich because they havemust have experience.
become completely convinced that their way of3) More Cash Than You Need - You must have
thinking is the best (and it does not work). Mostmore cash than you need to live on to invest. If
average people will sit around thinking that theyyou make just enough money to afford your
should find ways to play it safer and safer soLexus payment, your huge house payment and
that they do not lose their wealth, the richyour wife's manicures then you are never going
continue to think about how they can continue toto have enough cash to invest later.
earn and learn more and more skills that will paySo how to you go about acquiring these assets
the bills. The rich know that skills pay the bills andand personal tools?
that the more skills they have the more moneyIf you want to gain practical education, you must
they will earn. The rich are constantly looking forwork in a hands-on mentorship or intern
more and more ways to earn more and moreenvironment. Find a wealthy investor and go to
money so that they can have more and morework for them, even if that means working
money to invest.without pay. How much are most people willing to
Rich people have much for dynamic and flexiblespend on a college education today? $40,000?
thinking about the economy. When the economy$50,000? $100,000? $20,000? Really? So people
struggles the rich begin to salivate as they thinkare willing to pay $20,000 for school, but they
about all of the deeply discounted assets they canaren't willing to work for free for America's
buy. How low did Bank of America's stocks fall?wealthiest people? That is true. How did
How much money was made on the rebound byRockefeller get his start? He went to work for
America's wealthy. As the average investor wasfree as a bookkeeper in Cleveland. This
pulling his money out and running for the hills asemployer's promised to pay him after his first
the Dow Jones Average dipped lower and lower,month of work, IF HE DID A GOOD JOB.
the rich were waiting for the economy to bottomHow did Andrew Carnegie get started? He
out so that they could begin to make their bigstarted out working for FREE at his dad's factory.
buys.How did he learn to use the telegraph machine?
Are you aware of Warren Buffett's investmentHe worked for free. How did P. Diddy, Sean
philosophy? Warren has said and will continue toCombs, Puff Daddy (whatever you want to call
say to anyone that will listen, "Be fearful whenhim) get his big break. He went to work for FREE
the market is greedy. Be greedy when theas an intern? My friends you have to work to
market is fearful."learn, not just to earn. Your priority should be to
Why is that? Why would Warren say that?LEARN, not just to EARN.
Warren says that because Warren is a billionaireIf you want to gain experience you must actually
investor. Before Warren was a billionaire he was ainvest in a property. Do I mean that you to
self-made millionaire. Before he was a self-madeinvest in something that might not work? Yes. Do
millionaire, he was the college kid who wasI mean that you have to actually take action?
aggressively spending his time trying to learn asYes. My friend, to quote the great John Wooden,
many investment skills as he could possibly"Nothing works unless you do." You must gain
acquire. Before he was the college kid trying toexperience. You have to get street smart, and
learn investment skills, he was the high school kidthe best learning lessons you will ever have
that owned land that he leased out to a farmerusually follow the biggest failures that you will
who paid him a monthly amount to use his land.ever experience. Gaining experience is critical.
Think about that. In high school, as a pimple-facedIf you want ever have more cash then you need,
high-schooler Warren Buffett new more aboutyou must have a total liquidation. You must get rid
investing than the 50 year-old farmer who wasof those car payments. Rich people do not have
leasing the land from him. Warren was letting thecar payments. You have to cut nearly all of your
Farmer work hard to earn his money. Each monthunnecessary expenses to get in the game. If you
as the Farmer mailed in his lease payment, hehave cable that you don't watch, cancel it. If you
was paying Warren's mortgage.buy a $2.00 coffee before work every day, you
So before we begin, I want to ask you thishave to stop that habit. You will need that cash
question. Do you want to be average or do youvery soon. If you don't have any cash you
want to be profoundly successful? Do you wantcannot win. To paraphrase the success author
to work at a job you don't like for the rest ofBrian Tracy, if you do not have the self-discipline
your life while diversifying so that you can retireto save money then the seeds of greatness are
on a tight budget or do you want to live a life ofnot within you.