Tag Archives: becoming rich

Do You Think You Are A Victim Of The Wealthy?

by

What if I told you the people who are complaining about the wealthy are the same people keeping your from becoming wealthy yourself?

I think there is misinformation floating around that casts the wealthy as if they were all evil like the old evil stepmother depiction that was oh so popular in the Disney movie classics (I wonder what they had against stepmothers?  Perhaps childhood issues, or an easy target?).

Now just in the little that I wrote so far I’m sure some readers put their hands over their ears, closed their eyes and started chanting “I’m not listening, la la la”.  If you have made it this far read each of the points below with an open mind.

Pink Dolphin

  • 8 out of 10 people who are rich today came from a middle class or lower background.  This means that 80% of those that are rich are just like you and me!  Look around and in the mirror, practically everybody you see, including yourself, can or may already be rich.  Don’t believe the crazy people they have on “The Real Desperate Housewives” as representing the rich.  As much as they say it’s real, it not really representative of the rich.  Those TV shows are about as representative of the rich as a pink dolphin is representing the average dolphins.
  • There are both good and bad people who are rich.  Bad is a relative term, perhaps good and (aggressive, mean or selfish) people who are rich is a better way of describing them.
  • There isn’t some magic that happens to these people who come from the middle class that makes them more prone to be successful other than drive, belief that they can do it, and the willingness to try.
  • Most rich people (at least the ones that I know) give money away to causes that improves everybody’s lives, whether they realize it or not.  Parks, recreations centers, the Arts (yes, liberals that protest the rich benefit greatly from people being rich… surprise), medicine, hospitals, and quite literally the list goes on and on.
  • Big media like to portray the rich as bad guys (which is ironic since they themselves are super rich), but if you read blog sites and their interviews with the rich, you’ll see that they aren’t really the way big media like to present them.  Big media just want you to watch their shows because it makes them money.  I wonder if they think we are all slow?  Just remember when you listen to one of those shows trashing the rich, that the people pulling the strings are richer than you or I can imagine.  A bit hypocritical huh…

The wealthy are the ones that bought apple products, enabling the android devices to take off and become popular at a much lower price.  If it weren’t for the wealthy buying both calculators and computers of yesteryear, computer still might be giant behemoths of past, or so expensive that they never become mass-produced and exist only in the government world.  I don’t  know about you, but my computers and electronic devices has made a huge impact on my life, and might be a way for me to someday advance to the wealth level of the rich, even on a middle class income.

Think you are still a victim? The try the following:

  • Grow your own food
  • Stop buying products that the rich provide
  • Start bartering more
  • Make your own clothes
  • Start a side business on the cheap
  • Think and exist outside of the box
  • Experiment
  • Become more socially active and make new friends
  • Live life well…

The thing is you are a victim only because you let people tell you that you are.  You are only limited by your desire to be wealthy and your determination to get there.

I’ve been asleep for years, not really believing or even trying to become wealthy.  Now I’m awake and trying things.  I think life will slip by too quickly if you let it.

If you don’t play the game, how do you expect to win?

MR

Alternative Plans For Financial Independence

by

Is My Financial Independence Plan Flawed?

With respect to Financial Independence, I now realize that previously, I’ve put my entire financial independence strategy in just one well known plan.

My “Financial Independence Plan A” is pretty much your standard run-of-the-mill savings by frugal means and invest that savings like a fiend.  To be honest, so far Plan A is working for me, I’m doing about as well as can be expected in this economic environment.  While I’m not a millionaire yet, I’m on my way to achieving a net worth of a million in the next eight years following this path (fingers crossed).

But, what if something happens? What if Unemployment keeps rising and I get laid off? 

Getting laid off would severely affect my current employer paying income stream, and would be a serious blow to my investment strategy since eating and feeding my family would get in the way of investing (my family members are so inconsiderate that way, lol).

What if I get Madoffed?  Then I find myself much older and less inclined to want (or even able) to work as diligently?  Is having only one plan analogous to having all your eggs in one basket?

Alternative Plans for Financial Independence

I’m now pursuing at least two other paths for Financial Independence!

Financial Independence Plan B – “Side Job Income“:  Find a job (or create one via entrepreneurship) that in five years should pay at least a quarter of your current “primary job” salary earnings (or self-employed income).  Then take the entire income stream (minus taxes) and invest it in dividend stocks or decent bonds (perhaps municipal bonds – do this when and if the bond market comes back) with a decent yield that are still safe.

The advantages of Financial Independence Plan B are as follows:

  • In combination with Plan A, you should be able to save twice as much as you do if you are just using a Plan A.  This is a great accelerator to achieving Financial Independence!
  • The dividend stream should be invested back into your dividend investments, but alternatively (if you are willing to sacrifice slower growth), you can use a portion of that dividend stream for rewards such as vacations and other family/personal fun activities.  The family/personal fun activities provided by a dividend stream is the route that I am following as seen in the following articles:
  • If something happens to my primary job, I have this one to serve as a backup.  This second income source, dividend streams and the fact that I’m totally totally debt free means that I can get by without any real hardships.  However, my lifestyle (and especially my kids) would definitely have a dip in enjoyment since I would have to forgo vacations and they kids would have to stop playing sports and other fun and educational activities!

The primary disadvantage of Plan B is time.  You will have less time to spend watching TV, being with family, and leisure in general.

Financial Independence Plan C – “Being Smart about spending and saving money” – This is about getting the best deal on a product without doing something foolish like driving wasting gas money, while trying to save a dollar.  And about detecting and taking advantages of income making opportunities instead of giving away time, your work, and stuff away for free.  I will have a more detailed post about this in the future.

Both of my Plans B and C are evolving, so in the future, I’ll expand on each!

Do you have 2 or 3 alternative plans on becoming financially independent?  The beauty of such plans is that as long as they aren’t too expensive, anything goes since they aren’t necessary for you or your family’s livelihood.

Have a great weekend!

MR

Reader Thoughts – Response to Sacrifices Made On the Road To Become A Millionaire

by

Today at Money Reasons, I’m introducing a feature called “Reader Thoughts“.

Within this new feature, I’m going to post emails and other forms of communication that I received or gather that explains a personal take or actual personal experience on a topic that I consider worth taking a look at, to gain insight into their thoughts and experiences.

Today, I’m going to post an email I received from “S”:

Money Reasons writer – your post on wealth and sacrifices really hit it home for me today.  My response may offend some of your readers but those are my genuine feelings, you asked to hear stories.  I am not sure what you consider wealthy – but I have been in the top tax bracket for the last few years.

I was nearing this bracket as an employed professional but I entered this bracket as an entrepreneur involved in several ventures, many that turned in losses which I talk about on my blog.  Entrepreneurship involves lots of sacrifice in many aspects of ones life, social, relationships family/friends, personal interests and hobbies taking a back seat, etc. 

 

I persevered through all over the years, starting profitable businesses that pay tax. so not only do I contribute the max amount from a tax perspective, most of my businesses do the same.  I own a brick and mortar business in my community through which I have employed local citizens. the business is heavily involved in the community, often sponsoring soup kitchens, charity galas, and fund raising initiatives.

 

I also own several rental properties, all of which provide quality housing to residents in need, many of who would be considered sub prime by other lending institutions. to sum it up, the road to self created wealth involves way more than what one who hasn’t traveled the road may think. moreover, each journey is very different / unique. personally, only I know the amount of sacrifices I have made over the years. sure I am reaping huge dividends today, but I am also contributing to the larger society / community in parallel.

 

“S” provides a  story that epitomizes the exact point I was trying to make with my post called:  Sacrifices Made On the Road To Become A Millionaire.
“S” points out that he has made sacrifices on this path to becoming wealthy, the path to his success also includes taking risks and encountering some failures along the way.

The common perception of “S” is that he must be taking advantage of everybody, we learn from his email that the opposite is taking place, in that he provides housing for those that have poor credit, contributes to his community, does charity work, and most importantly hires employees, giving them a job and a way to earn a living!

 

Unlike the typical inaccurate representation of the rich where everybody thinks they are crooks or like Scrooge, people like “S” should be applauded and appreciated for the great ways they are benefiting the world!

 

Thanks “S”, for providing your personal story and hopefully bringing a better understanding of the sacrifices and hurdles that you’ve had to overcome on your road to success.

 

Big Kudos to “S” for writing such a great response,

 

MR

Wealth Tip #8: Believe Your Way To Wealth

by

Believe Your Way To Wealth

I remember reading “The Millionaire Next Door”, and Stanley (the author) stated that the majority of those that are very rich “Believe”.

At the time, I wondered what exactly he meant and if it was one religion, and which one.

Well, after dwelling deeper into that “Believe” rabbit hole, I’ve since learned that Believing (meaning believing in a higher power) also means believing that you will become wealthy!

Those that believe that they are to be wealthy, prepare by using tools such as spreadsheets, accountants and other cognitive tools to help visualize the path to riches.

So as for “Belief” associated with one particular religion, it doesn’t really matter.   In fact, to conclude so would be a spurious relation at best.  The key is have passion and believe that you are predestined to be wealthy.

It does help to think that your god or higher power wants you to be rich and that it is one of your objectives assigned to you from your god (or higher power).

So an intense (quest like) focus on becoming wealthy help you accomplish this feat!  Plus, from what I read, others that are rich may help you along your way in the form of connection, encouragement, (lending) money and friendship in general.

This makes perfect sense if you think about the way we accomplish every other goal in life.  When we learn how to ___________ (ride a bike, swim, read, etc), it take focus and determination.  But how often do we wake up with that type same type of focus on how to make money daily?

Granted riding a bike takes a day or two at best, while becoming wealthy takes years or tens of years, so the focus period is much longer but still similar!

Okay, so we just believe that we will be wealthy and it will be so…  is it really that easy?

Yes and No, you need to believe that it’s that easy, but at the same time you’ll have to put in some effort to figure ways to make that money, save that money and invest that money.

Is it still possible to become wealthy without believing?

Of course, but you might get their quicker, be more wealthy, and have more fun all around if you focus on the activity of becoming wealthy…

What do you think?  Does it make sense that focusing and working on becoming wealthy will improve your odds of really becoming wealthy?

-MR

Did you like this Article?  Then please subscribe to my RSS feed so you can check out new articles when they become available.  You will help this blog grow by doing so!  Thanks!