Laws of Success
Secret #7
As Seen On
Friends:
We kind of beat around this one earlier, because all of these secrets are really intertwined, and should not be taken separately. They must mesh together to form a seamless tapestry that is your life.
You must realize that the road to financial security lies in investing for the future, and making your money grow. The difficult part for many lies in not having enough income to be able to invest. We will get to this later on, but for now let's take a closer look at why it is so essential, and exactly how it can create wealth. How much money is really needed, and where should you put it (assuming you can get your hands on some)?
By now it is hoped that you truly understand and appreciate the "Guns & Butter" theory mentioned earlier. If you do, the rest will be made so much simpler. The basic premise is this: if you are willing to do for a little while what others are not willing to do, eventually you will be able to do all those things that the others can only dream about. In short, play now, pay dearly later, or pay a little now and play dearly later. Your choice. By going without some of those nice extras and putting that money to work, the day will come when you can have much nicer extras - all you want - and not have to worry about paying for it later.
Understand this simple, yet ever-so-true principle: If you spend a dollar when you are 25 years old, you get one dollar in value (theoretically, anyway). A spent dollar is worth a dollar. But if you save and invest that dollar at 10% APR, when you retire that dollar will have grown to $48.
Putting this into perspective, a 25 year-old who spends $5000 that year on CD's, movies, pizza and other nonessential items has not spent $5000 - he has spent a whopping $240,000 worth of his future. If he spends $5000 per year for 4 ½ years, he has blown over a million dollars out of his future.
Try to imagine every dollar that you have spent since adulthood that didn't really need to be spent, but it was "fun at the time". Now just try to imagine all the millions you won't have because of those countless little flings. Chances are you no longer remember most of them, and no longer have anything to show for it all.
On the other hand, if that young man had invested those funds and waited
until he was 39 to spend those dollars, two things would become apparent:
1) he will have a lot more money at his disposal, and
2) each dollar he spends will only cost his future $16 instead of $48. This
is because it would only be growing for 28 years instead of 42 years.
By saving now and spending later, not only will you have much more, but that which you spend will provide greater value because it takes less from your future.
At 10% per year, your money will double in seven years. At 15%, it will double in around 5 years. Hence, $10,000 invested at 15% at age 30 will grow to 1.28 million by age 65. As an avid real estate investor, I have devised investment strategies that have been known to regularly yield from 100-600% per year, and in some cases, the yield is infinite because no cash is even invested, yet I get a good profit. Imagine getting a 600% yield on a $10,000 investment, even once! That would come to a whopping $60,000. And if you were to invest that $60,000 next year, again at 600%, your net worth would climb by $360,000.
But what if you could profit $10,000 cash from a property in which you invested nothing? You would have an infinite yield. Some of the techniques I have developed over my 30+ years of investing do not require any cash or credit at all. I like that, because not only is the yield infinite, but it also leaves my working capital available for making even more profits on other investments.
For those of you who may be skeptical, I have posted actual courthouse documents on the Internet that show that a client I taught had made $16,000 cash in a single day, without investing a dime. He merely arranged to buy a property at one price, then resold it at the same time - all at the same closing. He needed no money, since his buyer was putting up the money. He needed no credit because he was not going to hold this property. Really quite simple, and the recorded deeds, dated the same date for both the purchase and the sale make it easy to see how such huge yields can be made, even if you have no assets of your own. You may find these docs at http://www.intellibiz.com/docs.html. Understand this one proven fact, however: nothing - nothing - has made more millionaires out of ordinary people than real estate. Period.
After viewing those docs, you must realize the truth - if you do not go forth and create wealth for yourself, it isn't because you can't - it's because you won't! The individual who put this deal together and pocketed $16,000 was homeless, living in a beat-up van. He had no money, no job, no credit - nothing. And he created wealth that day, from thin air. So, if you still have an excuse for not building wealth and investing, I'd like to hear it :o) When you are finished with this book, get out there and get going. There is nothing stopping you except you. My purpose for putting this little book together is solely to show you how. What you do with that knowledge, if and how you use it, is completely up to you, and you alone. And if you want to learn more about such things, and how they are done, don't be afraid to check out the rest of the website at http://www.intellibiz.com. It costs nothing to look, and you will find a lot more great info, such as the complete (and free) Credit Restoration Manual, Debt Reduction manual and lots of other helpful tips and freebies worth checking out. And because it is offered by a non-profit, the entire course, which teaches how to invest in real estate without cash or credit also includes all the tools necessary for success - including FREE MENTORING by professional investors - all for under $50 complete.
OK, now that we finally got that shameless plug out of the way, let's get back to the business at hand. You should realize by now that a dollar saved today is more valuable than a dollar saved tomorrow (compounding interest that grows money). Conversely, a dollar spent today will cost you more than a dollar spent tomorrow. But there is one more point here - a dollar spent at any time is worth less than a dollar saved at any time. So, if you like worth-less dollars, go ahead and spend 'em all, fast as you can. But if you are like me, you want to squeeze every bit of value out of a dollar that you possibly can. And that means saving and investing. Later, I'll give you some pointers on how to find money to save and invest. For now, just understand that it is the only road to sustained wealth, and financial growth.
Secret #7 Summary: The surest road to growing wealth is through wise investing. And there are no excuses for not following that road.
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