Kia Ora,
Well for the last few weeks have being continuing my own financial education & the following points jumped out during the training.
First you have to decide where you want to be. Secure, Comfortable or Rich!
Then it is how you are going to reach the chosen level & the plans will alter for each level.
For example to reach the secure level, where an investment covers all your outgoings (or you are out of the rat race) your plan might be to purchase cash flow positive properties.
Then for the next level you might want to build your business & for the final level you might look at using paper/commodities or paper in the form of an IPO (Initial Public Offering- initial shares when a company goes public).
So different plans for different asset classes.
During this time I also attended an investment property seminar. One of the strategies involved buying properties without any money.
Now that one people always talk about & how risky it is, but all it needs is a mindset change. When you look at the current economic situation, it is not if someone will accept them, but how many.
Just yesterday in the paper there was an advert for a property to buy (not in the real estate section) for around $275, 000 with a valuation of around $795,000.
Part of the strategy mentioned above involved the first offer being half of the value of the property, which people tell me no one will accept, yet here is one on offer.
They are always out there, but having the knowledge & confidence of how to take advantage off them is what is needed.
It might be that all you need is the lawyers costs to ensure you can tie this deal up is all that is holding you back.
It is also being able to spot the opportunity. This one was in the financial pages.
Other areas to look for opportunities are the public notices & some even look in the death notices or hear about couples getting a divorce.
It is what you feel comfortable with.
Thursday, March 18, 2010
Monday, March 8, 2010
Learning from Mistakes.
Kia Ora,
I thought I would get back to this week the reasons why I found the Rich Dad Poor Dad series suited me.
Early on he states that you learn in life by making mistakes yet the education system is set up for 'A' students & a system where it is wrong to make mistakes.
Because we all go through the school system we pick up on this & go through life trying to avoid making mistakes.
Personally I always claimed to have learnt more in the army than anyone else as I made more mistakes & the military actually encourage mistakes in training. That is why you train. Better to make most mistakes in training, than when the bullets are flying.
To that end Robert Kiyosaki designed a game called Cashflow 101 then 202 so you can make more mistakes when playing than having to use your real money.
Since then other groups or people involved in wealth creation have taken that on board & there are now a few games that do the same.
It all fits with the 'Cone of learning' where we learn most by doing the actual task, next by simulating (in the military we called this BHL/BHE-Battle Handling Lessons followed by Battle Handling Exercises, then exercises proper) the real life situation.
The next level is by playing games.
Funnily enough the ways most people learn the least is by reading or lectures.
It is probably why I made so many mistakes in the army. I am essentially an 'A' student in that I do learn most by reading, but choose a profession where it required me to perform at a practical level.
But it does open you up to opportunities. The next step is how to take advantage of them.
Currently besides writing my blogs on the subjects I am passionate about, it is supposed to be a way to create cash flow, but it is a slow process.
Virtually everytime I am on I see something I have being doing wrong so fix to see how that makes a difference.
On the big picture I can see how they all connect ( I will get my twitter up & running soon, someday), but the nuts & bolts are a bit different.
As they say it is the same with investing. Most people make a mistake doing it & give up, saying it was too risky instead of trying to learn the lessons it presented. It is hard at times to see those lessons because you are upset at the latest person to have ripped you off or misled you.
Even those that are successful may still have a lot of lessons to learn if they are to hold on to it.
Many people suddenly come into a great amount of money through lotto or good jobs, but it is not how much you make or have that measures your wealth but how much you keep.
It is also about learning the laws applicable as there is a lot you can do, that most people will say you "can't do that here". It just takes some knowledge to find out how you can do that here or more importanly a change in mindset.
Many people get upset with what others are doing to keep their lifestyle going. Calling them crooks, but it is more a lack of knowledge on one parties part, than anything criminal in nature.
I thought I would get back to this week the reasons why I found the Rich Dad Poor Dad series suited me.
Early on he states that you learn in life by making mistakes yet the education system is set up for 'A' students & a system where it is wrong to make mistakes.
Because we all go through the school system we pick up on this & go through life trying to avoid making mistakes.
Personally I always claimed to have learnt more in the army than anyone else as I made more mistakes & the military actually encourage mistakes in training. That is why you train. Better to make most mistakes in training, than when the bullets are flying.
To that end Robert Kiyosaki designed a game called Cashflow 101 then 202 so you can make more mistakes when playing than having to use your real money.
Since then other groups or people involved in wealth creation have taken that on board & there are now a few games that do the same.
It all fits with the 'Cone of learning' where we learn most by doing the actual task, next by simulating (in the military we called this BHL/BHE-Battle Handling Lessons followed by Battle Handling Exercises, then exercises proper) the real life situation.
The next level is by playing games.
Funnily enough the ways most people learn the least is by reading or lectures.
It is probably why I made so many mistakes in the army. I am essentially an 'A' student in that I do learn most by reading, but choose a profession where it required me to perform at a practical level.
But it does open you up to opportunities. The next step is how to take advantage of them.
Currently besides writing my blogs on the subjects I am passionate about, it is supposed to be a way to create cash flow, but it is a slow process.
Virtually everytime I am on I see something I have being doing wrong so fix to see how that makes a difference.
On the big picture I can see how they all connect ( I will get my twitter up & running soon, someday), but the nuts & bolts are a bit different.
As they say it is the same with investing. Most people make a mistake doing it & give up, saying it was too risky instead of trying to learn the lessons it presented. It is hard at times to see those lessons because you are upset at the latest person to have ripped you off or misled you.
Even those that are successful may still have a lot of lessons to learn if they are to hold on to it.
Many people suddenly come into a great amount of money through lotto or good jobs, but it is not how much you make or have that measures your wealth but how much you keep.
It is also about learning the laws applicable as there is a lot you can do, that most people will say you "can't do that here". It just takes some knowledge to find out how you can do that here or more importanly a change in mindset.
Many people get upset with what others are doing to keep their lifestyle going. Calling them crooks, but it is more a lack of knowledge on one parties part, than anything criminal in nature.
Tuesday, March 2, 2010
Continuing your Education
Kia Ora,
I was going to follow on from the last blog with several other reasons that Rich Dad Poor Dad made an impression on me. But that will have to wait.
With financial education it never ends.
In amongst a busy work period I was able to take time out to attend a property investment seminar at the cost of NZ$47. That $47 may end up being the best investment I have ever made.
The first point picked up was on a way to purchase property with no money. Yes with no money. Now people such as Robert Kiyosaki say this all the time that "you don't need money to get rich", but it takes a mindset change to be able to see it even when it is presented to you.
Next point was pick a strategy & stick with it. With this extra knowledge I can now look again at my original strategy with renewed confidence, but they also pointed out be prepared to change strategy when required.
To that end another strategy that doesn't even involve being in NZ was on show. It just needed a good initial outlay to get into.
But it is one that can be used later & for cash flow aloan it is a great strategy, never mind the potential upside.
One of the presenters though also was able to assist in how to make cash flow on line. What online business at a property investment seminar?
Actually he was acting as MC & helped put the seminar together. This person is extremely good at his business & many would say extremely wealthy at only 25, but he has needed to learn what to do with his money & so hence I have now seen him at two seminars.
But what I have learnt from him now means I am looking to gain cash flow from several sources to give me financial freedom, help others & invest.
Whats more with the power of the internet all could be going well within a very short time.
There is always a but though. My but, & something several of the presenters made a point of, was dealing with the issues you have (& may not realize) that are likely to be holding you back.
All this points to never stop learning about anything including yourself. You never know when that light bulb will go on.
I was going to follow on from the last blog with several other reasons that Rich Dad Poor Dad made an impression on me. But that will have to wait.
With financial education it never ends.
In amongst a busy work period I was able to take time out to attend a property investment seminar at the cost of NZ$47. That $47 may end up being the best investment I have ever made.
The first point picked up was on a way to purchase property with no money. Yes with no money. Now people such as Robert Kiyosaki say this all the time that "you don't need money to get rich", but it takes a mindset change to be able to see it even when it is presented to you.
Next point was pick a strategy & stick with it. With this extra knowledge I can now look again at my original strategy with renewed confidence, but they also pointed out be prepared to change strategy when required.
To that end another strategy that doesn't even involve being in NZ was on show. It just needed a good initial outlay to get into.
But it is one that can be used later & for cash flow aloan it is a great strategy, never mind the potential upside.
One of the presenters though also was able to assist in how to make cash flow on line. What online business at a property investment seminar?
Actually he was acting as MC & helped put the seminar together. This person is extremely good at his business & many would say extremely wealthy at only 25, but he has needed to learn what to do with his money & so hence I have now seen him at two seminars.
But what I have learnt from him now means I am looking to gain cash flow from several sources to give me financial freedom, help others & invest.
Whats more with the power of the internet all could be going well within a very short time.
There is always a but though. My but, & something several of the presenters made a point of, was dealing with the issues you have (& may not realize) that are likely to be holding you back.
All this points to never stop learning about anything including yourself. You never know when that light bulb will go on.
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