Financial Insight for Today

These are some financial tips that can help take you to the next level in your financial thinking. You can only go in the direction your mind is taking you.

• In any economy: Investors (5% of the economy) control and finance industries. They make the most money and do the least physical wok of these three groups. Managers (15% of the population) run companies and manage people. Employees (80% of the population) do all of the work and make the least amount of money of these three groups.
• Beware of the financial and prosperity books on the market. Some of them have a lot of good info in them, but a lot of them are overlaps of other books, or only tell you half of the reality of economics. A lot of times the authors are exactly that-they are authors, not investors.
• The very wealthy don’t divulge much information, and they save the most lucrative investments for themselves. But the information is available, keep looking.
• Don’t believe the lie that it “sounds too good to be true” and “if it was that easy everyone would be doing it.” Sometimes that is the case, but sometimes it isn’t.
• The very wealthy don’t divulge their actual worth, nor are they in the Forbe’s listings. Bill Gates is very wealthy, but he’s not “top shelf” in the grand scheme of things, in the world of finance. There are banking family dynasties that have been controlling industries for over 100 years. Some estimates state that their assets are valued in the trillions.
• Don’t just learn what the wealthy want you to know; learn what the wealthy know and how they do it, then do it.
• Have dreams and goals bigger than what you can do on your own.
• Remember to keep up with the times and the markets. Understand that money is the life blood of every sector of the economy. Learn how money works.
• In the 21^st century, just being a good employee isn’t good enough. Low paying and mid range jobs are being outsourced every year. Learn how to make your money work harder than you do.
• The Stock, Securities and Equities Markets are funded by average wage earners. The wealthy corporations, hedge funds and 401K’s use this money to earn interest, while the average wage earners get paltry returns. What would happen if you took your own money and did what they know to do?
• If your investment (401K, pension, etc.) makes 25% in a year, what do you think the fund made? They can’t pay you what they don’t have. They probably made more than a 100%.
• Without workers the entire economic system fails.
• Brokers don’t care if you make money. They get commissions for executing trades, not building your portfolio. If your investment loses money, they still get paid.
• Real Estate is net worth; Trading currencies, stocks and securities is liquid. You can’t spend a net worth, you can only borrow against it or liquidate your assets to spend the cash. Don’t get caught up in credit and net worth. Cash always spends. If you have cash, cash is king.
• Compounding Interest is how the very wealthy get wealthier. Working hard might build character, but it burns you out, in comparison.
• Don’t co-sign for people, unless you’re willing to assume their liability.
• Beware of salespeople. A lot of them are just looking for commissions, and don’t care about you and your situation.
• Beware of marketing stunts. A lot of the construction material suppliers are hiring beautiful women to market to a male-dominated industry.
• A $100,000.00 amortized 30 year mortgage at 5% will cost you approximately 2-1/2 to 3 times the initial loan amount when you pay the 360^th payment.
• Don’t listen to mainstream financial gurus. They give you mainstream perspective, and that information is not what the wealthy use.
• Follow the examples, principles or the insights of prominent investors and analysts. The book, Market Wizards by Jack Schwager, lists many of them. They turned small amounts of money, relatively speaking, into massive portfolios. These people can make money during good and bad times. Doom and gloom analysts are amateurs.
• If everyone made the proper financial decisions, then the markets couldn’t work. Remember that the markets are a zero-sum game, i.e., someone wins while the other person loses. You might as well win.
• Be professional in your financial dealings. You will be surprised at how well some people will receive you if you can act the part.
• Don’t give your business to or do business with unprofessional people.
• Most times, real money people only see green. Racism and discrimination do exist, but if you can show the money people that you can bring value to their bottom line, they’d be a fool to not consider you and/or your idea.
• Build up your financial vocabulary and buy a financial dictionary.
• Don’t flaunt any successes you have. Your results will speak for themselves.
• Don’t give advice to people who don’t want it. Some people are comfortable where they are. You can warn someone, or ask them if they have heard about what you know, but don’t pressure them or appear to be a know-it-all. Give your advice to people who pursue your insight.
• Hang out where the wealthy hang out, if you can. They might frequent a golf club, a restaurant, a social lounge, etc. You never know what information you may get.
  

You won’t be status quo following this information. Live well and be prosperous!