A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
-Suze Orman
For majority of beginner investors, the ultimate aim of investing is to achieve financial freedom.
Financial freedomis essentialto enjoy a happier, richer lifein our adult lives. In addition, thisshould be your goal as a beginner investor.
What is Financial Freedom?
The bestdefinition ofthe subject I ever heardisthe number of days you canlive without working andmaintain your present standard of living. Legendary inventor Buckminster R. Fuller coined this definition.
TheGreatMoney Mountains
There are three great money mountains you can tap to become wealthy: real estate, stock market and marketing mountains. Thesethree are the proven paths to wealth. Majority of individuals that make theForbes rich list, have achieved their wealth through either one or acombination of these money mountains.
How toApproach Investing in Real estate
The ownership of property has been a provenwealth producing Money Mountains for centuries. You should make owning income producing properties as part of your long-term wealth creationstrategy. There are tons of books written on techniques and strategies for investing in real estate. The most important thing you need to know is how to leverage the real estate mountain to accomplish your goals.
Three factors are critical to success in real estate investing:
Finding. For you to become a successful investor you need to know how to find bargain properties...properties below market value that will pay for themselves and bring you profits. Successfulinvestors know thatprofit comes from buying rightnot when you sell.
Funding. You must also know how to fund your property deals. There are many ways to fund deals, your ability to get financing is the key to buying bargain properties. The good news is you caneasily get financing if you know where to find the money. Money follow good deals...so make sure you become good at finding good property deals
Farming it. The other critical skill you need to succeed as a real estate investor is to know how to reap profits fromdeals. You may decide to hold on to properties you find because they have good cash flow that deliversincome to your bank account. Moreover, you could also flippropertiesfor profit. The actions you take depend, on the investing cycle you find yourselfand your core investment philosophy.
Real estate is a powerful wealth-building vehicle you must consider as a beginner investor.Thewealth created frominvesting in properties tends to be stable and less volatile compared to the stock market.You can also predict the cycleswith ease compared to the other types of wealth building vehicles.
Leverage is also a big advantage of investing in real estate, because you can buy properties with little or no money down.
There are thousands of properties for sale in your city. When you have these three critical skills to success, you can weed out badproperty deals, hone down to find bargain properties, fund the properties, reap the profits and grow wealthy in the process.
It is about finding it, funding it and farming it.
Think rich and grow rich.
Showing posts with label Freedom. Show all posts
Showing posts with label Freedom. Show all posts
Thursday, May 24, 2012
Monday, May 21, 2012
Bad Credit Debt Consolidation Royal Road to Financial Freedom or just Symptoms Cure
Do you think you are a typical American citizen?, If the answer is yes, then your household probably also has a debt of about $14,500 and you annually spend more than you earn. Not an American - ok, don't worry! The situation in Canada, the UK or other developed countries is not much different.
But how to get out of debt if you are not able to pay your monthly obligations? It seems difficult to find a solution, but the earlier you start reducing or consolidating your debt, the better. With time it becomes even more difficult.
Many advisors recommend starting with debt consolidation in order to recover control over personal money management. Debt Consolidation means in general, taking out one loan to pay off several others. This is often done to secure a lower and fixed interest rate and has the convenience that you only need to service one loan instead of many. If you manage to get a considerably cheaper short-term bank loan or you can achieve a mortgage refinancing or a home equity loan, you save a lot of money and will be able to pay back your debt faster or even at once. As a first step you should consolidate all of your short-term debt into one loan in order to reduce your monthly payments. Important: Start with your credit card debt as you usually pay a much larger interest rate than even with an unsecured loan from a bank.
RISKS AND PROBLEMS OF DEBT CONSOLIDATION
You should know that Debt Consolidation also has its drawbacks. First of all it will be difficult to obtain a cheap loan if you have a poor credit score or even worse if you've declared bankruptcy.
These days, more and more people are suffering difficulties in servicing all their debt repayments, with the consequence that they are getting negative credit report entries and thus decreasing their credit worthiness. If you don't get a loan due to your poor credit score you are in trouble and it is recommendable to request help from a professional financial consultant. There are several options for credit repair programs and bad credit debt consolidation [1], which help to improve your credit score and enable escaping from this catch-22. But in recent years, reports in the media have raised concerns about the use of consolidation loans [2,3]. Many people are tempted to consolidate unsecured debt into secured debt, usually secured against there home.
Robert Watts and Roya Nikkhah from the Sunday Telegraph [3] report: -Rising interest rates and large credit card liabilities are driving increasing numbers of consumers to take out controversial loans that put their homes at risk. Five interest rates rises over the past 11 months will leave scores of people unable to meet monthly repayments on credit cards, personal loans and car finance deals-. Although the monthly payments can often be lower, the total amount repaid might be significantly higher due to an elevated loan period. There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is important to learn more about different options [1] before making a decision.
What consumers need to know is that Bad Credit Debt Consolidation often only treats the symptoms of debt and does not address the root problem. -The problem is that people see their monthly repayments are lower and then go out and spend the difference. They don't understand the long-term picture or the trouble they've got themselves into-, says Mr. Treharne, head of personal insolvency at the financial services group KPMG. Good debt management is 80% made in our heads and only 20% based on financial technical knowledge. Only if we manage to change our behavior, a Bad Credit Debt Consolidation will be a sustainable solution. Everybody knows that this is not an easy task, but there are proven systems for improving Debt Management and achieving our financial freedom. The first step is as simple as well as difficult: Stop Spending - stick to your budget!
This is common sense and the traditional Grandma's way of handling money, but it always works. Statistics show that more and more people forgot this golden rule of money management and it pulls them deeper and deeper into the dept swamp. There are hundreds of publications providing systems and money management plans. One of the most known approaches is the -Debt Snowball Plan- from Dave Ramsey [4]. Ramsey's money Debt Snowball System as already helped hundreds of thousands of people change their lives through simple determination and following a plan that works: Stop everything except minimum payments and focus on paying off the smallest debt first. The advantage of this system is that paying off the smallest debt gives you quick feedback, and you are more likely to stay with the plan and keep stepping up to the next larger bill. Once you have a real debt management plan in place, it's only a matter of time. Important for the success of the system: avoid using credit cards, as you need to control your expenses. Credit card debt is a major problem in developed countries and seems to be a psychological problem of our modern civilization. With plastic money you don't -feel- the money you are spending and the card remains like new even after using it hundreds of times. Cut out habits that make you spend more and use common sense to control your budget. Only following these -simple- rules, Debt Consolidation will be sustainable and not just a symptoms cure.
CONCLUSION
Bad credit Debt Consolidation means taking out one cheaper loan to pay off several others. The main problem with these loans is that Bad Credit Debt Consolidation often treats simply the symptoms of debt and does not address the root of financial problems. Affected people need to change their overall behavior and implement a money management plan in order to achieve sustainable financial stability and not just curing the symptoms of their money problems.
LITERATURE
1. Bad Credit Debt Consolidation - Credit Optimization Strategies , Two-Approach Job Assistant and Career Information Guide
2. Wikipedia, The free Encyclopedia
3. Robert Watts and Roya Nikkhah, More people have loans that risk homes, Sunday Telegraph, 7/7/2007
4. Dave Ramsey, The Total Money Makeover (critical review)
About the Author:
Oswald J. Eppers, PhD, is manager of the consulting firm E&R InterConsult and founder of the Two-Approach Job Assistant and Career Guide, a free Human Resources Bank and Career Information Resource. He has more than 10 years experience as freelance consultant in the field of outsourcing services, environmental and quality management.
But how to get out of debt if you are not able to pay your monthly obligations? It seems difficult to find a solution, but the earlier you start reducing or consolidating your debt, the better. With time it becomes even more difficult.
Many advisors recommend starting with debt consolidation in order to recover control over personal money management. Debt Consolidation means in general, taking out one loan to pay off several others. This is often done to secure a lower and fixed interest rate and has the convenience that you only need to service one loan instead of many. If you manage to get a considerably cheaper short-term bank loan or you can achieve a mortgage refinancing or a home equity loan, you save a lot of money and will be able to pay back your debt faster or even at once. As a first step you should consolidate all of your short-term debt into one loan in order to reduce your monthly payments. Important: Start with your credit card debt as you usually pay a much larger interest rate than even with an unsecured loan from a bank.
RISKS AND PROBLEMS OF DEBT CONSOLIDATION
You should know that Debt Consolidation also has its drawbacks. First of all it will be difficult to obtain a cheap loan if you have a poor credit score or even worse if you've declared bankruptcy.
These days, more and more people are suffering difficulties in servicing all their debt repayments, with the consequence that they are getting negative credit report entries and thus decreasing their credit worthiness. If you don't get a loan due to your poor credit score you are in trouble and it is recommendable to request help from a professional financial consultant. There are several options for credit repair programs and bad credit debt consolidation [1], which help to improve your credit score and enable escaping from this catch-22. But in recent years, reports in the media have raised concerns about the use of consolidation loans [2,3]. Many people are tempted to consolidate unsecured debt into secured debt, usually secured against there home.
Robert Watts and Roya Nikkhah from the Sunday Telegraph [3] report: -Rising interest rates and large credit card liabilities are driving increasing numbers of consumers to take out controversial loans that put their homes at risk. Five interest rates rises over the past 11 months will leave scores of people unable to meet monthly repayments on credit cards, personal loans and car finance deals-. Although the monthly payments can often be lower, the total amount repaid might be significantly higher due to an elevated loan period. There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is important to learn more about different options [1] before making a decision.
What consumers need to know is that Bad Credit Debt Consolidation often only treats the symptoms of debt and does not address the root problem. -The problem is that people see their monthly repayments are lower and then go out and spend the difference. They don't understand the long-term picture or the trouble they've got themselves into-, says Mr. Treharne, head of personal insolvency at the financial services group KPMG. Good debt management is 80% made in our heads and only 20% based on financial technical knowledge. Only if we manage to change our behavior, a Bad Credit Debt Consolidation will be a sustainable solution. Everybody knows that this is not an easy task, but there are proven systems for improving Debt Management and achieving our financial freedom. The first step is as simple as well as difficult: Stop Spending - stick to your budget!
This is common sense and the traditional Grandma's way of handling money, but it always works. Statistics show that more and more people forgot this golden rule of money management and it pulls them deeper and deeper into the dept swamp. There are hundreds of publications providing systems and money management plans. One of the most known approaches is the -Debt Snowball Plan- from Dave Ramsey [4]. Ramsey's money Debt Snowball System as already helped hundreds of thousands of people change their lives through simple determination and following a plan that works: Stop everything except minimum payments and focus on paying off the smallest debt first. The advantage of this system is that paying off the smallest debt gives you quick feedback, and you are more likely to stay with the plan and keep stepping up to the next larger bill. Once you have a real debt management plan in place, it's only a matter of time. Important for the success of the system: avoid using credit cards, as you need to control your expenses. Credit card debt is a major problem in developed countries and seems to be a psychological problem of our modern civilization. With plastic money you don't -feel- the money you are spending and the card remains like new even after using it hundreds of times. Cut out habits that make you spend more and use common sense to control your budget. Only following these -simple- rules, Debt Consolidation will be sustainable and not just a symptoms cure.
CONCLUSION
Bad credit Debt Consolidation means taking out one cheaper loan to pay off several others. The main problem with these loans is that Bad Credit Debt Consolidation often treats simply the symptoms of debt and does not address the root of financial problems. Affected people need to change their overall behavior and implement a money management plan in order to achieve sustainable financial stability and not just curing the symptoms of their money problems.
LITERATURE
1. Bad Credit Debt Consolidation - Credit Optimization Strategies , Two-Approach Job Assistant and Career Information Guide
2. Wikipedia, The free Encyclopedia
3. Robert Watts and Roya Nikkhah, More people have loans that risk homes, Sunday Telegraph, 7/7/2007
4. Dave Ramsey, The Total Money Makeover (critical review)
About the Author:
Oswald J. Eppers, PhD, is manager of the consulting firm E&R InterConsult and founder of the Two-Approach Job Assistant and Career Guide, a free Human Resources Bank and Career Information Resource. He has more than 10 years experience as freelance consultant in the field of outsourcing services, environmental and quality management.
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