How to get rich

We gathered interesting opinions on “how to get rich” and as always are sharing them with you below:

Bringing in a steady income is important but when it comes to being a millionaire, bringing in multiple streams of income is even more important. Take on an extra part-time job to bring in a little extra. Side jobs such as grass cutting, car washing and even selling on eBay are additional ways to make money. With the way, the job market can sometimes dip it helps to have a backup plan. This is especially important if your full-time income is not enough to cover all your monthly expenses.

Save 10% of your after-tax income. And remember that there is always someone, somewhere making 10% less than you and they are doing just fine.

Put an advertisement in newspapers and magazines:
“EARN EA$Y MONEY FA$T!! Send $10 to PO Box … to learn how”
Then send them a letter telling them to put an ad in a newspaper or magazine with the above.

The quickest way to get rich is to not spend any of your money, and then you’ll have more than you need. If you save enough money, you might end up with the means to quit your day job and launch your own venture. That means flying coach even if you can afford first class.

Befriend some elderly rich people. Then leverage your relationship.

Get-rich-quick thinking leads to three basic errors:
1. Getting involved with things you cannot understand
2. Risking funds you cannot afford to lose, that is, borrowed funds
3. Making hasty decisions
Each of these actions violates one or more biblical principles... Together they constitute a sin called ‘greed’.

Never become content with your position in anything. Never stop pursuing your dreams and capitalizing on them.

Found a religion and ask for significant donations for your ministries. This has never failed and has made several, otherwise unemployable people, quite rich.

Having a good credit score will help you scale your business and obtain loans, financing, and further lines of credit for big purchases. On the other hand, having a poor credit score will plague you with high interest rates. Many business owners are unaware that they should be establishing credit for their companies in addition to personal credit. A few actions you can take to boost your credit score include paying your bills on time, minimizing your debt, and checking your credit report periodically.

Take whatever you want and give nothing back! (Capt. Jack Sparrow)

Rob some banks :) – like Willie Sutton. When he was asked why he robs banks, he replied slowly: “Because that's where the money is… stupid”

Rule #1 - Don't lose money. Rule #2 – Don’t forget rule #1. (Warren Buffet)

There must be a market for the product or service you’re providing. Make sure you’re providing something customers need. And, If someone else out there is already doing what you seek to do, find a way to differentiate yourself and improve upon it.

Don't invest without a stop loss. if price goes up, reset stop loss to 3-5% of low of the last 2 weeks... because, the trend is your friend, until it ends.

If you wake up before anyone else who might distract you from work, exercise, and daily organization, you’ll be further ahead -- literally. Studies have shown that the most successful among us are early risers. For one, they’re proactive problem-solvers. Magazines have gathered plenty of anecdotal evidence for this lifestyle hack over the years.

Parade the streets in suggestive clothing and, when approached, offer favors in exchange for cash :). Or smack.

Marry a well to do heiress… or her daughter :)

To set yourself up for success, start a company in an area you’re passionate about. Entrepreneurship takes hard work, and you’ll be far less likely to put in that work over the long haul if your heart isn’t in what you’re doing. If you pick an industry because you think it will be a lucrative one, there’s going to be somebody who’s going to know that business better than you do and is going to kick your ass. (Mark Cuban)

Work , find a good and compatible companion, study, save, invest, and stay healthy - simple, isn't it? Repeat for 50 years and you'll be fine.

While homeownership is a dream for many people, the entrepreneurial lifestyle is becoming increasingly remote and transient. Rather than waiting to pay off your home, it might be wise to put your monthly payments toward rent and consider other types of investments.

1. Pay off all your credit cards.
2. Max out your 401K/IRA contributions.
3. Diversify your investments
4. Rinse and repeat for 20 years.

You have talents, experiences, and passions to share with the world. You can make a living if you’re willing to offer your time and skills to help improve the lives of others -- or teach others how you do what you do to be successful.

The quickest way to lump sum earning, is through forex trading. Today forex is the biggest market on the earth with a daily turnover of trillion dollars.

Keep your mouth shut – because silence is golden :)

Small profits add up to big success. Consider investing: You don’t need a lot to get started, and you shouldn’t expect massive returns right away. With patience, you can turn a little bit into a large sum.

People will remember you if you make yourself known for something, or if your product or service is always available at a regular interval. This tactic particularly pays off for entrepreneurs who use social media. Consider people who have made millions as Instagram influencers by being on message when their audiences expected them to be. (Casey Neistat)

How are you going to reach your goal of being rich? What goals will you have to meet along the way? Sit down and physically compose a plan, complete with priorities, timelines, retirement plan contributions -- whatever is applicable to you and your situation.

In recent years, we've become enamored with our own past success. Lulled into complacency by the glitter of our own achievements. We've become accustomed to the title of Military Superpower, forgetting the qualities that got us there. We've become accustomed to our economic dominance in the world, forgetting that it wasn't reckless deals and get rich quick schemes that got us where we are, but hard work and smart ideas, quality products and wise investments. (Barack Obama)

The mind is a powerful thing, especially when it comes to your money mindset. If you have a poor mindset, you will continue making poor financial decisions keeping you living paycheck to paycheck. You can change from a poor mindset to a rich mindset by developing the right habits. A popular way to get motivated and create a rich mindset is to create a financial vision board. You will put up pictures, motivational quotes, and financial goals on your board and hang it where you see it every day. This helps you to see your financial goals daily and can keep you motivated.

Getting on a budget is essential when it comes to getting rich. Budgeting holds you accountable for all the money you spend. When making a budget, you want to find a budgeting method that works best for you and stick to it. You may be surprised that many millionaires stick with a budget to stay financially successful.

You can boost your current income to help in your new financial journey of getting rich. One way to do this is by asking for a raise at your current job. Be sure you have been performing well and have worked for the company for a while if you go this route. If you are a good employee, they may be willing to increase your income to keep you from looking for another job.

Rich people invest time, energy, and money in improving themselves. A man told me once, “The best way you can help people in need is to not be someone in need.” Help yourself out so you are in a position to help someone else out. This means investing in yourself to become great at something.

Commit to being great, not just average. Any industry can be a painful profession for average and bottom performers, but massively rewarding for those that are great. Those that live, breathe, and eat their profession, those that are obsessed, become great.

You want what are called symbiotic flows. Do not just add disconnected flows. Instead, find other ways you can add income to the job you already have. For example – a friend of mine, doing videos does advertising for me — and after proving himself, he started making advertisements for those connected to me. He didn't start a doughnut shop.

First, try to save $100,000. You need to prove to yourself that you can go out and get money. If you only have $10,000 saved, your only priority should be increasing your income so that you can save more. Saving $100,000 shows that you have an ability to make money and then to keep it. Most people can't do either of those things.

Learn the game of money:
- How to read profit and loss statements and other financial forms
- The rules of Tax
- The difference between assets and liabilities
- How to improve your credit
- The difference between good debt and bad debt

Find a rich mentor. Someone who understands what you’re going through. They will understand your ambition, and they can inspire you. They can also help you develop a wealth plan and help you stick to it.

Network with important people. Decide on your area of business and then network with all the players. This will drive business and opportunities to your company.

Track spending, audit expenses and use discounts and promotions on every one of your purchase.

Get rich by surrounding yourself with rich people. Be a loyal friend – offer your help, listen to them, and learn from their experience on how to get rich.

How banks create money

Today we will explain how banks create money out of thin air. Yes, you might not believe it, banks create money out of thin air.

To explain how this is possible let's talk about what a bank does. A bank accepts deposits from the customers but doesn't just hold that money. If all banks did was holding other people's money, there would be no profit in that. Instead what a bank does it takes that money and it loans most of it out. You might wonder, why can't it loan all of it out? And the answer is because sometimes customers come back and they want to withdraw some of that money.

So, if you and I and everybody else goes to the bank the same time to get our money out, the bank does not have that money. They wouldn't be able to pay us, and the bank would default. That's called a bank run and it's bad.

In the United States there is a Deposit Insurance to make sure bank runs don't happen, but the point is the bank doesn't hold all those deposits. They loan it out. The amount of deposits that the bank needs to hold by law is called a required reserve. In the United States it's 10%. This means that the other 90% is something called excess reserves and they're free to loan that out.

Let's say someone goes into a bank and deposit a hundred dollars from their pocket into the bank. This won't change the money supply because money from your pocket is part of money supply, so is demand deposits inside banks. So far there's been no change in the money supply but here's where the magic happens - the bank is going to hold a certain percentage by law let's say 10% so they're going to hold $10. That means they are going to loan the other 90 out.

The person who deposited $100 has $100 in the account but the person who borrowed the 90 also has now $90. That $90 is money that was created from thin air and did not exist until the loan occurred.

If that person's going to spend that $90 and eventually that $90 can make its way back into another bank that other bank is going to take that $90. It's going to hold 10% and require reserves so 9 dollars it holds, and it's going to loan the other $81. Out of that 81 new dollars is new money supply - it was not created until the loan occurred.

Eventually the person who borrow the money is going to take it and spend it and that's going to make its way to a new bank and the same thing is going to happen again and again, and again, and again.

Now it turns out that the Initial deposit of $100 is actually going to become $900 of new money created.

The way you could calculate it is by looking at something called the money multiplier, which is one over the reserve ratio. In this case when the reserve ratio is 10% that meant the money multipliers 1 over 0.1 so it's 10. If you are asking yourself ‘if the initial amount deposited was $100 and the multiplier is 10 why didn't a thousand dollars of new money get created?’ And the reason why is - because the initial hundred dollars was actually part of the money supply to start off with, so the only amount of new money that was created was from the initial loan of $90. The calculation is $90 times 10 equals $900 of new money created.

And that explains the whole idea of fractional reserve banking! Banks hold a portion of deposits and they loan the rest out and whenever they loan it out, they create new money.

Change yourself to make more money

Hello dear money-making friends. Today we are presenting you with 4 steps by John Assaraf, on how to change yourself to make more money.

A lot of people ask me: Can train the brain to help you make a lot of money or not? And the answer is Yes. Maybe I can share a technique with you about how I started training my brain to help me make more money.

Step 1.
It starts with setting some goals for the lifestyle I want to live. And my advisor, Walter Schneider, many years ago is a very successful businessman. He say: to achieve your goals, first you have to know what they are. So, let's say you set a financial goal, say $ 100,000 a year. That's about $8,000 a month, or about $2,150 per week that you want to earn. And let's say you don't earn it right now.

One of the things you can do is to start training your brain to help you earn that money is first and foremost to be clear about the amount of money you want to earn, whether it be a week, a month or a year.

Step 2.
Make a simple assertion like this: "I'm very happy and it's wonderful I make $10,000 a month” - simple affirmation. Now, I want you to read that affirmation every morning 5 to 10 times, and every night before you go to bed, 5 to 10 times. And when you read that affirmation, I want you to close your eyes, and I want you to practice mental repetition. You receive that money in the form of a check, either cash, or through your bank account, and see that money goes into your bank account. I want you feel how does it feel when continuous each month has 10, 000 dollars gets transferred into your account every month

And you can choose whatever amount you want this way. and when you close your eyes, and you imagine that money is going into your account, what I also want you to visualize is the impact of that money will be in your life, in the life of your family and friends, in the community in which you live and the charities you are trying to support. Totally like in a movie about psychology add to the emotions, as if you were a Hollywood actor or actress are pretending that is actually happening.

So, you read your affirmation ‘I am very happy and feel great for the fact now I make 10,000 dollars per month’ and when you do it and repeat it, your brain exercise visualization - what does it look like.

And that means use your brain to look and feel as if it were real right now. That activates different parts of your brain, namely left frontal cortex. It's the genius, CEO, Einstein - part of your brain. That might really help you out how to achieve that goal and dream. So, if you do it every morning and every night before bed, in the morning while walking, at night before going to bed, you will start to master your brain with an affirmation, with a mind exercise, and you will be aware of your brain.

Step 3.
And if you want an extra step, what I want you to do is take a vision board, or create one on your computer, or a physical table, and cut out some images of what lifestyle earning 10,000 dollars per month allows you to live.

What kind of car do you want to drive?
What kind of places do you want to go on vacation?
What house would you like to live in?
What kind of charity would you like to support?

Get pictures of the results when you earn 10,000 dollars per month or $100,000 per year (or more) and begin to see yourself in that scenario and act as if it were real right now, and then

Step 4.
Every day ask yourself one question:
‘What can I do today to make that money REALISTIC’

And do one or two action steps to make it happen. Hence the physical activity in addition to mind training, with affirmations and mental exercise, visualization, is one of the best to start training your brain to achieve financial goals you have.

Investing tips by Tony Robbins

We will be presenting 3 key tips for beginner investors and everyone who would like to start investing in the stock market, presented by the greatest coach of all time - Tony Robbins.

Here is what Tony said about investing:

The average person thinks finance is so complex because frankly the industry tries to make it sound complex. They use words that you don't know so you don't know what to do... What happens is we just give them our money and say deal with it.

1. You need to know that you can't wait until you have a ton of money to start investing.
If you can invest in business, even a small amount, you can grow. It doesn’t matter how small it is, the important thing is to automate it.

You got to take a percentage of what you earn and pretend it's a tax. You should not waste that money. It automatically goes straight to the investment account and you never see it as money you can spend. When you save 20% and you compound it, the numbers are incredible. And then the problem is: If you do that first step, but you don't do the second step which is:

2. Become an insider and understand the rules of the money game. I'll give you 2 or 3 of the Myths, really fast:

2.1. One, the myth that someone says give me your money and I'm going to beat the market. Over any ten year period of time, 96% of the mutual funds will not even match the market.

Warren Buffet flat out used to confirm the same trend. 96% of his money, all that money does not go with any mutual fund, it goes straight into the index.

What the index is you get a piece of all the largest companies in the world but it costs almost nothing to get in. You hire someone because you are thinking "I have a family, I have a business, I have a life, I'm not an investor- I'm going to hire someone who's a professional, it makes sense they would do better than me."

Unfortunately that's wrong.

Only 4% of the mutual funds will beat the market. 4% chance of finding the right mutual fund, the chance is so slim that it will happen.

2.2. And, the second myth is after getting terrible performance, people think "Maybe, fees don't really matter" or they'll tell you it's only 1%. And on Forbes, it says the average fee is 3.12%,
1% versus 3% is a big difference. And it really matters - just like you grow by compounding, your fees also compound. If you have 3 people and one gets 1% fees, another 2% the other 3%, and they all get the same return. And, they start out with 100,000 dollars at 35, accumulating for 30 years until they are 65 years old. If it is average 7% compounded, they all get 7% return and when they go to retire, the person who had 1% in fees is going have 574,000 dollars. The person who had 3% in fees will have only 224,000 dollars. This is 77% less money!

If I said to you: "Here's the deal, let's do an investment. You put up all the money, you put up all the money, you put up all the risk, I'll put up no money and I'll put up no risk. If you lose I win, and if you win I win and if you win, over the life of the time I'll get 60% of what you earn." That's a mutual fund with 3%.

3. Instead, you could own the stock market – invest in the S&P500, you could own a piece of all 500 big companies through like the Vanguard 500 and you get the best of all the business - Apple, Exxon, etc… All these companies – you invest into and it cost you only .17%. And if you go to a normal mutual fund you might own the same companies for 3.17%. That's like buying a Honda Accord for $20,000 in the first scenario or $350,000 in the second for the same car.

That happens every day with finances because people don't know how to look at this so when they read the book Money Master the Game: 7 Simple Steps to Financial Freedom that will never happen to them again.

How debt could help you generate money

Yesterday we got an interesting email from a guy named Tom. He challenges our articles and ideas about saving money and investing savings. Tom is sharing the idea that rich people never save money – they make money out of the money of the others. Borrowing money with low interest and investing them into profitable assets.

Tom really has a good point so in this article we will cover how and why debt could be considered something good and could earn you a fortune.

1. Not everyone has enough capital to start their own business
If you have a brilliant idea or discovered a profitable niche waiting for your savings to grow until you invest in it might be not so clever. In the best-case scenario, somebody might get into the niche or simply steal your idea and make it true, benefiting from it. Timing and execution are the primary reasons behind each success story.

Also, if you have a working business model and you want to expand on it, then basically debt could be a better option to go and get capital instead of waiting for your savings to grow up. This is true, especially if you don’t want to give away equity. A lot of business owners prefer to keep most of the ownership to themselves and build the business from the ground up. After all, it’s their idea, their dream, and their sweat and tears.

2. Borrowing money to invest in real estate
Real estate is thriving most of the time, and although it might be slow and dependent on the country or region, as a rule of thumb a property nowadays cost much more than 20-30 years ago. In some countries and regions, it could be more than 300% increase in the value.

If you want to invest in property, make sure to do some analysis to make you can use it as an investment. So, when you borrow money the tenant or if it is a commercial property then the business owner who is renting it is going to pay you a monthly rent. Using this income, every month you would be able to cover the payments on your debt and probably even have a little bit of cash leftover.

3. Borrow money only if you will be generating wealth out of it
If you know how to use and invest money correctly, by any means debt is your friend. It is important to remember - every time you borrow money you need to understand that you have to have the money to pay for it. Therefore, it's important not to borrow money if you just want to go and buy presents for your family, but only if you are going to invest and make more money out of it. The only time that you should borrow money is if you know that you can create enough cash flow from that debt to pay off the debt.

4. Borrow money when your business has a minimum 30% return out of it
If you own an Amazon business or Shopify, or even a regular convenience store and you know that whatever money you put into the business - you can make a minimum of a 30% return on your capital, so you should be able to pay back your debt with that money and be able to grow faster your investment, than debt is the best way to go.

5. When you borrow money you leave most of your cash for emergencies
You are not depleting your actual cash flow and actual cash so in any case of unforeseen events, you would be able to stabilize faster and not lose your business to an unfortunate event.

If you ever have a down month, or you need to get more supplies or if you need some equipment it's best to have a little bit of money saved for your business. Most markets and environments are unpredictable, and there are always good months and bad months

A good example is the retail business. Usually, the Christmas season is strong, so November and December are usually profitable. At the same time in January the sale drop and then throughout the year they're more or less consistent, depending on the type of business. Some businesses have a strong summer, while others are growing over the winter season.

6. You can use debt when it comes to leasing
There are a lot of business owners who need better machinery or equipment for their business. They are usually expensive, and it is much better for some business types to consider leasing, instead of permanent purchase. Your business will save thousands of dollars if you just lease and will only be paying for the time that you're using the equipment and the machines and when you don't need them anymore, depending on your lease contract, you can return it or you can exchange it.

Very often that's a 100% tax write-off and when it comes to the debt you borrow to pay for the lease it's 100% percent tax write-off so you're getting a tax advantage and you're able to grow your business a lot faster. That’s why many business owners, as Tom mentioned, prefer  debt when it comes to growing wealth than anything else

7. You can borrow against the business
That's cool. It is a good idea to keep your personal and your business separate. This is a very strong foundation for your business so your business can borrow on its own merit. When you're borrowing against your business idea then it is possible to have the business as a warranty.

If you try to borrow money on a personal side, the bank will ask you about your credit score (we covered in the previous article). Your credit score needs to be good; you need to have low utilization rates, and you need to have enough income to support the monthly fees and taxes.

The other way to borrow money from the bank is through a balance sheet, from your business.
A balance sheet shows the bank your financial education and if you are borrowing from the bank, they want to check how much cash flow is coming in; what's your business model like; how much debt are you going to be taking on; who's going be paying for that debt.

Therefore, you need a financial statement and balance sheet and if you can show the bank that you did your homework and your financial IQ is good then they can lend you even more money.

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As a conclusion, it is true that the richest people in the world use debt to generate more money than anything else. After the gold standard removal, and the inflation rate skyrocket – many see money as plain pieces of paper already, without any value. So, having such a mindset helped the rich borrow huge amounts of debt, invest smartly in something more tangible, and generate huge amounts of profit. We would also like to warn you to be careful though. Make sure you have a good plan and profitable place to invest the debt, otherwise it will just be a liability to you and not bring you any benefit.

What is a credit score?

Every time you apply for credit (mortgage or any other loan), the bank (or lender) would like to know what is the risk involved into loaning you money. Usually the lending institution issues a credit report and most of the time part of that report is your credit score. It helps the lenders evaluate your profile and your application for credit.

The credit score is just a number, rating creditors use to assess the risk when making lending decisions. There are two most commonly used credit score providers. The first one is FICO. And the second VantageScore. The components of the credit score are: the debt you currently have; number of credit cards you own and any unpaid amount on them; paying your bills on time; how much of your money is blocked monthly; how much your income is, etc…

The credit score range between 300 and 850, and it affects the financial decision if a loan is going to be granted to you or not. It could even be required and checked by landlords – and if low, there could be a refusal to rent a place. Your credit score influence the amount of credit available to you and the terms (interest rate, period, discounts, etc.) that lenders are going to offer.

A credit score of 700 or above is considered good. An excellent credit score is such of 800 or above. Keep in mind most people credit scores range between 600 and 750. The higher the score, the better credit decisions and more certainly a credit will be given to you.

There are sites online where you may check your credit score for free, anytime you need to. Example of such website is: Clearscore. Your credit score impacts all of your adult financial live, so check it out.

Should I keep my money in the bank

Recently, we received a question from a guy who seems to have a lot of money and asks should he keep them in the bank or at home? As usual, we will answer the money question looking at it from different angles and providing the best financial option.

1. Storing money at home is not a good idea
It depends on your income, but in general, if you keep more than 200USD in your house – that’s a bad idea. There are two main reasons for this. You might get robbed, or you might lose your money via an accident (fire, neglect, etc…)

2. You are losing on interest rate
Yes, we know the rate is negligible (nowadays), but even so, every bit is important. Besides, the interest rate might change in the future as currently, it is at minimum for over decades.

3. Money loses value over time
Sad but true. Printing money and “healthy inflation” are the main reasons. The devaluation is actually huge and about 3-5% over each year (could be more during a crisis). One US dollar in 1913 had the same buying power as 26 US dollars in 2020. That’s 2600% devaluation for a little bit more than 100 years period, and it means roughly 260% devaluation per 10 years. The recent 20 years were not so aggressive, so it could be less but probably still about 100% for the recent 10 years.

4. Money is protected in the bank (in many countries)
The banks are the safest place for up to a specific amount of money.  In many countries, governments issued protective laws and directives to protect a certain amount of money. In the UK for example, the money is protected by the Financial Services Compensation Scheme (FSCS) for up to 85,000 GBP, per person per firm in 2020.

In the US the Federal Deposit Insurance Corporation (FDIC) insures the money deposited into each bank, up to 250,000 USD for each account.

It is important to remember – if you have more than that limit stored, move the excess to another bank to be fully protected in case of emergency or crisis.

5. Accidentally throwing away cash or leaving it behind
It happens more often than you could imagine. Many people reported they completely forgot about the money stored in the mattress and when throwing it away or leaving the place, the money was gone for good.

In June 2009, an Israeli woman threw out an old mattress. What she was not realizing - it was stuffed with her mother's 1million dollars life savings. The culprit, identified only as Anat, had bought the new bedding as a surprise for her mother. When her mother found out about her gift, she lost consciousness, before revealing the contents of the mattress.

Ontario man forgot about 100,000 CAD inside an old TV. He hid the money decades ago and completely forgot about it. Luckily, the TV was sent for recycling and the employees of the Ontario recycling plant were in shock to find the treasure well hidden, inside the crappy TV.

So, the bottom line is – it’s really a bad idea to keep money at home. It’s much better to keep them safe in the bank or invest using alternatives we will be covering in a future topic.