Annoynomous A1


What is the best way to invest $300,000? How can I save money on ALL things? ex: electric, water, food, etc. What type of bank account has the highest paying interest and would let me withdrawl and deposit any time I wanted without a fee? Any other tips?

sParKy


I really need to save for a house deposit…i’ve put loads on ebay already! What else can i do?

No job – so job ideas i can work around university/holidays?
My only outgoings are – mobile bill on lowest tariff and petrol to commute to uni and drive bout.

I’ve got 12 months to save as much as possible and need any ideas! I’ve got 3k so don’t know the best place to invest that?

So i need job ideas suiting my circumstances, where to invest money and any other money making ideas or tips?

Paul McCormick


$700 Billion Dollar Bail Out – This week we have seen possibly the biggest financial upheaval in the American economy since the great depression; and some say this is worse but in different ways. We’ll talk about not only what this means to the American people, but also show what opportunity it creates for those like you and me who chose to think like a millionaire and make this an opportunity to create more wealth and more freedom.

First let’s shed some light on this weeks unprecedented events at the Federal level.  Yesterday John McCain called a meeting with the white house resulting in a meeting with President Bush, McCain, and Obama in attempts to bring agreement on a plan to go before congress immediately allowing the treasury department to buy huge amounts of bad debt in the form of delinquent mortgages that are now owned by banks.

In simple terms, millions of Americans took out home loans during the last few years and are now unable to pay them back.  Here’s how the normal process works.  You want to buy a house, you go to the bank and get a loan, the bank loans you $300,000 and you sign a contract agreeing to pay them back 6% interest for 30 years.

That bank turns around and sells that contract to Fannie Mae or Freddie Mac, for $300,000. So the bank you got the loan from, now has the $300,000 back in their hand so they can offer another loan to your neighbor or anyone else who comes along. Each time the bank loans a person money, they turn around and sell that contract to Fannie or Freddie to get their money back. This is how banks keep having more money to loan.

Fannie Mae and Freddie Mac for most of the last century were private institutions regulated heavily (or so we thought) by the federal government.  So, where does Freddie and Fannie get their money? They turn to investors, teachers retirement plans, mutual funds, etc.  Investors invest in retirement plans, mutual funds, etc in order to receive a 6% or so return on their money.

So, investors pay into investment vehicles, like a retirement plan or a mutual fund. Fannie and Freddie receive those large sums of money, Fannie and Freddie take that money and buy the loan contracts from your bank.  When you pay your house payment to your bank it goes to your bank, then to Freddie and Fannie and eventually into the hands of the investors who put up the money in the first place.

When home owners start defaulting and cannot pay back the house payments, Freddie and Fannie are still on the hook to pay their investors back, meanwhile they start going broke, because no money is coming in, but they still have to pay back to their investors.

So, they were on the brink of disaster last month and that’s why the Federal government took them over in an unprecedented effort to save the financial collapse that would have resulted; especially when considering that over half of all homes in America are backed by Freddie and Fannie. So now, Freddie and Fannie are government owned and controlled. The Feds (you and me as taxpayers) are now guaranteeing the return to the investors.

This week we saw a similar effort in the works to rescue the banks who are facing bankruptcy because of the millions of home buyers not able to pay back mortgages. Unlike the Freddie and Fannie scenario, the federal government is not going to take over the entire national banking system, but they did propose to buy the bad contracts from the banks, in an amount that may reach $700 Billion in bad debt.

How does this help? Initially it will put cash back into the hands of the banks so they can continue to lend money to investors seeking loans. Short term it stops the crisis.  The real question is, what will happen during the following 12 months and next two years now that the Federal government just bought the bad debt. After all the our federal government is already 11.7 trillion in debt, and now we want to bail out private banks with a plan to buy all their bad debt.

Since the Feds would be buying the bad debt at a large discount, they hope that eventually those contracts will be paid back and in the end the Feds could make a profit. If history repeats itself, we find that the savings and loan debacle of 1986-1991 resulted in the Resolution Trust being set up to do essentially the same thing.  In that case the Feds bought bad debt to bail out the banks and then sold those notes to investors at discounts.  This may be a repeat of history. the big question looming in the air is, will it work again? No one knows for sure.

What does this mean for you and me?  Uncertainty for sure. These are unprecedented times and the amount of banks failing is increasing.  A Billionaire close to the issue who was quoted in USA Today predict that up to 1000 local banks could fail during the next 18 months, resulting in a handful of conglomerates running the national banking system.

Yesterday’s meeting between President Bush, McCain, and Obama was hoped to reach a consensus; they did not.  But in principle they have reached a common understanding to implement this massive bail out immediately. But before it is final it must go before congress and be approved.

Wil this mean banks will be more willing to lend you money to buy a home or refinance a home? Probably not. The banks are scared, and do not want to take on any more bad debt. The lending standards are still very strict, thus resulting in continued tight times for anyone wanting to buy a home. This offers no help to those home owners struggling to make the payments; they still may get foreclosed on or go bankrupt.

What does this mean to you and me?  Home prices will remain depressed for the next 18 months and likely continue to decline another year for sure, resulting in more defaulting home loans.  Lack of money moving in the economy will put pressure on consumer goods to increase in price so manufacturers and retailers can cope with reduces sales.  So in summary a still worsening economy with risk of future inflation.

Why am I telling you all this bad news? Because for people like you who want to be a millionaire, to be financially free and be able to make millions and millions of dollars in any economy, there is always a way for those who know how to succeed.  Everyday when I see the news of failing banks and economic crisis, I actually get excited.  To me, change is fun and exciting.  Most people would not understand this, but when you learn to think like a millionaire, you realize you cannot fail.  I know 100% that I will make tons of money this year in a good economy.  And when I read the doom and gloom in the paper I know that most of the competition will get scared and freeze, allowing me to make my millions more easily because I have no fear.

When you acquire the mind of a millionaire you will succeed no matter what the situation is.  And when everyone else is scared and becoming more conservative, it takes out all your competition.  That’s why the rich keep getting richer and the poor keep getting poorer.  And in good economic times the rich get richer, and in bad economic times the rich get even richer yet.

So, how do you learn more? I walked away from my corporate career as a CEO in order to help the world become financially savvy.  I want to make millionaires. I have an ongoing mentoring program to help you think like a millionaire, act like a millionaire and become a millionaire.  I don’t make my money off people like you signing up for my programs.  I make money, but let me clarify, still 98% of all my money is earned in other ways.  I require you to pay a little for the process because when you pay something, it becomes more important to you and that helps you succeed.

If you want some free moeny reports about how you can start thinking like a millionaire go to www.FormulaForMillionaires.com

Paul McCormick, Author of Secrets of the Millionaire Inside

Ryan


Every once in a while someone becomes an instant millionaire by getting lucky. They might inherit a bunch of dough, create a product instantly wins popularity contests, or hit the lotto. For most of us though, becoming a millionaire is hard work. It takes time, discipline and some patience.

But for those who are determined to retire young and retire rich, it can be done. And becoming a millionaire does not require a high income. While that helps, building wealth is ultimately the ability to manage your money properly.

Here are some tips to get you started today:

1. Reduce consumption and increase investments.

2. Create and stick to a budget.

3. Increase your financial IQ.

4. Make contributions into investment vehicles on a consistent basis.

5. Start a part-time business to increase income and take advantage of tax write-offs.

6. Surround yourself with like-minded people who believe and support your goals.

7. Find great CPAs and other trusted advisers.

8. Set short-term and long-term goals.

9. Make a commitment to become a millionaire.

10. Start now. Time is your friend when it comes to investing.

Making your first million dollars is the hardest, but it will never come if you don’t take action. Continue to increase your financial literacy by subscribing and visiting financial websites, but don’t get stuck in “analysis paralysis” mode. While the information on these websites, magazines and new related TV programs can be very valuable, the prescription to making money is actually very simple. It’s just a matter of knowing the fundamentals and how to apply them.

Ryan


Wouldn’t it be nice if there was a specific formula for making millions of dollars? “If you want to become a millionaire, all you have to do is A, B and C.” You know . . . . “Go get a degree in small-business management, talk to Jim at the bank to set you up with a Subway franchise, and invest in Microsoft today because it will skyrocket tomorrow when they report earnings.” Unfortunately, life is just not that gravy. The good news is there are some defining characteristics, habits and belief systems that self-made millionaires share in common. Take this a step further, and I believe almost all self-made millionaires’ financial success boils down to one thing.

Now, I’m not talking about the 0.5% of “self-made” millionaires that hit the lotto or scored big on buying Microsoft at its lowest-low and selling at its highest-high. I mean the people that sacrifice, slave, and sweat their way to become financially free. I’m referring to the people that spent 20-30 years on a strict budget, giving up everything to build successful businesses – all the while living well below their means, and doing it happily at that.

What makes these people not want to spend the money they worked so hard for on a nice car or an extravagant dinner? Why would they choose to read Money magazine and study business over watching the NFL draft? This lifestyle just sounds boring and exhausting. After all, what’s the point then of being filthy rich?

The answer is Drive. But not only drive – the meaning behind the drive. If you peel back the onion, you will find that what makes millionaires become millionaires is an ultimate, singular factor that keeps them grinding away to accumulate so much wealth. How else can someone willingly sacrifice so much over such a long period of time? Because they have no choice. The reason behind their motivation is so strong that there is no alternative. This is living life as they know it.

To become a self-made millionaire, without the big score or a grand inheritance, you will likely have to do it the hard way like most people in this class. If you are truly focused and determined to become a millionaire, you are far more likely not to succeed if you are unable to identify that element that pushes you through the pain. It is essential to dig down and find that “why” factor.

The reason behind your drive should be so strong that it makes you compulsive about becoming wealthy. Your “why” should establish your habits, attitudes and beliefs of money and wealth. It will invariably define who you are as a person.

Once you figure out the real reason you want to be rich, it is important to remind yourself frequently. The road to financial freedom has many ups and downs, good years and bad years, happy days and bad days. If you remember the why, the how does not matter. At least it doesn’t for those who have achieved their goals.This theory, by the way, holds true in business and life in general. It is what creates Olympic athletes, successful business leaders, great spouses and parents, etc. Those who have a relentless passion to succeed in order to fulfill their “why” are unstoppable. Discover your “why” and you have acquired the one, essential trait for becoming a self-made millionaire.

Ryan


In order to become a millionaire, all you have to do is have a little bit of self-discipline, a long-term outlook, and a saving attitude. Believe it or not, these characteristics are far more relevant than your actual income. Study upon study show that the general population of self-made millionaires is not actually high-income producers. Instead, they simply have an ability to save part of the money they do make, put their money to work by investing in low risk index funds, and keeping their debt low.

The rules to become a millionaire are not difficult to understand, but most people have a hard time following them because they can not get past the first requirement, which is to develop a spending attitude. In general, people spend their paycheck before they even get it, and by the time they pay taxes, their bills, and their credit cards, it’s all gone. Unfortunately in most cases people not only all gone, they still owe more money that they don’t actually have.

So how do you become a millionaire by 50, and how do you create a saving attitude? It really starts with having a vision. If you have a deep desire to become a millionaire, have thought about what it would be like, how it would feel and what you would do, the rest of the pieces will fall in place. Without a vision and a desire, it will be too difficult to achieve your financial goals because you will see more benefit in spending the money you earned today rather than saving for tomorrow.

Once you have identified exactly why you want to become a millionaire, the next step is to focus on a plan to actually make it happen. This is the easy part. Simply make a commitment to set aside a certain amount of money from each of your paychecks. This will first go to becoming debt-free, and then to accumulate wealth. This is simple to do because you don’t allow yourself to make the decision, you force yourself to save by setting up automated balance transfers with you bank account. That way you completely remove the emotion of having to save money and you’ll quickly learn to leave within your adjusted “take home” pay.

flare_ztx


Okay, I got this finance project as an alternative project to what the class is doing because I am excelling in the class. I was asked to make a retirement plan for my teacher, who earns $43,000 a year, $75 a month goes to her Roth IRA and $75 a month goes to her 403(b). She owes $118,000 on her house, $10,000 on her car and $25,000 college debt. I can get more info if needed.

Now the question is, how should she invest her money and in what should she invest her money to have a nice retirement. She is 25 and should retire by 65 or earlier. I have an idea of what she should do, but I am not familiar with Roth IRA or 403(b)… therefore, I am not sure how she should use those to her advantage.

Thanks!

tj 456


im 13 years old and want to know how i can start saving to become a millionaire. what should i invest in. what should i do

i have 1400 dollars in cash to use and im making 15 dollars mowing the lawn about every other week

i want to be rich

metalgearsolid


Ok im barely in highschool and im not currently making that much money but that is what i plan to at least make after college. How much money will be reduced from my salary for like taxes? Also i plan to live with my Mom since we only live a block away from the college im going to. What other costly matters do i have to look foward to in life? I plan on wasting as little as possible and live off my mom until i make a million and then start investing and paying her back. How many years will it take me to reach my million doller goal? I just want to be young and rich thats all.

Ryan


Becoming a millionaire is not easy, but fundamentally it is not very hard either. Learn to develop these habits of millionaires and you will become rich automatically.

There are actually no secrets on how to become a millionaire, but that’s because self-made millionaires were born with a preconditioned mindset that allowed them to become rich. Along the way, they simply have developed particular wealth creation habits that have allowed them to create income streams and accumulate wealth faster than the average person. Nothing they do is by any means rocket science, they are just determined, have a vision and have the patience to realize that wealth is created and built over time. They have simply programmed themselves to become millionaires. Here’s how:

Millionaires Don’t Carry Bad Debt: Self-made millionaires realize that in order to become a millionaire, you cannot accumulate money fast enough if you have outstanding debt. Most investments will not come close to beating a 22% interest rate on a credit card. Therefore revolving debt must be paid down before it is possible to get ahead.

Millionaires See Long Term: When you look at how powerful compound interest really is, and understand the time value of money, you realize the importance of being a long-term investor. The longer you are in the market, the more often your money will double, and the greater the chance to become a millionaire.

Millionaires are Risk Takers: Self-made millionaires have the tolerance to take some managed risk. When they see opportunities that have an upside potential that far outweighs the potential loss, they jump on those opportunities. However, they learned to become a millionaire by limiting their risk in order to reduce the chance potential losses and accelerate their wealth creation.

Millionaires Realize the Importance of Income: Obviously the more money you can make, the wealthier you can get. But in order to become a millionaire, you really need to embrace this concept by finding ways to create income streams. They spend their time setting up systems or purchasing investments that will produce income without much involvement, which allows them to spend their time creating additional income streams.