Why You’re Still Poor - September 19, 2007

Stuart Goldsmith sums it up quite succinctly: “I have to tell you that most people remain poor for one major reason - lack of discipline.” We lack the discipline to save money to build an asset base for our futures. We lack the discipline to spend our spare time and energy on building true financial independence. We lack the discipline to stop buying useless things we don’t need with money we don’t have, in order to impress people we don’t like. The one thing we we never lack for is excuses. I’ve heard them all before, so don’t bother sending me yours.

Do you want to get rich? Stop buying stuff. It may sound silly, but I’m quite serious. Ask yourself: how long could you last spending money on absolutely nothing but

  • Food (at the grocery store, not Starbuck’s or Chevy’s)
  • Housing
  • Medical Expenses
  • Transportation to work

For most people the answer is forever, if they wanted to. Walk into the typical American’s home, rich or poor, and you will see a veritable mountain of stuff, only a tiny portion of which is really needed, and chances are they paid too much even for that. The fact that the company Got Junk? exists at all is a sad testiment. The fact that it’s one of the fastest growing franchises in North America is downright shocking. Imagine it: We buy so much crap in this country that traditional garbage pickup is not sufficient to haul it all off.

Try an experiment with yourself. Walk around your home, and look at each thing you possess. Ask yourself if your survival and well-being would genuinely be threatened if you threw it away. Now approximate all the money you spent on all the “nos,” and enter it into our compound interest calculator. Give yourself a modest rate of return of 10%, and see what would happen if you held for 30 years. The result will probably shock you.

Or if you really want to change your life, ask yourself this: If you sold everything you own (you can keep your bed, refrigeratior, and dishes), would the proceeds be enough to start a business? Chances are the answer is yes. And just think, after getting rid of all those doodads and distractions, chances are you’ll have more time on your hands to try it. So what’s stopping you?

The Million-Dollar Dime - September 23, 2007

For anyone looking for a slightly different perspective on growing wealth, here’s an interesting blog written by a guy who is trying to grow a dime he found on the street into a million dollars. He’s still very early in the process, but his thoughts about the motivation, perspective, and ideas for building lasting wealth are worth reading.

The Rex Agreement - A New Option for Home Owners - September 24, 2007

A finance firm called Rex and Company has recently begun offering a new way to cash out the value of your home. It allows you to free up equity without moving, taking out loans, or making any payments, ever. So how does it work? (Read Article).

Charitable Remainder Trusts: You Win. Your Favorite Charity Wins. Uncle Sam Loses. - September 30, 2007

What if I were to tell you that there was a way for you to take a collection of appreciated assets, immunize them from capital gains tax permanently, draw income from them for life, take a large, immediate tax deduction, and benefit charity, all in one fell swoop? With a

charitable remainder trust, you can.

(Read Article).