12
Aug
2009
Posted by Robert as Uncategorized
If you drive a lot (don’t we all?), you can either get free cars or make money by advertising on your car. I am dead serious.
You can earn extra cash via paid car advertising, or you can simply drive a brand new car (with advertisements on it) for free. Hundreds of people are participating in these free car programs, and there is no better time to jump at such an opportunity than now, when the economy is contracting and people are looking for extra money.
How Does This “Get Free Cars” Thing Work?
You can get paid up to $500 per month by advertising on your car, or you can drive a free car, truck, or SUV. If you choose to get paid for putting advertisements on your car, that $500 will not only wipe out your current car payment (if you have one), but it will provide some extra cash in your pocket. It doesn’t get any easier than that.
Is It A Scam?
It’s easy to think it’s a scam. But you should feel reassured that it isn’t. I’ve looked into this myself, and it’s 100% legit. Mobile advertising companies understand that thousands of people see hundreds upon thousands of cars per day. Thus, by placing an advertisement on one car, they know that thousands of people will see that advertisement each day. Whether the car is moving or parked, it is tantamount to having a billboard with an ad on it.
How To Get In On This Money-Making Secret
The Free Car Index is the Internet’s most complete database of free cars. Members of the Free Car Index get unlimited access to the top companies that offer free cars or participate in paid car advertising. The database is organized and updated regularly.
The companies listed in this index have over 100,000 brand new cars with advertisements on them that are ready to be driven for FREE by YOU. You get to choose the car, and you don’t have to make any car payments or maintenance payments. I’m not lying: you can literally get free cars.
In addition, if you choose to get paid by advertising on your car, you can choose the advertisement that you want displayed, and the advertisements themselves will not damage your car.
Making money either by getting free cars or advertising on your car is a great way to make easy passive income in today’s difficult economy, and the Free Car Index makes this program accessible to anyone.
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24
Nov
2008
Posted by Robert as Employee Life, Ramblings/Miscellaneous
“Hi all, I just wanted to let you know that I am in my PJs at home, reading a good book, and as happy as I have been in two years.”
Isn’t it funny how we (the employed) are the ones who find ourselves miserable, trudging to work day after day, for that all-important paycheck, and he (the unemployed) is the one who is “happy”? Now, granted, he got a severance package, so he has a bit of a buffer before he needs a paycheck again. Nevertheless, that money will run out, and he will need to find a source of income. And, yet, he’s happy.
Although that may seem surprising, I’m not surprised at all. The reality of not having to work, no matter how short-lived, is a reality worth striving for because it liberates us from the monkey on all our backs . . . otherwise known as a J-O-B. The day we don’t have to work is the day we can pursue interests and ventures that truly reflect who we are.
Take my friend, for instance. Because he doesn’t have to work, he can wake up in the morning and choose whatever he wants to do. It could have been anything. And so he chooses to read a novel. That activity (and not coming into the office to push paper) is what he would choose on any given day if presented the ability to choose an activity.
With jobs, we don’t have that ability. But he does, and he chose something that reflects who he is. Moreover, that activity will help him dig down and realize his own potential. Jobs often prohibit us from doing that.
Which is why, if you want to achieve true wealth, you should be looking for ways to get rid of yours.
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14
Nov
2008
Posted by Robert as Ramblings/Miscellaneous
My answer: No way. I’m still here.
Indeed, I haven’t posted on here in a month. It certainly isn’t because I’ve abandoned this blog. Rather, a lot of things have been going on in my life in the past month, and I have had literally no time to gather myself, get on here, and post.
In short, this is what’s happened:
1) My day job has been hell. When you work 60 hours per week, it’s tough to do much else.
2) My wife is having our second baby, and we’re preparing for that.
3) I’ve had to travel a bit.
4) I’m working on a website for a business I recently incorporated, and that’s taken up a lot of my spare time.
5) I’m pursuing other employment in a different industry, and I’ve had to put together numerous writing samples for them to look at.
Now, my job, my personal life, and my other side projects have never prevented me from posting on this blog. However, the economic downturn illustrated to me that, in particular, I needed to buckle down at work because, right now, that’s what pays the bills. I didn’t want to jeopardize that, so I started working harder, putting in more hours, and, in general, just focusing on my work stuff.
My fears were realized when, this past week, my firm laid off about 10% of its lawyers. Thankfully, I survived.
That wasn’t a shocker for me. I knew it was coming. The reality of it, however, was sobering. Two of my good friends were among those who got laid off. It’s been a rough week.
Nevertheless, these events and this economy have rejuvenated me a bit. Now, more than ever, I want to emphasize how important it is to diversify your income and develop streams of passive income. No job is secure in this economy. Not one. Even local government entities are laying off people.
I don’t want to go into a long monologue here, but this country has to get back to its entrepreneurial roots. We need to emphasize financial intelligence. We need to learn how to manage our money. Individuals need to maximize their skill sets and start businesses, instead of relying on finding “safe” and “secure” jobs.
I’m currently turning up the heat on that website I’m working on. I’m also going to increase my efforts on other projects. I’m going to get back to posting on this blog, and I’ll be writing about all my side projects and elaborate on the ideas I touched on in the previous paragraph.
Bear with me as I work out my writing schedule. I know, previously, I had promised to write on Mondays, Tuesdays, Wednesdays, Fridays, and Sundays. I’ll outline a schedule in the coming days and let everyone know what it is.
For now, thanks for reading.
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12
Oct
2008
Posted by Robert as Recaps
Nevertheless, in this week’s recap, I will go over (1) last week’s posts; (2) the most interesting posts from my top commentators; (3) my five favorite posts on other blogs; and (4) other blogs or sites that linked to this blog.
Last Week’s Posts
On Monday, I talked about the difference between scarcity and opportunity.
On Tuesday, I invoked Robert Kiyosaki’s car metaphor for investing.
On Wednesday, I listed 10 quotes from Robert Kiyosaki.
Posts From My Top Commentators
Dereck Coatney from I Will Not Die posted an open letter to the Facebook community about his dream.
Berto from Mike Roberto’s Blog had an interesting post about how to buy and own gold.
I’m Blogging That announced that it has a new owner.
Flimjo Five
Here are my five favorite posts from other blogs:
1) How to Measure the Value of a Blog Link, by Gyutae Park from Winning The Web.
2) Real Estate Marketing Ideas, by Josh Whitford from the Unconventional Marketing Blog.
3) PPC Marketing Doesn’t Work . . . Most Of The Time, by Alan from Affiliate Confession.
4) Making Money with Halloween CPA Offers, by Chris Jacobson from Money Making Scoop.
5) What Is The Quickest Way To Make A Living Online?, by Yaro Starak from Entrepreneurs-Journey.com.
Flimjo Love
I’m at #247 on 45n5’s list of the Top 100 Make Money Online Blogs.
But I’m at #41 on Blogger Venue’s list of the Top 100 Blogs.
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08
Oct
2008
Mere “quotes” can’t summarize his impact on financial thinking, but they represent a start for anyone who hasn’t read any of his books.
Here are the my 10 favorite quotes from Robert Kiyosaki:
1) “The only difference between a rich person and poor person is how they use their time.”
2) “It is not how much you make that counts but how much money you keep.”
3) “The reason so many financial advisers are called brokers is because they are often broker than you.”
4) “The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.”
5) “A job is really a short-term solution to a long-term problem.”
6) “Be sure to have friends who demand more of you rather than tell you why you cannot do what you want to do.”
7) “The poor, the unsuccessful, the unhappy, the unhealthy are the ones who use the word tomorrow the most.”
8) ”Money is kind of a base subject. Like water, food, air, and housing, it affects everything, yet for some reason the world of academics thinks it’s a subject below their social standing.”
9) “Inside of every problem lies an opportunity.”
10) “Today is the word for winners, and tomorrow is the word for losers.”
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07
Oct
2008
Posted by Robert as Investing
Would you drive a car without a steering wheel? What about if it didn’t have brakes? How about if it didn’t have a gas pedal? Would you drive a car under any of these circumstances?
Robert Kiyosaki has posed this question to viewers in his television show on PBS. (You can also read about this analogy in the book Kiyosaki wrote with Donald Trump, Why We Want You to Be Rich.) In particular, he asked his viewers if they would ever drive a car without any of the following items: (1) a steering wheel, (2) brakes, (3) a gas pedal, (4) a gear shift, (5) a driver’s license, and (6) auto insurance.
The obvious answer is “no.” But why is that the answer?
Because it’s RISKY!! You’d be insane to get in a car that didn’t have a steering wheel. Ditto if it doesn’t have breaks. Driving a car with brakes, a steering wheel, a gas pedal, auto insurance, etc., gives you control. And that control helps you relax while you drive and almost ensures that you will arrive at your destination in one piece.
While no one in his or her right mind would drive a car that lacks these items, people still engage in other activities in their lives that lack similar precautions and, thus, pose great risks. One of these activities is investing.
Investing Without Control
Many people invest in stocks and mutual funds because they believe these are “safe” investments. But the opposite is true. Investing in stocks and mutual funds is like driving a car without any of the aforementioned items (i.e., steering wheel, gas pedal, brakes).
The investors who put their money in stocks and mutual funds have no control over their investments. They turn their money over to someone else (a financial planner, an advisor, etc.) and leave it to the discretion of those people and the markets to make their money grow. Like Kiyosaki says, what’s worse is that these financial advisers, planners, and brokers don’t have any control either. They’re just stepping into your shoes, and a lot of them don’t have the expertise you think they have.
(Have you ever wondered why these advisers and brokers recommend to ”diversify”? It’s because they have no control over your money. I’m going to write a post about this, but, for now, heed the advice of Warren Buffett: “Diversification is protection against ignorance.”)
In addition, a lot of investors haven’t researched or learned about the stocks or funds into which they’re putting their money. They also haven’t received any training at all on stock-investing. Moreover, they have no insurance in case the market tanks. If the market heads into a recession or, worse, a depression, they lose their money with no recourse whatsoever.
So the investor who invests in stocks and mutual funds gives up control (steering wheel, brakes, gas pedal, gear shift), has no training (driver’s license), and no insurance (auto insurance). This investor is making the exact same mistake made by the driver of a car with no steering wheel, brakes, etc.
Why do investors invest like this?
Investing Isn’t Risky
People invest in stocks and mutual funds because they think investing, in general, is risky, and they think that stocks and mutual funds are the safest investing vehicles.
The irony is that investing is NOT risky if you take the proper precautions. Taking those precautions gives you the control you need to make a safe and sound investment.
For example, if you train yourself to learn how to invest in a particular area (like real estate), you lessen your risk. This is the same as learning how to drive a car: once you learn and obtain a driver’s license, it’s no longer risky for you to drive a car because you know how to do it.
Likewise, if you make sure you have all the tools necessary to invest in a rental property (i.e., an inspector, analysis of rental rates in the area, property tax information, title search, tenant occupancy rates, etc.), you lessen your risk when you buy that property. This is the same as making sure a car has a steering wheel, brakes, a gas pedal, and a gear shift. If a car has all those tools, it’s safer for you to drive it.
Investing With Control
Kiyosaki loves to distinguish between investing without control and investing with control. People who blindly invest in stocks and mutual funds invest without control. But people who educate themselves financially and learn and understand what they invest in are investing with control.
Obtaining the proper education and tools before investing in real estate helps you control that investment. The same can even be said for stocks. If you research a company, understand its industry, evaluate its financial position, and assess its long-term stability and growth, you will make a safer investment. (This is what Warren Buffett does.)
Driving a car without all those necessary parts is a great metaphor for investing without control. People invest like that on a daily basis and are deceived into thinking that they are making “safe” investments.
To obtain control, a financial education is essential. And learning everything possible about a particular investment will ensure that you have the proper control over your money. Like Kiyosaki says, it’s control of this kind that separates the rich from the poor.
So the next time you’re thinking of investing in stocks, mutual funds, or anything else, ask yourself whether you’d get in a car that didn’t have a steering wheel, brakes, a gas pedal, or a gear shift. And ask yourself whether you’d sit next to and trust a driver who didn’t have a license or insurance.
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06
Oct
2008
Posted by Robert as Ramblings/Miscellaneous
Some of us see scarcity, and others see opportunity. Unfortunately, that distinction corresponds to the gap between rich people and poor people. But why?
Our Surroundings
Every day, we experience various things. We see ourselves in the mirror. We watch the news on TV. We read the newspaper. We read blogs. We listen to the radio. We interact with family, friends, acquaintances, and co-workers. How someone perceives each of these experiences tells us a lot about them and their attitude.
The Pessimist
The Pessimist sees scarcity. This person looks in the mirror and sees an employee. When he watches the news, he groans at the high level of crime in the country. She reads the newspaper and panics about falling housing prices and the impending recession. He reads blogs and sees other people making money except him.
She listens to the radio and doubles over in pain when she hears about the falling stock market. During his interactions with family, friends, acquaintances, and co-workers, he sympathizes about how there isn’t enough money; talks about the eroding value of the dollar; expresses frustration about his job; and cries about the falling value of his 401(K).
The Optimist
The Optimist sees abundance and opportunity. This person looks in the mirror and sees an investor, a business owner, or an entrepreneur. When he watches the news, he focuses on ideas for solving the high level of crime in the country. She reads the newspaper and thinks about how to profit from falling housing prices and the impending recession. He reads blogs and networks with other people who make money that way, intent on forming lasting business relationships.
She listens to the radio and thinks about to hedge herself (through investments in oil companies, commodities, hard metals, etc.) against the price of gasoline. During his interactions with family, friends, acquaintances, and co-workers, he emphasizes that there is an abundance of money in the world; talks about buying silver and gold to protect himself from the falling stock market; expresses relief about not having a job and, instead, owning a business; and exposes the myth about the ”value” of someone else’s 401(K).
They Are Looking At The Same Things
The irony in the differences between these two individuals is that they are looking at, listening to, and experiencing the same things. The catch is that, where one sees scarcity, the other sees opportunity.
The Result of These Differences
The one who sees scarcity–the Pessimist–will never succeed beyond the hollow achievements of his or her job. These people will never grow because they will never take their true talents, their passions, and their potential and channel and maximize them through a personal venture–like a business, an entrepreneurial effort, or even a website or blog.
The one who sees opportunity–the Optimist–will inevitably succeed over and above the pale laurels of a job. These individuals will grow because they will take their talents, ideas, passions, and potential and leverage them into a variety of business and investing ventures.
Who are you, and what do you see?
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05
Oct
2008
Posted by Robert as Recaps
Last Week’s Posts
On Monday, I listed 10 reasons to buy gold.
On Tuesday, I looked at the effect of the economic crisis on stock ownership.
On Wednesday, I explained how to invest in real estate for cash flow.
Posts From My Top Commentators
Hugo Santos from Blogger Venue put up an informative post on Woopra.
Dereck Coatney from I Will Not Die had a nice post about how persistence pays off.
John from Very Cool Writing explained why you can’t win big at slot machines/blackjack, and finally poker.
Flimjo Five
Here are my five favorite posts from other blogs:
1) How To Simplify The Niche Selection Process, by Yaro Starak from Entrepreneurs-Journey.com.
2) Get Lots Of Traffic By Exploiting Social Groups, by Jason Pereira from The University Kid.
3) Google Keyword SEO: Setting Up A Landing Page for Maximum Exposure, by Jim Regan from The Net Fool.
4) Easy Money From Halloween Offers + Ebay, by Jonathan Volk.
5) When To Outsource Your Blog Writing, by John Cow.
Flimjo Love
I’m at #246 on 45n5’s list of the Top 100 Make Money Online Blogs.
But I’m at #41 on Blogger Venue’s list of the Top 100 Blogs.
In Sunday’s Link Love, Hugo Santos from Blogger Venue linked to my post about the how to invest in real estate for cash flow.
Annuity also linked to this blog.
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01
Oct
2008
Posted by Robert as Investing, Real Estate
This form of investing involves buying a property (an apartment, a house, etc.) and renting it out. The rent payments cover the mortgage, insurance, and tax payments. What is left over after you subtract the mortgage, insurance, and tax payments is passive income. That is the kind of cash flow that liberates people from jobs.
This is not “flipping” properties or buying foreclosed properties. Investing in real estate for cash flow involves buying and holding a property. There are various details, including incredible benefits such as tax-free rental income and 1031 exchanges, associated with this type of investing that I have covered before.
In broad strokes, this is how this investment works.
The Initial Investment
If you buy a one-bedroom apartment for $80,000, and you put 10% down ($8,000), you can make $125.67/month in passive income and almost a 19% annual return on your down payment.
The Expenses
After putting 10% down, you obtain a mortgage for the balance of the purchase price ($72,000). The monthly payments for a 30-year mortgage at 5.75% (rates are currently at 5.5%) are $420.17. Let’s assume that annual taxes on the apartment are $1,600 (based on 2% of the property’s value), and homeowners’ insurance is about $250 annually (the national average is $481). Thus, your monthly escrow payments for taxes and insurance are $133.33 and $20.83, respectively.
Putting all these numbers together, total monthly expenses are:
$420.17 + $133.33 + $20.83 = $574.33.
Renting It Out For Cash Flow
The rental rates for one-bedroom apartments depends on local property values. Since we’re using averages, let’s assume that you can rent this apartment for $700/month. If you subtract your expenses, this is what your monthly passive income will look like:
Rent ($700) – Expenses ($574.33) = $125.67.
Your monthly passive income, or cash flow, is $125.67. (Remember that you make this money whether or not you get out of bed in the morning.)
Return On Your Investment: Cash-On-Cash Return
The fun doesn’t stop there.
Recall that you invested $8,000 in this apartment when you bought it. You can calculate your annual return on that investment. This is called cash-on-cash return. To arrive at this figure, you divide the annual cash flow from the property by the initial amount invested. Here, your monthly cash flow is $125.67. To calculate the total annual cash flow, multiply your monthly cash flow by the number of months (12):
$125.67 x 12 = $1,508.04.
Your total annual cash flow is $1,508.04. To calculate cash-on-cash return, divide this number by the initial amount invested ($8,000). Thus,
$1,508.04/$8,000 = 0.188.
Your cash-on-cash return is 0.188, or 18.8%.
An annual return of 18.8% on an investment of $8,000 is VERY GOOD. That beats practically every index fund and about 80-90% of mutual funds. Furthermore, you may be able to keep that return tax-free, and you also benefit from the annual appreciation of the property.
That, in a nutshell, encompasses how to invest in real estate for cash flow. It is a very lucrative (and secure) method of investing, and it is a perfect example of leveraging money for passive cash flow.
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30
Sep
2008
Posted by Robert as Investing
These chief executives receive a large part of their compensation in the form of company stock. This chart from the New York Times, dated September 21, 2008, illustrates how much value these CEOs have lost in their stock ownership (not including stock options) in the last couple of years. I listed the names and stock values below.
As you review these names and the diminished value of their stock ownerships, take into account the risk of having a large share of your wealth in the stock market. I have always written that that’s a bad strategy and that some of your money should always be invested in tangible assets like real estate. The numbers below should drive home the point that, because stocks are effectively paper assets, they can lose value literally overnight:
LLOYD C. BLANKFEIN, C.E.O., Goldman Sachs
JANUARY 2007: $405.6 million
SEPTEMBER 19, 2008: $291 million
VIKRAM S. PANDIT, C.E.O., Citigroup (Started in December 2007)
JANUARY 2008: $31.7 million
SEPTEMBER 19, 2008: $22.6 million
JAMES E. CAYNE, Former C.E.O., Bear Stearns
JANUARY 2007: $1.06 billion
SEPTEMBER 19, 2008: $61.2 million
CHARLES O. PRINCE III, Former C.E.O., Citigroup
JANUARY 2007: $89 million
SEPTEMBER 19, 2008: $33.2 million
RICHARD S. FULD JR., C.E.O., Lehman Brothers
JANUARY 2007: $827.1 million
SEPTEMBER 19, 2008: $2.3 million
MARTIN J. SULLIVAN, Former C.E.O., American International Group
JANUARY 2007: $3.2 million
SEPTEMBER 19, 2008: $173,000
MAURICE R. GREENBERG, Former C.E.O., American International Group
JANUARY 2007: $1.25 billion
SEPTEMBER 19, 2008: $49.6 million (Doesn’t include shares transferred from direct ownership into trust)
RICHARD F. SYRON, Former C.E.O., Freddie Mac
JANUARY 2007: $10.6 million
SEPTEMBER 19, 2008: $130,000
KENNETH D. LEWIS, C.E.O., Bank of America
JANUARY 2007: $153.7 million
SEPTEMBER 19, 2008: $111.6 million
JOHN A. THAIN, C.E.O., Merrill Lynch (Started in December 2007)
JANUARY 2008: $28.5 million
SEPTEMBER 19, 2008: $16 million
JOHN J. MACK, C.E.O., Morgan Stanley
JANUARY 2007: $224.6 million
SEPTEMBER 19, 2008: $80.4 million
SANFORD I. WEILL, Former C.E.O., Citigroup
JANUARY 2007: $914.9 million
SEPTEMBER 19, 2008: $342 million
DANIEL H. MUDD, Former C.E.O., Fannie Mae
JANUARY 2007: $26.5 million
SEPTEMBER 19, 2008: $476,000
JAMES DIMON, C.E.O., JPMorgan Chase
JANUARY 2007: $197.1 million
SEPTEMBER 19, 2008: $203.7 million
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