AgeOfEnlightenmentSCP
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Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Apr 25, 2011 11:20:00 GMT -5
Paul, I've been reading your messages for a long time, and occasionally I find gems. Not sure if these are your own thoughts, or if you are paraphrasing a business writer? "In spite of catchy book titles that suggest it, there's no "autopilot" system for becoming wealthy. Wealth is the result. You will become a wealthy person-- the kind of person that gets wealthy-- long before your income statement and balance sheet reflects the fact. It will be WHO you are that determines WHAT you get. " I really like this statement, and it reflects my ideas about money management. I had an original thought once. I ended in disaster. That's why I try very hard not to come up with original ideas, but rather I try to discover old ideas that work. My posts are an amalgamation of lots of different books, and speakers, courses, and mentors I have exposed myself to.
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AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Apr 25, 2011 11:38:38 GMT -5
I agree with you, patstab. My purpose in life isn't simply to accumulate material wealth either, but to have just enough to be happy and secure. I recently saw Tom Shadyac's interview about his documentary "I Am", and it really struck a chord with me. I have way more house than I need at the moment, but I live a pretty basic lifestyle otherwise and am pretty happy. Unfortunately your attitude of extreme greed and selfishness is all to common these days. How are you going to help anyone if you have only what you need...for YOU? It's great that YOU are happy and secure. Now what about people in need. On the other hand- we need more people like me. You'd think I was greedy and materialistic if I told you that I wanted-- really wanted, if I'm being honest about what I really want-- an ocean-to-intercoastal estate with at least 20,000 square feet, a 2,000 square foot separate guest house and an 80 foot yacht on the intercoastal side. But let me fill in the details-- my next goal? To maintain my current lifestyle until my income has increased to the point where I'm only living on 10% of what I earn and to move up to the above with these parameters. I don't like to brag about giving and charity-- that's not why I do it, but you should know we currently give away on a regular basis 30% of our income. My next milestone is to give away 50%. But we won't compromise lifestyle-- our goal it to increase our income and giving simultaneously.
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AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Apr 25, 2011 11:41:04 GMT -5
beerfan- to be fair, a law degree probably cost you more than $1,000. And while you were going to school, you weren't earning-- and there's cost just to that. What I've learned is one way or another- a business takes capital.
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Post by ssdawood on Apr 25, 2011 11:44:14 GMT -5
Straydog which state are you in. I might be interested. send me and email ssdawood68@gmail.com
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AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Apr 25, 2011 11:51:01 GMT -5
Ditto straydog- I have been researching a small lending company. I want to focus on INVESTORS and OWNERS though, not consumers. I already make private loans for rehabbing houses.
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azphx1972
Familiar Member
Joined: Mar 2, 2011 22:08:36 GMT -5
Posts: 809
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Post by azphx1972 on Apr 25, 2011 20:39:13 GMT -5
Unfortunately your attitude of extreme greed and selfishness is all to common these days. How are you going to help anyone if you have only what you need...for YOU? It's great that YOU are happy and secure. Now what about people in need. LOL. I'm going to worry about taking care of myself first, and if I have any energy left over, then I'll worry about other people. Actually, what I want to do is save enough so that I can retire from working for money, and then use my skills to help people by either volunteering or doing something else that benefits society (rather than some for-profit corporation that I don't care about). Kudos to you for your generosity though. I hope it brings you as much happiness as those that you help.
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AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Apr 26, 2011 1:38:18 GMT -5
Unfortunately your attitude of extreme greed and selfishness is all to common these days. How are you going to help anyone if you have only what you need...for YOU? It's great that YOU are happy and secure. Now what about people in need. LOL. I'm going to worry about taking care of myself first, and if I have any energy left over, then I'll worry about other people. Actually, what I want to do is save enough so that I can retire from working for money, and then use my skills to help people by either volunteering or doing something else that benefits society (rather than some for-profit corporation that I don't care about). Kudos to you for your generosity though. I hope it brings you as much happiness as those that you help. Good for you- I was simply making the point that rich people, and those who aspire to it aren't the only greedy, selfish people around. I am rather "Rand-ian" on my view of "selfishness". I don't quite regard it as a virtue, and I don't eschew egalitarianism / charity, etc...but the world could do with a few more mega-rich people because people generally get that way helping others. If Bill Gates never gave a dime to charity, he did more to raise the standard of living around the world-- more to elevate the poor, and free the enslaved and the oppressed than all the egalitarians combined. Same with Oprah Winfrey, Warren Buffett, Sam Walton, Walt Disney-- hell, that last one alone currently employs 50,000 people just in Florida-- let alone around the world. We're talking about it because of Bill Gates. I want to live in an America where it's safe to have a DREAM again, I want to live in a country that watches a Ferrari drive by and instead of rolling their eyes and calling it "compenstaing for a small...um, manhood", the instinctively say, "Good for that guy!", and "Maybe I'll have that kind of money some day?"
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azphx1972
Familiar Member
Joined: Mar 2, 2011 22:08:36 GMT -5
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Post by azphx1972 on Apr 26, 2011 4:42:35 GMT -5
I was simply making the point that rich people, and those who aspire to it aren't the only greedy, selfish people around. I hope you don't think I was judging rich people, because I'm not (and wasn't in my earlier posts). If others want to dream big, it's not my place to say whether that's appropriate or not, and I have no control over it anyway so what's the point. I was merely stating that my personal goals aren't that lofty, because I'd rather spend my energy in other ways. Different strokes for different folks, live and let live, and all that jazz.
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IPAfan
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Post by IPAfan on Apr 26, 2011 13:52:10 GMT -5
palmbeach,
Definitely my education and lost wages were much more than $1,000. I did everything I could to keep them within reason as well. My point is not that everyone should become a lawyer. It's actually pretty tough out here for most new lawyers right now. What I am saying is that low capital businesses are the way to grow wealth fast, and they're the biggest advantage that the small entrepreneur has.
There are plenty of opportunities for high return businesses. If you know how to set up good websites you can definitely invest a few thousand dollars and reap huge returns.
The problem is when you start looking at businesses that return 8-10% on the total invested capital, and you make money by leveraging. I think these are GOOD businesses, but they're not good businesses to start with because they require too much leverage that's usually not available on favorable terms to new business owners.
Also to give you an idea, my net worth increased from $10k at the beginning of law school to $30k at the end, so even though law school DID cost me money and opportunity, I was able to do it in a way that didn't put me too far behind. Now I'm 27, have no debt, about $50,000 in assets (most of which is ROTH IRA money) and am finally getting a business going.
IF I had it to do over again, I might skip law school and just look for another low capital business to get in. There's still tons of competition in law, and way too many people sitting around doing nothing with 80-150k in student loans.
Paul - I also 100% agree that "a business takes capital." The question is really "How much can a business earn on its capital". I've poured a lot of money back into my practice, because I can make $4-$5 in NET PROFIT for every $1 I spend on certain types of advertising (but that includes doing a lot of work.) So I plan to invest as much capital as possible in my business as long as I can earn those kinds of returns. I'm also missing out on a huge area, which is internet advertising. I plan to get a solid internet presence, and think I can see a good ROI from doing that.
The pitfall for small business IMO is a structure which requires a lot of capital, and doesn't earn a great return. You need leverage to make a low return business work, and then it gets tough to access credit.
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