5 Keys To Increase Your Wealth

While the pundits may differ on what the future of real estate holds, you can make this year one of your best investing years by simply understanding and practicing a few key principles. Whether you are a seasoned investor or just starting out, applying the ideas discussed in this article can give you a distinct advantage now and in the years to come.

1 – Understand Your Market’s Economy

The real estate bubble “burst” over five years ago, but we’re still feeling its effects today. While the Nation’s poor economic health has created problems we all share, local areas also have their own economies. Understanding the local economy and how it influences the real estate market is essential to your success.

What is the economic climate for the areas in which you are investing? For example, a recent look at the seasonally adjusted unemployment rates for each of the states sees a swing of more than 9%. In other words, while things are tough, they’re not tough all over. What is the job market like in your area? Are people having a hard time making ends meet and needing to find affordable housing? Or, have people weathered the storm and are now ready to get back into home ownership?

From unemployment to the amount of foreclosure activity, the circumstances across the country can be as different as night and day. Your job is to understand your market’s economy in detail and conclude why it is what it is. Only by understanding the economy in your market will you be able to understand why things are the way they are and have a plan in place to capitalize on it.

2 – Recognize Influencers

If Key #1 is looking back at what has happened and what is, then Key #2 is looking forward and predicting what will be. Identifying influencers that affect your market posi- tively or negatively coupled with your economic research can help you see opportunities before others do.

While store closings have made the headlines in the past, the truth is many businesses are poised to expand. New shopping centers can be extremely attractive to home buy- ers. Finding these new developments is often as simple as taking a different route to your regular destinations and taking note of what you see out the car window as you drive by. If you see signs of land being cleared, surveying or the beginnings of construction in and around major roadways, it is a pretty safe bet that a new influx is coming into the community. Any changes designed to handle increased traffic flow can tip you off to new developments, too. Widening traffic lanes and installing new traffic lights are just a couple of telltale signs.

2       © 2013 Professional Education Institute and CASHFLOW Technologies, Inc.5 Keys to Increase Your Wealth

Also, getting to know those who work in the road and building departments for your city or county—or at the very least, attending city planning meetings —can make you aware of significant projects being proposed or scheduled to begin.

Key #3 – Know What Realistic Pricing Is

Most real estate agents will tell you one of the biggest frustrations they face is people thinking their home is worth more than it actually is. Perhaps it is people not wanting to come to grips with the equity lost in the downturn or just being naive. Whatever the case may be, it doesn’t matter. You need to know what a realistic price is for the current market. Not what their home appraised at a few years ago, when they took out a second mortgage, but what it is today.

As you begin, you’ll want to be sure that you are comparing “apples to apples.” In other words, year built, square footage, number of bedrooms, lot size, etc. Should all be com- parable. Take special note if home prices are accelerating faster in one area than in oth- ers. What might be the cause for this? Is there anything from your research in Keys #1 or #2 that could provide a clue? Also, you will want to check the average home price in neighboring communities to see whether it is higher or lower. Doing so will provide you an idea of where the biggest demand is.

The more you study pricing, the quicker you’ll be able to recognize a bargain or when a seller has lost touch with reality. Realtors and real estate agents are a terrific source for pricing trends given their access to the Multiple Listing Service (MLS). Also, the Internet and local newspapers can be helpful in your search.

Key #4 – Determine an After-Repair Value

All your efforts to determine a realistic price for your market will be for naught if you pay a price that causes you to lose money once everything is said and done. You need to know what a reasonable offer for the seller is while still allowing yourself to create an acceptable return for your time and effort. This amount will be your Maximum Allowable Offer (MAO). If the seller cannot meet you at or below the MAO, then the deal does not make sense and you should walk away.

Key #5 – Use Tax Benefits to Your Advantage

Over the last few years, the U.S. Government has gone to great lengths to help jump start the economy. By changing the tax code, the Government incentivises people to do what the Government thinks will help the economy grow. Because of these incentives,

$100,000 x    .7

= $70,000

$70,000 -      $5,000

=     $65,000

(After Repair Value or market value) (20% Profit and 10% for Closing & Holding Costs)

(Repair Cost Estimate)

(Maximum Allowable Offer to your seller)

4     © 2013 Professional Education Institute and CASHFLOW Technologies, Inc.5 Keys to Increase Your Wealth

real estate investing can create tremendous tax advantages. In fact, even before the downturn, several provisions of the U.S. tax code were written with the specific purpose of encouraging real estate development and investing. Government legislators know that America needs an ever-expanding supply of decent and affordable housing, and that the government itself is poorly equipped to provide it.

You have to know how to play the game. You’ll need to hire a savvy tax accountant or other real estate investment advisors. They will introduce you to the concepts and calcu- lations that you need to know to begin asking the right questions.

https://www.richdadcoaching.com/assets/files/rd_5_keys_to_increase_your_wealth_in_2013.pdf

How To Become Wealthy

1: Change the Way You Think About Money

The general population has a love / hate relationship with wealth. They resent those who have it, but spend their entire lives attempting to get it for themselves. The reason a vast majority of people never accumulate a substantial nest egg is because they don't understand the nature of money or how it works.

Cash, like a person, is a living thing. When you wake up in the morning and go to work, you are selling a product - yourself (or more specifically, your labor). When you realize that every morning your assets wake up and have the same potential to work as you do, you unlock a powerful key in your life. Each dollar you save is like an employee. Over the course of time, the goal is to make your employees work hard, and eventually, they will make enough money to hire more workers (cash). When you have become truly successful, you no longer have to sell your own labor, but can live off of the labor of your assets.

2: Develop an Understanding of the Power of Small Amounts

The biggest mistake most people make is that they think they have to start with an entire Napoleon-like army. They suffer from the "not enough" mentality; namely that if they aren't making $1,000 or $5,000 investments at a time, they will never become rich. What these people don't realize is that entire armies are built one soldier at a time; so too is their financial arsenal.

A friend of mine once knew a woman who worked as a dishwasher and made her purses out of used liquid detergent bottles. This woman invested and saved everything she had despite it never being more than a few dollars at a time. Now, her portfolio is worth millions upon millions of dollars, all of which was built upon small investments. I am not suggesting you become this frugal, but the lesson is still a valuable one. Do not despise the day of small beginnings!

3: With Each Dollar You Save, You Are Buying Yourself Freedom

When you put it in these terms, you see how spending $20 here and $40 there can make a huge difference in the long run. Since money has the ability to work in your place, the more of it you employ, the faster and larger it will grow. Along with more money comes more freedom - the freedom to stay home with your kids, the freedom to retire and travel around the world, or the freedom to quit your job. If you have any source of income, it is possible for you to start building wealth today. It may only be $5 or $10 at a time, but each of those investments is a stone in the foundation of your financial freedom.

4: You Are Responsible for Where You Are in Your Life

Years ago, a friend told me she didn't want to invest in stocks because she "didn't want to wait ten years to be rich..." she would rather enjoy her money now. The folly with this school of thinking is that the odds are, you are going to be alive in ten years. The question is whether or not you will be better off when you arrive there. Where you are right now is the sum total of the decisions you have made in the past. Why not set the stage for your life in the future right now?

5: Instead of Buying the Product... Buy the Stock!

Someone once asked me why they weren't wealthy. They always felt like they were putting money aside, yet never seemed to get any further ahead. The answer is simple. I told them to stop buying the products companies sell and start buying the company itself! A survey of America's affluent (those who make over $225,000 a year or own $3,000,000 in assets) revealed that 27-30% of all the income the wealthy earned went into investments and savings. That isn't a result of being rich, that is why they are rich. When the pain of getting out of the bondage of financial slavery is greater than the pain of changing your spending habits, you will become rich. Either change, or be content to live as you are.

6: Study and Admire Success and Those Who Have Achieved It... Then Emulate It

A very wise investor once said to pick the traits you admire and dislike the most about your heroes, then do everything in your power to develop the traits you like and reject the ones you don't. Mold yourself into who you want to become. You'll find that by investing in yourself first, money will begin to flow into your life. Success and wealth beget success and wealth. You have to purchase your way into that cycle, and you do so by building your army one soldier at a time and putting your money to work for you.

7: Realize that More Money is Not the Answer

More money is not going to solve your problem. Money is a magnifying glass; it will accelerate and bring to light your true habits. If you are not capable of handling a job paying $18,000 a year, the worst possible thing that could happen to you is for you to earn six figures. It would destroy you. I have met too many people earning $100,000 a year who are living from paycheck to paycheck and don't understand why it is happening. The problem isn't the size of their checkbook, it is the way in which they were taught to use money.

8: Unless Your Parents Were Wealthy, Don't Do What They Did

The definition of insanity is doing the same thing over and over again and expecting a different result. If your parents were not living the life you want to live then don't do what they did! You must break away from the mentality of past generations if you want to have a different lifestyle than they had.

To achieve the financial freedom and success that your family may or may not have had, you have to do two things. First, make a firm commitment to get out of debt. To find out which debts should be pa

9: Don't Worry

The miracle of life is that it doesn't matter so much where you are, it matters where you are going. Once you have made the choice to take control back of your life by building up your net worth, don't give a second thought to the "what ifs". Every moment that goes by, you are growing closer and closer to your ultimate goal - control and freedom.

Every dollar that passes through your hands is a seed to your financial future. Rest assured, if you are diligent and responsible, financial prosperity is an inevitability. The day will come when you make your last payment on your car, your house, or whatever else it is you owe. Until then, enjoy the process.

http://beginnersinvest.about.com/cs/personalfinance1/a/blwealthy.htm

BUSINESS LEADER LAKSHMI MITTAL

LAKSHMI MITTAL £17.514 M

13 Mar 2013

Steel magnate Mittal, 56, tops The Sunday Times Rich List seven years in a row. He is the highest faller in this year’s Rich List but still has the fastest-growing fortune.

This year he plans to build a "Zero Carbon" Footprint estate in Surrey a 340 acre estate also called Alderbrook Park which was built as a country estate during the 19th century but was part-demolished in the 1950s and replaced with a less-attractive home. He purchased the estate for £5.25 million ands is planning to spend £25 million on it to make it 100 per cent self-sufficient and eco-friendly. The unique modern design will not only ensure the house is zero-carbon, but will make the entire 340-acre estate carbon negative.

Mittal, who has turned round ailing former state-owned mills around the world, knows all there is to know about steel. He learnt about business in Calcutta. His father moved to the city and built up a steel business, while Lakshmi excelled at university, topping his class in business and accountancy. After working in the family firm, Mittal moved to Indonesia. With backing from his father, he founded a steel plant and by the mid-1980s was a serious player in the world market. In 1995 he separated his own steel interests from the family’s Indian businesses, and went his own way.

Mittal settled in London although he retains his Indian passport. His US-educated son, Aditya, also based in London, plays an increasingly important role in the business as president and chief financial officer of Mittal Steel and led the recent bid for Arcelor. The family’s stake in Mittal Steel prior to the merger was worth more than £17 billion as its shares had risen sharply. The family will emerge with about 43.4% of the new entity.

From 1998 to 2005, the Mittals had £1.57 billion in dividends from its steel operations . About £434m has been reinvested elsewhere, leaving £1.13 billion in family hands. The Mittals will receive at least £413m in dividends from the new group in 2007. A separate investment portfolio is valued at £570m. Mittal set a world record for a private home when he paid £70m to Bernie Ecclestone (qv), the Formula One supremo, for a house in London’s exclusive Kensington Palace Gardens. In all, the Suday Times reckons the family is worth £19,250m.

The ArcelorMittal Orbit is a 115 metres (377 ft) high observation tower under construction in the Olympic Park in Stratford, London. The project is expected to cost £19.1m, with £16m of that coming from Lakshmi Mittal, with the balance of £3.1m coming from the London Development Agency. The official name of the sculpture, "ArcelorMittal Orbit", combines the name of Mittal's company, as chief sponsor, with Orbit, the original working title of the designers.

The steel sculpture will be Britain's largest piece of public art, and is intended to be a permanent, lasting legacy of London's hosting of the 2012 Summer Olympics, assisting in the post-Olympics regeneration of the Stratford area.

http://www.richest-people.co.uk/lakshmi-mittal/