Sure, everyone wants to be rich. But what does that mean? That probably depends on where you live and who you compare yourself to. If you live in some small town with mostly blue collar workers, I guess a person with a decent 6 figure income might be considered wealthy. If you've spent any time in London, Frankfurt, New York or Dubai, then you know that being wealthy means you can afford a small business jet. It might seem hard to imagine, but there are plenty of these people out there.
It is a common misconception that most millionaires made a fortune with some get rich quick scheme, but the reality is that it is usually slow, methodical hard work. Actually there usually isn't much hard about it. It's usually smart thinking. I know a lot of wealthy people who have increased their net worth hugely through real estate - but they had the funds available in the first place to make wise investments.
Whether you have the money available to buy an investment properly or business outright, or just enough for the down payment, spending the time crunching the numbers is the smartest thing you can do. If you seek financing, even a 1/4 percentage point off the interest rate makes a huge difference over the time of the loan. Regardless of anyones financial position, doing the up front legwork of comparing rates with banks and mortgage lenders will pay off in the long run.
The opposite is also true. Holding mortgages, which until recently was one of my favorite investments, are far more profitable by getting even a small percentage more ROI. One thing I've learned from very rich people - fight for every penny on every deal, and treat every penny as a deal. They might buy extravagant items and spend huge amounts of money, but you can bet they didn't spend more than they had to on any of these things.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment