The concept of minding your own business implies that while you are grinding away at your day job you need to be investing and working towards your future financial independence. Pretty soon you’ll be able to walk away from your day job and mind your own business full time. The best way to do this is through the acquisition of real estate.
Let’s take a quick look at where you are losing all your money: taxes. Taxes have been around since 1913 in the U.S. (earlier in England) and while the original intention was to only tax the wealthiest of the population, obviously over the years that has trickled down to the masses, including those in poverty.
Now keep in mind, the more money you make the more taxes you pay. The wealthy know a way to get around this is to form a corporation. Corporations offer tax benefits and protect you from lawsuits. If you would like to learn more about this, reach out to me or your attorney for additional information.
We’ve all heard the golden rule of “Pay Yourself First”, but many of us don’t do that. Until you learn and put this rule into practice, you don’t have a chance of building any real wealth and getting out of the rat race. By adhering to this rule, you are forced to generate more income to pay your expenses.
There are some key areas of finance you should be familiar with and taking courses is one of the best ways to accomplish this. Here are the basics you need to know:
Accounting
It pays to know how to read financial statements. When acquiring businesses or assets, you need to quickly identify the financial standing of the company you are acquiring.
Many adults do not know how to read, let alone balance a balance sheet. This is an extremely beneficial skill to have and will pay off in the long run for you and your business.
Investment Strategy
This skill will sharpen over time with experience. Reach out to investors and observe how they play the game.
Market Behavior
Know the laws of Supply and Demand. No business owner can succeed without understanding these basic principles of the market. Bill Gates identified a gap for people. Always be searching for opportunities. Look at what sells and who buys.
Law
Do everything you can to grow your business within legal boundaries. Know your corporate, state, and accounting laws.
Once you are familiar with these areas of finances you will be in a good position to use them to help build wealth. The rich practically invent money. You have to know where to find a great deal. Let’s continue with real estate. Look for houses in trouble or find the court in your area that handles foreclosed, police impounded, or other real estate situations. You can either renovate and sell or rent for residual income.
Essentially there are two main types of investors:
- Those who buy pre-packaged investments;
- Those who create their own investments.
You can guess which ones are the most successful. In order to be one of these people you need to know what to look for and how to respond. You must:
- Find a good deal other people have overlooked;
- Raise the capital required for the transaction;
- Put together a high-performing team to execute the plan.
There is risk involved in every acquisition. The goal is not to avoid the risk, but to respond appropriately to the risk with confidence and a steady hand.
If you need help identifying potential money-makers, where to get the capital you need and how to put together a smart team, please reach out to me today for guidance.