Gekko

DocC - I just sent it to you with a few bonus ones.

Enjoy.

Doc C

Gekko,

Thanks.
Doc C

JCtx

Doc, just highight it, copy it, and paste it on MS Word or other word processor, then save it; I just did.

Hey Gekko, great message buddy; post more often man.

JC

Gekko

here's one more:

STEPS TO BUILDING WEALTH

1. Liquidate all bad debt and become debt-free.
2. Keep your monthly overhead expenses low.
3. Pay cash for everything and stay out of debt. If you can't pay cash for something, you can't afford it. A house and an education are the obvious exceptions. But - be conservative with your mortgage commitment (Put a minimum of 20% down and don't exceed a mortgage of 2x your annual salary). Make extra payments on your mortgage. Pick a college with reasonable tuition costs. Buy (Don't Lease) your car slightly used and keep it for a long time (6+ Years). Don't get caught up in revolving debt or monthly payments. Consumer debt is not good. Don't spend more than you make. Live within your means.
4. Systematically and automatically invest a fixed, large percentage (minimum 10%) of your gross income every month into a low cost (no load, low expense ratio), diversified, large cap, tax efficient, U.S. stock index mutual fund (Vanguard Index 500 Fund) and don't touch it for at least 5 years. Dollar Cost Average and Pay Yourself First. Increase the amount invested at least annually. Automatically reinvest all dividends and capital gains. Don't dump a big chunk of money into the market all at one time - gradually average it in over a long period on a monthly basis in order to hedge against a sudden market downturn.
5. Keep some cash equal to at least 6-12 months gross salary in a low cost liquid checkwriting money market fund (Vanguard Prime Money Market Fund). Systematically and automatically add to it every month and never touch it. Automatically reinvest all interest/dividends. Increase the amount invested at least annually. This cash is for emergencies only or to use to buy long-term assets (house).
6. Max out your retirement plan (401K and/or IRA) contributions and direct them to a low cost index mutual fund. Never touch it until retirement.
7. Stay the course. Stick to your strategy and follow your plan. Ignore the so-called "experts" and tune out all of the outside noise. Realize that most analysts, brokers, advisors, and other "stockpickers" are usually wrong, biased, self-interested, and self-serving. Remember that no one has a crystal ball and no one knows for sure where the market or any particular stock is going in the short-term. Ignore the short-term movements of the market and think long-term. Stay diversified and don't chase "hot" momentum sectors or stocks. Follow your plan and not the herd. Don't try to time or beat the market. Buy and Hold. Increase your monthly investment amounts during market downturns.
8. Set realistic net worth goals and track your progress at least quarterly. Take pride and satisfaction in your financial accomplishment as you see your net worth statement grow.
9. Don't price your lifestyle for perfection. Establish a lifestyle based upon that which you can control....just because you made $100K, $250K, or even $500K last year, don't count on it occurring again, instead figure on what you can pretty much guarantee...that should be the lifestyle gauge. You have to plan for things to happen in your future that may not be ideal. You can't price perfection into any part of your future. Pricing perfection into your future can be extremely dangerous. Don't assume that everything will always go like it had always gone. Anytime you price perfection into your future, it generally ends up being a mistake. There is almost always going to be some sort of setback. Expect it, but plan for it and be versatile enough that you are able to make adjustments. If you don't have a contingency plan, then any setback will catch you unaware and unprepared. This is where you can learn from the past but not dwell on it. It is inevitable that at some point things will happen to you again that you don't expect. You should prepare for those things now. Don't be paranoid, just prepared. Preparation means you don't lose sleep over the future. Being paranoid means you lose sleep because of the future. Having your finances in order allows you to weather the storm when bad things happen to you.
10. Think long and hard about your purchases - especially the big ones. Ask yourself - Is this really a need or is it just a want? Why am I really buying this? How will this affect my financial future? Don't chase status symbols. Ignore the impulse to constantly upgrade and rush out to buy the newest, "latest and greatest" model. Ignore the need for Immediate Gratification. Repair before you replace. Find a balance. Absurd, conspicuous consumption is a sucker's game. Trying to "Keep up with The Joneses" and be the "Big Shot" is a sucker's game. Realize that the debt-ridden, over-leveraged, wanton spenders around you are financially self-destructing themselves. Realize that financial independence is much more important than displaying high social status. Plan, save, and pay cash for your big purchases rather than running out and immediately buying them. Choose your luxuries wisely and sparingly. Celebrate saving! Life is about experiences, not about material possessions. What's really important is not how much you make, but how much you keep. Understand that real wealth equals freedom, security, and power. Being a Millionaire is a lot better than just trying to look like one. Being stuck on the treadmill in the rat race, living paycheck to paycheck isn't intelligent. Don't make yourself a slave trapped to your job/debt/expenses and at their mercy. Strive to be Bulletproof and Liquid. You might want to/have to peel back from work someday! It's nice to have the option. No, you "can't take it with you", but being old and poor is no fun. Life on the Bread Line is no fun. You could die tomorrow but you could also live to 100. Don't underestimate your life expectancy. Your degree of wealth will directly affect your future quality of life. Social Security may not be around to help you.
11. Work to maximize your income. Push to increase your income!
12. Enjoy life, reward and treat yourself, treat others, be generous, help others, appreciate life, have no regrets, eat well, dress well, vacation well, do what truly makes you happy, but be sure to live within your means and save for your future. It's always fun to blow money. But, you need to find a medium where you are enjoying life and also preparing for a future at the same time. That doesn't mean you have to make yourself miserable now because you are planning for your retirement. You have to enjoy life now; there is no guarantee you will be on this earth until retirement. Life is about living, not just existing. However, money and opportunities are too hard to come by to waste them foolishly. Find a balance.
13. Start Now!

Jayson

Aahhh...."Rich Dad, Poor Dad," one of my favorites! That phrase you just quoted from his book was my motivation to invest in both the stock and bond market. In his book, his wife had to wait 4 years to have her apartment housing investment to pay for the car, whereas I am having to wait about 6 years for my "dividend" investing style to pay for my CPO Lexus! They have a little bit more money than I.

I have to hand it to you. You have done your research and have read probably both investing and sales books. I'll leave you alone from here on out. P.S. Don't read "7 Habits of Highly Effective People," it's dull and boring. I found "The Richest Man in Babylon" (1956?) much more to my liking.

Take care.

jlinjpn

For the presentation of timeless principles of wealthbuilding, here's a must-read for the young man or woman at the threshold of a working career: "The Richest Man in Babylon" by George S. Clason.

mistergin

I loved that book!

Yep, I own and have read em all, millionaire next door, rich dad poor dad books (i have 4 i believe, one on incorporating yourself, one on RE investing, the base book, and one other), among a few others.

I loved the richest man in babylon because the author kept it so interesting. Relating common investing tips to a story of olde really helps keep the reader awake and really makes you think since they put things so simply (I mean, the guy builds chariots and only has a few coins to his name, that's about as simple as you can get ).

The millionaire next door was a boooring book however, I'm afraid to say I couldn't muster my way through it, but did feel good knowing that the info inside was for the most part, stuff I had already read.

I also didn't like the fact that the authors of the millionaire, kept pushing american vehicles. With Hyundai and Kia offering bottom price on great cars with wonderful warranties (I own 2 hyundais that are on par with the hondas i've owned in terms of quality and fit/finish), I don't believe American auto manufacturers represent a good value. That and the fact that buying a chevy now means that I'm employing mexicans or canadians to build a car that's sold here. at least my hondas were built by good ol american workers putting that money back into the economy

Gekko

Here's some more excerpts you may enjoy...


RICHEST MAN IN BABYLON

In old Babylon there once lived a certain very rich man named Arkad. Far and wide he was famed for his great wealth. Also he was famed for his liberality. He was generous in his charities. He was generous with his family. He was liberal in his own expenses. But nevertheless each year his wealth increased more rapidly than he spent it.

And there were certain friends of younger days who came to him and said: "You, Arkad, are more fortunate than we. You have become the richest man in all Babylon while we struggle for existence. You can wear the finest garments and you can enjoy the rarest foods, while we must be content if we can clothe our family in raiment that is presentable and feed them as best we can."

"Yet, once we were equal. We studied under the same master. We played in the same games. And in neither the studies nor the games did you outshine us. And in the years since you have been no more an honorable citizen than we."

"Nor have you worked harder or more faithfully, insofar as we can judge. Why, then, should a fickle fate single you out to enjoy all the good things of life and ignore us who are equally deserving?"

Thereupon Arkad remonstrated with them, saying, "If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them."

- George S. Clason



WEALTHY BARBER

David Chilton's best-selling book "The Wealthy Barber" tells the story of a barber named Roy who has gained great wealth by following a few simple rules he learned from his very good friend, the very rich, Mr. White. Here, Roy shares some of those early lessons while cutting hair at his barber shop:

"Many years ago, Mr. White told me something that changed my life forever. He said, 'Wealth beyond your wildest dreams is possible if you follow the golden rule: Invest ten percent of all you make for long-term growth. If you follow that one simple guideline, someday, you'll be a very rich man.'

'No one is trying to tell you to squirrel away every cent, Roy,' Mr. White explained. 'But if you want to accomplish your goals, you must save something. Luckily, there is an almost painless way to save--a way where you barely notice the money's gone!'

PAY YOURSELF FIRST. I can't tell you what those three little words have meant to me. After agreeing that the ad hoc approach to saving doesn't work, and after explaining to me why the budgeting approach seldom works, Mr. White announced that the only way to save is to pay yourself first. The most effective thing is to have the money come right off your paycheck, or right out of your bank--before you have a chance to spend it.

"I was a bit skeptical at first. I was helping my mom and sister get by, and trying to save for an engagement ring. In my mind, there was no way I could set aside an additional ten percent. Where was I going to get that thirty dollars a month? There was nothing left at the end of the month as it was. Then Mr. White made a very generous offer. 'Roy, you arrange to have that thirty dollars a month go directly into a separate bank account, and from there to an investment. If at any time, saving that thirty dollars runs you short of funds, I'll lend you whatever you need at no interest.

"How could I say no? Anyway, I never did miss that money. My lifestyle didn't change at all. I know thirty dollars doesn't sound like much now, but remember, it was ten percent of my income back then and I never missed it."



JEWISH SUCCESS - SEVEN KEYS

1. Understand that real wealth is portable; it's knowledge and education.
a. Build your child's self-esteem.
b. Build the ability to defer gratification.
c. Choose the best education possible.
d. Develop and demonstrate informed and literate habits.
e. Create the education expectation and constantly stress its importance.
f. Keep your skills up to date.
g. Don't spoil your children and give them too much.
h. Set high expectations for your children and demand that they live up to their full potential.
2. Take care of your own and they will take care of you.
a. Patronize your people's businesses and organizations.
b. Provide charity that helps your people become self-sufficient.
3. Successful people are professionals and entrepreneurs.
a. Pursue a professional career, but be prepared to turn into an entrepreneur.
b. Within your career, leave time for entrepreneurial pursuits.
c. Pursue new opportunities or areas that are outside of the mainstream.
d. Take advantage of business opportunities.
4. Develop your verbal confidence.
a. Encourage your children to ask questions.
b. Proactively explain new ideas to your children.
c. Have "active" dinners together as a family.
d. Encourage participation in the performing arts and sports.
e. Consider joining Toastmasters as an adult.
5. Be selectively extravagant and prudently frugal.
a. Live within your means and save and invest your money.
b. Understand that money equals security and power.
c. Don't throw your money away, but when something is important to you, buy the BEST.
d. Stay married if you can; divorce is very expensive.
e. Practice low-cost, long-term investing.
f. Avoid debt.
g. Own your home, don't rent.
h. Buy your car and drive it for a long time.
6. Take pride in individuality; encourage creativity.
a. Be permissive, but protecting parents.
b. Reward venturing by your children and yourself.
c. Build your own creative engine - be open to new ideas, try new things, think in new ways.
d. Ignore "killer phrases" and senseless rules.
e. Challenge widely held assumptions. Think way outside the box.
f. Be a good copycat - don't re-invent the wheel.
g. Keep current. Know the trends.
h. Create an idea-friendly home.
7. Be psychologically driven to prove something.
a. Believe that you control your own destiny.
b. Don't be satisfied with the status quo.
c. Remaining an "outsider" is a good thing. Use it to motivate you to overcome obstacles and succeed.
d. Make long-range goals.
e. Work harder at tasks that require mental manipulation.
f. Take prudent risks.
g. Work for both tangible and intangible rewards.
h. Take personal responsibility for decisions and create results.
i. Accept other entrepreneurs as role models.
j. Believe in your own self-determination.
k. Understand that nobody owes you anything and that you make your own "good luck".
l. Don't rely on or blame others for your own success or failure.
m. If someone blocks the road to your goal, don't quit, just find a different way to get there.

- From the book "The Jewish Phenomenon" by Steven Silbiger

mistergin

lol, that reminds me...

In my family, I'm known as "the family jew", in that I'm the one who seems to be out there kicking **** and taking names as far as business and monetary successes go

It's an ambitious title for someone my age, but I'm willing to take it and run with it (and then sell it for whatever I can get for it!)!

BTW, hope nobody takes offense to that

triggaice

lol this is the funniest thread i ever read. Join a forum dedicated to a 60k+ car that you want so bad and say "How did you guys get you car?? How did you do it???" From hyundai to Lexus SC430. Thats like going from section 8 ghetto housing to a 9000 sq ft ocean front house in palm beach, it doesnt happen over nite. Dont want to be mean but this thread just sounds childish

VVT-i

I think this thread is a good read and educated at the same time. I really enjoy reading on Gekko's post and the original thread is good because he got a lot of respones and advices. I think it's nothing worng of asking question and he try to be comfortable with his car buying decision/payment/financial. A lot of people buy thing that they can't afford and end up ..you know.

Gekko

In my opinion, nobody (especially a 23 year old) has business buying a $60k+ car unless he's got a net worth of AT LEAST half a million. To do otherwise is to be a "fake it before you make it" wannabe and goes against everything written in all of the financial books which were mentioned in this thread. It's obvious that some people read the books but ignore them in practice. You have to do more than just read the books - you have to live it. You can buy/read the whole library, but if you put nothing into practice, it does no good. Buying a $60k+ car is NOT how you get rich. Get rich first, THEN buy the car. Pay your dues first. Get the half a million in the bank, THEN treat yourself. Good luck.

triggaice

Gekko your right. Too many people are being brainwashed from TV and they think they need all these things to look like they have some money. Then again it is nice to treat yourself to something nice after you work hard; and im not talking about answering phones or cleaning floors. Common sense is this: You make 5 grand a month so you can put aside 1grand for car payments if you REALLY like cars. Done deal. There is no other route. If you dont have the cash to do it then keep on saving and working till you get that kind of cash. ANY 60k+ car is going to have well over 1k a month payments (assuming your smart and not doing 60 months). You lease a car if its being written off and costs you nothing, if not then you buy. This is the basic commandments when purchasing a car.

You said you dont want to pay a penny more than 60? The sc430 is roughly 65 , if you have 60grand and the dealer isnt budging im sure 5 grand isnt going to kill you and would be worth it instead of buying another mans old treasure. I think your young and read alot of car and driver magazines and watch alot of TV, just save your money and one day it would make sense to purchase a high end luxury car. I feel like im disciplining my son

Just my 2 cents on the topic...

1NICESC430

Right, trig ...
I worked, saved, and invested for over 35 years and took an early (age 55) retirement buyout. Besides my regular savings and investments, I had a separate $30K IRA invested that more than doubled over the years to about $70K (part smart, part luck). I took out a low-interest loan (something called a Homeowners New Car Loan) to buy the SC430 and am having the payments automatically deducted from the IRA which is generating interest at the same time. So, just as I never noticed the savings coming off the top over the years, I don't notice the car payments.

Of course, not being married and having no children makes it a bit easier to decide what to do with my assets.
No kids, no pets;
No wife, no debts.
And no regrets.

triggaice

1nicesc, no wife, kids, pets and a nice account balance at the end of the day sounds pretty nice to me!