Get Adobe Flash player

Archive for February 2011

Top 5 Tips to Build Wealth and Success

Warren Buffett is worth $45 billion. That wealth isn’t only a factor of savvy investing and good business – the “Oracle of Omaha” is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.

Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.

Benefit from the following five tips to build wealth and success.

1. Live Below Your Means. Being wealthy isn’t just a product of your salary or investment prowess; it’s learning how to save.

“We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth,” says Ed Butowsky, managing partner of Chapwood Capital Investment Management, a firm that manages money for wealthy individuals.

Read the rest of this entry »

All-Cash Deals Boost Housing Market

More buyers are paying cash for real estate. About 28 percent of sales were all-cash transactions last year, according to the National Association of Realtors. In October 2008, the rate was 14 percent for comparison.

Indeed, cash buyers made up more than half of all transactions in the Miami-Fort Lauderdale area alone last year, and about 42 percent were cash buyers in Phoenix in 2010–which marked a triple rate increase compared to 2008.

The more depressed the housing market, the higher the percentage of a cash deal, economists note.

Cash buyers can often get a 5 percent to 10 percent discount on the asking price of a home than a buyer using a mortgage because sellers often prefer cash deals since they close more quickly and it prevents a bank from changing its mind, says real estate pro Mohammed Siddiq in Fort Lauderdale, Fla.

Read the rest of this entry »

The Law of Investing

The Law of Investing – investigate before you invest. This is one of the most important of all the laws of money. You should spend at least as much time studying a particular investment as you do earning the money to put into that particular investment.

Check Every Detail Never let yourself be rushed into parting with money. You have worked too hard to earn it and taken too long to accumulate it. Investigate every aspect of the investment well before you make any commitment. Ask for full and complete disclosure of every detail. Demand honest, accurate and adequate information on any investment of any kind. If you have any doubt or misgivings at all, you will probably be better off keeping your money in the bank or in a money market investment account than you would be speculating or taking the risk of losing it.

Money is Easy to Lose The first corollary of the Law of Investing is: “The only thing easy about money is losing it.” It is hard to make money in a competitive market but losing it is one of the easiest things you can ever do. A Japanese proverb says, “Making money is like digging with a nail, while losing money is like pouring water on the sand.”

Read the rest of this entry »