Dear Members,

Please understand that I am NOT a financial planner or an Accountant, nor do I have ANY legal qualifications. All opinions expressed here are just that - an opinion - based on that marvelous commodity known as "experience."

You should ALWAYS consult a qualified adviser BEFORE taking ANY definite action that involves money or life changing experiences. I say this in the interests of protecting all members who come here for information.

You may perceive that on occasion I appear to be critical of certain professions on this members only page. This is NOT so. I respect all professions. I have great friends in many of the professions that I sometimes appear to be critical of. Some of our members will also be engaged in those professions. Those members should not feel aggrieved.

Within ALL professions we have people who are both good and bad. We have all come across such people from time to time. Whenever I appear to make a disparaging remark then please take that as being a WARNING that you really do need to investigate the bona fides, reputation, track record, motives and character of the PERSON that you intend to deal with.

Any such comments are not to be taken as a "blanket" comment about ANY profession. There... I think I have now covered that. So, members, please don't send me emails like: "why don't you like (fill in name of profession) ?" It simply isn't true.

I am only telling ALL members to be prudent when seeking advice or opinion from ANYBODY, me included. And - here is a BIG point that I want to make...

... the MORE money it involves, the MORE wary you have to be. This includes retirement funds, property, motor vehicles, boats - virtually ANY "big-ticket" item.

QUESTION: Kandy writes...

"I'm not sure how this would fit into your newsletter but most of us know you have to have money to make money especially in the stock market, savings, buying and selling real estate, etc.

I guess I have two areas, what if you have to play catch up in order to retire comfortably but are not earning the salary to do that? Thanks!"

Kandy

ANSWER:

"Hi Kandy, Yes I agree that it is easier to have money to make more but... my experience tells me that people who HAVE money often lose it in business ventures.

Personally, I have made a lot of money in franchising. I get ideas. I make up systems. I PROVE that the system works then I sell off territories.

I'm not sure how old you are. I guess from the brief information that you have mentioned in your email that you are "approaching" retirement. I am also guessing that you are living in the USA. I am in Australia.

Now, don't take this as any personal advice because I am NOT a Financial Planner or an Accountant. However...

... I was able to [help two young people] to pool their resources and get them into a real estate investment property - nothing really big - just a starter. But, in the last 12 months that first little venture is now worth around $100,000 AUD more than what they paid. So, the upshot is that they now have around $50,000 extra in wealth each to what they had before.

Yes, it was a bit of a stretch for them. But they coped well. Apart from that - and this is a HUGE point that I try to make to everybody - they DID something. They didn't do what 95% of the population do. That is NOTHING. Most people do nothing and then they bemoan that they get nothing. Gee, it doesn't require a PhD to figure out why!

Real estate is the way that I personally have acquired much of my own wealth. [Among other things] it is the thing that I favor in my book "How to Save Thousands and Increase Your NET Wealth" Yes, there can be pitfalls but the way to do it is to educate yourself as much as possible in the real estate market and THEN, after you have that knowledge - go and find somebody who will help you.

That is, somebody who has done it themself - that would NOT be an accountant or a financial planner IF they have not done it themselves. These guys are great at working out numbers but too many people trust them for advice even when these "professional" people have had NO experience themselves. Does that make ANY sense to you? Coz it doesn't to me!

[Please take a look at what the Accountant wrote in the testimonials section of this site.]

Also, no PERSONAL sleight intended on anyone, BUT the absolute WORST people to seek [investment] advice from in real estate is Real Estate sales people [if and this is a big "IF" you don't believe that they are worthy of your trust]. Many only have their own commission in mind. Trust me, I have done the real estate course. I know how they are taught. You do get honest ones but their pocket is often the one that they want to look after FIRST. Not yours.

Many Real Estate agents will sell you anything - even the biggest LEMON that they have on their books. [Don't seek "investment" advice from an unqualified sales person... is that person an investor themself? That is always a good question to ask. See the testimonial from Cheri Merz on the testimonial page.]

This is getting a bit long so, I'll wind up. Have you considered E-Bay? I know a fairly senior couple who make their entire income from it. I think they do fairly well. You can always give it a try. [A young lady I know] has recently put about a dozen items up that she was simply going to throw out. I suggested she try e-bay.

Guess what? She sold about five items in less than a week and has made close to $200 (AUD). THAT is $200 that was going straight into the trash can. She sold an old cell phone, several dresses that she no longer wanted and some shoes. That sort of thing. Really, it was money for nothing.

You mentioned the stock market. I have made money in it but - if you read "Wealthy Minds" - you would know that I got severely bitten in my last transaction - all because I followed the wrong advice.

The stock market can be manipulated by the big players and Government policies. Personally, I have decided to stay away from it. There are far TOO many variables involved PLUS with shares "you cannot touch what you are buying." In real estate you can drive on over and look at your investment and you can TOUCH it. That is important to me.

The best [general] "advice" that I could give you is:

1 - education is ALWAYS very powerful - that is the FIRST thing that people, who want to make money, should do.

2 - start now - not next week, next month etc etc. The Chinese have a saying: "The best time to plant a tree is twenty years ago. The second best time is NOW!"

OK. Sorry that this was so darn long.

Thanks Kandy for your email."

Best Wishes

Gary

RESPONSE: Kandy writes...

"Thanks, Gary! You know...I was thinking of same thing in real estate. I would like to pool a couple of resources between friends, and find a nice little fixer upper and turn it, and then try that again.

I am [EARLY 50's] and becoming burned out in my chosen field of Human Resources plus I am not getting paid that well considering the length of time I have been in this career and I am tired of corporate America expecting more for less. I think it may be time to begin that research and begin a little group to exchange ideas and hold each other accountable for our spending and saving. Thanks, Good Day!!!!!"

Kandy

FINAL [GENERAL] COMMENT ON THIS EXCHANGE:

This is good. Action is going to be taken. When no action is taken - NOTHING happens.

Just a final suggestion - make sure that all partners have the same goal and expectations. Seek agreement that all input will be EQUAL - both in finance and effort. Write a contract if necessary. It doesn't have to be prepared by an attorney.

Getting written agreement from ALL partners on rights and responsibilities is a wise move before ANY definite action is taken. Issue a copy of the signed and dated agreement to all partners. Then, nobody will be able to come back with that little pearl... "I didn't know."

Even better than that - choose your intended partner(s) wisely. Going into business with somebody (and what you are thinking about IS business) is like entering into a marriage. Easy to get in... painful to get out. Enough said!

QUESTION: Mark writes...

"Mr. Simpson,

Thanks for including me in your roll out of this new web site.

I can not get off my butt to take action on one single financial dream. To borrow a cliche from Investment Real Estate..." I have analysis paralysis" but, I think it is really a fear to make a decision.

I live pay check to pay check yet I feel like with a family and a house on the line I can't make a single mistake. So, I live my life relatively unchanged working 9-5 and not fullfilling my financial dreams.

I have a great marriage, family and I like my job and employer. I choose to be happy, count my many blessings and find joy in most things. However, I would like to provide more for my family and that will not happen if I don't make a way to change.

I know it takes action. Any insight?"

Thanks - Mark

ANSWER:

"Hi Mark,

First, thank you for your email.

Your "analysis paralysis" is common. I am a great analyst myself. I like to know the "ins and outs" of everything that I am interested in. That is, if something takes my interest then I go all out to find out everything I can about it - and I mean EVERYTHING.

In my personal library I have approximately 150 (maybe more) books on personal development, motivation, self esteem etc. I would have 50 or more books on investing and, well, I couldn't even count the number of books that I have on karate which has been a passion of mine for over 35 years. They would number in the many hundreds. In fact, I am looking at them now - shelves and shelves and shelves of them.

Also, when I get to like an author I will go and buy every book that the author has ever written. For example, I really like Michael Connelly, Nelson deMille and Lee Child. I have every one of their books.

What I am saying is that I am an information HUNTER. Information is potential power. Notice I said "potential" power. That power will NEVER reach its potential if you do NOTHING with it. I have a saying and I hope that you do not take this personally - "it's no good to be an over-educated under-achiever." So many people know so much but they do so damn little.

Mark, what I do is this...

I gather information. I assemble it in my mind. I write key points down. I then make up a list of advantages and disadvantages. When the advantages far outweigh the disadvantages then I ACT. I put in time and effort and often, money. But I am cautious about how much I spend before I see a return materializing.

I understand that you love your family and you like your job. That is great. But, feeling unfulfilled inside yourself does not make you the best that you can be. If you were more fulfilled then you would be able to give even MORE of yourself to your loved ones.

Also, if you are making money OUTSIDE your employment and no longer need to "sweat" on that paycheck every week, guess what? Your attitude rises because you no longer feel "chained" to your employer. I hope that makes sense. I have been in that position myself.

Action is indeed the key to success. Without action even the greatest plans are useless. I read something yesterday that said something along the lines of "write your desire in concrete and your plans in sand."

Mark, you need to get active. Make things happen. Energize. You don't need to compromise any of your existing life. You just need to do MORE. I know that having a 9 to 5 job can be energy draining, especially if it is one with a lot of responsibility. I can assure you this... very few people ever became wildly successful by working the hours of 9 to 5 then eating dinner, flopping into a chair to watch some mindless drivel on TV then going to bed. It is what they do from 5 to 9 (after normal working hours) that makes all the difference.

Finally, when you do the "thing" (your project/desire/goal/dream/whatever) the thing will give you more energy. That's called enthusiasm. It will take on a life of its own inside you. But you have to make a start. You have to overcome that inertia. Only YOU can do that. Let me ask you - just how important is your success? Rate it from 1 the lowest to 10 the highest. There is your answer.

I have stumbled and failed many times but... I have also had some outstanding successes and when they happen all the rest fades into oblivion.

For more information study the "Wealthy Minds" newsletter. It ALL happens inside your head FIRST.

I hope I have been able to give you some encouragement and inspiration."

Best Wishes

Gary

FINAL [GENERAL] COMMENT ON THIS EXCHANGE:

EVERYBODY has trouble getting started. But like I mentioned to Mark above, once you get under way then it is so much easier.

A rocket fired into space uses almost all of its fuel leaving the gravitational attraction of the earth. But once that rocket is actually in space it doesn't take hardly any fuel at all to keep it going...

... and so it is with our dreams and goals. Make the start. Nobody else can or will do it for you, nor should they. It's YOUR dream, YOUR goal - YOU do it. Then, when it has been accomplished YOU take the credit for it. And guess what?

You will have all these LAZY people telling you junk like: "Oh, it's OK for you" and "Gee, you are SO lucky!" Hmm.

Has anybody detected a theme that runs through a lot of what I say? Like the Nike slogan - "Just do it!" Stop wasting time. DO IT!

You might like to pop across to my motivational website and read this: Are You an Achiever or Are You an EXCUSIOLOGIST?.

It's a bit "heavy" so if you prefer a "lighter" more humorous look at the same subject of "achievement" then you might enjoy this more: What Words Will They Chisel Into Your Tombstone?.