I was never a great student in school. I wasn’t a bad student …I just was not interested in what was being taught. As I have moved into being an Entrepreneur, I have learned a lot about myself. One of the keys to my success is that I’m Auto-didactic (self-taught)
I love to study when it is something I’m interested in.
I study MONEY every day because Money is a very complex subject and it has my attention. Every day, there are new rules about Money and what I study mainly is the Timing of Money. Last week, I started talking about Sipho’s and my first deal together. It may surprize a lot of readers that the first concern I always have is the shelter I live in and the proximity the shelter is to my place of business.
I consider my biggest WEALTH BUILDERS TO BE:
My Own Energy
With
Time a very close second
If I spend all day in traffic, it is a drag on both ENERGY AND TIME. If my family does not feel secure in the place we live, it is not good news for my day-to-day life…. again dragging on ENERGY AND TIME.
My family is my #1 reason I own a business. My wife and I want to be a great providers. “WE” want choice and “WE” want everyone in our family to learn to live with choices and the responsibilities that come with choice.
I said last week that the real value of a house is its shelter value……. Really, for thousands of years, that was your home value. As humans, we developed ways to split up planet earth (land titles) so that there could be a concept of ownership of home and land. As the MONEY VALUE OF A HOUSE INCREASED, the following happened:
1. New laws were developed
2. Countries’ economies were built around Home and Land
3. Banking systems were built to support the sales of Home and Land
4. Humans expectations changed around shelter
5. Marketing systems were created to make sure those expectations changed
6. A new Wealth for all is forming………. Families and their own CASTLE
The new expectation for all……. WOW!!!!!!
(Unless you don’t have the opportunity to own a CASTLE).
Enter the MONEY system of first world economies. Not only could you own your own CASTLE, you can borrow and own CASTLES to rent out and make MONEY!
Hell…. I can be King of my CASTLE and now your CASTLE too.
The MONEY SYSTEM, if understood and studied, can be a great wealth builder over time for you and your families.
Countries all over the world are developing banking and credit systems that when developed and understood, can make it great for all. If not understood ….Banks and Credit Systems can be the greatest nightmare and life-destroyer of all.
I now caution you the reader…..
What my wife and I do suits our circumstance and may not be for everyone.
Both my wife and I believe that where ever “WE” live, as long as we have our family and each other, we have a CASTLE (home) no matter where we live and whether we rent or buy.
In other words, we do not get attached to our shelter.
That is not to say that we do not want the best!!!! If the best is a one bed room apartment or 20/30 room Mansion (we have lived in both), we will make it the best in that moment.
Now back to what we do….. Now pay attention…… we really do this!!!
STEP 1: Establish the areas that are within 15 minutes of our place of business. We literally get a map, a compass and draw a circle.
STEP 2: We decide how much of our MONEY flow will be spent on shelter cost.
This is where studying is very important.
My wife and I will not spend more than 25% of our “in” Money Flow on our shelter.
Example: If we have an “in” MONEY flow of $100.00, we will only allow $25.00.
This is important…. When banks look at loaning MONEY on shelters, they have rules.
When they ask to see your financials, they are looking to see how much MONEY FLOW you really have and your habit of managing the money flow. Bankers have all kinds of rules that apply to see if you are deserving of their MONEY. The banks need to assess their risk in loaning you funds…. They have to maximise the chance of them being paid back, + interest and costs.
My question has always been…. is the Bank Worthy of my borrowing from that bank?
When you understand the rules and regulations, it is very easy to get banks to compete for you borrowing from them. I like to be able to negotiate the best agreement possible when I borrow money.
Now timing is very important.
My wife and I will always borrow MONEY on a house for the longest period that the bank will lend. “WE” have no intention to fully pay off a house. My wife and I really use the house to play the MONEY GAME.
My wife and I are not worried that the Bank makes a profit or that “WE” may pay too much Money on a weekly/monthly basis.
The process of borrowing from the bank is a mutually beneficial arrangement that suits both parties. We are building wealth over time.
More importantly, “WE” are building CREDIT CAPACITY by becoming more credit-worthy by increasing our personal credibility.
We have learned that the greatest way to pay off our home is in big chucks of money, in addition to the mandatory weekly/monthly payments.
THAT IS WHY WE HAVE 2 UNBREAKABLE RULES….
WE REPEAT FROM LAST WEEK…..
#1 RULE when we buy……. If we can’t sell the house the very next day!!!!!!! for more than we paid for it…………… we do not buy that house!!!!!!!!! There are always deals to match your circumstance, if you are willing to wait and take the ENERGY and TIME to CREATE your outcomes.
#2 RULE Never, not ever lose your credibility… This is linked to your credit worthiness.
Your greatest Asset is who you are!!
Next week, I will layout from STEP 3 the first house that my wife and I bought.
I will say this…. we lived in that first house for a couple of years, it met all of our rules and we walked away with $40k on top of the MONEY we invested in the first house. We lived in the house in a great area, close to our business warehouse and increased our wealth, all simultaneously.
We paid no tax on the $40k! (as per the rules)
Because we understood the rules and regulations around Money!
We continue to be students of Money… not because of the doodads and stuff it can buy us, but because of the life-style it affords us and the choices it creates for us.
Until next lesson SABEF Struggledork out!
