Know how to make money, not earn it

[Dean@Massiveaction]

Hi all,
My thought for the day. I realised just in the last month or so that I was taught all my life how to earn money. I am thankful that I have now learned to make money, which is quite a different thing. Understanding that money is just a "thing" a tool to achieve a goal enables me to treat it like a tool and use it to multiply itself. In addition this revelation, for me anyway, has enabled me to completely remove my emotions form my investment decisions. I'm no more afraid of a four million dollar deal now than a forty dollar deal. Once you realise you can make in a week what you used to earn in a year you really look at your life differently. It enables you to choose your dreams in stead of "the tyrrany of the ought".

As Graeme Fowler says in his excellent book if you offered people a million dollars in one hand and the ability to make a million in the other, most people would take the money. Can I encourage you all to take the other hand. Really coming to grips with this concept has changed my life, it'll change your as well!!

[Julian]

Well said Dean. I admire your ability to completely remove emotions from the buying and selling decisions. It is surely one of the keys to doing well.
Julian

[Oopsick]

Thank you, Dean, for the encouragements

[fudosan]

You started a very interesting thread. It got me thinking about what it really means. So you are saying that we should focus on THINKING how to create money, not working routinely to earn it?

[Chemill]

To reply to fudosan,

Chemill's take on what it means:
Unfortunately I still require a job - this i where I EARN my money. However where I MAKE my money in in real estate.

Example: My last real estate renovation created an increase in equity about twice my annaul salary, as I have not sold it also gives me a passive income of about 12% of my salary. It took me far less time and effort to MAKE this money than the time and effort it requires me to EARN my salary.

Another example: Yesturday my boss was playing golf, us grunts were working. He made money that day, we earnt it.

Chemill

[fudosan]

Very good examples, Chemill.

[FreezingandHot]

Yes indeed, I want to be one of those making it and I have decided I will.

FH

[Ivanhoe]

Dean!
Thank you.
Ivan

[Dean@Massiveaction]

Hi Fudosan,
What I meant is that we often spend so much time and energy earning money that we never start learning how to make it. Once you learn that you can make a years salary in one deal why would you work??

[Ivanhoe]

Because you LOVE it!
But not because it pays bills.
Wouldn't it be nice?
But in terms of time and energy - absolutely agree with you.
I think people cannot be TAUGHT this thing, they should LEARN it, or be ready to learn it. I know this from my field of activity. So you are trying to help us here but some of us are just not ready to be helped.
But everything is archieved here, so we'll stumble upon things like this in our due time and CLICK! it will work.
That's why - may I ask you keep doing what you do, please?
Cheers
Ivan

[Aston]

Hi Dean,

Thanks for you insightful posts.

Are you saying here that you've just achieved this ability to remove all emotion from your investment decisions or you've just realised it.

I'm thinking here that it may be a lot easier to release oneself from the emotions once one's goals have actually been achieved.

I'm still very much involved emotionally and I daresay fear has a lot to do with that. If it were not for fear I would/could have achieved my goals many years ago. Learning to deal with the fear is ongoing but gets easier as confidence grows.

The old cliche of "Feel the Fear and do it Anyway" has its merits but that doesn't help much with the knots in the stomach.

Regards,

Aston.

[Dean@Massiveaction]

Very good question Aston!!
I think I've just achieved it rather than realisede it. I have up till now felt teh fear and taken action anyway. I have a fundamental belief in the fact that God will look after me so that significantly reduces my fear but I find now that it is gone.
I think a large part of that is knowing what I'm doing. Knowing a good deal from a bad one eliminates fear. I see the same thing in my students, once the light comes on that they can find good deals they are generally unstoppable!!

But dealing with ones fear initially is very hard and very scary. That's why so many of us including myself for so many years, get paralysed into doing nothing.
That's why I love property as it has such a big upside and a small downside, so the risk is much less than any other investment I have found

[FreezingandHot]

Hi Poomba

I love to read your posts, they make me think about my own thoughts and what I am doing right now.

I am starting to get exited by the deal and not the property, I understand the yield now and as you have said this is a must before you buy property, so thankyou for that post on yields.

Do most of your deals now involve multiple income streams, or sometimes single dwelling property. I am looking at a couple @ present with 2 properties on the one title with 2 income streams. I suppose it really all comes down to what income you recieve from the money invested.

I would ideally like to recieve what you had mentioned before about having $50 per wk after all expences.

FH.

[Dean@Massiveaction]

Hi Pat,
Most of my buy and holds are minimum 2 incomes now, but flicks canbe anything as long as you can buy them cheap enough!!

[FreezingandHot]

Poomba

By flicks do you mean trading property?

Buy one month and sell the next.

FH.