How Not to Make Money by Investing

Many people think buying a property and renting it out is a good investment even when they have to top up the mortgage with their money.

Amazed, that is how I feel every time I hear someone who has an investment property having to cough up money from his or her pocket to cover the cost of owning the property. It seems some people don’t understand what an investment means and what its purpose is.

Our conversation was about how fast the month of February was ending, but we somehow ended up talking about money and owning investment property. It was then that a friend’s acquaintance mentioned having problems with one of his properties.

Apart from his tenant not paying the rent for the past four months, since renting out the property he had been paying two hundred pounds every month to cover his mortgage. His tenants also happened to be family friends so he relied on them paying the money directly into his account, not bothering to check this was happening. To make matters worse, the bank was now repossessing the property.

It doesn’t take much to see that many bad choices had been made. First off was the casual relationship, then comes forgetting to monitor cash flow and finally, not treating the investment property as a business. The sad fact from my experience is that this scenario is common.

It reminds me of property programmes where people buy property to sell for profit after refurbishing it – also known as flipping. However, majority of the people featured forget to think like a developer and business person who’s aim is to make money, not become emotional about painting the walls their favourite colour or installing an expensive kitchen just because they like it.

You might like to know what an investment means and how to make money from it. By investing, you are hoping the product you have invested in will increase in value (capital growth) and or provides you money monthly (monthly income). Owning rental property that requires paying money into it monthly is not an investment, it’s a liability – draining you. The fact that your property “might” increase in value in the future is irrelevant, as worse you should aim to break even, that is have the investment cover itself.

It is easier to make money from your investment when you treat it like a business, and by that, I mean monitoring your cash flow, knowing who your customers are, the services you provide and what the job of the business is about – making money.

As is always the case making money involves thinking and acting in a certain way; owning an investment property is a business and one that should be taken seriously if it is to make you make you money.

Money and Dog Pooh

It is easy to avoid stepping on dog pooh provided you are aware and thinking of what is in front of you, just as should do with your money.

What do you do when you step on dog pooh? Do you blame the dog’s owner, the dog or yourself? My guess is you like many others would blame the dog’s owner for leaving their dogs’ mess on footpaths. However, I do think you also played a part by not thinking and watching where you are going.

My journey to the train station this morning was no different; I had to weave through dog pooh dotted along the footpath. My experience had taught me to watch where I was going, to be mindful of the dangers on our footpaths. As expected, I got to my destination intact.

The chap in front of me wasn’t so lucky. He unfortunately was not paying attention to the dog mess on the footpaths and he paid for it by stepping one. Angry about what had happened, you could hear him muttering swear words at dog owners who fail to clean up after their dogs.

Not what he bargained for on his way to work and I could sympathise with him, after all having smelly shoes on a packed train isn’t something you want, especially when people realise the funny smell is coming from you and they resort to staring at you with disgust.

The incident got me thinking, first on how some people walk without watching their step and secondly, how people apply the same mentality to their money. While leaving dog mess on footpaths is an irresponsible thing to do, it is your responsibility to be careful of your steps making sure you don’t step on one, just as it is in your interest to watch your money steps.

It is easy to assign blame for your misfortune on others, but doing so doesn’t solve any problems. What is important is to take control of your situation by thinking ahead and taking the right steps that would ensure your financial health is intact.

Making Money - Do not get it Twisted

“If you think life is all about making money then you are wrong”

There is more to life than just making money. First off is who you are and what you stand for, after comes good health, family, friends, and your contribution to the world.

Money you can see comes miles behind because it is nothing but a tool, used in exchange for what you want. Making money matters as long as you understand its place and this is where most get it wrong.

Money for many people becomes troublesome because it is used as a commodity. They regard money as having a value of its own unrelated to its use as a means of exchange. Although money is the obvious desire, it is usually not the final goal.

In short, money is a catalyst. It is important because it serves to bring equilibrium into your live. Through the tools it buys and the freedoms that it offers, money offers you the profound opportunity to discover your hidden talents, to realise your inner potentials, and to achieve your personal goals.

Making money however, is not a matter of survival or life and death rather it is about increasing the quality of your live, relationships - the true purpose of money. It is your duty to understand money - how to ethically make it, keep it and share it. But what matters first off is how you feel about yourself, what you are doing, and your relationships with family, friends and community.

Consider for a minute that it will all end at some point. The money, car, house and fancy gadgets you have would be gone forever. What will matter when you depart this world will not be what you had, but what you were. You will be remembered for what you gave - your time, love; what values you taught those who were around you; who you encouraged; what you did for others with your money.

Understand that making money, on its own is nothing. Yes, money will buy you many things. But will it make your life meaningful? Being successful is not just about having money, but also about having a loving family, spending time with loved ones, helping others and getting more out of life.

Single Payment or A Multiple One?

Imagine the advantage that comes with repeated payments for your work. You carry out a task once but you are paid for it not once but three times and more. A good way to make money don’t you think.

Take a photojournalist as an example, he (she) takes a photo once but receives payment for the photo repeatedly by newspapers and magazines who want to use the photo in their publication. The rewards, you will agree exceed the work involved in getting the photo.

Consider how a teacher, nurse or salaried employees make their money. A typical nurse would work fifty hours a week and only be paid once for the hours worked. Not a good idea is it, any time not spent working means time not earning money.

Now think about the two scenarios. Who do you think has the potential to make more money? The photojournalist earns money repeatedly but also more important has time, time to take more photos, do more and earn more. Our nurse on the other hand is stuck on one pay cheque and no time.

If you are earning your money only once, you still have time to change, to start receiving multiple payments for a single effort. All you need to do is think about how to make money by making good use of your time.

You can learn from a friend who saved and borrowed money to buy two refrigerated vans, which he has now rented out to a company. He will be recouping his money in four months and from then on, it’s all profit minus the expense of servicing the vans. While he is going about daily life, his vans are busy working and earning him money. In addition, he still has time to investigate more ways of making money.

Making money, is about how you think, making good use of your time and the money already in your control. Get your thinking straight to join the small group of people who receive multiple payments for a single effort.

What is the likelihood of you having all you want?

The only way to make money - by thinking

The last time I checked, the odds of winning the UK National Lottery jackpot was 1 in 14 million, and for £100,000, the odds were about 1 in 2,330,630.

What if I told you the odds of you being successful – financial, emotional, spiritual – are in your favour would you believe me?

Well, they are, the odds are on your side and have always been. The question is, are you willing to think and act, commit yourself to doing what most people don’t and will never do.

Consider the construction of a house. Anyone planning to build a house follows a construction process and builds the house using an established system. They start with a plan of the house, then move on to the main construction phases, which include digging a foundation, constructing the floor, walls and finally the roof. They follow a method to achieve their dream

The same is true of your goals; you need to follow an established process. Take the making of money for example, how do you make money? How are people making money?

Start from the end - work back if you will. Trace your intended result back to find out what causes it. What you will learn is the process you will need to go through to achieve what you want. Copy the process and you will get the same result every time.

You and I live in a world ruled by laws, of which one is the law of cause and effect, meaning everything happens for a reason. We sow what we reap and get set results by doing things in a certain way.

In short, everything depends on you taking the steps proven to lead you to your desired goal. The simple act of thinking, drawing up a plan of action and sticking to it is all it takes to make money. Those who do such things become wealthy, whether they achieve that end intentionally or by accident.

If you really want to make money, you have only to set your mind on it, and follow a proven method, as you would do when building a house and realising your aim will be definite. Much better than playing the lottery don’t you think?

What would you do with £100,000?

If I gave you hundred grand, what would you with it? Will you save it, use it to buy your dream car and home, or think of ways to grow it?

Have you ever thought of those who have money being astute about money? You would be wrong to think so; managing money is tricky for both the well to do and those who have none.

We were in a coffee shop catching up on life when my friend asked me what I would do if I had £100, 000. I asked him if he had the said amount and wanted advice on what to do with money, but he would not yield until I answered his question.

After telling him what I would do with the money, he then told me what he would and that a friend of his had such an amount sitting in the bank, doing nothing. He also told me the money had been in the bank for sometime and his friend did not have an idea what to do.

The rest of the afternoon was spent talking about different things one could do with a hundred grand. We also moaned at how absurd it was to have such a large sum of money and not use it wisely. One of the things we agreed was how uneconomical it was to have money sitting in the bank doing nothing - and especially in a basic saving account.

The twist of it all was that his friend was working for a bank. Not only do you think someone who worked in a bank to know how to manage money, you would also expect his employers to advice him on the best home for his money.

Our friend was busy working and making money for others, neglecting making money for himself. If only he knew all he had to do was, think of how to manage and grow his money, then he would not have to work long hours.

As we walked home, we concluded that making and managing money was something to be learnt, and the sheer having of money did not mean one was financially shrewd. We also agreed our money should be working as hard as we were. As we made our way, we shook hands to not wasting money.

C C coming to Greenwich

Congestion charging is on its way to Greenwich as shown by proposals drawn up by the Local Council and Transport for London.

The proposed scheme will see drivers charged £2 per trip through the Blackwall Tunnel, and £6 to drive into central Greenwich, an area covering the Cutty Sark and the Greenwich Observatory.

Should the scheme by approved - which is almost certain - drivers will end up paying a hefty £16 a day should their journey take them through central Greenwich and central London.

We were told a few years back when congestion charging first started that it was only going to be in central London. However, 5 years later, and already, the central London scheme is being extended and the charge increased, and in addition, now being implemented in a new area.

You should not be surprised if other local authorities start imposing a charge for driving through their own central zones. Imagine having to pay £60 a day to drive from one part of London to the other, a real threat if you ask me.

It is fair to say governments’- central and local - cannot help dipping their hands in your pocket, albeit secretly. And it seems you will have to think up more ways of making money as quickly as they think of ways of taking it from you.

Making Money – What Your Friends Have to do With It

Think your friends have nothing to do with making money. Think again…

The type of friends you keep and how they think could be restraining your potential. If making money is your thing, then you should be spending your time with friends who are doing so and amongst other things energetic about life.

Do you have friends who just seem to get you down talking about how life is difficult and unfair? Friends, who within five minutes of being in your company drain the life out of you with their way of thinking and attitude to life. Compare that to friends who have the opposite effect, who make you feel so good, you always want to be around them.

Am sure you have both type of friends, we all do. The problem is not in having these energy zapping friends, but rather in understanding them and knowing where they fit in your life. What I have found over the years is that they are this way because of their experiences and until their thinking is changed, their attitude will remain the same.

I was with one such friend the other day. Our time together filled with nothing but negativity. He was also a salaried employee, so unlike other friends who ran their own businesses and were excited about their business, making money, making a difference, he had nothing to talk about except not having enough money, wanting a better job and so on. I found I could not share ideas with him, while I was interested in talking about possibilities he was concerned with life’s difficulty.

You don’t recognise how much effect his or her attitude has until you find yourself within a short period of parting meeting another friend, one who is more encouraging, and on a mission to better his or her self. Their company makes you feel re-energised and determined to take on the world. And where you have the same aspirations you find that seeing what is possible becomes easier.

The point is you have some friends who are not on the same path as you, and in most cases impede and wear you down with their inability to deal with life. Their thinking is not as yours and for this reason, they cannot help you because they do not see what you see.

Do you stop being friends with these energy zapping and life is hard people? No, not at all, I am still friends with mine, and so should you. What you could do is limit your time with them, and if required only meet in a social setting. However, as you reduce your exposure to this group of friends, you should also be spending more time meeting with people who have the same goals as you, people who are busy doing something about their life.

Making Money and Your Emotions

Here is one reality show that has not made headline news but one I think we could learn from. Enjoy! …

Letting your emotions get in the way could affect your thinking and limit your ability to focus on making money.

I saw a programme “Did They Pay off Their Mortgage in 2 Years?” a few days ago. It was the follow up to a programme that two years ago challenged people to loose their debts by paying their mortgage off in just 2 years.

Presented by businessman René Carayol, participants had to make extreme changes to their lifestyles if they were to achieve the dream of owning their property debt free. The episode in question featured the Drakes, a young couple who had all the desire and focus needed to reach their mission.

Steph Drake, an animal lover started out by setting up a dog walking business, which with the help of a friend soon started making money. Thinking cap on, she also came up with a natural extension to her current business, to sell animal products through a website. Her husband, Neil on the other hand went for investing in a building site in Bulgaria.

The Drakes’, though progressing were soon faced with loss of focus, productivity, and the will power to carry on. They had found themselves getting emotional, and when emotions set in, what happens, you quickly lose sight of what needs doing.

You see emotion – the wrong type - is the number one saboteur of getting things done. When you get emotional, you become tired and fearful. All things negative start flowing into your head and before long, you give up on your mission. Emotion, when used incorrectly drains you of the energy required to do things.

Just as the Drakes’ whose problems started when their emotions got in the way, you will find the reason you are not doing what you need to do is because you are allowing your emotions to affect your thinking. I know from personal experience the plans that have crashed are those were I have let my emotions blur my thinking.

The next time you find yourself slowing down, losing the will to continue, check out your emotions. Making money - or whatever your ambition - is about being energetic, focused and thinking clearly. If emotions are involved, they should be those that spur you towards your goal, not drain you of vital energy.

Remember, you make money by thinking, and you can start here