Do you get rich from being conservative with your money? ( not miserly )

[hinz]

I believe in the KO ( K. O`Leary ) philosophy that you should be paid to wait. ( dividends ) The bulk of my investments are dividend paying stock. I do invest a smaller portion in higher ( but manageable ) risk stocks.

Ah O'Leary, he's entertaining on TV but I am not so sure his investment acumen, let alone business savvy based on the following from CB.

http://www.canadianbusiness.com/man...0016_10016&utm_source=business&utm_medium=rss

I am glad I did not take his "sugar-coated" poisons/stock tips when he and Amanda were at ROBTV/BNN. He looks and entertains like Jim Cramer without a goatee.

BTW, WRT dividend paying stocks, XDV at TSX and VIG at NYSE could be a good start.

And for KO, enjoy both the drink and steady increasing dividends, thank you very much.

 

[hinz]

A couple of ideas,

http://www.wisebread.com/
http://www.squawkfox.com/

Keep in mind though, these are not everybody's cup of tea, ladies in particular.

 

[Rockslinger]

Year end numbers speak for themselves though

When I took a look at my 2009 year end numbers, I couldn't believe I survived on so little.

 

[hinz]

When I took a look at my 2009 year end numbers, I couldn't believe I survived on so little.

+1

Having said that, I haven't quit the hobby....yet.

 

[Master_Bates]

My best advice for anyone is... Invest in real estate. Rental properties are a GREAT way to make money

 

[TorontoWarrior]

If you want to be wealthy, you need to adopt the mindset of the wealthy. A majority of self-made millionaires share several traits: hard work, integrity, discipline, frugality, and risk tolerance. I am connected and mentored by several multi-millionaires, and the biggest thing for these people is not about flashing and spending money on material items to impress others, it's about seeking opportunities and seizing them to make money. And the more money they make, the more opportunities they seize. To them, making money is a sport. Their philosophy is simple: the more you play the game of making money, the better you get. While the rest of the poor and middle class work for their paycheques, millionaires work to increase their income producing assets and net worth.

 

[lovedoc]

Amen.

Having said that, it's all academic when you blow too much cash on SPs/MPAs or cigarettes or booze or fast cars or any high lifestyles before you invest a dime. Even when you manage to accumulate substantial dough many are repeating mistakes by mixing up day trading/punting/speculating as investing.

BTW, I have yet to see any ladies, civilian or pro who could live as frugal as this granny.

It's all about our comfort zone Watson. We hit a level we're not accustomed too, and we switch off like a thermostat. Just made 100G's check out my Lambo....

 

[lovedoc]

If you want to be wealthy, you need to adopt the mindset of the wealthy. A majority of self-made millionaires share several traits: hard work, integrity, discipline, frugality, and risk tolerance. I am connected and mentored by several multi-millionaires, and the biggest thing for these people is not about flashing and spending money on material items to impress others, it's about seeking opportunities and seizing them to make money. And the more money they make, the more opportunities they seize. To them, making money is a sport. Their philosophy is simple: the more you play the game of making money, the better you get. While the rest of the poor and middle class work for their paycheques, millionaires work to increase their income producing assets and net worth.

Packed with lots of wisdom.

"If you want to be successful, find someone who has achieved the results you want and copy what they do and you'll achieve the same results. "
Tony Robbins

 

[Mencken]

Another way to "not" get rich...MUTUAL FUNDS.

Try taking 2.5% compounded off any equity investment, let alone fixed income, and see how you do over time. The vast majority of funds cannot match the results of a simple index - like the S&P 500 for example. Those that do cannot sustain it over multiple years and business cycles. Those that say they have/do are, almost without exception, deceptive. Companies have all these great funds with track records...because they turf the funds that don't perform, hype the ones that have (recently), and don't tell you that the very reason some did well is because they are NOT diversified. So if you want to be NOT diversified why are you buying funds in the first place?

My rant for the day.

 

[Ceiling Cat]

You can get rich with mutual funds, if you are a fund manager.

 

[Master_Bates]

unless you're getting some really good returns compound interest is not that powerful.... i don't care how many times you can compound 4% if inflation is 5%... you may be gaining money, but you're losing spending power.

 

[Cruzer22]

I would like to give my money to someone who would be able to properly invest it such that I got 8-10% return. I don't think you get to meet those people unless you got a couple million to begin with.

 

[GotGusto]

It takes money to make money. If you're not born into wealth and you don't have some great talent or intellect, and you don't have connections, you're going to have to cut corners and bend the rules from time to time to accumulate capital that you can use to invest and build wealth. You won't learn this in any school nor in any "get rich quick" book or seminar. It's a given that you need to be dedicated, disciplined, goal oriented, and a risk taker, but these are inborn traits. You either have them or you don't.

 

[Master_Bates]

I would like to give my money to someone who would be able to properly invest it such that I got 8-10% return. I don't think you get to meet those people unless you got a couple million to begin with.

8-10% isn't that high really... and when you have less money its much easier to get better returns....

One of the best way for someone to start making money is invest in a rental property... then once you have enough net worth, start diversifying into the business of your choice/dreams.

I worked hard during high school, saved a lot of money... when I went to university, i purchased a house (parents cosigned), and rented out some rooms to other students.... I made a fair bit in rent but wasn't satisfied with just that, so I got also had a part time job to help pay it of faster.... Not to mention that owning your own house at such a young age makes you that much more attractive to young women

fast forward to today... I own several rental properties pulling in 20+k/month in rent, and I've been able to open a business that I thoroughly enjoy. Investing in the stock market just seems more volatile to me and less within my control. Not only that, but once i'm ready to retire, i'll still be making 20+k/month with very minimal amounts of labour. Once I pass away, my family will be taken care of....It just seems like a no brainer to me

 

[palmpalm]

8-10% isn't that high really... and when you have less money its much easier to get better returns....

One of the best way for someone to start making money is invest in a rental property... then once you have enough net worth, start diversifying into the business of your choice/dreams.

I worked hard during high school, saved a lot of money... when I went to university, i purchased a house (parents cosigned), and rented out some rooms to other students.... I made a fair bit in rent but wasn't satisfied with just that, so I got also had a part time job to help pay it of faster.... Not to mention that owning your own house at such a young age makes you that much more attractive to young women

fast forward to today... I own several rental properties pulling in 20+k/month in rent, and I've been able to open a business that I thoroughly enjoy. Investing in the stock market just seems more volatile to me and less within my control. Not only that, but once i'm ready to retire, i'll still be making 20+k/month with very minimal amounts of labour. Once I pass away, my family will be taken care of....It just seems like a no brainer to me

I have always liked the idea of rental properties but so many people told me that being a landlord is such a huge headache and drain on their lives. How do you deal with that?

 

[Ceiling Cat]

Its the luck of the draw, you might get a good property and good tenants, but you might not. There is a famous TERB member here that regularly boast about the hell she puts her landlord through. Some people believe that just because they pay rent they are entittled to be treated as if they were at the Ritz. You can make money in rental property, but you will know how much you will be paid 20 to 30 years down the road.

 

[Master_Bates]

I have always liked the idea of rental properties but so many people told me that being a landlord is such a huge headache and drain on their lives. How do you deal with that?

Like anything else... If you do the all the prep work you should be ok. Background check, credit check, personal references.... not to mention facebook, google, and even professional references if they're ok with it... Now I won't rent out to someone without some sort of 'net presence'.... I've been quite lucky for the most part over they years only ever having to evict one tenant. While sometimes there is some legal work etc to go through, I'm pretty sure that the $$/work done is far greater than your current job in most cases.

 

[RAWD]

You never can tell with tenants. I've had a registered nurse turn out to be a crack/meth addict and trash the place. I've have day labourers who never fail to pay their rent on time. It's all about the character of the person.

Ideally, if you can muster the capital, get a low rise multi-unit res. you want to diversify your cash flows and reduce the risk of vacancies, etc.

 

[Ceiling Cat]

Rental property - tenants.

My advice is at the first sign of trouble take them to the rental tribunal, that shows the tenant that you will not take any crap from them. If they want to waste your time, show them you will spend the time to take care of your business. I had a tenant that I took to the rental tribunal 18 months ago, she is staying on after her initial lease is up, because she can not get better and she probably fights with all her landlords. For her there will be no more favors, no more accepting her packages or mail. No more letting in the cable guy. It is by the letter of the lease only.

 

[Master_Bates]

Its the luck of the draw, you might get a good property and good tenants, but you might not.

Just like stocks or anything else, people that attribute it to luck are the ones that don't understand. You are in direct control the whole time and evicting or convincing tenants to leave aren't that bad over all. Maybe I'm naive in thinking that most (not all) people out there are good, but that's just based on my experience.

There is very little luck in finding a good rental property, having a good real estate agent helps greatly, especially one that has experience in rental properties. As well as a good lawyer, and contractor/handyman.