Thursday, May 17, 2007


Multiplying wealth by two is an almost-routine ritual for upper-income families. Normally the high-earning couple in their early 30s today can expect to double their net worth once by their mid-40s and again by around age 60. But there are good arguments for accumulating wealth even more quickly. Why ? For example, sundry goods, educational , health-care and fuel expenses are rising faster than the average household's income. Therefore to overcome this , here are some tips to help you reorganized and sort out the headache by doubling your wealth.

Tips 1 – Investing

One of the solution of how to double up your income is through investment. In order to achieve our target, your investments need to earn an average return of at least twice of your capital invested. However , through investment platform, you must bear in mind that there are risks of losing your money which might cause you to sleepless nights. So where should you invest ? Or what are the factors that you should consider before start investing ? For me, these are the factors that I consider before start investing :

1.Track record - of the company
2.Returns – how much do I get
3.Risk factors - low , moderate, high
4.Durations – how long it takes for me to get back my returns
5.Capital - how much money that I’m willing to lose

Here are what I get from some of my own investment :

My capital 200. Returns 1,000. Duration invest - 4 mths. Risk - High.

My capital 700. Returns 1,500. Duration invest - 1 mths. Risk - High

My capital 500. Returns 4,000. Duration invest - 6 mths. Risk - Moderate

Unit Trust
My capital 2,000. Returns 200. Duration invest - 1 yrs +. Risk - Low

My capital 1,000. Returns 34,000. Duration invest - 1 yrs+. Risk - High

Note : The decision to invest is yours. You may invest your money somewhere else. The risk is there. Remember …… HIGH RISKS , HIGH RETURNS. My golden rules is simple, get back your capital first, only reinvest from the profit that you gain.

Tips 2 - Real Estate

Real estate is another option that you can double your money. However in doing so, a lot of money is needed for this in the initial stage. Here's an example of how the math works. Say you buy a home for $150,000. The amount of money that you have to spent in the initial stage will be :

1. Down payment (10%) - $ 15,000 minimum
2. Lawyer fees -loan agreement - $ 3,000 minimum
3. Lawyer fees-deed of assignment - $ 3,000 minimum
4. Insurance - $ 3,000 minimum
Total amount $ 24,000
The big down payment boosts your odds of having positive cash flow. Besides that, throughout the year you also have to bear other expenses, such loan repayment, taxes and maintenance. But you can write off every penny, along with capital depreciation, and then get back in the black with the rent you collect. Based on national averages for rental income, your total operating profit on this hypothetical house after five years would be about 6% a year. The other option is to sell the building at that point, and this is the easiest way for you to double your money. And that's assuming the property's value rises 14% — very conservative, considering the housing market's average annual return of 6.1% since 1975. Or you may follow my way …… Buying auction property. Why? Because…… the price is cheaper than the market value. Last 2 years I have rented an office. My monthly rental that I have to pay is $ 600. However, last year I had managed to buy an auction property for a price of $ 54,000. The actual market value for the property is $ 90,000. By doing so I only have to pay my monthly loan repayment $ 300 ( Compared to rent I have to pay - $ 600 meaning I save 50% ). If I sell it now ? ……. Of course I’ll make a better profit.

Tips 3 - Starting a Business

Make your move now. How? Through …. ONLINE BUSINESS. This is one of the business that can generate you more money. To help you generate extra cash for investing and saving, you may focused on part-time work from home that can earn a decent income — an option that gets more realistic every year, thanks to the Web. Now it is easier to monetize your brilliant thoughts via a Web site or blog. Advertisers have finally embraced blogs as a way to target niche markets. Programs like Google Adsense can place relevant ads on your site in return for a cut of the proceeds. You can write about your hobbies, views or just about anything. Or you may utilize your own expertise to make money by using the web. To pick just one example, the growing population of retirees and young singles (i.e., folks with free time) is creating more jobs for one-on-one tutors. Instructors working solo can earn anywhere from $15 to $95 an hour teaching anything from academic subjects to sailing to jazz guitar.

Tips 4 - Savings & Spending

Control you budget and spending habits. In order to save even more money, take aim at your life's biggest expenditures which is your house and your wheels. Start in your driveway, where buying used car instead of new one can pay off big. Consider the brand new car. If you buy a new one, let say the price will be at around $42,000, your five-year ownership costs — everything from fuel and maintenance to that old devil, depreciation — will amount to a little under $58,000. How about buying a three-year-old used model, and your costs will be about $12,000 less. Duplicate that strategy in a two-car family, and you've freed up $24,000.
Next, take a trimmer to the monthly mortgage payment. The spreads in interest rates between fixed- and adjustable-rate mortgages are fairly narrow right now. But rates have been sliding, and anyone who recently locked in a mortgage stands a good chance of finding a better deal — even more so if they hold an adjustable loan that has reset to a higher rate. On a $400,000 mortgage, the difference between a loan at 7.5% and one at today's prevailing rates of 6.25% would add up to more than $20,000 in payments over five years.
One final thought …… Healthy living is good for your bank balance. A recent study by the Center for Creative Leadership found that executives who exercise regularly scored better on a test of leadership skills than those whose butts never leave their chairs. Though the study didn't examine earnings, it's not hard to see how these marks could result in bigger bonuses and faster promotions.

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