February 18, 2011
How to Evaluate a Property in 1 Minute or Less
I would like to share a quick trick I learnt on how to speed up the process of evaluating properties for their cash flow potential. This technique is a simple calculation that tells you to continue looking at a property or to move on. While it is still important to do your due diligence, here is a way to quickly investigate a property in 1 minute or less.
All you need are two numbers: the price of the property and the rental income you will get each month. If the monthly income is 1% of the purchase price then you are pretty much guaranteed a property that will cashflow.
For example, if you have a property that costs $200,000 and it gets $2,000 per month in rent, the simple calculation tells her that it is a property you would like to learn more about. The numbers are looking really good.
If you have a property that costs $200,000 and the rent is $1,400 per month, it's hitting .7%. you would probably still look into this property, but you would do it knowing that the money will be tight. Anything lower than than .7% is going to be really hard to make cashflow without either a big downpayment, lower purchase price or higher rent.
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February 11, 2011
10 Reasons Why Being Debt Free Makes You Happier
Being debt free is an eventual goal for a lot of people. It’s not easy to achieve debt-free status though, especially if you are starting from a point where you owe a lot of people an awful lot of money. If you need motivation during your quest to get all your bills paid off for good, keep in mind these ten reasons why you would be happier if you were debt free:
1. You’ll Have More Money
We all know the saying money can’t buy happiness, but neither can being broke. Not having any debt is probably going to put a lot more money in your pocket, and that’s something that makes plenty of people quite happy.
2. You Won’t Owe Anything to AnyoneImagine not owing anyone a cent. How amazing would that be? Without any debt you can literally walk around your home basking in the glory of all the things you owe outright.
3. Setbacks Aren’t Such a Big DealIf you have to visit the emergency room or you get laid off you probably won’t panic nearly as much as if you had a ton of debt obligations. Financial setbacks are annoying when you’re debt free, but they can be absolutely devastating when you’re riddled with debt.
4. Retirement Won’t be So DauntingRetiring without any debt is certainly preferable to bringing a great deal of debt along with you into your golden years. Even if you are many years away from retiring, being debt free will make the impending experience less frightening.
5. It’s Less to Keep Track OfKeeping up with a variety of bills can be time consuming and bothersome. Without a bunch of bills you won’t have to dedicate an evening to paying bills and sorting through statements. That makes life easier.
6. You Teach Your Kids a Valuable LessonIf you have children, having no debt is an amazing lesson to teach your kids. They’ll grow up knowing that not everyone spends their lives saddled in debt, and may follow your example when they become adults. Really, what makes parents happier than seeing their children succeed?
7. You Have Money to Help Other PeopleWith less debt you’ll probably have more money, and if sharing your wealth makes you happy then you’ll be in a great position to do so. Instead of sending money to credit cards and loan payments every month, you can give generously to whatever charitable organizations you want to support.
8. Achieving a Goal is EmpoweringSetting a goal and achieving it can be a happy event. When you know that you have the stick-to-itiveness to pay off all your debt you will probably figure you can do just about anything you set your mind to.
9. One Less Stress-orLife can be hectic enough. Without debt looming overhead you can deal with everything else life throws you more effectively because you have one less thing to worry about. Remember the lyrics to this song: Don’t worry, be happy.
10. You Can Use Your Money to Build Wealth Instead of Giving it to DebtorsWhen you’re not stuck in the debt payment cycle you can set your money to work for you. Invest, save, and do whatever it is you want to do with your money to build up some real capital. Watching your money grow exponentially is enough to make almost anyone happy.
Final Thoughts
Being debt free doesn’t guarantee eternal happiness, but it can certainly help. When you don’t have to worry about getting bills paid off, missing payments, and paying interest and fees you can concentrate on the other things in life that demand your attention. Some people might make the claim that becoming debt free was a sort of “rebirth” for them because it changed everything.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------February 4, 2011
Is Loving Money Wrong?
Many people love money. Oh, come on. Admit it. You’re probably pretty fond of money too. If we’re honest, most of us love money. Actually, we love money we don’t have. How else can you explain our addiction to credit cards? Our culture loves money so much that we have television shows dedicated to showing off people’s million-dollar houses and garages full of luxury cars!
Every day, we see thousands of ads that promote the dollar as the end-all-be-all ticket to a happy life. But we know better than that…don’t we? Wait a minute, you say. Doesn’t the Thornhill Wealth Forum talk about building wealth all the time? We sure do. But we speak about a healthy view of money. The foundation of the Thornhill Wealth Forum ideas of wealth building are that you wealth should allow to have choices and build wealth so you can help your family and others … and leave a legacy after you’re gone.
It’s also okay to want to make a lot of money and to enjoy spending it! But what’s the end goal? Is it to own stuff, or is it to help others and to change your family tree? For some people, the “love” of money is more like an obsession or an addiction. It can drive a wedge between spouses and teach kids that stuff is more important than anything else. It can lead to divorce and broken families. When we talk about changing your family tree, that’s not what we have in mind!
Think of money as a tool. You can use it to help yourself and others, or you can use it to tear all of that down. You can use it to save for your kids’ college fund, help your favourite charity, or you can use it to buy a bunch of stuff that will be collecting dust two years from now. A healthy love of money will drive you to get intense about working through the Baby Steps and getting out of debt.
It will motivate you to make better decisions with your money—decisions that involve only spending on needs, not wants. You will view life through a new lens, a lens that puts your future and the well-being of your loved ones first. Don’t let money and stuff run your life. There’s no need to obsess over money. Plenty of other people will do that. With Valentine’s Day just a few days away, remember who and what is important in your life, and keep that in perspective this year.
How to Evaluate a Property in 1 Minute or Less
I would like to share a quick trick I learnt on how to speed up the process of evaluating properties for their cash flow potential. This technique is a simple calculation that tells you to continue looking at a property or to move on. While it is still important to do your due diligence, here is a way to quickly investigate a property in 1 minute or less.
All you need are two numbers: the price of the property and the rental income you will get each month. If the monthly income is 1% of the purchase price then you are pretty much guaranteed a property that will cashflow.
For example, if you have a property that costs $200,000 and it gets $2,000 per month in rent, the simple calculation tells her that it is a property you would like to learn more about. The numbers are looking really good.
If you have a property that costs $200,000 and the rent is $1,400 per month, it's hitting .7%. you would probably still look into this property, but you would do it knowing that the money will be tight. Anything lower than than .7% is going to be really hard to make cashflow without either a big downpayment, lower purchase price or higher rent.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
February 11, 2011
10 Reasons Why Being Debt Free Makes You Happier
Being debt free is an eventual goal for a lot of people. It’s not easy to achieve debt-free status though, especially if you are starting from a point where you owe a lot of people an awful lot of money. If you need motivation during your quest to get all your bills paid off for good, keep in mind these ten reasons why you would be happier if you were debt free:
1. You’ll Have More Money
We all know the saying money can’t buy happiness, but neither can being broke. Not having any debt is probably going to put a lot more money in your pocket, and that’s something that makes plenty of people quite happy.
2. You Won’t Owe Anything to AnyoneImagine not owing anyone a cent. How amazing would that be? Without any debt you can literally walk around your home basking in the glory of all the things you owe outright.
3. Setbacks Aren’t Such a Big DealIf you have to visit the emergency room or you get laid off you probably won’t panic nearly as much as if you had a ton of debt obligations. Financial setbacks are annoying when you’re debt free, but they can be absolutely devastating when you’re riddled with debt.
4. Retirement Won’t be So DauntingRetiring without any debt is certainly preferable to bringing a great deal of debt along with you into your golden years. Even if you are many years away from retiring, being debt free will make the impending experience less frightening.
5. It’s Less to Keep Track OfKeeping up with a variety of bills can be time consuming and bothersome. Without a bunch of bills you won’t have to dedicate an evening to paying bills and sorting through statements. That makes life easier.
6. You Teach Your Kids a Valuable LessonIf you have children, having no debt is an amazing lesson to teach your kids. They’ll grow up knowing that not everyone spends their lives saddled in debt, and may follow your example when they become adults. Really, what makes parents happier than seeing their children succeed?
7. You Have Money to Help Other PeopleWith less debt you’ll probably have more money, and if sharing your wealth makes you happy then you’ll be in a great position to do so. Instead of sending money to credit cards and loan payments every month, you can give generously to whatever charitable organizations you want to support.
8. Achieving a Goal is EmpoweringSetting a goal and achieving it can be a happy event. When you know that you have the stick-to-itiveness to pay off all your debt you will probably figure you can do just about anything you set your mind to.
9. One Less Stress-orLife can be hectic enough. Without debt looming overhead you can deal with everything else life throws you more effectively because you have one less thing to worry about. Remember the lyrics to this song: Don’t worry, be happy.
10. You Can Use Your Money to Build Wealth Instead of Giving it to DebtorsWhen you’re not stuck in the debt payment cycle you can set your money to work for you. Invest, save, and do whatever it is you want to do with your money to build up some real capital. Watching your money grow exponentially is enough to make almost anyone happy.
Final Thoughts
Being debt free doesn’t guarantee eternal happiness, but it can certainly help. When you don’t have to worry about getting bills paid off, missing payments, and paying interest and fees you can concentrate on the other things in life that demand your attention. Some people might make the claim that becoming debt free was a sort of “rebirth” for them because it changed everything.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------February 4, 2011
Is Loving Money Wrong?
Many people love money. Oh, come on. Admit it. You’re probably pretty fond of money too. If we’re honest, most of us love money. Actually, we love money we don’t have. How else can you explain our addiction to credit cards? Our culture loves money so much that we have television shows dedicated to showing off people’s million-dollar houses and garages full of luxury cars!
Every day, we see thousands of ads that promote the dollar as the end-all-be-all ticket to a happy life. But we know better than that…don’t we? Wait a minute, you say. Doesn’t the Thornhill Wealth Forum talk about building wealth all the time? We sure do. But we speak about a healthy view of money. The foundation of the Thornhill Wealth Forum ideas of wealth building are that you wealth should allow to have choices and build wealth so you can help your family and others … and leave a legacy after you’re gone.
It’s also okay to want to make a lot of money and to enjoy spending it! But what’s the end goal? Is it to own stuff, or is it to help others and to change your family tree? For some people, the “love” of money is more like an obsession or an addiction. It can drive a wedge between spouses and teach kids that stuff is more important than anything else. It can lead to divorce and broken families. When we talk about changing your family tree, that’s not what we have in mind!
Think of money as a tool. You can use it to help yourself and others, or you can use it to tear all of that down. You can use it to save for your kids’ college fund, help your favourite charity, or you can use it to buy a bunch of stuff that will be collecting dust two years from now. A healthy love of money will drive you to get intense about working through the Baby Steps and getting out of debt.
It will motivate you to make better decisions with your money—decisions that involve only spending on needs, not wants. You will view life through a new lens, a lens that puts your future and the well-being of your loved ones first. Don’t let money and stuff run your life. There’s no need to obsess over money. Plenty of other people will do that. With Valentine’s Day just a few days away, remember who and what is important in your life, and keep that in perspective this year.