1. Establish a Baseline
2. Prime the Pump
3. Invest
4. Rinse & Repeat
5. Transfer
6. Retire
1 - Establish a Baseline
a. Write down the amount you took home from your last paycheck.
b. Subtract every purchase you make until next paycheck.
c. Do this for 1 month.
2 - Prime the Pump
a. Write down all your skills, interests & hobbies.
b. Write down what you did from your most recent job
or the job you liked most.
c. From a and b, write down something you could do that
would make money for you.
d. List all the resources needed to make that happen
(oofice supplies, equipment, tools, people, contacts, etc.)
d. Start doing it.
3 - Invest
a. You need to invest in income producing investments
that exceed the rate of inflation plus the future discounted
time value of money (double your inflation figure) -
Pick a target yield. (10%, 15%, 30%, 50%, ?)
b. Research private and uncommon investments with yields
equal to or exceeding your base figure. (Examples: MLPs,
BDCs, BHCs, ETFs, REITs, timber rights, rolling stock,
option call spreads, covered calls, foreign exchange,
real estate investing, high yield funds, income funds, et al)
c. Pick 1 to start with and buy it.
4 - Rinse & Repeat
a. Cycle through steps 2 & 3 until you have attained
your first mometary goal.
5 - Transfer
a. Transfer your money overseas.
6 - Retire
a. Go to where your money is and live happily.
If this has been helpful, there are several systems available to help you achieve your goals. Look at current posts for information.
