Shell Petroleum Company Lottery

Recently I received a SMS that I win the UK Lottery of $ 1,00,000. I have never filled any lottery ticket and still I win million dollars….!!!

According to the SMS, the Shell Company of UK has done bumper lottery draw of millions of mobile numbers and my mobile number was selected among the few lucky winners. Now, according to them, What I have to do is, mail them and claim my lottery price.

Just tell me that, How many of you receive such kind of Lottery Winning SMS everyday? If you have not received such kind of SMS yet than sooner or later you will receive such kind of SMS. In fact, every day hundreds of thousands of people receive such kind of lottery SMS.

Now, what if you contact these people via e-mail? Well, in that case they will ask you for your personal information and the payment option. They will give you 2 options, one is wire transfer and the other is diplomatic courier of your winning amount in your country.

In any case, they will ask you for anywhere between $ 500-1000 for delivery charge and Insurance charge of your winning amount. And if you pay this amount to them, they will fly away with your money.

Lots of people have lost thousands of dollars behind such kind of lottery scams. Right now UK Lottery Scam SMS is the most favourite scam among the scammers. And even if you don’t pay money to these people there is a threat of Identity theft.

What many people do is, they send their personal information first and think that if the scammer will ask for money they will not pay any money. But you don’t know that the personal information that you give to these people is also in danger. Because they can sell this Information to other people for illegal use such as Fake ID Cards or fake documents.

So Don’t give your Personal Information or any kind of money to anybody who claim that you have won the lottery and if you have already given these things, you have probably lost it.

Financial Awareness is the only key to protect yourself against such kind of modern frauds.

To be very frank,

Reputed Companies like Shell, Google, Microsoft or Coca-Cola never do lottery Business. They have disclosed on their authority websites that they are never in the lottery business and never will be. This is the scammers are using their brands to cheat people at mass level.

Many people ask me this question before going for medical study. This is because I myself is a doctor and I joined Medical School in the year 2000. And today it is almost a decade so I have all the clear cut idea about the medical field.

Well, according to me, if you want to become a doctor only for money than it is not a good idea. Well, I am not saying this because I want to tell you that medical is a noble profession and you should respect it and you should not think about money while treating your patients and Blah…Blah…Blah…!!!!

I am saying you this as a perspective of Entrepreneur & Investor. If you only want to make money in your life, I mean getting rich is the one and only goal of your life than it is not really a worth to become a doctor for the money.

You will than ask me that, than what about those cardiologists and Neuro Surgeons who are making literally half a million dollars every year? Isn’t it worth for Money?

Well, Not really. This is because if you go into this field than first of all you will have to spend a decade for taking education. Probably more than a decade. And on the top of this, educational expenses and Educational loans. And during the same time, you could have grown any business in any industry.

Do You know that, many Internet Entrepreneurs around the world are retired in their early thirties. This is the age when a doctor starts earning. And if they are not retired than by doing their Internet Businesses, they are making literally 6 figure income every year.

This is true about any business (Online or Offline). Now, the best part about the Business Income is that, it is passive in nature. This means that you have to work hard at once only to develop that passive income stream. While as a doctor, you will have to work hard for the whole of your life to make money and if you stop working, you will stop making money.

Now, this is not the case of a Business Owner or an Investor. So becoming a doctor only for money is not a good deal. Because in the same amount of time, money and energy, you could have developed a successful Business empire and retired in your early thirties and even if not retired than you could have made millions of dollars.

So Think 100 times before going to medical school only for the money.

Asav,
I do not know how I chanced upon this blog of yours.
You have a good basic idea on how to become wealthy in this Information Age.
What technical knowledge should one acquire to grow web traffic and advertising income from their website?

Recently I receive this query. Well, If you surf the Internet than you will find lots of techniques to grow the web traffic of your website business. But the sad truth is that, not the all of those methods are practically possible to imply.

So let me tell you here that, How I Focus on my Blog to grow it’s web traffic and advertisement revenue ? Here are the things that I Personally do to grow the web traffic & Advertising Income of this Blog.

Well, see. Search Engine Rankings & Link Popularity (Page Rank)are the 2 main things behind attracting more web traffic. Search Engine Ranking means on which page of the search results your website page is indexed. If your article is on the first page of the search engine rankings than it will bring more web traffic. It’s that much simple.

SEO (Search Engine Optimization) = Keyword Analysis + Link Popularity

01) Keyword Analysis

Google Keyword Tool External

This is the single most important tool behind the success of this blog. I work on this tool daily sometimes for several hours to find out the lists of keywords. Now, keywords are the words that people around the world have actually typed in the Google Search Box.

Well, see. The success of any business is, you provide the product, service or content that the customer (Readers) are really searching for and not the things that you feel that they are important for the people. And by analyzing keywords, you can easily get the idea that what the people around the world are looking in your Niche.

I have a personal notebook and every time when I found good keywords, I note them down in my notebook for future articles. Once you have a list of keywords, you have to do just 2 things.

One is, that keyword should be in the title of your article and the second thing they should be in articles body. Please avoid over crowding of the keywords.

This is the 90% work that anyone has to do if they want to become successful online. This really works. Now, there are several paid keyword tools that are available on the Internet but none of them is as effective as Google’s Free keyword tool external. So don’t spend money behind commercially available keyword tools. Use this best free keyword tool from google. After all, Google knows better about it’s own search engine than anyone else.

02) Link Popularity (Google Page Rank) -

Another important thing is the link popularity of your website. This will help in 2 ways. One is your pages will be ranked high in the search engines and the second is that, the higher the page rank, the higher quality your advertisers thus more money per every click.

Link popularity means how many other web pages on the Internet are linking to your website. This is very important because google considers every link that your website receives as 1 vote. And yeah… Google also counts the quality of each vote.

Isn’t it amazing? Don’t you think that we should apply this model for selecting our political leaders? I am talking about counting the quality of each vote…!!!!

You can increase the link popularity of your website by following things.

- Articles Submissions on reputed articles directory. I personally submit unique articles on Ezine Articles, Squidoo, HubPages, Knol (Google) & WetPaint. Each article you submit will have a link of your website. This will count by Google

- Comments on other blogs (Don’t do over spamming)

- Actively participating in the Forums

- Giving an Interview on other websites (This will contain your link)

- Posting Guest Articles on other websites

All of the above simple things will increase the link popularity of your website several folds over the time and thus the web traffic.

I Personally focus on all of the above things because they are simple and practical to do. However, the web is full of garbage. You can try anything out of that. But everything revolves around the above two basic things, Keyword Analysis & Link Popularity. And combinely this is known as SEO (Search Engine Optimization).

Domain Capital: Loan Against Domain Names

Domain names are the real estate of the Internet. Without Domain Names, you can not do your web business. And of course, Domain Names are limited. Some Generic name domain names are worth of millions of dollars such as Loan.com, Car.com, Fund.com, Investment.com…etc…

2-character and 3 character domain names are also valuable assets. Many Investors from all around the world are investing in the Domain Names. Now, you will ask me that, If Domain Names are the real estate of the Internet than Why can’t we get a loan on them? Because in the real world, we can get a mortgage loan against our home or real estate.

Well, You can now take a loan against Domain Names. Go to DomainCapital.com and you will know in great detail that how you can borrow money against Internet’s valuable Real Asset – Domain Names.

Domain Capital is just like a housing mortgage company. It gives you a loan against the premium domain names. First of all it will do a fair valuation of your portfolio of domain names or a premium domain name and later on it will give you a loan against it.

You can use your Domain Name Portfolio to borrow money and than expand your Business and once your Business is established, you can repay your loan ang get back your domain portfolio.

It’s just like borrowing money against your home or a piece of real estate.

Domain Capital is a Domain Financing Company. It’s the entirely new concept. And if this concept will work, Believe me, in the next generation a school going kid will also invest in the real estate of the Internet and make much mrore money than a pre-retirement age group (50-55) of people.

The main advantage of Domain Names investing is that, they are digital so they are virtual. So it remains in the servers of the domain company. Thus, they are protected and nobody ever knows that you are the owner of the valuable virtual property.

How to Increase Your Net Worth in Facebook Be a Tycoon Game?

I am a great fan of Facebook Applications. And when it comes to games on Investing & Entrepreneurship, I play them a lot. One such FB application is “Be a Tycoon” Game.

I love to play this game a lot. This is because it is about Investing. You can buy and sell various businesses among several industries and increase net worth. You can also trade in rare items. In fact, there are many ways to increase your net worth in this game.

But my favourite way to increase the net worth is by buying “VIP Items”. Actually VIP Items are the Cashflow Assets. Means they provide you a steady cashflow as long as you hold them.

And these are my favourite businesses. Because I have to do all the hard work at once to acquire those VIP Businesses and once I acquire these Businesses, they continue making money for me and increasing my net worth over the time automatically.

Right now I own 17 VIP Items. Which collectively generate $ 3.8 Billion of Cashflow for me daily. And that is $ 115 Billion per month…!!!!

Isn’t it amazing? Of course, acquiring VIP Items is not easy. You need shareholders to unlock them. But working behind acquiring VIP Items is worth.

The game of money in the real life is also the same. Rich people work hard and use their resources time, energy and money to acquire cashflow assets which give them a cashflow forever. Rich Don’t depend on Capital Gains Income.

Most of the people struggle financially because they invest for capital gains (Stocks, Mutual Funds) while rich Invest for Cashflow (Businesses, Rental Properties) and that;s why they can enjoy their life…!!!

How to Make Fortune on eBay?

Do You know that you can now make your fortune on eBay also? Well, yes this is true. Most of the people think that eBay is the online place for shopping. But it is not true. eBay is the online place for buying and selling goods.

You can open your own eBay account and start selling anything to whole of this world. In fact, many people around this world are doing this and making literally 6 figure income in dollars every year from eBay.

You can set up your own eBay store within few minutes and start selling anything to whole of this world. The key of success on eBay like any other Online Business is web traffic. Once you set up your eBay store, you can do several things to drive the web traffic towards your website.

Remember, the more eyeballs (web traffic) will see your products, the more sales you will generate and thus more money you will make.

Many people are earning their living on the eBay.

The best thing I like about eBay Business is that, it’s one time hard work. Once your eBay store will develop a sufficient level of brand value and reputition among the customers, it will continue making sales for you for the rest of your life even while you sleep.

Another great thing about eBay Business is that, you can start ot from your home as a school going kid also. Because of the Information age & the Internet, it is now possible to make fortunes even if you are a school going kid.

I advise the youngsters to grab this great business opportunity and start building your own fortune online.

How to Invest at a Young Age?

It is advisable to start investing as much early as possible in your life means Now. If you start investing at a young age, than the compound interest will work more in favour of you and make you more richer than every one else.

Now, the question is that How you can Invest at a young age? Which are the possible assets in which you can Invest at a Young age? Well, Here are the Assets in which you can invest even if you are a teenager.

- Stocks
- Bonds
- Gold
- Mutual Funds

- Domain Names
- Blogs
- Web Properties
- Collectible Items (Stamps, Coins, Vintage Toys, Vintage Coke, Knifes, sketches, paintings, butterfly)

To invest in the first 4 financial assets, you will require a joint account with your parents or guardians. After that you can invest on behalf of them. But it is observed that sometimes parents don’t agree with this idea.

I remember that when I was a high school going kid and I told my dad to open a Demat account for me in his name jointly, he refused me and told me that, I should study hard because Investment is for adults.

Now, if your situation is also like me than go for the next 4 assets. Yes, the Online Assets. The main advantage of owning an Online Asset is that, nobody will ever know that you have invested your money in digital assets such as domain names, websites and blogs.

You can buy Domain Names from GoDaddy.com for as low as $ 10 per year and you can buy a blog or website starting from just $ 200 from Flippa.com & SitePoint.com

You can also invest in Collectible Items. Yes, they are the Assets. Your parents will think that you are doing it for hobby. But in reality, you are building your own Investment portfolio that later on you can sell on eBay to the new buyer for huge profits.

So the above are the few innovative ways to invest at the young age. So What are you waiting for? Start Investing right now…!!!

How to Earn 10 Crore?

There are several ways to make 10 Crore Rupees and that is US $ 2 Million. I will categorize 4 broad ways of making 10 crore. Here are those 4 ways.

01) Employement (Getting a Job) –

The first way of making 10 crores is by earning it. I mean by getting a job, working hard and earning this much amount of money. Of course, you will need to do some higher management level of job at large corporation to earn this much money.

And the second problem is that, every time you earn money via salary, you will have to pay big tax to the government. This will slow down your rate of making money.

02) Self-Employment (Profession) –

The second way of making 10 crore is by doing a profession such as Doctors, Lawyers, Chartered Accountants, Corporate Lawyers and othe professions. Here also you will become a high income group of people and you will have to pay more in taxes which slows down your speed.

03) Business-Owner –

You can make 10 crore by doing a Business also. You work hard to develop a Business from scratch and once your Business will grow, you can easily make this much amount of money. The main advantage of making money by this method is that, you can save your business profit from tax by constantly re-investing it in the growth of business so you can become rich faster than the first two way.

Another advantage of this way is that, even if your business doesn’t make crores of money every year, you can still sell your profitable business for 10 crore in future and cash out your years of hard work.

04) Investor –

Here your money works for you. Means here you make 10 crore by doing investments in stocks, bonds, businesses, gold, real estate or any other asset. Making 10 crore by this method is relatively faster way than any other way. Because here you are making money as a Capital Gains so you have to pay zero tax and thus you can make money faster.

Thus, the above are the possible ways to earn 10 crore. Now, just decide that by which way you want to make 10 crore. My favourite way of making 10 crore is the third way means by developing a successful business and later on selling it. What is yours?...!!!

Do Rich People Buy Life Insurance?

I receive such kind of queries several times. This is because most of the people think that Rich people are rich and they have lots of money in their bank accounts and that’s why they don’t need to buy any Life Insurance, Car Insurance, Medi claims or any other kind of Insurance products.

But well, This is a false belief. In fact, Rich People always buy a Life Insurance. Because in case of uneventful loss of life, their assets become protected from liquidating. Rich people are very smart and they are smart enough that they can control and protect their wealth even after their death.

The reason why Rich people buy a Life Insurance is because even if they loss their life, their offsprings become richer than them by claiming their life insurance policy. Isn’t it amazing?

This is a vision. It’s a long term vision. So if you want to become rich than think about protecting your wealth, Think about buying a Life Insurance.

How to Become a Teenage Billionaire?

First of all Is it Possible to become a Billionaire in your teen age and if yes than how? Well, of course, it is possible to become a teenage billionaire. There are 2 ways to become a teenage billionaire.

01) By receiving a large Inheritance &
02) By Developing a Successful Internet Business & Taking it to public.

There is third way also of becoming rich as a teen age and that is Lottery Winning but I will not discuss about this way because as a teenager you are not allowed to play in lottery.

Now, the first way of becoming a teenage billionaire is that, you receive a billion dollar fortune at this much young age via inheritance from your parents or guardians. But the possibility of becoming a billionaire like this is very rare. And you don’t have to do anything to become a billionaire like this way.

Now, the second way of becoming a teenage billionaire is that, You develop specifically an Internet Business and later on take that Business to the Public. This is the only way of becoming a billionaire at the fastest way. Take the Example of Mark Zuckerberg, the founder of Facebook.com. He bacame a youngest billionaire (Self-made) in 2008 at the age of 23 years only. And he started his Business (Facebook) at the age of 14.

So I think the only realistic and possible way of becoming a billionaire is you develop a successful Internet Business and later on take that Business to the public. It is only the Internet Business which can make you a Rich Billionaire Kid at this much early age.

Compound Interest Products

The Compound Interest is the greatest force in the Universe according to Albert Einstein. Compound interest is everywhere and it’s like a double edged sword. Means when it works in favour of you (When you Invest your Money), it can make you rich and ultra-rich but when it works against you (When you Borrow Money), it can make you poor or even bankrupt.

Many people ask me that, Which are the various Compound Interest Products available in the Financial Market?

Well, Let me tell you the fact about the compound interest. The Compound Interest is every where. In fact, The Simple Interest is a theoretical concept only. In the real life, only compound interest exists.

So No matter which Financial product you buy, The Compound Interest is everywhere in all kind of financial products so don’t worry and buy any of the financial product. The compound interest will work for you.

Compound Interest is in Stocks, Bonds, Gold, Real Estate, Mutual Funds, ULIPs Savings Accounts, Pension Plans, Businesses, Art, Rare Items, Coins, Stamps, Vintage Cars, Internet Businesses, Online Assets, Blogs, Forums, Websites, Credit Cards, Car Loans, Personal Loans, Mortgages, Intellectual Properties and anything else in the world which is Asset.

So whatever you chose, the compound interest is there. You can not separate the compound interest from any of the above products. It is the in build element in anything that is related to money. So from now onwards, don’t try to find compound interest products in the market because it is everywhere.

Just focus your mind and efforts in buying valuable assets. That’s it. And the compound interest will start working for you…!!!

Business For High School Kids

Are you a High School going Kid? Do you know that you can start your own Business right now? No need to grow up to your 30s to start your own Business. This is because the Industrial age is over and the Information age started after 1990.

And in the Information age, a School going kid can also make more money than a Doctor. Well, I am talking about starting your own Internet Business.

Yes, You can build your own Internet Empire as a school going kid also. There are several varieties of Internet Businesses that you can start such as Blogs, Forums, Social Networks, Gaming Websites, Articles Directories, Dating Websites, eBay store, e-Commerce websites and many more…

The advantage of starting an Internet Business is that, from the day first you are expanded worldwide. In case of Traditional Brick and mortar Business, you are not expanded from the first day you start your own Business. While in case of the Internet, from the first day anyone in the world can access your products and services online.

There is a huge potential in the Online Businesses. And the entry brrier is very low. Means you don’t need to take lots of legal permissions from the government to start your own Internet Business.

You don’t require to buy or lease any commercial real estate space to start your own Business in the Information age. You just require a virtual real estate of the Internet – Domain Name and you can start your own Internet Business right away.

This Blog is my Internet Business and you can start your own Internet Business right away. I am not saying that, it’s a getting rich overnight money making opportunity. Just like any other Business, you will have to work hard behind your web business also. But it’s worth it.

The key is to start early. You can not enter into a traditional offline businesses as a high school going kid. You can not buy a Franchisee Business at the teen age when you are just a high school going kid. But you ca n start your own Internet Business even as a teen age.

In fact, many teens from all around the world are making literally 6 figure income in dollars every year from their Internet Businesses and they are travelling the world with their own money during their Summer Vacation. And their classmates are struggling hard in the school to get good grades and they will have to wait 10-15 more years to train themselves in college to make money by getting a job and enjoy their lives.

How Much To Spend on Car?

Many people don’t know that how much money to spend for buying a car? Well, wealthy people are those who spend less than 1% of their total wealth behind buying a car. This might sound crazy to you but this is true. Wealthy people never spend more than 1% of their Total wealth behind buying a car and that’s why they are wealthy.

Say for Example, if someone’s net worth is $ 4,00,000 than he should not spend more than $ 4,000 behind buying a car. Now, you will ask that, How can anyone buy a car for just $ 4,000? Well, if you can’t buy a new one than buy a 5 years old car from your money.

Now, you will say that But Most of the people are not doing this. Well, and that’s why they are not rich.

Now, you will ask that, what about those luxurious cars which everybody of us is watching in our city? Well, the owners of those cars are just the high income but low accumulator of wealth. They just look like rich and cool but in reality they are not rich.

And those who are really rich have their net worth so much high that the luxurious car they are using is just 1% of their total net worth.

Most of the High Income people buy a car that is worth of as high as 40% of their Total Net Worth. They compromise with their wealth to buy a luxurious car. And that’s why they struggle financially for the whole of their life.

Now, tell me that, How much your car worth of in comparison to your wealth?

Business Idea for 1 Crore

I receive such kind of queries via e-mail every month. In fact, where ever I go, people ask me this question. Which are the various Business Ideas for a 1 Crore of Capital?

Well, according to me, you can start almost any kind of Business in any Industry with this much amount of Capital. If I give you my Example, Than I have started “My Journey To Billionaire Club” without investing a single rupee and still it’s a successful Business today.

Which Business you can start with 1 crore capital is a very vague question. Because I can write a book on this. But in very short and simple way, You should start a Business about which you are Passionate about.

Passion & Persistence are the 2 key elements of successful Business.So first of all find out your Passion. Ask yourself that, which is the thing that you like to do the most for the rest of your life even without you don’t get paid? And develop a Business around your that Passion and believe me, you will never fail.

Let me give you my example, My Passion is to teach people about Money, Finance, Investing & Entrepreneurship. I Love to talk all the day about money even if I don’t get paid for that…!!!!

And the result is in front of you. This Blog. This Blog Business developed as a result of my Passion of teaching people about Money & Personal Finance. I could have never develop such kind of Blog if I was not passionate about What I do.

Why most of the start-up Businesses fail? Well, because the founders have started that business not because they are passionate about that business but because that Industry was hot and everybody else was making money that’s why they started their Business.

But without Passion, they fail to persist and thus their start-up business failed even without making any money. So Find out your Passion and invest 1 crore of capital behind developing a Business around your Passion. You will never fail…!!!

Billionaires Ideas

Here are just the few Billionaire ideas.

1. Ferrero Chocolate by Michele Ferrero & Family, $10 Billion – Turned this delicious food into a multi millionaire business.

2. Hughes’ Public Storage by Brad Hughes, $5.3 Billion – “Put a bunch of lockers off a highway somewhere. Sell to the masses.”

3. Polo by Ralph Lauren , $5 Billion – Just by adding a small icon to a polo shirt, this man achieved “The American Dream”

4. Amazon.com by Jeff Bezos, $4.4 Billion – An example that selling books trough the Internet was an excellent business.

5. Beanie Babies by Ty Warner, $4.5 Billion – He created tiny bean bags with the shape of animals and sold them as collectibles.

6. Red Bull by Chaleo Yoovidhya & Dietrich Mateschitz, $3.1 and $3 Billion – These men combined a caffeinated beverage with a carbonated solution with B vitamin and Voila! Energy for all.

7. Geox by Mario Moretti Polegato, $3 Billion – He made tiny holes in the sole of a shoe to release sweat.

8. Dyson Vacuums by James Dyson, $1.6 Billion – Invented a device to suck dirt off the floor

9. Gummi Bears by Hans & Paul Riegel, $1.5 Billion – Sweet bear-shaped candies, who would imagine?

10. Starbucks by Howard Schultz , $1.1 Billion – His idea was to put a coffee shop in every corner of the U.S

Now you will think of starting any one or more of the above Businesses right? Because they have turned into a Billion Dollar Businesses right? Have you ever noticed that all of the above business ideas are not innovative they are just simple business ideas that later on turned into a Billion dollar business ideas right?

What I want to tell you is that, any business idea can become a billion dollar business idea. But the only requirement is that, you have to think big. Say for Example, Starbucks. The goal of Starbucks was to put a coffee shop in every corner of the US which is wild thinking.

Amazon.com, the founder decided to sell things online to whole of this world via his online site. Polo – Ralph Lauren decided to develop a brand that everyone in this world wants to wear.

All of these shows a wild imagination. You have to think big and wild. Otherwise you can not develop a Billion dollar Business. A Billion Dollar business idea is not something extra ordinary creative but it’s extra ordinary big and wild in imagination.

25 Lakhs Investment Business

I receive such kind of queries several times. Such as Business idea for 25 lakhs of Investments or What is my suggestion about starting a Business with 25 lakhs and many other kinds of queries like that.

Well, Honestly speaking I advise you to go for a Business about which you are Passionate about. I mean find out a thing that you like to do for the rest of your life even without you are getting paid and develop a business around it. This is because Persistence is very important behind success of any Business.

What Most of the people do is, they search for hot industries according to the current trends and start some hot Business in that industry. But they fail to realize that, they have started their Business because of making money only. They are not at all passionate about what they do and thus they will not remain persistent during the down time.

One of my friend wants to start his own restaurant. He decided to enter into food business not because he love this Business but only because he is seeing everyone else in this Industry making money.

And today 2 years have been passed but he has not implemented his plan of starting a restaurant business yet. This is because the main motivation force (Passion) behind starting a Business is lacking.

Bill Gates (Microsoft), Dhirubhai Ambani (Reliance), Larry Page (Google) have developed a successful Business because they find out their passion and developed a Business around their Passion. And that’s why they are successful Today.

Frugal American Millionaires

Let us today talk about American Millionaires. 3.5 Million households are millionaires in America among 100 Million Households. That means only 3.5 % people are wealthy. The main reason why these people are millionaires is because they are frugal. Means they live well below their means and they spend less than they earn.

These millionaires have never adopted the amrican hyperconsumer life style and that’s why they are millionaires. Because of their frugal life style, they have more money left at the end of month for savings and investing.

Here are the top 5 ancestry groups of american millionaires.

01) Russian
02) Scottish
03) Hungarian
04) English
05) Dutch

Out of them, Scottish people are most frugal american millionaires. On an average, Scottish annual household Income is less than $ 1,00,000 but still they are the second wealthiest people population wise. All credit goes to their frugality.

Scottish people never spend much money behind automobile vehicles. They prefer to drive second hand vehicle to save money. And on the top of this, their Adult children are financially independent.

And that’s why their adult childern don’t drain their wealth to live. While the adult children of most of the high income group of people are not financially independent and that’s why they drain the significant amount of their parents’ wealth to live on.

While american millionaires know the importance of financial education and that’s why they teach their children since their childhood that how to become financially independent and thus their adult children do not require any financial help from their parents.

eBay Fortune

eBay Fortune is a course on how you can make millions of dolars on eBay. The program is designed by Tom Barner who made literally $ 8.5 Million from eBay since 1997 to 2007.

eBay is the great market place for buying and selling anything. There are 200+ Million unique users of eBay who visit eBay every month to find discounted things. Thus, eBay is a great business and money making opportunity on the Internet.

You require no college or higher educational degrees to make fortune on the eBay. This shows that how fast you can become rich in the information age if you want. Many people are running their successful eBay business empire from their home and making literally 6 figure income every year from their eBay Business.

Here are few Key facts about eBay.

eBay has over 200 million registered users (and this number grows at an astonishing pace - several thousand new users join eBay every single day!)
- Over 2 million people visit eBay every day scouring for items to purchase
- If the sellers on eBay are considered their employees, then eBay is the largest employer in the world!
- eBay is the fastest growing business ever in the history of American and international businesses.
- eBay is the world's largest internet commerce
- If eBay is considered a nation, it would be the 9th most populous country in the world
- Half of all internet users visit eBay at least once every month!
- eBay is one of the world's greatest contributing factors to the boost of the global economy
- Over 2.1 billion items will be listed for sale on eBay this year
- Over 400 billion dollars have been spent on eBay by customers since the marketplace’s creation
- Over $100,000 worth of sales are made on eBay every single minute! That’s over 50 billion dollars people spend on eBay every year!
- eBay has achieved financial success far grander than any other businesses in history in the quickest time
- The eBay potential is stronger today than it has ever been!
- eBay has changed the lives of countless people who sell on it, and it will for you too under the guidance of one of the auction marketplace's most illustrious Powersellers!

Thus, in the eBay fortune, Tom has revealed all of his secrets about how he made his own eBay Fortune…!!!

Business Assets in Recession

During the time of recession the price of everything goes down. And thus the price of assets. Assets required for businesses go down in price. It’s like SALE in the market and all the valuable assets are selling at 50% discount price.

What most of the people will do is, they will run away from the market or sell their existing assets. But for the Businesses, it’s time to buy new assets. For Businesses, it’s time to grow their Asset base several folds.

During the year 2008-09, Most of the Businesses had acquired the beaten down stocks of other profitable businesses and in this way, they increased their holdings on the most profitable Businesses in the world.

Not only this but the businesses had also increased their own assets during the time of recession because everything was cheap in the market. Business owners know since years that, even if the price of assets go down, their value will still remain the same.

For any business, Assets are very important. Without assets, you can not do any business. If you want to grow your business, first of all grow it’s asset base. The larger the asset size, the larger will be your business.

Take the example of this Blog. This Blog is my Internet Business and the Blog Archive of this blog is it’s asset. Right now when I am writing this article, the size of this blog’s archive is 2500+ articles and it is making $ 100+ every month for me.

Now, I can not expect to make millions of dollars from this blog unless I increase the size of it’s blog archive to more than a million articles.Thus, the more the asset size of your Business, the more will be it’s revenue.

Budgeting Exercises: The Must need exercises for your Children

Accounting and Budgeting are the 2 most important subjects for managing your money. Managing money is more important than earning money. But unfortunately, Budgeting is so much boring subject that it is very difficult to learn and motivate your kids to learn it.

There are several things available in the market such as spread sheets, budget worksheets, fixed and variable expense sheets, softwares and many other things. But buying these things, taking them home and learning from it is very boring task.

So the question is that, How to teach Budgeting to your School going Kids?

Well, instead of giving them budget worksheets, why don’t give them the real time exercise? In the summer vacation, give them the budgeting exercise that they have to plan the complete household budget including vacations, weekends and entertainment.

Honestly tell them that what is your household monthly income and which are the various Fixed expenses while which are the variable expenses.

And let them decide by themselvses that how to budget. And yes, tell them that after deducting all the expenses, there should be left something behind for long term Investing also.

If you give them ready made budgeting worksheets available in the market than they won’t use their mind. The main purpose behind budgeting is to use your mind. If all the fixed and variable expenses are in front of their eyes than they won’t think much. But if you give them the exercise like this than they will be forced to use their brains.

Thsus, give your children budgeting exercise this summer vacation.Believe me, your children will never forget this valuable lesson in their life and you will be rewarded by Adult financially independent children in the future.

Blogger Investing

Do you know that you can invest in blogs? Yes, Blogs and websites are the real estate of the Internet and investors invest in it for higher capital gains. Many Investors around the world build and maintain the portfolio of profitable blogs from various Niches.

This is because blogs are the online assets and they appreciate much faster than any other asset class in the world. When you are investing an blogs, you are not investing in some virtual space only but you are investing in the Internet Business.

Every blog has a community of readers around it. You will than ask that, where to buy blogs? Well, there are few market places on the internet where you can find blogs and websites for sale. Flippa.com and SitePoint.com are the two reputed marketplaces on the Internet where you can find profitable blogs for investments.

The Blog deal starts from $ 100 and goes as high as $ 50,000 or even 1,00,000, Average sized blogs will be available for $ 500-2000 per blog. While some giant blogs are listed for as high as 6 figure.

There are various parameters for valuation of a blog. This is the Information age and in the Information age, youngsters are now preferring web properties than any other asset class for investments.

This is because people who have born after 1990 have seen the world through the eyes of Internet and that’s why they have started building their businesses and Investments on the Internet. In the future generation, everyone will have Investments in the web properties.

Becoming a Doctor at age 30

Is Becoming a doctor at age 30 worth for Money? I mean Is it a Financially sound decision to become a doctor at the age of 30?

Well, according to me becoming a doctor at age 30 is a good thing but financially it is not a sound decision. Because during the same time period, your Businesses and Investments could have been grown in such a manner that you could retire at the age of 30 if you have started at the age of 30.

Medical study is too long and educational fees are so high. So either you will wipe out all the wealth of your parents to take this education or you will take a huge educational loans that you will repay until you become 40. So nothing will left behind for long term investing.

And on the top of this High Status life style of doctors. Which is number one killer of the wealth. So all of these factors goes against becoming a doctor.

Of course, becoming a doctor at age 30 means you will push up into high income group of people. But high income doesn’t necessarily mean the high level of wealth. High Income means higher taxes, higher spending and less savings and investing.

So you should think twice or thrice before going into medical field. Those people who started their Internet Business at the age of 20 years became multi-millionaires at the age of 30 and retired in their early thirties while those who chose to go for medical field are still stuydying hard in the field and they are in the deep educational loan debts.

Sweat Equity Shares

You must have heard the word ‘Sweat Equity Shares”. Now, let us discuss that what it means by sweat equity shares and why it is useful?

Well, in simple words Sweat equity means during the startup phase of the company founders and key employees work hard to develop a Business. And during the initial period of the company, when the company is not in any profit or positive cashflow, it is impossible to give high salaries to its founders and employees for their hours and hours of mind and physical labour work.

So instead of giving salaries and bonus money, the founders issue the shares of the copany to themselves and the employees during initial period. This is known as Sweat Equity. Means you are not getting money here but you are receiving shares instead.

In India, the concept of SWEAT EQUITY SHARES was started by Infosys.Sweat Equity Shares are given to the employees at a discounted rate of market value.The whole idea behind giving Sweat Equity is to make the employee feel that he/she is a part owner in the company.When employees feel their company has their own funds invested in it, they get better motivated and work more earnestly towards company's progress.

Sweat equity shares are the ones given to the employees / people who have been largely involved in building the company from scratch. They do not put any money in the business, but are given the shares as a reward.

Sweat Equity are the shares that are mainly issued to the founders of the company who have developed the Business from Scratch. This is the reward of the risk and time that they have taken in developing a successful Business out of Scratch.

Scottish Frugality

Here are the Top 5 ancestry groups of american millionaires.

- Russians
- Scottish
- Hungarian
- English
- Durch

Yes, Russians are the most wealthy people in America and the second rank goes to scottish people because of Scottish Frugality. The reason why scottish people are this much wealthy is because they are several times more frugal than any other groups in USA.

The surprising thing is that, Scottish are among the wealthiest group of people even though they are not ranking even in top 5 groups of high income group of people. More than 60% scottish have annual household income of well below $ 1,00,000.

No other ancestry group has this much high level of concentration of millionaires from such a low level of average annual income.

And the reason behind this wealthy is that, because scottish people are frugal. They live in the environment of self created financial scarcity. And they live well below their means which allows them to save and invest more than the people who live high status life style.

Another reason is that, Scottish people are very frugal when it comes to buy a car or any other automobile vehicle. They don’t believe in spending behind luxurious automobiles and that’s why their wealth is preserved.

Another great observation is that, the adult children of scottish people are financially independent having good level of financial knowledge and thus unlike the children of high income group of people, they don’t drain the wealth of their parents to live. This is another main reason why scottish people are wealthy.

Most of the high status and high income group of people suffer financially because their wealth is eaten up by their financially dependent adult children while scottish don’t have this problem.

Thus, Frugality is the key of becoming wealthy.

Blog Archive & Revenue

Does Blog Archive size has anything to do with it’s revenue? Well, Yes, if your main business model is advertising (Google AdSense). If the main income stream of your blog is advertisement displaying than the size of the Blog archive matters.

This is because each article in your blog archive is like a piece of virtual real estate. The more real estate you have, the more business you will have and thus the more money you will make.

Let me give you my own example. The Example of this Blog. I have tried this thing on this blog because the main income source of this blog is the advertisement income (Google AdSense).

Last year, the size of this blog’s archive was just 250 article and at that time, this blog was generating $ 10 per month for me. But today (November 2009), the size of this blog’s archive is 2500+ articles and today this blog is generating $ 100+ every month for me. Isn’t it amazing?

This clearly shows that, the more the size of your blog archive, the more web traffic it will generate and thus more money. The articles in your blog arhcive are known as “Digital Inventory”. They are your Internet Business’s main assets.

The more the size of your Digital Inventory, the more money it will generate for you. It is as simple. So What I advise to Blog owners and other web business owners is that, focus on growing the Digital Inventory of your Internet Business.

Rather than focusing on any other things, simply focus on increasing the size of the asset of your Business. This is the only ultimate thing that you should focus if you want to become giant.

If you are a Blog owner or any other kind of Internet Business owner than it is a Billion Dollar advise that I am giving to you. Nobody will ever tell you this thing. I have learned this thing from my own experience and that’s why I grown the web traffic and revenue of this blog by 10 folds (1000%) in last 1 year only…!!!

GOLDEX: ICICI

GOLDEX is the code to buy a Demat Gold (Gold ETF) on the ICICIDirect.com website. Eventhough it is a Gold Mutual Fund, you can buy it from the stock exchanges as shares. Each unit of Gold ETF represent 1 gram of gold price.

Here are the popular codes for reputed Gold ETFs.

- Benchmark Gold ETF – GOLDEX
- Reliance Gold ETF – RELGOL
- Kotak Gold ETF – KOTGOL
- UTI Gold ETF – GOLDSHARE

You can simply go to your ICICIDirect.com account and put the order to buy gold etf NAVs just like shares. You can use the above codes. They are very simple to remember.

You can buy gold mutual fund units directly from the stock exchange just like the shares. Gold is the traditional asset class and after the financial meltdown, investors from all around the world are diverted towards this traditional asset class.

It is advisable to allocate Maximum 10% of your total portfolio into Gold. This is because the gold has negative correlation with the Equity market and the US Dollar. Gold is very effective asset class to preserve the purchasing power of your money.

Woot: One Deal a Day Website

Let us today discuss about The History of Woot.com, One Deal a Day Website. Woot is a privately owned company and founded in 2004 by its founder Matt Rutledge (Founder & CEO).

Woot.com is the Internet Business having annual revenue of $ 164 Million. This site mainly sale electronics and household goods. Matt was the electronic wholesaller in the past and he founded this company after having a great idea in his mind.

Woot’s main website offers only one product a day at very large discounted price. I mean at wholesaller’s price. It’s not like Amazon.com where everything is loaded on the website. Woot just launch one product a day at discounted price.

Other Woot sites offer one original t-shirt per day, two selections of wine per week, one children's item per day, and one closeout deal per day in cooperation with Yahoo! Shopping.

Woot Business Model:

Woot's tagline is "One Day, One Deal". Generally, Woot offers one product per day until its stock of that item is sold out or the product is replaced at midnight Central Time with the next offering. If a product sells out during its run, the next item still does not appear until midnight, except during Woot-Offs. Products are never announced beforehand. This sales model means that Woot is unable to replace defective items and encourages customers to call the manufacturer if the item is defective. This now common One deal a day business model has been implemented by hundreds of web-based retailers since Woot's launch in 2004.
Customers may buy up to three of the day's item, although occasionally the site has limited product quantity to one per customer. Woot does not reveal sales figures unless the item sells out.
Woot is the amazing Business idea. Within 5 years of launch, Woot has increased its annual revenue up to a $ 160 Million mark. Right now the company has 140 employees.

What Are the Best Assets to Buy?

Many newbies ask me this question. In fact, I receive such kind of queries every week in my mail address. If you ask this question to anyone except me than most of the financial planner will tell you the two oldest things.

For the long time horizon, Equity is the best while for short to medium term, Debt is the best asset class. Another advise they will give you is that, if you are risk taker investor than equity is for you and if you are a conservative than the debt is for you.

But well, I am not at all agree with this advise. According to me, The Best Asset for you is the asset class which you understand more and work it with everyday.

Let me explain you this by examples. Let us discuss the example of Real Estate Agent. Suppose if you are a Real Estate agent than do you think that Equity is the best asset class for you? You are working on to find best real estate deals for your clients at least 10 hours a day and you know each and every fine details about the real estate market than why not Real Estate is the best asset class for you?

Let me give you another Example. One of my friend is USA is buying and selling Vintage Guitars. And he understands the market of Vintage Guitars very well. So Why can’t he invest in Vintage Guitars only because he is doing this for years and he has a sound knowledge of this market. Will you advise him to invest in equity because everyone else is doing this?

Let us discuss about Internet Entrepreneur. If someone is a Domain and Website Flipper than why can’t he invest his money to build his own Domain Names and Website Business portfolios? He spends more than 10 hours a day on the Internet and he knows everything about the real estate of the Internet (Domain Names) than why not to invest in the real estate of the Internet (Domain Names) rather than the real estate of the real world?

Well, see. The risk is involved in every kind of Investment. Fixed deposits are also not safe because inflation and tax erodes its value. So Why not invest in those assets that you know very well than any other assets?

Investments in the assets that you know very well give you highest return in the long run than any other asset class. So just find out that which is your suitable asset class? Find out that which is the Asset class with which you work daily since years? That asset class is the best asset class for you.

Bill Gates Birthday

Bill Gates Birthday is 28th October 1955. Thus, Bill Gates is 54 years today (2009) when I am writing this article. How many of you are in the same age group? Than How come Bill Gates is world’s richest person and you are deep in debt or still struggling financially?

Bill Gates had the same amount of time and the same number of working hours a day, week and month. And still his net worth today is well above $ 50 Billion which makes him world’s richest person for last 15 years in a raw.

Well, there are several reasons behind his success. One commonest reason is that he started early. Yes, he founded Microsoft at the age of 20 years only in 1975. And that’s why the compound interest worked on his Asset (Microsoft) for longer time than anyone else’s assets. Just tell me that how many of you have started your own business at this much early age?

Another reason for his great success is that, he did lots of mind work that most of the people don’t do. He used to give around 10 hours of mind work behind Microsoft. I am talking about mindwork and not about the physical labour work.

The labour of mind will always pay you much higher return in the long run than the physical work.

And at last, Bill Gates become world’s richest person because he created Wealth. He created Investments in which literally millions of people want to Invest. Well, yes. Bill does not only build the wealth and did Investments but he CREATED wealth and Investments in the economy by taking Microsoft Public.

Very few people in this world can do this and that’s why they become billionaires,. In 1985, Gates took his Business Microsoft Corporation to the public and sold the shares of this company to literally millions of investors from all around the world. And by becoming a selling shareholder he became a billionaire.

So I think everybody of us should take 3 lessons from Bill Gates – Start Early, Do Mind Work & Create Wealth & Investments in the economy.

Average Wealth By Age

What should be the average wealth by your Age? Let me give you the simple forumla to count your average wealth according to your age.

Well, this is dependent on your Income and age. I mean according to your income and age, we can calculate that how wealthy you should be?

Here is the formula
“Multiply your age times by your realized pretax annual income from all the sources except the inheritance. Divide this number by 10. This should be your average net worth (Wealth).”

Say for example, your annual gross income is $ 1,00,000 and your age is 40 years than your Net worth should be $ 4,00,000. If your net worth is much more than this than you are very high accumulator of wealth and if your net worth is much less than this than you are very low or under accumulator of wealth which is not a good thing.

This is the simple formula to check your financial health. If you live a high status life style and spend most of the money you earn than you cannot accumulate this level of wealth.

But if you spend less and invest more than over the time you will accumulate much more wealth than your income and age category. This simple formula will tell you immediately that weather you are wealthy or not?

Of course, during the initial years of earning, this formula doesn’t apply. But at least you will have a fair idea about where you are today and where you have to go.

Best Debt Funds India

Debt Funds are of various categories. They fall under several categories. In this article, I will summarize best Debt funds in india from all of these categories. Here is a List. I have included top 5 debt funds in india in each and every category. I have also considered Golt funds the type of debt funds.

01) Best Debt Funds India : Floating Rate – Long Term

- Birla Sun Life Floating Rate LT Ret
- HDFC Floating Rate Income LT
- Kotak Floater LT
- Templeton Floating Rate LT Ret
- HSBC Floating Rate Regular

02) Best Debt Funds India: Liquid Plus

- Fortis Money Plus Reg
- DWS Money Plus Reg
- Canara Robacco Treasury Advantage Ret
- HDFC Cash Managemet Treasury Advantage
- DBS Chola Freedom Income Short Term

03) Best Debt Funds India: Medium Term

- Canara Robeco Income
- ICICI Prodential Income
- Fortis Flexi Debt Reg
- Birla Sun Life Income Plus
- IDFC Dynamic Bond Plan A

04) Best Debt Funds India : Short Term

- JM Short Term Reg
- HDFC High Short Term
- ICICI Prodential Short Term
- Reliance Short Term

05) Best Debt Funds India: Specialty

- IDFC All Seasons Bond A
- Franklin India International
- Sundaram BNP Paribas Income Plus

06) Best Debt Funds India: Ultra-short Term

- Esorts Liquid
- Templeton India MMA
- Sahara Liquid Variable Prices
- LICMF Liquid
- HDFC Cash Management Savings

07) Gilt: Medium & Long Term

- ICICI Prudential Gilt Investment PF
- JM G-Sec Regular Plan
- ICICI Prudential Gilt Investment
- Templeton India GSF Long-term
- Canara Robeco Gilt PGS
- Escorts Gilt

08) Gilt: Short Term

- ICICI Prudential Gilt Treasury
- Magnum Gilt Short-term
- TATA GSF Short Maturity
- UTI G-Sec shirt term

Thus, the above is a complete list of the top 5 best debt funds in india in all the categories. I hope that this list will help you to chose the best mutual fund in any category. I recommend you to print out this page or save it in your desktop.

Mobile Lottery Scam

Mobile Lottery Scam is the information age sophisticated financial fraud. I have created this separate post so that you can be aware of such kind of frauds and protect your money from the fraudsters. Yes, Protecting your wealth from the fraudsters is also important and it’s the part of financial education.

How Mobile Lottery Scam Works?

Well, one day in the pretty morning you will receive SMS from some African or Euro-African or UK Based company that you win the lottery of $ 1 Million or something like this huge amount.

You will be surprised by knowing that you have never biught any lottery ticket so how can you win a lottery? Well, the explanation of this query is already in the SMS. They will tell you in the SMS that they did the lucky draw of literally millions of mobile numbers and your mobile number is selected from the few lucky winners.

Well, let me tell you here that, in this pretty morning, you are not the only person on this earth who have received such kind of SMS on his mobile. There are literally hundreds of thousands of people who are reading the same SMS.

Yes, These lottery scammers send such kind of lottery winning SMS to literally hundreds of thousands of people at a time.

Now, the scam goes onwards. They will ask you to contact their e-mail address to cliam your winning amount. And when you contact that person, that person will ask you for your personal information such as Name, Age, Sex, Birth Date, Residential Address and many other things.

BEWARE…..!!!!

Many people think that, I am not going to give them any money so what’s the problem in giving personal information? Well, if you have already given or want to give your personal information than get ready for the complication of Identity Theft.

Identity theft means somebody else in some other part of the world is using your personal information for verious purposes by using fake ID cards, fake certificates and many other things. This is extremely dangerous.

Believe me, nobody can ever do a lucky draw of your mobile number or e-mail address without your permission. It’s against the law. And yeah. Nobody else can never buy a lottery ticket without informing you. It’s a crime.

Now, what if you send your personal information? Well, you will receive the next mail. And they will ask for you the 2 ways to deliver your winning amount in your country. One is the telegraphic transfer and the other is Diplomatic Courier in your country.

No matter which method you will select, they will ask you for anywhere between $ 500-1500 for delivery charge, shipping charge, Insurance charge or any other kind of charge.

And once you pay this, they will fly away with your money. You will never receive your winning amount.

Many people have paid such kind of charges and never get anything from these people. Mobile Lottery Scammers use the names of famous brands such as Coca-cola, Shell Company, Microsoft and even Google. And because of lack of financial awareness about frauds, people become victims of such kind of scams.

If you really win a lottery prize than you don’t have to pay anything. Just think that if you are a winner of a $ 1 Million lottery than why would that lottery company ask for few hunderd bugs from you to deliver your winning amount? It’s simply impossible.

So now onwards, whenever you receive such kind of SMS, please don’t waste your time and money behind it.

Wealthy Building Secrets: Time, Energy & Money

Wealthy people allocate their time, money and energy in more efficient ways than any other people and that’s why they are wealthy. If you want to become rich and wealthy than you have to allocate your time, money and efforts in such a manner that it can create wealth for you.

Whenever I ask people that, How much time they allocate behind various wealth building acticities such as retirement planning, budgeting or investment planning, I receive the common reply. I don’t need any wealth planning because I already earn high income.

Wealthy people allocate more than 4 times time behind planning their Investments than non-wealthy people. There is a direct correlation between the time you give behind financial planning and your actual wealth.

According to several studies, people who give more time for planning wealth building end up with more wealth than those who spend less time or do not spend any time at all for planning their wealth.

Most of the people struggle financially because they never spend an hour behind planning their financial goals and investments. Now, what should you do if you want to become wealthy? Well, than start from one hour a day. Every day simply give one hour behind planning your Investments. Gradually increase these hours.

Financial planning doesn’t mean that you sit with paper and pencil in front of your TV and later on blame that, I did so but nothin happened to my wealth. You have to give time to read financial magazines, books, newspapers, books, blogs, videos and anything else that can increase your financial IQ over the time.

Thus, use these 3 wealth building tools in your favour to become rich and financially free.

Home Mortgage Selection Tips

Most of the people want to live in a high status neighbourhood. And that’s why they take a huge mortgage loan. And thus, nothing left at the end of month for the long term investing and thus, they can never become wealthy.

The Golden Tip is that,
“If you are not Wealthy today and want to become wealthy someday in your life than never purchase a home that requires a home mortgage loan that is more than twice your household’s Total Realized Annual Income”.

And if you don’t do this, you will never be able to accumulate any serious amount of wealth. Living in less costly area will help you to spend less, save more and invest more. The reason why most of the people take a huge home mortgage is because they are qualified for huge mortgage loan.

But well, you are qualified for large mortgage that doesn’t mean that you should go for it. Most of the people do this and that’s why they suffer financially in the future.

Home mortgage is very important financial decision and you should go for it wisely. Only one decision can make you wealthy or poor over the time.

It is advisable to live in less high status areas if you really want to become wealthy and later on once you become wealthy, you can anytime go for luxurious home. Becoming wealthy is more important than showing high status. Most of the people do exactly opposite and that’s why they suffer financially.

So chose your Home Mortgage wisely.

Wealth & High Status Neighbourhood

Relationship between High Status Neighbourhood & Wealth

There is a direct correlation between high status neighbourhood and your wealth. According to one study, More than half of the millionaires in America do not live in high status neighbourhood.

And this is the reason they are millionaire today. Now, if the millionaires don’t live in high status neighbourhood than who are these high status peple? Well, these are just the high income group of people. They just look cool and rich but in reality they are not wealthy at all.

They live like this because they spend most of their income behindbuying high status things. Millionaires in america have only 7% realized income in comparison to their wealth while these high status people realize more than 40% of their wealth just to enjoy high status life style.

Who are these high status people? Well, these are Doctors, Lawyers & other white collar professionals. To live high status lifestyle, they compromise with their wealth.

And this is the reason even if you are earning $ 1,50,000 every year, you are still not becoming wealthy. What you don’t know about your millionaire neighbour is that, your neighbour bought his luxurious house only after he became wealthy while you bought your house in anticipation of becoming wealthy and that day may never come.

Every year you are forced to maximize realized income only just to make ends meet. You can’t invest any money because nothing left after you spend. And you can never become really wealthy unless you do investments.

Investment Planning and Wealth Accumulation

There is a strong positive correlation between Investment Planning and Wealth Accumulation. Rich and Wealthy people spend more time behind planning their Investments in comparison to everyone else.

Many people argue that, middle class and poor does not have any money to invest and manage and that’s why they don’t give much time behind investment planning. But well, this is not true.

People who are Middle class today by Net Worth may allocate more time behind Investment planning if they are on the path of becoming rich. In short people who are rich or on the path of becoming rich allocate more time behind planning their investments than everyone else.

What most of the people do after going to home from their jobs? Well, most of the people will sit in front of their TV and become a couch potato after going to their home. They call it relaxation. They argue that, they do this because they are tired of full day work.

To those people, I want to tell you that, When I am writing this article, I have not sleep since last 36 hours because I was doing my Emergency Duty where I am studying in Kolhapur. And still I am writing this article for you people to educate you.

So Now you can understand that, What is the importance of what I am saying to you? There should be no excuses when it comes to planning your investments. You can not say later on that Today I am not wealthy because I had to attend several marriages and parites during my young life and that’s why I could not plan my Investments.

When it comes to Money, Either you can be Rich or Poor. There is no excuse for this. So Plan your Investments right now…!!!

How to Become Financially Free?

Many people ask me this question. In fact, wherever I go, people ask me this question. Everyone wants to be financially independent and free but no one wants to sacrifice.

Well, I am talking about sacrificing high consumption. People are hyperconsumers. If you want to become financially free than you have to plan and sacrifice today. If you Sacrifice today, you will become financially free tomorrow.

Each dollar you spend is first eaten up by a tax man. If you want to purchase a car worth of $ 68,000 than you have to earn $ 1,00,000. This is because tax man will eat major portion of your money first and you have to buy consumer items with rest of the money.

Rich and wealthy people (Millionaires) tend to think like this and that’s why they buy a second hand car which is 2-3 years old so that someone else has already taken a loss. Just tell me that, Is Luxurious Car more important than the Retirement Planning? Are you going to live in a car after your retirement or is your car going to give you dividends and cashflow after your retirement?

Than why not to plan your Retirement and Financial Future First? Smart people first plan for their financial future and retirement. First of all they build sufficient fund to retire and later on they go for luxurious items.

The only way of becoming Financially free is that, you start investing early. The more early you start, the more wealth you will be able to accumulate and thus more financially free you will become.

Corporate Tax advantage Stock Purchase Plan

Do You Participate in your Corporate’s Tax-advantage stock purchase plan?

I have asked this question to one of my friend working in a large American Corporation. Each year my friend could purchase the equivalent of 6% of his Income in shares of the corporation in which he is working which would reduce his realized taxable Income.

And later on he can anytime sell these stocks for huge capital gains.

My friend told me that, unfortunately he could notafford to participate in this program. And he explained me in great detail and with proud that why he could not participate in this program.
This is because all of his Income goes towards,

- $ 5,000 of monthly mortgage payment for his luxurious car
- Two Leased Luxurious Cars
- Country Club Memberships
- Dozens of Credit Cards Bills
- A Vacation Home
- A private Boat
- Weekends at Hawaii

And that’s why he does not have spare money to waste behind corporate tax advantage stock purchase plan.

Now, tell me honestly that Are you also like my friend? Do you also feel that above things are more important than building wealth? If yes than I feel very sorry for you. And I don’t want to advise you anything in this matter.

If you still think in the way my friend thinks than honestly speaking I can’t help you. In fact, nobody can help you. You have to help yourself.

My only suggestion to you is that, Have a Look at the Archive of “My Journey To Boillionaire Club”. I have posted 2500+ articles over there up to now. I hope that this much information might be helpful to open your eyes…!!!

Realized Income Versus Wealth

What is the Difference between Realized Income and Wealth?

Most of the people struggle financially because they consider their realized (Taxable) income their wealth. And that’s why most of the people around this world focus mainly on growing their Income.

Wealth is something which you accumulate and not you earn. In fact, wealth earns money for you even while you sleep. Accumulating Assets (Stocksm Bonds, Gold, Mutual Funds, Businesses..etc..) is wealth.

The problem with considering your income as your wealth is that, you have to work hard for whole the life to maintain the same level of lifestyle. While the advantage of accumulating wealth is that, one day when your wealth grows in significant size, it will generate passive income for you for which you don’t have to work hard at all.

Rich people focus on accumulating wealth while everyone else focus on increasing their income and that’s why rich are financially free and rest struggle financially and live paycheck to paycheck.

You will ask me that, than why most of the people around the world don’t know such a basic difference between income and wealth? Well, this is because our school system doesn’t teach us these things.

Our Education system is designed in such a manner that it will give you only Vocational & Professional Education but it will never give you or motivate you to take Financial Education.

And because of this lack of financial education, people struggle financially. If you want to be rich than focus on accumulating wealth and not on increasing income.

High Income: Tool to look rich and become Famous…!!

Do you know that, High Income is the tool of becoming famous and look rich? Well, This is because if you have a high income, you can take more debt and afford more luxurious cars, expensive clothes and branded watches.

Not only this but newspapers and media channels love these people and give them free popularity. This is because they live glamorous life and people love to watch glamorous life.

And yeah….Government loves these people than any other thing in the country. Do you know Why? Well, because these are the people who are highest tax payers and the main income stream of the government is Tax.

To fuel their high status life style, they have to realize more income and thus pay more in taxes and that’s why government love these people. While on the other hand wealthy people realize less income and pay less to minimal in taxes and accumulate more in wealth and that’s why government don’t like these people much.

High Income group of people are favourite fish for the government because they pay more in taxes, accumulate less wealth and keepworking in the economy for whole of their lives. They have to work more and more because they have to maintain their high status life style. They have to prove everyday to others that they are rich.

Thus, if you want to look like rich and become media famous than focus on High Income. You will become media famous one day.

But if you want to become wealthy than minimize your realized income and maximize your unrealized income. Earn more in Assets (Capital Gains, Dividends & profits in Businesses).

The Secret of Becoming Wealthy

Let us today discuss the example of 78 years old lady Mrs.Merry. Merry died just 1 year before leaving behind the wealth of $ 10 Million. She was living on her pension money. From the first earning years of her life, she started accumulating stocks in her portfolio and never sold a single stock after that.

Her wealth doubled in just last 5 years before she died. And even after her death, the federal government did not make any money on tax. Do you know why? Because she transferred her wealth to charitable organizations, colleges and churches in the form of assets.

This means that a person is owning $ 10 Million of wealth and government helplessly can’t collect a single dollar of tax from that person. Isn’t it amazing? This is because the wealth of that lady was in the form of stocks and other assets and she never sold their assets. She just bought it and keep it for years.

While what most of the stock traders do? Well, they don’t hold any stock for even a year and that’s why every time they sell stock, they have to pay tax on that transaction. And government makes money.

But the smart people are those who hold the stocks for decades and probably for the rest of their lives once they buy it. And thus, over the time these stocks appreciate very much without paying any tax on its appreciation.

Warren Buffet also buy businesses (Stocks) to keep them. He bought stocks of Cocal-cola, Bank of America & Several other lucrative Businesses in 80s and today still he owns these stocks.

American Wealthy: Own More Realize Less

According to one survey on around 3.5% USA Millionaire Households, these households account for more than half of the personal wealth. But the same people account for less than 30% of the Total American Income.

What is the logical reason behind it?

Well, this is because most of these people own some kind of business and they buy assets out of their businesses and they keep re-investing the profits of their businesses in buying more and more assets.

All of them own large volume of stocks. And they buy stocks to keep them forever. They sit on these stocks. And hold them for decades. And this is the reason they pay less in taxes and accumulate more money over the time.

They realize less in income and maximze their Capital Gains and valuations of their businesses. While most of the high income group of people realize more income and thus they have to pay more in taxes.

Rich people typically acquire more assets and keep these assets for several decades. And this is the reason they become richer and richer over the time. While people who live a high status lifestyle have to realize more income to fuel their expensive life styles and that’s why they have to pay more in taxes and thus they fail to accumulate significant amount of wealth.

Thus, the key of becoming wealthy is that, you acquire assets and hold them for years and decades. Alternatively you can create your own Asset out of scratch (Such as Business, Books, Music, Intellectual Properties…etc..) and keep that asset for years and become wealthy.

You Can’t be Wealthy if your Income is Too High

Isn’t this statement so rude? But well, This statement is 100% True. You can never be wealthy if your Income is too high. This is because the more you earn, the more you will pay in taxes and thus the less you will divert towards investing.

High Income group of people (Doctors, Lawyers & Actors) are markedly reduces their probability of becoming rich and wealthy because of their realized high income. Let us discuss this phenomena by example.

Mike paid $ 70,000 in federal tax last year on his $ 2,50,000 of annual income. This is equivivalent of almost 40% of his total wealth. While Tom also paid the same amount of federal tax ($ 70,000) last year but this tax is equivalent to just 2% of his total wealth.

Well, Yes. Tom’s Net Worth is well above $ 3.5 Million (35,00,000)…!!!!
So Why this dispariety between Mike & Tom. Well, this is because Tom realizes very less income every year in comparison to his total wealth. Most of the time he earns as unrealized income in the form of Capital Gains and appreciation in the value of his assets.

On the other hand, Mike is a professional person. So to maintain his high status life style, he has to realize more income every year and to realize more income, he has to pay more in taxes and thus he can not accumulate more wealth.

This is the scenario with most of the high income group of people. They earn a lot but still they can not accumulate enough wealth and struggle financially and sometimes living paychecks to paychecks.

So the moral is that, if you want to become wealthy than your realized Income should be less and your unrealized income should be maximum.

How Do Your Parents Spend Money?

It is very important to know about your parents’ money spending habits. Because by understanding your parents’ money spending habits, you can decide that weather to follow your parents financial plans or not?

Let me explain you the life of a typical hyper consumer parents.

Through out their marriage life they ate a lot, smoked a lot, drank a lot and shopped a lot. The household of these parents was always overloaded with food. They stock piled everything they know such as snack foods, ice creams, cold cuts, prime meats and other desserts.

Even breakfast was a feast for these people. Bacon, sausage, home fires, eggs, English muffins and Danish pastries were basics in the morning. While streaks and roasts were the dinner offerings.

Shopping and consuming were their best hobbies. They used to shop for fun and not necessity. Almost every Saturday they would shop from the early morning until mid-afternoon.

First they shopped for food. Than they spent countless hours shopping it discount was stores. The couple had a strong proclivity for purchasing large quantities of rugs, malted milk balls, towels of every colour and style, casual shoes, wooden bowls and many other things.

In most cases, these items were rarely if ever used.

In fact, these people live like cool and rich but in reality they are high income but low wealth accumulator people. If you count their net worth, it will be very less or even negative. What I don’t like about these parents is that, they proudly teach these kind of bad consumer habits to their children.

So What I advise to Kids is that, if your parents are living like this than simply don’t follow their Financial advises at all. This is because you can not become wealthy by spending more. But you can be wealthy by accumulating more Assets.

Income Tax: The Biggest Expense

Which is the biggest expense any anyone’s life? Well, it’s not the food, clothes, education or anything else. But it’s the Tax. Income Tax – The tax on income.

Income tax is the single largest annual expense for many households. There is no tax on appreciation of wealth. Of course there is a wealth tax. But there are ways to avoid it. Say for Example wealth tax on gold. Now if you buy a paper gold (Gold ETF) than it’s the financial (Paper) Asset so you don’t have to pay any tax on keeping a paper gold.

And on the top of that, there is no tax on the unrealized capital gains of your assets. And for the rich, most of the time of their life, this profit remains “On Paper” only and thus they pay very less in taxes and sometimes NIL in taxes.

High Income group of people suffer the most because of the Income tax. Because all of their income is realized income. And they struggle hard to increase their income rather than growing their assets.

Most of the high income group of people mainly focus on their Income. While Rich people focus on their Assets. And that’s why Rich pay very less in taxes while high income group of people pay highest in taxes.

Most of the wealth of rich people never realize any kind of Income and even if it realize the Income {Business Income), it keeps re-investing inside the Asset (Business) and increase the valuation of their assets several folds.

Private Wealth in America

Few years back, a private study was done in USA on the private wealth of Americans. At that time, the Value of total private wealth was approximately $ 22 Trillion. And Millionaires own approximately half of this wealth means around $ 11 Trillion.

The Total personal income for the same period was estimated to be about $ 2.6 Trillion. Millionaires account for only about 30% of the Total Income or $ 0.78 Trillion. This means that millionaires as a group realize the equivalent of just 7% of their total wealth every year.

How Smart the Rich (Millionaires) Are?

They know since years that, how to maximize unrealized income and pay little or avoid taxes. The key of avoid taxes is that, you earn in Capital Gains & Valuations of Assets.

If you also want to win the game of money than you must have to play this game like rich. I mean you must have to make money in valuations and capital gains just like rich. Than and only you will be able to avoid taxes and build significant wealth.

Rich people buy and hold any assets typically for several decades. And thus, over the time they become extremely wealthy. All of those years they make money as a capital gains only which remains “On Paper” gain as unrealized income only. And that’s why they don’t have to pay any tax for this unrealized income.

The key of avoiding tax is that, you acquire some asset and hold that asset for years. This is the surest way of becoming wealthy over the time.

Wealth Building Secret Revealed

What is the biggest secret of wealth building? Well, the biggest secret of wealth building is that, you minimize or avoid your biggest expense – Tax.

Remember, “To Become Wealthy, you need to minimize your realized Income (Taxable) and Maximize your unrealized (Non-Taxable) Income.”

This is the golden secret of wealth building. Well, I am talking about increasing Capital Gains Income. I am talking about making money in valuations. Wealthy people make money in Capital Gains and Valuations. After all, Money is the game of valuations.

What Smart Business owners & Investors do is, they keep re-investing their profits in their own Businesses. This helps them in two ways. One is Business expenses are tax deductible and the other advantage is that, if you keep re-investing your money in your own Business than it will increase the valuation (Capital Appreciation) of your Business and this Capital Gain is Tax Free.

Thus, Rich people always try to maximize their unrealized income while everyone else try to maximize their realized income to fuel their high status life style. Money is a game of Valuations. The Valuations of your Assets. The more valuable asset you own, the more rich you will become.

And the advantage of valuations is that, any increase in valuation is totally tax free. Thus, it is a smart idea to earn in valuations. And you can only earn in valuations by investing your money.

There is no other way of save your money from tax. Tax is a major money killer which hurts your money a lot if you don’t properly plan to manage it tax efficiently.

Millionaires Pay less in Taxes

Taxes are to punish rich and giving that money for the development of the services and infrastructure that can serve poor and middle class. This was the original philosophy behind applying the taxation on high income producer people from all around the world.

But well, the reality is that, Rich pay less in taxes than poor and middle class. This is because they earn in Businesses and Investments. And the Income from Investments and Businesses is either tax free or very less taxable.

According to one survey, the typical millionaire in USA and of course worldwide has a total annual realized income is less than 7 percent of his total wealth. This means that if someone’s Net Worth is $ 1 Million than his annual realized income is less than $ 70,000. And rest of the money he earns in Businesses and Investments in the form of Capital Gains, Dividends and Bonuses.

Thus, all of these Income are either totally tax free (Capital Gains) or very less taxable (Dividends) or even Tax Deductible (Business Expenses). So now you will ask that, who pays these billions and trillions of dollars of tax? Well, these are the high Income but low net worth Middle Class people.

High Income professionals (Doctors, Lawyers, Actors) sometimes pay as high as 70% of tax of their total net worth. This is because their realized income is much more. Take the Example of Doctors. Some doctors earn $ 2,00,000 every year and pay $ 80,000 in tax and their Net worth is just $ 2,00,000. So in comparison to their net worth they pay 40% Tax in comparison of their total wealth.

And to fuel their high status life style, they need to realize more income every year. So remember, Rich pay less in taxes while it is the high income middle class people who pay more in taxes.