Sunday, June 26, 2005

Cash Flow

Mr. Pinwheel came to visit and give expertise on the yard.
He is an expert on grass. Really.
Has a Masters and Ph.D in Range Science. (from Texas A&M no less).

Zelda is concerned about the Bunny house.
It is old. Tired. Bad foundation, typical of many North Texas homes, thanks to high clay content soils...
There is a solution to them, but the developers, and home buyers are not willing to pay for it...

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Statics show that if you gave $10,000.00 to 100 people, with in a year,
80 of those people would have Nothing left of that money,
16 people would still have $10,000.00 left, and
4 people would have turned that $10,000.00 into anywhere between $20,000.00 to $ 1,000,000,000.00.

Where would you fall?
Until a few years ago, I would have been in that first percentage. $0.00 left.
All spent on toys and bills.
Currently I am in the second group, I am saving.
I will shortly be in the last group.
***************
Get a dollar to reproduce only 20 times, and it will turn itself into,
get this...
$1,000,000,000.00.
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How do you do this?
Get that dollar to work for you, and not for someone else.

What is it that those 4 people know that I, or you, don't?

Education and a new way of thinking about money...

My goal is to continue to educate myself, and to start Zelda on that same journey.
********
I bought my sister's half of mom's house for less than $50k.
If I sell it, I get maybe $80k, pay off my debts, $45k, pay the taxes and fees, and have maybe $25k left.

Or.

I can spend $10k or so to fix it up and rent it.
Each month, those $$$$ I spent on the house will be reproducing themselves.
Take that "baby" money and buy another rental house, or income producing business, and that money "reproduces" again.

Simple really.

Sell it, and all I'll have is $25k...

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