Investing or wealth building

I was thinking the other day of unique ways to build wealth. I keep being drawn to real estate.

Any other ideas?

Work hard, spend less than you earn, and invest wisely. It's the only way.

Doing a quick google search I just read that 20% of self-employed people make less than the average American but they make up 2/3 of millionaires.

Investing will come down to two things, a nice portfolio or building equity in a business.(edit: At this point it becomes a discussion of what to do with the investment side of the equation--You cannot out-earn stupidity. It's not an either/or issue, but the question is what kind of other revenue streams you want in addition )

You can go the real estate route, start a turn key franchise with a successful track record if you don't have the entrepreneurial bug, or stick to the basics and still win (or really all three). I believe entrepreneur magazine publishes the most successful start up franchises each year.

Obviously going the business route can have higher risks, but also higher rewards.


I'm going to chew on this one a little more...

edit ?: When you say real estate are you looking for rental properties or burning and turning foreclosed homes or both?

Some things the rest of you might find interesting:
http://www.creditloan.com/infographics/a-lifetime-of-debt-the-financial-journey-of-the-average-american/

Free annual credit report: https://www.annualcreditreport.com/cra/index.jsp

Chris I know you have heard of Dave Ramsey. I do recommend his books. That being said I am currently working on the immediate and that is getting out of debt. Have been thinking a lot lately about what to do after accomplishing that. My idea that I keep coming back to is rental properties. I have also been considering restaurant franchising (most likely to come later b/c of the net worth requirements). I was just talking to a friend of mine and the one he was looking at was Zaxbys. In order to franchise you needed $300,000 cash and an additional net worth of $600,000 (I think this is a little high but most likely ballpark for most franchises).

My train of thought has been this. Working on getting out of debt and house paid for in about 5 years. Spend about the next 10 years working on establishing rental properties. If all of that comes to be, then work on franchising a proven company (most likely restaurant). This is just my initial thought process. Funny we are talking about it now since it has been something I have been heavily thinking about lately.

Pretty interesting little board game diagram papaww....too bad i'm not worried about "building wealth" more like "i need to make more". it would take me a looooong time to even come close to accumulating $300,000...eek

Found it! http://www.entrepreneur.com/franchise500/

This thread amps me up, I await other responses so I don't become a post whore.

Eiaww,
Eiaww Papaww

Don't get me wrong...I've read all of Dave Ramsey's books and most on his website even (which I also recommend). That's actually what got me thinking about the subject...

It's very difficult to become independently wealthy "working for the man". I will always save 15% of my income for retirement as an employee, but I'm also trying to think outside the box. With extra cash I come across, I was thinking about maybe starting my own business on the side or starting accumulating real estate to rent out. Regardless, I will never go into debt to it...in my opinion that's counter-productive.

Do you think a franchise would limit your business directions?

jkoch2272 wrote:Pretty interesting little board game diagram papaww....too bad i'm not worried about "building wealth" more like "i need to make more". it would take me a looooong time to even come close to accumulating $300,000...eek

Nobody makes that kind of money quickly. Although, it will happen for you much faster than you think. I actually envy your situation Jordan. Very low expenses, and all the ability in the world to earn...There's not a darn thing holding you back right now.

Noetzel wrote:Do you think a franchise would limit your business directions?

Franchises are successful because they have systems (acronym: Save YourSelf Time,Energy, Money and Stress).

McDonald's would obviously limit the business directions, but it would save the stress of building a money making mill from the ground up. You not only buy the rights to the McD's logo and brand but you essentially get a playbook of how they do every thing in their business: this is how we make a burger, this is how we greet customers, this is how we train people to get on the line fast because we have high turnover, etc...It's a well oiled machine. From a profit standpoint this is fantastic, but it won't quench the entrepreneurial seizure. (For me, McD's would be an ethical issue, but I digress...)

If you are looking to start a unique venture, and plow some new terrain then a franchise alone will not satisfy. Slightly esoteric, start with lifestyle design. What do you see your life like in 10 years...what time do you wake up? what do you eat? when do you work? how do you get to work? what do you drive? and so on..

For me, fitness became the thing I wanted to focus on, but I also have to be careful not to turn business into hobby (read: money pit). What skills could you bring to the marketplace and make a profit off of? And what would you enjoy doing? I don't imagine people start businesses doing something they hate...that's a job.

To my way of thinking, why can't you have real-estate, franchise(s), and a unique business? Multiple revenue streams. Where do you start?

Jordan, the first step to building wealth is setting a budget. I think you'll be amazed how much money you really do have. Anyone interested I am an excel junkie and have a budget form that's helpful (Dave Ramsey inspired).

I always look for a new business opportunity. I like the garage but I am always looking for more. I have the money availible to do such things, so why not invest to try and make more money. I go up to a place by coney island called the Sandbar every Tuesday night to watch Rachel play sand volleyball. Ill be playing up there next session and I keep thinking about a business that is unique to this area and I can't help but get over thinking the possibility of having a small sports complex like sand volleyball courts with a bar and grill that has leagues and tournaments. It is a low cost start up opportunity. You need a liquor licence and some workers, about an acre of land and some nets and sand. Its something I am thinking very hard about but who knows where it will go. Investment wise go its a big risk but part of the success of it is your ability to sell that investment. If you can make it a good place that does things the right way and can establish yourself as a reputable business man and keep people happy a place like that will make you money. Many investments are a risk and it scares me to invest in anything that has a trace of the government attached to it (which is about everything these days) but thats why some people make the big bucks and I don't.

Rybred28 wrote: It is a low cost start up opportunity.

Define low cost

rypat wrote:
Jordan, the first step to building wealth is setting a budget. I think you'll be amazed how much money you really do have. Anyone interested I am an excel junkie and have a budget form that's helpful (Dave Ramsey inspired).

I would like to see the budget. Dpclarkjr@aol.com Thanks

Mint.com is an awesome website -- you can keep your budget online

Excel has some pretty good budget forms too that come with the program

25-30k is a relatively low cost for starting up a business. Of course the start up cost would decrease dramaticaly if one were renting land or space.

I liked Mint.com for tracking net worth (semi-depressing), but not so much for budgeting.

It attempts to put your transactions into different budget categories, which is great but I found some inaccuracies and others it was unsure about. Plus the amount of budget categories was less specific than I liked.

Obviously personal opinion, but I thought it was using technology for the sake of using technology. I've had much more success with cash and an envelope.

Also I have started an etrade account to buy and sell stock. It has alot of options as far as IRAs, 401ks and various future investing. Also you have the ability to buy and sell stocks and trade. Its pretty fun. You can get tips from Jim Kramer the mad money guy and obviously you have to put some money down but as long as you learn about what you are doing it can be a money making ordeal. Now is a good time to buy stock if you have money because many are low and affordable but once again is the investment worth the risk?? There are a million stories of wealth and an equal amount of loss when it comes to stock market investing.

o

Tj Felthaus wrote: Just bought a different new house, got a good deal (192,500 compared to the 240,000 that was paid in 2008) but we are going to sink $35,000 into renovations immediately. Luckily for us we are putting 25% down and the reno $$ is all cash we have saved.

That's awesome!

Tj Felthaus wrote: Then next fall when I hopefully start grad school, cant work, have to take $85,000 in student loans and most likely begin giving all you guys nieces amd nephews; we are going to be squeezed for cash. We looked at each other last night and said what the fuck are we doing, this is crazy!!

Papaww ain't ready to be a dadpaww.

Tj Felthaus wrote:Growing up is exciting

It is!