Leading expert Richard Hindburg has predicted that oil prices will go over $200/barrel in 2 years (I predict much sooner than that) as global oil reserves have already peaked and production will (or already has) started to decline. The only answer to this situation is to redesign the economy to use less oil and allow the use of alternate technologies where oil or any other non renewable resource is not allowed.
But will our money based governments and economies allow such a drastic change to occur?
Tuesday, May 13, 2008
Saturday, May 10, 2008
Job V Investment
Very few millionaires achieve their wealth from savings earned from a high paying job. In fact, it is difficult to get rich from your work. What are they doing that you're not?
The reality is that most millionaires are either investors or business-owners, not employees.
Saving your earnings to reach the $1 million mark is almost impossible. The low rates offered by banks, combined with rising inflation, make saving a poor strategy to reach the seven figure threshold. There is a reason that very few people ever actually save their way to a million dollar net worth.
The millionaire mindset expresses a completely different ideology towards an investment.
Millionaires look for the best possible return with minimal risk, while most investors simply look for the best returns. Wealthy people spend money differently... The millionaire views each and every purchase like an investment. They purchase assets.
Millionaires do work, but not for money. They work on systems, ideas, concepts that can leverage their time.
We all have one thing in common with everyone else... The same amount of time available.
Most people in the seven figure club got there by earning more than they needed to survive for
a number of years, while supplementing their fortune with consistent returns from quality
investments. Remember, the investor can make an infinite amount of money each year by putting money to work.
On the other hand, the employee who "saves money" is left with a job that can only pay so
much per hour and offer so many hours. Your opportunities are slim in the professional
world, but huge profits can be obtained with each investment dollar.
The investor can earn more in a year with a modest retirement portfolio than can be made
with a college education! Furthermore, future growth in earnings by investments is set by you.
Each time you roll your money over year after year, your principal grows, and the yearly
payouts rise as well. Very few professions accommodate for a 12% pay increase year over year.
Ultimately, there's only one solution. You either understand the fundamentals of investing and work towards becoming excellent... Or you can whinge and moan, working for a living for the rest of your life. Be prepared to put your ego aside, admit to yourself that life is not going as well as it should and start investing in your own financial intelligence now.
The reality is that most millionaires are either investors or business-owners, not employees.
Saving your earnings to reach the $1 million mark is almost impossible. The low rates offered by banks, combined with rising inflation, make saving a poor strategy to reach the seven figure threshold. There is a reason that very few people ever actually save their way to a million dollar net worth.
The millionaire mindset expresses a completely different ideology towards an investment.
Millionaires look for the best possible return with minimal risk, while most investors simply look for the best returns. Wealthy people spend money differently... The millionaire views each and every purchase like an investment. They purchase assets.
Millionaires do work, but not for money. They work on systems, ideas, concepts that can leverage their time.
We all have one thing in common with everyone else... The same amount of time available.
Most people in the seven figure club got there by earning more than they needed to survive for
a number of years, while supplementing their fortune with consistent returns from quality
investments. Remember, the investor can make an infinite amount of money each year by putting money to work.
On the other hand, the employee who "saves money" is left with a job that can only pay so
much per hour and offer so many hours. Your opportunities are slim in the professional
world, but huge profits can be obtained with each investment dollar.
The investor can earn more in a year with a modest retirement portfolio than can be made
with a college education! Furthermore, future growth in earnings by investments is set by you.
Each time you roll your money over year after year, your principal grows, and the yearly
payouts rise as well. Very few professions accommodate for a 12% pay increase year over year.
Ultimately, there's only one solution. You either understand the fundamentals of investing and work towards becoming excellent... Or you can whinge and moan, working for a living for the rest of your life. Be prepared to put your ego aside, admit to yourself that life is not going as well as it should and start investing in your own financial intelligence now.
Monday, May 5, 2008
Will there be another interest rise?
Soaring food and fuel prices and interest rates have forced house hold grocery spending to be cut, the biggest cut in 20 years. Declining retail sales and softening property purchases, weaker credit growth is evidence of demand growth slowing under pressure from the tightest financial conditions in more than a decade. This evidence may be sufficient for the Reserve Bank of Australia Board to leave interest rates on hold. Food prices have soared by 12% in 2 years. The hospitality industry has been hardest hit with sales plunging by almost 6%.
Business visas
China is restricting business visas. The Chinese have been angered by the anti China sentiment from the west over Tibet and in retaliation anti west sentiment amongst the Chinese is growing. Foreign business people have been told that their business visas will expire on July 1, 2008 and as such must leave the country.
How can this impact on the Australian economy?
Taken to extremes if trade with Australia is cut drastically we will have to start relying on our own ingenuity and granted that prices will not be as cheap as products from China but I believe our quality will be superior and we will have a resurgence in new businesses and entrepreneurial projects.
How can this impact on the Australian economy?
Taken to extremes if trade with Australia is cut drastically we will have to start relying on our own ingenuity and granted that prices will not be as cheap as products from China but I believe our quality will be superior and we will have a resurgence in new businesses and entrepreneurial projects.
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