Weekly Financial Discussion Thread

[T-Matt]

First off, I would like to thank all of you who have chosen to open this thread and acquire some valuable information. I want to be upfront and let you know that my wealth building principles aren't a get rich quick scheme, but are based on estate building principles. Here are the first principles of wealth building or what I will commonly refer to as the Financial Foundation.

1) Protection- If you are not properly protected why would you even begin to think about investments? You have to PLAN for the worst case scenario. If you have $100,000 in liabilities and only $50,000 in protection and you pass away you are passing on $50,000 in debt. What good did you just do for your family? What legacy did you just leave behind? You'll buy home owner's insurance on your house, car insurance on your car, even a damn warranty on a TV, but you won't buy insurance on your LIFE?!??!

You might ask how much protection you need. Well, a good place to start is 10 times your income. If you are the major bread winner in your family and you pass away, you want your family to live the same lifestyle they were living while you were alive.

2) Debt Management - After you have obtained proper protection you will want to reduce your debt as much as possible. You have to understand that there is good debt and bad debt. Mortgage is a good debt, but credit cards, car loans, and various other installments are bad debts.

Rich people are borrowers, don't ever forget that. In fact, I want to repeat that again, RICH PEOPLE ARE BORROWERS!! You just have to have solid credit so you can borrow a lot of money for as little interest as possible and turn around and make a higher rate of return.

3) Emergency Funds - After you have obtained your proper protection and reduced debt, then you have to build up Emergency Funds. A solid figure to start with is 3 times your monthly expenses. It's hard to plan for an emergency or disaster, but it's quite realistic that most people are 3 months away from bankruptcy.

4) Investment- AFter you have taken care of the above 3 principles, THEN you worry about investments. Most people try to make a rate of return before they take care of the rest of their financial foundation. This is a recipe for disaster. If you build it right, you will succeed. If you can afford to lose money on your investment, then you are doing the right thing. Most people can't afford to lose money and they pull out money and move it around. Solid investments are long-term.

The X Curve Concept

The X Curve is the beginning of a solid financial education. The X curve states that you should aim to decrease your responsibility as you get older and increase your wealth. It sounds simple however, but not using the above formula, most people never make it to a more secure financial situation. They worry about investments too much and don't protect themselves and they just keep digging themselves out of the hole.

When you are younger you have a lot of responsibility. YOu get out of school and you buy a car and house and have kids (hell, kids cost on the average of $250,000/child these days) but most people don't have the protection to protect all this debt. They gamble with their futures by hoping nothing happens. You have to have the protection for your liabilities. As you get older and pay down your liabilities you may decrease your insurance.

Most people know how to work for money, but don't know how to make money work for them.

The Rule of 72

The Rule of 72 is simply the compound interest rule. Simply stated, this rule is to take the number 72 and divide it by the interest rate and the remainder is the amount of years it takes for your money to double. Here's an example.

Let's say you put $10,000 in a CD at the bank. The bank will essentially 'guarantee' you a 4% rate of return. (Now, I challenge you to find the word 'guarantee' in writing. You won't because it's not guaranteed. I'll show you how they can guarantee it essentially.) So, you take 72 and divide by 4 and the is 18. So, it is going to take you 18 years for your money to double. Now, it is very safe to say that the bank is going to make 12% rate of return, on average, off your money. Right? How is this? Well, as soon as you put that $10k in a CD they send you Pre-Approval letters saying you've been pre-approved for a student loan, car loan, mortgage, equity line of credit, credit cards, you name it. Hell, they're even going to set up your escrow account and make money on that. So, you take 72 divided by 12 and you get 6. So, it takes the bank 6 years to double your money for you.

Let's take a closer look at this..

..............................4% ..................... 12%
30 years old ...........$10,000 ............... $10,000
.
.
.
48 years old ............$20,000 ................ $80,000
.
.
.
66 years old ...........$40,000 ................. $640,000

LOOK AT THAT.. That chart right there is powerful. That is basically sayiing the bank is giving you $40,000 and they are walking away with a $600,000 net. Now you see why everytime you drive by Bank of America their lights are on? Yeah, they don't have a problem paying their power bills, YOUR MONEY is working for THEM!!!

The Solution

1) Reduce Debt - When I say reduce debt I am speaking in simple terms here. I am saying that we increase your monthly cash flow as much as possible. Any installment payments, any bills are reduced as much as possible. Debt Consolidation is the key. If you have a $1200/month mortgage payment, a $500/month car payment and $400/month in credit cards, you have a total monthly debt of $2100. Your house is worth $300,000 and you only owe $120,000. Well, your house is going to appreciate in value whether you pay down the principle or not. What you want to do here is refinance your house and get the lowest payment possible. You can refinance into an Option Arm and have a $200,000 loan for nearly $650/month. By refinancing you just saved yourself $1500/month!!!!!!!

2) Pay Yourself First - Once you have reduced your monthly debt and you have this extra $1500/month you have to have the discipline to pay yourself first. Use the Rule of 72 and figure out how much money it's going to take you to obtain the amount of money you'll need to retire and live the lifestyle you want to live. We all know how to pay our bills but very few of us know how to pay ourselves.

3) Make More Money - Whether you need to be ambitious or pick up another job or learn how to make your money work for you, you need to make more money as you get older.

4) Build Up Equity - Once you have taken care of 1-3 you want to begin building equity and not accumulating more liabilities. You need to either personally assess your financial situation every 6 months or sit down with an estate planner to do so. If you're not building equity and you continue to build more liabilities, you aren't making any progress.

5) Preserve Estate - Once you have mastered 1-4 then you can focus on Preserving your Estate through life insurance and trusts. Estate taxes are a killer, if you don't follow the formula of this thread, you will have just lived your entire life and accomplished nothing.

Protection builds wealth.

T-Matt

 

[Creepusmaximus]

Yawn. How about if you have a 30 mortgage @ 6% APR and you buy junk bonds that yield 15%. 6% turns into about 4% when you figure taxes in so when it's all said and done you can make money off of borrowed money. There are many ways to make money playing with interest rates taxes etc only problem is most people don't have the knowlege to pull it off or they take on to much debt and screw themsevles.

Thanks for the business 101 class though.

I once put a car on my credit card because it offered 1.9% for life of the loan, car loan was 7%. Balance tranfer. Then I just paid at least my orginal car payment every month till it was paid off. BTW I pay off car loans as fast as possible.

 

[T-Matt]

Yawn. How about if you have a 30 mortgage @ 6% APR and you buy junk bonds that yield 15%. 6% turns into about 4% when you figure taxes in so when it's all said and done you can make money off of borrowed money. There are many ways to make money playing with interest rates taxes etc only problem is most people don't have the knowlege to pull it off or they take on to much debt and screw themsevles.

Thanks for the business 101 class though.

I once put a car on my credit card because it offered 1.9% for life of the loan, car loan was 7%. Balance tranfer. Then I just paid at least my orginal car payment every month till it was paid off. BTW I pay off car loans as fast as possible.

Rich people are borrowers, that is very true. That is why you have to understand that mortgage is a good debt.

I'm going to ask you the burning question.. Would you rather pay taxes now, pay taxes later, or pay taxes never? You seem like a smart guy.. Yes, you can choose to do all three, you decide which of those three you like best.

The only reason you were able to get a credit card of that interest rate was because you had already done everything I just said to do. You had GOOD CREDIT. Joe Jabroni off the street cannot get a credit card with that interest rate.

Most people don't know how to pull it off because no one ever sat down and taught them the principles of building a big business. You are your own business.

I don't finance cars in the first place, it is a depreciating asset. Cash gives you LEVERAGE with automobiles.

I'm glad you got a good yawn out of it because I will be adding some valuable information that even YOU can benefit from.

T-Matt

 

[Creepusmaximus]

Depreciating asset, your dead right. The true problem is very few people really can understand personal finance. BTW a lot of car salesmen make a commission on writing a car loan so you can have more leverage price wise going with a loan. The worst person a dealership deals with is an all cash guy who doesn't buy the service plan etc and uses something like edmunds to figure out the price their willing to pay.

 

[T-Matt]

Depreciating asset, your dead right. The true problem is very few people really can understand personal finance. BTW a lot of car salesmen make a commission on writing a car loan so you can have more leverage price wise going with a loan. The worst person a dealership deals with is an all cash guy who doesn't buy the service plan etc and uses something like edmunds to figure out the price their willing to pay.

Not if you make the right contacts, meet someone with a dealer's license, go with him to a car auction, buy a car and give him a grand under the table.. I have a nice service plan with a great mechanic. His investments are working very well for him and my cars will always run great for me.

Cash is always leverage.

This world is all about who you know.

T-Matt

 

[Creepusmaximus]

Not if you make the right contacts, meet someone with a dealer's license, go with him to a car auction, buy a car and give him a grand under the table.. I have a nice service plan with a great mechanic. His investments are working very well for him and my cars will always run great for me.

Cash is always leverage.

This world is all about who you know.

T-Matt

My last two cars were brand new models so there is no buying at auction. Right now I'm thinking of buying a G35 and it goes for list period and I will probably have to wait for exactly what I want. Depends what your buying.

 

[T-Matt]

My last two cars were brand new models so there is no buying at auction. Right now I'm thinking of buying a G35 and it goes for list period and I will probably have to wait for exactly what I want. Depends what your buying.

I couldn't imagine buying a brand new car. I'll happily let someone else take the depreciation. I only buy cars with equity in them.. If I'm going to buy a new car I'm going to buy a Maybach.. Buying a brand new Infinity just doesn't make sense to me.

T-Matt

 

[Creepusmaximus]

I couldn't imagine buying a brand new car. I'll happily let someone else take the depreciation. I only buy cars with equity in them.. If I'm going to buy a new car I'm going to buy a Maybach.. Buying a brand new Infinity just doesn't make sense to me.

T-Matt

I've been thinking about an Aston Martin but the funny thing is it would be used because I like the DB-7 over the newer one. LOL. About 35 to 40 is my cut off for a car, I like the CLK convertibles but I just can't justify spending that much on a car. The DB-7 would be a long term keeper(toy) for me.

 

[hanibal]

i just bought an '06 bugatti. goes 0-210 in 10 sec.i couldn't stand buying an '07 for 900,000, having it depreciate 90,000 off the floor, so i bought a used 1 for 675,000 w/ 10,000 miles...yeah right, maybach,aston martin, get the fuck outa here...!
- by the way it will do 210 in 10 sec, i have video to prove it...

 

[WhatOkay]

i just bought an '06 bugatti. goes 0-210 in 10 sec.i couldn't stand buying an '07 for 900,000, having it depreciate 90,000 off the floor, so i bought a used 1 for 675,000 w/ 10,000 miles...yeah right, maybach,aston martin, get the fuck outa here...!
- by the way it will do 210 in 10 sec, i have video to prove it...

You drive an '06 Bugatti and your wife is a school teacher ?

Oh yeah, no need to post the video dude, i've already seen it on youtube.

 

[hanibal]

u got it baldy...yeah she's a volunteer... some of U fucks believe everything. get postin, you're alittle low...

 

[T-Matt]

u got it baldy...yeah she's a volunteer... some of U fucks believe everything. get postin, you're alittle low...

Ok guys, let's stay on topic here. The only reason you wouldn't believe what someone else is saying is because you yourself are lying to the board. Just accept it for what it is. We all type to represent what we would say and do in real life. Keep your integrity.

Simply put, I am trying to educate people on this website to become a walking dividend and stop being a walking liability.

I have learned vital information from my company and I love to share good info.

Thank you for your understanding. I am working on a new update today, should have it posted before the close of business today EST.

T-Matt

 

[chewyxrage]

Well,we all know everyone on EF has a 10 inch cock, has a Bugatti, makes 1.3 million per quarter, and is 6'4 265, 8% bodyfat.

Integrity is hard to come by on the information superhighway. You seem really genuine though, t-matt, keep it up, interesting posts I've read of yours.

 

[T-Matt]

Today I want to talk about your mind. What is your outcome of reading this? I want you to have a very clear outcome right now. Whether you are reading this because you need financial help, you are just curious, or you just enjoy expanding your mind. If you're going to get anything you want in life you have to be very clear, very focused, lazered in on an outcome. My hope for this post is to have a life changing event in your life. I hope that some how on some level this changes your life, it makes measurable, tangible results deep inside you to make the decision to become successful.

There's a set of behaviors, a set of habits that got you where you are now, whatever situation you're in. Whether you're average, pretty good, or poor. You didn't get into that condition by anything other than your behaviors. If we're going to change that condition we need to change your behaviors. It's not other people being assholes, or your company, or your wife, or the guy at the gym who does curls in the squat rack, its' not how busy you are, it's not your lack of talent. It's you. It's your behaviors. There is nothing wrong with you, you are a champion, you are amazing, you've been given unique gifts and talents that are special to you, you're awesome, you are naturally successful as a human being.

Great people, great leaders, succuessful people find the blessings in people. I don't know if I'm good at anything in life but I do know I am good at finding the blessings in people. When I meet you and shake your hand I know you for a little while, I don't see what you are right there in the moment, I see what you are capable of coming. Whether I see you at the gym busting your butt, I don't see a fat person in you, I see you 200 lbs and ripped. I see the happy, successful, at peace person. I see the blessings in everyone. It's like children, if i asked you about your children you'd know right away, "Oh yeah, my daughter, she's so kind, she's so smart, and funny and intelligent," you see those blessings. You know those unique blessings.

What i know about you is that you are born from a special higher power. I know you were sent here wired with an amazing uniqueness, whether it's your passion, intensity, your intellect, your patience, your honesty, math skills, listening skills, sense of humor, kind heart, incredible strength. See, I don't know what's special about you but I know there's something special about you.

A happy person, an at peace person is someone who acknowledges that they come from something bigger than themselves. A happy person also knows and can identifiy his unique blessings. What is unique to you?? A totally fufilled truly happy person spends his/her life's work playing the game of life with those gifts out in front, utilizing them, helping others. If you do that, the world is your oyster as long as you are patient and you let it come to you.

There's a big difference between knowing and doing. It is constantly your behaviors that determine whether you are doing what you know you should be doing. I want to pull the doing out of you. I want to pull the blessings out of you.

I want to talk about you.

Two things I want to fix.

1) How you think (your beliefs)
2) How you act

If you can manifest the beliefs of a champion and act like one, you can become very successful. If you can model people who are successful you're more likely to get their results.

There's a law called The Law of Cause and Effect. It's impersonal. It's like sunshine, if you're out in the sun, you feel the warmth and you can feel it's healing great effects. If you're in the shade you can feel the cold and it's dark. It seems like the sun isn't shining on you. But who moved you in the shade? The truth is we are aware of the darkness because we put ourselves there. You only receive what our minds are capable of accepting.

We get out of life what we think we're entitled to. See many of us go to the river of life with a teaspoon while others go with a bucket. The river of life is the same for all of us. We get in life what we think we deserve. We think what we deserve based our previous efforts and beliefs. beliefs have limitations. Once we accept and idea, whether it be a belief of abundance or a belief of suppression. YOu are always right. The mind attracts what it's familiar to. if you think you're broke and you can't do any better, you're right. The concious mind and sub concious mind interact together amazingly.

The primary function of your subconcious mind is to believe whatever you tell it to be true. It doesn't change the reality of anything, it filters info to support your beliefs. Your subconcious mind will filter out any opportunities to improve your life. Your subconcious can't think for itself. You get to tell it what to think, your mind can't decide what's real and what's imagined. So, what's powerful is you can tell it what ever you want to tell it. It will begin to make that true.

Are you chained to your limiting beliefs? Your limitations? What if you could believe to be successful and be happy? You need to work on seeing that all the time. Your subconcious mind filters out everything that isn't true other than that. It filters out bad luck and negative thoughts and you don't even notice them. You begin to attract what your mind believes.

Many people are chained to their limiting beliefs. I know you've been to the circus or zoo. At the zoo they have these baby elephants that are chained to those loose chains. They're so small they can't pull the chain out of the ground. They grow up and they try and try and try. As they grow, there becomes a certain point that that elephant beliefs it can't get away, it can't break away from that small stake and chain. It's fascinating because they grow in to a MASSIVE animal and they still can't break away. They stops believing they can't break away from it, that same stake and chain that they could break with their pinky. They are chained there because of their limiting beliefs. Is that not fascinating???? That's the power of belief..

You are anchored in similar beliefs.... No matter how ridiculous they are. How amazing of a person you are, you are anchored to those beliefs and never reach your full potential.

I don't think you've always seen you in the circus have you? At the zoo?

The truth is is that if you want to take control of your life. You need to get a basic understanding of who you are. All actions, feelings, behaviors abilities are consistant with this mental picture. What you believe about your ability is who you become and that is your identity. Whatever way you see you your mind will go to work all the time to make it true. That belief is like an internal thermostat for a human being.

If you see you at 75 degrees, with that same level of happiness, contributions, growth you're always going to be that temperature. If you see it at 75 degrees your subconcious mind, despite all opportunities in the world will keep you at that temperature. If you don't change you will always cool yourself down back to that temperature.

If you see you at 75 degrees and you get an opportunity or you're motivated by a new girl you just met, or a new job, you start to get happier and you start to work out harder and you show up early and leave late. If you don't change the way you see yourself that stake and chain are going to pull you back no matter what you do. You stop going to the gym b/c the girl isn't in to you, you show up at work late and leave early. What you do is you turn on the AC to cool your life back down to 75. It got too hot for you. t

The key is to turn you up to 85 so when you get it, you're comfortable with it. You accel with the new opportunity, you treat the woman right, you stay consistant in the gym. You see champions know if they are 75 they need to see themselves at 85 degrees. You don't know it's true you might as well think big and see the success.

The reverse is true, you ever notice when life gets bad and life cools down to 63 degrees it goes away and everything eventually gets better? You work harder, you work out, you start studying, you look earn extra income. That process is always going to yield you 75 degrees worth of happines, wealth, and contribution.

The key is to see you at 90, 100 125, 500 degrees. Life gets hotter by how you see. You by your beliefs set the temperature. Through your thoughts, actions, beliefs, focus, prayers you set that temperature. THAT is the key, THAT is the secret. The secret is you have an outcome. You have a huge challenge to change that. You'll see life change when you take control of the temperature. Your life will get better OVERNIGHT.

What do you really believe? How do I change the temperature you ask? The number 1 thing is our associations, who we hang around, the books we read, the tapes we listen to, the places we go out to and the people we meet.

I love personal development. I associate with millionares, it changes me. The power of our peer group changes our identity, our temperature. People who live life at a higher temperature will heat you up.

No matter what you do you're going to find a way to get it back to your thermostat setting.

You need to have a vision or a vision. Take control of your thoughts. Do you see yourself with a big house? Do you see yourself happier? Do you see people listening to you and respecting you? How much time do you spend dreaming? Dreaming is powerful. If you can dream and think about something you can do it. Challenge yourself to begin to think big thoughts. See yourself in a big house, see yourself in a nice car, see you cashing a big check, see your family proud of you!!! That dream then begins to take control of your subconcious mind. Control your thoughts and change your associations, read books, go out to places where more successful people associate.

Then if you can go out and change how you behave.. Look out.. You can do anything you set your mind to do.

I want this post to sink in here for you. I want you to read this 3 or 4 times until it sinks in and you feel exactly what I'm talking about.

T-Matt

 

[T-Matt]

I find it hilarious that most people don't even check this forum. I read most of the threads and there is some awesome information! Most people ONLY visit the women thread, the C&C thread, and the Steroid thread.. It's a shame because you could read this become successful very quickly.. I just wanted to personally thank everyone for their contributions.

T-Matt

 

[Creepusmaximus]

Holy crap dude. That one post is huge. You have that pay me $100 to come see me speak feel to you or an insurance agent. Good read though for people who need it.

 

[T-Matt]

Holy crap dude. That one post is huge. You have that pay me $100 to come see me speak feel to you or an insurance agent. Good read though for people who need it.

lol.. I just want to make a difference.. If just one person reads this and it changes the way he lives life, I am ecstatic.. If no one does, so what, I tried, I gave my all, and I did my due diligence as an educated man to help my fellow men out..

Thank you tho.. and of course i"M an insurance agent..

T-MAtt