Practical Investing

Your first best investment is in yourself.  Constantly learning and improving through self-education and self-development.  

Read up on the latest developments in business, network to create and maintain long-term business relationships and find a mentor, either through books and publications, or business partners.  

Constantly learn.  Constantly improve and never stop!  Always stay busy doing something.

Your second investment is in assets you own or control that can provide an active cash flow.  If its a business, for example, it needs to pay its operating expenses, set aside cash reserves for future investments and improvements and, of course, can pay you.

Over the course of time, the business can provide a passive income, either through the delegation process or as a result of further investment in assets that provide a passive income stream.

The keystone (the process that keeps it together) is investing in assets you own and control that produce a consistent, measurable cash flow that is as independent as possible of the ebb and flow of the marketplace.

Investing in the stock market is tempting and its, sometimes, possible to make a lot of money, but the process is out of your direct control.  There are too many market forces acting all at once and NO ONE has a system to beat it.  

One solution to consider is developing an asset base that can consistently pay out four-percent a year.  It doesn’t matter what the assets are, as long as they produce consistent, measurable results.

Do the math, then develop a strategy to get there.

Suppose you want to pay yourself $120,000 a year for the rest of your life.  You will need an asset base of three-million ($3,000,000) dollars.  A four-percent draw on three-million dollars is $120,000.

Does it matter what the assets are?  No.  Real estate is a good investment overtime.  A well managed business can also be an asset.  The real answer is looking at what will suit you and your temperament.

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