Enjoy Freedom? Money?

Get Breaking Fastlane Updates.
  1. the entrepreneurs red pill

    Talk To Other Millionaire Entrepreneurs ... for FREE!

    Some people take advice from millionaires, others take advice from people who want to be millionaires. If you're tired of taking millionaire advice from your broke uncle, your paycheck-to-paycheck friend, or your 30K millionaire co-worker, register today and get the uncensored, and yes, the sometimes uncomfortable truth from real millionaires who live and die in the entrepreneurial trenches.
    register for the fastlane forum

    Start Your Own Personal Revolution: Grab the Book that Started it All!

    Get The Millionaire Fastlane ||| Download 3 FREE Chapters ||| Learn More

Questions about Passive Money System from TFL Book...

Discussion in 'Process / Progress / Execution Threads' started by EvanOkanagan, Aug 16, 2013.

  1. EvanOkanagan
    Offline

    EvanOkanagan 50 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Aug 2, 2013
    Messages:
    92
    Likes Received:
    61
    Speed Points:
    74
    Rep Bank:
    $110
    Hey guys,



    I just went through my business system & money system targets from TFL book and I really like the idea. My question is though, is it counter-productive to put money away at, say 5-7% interest when I could be using that money as leverage, or putting it in investments that yield a 30-40% return?

    I really like the idea of having an account and watching it grow, especially with an end goal in mind to shoot for. The trouble I'm having is deciding if it would slow down my speed to get there if I don't invest in higher yields or use it as leverage in a business system.

    Can any fastlaners tell me if they have this account set up? What are your thoughts?
  2. Vigilante
    Offline

    Vigilante Warp 6 Staff Member LEGENDARY CONTRIBUTOR FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Oct 31, 2011
    Messages:
    3,779
    Likes Received:
    10,711
    Speed Points:
    2,785
    Location:
    Pacific Islands
    Rep Bank:
    $15,001
    27? You can make and lose and rebuild a fortune 10 times if you had to. Low risk low yield is for grandpas. Live a little.

    [video=youtube;7WS6C-TuMHA]http://www.youtube.com/watch?v=7WS6C-TuMHA[/video]
    2 people like this.
  3. EvanOkanagan
    Offline

    EvanOkanagan 50 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Aug 2, 2013
    Messages:
    92
    Likes Received:
    61
    Speed Points:
    74
    Rep Bank:
    $110
    Haha agreed low risk low yield is for grandpas! I'm trying to grasp this part in the book and wondering about MJ's philosophy for doing this.
  4. Eskil
    Online

    Eskil 240 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Jul 18, 2012
    Messages:
    1,074
    Likes Received:
    1,956
    Speed Points:
    910
    Location:
    Washington
    Rep Bank:
    $4,750
    4 people like this.
  5. timmy
    Offline

    timmy 10 kph Read The Millionaire Fastlane

    Joined:
    Jul 29, 2013
    Messages:
    74
    Likes Received:
    18
    Speed Points:
    15
    Gender:
    Male
    Location:
    Ireland
    Rep Bank:
    $57
    Thank you sir very much..
  6. socaldude
    Offline

    socaldude 170 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Jan 10, 2012
    Messages:
    873
    Likes Received:
    1,107
    Speed Points:
    391
    Gender:
    Male
    Location:
    San Diego, CA
    Rep Bank:
    $1,087
    You know whats counter productive? Losing 50% of the principal. At 1 million dollars you will lose 500k!. Ouch.

    Trying to turn 1 million into 2 million in the markets is no different than trying to turn 10k into 20k.

    Trust me i've been there. WTF does it matter if I make 3k one month but lose 5k 3 months later?

    At 30-40% yields we are now at sky high financial risks. No different than playing russian roulette or speeding on the freeway at 120 MPH.


    Read any financial newspaper: Barrons, WSJ, Forbes etc. and you will see that the rich use the markets for safe income and liquidity not to get 50% returns or get rich.

    The same way your grandpa puts 500k into a bond fund and retire is the same way a 17 year old kid or 30 year old can do.

    You wanna know what made me a better trader and investor? Realizing that I was CHASING MONEY. Not repackaging value or creating it via marketable investments. I was better off going to the casino blackjack tables.

    As an investor or trader your goal is to CREATE VALUE. When you buy equity privately or publicly you create value via working assets and if you buy debt you create value via money's intrinsic scarcity and time value via interest. Chasing money means you will never make money. It's a catch-22. This is probably the biggest reason why some people will never get rich; they don't understand how or why wealth or money is created or why money is transfered between parties.
    2 people like this.
  7. socaldude
    Offline

    socaldude 170 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Jan 10, 2012
    Messages:
    873
    Likes Received:
    1,107
    Speed Points:
    391
    Gender:
    Male
    Location:
    San Diego, CA
    Rep Bank:
    $1,087
    Look at it this way:

    One of the hardest things you will ever do as an entrepreneur is to raise money.

    Why?

    Look at it from the investors perspective.

    Will they get their money back? Will they make a return?

    They think about this in terms of your ability to create value. Your ability to execute.

    Notice how much scrutiny and investigation is involved?

    Your doing the complete opposite. Anybody who promises a 40% return I will just hand over the money and hope and pray. No analysis, no value, no nothing!
    1 person likes this.
  8. EvanOkanagan
    Offline

    EvanOkanagan 50 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

    Joined:
    Aug 2, 2013
    Messages:
    92
    Likes Received:
    61
    Speed Points:
    74
    Rep Bank:
    $110
    I appreciate all the feedback. The 30-40% returns I'm referring to are rent-to-own investments where I would receive a large initial deposit from the renter (usually 25k-50k non-refundable) that ensures they'll fulfil the term or they forfeit all of this money and I keep the house.

    I think I might have asked the question differently than I wanted to though.... I was more meaning, would it not be wiser to put back this money into building your business system than putting towards an investment account? Or would you wait until your business is flowing heavy cash and THEN start this investment account? This is all referring to the chapter in TMF on building a passive money system. MJ states you should start an account from wherever you are and keep building that until you hit your ultimate number.

    A lot of people will have different opinions about this, and I definitely appreciate any input. I'm curious though of the idea of putting aside a 40-40-20 split from the start vs putting nearly all the money back into your system.
Certain Xenforo Add-Ons by Waindigo