Make Money Like Munger: Tips from Warren Buffett's Right-Hand Man

Charlie Munger is best known as the second-in-command behind Warren Buffett at Berkshire Hathaway. He's also a world-class billionaire investor in his own right, capable of similar market-trouncing results as Buffett himself.

As a successful investor and all around nice guy, Munger often shares his investing wisdom with those who care to listen. Paying attention to what he says and acting upon his best advice should help you make yourself financially comfortable - maybe even rich.

With that in mind, here are some of his most pertinent words of wisdom for those who want to invest.

The No-Brainer Secret to Getting Rich

If you're looking to do more with your money than just stick it in a CD or savings account, perhaps the most important Munger quote of all time is this one:

"Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer."

Because you need to spend less than you earn in order to properly invest, and because investing defers your ability to spend money from today to sometime in the future, even lousy investing beats not investing at all.

Following Munger's advice throughout your career is just about the closest thing you'll find to a guaranteed way for you to wind up financially comfortable during your retirement.

The Key Financial Lesson for Those Not Yet Able to Invest

For those not yet able to regularly sock away cash for their futures, Munger has these words of wisdom:

"Once you get into debt, it's hell to get out. Don't let credit card debt carry over. You can't get ahead paying 18 percent."

Once again, Munger is absolutely correct. He and his partner Buffett may be among a handful of investors in the world with a legitimate chance of outrunning credit card debt with investment earnings. We mere mortals don't have a prayer.

The long-run returns from investing in stocks is somewhere around the 8 percent to 10 percent annualized range - and even that isn't guaranteed. When compared to the 13 percent or more interest rates that typical credit cards charge, the importance of always paying off that credit card bill -- and the futility of trying to beat that rate investing - becomes abundantly clear.
The most important instructions for those who do invest

Finally, for those who are ready to invest, Munger has two critically important pieces of advice. The first:
"The number one idea is to view a stock as an ownership of the business and to judge the staying quality of the business in terms of its competitive advantage. Look for more value in terms of discounted future cash-flow than you are paying for. Move only when you have an advantage."

And Munger's second key piece of investing advice:

"There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn't awash in cash -- and I don't want to go back."

Taken together, they form the foundation of the value-investing strategy that made Munger and his partner Buffett two of the richest people on the planet. In essence, Munger's advice boils down to:

• Figure out why a company has a right to win (its staying quality/competitive advantage)
• Determine what that company is worth (the discounted future cash flow)
• Pay less than that amount to buy it, and
• It's a better idea to hold on to cash than to invest your money poorly.
• It's a pretty straightforward strategy, but it's the one that made Munger the billionaire he is today.

These Words of Wisdom Work in Good Times and Bad

Those straightforward bits of timeless advice from Charlie Munger contain the keys that will let anyone able to follow them throughout a career wind up comfortable, if not downright rich. Yet while his advice can work wonders, life does have a way of throwing us curve balls. Jobs get lost, health is not always with us, cars get wrecked, and roofs leak.

Don't let those curve balls dissuade you: Following Munger's advice gets you in a better position to hit them when they come flying past. For instance, it's a lot easier to deal with the costs of a wrecked car if you've got a pile of cash awaiting investment than if you're already in a hole from carrying credit card debt.

Even if you're not yet ready to invest, structuring your financial life around Munger's advice can set you up for success once you're able to get started.

10 Tips for Reducing Debt and Achieving Financial Freedom

We all want to get out of debt but it can seem like a long and hard road to financial freedom. In reality, it is not difficult as long as you follow a few steps and remain dedicated to the cause. This is a list of ten tips to help you find your financial freedom.

10. Face Facts

Before you go any further, you need to sit down and work out exactly what you owe, to whom you owe it, and what interest rate you are paying. This information will be very helpful with the rest of these tips. It is very easy to think of all of our debts as small payments each pay, but when you add them all up they can amount to a massive debt. This can be a very scary task but unfortunately it must be done. If you need to, get a friend or family member to sit down with you to help you go through old bank statements to make sure you miss nothing out. The good news is that once you have done this, the hard part is over. You have faced the debt and now it is time to kill it.

9. Stop Spending

Be satisfied with what you have. For the next few months you are not going to be able to spend money on treats. It is very important to be able to resist all of those wonderful things that we all want to have. If you are always wanting to buy new things, you are going to find it very hard to stick to the tips in this list and that can lead to failure and, even worse, more debt, unless you can start being satisfied with what you have. Chances are, shopping is what got you in to this predicament in the first place, so nip it in the bud now. You absolutely must stop acquiring new debt.

8. Increase Your Income

While this is not always possible, you should certainly try to increase your income (even if by only a small amount). The more money you have to put on debt, the faster you will eradicate it. You can take a part time job at a supermarket, at a fast food restaurant, or even just offering to do odd jobs around the neighbourhood. There are a huge variety of part time jobs available in all manner of areas.

7. Pay Yourself

It is very important that you give yourself enough money to spend each pay cycle. If you try to skimp in this area, you will break your budget and undo all of the good work you have achieved. This is not to say that you should not be trying to reduce expenses, which is also very important. When working out your “play” money, be sure to include everything you might normally spend money on. If you leave something off you can put the whole budget out of whack.

6. Stop Saving

Until you are out of debt, stop saving. In fact, if you have savings put aside, you should immediately transfer the full amount on to your debts. Your savings account will be making you far less interest than the money you will save by reducing debt at high interest. Here is a very basic example:
Savings @ 5% : £10,000 (Total interest earned in one year: £500)
Credit Card @ 21% : £10,000 (total cost of debt for one year: £2,100)
By putting your £10,000 on to your debt, you are saving £2,100 in interest charges at the expense of £500. It would be utterly foolish to leave your money in the savings account.

5. Consolidation Loans

Unless you have managed to get so deeply into debt that you can’t make minimum payments on all of your loans and cards, you should definitely not get a consolidation loan. If you are in such a bad state that you simply can’t afford your debts, a consolidation loan may be the only choice you have short of bankruptcy. Make sure you shop around and get the lowest rate possible. You should also try to keep the term down as it will become a part of your debt budget and you want to clear your debts as soon as possible.

4. Reduce Expenses

Frugal living can be very rewarding. Not only do you save money, but you learn a lot about survival and taking care of yourself. There are some very simple ways you can reduce expenses. For example, perhaps you go out on the town twice a week – reduce it to one night and have the other night in – you can still enjoy yourself but you won’t be paying bar prices for liquor. If you always buy brand goods at the market, start buying generic – you can save a lot of money doing this. You should also consider buying in bulk as bulk buying is almost always cheaper. Keep your eyes out for good deals and coupons. While this may seem like a difficult step, you will eventually find that you prefer to live like this because of the many rewards that come from exercising your brain in seeking out ways to reduce spending. A very beneficial side-effect to this (which I have personally experienced) is that you can dramatically reduce the amount of trash you produce by buying only what you need and buying in bulk. This can be looked at like a game. When I was following this plan, I found myself trying every week to reduce the amount of money I was spending. The less I spent, the better I lived (as a result of home cooking and pride in my efforts). Do not buy pre-packaged or prepared meals – you are paying a lot of money for nothing. You should also be aware that certain meats, like chicken, can go up in price dramatically when you buy skinned and boneless. It does not take much time to do this yourself.

3. Credit Cards

Credit cards can be as good a tool to get out of debt as they were to get you into debt in the first place. If you have a credit card with a low interest rate that is not maxed out, consider moving a higher interest debt (or as much of it as you can) to the card. The interest savings may seem low, but every penny counts. If you have maxed your cards out, the first thing you need to do is cut them up. You will not be using credit cards on this plan (and if you absolutely need one for important internet purchases, get a pre-paid credit card).

2. Budget

First of all, this budget will include all of your income and all of your expenses, but, it will not include any of your debts – they will go on your special debt budget. In this budget you should list your total income, your total outgoings, and your total surplus. As a part of this budget you should also include your required spending money. It is imperative that you stick to this budget – it is your lifeline. If you are not honest when creating it, you will find the whole thing collapses within one or two pay cycles. Include every expense.

1. Make a Debt Budget

This is different from your regular budget. Your regular budget will tell you how much money you have left after all other expenses have been paid, the debt budget will tell you what you owe and how much to pay on each debt. Transfer the total surplus from your budget to the debt budget. This is the most important money you have – it is the money that will give you financial freedom. Next you need to itemize all of your debts in order of highest interest paid to lowest interest paid. Pay the minimum amount required on all but the highest interest debt – this is the only time you should be paying minimum payments. Keep doing this until you remove the high interest debt entirely. Once this is done, put 100% of the money you were spending on that debt to the debt with the next highest interest; keep doing this until you have paid all of your debts off. This creates a snowball effect and you will be amazed at how quickly your debt is reduced. It is one of the best motivators for people working on debt reduction. You should remember to do this in conjunction with no.3 (transfer highest interest debts to lowest interest debts where possible).

Once you have paid all of your debts off, start putting the full amount of your debt payment money into savings and investments. You were already living without the money – why not keep doing so and save it for something special.

Six dangerous ways to borrow

Logbook loans
In a nutshell, logbook loans are loans secured against your car. Certain companies will lend to anyone who owns a car and won't carry out credit checks. These companies lend you a percentage of the trade value of your vehicle.

The lender will keep hold of the original documents associated with your car, including the V5 registration document (the 'logbook'), the MOT certificate and the insurance certificate.

You'll also have to sign a credit agreement and 'bill of sale', which will temporarily transfer car ownership to the lender. So this means the lender can take possession of your car if you can't meet your repayments - and your car will be sold at auction.

All of the money from the sale will go to the lender and you will still have to pay any difference between the sale price and the value of the loan.

To make things even more difficult, you'll be whacked with a whopping interest rate!

This is a really expensive way to borrow money and although it can seem like a quick and easy way to get some extra cash, don't do it. Logbook loan companies aren't regulated by the Financial Conduct Authority (FCA) – and they're not under any obligation to comply with the FCA's fair customer treatment guidelines.

Payday loans
Payday loans are cash advances on the salary you're expecting at the end of the month. Again, these can be tempting if you need cash in a hurry as it doesn't take long to apply. And again, no credit checks are carried out.

Typically, you can borrow up to £1,000, although some lenders will only allow you to borrow up to £750. Most lenders will charge you around £25 for each £100 you borrow – which can soon add up. If you borrowed £500, for example, you'd end up paying back £625. And that's providing you pay it off in the first month!

Lenders have made it ever so easy for you to simply 'defer' your repayment – in other words, postpone repaying your loan for a second month or more. And all the while, the costs are stacking up.
Again, the APR for these loans is astronomically high – in some cases, as high as 68,300%!

Loan sharks
A loan shark is simply anyone who illegally lends money and doesn't have a licence from the Office of Fair Trading (OFT).

So if someone promises to lend you all the money you want, no matter what, and doesn't carry out a credit check, steer clear. If you do borrow from a loan shark, it's unlikely you'll be given any paperwork so it will be difficult to keep track of exactly how much you owe.

What's more, you'll be charged an eye-watering interest rate and the loan shark could add extra charges whenever he/she decides to.

If you struggle to make your repayments on time, loan sharks tend to resort to violence and threats as a way of ensuring they get their money. You may even be pressurised into borrowing more money to help pay off the initial debt.

Pawnbrokers
Pawnbrokers allow you to borrow money, while you leave something valuable behind as security. You'll need to sign a credit agreement and you'll be given a receipt to prove you own the item. No credit checks will be carried out.

Once again, you'll be charged a hefty rate of interest on the loan and you risk losing your 'security' if you can't repay the money.

Credit card cash advances
Withdrawing cash from your credit card at an ATM is also a big no-no.

If you do this, you'll be charged a withdrawal fee of around 3%, with a typical minimum charge of £2-£3. Not only this, but you'll then be charged an eye-popping rate of interest – usually around 30%-35%.
And unlike purchases, there's no interest free period for cash advances so you'll be charged from day one. Eek!

Unauthorised overdrafts
An unauthorised overdraft is when you either go over your overdraft limit or fall into the red without agreement with your bank. This can quickly spiral out of control, with daily changes and other fees quickly mounting up.

Courtesy of Lovemoney.com

5 Basics to Help You in Becoming an Employed Millionaire

1. Create a Personal Expense Account

Open a current account just for household expenses, but avoid accounts with a monthly fee. Next, figure out roughly how much your monthly expenses—everything from electricity to entertainment—are, and put that exact amount into this expense account from your salary. Put the rest of your salary into your savings account and let it accumulate until you need it.

Not only have you just taken the guesswork out of saving, but you've also created a budget without the hassle of doing a monthly line-by-line accounting of what you've spent. If you have £100 left in your current account at the end of the first month, put the extra £100 into your savings account. If you have nothing left, cut back on expenses the following month.

2. Take a Salary Cut

The cash you don't see every month can only help you. You want to put as much of your gross salary into your works pension as is reasonable, especially if your employer matches your contributions. There are numerous tax benefits to this to list in one post. Needless to say, don't put less than 10 percent of your salary into your pension plan each month. Because of the tax benefits, your take-home pay will drop by much less than this. That seems like a lot, but trust me, you'll never miss it. And in 10 years, you'll be giddy every time your pension statement arrives. If you're under 30, put all your money in stocks. At 30 onward, start dripping this into cash, bonds, and other safe investments.

3. Become a Predator in These Unpredictable Times

During downturns or unpredictable times, emotions like guilt or fear can prevent you from making wise purchases. Are you thinking about making an offer on a foreclosure, or buying some cheap furniture or jewelry off Craigslist from a guy who's down on his luck? The herd would call you a vulture, but you're buying from a willing seller—not taking advantage of him. That guy (and even that bank) is just trying to make a clean start. So shrug off the stigma. The economy will thank you.

4. Hold Steady

For people who are a decade or more away from retirement, investing in the stock market has proved to be the best way to grow wealth. But most investors can't match the market's performance. Why? Because sell-offs freak them out. They tend to sell on the dips and then miss out on the climbs.

The market may feel like a yo-yo if you follow it day to day. But imagine that a boy is playing with that yo-yo as he climbs a steep hill. That metaphor best captures how the market has performed over the years, says Ric Edelman, the author of The Truth About Money. The gains have tended to be longer—and larger—than the dips. Edelman's koan: "Focus on the hill, not the string." In other words, stiffen your spine and keep buying through those dips. That's the only way to make the most of the climb.

5. Keep Your Perspective

You can't predict much in these times, but you can bet your last pound on two things: First, the economy soars and plunges, and second, nothing rises in price endlessly. The only people who seem to remember these truths and act on them—that is, those who can overcome the recency effect—have a lot of experience. People who've been in the game long enough, whether it's real estate or anything else, have seen the cycles and had the chance to curb their overconfidence.

So seek financial advice from people who not only are impartial (that is, not trying to sell you anything) but have also been there and done that—two or three times. That means working with financial planners, estate agents, and other professionals who have been in business 15 years or longer. With their help, you'll see the future.

7 Ways You Can Increase Your Rental Income

As a buy-to-let property investor, rental income is the lifeblood of your investment - here are seven ways you can increase your investments income:

1. Keep it fresh, clean and neutral

If a lettings agent has provided a disappointing rental valuation for your property you may be able to improve it by redecorating in neutral tones. Good old magnolia paint is available in great-value bulk buy tubs. Add interest and an ‘interior design’ look with wallpaper on one feature wall.

2. Let fully or part furnished

If there is a demand for fully furnished properties in your area you may be able to capitalise on this by adding furniture to your property. 

Even if they are not going to be included in the tenancy agreement, stylish accessories and attractive bedding from Sainsbury’s can help create a desirable image for your property for photographs and viewings.

3. Invest in your kitchen and bathroom

According to the latest poll by estate agency group Spicerhaart, the kitchen and bathroom are the most important areas in the homes in which to invest.

If your budget won’t stretch to a new kitchen or bathroom, you could consider replacing the unit doors or updating old tiles for a relatively cheap transformation.

4. Create a low-maintenance garden

Few tenants are interested in spending a lot of time maintaining a garden so provide a pleasant outdoor area that requires little mowing or weeding, to maximise your property’s appeal. Reduce or replace your lawn area with paving slabs and gravel, while maintaining greenness with shrubs in borders.

5. Review your rent on a regular basis

Set yourself periodic reminders to check your rent against others in the area.  If the average rate has been increasing, you will be able to increase yours accordingly. 

6. Charge for late payments

Add a clause to your tenancy agreement to provide for a charge for late payment of rent to increase your income from late payers, rather than wasting time and money chasing them. 

7. Fill void periods

Many landlords consider void periods a fact of life but effective management can help to keep the time your property is empty to a minimum. As soon as a tenant provides notice that they will be leaving, begin contacting past potential tenants who have made enquiries and don’t waste any time before advertising.  

Five Tips to Help You Build Your Wealth

1) Own your own home

Home ownership helps you build wealth in at least two ways. First, real estate is an asset with a healthy long term track record. Second, mortgage payments usually help you build equity and are therefore a form of forced savings.

2) Set goals, prioritize and focus

I figured out in the first year of my relationship that if you set goals, prioritize and focus your financial goals are far more likely to be achieved. I’ll repeat this. If you set goals, prioritize and focus, you WILL achieve your financial goals.

3) Invest in stocks

Over the long run, owners come out ahead under our system of democratic capitalism. To get maximum return on your money, you have to have some exposure to common stocks. Why? Making money on the appreciation and on the dividends will help improve your bottom line.

4) Don’t spend more than you earn

This is a no-brainer. If you have £100, but rack up debts of £500 on your credit card, then you’re in the red. Doing this over the long term is a recipe for bankruptcy. But if you got £100 and only spend £80, then your bank account is healthy and you’ll be happier, more in control if your life and better prepared to take whatever financial challenges come at you.

5) Pay off high interest debt

Usury sucks. Many credit card companies are usurious and attempt to engineer you into an agreement whereby your borrowing terms are stacked in favor of credit card companies. Other lenders like payday loan companies do essentially the same thing. In some of the arrangements, the borrower will be forced to pay upwards of 200% or 300% interest on their loans. If you’ve got high interest credit card debt or payday loans, pay them off immediately. Bite the bullet, sell some stuff, beg, do what you have to, but pay these types of obligations off immediately.

10 Famous Success Quotes I Live My Life By

“People who succeed have momentum. The more they succeed, the more they want to succeed, and the more they find a way to succeed. Similarly, when someone is failing, the tendency is to get on a downward spiral that can even become a self-fulfilling prophecy.” Tony Robbins

“Live as if you were to die tomorrow. Learn as if you were to live forever.” Mahatma Gandhi

“The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.” Vince Lombardi

“Really it comes down to your philosophy. Do you want to play it safe and be good or do you want to take a chance and be great?” Jimmy J

“You have to learn the rules of the game. And then you have to play better than anyone else.” Albert Einstein

“Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.” Harriet Tubman

“If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.” Jim Rohn

“If you genuinely want something, don’t wait for it – teach yourself to be impatient.” Gurbaksh Chahal

“If you want to make a permanent change, stop focusing on the size of your problems and start focusing on the size of you!” T. Harv Eker

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.” Steve Jobs

10 Great Tips for Success in Both Life and Business

Sometimes what helps us to be successful in our professional lives is not such a great idea in our personal lives — competition is a quality that comes to mind. At the same time, we all have a limited amount of time each day to do the things that we want to do.

Here's list of tips that will help you be successful in both life and in business.

1. Add Value
No matter what you do and where you go, you can’t go wrong with adding value. Simply put value is anything that people are willing to pay for. In your professional life, the more value you can offer the more money you can make. In your personal life, more value translates to closer relationships and strong personal growth. The best way to add value is to find the intersection between what people are willing to pay for and what service or product you can offer that is aligned with your values, strengths and goals.

How are you adding value to your employers and loved ones today? What can you do to increase your ability to add value?

2. Follow Your Passion
Reading numerous biographies on great people and from my own personal observations and encounters, I’ve realized that those who achieve greatness professional and personally follow their passion. The reason why great people are few and far in-between is because most people don’t even know what their passion is. For those that do figure out their passion, most of them don’t follow their passion consistently. This is one of the main reasons why people don’t reach their goals.

Do you know what your passion is? If not, what are you going to do to find out? If  you do know what you passion is, are you following it?

3. Be Extraordinary
If you do the same thing as everyone else, it’s hard to be successful. It is important to find the edge and then push past it. That is how you become noticed and get what you want. Whether it is money, meaningful relationships and/or a sense of personal accomplishment, the extraordinary person attracts them all.

How are you extraordinary?  If you feel just ordinary, what are you going to do to become extraordinary? For those who don’t know, you may want to check out articles on my blog and also How to go from Ordinary to Extraordinary.

4. Start Now
There are many factors that go into become a success in both your professional and personal life but the one factor that is required is taking action. Most people miss out on reaching their full potential because they never start. They are always preparing, planning and waiting for the best time to start. If I waited until I was ready, I would not have a coaching practice, a website, a blog, a workshop, etc. The stars rarely align and you will never be completely ready so just start now and adjust along the way.

Are you waiting for something before you start? What is your planning to doing ratio? What’s really the worse thing that can happen if you got started right now? If you are someone that’s just been waiting, stop reading this post and get started on what you have been wanting to do. This article will still be here when you get back.

5. Hunt for Good Mentors
People who “make it” usually credit their success to a mentor or a group of mentors who really helped guide them to get to where they are. Mentors have gone down the road that you want to travel and can guide you to get to your destination faster than if you went at it alone. If you want to be healthy, you would find a mentor who is already healthy. If you want to be rich, then you have to find someone who is already rich. What surprises me is how rarely people engage in mentoring relationships and those who do usually find mentors in only one aspect of their lives. If you want to be successful, be active about finding mentors that will help you achieve what you want. Jeff Goins has a nice short article on finding mentors.

Do you have a mentor in your life now? If not, ask yourself what barriers are preventing you from finding or establishing a mentoring relationship? If you do have a mentor, do you have one for the different aspects of your life (financial, health, professional, personal, spiritual, relationships, parenting etc.)?

6. Build a Support Group
While mentors serve as a guide with whom you review your past actions and plan your next steps, a support group are your companions that help you with during the actual execution of your plan. This may be in the form of a mastermind group or accountability partner where you keep each other accountable for your goals and to help each other deal with situations that may arise while you are on your journeys. It is extremely helpful to have someone you know that is willing to listen to your frustrations and self doubt and to encourage you and remind you of how far you’ve already come.

Who is in your support group?

7. Personally Know Your Finances
Numbers scare a lot of people. Start talking about assets, liabilities and net worth and people’s eyes just glaze over. If you are one of these people who run away from numbers, please stop running because you are hurting yourself. If you want to be financially independent, you need to know how to keep score. If you have your own business or want to successfully invest, finances tell you how well you are doing and reveal the health of a business. If you don’t understand finances, you have to learn. It’s easy once you get over the limiting belief that you are no good at numbers. For those interested in learning more, you may want to check out these personal finance resources.

Do you know you net worth? If you are bad at numbers, what specifically makes you believe that? How can you improve your financial intelligence?

8. Get Help
I have a tendency to try to do everything myself and in some ways it is good and in many ways it is bad. It is important to know and understand all aspects of your life and business but that does not mean having to do all the tasks involved in maximizing your potential in those areas. It is true that we can always learn new things and become competent in them but what is also true is that we are only given 24 hours each day and to live full lives, it is more effective to do what we do best and to outsource tasks that we’re not good at to people who excel at them. Delegating effectively takes trust and the ability to clearly communicate what you want. For those that want to outsource, Elance is a nice way to find some quality freelancers.

How are you spending your time? Is it doing things you are awesome at? If not, what are you doing that you can outsource or delegate so you can devote more time doing what you’re great at? What’s stopping you from outsourcing or delegating?

9. Learn Sales
Many people cringe when they hear the word sales. “I would never be in sales, that’s a sleazy job.” It is exactly this type of thinking that stops people from being their best. Sales is nothing more than persuading someone of something. When you are looking to get a date, you are selling. When you are interviewing for a job, you are selling. When you are trying to persuade your spouse or kids to go to Europe for your family vacation, you are selling. In a professional setting, sales is paramount and the lifeline for any business. If you want to get the most out of life and business, learn the skills for effective selling. I am beginning a series of blog posts on How to Sell on my blog and you can learn from other successful sales trainers by reading material from Zig Ziglar, Brian Tracey and Og Mandino.

When you hear “sales”, what associations come to mind? Are they positive or negative? Do you know the how to sell effectively? If not, how do you plan to learn?

10. Be Resilient
Things rarely work out the way you planned and there will always be distractions and stumbling blocks that you have to deal with when you are on your road to success. The key point to remember is to persist and to develop the courage to move on even when everyone around you is telling you it is ok to give up. This does not mean stubbornly holding on to your original plan but rather continuing to pursue your goal as long as the reasons for doing so is still valid (Make sure you know the “Why” of what you want). When everything seems to be going wrong, keep in mind that “the road to success is paved with a thousand failures” so each failure actually brings you closer to where you want to be. If you have trouble being resilient, check out the 6 Effective Ways to Be Persistent.

How often to you quit because things got tough? Would you descrive yourself as an unshakeable optimist? Do you view problems as opportunities or warning signs? How do you view failure and are you making sure that you don’t make the one mistake people make when learning from their mistakes?

This is not an exhaustive list, but it does provide a good starting point. I would love to hear what tips you have found especially useful in both life and business in the comments section.

From Lifehack.org

10 Tips for Buy to Let Investment

Buy to let property is still a popular long term investment. Property can often appear simpler to understand than stocks and shares. Here aree 10 tips to help you on your way to your first buy to let property.

1. Research the market 
Ensuring you are familiar with the pitfalls as well as the benefits is essential. Speak to people you may know who are already experienced buy-to-letters, and read guides on the subject such as our beginners guide to property investment.

2. Choose a location 
Choosing a property for buy to let is all about the location. Tenants, unlike buyers can move out at a months notice and will not hang around for a property that does not service their needs. Depending on your target market you will need to consider the proximity to local schools, transport links, night life and so on.

Research what competition you will face by using sites such as Prime Location or Right Move. You will be able to see what the going rent is for certain areas and, over time, see which properties take longer to rent out and which areas are popular.

3. Crunch some numbers
The excitement of looking around houses can take over all too quickly. Put pen to paper before you view properties and write down the cost of the house and the likely rental yield. Buy to let lenders often require a deposit of between 15% and 30% and the rental income to cover 125% of the mortgage repayments. Some lenders may accept less but at the expense of a low interest rate.

It is also important to have a contingency fund for when the property is not being rented and mortgage repayments must be met, as well as repairs which ought to be fixed quickly else your tenant will vote with their feet.

4. Shop around
Remember, this is an investment property – the head should always rule. Take your time to negotiate a good deal. By all means visit your high street bank for comparison but there are a wide range of finance options available for purchasing a buy to let property these days, including dedicated buy-to-let mortgage brokers to help you get the best deal.

5. Target your tenant
Novices are often quick to see themselves living in their properties. Remember you are not the tenant and put yourself in their shoes. A student will require functional accommodation, easy transport to their campus, perhaps a range of local shops as they may not yet run a car. Young professionals may require something more stylish, perhaps in a location with access to night life and good links to road and rail. A family will need space and to be local to schools.

6. Don't be over ambitious
Sure there are many who have made their millions from property, but experts suggest the days of double digit price rises are over. Focus on the long term and allow the rent to grow over time to help fund additional property investments.

7. Consider looking further afield
Most buy-to-let investors only consider properties near to where they live and it’s easy to see why – you’ll better know the areas and should anything go wrong you are local. That said your town may not be the best investment despite your inside knowledge. There may be other towns in need of rental property which you should seek out. Many buy to let property owners employ the services of an agent to handle tenants meaning that being local to the property is not so necessary.

Investigate towns and cities with good commuting links, or is a university town. Using a site such as OnOneMap can help quickly locate property near to these elements.

8. Negotiate
You are in a strong position as a buy-to-let investor being chain free. Vendors are often keen that what can be a lengthy transaction be as swift and smooth as possible. Discounts can be negotiated in order to generate a quick sale.

9. Know the pitfalls
Don’t ignore what could go wrong. How many months can you afford to pay the mortgage should the property sit empty for some months. Will you require your money out quickly? The property market has been strong for some time, if there were to be a drop in value could you ride it out? A simple rule of thumb is to factor in the property sitting empty for two months of the year to provide a buffer. If you are unable to cover the cost of an major repair not covered by insurance such as the heating system don’t invest yet.

10. Consider how hands-on you want to be
Buying a property is only the first step. You will need to find a tenant, deal with enquiries and collect payment. It is possible to do this yourself but if you’ve a full time job you may prefer to hand the property management to an agent. For a percentage fee they will find tenants, deal with problems and will have relationships with plumbers, electricians etc. should repairs be required. You can make more money by renting the property out yourself but be prepared to give up weekends and evenings on viewings, advertising and repairs

6 Tips For Picking and Buying Shares

Tip 1 - Know the kind of investment you want to make

Are you looking for capital growth - do you want shares whose price is going go up strongly or are you looking to create an income through shares which pay high dividends? They both require you to take different factors into account when choosing a company to invest in.

Tip 2 - Understand the risk you are taking with your money

There is no such thing as a sure-fire winner. Share prices can go down as well as up and investors may get back less than their original investment. Past performance is not a guide to future performance.

Before buying shares you need to decide what level of risk you are prepared to take. Are you looking for shares that that don't carry too much risk or are you prepared to accept higher risks in return for potential higher returns

Tip 3 - Understand how the company makes its profits

What does the company do? The more you understand how the company operates the better informed you'll be and you'll be able to make sound investing decisions about whether those shares are a good home for your money or not.

When you invest in shares you buy a piece of a business. You literally become a part-owner. So its important as an owner to know who is managing your business. Its your money that you are trusting them with!

Tip 4 - Beware of trying to time the market

You should always check the recent price performance of any share you are thinking of investing in - that stands to reason. But don't just look at what the price has done. Try to work out why it has done what it did. What news has impacted on the share price What is the stock market sentiment towards the share.

There are always two sides to a stock market story. A share that is low in value may represent a good buying opportunity OR it may be low in value because the company is losing money. A share that is rising may rise further as the company makes greater profits or it may be overpriced and due for a correction that will see it fall back.

Tip 5 - Don't put all your eggs in one basket

Alright it is a cliche. But cliches become cliches for a reason! Investing in a range of companies will help reduce your overall level of risk. Lets be honest, not every investment you make is going to be a winner. Spreading your investment around means diversifying into different stock market sectors as well; having all your investments in several different companies that operate in the same sector is almost as risky as putting all your money into just one company.

However don't spread yourself too thinly. Structure your portfolio of investments to take account of how much money you have to invest. Remember to take account of your dealing costs. They can eat into any profit you may make. The right number of companies in which to invest is not a precise science and depends on your individual circumstances.

Tip 6 - Know how your share price can be affected

Share prices can be like horses - easily spooked! Many things will affect the value of the shares you own. Stockbrokers and investment banks employ teams of people to analyse them whereas you're on your own. But there are plenty of obvious things you can be doing to understand whats likely to move your shares up or down.

Keep an eye on the news and not just the financial pages. For example a high oil price might be good news for oil producers but it'll hit transport businesses. A cold winter might be good for electricity providers but bad news for retailers.

You may also need to watch whats happening overseas. Many UK companies now have some or even most of their business operations overseas; so you need to know whats happening in the countries those businesses operate in.

6 Tips for Simple and Successful Marital Finances

I think we can all agree that finances play a key role in our married lives. It’s the need to provide a quality life for our family that drives most of us to work, and we know that the way we spend our resources directly affects our lifestyle now and down the road.

Money stuff is important.
That is not to say that money is the center of life or that managing the family finances must be an oppressive burden. In fact, financial success is really just a matter of making good choices consistently.

The number 1 rule is to keep it simple.
These tips aren't earth-shattering and they're not original. In fact, it is the same advice we have heard from our grandmothers our entire lives. It’s not complicated, but it's effective.

6 Tips for Simple and Successful Marital Finances

1. Build a basic budget…together

The two key components of a meaningful family budget are: (1) to proactively plan ahead for how you will spend your money and (2) to create it with your spouse.

You and your spouse must create your budget together and you must agree to follow the same budget. When you take this approach, a budget can become a surprisingly valuable tool in your marriage. Real communication is needed to formulate a plan, and real trust is developed when you both stick to it out of respect for each other.

2. Work together from a single account

Do you and your spouse operate with separate bank accounts or a “yours, mine and ours” approach to your family finances? I would strongly encourage you to consider simplifying your life by consolidating everything into a single bank account. Not only will it be easier to keep track of, but you will benefit by shifting your mindset to one of unity with your money. As a bonus, you can expect that the openness and communication required to make a single account a success will carry over and enhance other aspects of your married life.

3. Eliminate your debt (very important)

None of us enjoy paying the car finance company or student loan office each month. In fact, I think we can all agree that it sucks to have your hard earned money spoken for before you even receive your salary. So, if we all hate the payments, why do so many families have them?

It’s a matter of mindset. If you are fed up with being normal (i.e., deeply in debt), you can shed the debt and achieve financial freedom. You set the priorities, and you make the decisions that will allow you to ditch the debt. My wife and I only have a mortgage as debt - our credit cards are paid off each month and we don't borrow a single penny for expenditure, and you know what? It's absolute bliss.

4. Stick with simple (and effective) investments

As a rule, if you don’t fully understand something, you should not invest in it. If you chase the latest hot trend and buy what everyone is recommending, you are almost assuring yourself of poor returns.

Instead, take a simple approach and focus your investing in areas with a long track record of success. Personally, I think it is tough to beat a diversified mix of mutual funds for retirement investing. They are not sexy or flashy. But they are very effective, low in cost and easy to understand. That’s a formula for long-term success. There are even no fee mutual funds on the market now that have given consistent and reliable returns - but don't forget to take advantage of your Share ISA to reduce your taxes.

5. Enjoy the simple things in life. Live within your means

At the end of the day, it really does come back to living on less than you make. I hope you make a lot of money and love what you do to earn it. However, the critical point here is that you really don’t need a ton of money to be financially successful.

The key is contentment. Quit placing your value in material things and trying to maintain a high-cost lifestyle. When you learn to appreciate your family and value the simple pleasures in life, your need to impress the neighbors really does start to fade.

6. Remember to pass it on

In my opinion, the best part of simplifying your financial life and finding contentment with your lifestyle is the impact it has on your relationship with your spouse and the example it sets for your kids. When you break the cycle of debt dependence and fights about money, you set the stage for financial success for generations to come. You literally have the ability to change the future shape of your family tree.

Were these suggestions brilliant, original and completely unexpected? Of course not. I’d venture to guess that you knew these things, but you may not be living them. The key is to take action.
Simplify your financial life and invite new success with your money and, most importantly, your marriage.

10 Warren Buffet Quotes That Should Guide Your Investment Decisions

If you are interested in the stock market, there isn’t a chance that you haven’t heard of Warren E. Buffet. He’s the second richest man in America with a net worth of $44 Billion - that's with a capital B!

Although very rich, Warren lives a “simple” life. He still drives himself to work every day and dines at Gorat’s, a standard, local steakhouse in Omaha. He is widely known for  being courteous, personable, and humble. Obviously, Warren Buffett is a genius when it comes to  investing and in life, so it pays to listen to his words. Here are ten famous Warren Buffet quotes that we can learn a ton from:

1. “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.” Sounds pretty simple, right? But when you’re buying or selling stocks, never losing money can seem impossible because prices fluctuate all the time. Warren, though, believes in buying the value of a company and not its stock price. He buys value at the right price, he doesn’t speculate or gamble. He makes sure that he knows a company’s value and that it will far outweigh the price that he paid for, and that is how he sticks to rule No.1.

2. “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.” Warren is a patient man. He would never chase prices or force any investment. He waits for the right moment (dictated by either price or market condition) to pounce, and pounce he will. This requires a great deal of discipline, and that is what separates him from the majority of unsuccessful investors. Indeed, patience is a virtue.

3. “Never invest in a business you can’t understand.” This Warren Buffet quote is probably an offshoot of rule No.1. He will only play a game that he is really great at to ensure that his chances of losing are slim. Understanding a business really well can help you smell trouble from miles away. Also, you can never have conviction in something you do not understand, and conviction is what enables you to pounce on a company when the time is right.

4. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Warren would always put more value in a great company with great products and management than a mediocre one that can be bought on the cheap. A company’s stock price moves with the whims and emotions of traders and speculators, and is never a good indicator of value.

5. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” This is a great criterion in choosing a company to buy. Only buy stock in a company that will thrive, grow, and excel in the foreseeable future regardless of stock price. I only know one kind of company that fits that description, and that is the great kind.

6. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Warren knows that the stock market is full of folly. He knows that emotions like hope, greed, and fear dictate stock prices rather than logic and value. When people are panicky or fearful (as in a bear market) he takes that chance to buy great companies at cheap prices. As long as he does his research and knows the real value behind a company, he doesn’t get scared of its price fluctuations.

7. “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” This Warren Buffet quote shows his humility and his infinite thirst for learning and improvement. He doesn’t have a huge ego; he doesn’t think of himself as superior than anybody else out there. Nor does he think that he knows everything.

8. “Our favorite holding period is forever.” Warren plays for keeps. He doesn’t buy a company that he wouldn’t hold or manage until a very long time. Making amazing gains, like his, takes time. Start young and go for the homeruns.

9. “Only when you combine sound intellect with emotional discipline do you get rational behavior.” Investors need these two ingredients to successfully parlay the investment game. The sound intellect comes from doing your homework. It is your research and analysis of a company’s business and value. Discipline on the other hand, refers to your ability to wait for the proper price to enter. You shouldn’t chase prices in bull markets and you shouldn’t get scared in bears. Practice emotional discipline and take your investing to the next level.

10. “Without passion, you don’t have energy. Without energy, you have nothing.” Be passionate in what you do and do what you are passionate about. Passion will make you go to the ends of the earth to see a dream fulfilled. It will be your fuel in your journey. It will make you unstoppable. It will see you through when times get tough, and it will make life so worth living.

Took onboard these inspirational, time-tested and proven quote and they'll help both in life and in investing.

7 Secrets to Building Your Wealth

Here are my seven secrets to help you in building wealth for your future:

Secret 1: Start saving now

Spend only £9 out of each £10 earned. By saving one-tenth, your bank balance will start to increase, your debts will reduce and you will build a capital base for worthwhile investments in the future. You need to pay yourself first, before even paying expenses - so always put this 10% away into a savings accounts immediately.

Secret 2: Control your expenditures

You need to budget your expenses. No matter how much money you earn each month, make sure you have enough money to pay yourself first (remember, save 10%) and can afford the necessities - food, shelter, clothing, etc. Wealth building requires discipline and self-control

Secret 3: Make your saving money multiply

Once your savings build up, start investing that money so that it works for you. Look into mutual funds, stocks and property. At the very least, put it in an ISA and shelter it from the tax authority. Your money should work for you.

Secret 4: Guard your money from loss

Invest your money where the principal is reasonably safe and where you can get a good return. The first rule of building wealth is never to lose it!

Secret 5: Own your own home

This is simple. You should own your own home rather than renting and handing over money to a landlord. Owning your own home gives you a sense of pride and can enrich your life.

Secret 6: Ensure a future income

One day, you current earned income will STOP! Therefore, you must create wealth for your future. Contributing to a pension and investing in property are great long-term wealth creation strategies.

Secret 7: Increase your ability to earn

You can increase your ability to earn by improving your skills, experience and paying down debt. Becoming more wiser and skillful will help improve your positioning in life.

Top 8 Tips for Investing Your Income for Income

How do you generate a reliable income when interest rates are stuck at all-time lows?

Here are 8 tips to help you develop income growth from investments:

1. Look for sustainable long-term dividend growth

Investing in businesses when the growth potential is not reflected in the valuation of their shares not only reduces the risk of losing money, it increases the upside opportunity.

2. Inflation always matters

Always bear in mind the detrimental effect of inflation. Bonds offer higher yields than cash but returns can be eroded by inflation. Investment in property or equities are perfect vehicles to help achieve an income that rises with inflation.

3. Look to International diversification

A small number of UK companies account for approximately 40% of dividend payouts in the UK, whereas over 100 companies in the US, for example, can provide an opportunity to increase the longevity of your dividend growth.

4. Patience is a virtue

Investing for income is all about the compounding of returns for the long term. As a general rule, those businesses best placed to offer this demonstrate consistent returns on invested capital and visible earnings streams, so put your money in and leave it to grow.

5. Reliability is the most important

Choose sectors on the equity markets that do not depend on strong economic growth to you deliver attractive returns.

6. Growing cash flow

Look for companies with money left over after all capital expenditure, as this is the stream out of which rising dividends are paid. The larger the free cash flow, relative to the dividend pay-out, the better.

7. Dividend growth

In the short term, share prices are buffeted by all sorts of influences, as the last few weeks have been testament to, but over longer time periods fundamentals will always shine through. Dividend growth is the key determinant of long-term share prices – the rest is sentiment

8. Take a cautious approach

Be cautious of companies that pay a high dividend because they are likely at the end of their current growth cycle.

5 More Tips to Help You Succeed

If you have the feeling that success is elusive, then it might be time to try something new, so here are five more tips to help you find success in everything you do.

1. Forget about luck, take control

Though some things happen by chance, waiting for good things to happen is no sure way for success. When you live by chance, you live in fear and anxiety. But when you live by intent and capability, it doesn't matter what is happening, because YOU are in control.

2. Stop fixating on failures, they are just lessons

For someone committed to their ideals and dreams, there is no such thing as failure. If he falls down 100 times, he learns 100 lessons bringing him closer to his dream. If you commit yourself like this to creating what you really care for, your mind will work wonders in helping you achieve.

3. Start working with clarity

What every human being needs is clarity, not confidence. If you want to walk through a crowd and your vision is clear you will see everyone, and you can walk through the whole crowd without having to touch anyone. If your vision is not clear but you have confidence, you will just walk over everybody, which will only hurt those around you and your chances for success.

4. Be flexible and learn from those you dislike

Remain fluid and adaptable and you can change with grace. Learn from the personalities and situations you dislike and you will ensure you remain open and adaptable.

5. Forget about yourself and focus on the world at large

There is no need to actively aspire to greatness, you just need to focus your life on concerns that are bigger than you, and you will always be a great human being. Dropping this "What about me?" perspective and focusing on being the best person you can be, you will naturally look at "What you can do for the world around you" and so will naturally enhance your capabilities to match.

Top 10 Things To Achieve Success

10 things that hungry and unstoppable people do to achieve success: 

1. Never use excuses

We all have two voices. There’s the voice that tells us to work hard, to focus on the task at hand and to finish it before we move on to the next. And to finish it well.

We also have the voice that tells us to take a break, to think about what’s on TV, or to visit a site that we like to visit that entertains us – Facebook anyone?

In life we’re the victim of injustice from time to time. It could be a promotion that we deserve but don’t get. No matter who we are, we’re going to be treated unfairly at some point. We can either feel sorry for ourselves, or push forward and put it behind us – even use it as motivation.

  

Listen to your excuses. Understand why you have them. Then figure out how you can use them for good.

2. Make it about others

Material things can be a motivator and a reward, but they can’t be the ONLY motivator. The truly successful in life always get there because they created change in the lives of others, not just their own.

If something drives you that is greater than just the ‘ends’, you're going to work harder, longer, and you're going to give more of ourselves to our project. 

3. Put in the hours

People who have achieved true success in their lives have worked for it.

This might come at the detriment of other areas of their lives, such as family or social life, but their mission is first and foremost. Until it’s complete, everything else comes second. There’s literally no substitute for hard work.

4. The greatest commodity

Energy is a huge commodity that is often not talked about. I’m talking about our own energy levels. The fact is that the more energy we have, the easier it is to focus, and the higher the quality of our work is.

  

Keeping physically fit gives us greater blood-flow to our brain, enhanced alertness and improved focus. Make training a routine part of your life and increase your chances at success – in every meaning of the word.

5. Principles

What are your principles? All of us should have them, know what they are, and live our lives by them. Identify what principles you have that guide your life through tough times, and when things couldn’t be any better. They shouldn’t change, and at your core, neither should you.

6. Wavering, yet unbreakable faith

We all have moments of doubt. Even the best of us question if our dream is going to come true. The one thing that separates the truly successful from those who never reach their true potential is an unbreakable faith in the fact that what they’re doing is right.

Even if they have moments of doubt, they’re soon quelled, where other’s listen to that doubt and let it eat them up and finally they quit.

7. A reason

Many of the greatest accomplishments in the world were accomplished by insecure men and women, people who had something to prove to others. A desire to elevate their status and create change that was so strong, that failure is simply never and option.

Understand why you have that reason to work when others sleep, to sacrifice a safe life for a risky one with no ceiling. Find it by asking why, and not stopping until you hit your core, emotional reason for wanting to change your status, or the status of others.

8. Persevere when others give up

How does the guy who quit on his dream know how long it would’ve taken him to become a success? He doesn’t. None of us do. It could be tomorrow, or ten years from now.

What separates a lot of the great people we read about from those we’ve never heard of is the fact that they never quit. Quitting was never an option. They only stopped when they reached their dream. And even then, they created a new mission. 

9. Study your craft relentlessly

Being a drone that simply goes through the motions is no way to achieve greatness. Assuming success is something you want, you have to study your craft, whatever it may be. Learn it inside and out. Build a wealth of knowledge. It’ll help you create great, inspiring, and unique work.

10. Risk

No risk, no reward. Yes it’s an over-used cliché of a phrase, but it’s true. Those who have achieved real success have often risked the most to get there.

  

Your big, audacious dream might be to marry the girl of your dreams and have a family with her. Your risk might be to leave the career that you love in order to support her and family. Your dream might be to help millions live longer, healthier lives. Whatever your dream is, give it enough of a chance to be realized.

  

Find your dream. Then risk everything to get it.