Has the economy got you worried?

Hey Friends,

Times are tough out there and many people are hurting right now.

If you want to understand what got us in this mess read on, I’ll explain.

When you and I want to buy a home, we usually go to a bank and get a loan.

Let’s say your loan is at 6% annual interest. The bank sells the loan to bigger Wall Street type institutions and keeps a small fee for originating the loan.

Now these institutions bundle these mortgage loans in batches of $100 million, and sell them to even bigger institutions like hedge funds, retirement funds, etc., and they keep a small fee for that. At the end, the bigger institution may receive a 4% return on their money, while the middle men get a smaller fee, as they no longer are holding the mortgage. They basically get paid a commission for their involvement. And the more loans they process, the more money they make, with almost no risk.

Herein lies the problem: When the homeowner can’t afford to make the payments (because they never should have gotten loans as big as they did in the first place) all the institutions and the banks don’t get paid. This causes a cash crunch, which now extends to every person and business on the planet that isn’t prepared for a downturn in the economy.

The government steps in and buys all the “bad” in-default mortgages from the institutions in hopes that it will free up their cash. This is done so they’ll start lending to homeowners and businesses again, so it can be business as usual. Unfortunately, this is a temporary fix.

We must get back to lending people money based on their true ability to pay it back, and not based on the hopes and dreams that the real estate market or stock market will continue to go up without a downturn. It’s never happened before and it’s not going to start now.

With this said, what can you do now to make sure you stay strong and thrive in this market?  You must understand that if you are focusing on the negative aspect of what is happening in the market and the economy, you cannot be focusing on how to thrive in these times.

More millionaires will be made in the next two years than in the last ten, and you too can learn how to thrive despite the economy.

It’s those who learn how to think and act differently who will prosper. To learn more about how to take charge of your thinking, check out my FREE guide below.

John

Why is money important?

Take any group of 100 people at the start of their business or working career and follow them for 40-50 years until they reach retirement: Here’s what you’ll find, according to the Social Security Administration:

  • Only 1 will end up rich
  • 4 will be financially comfortable
  • 5 will have to continue to work because they have to
  • 36 will be dead
  • 54 will be dead broke and have to depend on the government, friends, family or charity to survive

I know it’s an odd question, but which one will you be (or are you already)?

What is the real difference between these people?

Some have college degrees and others have little or no education.

There are a few millionaires who were born wealthy, and there are many who do it on their own, the old fashioned way — they earn it.

There are millionaires in every country in the world, regardless of location or circumstances.

The truly wealthy people, those who have money, health, great relationships and a spiritual connection, all have one thing in common:

They understand that in order to achieve what they want, they must learn to think and act in certain ways.

If you are ready to have more of everything in your life right now,  sign up below for my FREE guide.

To your success!

John

The Laws of Earning Money

If you want one year of prosperity, grow seeds. If you want ten years of prosperity, grow trees. If you want a lifetime of prosperity, grow your self-worth.
— Chinese proverb

What is money, really, and what are the laws of earning money?

This happens to be one of my favorite topics because money is easy to come by if you do a few things right, and it will forever elude you if you do a few things wrong…

…To finish reading, download this  chapter The Laws of Earning Money with my compliments, from my  book- Having It All: Achieving Your Life’s Goals and Dreams.

What a difference a century makes!

This will boggle your mind, I know it did mine!

The year is 1907. One hundred years ago.

Here are some of the U.S. statistics for the year 1907:

The average life expectancy in the U.S. was 47 years old.

Five leading causes of death in the U.S. were:
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke

Only 14 percent of the homes in the U.S. had a bathtub.

Most women only washed their hair once a month, and used Borax or egg yolks for shampoo.

The average wage in the U.S. was 22 Cents per hour.
The average U.S. worker made between $200 and $400 per year.
A competent accountant could expect to earn $2000 per year.
A dentist made about $2,500 per year.
A veterinarian made about $1,500 per year.
A mechanical engineer made about $5,000 per year.

More than 95 percent of all births in the U.S. took place at home.

Ninety percent of all U.S. doctors had no college education. Instead, they attended so-called medical schools, many of which were condemned in the press and the government as “substandard.”

Marijuana, heroin, and morphine were all available over-the-counter at the local corner drugstores. Back then pharmacists said, “Heroin clears the complexion, gives buoyancy to the mind regulates the stomach and bowels, and is, in fact, a perfect guardian of health.”

Only 6 percent of all Americans had graduated from high school.

There were about 230 reported murders in the ENTIRE United States!
Only 8 percent of the homes had a telephone.

A three-minute call from Denver to New York City cost eleven dollars.

There were only 8,000 cars in the U.S., and only 144 miles of paved roads.

The maximum speed limit in most cities was 10 mph.

Alabama, Mississippi, Iowa, and Tennessee were each more heavily populated than California. With a mere 1.4 million people, California was only the 21st most populous state in the Union.

The tallest structure in the world was the Eiffel Tower.

The American flag had 45 stars. Arizona, Oklahoma, New Mexico, Hawaii, and Alaska hadn’t been admitted to the Union yet. The population of Las Vegas, Nevada, was only 30!

Sugar cost four cents a pound.
Eggs were fourteen cents a dozen.
Coffee was fifteen cents a pound.

Crossword puzzles, canned beer, and iced tea hadn’t been invented yet.

There was no Mother’s Day or Father’s Day.

Just try to imagine what it may be like in another 100 years. It boggles the mind!

How to Become Fulfilled and Rich

In Getting Rich Your Own Way, Srully Blotnick points to a study in which 1,500 young people were divided into two groups.  Group A consisted of people who were embarking on a career for the money.  Group B consisted of people who chose their career because that’s what they loved to do.  The number of people in Group A outnumbered the people in Group B by a margin of 5-1.

Researchers followed these two groups for 20 years.  At the end of 20 years, 101 of 1,500 participants were millionaires.  However, the amazing thing is that all but one of the millionaires came from Group B.  Only 1 out of 1,250 people from Group A became wealthy, even though all of them made money pursuing their primary career objective.  Yet 100 of the 250 from Group B became wealthy by simply pursuing what made them happy.

If you are not trading your life for what you truly love, it may be time for a change.

You may also want to check out my FREE guide below. It will surely expand your mind about what it really takes to have a life of total abundance.

All my best

John