Disqus - Latest Comments for AJC @ 7million7years

Re: Multiple Income Streams is the ONLY way to Achieve Extreme Wealth

AJC @ 7million7years — Tue, 18 Aug 2009 18:40:11 -0000

Thanks for the clarification: yes, I agree the Number will be different for everybody.

BTW my Number NEVER changed ... I ended up exceeding it, but that was plain, dumb luck ;) Once you reach your Number - unless you Life's True Purpose has REALLY changed - stop chasing more money!

Also, I agree with Somebody Else's Wife - I never agree with mine :) - in my experience multi-millionaires do exhibit restraint ... what I once thought was delayed gratification, but which I now understand to be more fundamental: Respect For Money.

Sounds dumb, but isn't: http://7million7years.com/2009/06/24/finally-re...
.-= ajc @ 7million7years´s last blog ..The Myth of the IPO =-.

Re: Multiple Income Streams is the ONLY way to Achieve Extreme Wealth

AJC @ 7million7years — Tue, 18 Aug 2009 09:49:34 -0000

"[AJC] and I may have a different definition of wealth"

Thanks for the mention! But, I am curious: what IS your definition of wealth?
.-= ajc @ 7million7years´s last blog ..The Myth of the IPO =-.

Re: Debt Reduction Methods and Philosophies: Snowball, Avalanche and More

AJC @ 7million7years — Mon, 01 Jun 2009 08:29:29 -0000

"Long term fixed low interest debt is as much a hedge against inflation as buying commodities or TIPs."

Brilliant! :)

Re: Debt Reduction Methods and Philosophies: Snowball, Avalanche and More

AJC @ 7million7years — Sat, 30 May 2009 08:40:03 -0000

Great point, Flexo! That's why I created a new method, called the Cash Cascade, which is designed to increase your net worth, not just pay off consumer debt.

We are all familiar with the concept of 'good debt' and 'bad debt', but most don't realize that this is only a way of avoiding getting INTO (bad) debt ... once we have acquired the debt, then we need to start thinking of debt simply as 'cheap debt' or 'expensive debt'. The Debt Avalanche is clearly ideally suited to attacking the 'expensive debt' first.

However, there is another part to this: our ultimate financial goal is usually not to become 'debt free' (although, that may be a tactic that some would choose ... not me!), rather to achieve financial independence, or wealth, or [insert your life-supporting goal, here], and often a part of the strategy will be to acquire SOME debt in order to get there while you are still young enough to enjoy life e.g. you might decide to take out a mortgage on an investment property, or a margin loan on stocks, or a small business start-up loan, etc.

Clearly, it would make NO sense to delay investing just so that you can pay off relatively cheap debt (e.g. student loan, mortgage, etc.) i.e. just to take out more expensive debt later (e.g. the small business loan) ... instead, leave the cheaper loan in place and "pay off' the more expensive loan by not taking it out in the first place!

Once you think about debt and investment as 'cheap' v 'expensive', it becomes easier to apply the principles of the Debt Avalanche to both debts AND investments :)

http://7million7years.com/2008/12/09/the-cash-c...

Re: Is Your Home an Asset or Liability?

AJC @ 7million7years — Sun, 22 Feb 2009 18:06:35 -0000

Robert Kiyosaki may be technically wrong, but he is absolutely correct ... in fact, RK - and, this specific piece of advice - was one of the key catalysts to launching me on my own journey of financial self-discovery that took me from $30k in debt to $7 million in the bank in just 7 years. Truly.

Re: The Right Size for Your Emergency Fund

AJC @ 7million7years — Wed, 13 Aug 2008 11:30:30 -0000

I think that the right size for a fund that handles true emergencies is ZERO. Anything else is a provision, that you should be able to plan for ...

After all, is it worth $8k a year for you to 'insure' yourself against emergencies with cash on hand, when there are so many other ways to do it that can actually MAKE you money?

Here's some ideas just published today: http://7million7years.com/2008/08/13/more-on-em...

Re: Passive Income: Real Estate? Blogging? I Don’t Think So

AJC @ 7million7years — Wed, 22 Jul 2009 09:02:38 -0000

Flexo is 100% right! If you disagree, try and go on an extended vacation and NOT: (a) answer your cell phone, or (b) check your e-mails, or (c) worry about [insert "passive income" source of choice] ;)

Re: Passive Income: Real Estate? Blogging? I Don’t Think So

AJC @ 7million7years — Thu, 05 Jun 2008 13:01:36 -0000

I agree to a point; nothing is passive in that it will eventually die if you don't keep tending it.

An example that many like to give is MLM (BTW: I'm NOT involved in any MLM's) - after building up your downline you sit back and reap the benefits; or so the story goes.

This is certainly true for one of my friends ... he makes $1 Mill. or so a year and doesn't even attend meetings anymore. But, what if your downline starts to deplete? The MLM's products become outmoded? The company changes their business model of goes under?

But, if I can earn $250k ++ a year doing virtually nothing - move to another country for 4 years, leaving my businesses and real-estate to others to manage and run ... kick back and write a blog about my experiences ... that's passive enough for me!

Re: Maimonides’ 8 Levels of Charity

AJC @ 7million7years — Sat, 17 May 2008 00:10:40 -0000

Well, I'll be! I write about my own $7 Million Dollar Journey on my blog, but I have JUST launched a companion blog as a more direct way to 'give back' ... I think it qualifies as a Maimomedes #1 !!

You see, my new site ( 7m7y.com )aims to 'give back' more directly: it will chronicle the journey of my 7 Millionaires ... In Training! I am screening for suitably 'poor' applicants right now (they just need to have the need and desire to 'make it').

Maimomedes was right ... something about teaching a person to fish ... :) Thanks for the post!

Re: Most Wealthy Individuals Earned, Not Inherited, Their Wealth

AJC @ 7million7years — Fri, 18 Apr 2008 18:21:19 -0000

Four issues:

1. The amount is actually very small: $500k is not wealthy ... even add personal assets and bring that to $1 Mill. and we are talking about a 'safe' withdrawal level of perhaps $40k a year.

2. The truly wealthy were surveyed in a very recent book that shows that most Ultra-High-Net-Worth and Mega Rich ($5 Mill. to $25m+) have about a third of their assets in a business; another third in real-estate (including own home/s); the final third in stocks etc.

3. I don't consider any of these ideal benchmarks to be aiming for, they are just how the 'mediocre average' of multimillionaires happen to have ended up ... fortunately, for most of them this kind of 'mediocrity' is good enough ... otherwise they wouldn't be included in the surveys!

4. I can understand how those who made their own money would find the stress levels much lower and the happiness levels much higher: they have achieved a major (probably, lifetime) goal!

I can assure you that I will be much happier having made my own money than my own two Ugly Sisters, who have been 'lucky' enough to get handouts from a mother who has just inherited.

Re: Smart Women Marry for Money, and Here’s Why

AJC @ 7million7years — Sat, 10 May 2008 00:47:26 -0000

"I have a big [bank account] and I know how to use it, baby" ... it never worked for me then ... doubt it would work for me now ;)

Having been both poor and happy with my wife ... and rich and happy with my wife, I can safely say that money actually doesn't matter in a great relationship, but the communication around it does.

Re: Why Some of the Rhetoric of Property Investment Gurus Doesn’t Quite Make Sense

AJC @ 7million7years — Fri, 09 Jan 2009 08:19:50 -0000

Andee, your message seems clear: treat your real-estate investment as a BUSINESS.

A real business is bought (or started) because it does (or soon will) produce profits and free cash-flow year in and year out, and then MAY be sold at a future date for a speculative gain. At least, that's what happened to me ...

... I can't understand why we shouldn't look at any other investment, including property, exactly the same way?

Re: how I managed to spend almost $9000 on lunch this year

AJC @ 7million7years — Mon, 21 Apr 2008 18:46:04 -0000

Makes me wonder how much we could cut down our spending if we all carried around a 'Future Value Calculator'? :)

Re: the double digit myth

AJC @ 7million7years — Wed, 23 Apr 2008 18:33:59 -0000

You're just peeved because you can't invest in BRK-A or -B because they don't pay dividends :) Warren takes the (perhaps rather) presumptive view the he can invest the dividends better than we can. AJC.

Re: where is Solomon when you need him?

AJC @ 7million7years — Thu, 24 Apr 2008 11:33:09 -0000

I'm not an expert, but I believe that urine is germ-free, so (aside from the smell ... where are the 'green inventors' when we need them?) there's no real reason to flush (or even wash your hands). Just for the record, though: I flush AND wash ... thoroughly!

BTW: There is a useful business lesson on the subject of toilets:

There was a very successful bakery in a country town ... tourist buses make special trips to this bakery (now they have expanded to multiple areas). One of the reasons is that they survey their customers and deliver what they want.

And, when they surveyed their female customers, what did they want from a quaint little bakery in the countryside?

More/better toilets!

That was the #1 request ... so they renovated to provide LOTS of pristine-clean female toilets and the rest is ... history. AJC.

Re: Guest Post: Education - a curse or a cushion?

AJC @ 7million7years — Fri, 02 May 2008 11:41:12 -0000

Thanks BripBlap ... I'm glad to be here (via Guest Post); I'd also like to welcome your readers to check out my new Grand Experiment at 7m7y.com :)

Re: wealthstreaming, or snowflaking for income

AJC @ 7million7years — Wed, 07 May 2008 10:32:00 -0000

Earnings/schmearnings ... as long as you're making money :) I want to think of using your 'weatherstreaming' concept to help evaluate whether an Opportunity is Worth Pursuing ... I'll let you know if I come up with anything, but you just might have something here!

Re: linklings, bring it? already been brought! edition

AJC @ 7million7years — Sat, 10 May 2008 15:25:54 -0000

Thanks for the mention, Steve. My wife seems to think that 'retirement' = clean out garage, etc., etc., etc.

I am DEFINITELY getting an office away from home ... even if it's just to blog, look after my investments, and play a little on-line poker - appearances (especially, if it's the 'appearance' of being busy) counts!

Re: how to become a billionaire

AJC @ 7million7years — Sat, 10 May 2008 17:51:07 -0000

You mean I can take OFF my uber-cool X-men sunnies???

... but, I still think that the internet is the best way for Inter-Noob's to hang out their shingle - and, a blog is a great way to get feedback and seed traffic for it (but, not the best way to actually try and MAKE it).

So, if I had my time over again - actually, I do have 'my time over' ;) - I would do it via the Internet (and, am ... two in the works + blog + new 7m7y.com 'secret project') ...

Re: 6 ways to become famous

AJC @ 7million7years — Thu, 22 May 2008 08:51:31 -0000

As usual, you beat me to a story: Paul Potts ... I also posted his first audition for Britain's Got Talent a few weeks ago.

Just the look on Simon Cowell's face, and (you can't see it very well in the little YouTude video) the tears running down the female judges face, tells it all: ANYBODY can achieve 'greatness' (whatever that means).

Just got back from NY ... still an amazing place ... lived there for a short while about 20 years ago.

Re: linklings, an end to freedom on the horizon edition

AJC @ 7million7years — Sat, 24 May 2008 10:57:19 -0000

Steve, I had to make similar choices years ago ... as it happens, I lucked out. But, part of that 'luck' stemmed from first realizing that if my 'product' is my time (as in 40 hours a week for salary, or 40 hours a week billable time) then my supply - hence income - is limited:

http://7million7years.com/2008/04/24/what-is-th...

Of course, you still need to bring some bucks in the door ... multiple mouths to feed, and all that :) AJC.

Re: linklings, an end to freedom on the horizon edition

AJC @ 7million7years — Sat, 24 May 2008 18:38:24 -0000

@ Ron - we share the same income! That is, anywhere from $100k to $999k ... I guess that covers quite a slice of middle- to upper-America ;)

Re: linklings, an end to freedom on the horizon edition

AJC @ 7million7years — Tue, 27 May 2008 15:01:40 -0000

Dana ... also, it's the whole "give them a fish" or "hand them a rod and teach them to fish" thing. There was a documentary where a homeless person was handed a briefcase with $100k in it.

Of course, he spent it all within weeks ... back to homeless. Why?

I don't know, but a combination of whatever mind-set made him homeless in the first place, together with a lack of guidance as to what to do with his 'windfall'.

The same thing has happened even with 'rich' people who won a huge payout in the lottery and suddenly became MUCH richer ... it's the 'suddenly' but that usually does them in ...

AJC.

Re: linklings, jellyfishy edition

AJC @ 7million7years — Fri, 30 May 2008 10:18:52 -0000

Thanks for the link Steve.

Whether you ultimately choose to put your money in your 401k or not is personal choice. Just don't do it because you get something for 'free' (employer match; tax benefit; etc.) ... do it because - when YOU run the numbers and compare the alternatives - those 'extras' tip the balance of long-term return in favor of the 401k (will they? Maybe ... maybe not!).

Re: have MBAs been devalued by the crisis?

AJC @ 7million7years — Wed, 29 Oct 2008 14:37:07 -0000

I think MBA's were 'devalued' about 10 years ago when 'everybody' started to get their MBA's ... good ol' supply and demand in action (MBA Economics 101).

The next wave will be the crash in general business & finance degrees, for the same reason.

The BEST school is still the 'school of hard knocks' ... save the time that you would have put into any post-grad degree that isn't directly tied to specific employment (e.g. medical specialist) and put that effort into learning business by starting a (part-time) business.

Re: 2017 is the year of the bimillionaire

AJC @ 7million7years — Mon, 26 Jan 2009 21:52:28 -0000

Hi BrBl: I'm sure that you've taken inflation into account in coming up with your 'bimillionaire' number?

It's great that you are willing to share your number ... I have a new social network in Beta where others can do the same ( naturally: shareyournumber.com ) ... AJC.

AJC.

Re: who is the hero of your life?

AJC @ 7million7years — Sat, 31 Jan 2009 08:05:18 -0000

This is a GREAT question BrBl and an easy one to answer, as I just told this person that they were my hero a couple of months before I returned from USA to Aus:

It's my grandmother ... she's now 96 years old, and finally in a nursing home because her legs don't works so well, her hearing is not great (but she doesn't wear hearing aids), but she is still sharp as ...

She's my hero because she saved her entire family during WWII from the Nazis ... not once, but multiple times - because of her actions, the family survived almost intact (she 'only' lost one brother).

When she arrived in Australia she became one of Australia's first traveling saleswomen (in a time well before 'equal rights' for women). For a woman of wealth ad privilege prior to the war, nothing was beneath her both before and after the war to help her get the family back on its feet.

She was the financial lifeline for everybody in the family - including me, when I needed it the most - even when she had nothing (at least in cash) left for herself.

As to my own 'movie' ... she definitely acted as inspiration; but, all the other 'actors' (incl. me and my wife) helped, too.

Re: intelligence and wealth

AJC @ 7million7years — Wed, 11 Mar 2009 07:27:05 -0000

7 years ago I cood not even spel millyunare, now I are won! :)

Re: how a ‘regular person’ can make passive income

AJC @ 7million7years — Mon, 27 Apr 2009 03:40:24 -0000

Creative Income, potentially leading to licensing/royalties and other 'back end' deals SEEMS to be passive, but of course is really are earned - hence active - income, as I explained to Scott who is a prolific inventor, known actor, and documentary maker:

http://7million7years.com/2008/09/08/if-its-not...

Re: why I spend

AJC @ 7million7years — Mon, 27 Apr 2009 04:14:34 -0000

Money clearly has one and only one purpose: to be spent.

Whether you horde it now to spend later, or spend now and risk your 'later' is a matter that is overly analyzed, particularly on the web.

Instead, simply:

1. Embrace the Life that you want to live - focusing on what is / will be vitally important to you;
2. Calculate how much money you will need (usually a necessary evil for most, but not all, Life plans);
3. Put in place strategies and tactics to ensure that you have at least that much money available when you need it;
4. Happily spend the rest (or horde it, or give it away, or ... whatever turns you on).

Re: Picking Warren Buffett’s Brain: Notes from a Novice

AJC @ 7million7years — Thu, 12 Jun 2008 20:41:42 -0000

Hey Tim, didn't see you there ... but, Warren was kind enough to invite 'international visitors' (which I qualified for even though I live in the US ... nice, huh?) to get a t-shirt signed. He was exhausted by the time I got to him, though.

Heard your question but already knew that he would sidestep MOST of your question. His Index Fund advice is fine for the novice, but if you are going to become rich - well, not you & I exactly, others - then you need to cast your investing net wider:

individual stocks; RE; businesses; etc. and you are going to need to apply some leverage (money, time, and knowledge/talent) ...

... but, with multiple streams of income, you know this already ;) AJC.