I’m pretty sure that everyone reading this blog is trying to escape the rat race.

We need tools to do that so to help you evaluate real estate, I’ve posted some mortgage calculators at Beko Investments.

So now you all have access to this kind of tool and don’t have to go searching for them. I still prefer a good old financial calculator (link to come so you can buy one) but they aren’t always with you. So check these omortgage calculators out.

Source:
Real estate tools

Chapter 3: Business Plan Basics
Winning business plans map out the major W’s of your proposed business – the who, what, when, why and where – to help you figure out that all important H – how. Who are the major players? Who are the owners, personnel, advisors, customers, competition, even the target audience for the plan itself? What do you want to achieve? What is your sustainable advantage? What do you offer? What do you produce? When did (will) the business start? When do you want to meet particular goals? Why are you in business? Why would customers want your product or service? Where is the business located? Where is the target audience? Where do new opportunities lie? And finally, how do you get from where you are now to where you want to be?

Ideally, a business plan is the intersection of everything inside the business (costs, products, services, personnel, etc.) and everything outside the business (competition, market trends, political forces, etc.) Forces inside the company meet those outside the company and a business plan is born. 

Many entrepreneurs put too much emphasis on the inside forces and ignore the outside. No business is an island; no company operates in a vacuum. Even as you are tackling all the tiny details that need to be included in your plan, be sure to keep a grip on the big picture. 

A winning business plan outlines goals, clearly communicates strategies and establishes plans for both the best and worst case scenarios (as well as any and all scenarios in between) that might befall your company. Seasoned entrepreneurs and investors know to expect the unexpected and at the same time anticipate the challenges inherent in each particular business. 

In great business plans, you not only sell your business concept, you sell yourself. Your entrepreneurial spirit and passion are critical factors to a potential investor. Communicating your team’s experience, abilities and track record will take you even farther. The key is showing how your experience and abilities will support your business and help it to excel. 

A good business plan can help you determine what you need to make your business a success – from personnel to financing, location to advertising. But to truly make your company succeed, you must pay attention to what you find during plan preparation. Don’t do the plan, figure out you need $300,000 and then try to wing it on $150,000. Be realistic in your planning, then be just as realistic in following the plan. 

The hardest part of crafting a good business plan (or even a bad one, for that matter) is overcoming inertia. Most people have a great idea and fail to take action because of a fear of failure. A body at rest tends to stay at rest; a body in motion tends to stay in motion. Inertia is what keeps a body at rest (along with a comfy couch, a good TV night, a high-speed modem, whatever). Kick inertia in its thermodynamic behind, get off your couch and get started. Now. Don’t wait until you finish this book. Don’t even wait until you finish this chapter. Go now and grab a pen and a notebook and start taking notes. Sometimes the simple motion of moving a pen across a page is enough to get the rest of your body in motion. 

Just as you must overcome inertia to construct a business plan, you might also have to overcome fear. A business plan sounds complicated. But it shouldn’t be. A complicated business plan is often worse than no business plan at all. Your plan should be understandable in its language (leave your thesaurus on the shelf); it should summarize where appropriate (leave the details for appendices); and it should truly describe your business (leave the boilerplates for metal shop). It needs to be short and to the point. Keep it simple, but make it complete. Treat your plan as if it is the only information a potential investor, lender or manager will have before making a decision enabling the success of your business. 

Writing a business plan is a labor of love, but also an exercise in logic and forethought. 

For years, I choked when I heard such a question. I choked because I was at a loss for words. I was at a loss for words because such a simple question does not have a simple answer.

So the answer I came up with was, "It depends."

I tried this answer for awhile and soon noticed that this answer was unsatisfactory not only to the person asking the question – but also to me…

Looking for a new answer, I came up with, "If you do not know what to do with your money, put it in a bank far away from you, with instructions not to let you touch it." I would add, "If you do not know what to do with your money, and you announce publicly that you are an idiot with money, many people will call and tell you what to do with your money…which is to give your money to them." This new answer was not a satisfactory answer, yet it was better than "It depends."

Today, I am happy to announce that I have a new answer to the same question and that answer is, "Read my latest book, Who Took My Money?" After years of frustration and unsatisfactory short answers, the answer to that simple question is now in a book and I am very proud of this book. I am proud of this book because it takes the time to answer the question, "What should I do with $10,000?"

The reason the answer to such a simple question is complex is because what a person should do with the money depends upon who the person is. For example, if the person has a limited financial IQ, then the person should definitely put it in a bank and keep the money secret and far away so no one; including that person, can touch it. If the person has a higher financial IQ, then he or she can invest, leverage, and speed up their money to achieve far higher returns than most people think possible.

In my new book, Who Took My Money, there are three different examples of investing $20,000. Using exactly the same parameters of 5% interest, and a 7-year period:

The difference between real estate in choice #2 and choice #3 is that financial velocity is added to choice 3. If you would like further clarification on the causes of the differences, you can find this example on page 118 of the book.

The point of this article is that a higher financial IQ does definitely pay off and that variable is why I have had a difficult time answering such a simple question. If a person has a very low financial IQ then, obviously, they should put the $20,000 in the bank. At 1% interest, the $20,000 would have grown to approximately $22,000. While not great, it is better than losing the nest egg.

One of the purposes of The Rich Dad Company is to continually improve a person’s financial IQ and this is an example of the pay off of a higher IQ. So keep learning and soon you will find your wealth increasing – not because you are working harder but because your money is moving faster.

1. To get where you want to go, you need to know where you are.
Complete your own financial statement. This is your first step in taking control of your financial future. How much passive income do you have today?

2. Pay yourself first.
Put aside a set percentage from each paycheck or each payment you receive from other sources. Deposit that money into an investment savings account. Once your money goes into the account, NEVER take it out, until you are ready to invest it.

3. Look for real estate "for sale" signs in your area.
Call on three or four and ask the brokers to tell you about the properties. Find a real estate investor (mentor) and ask them to visit a property with you to tell you what to look for.

4. Attend business opportunity conventions or trade expos.
See what franchise or business systems are available in your area.

5. Who you spend your time with is your future.
Surround yourself with people who will support you, not discourage you.

6. TAKE ACTION!
Put a little money down. Start small. It’s amazing how quickly you learn when you have real money in the deal. Make mistakes, learn from them, and then take action again!

7. Set a long-term financial goal for where you want to be in five years.
Also set a smaller short-term goal for where you want to be in twelve months. Passive income is the key.

8. How do you spend your spare time?
Commit five hours of your time each week to do one of the following:
- Read the business page and The Wall Street Journal
- Read financial magazines and newsletters
- Listen to the financial news on television or radio
- Listen to educational material on investing and financial education
- Play CASHFLOW® 101

9. Meet with a business broker to see what existing businesses are for sale in your area.
It is amazing what you can learn by just asking questions and listening

10. Find people in your area to play CASHFLOW® with or create your own circle.
Visit RichDad.com and click on CASHFLOW CIRCLES in the Message Forum to find people in your area who play CASHFLOW® 101

11. Join Rich Dad’s INSIDERS!
Plot your own course to financial freedom and surround yourself with people who will support you every step of the way!

12. TAKE ACTION!
Start small, learn from our investing mistakes, and continue your financial education.