Learn it, live it, pass it on …

The first one minute of this video-teaser for a documentary called Pass It On that I mentioned recently (Scott, who appears in this video excerpt, provided a post comment that was the inspiration for the recent 3-day series of posts showing you how to build a Perpetual Money Machine) is the most interesting to me:

It simply says: Learn it, live it, pass it on …

Whether it’s karma, or simply feels good, it’s a great idea to teach others what you know!

You can pick an area of knowledge and give back without thought of reward – as I have chosen to do in my various blogs – or, you can use your knowledge and share the reward by building a business (e.g. an eBook or other information Product that you can sell) as I show you how to do in my new blog.

Whatever the method, or the reason, why not pass it on? πŸ™‚

More Nigerian Scams …

I’m about to find out if you can make money online: click here to read the latest installment in my new online money-making adventure!

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Are there truly people who fall for this?

Sir/Madam,
Mr Ray Abo
drrayabo@yahoo.com
My name is Mr Ray Abo ,chairman of contract award and monitoring committee of the ministry of industry and international trade development ,my duty as empowered by the Mauritius government is to provide the basic amenities, social recreational activities in urban and rural areas.

This program includes assistance to deprived local communities and to co-ordinate projects and development at the national level.Furthermore,from this projects were Β able to realize some reasonable amount of u.s.$21.8(Twenty one million eight hundred thousand US. dollars only) as commission from various contractors resulting from over invoicing of payment receipts/vouchers hence all the necessary approvals has been completed.

These approved funds were packaged and dispatched through a security company for onward delivery to its destination in Europe.The money was first deposited into a security vault before we arrange for its movement to Europe through diplomatic channel using decoy purporting that the fund belongs to an expatriate/company.
As we are government officials, the oath of office does are not allowed us to operate foreign bank account,hence we need you to stand as the beneficiary and claim the
fund on our behalf from the security company.

Presently I am now in Europe to search for a reliable person/company of high integrity /dignity and one with conscience who will claim this fund on our behalf as the beneficiary.
We have agreed to give you 30% of the total sum as commission for your assistance/effort and 5% will be used to settle every expenses incurred, we will use 65%to invest under your recommendation/guide and go into joint venture business with you .

I would greatly appreciate your assistance and I look forward to your response as soon as possible through this e mail address:drrayabo@yahoo.com
Best regards,
Mr Ray Abo

… just in case it should be one of my readers (hah!) I have changed the name and e-mail address.

But, the mere fact that these e-mails still go around, despite all of the negative publicity indicates – at least to me – that there are still one or two greedy/stupid bunnies out there who will hand out their bank account details to some con-man from another country!

Here is a simple rule of thumb on ‘hot tips’ and offers that are ‘too good to be true’ (aside from the obvious: they are too good to be true):

If you find out about a ‘hot deal’ through a public channel (such as e-mail, the media, even ‘word of mouth’) it is no longer hot … it is either a scam, or the professionals on the ‘inside’ have long-since picked it over and you will be the one left standing in the long line of stupid/greedy people investing at the top – providing the ‘insiders’ their profitable exit, and leaving you to hold the bag when the bubble pops.

No. Good deals only come to those who research a market thoroughly and ‘find’ the deals themselves …

… it’s never going to be handed to you on a silver platter.

Except for that swamp land in Florida that I happen to have a great deal on just for my readers, but only if you act real quick πŸ˜‰

Your Number

Nowadays, somebody only need to write “The” and “Number” next to each other and we automatically know what it means: the amount that you need in your nest-egg so that you can finally throw off those corporate shackles and ‘retire’ …

… well, do anything other than ‘work’ for your daily crust.

The only problem is that nobody tells you how to find The Number!

I should know, I read books on the subject and they all focus on rubbish like: “multiply 75% of your pre-retirement’ salary by 13”.

Which has some obvious problems:

1. How do I know what my pre-retirement salary will be?

2. What if I spend more/less in retirement than when I was working?

3. How will I know my money will last?

The reality is that – for most people – there is (and should be) a total disconnect between how you make your fortune and how you spend it!

In other words, just because you earn $x before you retire, it doesn’t mean that you will spend 75% of $x to 125% of $x (as most financial authors assume) in retirement.

So, I came with my own method – and, it worked for me!

Here’s how:

1. Complete a simple spreadsheet of your major (non-investment) personal purchases, income, and living expenses now and over the next 1, 5, 10, and 20 years. Don’t forget to apply the Inflation Adjustment Factors!

2. To help I have listed the typical expenditures of a $100,000 a year lifestyle, a $250,000 a year lifestyle, and a $550,000 a year lifestyle. These should provide some reference points to calculate your own future living expenses.

3. Use the spreadsheet to calculate Your Number and Your Date.

That’s it!

… and, I’m betting that it won’t even resemble your expected final salary – in fact, I’m betting that the number is so damn big’n’scary that you won’t even get there just on any typical salary – even with your 401k maxed πŸ˜‰

A new look at our 7 Millionaires … In Training!

I’m hoping, but not sure if you are staying in touch with the goings on at our ‘sister site’ http://7m7y.com – the home of what I still call our ‘grand experiment’ to make a lot of people rich by applying the principles that I write about here …

Jeff asks:

I have a question about how your readers now fit into the conversation on 7m7y.com as the site’s focus changes. Since you have named your 7 MIT the posts and comments have naturally shifted focus toward those individuals. As I review the discussions, it appears to me that the conversations and comments have become almost exclusively between you and the seven with little engagement from outside.

Do you see a place here still for the team of benchwarmers who have been to practice but didn’t make the team? I have learned a lot about myself and my desires through the series of exercises that led up to the 7MIT selection. Will there be more “try this at home” exercises moving forward or will 7m7y.com become increasingly tailored to the seven?

You see, I don’t just want to create 7 Millionaires … In Training! I want to create 70, or 700, or even 7,000 Millionaires … In Training!

So, there are no ‘bench warmers’ in our 7m7y Community – don’t be a wallflower (!) – but, you do get to choose your level of involvement:

1. You could just passively read along and pick up a lot of valuable information that isn’t in this blog, and

2. You could comment/criticize/congratulate, and

3. You could ask/answer questions of anybody (including the 7MITs and me), and

4. You could participate in the same exercises that I purposely post online, and

5. You could even share your own progress by e-mail/comment/feedback.

If you do want to participate – and I sincerely hope that thousands of readers like Jeff will – I suggest that you hop over to that site and bookmark it because it is an unusual blog … by it’s nature: http://7m7y.com is fluid, not static!

That’s also why I have come up with some additional navigation options for that site … let me know what you think!

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Visit us at the Money Hacks Carnival, kindly hosted this week by The Financial Blogger.