Words of the rich & wealthy - jargon buster

Image via WikipediaIn the a b c of the rich you will see and learn about words the rich use in investment. So for you to become rich you will need to be able to understand these words to use to your advantage in the investment world.

A = action you will here the word action in the world of investment over and over again. Its used in the sense of take action to improve your wealth.

For example if your saw an apartment that you thought was a bargain priced at £40.000 in 2006, did not take action and later saw the same apartment priced at £80.000 you would be dissapointed. This is why it is important to take action after first researching investments.

B = bmv = Below market value, this is used as in buy property below market value.
So you can then later sell on at a greater value.

C = compounding, the idea of compounding is to make greater amounts of money from interest earned on money in the bank.

D = Debt, many people view debt as a bad thing and yes of course it can be, if used in the wrong way. If debt is used in the correct way it can make you very rich.
As multi millionare Robert Kiyosaki says their is good debt and bad debt.

E = equity, as in the amount your property has increased in value or you have paid off of your mortgage.

F = Financial freedom a word that excites me. And I hope excites you to.
This means you have enough money to cover all of your bills, & maybe more. You dont need to work. Hence you are financially free.

G = Gearing means using the banks money to become rich. Its best used when inflations is rising. As inflation erodes debt. For example you live with your parents & see a nice investment property. You go to your mortgage company & get a 100% mortgage let's say the house is £100.000 you rent the house out for 10 years. Over the 10 years let's assume inflation increases @ 10% per year. You now sell the house & have made £100.000 well done you.

H = Hustle one of your many challenges to becoming rich is to practice hustling. Life throws things at you that are hard to deal with. People & life gets in your way. They are just obstacles, get over them.

I = Invest - if there is one thing you do to improve your life it has to be invest. Even small amounts in good shares for example.

J = Job - the rich do not have jobs. They start businesses and employ people into jobs. You too can do this.


Many more jargon busters to follow.