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If you were to travel around the world, you would find that all
sorts of wealthy people are staying in expensive hotels and zipping
in form Paris to leave for London, Tokyo or New Delhi. They are
spending huge amounts of money on entertainment and travel. When you
talk to these people, you discover that they come from different
countries and many different backgrounds. They not only have
different backgrounds, but different customs and languages. But the
one thing they do have in common is that they are all wealthy. The
most astonishing discovery I made about these people was that they
all made it big on borrowed money. They built their wealth on
someone else’s money.
Here at home, we also have millionaires who have become wealthy on
someone else’s money. There are people who have money and those who
don’t, but for one significant difference all possess the same
qualities. Let us examine these:
People with money
- They are ambitious
- They will take business risks.
- They have good business plans
- They know opportunities exist for making money.
- They know how to get other people’s money to get started.
People without money
- They are ambitious.
- They will take business risks.
- They have good business plans.
- They know opportunities exist for making money.
- They do not know hot to get other people’s money to get started.
It is obvious from looking at the chart that the non-wealthy people
share every characteristic with the wealthy except the use of other
people’s money and the former either do not know how to get it, or
for some other reason cannot.
In the following section, we will review again how to borrow other
people’s money. I am sure that you know your plans for this money or
at least know which business you wish to invest in ( If not, later
on in this book, I will give you many business idea’s which could
make you $50,000 a year or more. Many of these business plans
require little or no start up capital.).
The first thing you need is an investment of $500 in order to get
started on your plan to borrow your way to riches. As you will see
in the next section, this amount of $500 will be earning interest
and will be safe.
HOW TO GET STARTED USING OTHER PEOPLE’S MONEY
Take your initial investment of $500 and go to a bank in your
neighborhood and open a regular savings account. Go back to the same
bank after one week and ask to borrow $500. There will be no
hesitation on the part of the loan officer to lend you the money, as
it is a 100% risk free proposition. The bank will use your savings
account of $500 as collateral. Your investment of $500 is drawing
interest but cannot be withdrawn as it is held by the bank as
collateral. Take the $500 you borrowed from the first bank and go to
another bank in your neighborhood. Open a savings account. Come
back to the same bank a few days later and ask to borrow $500
against your savings account.
Repeat this procedure of opening new accounts and borrowing in three
more banks. Now you have five bank accounts totaling $2,500. They
are all earning interest. You will also be paying interest on the
borrowed money. Remember that you are involved in this activity for
only one purpose – to get an AAA credit rating so that you can
borrow large sums of money.
The next step is to go to the sixth bank and open a checking account
with your $500. Now you are ready to pay the credit game. Write a
check for the loan amount payment of one week earlier than the due
date. Now keep making payments to all the banks you have a loan at.
Once you have made three payments to the banks, you can be sure that
you have built your credit rating.
The next step is to open a retail account with any of the following:
- CAR DEALER
- FURNITURE STORE
- JEWELRY STORE
- CLOTHING STORE
- APPLIANCE STORE
If you do not need any of the merchandise and would like to start
the chain of building your credit so that you can borrow other
people’s money, you should go to several department stores and open
an instant charge account. Most of the time, these stores will grant
you credit on the spot. Some may want to take a week or 10 days for
checking your credit references. If you have good credit references
with three banks you should receive the charge accounts without any
problems.
Let us assume that you have several department store credit cards.
Since you have not charged anything on your cards, they are all
inactive. You have decided not to purchase anything, as your purpose
for opening these accounts was to establish credit. What you would
do now is buy items, which could easily be returned. Buy one or two
items from these stores and after a few days return them. Making a
purchase makes your account active. When you return the merchandise,
it will be registered on your bill as credits. The billing system of
stores does not usually differentiate between payments and returns.
You can repeat this procedure with all the department stores. This
will make your account very active and you won’t be spending any money.
Now that you have established your credit, you should have no
problem getting the money you need to start your new business venture.
Learn to leverage your money for building wealth.
For more useful info about obtaining Business loans or Venture Capital
Click here
Article by: Ahren Lotze
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