Be Wealthy & Smart

Learn what the next step to wealth may be for you. Good evening Linda! I really appreciate your podcast as well as the giving of your time! I listen to it on the way home from teaching school and the podcasts that I miss, I listen to on the weekend. Sometimes I listen to your podcast more than once with my headphones on sitting at my desk during lunch. I make 41k a year. I have been training my mindset for 3-4 years. I want to get out of teaching and create wealth but I don't know where to start. I journal daily and I have a positive mind set. I basically want to have my own business and create wealth and financial freedom. As you know teaching school does not do that and it takes up 10 to 12 hours a day. Ugh! The only thing I can think of is maybe a business like painting and decorating. I do not have a degree or education in it but I like doing this. Do you have other ideas? Any suggestions will help. Thank you, Nancy Thank you Nancy (name changed to protect identity)! I'm so glad you found the podcast. As I read your letter, I couldn't help but wonder how many other people feel the same way you do about their job and aspirations? You want to get out of the rat race and do something that's more enjoyable. You want to not be chained to a job that's a drag and you want financial freedom! Let's talk about your next steps or anyone's next steps. The Twin Pillars of Wealth are investing like billionaires and creating a luxury brand business. The easiest for anyone to do is to get started investing. I studied wealth building my whole life and determined this is how you go from not wealthy to wealthy. Remember the 6 Steps to Wealth™: 1. Create a wealthy mindset 2. Save a nest egg 3. Find a mentor (knowledge source) 4. Invest in a money engine 5. Compound at a high rate 6. Protect your wealth Working on mindset is continuous. The next step for you is to save a nest egg for investing and also perhaps starting a business. Listen to my podcast #293 about where to invest $300 to $500 if you're just starting out. Can get working on your business on the side. I once started a side business as a jewelry wholesaler. I discovered it wasn't at all what I wanted. I also took interior design classes. That wasn't for me either. They are still hobbies, but not my business. Next step is to start saving so you can invest (preferably in an ETF). Simultaneously see if you can advance yourself toward interior design or painting (walls or portraits?) on weekends. It's going to require hard work and dedication to do both, but the excitement of moving forward with your dreams should help you jump out of bed and be happy working on the weekends. If not, re-evaluate! *************************************************** Have you heard? I'm having a summer giveaway through the end of September...you could win: Win 6 awesome prizes: 5 of The Wealthy Mindset Blueprint (audio course): Learn how millionaires think the right thoughts for wealth before it happens (value $197) OR 1 Wealth Journal (book): Learn the 6 Steps to Wealth (value $67) Here's what you need to do: 1. Leave the "Be Wealthy & Smart" podcast a review on iTunes (or Stitcher Radio for Android). 2. "Like" my Facebook Fan page at http://facebook.com/lindapjonesfanpage (if you're on FB, if not, that's ok). 3. "Follow" me on Twitter at http://twitter.com/lindapjones 4. "Follow" me on Instagram @LindaPJones 5. Send me an email @ lpjhome@gmail.com and let me know you did this! (If you're not on FB, TW or IG, that's ok, just send me an email @lpjhome@gmail.com and let me know you left a review). If you've already done all 4 above, great! Thank you! No need to do them again! Just email me @ lpjhome@gmail.com and let me know. All names will be dropped in a hat and a drawing will be done in early October for winners! Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at http://www.lindapjones.com.

Learn how tech stocks get ahead of themselves sometimes and how not to get burned. Stocks got ahead of themselves in the year 2000 and it took 17 years to get back to where they were! Bubbles can create unreasonable valuations that are very extended because investors invest by betting on their success in the future and ignoring the outrageous valuations of today. Just like today we have FAANG stocks, in 2000 - the "Four Horsemen of the Internet" - Intel, Microsoft, Dell, and Cisco Systems. Back in the year 2000, what drove them is the "Y2K" scare, only people didn't realize it. They thought is was the "New Economy". It was about "eyeballs" and "bricks and clicks", not earnings and profits. This can happen for an extended period. Investors get caught up in the next "new thing". They forget it has to make money! Earnings growth is what drives stock prices! Investors buy stocks in anticipation of future earnings growth, but it can get out of hand. In this case, it was 17 years ahead of itself! Back in 2000, it seemed like Microsoft was unstoppable and would forever be on every computer. Then LINUX came out, the US Government started an anti-trust case, and Apple started to get more popular as a micro computer. Then corporations that had approved special budgets for hardware and software to be safe for Y2K, stopped buying and profits dried up and the stock market crashed. When companies miss their earnings targets, their stocks decline. The darling "4 Horsemen" tanked and so did the rest of the market. It declined over the next 3 years until the bottom in 2002. Now the information technology index has risen above where it was in 2000. Tech stock fundamentals look good, but the FANG's may have gotten ahead of themselves. The stock market has narrowed considerably to a few stocks - the FAANG's. Here is the article. I'll also post the article on my website. Here is the article: http://www.cnbc.com/2017/07/19/sp-information-technology-sp701-spx-near-2000-high.html How can you tell if stocks are ahead of themselves? An easy metric is checking the P/E ratio. Price-to-earnings ratio is price divided by earnings per share. The average for the entire stock market is about 15 to 17 over the long term. Certain high growth stocks can get ahead of this. A P/E of 25 says you'll pay $25 for $1 of additional earnings. Right now Amazon has a P/E of about 178. That means you're paying $178 for each $1 of additional earnings. Does that make sense to you? It seems like bubble territory to me. 2. Are sales and earnings rising? What are the new products coming? Apple iPhone has a new version coming out. I hear it is going to be $1200. Is that going to generate sales or stagnate them? Tesla has a less expensive version coming out, but can it sell enough to continue to justify a high stock price over $300 and P/E ratio of -$68.86. It has an EPS loss of -$4.77. Just to be clear, it's not profitable yet, but the market has given it a valuation of $54B. Could that have gotten ahead of itself and priced in gains that won't be seen for maybe another 17 years? Hmmm. Are there even earnings at all? On many tech leaders, there aren't. That makes is a big game of musical chairs because as long as the music keeps going, the stocks keep going up. When the music stops (from whatever cause, internal or external), the price may drop substantially because there is nothing to support it except investors bidding up the price based on future hope. It should be noted, it does have a huge group of investors who are selling the stock short, betting it will go down. Because you have to borrow the stock and hope to buy it back at a lower price, your losses can be unlimited. Therefore, short sellers are forced to buy back the stock to cover their positions and losses, driving the price higher. It's convoluted but it is happening! 3. What are competitors doing? Are there new competitors in the market place? 4. Is there new technology competing with this? Is the market changing? Is the market growing or declining? Oil vs. solar will be a big change. 5. The main thing I want to stress is profitability. When companies get way ahead of themselves and sell for outrageous valuations, a realignment is coming, the question is only: when? Have you heard? I'm having a summer giveaway through the end of September...you could win: Win 6 awesome prizes: 5 of The Wealthy Mindset Blueprint (audio course): Learn how millionaires think the right thoughts for wealth before it happens (value $197) OR 1 Wealth Journal (book): Learn the 6 Steps to Wealth (value $67) Here's what you need to do: 1. Leave the "Be Wealthy & Smart" podcast a review on iTunes (or Stitcher Radio for Android). 2. "Like" my Facebook Fan page at http://facebook.com/lindapjonesfanpage (if you're on FB, if not, that's ok). 3. "Follow" me on Twitter at http://twitter.com/lindapjones 4. "Follow" me on Instagram @LindaPJones 5. Send me an email @ lpjhome@gmail.com and let me know you did this! (If you're not on FB, TW or IG, that's ok, just send me an email @lpjhome@gmail.com and let me know you left a review). If you've already done all 4 above, great! Thank you! No need to do them again! Just email me @ lpjhome@gmail.com and let me know. All names will be dropped in a hat and a drawing will be done in early October for winners! Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn why it pays to make investing one of your hobbies. Thomas J. Stanley, author of the classic book, The Millionaire Next Door, said: "On average, millionaires spend significantly more hours per month studying and planning their future investment decisions, as well as managing their current investments, than high-income nonmillionaires." It's true. When I hang out with my multi-millionaire friends, some of our time is spent talking about investing - stocks, real estate, the economy, etc. We love to share success stories about ourselves and our friends or things we've read about what's working ie. "this friend of a friend started selling widgets on Amazon and made $20 million" or "this girl started a jeans/makeup/tshirt line because of her Instagram following and made $2 million" or "I heard one of the early investors in Bitcoin now has $100 million in his investment." The conversation is always about possibilities and success stories, so we encourage each other with what's possible. Other friends I have that aren't multi-millionaires might talk more about finding their next job or why they don't like their boss. One is looking for encouragement, belief and possibilities and one is seeing limitation or choosing to limit themselves. I still love them, but I notice there is a different focus. Which comes first, the focus or the money? I say the focus, because the money is in your thoughts before it becomes reality. A wealthy mindset is step #1 to wealth. Have you heard? I'm having a summer giveaway through the end of September...you could: Win 6 awesome prizes: 5 of The Wealthy Mindset Blueprint (audio course): Learn how millionaires think the right thoughts for wealth before it happens (value $197) OR 1 Wealth Journal (book): Learn the 6 Steps to Wealth (value $67) Here's what you need to do: 1. Leave the "Be Wealthy & Smart" podcast a review on iTunes (or Stitcher Radio for Android). 2. "Like" my Facebook Fan page at http://facebook.com/lindapjonesfanpage (if you're on FB, if not, that's ok). 3. "Follow" me on Twitter at http://twitter.com/lindapjones 4. "Follow" me on Instagram @LindaPJones 5. Send me an email @ lpjhome@gmail.com and let me know you did this! (If you're not on FB, TW or IG, that's ok, just send me an email @lpjhome@gmail.com and let me know you left a review). If you've already done all 4 above, great! Thank you! No need to do them again! Just email me @ lpjhome@gmail.com and let me know. All names will be dropped in a hat and a drawing will be done in early October for winners! Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn 17 potential places to invest a small amount of money. It's listener question day! Here is our question: Linda, I only have a small amount to invest, about $300 to $500. Where should I start? Sam There are many options you have. Since I don't know anything about your circumstances, I'm going to give you a list of choices. Assuming all your consumer debt is paid off. If not, start there to get back to stability. 1. Start an emergency fund. Keep it in a separate (no-fee) checking or savings account, if possible. 2. Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are both great ways to reduce your income taxes by paying for medically-related expenses with pre-tax money — that is, money deducted from your paycheck before income taxes are calculated on your pay. You put money into that you use to pay for certain out-of-pocket health care costs. This means you'll save an amount equal to the taxes you would have paid on the money you set aside. 3. Pay 1/12 extra on your mortgage to pay it off faster and save thousands of dollars in interest. 4. Invest in an ETF or mutual fund. ETF's are passive, mutual funds are actively managed, but more expensive. Spyder S & P 500 fund (SPY, .09% expense ratio) or Vanguard All Market Index (VTI, .05% expense ratio). Dividend Aristocrats - 25 years of consecutive increasing dividends (NOBL, .35% expense ratio). 5. Term insurance. Creates an immediate estate in case of your untimely death. Can buy $100k to $500k depending on your age, health, gender, smoking, dangerous hobbies, etc. 6. Silver coins, still about $25 a piece. 7. Shares of stock. One share of Disney to get the special stock certificate, or Starbucks, etc. 8. REIT. Vanguard REIT (VNQ, .12% expense ratio) Outside of the box… 9. Bitcoin 10. Hire a CPA - to help you reduce your taxes if you make $75k + 11. Subscription to IBD, WSJ or Kiplinger's 12. Condo down payment fund 13. Start a business 14. Have a garage sale to raise more funds 15. Hire an organizer 16. Buy a bus pass 17. Invest in a computer to start an online business Although you can consider all of these, if you are around age 30 or under, making your first real investment, I'd start with the Vanguard All Market Index ETF. I'm having a summer giveaway through the end of September...you could win: 6 awesome prizes: 5 of The Wealthy Mindset Blueprint (audio course): Learn how millionaires think the right thoughts for wealth before it happens (value $197) OR 1 Wealth Journal (book): Learn the 6 Steps to Wealth (value $67) Here's what you need to do: 1. Leave the "Be Wealthy & Smart" podcast a review on iTunes (or Stitcher Radio for Android). 2. "Like" my Facebook Fan page at http://facebook.com/lindapjonesfanpage (if you're on FB, if not, that's ok). 3. "Follow" me on Twitter at http://twitter.com/lindapjones 4. "Follow" me on Instagram @LindaPJones 5. Send me an email @ lpjhome@gmail.com and let me know you did this! (If you're not on FB, TW or IG, that's ok, just send me an email @lpjhome@gmail.com and let me know you left a review). If you've already done all 4 above, great! Thank you! No need to do them again! Just email me @ lpjhome@gmail.com and let me know. All names will be dropped in a hat and a drawing will be done in early October for winners! Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn the 3 things you shouldn't change to get rich and stay rich. "Same house, same spouse, same car." - Thomas J. Stanley, author of The Millionaire Next Door I just talked about 2 of the 3 things on podcast #290. If you haven't listened to it, I go into depth about why people are watching the small expenditures and missing the huge ones that keep you from achieving financial independence. I'm having a summer giveaway through the end of September 2017...you could win: Win 6 awesome prizes: 5 of The Wealthy Mindset Blueprint (audio course): Learn how millionaires think the right thoughts for wealth before it happens (value $197) OR 1 Wealth Journal (book): Learn the 6 Steps to Wealth (value $67) Here's what you need to do: 1. Leave the "Be Wealthy & Smart" podcast a review on iTunes (or Stitcher Radio for Android). 2. "Like" my Facebook Fan page at http://facebook.com/lindapjonesfanpage (if you're on FB, if not, that's ok). 3. "Follow" me on Twitter at http://twitter.com/lindapjones 4. "Follow" me on Instagram @LindaPJones 5. Send me an email @ lpjhome@gmail.com and let me know you did this! (If you're not on FB, TW or IG, that's ok, just send me an email @lpjhome@gmail.com and let me know you left a review). If you've already done all 4 above, great! Thank you! No need to do them again! Just email me @ lpjhome@gmail.com and let me know. All names will be dropped in a hat and a drawing will be done in early October for winners! Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn how much money you have to save each month to retire by age 40. Article on CNBC.com by Kathleen Elkins. The numbers may discourage you, but I'll show you why it doesn't have to get you down. It's not as hard as you think. The article assumes a straight line. I don't know about you, but I started out making a pittance in my 20's and over a hundred thousand dollars a year in my 30's and 40's. The amount of savings should dramatically increase. Some people talk about skimping their way to retirement at 40. There's a trend to live in a house the size of a shed, ride a bike and don't own a car and not to eat out or entertain. That's not my style and it might not be yours either. You can retire early while still enjoying life and having creature comforts but it means you have to invest well and compound at a high (8 to 12% rate). A good idea to make investing your hobby. Whether you are flipping houses on the side or investing in stocks or starting an online business, you're going to have to get to higher levels of compounding. So get good at it! You also want multiple asset classes: stocks, real estate, own business, collectibles, etc. It's all about the savings and compounding over a long period of time. Of course, the higher the rate you compound at, the sooner you will be wealthy. Try to have your deductions to investments automatically be taken out of your paycheck or bank account. That way, you're not tempted to spend it if it's not in your account. When you get raises, save more, put more in your 401k or start an IRA. Max out your savings and investments whenever possible. If you want to retire by 40, you're going to have to be intensely focused and invest wisely. It's much harder to save your way to retirement than to invest your way to retirement. Get your money working harder for you. I'll post the article on my website at http://lindapjones.com, podcast 291. Please subscribe and leave me a review on iTunes or Stitcher Radio. Connect with me on social media at Twitter and IG @Lindapjones and Facebook @lindapjonesfanpage. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn why it's the big mistakes that keep you from financial success, not the small ones. Here's another article about giving up coffee or cigarettes and how it will make you rich. Business Insider: "Why your daily coffee is stopping you from becoming a millionaire." There are sayings like, "Watch your pennies and the dollars will take care of themselves." "A penny saved is a penny earned." Just give up lattes and invest that money instead…and eventually you'll become a millionaire. "The Latte Factor" was invented by author David Bach, whom I really respect. I believe it was a demonstration of compounding more than selling the idea of skipping coffee. Over a long enough time, compounding even a small amount will grow into millions. What the purchasing power will be is another question. I disagree with this frugal focus. It's not the small stuff that gets ya, it's the BIG mistakes. Moving costs/interest/commissions/remodeling costs from moving often will cost you a lot more than a few dollars. Buying cars every 3 to 4 years is a mistake that will cost you thousands. Invest that and over 25 years it can be $250k. Where people go wrong is not learning how to invest. A friend has had success with real estate, which is great, but in 2008 almost lost everything because a luxury spec home they build which they thought would sell for $3 million at the peak, they had to let go for a $1.5 million, below their breakeven. Instead of investing, I noticed their house it full to the brim - drawers in the guest room are full, guest closets are all full, the garage is too full for 2 cars, the basement is packed full of stuff! That tells me there are no investing goals that are being followed, there's a lot of spending that's extraneous and things aren't being used. It's not for me to judge, but I do notice that there's no money for anything because there's so much clutter! How many people are surrounded by clutter from small purchases that make you feel good or volume purchases at COSTCO that accumulates a lot of stuff you don't use. These are the reasons you haven't reached your financial goals. That - and an investment plan that will help you compound at a higher rate (Step 5 of the 6 Steps to Wealth). The reason why a home is the largest asset for a lot of people is not just because home prices has been one of the best performing asset classes for the last 20 years, but because of the "forced savings" that a mortgage causes you to have. Paying a payment for 30 years, is a forced discipline that is paying off your interest and principal monthly. As you pay down your debt, the equity in your home increases, thereby giving you more net worth every month. Disciplined investing (in this case by borrowing), is a secret that will help you build wealth. Regular deductions into a 401k or IRA or mutual fund or brokerage account will provide systematic payments into investments that can compound at 8 to 10% over the long run, if history repeats. So let's not sweat the coffee. Watch the hundreds and thousands you spend, not the pennies. I'll post the article on my website. Please subscribe and leave me a review on iTunes or Stitcher Radio. Connect with me on social media at Twitter and IG @Lindapjones and Facebook @lindapjonesfanpage. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn why what has happened to you in the past is important to your present self. I'm traveling and visiting with friends who have mentioned money stories from their past, without any consciousness about how it is connected to their present. One mentioned money was so important to her Mom that she wouldn't give her garage sale items. She had to buy them from Mom. She ended up buying back a gift she gave to her dad and her brother wanted it so she gave it to him. She paid for it twice and didn't get what she wanted. Although she is affluent, she sees herself as "poor" and without discretionary income, though her closets and house are jammed with things. She mentions she "wishes" she could retire, but resists being responsible with money due to her underlying pain. Another owns 3 homes and carries no cash, so she always is "broke". Her father had his own business and it was very up and down, so he put tight reigns on the money. They are real estate rich but cash poor due to 2 kids in college and lots of expenses from the homes, traveling, and a horse. I talked with her about the fact her net worth is over $4 million, but she compares herself to Bill Gates and says she's poor. Another mentioned her dad lost himself in stocks. All conversations had to lead to stocks. She and her sister felt ignored and resentful. They don't like talking about stocks today. What is going on here? Why are these well off women choosing to feel poor? Why is their self-talk about being poor? Do you realize the majority of the world exists on $2 a day? They can't see the underlying money blocks. For clues to your money blocks, think about your upbringing. - What do you remember your parents saying or acting like with money? Pretend you won the lottery. What is your next thought after Yay? -Is it what do I do now?, How do I not lose it?, It feels like a burden? Your history with money effects your present money. Spend some time with this and find where your money pain is. Please subscribe and leave me a review on iTunes or Stitcher Radio. Connect with me on social media at Twitter and IG @Lindapjones and Facebook @lindapjonesfanpage. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn the one habit that helped Tom's shoe founder get rich and how it can help you too. Find the article on my website at http://lindapjones.com, podcast 288. My Wealth Journal is available on Amazon.com. There is a live link on my website at http://lindapjones.com, podcast 288. Please subscribe and leave me a review on iTunes or Stitcher Radio. Connect with me on social media at Twitter and IG @Lindapjones and Facebook @lindapjonesfanpage. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn the world's 13 best cities for renters based on percentage of income to pay rent. Really interesting article from CNBC's, Kathleen Elkins. Selected this article for you because I realized it hits a lot of different possibilities. Maybe you're a young person who wants to travel the world or you're a retiree wondering how to make your money go farther. Perhaps you love to travel, can work from anywhere and are thinking of what city to have as a hub for a while. Typically the deals are in the emerging market countries, known as BRICS. Article is posted on my website at http://lindapjones.com, podcast 287. Please subscribe and leave me a review on iTunes or Stitcher Radio. Connect with me on social media at Twitter and IG @Lindapjones and Facebook @lindapjonesfanpage. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.