How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $ 's, etc., etc., etc. If you are asking this question, congratulations because you are ahead of most. All of us have been there at some point.

I must warn you …. What I am about to share here for free is what "gurus" across the nation charge thousands of dollars for in weekend seminars. The "secrets" disclosed are going to seem pretty simple because quite frankly, there are no secrets. The methods used here have been done for centuries and there is no real reason to complicate them. Let's apply these principles to see how fast someone might become financially independent without betting the farm.

Realize that everyone has wildly different starting points and different financial goals. For this series of articles, we assume that an individual has access to at least $ 15,000 liquid capital (or home equity) to start, is at least breaking even with their current income income expenses, and has decent credit to obtain financing. Note there yet? …. See the footnote below.

To start, what you need is to make your money grow while keeping your current income stream, and current expense level in place. I can not say this more plainly ….. To change your current financial path, you have to us your money and your time to grow additional income streams that increase wealth. There is many ways to do this but we are going to use investing in real estate as an example.

Now for beginners, here is the really bad news …… As an investor, you reap rewards by placing your money in HARMS WAY. You do everything in your power to minimize your risk but bottom line is that real investors make money by taking CONTROLLED risks. As investors get better, they learn how to make fantastic investment returns doing things that all their friends and relatives thing is crazy ….. However, they know exactly what risks are small in comparison to the potential Rewards.

One reason people really like real estate investing is leaseage; Ie, you can purchase an expensive property using 0-20% of your own money while financing the rest. So if you put 10% down for example, and then the property goes up by 20%, you have made a 200% return (ignoring expenses, taxes, etc. for simplicity). Of course this works in reverse … If the property drops by 20%, you have lost not only your original investment but have to come up with another 10% as well ….. Ouch!

For someone beginning, here is what I would suggest:
1) Look for an opportunity that will return at least 150% in 2 yrs or less;

2) Be mentally and financially prepared if the investment does not work out;

3) Have VERY good reasons why you do not think you will lose money …… You may not make as much as expected but you would rather not lose money at this stage.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan.

In our Mastermind Group, we are bringing out a land project (see related article Land Investing that appears to meet these criteria (each investor has to decide for themselves.) So let's say the purchase price is $ 150,000, with 10% down and another $ 3,500 In closing costs. With good credit, then the financing obtained would make the land payments for 2 years while waiting for growth.

Now let's say after you did your analysis, looked at what had happened in the past, looked at why you thought more and more people would want this property, etc., you decide that you think this property will average 20% / Yr escalation over The next 2 years. MORE IMPORTANTLY, you decide that barring a major meltdown in the market, you think there is little chance that you can not at least break even after 2 years.

So if you end up being right about the growth, then you might net a tidy $ 43,000 (before taxes) or so after everything is considered. After long term capital gains at 15% let's say, then you just picked up about $ 36,000 of the "market's money". That is money that if you take a loss on the next investment will not be nearly as painful as if you lost your original money. When you combine this with your original investment amount, you now have around $ 55,000 of operating capital for step 2.

Realistically, you can not predict how much you will make from the investment. When I invest, I try to establish in my mind what is reasonable. Frequently, I have been surprised to the positive and made much more than expected. Sometimes I have made less. The key being put to yourself in a low risk situation where you have a strong reason to believe the market will go in your favor.

To accomplish this first step, let's look at what you really had to do:

1) Had to be willing to put $$ in harm's way;

2) Had to educate yourself enough to evaluate the risk and the opportunity;

3) Had to find the opportunity or be in a position to have the opportunity presented to them;

4) Had to act.

I would like to comment on the education side. As a former professor, I have seen very smart people spend 1,000's of hours and 10,000's of thousands of dollars educating themselves to "earn a living"; This is a great move in many cases. On the other side, I have seen very smart people who want investing to be a major source of income but will not spend any time or any money educating themselves.

To me, this is a recipe for disaster. By the time we finish this series, you will see that with a few simple steps, implemented over time, many people can easily produce more money than their regular job. Tomorrowmore, many people will put 100's of thousands of dollars at risk but know almost nothing about what they are doing. If you chose the path of making your investment dollars grow steadily with time, I hope this does not end up describing you.

** Footnote: If you are not yet at that level, here is what I suggest. First, read Michael Masterson's book called "Automatic Wealth". This is an excellent book on how to quickly change your financial position while staying employed. Next, I would read Van Tharp's new book called "Safe Paths To Financial Freedom". Van uses a very different thought process from many and so adds a great deal of rounding. Like anything else, you will not agree with everything written in these books but they provide some great thought processes. When you have some capital and are cash flow positive, they come back and revisit this article.

Connotation and Denotation in Literature

As long as literary usage is concerned, the term "denotation" means primary significance or reference of a word; Whereas "connotation" of a word means a range of secondary or associated significations that the word implies. For instance; "Home" denotes the house in which one lives whereas it connotes intimacy and privacy.

In broader sense, the connotation of a word consist of a range of meanings or significations and which one the word really connotes that depends on the context in which the word is used. As far as poetry is concerned, the words share concepts with both denotative as well as connotative meanings. And it's up to the reader how to evaluate the words. In this respect, George Herbert's poem "Virtue" needs to be taken into consideration:

Sweet day, so cool, so calm, so bright,
The bridal of the earth and the sky …

The word "bridal" has both connotative as well as denotative meanings. The denotation of the word means that a union between human beings. The word stands for "ground" and functions as a metaphor to facilitate union of the earth and the sky. On the other hand, the connotation of the word "bridal" is sacred or ceremonial. Moreover, the meaning of the word is similar to "marriage".

The second example I wish to offer is a portion from John Keats's "Ode to a Nightingale" where the connotative meaning of the word gets changes according to the way it is spelled:

Charmed magic casements, opening on the foam
Of perilous seas, in faery lands forlorn,

You will notice that the use of "faery" instead of "fairy" evokes the connotation of antiquity and wonderful world of Spenser's "The Faerie Queene" .

These are some of the examples to see how connotation and denotation overlaps! You can only distinguish the meaningings according to the content in which words are used. As far as the language of literature is concerned, you'll see the presence of both and it is up to the reader to appreciate the work of art considering the proper connotative or denotative meaning.

In short, denotation refers to the literal meaning of a word, or the dictionary definition. Connotation, on the other hand, refers to the associations that are attached to a particular word or the emotional suggestions associated with that word. The connotative meanings of a particular word exist in conjunction with the denotative meanings. So, both share distinct features as long as meanings of a word is concerned.

Wallrock Thermal Liners for a Building's Energy Efficiency

The Wallrock thermal liners have been used for the past few years but had remained an undisclosed breakthrough to the world. These wall coverings are manufactured with the aim to offer multiple benefits to their users. On top of the features' list is an energy-efficient thermal insulation to your buildings. In addition to this, these coverings give a stylish look to your existing rough plaster or textured wall surface by converting it to a smooth and plain surface. A few other features include soundproofing, damp fixation, and mold resistance.

Wallrock thermal liners carry the following benefits (but are not limited to these only);

  • A fast room cooling or warming with minimum energy consumption
  • A good fire rating
  • Free of any undesirable plastics like PVC / fiberglass
  • Hide the rough surfaces
  • Return a smooth and plain surface, ready for paint or other wallpapers
  • Induce an essence of breathing to your walls
  • Overcome the molds and dumps

The technology was originally developed for the automotive and space industry. To offer you the best of all the above-mentioned features, we have added more value to the existing technology by using our research and experience. A detailed explanation of working mechanisms for the above-mentioned features is presented below.

Saving the Energy:

If the rooms are lined with the Wallrock thermal wall covering, these are actually capable of reflecting warm air from walls back to the room environment. So the highest amount of heat is present to warm up your room consuming less amount of energy. The warm-up time is also reduced up to 65% as compared to same for the rooms with no such liners. If an automatic control of the heating system is utilized (ie using a thermostat), this will act as a booster for energy-saving.

Now let us see that what happens if there are no such covers on your room walls. Your heating system will initially heat the room walls themselves, and only after that, the room air can be warmed up. One might think about what magical property does these thermal liners possess? These actually give a thermal insulation between room air and wall so act as a cold reservoir for your heat energy. So the wall covering quickly warm up your room to a comfortable temperature. This energy-saving feature is also effective for the buildings equipped with ETICS (External Thermal Insulating Composite Systems).

To give you an idea, if a conventionally designed room takes about 100 minutes to warm up its air to 21 degree Celsius, the same warmth can be achieved in only 25 minutes by just adding these thermal wall coverings.

Mold Resistance:

You probably know that the room walls possess a lower temperature than the ambient room temperature, this welcomes the mold formation. This is the reason mold formation is more common for a rooms' outer walls as well as those near windows and doors. This affinity towards mold formation is due to condensation of warm room air over the colder walls. Such walls are actually pronounced to mold formation.

The Wallrock thermal wall covers provide the best solution to such problems. These permeable coverings offer an insulation between walls and room air, thus reducing condensation, moisture and mold formation.

Sound Proofing:

These thermal liners are capable of absorbing noise with a higher degree so rewarding you with an acoustically pleasant room environment. Even with an unpainted or uncoovered covering, the audible sound is absorbed to a factor of 0.02. This factor is equal to the performance of a velor carpet with 5 mm thickness for acoustic absorption.

Crack and Texture Coverage:

These liners are made up of flexible elastic fibers, and their thickness is capable of covering the class A and class B cracks in the wall surfaces. In addition to this, these are also capable of hiding the low to medium level textures on wall surfaces without any need of pre-levelling.

Now let's come to the specific point. If you need a high-quality thermal wall covering, we recommend you to choose the Wallrock KV600 thermal liner. It is actually an improved version of an existing thermal fiber liner backed with a novel thermal insulation material. The thickness is reduced to 25% of the conventional wall liners but benefits are almost doubled. You will not only get a quick warm up of your room but also this will save the heat energy to a greater extent thus reducing your utility bills.

In summary, the 3.2 mm thick KV600 is a highly durable wallrock thermal wall covering , which offers you mold and damp resistance, cracks coverage and sound proofing to a high extent as compared to conventional coverings.

How to Save Money on Your Calls While You Travel


If you know you will be traveling in the near future, start planning for it. Many calling providers have special plans for use abroad . If your provider does – you might want to use it. Typically, they offer an add-on for a small charge a day. If you are the type of person that spends a lot of time on your phone, it is probably worth it to go for that add-on to your regular plan. Just remember to stop it when you get back, you do not want to be paying that extra charge forever.

If you provider does not have an international add-on or you do not want to use it, there are still plenty of other options to call your home town while you are abroad at a cheaper rate.

Consider buying a local SIM when you are abroad. This is an excellent solution if you travel to the same place often or if you are going to stay in the same place for a long time. When you buy a local SIM card in the place you are visiting, you will usually pay for a bundle of minutes and the price will probably work out a lot cheaper than using your regular phone plan plus you will not need to pay roaming (in Most countries).

If you have a locked phone, you will not be able to use a foreign SIM card without unlocking your phone first.

You can also buy a local calling card which you can then use to call from hotel phones, pay phones … Calling cards are not that popular anymore these day, but if you need a solution for cheap international calling then they are a good option . Also here you have the advantage that there are no roaming costs.


Whenever you need to make a call, think of what you want to say beforehand . This will usually make your call shorter and it will also prevent you from forgetting to say something and then needing to call back.

Text messages are cheaper than calls, so sometimes it may be worth it to send a text message instead of calling , if it is just a short message you need to give over. Remember that text messages are free to receive while calls are not. If someone needs to tell you something, ask them to text instead of call.

Beware though that a back-and-forth text conversation will probably work out the same price as a phone call.

Even if you do not call abroad, you need to pay for incoming calls – so you need to pay when people call you and also some provide make you pay if someone leaves you a voicemail while you are abroad (depending on the country you are In).

You can eliminate at least one of these problems by deciding – do you want people to be able to contact you while abroad or do you want to enjoy you holiday in peace and quiet without being disturbed by anyone calling?

If you do not want to speak to anyone, divert all your calls to voicemail . This way you will not be charged for roaming. You might have to pay if anyone leaves a message for you though.

If you do want to stay in contact with people and answer calls, then disable voicemail . This will eliminate any charges for voicemail (if applicable) and when your phone rings you will be able to see who is calling and decide if you want to answer of not. If you answer you will need to pay roaming charge and if you do not answer, there will be no charge.

Do not listen to voicemail when you are abroad unless you really have to. Calls to voicemail are charged at the same rate as regular calls so you can end up paying a lot of money for just listening to your voicemail.


For many people, high phone bills when abroad do not actually come from speaking on the phone that much, but rather from high data usage. When abroad, your provider will charge you a high rate per megabyte used. If you need to use the internet then by all means use free WiFi when possible, there are loads of places where you can get free WiFi. Some hotels offer you internet at a small charge but that will probably still be cheaper than using mobile data. Just to make sure your phone does not switch to data automatically, it is best to switch off your data for the duration of your stay.

If you are using your phone for GPS and need to download maps, do so before your trip or when you have WiFi. Many navigation programs allow you to download the map beforehand and once it is downloaded no internet is needed for the navigation itself.


Many people these days are turning to internet calling when they are abroad as it offers so many benefits. Internet calls are practically free if both end users are on the same network and provided there is WiFi. If there is no WiFi then you need to count in the cost of data. If both users are not on the same network, then there is a small charge for using VoIP but it is still a lot cheaper that using your regular phone plan.

So obviously the price is a major factor as to why people use VoIP when abroad. But also, VoIP is not connected to a physical place so it can be taken anywhere. Think of business people who want to keep the same number when traveling. With a business phone this would be impossible but with VoIP, people can call you anywhere if you have your mobile / PC with you and there is no roaming charge.

In addition, many VoIP service providers offer features that are not offered with standard phone plans. These may include video calling, sending locations, group chats, and more

There are different types of internet calling:

• Phone to phone calls – using regular phones, VoIP adapters are used to connect the phones to the internet. If both end users are on the same network – the call will be free. If they are on different networks – there will be a small charge.

Calls can also be made using IP phones instead of VoIP adapters to make the calls.

• PC to PC calls – using an app to make calls between PCs.

If the person you are calling has the same app on his PC – the call will be free. If the person you are calling does not have that app there will be a small charge.

• PC to phone calls – make calls from PC to a phone.

If you are calling a phone on the same network the call will be free. If the phone is not on the same network, there will be a small charge.

• Mobile to mobile calls – using an app to make the calls between the mobiles.

If the person you are calling has the same app on his PC – the call will be free. If the person you are calling does not have that app there will be a small charge.

Many apps also allow you to call mobile to PC and PC to mobile.

Whatever type of calling you use while abroad, if you plan a little before your trip you definitely save yourself a lot of money in the end