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Millionaire tip of the day- The definition of "LOSER"

STR8UP

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I know a guy, lets call him Mark.

If you look up the word "loser" in the dictionary, you will see a picture of Mark.

Mark is 25 years old and still lives with his parents. He wrecked his car a few years back so his parents gave him an old beater. Since then he managed to rack up a whopping $10k in credit card debt and decided to claim bankruptcy so he wouldn't have to pay it back.

Mark works sporatically doing odd jobs for my business partners, all of whom are well connected and well to do financially. He does a pretty good job (which is probably the only reason why we keep him around), but trying to get him to show up is like pulling teeth. He always expects lunch to be bought for him, always needs gas money, snack money, money to buy supplies, money this, and money that. He is always standing right there with his hand out waiting to get paid the SECOND he finishes with a job.

Mark is the kind of person who thinks that people who are successful are simply lucky. He doesn't give anyone credit for creating their own success, and he refuses to take responsibility for anything bad that happens to him. I have found that people like Mark usually receive more than their share of "bad luck". Could their attitude have anything to do with it?

If Mark would take his head out of his ass long enough to look around him he would see that he is surrounded by people who are very smart and talented when it comes to money. In fact, one of my partners tried to train him to learn the ins-and-outs of his business, yet Mark would rather sit around all day and complain how he isn't making enough money rather than work, listen, and learn from people who know how to make lots of money. Mark has SO MANY opportunites staring him in the face, yet he is too ignorant, lazy, and [insert word for someone who always blames others for his situation] to open his eyes and see it.

Don't be like Mark. Get out there and work with someone who is well on their way to becoming wealthy. A business owner, real estate investor, someone who is going places. Offer to work for free (yes, I said FREE) in exchange for him or her teaching you what they know about money. The first question you should ask them is, "What can I do for YOU?"

Don't go through life like Mark blaming everyone else for your problems. KNOW that the art and science of building wealth is something that can be taught and learned, and it is entirely within the grasp of anyone who is willing to do what it takes to get there.

And don't be so stupid as to file bankruptcy for a measly $10k in debt. Mark will never learn, but YOUR credit score is FAR too important to ruin because you are too lazy to work off a debt.
 

RaWBLooD

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Opportunity is missed by most people because it is dressed in overalls and looks like work
 

Page

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Str8up, I could top your story. At least your guy works.

My neighbour is this guy that is in his 40s --- I'd say even as old as 45, and he sits around at his parent's house all day and doesn't do shyt. I don't know what his situation is, and I really don't want to know the specifics, but there's something about not working, driving a car that is nearly rusted through in some places, and leeching off of your parents that has "deadbeat" written all over it. If I left and came back in 5 years he would probably be right where he is now.


He gets pissed off for no real reason (some of my shrubs were hanging over onto his land, and he was pissed off about that-- I was planning to have them pruned anyway) and I've had to tell him off a few times. (He once threatened to come over to my place and start some shyt after i got done telling him off, but I told him that if he came over I'd have the cops haul his a$$ off to jail-- he ended up backing down) I heard from some of the other people that knew this guy about 10 years ago and they told me that he used to do PCP and it once took 6 cops to hold this guy down when he was tripped up on that shyt.
This guy could probably work and do something menial if he wanted to, but he's not quite right in the head (probably from all the PCP) so he isn't qualified for too much. His parents are old enough to be on social security, and they have to take care of his worthless a$$, which sucks for them.
 

diablo

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I heard a saying once... "If you owe the bank $10,000, it's your problem. If you owe the bank $10,000,000, it's the bank's problem."
 

STR8UP

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Originally posted by diablo
I heard a saying once... "If you owe the bank $10,000, it's your problem. If you owe the bank $10,000,000, it's the bank's problem."
It's only the bank's problem if you aren't paying them back. They will love you forever if you don't default.

Credit is ESSENTIAL to building wealth quickly. Anyone who screws up their credit over $10k is IGNORANT and LAZY, period. I know it's all relative, but that amount of money is chump change.

This guy is SO focused on getting through today that he will never get out of his rut. And he wonders why one day is just as pitiful for him as the last, and the one before that, and the one before that.

Every financial decision you make today has an effect on your financial future. If you want to be wealthy start thinking about where you want to be in a few years and start planning how to get there.
 

A-Unit

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Re:

Bringing reality to the forefront on debt, Bush's law passed on debt now. It will hurt those under 35 and those over 60 most. Why?

Under old law, one could declare Chapter 7 and hopefully have their debts whipped away, wait 7+ years and start fresh. No more.

If it is deemed you can pay, you will pay. Certain income threshholds will apply, so even if you're a sob story believing on your budget you can't, your debts will not be expunged. There are people earning 30k+ not making their payments and would vanquish their record if the could. This won't be the case anymore. Kids graduating college with tremendous debt, student loans coming due, and the lack of viable job prospects to pay the balances will stick until paid for.

As the law was being put into effect, those considering declaring bankruptcy rushed to get in under the old law and be "grandfathered" so as to whip their record clean and start fresh. Sure, they won't be able to borrow for a few years, but they also won't have the going obligation of debt either.

IMO, this is a tough situation. There are those who get thrust into debt, not through imprudent planning, but through divorce. It will also hurt the entrepreneur who seeks begin a business yet has little funds. A sole proprietor will not be able to borrow funds without threat of requiring to pay the debt off if things go awry. I believe this to be the case if someone had tried to so just as the market was crashing. That may not have survived the lean years and would still be liable for the debt under new rules, now.

Hopefully the emphasis will now be on more financial education for people so as to know all their options, duties, and responsibilities.



A-unit
 

bullmoose

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I have a next door neighbor -- I live in a top-floor view condo in an affluent area of Seattle -- who inherited his place from his father. He owes nothing on it except homeowner's dues every month, around $200. The guy's in his 40's. He doesn't work, he's missing a couple of teeth, & he's meth-skinny with really bad skin. He's had a succession of broken-down cars in his parking space, and for the last 3-4 months he's been letting his junkie friends use the place as a crash pad. He has strung-out, meth-smelling fvckheads coming and going at all hours of the day, seven days a week. (An aside -- how can anyone smell that bad and not be dead? Meth users smell like spoiled meat wrapped in burnt electrical wiring.)

I've looked inside; there is no furniture, there are no appliances, there isn't even any carpeting -- it's just bare subflooring littered with 40-oz bottles, dirty clothes, and ashtrays. I've found syringes in the parking lot (four stories under his deck) and a couple weeks ago I found a shattered crack pipe in the dryer (shared laundry rooms on each floor.) I've called the cops a couple of times when they've been loud, but except for the drugs -- which I can't prove and the evidence of which, I'm told, is not enough for a warrant -- they're not doing anything illegal. Technically.

But let's talk loser.

Guy's sitting on (what was) a $300,000+ top-floor view condo and he's running it into the ground. I just hope I can buy the fvcker from him; I've offered twice, now -- I could put in carpeting, appliances, and paint it in a weekend, and still clear fifty grand easy after closing costs. Plus, he'd be walking away with a quarter mil in his pocket -- maybe get his teeth fixed, buy a nice car and a place in the suburbs. But no, he'd rather use it as a penthouse crack den. It's only a matter of time before one of his junkie friends gives me $#!+ and I throw him through a wall. Then *I* go to jail. Nice, huh?
 

bullmoose

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On bankruptcy:

The typical millionaire entrepreneur in America today has declared bankruptcy more than once. I forget the exact stats but they're astounding. The average was something like four bankruptcies (including businesses they owned that went bankrupt, I'd imagine.)

The vast majority of small businesses fail. Most owners of failed businesses go bankrupt themselves.

By removing Chapter 7, Bush & Co. have declared open war on small business.

Of course, this is the same President who told us that, "The French don't have a word for entrepreneur."
 

A-Unit

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Re:

I'd say many owners declare bankrtupcy, BUT the key diff. being that it's done via a corporation or some other means. When Donald Trump declared it the innumerable times he has, it didn't effect him personally.



The rich don't own assets, the merely control them and reap the benefits. Control implies liability and therefore risk.


A new business, sole proprietor can't get a loan on a business that has no income, and they don't simply lend on the good faith of a non-existent business. Hence why many start with personal loans to build empires. Not saying it can't be done, for we all must be big thinkers and big doers, BUT, it's something to be aware of as a tool, since it does impact legal and financial rules of wealth building.



A-Unit
 

Derek Flint

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Bush is holding people accountable for their irresponsilbe actions - how dare he?
 

STR8UP

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Re: Re:

Originally posted by A-Unit
Kids graduating college with tremendous debt, student loans coming due, and the lack of viable job prospects to pay the balances will stick until paid for.
Which is how it should be.

IMO, this is a tough situation. There are those who get thrust into debt, not through imprudent planning, but through divorce.
I hate to say it, but divorce IS a result of imprudent planning. I realize that people change and things happen, and whatever, but the fact of the matter is that noone forces any of us to get married or to marry any particular person. If you think there is ANY POSSIBLE WAY that the person you are marrying might turn out to be the type who would take you to the cleaners in the event of a divorce, you don't have any business marrying her. And yes, I do realize that you can't always spot these kinds of things easily, but if you are on track to building a fortune you better do your due dilligence before signing ANY contract, including one that says you are obligated to a woman for the rest of your life.

Although I don't consciously associate my financial situation with my relationship situations, the fact that I am very close to being financially set for the rest of my life and that I am in my mid 30's but have never been married has to be more than a coincidence. At this point in my life I would be crazy to tie the knot.

Bottom line- you have a choice whether or not to marry, deal with whatever it brings you, good or bad.

It will also hurt the entrepreneur who seeks begin a business yet has little funds. A sole proprietor will not be able to borrow funds without threat of requiring to pay the debt off if things go awry. I believe this to be the case if someone had tried to so just as the market was crashing. That may not have survived the lean years and would still be liable for the debt under new rules, now.
I get the impression that you are in favor of people having an easy way out of their obligations?

You have to understand that when one person is unwilling or unable (unable= mentally ill or brain damaged....pretty much everyone else IS able) the burden of paying that money back is inevitably going to get shoved on other people one way or another. How is it fair for me to have to pay for someone else's problems?

Money doesn't fall from the sky and it doesn't grow on trees. Every action has a consequence. If you are able to agree to taking on a debt there is no excuse for not working it off, plain and simple.

Hopefully the emphasis will now be on more financial education for people so as to know all their options, duties, and responsibilities.

A-unit
You are correct about financial education being important. It's easy to get in over your head with credit being easy to come by. I'm sure at least some of this bankruptcy business could be avoided with some mandatory financial training in schools. Too bad it isn't going to happen anytime soon.
 

MackJr

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If you think there is ANY POSSIBLE WAY that the person you are marrying might turn out to be the type who would take you to the cleaners in the event of a divorce, you don't have any business marrying her
The problem is, I think just about any woman would try to take you to the cleaners in a divorce. They think of it as an entitlement. The only way around it, I think is a prenup.
 

diplomatic_lies

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I think declaring bankruptcy just because you're coming across problems are a little irresponsible. Especially if other people stand to lose a lot. I've had contracted work for one business in the past, who declared bankruptcy, and I was never paid for my work.


He does a pretty good job (which is probably the only reason why we keep him around), but trying to get him to show up is like pulling teeth.
I think this is interesting. Personally when I hire someone (freelancers especially), I prefer that they complete their job on time, rather than do it extremely well but failing to meet the deadline.
 

STR8UP

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Originally posted by diplomatic_lies
I think declaring bankruptcy just because you're coming across problems are a little irresponsible. Especially if other people stand to lose a lot. I've had contracted work for one business in the past, who declared bankruptcy, and I was never paid for my work.
That reminds me of someone I know who had a VERY successful business that generated several hundred thousand dollars per year in profits. Everything was great until a few of the businesses she had contracts with decided to run up six-figure tabs and declare bankruptcy, sticking her with having to pay her employees with money she never collected.

Long story short- she is no longer in business. People should be held accountable for their actions!
 

Page

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Originally posted by MackJr
The problem is, I think just about any woman would try to take you to the cleaners in a divorce. They think of it as an entitlement. The only way around it, I think is a prenup.
Trump devotes a whole chapter in one of his books to outlining the importance of prenups. In short, anyone who gets married without a prenup has a good possiblility of getting his bones picked clean in a divorce, and I'm amazed at the numbers of guys that are practically baring their necks for the executioner's blade when they get married without ever signing a prenup.

I also wonder if the power of corporation would protect you in a divorce. It goes a long way to protect you from litigation, so maybe its similar.
 

STR8UP

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Originally posted by Page
In short, anyone who gets married without a prenup has a good possiblility of getting his bones picked clean in a divorce, and I'm amazed at the numbers of guys that are practically baring their necks for the executioner's blade when they get married without ever signing a prenup.
I can understand that many times a woman makes certain sacrifices going into a marriage and deserves to be taken care of in a divorce situation, BUT......lots of times the man has busted his ass to build an empire and a divorce allows a woman to waltz in and claim a share. NOT COOL. Same goes for a woman who either enters into the relationship with money or is mainly responsible for creating the wealth DURING the marriage.

I just broke up with my g/f after 2 yrs. Found out she was cheating on me (don't think it went very far but I consider it cheating nonetheless). After I caught her cheating I found out to my shock and amazement that she had no problem lying to me and weaving crazy stories and excuses about what happened. I didn't figure this out until I was with her for TWO YEARS. I sure am glad I found out what kind of person she is NOW before I married her and realized she was capable of cleaning me out not only emotionally but financialy as well.

My biz partner and I decided years ago that if either of us got married we would be sure to sign a prenup. This was even before we really had any assets. Now that I am on the threshold of being financially set for the rest of my life, there is NO WAY some vindictive beeotch is take what I have spent YEARS building. I will stay single forever before I let that happen.
 

STR8UP

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Originally posted by DoubleJuan
prenups are pretty worthless
Yea, if you ride a Schwinn and live with your mom
 

Cappy da pimp

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Guys I cant agree more with you. I just recently had the privalege of hearing Dr William Danko, co author of The Millionare Next Door speak at my university. Actually hes a professor and I should have a class with him next semester.

During his presentation he emphasized that fininacial independence was not obtained through luck or inherited money, well in some cases. He said it is up to YOU. We are in charge of our own future. It is up to us as individuals to go and create our wealth and success, whatever it may be for us personally.
 

WORKEROUTER

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"Get out there and work with someone who is well on their way to becoming wealthy. A business owner, real estate investor, someone who is going places. Offer to work for free (yes, I said FREE) in exchange for him or her teaching you what they know about money. The first question you should ask them is, "What can I do for YOU?""

Str8up:

What would you suggest for me if I wanted to make these kind of connections? How would I go about finding people and doing it? I know I can read books and educate myself that way, but I really don't have any connections of the sort that you describe?
 
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