Growing Money

As part of my journey to achieving financial success, I have always been juggling multiple projects and pushing myself to learn more and work harder. I have a full-time job and a stable income now, but I always want to achieve more. I know I have to work harder and smarter everyday to become better than the person I was yesterday. I am always looking for opportunities to make more money and this year has opened doors to higher potential profits.

The stock market has dropped significantly and will become a good opportunity for long term stock picks as well as short term swing trades. I spend about two hours looking at the stock market and doing my personal research every day. I have been netting a profit of around 20% annual since the year that I started investing in 2002. I hope to make a nice profit by the end of this year and bring up my annual average percentage gains.

The house market has also tanked, and that be a signal to look for cheap real estate bargains. I plan on looking at some real estate this year and try to make a purchase while the mortgage interest rates are still low.

I already own a rental property in Philadelphia. I was happy about it until this year. My tenants have called me many times and reported issues. I have spent a great deal of time coordinating repairs since I live two hours away in NYC.

I have been discussing with people about creating e-commerce businesses. One of the businesses I wanted to do is create an online store for health products, and the other one is to create an online store for electronic products.

This year has been busy so far and certainly will become busier for me. I hope all things will go well and will keep posting status here.

Summary and Status

Full Time Day Job
I am currently working on a project to build a unified time and attendance system for the government. It is a long term project that will last several years and the estimate total cost of the whole project is $500 million.

Stock Market - Short Term Trading / Portfolio Building
I love to trade in the stock market. I have a long term portfolio, but I also like to play with short term trades. I spent my late evenings doing research on individual companies and the stock market and plan what to buy before the day begins.

Rental Property
Up until this year, the rental business has been doing well for me. However, this year, I have spent a lot of time dealing with the tenants and repair workers to maintain the house.

Company website
I am self-employed and have registered a company. I created a website for my consultant business. Currently, the website does not contain any information but the title of the company. I will need to work on the contents of the website and post up more information about the company.

E-commerce store #1 - Health Products
Health products are becoming more popular as people become more health conscious. This growing health trend will allow me to start up a business and grow in the health products market.

I am in the works of creating an e-commerce business that sells health products. I am currently talking to some people that will join me in this business.

E-commerce store #2 - Electronic Products
I want to start an e-commerce business that sells electronic products. I am looking for electronic products that has the potential to do well in this competitive market. I talked to some people that will be looking for these kinds of products, but I have no solid leads on this yet.

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A friend from work recently received a wonderful job offer from an Australian company and had been contemplating whether to accept it. Let’s call my friend, Nav. The new job offered a competitive compensation package, but the new job would also require Nav to relocate to Brisbane, Australia. Nav was in a dilemma. He had to decide whether to stay in New York City, where he was having a good time or to move to Brisbane, where he was unclear of the lifestyle there.

I asked Nav to weigh the pros and cons of the two jobs, the one he currently had and the new job offer. First, I asked what the Australian company was offering him.

The job offer in Australia was a consultant gig for an Australian government project, with a 6 month trial period, but the project was expected to last 3 years. The Australian company offered him AU$125 per hour (about USD$114) for his compensation. The Australian company also agreed to reimburse him for the first flight to Brisbane, Australia. The working hours were generally from 9 am to 5 pm, which is common for most government-related projects.

Next I wanted to know more about his current position in NYC. I asked about his current compensation package and his thoughts on NYC.

Nav was currently working on a government project for NYC agencies and was offered approximately USD$60 per hour. The working hours were generally from 9 am to 5 pm. Nav was from Toronto and made flights back home almost every weekend. He enjoyed the short trips home and would have to sacrifice this luxury if he were to relocate to Brisbane, Australia.

He had moved to NYC for less than a year and had no plans to leave anytime soon. He lived in a key location in the city and was steps away from work. Furthermore, his home was in the center of a shopping area and was near the hubs to mass transportation. He had gotten used to the nightlife and enjoyed short cab rides home in the middle of the night. He was concerned if he would be able to live the same lifestyle in Brisbane.

I had never been to Australia, but I have been told that the people there enjoy nice lifestyles and night lives similar to NYC. Since Nav was young (27 years old) and single, I told him that there was little he could lose. If anything was at stake, his wallet would get fatter. The Australian company was offering more money, almost double his current rate.

I pointed out that Brisbane, Australia would be a new place for him and it would be exciting to explore new places. Nav agreed with my point and had also heard many good things from people who have been in Australia. He would like to visit a country in the Pacific Coast region and would like to experience the lifestyle there. I pointed out that the climate there would be warm and it would be fun to relax on the beaches during the weekends. Since he worked out often, he could show off his strong physique.

I told him that the decision ultimately lies in his hands. Nav was reluctantly to leave NYC, because he had come to love NYC and NYC had now become his second home. I pointed out that he could always come back to NYC if the Australian project did not work out for him, but he said that he would eventually return home to Toronto.

Comparing compensation packages, I pointed out that the Australian job offered almost double his current pay and in that respect, the Australian job offer would win hands down. As for traveling home, even though the distance was farther from Toronto, I suggested that he could visit his Toronto home for less frequent periods, say once every 3-6 months, but request to stay at home for a longer period, and if possible, to work from his Toronto home during his trip.

The Australian compensation was certainly attractive. At USD$114 per hour, it was equivalent to an annual salary of USD$228,000. He was currently making USD$60 per hour, or an annualized salary of USD$120,000. In my view, the extra money he would make in Brisbane would definitely aid in building a larger net worth and would be resourceful for future investments. However, Nav might have a different perspective, because his long term goals might be different. Regardless, even he might not have defined long term goals, I pointed out that making extra money would never be a negative thing.

I laid out the options of both sides for him. I introduced my point of view and pointed out things that he might have missed. Here’s a summary comparison that lists the pros and cons during our conversation:

NYC
$60/hour, or an annualized salary of USD$120,000
Vibrant lifestyle/night life
Apartment is close to work
Easily accessible to transportation and entertainment places
Closer to Toronto (one-hour flight)

Brisbane
$114/hour, or an annualized salary of USD$228,000
Possible fun lifestyle
Warmer climate
Work experience in the Pacific Coast region

Nav had to make up his mind soon and respond to the job offer by the following Monday. I told him to think about it carefully and focus on his long term goals. I mentioned that it would be a win/win situation for him with either option. If he chose to stay in NYC, then he would continue to enjoy the city he always wanted to live in, and if he chose to relocate to Brisbane, then he would explore a new culture and be well compensated for it.

On the following Monday, he decided to accept the job offer in Brisbane, Australia. However, the Brisbane company would still need to confirm the position on their side, so Nav had to wait for a response. Since the ball was no longer on his court, Nav felt relieved and he would be satisfied with any outcome from the Brisbane company. For the time being, he would continue to live and party like a New Yorker.

Update: Nav received a confirmation from the company in Brisbane and will be departing to Brisbane on March 21, 2008.

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Here is a great post about making a six figure salary on My Money Blog. My salary is going up every year. I will be making the six figure salary by next year. In two years, I expect to double my salary from now.

What is your current salary and what is your targeted salary in the next two years?

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Bank of New York
Summer of 1998
Total: $2240 (@8.00/hour)

I was cleaning up and I found an old W-2 form from my Bank of New York internship in 1998. The total amount on the form was $2240, which was the total amount I made during that summer. I worked in desktop support and was paid $8 an hour. In comparison, the minimum wage in New York was at $4.25. I was earning nearly double the minimum wage. At that time, I thought $2240 for the summer was a lot of money.

I think back and I still remember my first job. I applied in the New York’s Summer Youth Employment Program and was accepted to a Food Service Center. I was 14 years old and was paid $4.25 an hour. For the whole summer, I made $600. I was so happy because I actually made money for the first time.

The times have changed. I looked back at these financial statements and think about how much I have come along. At first, the financial statements brought back memories, and I relived my past in my head for several seconds. Then I snapped back to reality and smirked at the amounts I used to make. Now, I can make $2240 in one stock trade in a day. My earnings power has grown since, hundreds of percents from 1998. Certainly, inflation has helped grown my earnings, but my drive to succeed was the biggest factor for the increase.

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Looking for ways to get more done in less time? Learn how to work smarter, not harder, with these 10 productivity tips.

1. Commit to a Time Management System.
   If you’re not using that fancy new time management software you bought, it’s probably not the right one for you. There are a lot of great time management tools available, so take the time to do some research and find one that fits your work style. Some people swear by their trusty PDAs, while others prefer paper systems.
2. Touch It Once.
   You’ve heard this one before, but it bears repeating. Touch a piece of paper only once and then move on. Deal with each piece of paper by taking action on it. Pay the bill, file the document, delegate the work or throw it out.
3. Finish Tough Tasks First.
   Set aside time at the beginning of your day to work on your most important or difficult project. You’ll set a productive tone for the rest of the day and avoid procrastination.
4. Do One Thing at a Time.
   Multi-tasking is overrated. Concentrate your full attention on the task at hand. You’ll get better results in less time.
5. Eliminate Distractions.
   Checking email, responding to instant messages and answering phone calls can quickly get you off track. Try to tune these things out so you can accomplish everything on your to-do list.
6. Schedule Your Telephone Calls.
   Don’t grab the phone every time it rings. Set aside specific times to schedule phone meetings and to return calls.
7. Consolidate Appointments.
   Schedule appointments only in the morning, afternoon or on certain days of the week. Group nearby appointments together to cut out travel time.
8. Leverage Down Time.
   Always carry work or reading material with you. That way you’ll always have something to do if you find unexpected downtime.
9. Work at Peak.
   Identify the times of day when you work best. Use this time to focus on your most challenging or important assignments.
10. Take Time to Wrap Up the Day.
    Spend 15 minutes at the end of each day to clear your desk and prepare a to-do list for tomorrow. Decide on your top 3 priorities for the next day so you can hit the ground running.

Source: http://www.citibank.com/us/cards/business/business-info/protips-jul07.htm

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This is the latest salary comparison table. Here is a link to the last post.

Year : Salary : Percentage Increase Over The Previous Year
2002 : $37,000
2003 : $38,500 : 4%
2004 : $40,500 : 5%
2005 : $45,000 : 11%
2006 : $50,250 : 12%
2006 : $70,000 : 39% <– New Job
2007 : $85,000 : 21%

My goal is to increase my salary to 100,000 by 2008.

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Who are you?
I am an ambitious guy who is passionate about making money. My aspiration in life is to succeed in the business world. I want get out of the rat race and become financially independent. I am on my way to accumulating a huge amount of wealth.

What is your background?
I am in my mid-twenties. I live and grew up in New York City. I attended all my schools here. I have a bachelor’s in Computer Science. I used to think that computer positions would make me good money, but now I know where the money is. I study the stock market during my own time and I love learning about investing. Computers have become more of a hobby to me now; business is where my life is.

What do you do for a living?
I am currently a Business and Systems Analyst for a huge government project in New York City. I used to do database and reporting work, but I have shifted my focus towards the business end. My next position would have more involvement with business.

Why did you start this blog?
Initially, I wanted to keep track of my student loans. I started out with 30K in student loans and I established a plan to pay them off. I gave myself a deadline and a roadmap to achieve the goal. I was able to meet my goal and cleared out my student loans in November 2006.

Then I started to write more about investing and investment ideas. I turned it into a money blog with a strong emphasis in investing, because I believe investing is a key to growing wealth.

How did you come up with the blog name, Growing Money?
A smart farmer would grow two apple trees. He would eat off one tree and sell the fruits on the second tree. Then he would take the seeds and grow more trees. Eventually, he would have a forest of money-making trees. He was growing money.

Base on the same idea, I would use my seeds to grow more money. They say making the first million dollars is the hardest. Because once you have the first million, the rest of the millions will just flow in.

Has starting this finance blog helped you in any way?
I’m not sure if it has helped me directly, but I can see myself grow. In the first year of my financial blog, I was trying to get out of debt. During my second year, I talked a bit about stocks, but I had little money. A year later, I bought a single-family rental property and covered real estate topics for a while. Now, I have a strong focus on stocks and businesses. And I can see myself shifting more to business topics as I gain more wealth. I think this may be the path to my financial success.

What are your goals?
I strive to build a successful global business that covers USA, China, India, Russia, and Brazil.

My ultimate goal is to have a huge, growing passive income and live in a lavish lifestyle without working. Ideally, I would be collecting rent from my real estate properties and payouts from a portfolio of high-yielding dividend stocks.

How much do you want to make in your goals?
I’m building a financial empire here. I’m going for One Billion.

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An update from my last post.

Year Salary Increase Over Previous Year
—— ——- ——–
2002 $37,000
2003 $38,500 4%
2004 $40,500 5%
2005 $45,000 11%
2006 $50,250 12%
2006 $70,000 39% <– New Job

My goal is to increase my salary to 100,000 by 2008.

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I think if you want to be rich and successful you really need to have the equipment for it. The most important part is your attitude towards life. You must have a goal that you really want to reach – a desire to succeed. This is best illustrated in the book, Think and Grow Rich by Napoleon Hill. It is a great book, very inspirational and motivational – a must read.

I think the “success” part has to come from within – it has to be true desire. You must have some part of you that really want to challenge and get through the laziness and procrastination. Everyone wants to be rich, everyone wants to be successful. But how many achieved that? How many tried? Most people are just all talk. They’ll say how they plan to do this and that. Once they reach a few obstacles (small ones mostly), those people immediately give up and return to their lazy thinking again.

I’m sure a lot of people can relate. How many of you try to lose weigh or keep an exercise schedule. How long did that last? I tried it myself. I told myself I was going to spend 20 minutes on the track-mill twice a week. I was excited about it for the few two weeks, and then I started watching TV and lost focus. I came up with excuses for myself. “I come home late sometimes.” “I’m tired from work.” Now, I’ve been away from the gym for almost a month.

I’ve realized the only way to achieve something big is to develop small habits that will help you move along in that direction. It’s true — little things add up. If I want to stay in shape, all I have to do is walk 20 minutes a day. It seems easy. I can just walk 10 minutes during the morning and another 10 minutes during the evening. Those 10 minutes sessions sound so attainable, but doing it everyday for a year takes much dedication. And don’t underestimate those 10 minute walks. They seems short but if done repeated overly time, they become very rewarding to your health.

It’s the same thing with your finance. Little habits bring you big bucks. If you sock away $50 a month in a savings account at an annual interest rate of 3% over ten years, you’ll come out with a total of more $7,000. Given you can tolerate some risk, at an average annual return of 8%, the same investment would net you almost $14,150. That’s a lot of money grown from 50 dollar seeds.

There’s a book, The 7 Habits of Highly Effective People by Stephen R. Covey that talks about how successful people have good habits built in their lives. Pick up that book and start building up some good habits.

With good habits and a strong desire, you’re bound to succeed. Your desire will push you in the right direction and your habits will work like your engines, they’ll keep pushing you towards your goal.

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