Friday, September 28, 2012

Euro in the closing of third quarter

Dear Friends,

you can find an interesting news regarding the Euro, read it on our Clipping List on .

Keep reading!

Luigi Foscale

Are you ready to get out from the crisis? If yes, keep reading

All the world’s governments are in deep crisis.
How can I get out of the crisis?
If you expect anything from them, you are going to be deeply disappointed. You better think about yourself.
Wake up! Just ask yourself a simple question: how can I quickly get out of the crisis?

Answer: I have to become rich and when I say rich, I do not mean living a wealthy lifestyle. My concept of being rich, is when somebody has enough cash flow, to prop up his desired lifestyle. The concept of “wealthy” is extremely subjective, so is everyone’s lifestyle.
Winning the crisis, could be easy indeed: everyone of us should have as a life goal to become rich. If we give up by passively undergoing this crisis, we stay poor and we will always be in a permanent state of crisis If, on the other hand, we are to immediately get busy to create our own wealth, we would be able to save ourselves from the abyss.
My statement for today is: You have to build your own wealth.
Obviously, it would be desirable that together with our efforts, those in charge in the government should adopt some common sense while on duty. Here, I wish to recall the debt crisis, the government waste, and the crisis of values. All these things do not depend on us but unfortunately these are situations we are forced to undergo.
So we have to do something about it: first we have to fight. Because our own government doesn’t provide us with the certainty that the crisis will be over soon, so we have to get busy ourselves.  It’s us who have to win the crisis. Not in the macroeconomics scale, but in the domestic field and within the business microeconomics. It’s all on ourselves. Actually it’s on YOURSELF!
That’s why controlling the cash flow is key. In my latest post "The Survival Handbook" you did read that cash-flow has to be useful and not just academic theory.

Today I say: “you have to have your Cash Flow under control, otherwise it will control you.”
And, if you check my blog regularly, you’ll become rich.
First: we have to create an Automatic Cash-flow.
What’s an Automatic Cash Flow? An Automatic Cash Flow (ACF) is a continuous flow of income on a permanent basis. The flow is generated autonomously, without your work being necessary to make it happen. The only thing you have to do is to check with your bank if the cash is there.

What about the ACF?
Property Rent, income from fixed securities, income from an insurance plan, royalties from copyright, or from participating to a Multi-level marketing (MLM).
How can I set up an ACF? My advice is to immediately take your first step. Right away, right now! I suggest you to invest in something that provides you with an immediate income. Even if it’s something small, you have to start right away. When you re finished reading this. Take your first step....especially in a moment like this, opportunities are endless and all over the places.
Go visit any real estate website, and fill in the budget search box with the minimum price accepted. You’ll be amazed at the values appearing in the slot! Eventually you can sell your investment with a profit, so you will be able to grow your wealth.
How can I maximize my investment’s income? In the early stage, my advice is you don’t have to focus on investments which can only provide you with a capital gain, without any cash-flow (like Gold for example). Even if gold could be an excellent investment in times like these, in the early stage of your strategy, your number one priority is to invest in something that is able to immediately establish a Cash Flow.
I am talking about an apartment, a garage or a basement, which are more appropriate because from those investments you can quickly get an ACF.

How do you feel with an active cash flow?
Believe me: You’ll feel damn good!

Also the non-specialists can understand the Cash Flow mechanism?
Many self-made men did not go to College while there are many graduate people who it’s not a matter of what school you attended or what did you graduate in or how old you are, it’s only about your MOTIVATION to succeed. It’s your will to become wealthy that really matter and mostly it’s about knowing how to manage money. YOUR MONEY!

Knowing how to manage your money, means you have to make the right investment choices down the road, so you have to know how to spend without wasting and make sure your income other than being higher than your spending it has to increase in value in a continuous/exponential way.
So knowing how to manage your cash flow is absolutely crucial.
Remember: creating wealth means building wealth. You have to build your own wealth.
And if you start to build up assets that provide you with an ACF, you will be able to create wealth for yourself and for your community as well. And if apart from us, other people would like to join our effort, we will forget about this crisis in a nanosecond.
Today the crisis stays up because everybody only talk about the crisis and not about the way to overcome it. 

Since today you should try to watch the news with a critical eye and while watching your favourite business show on TV you may hear the word “crisis” then you should think to what you read today on this blog.
If you want to get out of the crisis you have to get busy right now!
How can we win the crisis?
Plain and simple: Learn how to create and manage the money.
The sooner you learn what Cash Flow is and how to turn it to your own advantage, the faster you ll have Automatic and Continuous Cash Flow.

Luigi Foscale

Tuesday, September 25, 2012

Home Prices Increase Again in July 2012

 Taken from S&P/Case Shiller:
"New York, September 25, 2012.
Data through July 2012, released today by S&P Dow Jones Indixes for its S&P/Case-Shiller1 Home Price Indexes, the leading measure of U.S. home prices, showed average home prices increased by 1.5% for the 10-City Composite and by 1.6% for the 20-City Composite in July versus June 2012.

For the third consecutive month, all 20 cities and both Composites recorded positive monthly changes. It would have been a fourth had prices not fallen by 0.6% in Detroit back in April." 
For more information visit this page: News from S&P/Case-Shiller. 
Luigi Foscale

Monday, September 24, 2012

Our Clipping List on Financial Times is the most visited. Thank you

Dear Friends,
A few words just to let you know that our selection of articles on the Financial Times: has been the number one selection for more than two weeks now.
Our Clippings Selection is an important communication tool and if you read it on a daily basis, you will stay up-to-date with the most relevant financial news.
Thank You 
Luigi Foscale


Saturday, September 22, 2012

Friday, September 21, 2012

Survival Handobook

Each day brings more bad news.
Governments rip off taxpayers by collecting always new taxes while public officials uphold it on the media claiming we need these new “measures” to restart the economy. Read this Article on the Corriere della Sera. However, after this further strain on the taxpayers, those same hot shots are now telling us our effort was completely vain.

Isn’t that weird?
By heart you can tell they add insult to injury and I believe there are many people out there who share my same feelings on this “particular” issue. 
However if I decided to write this down, is because I wish to share my formula to crack the code to the government’ subtext, which the media in fact “wisely recommend” as important news.

In these pages you will read what no one would ever tell you. Out of two, one: our government officials are completely unfit to conduct a simple Economic Outlook or forecast (which I can definitely rule out) or worse, they are excellent depression promoters and major pessimism supporters. 
In order to understand what happened behind the scenes, we should try to re-read what they claimed on the media: first they recommended us to pay some new taxes because that was our only way out from the crisis, then they changed their mind saying those taxes we just paid were not able to solve the problem.

So we should had probably expect more taxes to pay in the near future. 
Although if you were able to read between the lines, you could have sensed something like this: the government wants all you’ve got and if you want to survive you have to pay it and after you paid it they ask you to pay more.
To me this sounds like a ransom drop gone wrong. Thing is, a ransom involves a kidnapping and a hostage. The kidnapper is the government and the hostages are represented by our lives and the taxes are the ransom we have to pay. Nonetheless this time the ransom drop went wrong because the government-kidnapper wanted more money from us. Indeed the amount we paid didn't fill the giant gap created by the crisis. 
The worst is every citizen understands his contribution was totally pointless compared to the magnitude of the crisis.
There’s a say: If you want to do away with someone you should break his means and will to resist. In practice you annihilate his own spirit.

That’s exactly what they’re trying to do. It’s like if a father is asking his son to run for a mile as fast as he can. Then, when he’s finished running and he’s gasping for breath, his father tells him his performance was absolutely unacceptable and that he’d better give up running.
Now I am asking you: while you are reading this, can you imagine whether all the taxes you have paid did not fill the gap to make up the deficit?

How big is your fear to lose what you got? Are you worried you won’t make it to make ends meet? How much worried? How would that kid had felt whether he was asked to run at his best once again? Maybe this time for ten miles? He would had run, going all out, or maybe he would had felt his strain being completely useless?

What you just read is the most effective way to generate great frustration, anxiety, panic and distress. People who suffered the hard blow they know it was completely useless and that they are due to pay even more. 
At the end of the day, the truth is somebody wants you to be poor and somebody gets richer by imposing on you. Plain, simple and terrible. This is the actual scenario and it’s happening right now. Unfortunately if things keep going the way they are, there’s a great chance the situation will collapse. We are now in a recession that could lead to a depression. Eventually the crime rate will skyrocket and the next step we’ll have riots in the streets. In practice the whole system would collapse. Don’t you think this sequence of events is already in progress? Unfortunately this is very similar to what happened in the 30’s right before WWII.
Nonetheless if I am here writing this, it’s because there’s a glimpse of hope. Back to the basis. Here I describe an exit strategy to face the crisis.
First of all is crucial to get your bearings. Like a boat in the middle of the storm without a GPS. Orientation. Where do you go? It is vital to have a compass which has to be cheap.

Time is key. Lehman Brothers the day before it crashed, was one of the major investment banks in the world. It took one day to collapse. From rags to riches in one day... this is today’s timing. You should know in advance what’s next. That’s why aligning yourself is so important. You need to position yourself in order to know if you are in the right direction or in the wrong path, in case, it’s important you know it right away.
In practice I define Orientation as the sum of many skills. Like in an airplane cockpit you have a lot of buttons, so in order to survive the crisis, you have to know the tools at your disposal. The Orientation tools are those that allow yourself to switch from visual flight to instrument flight. This works both for airplanes and for the people, whether you are a manager, a family father or an entrepreneur.
These tools don’t require much time to learn how use them, but it’s the most useful time you may spend learning something. It's about an hour a week or two hours a month. No one is so busy not to have 6 hours in a month.

The first tool is the Cash Flow. Many Economy books talk about it and they show it in a proper form. Although you won’t be able to find my idea of Cash Flow in the mainstream finance, but it works. Exactly, it works because it’s very simple. I am not here to make an essay about finance....there is plenty of places where you will find such textbooks. My only wish is to make this stuff useful also for a ten years kid. You don’t need an MBA to know what Cash Flow is. You just need common sense....(and please let me tell you that most of the financial big shots who made the crisis they completely miss what common sense is).The Cash Flow is a periodical activity you should update once a week. Usually I do it once a week, on Mondays. Cash Flow is an 18 months economic outlook. In practice you take a piece of paper (or an excel file) and you divide it in 5 columns then you write Date, Subject, +, -, =. Then under each of these columns you write down the expenses invoices that you have every week/month.

Like for example you’ll have food expenses, medical checks, the rent/loan rate and eventually you'll have some income too from a rent or a salary. So you start writing them down, following a temporal order by when and what you forecast to spend or to collect. In our case, I forecast to cash a salary of $2500 on the 27 of the current month, so I write down 09/27/2012 – Salary – $2500, I leave empty the “-” box then the balance of my money on the column “=”. Then I forecast to do a certain expense the day after, so I would write $600 on the column “-“ by indicating the day 28 of the current month. Then at the beginning of the following month I know I have my kid’s school rate deadline, so I stick it in the box “-“ and so on. The “=” column is very important because is the sum of what you have the day before and what you have today after considering the whole activity. For example if yesterday I had 0 and today I cash a $2500 salary, today I have 0+2500=2500. If tomorrow I have a $600 expense I will have 2500-600=1900. And so on for the coming 18 months. Obviously there also will be extraordinary expenses like Holidays and other unforeseen operations.
The most important thing is to keep the Cash flow active and steady. You will realize that if you fill it with perseverance, you will learn to perfectly forecast a cash deficit..... so that you can manage your money in a different way and in advance. Time needed: a hour a week.

The second tool is the Debt Analysis. A debt in its very nature isn’t bad nor good, because it’s just the use of cash that is not yours. What makes a debt useful or not, is the use you do of the money you borrow. Good debts are those you need to generate cash flows, bad debts are those which “eat” your cash flows. In particular, a useful debt is more an apartment loan that we give out for rent whose income quit of charges and taxes are superior to the loan cost. A bad loan for example is a lease to buy a sport car. However if the lease is to buy a car whose purpose is to help generate income (for example if you are a car dealer or a cab driver) then that debt is considered useful. So you know when a debt is useful depending on what you use the money for.

Here you need a sheet where you will draw down the columns: the bank that gave you the loan, number of contract, type of interest rate, (fixed, variable or compound) date of redemption, deadline terms, type of allowance (where applicable), purchased goods with the loan, rate price + allowance on a yearly basis, cash flow generated by the loan, difference between the cash flow produced and the yearly rate + loan allowance.

This last data provides us with the information if the loan is a financial weight or not.

You can update the sheet once a month or after every activity. Time needed: an hour a month.
In the end, it is important to systematically verify if the route is the one you expected, and this is the Tracking Ob. So I suggest you to write down your long-range objectives, 5 years, 3 years, 2 years and 1 year and for the coming months. This way I know where I wish to go. If you update this document every month you will have the chance to verify if you reached your monthly target or if what you did is coherent with the long-term objective. Time needed: an hour a month.
To get out of the crisis you have to know what your priorities are: economic, moral, environmental and familiar ones. So you have to know how to keep your honour steady.

Unfortunately the crisis leads to miss the accomplishment of your objectives and it might lead to a decadence of personal values. To avoid this to happen it’s fundamental to keep up your honour and dignity. This section is about the fundamental values.

The crisis is stressful. In order to prevail in times of crisis, you have to be aware the crisis could generate psychological suffering: pain, cold, headache, general sense of frustration, inadequacy, loss of self confidence.
Those who are in charge knew since their beginnings, these would have been the consequences of the crisis. They knew it, but they acted for good whatsoever. That’s why I say that financial derivatives and the uncontrolled use of debt are tools of mass destruction. If you know they want to destroy you, you can better resist.
So your Mission and your Fundamental Values are useful to not fall down to the dramatic consequences that somebody wants for you.
The crisis attacks the Emotional side too: so it’s possible to feel fear, anxiety, panic, rage, you can get into substance abuse and you can lose hope.
These emotional consequences have been foreseen by those who generated the crisis.
The crisis as we saw it, it might generates distress and that’s the main cause of many diseases. You just need to be aware of it. At this point it is fundamental to introduce in the battle your survival instinct because that’s the best antidote to all kind of struggle you may face.
The Mission, the Fundamental Values, the Awareness.
This is the strength you need to overcome the crisis distress.
In one word is the will to live and to survive.

Luigi Foscale

Friday, September 14, 2012

A Lesson from the Past

By reading your Retire Rich by Luigi Foscale, you get the financial knowledge you need to increase your wealth.

In the past few months we have been focusing on the Crisis. My target was to provide you with the necessary tips to understand this dramatic scenario. The result was very simple: There is someone who wants you to be poor and with huge debts. Read my article "...Just to be provocative . What if this crisis was made on purpose? " . Also, for some reason, we perceived this Crisis as a War, where the warfare is the Financial Communication. Read my article: "Are we in crisis or are we at war?" . 

In the same moment you are losing money, there's a group of people who is making money by taking advantage of yourself.

Behind a Crisis there is always an opportunity.
So the whole point here is: you need to find YOUR way, and follow it up to the money. So you can get rich.
Last June I showed you the picture of how the future would have looked like. Now we are in that picture. Enjoy your journey to get Rich.

Luigi Foscale

Friday, September 7, 2012

Thank you!

Dear Friends,

and welcome back to our Blog, Retire Rich by Luigi Foscale.
First of all, I would like to thank you for following me from almost every Country of the World. Thank you. Thanks also, to everyone who contacted me, I appreciate it very much and I took note of all your private comments. You will find my answers in the next months. For me, having you as an audience, really makes me proud. Thank you also for following me on the Financial Times, and thank you for being so many: we climbed the list up to the Most Visited. Thank you. You give me the energy to do my best.

In the past few months we try to dig the times we are living it and the crisis. In the next months we will focus on the most effective ways to create wealth. Starting from now, every Friday at 11 AM, London Time, you will read your article.

Keep walking and enjoy reading.


Luigi Foscale