The Rich Get Richer and The Poor Get Poorer

We've all heard the statement, "The rich get richer and the poor get poorer." This has been especially true in the past several years and may be even more true in the years ahead. But have you ever asked why this is the case? It is simply because the rich keep doing what makes them rich and the poor keep doing what keeps them poor. I saw a video on Youtube recently and the guy was talking about when he realized what he was doing wrong. He said he realized at the early age of 24 that it is ALWAYS possible to spend more than you make. If you always spend more than you make, you'll always be broke.

If you're tired of being one of the poor, and believe me I'm very tired of it, then you have to change the way you think about money and the way you act upon your thoughts. I had to get over my little pity party and get away from the victim mentality of "I'll always be poor." You'll always be poor if you keep doing the things that make you poor.

A lot of people think, "If I just made more money." Well you first need to be able to handle the money you do have. Do you want to have more and possibly even be one of the rich getting richer? Then you need to take control of your finances and stop spending more than you take in. Once you've accomplished this simple rule, then you can put your excess money to work. When your money works for you, that's that much less work you have to do yourself. John D. Rockefeller once said that the only thing that made him truly happy was the dividend checks he got every month. I can relate to that! I've worked hard all my life, starting at age 5, but never really had anything to show for it until the past 10 years or so. Now the money comes in every month in the form of dividends and interest and you can't imagine how it makes me feel to know that I didn't have to do any physical labor to earn it. I'm still a long way from being one of the rich. But I have every confidence that the more I learn about handling my finances, the more money I will make and the less I'll have to physically work for it.

If this sounds good to you, then take a look at your personal circumstances. We can all find reasons or excuses why we can't put any money aside to invest, or why we can't improve our situations. It's when you STOP making excuses and START looking for ways to improve your situation, then your life will change. It may not be easy and you might not like all the changes you have to make, but believe me, it will be more than worth the effort. Don't wait for a bailout from the government, help yourself to a better life!

So Far, A Terrific Tuesday!

Monday was good to everyone in the stock market, with over a 200 point increase in the Dow. I was a little worried today when I saw stock futures were lower, although I have to admit I expected that to happen after such a good day yesterday. As it turns out though, both of my accounts are up, so I'm feeling pretty good about my stock picks right now.

My Top 10 Holdings and Percentage of Portfolio:

Universal Insurance Holdings (UVE) 21.6%
British Petroleum (BP) 9.1%
AT & T (T) 7.1%
BDMXX Money market account 5.8%
Veolia Environmental (VE) 5.1%
AFLAC (AFL) 4.6%
Euroseas LTD (ESEA) 4.4%
Merck and Company Inc. (MRK) 3.9%
General Maritime (GMR) 3.3%
Sysco Corp. (SYY) 3.3%

I'm thinking I probably need to sell a few shares of UVE to decrease my exposure, but I may increase other holdings instead, which would reduce the percentage of UVE in my overall portfolio. I think at the current price, UVE is still a good buy. They seem to be a very well run small insurance company with a promising future.

My money market account is not usually in the top ten holdings. I currently have extra cash due to recent stock sales. I'll be re-investing that money soon.

Don't Take My Word For It

O.K., so I've been writing since January about how this is the perfect time to get in to the stock market, albeit on a very selective basis. I always search for investments that provide current cash flow and the possibility of future capital gains. For anyone who thought that I couldn't possibly know what I was talking about, check out this article from the Rich Dad Blog by Robert Kyosaki:

When Pessimism Prevails, It's Time to Get Rich

If you go back and read some of my articles for this past year, you'll see that I've been saying basically the same thing Mr. Kyosaki is talking about in this article. I've read most of his books and he is by far my favorite author when it comes to investing, so I was pleased to see that his most recent post is validating a lot of the things I've been writing about. So, don't take my word for it, read what someone who's already made millions has to say.

Don't Be Afraid of Listening to People Who Are Smarter Than You.

"Dependent people need others to get what they want. Independent people can get what they want through their own efforts. Interdependent people combine their own efforts with the efforts of others to achieve their greatest success." - Stephen Covey

Even though I haven't had the benefit of an extensive secular education, I still consider myself as pretty intelligent. However, one thing I have learned is, there is always someone smarter. When it comes to investing, no matter how much I learn, I know there are people who are more in the know than I am. A very important part of intelligent investing is to take advantage of advice from people who are smarter than you.

I recently came across this blog by Michael E. Brisky:


http://briskycapital.blogspot.com/


I didn't have to read too many postings before realizing this guy knows way more about investing than I do. So you better believe I'm going to be keeping up with his postings. While I might not take advantage of every piece of advice he gives, I think this guy definitely knows what he's talking about. Thanks Michael, keep up the good work!