Good Deals Are Not Found, They Are Made.
Business is the process of creating value by solving problems. A good deal is comprised of a problem and a solution. Finding a deal is the same as finding a problem. We make a deal good by creating a solution. The better the solution the better the deal. There are several forms of value, and the better understanding you have, the more creative you can get when...
Requirements Of A System
When I first got involved in investing I originally looked at investing in Securities such as stocks bonds and commodities. I realized that I needed to have a system in place in order to control my emotions. One of the first systems was that I found was the turtle trading system that was designed by Richard Dennis. The trend following system that Richard desig...
Myth #1: Velocity Banking Is Only For Paying Off Debt
When people first hear about Velocity Banking, their first thought is paying down debt. When they don't have any debt they immediately assume that velocity banking doesn't apply to them This is not necessarily true Velocity Banking is about increasing our cash flow so if you don't have any debt you can immediately start to create wealth through velocity bankin...
What Key Performance Indicators Are And How To Use Them.
Key Performance Indicators (KPIs) are the results and metrics we use to measure the success of a system. These are typically comparisons such as ratios and percentages. This comparison will show the relationship between various data points which can give us an idea of where we can look closer at the data.
KPI’s are incredibly important when it come...
The Credit Card
This is the line of credit you most likely have sitting in your wallet right now. While the Credit Card is probably the worst line of credit on this list, it’s not nearly as bad as all the financial pundits would have you believe. The key factor is viewing this as a tool. Typically, this will have a very large interest rate, and very low credit limit, but is f...
The Line Of Credit
WARNING: BUILD YOUR RESERVES FIRST! The core of Velocity Banking is an interest-bearing account that remains liquid. A line of credit is one of the greatest tools for this task. We are charged interest on the average daily balance, but we are able to put our money in, and take it back out. It’s a two-way street. Another very important item to ...
One Question: What Would I Look Like If This Was Easy For Me?
This is the one question I ask before I start something new. While deceptively simple, this allows us to identify what attributes and skills we need to acquire. We can then further deconstruct those into smaller pieces and create a tangible measurement of success. Once we have broken them down into small pieces, we can prioritize which attributes and skills ar...
Why Have Reserves?
For financial efficiency, having access to cash is a necessity. To fully utilize our cash flow, we are moving it directly to our lines as soon as we get it. So, what do we do when an expensive bill comes down the pipeline? Reserves are the safety net. They supply the peace of mind to take small risks with large rewards.
Cash is the undisputed king o...