May 012014
 

Thought I’d share another helpful tip from the recent seminar I went to 😉

If we think like the rich, and act like the rich, then wouldn’t it make sense that eventually we will become the rich? Yup, I think this makes a lot of sense 😀 For example rich people don’t say “I can’t afford that.” Instead, they ask “HOW can I afford that?” This turns a problem into an opportunity which forces them to be solution seekers 🙂 Why is this important? Because that’s how we make money in this world (^o^) Financial gain comes from finding solutions to other people’s problems.

Every dollar I’ve ever made so far has been a result of me helping someone else to solve a problem they had. This is an interesting realization for me 😮 Is this true for you too? The rich are solution seekers, and the poor are complainers 😛 Technology companies like Google for example make billions of dollars each year because they offer solutions to so many everyday problems.
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So how to act on this knowledge and make it a reality? Well some investors may not feel comfortable if their stocks suddenly lost a lot of value 🙁 For example if John has a lot of McDonald’s shares but is retiring soon, he may want to buy some insurance against a market crash. Sounds like he needs a solution 😀 Let’s help him find one!
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Today $MCD is trading at roughly $100 per share. John wants to find someone who would be willing to buy his MCD stocks from him for at least $90/share when he retires next year. This way, he limits his downside risk 🙂 Of course he doesn’t have to sell if the share price doesn’t fall below $90. It’s optional for him. So in summary, he benefits from unlimited upside if MCD climbs higher 🙂 And if the stock falls the most he can ever lose is just 10%. Pretty good plan for John.
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But who will agree to potentially buy the shares from him at $90? Well that could be us 😉 And for our services as his insurance policy, he will have to pay us a juicy juicy premium, haha 😀 This is an example of a put option.
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So I called my broker yesterday to upgrade my account to level 4. The change will take 3 business days. But once the upgrade is complete I will be able to sell put options and make some extra side income via option premiums (^_-) If I keep thinking like the wealthy and discover new ways to solve problems for other people, then I’ll eventually become rich myself :0)
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Random Useless Fact: Burgers and fries are often cheaper than salads. This is part of the reason why the U.S. spends $190 billion on obesity-related health care expenses each year.
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