!44: Fools and Their Money Shall Surely Part - Invest in Real Estate

!±8± Fools and Their Money Shall Surely Part - Invest in Real Estate

My late honorable father once told me that "it is not what you make, it is what you keep."In other words, he was saying: "Don't tell me what you make, show me what you keep." Like many of you, I too am puzzled and frightened by athletes and celebrities going broke and losing their homes in foreclosure. What went wrong? My honorable mother said it best by quoting the scripture: "A fool and his money shall surely part."

I watched and observed my mother and father successfully managed and ran a home with eleven children. My father was the only source of income. He literally made peanuts working as a menial worker at a sugar factory. My mother was a housewife with no income whatsoever. They pinched and invested wisely in real estate such as lands. The land was used for cultivation then. When my father made his transition into the spiritual realm in 1989, I made one of the most crucial discoveries of my life. My mother was able to bury my father with dignity and with no financial assistance. When I looked at what they were able to save from making peanuts, I was astonished. My mother told me to take my money back with me to the United States and save it.

I said all of that to say this. What would make someone such as my poor parents stay afloat financially while athletes and celebrities who made millions are filing for bankruptcy and losing their homes in foreclosure? My parents paid tithes in a regimental manner (10 per cent of their earnings) from every single pay check, made charitable contributions, schooled all their eleven children, etc., Yet they never experienced financial hardship. Well, it goes back to what my father skillfully said: "It's not what you make, it is what you keep.

Since most of us were not formally trained what to do with money when we have money, let me give some solid common sense and invaluable advice. The first is humility. Humility is the greatest attribute any man or woman can have. When you have money, stay humble. No one should know when you have a .00 or a million dollars. This advice that I am about to give is solely for the black communities from whence I came. Because the only thing that many of us know what to do with money is to spend, spend, spend as if there is no tomorrow.

We must get out of that mode of wanting to look good first. Many of us use our first 00.00 to buy luxury cars, name brand clothes, excessive jewelry, etc., all of what is called personal property. How silly! The minute you drive off that car lot, your car depreciates. Let us start out by saving and investing wisely into real property instead of personal property. Having and owning 200 pairs of shoes, mega mansions that are not necessary, five cars, mink coats, etc., are simply idiotic. How many shoes can you wear at the same time? How many cars can you drive at the same time? How many rooms can you sleep in at the same time?

It is very important to live within your means. In other words, "hang your basket where your hand can reach it." Don't watch what people have, because you do not know how they got it. Do things at your own pace. Plan, plan, plan your future. "Lay your eggs how you wish to lay on them." Take your time. "Look before you leap." Invest at least 10 percent of each pay check. Save at least 10 per cent of each pay check. Know what to give priority. Do not spend what you don't have. Maintain a decent credit score of at least 700.

Do not max out your credit cards, equity, credit lines, 401k, etc. Get an IRA account, buy government bonds, invest wisely in the stock market by working with an honest and accessible stock broker, buy health care and endowment policies for your family, save into a college fund for your children, etc. The money that you are planning to use to buy silly jewelry and name brand clothes and sneakers for your children, you should put it into a college fund or money market account. Plan for inflation...,000 now is not ,000 in 20 years. This is why I recommend buying and investing in real estate and commercial development.

Last but not least, wining and dining different women is NOT an investment. We saw first hand what happened to a famous athlete (Boxer) who went around and "sow his royal oats." That is simply idiotic. Womanizing is the best way to go bankrupt. You can take that to the bank. Marry a partner who shares your goals and ambitions, and keep it all under one roof. Let me close by reiterating what I said earlier in my post... invest in real property and not in personal property. Before you buy a Rolex watch for 0,000.00, make sure you have at least million dollars in real estate equity somewhere. Before you buy a luxury car or cars, make sure you have a roof over your head with substantial equity in it, and that means that you should get your tail out of your parent's basement. Regrettably, law schools, medical schools, engineering schools, etc., do not teach you how to manage money.

Stay afloat in this bad economy and recession by holding on tight to your money. The vultures are out circling with much intensity to trick and fool you out of your money. Be wise and never be afraid to tell someone that I cannot afford it at this time. You wont learn this in law school, medical school, graduate or undergraduate school. I wish you all good fortune and great success.