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Old 03-12-2012, 06:03 PM   #1
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Newbie Needs Advices

Hi everyone! I'm new to here and read lots of amazing posts of advices; and I would love to get some advices on my financial situation.

Just some brief info and background of me: I am a junior in college with routhly $10,000 annual income, and an addition $2,000 from investment. I am planning to start my own business before graduation, but it requires lots of capitals and professional skills that I am still working on. Although I do have some investment on mutual funds, paper gold and such, but there is not much passive income I have. I really want to increase my passive earning ratio, but so far, I am still not really sure how I could get them.

Could anyone please give me some advice? Greatly appreciate =]
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Old 03-14-2012, 09:50 AM   #2
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Deposit money. Earn interest. Repeat.
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Old 03-14-2012, 09:52 AM   #3
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Any student loans looming? Make SURE you get your degree. What type of business are you looking to start?
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Old 03-14-2012, 10:43 AM   #4
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First, finish your degree. Since English is the language of business, be sure you know and use it well. If passive income is your goal, concentrate your effort on their big sources: real estate and inventions (example: royalties).
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Old 03-14-2012, 08:48 PM   #5
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Deposit money. Earn interest. Repeat.
I did put some money in 5 years CD, but the interest is too low that there is no way I could retire early just relay on that.
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Old 03-14-2012, 08:50 PM   #6
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Any student loans looming? Make SURE you get your degree. What type of business are you looking to start?
I don't have any student loan, and I want to start a business in the actuarial finance and real estate field. Any advice on that?
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Old 03-14-2012, 08:53 PM   #7
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I did put some money in 5 years CD, but the interest is too low that there is no way I could retire early just relay on that.
That isn't your retirement money, it's your emergency fund. Once you have 6 months or so of living expenses in a CD or similar "safe" savings, then start investing for the long run.
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Old 03-14-2012, 08:53 PM   #8
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First, finish your degree. Since English is the language of business, be sure you know and use it well. If passive income is your goal, concentrate your effort on their big sources: real estate and inventions (example: royalties).
I am planning to start a business that is real estate-related, but it would be hard due to lack of related background, network and skills.Another thing is that: I do know how to sell. I am a terrible salesperson, although I always want to improve my skill...Could you give me some advice on how to sale or real estate-related? I don't think I could statrt a successful business without knowing how to sell.
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Old 03-16-2012, 10:22 AM   #9
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first off, I would say to get through college with the minimum amount of debt possible.

second, I would say to make sure you are taking classes which help you with your goals. While being someone who can "sell you the shirt off your back" can be innate for some people, most of us need a little training.
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Old 03-17-2012, 05:55 AM   #10
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I agree that learning the language well is a first priority. Your typed posts are not as clear and articulate as a typical business person would expect...not sure if that's just because you're in a hurry typing or if it's actually the best you can do.

As for the emergency fund someone mentioned, I would not have this in CDs...or if you do, you need to have several and stagger them. Emergency funds should be money you can get to fast and without penalties. 6-9 months of expenses is what I'd recommend.

As far as your business, you need to have some patience. You mention you don't have the background...go out and get it! Start slow and small, the mistakes are then less magnified. Remember that many successful business people fail their first time (Look up how many bankruptcies Donald Trump has been through).

As far as passive income, I favor rental properties. However, you do need some capital, so you'll have to save for this first. It's also helpful to be handy with tools and put "sweat equity" into the properties you buy. One way to get in is to purchase a 2-family unit, rent out one side, and use that to pay the mortgage. You'll probably have to live in a tiny and old place the first time to make this work...but it's an investment in your future.

One more tip...listen to Dave Ramsey on the radio weekdays. The time he's on varies based on what channel...some are tape-delayed. His main advice...don't borrow money.

Good luck.
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Old 03-17-2012, 05:57 AM   #11
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Originally Posted by ljrtan View Post
I am planning to start a business that is real estate-related, but it would be hard due to lack of related background, network and skills.Another thing is that: I do know how to sell. I am a terrible salesperson, although I always want to improve my skill...Could you give me some advice on how to sale or real estate-related? I don't think I could statrt a successful business without knowing how to sell.
Can you be more specific on "real estate related"? Do you want to be a realty company selling houses? Do you want to do home inspections? Do you want to start a title insurance company?

Having a more specific goal, and explaining to us "why" you chose it would help in guiding you.
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Old 03-19-2012, 12:11 PM   #12
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Originally Posted by Finance Dave
I agree that learning the language well is a first priority. Your typed posts are not as clear and articulate as a typical business person would expect...not sure if that's just because you're in a hurry typing or if it's actually the best you can do.

As for the emergency fund someone mentioned, I would not have this in CDs...or if you do, you need to have several and stagger them. Emergency funds should be money you can get to fast and without penalties. 6-9 months of expenses is what I'd recommend.

As far as your business, you need to have some patience. You mention you don't have the background...go out and get it! Start slow and small, the mistakes are then less magnified. Remember that many successful business people fail their first time (Look up how many bankruptcies Donald Trump has been through)..
Good advice there! When I was 19 and in college I wanted to be a business consultant. I agree you need experience first. In my case that meant working for 10 years in sales/HR/management jobs to learn my craft before starting my business. I remember being so impatient! Take it one step at a time.
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Old 03-19-2012, 12:56 PM   #13
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The worst thing you can do right out of school (or in school for that matter) is to get yourself in a ton of debt. I agree that being patient is the best thing at this point. Get your degree, get work experience, build up capital then open your business debt free. I came out of school with $140,000 in debt from a veterinary degree and have been digging out ever since (joined the Army to get rid of $100,000, but this is not for everyone!). You have time, be purposeful and mindful of your path and you will be much better off.
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Old 03-19-2012, 01:16 PM   #14
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Originally Posted by ljrtan View Post
I don't have any student loan, and I want to start a business in the actuarial finance and real estate field. Any advice on that?
What type of business can you start in acturial finance? Most carriers have their own staff for that. Starting your own insurance company these days is a risky proposition..........
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Old 04-04-2012, 09:13 AM   #15
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first off, I would say to get through college with the minimum amount of debt possible.

second, I would say to make sure you are taking classes which help you with your goals. While being someone who can "sell you the shirt off your back" can be innate for some people, most of us need a little training.
Thanks for your advice. The best thing for my college education is that I don't own any debt,and with limited expense (~$1500/yr). I work 20 hrs/wk, so I can cover that easily. However, the classes for my college are pretty much set, but all are business/entrepreneurship-related. I am also planning to self-study Actuarial Science and Real Estate and take the exams for licenses. Yet, I really would like to start doing something right now.
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Old 04-04-2012, 09:54 AM   #16
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I agree that learning the language well is a first priority. Your typed posts are not as clear and articulate as a typical business person would expect...not sure if that's just because you're in a hurry typing or if it's actually the best you can do.

As for the emergency fund someone mentioned, I would not have this in CDs...or if you do, you need to have several and stagger them. Emergency funds should be money you can get to fast and without penalties. 6-9 months of expenses is what I'd recommend.

As far as your business, you need to have some patience. You mention you don't have the background...go out and get it! Start slow and small, the mistakes are then less magnified. Remember that many successful business people fail their first time (Look up how many bankruptcies Donald Trump has been through).

As far as passive income, I favor rental properties. However, you do need some capital, so you'll have to save for this first. It's also helpful to be handy with tools and put "sweat equity" into the properties you buy. One way to get in is to purchase a 2-family unit, rent out one side, and use that to pay the mortgage. You'll probably have to live in a tiny and old place the first time to make this work...but it's an investment in your future.

One more tip...listen to Dave Ramsey on the radio weekdays. The time he's on varies based on what channel...some are tape-delayed. His main advice...don't borrow money.

Good luck.
I admit that language/communication is one of my biggest issue due to I am an immigrant. At the same time, I understand the importance of sales and communication for a typical business person, and especially for an start-up entrepreneur. That is why I chose Actuarial Finance as my focus, as it is more quantitative and technical. I also, as others recommended, watch financial television programs in most of my free time, just to throw myself into the environment of business language. If you have any other recommendations, please do tell me. I really would like to improve my communicational skills (despite my shy personality).

In term of CD, I chose 5 years for my emergency fund and partial of my investment, because I use foreign bank, which offers 5.5% interest rate. Although I cannot get it as fast as cash in saving, I took in consideration that I don’t need much money for, at least, next three years, even I lost my job. After that I will think of another way, a quicker cashing way, for my emergence fund.

I wanted to find some internship to gain more experience for my business, but unfortunately, I couldn’t find one. Thus, I am thinking using the time to self-study actuarial science and real estate and take the exams for license. (Of course I will keep finding internship that is related.)

I thought of rental properties as well, and that is the reason why I chose real estate as my business focus. I assume that it would be easier for me to get loan as a business compares to as an individual, same to taxation purpose.

As I mentioned before, I don’t have any student loan, I don’t want have debt as well. But I do think it is necessary for me to get loan for my business. Yet, the way I will do it is to keep my liabilities under 50% of my assets.

What I meant real estate and actual finance-related was similar to REIT, but in a smaller scale and in another form. I couldn’t provide more details because I am still in the planning stage.

Thanks for your advice; I greatly appreciate it. Please do give me others tips or advice that you could think of.

Make it a wonderful day.
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Old 04-04-2012, 09:56 AM   #17
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The worst thing you can do right out of school (or in school for that matter) is to get yourself in a ton of debt. I agree that being patient is the best thing at this point. Get your degree, get work experience, build up capital then open your business debt free. I came out of school with $140,000 in debt from a veterinary degree and have been digging out ever since (joined the Army to get rid of $100,000, but this is not for everyone!). You have time, be purposeful and mindful of your path and you will be much better off.
Thanks for your advice. The best thing for my college education, as I mentioned before, is that I don't own any debt,and with limited expense (~$1500/yr). I work 20 hrs/wk, so I can cover that easily. That is the reason why I want to start doing something right now.
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Old 04-04-2012, 09:57 AM   #18
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What type of business can you start in acturial finance? Most carriers have their own staff for that. Starting your own insurance company these days is a risky proposition..........
What I meant real estate and actual finance-related was similar to REIT, but in a smaller scale and in another form. I couldn’t provide more details because I am still in the planning stage.
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Old 04-04-2012, 12:58 PM   #19
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Thanks for your advice, but what do you mean by "sell you the shirt off your back?"


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Originally Posted by ronocnikral View Post
first off, I would say to get through college with the minimum amount of debt possible.

second, I would say to make sure you are taking classes which help you with your goals. While being someone who can "sell you the shirt off your back" can be innate for some people, most of us need a little training.
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Old 07-13-2012, 07:42 AM   #20
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Thanks for your advice, but what do you mean by "sell you the shirt off your back?"
I'd like to hear an explanation of that too! I think this is mixed metaphors. Someone generous may be known for "giving the shirt off their back". A good salesman can "sell ice to Eskimos". A bad business deal may cause you to "lose your shirt". I've never heard of a salesman sell the shirt off their back.
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