10 Steps to Make Money from Thin Air!

Right now it is time to act while everyone’s selling off their positions for pennies pushed by the global panic. The volatility in stock market is as high as I have only seen in warrants before. And there’s our chance…

Liquidity is King in the times of crisis. If you have money to invest for the next few years, you will profit from the current situation. When the recession cycle has finished in 3-4 years, the stock will be back up again to their 2006-2007 levels. And in some cases we are talking about gains of +150%

What if you don’t have any money to invest? Here’s a recipe I have worked out and might put to work before the year ends:

  1. Select a stock from a solid company that has been very affected by the global selloff. Let’s say, Deutsche Bank. The price was over 120 EUR a year ago, 50 EUR a month ago and only 19 EUR this morning! The results they have presented were very solid (although affected by the crisis) and they are in full expansion right now.
  2. Now let’s make a very conservative statement: Considering their expansion and current trend in their retail banking division, the stock will be back up to, at least, 50 EUR level in max. 3 years - a 163% gain. (Note: we are not speculating! You should know what you invest in, as I wrote in a previous post about speculating vs investing)
  3. If you have a stable source of income, take a loan: Now, we do not want to pay a penny, but make money from thin air. So we have to calculate how much we need in order to (a) buy the stocks and (b) finance all monthly payments untill we sell the stocks. Here,s how (in EUR, but USD works the same):
  4. 10,000 EUR for 8 years at 7,5% per annum generates a monthly payment of 138,84 EUR. Now, let’s say we expect the stocks to rise back in 4 years. During these 4 years (48 months) we would have paid 138,84 EUR *48 = 6664,32 EUR.
  5. We put these 6664,32 EUR into a separate account to pay the loan for the next 4 years.
  6. We use the other 3335,68 EUR to buy Deutsche Bank stocks at 20 EUR - roughly 167 stocks.
  7. Let’s say, after 4 years the stocks have risen to 45 EUR and you sell them for 45 EUR *167 = 7515 EUR.
  8. The outstanding loan capital is 5742 EUR, so we pay it off.
  9. The difference, 7515 EUR - 5742 EUR = 1773 EUR is yours.
  10. Congratulations! You have just made money without paying a dime.

Here’s a simplified graphical chart for better understanding:

Loan Investing

Loan Investing

November 20, 2008 | Filed Under Stocks, Tips & Tricks | 1 Comment 

Become Freelance

Jeez. Being up for 100 projects at once is not very sane. I admit that during the past 12 months I didn’t give this blog the time it deserves. Financial turbulence got me involved aswell (I managed to get out of it and with considerable profit, though. More on it in a later post!) and I have been working like crazy on other bunch of projects. Add 45 hours a week at my regular job and you don’t have any time left for other things.

Well, not anymore! Because as of Monday, the 17th November 2008, I am independent freelancer and advisor! Weahooo! Almost two years of planning, saving and learning to take this step and NOW I am ready to roll, independently from the crisis everyone is talking about! (more on it in a following post, aswell)

Anyways, I want to share with you a joint-project I was working on in the past 8 months. It’s an eBook about freelancing and entrepreneurship. The idea was to offer a most complete guide about all the facets of the “business” from scratch to success incluiding, financing, planning, outsourcing, time, resources and client management, etc.

Become Freelance

I have noticed that there were pretty good books about accounting, client relations, etc.. But there was no much reference combining this knowledge and applying to the freelance world. Maybe, because it’s still a pretty new/unpopular concept. My aim was to create a handy how-to that would be like a roadmap, for total beginners and professionals alike, and talk about anything and everything involved.

Voilá! The result turned out to be far better than I could ever hope for! Take a look at this freelance bible and become freelance today!

November 19, 2008 | Filed Under Books, Entrepreneurship, Freelance | Leave a Comment 

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