Wednesday, March 29, 2006

$1,000,000 follow up to Deymond Lashley

You have to love the internet, the blogosphere especially. I received a very colorful reply to my what makes one rich rant of a couple of days ago. In the response Deymond Lashley goes on to tear apart my entire posting as being less than critically thought.

Deymond goes on to say, "Don't quit your day job, unless it involves critical thinking (not your strong suit). "

Ok to be honest I often soften blows from my truest opinion because i feel that if I were to say what I really felt, I would offend too many people and be deemed too radical. Well Deymond, congratulations you have caused me to come out of my shell and I dedicate this to you:

Rich in 2006:

1. Owning a mortgage(home) does not make you rich. I dont care how much equity you have in the home, unless that money is working for you, all you have is a cash flow from your pocket into the bankers pocket.

2. Petty salaries does not make you rich in 2006. No matter if you do it by yourself or with a partner, making $150K a year does not make you rich. Dont even mention your salary until you cross $175K by yourself and have your company afford you a housing and car allowance.

3. Savings of $350K or less does not qualify you as rich. Money in the bank, is the same as money in the tank.

4. The legal definition for wealth "and these definitions are outdated"
  1. a natural person who has individual net worth, or joint net worth with the personĂ‚’s spouse, that exceeds $1 million
  2. a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;
How do I define wealth? Simply, speaking from a purely financial standpoint, when you have the means to leave your everyday life tomorrow, without making any apologies or preparationss to do so and settle in another country for more than a year, then you are rich. This means you don't need to sell your house, it will just be. You don't need to cash in your 401K, that money was for your grandkids graduation gift. You don't have to sell your business, it will run with or without you. Until you have the capacity to do these things, you are not rich in America you are simply above average.

The overall point I am trying to stress is stop thinking of wealth as the number, $1,000,000. Think past that mental roadblock. For years it had given me problems until I begin to study wealth and lifestyles. $1,000,000 is a number, don't think of it as a goal, think bigger or at least more quantifiable. We are often limited to our own minds. I hope this helps.

Tuesday, March 28, 2006

For Profit Idea: iElderCare

Business Type: Elder Care for the 21st century

Estimated Start Up: $Varies - $5K- $25K

Where: Local markets at first, with potential for national or regional growth.

Concept: Many families are seperated from their aging parents because of many reasons such as a new job on a different side of the country. Nursing homes and In home nurses are not always needed and can often be very expensive. What if that parent is fairly active, by senior standards, but needs help with errands, prescriptions, meal preparation and household cleaning? No nursing degree needed, just common sense, basic first aid training, basic domestic skills and some certifications that can be obtained over time such as CPR and the like.

So this has probably been done many times, what makes this idea different?

Now add to this technology components such as ability to record these meetings between the new age" go-fer" and the loved ones to the people that are footing the bill. Such as the use of real time web cams, online to do list, digital video and or pictures, mp3 recorded conversations for quality control, video conferencing with the family. Very simple technology that is not currently exploited in this field.

Essentially this service would contain common task such as grocery shopping, light cleaning, food preparation, prescription assistance, doctor visits, cell phone tutorials, new product purchases and other tasks completed as requested by the elderly person that does not need a full time nurse, but rather a 3 hour per day for 4 days a week assistant.

1. People priced out of the full time elderly care and nursing homes
2. Fairly active seniors that need minor assistance
3. Family concerned but geographically unable to visit as often
4. Lonely seniors

1. Pricing models vary depending on services and areas, but read this clip from a CNBC article,

In fact, the U. S. General Accounting Office says that nearly 40% of people age 65 now will spend some time in a nursing home. The federal Health Care Financing Administration projects that spending on nursing home care will rise from about $94.1 billion now to $125 billion a year by the end of 2005 and $330 billion by 2030.

The average annual cost of a private nursing home is now about $55,000, or $150 per day -- with many facilities in large cities costing more than $65,000 a year. Those costs can add up quickly, and Medicare does NOT cover them -- except for a few days in a skilled nursing facility after a hospital st

Monday, March 27, 2006

$1,000,000 and still not enough?!

What defines someone as being rich in 2006? For simplicity's sake, lets focus on financials and skip the intangible gifts of health, wisdom, family and the like. I dont skip these things lightly, rather I am speaking from a money, asset and income point of view.


Does income make one rich? If so, who amongst these people are rich:

1. A 30 year old man who brings home $10,000 a month and has $7500 a month in expenses. After all this person is making $120K a year.

2. A 42 year old woman who lives at home with her parents to trim expenses, pays no rent and makes $3200 a month from wages. No rent, good public transportation...good life?

3. What about the twenty something couple with no kids, bringing home $7500 a month in income? No kids, own a home, 1 cat, 1 dog and perfect health.

4. A young professional entertainer, making $350K a year. Has celebrity and access to the finer things in life, at least the things capitalism tells us are finer.

I submit to you that while all of the above situations are favorable in their own light, none of them are rich. I honestly believe people in general, investors or even money smart people lack basic financial intelligence. So many new investors and people working for their money constantly think that making $1,000,000, will change their life. Think of this, average household salaries in Los Angeles is in the 40k's. A person making 40K a month does not even clear 1/2 of a million, yet because they have not hit the magic million dollar mark, they are not considered rich? This person makes what the average person makes in a year in one month. Yet, we get stuck on the concept of 1,000,000 dollars.

I have said it before and I stand by it today. A million dollars is not what it used to be. There are cars that cost more than that. In fact you should not be able to call yourself rich with a 1 million in the bank as 10 million is the new million. But on the flip side we must shift our thinking from wanting to be rich, to that of having our needs taken care of and the ability to exercise our wants. Let go of $1,000,000 and start thinking one of two ways, think like a billionaire or think about being happy; A million dollars is so lukewarm.


Mentality makes one rich.

Monday, March 06, 2006

For Profit Idea:

Have you tried zillow yet? If not I suggest you do and before you head there, let me first tell you about the site. The site describes itself as, is an online real estate service dedicated to helping you get an edge in real estate by providing you with valuable tools and information. The site I must say I love it. There have been many critics of the site because they proclaim that the Zestimate, or quick home price appraisals are typically not accurate. Read the L.A. Times article:

But for those math geeks that want precise numbers, hire a freaking real estate appraiser and quit complaining. These are probably the same people that argue about the difference between their Toyota Camry and the Lexus ES 300 is leather seats. Ok, lets see how many heads turn in your Camry. Or lets see where the valet parks their Camry in relation to the Lexus, but I digress.

The current tools of looking up taxes, historical purchase prices and utilizing google mapping technology is great in and of itself. Oh what short memories people have. Do you realize what a difficult process each of these features would have been 7 ears ago? However I do have an idea that would solve the critics complaints and add stickiness to the site, upping its resell price. It would require a quick login, which would establish users for future sell, like MySpace, Skype and every other hot web site.

Business Improvement Idea:

Zillow should add a "Ziki" sub price option to its homes zestimates. Ziki, is another way of saying wiki, but with a Z, as Zillow does, in which users could add their knowledge of not a specific house, they already have that capability, but rather a specific neighborhood or zip code. Once lets say 5 ziki prices are collected, they would begin to appear under the Zestimate. This would afford the site to have more up to date numbers than it currently does. The site can not be all things to all people, but I love it and can't wait to see what the sites of tomorrow will bring.

At Larrin's for Profit Ideas, we dont make a lot of the products you buy, we make a lot of the products you buy better.