How to do business during your spare time and become rich.

Many of the rich became rich in their spare time. So, if you have a job because of financial responsibilities, keep it; when your friends go to play golf or watch sports on TV, you can be starting your part-time business. Seeing the future makes you rich, you need to be standing on the edge of time, gazing into the future. Your future is also created by what you do today, not tomorrow. The reason why mutual funds are slow is because the big profits or appreciation in any paper asset is made at the formation of the company prior to it going public.

The rich invest in shares of a company when the company is still a private company. The public invest in shares of a company after it becomes a public company. The differences can be enormous e.g. if you'd invested $25,000 in Intel prior to it going public, that $25,000 might be worth more than $40 million today depending upon the ups and downs of the stock market. By the time a mutual fund buys shares of the company, the profits have already been made. This does not mean mutual funds are not good investments, for most people, they're great investments. If you don't care about degrees, promotions or job security, attend seminars e.g. marketing, how to borrow money from the government to invest in low-income housing, etc for better financial results. Also remember that the moment you make passive income and portfolio income a part of your life, your life will change. Those words will become flesh. 

A P/E ratio simply measures the relative price of a stock as compared to its earnings. For example, if the stock paid a $2 per share dividend and the stock cost $20 per share, the stock's P/E ratio would be 10....which means it would take you 10 years to get your $20 back if all things remained the same. A more useful ratio is your debt to equity ratio. For example, if you've long and short term debt of, let's say, $100,000 and you've $20,000 in equity, then your debt to equity ratio would be $100,000/$20,000 = 5. So, your debt to equity ratio would be a 5. Thus, if your next month ratio is 10, you could be mismanaging your life. A debt to equity ratio of 10 could mean that either your debt has gone up to $200,000 or your equity has dropped to $10,000. Knowing these simple ratios is an excellent tool for teaching yourself how to mind as well as manage your own finances. Another ratio is the wealth ratio i.e. Passive income + Portfolio income/Total Expenses e.g. $600 passive + $200 portfolio/$4000 expenses = 0.2; once your passive and portfolio income exceed your expenses, the ratio would be 1 or higher and you would be out of the rat race. 

Also remember, today is the word for winners and tomorrow for losers. Don't procrastinate, start investing today. Metcalfe's law partially explains the quantum leap or exponential burst of wealth. Robert Metcalfe is one of the founders of 3Com and his law states that the economic power of a business is the square of the number in the network e.g. in network marketing businesses. The rich and powerful understand the power of networks. McDonald's is a network of hamburger stands linked throughout the world. General Motors is a network of car dealerships throughout America. Etc.