The Profit and Benefits of Assets, ROI
by If you have any dreams of becoming rich then ROI will be a help for you. For the rich, think in terms of ROI, NOT in non I or non R (non-investment or non-return).
T represents the Total money you spent on the investment. So with my example the formula would look like this $10,000/$20,000*100=50%. So that is the formula if you ever want to calculate the percentage of your return you will receive annually from an investment. I say if an investment takes 2 years for you to receive an 100% return it is not a worthwhile investment to make (which a 100% annual ROI would look like this $200,000/$200,000*100=100%). However if an investment bears a 70% or more ROI then the investment is worth while and should be taken not just for profit but maybe even for capital gains to, if the investment is a in real estate. Capital gains is the amount you make/profit from selling a property. Sounds a lot like monopoly right? Man I better wrap this up before I start sounding like accounting 101 huh? Well in conclusion ROI can be used to make outstanding investments or it can be manipulated to make even more money. Just remember the rich use ROI to get and stay rich. While the poor and middle class will continue to slide and use things like loans you dig themselves into the carnivore pit.(I explain the carnivores in my article “Good Debt… Bad debt”). So the choice is yours and I leave it to you to make. So which opposite do you want to be in?
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