GET RICH QUICK      version 2.00     released 1995-05-20


INTRODUCTION:
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This is a guide to getting incredibly rich, incredibly quick.


AUTHOR:
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This document was written by Paul Edwards, fidonet 3:711/934, 
and is released to the public domain.  You can FREQ the latest
version from 3:711/934 with name getrich.txt.


DISCLAIMER:
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The information contained in this document is not guaranteed
to be accurate, it is my understanding.  Please inform me of
any innaccuracies.  I will not be held responsible for any
financial loss, or rare diseases caught by you after reading
this document.  Stop reading now if that scares you!  DO NOT
READ THIS DOCUMENT - IT WILL MAKE YOU LOSE ALL YOUR MONEY!!!


ASSUMPTIONS:
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You are highly disciplined, and able to save the bulk of your 
pay.  You don't want investments designed with crappy
hand-holding in mind.  You are concerned about possible job loss.  
You are wanting to take a long term view to wealth accumulation,
perhaps 20-25 years.


STEP 1:
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Make sure you really are capable of living hard.  For 2 years,
concentrate on building up a stake, something that you can 
fall back on if something goes wrong.  Here is a diet containing
what I believe to be the minimum requirements to sustain a
healthy life:

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Diet (per day)

1 cup rice
1 spoon margarine
10 gr raw bran
1/2 cup soya bean
1 vitamin tablet

prices from woolies on 1991-8-3

$1.94 2kg rice (home brand) = 8 cups = 24.25c/day
$1.16 500g margarine (home brand) = 11.6c/day
$0.36 500g bran (home brand) = 50 portions = 0.72c/day
$1.69 500g soya bean (sanatarium) = 2.5 cups = 33.8c/day
$5.78 100 multivitamins (cenovis) = 5.78c/day

total = 76.15c/day = $5.33/week

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Now I don't expect you will actually be able to sustain this.
I tried this once, but only lasted a few days.  I tried it
just when I was starting getting a cold, so that test is not
accurate, as I stopped in case it was related (although of
course the cold virus is in no way related to food intake).
The guy that gave me this diet (Greg Medley), did so under
much duress.  He also added "don't blame me if you catch
scurvey or something".

It should be noted that Greg himself managed to live for 
$10/week in around 1988, for all expenses besides rent.  His
diet went something like: skip breakfast, skip lunch, a
piece of fruit for dinner.  Also soup (I think you can even
go mad with the soup).

Another point of interest is that those foods listed above
came from Woolies.  You can apparently buy these foods from
different sources.  E.g. Greg told me that good quality soya
beans are sold in health food shops, lower quality is used to
make soya bean oil, and lower than that it becomes pig food,
but still safe for human consumption.  Check with a few
medical teams before experimenting with this.

The idea is not to follow the above diet, but use it as the
basis as minimum requirements, so that you can look at ways
of reducing your probably massive food bill down to something
far more reasonable.  I personally had another goal in mind.
I didn't want to do a scrap of cooking.  The way I got around
the problem was to eat weetbix + milk for breakfast (every
single day) ($1/day?), and weekdays I would eat lunch in the 
staff canteen (for about $3/day?), and skip dinner.  On weekends
I would instead skip lunch, and go to a Chinese restaurant and
get a takeaway large fried rice, for $2.70 (including 10%
discount for takeaway).  It was through this restaurant that I
was to eventually meet my wife.  Anyway, I certainly did keep
this diet up for 2 years.  And that's about $20/week.

For you to keep your food budget to that figure, you either
have to give up on variety (like I did), or actually do some
cooking (shock, horror).  Personally I lived for these two
years with 1 spoon and 1 bowl.  I didn't have a pot to boil
and egg, and wouldn't have done so even if I did have one.


STEP 2:
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The next goal is to get into your own home.  In Australia, we
have the dole to fall back on.  You know what your living
expenses can be reduced to.  The rest is what can be used to
pay your mortgage, if the worst comes to the worst.  With this
in mind, you should try to get into your own home.  This
probably means buying the cheapest scumiest place you can find.
I personally wasn't prepared to do that, and instead waited
until I had a much bigger stake (a 6.5 year wait).  There is
a public domain program which I wrote called money.c, which is
available by FREQing OZPD from 3:711/934.  Use this program
religiously, as it will tell you whether to keep renting or
buy a house.  The lower you set your sights, the more likely
it is to tell you to buy.  As soon as it told me to buy, I went
and bought my house.  The sooner you buy, the sooner you stop
having to pay tax on your interest (I suggest you keep your
money in the bank whilst saving up your stake).


STEP 3:
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Aim to get a large proportion of your house paid off (like 50%).
This will then give you a stake with which you can use for
other purposes.  If you go to a decent bank, such as Citibank,
they will let you borrow up to 80% of the value of the house
without having to pay penalties.  Let's say that your house cost 
$100,000.  Then you have $30,000 to play around with.  What you 
do with it, is start negative gearing.  You ask Citibank to 
create another loan account for you, interest only, valued at
$30,000.  You should NEVER pay it off.  You use this money to
buy BLUE CHIP shares.  There is a discount broker, Ponts
Securities, which charges $60 for a trade under $6000.  So
with $30,000 you could buy 5 blue chip stocks, around $5900
per stock.

Now because Citibank don't have as flexible a product for margin
lending as Bankers Trust, you need to get the share certificates
for the shares you have bought, and lodge them with BT Margin
Lending.  You can then borrow more money (minimum of $50,000)
from BT, which you can use to buy yet more shares.  This "margin
loan" is also interest-only, not only that but you can pay the
interest for the whole year up-front!

This now gives you two things:
1. A proportion of your before-tax income is spent on paying off
the investment loans.
2. Your after-tax income is spent paying off your mortgage.


STAGE 4:
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Pay of your home loan, and then borrow it again as above.  When
your the total 70% of your house has gone into unit trusts, it
is time to find a bigger house to live in.  When you need some
cash, you should be able to sell some of your shares, and the
capital gains tax should be able to be offset by some of your
franked dividends from your other investments.


OTHER INFO:
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You might want to buy a book called "Making Money Made Simple"
by Noel Whittaker.  Unfortunately some of the stuff is oriented
towards the average stumblebum dickhead, which is why I have
written the above document.

You might also want to buy a copy of the magazine called 
"Personal Investment".  
@EOT:

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