Catch Fire How to Ignite Your Own Economy
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LIMITED EDITION CATCH FIRE How to Ignite Your Own Economy NEW YORK DOUGLAS SCOTT NELSON Catch Fire How to Ignite Your Own Economy ©2010 by Doug Nelson All Rights Reserved. No part of this book may be used or reproduced in any manner whatsoever without the expressed written permission of the author. Address all inquiries to: Ignite Promotions LLC 1846 E Rosemeade Prwy, Suite #390 Carrollton, TX, 75007 Phone #1-800-825-7756 www.CatchFireBook.com ISBN: 978-1-935586-17-3 Library of Congress Control Number: 2010933698 Editor: Tyler R. Tichelaar, Ph.D. Cover Design/Interior Layout: Fusion Creative Works, www.fusioncw.com Published by: Aviva Publishing Lake Placid, NY 518-523-1320 www.avivapubs.com Printed in the United States of America First Edition For additional copies, visit: www.CatchFireBook.com Contents Foreword: Garrett Gunderson 7 Introduction 11 PART 1: How I Caught Fire 15 Chapter 1: How I Caught Fire 17 Chapter 2: Ka-BOOM 19 Chapter 3: Poor Me 27 Chapter 4: THE vs. MY Economy 33 PART 2: The Problem 43 Chapter 5: Myth Busting 45 Chapter 6: The Three Hands in Your Pocket 55 PART 3: The Solution 79 Chapter 7: The Scoreboard and Playbook 81 Chapter 8: Mind Your Own Business 101 Chapter 9: Be a Tool 115 PART 4: Size Matters 139 Contributors Mark Rothstein: Increase Your Tax IQ 143 Stewart Welch, III: Asset Protection 157 Dino Watt: Relationships 171 Melanie Nelson: A Healthy You 185 Epilogue 215 About this Book 217 About Doug Nelson 219 Acknowledgements 221 Dedication I dedicate this book to all those who are committed to their dreams. 9 Foreword I am sooo reluctant to ever do an endorsement (especially a foreword) as it is rare to have people think clearly and have a full premise without contradictions or holes in their philosophy or teachings. It is also essential for me to read anything I support. Well, I am a bit embarrassed that I have kept this book from you due to the delays on my part because I procrastinated, that is until I was inspired by Doug’s story. See, there are people out there that dream of an easy life, if they could only have financial freedom… on the other hand there are those that realize that freedom allows them to give more and have a greater positive impact in the world. This is what happens when money is put in its proper place, behind purpose. What I mean by the previous statement is money becomes an asset rather than a liability. It is only when money isn’t the primary reason or excuse for people doing or not doing something that real power and freedom can come about. This is who Doug is, what he represents and what he will teach you in this book, which is why I am honored to write this foreword. If you wake up worried about money or in a financial prison, Chapter 7 will be of huge significance for you. It may be hard to hear, but easier to do something about it and deal with the reality. I love that Doug has nailed it when it comes to what really has 10 CATCH FIRE to happen to get out of (and stay out of) debt. He talks about the root of debt and unless you know this, debt will always be in your life. You will learn not to borrow to consume, to eliminate all things that move you backwards, and only borrow to invest when you have certainty (otherwise it is gambling). Although I have different strategies around debt and debt management, Doug and I agree that most miss the root of what causes debt and that is why it is never resolved. There are plenty of books merely about sacrificing, saving and deferring your life to the future, but Doug is wise in knowing that it isn’t merely about defense, it is about offense as well. Doug gives great counsel of living within your means and the great news about you investing in this book is it gives you an opportunity to catch fire and increase your means. You will learn that it is about the investor not just the investment. Doug has nailed it when it comes to what you can do about the economy. He will not only illustrate the concept that destroys wealth, but he dismantles it. If you are chasing net worth, this will revolutionize your life. Also, before you put another dollar in a bank or an investment, you have to read about the issues surrounding our banks and banking system. Doug articulates the major problem of protecting our money with our money, and the concept of imaginary money. Every single American has to see what is shown when it comes to the amount of tax we pay. See, this book won’t skirt the issue to make people feel warm and fuzzy. You will learn some things that are very difficult to see, how banking actually works, what inflation is and the possible ramifications……. the good news is FOREWORD 11 you learn about the most important economy for YOU. So how did we get in this mess? Why are there so many numb people? Why don’t more people get it? The secret is in the following pages. This book isn’t just pointing out the problems either (although it shows you behind the curtain); it has a major focus on what to do. It gives you questions to ask of yourself and gives you ways to apply this to your life and discover what you can do. Hell, the Essential Skills section is worth the investment in this book alone. Oh yeah, huge bonus for anyone in a relationship, Dino Watt gives you the essentials to give you the real riches in life. So what I can tell you is that everyone has a Soul Purpose, but not everyone is living it. You have one, will you live yours? Read this book and the odds are now in your favor. Garrett B. Gunderson, New York Times Bestselling Author of Killing Sacred Cows 13 Introduction My name is Doug Nelson, a.k.a. the Burnt Guy. We’ll get to the story of why I’m called the Burnt Guy shortly. For now, I think it’s important that you know this about me: when it comes to commonly held beliefs and education regarding investing, retirement accounts, the stock market and so on, I’m what you might call a contrarian—I strongly believe that the vast amount of information we have been told about retirement, financial fitness, investing and so on is bullshit! That’s right, bullshit. Almost all our entire financial and retirement systems have been rigged. By whom? By the individuals and institutions that have created them. These systems are designed to siphon your hard-earned money so they can play their games with it—charge their fees, their commissions, and their charge-backs, and ultimately make huge profits whether you make any money or not. They don’t really care about your gains; all they care about is getting their hands on your money. Your money is simply the raw material getting fed into this giant economic furnace, where they get the heat… and you’re lucky if there are some coals left over to keep you warm. Then adding insult to injury, when they screw up on a colossal level and lose trillions of dollars of your money, “we” bail them out… yet they still get paid their huge bonuses. 14 CATCH FIRE Our system is full of fallacies and faults, creating a vicious cycle where the vast majority of us continue to work harder and harder yet fall further and further behind. The bottom line is this: the myth of working hard, saving for retirement, and then living a life of leisure—golfing in Florida, bouncing grandchildren on your knee, or buying one of those land yachts and clogging up a freeway exit—is truly, for most Americans, A BIG FAT LIE! The brochure is NOT as promised, folks! According to most statistics: 95 percent of Americans retire without financial freedom. What’s more, more than half of retired Americans live on less than $10,000 a year plus Social Security benefits. Stinks, doesn’t it? Here’s the good news: You CAN achieve financial freedom. I’ve done it. I’m about to share with you how you can become financially free. Now, it’s going to take some effort on your part, some new thinking and new beliefs and above all some new actions. It won’t be easy—nothing of significance is. But you can do it, that I promise you. Let’s get one thing straight right now before we move on— this isn’t about becoming a “gazillionaire.” It’s not about showing off to your neighbors, nor flaunting your wealth through flashy cars or expensive jewelry (although I have nothing against either of those two things!). This is about putting yourself in a position where you are financially bulletproof, that no matter what happens in your industry, our economy, or in life, you won’t have to base your decisions on money. Financially free people get EDUCATED (and not the standard way). They understand INTRODUCTION 15 how money works. They know the rules of the game and play to win, and because of these things they get to spend significant time with their families and loved ones. Financially free people don’t take a day off, we don’t take a week or two off—we take whole seasons off.