Promoting products that are in demand is one of the keys to making money on the Internet. In this article we will go over three online business ideas that are in demand in working well right now. You will have to come up with specific products yourself.
1. Provide a service for other Internet marketers. There are many Internet marketers catching on to this idea.
However there are many services on the Internet that need more Internet businesses to take care of them. Blog writing is a perfect example of this.
Even if there are thousands of blog writers available right now they could never provide all the needed blog content. There are literally millions of blogs online right now that need the content added to them and the owners are too busy to do it.
Blog writing is just as about as good as it gets if you want a timely Internet business. Their other online services that are in demand right now to. All you have to do is spend a little time researching to come up with them.
2. Start an affiliate business targeting a specific niche. This really is the way to do affiliate marketing today.
You can turn your small niche site into an authority site over time as well. But when you are initially starting out you want to zero in on a very specific niche that gives you less competition.
For example starting a niche affiliate business on Internet marketing would not be the way to go. A better idea would be to target a specific are of Internet marketing such as using an autoresponder to get rich.
Niche marketing as an affiliate helps eliminate some of your competition and still sell products as an affiliate marketer.
3. Start your own blog around a passion you have. This is a great idea because if you enjoy it and never seems like work.
If your passion is also something that you are an expert at that's even better. This really is a great way to provide useful information and have fun at the same time.
The business side of it comes in selling advertising, selling affiliate products, creating your own products, and so on. Turning your blog into a profit center is something that does take time, but if it's something that you are passionate about you can enjoy doing it.
In summary these are three timely online business ideas that would be a good way for you to get started. The amount of money you make will come down to how you develop your business and the amount of effort that you are willing to put into it.
Paul Jesse is an author and Professional Internet Marketer providing free and low cost online business ideas. He invites you to visit his make money at home online website for more free information.
Article Source: http://EzineArticles.com/?expert=Paul_Jesse
Tuesday 23 February 2010
Sunday 14 February 2010
How to Profitably Sell Books on Amazon
Knowing which books to offer on Amazon can mean the difference between a good income stream and total failure. Here is what you need to know.
First, how do I sell books on Amazon
Amazon.com has a feature called Amazon Marketplace. This service lets you sell your used books, CDs, DVDs, etc. just by listing their code number (ISBN number for books, etc.) Listings can literally be completed in a minute or less for each item you sell. It does take a few minutes to set up a selling account but there is no charge for doing so. In fact the only time you incur a charge is when something actually sells.
There is one small negative to this approach. It only works with products that have a code number. So if you have antique books or other items without a code number, you will need to set up an amazon shop. There is a monthly fee for setting up a shop but the fees that amazon charges are much less in this method of selling than the direct selling method in the prior paragraph. So if you become a volume seller it is probably worth the investment in getting an amazon shop as the investment will quickly be paid for by the savings in fees.
Second, decide your interest level (i.e. just list books or get a store)
The next step is to decide your interest level. It is going to be a casual thing or will you be treating it as a serious business.
Lets say you were just cleaning house and wanted to make a bit of money on some books or CDs you have. In this instance, it doesn't make sense to set up an amazon shop as you won't earn enough to justify the monthly investment in keeping your shop running. But lets say your passion was yard sales and bargain hunting and you knew that every week you could find and list hundreds of books, CDs, DVDs, etc. In this case getting an amazon shop would be a wise investment.
Basically amazon is structured to satisfy anyone's selling needs and they have a variety of simple tools that will help you achieve your selling goals in a quick, cost effective and efficient manner.
Third, these are the types of books you should not be selling
Selling used books is not an obvious thing to do. Common sense would say that bestsellers are the best kind of book to offer because they have sold millions of copies. But it is their very popularity that makes them poor books to sell. If you do a search on amazon for a bestseller, you will find that many people are selling their used copies, many times for under $1.00. With millions of copies out there, the market is glutted. This is true for any type of bestseller - fiction or nonfiction. Other books types you want to avoid are biographies, cookbooks and political books. And of course books like encyclopedias, readers digest condensed books, dictionaries, etc. are also terrible for resale. Oh, and also avoid old library books. There is nothing wrong with them per se but they will be slow sellers because of the markings the library puts on the books.
The only exception to this rule would be signed first editions. If you find a signed first edition, it will retain value and possibly be worth more than the published price depending on who the author is.
Books you should be looking for are books about specific nonfiction. subjects. (In other words, avoid all fiction books.) For instance, books about cars, boats, playing tennis, collecting coins, herbal medicine, business (as long as they are not best sellers), real estate, gardening, etc. are all excellent books and have a very high prospect of selling for a very high price when compared to a bestseller. I will typically get 50-75% of the cover price selling these types of books on amazon.com.
One other thing to note when choosing books to sell. Try to find books that are in perfect or near perfect condition. These books will have their dust jacket if hard cover. The spine will not be broken. They will not be filled with writing. People know they are buying used books when buying from you but they want a book that is nice and presentable, not one that is falling apart.
Where can you find used books for sale?
Used books are everywhere but your goal is to get them as cheaply as possible - preferably for $1 or less. Places I regularly check include yard sales, flea markets, thrift shops and libraries. Libraries often have used books donated to them that they just put right on the sales table. I think the people who donate them think they will end up on the shelves of the library but they never do. Estate sales and auctions can also provide opportunities to buy books. And keep your eyes open. You never know when you might run into a buying opportunity.
Will all the books sell?
No matter how carefully you pick your books, you will end up with some that just don't sell or are just very slow in selling. This is normal. Chances are good that the book will eventually sell but it could take several months. And if you purchase your used books cheaply enough, the carrying cost of the books that sell will be small. I find that if I list a random selection of 100 books, about 25% of them will sell each month. That means that after 4-5 months, I can pretty much assume that all the books that will sell have actually sold and I may be left with 5-10 books that for whatever reason had no buyers.
At that point, I make one of two choices. I either lower the offering price on amazon to try to attract a buyer or "trade" the book for something more desirable.
The only time to buy bestsellers
There is one time and one specific reason I will buy bestsellers. If I have the opportunity to buy a large number of hardcover (and sometimes paperback) bestsellers in perfect condition for under $1 each (under $0.25 each if softcover), I will usually buy them. However, I will not sell them on amazon.
There are a large number of used bookstores that will buy or trade books with you. They typically give you 20-25% of the books list price if you want cash and up to 50% of the books list price if you want a credit. That means I have a ready outlet for liquidating these books. If it is worthwhile, I can just swap them for immediate cash. Or I can trade them for other books I can sell at amazon. In general, I make out better in a trading situation than in a cash situation but sometimes if I have way too many books, I will just go for the cash option to reduce my inventory. It is a really effective form of inventory management.
Before you jump out and buy 100's of bestsellers, do check with the used bookstores in your area to see what they are offering for these books. Different shops may offer different rates depending on their current inventory. A little shopping around by phone can result in a lot more cash ending up in your pocket.
How much can I realistically make?
The amount you can make in any given month depends entirely on how many books you acquire that month, how well you did at negotiating the cost and how well your books choices were. This is a business where you can easily make several hundred to several thousand dollars a month depending on the above items. Also it is a business that can give you higher returns the longer you do it. The more you sell, the more you get to know what will sell quickly and what will sell slowly. That will let you be a bit more particular about the books you choose in your book hunting. Instead of ending up with lots of unsold books at the end of the month, you will have an inventory that turns over very rapidly.
Book selling is a really fun and stress free way to earn anywhere from a supplemental part time income to a full time income. And with the tools offered at amazon.com, it is really easy to get started and keep the profits flowing. There aren't many businesses where you can make money by shopping but this is one of them!
Are you a fan of the American Civil War?
Do you love reading about its history?
If that describes you, you need to check out The Civil War Omnibus - the most comprehensive digital collection of Civil War works available. The Civil War Omnibus represents 100s of key and hard to find references to the Civil War for any fan of the war.
Satisfy your history bug. We offer 100s of historical collections at The Historical Archive. Check out our entire collection of historical CDs and DVDs at http://www.TheHistoricalArchive.com.
Article Source: http://EzineArticles.com/?expert=Steven_Chabotte
First, how do I sell books on Amazon
Amazon.com has a feature called Amazon Marketplace. This service lets you sell your used books, CDs, DVDs, etc. just by listing their code number (ISBN number for books, etc.) Listings can literally be completed in a minute or less for each item you sell. It does take a few minutes to set up a selling account but there is no charge for doing so. In fact the only time you incur a charge is when something actually sells.
There is one small negative to this approach. It only works with products that have a code number. So if you have antique books or other items without a code number, you will need to set up an amazon shop. There is a monthly fee for setting up a shop but the fees that amazon charges are much less in this method of selling than the direct selling method in the prior paragraph. So if you become a volume seller it is probably worth the investment in getting an amazon shop as the investment will quickly be paid for by the savings in fees.
Second, decide your interest level (i.e. just list books or get a store)
The next step is to decide your interest level. It is going to be a casual thing or will you be treating it as a serious business.
Lets say you were just cleaning house and wanted to make a bit of money on some books or CDs you have. In this instance, it doesn't make sense to set up an amazon shop as you won't earn enough to justify the monthly investment in keeping your shop running. But lets say your passion was yard sales and bargain hunting and you knew that every week you could find and list hundreds of books, CDs, DVDs, etc. In this case getting an amazon shop would be a wise investment.
Basically amazon is structured to satisfy anyone's selling needs and they have a variety of simple tools that will help you achieve your selling goals in a quick, cost effective and efficient manner.
Third, these are the types of books you should not be selling
Selling used books is not an obvious thing to do. Common sense would say that bestsellers are the best kind of book to offer because they have sold millions of copies. But it is their very popularity that makes them poor books to sell. If you do a search on amazon for a bestseller, you will find that many people are selling their used copies, many times for under $1.00. With millions of copies out there, the market is glutted. This is true for any type of bestseller - fiction or nonfiction. Other books types you want to avoid are biographies, cookbooks and political books. And of course books like encyclopedias, readers digest condensed books, dictionaries, etc. are also terrible for resale. Oh, and also avoid old library books. There is nothing wrong with them per se but they will be slow sellers because of the markings the library puts on the books.
The only exception to this rule would be signed first editions. If you find a signed first edition, it will retain value and possibly be worth more than the published price depending on who the author is.
Books you should be looking for are books about specific nonfiction. subjects. (In other words, avoid all fiction books.) For instance, books about cars, boats, playing tennis, collecting coins, herbal medicine, business (as long as they are not best sellers), real estate, gardening, etc. are all excellent books and have a very high prospect of selling for a very high price when compared to a bestseller. I will typically get 50-75% of the cover price selling these types of books on amazon.com.
One other thing to note when choosing books to sell. Try to find books that are in perfect or near perfect condition. These books will have their dust jacket if hard cover. The spine will not be broken. They will not be filled with writing. People know they are buying used books when buying from you but they want a book that is nice and presentable, not one that is falling apart.
Where can you find used books for sale?
Used books are everywhere but your goal is to get them as cheaply as possible - preferably for $1 or less. Places I regularly check include yard sales, flea markets, thrift shops and libraries. Libraries often have used books donated to them that they just put right on the sales table. I think the people who donate them think they will end up on the shelves of the library but they never do. Estate sales and auctions can also provide opportunities to buy books. And keep your eyes open. You never know when you might run into a buying opportunity.
Will all the books sell?
No matter how carefully you pick your books, you will end up with some that just don't sell or are just very slow in selling. This is normal. Chances are good that the book will eventually sell but it could take several months. And if you purchase your used books cheaply enough, the carrying cost of the books that sell will be small. I find that if I list a random selection of 100 books, about 25% of them will sell each month. That means that after 4-5 months, I can pretty much assume that all the books that will sell have actually sold and I may be left with 5-10 books that for whatever reason had no buyers.
At that point, I make one of two choices. I either lower the offering price on amazon to try to attract a buyer or "trade" the book for something more desirable.
The only time to buy bestsellers
There is one time and one specific reason I will buy bestsellers. If I have the opportunity to buy a large number of hardcover (and sometimes paperback) bestsellers in perfect condition for under $1 each (under $0.25 each if softcover), I will usually buy them. However, I will not sell them on amazon.
There are a large number of used bookstores that will buy or trade books with you. They typically give you 20-25% of the books list price if you want cash and up to 50% of the books list price if you want a credit. That means I have a ready outlet for liquidating these books. If it is worthwhile, I can just swap them for immediate cash. Or I can trade them for other books I can sell at amazon. In general, I make out better in a trading situation than in a cash situation but sometimes if I have way too many books, I will just go for the cash option to reduce my inventory. It is a really effective form of inventory management.
Before you jump out and buy 100's of bestsellers, do check with the used bookstores in your area to see what they are offering for these books. Different shops may offer different rates depending on their current inventory. A little shopping around by phone can result in a lot more cash ending up in your pocket.
How much can I realistically make?
The amount you can make in any given month depends entirely on how many books you acquire that month, how well you did at negotiating the cost and how well your books choices were. This is a business where you can easily make several hundred to several thousand dollars a month depending on the above items. Also it is a business that can give you higher returns the longer you do it. The more you sell, the more you get to know what will sell quickly and what will sell slowly. That will let you be a bit more particular about the books you choose in your book hunting. Instead of ending up with lots of unsold books at the end of the month, you will have an inventory that turns over very rapidly.
Book selling is a really fun and stress free way to earn anywhere from a supplemental part time income to a full time income. And with the tools offered at amazon.com, it is really easy to get started and keep the profits flowing. There aren't many businesses where you can make money by shopping but this is one of them!
Are you a fan of the American Civil War?
Do you love reading about its history?
If that describes you, you need to check out The Civil War Omnibus - the most comprehensive digital collection of Civil War works available. The Civil War Omnibus represents 100s of key and hard to find references to the Civil War for any fan of the war.
Satisfy your history bug. We offer 100s of historical collections at The Historical Archive. Check out our entire collection of historical CDs and DVDs at http://www.TheHistoricalArchive.com.
Article Source: http://EzineArticles.com/?expert=Steven_Chabotte
Saturday 13 February 2010
Debt Free - Living Below Your Means
Notwithstanding that there are some who feel that incurring debt is healthy; most of us will not want to get into the debt trap. However, the bad news is that it is not easy to stay away from borrowing especially with the economic crisis and the ever growing cost of living. Once you get into debt and if you are not competent in handling your own finances, you are going to snowball your debt.
There are many ways you avoid getting into debts. Perhaps the best would be to go back to basic where you learn to live within you means. Let's look at some of the helpful tips below:
Start buying off-brand items. Most items, such as food, detergent, clothes, stationeries, and even electrical appliances are more economical in price as compared to the branded ones. Usually for these off-brand items, you can find them in regular stalls, factory outlets or close-out stores.
Always look out for bargains. Buying some branded and quality staff by paying cheaper price is nothing to be shame of. With less to pay, you reduce your financial burden, save more money and get something with quality, is it not a great bargain? You may find such bargains at factory outlets, warehouse sales, discount stalls and retail shops having sales to clear stocks. To add on to the list, you may also go online and find some quality item at online auctions.
Track your spending carefully. Plan a limit for yourself daily and record every cent that spent. This tracking is important as it prevents you from overspending and impulsive purchasing. This practice needs discipline and consistency and thus most people fail to follow through, and it leads to money problem at the end of the month. Consequently, people will resort to borrowing and start incurring debt. They could end up paying more money in terms of interest and even late charges.
Never invest unless you have some extra saving for such purpose. If you have extra money to invest, you should not invest more than what you can afford to lose. Planning you finances before your investment is extremely important. It is advisable to at least have some fund as your backup which is more than or equal to the amount you have planned to invest. Study and understand the policy involved of your investment thoroughly before you put your money into bonds, stocks, forex, or mutual funds. This is to ensure you know the risk you are going to take when you invest.
Spend only on what is necessary to you. Basic needs like food, shelter, clothes and education are some necessities which you to pay for. Avoid buying things which are considered luxuries. They are just items which could only fulfill your materialistic desire. I am not saying that you should lead a Spartan life; you can purchase these luxuries once you can afford them. But at the moment, delay that gratification.
Teach your family members, especially children, the importance of financial management. They have to learn to see the value of money and what is so-called 'hard-earned money'. Be firm to say 'no' when your children demand an expensive toy, even when they began throwing tantrums. Learn to make your own toys, so that your children can at the same time learn and appreciate what you are doing for them.
Get rid of those credit cards so as to solve your spending problem. If you feel more secure to have at least one of such plastic card with you, try leaving home without it. Always pay with cash if possible as you will not need to pay additional interest at the end of the month or risk paying late penalty if you happen to pay late.
Getting into action of making use of the above tips to live below your means is the first step you need to take. There are in fact many other ways which you can practice to avoid yourself getting into the sea of debts. The main point is that living a life free of debt and worry is always possible if you know how and be consistent in what you are doing.
Earning more money in this bad economy is not impossible, you just need to have the right strategies and get the right advice from the right people! Find out how you can actually make and save more money at http://www.makemoneyideas.expertreviewslist.com now!
Article Source: http://EzineArticles.com/?expert=Jeff_Boo
There are many ways you avoid getting into debts. Perhaps the best would be to go back to basic where you learn to live within you means. Let's look at some of the helpful tips below:
Start buying off-brand items. Most items, such as food, detergent, clothes, stationeries, and even electrical appliances are more economical in price as compared to the branded ones. Usually for these off-brand items, you can find them in regular stalls, factory outlets or close-out stores.
Always look out for bargains. Buying some branded and quality staff by paying cheaper price is nothing to be shame of. With less to pay, you reduce your financial burden, save more money and get something with quality, is it not a great bargain? You may find such bargains at factory outlets, warehouse sales, discount stalls and retail shops having sales to clear stocks. To add on to the list, you may also go online and find some quality item at online auctions.
Track your spending carefully. Plan a limit for yourself daily and record every cent that spent. This tracking is important as it prevents you from overspending and impulsive purchasing. This practice needs discipline and consistency and thus most people fail to follow through, and it leads to money problem at the end of the month. Consequently, people will resort to borrowing and start incurring debt. They could end up paying more money in terms of interest and even late charges.
Never invest unless you have some extra saving for such purpose. If you have extra money to invest, you should not invest more than what you can afford to lose. Planning you finances before your investment is extremely important. It is advisable to at least have some fund as your backup which is more than or equal to the amount you have planned to invest. Study and understand the policy involved of your investment thoroughly before you put your money into bonds, stocks, forex, or mutual funds. This is to ensure you know the risk you are going to take when you invest.
Spend only on what is necessary to you. Basic needs like food, shelter, clothes and education are some necessities which you to pay for. Avoid buying things which are considered luxuries. They are just items which could only fulfill your materialistic desire. I am not saying that you should lead a Spartan life; you can purchase these luxuries once you can afford them. But at the moment, delay that gratification.
Teach your family members, especially children, the importance of financial management. They have to learn to see the value of money and what is so-called 'hard-earned money'. Be firm to say 'no' when your children demand an expensive toy, even when they began throwing tantrums. Learn to make your own toys, so that your children can at the same time learn and appreciate what you are doing for them.
Get rid of those credit cards so as to solve your spending problem. If you feel more secure to have at least one of such plastic card with you, try leaving home without it. Always pay with cash if possible as you will not need to pay additional interest at the end of the month or risk paying late penalty if you happen to pay late.
Getting into action of making use of the above tips to live below your means is the first step you need to take. There are in fact many other ways which you can practice to avoid yourself getting into the sea of debts. The main point is that living a life free of debt and worry is always possible if you know how and be consistent in what you are doing.
Earning more money in this bad economy is not impossible, you just need to have the right strategies and get the right advice from the right people! Find out how you can actually make and save more money at http://www.makemoneyideas.expertreviewslist.com now!
Article Source: http://EzineArticles.com/?expert=Jeff_Boo
Tuesday 9 February 2010
Affiliate Marketing Guide - How to Become an Affiliate
Majority of businesses online depend on the concept of affiliate marketing because it is cost-efficient and they earn from it. In fact, some companies hire in-house affiliate marketers just to promote their business, products, or services on the Internet. With its potential as a money-making initiative, this model is regarded as one of the most sought after business or positions online.
If you are the type of person qualified to become an affiliate marketer but does not know where to begin, here are some things that you can start on.
Your main goal as an affiliate marketer is to bring traffic to your partner merchant. By "traffic", we mean a number of people visiting a certain website.
There is no standard in traffic counts. Each merchant has their own desired traffic figures. As an affiliate marketer, always remember to pattern your strategies to your partner's objectives.
To generate your merchant's aspired number of traffic, develop contents in your website based on your market's interests and your merchant's profile. To do this, understand how your partner's business operates and understand what your consumers' behaviour are when online.
On your website content, don't be too pushy. You don't know how hard your push is, they might get out the door. So, keep your information assertive. There should always be a "call-to-action."
As an affiliate marketer, your job is to generate traffic for your partner by way of developing contents or advertising messages about their products or services that are true and credible. You must always be cautious on accepting or promoting merchants because not all of them are ethical in doing affiliate marketing. Search engines has ways in defining who uses irresponsible link building strategies, and what's worse is that your website might get banned.
Zack Lim is an internet affiliate marketer who owns http://www.MyAffiliateMarketingOnline.com/FreeEcourse. He has helped hundreds of people to start their own affiliate marketing business.
He has recently developed a free e-course showing you a step by step process for starting your own affiliate marketing business easier. To learn how to start your own affiliate marketing business without wasting your time and money, visit http://www.MyAffiliateMarketingOnline.com/FreeEcourse
Article Source: http://EzineArticles.com/?expert=Zack_Lim
If you are the type of person qualified to become an affiliate marketer but does not know where to begin, here are some things that you can start on.
Your main goal as an affiliate marketer is to bring traffic to your partner merchant. By "traffic", we mean a number of people visiting a certain website.
There is no standard in traffic counts. Each merchant has their own desired traffic figures. As an affiliate marketer, always remember to pattern your strategies to your partner's objectives.
To generate your merchant's aspired number of traffic, develop contents in your website based on your market's interests and your merchant's profile. To do this, understand how your partner's business operates and understand what your consumers' behaviour are when online.
On your website content, don't be too pushy. You don't know how hard your push is, they might get out the door. So, keep your information assertive. There should always be a "call-to-action."
As an affiliate marketer, your job is to generate traffic for your partner by way of developing contents or advertising messages about their products or services that are true and credible. You must always be cautious on accepting or promoting merchants because not all of them are ethical in doing affiliate marketing. Search engines has ways in defining who uses irresponsible link building strategies, and what's worse is that your website might get banned.
Zack Lim is an internet affiliate marketer who owns http://www.MyAffiliateMarketingOnline.com/FreeEcourse. He has helped hundreds of people to start their own affiliate marketing business.
He has recently developed a free e-course showing you a step by step process for starting your own affiliate marketing business easier. To learn how to start your own affiliate marketing business without wasting your time and money, visit http://www.MyAffiliateMarketingOnline.com/FreeEcourse
Article Source: http://EzineArticles.com/?expert=Zack_Lim
Thursday 4 February 2010
Generating Wealth - Formula To Success
Everybody says, if only I made a little more money, I would be better off. They think that an increase in their income would make their lives less shabby than it is today. What that ‘little more money,’ they would be able to afford better food, better clothing, better everythings!
Unfortunately, people seem to associate ‘making more money’ with wealth. A person making $12,000 dollars a month seems to be wealthier than one who makes $10,000 a month. And why not? This person has a $2000 advantage over the latter! Isn’t he sure to be deemed wealthier?
The answer is no. A person might be making a lot more money than others, but that doesn’t mean he or she is wealthy. What? Unbelievable? Stay tuned for the answers as to why!
What is Wealth?
Wealth pertains to money and property. Being wealthy means you have an abundance of objects of value. These things may be houses, land, bank accounts, cash, jewelry, and other valuable objects.
When people think of wealth they usually think of stockpiles of gold and silver and the ability to waste money without remorse because they have so much of an abundance of it, it doesn’t matter.
This could not be more wrong. This is not the proper definition of wealth.
The keyword in the meaning of wealth is the word abundance. Abundance means you have more than enough. And yes, of course, this is what we all want to achieve. But unlike what most people desire, it does not mean you can spend without remorse.
Back to the Question
You might still be stumped as to why the man earning $12,000 might not be as wealthy as the man who earns $10,000. Here’s why:
Since wealth is the abundance of objects of value. The more objects of value you have, the wealthier you are right? Now the question is, does a bigger paycheck guarantee more wealth?
The answer is no.
The man who makes $12,000 may take home a bigger paycheck. But what if he spends more than that amount per month? Would he be able to create that abundance he so sorely seeks? And the man who makes $10,000 per month, what if he only spends $5,000 of that per month, would he have surplus at months end?
That is the secret of wealth: Never spend beyond your means. Save, save and save. Remember the old adage? – A penny saved is a penny earned? That has rung true even from the earliest days. Everyone can become wealthy, if they would stick to this single most important idea.
The problem with most people is that money is power. And the more money they have, the more inclined they are to throw it away. If this is how you are thinking, stop! Check back with the previous paragraph and reflect anew. Always remember that thought because without a proper spending plan, there can be no wealth.
How Do I Do That?
Always have a spending plan. Take note of expected income and tally this against prospective expenditures. How much is the gap. If there is no gap or if the expenditures exceed the income, you are in deep trouble. You will want to rearrange your spending patterns if this is the case.
There is no shame in tightening the belt. If your goals include the future, you must prepare for it today.
Remember that the larger the difference between the income and the expenditure, the larger the wealth that can be generated. This is the secret of wealth.
A Wealthier You
That was simple wasn’t it? If it was that simple, why doesn’t everybody do it? The answer is: because it takes a great deal of patience and self-control to live within your means.
Most people are victims of their spending desires. That difference between wealthy people and those who are not is not the difference in their bank accounts but the difference in their attitudes towards spending. If you can hold today for a better tomorrow, wealth is on its way!
So plan your future today! Spend within your means! Choose those that are important and tell yourself, “I don’t really need this right now” if they are not. Make a spending plan and watch your coffers grow!
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>[http://www.comlev.com] Team Blog: http://www.turnkeyinternetbusiness.blogspot.com
Article Source: http://EzineArticles.com/?expert=Daegan_Smith
Unfortunately, people seem to associate ‘making more money’ with wealth. A person making $12,000 dollars a month seems to be wealthier than one who makes $10,000 a month. And why not? This person has a $2000 advantage over the latter! Isn’t he sure to be deemed wealthier?
The answer is no. A person might be making a lot more money than others, but that doesn’t mean he or she is wealthy. What? Unbelievable? Stay tuned for the answers as to why!
What is Wealth?
Wealth pertains to money and property. Being wealthy means you have an abundance of objects of value. These things may be houses, land, bank accounts, cash, jewelry, and other valuable objects.
When people think of wealth they usually think of stockpiles of gold and silver and the ability to waste money without remorse because they have so much of an abundance of it, it doesn’t matter.
This could not be more wrong. This is not the proper definition of wealth.
The keyword in the meaning of wealth is the word abundance. Abundance means you have more than enough. And yes, of course, this is what we all want to achieve. But unlike what most people desire, it does not mean you can spend without remorse.
Back to the Question
You might still be stumped as to why the man earning $12,000 might not be as wealthy as the man who earns $10,000. Here’s why:
Since wealth is the abundance of objects of value. The more objects of value you have, the wealthier you are right? Now the question is, does a bigger paycheck guarantee more wealth?
The answer is no.
The man who makes $12,000 may take home a bigger paycheck. But what if he spends more than that amount per month? Would he be able to create that abundance he so sorely seeks? And the man who makes $10,000 per month, what if he only spends $5,000 of that per month, would he have surplus at months end?
That is the secret of wealth: Never spend beyond your means. Save, save and save. Remember the old adage? – A penny saved is a penny earned? That has rung true even from the earliest days. Everyone can become wealthy, if they would stick to this single most important idea.
The problem with most people is that money is power. And the more money they have, the more inclined they are to throw it away. If this is how you are thinking, stop! Check back with the previous paragraph and reflect anew. Always remember that thought because without a proper spending plan, there can be no wealth.
How Do I Do That?
Always have a spending plan. Take note of expected income and tally this against prospective expenditures. How much is the gap. If there is no gap or if the expenditures exceed the income, you are in deep trouble. You will want to rearrange your spending patterns if this is the case.
There is no shame in tightening the belt. If your goals include the future, you must prepare for it today.
Remember that the larger the difference between the income and the expenditure, the larger the wealth that can be generated. This is the secret of wealth.
A Wealthier You
That was simple wasn’t it? If it was that simple, why doesn’t everybody do it? The answer is: because it takes a great deal of patience and self-control to live within your means.
Most people are victims of their spending desires. That difference between wealthy people and those who are not is not the difference in their bank accounts but the difference in their attitudes towards spending. If you can hold today for a better tomorrow, wealth is on its way!
So plan your future today! Spend within your means! Choose those that are important and tell yourself, “I don’t really need this right now” if they are not. Make a spending plan and watch your coffers grow!
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>[http://www.comlev.com] Team Blog: http://www.turnkeyinternetbusiness.blogspot.com
Article Source: http://EzineArticles.com/?expert=Daegan_Smith
Wednesday 3 February 2010
50 Ways to Get Out of Debt
1. Realize that you are in debt.
2. Eat out less. Cooking at home can save a tremendous amount of money.
3. Pass the Starbucks. Brew your own coffee in the mornings. This can save you anywhere from $30 and up each month and even more if you like the "foo-foo" drinks that cost $5 each!
4. Pay all of your bills. Don't neglect your bills. It will come back to haunt you just like Michael Meyers does in Halloween!
5. Pay all of your bills on time. Just one late bill payment can dig you deeper and hurt your credit.
6. Create a budget that works for you. Not everyone should have the same budget. Sit down and write out your monthly expenses and monthly take-home income. Tailor a budget that works well for you and your financial situation.
7. Get everyone involved including family members. The more support, the more likely you will stay on track.
8. Don't dig the whole deeper. Don't charge things that you could pay cash for and don't take loans for non-essential items.
9. Pay more than the minimum balance. Even if it's $10 extra, this can greatly reduce the time it takes to pay off a bill or loan.
10. Prioritize your debts. Pay off high-interest debt first and work your way down to the low-interest debts you have.
11. Trade in your high interest credit cards for lower rates. You can start your research with the current bank you use for your checking account.
12. Call your lender and ask for a lower rate on your credit card. You don't know unless you try. Often, all it takes is a quick phone call to lower your interest rate with a loan or credit card provider.
13. Use your savings to pay off high-interest debt. Why pay 22% interest when you have money sitting in your savings. Your savings account is probably not getting a 22% return to make you break even.
14. Get a part-time job. Extra cash never hurts. If you have some spare time, find a second job and use the money you make from the second job to pay off high-interest debt first. This can dramatically decrease the time it takes to pay down your debt.
15. Ask your employer if they have extra work for extra money.
16. Look for sales when shopping. Look through the local ads before going grocery shopping or back to school shopping. There are always sales.
17. Find free activities to keep yourself occupied. Parks and museums are just a few ideas that are usually free. Do a google search for free activities in your area.
18. Negotiate. Almost anything these days can be negotiated whether it's purchasing a new vehicle or tickets to a sporting event. Haggle like a pro!
19. Rent a movie instead of going to the theater. $3 rental movies compared to the rising prices of going to a movie theater and paying anywhere from $5-$10 per ticket.
20. Get direct deposit. This can often save in bank fees plus you save a trip to the bank which will in turn save on gas!
21. Transfer high interest credit card balances to a card with lower rates. If you have a credit card with a low rate, transfer your high rate credit cards to the lower cards.
22. Instead of investing your money, pay down your debt first. Why get a 6% return on an investment when you have to pay a 22% credit card rate. You are losing money, not gaining.
23. Check your credit score for inaccuracies. Many times, credit reports have errors. Check your report and if you see any errors, fix immediately to help raise your credit score which is used when applying for credit. The higher your credit score, the lower interest rates you will get and the more money you can save.
24. Don't live over your means. Don't live like a rockstar if you don't have Bon Jovi's salary! Simple as that.
25. Read.....learn all you can about debt and becoming debt free. Education is a key factor in reducing debt and living a financially healthy life.
26. Don't assume bankruptcy is your only option. Weigh out all of your options before filing for bankruptcy. Often, there are better solutions.
27. Use cash instead of that credit card.
28. Start a side business. Do you have a skill that is unused? Use it to make a little money. Can you knit? Knit blankets and sell them to local vendors. Can you build websites? Create websites for small to medium size businesses for extra income.
29. Use coupons. Clip coupons from the Sunday paper.
30. Go to a state school or community college. Private schools are expensive. You can often get an equal education from a state school while paying only a fraction of the private school tuition.
31. Get basic cable. Who needs all of those worthless channels that play the same old movies everynight? How many times can one watch Mrs. Doubtfire!!!
32. Just use a cell phone. Do you really need your landline? Get rid of it to save $30-$40 a month.
33. Make enough food for lunch leftovers. Leftovers will save you from having to go out to lunch and spend $5-8 a day. Add that number up over the year.
34. When you do eat out, find a restuarant that has 1/2 price night. 1/2 price drinks, entrees or appetizers are common at many restuarants.
35. You don't really need that Porshe 911. Get the Camry. It will last a long time!
36. Don't get an SUV or a gas hog. With gas prices soaring, look into hybrid cars and cars that get great gas mileage.
37. Find a cheaper place to live. If you live in NYC, Boston, Chicago or Los Angeles, consider relocating to a cheaper location. I did and it makes a huge difference.
38. Make goals. Let me rephrase. Make goals and stick to them. It's easy to make a goal, the tough part is actually achieving it. If you do achive your goals, it will make you push harder to achieve the next round of goals that you create.
39. Shop at CostCo. Buy bulk.
40. Exercise...it will keep your stress level down and also keep your body healthy so you can stay out of the hospital and doctor's office.
41. Reward yourself. No accomplishment should be unawarded. If you achieve a goal, treat yourself to dinner or a ballgame.
42. Skip vacation this year or take a shorter trip. Vacations can be expensive. Use the money to pay off high-interest debt. When your debt is paid down, treat yourself to that tropical paradise.
43. Don't buy the book...get a library card. How often do you re-read a book? Check it out at the library, read it, return it and get a new book. Books are great, but they are better dust collectors that purchases.
44. Walk to work. If you live in a big city and are close to work, walk. Good exercise and saves on gas.
45. Carpool. Split the cost of the commute with people you work with or close to you.
46. Eat more vegetables. Go to a local farmer's market and stock up on veges. This can be a cheap source of nutrition for your family.
47. Buy used. Often you can find used products that are still in mint condition. Shop around before purchasing that new Bose Home Theater!
48. Sell unused items on eBay or Amazon for extra money.
49. Periodically, adjust your budget and financial goals to fit your current situation.
50. Keep educating yourself.
You don't have to give up everything. If you do only a few of the debt reduction tips
above, you can help your financial situation out tremendously. It's all about creating good financial habits and sticking to them.
Visit our site, http://www.TopLoanOffers.com for financial related products and information or [http://www.whatsdebt.com] to learn about living a debt free life.
Article Source: http://EzineArticles.com/?expert=Mike_McGrath
2. Eat out less. Cooking at home can save a tremendous amount of money.
3. Pass the Starbucks. Brew your own coffee in the mornings. This can save you anywhere from $30 and up each month and even more if you like the "foo-foo" drinks that cost $5 each!
4. Pay all of your bills. Don't neglect your bills. It will come back to haunt you just like Michael Meyers does in Halloween!
5. Pay all of your bills on time. Just one late bill payment can dig you deeper and hurt your credit.
6. Create a budget that works for you. Not everyone should have the same budget. Sit down and write out your monthly expenses and monthly take-home income. Tailor a budget that works well for you and your financial situation.
7. Get everyone involved including family members. The more support, the more likely you will stay on track.
8. Don't dig the whole deeper. Don't charge things that you could pay cash for and don't take loans for non-essential items.
9. Pay more than the minimum balance. Even if it's $10 extra, this can greatly reduce the time it takes to pay off a bill or loan.
10. Prioritize your debts. Pay off high-interest debt first and work your way down to the low-interest debts you have.
11. Trade in your high interest credit cards for lower rates. You can start your research with the current bank you use for your checking account.
12. Call your lender and ask for a lower rate on your credit card. You don't know unless you try. Often, all it takes is a quick phone call to lower your interest rate with a loan or credit card provider.
13. Use your savings to pay off high-interest debt. Why pay 22% interest when you have money sitting in your savings. Your savings account is probably not getting a 22% return to make you break even.
14. Get a part-time job. Extra cash never hurts. If you have some spare time, find a second job and use the money you make from the second job to pay off high-interest debt first. This can dramatically decrease the time it takes to pay down your debt.
15. Ask your employer if they have extra work for extra money.
16. Look for sales when shopping. Look through the local ads before going grocery shopping or back to school shopping. There are always sales.
17. Find free activities to keep yourself occupied. Parks and museums are just a few ideas that are usually free. Do a google search for free activities in your area.
18. Negotiate. Almost anything these days can be negotiated whether it's purchasing a new vehicle or tickets to a sporting event. Haggle like a pro!
19. Rent a movie instead of going to the theater. $3 rental movies compared to the rising prices of going to a movie theater and paying anywhere from $5-$10 per ticket.
20. Get direct deposit. This can often save in bank fees plus you save a trip to the bank which will in turn save on gas!
21. Transfer high interest credit card balances to a card with lower rates. If you have a credit card with a low rate, transfer your high rate credit cards to the lower cards.
22. Instead of investing your money, pay down your debt first. Why get a 6% return on an investment when you have to pay a 22% credit card rate. You are losing money, not gaining.
23. Check your credit score for inaccuracies. Many times, credit reports have errors. Check your report and if you see any errors, fix immediately to help raise your credit score which is used when applying for credit. The higher your credit score, the lower interest rates you will get and the more money you can save.
24. Don't live over your means. Don't live like a rockstar if you don't have Bon Jovi's salary! Simple as that.
25. Read.....learn all you can about debt and becoming debt free. Education is a key factor in reducing debt and living a financially healthy life.
26. Don't assume bankruptcy is your only option. Weigh out all of your options before filing for bankruptcy. Often, there are better solutions.
27. Use cash instead of that credit card.
28. Start a side business. Do you have a skill that is unused? Use it to make a little money. Can you knit? Knit blankets and sell them to local vendors. Can you build websites? Create websites for small to medium size businesses for extra income.
29. Use coupons. Clip coupons from the Sunday paper.
30. Go to a state school or community college. Private schools are expensive. You can often get an equal education from a state school while paying only a fraction of the private school tuition.
31. Get basic cable. Who needs all of those worthless channels that play the same old movies everynight? How many times can one watch Mrs. Doubtfire!!!
32. Just use a cell phone. Do you really need your landline? Get rid of it to save $30-$40 a month.
33. Make enough food for lunch leftovers. Leftovers will save you from having to go out to lunch and spend $5-8 a day. Add that number up over the year.
34. When you do eat out, find a restuarant that has 1/2 price night. 1/2 price drinks, entrees or appetizers are common at many restuarants.
35. You don't really need that Porshe 911. Get the Camry. It will last a long time!
36. Don't get an SUV or a gas hog. With gas prices soaring, look into hybrid cars and cars that get great gas mileage.
37. Find a cheaper place to live. If you live in NYC, Boston, Chicago or Los Angeles, consider relocating to a cheaper location. I did and it makes a huge difference.
38. Make goals. Let me rephrase. Make goals and stick to them. It's easy to make a goal, the tough part is actually achieving it. If you do achive your goals, it will make you push harder to achieve the next round of goals that you create.
39. Shop at CostCo. Buy bulk.
40. Exercise...it will keep your stress level down and also keep your body healthy so you can stay out of the hospital and doctor's office.
41. Reward yourself. No accomplishment should be unawarded. If you achieve a goal, treat yourself to dinner or a ballgame.
42. Skip vacation this year or take a shorter trip. Vacations can be expensive. Use the money to pay off high-interest debt. When your debt is paid down, treat yourself to that tropical paradise.
43. Don't buy the book...get a library card. How often do you re-read a book? Check it out at the library, read it, return it and get a new book. Books are great, but they are better dust collectors that purchases.
44. Walk to work. If you live in a big city and are close to work, walk. Good exercise and saves on gas.
45. Carpool. Split the cost of the commute with people you work with or close to you.
46. Eat more vegetables. Go to a local farmer's market and stock up on veges. This can be a cheap source of nutrition for your family.
47. Buy used. Often you can find used products that are still in mint condition. Shop around before purchasing that new Bose Home Theater!
48. Sell unused items on eBay or Amazon for extra money.
49. Periodically, adjust your budget and financial goals to fit your current situation.
50. Keep educating yourself.
You don't have to give up everything. If you do only a few of the debt reduction tips
above, you can help your financial situation out tremendously. It's all about creating good financial habits and sticking to them.
Visit our site, http://www.TopLoanOffers.com for financial related products and information or [http://www.whatsdebt.com] to learn about living a debt free life.
Article Source: http://EzineArticles.com/?expert=Mike_McGrath
Sunday 31 January 2010
How to Identify a Legitimate Internet Business Program
It would be unjustified for people to tell you how to make money online and then fail to advice an internet newbie how to avoid being swindled. The internet is rich with legitimate online business programs, but how do you tell that a business program is legit or not.
There is a common phrase that states, "When the deal is too good to be true, think twice," this is because chances are that, it could be false. Last year we witnessed as thousands of Americans lost their investment when a pyramid scheme collapsed.
People who start these pyramid schemes are very bright individuals, they take advantage of people's thirst to make easy money and come up with ponzi schemes that promise huge returns from very little investments. To gain the confidence of innocent online business people, these ponzi schemes create a website that has an ambience of professionalism.
Ponzi schemes usually ride on collecting money from new depositors and then distributing the same to already existing investors. The risk is that eventually these schemes reach a saturation point and when there are no new investors then it becomes impossible to pay their investors.
You will also notice that most of these ponzi schemes do not deal in any product. Therefore, be wary of such online business programs. Some are know to tell their investors that they are investing their money on off shore business accounts or securities portfolios which most of the time is a lie.
Next time you decide to invest in any online business program, research and find out if it is legitimate. Visit sites like ripoff.com to see whether the internet business you are enrolling in is fraudulent or not. My blog also contains tried and tested internet business programs, click the link appearing below.
Belsheba shares her wealth of knowledge on Online Business Opportunities. She is an Online Business Expert and her webpage is Rich in Content on Money Making Ideas and Home Business Strategies. Visit her informative and insightful website at: Money Making Secrets for Updated Internet Business Solutions.
There is a common phrase that states, "When the deal is too good to be true, think twice," this is because chances are that, it could be false. Last year we witnessed as thousands of Americans lost their investment when a pyramid scheme collapsed.
People who start these pyramid schemes are very bright individuals, they take advantage of people's thirst to make easy money and come up with ponzi schemes that promise huge returns from very little investments. To gain the confidence of innocent online business people, these ponzi schemes create a website that has an ambience of professionalism.
Ponzi schemes usually ride on collecting money from new depositors and then distributing the same to already existing investors. The risk is that eventually these schemes reach a saturation point and when there are no new investors then it becomes impossible to pay their investors.
You will also notice that most of these ponzi schemes do not deal in any product. Therefore, be wary of such online business programs. Some are know to tell their investors that they are investing their money on off shore business accounts or securities portfolios which most of the time is a lie.
Next time you decide to invest in any online business program, research and find out if it is legitimate. Visit sites like ripoff.com to see whether the internet business you are enrolling in is fraudulent or not. My blog also contains tried and tested internet business programs, click the link appearing below.
Belsheba shares her wealth of knowledge on Online Business Opportunities. She is an Online Business Expert and her webpage is Rich in Content on Money Making Ideas and Home Business Strategies. Visit her informative and insightful website at: Money Making Secrets for Updated Internet Business Solutions.
Friday 29 January 2010
The Tricks for Choosing Credit Card Offers
“Work hard, play better.”
It must have been a credit card user who coined that phrase because these remarkable plastics can definitely offer more than what their customers have worked for.
The very concept of credit cards is that it was tailor-made for the changing needs of working individuals everywhere.
No wonder why there are many credit card offers literally rummaging through one’s email, mailbox, over the phone, magazines, and other printed advertisements. It seems that the offers are, indeed, enticing because some statistical reports show that nearly 81% of the American households have at least one credit card.
However, with so many credit card offers nowadays, the question is, are all of these deal worth the bargain?
In reality, not all credit card offers are worthy of somebody’s risk. Choosing the best offer is not just a matter of choice but more on clever assessment based on the abilities of a smart consumer. Hence, it is important for every shopper to analyze every credit card offer being laid down before him or her.
How to do that? Here are some tricks that can do the work:
1. One’s personal preference should be considered based on his or her needs
Not all credit cards are created equal. Hence, not all credit card offers can work perfectly the same on one individual as it did on the other. This goes to show that some credit card offers may be useful to a particular person but not necessarily to the other one.
Therefore, when choosing which credit card can provide an individual the kind of benefits he or she wants, it is best to consider the personal needs of the person concerned.
2. Shop around and compare
A person will never know that one credit card company can offer better deals than the other if he or she will not try to look for other credit card companies. It is only through shopping and comparing credit cards that one may identify the best offers.
3. Read the fine print
The problem with most consumers is that they tend to neglect the fine print. They are so enticed by the remarkable offers that they have the propensity to neglect whatever is written on the fine print.
In turn, they never get to analyze whether or not the credit card offers are good enough for them.
4. Conduct researches
An individual will never know which offer is the best as long as he or she does not have any background on credit cards.
For instance, an offer on “low introductory rate” may seem tempting for a credit card newbie. However, an experienced person knows that this kind of offer is only good while it last; hence, after the introductory period is over, the benefits are also terminated.
5. Capacity to pay credit should be considered
Credit card offers are usually made by credit card companies in general. This means that they do not know the individual capacity of every consumer to pay credit.
Hence, it would be better if the person applying for a credit card should try to assess first if he or she can afford to pay the credit.
Credit card offers can be beneficial. However, one should keep in mind that most of these offers are used as teasers by the credit card companies to lure consumers into getting a card.
Therefore, it is extremely important for every consumer to meticulously scrutinize every offers made by the different credit card companies. In this way, probable credit problems can be avoided.
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards. Get the information you are seeking now by visiting Credit Card Offers
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
It must have been a credit card user who coined that phrase because these remarkable plastics can definitely offer more than what their customers have worked for.
The very concept of credit cards is that it was tailor-made for the changing needs of working individuals everywhere.
No wonder why there are many credit card offers literally rummaging through one’s email, mailbox, over the phone, magazines, and other printed advertisements. It seems that the offers are, indeed, enticing because some statistical reports show that nearly 81% of the American households have at least one credit card.
However, with so many credit card offers nowadays, the question is, are all of these deal worth the bargain?
In reality, not all credit card offers are worthy of somebody’s risk. Choosing the best offer is not just a matter of choice but more on clever assessment based on the abilities of a smart consumer. Hence, it is important for every shopper to analyze every credit card offer being laid down before him or her.
How to do that? Here are some tricks that can do the work:
1. One’s personal preference should be considered based on his or her needs
Not all credit cards are created equal. Hence, not all credit card offers can work perfectly the same on one individual as it did on the other. This goes to show that some credit card offers may be useful to a particular person but not necessarily to the other one.
Therefore, when choosing which credit card can provide an individual the kind of benefits he or she wants, it is best to consider the personal needs of the person concerned.
2. Shop around and compare
A person will never know that one credit card company can offer better deals than the other if he or she will not try to look for other credit card companies. It is only through shopping and comparing credit cards that one may identify the best offers.
3. Read the fine print
The problem with most consumers is that they tend to neglect the fine print. They are so enticed by the remarkable offers that they have the propensity to neglect whatever is written on the fine print.
In turn, they never get to analyze whether or not the credit card offers are good enough for them.
4. Conduct researches
An individual will never know which offer is the best as long as he or she does not have any background on credit cards.
For instance, an offer on “low introductory rate” may seem tempting for a credit card newbie. However, an experienced person knows that this kind of offer is only good while it last; hence, after the introductory period is over, the benefits are also terminated.
5. Capacity to pay credit should be considered
Credit card offers are usually made by credit card companies in general. This means that they do not know the individual capacity of every consumer to pay credit.
Hence, it would be better if the person applying for a credit card should try to assess first if he or she can afford to pay the credit.
Credit card offers can be beneficial. However, one should keep in mind that most of these offers are used as teasers by the credit card companies to lure consumers into getting a card.
Therefore, it is extremely important for every consumer to meticulously scrutinize every offers made by the different credit card companies. In this way, probable credit problems can be avoided.
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards. Get the information you are seeking now by visiting Credit Card Offers
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
Wednesday 27 January 2010
Escape the Rat Race - 3 Key Benefits of Your Online Business
It must be the aim of everyone to escape the daily rat race and live a life where you have total control over what you do and when you do it. An online business offers the fastest route to leave behind the daily grind with minimum fuss and cost but with maximum potential to change your life.
If you get it right, and by that I mean if you choose the right business, the right product and have a good mentor then an online business will let you work your own hours, decide on how much money you make and give you one of the most pleasant sensations that you could ever experience; peace of mind.
1. Work Your Own Timetable. You get to build your working life around your personal life and not the other way around. Your business on the Internet won't start all by itself though. You're going to have to breathe life into it. And that means hard work. You're going to have to put in some effort and commitment at the outset to set up the systems and processes that make your business function. This hard work in the early days pays huge dividends later on because once it gets going, many aspects of your business can be automated and you can decide the hours that you want to work.
2. Write Your Own Cheques. If you set it up correctly, your business will start to produce results and the results will be a direct consequence of the actions you have taken and the amount of work that you've put in. The more action that you take the more results will be produced. Results means sales and sales mean money. Massive action for massive money. If you need more money, put in more activity and action.
3. Sleep Easy. Money is not an end in itself. It's a cliche but it's true. Money by itself does nothing, makes nothing, is nothing. But money put to use buys certain things and, in my view, the most valuable is financial peace of mind. Peace of mind is the absolute absence of worry, stress and fear. We can't eliminate ALL worry and stress because we can't control sickness, wars, famine, crime or natural disasters, but once your online business starts to produce bags of cash, you can at least buy financial peace of mind by paying off debts and monetary commitments. You will definitely sleep better knowing your bills are paid and no-one is chasing you for money.
A business on the Internet is fast, cost effective, easy to set up and can start producing big results faster than any conventional real world business. A successful home based business could be your route to get out of the rat race too, spend more time with your loved ones and have plenty of free time to do the things you want to do.
Discover how I escaped the rat race and achieved financial peace of mind HERE.
This article was written by Sal Abdin of YourNetRich. You are invited to his blog which provides detailed information about his business mentoring, teaching and coaching: NetBizMaster.
Article Source: http://EzineArticles.com/?expert=Sal_Abdin
If you get it right, and by that I mean if you choose the right business, the right product and have a good mentor then an online business will let you work your own hours, decide on how much money you make and give you one of the most pleasant sensations that you could ever experience; peace of mind.
1. Work Your Own Timetable. You get to build your working life around your personal life and not the other way around. Your business on the Internet won't start all by itself though. You're going to have to breathe life into it. And that means hard work. You're going to have to put in some effort and commitment at the outset to set up the systems and processes that make your business function. This hard work in the early days pays huge dividends later on because once it gets going, many aspects of your business can be automated and you can decide the hours that you want to work.
2. Write Your Own Cheques. If you set it up correctly, your business will start to produce results and the results will be a direct consequence of the actions you have taken and the amount of work that you've put in. The more action that you take the more results will be produced. Results means sales and sales mean money. Massive action for massive money. If you need more money, put in more activity and action.
3. Sleep Easy. Money is not an end in itself. It's a cliche but it's true. Money by itself does nothing, makes nothing, is nothing. But money put to use buys certain things and, in my view, the most valuable is financial peace of mind. Peace of mind is the absolute absence of worry, stress and fear. We can't eliminate ALL worry and stress because we can't control sickness, wars, famine, crime or natural disasters, but once your online business starts to produce bags of cash, you can at least buy financial peace of mind by paying off debts and monetary commitments. You will definitely sleep better knowing your bills are paid and no-one is chasing you for money.
A business on the Internet is fast, cost effective, easy to set up and can start producing big results faster than any conventional real world business. A successful home based business could be your route to get out of the rat race too, spend more time with your loved ones and have plenty of free time to do the things you want to do.
Discover how I escaped the rat race and achieved financial peace of mind HERE.
This article was written by Sal Abdin of YourNetRich. You are invited to his blog which provides detailed information about his business mentoring, teaching and coaching: NetBizMaster.
Article Source: http://EzineArticles.com/?expert=Sal_Abdin
Monday 25 January 2010
Top Tips to Save Money on Car Insurance
Everyone loves to save money whenever possible, however usually unless we are very lucky savings do not often come our way, unless we go out of our way to look for them. When it comes to insurance for your car, it is possible to save money on car insurance by shopping around and making comparisons. Wouldn't it be great if you could save hundreds of pounds on car cover? Well it is possible with some providers. While it is possible to shop around and compare the cost of insurance for your car there are some things you may be able to do yourself to help keep the premiums down as much as possible. Here are some tips to help you save money on car insurance.
One of the things that insurance providers take into account when you apply for car insurance is the risk of theft. Car theft is a huge problem all over the country and if you ensure that you have installed adequate security on your vehicle, your car is seen to be less of a risk. What types of security measures can you install? Well you might want to pick out a good quality alarm system for your car, fitting an immobiliser can help you to shave a little off the cost of your car insurance also. You might also want to consider a steering wheel lock and a tracking device in the event your car is stolen can help it be recovered. Any of these suggestions might help you to save money on car insurance, which allows you to recoup the cost of the equipment.
The younger driver usually has to pay more in insurance costs than the older driver. If you are a younger car driver, you may want to try a specialist provider who tries to give the younger driver a fair chance at obtaining competitive premiums for car insurance. As a younger driver, you might take advanced driving lessons to prove you are a responsible driver and choose a moderate vehicle as opposed to a fast, large engine sports car. The more powerful the car the more insurance costs and for the younger driver a sports car might be good on the image but not on the pocket.
There are also special deals on insurance for women as some insurance providers now offer tailored insurance aimed with women in mind. Despite the many jokes that fly around insurance companies have said that women tend to make fewer serious claims than men. They also drive smaller cars, which again helps them to keep down the insurance premiums. Simply by shopping around anyone regardless of gender or age may be able to save money on car insurance.
Copywriting 4 U is a professional copywriting service for all of your copywriting needs. We have over 7 years of copywriting experience behind us and can provide SEO content and articles on any subject, tailored to meet your needs.. You can contact us at Copywriting 4 U for a competitive quote today
Article Source: http://EzineArticles.com/?expert=Allison_B_Blackburn
One of the things that insurance providers take into account when you apply for car insurance is the risk of theft. Car theft is a huge problem all over the country and if you ensure that you have installed adequate security on your vehicle, your car is seen to be less of a risk. What types of security measures can you install? Well you might want to pick out a good quality alarm system for your car, fitting an immobiliser can help you to shave a little off the cost of your car insurance also. You might also want to consider a steering wheel lock and a tracking device in the event your car is stolen can help it be recovered. Any of these suggestions might help you to save money on car insurance, which allows you to recoup the cost of the equipment.
The younger driver usually has to pay more in insurance costs than the older driver. If you are a younger car driver, you may want to try a specialist provider who tries to give the younger driver a fair chance at obtaining competitive premiums for car insurance. As a younger driver, you might take advanced driving lessons to prove you are a responsible driver and choose a moderate vehicle as opposed to a fast, large engine sports car. The more powerful the car the more insurance costs and for the younger driver a sports car might be good on the image but not on the pocket.
There are also special deals on insurance for women as some insurance providers now offer tailored insurance aimed with women in mind. Despite the many jokes that fly around insurance companies have said that women tend to make fewer serious claims than men. They also drive smaller cars, which again helps them to keep down the insurance premiums. Simply by shopping around anyone regardless of gender or age may be able to save money on car insurance.
Copywriting 4 U is a professional copywriting service for all of your copywriting needs. We have over 7 years of copywriting experience behind us and can provide SEO content and articles on any subject, tailored to meet your needs.. You can contact us at Copywriting 4 U for a competitive quote today
Article Source: http://EzineArticles.com/?expert=Allison_B_Blackburn
Tuesday 19 January 2010
Books are selling on Amazon!!
I have posted this month about selling books on Amazon and wanted to just re-iterate how easy this is to do as a second income.
You sign up to Amazon as a seller (which takes 2 minutes!)
You enter the ISBN number of the book you want to sell.
You enter the condition and price and click OK.
I have now sold I think 6 books, and made around £60 profit - about £10 each!
Remember:
Stay away from best sellers. There are millions of copies of these around and you won't sell them for much. Cookbooks are also a no-no!
Look for niche books - university books, things like that, they sell really well. Also some art books. I've recently bought some art books which I'm looking to make over £100 on. It doesn't matter how small the niche is, someone out there will buy it eventually.
Sometimes it takes a few months to sell a book but from experience I reckon you will sell books within six months. It's so easy to do it's a no brainer for me! Just do it! Next time you are out in town pop into the charity shops and take a look around, there are tons of really cheap books to buy that will sell for £10-20!
You sign up to Amazon as a seller (which takes 2 minutes!)
You enter the ISBN number of the book you want to sell.
You enter the condition and price and click OK.
I have now sold I think 6 books, and made around £60 profit - about £10 each!
Remember:
Stay away from best sellers. There are millions of copies of these around and you won't sell them for much. Cookbooks are also a no-no!
Look for niche books - university books, things like that, they sell really well. Also some art books. I've recently bought some art books which I'm looking to make over £100 on. It doesn't matter how small the niche is, someone out there will buy it eventually.
Sometimes it takes a few months to sell a book but from experience I reckon you will sell books within six months. It's so easy to do it's a no brainer for me! Just do it! Next time you are out in town pop into the charity shops and take a look around, there are tons of really cheap books to buy that will sell for £10-20!
Monday 18 January 2010
How to Escape the 9 to 5 "Rat Race" - 3 Simple Steps to Becoming Your Own Boss
Decided that you have had enough of the 9 to 5 "Rat Race", do you want to become your own boss and jump off the treadmill of life? If you are fed up of wishing your life away working for your weekends, counting down days to your next holiday, basically working to be retired the I am sure you will enjoy my 3 simple steps to becoming your own boss. I also recommend personal development to build your individual strength. ~
Step 1:
Make a commitment to yourself and confirm your personal "Whys" for wanting to escape the 9 to 5 world of working for someone else. Why do you feel this way? What gave you this desire? On a scale of 1-10 how important is this change to you?
Write it out, journalize your reasoning behind this decision. You will find by writing down how you feel your commitment to yourself will become stronger. This way you can also go back through your journal when ever you need some motivation. Once you are clear on your personal "Whys" start to investigate what business opportunities are available to you, what fits your criteria? As we approach 2010 personal development home based business opportunities are growing stronger in force and many people are seeing a huge amount of success in this area. From personal experience I feel the mix of personal development and owning your own business is also a great way to keep your motivation high and the positive vibes flowing.
Step 2:
Avoid procrastination. Start today! Don't delay! Go for it and trust your vibes, what is your heart telling you? Sometimes our head can take over when it comes to life changing decisions, from my own experience I know that mine did when I first started out on my new path in life with my personal development home business. I was grateful to have chose an opportunity which was so dear to my heart which also gave me personal strength, motivation and an amazing community of like minded people walking the journey together. I too had the added benefit of a very comprehensive training and support schedule to ensure I had everything I needed to become a success - this point is key!
Now I said go for it and trust your vibes but please do make sure that your chosen opportunity feels "right" for you. Consider my points above with regards to support and training but also be open to synchronicities which are now happening in your life, do you find yourself coming across the same opportunity again and again? Do things keep popping into your daily routine which take you back to the opportunity you are looking into? This can also be a sign that you are on the right track.
Step 3:
Start small, take baby steps forward - trust me you will feel better once you have a "light at the end of the tunnel". Your 9 to 5 job will seem much more manageable when you have your own venture on the side. You can then work towards covering your monthly earning's and outgoings needed through your part time home business prior to escaping the 9 to 5 job. This way you also have the faith in yourself and know that you can make your home business opportunity work for you. You may have to take a step outside your comfort zone but this will be worthwhile when you are able to make a huge leap forward in life.
Take a moment to imagine how happy you will feel once you have quit the 9 to 5 "Rat Race" once you are free of the world of working for someone else. When you can be your own boss! When this feeling kicks in you will be well on your way to total personal and financial freedom. When you are living YOUR dream and not someone else's, life gets a whole lot better. Trust me, its true!
Liz Green
CEO and Founder of Live Your Dream Mentoring
http://www.liveyourdreammentoring.com
Article Source: http://EzineArticles.com/?expert=Liz_Green
Step 1:
Make a commitment to yourself and confirm your personal "Whys" for wanting to escape the 9 to 5 world of working for someone else. Why do you feel this way? What gave you this desire? On a scale of 1-10 how important is this change to you?
Write it out, journalize your reasoning behind this decision. You will find by writing down how you feel your commitment to yourself will become stronger. This way you can also go back through your journal when ever you need some motivation. Once you are clear on your personal "Whys" start to investigate what business opportunities are available to you, what fits your criteria? As we approach 2010 personal development home based business opportunities are growing stronger in force and many people are seeing a huge amount of success in this area. From personal experience I feel the mix of personal development and owning your own business is also a great way to keep your motivation high and the positive vibes flowing.
Step 2:
Avoid procrastination. Start today! Don't delay! Go for it and trust your vibes, what is your heart telling you? Sometimes our head can take over when it comes to life changing decisions, from my own experience I know that mine did when I first started out on my new path in life with my personal development home business. I was grateful to have chose an opportunity which was so dear to my heart which also gave me personal strength, motivation and an amazing community of like minded people walking the journey together. I too had the added benefit of a very comprehensive training and support schedule to ensure I had everything I needed to become a success - this point is key!
Now I said go for it and trust your vibes but please do make sure that your chosen opportunity feels "right" for you. Consider my points above with regards to support and training but also be open to synchronicities which are now happening in your life, do you find yourself coming across the same opportunity again and again? Do things keep popping into your daily routine which take you back to the opportunity you are looking into? This can also be a sign that you are on the right track.
Step 3:
Start small, take baby steps forward - trust me you will feel better once you have a "light at the end of the tunnel". Your 9 to 5 job will seem much more manageable when you have your own venture on the side. You can then work towards covering your monthly earning's and outgoings needed through your part time home business prior to escaping the 9 to 5 job. This way you also have the faith in yourself and know that you can make your home business opportunity work for you. You may have to take a step outside your comfort zone but this will be worthwhile when you are able to make a huge leap forward in life.
Take a moment to imagine how happy you will feel once you have quit the 9 to 5 "Rat Race" once you are free of the world of working for someone else. When you can be your own boss! When this feeling kicks in you will be well on your way to total personal and financial freedom. When you are living YOUR dream and not someone else's, life gets a whole lot better. Trust me, its true!
Liz Green
CEO and Founder of Live Your Dream Mentoring
http://www.liveyourdreammentoring.com
Article Source: http://EzineArticles.com/?expert=Liz_Green
Sunday 17 January 2010
Get Out of Debt - Strategies For Increasing Cash Flow and Reducing Debt
The challenge of getting out of debt can be even more daunting during recessionary times when it is difficult to increase your income. But a combination of creating some new revenue streams for yourself and your family, and cutting expenses, may do the trick to help you get started on the road to get out of debt. Below are several suggestions that can get your brainstorming on how you can increase your cash flow and reduce your debt.
Lease your home and move in with friends/relatives and share expenses. This assumes you live in a neighborhood where there are potential renters, and you have friends or relatives who are keen on weathering the recession by reducing expenses. With all the properties sitting vacant these days, finding renters is not always easy. However, this strategy has the advantage of allowing you to live with people you know and hopefully can trust.
Start a part-time business doing home services in your neighborhood. Services you might consider offering would include: pet sitting for people who travel frequently, running errands for the elderly, or watching neighbors' homes while they are on vacation. This type of venture has a lot of flexibility; you can decide how many hours to devote to the business, and the clients are close by so there is minimal travel time.
Rely on public transportation more. This can help you lower your auto expenses--gas, repairs, tire wear, and even insurance if your cost is based on the number of miles you drive. Your vehicle will have a longer life and thus you will not need to replace it as soon. If this seems too much of a hassle, you could try using public transportation just a few days a week. It will still have a positive financial impact.
Reduce non-essential services you are paying for, such as premium cable. Maybe you pay $20 per month for movie channels. Many people don't know that public libraries have movies you can sign out for free, including the latest new releases.
Lower utility usage. Your utility provider can show you lots of strategies to lower your heating and cooling costs. All of us waste electricity to some extent. Most of us can reduce cell phone costs by changing plans or making more calls from the land lines at home.
Substitute lower cost entertainment for higher cost. Maybe you go to baseball, football or basketball games. Add up the total cost of these experiences: tickets, travel, food, beverages, souvenirs-and you will see a day at the ballpark can be expensive. Other forms of entertainment, movies, museum visits, and cultural fairs can provide fun new experiences for your family with less impact on your budget.
Learn how to cook and save money on eating out. It can be great fun to discover you have previously unseen culinary talents, and this applies to both men and women. Online resources such as http://www.foodnetwork.com/ have thousands of recipes with step-by-step instructions that even the most inexperienced chef can master.
More tips and hope to get out of debt Brian Hill is the author of several nonfiction books, the founder of Profit Dynamics Inc., a management consulting company focusing on business planning and venture capital, and a screenwriter. Get your free credit report and credit scores at Debt Management
Lease your home and move in with friends/relatives and share expenses. This assumes you live in a neighborhood where there are potential renters, and you have friends or relatives who are keen on weathering the recession by reducing expenses. With all the properties sitting vacant these days, finding renters is not always easy. However, this strategy has the advantage of allowing you to live with people you know and hopefully can trust.
Start a part-time business doing home services in your neighborhood. Services you might consider offering would include: pet sitting for people who travel frequently, running errands for the elderly, or watching neighbors' homes while they are on vacation. This type of venture has a lot of flexibility; you can decide how many hours to devote to the business, and the clients are close by so there is minimal travel time.
Rely on public transportation more. This can help you lower your auto expenses--gas, repairs, tire wear, and even insurance if your cost is based on the number of miles you drive. Your vehicle will have a longer life and thus you will not need to replace it as soon. If this seems too much of a hassle, you could try using public transportation just a few days a week. It will still have a positive financial impact.
Reduce non-essential services you are paying for, such as premium cable. Maybe you pay $20 per month for movie channels. Many people don't know that public libraries have movies you can sign out for free, including the latest new releases.
Lower utility usage. Your utility provider can show you lots of strategies to lower your heating and cooling costs. All of us waste electricity to some extent. Most of us can reduce cell phone costs by changing plans or making more calls from the land lines at home.
Substitute lower cost entertainment for higher cost. Maybe you go to baseball, football or basketball games. Add up the total cost of these experiences: tickets, travel, food, beverages, souvenirs-and you will see a day at the ballpark can be expensive. Other forms of entertainment, movies, museum visits, and cultural fairs can provide fun new experiences for your family with less impact on your budget.
Learn how to cook and save money on eating out. It can be great fun to discover you have previously unseen culinary talents, and this applies to both men and women. Online resources such as http://www.foodnetwork.com/ have thousands of recipes with step-by-step instructions that even the most inexperienced chef can master.
More tips and hope to get out of debt Brian Hill is the author of several nonfiction books, the founder of Profit Dynamics Inc., a management consulting company focusing on business planning and venture capital, and a screenwriter. Get your free credit report and credit scores at Debt Management
Saturday 16 January 2010
What Books to Sell on Amazon
Earlier this week I talked about making more money from home by selling books on Amazon but one of the questions that people had was what sort of books to focus on - I've done a quick video to show you...
Friday 15 January 2010
Escape the Rat Race For Life - Organising a Professional Life at Home With a Defined Purpose
Starting a Home Business beyond the Rat Race is the Holy Grail for many whom have been punching time clocks and reluctantly tolerating co-workers, supervisors, work place politics, egos and incompetence in their former vocation.
Business Life From Home Is a Whole Lot Different!
Beginning a Work From Home Enterprise is normally a pretty exciting and unique experience for most newbies. The change of surroundings, products, people and cultural shifts are a "BUZZ" for a while, however this new found "FREEDOM" present some challenges and traps for those uninitiated.
It would be wise to establish some personal disciplines as you embark on PROFESSIONAL LIFE AT HOME. Yes you no longer need to commute to a workplace - now you just walk to your new work station and begin operations, but often it's not that easy!
- Resist the TRAPPINGS of other domestic activities at home
- Unusually at first your home is now your place of rest, recreation and WORK! - don't confuse these dynamics or you'll back to the RAT RACE before you know it!
- Be sure to PLAN your day and work through it just as you would if you leaving the home.
- Communicate your WORKPLACE PROTOCOLS to others at home so you can cooperatively blend professional and domestic responsibilities.
- Establish A DAILY MEHOD OF OPERATION - identify the business activities for each day, week and month.
- Establish a solid relationship with your Sponsor or others in the same or similar business dynamic and COMMUNICATE with them regularly.
- Recognise The FREEDOM of Working From Home and the ISOLATION of it - Ironically some people fail because they simply cannot perform efficiently in the absence of other people.
- Identify at what time your Professional activities conclude and re-enter your domestic existence. Many first time Home based entrepreneurs forget when to "TURN OFF" and compromise other parts of their life at home!
Goals, performance and productivity measurements are common place in most progressive organisations. These definitions set the performance direction and expectation for individuals and groups alike. Without these measurements there is no performance charter and little gets done. When little gets done, businesses quickly go broke!
Works from Home Entrepreneurs are encouraged to exercise the same disciplines. Establish a comprehensive Business Plan, Performance Resources and Performance Benchmarks.
Sure it can be a whole lot less formal than when you were back on the payroll - but without Disciplined Leadership, Planning, Resources and specific Performance goals, your new found freedom and home business enterprise could soon be on the slide!
Article Source: http://EzineArticles.com/?expert=Paul_Robson
Wednesday 13 January 2010
Escape the Rat Race by Earning a Second Income from Home
I’m sure you can see that starting a business is the best chance you have of escaping the rat race, unless you can hit a golf ball 300 yards or are a professional footballer.
One of the best ways to start a part time business is online. Your potential market can be MILLIONS of people, and the start up costs can be zero! One practical way I have made money online is selling books on Amazon. You can start easily by visiting this URL: http://www.amazon.co.uk/gp/seller/sell-your-stuff.html
The great thing about selling books on Amazon is that it’s so easy. You literally just type in the ISPN number, put in the condition and price you want to sell it at, and that’s it!!! I have recently started selling my old university books and so far have made about £40 – and I’ve only sold 3 books!! I have recently bought some books from eBay that I expect to make over £100 profit on. I’ll keep you updated with how this goes!
You can get quality books from so many places too. EBay, charity shops, car boot sales, etc, etc. If you are looking for a clearout go through your old books and stick these on too. The best books to sell are ones that didn’t have millions of copies printed in the first place. Old university books can be good earners, art books, educational books, etc. Avoid things like cooking books, bestsellers (fiction etc) as these won’t get you much and probably isn’t worth your time.
This is an easy, practical way to help you pay off debts or just earn some money you can later invest.
One of the best ways to start a part time business is online. Your potential market can be MILLIONS of people, and the start up costs can be zero! One practical way I have made money online is selling books on Amazon. You can start easily by visiting this URL: http://www.amazon.co.uk/gp/seller/sell-your-stuff.html
The great thing about selling books on Amazon is that it’s so easy. You literally just type in the ISPN number, put in the condition and price you want to sell it at, and that’s it!!! I have recently started selling my old university books and so far have made about £40 – and I’ve only sold 3 books!! I have recently bought some books from eBay that I expect to make over £100 profit on. I’ll keep you updated with how this goes!
You can get quality books from so many places too. EBay, charity shops, car boot sales, etc, etc. If you are looking for a clearout go through your old books and stick these on too. The best books to sell are ones that didn’t have millions of copies printed in the first place. Old university books can be good earners, art books, educational books, etc. Avoid things like cooking books, bestsellers (fiction etc) as these won’t get you much and probably isn’t worth your time.
This is an easy, practical way to help you pay off debts or just earn some money you can later invest.
Tuesday 12 January 2010
Escape the Rat Race by Owning Businesses
Check out the video in my previous post. It might drag on a bit but the lesson is important. As yourself now, are you carrying buckets of water or are you building a pipeline? Are you going out to work for money or are you building a money making system?
As you might have guessed, to get out the rat race you need to be building systems that bring money into your bank account. And the best money making systems in the world are… drum roll… businesses… Oh you probably knew that already. Look at the richest people in the world. They all are either incredible sportspeople or own businesses. Warren Buffet, the best investor that has ever lived owns many businesses. Businesses are the foundation of our civilisation. If you have a job the chances are you work for a business. But, when you work for a business you are working to make the owners of that business rich. Wouldn’t it be better to own a business and have other people work to make you rich? Of bloody course it would!!!
However, there are significant issues in starting your own business. First of all you need to come up with a business idea. Then you need to check out the competition and make sure that you can compete. Then you need to think about start up costs. And premises. And staff. Etc. Etc.
Despite all these hurdles that can get in the way, starting a business is the best chance of escaping the rat race, and you might be surprised at how easy it can be to start your own business.
Stay tuned for my next post on starting a part time business!
As you might have guessed, to get out the rat race you need to be building systems that bring money into your bank account. And the best money making systems in the world are… drum roll… businesses… Oh you probably knew that already. Look at the richest people in the world. They all are either incredible sportspeople or own businesses. Warren Buffet, the best investor that has ever lived owns many businesses. Businesses are the foundation of our civilisation. If you have a job the chances are you work for a business. But, when you work for a business you are working to make the owners of that business rich. Wouldn’t it be better to own a business and have other people work to make you rich? Of bloody course it would!!!
However, there are significant issues in starting your own business. First of all you need to come up with a business idea. Then you need to check out the competition and make sure that you can compete. Then you need to think about start up costs. And premises. And staff. Etc. Etc.
Despite all these hurdles that can get in the way, starting a business is the best chance of escaping the rat race, and you might be surprised at how easy it can be to start your own business.
Stay tuned for my next post on starting a part time business!
Monday 11 January 2010
Sunday 10 January 2010
Escape the Rat Race: Goal Setting Theory
If you’ve ever done any research on becoming financially free or escaping the rat race you will more than likely have heard that those who write down their goals on a sheet of paper are MUCH more likely to succeed. I can’t remember the exact figures off the top of my head but I think the chances of completing a goal if it’s written down increases by a factor of about 20 (or
something like that, I’m sure someone knows the actual stats).
What it means is, if you write your goal down, you are 20 times more likely to achieve it than someone who has the same goal but doesn’t write it down.
I’ve heard people say that life is like sailing a boat on a huge ocean, but most people just follow the breeze because they have no destination. But people who know where they want to be will focus on getting there. I think this is why those who write goals tend to be the people who achieve them.
How to set goals to change your life
Most of the articles and books I have read that talk about goals needing to be measurable. I agree with this almost entirely… but not totally. I believe, when setting a life goal, you should set something that is never achievable, but is something to continuously work toward.
Mine life goal for example is the following: “To have the health and resources to do anything I want”.
To me this is never achievable because there will always be something that I want that I can’t do, but it focuses the mind. So now, take a while to think about (and write down!) your life goal. Make it something totally amazing, something that you can never reach but always continuously work toward.
Now you have your target!
Next, what I did was I looked at my goal and broke it down. My goal had two distinct parts to it. Health and resources. So I took the health part first. Ok, so to do whatever I want I obviously need to be healthy. And to be healthy I need to watch what I eat, exercise regularly, and do all the things required to be healthy. BUT, the next goals (sub-goals) I set were measurable, and had a date at which they needed to be achieved. So here were my health goals:
In one year’s time weigh no more than 12 stone (168lbs). I think at the time I weighed just shy of 13 stone, and at my height google informed me that I am “slightly overweight”.
I then wrote down all the things that I needed to do to lose weight:
At least three one-hour sessions of sport or exercise a week. Etc etc.
For me, being healthy is a life long goal in itself and quite boring. It never stops, but I wrote them down anyway.
The more interesting part my life goal was the “resources” part. There are two resources in the
world – time and money. Ok, so to do anything I wanted, I would need a lot of both, and at the time of writing I had neither. I was in debt, and worked 9-5 (if you include the commute it was more like 7.30-6.30, Monday to Friday.
Fine, that was where I was then, aged 24. I had a lot of debt and this amazing life goal! Ok, where do I start? Well, I started by thinking that the only way I’d have the time to do whatever I wanted was if I didn’t have to work at all. So my “sub-goal” of my life goal was this:
“Be financially free by the age of 30”.
Hmmm… well, this at least is now measurable, and I had given myself 6 years to achieve it. But I realised that this was still a bit pie in the sky, so I kept breaking down my goals into smaller and
smaller sub-goals until I ended up with an action. It looked something like this:
Life Goal: To have the health and resources to do anything I want
Health (ongoing):
Anyway, I was pretty stunned at how successful I had been! Not only had I paid off all these debts, I had also managed to get a pay rise at work. I was de-shackled and it felt great.
Cool, so now my goals looked like this:
Resources:
something like that, I’m sure someone knows the actual stats).
What it means is, if you write your goal down, you are 20 times more likely to achieve it than someone who has the same goal but doesn’t write it down.
I’ve heard people say that life is like sailing a boat on a huge ocean, but most people just follow the breeze because they have no destination. But people who know where they want to be will focus on getting there. I think this is why those who write goals tend to be the people who achieve them.
How to set goals to change your life
Most of the articles and books I have read that talk about goals needing to be measurable. I agree with this almost entirely… but not totally. I believe, when setting a life goal, you should set something that is never achievable, but is something to continuously work toward.
Mine life goal for example is the following: “To have the health and resources to do anything I want”.
To me this is never achievable because there will always be something that I want that I can’t do, but it focuses the mind. So now, take a while to think about (and write down!) your life goal. Make it something totally amazing, something that you can never reach but always continuously work toward.
Now you have your target!
Next, what I did was I looked at my goal and broke it down. My goal had two distinct parts to it. Health and resources. So I took the health part first. Ok, so to do whatever I want I obviously need to be healthy. And to be healthy I need to watch what I eat, exercise regularly, and do all the things required to be healthy. BUT, the next goals (sub-goals) I set were measurable, and had a date at which they needed to be achieved. So here were my health goals:
In one year’s time weigh no more than 12 stone (168lbs). I think at the time I weighed just shy of 13 stone, and at my height google informed me that I am “slightly overweight”.
I then wrote down all the things that I needed to do to lose weight:
At least three one-hour sessions of sport or exercise a week. Etc etc.
For me, being healthy is a life long goal in itself and quite boring. It never stops, but I wrote them down anyway.
The more interesting part my life goal was the “resources” part. There are two resources in the
world – time and money. Ok, so to do anything I wanted, I would need a lot of both, and at the time of writing I had neither. I was in debt, and worked 9-5 (if you include the commute it was more like 7.30-6.30, Monday to Friday.
Fine, that was where I was then, aged 24. I had a lot of debt and this amazing life goal! Ok, where do I start? Well, I started by thinking that the only way I’d have the time to do whatever I wanted was if I didn’t have to work at all. So my “sub-goal” of my life goal was this:
“Be financially free by the age of 30”.
Hmmm… well, this at least is now measurable, and I had given myself 6 years to achieve it. But I realised that this was still a bit pie in the sky, so I kept breaking down my goals into smaller and
smaller sub-goals until I ended up with an action. It looked something like this:
Life Goal: To have the health and resources to do anything I want
Health (ongoing):
- Exercise at least three times a week for one hour
- Do not drink excessively more than once a week (hey, I was still young and enjoyed a few drinks!)
- Be financially free by the age of 30
- Be out of debt within a year
- Open a new bank account and pay myself £75 a week for disposable income
- Use all money left over to pay off overdraft
- Once overdraft paid off, pay off Dad (he loaned me money whilst I was at uni)
- Once Dad paid off, put all money towards my car loan.
Anyway, I was pretty stunned at how successful I had been! Not only had I paid off all these debts, I had also managed to get a pay rise at work. I was de-shackled and it felt great.
Cool, so now my goals looked like this:
Resources:
- Be financially free by the age of 30
- Be out of debt within a year DONE
- Buy a house by the end of 2008
- Save £500 a month towards a deposit
I was renting at the time and this is not good. Hundreds of pounds going to someone else for them to pay their mortgage off while the property I lived in increased in value! Anyway, renting vs buying is another post!
Within the year I had purchased my first property!
Job well done!! So within two years I had now cleared my debts and was paying a mortgage! Brilliant!!! This goal setting malarkey was doing me proud.
Now… my goals looked like this:
Resources:
- Be financially free by the age of 30
- Be out of debt within a year DONE
- Buy a house by the end of 2008 DONE
- Buy or create an asset that generates at least £100 per month cash flow by the end
of 2009
And this is where it all got REALLY interesting!! I’ll tell you about asset building in the next post!
Anyway, in conclusion, setting goals and writing them down means you are much more likely to achieve them. Set a life goal, something that you can always strive towards but never reach. Then, break it down into smaller and smaller MEASURABLE goals until you hit an action point. Do this by keep asking yourself “how can I achieve this?” Like, how can I get out of debt within a year? Well, I can make sure I only spend £75 a week on myself. And there is your action point – to only spend £75 a week on yourself and use the rest of the money to kill the debts.
Asset building ideas coming up next time!
Saturday 9 January 2010
Costa-lota of coffee!
In my posts below I hope you’ll agree it’s clear that in order to get out of the rat race you must slim down on your expenses. Here’s a great example to illustrate how easy it can be to reduce some unneeded expenses!
I know a receptionist who has two Costa coffees a day – one in the morning and one just after lunch. She has a medium latte I believe. I ask her why she doesn’t just have instant coffee because she must spend a fortune on the stuff and she replies “it doesn’t taste as nice”.
Well, let’s look at just this simple example of buying a coffee twice a day. Now I have no idea how much this receptionist gets paid, but let’s assume it’s about £16,000. This sound reasonable? So her monthly paycheck would probably be in the region of £950-£1000; let’s say £1000 for arguments sake.
Ok, now let’s analyse this situation further. Of her £1000 a month she would almost certainly have to pay the normal monthly expenses everyone else does. I have listed them below with an estimate of cost:
Rent: £350
Bills & Council tax: £200
Phone: £20
Petrol: £40
Food shopping: £100
Other (clothes, loans, etc): £150
There may be more, but let’s just use this as an example.
So, out of her £1000 paycheck she has £860 of cost. This leaves £140 as disposable income.
Right, let’s look at this coffee situation. One coffee from Costa may be nice, but then it does costa lot (see what I did there?). Let’s say £2 a cup, which is actually less than I think they are. So 2 cups a day, 5 days a week = 10 cups a week = 40 cups a month = £80!!! So in this example, I estimate the receptionist is spending MORE THAN HALF her disposable income on coffee!! 57% in fact!
And if that coffee costs £2.50 a pop it jumps to 71% - a shocking figure!!
Now if this receptionist came to me and asked “Jon, how can I get out the rat race” you can probably guess my first response. Cut out the coffee! Maybe treat yourself to one every Friday afternoon, but buy a big jar of instant coffee for the rest of the week.... This could save her £70 a month, amounting to £840 a year – not an amount to be sniffed at!
So, this is just one example of how you can slim down on expenses!
Until next time…
I know a receptionist who has two Costa coffees a day – one in the morning and one just after lunch. She has a medium latte I believe. I ask her why she doesn’t just have instant coffee because she must spend a fortune on the stuff and she replies “it doesn’t taste as nice”.
Well, let’s look at just this simple example of buying a coffee twice a day. Now I have no idea how much this receptionist gets paid, but let’s assume it’s about £16,000. This sound reasonable? So her monthly paycheck would probably be in the region of £950-£1000; let’s say £1000 for arguments sake.
Ok, now let’s analyse this situation further. Of her £1000 a month she would almost certainly have to pay the normal monthly expenses everyone else does. I have listed them below with an estimate of cost:
Rent: £350
Bills & Council tax: £200
Phone: £20
Petrol: £40
Food shopping: £100
Other (clothes, loans, etc): £150
There may be more, but let’s just use this as an example.
So, out of her £1000 paycheck she has £860 of cost. This leaves £140 as disposable income.
Right, let’s look at this coffee situation. One coffee from Costa may be nice, but then it does costa lot (see what I did there?). Let’s say £2 a cup, which is actually less than I think they are. So 2 cups a day, 5 days a week = 10 cups a week = 40 cups a month = £80!!! So in this example, I estimate the receptionist is spending MORE THAN HALF her disposable income on coffee!! 57% in fact!
And if that coffee costs £2.50 a pop it jumps to 71% - a shocking figure!!
Now if this receptionist came to me and asked “Jon, how can I get out the rat race” you can probably guess my first response. Cut out the coffee! Maybe treat yourself to one every Friday afternoon, but buy a big jar of instant coffee for the rest of the week.... This could save her £70 a month, amounting to £840 a year – not an amount to be sniffed at!
So, this is just one example of how you can slim down on expenses!
Until next time…
Wednesday 6 January 2010
How to Escape the Rat Race – Step 3
Invest!! Buy or create assets.
If you have completed steps 1 and 2 you are on your way to financial freedom. By completing step 1 you are now living below you means. Every month you are bringing in more money than your monthly bills. Completing step 2 has now taken the shackles off you by removing all non-mortgage debt. You should now be living well below your means, allowing you to put by a tidy sum each month.
Before you begin to invest, I suggest you first save enough money and put it in an ISA that will pay your bills for at least 3 months. That way, if the worst comes and you lose your job, or you have a huge unexpected bill come through, you have a financial cushion.
Assuming you have this cushion you are now ready for the most exciting step of escaping the rat race and becoming financially free (remember, being financially free is when your passive income exceeds your monthly expenses).
It’s all about assets! Assets are things that put money into your pocket automatically. Whether it is dividends from shares you own, rent from a house you let, interest you get from savings, it is something that puts money into your pocket every month and you don’t have to work for it.
Most people stay poor (well, don’t become financially free) because they never buy assets, they only buy liabilities. Liabilities are things that take money from your pocket, e.g. cars, boats, holidays, etc.
I’m not saying you should never buy liabilities – of course, most people need a car, and everyone should try to buy a house, although that is a liability. A house takes money out of your pocket, but you need to live somewhere and rent can take the same amount out of your pocket, and wouldn’t you rather pay for your own house than someone else’s?
When you can though, you should buy assets before liabilities – use your money to invest in something that will ultimately pay for your liability. For example, I want to buy a new boat. I have saved a lot of money for this boat – £20,000 in fact! Now, I could buy the boat outright now, since it costs £20,000. However, I do some research and find a good investment that will pay 10% return per year. So I buy this investment (asset) and from it I earn £2000 a year, or £166 a month.
I then manage to get a loan for £20,000 that will buy my boat for me, and cost me £150 per month to pay it back. I have therefore bought my boat and but still have a positive cash flow. What’s more, when my boat loan is paid off I’ll be left with an asset paying me £2000 a year!
So, as a summary, now you are living below your means and have paid off all your debts, you now are in a position to buy and create assets. More on this in the coming posts…
If you have completed steps 1 and 2 you are on your way to financial freedom. By completing step 1 you are now living below you means. Every month you are bringing in more money than your monthly bills. Completing step 2 has now taken the shackles off you by removing all non-mortgage debt. You should now be living well below your means, allowing you to put by a tidy sum each month.
Before you begin to invest, I suggest you first save enough money and put it in an ISA that will pay your bills for at least 3 months. That way, if the worst comes and you lose your job, or you have a huge unexpected bill come through, you have a financial cushion.
Assuming you have this cushion you are now ready for the most exciting step of escaping the rat race and becoming financially free (remember, being financially free is when your passive income exceeds your monthly expenses).
It’s all about assets! Assets are things that put money into your pocket automatically. Whether it is dividends from shares you own, rent from a house you let, interest you get from savings, it is something that puts money into your pocket every month and you don’t have to work for it.
Most people stay poor (well, don’t become financially free) because they never buy assets, they only buy liabilities. Liabilities are things that take money from your pocket, e.g. cars, boats, holidays, etc.
I’m not saying you should never buy liabilities – of course, most people need a car, and everyone should try to buy a house, although that is a liability. A house takes money out of your pocket, but you need to live somewhere and rent can take the same amount out of your pocket, and wouldn’t you rather pay for your own house than someone else’s?
When you can though, you should buy assets before liabilities – use your money to invest in something that will ultimately pay for your liability. For example, I want to buy a new boat. I have saved a lot of money for this boat – £20,000 in fact! Now, I could buy the boat outright now, since it costs £20,000. However, I do some research and find a good investment that will pay 10% return per year. So I buy this investment (asset) and from it I earn £2000 a year, or £166 a month.
I then manage to get a loan for £20,000 that will buy my boat for me, and cost me £150 per month to pay it back. I have therefore bought my boat and but still have a positive cash flow. What’s more, when my boat loan is paid off I’ll be left with an asset paying me £2000 a year!
So, as a summary, now you are living below your means and have paid off all your debts, you now are in a position to buy and create assets. More on this in the coming posts…
Monday 4 January 2010
How to Escape the Rat Race – Step 2
Destroy the debt!!!
Being in debt can be a massive anchor tugging you below the waterline with whoever it’s attached to struggling to keep their head above the water. Most people have some sort of non-mortgage debt, and a lot of people are paying more than 10% interest on this!
Being in debt is commonplace. In fact, in some cases is a necessity. Most people buy their cars with a car loan. Student often find themselves up to £20,000 in debt once they have finished university. However, leaving this unchecked can sink you.
Do not fear though. Clearing your debts may be easier than you think. Firstly, you need to make sure you are living below your means. See my step 1 post. Once you are living below your means list your non-mortgage debts with the interest rate you are paying alongside each, e.g.:
Car loan, 5%
Credit card, 19,9%
Store card, 28.9%
Overdraft, 9,9%
Now you are living below your means, use everything you have left at the end of the month to attack the debt with the largest interest rate (APR)! In this case, it’s the store card. Keep attacking it with your leftover money until you have paid it off. This may take several months, maybe even a year or more. But this step is ESSENTIAL in gaining financial freedom. You’ll never get ahead with huge debts weighing you down!
Once the store card is paid off, aim at the debt with the next highest interest rate – in our case, the credit card! You should now have more money to throw at this debt than you did the first because you no longer have to pay a hefty 28.9% APR from the store card! Keep at it, and soon you will have cleared this debt too!
Wow, two down, two to go. Overdraft – ready, aim, FIRE!! With the money you are now saving from not having to pay the credit card and store card you can fling all you have at this and before you know it, you’ll have killed this debt too.
Finally, aim at the car loan. You’ll kill this one off in no time.
This method is called Snowballing, because as you pay off the higher interest loans you have more and more money to throw at the other debts, and can reduce the time (and money) it’ll take to pay off each loan by many months, maybe even years.
Once you have shaken off the debts it show time – you can now really get cracking with becoming financially free!!
Being in debt can be a massive anchor tugging you below the waterline with whoever it’s attached to struggling to keep their head above the water. Most people have some sort of non-mortgage debt, and a lot of people are paying more than 10% interest on this!
Being in debt is commonplace. In fact, in some cases is a necessity. Most people buy their cars with a car loan. Student often find themselves up to £20,000 in debt once they have finished university. However, leaving this unchecked can sink you.
Do not fear though. Clearing your debts may be easier than you think. Firstly, you need to make sure you are living below your means. See my step 1 post. Once you are living below your means list your non-mortgage debts with the interest rate you are paying alongside each, e.g.:
Car loan, 5%
Credit card, 19,9%
Store card, 28.9%
Overdraft, 9,9%
Now you are living below your means, use everything you have left at the end of the month to attack the debt with the largest interest rate (APR)! In this case, it’s the store card. Keep attacking it with your leftover money until you have paid it off. This may take several months, maybe even a year or more. But this step is ESSENTIAL in gaining financial freedom. You’ll never get ahead with huge debts weighing you down!
Once the store card is paid off, aim at the debt with the next highest interest rate – in our case, the credit card! You should now have more money to throw at this debt than you did the first because you no longer have to pay a hefty 28.9% APR from the store card! Keep at it, and soon you will have cleared this debt too!
Wow, two down, two to go. Overdraft – ready, aim, FIRE!! With the money you are now saving from not having to pay the credit card and store card you can fling all you have at this and before you know it, you’ll have killed this debt too.
Finally, aim at the car loan. You’ll kill this one off in no time.
This method is called Snowballing, because as you pay off the higher interest loans you have more and more money to throw at the other debts, and can reduce the time (and money) it’ll take to pay off each loan by many months, maybe even years.
Once you have shaken off the debts it show time – you can now really get cracking with becoming financially free!!
How to Escape the Rat Race - Step 1
Take control of your money!
Simply put, live below your means. If you find yourself spending more every month than the amount going into your bank account then you are living above your means, and ultimately this cannot continue. Take a look at the banks in 2008 – they lent to people who could not afford to repay loans. They were living above their means and it all came crashing down, leaving the world in recession.
If you are unsure of where your money goes, keep a financial diary for a month or two. Write down everything you spend your money on, whether it’s a £200 bill or a 60p can of coke. At the end of the month add it all up. Is the amount greater or less than the amount you earned? If it’s less, good – you are already living within your means. If it’s more, don’t worry too much, you just need to take the reigns of your finances and get back control!
Budgeting is key to controlling your finances. List everything you MUST spend a month to get by. These are bills that you have to pay, like:
Mortgage / rent
Council tax
Clothes
Heating / electricity / water
Petrol
Insurance
Phone bills
TV licence
Car loan
etc
Unfortunately these are the things that we can’t just stop paying, BUT, if you must pay them you might as well make sure you are getting the best value, right? Next time your car insurance comes up for renewal ABSOLUTELY DO NOT just accept the quote that your current provider gives you. Moneysupermarket.com is your friend! Go online and make sure you get the best deal. The same goes for water, electricity, gas, mobile phone contracts, mortgages, etc. Always strive to get the best value for your money.
Now list all the things that you buy every month that you don’t need and the frequency of these purchases. This is pretty much everything else, like:
DVD’s
CD’s
Cinema
Meal out
Drinks down the pub
Day’s out
Costa coffee
Look at each one and ask yourself if you really need – if you are living below your means anyway then you may not want to cut back on anything on this list, which is fine. But if you are living above your mean, then you will need to look at this list and maybe rent a DVD out instead of going to the cinema, or cook a nice meal instead of eating out. You don’t have to make sweeping changes to your lifestyle, just ensure you are living well within your means.
Say you have monthly expenses of £1500. Just saving 10% is equal to £150 a month – this is almost £2000 a year!
Once you start living within your means you are on your way to escaping the rat race!!! Stay tuned for step 2 – destroying the debt!!
Simply put, live below your means. If you find yourself spending more every month than the amount going into your bank account then you are living above your means, and ultimately this cannot continue. Take a look at the banks in 2008 – they lent to people who could not afford to repay loans. They were living above their means and it all came crashing down, leaving the world in recession.
If you are unsure of where your money goes, keep a financial diary for a month or two. Write down everything you spend your money on, whether it’s a £200 bill or a 60p can of coke. At the end of the month add it all up. Is the amount greater or less than the amount you earned? If it’s less, good – you are already living within your means. If it’s more, don’t worry too much, you just need to take the reigns of your finances and get back control!
Budgeting is key to controlling your finances. List everything you MUST spend a month to get by. These are bills that you have to pay, like:
Mortgage / rent
Council tax
Clothes
Heating / electricity / water
Petrol
Insurance
Phone bills
TV licence
Car loan
etc
Unfortunately these are the things that we can’t just stop paying, BUT, if you must pay them you might as well make sure you are getting the best value, right? Next time your car insurance comes up for renewal ABSOLUTELY DO NOT just accept the quote that your current provider gives you. Moneysupermarket.com is your friend! Go online and make sure you get the best deal. The same goes for water, electricity, gas, mobile phone contracts, mortgages, etc. Always strive to get the best value for your money.
Now list all the things that you buy every month that you don’t need and the frequency of these purchases. This is pretty much everything else, like:
DVD’s
CD’s
Cinema
Meal out
Drinks down the pub
Day’s out
Costa coffee
Look at each one and ask yourself if you really need – if you are living below your means anyway then you may not want to cut back on anything on this list, which is fine. But if you are living above your mean, then you will need to look at this list and maybe rent a DVD out instead of going to the cinema, or cook a nice meal instead of eating out. You don’t have to make sweeping changes to your lifestyle, just ensure you are living well within your means.
Say you have monthly expenses of £1500. Just saving 10% is equal to £150 a month – this is almost £2000 a year!
Once you start living within your means you are on your way to escaping the rat race!!! Stay tuned for step 2 – destroying the debt!!
Sunday 3 January 2010
How to Escape the Rat Race
If you are familiar with the book Rich Dad, Poor Dad then you should already have a pretty good understanding of how to get out the rat race. If you are not, then keep reading and I’ll try to give you my understanding of what the rat race is and how to get out of it!
Firstly, what is the rat race?
The rat race is a way of describing the tedious process we as humans go through 5 days a week to live. Monday to Friday we get up early, commute to work to make someone else rich, and commute home. By the time we get home the kids could be in bed and you don’t see much of your wife. You work hard but never seem to get ahead – there are too many bills and loan repayments to make!
This is the rat race - running in a circle never getting ahead. This blog will try to give you the knowledge and tools to escape the rat race once and for all. However, it’s not going to give you get rich quick ideas, because these are pretty much non-existent (except perhaps the lottery!). What it will do is try to change your way of thinking and educate you financially.
When do you know you are out the rat race?
Well, according to Robert Kiyosaki, the author of Rich Dad, Poor Dad you are out of the rat race when your monthly passive income exceeds your monthly expenses. That simple. Once you hit this mark, you’ve done it! You could, if you wanted to, sit on your ass and do no work ever again! You could, in other words, retire.
So how can you get there?
I will try to show you that there is really only one way of getting out the rat race. That is the following:
LIVE BELOW YOUR MEANS and BUY ASSETS with what’s left.
And what’s an asset?
Well, those who have read Rich Dad, Poor Dad can smugly answer. An asset is something that puts money into your pocket without any intervention from you. Interest from money in a bank. Dividends from shares. The rent from a house you let(assuming of course the rent covers the mortgage!).
Is the house you live in an asset? Nooooo!!! Does your house or car put money into your pocket? Absolutely not. They take money out of your pocket, and a lot of it at that!
So, live below your means and buy assets. Seems pretty obvious huh? Well, too many people unfortunately live where their paycheque meets (or even worse doesn’t meet) their expenses exactly, leaving no money to invest.
More to following in the coming blogs!!!
Firstly, what is the rat race?
The rat race is a way of describing the tedious process we as humans go through 5 days a week to live. Monday to Friday we get up early, commute to work to make someone else rich, and commute home. By the time we get home the kids could be in bed and you don’t see much of your wife. You work hard but never seem to get ahead – there are too many bills and loan repayments to make!
This is the rat race - running in a circle never getting ahead. This blog will try to give you the knowledge and tools to escape the rat race once and for all. However, it’s not going to give you get rich quick ideas, because these are pretty much non-existent (except perhaps the lottery!). What it will do is try to change your way of thinking and educate you financially.
When do you know you are out the rat race?
Well, according to Robert Kiyosaki, the author of Rich Dad, Poor Dad you are out of the rat race when your monthly passive income exceeds your monthly expenses. That simple. Once you hit this mark, you’ve done it! You could, if you wanted to, sit on your ass and do no work ever again! You could, in other words, retire.
So how can you get there?
I will try to show you that there is really only one way of getting out the rat race. That is the following:
LIVE BELOW YOUR MEANS and BUY ASSETS with what’s left.
And what’s an asset?
Well, those who have read Rich Dad, Poor Dad can smugly answer. An asset is something that puts money into your pocket without any intervention from you. Interest from money in a bank. Dividends from shares. The rent from a house you let(assuming of course the rent covers the mortgage!).
Is the house you live in an asset? Nooooo!!! Does your house or car put money into your pocket? Absolutely not. They take money out of your pocket, and a lot of it at that!
So, live below your means and buy assets. Seems pretty obvious huh? Well, too many people unfortunately live where their paycheque meets (or even worse doesn’t meet) their expenses exactly, leaving no money to invest.
More to following in the coming blogs!!!
Welcome to the Rat Race!
You’re born. A few years pass and you go to primary school. Why? To get a decent foundation of knowledge that will support you throughout life. You work hard and do your homework, because that’s what your parents told you to do.
After a few years at primary school you can read and write and do basic mathematics. You hit puberty and go to secondary school. Why? To get good grades! But why’s that important? Well, so you can get into a great university! Oh, OK.
You continue to work hard, do your homework and revise for the all important end of school exams! Since you have worked hard you do well. You get into you first choice university. Great!
Hmmm… This university lark is expensive, I’m not sure how I can afford it.
No worries, you can get a student loan that will cover your tuition fees, pay your rent and still give you money to piss up the wall!
But why am I at university anyway? So you can study for the career! Then you can get a job, buy a house, start a family and live the life that society says you should lead!
Ah, OK. So off you go to uni. You study less hard but make up for it by playing hard. You lose your virginity (if you hadn’t already at school (naughty!)), drink way more than your liver can handle, miss lectures and have an infection scare. Still, you scrape through with a reasonable grade. Phew. Oh, by this time you are between £10,000-20,000 in debt.
Oh well, forget about that for now, I can pay it off when I’ve got a job, and now I have the tools to go out and make some money! Cool! So off you go and get a job. You earn more money now than you ever have, so you get a student loan for a new car. Another £7,000-£10,000 debt.
Still, you don’t mind too much because you work harder and get a promotion. And you meet someone at work who you rather like. You furnish her with gifts and meals to impress her and WAHOO!! Before you know it, it’s worked and you have a fiancé.
A wedding is really expensive stuff! Better work harder to get another promotion. You get one, but whenever you have more money to spend you seem to have more bills and expenses. Especially since you are now paying a mortgage for the new house you’ve just bought.
You work harder, doing longer hours and having less time for you. This didn’t stop you getting the wife pregnant though! SHIT!!!
Baby clothes, a pram, decorate the spare bedroom, new car seat! The list is endless.
You work even harder than before, getting a new job with more money but a longer commute. Baby pops out but you don’t see it much, you’re always in the office.
Then you do something really silly!! You get her pregnant again!!! House is now too small, you sell, and buy a bigger more expensive house. The mortgage is almost crippling!! How can I be in this situation?! I studied hard at uni, I got good grades like I was told I needed, I have a good job, yet I’m still working my ass off, making other people richer and I never see my wife and kids!!! WHAT DID I DO WRONG?!?
Nothing. You didn’t do anything wrong. You just weren’t trained in how money works.
Stay tuned for tips on how to escape the rat race!
After a few years at primary school you can read and write and do basic mathematics. You hit puberty and go to secondary school. Why? To get good grades! But why’s that important? Well, so you can get into a great university! Oh, OK.
You continue to work hard, do your homework and revise for the all important end of school exams! Since you have worked hard you do well. You get into you first choice university. Great!
Hmmm… This university lark is expensive, I’m not sure how I can afford it.
No worries, you can get a student loan that will cover your tuition fees, pay your rent and still give you money to piss up the wall!
But why am I at university anyway? So you can study for the career! Then you can get a job, buy a house, start a family and live the life that society says you should lead!
Ah, OK. So off you go to uni. You study less hard but make up for it by playing hard. You lose your virginity (if you hadn’t already at school (naughty!)), drink way more than your liver can handle, miss lectures and have an infection scare. Still, you scrape through with a reasonable grade. Phew. Oh, by this time you are between £10,000-20,000 in debt.
Oh well, forget about that for now, I can pay it off when I’ve got a job, and now I have the tools to go out and make some money! Cool! So off you go and get a job. You earn more money now than you ever have, so you get a student loan for a new car. Another £7,000-£10,000 debt.
Still, you don’t mind too much because you work harder and get a promotion. And you meet someone at work who you rather like. You furnish her with gifts and meals to impress her and WAHOO!! Before you know it, it’s worked and you have a fiancé.
A wedding is really expensive stuff! Better work harder to get another promotion. You get one, but whenever you have more money to spend you seem to have more bills and expenses. Especially since you are now paying a mortgage for the new house you’ve just bought.
You work harder, doing longer hours and having less time for you. This didn’t stop you getting the wife pregnant though! SHIT!!!
Baby clothes, a pram, decorate the spare bedroom, new car seat! The list is endless.
You work even harder than before, getting a new job with more money but a longer commute. Baby pops out but you don’t see it much, you’re always in the office.
Then you do something really silly!! You get her pregnant again!!! House is now too small, you sell, and buy a bigger more expensive house. The mortgage is almost crippling!! How can I be in this situation?! I studied hard at uni, I got good grades like I was told I needed, I have a good job, yet I’m still working my ass off, making other people richer and I never see my wife and kids!!! WHAT DID I DO WRONG?!?
Nothing. You didn’t do anything wrong. You just weren’t trained in how money works.
Stay tuned for tips on how to escape the rat race!
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