May 06, 2006

Make Money Work for You.

Part Two

For those just joining us you can find a review of the last section here here .

Before we continue with Part Two, I think it’s important to address some common misconceptions about what money can do for you.

The first misconception is important and some of you will be disappointed when I say money will not make you happy. There’s an old saying “money can’t buy happiness.” You can’t gain happiness through a bunch of little green pieces of paper. You are the only one who can make yourself happy. You can have all the money in the world and still feel miserable.

Secondly, having more money will not solve any problems besides financial problems. It’s be best to try to solve these problems before you seek ways to get extra income. Besides what good is it to be wealthy if you are always unhappy? So, extra money will only give you financial security, which gives you time to focus on personal growth, enjoying doing the things you love and enjoying time with loved ones. With that said, lets continue on.

As stated in yesterday’s post the key to making money work for you is to turn your earned income into flexible income. There are a number of ways to earn extra income doing this.

The first and most simple way is to start saving money. If you save 5 dollars a day you will have 12,600 dollars in ten years or 25,200 dollars in twenty years. The thing about saving money is it’s sometime difficult to stay committed to saving money. People are tempted to buy impulsively when they see something they want. If you get into the habit of putting a bit of your paycheck into a savings account, you will thank yourself later. But it takes a long time to save a lot of money. What if you want to have more money in a few years instead of waiting twenty?

You can invest in the stock market. “The stock market? But that’s too risky.” Only if you don’t know what your doing. Don’t do anything until you're ready. If you want to learn more, do so. Take as much time as you want gaining knowledge. You want to make sure you know the current conditions of the stock market before you invest. A few good books to learn about stocks and investing are One Up on Wall Street By Peter Lynch and The Essays of Warren Buffett: Lessons for Corporate America by Warren Buffett and Lawrence Cunningham. Or you can go over to various financial websites. A good article people just starting out can be found at the Motley Fool's Guide to Investing

In the coming sections we’ll talk about starting your own e-business and making money online from multiple income streams. You read information on getting your Website started, and how your site(s) can generate money. Whether your starting your ready to start you first online business or are just learning how to navigate the Internet, the Web is a great inexpensive place to make extra money.

More on that next

Make Money Work for You: Part One

Turning the Tables on Money

As stated in the last post I recently read a book that made me aware of the financial opportunities around me.

Most people work hard for money all their life, but barley have any money left for retirement. The cost of living is increasing and American's live in a rapidly changing economy. Right now we are in a 12 trillion dollar economy- and it’s growing. Things are changing at rapid speed. Yet, there is still a great divide between the rich and poor. What is causing this division is the lack of education, not only academic education but, financial education.

Improving your financial education is the most crucial thing some people don’t realize, ignore or disregard when trying to increase their income. How do I make my money work for me? Is a question people want to ask themselves. There’s more to life than worrying about downsizing, outsourcing and complaining about your job. If you can get a tiny fraction of that 12 trillion dollars coming your way you probably won’t have to worry anymore.

Some people realize they can live their best life, but see no way of doing it. They have a good education, they have a job, which earns them five figures, but still are struggling. There’s an interesting shift that is occurring between salary and education in the 21st century America; a good education sometimes isn’t enough to be financially independent. What does it mean to be financially independent? It means making more than what you spend and only going to work by choice.

There are a lot of people who have college degrees and or even PhD’s but, aren’t making enough money to make ends meet. Some people of the younger generations are quickly catching on to that fact. They see movies stars, glamour queens, athletes and other highly paid figures who regardless of the fact of whether or not they gone to college, are earning more than enough to be financially secure. This creates a drive in some of people have that kind of financial security. There’s more to life instead of being worried about money all the time. People want to have time to enjoy their family and friends or devote some free time to developing personal growth.
There are many who are creating their very own companies on the internet. They are tech savvy and very ambitious.

This is not to say everyone should not go to college or quit their jobs immediately and become business owners. That would be about as smart as trying to fly a plane without knowledge of how a plane works. Getting a good education and gaining knowledge are one of the keys to becoming successful. Everyone needs a good education to build the foundation for the rest of their life. But the in addition to required classes, school’s should also teach finance and possibly business.

I’m also not saying being an employee of a company is a negative thing. Being an employee helps people learn how businesses work and this valuable knowledge will help people who want to start their own business. If your job is making you or your family financially secure and you have enough security for the next generation, that’s great! The main point I’m stressing is people need to build up their financial intelligence; the younger you are the better. If your job isn’t giving you security there are alternatives out there. For those people who are giving this serious thought think about it in this way: your life is your job, not your job is your life. It is your job to make sure you are happy healthy, wealthy and wise.

One thing getting stuck in the “rat race” does is it makes individuals focus on their jobs and how much money they are making or not making. But they need to start asking themselves "who am I making money for? Myself, the company or my boss?" It would seem like they are making money for themselves but, a chunk of their paycheck goes toward someone else's income.

Don't quit your day job just yet and don't think about dropping out of school unless your start-up is generating cashflow, just start building your financial intelligence. As Robert Kiyosaki writes financial intelligence is knowledge of “accounting, investing, understanding markets and the law."

The key to becoming financially secure is turning earned income into passive income. We'll have more on that tomorrow.

Make Money Work for You

As stated in out first post, we will explore how to harness the power of money and learn step by step how to make it work for you.

I recently came across something that changed the way I thought about money and income in a book called Rich Dad, Poor Dad by Robert Kiyosaki. This book explains how a person can generate wealth by doing relatively simple things like saving, investing and creating multiple streams of income.

It’s a New York Times Bestseller and is a great read to get yourself in the mindset of increasing your income and working at home. Intrigued by the book and hungry for more information I searched the internet. I came across more even more valuable information all over the internet. It was so useful to me, I thought I'd share it and pass along the gift of financial knowledge to anyone seeking it. The websites I found the most useful will be added to the links section in the days to come.

Next up turning the tables on money.

Daily Insight Replaces The Stanton Report

For reader's who are familar with the blog The Stanton Report this blog is the successor to The Stanton Report,I unfortunately had to take it down due to spam and other problems. The information from that blog will gradually be transferred into this one.

First up Make Money Work for You.