Money Making And Success Tips

CHAPTER TWO OF MULTIPLE STREAMS OF INCOME

2015-03-05T07:11:00.001-08:00

Multiple Streams of Income: Chapter Two
By Robert G. Allen
1
©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
"The way to wealth, if you desire it,
is as plain as the way to market.
It depends chiefly on two words,
industry and frugality; that is
waste neither time nor money,
but make the best use of both."
Benjamin Franklin
The Ten Minute Millionaire
In the previous chapter you learned how easy it could be for you to be financially free. A few dollars a day compounded over a long period of time….anyone can do that. You COULD--but WILL you? Do you have the WILL for it? It’s easy to dream. But do you have the discipline to do it…..a dollar at a time? To weaken your will, the World of Stuff beckons…. “Buy this. You need this now. Spend, spend, spend.” What do prosperous people do when faced with the relentless siren song of instant gratification?
Prosperous people practice seven financial secrets. I call them secrets not because very few of us are aware of them, but because very few of us use them. The secrets are, in reality, skills…. essential money skills that all wealthy people practice. I believe that if you learn these skills, wealth can also flow into your life.... multiple streams of increasing prosperity. Wouldn’t that be nice? Money to buy whatever you want.... houses, cars, travel, freedom. Surplus to share with the people you care most about. Security. Peace of mind. That's what these skills will bring you
Throughout this book, you’ll learn how to cut through the blinding blizzard of financial information swirling around us every day and focus on the 7 essential money skills that will take you to financial security. I call these skills MoneySkills.
Share
Shield
Make
Invest
Save
Control
Value
Multiple Streams of Income: Chapter Two
By Robert G. Allen
2
©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
The first three Money Skills form the foundation of all financial success. Without them, none of the other skills have power. If you don’t value money, you won’t make the effort to control it. If you can’t control it, you won’t be able to save it. And if you can’t save it, there won’t be any surplus to invest. If you don’t understand investing, you’ll be a less effective entrepreneur. Therefore, you won’t have any to shield. And if you don’t have any to shield, you won’t have any to share.
Now, you may be tempted to skip over this chapter and get to the real “money making” chapters, but please be patient. This is the foundation building stage of financial freedom. For many years I have taught real estate investing seminars where people learn how to buy millions of dollars worth of property for little or no down payment. I find that a certain percentage of people can buy the property but then, don’t know how to manage the cash flow of the property they are buying.
I remember one of these students who was especially impatient. He didn’t want to waste time learning basic money management skills. He wanted to make some “real money” and then, he could hire someone to take care of his money. By asking him a few pointed questions, I discovered that his personal finances were in a shambles. Here was a person, living in financial chaos, lacking the discipline to even balance his own checkbook, who could hardly wait to acquire a 50 unit apartment building so he could get rich quick. If he thinks his money problems are bad now, wait till he adds the problems of managing a 50 unit apartment building. That would multiply his financial chaos by 50!
So, no matter where you are....whether you're starting from scratch or doing well financially.....we're going to start at the foundation and build sound financial management skills. Then, we move to the next stage of wealth. I want you to build on a strong foundation of proven financial strength. If you can manage the pennies in your life, they you’ll be ready to manage the millions that will soon be flowing into your life. But in you can’t manage the pennies, even though the millions may come, you won’t be able to hang onto them. For proof, I simply point to the dismal experience of lottery winners. If they had simply followed the ideas in this chapter, many of those lottery millionaires, instead of being broke, would be multi-millionaires today.
In the last chapter, you learned the first and most basic money skill…how to Value it.
Warren Buffett, one of the world’s wealthiest investors, has two important rules. Rule #1. Never lose money. Rule #2. Never forget rule #1. He hates to lose money because he is keenly aware of the FUTURE VALUE of each squandered dollar. For him, a thousand dollar loss today, represents the loss of millions of future dollars.
So, Money Skill #1 is to Value it.
The following quote explains how the billionaire John D. Rockerfeller taught his children to value money.
Multiple Streams of Income: Chapter Two
By Robert G. Allen
3
©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
"John D. Rockerfeller, Jr., was certainly not trying to save money when he decided to pay an allowance to his five sons. According to son Nelson, "We got 25 cents a week, and had to earn the rest of the money we got." To earn part of that extra money he raised vegetables and rabbits........"We always worked," according to Nelson. All the boys were required to keep personal daily account books. They were required to give 10 percent of their income to charity, to save 10 percent, and to account for all the rest. They had to balance their account books every month and to be able to tell what happened to every penny they earned. Nelson went on to serve as Governor of the state of New York for many years, and, ultimately, became Vice President of the United States. One of his brothers, David Rockerfeller, Chairman of the Chase Manhattan Bank, says, "We all profited by the experience-especially when it came to understanding the value of money." From Kids and Cash by Ken Davis and Tom Taylor 1979 Oak Tree Publications
Interesting. You’d expect that these kids, raised in the lap of luxury, wouldn’t need to learn these things. Yet, Rockerfeller wanted his kids to understand money. He taught them a specific pattern for dealing with their money. There is a lot of wisdom in what he did.
The necessity for Work: When you earn it, you value it.
The importance of Charity: Give away the first 10%
The need for Saving: Pay yourself the next 10%
The power of Accountability: Account for every penny.
In addition to valuing money, Rockerfeller was teaching his kids how to control their money. And that's the second of the 7 money skills.
MoneySkill #2. Control It.
The first step in gaining control of your finances is to set up a simple system for organizing your financial life. You may already have a system for controlling your finances. Maybe you use of the popular computer programs such as Quicken or Microsoft Money. Still, I think you could learn a lot from a simple system I call it the Bathtub Theory of Economics.
Most people have one simple faucet or main source of income...their job. This income flows into the bathtub of their life and flows out through the drains at the bottom. Most everyone spends every penny they earn and then some. Obviously, the only way to have an overflowing prosperity in your life is to plug up those holes and to turn on more faucets...to have Multiple Streams of Income. Both of these activities are critical: plugging leaks and turning on faucets. How many financial faucets do you have flowing into your life? How many leaks are there in the bottom of your bathtub?
Let’s look at plugging up the leaks first. Then, we’ll focus our attention in later chapters on how to turn on the faucets. I have simplified the many ways you can spend money into ten categories or leaks. I’ve kept the categories simple and broad because if it gets too complicated, you won't do it. Even when in using a computer finance program, like Quicken, your can organize your expenditures into these 10 categories. It's easy to remember the categories. Each one flows in order of their priority.
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
Therefore, the first leak or category (using the Rockerfeller model) is called Giving. This represents your contributions toward church, charity, others, etc. I have given this category the number of 1. I find it interesting that Rockerfeller taught his kids to give the FIRST 10% of their earnings to Others. For more about why he chose to do this, download a copy of God and Money at www.robertallen.com. Click on Keyword Search and select God and Money.
Now, after you pay the first 10% to your “Silent Partner” you need to pay yourself next. Therefore the next 10% of your money belongs in category 2 – Self. In the classic, "The Richest Man in Babylon," George S. Clayson tells the story of the wise investor whose primary rule was, "A part of all you earn is yours to keep." How true. When most of us save, we usually take it out of what’s left over. Prosperous people save first and then live on what’s left over. This makes a huge difference.
After you pay 10% to others and 10% to yourself, the third category, then, is taxes....and I give it a number of 3.
After these first three categories, what is the next most important expense of your life? Category 4 is your Shelter.... in the form of house payments or rent payments.
The fifth category is for Household expenses such as food, clothing, television, normal living expenses attributed to living in your place of residence. This will amount to your largest category.
Then comes category 6.... Auto. You need transportation. Every time you pay for gas, transportation, repairs to your vehicles, or car payments, you should organize these expenditures in category 6.
Next is Category 7 for Fun or entertainment. Whenever you spend money out of the home on movies, fast food, travel or toys, you should think of these expenditures as happening in Category 7. Seven is the number for fun.
Then, comes Category 8 for all forms of Insurance; health, life, disability, liability, house, homeowners, etc.
Miscellaneous expenditures (including payments toward debt) come under category 9 which stands for Debt/Miscellaneous.
And finally, there is Category 10.... for Business expenditures. Let’s review:
Category 1 Giving
Category 6 Auto
Category 2 Self
Category 7 Fun/Entertainment
Category 3 Taxes
Category 8 Insurance
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
Category 4 Shelter
Category 9 Debt/Miscellaneous
Category 5 Household
Category 10 Business/Deductible Exp.
Side Bar: You can’t delegate this to anyone.
The subject of budgeting and saving and penny pinching seems tedious to most us, yet these skills or habits must become part of your life if you ever hope to achieve any measure of financial success. Don't give me your old excuses. Don't you dare tell me you're not good at math, or that you hate to balance your checkbook, or that you don't have a head for numbers, or that you never went to college, or that you don't know how to work a calculator, or that your spouse takes care of that stuff, or that you don't have the time, or that life is short and that you'd better enjoy it while you can. Odds are, you're going to live well past retirement age and you must plan for it by taking charge of your finances NOW.
Have you ever walked by a penny on the sidewalk and not picked it up because it was just a penny? The truth is, that hidden beneath that penny is a stack of a million pennies. Pick up that penny and invest it immediately. Make the decision that, starting today, you will no longer go into debt to support your lifestyle. You’re going to live below your means....no matter what. It may take you months to turn your spending patterns around (for an oil tanker to change course 180 degrees takes many, many hours and hundreds of miles to accomplish....you're like that tanker, it will take time to turn your financial bad habits into good ones....so be patient with yourself.
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As you can see, all of your expenditures can be summarized into just ten, broad categories. You only spend money a few times a day. And yet, those few decisions can make all of the difference between poverty and wealth. So, let’s examine the actual act of spending. Let’s dissect a typical money transaction or Money Event. If you could dissect a normal Money Event what would it look like?
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
Money Event - Illustration
Money in your pocket --------- Exchanged for Product or Service
Prosperous people have a unique attitude toward each Money Event. During a typical transaction, they complete a few extra key activities. In doing so, they spend a few extra minutes per Money Event. I believe that it is these extra few key minutes that make all of the difference. That’s why I call this the Millionaire Minute.
Would you invest a few extra minutes per Money Event, if you knew it would eventually help you become financially free? Here is how people who are good with money approach a Money Event.
First, they plan the purchase. Just like with airline tickets, the longer the planning horizon the cheaper the purchase.
Second, they expect, ask for and often get a discount.
Third, they expect, ask for and always get a receipt.
Fourth, they always examine the receipt for errors.
Fifth, they immediately write on their receipt a category number.
Sixth, they balance their accounts to the penny.
Seventh, they file the receipt as soon as they get home.
Sidebar: Financially challenged vs. Financially prosperous
Financially Challenged Financially Prosperous
"A day late and a dollar short." “Abundance and Time freedom”
Short planning horizon- Impulse buying Long planning horizon
Plan your wants/Procrastinate your needs Plan your needs/Procrastinate your wants
Paying retail Paying wholesale
Not getting a receipt Getting a receipt
Not categorizing a receipt Categorizing a receipt
Not filing a receipt Filing a receipt
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All told, on average, the millionaire spends about an extra minute or two per transaction than the poor person. This takes no more than 10 minutes per day. But look at the savings in time and money. The millionaire saves from 10-20% in comparison shopping. (What if you could lower your annual spending by 20% without a lot of sacrifice?) Then, by investing an extra
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
minute to record the transaction and to file it properly, she has at her fingertips a vast source of information. She knows her current account balances. She can compare her spending to previous months and notice trends. She is more aware of her actual spending. This gives her much greater control of her finances.
She can calculate her tax consequences in minutes not days. She can back up her tax decisions with instant documentation. In a case of dispute, she knows where, when and how she spent her money and has the receipt to prove it. She is in control. And the resulting peace of mind creates a feeling of power. This increases her confidence, creativity and judgment. She makes fast, correct, decisive decisions. This gives her that secret millionaire's advantage.
So, from now on, every time you spend money, take an extra few minutes during that money event to practice the Millionaire Minute:
Plan your purchase.
Get a discount.
Get a receipt.
Examine your receipt.
Categorize your receipt.
Balance your account.
File your receipt.
Setting up your filing system is simple. Get ten manila folders and number them from one to ten. At the end of the day, remove your categorized receipts and quickly file them into one of the ten manila folders. If a receipt is a household expense, file it in folder number 5. If it is for entertainment, file it in folder number 7. Where would you file a receipt for an automobile expense? How about a business expense? Do this, and you’ll be in control of your expenses in a few short weeks.
Now, why go to all of this trouble? In the first chapter I shared with you the power of compound interest and how just a dollar a day can grow into millions given enough time. By practicing the Millionaire Minute, you will be able to find that extra dollar to ten dollars a day to fund your investment program. You can grow wealthy on the money that is already flowing through your fingers.
Most people don’t practice the Millionaire Minute, therefore they don’t plan their purchases. This, by itself, increases their living expenses by at least 10%. Then, they don’t collect receipts. And if they do, they throw their loose receipts into a shoe box. At the end of the year, doing their taxes is a real chore. It takes time and extra money for an accountant to prepare. There is some more lost money.
Just how much are those lost receipts worth?
Suppose you buy a pen and instead of throwing away the receipt, you actually keep the receipt, categorize it and file it for tax time. Now, you have proof that you made a tax- deductible
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
expense for your home based business. You now can deduct this expense off the top of your income before you calculate your taxes. What is this worth to you?
An immediate 30% return on your money!
If you're in the 30% tax bracket, then every dollar you categorize as a tax deduction gives you a 30% return on your money. Did you get that? Hello? Where can you, today, get an instant 30% guaranteed return on your money? When you get and keep the receipt for a tax deductible expense and then deduct that expenditure on your taxes, you're making 30% on your money. 30% return on your money is the kind of return that turns ordinary people into millionaires.
Start today to gain a greater control over your money by doing the millionaire minute....you'll be amazed.
I’ve created a special form that you can use to give yourself a financial tune-up. It’s found on the opposite page. It’s called a Money Tracker. I promise that if you’ll use the MoneyTracker for 30 days, you’ll be amazed at the kind of confidence it will build in your ability to control your finances. After 30 days, you can continue to use the MoneyTracker or go back to your old ways of doing things, but every six months you should use the MoneyTracker for another 30 days to sharpen your skills. If you’ll like to download a fully printable copy of the MoneyTracker, just visit my website at www.robertallen.com and click on Keyword Search. Then, click on the keyword: MoneyTracker.
MoneySkill #3. Save it.
The key to financial planning is cash flow management. You've not only got to get the cash to flow into your bathtub. You have to manage the leaks so that there is money left over at the end of the month. This monthly surplus is the secret. The surplus or savings can be invested. The object of the money game is to accumulate enough investments so that the income from these investments will eventually support you. So, the third MoneySkill is to save your surplus.
There are two meanings to the word SAVE. The first meaning is to pay less for your purchases. (Safeway saves1 you more!) The second meaning is to create a surplus. (I need to save2 some money for retirement.) Some people are good at doing the first save (save1). They like to shop for bargains. But they are terrible at the second save. (save2) Wealthy people are great at both. They love to save1 money-- to buy things at wholesale, to get a good deal, to get bargain. They hate to pay retail for anything. And now, you know why. Each wasted dollar destroys a forest of future money trees.
But they don't stop there. You see, anyone can save money by buying at a discount....but do they save2 the money that they save1? That's the hard part. A friend of mine quit smoking and was bragging about the $50 a month she was saving1 by not smoking. I asked, “Where is the
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
$50?” She didn’t know. She had saved1 the money but she hadn't saved2 it....put it away. When you save1 money by changing your buying habits, take the money out of your purse or wallet and get it out of your spending grasp. You won’t even miss it. Put it into a savings2 jar, and frequently deposit this money into your savings2 account. That’s when you’ve truly save1/saved2 it.
Suppose you normally buy your gasoline from a certain gas station. Then, one day you notice a new gas station which has gas 10 cents a gallon cheaper. With a ten gallon purchase, you should have saved1 about a dollar. But, you only notice the benefit of that savings when you take the second step and save/Save it. Therefore, when you go to the cash register to pay for the gasoline, physically take that saved1 dollar out of your wallet or purse and put it into a savings2 envelope. You can put the envelope into the side pocket of your door and let your savings accumulate into you have 25 to 50$. Don’t be tempted to spend it. You need to transfer those savings into your long term savings account…. and from there into your investment account ….. and from there in to your various investments such as mutual funds, stocks, bonds, real estate, etc.
You can literally become a millionaire on the money you’re wasting. There are thousands of ways to save money. A popular Mutual Fund company has prepared a list of 50 simple ways to save $50. It’s an excellent list and I’ve reproduced it for you at the end of this chapter. But there are two MAJOR ways to save money that are not found on the list.
Major Money Saver Number One. Extend Your Planning Horizon.
When asked for his secret, billionaire J. Paul Getty said,: “I buy my straw hats in the fall.” He didn’t buy his straw hats in the spring when the sun was hot and hats were popular and expensive. He bought them in the fall, when they were unpopular and cheap. He used this same philosophy with every purchase ....his oil wells, his businesses, his buildings, his corporate jets, and his art collections. He had a "wholesale" mentality. He saw into the future and scheduled his buying for the cheapest time. He bought when nobody wanted and sold when demand was high.
Therefore, to obtain these bargains, you need to lengthen your planning horizon. The planning horizon for most folks is one week…..till the weekend. For most North American corporations it is one quarter, one year, at most, five years. But the average planning horizon for major Japanese corporations is 150 years!
You might wonder how they know what is going to happen in 150 years. Remember, the future is not something that happens. The future is something that you MAKE happen.
You need to start immediately to extend your planning horizon. If you normally plan a week in advance, extend it to 30 days. If you normally plan a month in advance, extend it to three. If you normally plan a year in advance, extend it to 5. The farther in the future you plan, the cheaper your life will become.
Multiple Streams of Income: Chapter Two
By Robert G. Allen
10
©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
Of course, your well laid plans almost never come to fruition as you plan them. The purpose is not to come up with a final plan but to go through the process of planning. Start the process with a minimum planning horizon of 90 days. This is how.
Many people spend a few minutes planning their day. This is an excellent idea but there is a better way. Instead of just planning your daily activities, look at the day on your calendar that is 90 days from today and ask yourself, “What do I need to do today to make sure that the things I need 90 days from now can be purchased smarter?” You scan over the 90 day period looking for any airline tickets that need purchasing. Does anyone have a birthday? What about other gifts? What about food? What about office supplies? This one simple habit could lower you cost of living dramatically.
Successful money managers know instinctively how much easier it is to save a dollar than to make and extra one. To earn a dollar in net profit, you have to deal with employees, paperwork, hassle, advertising, customer relations, inventory, taxes, red tape, risk, etc. This is hard. But to save a dollar can be done in the blink of an eye by just cutting out an unnecessary expense. Both an earned dollar and a saved dollar drop to the bottom line. They look the same. But it was much easier to control your expenses than to increase your income.
Poor people today always seem to run "a day late and a dollar short." If you're a day late you'll always be a dollar short. Why? Because procrastination is expensive. If forces you to pay retail. An organized people are automatically better off financially because they have time to schedule their expenditures to "buy their straw hats in the fall."
Poor people have disorganized short term planning horizons. Rich people have organized, long term planning horizons. The more scheduled you are into the future the cheaper your life is going to become. You've got to begin organize your life like a major corporation. The average American corporation operates of 5 year planning horizons. The average Japanese corporation operates off a 150 year planning horizon. By planning far into the future, the successful companies can schedule their expenditures to coincide with the cheapest costs. How can you plan for 150 years in the future? Remember, the future is not something that just happens. The future is something that you create. If you can see far enough into the future you can create the kind of future that you want. In other words, if you want to learn to control your money, you have to learn how to control your time. That's what they mean when they say "Time is Money." So the first key to controlling your money is to learn to control your time. And the key to controlling time is to extend your planning horizon.
Major Money Saver Number Two. Schedule some Plastic Surgery.
Would you like to learn how to cut your living expenses by 20% 30% in 30 seconds? You would? Well, take out all of your plastic credit cards, put one away for emergencies, and cut up all the rest. Statistics have shown that this simple exercise will automatically
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
and almost effortlessly cut your living expenses by an average of 30% over the next 12 months. Why? Because credit cards provide easy access to purchasing power. If you remove the easy access, you unconsciously won’t be tempted to spend. Thus, your overall spending will automatically decline.
With the money you’re save/saving plus the 10% of the money you pay yourself off the top, you should be able to save enough money each month to fund your lifetime million dollar investment program.
Imagine a series of buckets where money is siphoned off from your bathtub. The first bucket should be your emergency bucket. Let your 10% flow there first until you have at least three months worth of living expenses saved. You'd be surprised how many people in this country are only one paycheck away from homelessness. Don't let that be you. This money should be in the safest place possible....probably in an insured bank account....at the highest interest rate you can find where you can access to your money within 30 days. Once this first bucket is filled up, the stream of 10% will overflow into one of three additional buckets---labeled, conservative investments, moderately risky investments and very risky investments. If you are older, you should have more of your money in the conservative bucket. The younger you are the more risk you can take.
On the next page is a list of 50 ways you can save $50 a month. Enjoy!
.
Multiple Streams of Income: Chapter Two
By Robert G. Allen
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©Copyright Robert G. Allen 2007, 2011, All Rights Reserved
50 Ways to Save $50 a Month
1. Shop with a list -and stick to it.
2. Just say NO to ATMs with fees -plan ahead for your cash needs.
3. Does your bank charge high fees? MOVE YOUR ACCOUNT.
4. Pay off that credit card balance!
5. If you must carry a credit card balance, shop around for a card with a lower rate.
6. Look for lower premiums on your insurance policies.
7. Consider higher deductibles for your home and auto insurance.
8. Do you have private mortgage insurance? If you've built up 20% equity in your home, you can cancel it.
9. Use a mail-order pharmacy for long-term prescriptions.
10. "Doc, can I get that as a generic drug?"
11. Check all medical and hospital bills for errors- many insurance companies offer rewards.
12. Rent- never buy something you'll only use a few times.
13. Turn your yard into a department store -have a rummage sale.
14. Switch long-distance carriers-then switch again.
15. Call waiting? Not usually? Cancel those add-on phone services you don't need.
16. E-mail your friends instead of calling.
17. Skip the movies -rent a video instead.
18. Dine out? Eat in.
19. Lunch is "in the bag"- or it should be.
20. Don't buy that book! Exercise your library card.
21. Free up space in your mailbox- cancel that magazine subscription you never read.
22. Watch a parade or have a picnic--free entertainment is often the best.
23. Turn your car into a "chat room." Carpool to work.
24. Join the "bus crowd" and avoid cab fare.
25. Buy airline tickets in advance -and always stay through Saturday. You'll have more fun and it's a lot cheaper, too!
26. Quit that health club-join the local gym instead.
27. "COUPONS" & "DOUBLE COUPON DAYS." Enough said.
28. What's in a name? Buy generic instead.
29. Skip the paper towels-wash your cloth ones instead.
30. Watch out for "convenience" foods-they're expensive and not as healthy for you anyway.
31. Join a warehouse club.
32. "Scan" those scanners and receipts-mistakes do happen.
33. Avoid "pricey" specialty stores.
34. Comparison shop "on-line."
35. Gotta trunk? Buy in BULK.
36. Premium gas for your car? Most run fine without it. Check your manual to be sure.
37. Forget the words "automatic car-wash"-do it yourself and get some fresh air.
38. Use that quick-change oil and lube service on the corner instead of a full-service garage.
39. Never pay extra for service contracts or extended warranties -the manufacturer's warranty is usually sufficient.
40. Cancel that premium channel you never watch-or cancel cable TV altogether.
41. Don't touch that thermostat-put on a sweater instead.
42. Take a shower instead of a bath.
43. Only run a "full" dishwasher.
44. Have an energy audit done on your home-some companies offer them for FREE.
45. Never pay extra for car rental insurance-you're probably already covered by your credit card or regular car insurance.
46. DON'T PLAY THE LOTTERY-the odds of getting hit by lightning are better than your chances of winning.
47. Time to refinance your home? Keep an eye on interest rates.
48. Pay yourself first-set aside a dollar a day.
49. Buy a "piggy bank" for all the spare change you keep finding in your couch.
50. Don't spend your next pay raise--INVEST THAT MONEY INSTEAD.
©Copyright Strong Funds. Used by Permission. www.strongfunds.com For free information 1-800-368-1683

BENEFITS OF INVESTING IN SHARES

2015-03-02T07:55:00.001-08:00

Investing in shares has a lot of benefits. In this post i will attempt to discuss the benefits of investing in shares.
1. A Means of Saving for the future: It is not feasible to leave your money in the bank untouched. Even if you can discipline yourself to leave the money in the bank untouched, the money loses value over time. Instead of keeping your money in the bank therefore, you can spend it to buy shares. The values of such shares can only increase with time. Read Multiple streams of income to get more facts about what i am saying. No matter how small the money you have you can always invest in shares as different from investing in real estate that involves a lot of money. Get ideas on how best to invest your money from RICH DAD POOR DAD and you will not regret buying this books.
2. A Means of Getting Regular Passive Income: If you pick the companies very well, you will be able to get regularly from dividend payment. To learn more about the stock market, i urge you to get these books: HOW TO MAKE MONEY IN STOCKS and THE NEATEST LITTLE GUIDE TO STOCK MARKET INVESTING .
3. Share Records can be used as collateral security: If you want to obtain loan from a bank, the record of shares that you have can be used as collateral security. The only thing is that yoiu will not be able to sell those shares until you finish paying the loan
4. A Means of Increasing the value of Your Money Over Time: If you simply keep your money in the bank, the value reduces over time. This is normal. If you decide to invest ion shares, the value of the shares tend to increase over time. Firstly, you get bonus shares which help to increase your money. secondly the value of individual shares also increase with time.

Survival Tips During Bearish Market

2015-02-10T08:08:00.000-08:00

Prices of Shares Going Down? Don’t Panic. It is a Blessing.

Looking at prices of shares these days, it will be noticed that the prices are very low compared to what they were around this time last year. For all categories of investors, particularly those who invested for short term expecting capital gains, it may be a source of worry and stress. It is actually a blessing in disguise for the following reasons:

Low prices is an opportunity to buy more shares cheaply: The fact that the prices are low now compared to what they were before is an opportunity to buy more shares with the same amount of money. Last year for instance, if you want to invest N10000 to buy 10000 units of company X’s shares at N10.00 per share, that same amount of money will procure for you 15,714 shares at 7.00 per share.. In other words it is an advantage in the sense that you are likely to get more shares, more bonus shares and dividend payments, compared to when prices are higher
Prices are not going to remain low for ever: Observations of price movement of stocks over the years indicates that there will always be fluctuations, no matter how perfect the market is (Read (MULTIPLE STREAMS OF INCOME to see relevant charts illustrating this fact). In fact, falling prices should be expected on the average of every ten years. The good news is that the period of low price is usually followed by a period of increase in price when all the so called loses will be recovered. This is the reason why you should continue to invest in shares even when the prices are low. I have always advised that you should not invest borrowed money if you are investing for short term.. If prices go down you can decide to hold your stocks for as long as possible if you invested your money. Since the invested money is yours, you will not be under pressure to pay back or to sell the shares at a loss.

TIPS FOR SUCCESSFUL LONG TERM INVESTMENT IN STOCKS

2015-02-05T21:55:00.002-08:00

For successful investment long term, I will highlight the strategies that must be followed to achieve success in this article.

Be ready to hold your stocks for as long as possible: Right from the day you buy your first set of shares, make up your mind that you are going to hold those shares for as long as possible. Study the dividend and bonus record of each company for the past five years and make a choice to pick those companies. Though past records may not always be repeated, yet companies that have been able to pay dividends for at least 10 years consecutively are likely to continue to do so for another five years at least.. Since you are investing for long term, you are sure of getting some income as the years roll by.
Sell those shares that did not meet your expectations: You may not be 100% sure of realizing your expectations for every company’s shares you bought. My recommendation is that if a company has not paid you dividends or given you bonus shares for five years, it is better to sell such shares and use the money to buy others that fulfill these two goals.
Diversify your investment: It is better to invest in more than one sector of the economy. It is like saying you should not put all your eggs in one basket. You know what could happen if all your eggs are in one basket
Don’t panic when there are fluctuations in price of shares: In his book titled MULTIPLE STREAMS OF INCOME, Robert G. Allen said that every investor should expect price fluctuations. Most of the time the downward movement of prices is a blessing as it affords you the opportunity to buy more shares cheaply. I strongly recommend this book. It has really blessed me tremendously
Invest Day in-Day out: No matter what is happening in the stock market, make sure that you invest regularly. This is particularly true if the prices go down. You should know that the prices will not be down perpetually. Therefore keep investing.

STEPS TO INVESTING IN STOCKS IN NIGERIA (PART 2)

2015-02-04T12:53:00.000-08:00

In the first part of this write-up, I mentioned reading of relevant books on investment and saving of money for investment. This segment will highlight the remaining steps involved in investing in the stock market.

4. Open a stock account with a stockbroker: Many investors only invest when companies declare public offers. They are not aware that they can buy shares on any working day. You should know that shares are being traded from Monday to Friday of every week. To be able to participate in the market, you must open an account with a stockbroker. Make sure that such a broker is registered and he is reliable. Once the account is opened, start buying shares of your choice. You must be aware that the market is categorized into sectors. Look at the various sectors and place orders based on your interest.

5. Do your research before buying shares: You should know what your goals are before buying shares. The goals may be connected to the category of investor you want to belong to. Try to find out about each company before you buy shares. Be ready to hold your shares long term, if need be, and make sure that you invest regularly.

I came across a book which really explained more on this topic. It is titled

MULTIPLE STREAM OF INCOME. I strongly recommend this book to any would-be investor in the stock market

STEPS TO INVESTING IN STOCK MARKET IN NIGERIA PART 1

2015-02-03T19:21:00.001-08:00

Investing in stocks is one important way of preparing for the future. It is unfortunate however that many people know so little about the stock market and how to invest. This article highlights the steps involved in investing in the stock market in Nigeria. The steps are also applicable in other countries.

Read Books and Magazines on investment: The first step towards profitable investment is to read relevant books and magazines that focus on how and what to invest in. An example of such book which I found very useful is MULTIPLE STREAMS of INCOME. The author discussed extensively the importance of investing, how to obtain money for investment and the relevant things one can invest in. One important area he discussed was investment in the stock market. By reading as many books as possible, you will gain relevant knowledge on the working of the stock market, the risks involved and the ultimate benefits.
Save Money: Investment of any kind involves money. It is not the best for you to rely on loans as the major source of funds for investment in the stock market. This is particularly true if you are investing on a short term, hoping to sell the shares when prices increase. You will not be under stress to pay if prices did not appreciate soon as expected. You should set aside at least 10% of your income for investment.
Decide on which category of investor you want to be: There are two categories of investors in the stock market i.e. short term investors (stock traders) and the long term investors. The short term investors are interested in getting an increase in price ; and when that happens, they sell and make gains. The long term investors on the other hand are ready to hold their shares for as long as possible. They are not interested in immediate gains; but they are interested in getting bonus shares and regular dividends. On the long run prices o f shares are going to appreciate. On the short run, the behaviour of the market is usually based on fears, news, speculations and rumours. On long term however, the earnings of each company will determine whether the prices will go up. I will continue the remaining steps in part two of this write up.

BASIC COMPONENTS OF SUCCESS

2014-03-15T12:05:00.000-07:00

In the book titled UNIVERSITY of SUCCESS, the author identified five components of success as follows:
1. Purpose: It is good to have an aim which you are moving towards
2. Batting average: The success may not be a straight forward thing. It may be accompanied by failure before the final success
3. Price: Every success has a price one must pay to be able to schieve
4. Satisfaction: Without satisfaction success in any endeavour cannot qualify to be called success
5. Spirituality:

CAUSES OF FAILURE

2014-03-15T06:27:00.002-07:00

In the book titled THINK AND GROW RICH, Napoleon Hill listed the causes of failure as follows:
1. Unfavourable hereditary background
2. Lack of well defined purpose in life
3. Lack of ambition
4. Insufficient education
5. Lack of self-discipline
6. Ill-health
7. Unfavourable environmental influence
8. Procrastination
9. Lack of persistence
10. Negative personality
Get a copy of this important book here and read the remaining causes of failure

2014-03-14T02:32:00.000-07:00

BENEFITS OF COUNTING YOUR BLESSINGS

Do you count your blessings? In the book titled "UNIVERSITY OF SUCCESS" i read the following statements " Feeling sorry for yourself and your present condition , is not only a waste of energy but the worst habit you could possibly have" I strongly recommend this book for your reading. To get it follow this link UNIVERSITY OF SUCCESS. In a previous article, i outlined the steps to goal setting. I stressed that success requires persistence and determination. But despite the best plans howeever, things may not turn out as epected. It is at this time that most people feel sorry for themselves. What is the best thing to do in such circumstance? It is to count your blessings. Think about what you have been able to achieve in the past, the problems you solved in the past and the victories you got. Assess your current situation objectively by consciously looking for reasons why you should give thanks. If you truly count your blesings, you will enjoy the following benefits:
i. Your hope will be rekindled
ii. You will enjoy peace in your heart
iii. You will receive a new strength to continue
iv. Sickness will be far from you and you are likely to live longer.
Are you interested in creating multiple streams of income? I recommend that you read this book by Robert G. Allen.

DO YOU FEEL SUCCESSFUL?

2014-03-12T20:44:00.000-07:00

Howard Whitman asked 2 questions about success: 1. Do others feel you are a success? 2. Do you see yourself as a success:? He contended that you will not enjoy success if you only based it on other people"s opinion . You should be able to feel and think that you have actually succeeded.You should set goals which you intend to achieve and map out strategies to achieve the goals. The goal setting consist of the following steps:
1. Decide on what you really want in life. This should cover every area of your life.
2.Break that desire into smaller goals and set specific time to achieve each
3. Arrange the goals according to their priority
4. Begin at once to work on the goals, avoid procrastination as much as possible.
5.Periodically evaluate yourself to measure your progress
6. Find ways to reward your efforts when you achieve any of the smaller goals.
If these spteps are consistently followed you will become a success in all area of life. I said in all areas of life because it is good to achieve balance in all areas. Read this important book as to get more points on success

2014-03-12T02:07:00.001-07:00

DO YOU FEEL SUCCESSFUL?
In the book UNIVERSITY OF SUCCESS, Howard Whitman identified two main criteria of success: i. Do others think you are a success? ii. Do you think you are a success? You need to see yourself as successful before you can truly enjoy the success. If your feelings are based on the opinion of other people, then you will be feeling miserable all the time. You should think and feel that you have actually succeeded. In my previous article, i defined success as accomplishment of an aim or purpose or having a favourable outcome. It is important therefore that you set the goals to be accomplished by yourself. Are you interested in attaining financial success? See this important book for details

2014-03-12T01:51:00.000-07:00

SUCCESS QUOTES

Read these success quotes and benefit from them
1. Success consists of going from failure to failure without loss of enthusiasm. Winston Churchill
2. in order to succeed, your desire for success should be greater than your fear of failure - Bill Cosby
3. Success is not final, failure is not fatal: It is the courage to continue that counts- Winston churchill
4. Always be yourself, express yourself, have faith in yourself, do not go out and look for a successful personality and duplicate it- Bruce Lee
5. Try not to become a man of success, but rather try to become a man of value- Albert Einstein
More success quotes will follow in subsequent posts. Are you interested in achieving financial success? Follow this link to get the secret

SUCCESS DEFINED

2014-03-11T20:09:00.000-07:00

Success could be defined as the accomplishment of an aim or purpose. It could also mean having a favorable outcome with respect to an undertaking. Attainment of wealth or prominence could also qualify to be called success. To succeed, one needs persistence and determination. There is also a need to set worthwhile goals. Read this book titled UNIVERSITY OF SUCCESS to get more facts on success.

SECRETS OF THE RICH

2014-02-16T10:13:00.000-08:00

Looking at the extent of poverty all over the world, one would feel like envying the rich people of this world. Instead of envy however, it is better to find out what the rich people know and do with the aim of copying these things so that we ourselves can be rich like them. Below are some of the things i find out:
1. Rich people believe in abundance: The rich people believe that the world is filled with great abundance. This help them to do away with poverty thinking. Is it strange that they are rich?
2. Rich people decided to be rich: Many of the rich people made a conscious decision to be rich. This is what Napoleon Hill called desire in his book titled THINK AND GROW RICH.
3. Rich people surround themselves with rich people: They associate with people who sympathize with their goals. They are ready to learn from others that are already rich
4. Rich people have more than one source of income: In the book MULTIPLE STREAMS OF INCOME, Robert G. Allen showed how important it is for individuals to have more than one source of income. He identified various avenues where these streams ould be created.
5. They set goals of investing instead of spending: According to Robert G. Allen in his book whih i referred to above, rich people value money. They treat money as seed which could be planted to yield more money.
From these points raised above it is very clear why the rich people are rich and if we can cultivate these habits we shall be rich also.

MAY HIS SOUL REST IN PEACE

2013-12-10T00:38:00.002-08:00

I sympathize with all south Africans on the death of the father of the nation, Mr. Nelson Mandela. It is a thing of joy however that Mandela spent his life to make his people free . Africans will not forget him, everyone who is oppressed all over the world will also not forget him. All we can do at this time is to promise ourselves that we will carry on the good work which he did while he was alive. May his soul rest in peace.

HAPPY EASTER TO ALL MY FANS

2013-03-30T02:23:00.004-07:00

I wish all my christian fans a happy Easter celebrations. May the resurrection of Jesus Christ became a reality in all areas of our lives.

FACING THE FACTS ABOUT YOUR FINANCES

2013-03-08T23:14:00.000-08:00

It is not wrong that one is having finanial challenges,but it is wrong if one decides not to face the fact and if one decides to delude himself that all is well.
The first important step towards having financial breakthrough is for one to admit the truth that one is having financial challenges and also make plans about how to come out of the challenges successfully. Do you want to come out of your debt? Always read my articles for the secrets

7 STEPS TO FINANCIAL SUCCESS

2013-02-24T11:18:00.002-08:00

I love the book titled "THE RICHEST MAN IN BABYLON". It summarises the basic steps one needs to take in order to succeed financially. According to the author, the steps are as follows:
1. Regular saving of one tenth of total income: This step is very crucial because developing this habit marks the beginning of financial success. An individual that cannot save money can hardly break-even in his fianances. To be free from debt,one needs to develop the habit of saving. Do you want to learn money making system that cannot fail? Visit this website for more information.
2. Control your expenses by budgeting: For saving to become a habit,it is important to make a budget that will help you to truly gauge you expenses against your income.
3. Invest your savings: Having saved some money,the next step is to invest the money to yield more. When this is done on regular basis,one can be sure to become rich soon and one would be out of debt.
4. Protect your investment from loss:Make sure that your capital will not be lost in any venture you invest in.You may need to consult those people who have invested in such ventures before you invest
5.Build your own house: When you build your own house, you are free from paying house rent and this will free more money which you can further invest
6. Plan for a future income: Your ability to make money decreases with age. You need to invest money such that you will be receiving income from those sources when you can no longer work as hard as when you are young.
7. Get new skills which will enable you to earn money: There is no doubt that we are paid for the skills which we acquire.To earn more money,get new skills.

CONGRATULATIONS TO ALL AMERICANS

2013-01-21T12:51:00.001-08:00

I congratulate all Americans as President Barack Obama takes the oath of office for another term in office. I ask God to give him the wisdom to lead his people successfully.

RULES OF WEALTH CONTINUED

2013-01-15T08:26:00.001-08:00

RULE 4: kEEP IT UNDER YOU HAT: Having formulated your wealth objective,dont tell anybody about it. There are people who will discourage you if you tell them about your objectives. You can ask for advice when necessary. RULE 5: Analyse your money beliefs: Some people believe that money is dirty and evil. People who hold such views can hardly be wealthy. Analyse your money beliefds and discard all those that are negative. RULE 6: Lazy people cannot be wealthy: Getting wealthy involves hard work. Therefore prepare to work hard on your objective. RULE 7: Wealth is a consequence not a reward: Know that money is a payment for something. Therefore get ready to give something for which you would be paid. RULE 8: WEalth is your friend not an enenmy: When you are rich,you would be in a position to help so many people around you. RULE 9: Decide why you want money: Knowing the reason why you want money will keep you motivated to pursue your objectives. RULE 10: Know that you may have to spend money to get money: You need to spend your money in investments to be able to get more money.This is very important. See the strategies for correct investments here. If you are interested in learning what the rich people teach their children,click here to get the information. RULE 11: Dont see money as the solution to all your problems: Money is good but it cannot solve all problems. RULE 12: Making money should not prevent you from enjoying your job,your family and sweet sleep. If you have started losing sleep,you need to talk to yourself. RULE 13: Dont make money by being bad: What is the value of money you made when you lose your friends and loved ones because you are bad? Think about this. RULE 14: Money may not necessarily bring happiness: Having more money may not necessarily make you happier than you are now. Do you really want to be happy while making money? Have a look at this book and develop the millionaire's mindset RULE 15:Know the difference between price and value Price may not necessarily be the same as the value of a product. Get this important book and read the remaining rules in part one of the book

RULES OF WEALTH PART ONE

2013-01-12T01:20:00.002-08:00

I came across a book recently with the title "Rules of wealth". Having read through this book,i feel like sharing the contents with my readers. RULE 1: Anybody can make money It is common for us to believe that rich and wealthy people have special attributes that enable them to make money and be wealthy. This rule is simply saying that anybody with average intelligence can make money and be rich.You can read the book here RULE 2: Decide on your definition of wealth You are the one who decides what wealth means to you. Making this decision will enable you to set a goal and pursue your goal. It will enable you to know when you have attained your goal. Do you know how to generate multiple streams of income? Click here RULE 3:Set Your Objectives Having decided your definition of wealth, you need to set your objectives to be able to achieve that wealthy state you have defined. I will continue the other rules in my next post. Meanwhile,if you really want to learn how to generate automatic wealth and attain six figure income,click to follow all the links in this post. Thank you very much

HAPPY NEW YEAR

2011-12-27T03:41:00.000-08:00

i wish all my fan a prosperous new. May the new year come with lots of blessings to all of us.

THE CONCEPT OF FINANCIAL FREEDOM AND HOW TO ATTAIN IT

2011-08-29T03:17:00.001-07:00

As far as I am concerned, financial freedom means you are in complete control of your money since you spend les than you earn, thereby having a reserve which you can fall back on any day any time. Even though you have an expertise as a money making machine, yet you are an expert at managing your money and financial resources very well. Financial freedom may also mean that you would not need to worry for money again for the rest of your life. For this reason, you may afford to travel to any part of the world, not minding what would happen to your business in your absence. Looking at this concept from another perspective, it may mean that you are increasing your saving and assets regularly until you have more than enough. Lastly, it means you are not forced by circumstances to do any job just to be able to make money and make ends meet. In order words you only do what you enjoy doing, rather than what circumstances forced on you and when you are exposed to money making opportunities, you are able to turn such opportunities to stupendous wealth.

Looking at the concept of financial freedom as defined above, are you financially free at this moment or you are deeply in debt? This article will reveal to you how you can come out of debt completely. I will advise that you regularly visit this website in order to get timely information on offline and online money making opportunities as well as quick ways to make money and enjoy life to the utmost.

STEPS TO FINANCIAL FREEDOM
1. Have a desire to attain financial freedom: Napoleon Hill, in his popular book titled Think and Grow Rich, identified desire as the beginning of all worthwhile achievement in life. You must have a desire to be financially free because if this desire for change is not present, your condition will not change at all. Don’t you agree with view? Let me have your comments.
2. Pay Yourself First: All experts in financial matters agree that you must pay yourself first in order to be financially free. In order words, you should be able to save a portion of your income on regular basis. The amount saved regularly should not be less than 10% of your income. This is the first principle in any money making program or money making scheme.
3. Start early in your working life: The earlier you start your plan towards financial freedom, the better and easier it is for you to attain your goal and the longer you are able to enjoy what you have. For you who are close to retirement, you can still be financially free provided you start today. There must be a conscious effort to follow these money making tips that I will be sharing with you on this page.
4. Avoid debt as much as possible: Pay your outstanding debts and try not to add new debts. Consider the benefits before you make any purchases. Avoid spontaneous purchase as much as possible.
5. Pray for divine assistance: In all maters that affect your life, you need God’s help to be able to achieve success. This help can only come if you pray to God and seek His intervention. God, being a loving father, will gladly answer your prayers and show you how to make money, how to manage the money made and even, good making ideas that are almost free and will transform your life permanently. Think about the few ideas I share with you today till I come your way again. Thanks.

STEPS TOWARSD DEVELOPING THE SAVING HABIT

2011-07-23T12:04:00.000-07:00

In line with my promise in my last article, that I will outline steps to help you save a portion of your income, this article will be dedicated for that purpose. I hope you will enjoy reading. Before I go on however, I will like to stress the fact that it is not enough to read this article, you must put into practice what you will read in order to effect a change in your financial fortune. I know you are interested, the steps are as outlined below:

Always plan your expenses for the month: If you have been working for sometime, it should be easy for you to estimate amount needed for your basic needs for the month. When you make your plan, always do it in such a way that you still have at least 10% of your money for savings. A reference book for this information, which I think you should read, is the book titled THE RICHEST MAN IN BABYLON. It explains in details all about “paying yourself first” which is another term for saving.

Avoid impulsive purchases: It is common for people to buy things they did not budget for. This happens impulsively and financial resources are wasted as a result of this. One needs to be disciplined to avoid impulsive purchases that waste resources. It is important to develop the right mindset for this to be possible. Read about the correct mindset here .

Make saving an expense: When planning your expenses for the month, experts advised that saving should be one of the things you plan for . It should be planned as part of your expenses for the month. If this is done correctly, you will not struggle with how to remove this amount dedicated for saving anymore. Little drops of water makes a mighty ocean, as you continue to practice these steps you will eventually become debt-free and financially prosperous.

Be disciplined: I have come across people who are interested in being rich and prosperous but they lack the discipline required to make this happen. They dream of six figure income, but find it difficult to achieve their aim. Read about the simplest way to avoid this problem here. It is very true that without self discipline to follow your plan, saving will be impossible and you will still remain in debt. Out of the four steps outlined here, the issue of discipline is the most crucial; therefore do everything possible to attain self discipline. Thanks and God bless.

HOW TO COME OUT OF DEBT AND BE FINANCIALLY FREE

2011-07-23T11:54:00.000-07:00

Are you really interested in being rich? Do you want to come out of debt? I will reveal a short way to make this possible. Before I discovered this secret I was always struggling to meet my financial obligations. I began to solve my financial problems when I came across a book titled THE RICHEST MAN IN BABYLON . You may click on the name of the book to have a look. According to the author of this book, the first step towards financial freedom is the practice of saving. It is customary for individuals to spend all the income they obtain within a month. This is the reason why the majority of people are struggling to meet their financial obligations. Let us think about it. Is it possible for a man to have financial breakthrough, who spends everything he makes within the month? Such an individual can never have financial freedom. He will perennially be short of money. Therefore, the first step towards financial freedom is to cultivate the habit of saving a portion of what you earn within the month. If you are interested in creating a six figure second income follow this link to get the secret. I know some people may complain that the money they make is small, but remember that if you cannot save when your income is small, you will not be able to save even when you are receiving a big income. This is because there is a law that says that your expenses will always increase to be equal to your income. In other words, as your income increases, so also shall your expenses increase. You can disobey this law by deciding to save a portion of your income. Note also that a financial expert says that if you cannot save a portion of your income, the seed of greatness is not in you. I can attest to the effectiveness of the habit of saving as a solution to problem of lack of money because I can see outstanding results since I started saving a portion of my money. Do you want to develop a millionaire’s mind set? Click here to see what I am talking about.. In subsequent articles, I will give you tips to help you in saving a potion of your income. Thank you for sharing your time with me.