REAPING PROFIT

What Is Money?

2008-12-16T05:54:00.000-08:00

Money? What is it?

Before you start to make your own money, you must first understand what money really is and how it works? Money is a "medium of exchange" for goods and services. Most people don't specifically take the time to understand money and get to know what it really is. Most of their major concerns are how much money they have, and how to get more of it. Money questions only arises when their money is not functioning properly.

Prior to the invention of money, human trades directly with one another through barter system, that is, a system where i trade my goods or services for your good or services. Problem exists in this system when a person might not want what the other party offer in exchange. Hence, there is no deal. So, to overcome this problem, money is invented. Money acts as a medium which is universally recognised and accepted by everyone.

As such, exchange can take place when a person can trade his/her goods or services for money, knowing that with the money, he/she can exchange for whatever he/she wants later. Thus, money facilitates transactions.

Money cannot be just an idea, it has to be a physical entity for transactions to take place. Long ago, humans have used gold and silver as the physical entity for money as they are valuable metals. Today we have electonic money, notes and coins that circulate in our monetary system. It has since become the best form of exchange serving us mankind in our modern everyday lives after evoluting thus far.

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Different Types of Income

2008-12-16T05:51:00.000-08:00

Different Types of Income

Basically there are 2 different types of income, although some states that there are 3 and some even states that there are 4 or more types. But for simplicity, we will just stick with 2 basic types of income, active income and the passive income.

Active Income

Active income is the income that you have to personally work for in order to obtain the income. For example a job, if you work you get paid, if you don’t work, you don’t get paid. This is the kind of income that needs your involvement and you have to trade your time for it.

Passive Income

Passive income is the income that will come in whether you work or not. Examples of passive income are royalties, rental collections, bank interest, dividends and etc. Usually these incomes will come in freely every month for the rest of your life if you could sustain it. For instance, say you have $100,000 sitting in the bank earning an interest of 7% p.a. If you can sustain it for twenty years or more in the bank account, you will be earning $7000.00 every year or $583.33 every month for that whole twenty years or more tenure. Isn’t that wonderful?

Now that you know there are two different types of income, which type do you prefer to have? You know it so, go ahead and make your own money.

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Process of Making Your Own Money

2008-12-16T05:49:00.000-08:00

The Make Money Process

Aren’t you tired of having a job? Typically this is what happens when you own a job. You will wake up in the morning, go to work, and come back home in the evening and go to bed and sleep at night. Then the next day comes, you wake up again, go to work, come back home in the evening, and then you sleep again at night. Then you repeat this process all over again the next day, again and again and so on for many, many years, if not for decades until the day you retired. This process is no different from a robot’s life.

What really sadden me most is that I am seeing a lot of people doing this without themselves even realizing it. We are human beings, and not robots. We are not supposed to behave like robots, should we?

I do understand that many people simply cannot afford to lose their jobs. They got their house and car installments to pay, they have utility bills to pay, they need foods to survive, and their kids have to go to school etc. But there is always a way to get around this. But this depends on individuals as well, the younger you are, the easier it will be and the less debt you have the easier it is as well. You have to start learning this as soon as possible, if possible, today, because time is running out. Time is always the one thing that no matter how much money you have, you can never buy it. There are so many people out there that are wasting their time or are giving away their time so freely. So start learning the other ways of making money apart from your job.

There are actually many ways you can make money other than having a job. But the concept behind the process of making money is always the same. It is the process of creating more money, and then to breed the money to get better returns and finally to preserve what you have made. The process of making your own money is summarized below :

i. Create Money
ii. Breed the Money
iii. Preserving Money

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Reasons why you don’t need a job

2008-12-16T05:46:00.000-08:00

Reasons you don’t want a job

Have you ever wonder why you are going to your workplace to work every morning just like everyone else? Aren’t you tired of waking up and rush off to work everyday like this after so many years, if not, decades? Haven’t you think of a better solution? If you really think hard, you will find out that it is our society that has made us like this since a very long time ago. Since the beginning of the industrialization era, booming industries and factories hire a lot of people to work for them, therefore these people become the workers of the factories. After so long till today, the mindset of going to work has already been pre-programmed into us the day we were born without us even realizing it. That mindset has been so strongly and deeply programmed into us that it has already becomes our second nature.

If you do not believe me, just look around yourself, perhaps your relatives, or maybe your neighbors. Everyone after getting a college or university degree, will automatically start looking for job. Looking for a job is automatically the next target.

So what’s wrong with having a job you might ask? There isn’t anything wrong with having a job. It is just that, it is not the most efficient way of making money.

Reason #1

Time Having a job means you are trading your time and skills in return for money. Your employer will pay you for both the assets you contributed. And so, having a job means you will be having less time for yourself and to be with your loved ones. A minimum of eight-hours a day job already means that more than half your day is gone. With this, I haven’t even considered the time it takes you to go to work and back, it will be more depending on where you stay and how near you are to your workplace. You might also have to pay for your own parking, toll roads, traffic jams and most importantly, your precious fuel. Although all these factors might vary between individual, some would take public transport, some might have free parking, and etc. and if I were to sum them all, it would be quite staggering. Don’t forget we human need to sleep 8 hours a day as well.

Reason #2

Income Taxes In this country on average where the income tax is so high, having a job will mostly result in almost half the amount of your salary paying for the government. That is, in other words, you are working for almost half a year for the government for free. You see, this amount is gone long before you are even able to touch it and that's ridiculous.

Reason #3

No Control By having a job, do you think you have control over what you owned (the job)? You have totally zero control over it. Can you guarantee that you will not get fired in the next 1 year, 2 years, or 5 years perhaps? Absolutely not, you can’t control when you want to work or not, you can’t control how much you want to earn and you can’t control whether you can get a promotion or not. So, other than the linear paycheck, there is really nothing to shout about by having a job.

Therefore I strongly stress that a job is truly a waste of time, energy and all the efforts of chasing for increments and promotions. It is really not worth it and for the good sake of yourself; you really don’t need a job. There is no freedom. Life is already so short and you are still wasting all the precious time for such little return. There are full of opportunities out there. Opportunities are abound everywhere. There is always a better deal than having a job.

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Welcome To Reaping Profit

2008-12-16T05:45:00.000-08:00

Welcome to "Reaping Profit" site. Your resources and guides on how to make your very own money without you having a job.

The Problems Of Having A Job

2008-12-16T01:53:00.000-08:00

Job Problems

The problem with owning a job is that you are trading your precious time and skills in return for your employer’s money. Didn’t you realize that what you work for in the jobs you have done is in fact really not worth what you are being paid?? My methodology is that your pay is determined by how much you are worth for doing that particular job. Also note that your employer is in a business and a business is to make money and turn a profit. So in other words, your pay should be determined by how much your job has contributed in churning out the profit for the company. There goes the equation (simplified for easier understanding):

Of course the equation is over simplified. There may be other factors that affect the equation like maybe the company just got a great deal from obtaining supply of raw materials at special prices or got a good investment deal and would like to declare more bonuses etc. But in normal job circumstance, there is no way that your pay will be far beyond than what your job has contributed to the company’s profit. That would mean the company is losing money hiring you which is unlikely to happen. So think really hard. Why do you need a job? Isn’t it better to make your own money instead of relying on your employer and knowing that your pay will be slashed almost by half to the government as taxes? Prepare yourself to get ahead, know the problem and stop relying on having your job.

Charge Card : Silver vs Gold

2007-10-16T03:12:00.000-07:00

The eligibility and requirement to apply for a gold charge card is greater than that of a silver (a.k.a. classic) card. But with colours aside, there are not much difference between these two cards. The main difference is just the extra benefits of insurance coverage that comes with a gold card. Typically, you will get two to three times the coverage for travel accident, flight and purchase protection policies.

As can be seen, most of the extra benefits of gold card are travel related. As such, if these extra benefits do not bother you much or your do not travel often, it is a good idea to stick to silver card as the annual fees of gold card could double or more of the silver counterpart. Unless if the gold card is free (with annual fees waived), then having those extra benefits won't hurt.

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Taking advantage of your charge cards

2007-10-16T02:59:00.000-07:00

By trying to charge everything you buy with your charge cards wherever you can, it provides a way to record all your expenses and consolidating them into one single statement for free, so settle all your charges every month and take advantage of it.

Advantages and disadvantages of charge cards

2007-10-16T00:28:00.000-07:00

The use of charge cards (a.k.a. credit cards) has been ubiquitous and is becoming an ever bigger part of our daily life. There are several advantages of carrying a charge card.

The main advantage of having a charge card being that it allows us the convenience of buying items or services without carrying cash and it also allows the convenient of ordering things by post or telephone. Most obviously, it is also a must-have for shoppers to shop online. Another major advantage of charge card is that one has the ability to withhold payment for merchandise which proves defective.

However, charge cards also has its drawbacks if misused. Due to the ease of use of charge cards combined with impulsive buying habits, hence, one might easily overspent their credit. And with the use multiple charge cards which most of us nowadays used to, we might be digging ourselve deeper into debt day by day. In fact, charge cards is also one of the most expensive way of obtaining credits due to its high interest rates charged. And not to mention, losing a charge card might even be more troublesome as they create inconvenience and incur more expenses for a replacement to be made. Unauthorized charges made to one's charge card may also take a while to resolve.

Therefore, as a good rule of thumb, use your charge cards wisely and always pay your bill on time.