Does this sound familiar? Because if you’re in the same boat as most Americans, it should sound familiar. We aren’t exactly sure what vehicle brought us to our current destination, but we know we don’t want to be here any more. And Uncle Sam’s coming to rescue us. We just have to wait for him to come pick us up.

Only thing is…from past experience, we know we shouldn’t really trust Uncle Sam.

If you’re grounded in reality, you’ve learned to have a healthy distrust of government (in general) and you haven’t forgotten that these people are just people, and they’re fallible. They make some huge mistakes and do the wrong thing, often. They lie. And they do not want to look bad.

[And to make everyone out there happy, lest you think I'm about to bash the messiah Obama, I happen to have the same level of distrust for the Bush gang. So there. Now just listen for a minute, and consider what I have to say.]

I do not care what the major media and government is telling us about the financial crisis – it simply was not caused by the “free market” and cannot be blamed on corporations. When you hear blame being connected with artificially-low-interest mortgages, that’s closer to the real cause – but not quite “there” yet.

The blame should be leveled solely in one place, for just about everything: the Federal Reserve. Specifically, the system of worthless paper money the Fed controls. We’ve been living on borrowed time for years (even now!) and I don’t care how good of a speaker Obama is: injecting more worthless “money” into certain sectors of our economy can’t heal the patient. (Remember? It’s already dead.)

The real reason our economy is failing can be traced to the Fed. The Federal Reserve Bank is the originator of our miseries, and until we have “real” money again and actually allow such a thing as the “free market” to exist, we’ll continue to suffer.

Now, I’m not an authority. (Not that that means much, since the “authorities” don’t seem to know much, themselves.) But I make it my main interest to deal in common sense and wisdom wherever I can find it, and I’ve found quite a bit of actual truth being given out. There actually are some sane thinkers out there who care enough to explain how it all works, and what’s going on.

I just read the book Meltdown by Thomas E. Woods, for one – and I have to say it’s the best explanation of economics I’ve ever seen. (Chapter 6 – “Money” taught me more than I ever learned in school.) Just go get that book; I guarantee you will find it to be extremely eye-opening and valuable. You WILL have a clear understanding of the economy after reading this short book.

After you grab that book and read it (please read it – it’s packed with info, and not too long) just listen to some of the guys who’ve proven they know what they’re talking about. (No, not that Bernanke clown.) Guys like Jim Rogers for instance.

Sane economic practices will become obvious to the mainstream, one day. My only hope is that we don’t have to suffer enslavement, total ruin, or a one-world currency takeover before we get there – and we lament what “could have been”.

After all, when you look in the business section of your local Barnes & Noble and see how many books (basically) address this concern, it has to be the “main thing”, right? Right?

Not necessarily. I would have you take a look at the problem from a slightly different angle and consider another way to approach the problem.

First, ask yourself the question:  “Am I charging enough for my services?”

Yes, you read that correctly. The problem may be with the class of clients you’re currently getting – and by charging more you will definitely be abandoning them, but the “positive” is that you’ll be classifying your business as one that serves a higher class of client.

I have to quote a commenter on a blog a read.

I asked a friend once, “how do you get those huge contracts?”. His response: “charge a lot”.

His point, obviously, is that when he charged more than the next provider he appeared to me a better provider.

The principle of “perceived value” isn’t a made-up fairy tale – it’s quite real and can have definite effects on your level of business and type of clientele.

So, in short, the answer to your problem of “not enough” may have more to do with quality than with quantity. And as risky as it may seem, sometimes raising your prices may be the answer.

While I was thinking about some of the ones who really stand out, I discovered that they all have a lesson or two we can learn (as entrepreneurs). Here are three I picked out, along with the lesson they teach:

Robert Rodriguez. The lesson? Screw people who say you can’t, and prove you can do it yourself. Rodriguez is best known for his later movies, like Spy Kids and the recent Grindhouse collaboration with Quentin Tarantino. But I discovered him when I saw a movie lent to me by a friend of mine (on VHS). It was a low-budget movie called El Mariachi, and it blew me away. I remember thinking: “the guy who made this has balls”. Rodriguez is one of the “VCR directors” – a director who largely learned how to direct by watching a lot of movies. He didn’t go to film school, then do things the “traditional way”; he just DID it. He wanted to direct cool movies, and as far as he was concerned…he could. And I think that’s an inspiring way to view anything in life.

Russ Meyer. The lesson? Fill a niche, and serve the market what it will buy. Russ wasn’t one of the classiest movie-makers. He wasn’t one of the best, either. But he knew what kind of movies people would pay money to see, and he knew what he needed to provide. In case you’re not familiar, his product was pretty much the same in every movie he made: big boobs. Yes, Russ Meyer was a true DIY movie producer and he had the rebellious, irreverent attitude that usually goes along with being a do-it-yourselfer. He made a whole bunch of movies that featured well-endowed women, and his movies remain cult classics to this day – selling still, after decades.

Johnny Depp. The lesson? Fulfill your vision and be true to yourself. Since I was a kid, I’ve always admired Johnny Depp. My sister took me to see Edward Scissorhands when it came out, and even then it was obvious that it was not a conventional movie. I followed Johnny Depp’s films since then. I haven’t always liked his movies, but more often than not I could see some level of genius or artistry in what the film represented or in how Depp performed. I like that about him: he’s willing to do things that not everyone approves of, because he wants to do what he feels is best for him (as an artist, or performer). Shouldn’t we all have a bit of that in the way we live our lives? I think so. If we did, I believe it would lead to more fulfillment and more purpose.

These are fairly simple lessons, but I think if we took each of them to heart they could be life-altering. For an entrepreneur, they could be phenomenal lessons in profit and success.

In no particular order…

1. You don’t have to be rich, but it’s necessary to have enough. Deprivation and poverty aren’t anyone’s idea of success. The key is to be satisfied with enough and make wise financial decisions. Think before you buy; learn to control your “wanter.” Remember, too, that the direction you are going in is more important than where you have been.

2. Have meaningful relationships. Many people work long and hard at their careers or running a business. If only this much effort goes into their relationships with the people who matter! Learn to communicate. Say the things you should say. Make time for people. Make memories with people.

3. Be benevolent. Volunteer. Mentor. Invest your time and money in something you believe in. People who are involved in humanitarian causes are more satisfied and have an easier time seeing the big picture.

4.  Be trustworthy.  Keep your word; honor your commitments.  Then people will respect and honor you.  This is key in having a successful life.

5. Live on purpose.  Too many people live without thinking and end up somewhere they do not want to be because they neglected to think about what they really wanted.  Too many commitments, the wrong career,  wasted time and money- all because they never stopped to consider why and what they were doing.  Live consciously.  Periodically evaluate your life and then make adjustments.

6. You need time.  Everything in our life takes time.  Many people never get around to doing the important things because they were too busy.

Success is living a satisfying, fulfilling, meaningful life. In all aspects. Balance.

What IS the Underground Economy?

Basically, an underground economy is one that exists alongside the mainstream economy, but doesn’t participate in things such as registering licenses, paying taxes, or submitting to other aspects of the official “mainstream” economy/tax system. This “shadow” economy is more streamlined and more profitable to the participants while less profitable to the government. Am I advocating this shadow economy? Dear heavens, no – I would never do such a thing. I’m only commenting on what has undoubtedly become more commonplace in these hard economic times.

The simple fact of the matter is that while people have less money, they will look for other means to gain income, and those methods of income-generation will often be unconventional and will be done “on the side”. These methods will include barter and trade in addition to cash-payment income.

Is the Underground Economy “Criminal”?

Underground money-making methods will often include things that are totally outside of the law. During the past few months, there has been a notable increase in home marijuana-growing (with intent to sell the crop) as well as prostitution among previously-unlikely candidates (such as housewives or older women). Just do a search and you’ll find a lot of instances of these. In one article, I read that the “authorities” have found about a five-fold increase in home-grow operations (of pot). It’s a good indicator of what people are willing to risk in order to maintain their income in hard times (in my opinion) – but the risk is outweighed by the legal costs involved if/when one gets caught doing something illegal!

If you want to hear some actual interviews of people making money “underground”, there is a great series done by the radio show “Marketplace” a while back. You can listen to the series here. Even though it’s a bid dated, most of it will be informative and applicable.

Can People “Legally” Work in the Shadows of the Underground?

There are methods of making money within the underground economy that won’t get you arrested, and could be just as profitable. They are still “shady” due to the fact that participants in the underground economy are trying to avoid taxes – but that’s a matter I won’t discuss here nor advocate. Let’s just say, the whole point is to keep as much as possible to yourself when you’re doing things this way.

Some methods of generating income would be selling things at local farmer’s markets and craft shows (for cash obviously). These could be crops but also items that are homemade – soap, jellies, gift baskets, or other products. At a weekend market in my city I’ve seen people selling everything from homemade wine, to candles, to produce, to snacks including hotdogs and drinks. Are all these sellers dutifully reporting what they’ve earned? I can’t say – but I see that many of them could just pocket the cash and the “state” would be none the wiser.

Are there Quasi-Underground Methods of Making Money?

Some people would rather operate a “legit” business but also make some “underground money”. Some of these other methods of cash income involve “side income” within a legitimate, registered business. Some prime businesses for doing this would include restaurants and bars (classic examples of businesses infused with a great deal of hard-to-track cash transactions) as well as peripheral cash-only businesses such as laundromats, self-serve car washes, and vending machine routes. These all require some sort of initial investment – including a lease. But if one has a business such as these, there’s a lot of wiggle room in what is reported. A lot of room to stay in the underground economy.

But for people with little or no assets to begin with, there are still many options. If all you owned was a car, a bucket, and a vacuum cleaner, what would you do with it (assuming you were forced to make money for yourself)? A mobile car detailing service is the right answer. Again, you would have ample opportunities to be paid in cash with a business like this. Similar services could be offered with dog-grooming, housecleaning, aquarium maintenance/cleaning, pool cleaning, and then of course lawn care.

Can Employees of Others Make Underground Money?

But what if you wanted to just work for someone else? The best sector is bartending, then waiting tables, and then probably working in a delivery capacity. Bartenders are notorious for many tricks (devised to put dollars in their pockets) and it’s almost expected that they will not be above-board with what they report (as far as tips). Not everyone is suited to be a bartender but for those who have the personality and people-skills, it’s an easy way to earn a lot of “underground” cash. If you want to learn some of the tricks of the trade, the authority book on the subject is called How to Burn Down the House: The Infamous Waiter and Bartender’s Scam Bible by Two Bourbon Street Waiters. (Even if you’re not in this industry, the book is very fun to read and education on more than a few levels!)

Where Can I Learn More About the Underground Economy?

There are many lessons that can be learned about how the underground economy works, as well as what opportunities exist within the underground economy. The people from which to learn these lessons are immigrants (Vietnamese and Korean immigrants being the examples I have in mind) and blacks living within the “inner city”, ghettoes, and projects – you can SEE the underground economy by driving through on a typical day (haircuts being given on porches, hand-made signs advertising BBQ for sale, all kinds of literal “cottage industries”).

If you want to really get knowledge of the how, why, who, and some specific ways of participating, you can start with a few books:

Ragnar’s Guide to the Underground Economy

Deep Inside the Underground Economy

Living Well on Practically Nothing

Under the Table and Into Your Pocket

* Disclaimer: the links to these books go through my Amazon Associates account. If you purchase via these links, I receive a small percentage of the sale – which I appreciate very much.

If any of you guys have ideas or links to good resources on making money “underground”, please post them in your comment.