In spite of all of our economic woes, there are still over seven-million millionaires in America…and you can be one of them, even if you are an ordinary Joe.
Chances are, you cannot throw a football sixty-yards or sing like a songbird. You probably are not going to inherit a half-billion dollars or create the next Microsoft. The lottery is not likely to smile upon you and you probably are not interested in stealing a fortune from somebody else. Good news! You don’t have to fit into those categories to attain wealth.
The first thing you need to do is adjust your mind set. When it comes to getting more money, people tend to think in terms if getting a better job, a raise or a part-time job. Those are honorable and worthy approaches, but they all come with limits. One can only get so many raises and there is only so much time to work.
The key to financial security lies in building “Passive Income”. This is money that visits you each and every month, whether you work or not.
When you hold a typical job, you go to work and on payday the boss hands you a check. To get another check, you have to repeat the cycle. You have to go back to work or you run out of income. But what if you could get somebody or something else to send you income every week, regardless of whether you get out of bed in the morning? Wouldn’t that be a lot better? It is not difficult to do.
Let me give you a few examples:
• I have a pop machine at an apartment building. There are 102 apartments. The average apartment contributes about $2.20 per month in profit to me. I have to buy the pop and fill the machine about twice a month. If I was to go get 100 accounts like that, the monthly income would be approximately $22,440. I could hire three people to do all of the work. Two of them would service machines and the third one would do all of the other stuff, like acquiring the pop, warehousing it, bookkeeping, machine maintenance etc. I would pay each one of them $4,000 per month, which would still leave me a nice passive income of $10,000 per month. (If you are asking yourself, “Why doesn’t he just go do that?” the answer is because I have other better options.
• Most of the time, when a consumer acquires a new computer, they end up paying Bill Gates for the software. But Mr. Gates does not have to sit down and design new software for every new customer. He simply employs talented people to attend the details while he enjoys the passive income.
• Every county in the land has tax certificates for sale. These are ultra-safe documents that pay nice returns (at least 10%). There is practically no management necessary to oversee these revenue generators.
• If you buy a CD at your bank, you automatically receive interest income whether you work or not.
• If you have a rental property, your tenant will go to work and contribute the fruits of their time to help pay off your building for you.
IT TAKES MONEY TO MAKE MONEY
In each of the above examples, it takes money to make money. This is the point where most people tend to bog down. They think “I don’t have enough money to buy 100 pop machines” and so, their dream dies before it ever begins.
Their mistake is in their original assumption. When they think in terms of “it takes money to make money”, they wrongly assume the investment dollars have to be “their” own dollars. Naturally it helps if you have a pot of gold sitting around waiting for you to invest, but that is not necessary. There are all sorts of people who will give you their money to invest.
For example, perhaps the guy that sells pop machines will finance them. You make a monthly payment to him until the machines are paid off. Used machines cost about $750, so it would only take 6 months to pay off any given machine.
Perhaps you can get grandma to lend you some money. She may have a savings account somewhere that is paying her a modest return. If she would lend some of it to you, you could pay her a higher rate and you both come out better.
If you have respectable credit, you can get a loan from your own bank or a credit union.
Perhaps you know some other person who is fed up with the stock market and he or she would consider being your silent partner. They put of the money and you guarantee them 5% on their money plus 10% of the profits.
In the example of the rental property, a mortgage lender loans you the money to buy a property and a tenant pays it back for you (this is my investment of choice).
There are other possibilities for the person who thinks it through.
Finally, I would suggest that you do indeed have some of your own money to invest: You just may not realize it. For example, if you are paying for the wrong type of auto insurance, a quick modification to your “deductible” or by dropping comprehensive coverage, you could use that money to invest. Or if you stop at Starbucks every morning for a fancy cup of coffee, you could forgo that luxury and have a nice income source. What about your cell phone program, your cable TV package, where you rent, that extra bull dozer in the back yard that you never use any more? These are all sources of funds that you can add to “Other People’s Money” and invest for Passive Income.
The point of all of this is that there is extra income for you, if you want it, but nobody else has an incentive to deliver free money to you. You have to put in the effort to get the income stream going. Once you get it in place, you will be rewarded again and again for the one-time effort, unlike the way your boss pays you.
So the choice is yours work for a wage, get paid, and then start over; or, work for passive income and let it roll in over and over,
Finally, if you take nothing else from this article, remember this: It does indeed take make money to make money, but it does not have to be your money.
By adjusting your approach to earning money and investing, you can join the elite group of millionaires bringing the new number of them to 7,000,001 Congratulations.
Chances are, you cannot throw a football sixty-yards or sing like a songbird. You probably are not going to inherit a half-billion dollars or create the next Microsoft. The lottery is not likely to smile upon you and you probably are not interested in stealing a fortune from somebody else. Good news! You don’t have to fit into those categories to attain wealth.
The first thing you need to do is adjust your mind set. When it comes to getting more money, people tend to think in terms if getting a better job, a raise or a part-time job. Those are honorable and worthy approaches, but they all come with limits. One can only get so many raises and there is only so much time to work.
The key to financial security lies in building “Passive Income”. This is money that visits you each and every month, whether you work or not.
When you hold a typical job, you go to work and on payday the boss hands you a check. To get another check, you have to repeat the cycle. You have to go back to work or you run out of income. But what if you could get somebody or something else to send you income every week, regardless of whether you get out of bed in the morning? Wouldn’t that be a lot better? It is not difficult to do.
Let me give you a few examples:
• I have a pop machine at an apartment building. There are 102 apartments. The average apartment contributes about $2.20 per month in profit to me. I have to buy the pop and fill the machine about twice a month. If I was to go get 100 accounts like that, the monthly income would be approximately $22,440. I could hire three people to do all of the work. Two of them would service machines and the third one would do all of the other stuff, like acquiring the pop, warehousing it, bookkeeping, machine maintenance etc. I would pay each one of them $4,000 per month, which would still leave me a nice passive income of $10,000 per month. (If you are asking yourself, “Why doesn’t he just go do that?” the answer is because I have other better options.
• Most of the time, when a consumer acquires a new computer, they end up paying Bill Gates for the software. But Mr. Gates does not have to sit down and design new software for every new customer. He simply employs talented people to attend the details while he enjoys the passive income.
• Every county in the land has tax certificates for sale. These are ultra-safe documents that pay nice returns (at least 10%). There is practically no management necessary to oversee these revenue generators.
• If you buy a CD at your bank, you automatically receive interest income whether you work or not.
• If you have a rental property, your tenant will go to work and contribute the fruits of their time to help pay off your building for you.
IT TAKES MONEY TO MAKE MONEY
In each of the above examples, it takes money to make money. This is the point where most people tend to bog down. They think “I don’t have enough money to buy 100 pop machines” and so, their dream dies before it ever begins.
Their mistake is in their original assumption. When they think in terms of “it takes money to make money”, they wrongly assume the investment dollars have to be “their” own dollars. Naturally it helps if you have a pot of gold sitting around waiting for you to invest, but that is not necessary. There are all sorts of people who will give you their money to invest.
For example, perhaps the guy that sells pop machines will finance them. You make a monthly payment to him until the machines are paid off. Used machines cost about $750, so it would only take 6 months to pay off any given machine.
Perhaps you can get grandma to lend you some money. She may have a savings account somewhere that is paying her a modest return. If she would lend some of it to you, you could pay her a higher rate and you both come out better.
If you have respectable credit, you can get a loan from your own bank or a credit union.
Perhaps you know some other person who is fed up with the stock market and he or she would consider being your silent partner. They put of the money and you guarantee them 5% on their money plus 10% of the profits.
In the example of the rental property, a mortgage lender loans you the money to buy a property and a tenant pays it back for you (this is my investment of choice).
There are other possibilities for the person who thinks it through.
Finally, I would suggest that you do indeed have some of your own money to invest: You just may not realize it. For example, if you are paying for the wrong type of auto insurance, a quick modification to your “deductible” or by dropping comprehensive coverage, you could use that money to invest. Or if you stop at Starbucks every morning for a fancy cup of coffee, you could forgo that luxury and have a nice income source. What about your cell phone program, your cable TV package, where you rent, that extra bull dozer in the back yard that you never use any more? These are all sources of funds that you can add to “Other People’s Money” and invest for Passive Income.
The point of all of this is that there is extra income for you, if you want it, but nobody else has an incentive to deliver free money to you. You have to put in the effort to get the income stream going. Once you get it in place, you will be rewarded again and again for the one-time effort, unlike the way your boss pays you.
So the choice is yours work for a wage, get paid, and then start over; or, work for passive income and let it roll in over and over,
Finally, if you take nothing else from this article, remember this: It does indeed take make money to make money, but it does not have to be your money.
By adjusting your approach to earning money and investing, you can join the elite group of millionaires bringing the new number of them to 7,000,001 Congratulations.
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