November 19th, 2008 — Diversification, Income Streams, Money, Personal Finance
Every single one of us would be thrilled to have more money coming into our homes every month. If you’re relying on one or two paychecks as the primary earnings for your income, you can relate that it’s pretty tough to get ahead. Everyday expenses chip away at our standard incomes and unless you manage to get a big promotion, chances are you’re going to be treading water for a long time to come.
How about, instead of just your regular paycheck, you were able to have several different income streams every month? That sounds pretty good, right? The main problem for many people is that they don’t have enough money to make new money. That old adage is more true than ever and if you don’t happen to be independently wealthy, it can seem as though you’re never going to break that cycle of living paycheck to paycheck and get ahead.
However, there is a very smart way that absolutely everyone can use to start making more money. While most of us are familiar with how debt works, it has gained a pretty bad reputation. We tend to look at debt as though it is an evil thing, and something that should be avoided at all costs. While this is true to some extent, especially if you are using your debt in the wrong way, there is a form of debt that is actually quite beneficial.
Good debt is debt that you leverage to create something. Bad debt is money you spend on credit for things that are completely useless. Let’s look at this way. You can go into debt to invest in a business or a stock, and then have it return your original investment ten fold, or you can go into debt to buy a flat screen television that is never going to do anything more than provide entertainment and collect dust. This is the main difference between bad and good debt.
Debt, when managed properly, is the key for many of us that want to make more money. Even the richest people on earth had to start somewhere. The best stories of the self made entrepreneurs always include the part where they had to get a loan, either from the bank or a friend, to invest in something they believed in. Years later that debt paid off big time in the form of millions of dollars. This exact same technique will work for anyone, provided you make smart investments and don’t overextend yourself initially.
To recap, debt is not necessarily the root of all evils, unless it is improperly managed. If you’re using debt to buy things you really don’t need, then yes, it’s going to be a problem if you overspend. However, if you are leveraging that debt into investments and opportunities that will create new streams of income, you are getting the benefits that so many entrepreneurs have already reaped to get where they are today.
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July 10th, 2008 — Income Streams, Money, P2P Lending, Personal Finance, passive income
In the past, creating multiple streams of income required a lot of footwork and there were few passive stream opportunities available. However, thanks to the Internet, it has never been easier to create multiple streams of income online and many are passive! Let’s go into a few ideas that you can use to start your own income streams right now.
1. Blogging –
This is far from passive, but if you’ve got something to say, you can make money at it. It has never been easier to create a solid stream of income that can bring in a few hundred dollars a month or even more. Programs like Google AdSense can easily bring in that much and you never have to lift a finger (other than writing and networking like a madman). While there will be some expense involved, especially for marketing your new blog, it is minimal and much less than you would pay for other opportunities.
And why stop at one blog? If you’ve got a lot of interests, you’re just full of untapped potential. Start a blog for each one and take the time to build up your audience. You can easily turn than few hundred dollars into a few thousand dollars a month. For some people, that may be more than they make at their full time jobs.
Your opportunities don’t stop with advertising. You can join affiliate programs, set up your own products or keep branching out. The sky really is the limit when it comes to this type of income stream; however, passive it is not.
2. Peer to Peer Lending –
This is an interesting and potentially great way to make money online. Depending on your particular lending strategy it can even be fairly passive. There are numerous peer to peer lending sites that are seeking lenders and investors. You don’t need to be a bank – all you need is some cash and the stomach to take a little risk. Be sure to follow my tips at Making extra money with peer-to-peer lending.
3. Informational Products -
If you’ve got an idea or expertise in an area that is popular, write an ebook and start selling it online. You’ll never really have to do much work after it’s written and marketing costs are usually quite low. Your book will just keep bringing in money month after month. What is more – you’ll be building up an audience for future books to make even more money.
If you don’t want to write your own, there are numerous pre-written ebooks on every subject under the sun. You can purchase the resale rights and start making money right away. This is perfect if you want a nice little stream of passive supplemental income. Just remember to keep offering new books so that your market doesn’t stagnate.
4. Bonus Tip -
Combine tips 1 and 3… By adding an eBook to your blog you can potentially super charge your readership growth. Here are 2 examples of blogs trying to do just that… SF Boater with the free eBook Fishing in California, and Handyman Fix Home Repair with the free eBook The DIY Handbook.
These are just four ideas that can start bringing in income right now. There are countless others that are just as easy to implement. If you want to start making more money, the web is the first place to start.
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June 17th, 2008 — Diversification, Income Streams, Money, Personal Finance
One of the main problems facing those that have multiple streams of income is managing them. You can start to feel a bit like a juggler and chances are, you may be neglecting areas that could be performing better and making more money. Focusing can be tough, but there are easy ways that you can keep track of your many income streams and make sure that they are all performing up to snuff.
1. Set aside a few hours every week to collect reports.
One of the main keys to staying on top of several income streams is to keep tabs on them every week. Set aside a few hours to focus on the returns and keep track of how each one is performing. You can use special software like Excel to make it easier to keep track of how each one is doing. The added benefit is that you can start to spot trends each week and you’ll know when it may be best to move on to a new opportunity.
2. Keep a paper log of all activity.
While it’s certainly find to keep track of everything on your computer, there is a lot to be said for keeping hard copies of everything. First and foremost, you may need these for the IRS and secondly, we read differently on paper than we do on the screen. You won’t run the risk of missing important information and you’ll have an easy copy for reference at any time. Don’t forget to make disc copies of all of your information as well. You should store your paper copies and your backup disc in a safe place that is fire resistant for extra security.
3. If necessary, minimize.
If you’re running too many streams at once, it can be nice for your bank account, but very hard to keep track of. Find ways to consolidate your income and reporting and if necessary, you may need to drop some of the streams that aren’t performing as well as others.
4. Get passive.
If you’re trying to manage several active streams of income, chances are you’re probably spread pretty thin. Try to diversify and add more passive streams so you don’t have to work so hard. Passive income is a lot more fun, and you’ll be able to spend more time on other things in your life that are even more important than making money, such as your family or hobbies.
5. Get some professional help.
If you’re just too swamped to manage everything on your own, or if you find that you have fallen behind, it’s time to enlist the help of a professional before it spirals out of control. Consider working with an accountant or a financial planner that can take some of the burden off of your shoulders for awhile. This is especially helpful if you are going through a period of extra work or you need to be able to focus on other areas of your life for a few months.
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May 20th, 2008 — Cash Flow, Debt, Diversification, Financial Security, Income Streams, Leverage, Money, Wealth
I would like to thank LazyMan for tagging me with in his 6 word memoir: Money - freedom to do almost anything
By being tagged I need to write my own 6 word memoir….
Financial Freedom Equals Cashflow Leveraged Wealth
I think the statement says it all, but to expound a little… financial freedom is one of the most universal monetary goals of any individual, family, or corporation. The way to achieve financial freedom quickly and securely is through the use of leverage and cash flow management. Creating multiple diversified income streams of ever increasing cash flow using leverage of existing cash flow, assets, interpersonal network, and even debt.
And To Tag a few people to write there own 6 word memoir:
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