Free eBook!

Latest Products

Why Saving Money is not the Solution

If you listen to the media and the financial gurus that have space on national TV, you will hear the solution that is given to all financial problems one might have: save more money, and you will have a million dollars or more after 50 years.

In their fantasy land, financial advisors tell you that saving a laté every single day will propel you into millionaire status as you get older.

A lot of people think that this is a difficult advice, that it is pretty hard to save this money everyday, while at the same time denying ourselves small pleasures. Well, it seems hard, but the only reason they give this advice is that this is the easy way of making a fortune, and also, more importantly, because it is all a fantasy.

World of La-la Land

It is a fantasy because you don’t become a millionaire by saving a few cents per day. Although I recognize that money adds up, and you want to use this to your favor, it is hardly enough to save little money. To get rich, you really need to make lots of money, and then save it as you go.

The reason this is the easy path is that it requires no knowledge, no special effort. Just deny yourself something for a long time, and you will be an automatic millionaire (in fact, this is the name of a famous book in this area).

What these people fail to tell you is that you cannot get millionaire like this for several reasons:

It takes so long to become millionaire this way (40 to 50 years), that a million dollars will not even be a lot of money. By that time, $1 million will have the purchase power of less than $500K ¬†— and this is the optimistic view. It will probably be more like $100K, which you can easily spend in one year.

In fact, people started already to say that $5 million is the new $1 million, since a million cannot be used to maintain a good life standard by itself.

The other reason is that you don’t save money every month like this for your whole life. There is always something that may happen: an accident, a lost job, a big loss in the market. All of these can reduce your capital and make it even harder to achieve your millionaire dream.

What Really Works

What really works is what every rich person knows: create assets that generate a lot of money. The asset is usually a business, but can also be real estate, books, or other types of money generating assets.

If you are not creating one of these assets through your work, it becomes really hard to become rich. In other words, the solution is not to save in the first place, but to generate wealth, and then save it to make it last. This is the plan that made the fortunes of almost all rich people out there — with the exception of lottery winners. If you expect to become rich from a job, you desperately need to do something else, unless you’re able to become CEO of a major corporation.

How to Make Easy Money in Less than 1 Hour

Everyone thinks that making money is a really hard process. The main reason they think this, however, is that the only way they have is the hard one: a job.

For example, if you tell me that you make $100K per year, then this probably means that you think you can make $50 per hour. But what if I told you that you can make $1000 per hour?

You would probably look at me in disbelief, because you know that $50 is the norm! Well, this is the problem with jobs, they train you to think that you can only make a specified amount of money…

The reality is that there are thousands of ways to making money. Each business is a different way of making a profit, and there is nothing preventing you from doing the same. The only thing you need is to decide to take the opportunity and make it happen.

Using the Internet for Wealth Generation

Take the example of the Web. Creating an online business is the simplest way to reach a large number of people. You can use methods such as online marketing to find customers and shape the product that they want. All this can be done very quickly.

If you listen to traditional web marketing people, they will tell you only the most common methods of generating money on the web, such as eBooks, web sites. Nothing against these methods, but they are not the only ways.

Nowadays, one can create whole new businesses, delivering software, music, even traditional goods, using the web. It is a whole new way of creating businesses and generating wealth that anyone can have access to.

Finding Clients Anywhere

The only requirement to participate on this wealth creation system is to be creative and to use the Internet to find clients, wherever they might be located. Once you find clients and keep contact with them, using email, Facebook, or other means, you can launch products that make $1K, or even $100K per hour.

More frequently than not, if you use the web to advertise your product, clients will be waiting for your release, instead of the other way around. Therefore, you see that the prospect of making a lot of money in one hour is not something hard to achieve, but a concrete possibility.

Cashing on the Recession

Wealth generation is a process, not a single event. Therefore, you cannot wait to make money only when the economy is doing well. You have to use all opportunities that are available when the economy is going north or south.

The incredible thing is that there are opportunities in all kinds of markets. To start with something easier to grasp, consider the stock market. It is true that most people lost a lot of money in the last recession, and they are still trying to recover from the big losses occurred during that time.

Making Money on a Downturn

However, investors that understood a little more about the market were able to make money with all these problems. There are several strategies to do this but consider this simple one: sell your stocks when you see that a recession is inevitable. Then, wait a few (or many) months until the price of stocks are hammered down, the same way we saw last time. Then, use your cash to buy stocks are much less then their original price.

Investors that followed this simple strategy made at least 50% on their investment, without lifting a finger, just at the moment they bought stocks back. But then, after little more than a year, stocks rebounded to almost the double of the price. This means these investors more than doubled their capital, all due to a recession.

Other people did even better by going short on stocks, or buying options. All of these seem risky and  complicated, but are just ways of getting more money when you need.

Making Profits in All Areas

I want to emphasize that this applies not only to the stock market, but to everything else. A recession may be a great opportunity for investing, as long as you avoid being trapped. The recession is really bad for people that are on the short side of the economic life — for example, people with much debt, and in companies that are losing jobs.

But if you can manage well during a recession, it can be a wonderful time to invest. This is the philosophy of great investors, for example Warren Buffet. He always has so much cash in hand, that a recession is just a great opportunity for him to make a lot of money, at the expenses of big corporations such as Goldman Sachs.

There are some practical ways you can explore downturns to your advantage. For example, you can use the opportunity to start a business. While it is true that fewer people will be buying, it may be a good time to start, because when the economy comes back to life you will have a huge improvement in profits.

Another way to profit is to use your savings to buy productive assets that are now costing less. Real estate is the big example now: you can buy a home sometimes for 50% of the price you’d pay for the same place three years ago.

Page 20 of 34« First...10...1819202122...30...Last »