So you want to make lots of money?? Yeh, so do I. So
does the other half. So guess what, we're going to give
it a go!
What have we actually done so far??
Well I have to confess we haven't been brave enough
to tackle the stock market, and our mortgage is fixed
until July this year (and is on a good rate) so we're
waiting until then before we look at re-financing with
the potential of a credit line for property investment.
What we have done is set up our own internet
based business, this website being part of that. We
are making money through affiliate marketing which you
can learn more about in my career
options - internet based businesses page.
I also bought a copy of the Rich Pom's guide to making
money through the internet and although I haven't followed
it step by step, we are basically doing what he says
and still have a lot to learn about selling our websites.
I believe his approach is fundamentally valid. He obviously
makes money through people buying his guide, but the
underlying business concepts are the same as the other
half has been using for the last two years.
We've also read a lot, and talked a lot, and here's
what I've learnt so far...
- You are never going to make a fortune working for
- A lot of people work incredibly hard, and they might
earn good money, but they never have the time to enjoy
(Our goal is to have the work life balance we want
with enough money to pay off the mortgage, provide for
the children, set ourselves up for a good retirement,
have some nice holidays, and basically not have to worry
about our finances.)
- To earn good money and get a good work life balance,
you need your money to be working for you while you
are sleeping. How? This could be through traditional
investments such as property or the stock market,
or through owning your own business and having other
people make the money for you. Or it could be selling
something over the internet, which has a worldwide
audience and is automated so you don't need to be
on the end of a phone line or in an office for the
cash to come in.
- You can have a lot of assets, but still be poor
from a cashflow perspective, and therefore unable
to live the life you want day to day. Look at how
interest rate rises affected the 'richer' sector of
the population. There were people with multi million
dollar houses, boats and several cars, who looked
'rich', but in reality were struggling to service
the debt associated with those assets.
- You really need to know what you are doing if you
invest in the stock market or the property market.
- You should seek qualified, preferable independent,
advice before investing. More than one source would
- For example, if I took the advice I have read recently,
I would be looking for a property with positive
cashflow. According to the book, most people,
when buying an investment property, look at the negative
gearing, and what tax breaks they can get from their
investment property. A lot end up paying out on their
investment property week by week at the end of the
equation. What you need to look for is positive cash
flow, partly produced through negative gearing.
- However, If I took the advice from a mortgage advisor
I met recently, she said you'd be lucky to find a
positive cashflow property in a long term growth area
and you need to be prepared to pay out on your investment
in order to get that long term growth. Maybe you can
- You need to be unemotional about your investment.
It is a business decision, not a personal one. You
must apply logic and not emotion in your business
decision. e.g. when choosing an investment property,
the temptation is to buy in an area you know and like,
with a house that you feel good about. Wrong. You
need to look at the best area to buy in in terms of
investment and returns. A property that would be perfect
for you and your family, may not be the ideal investment
- You need to be prepared to take a risk. How much
of a risk is up to you, but you need to start somewhere.
- A lot of people work hard to pay off their mortgage,
but what they don't do is take advantage of their
biggest asset - their property, and use the equity
in that property to help accumulate more money.
- It is all about your attitude. If you believe you
can reach your goals, you will be able to. If you
think you will fail, you almost certainly will.