Making lots of money

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 someone else.

• A lot of people work incredibly hard, and they might earn good money, but they never have the time to enjoy it.

(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 be useful.

• 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 get both....

• 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 property.

• 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.