April 29, 2009

Why Micro Entrepreneurship

Entrepreneurship is becoming an ever growing discussion on the Internet. Many bloggers (myself included), website owners, eBay business owners, authors, actors and more are beginning to setup their own businesses online. But what is the real benefit? Why bother in the first place? These are valid questions which pave the way for micro entrepreneurship.

Are you really able to have your cake and eat it too?

Being an entrepreneur has a lot of 'perceived' benefits, but their is also a number of complex situations you have to deal with. Some of the benefits include:

Being your own boss.
Working from home.
Earning extra money.
Run things the way you want to.
Be seen as a success by former colleagues and co-workers.

While all of the above are true, they all come with their downsides, namely:

You are entirely responsible for everything in your own business, and don't have a boss to turn to for advice.
You are often working alone, and can miss the social connection.
Earnings may not be regular like a paycheck.
The way you run things might not meet customer expectations.
You may appear to be a success, but under the surface things are not going the way you planned.
Increased levels of stress.
Longer working hours, along with a struggle to maintain the work/life balance.

Micro entrepreneurs generally get to see both sides of this equation at some point during their ventures, but many will still tell you that owning their own business is much more preferable... and prosperous then working for the man.

What is Micro Entrepreneurship?

Micro Entrepreneurship (in my definition) is starting extra small businesses. I previously wrote about achieving by using micro steps. Micro entrepreneurship is a similar process in relation to starting, running, and selling small businesses.

Micro entrepreneurship varies from normal entrepreneurship in the following ways:

Business are run by an individual, rather than a big team (specific tasks may be outsourced).
No capital sourced from outside parties: Minimal investment into the business from the operating party (for arguments sake, we will say no more than $2,500).
Business started on the 'bare minimum' to determine marketability (as opposed to spending time and lots of money writing a business plan then launching to find you had missed something in your preparation).
Profits are reinvested into the company.
Use of free software, hardware, tools and equipment to gain traction without any upfront overheads.
Guerrilla Marketing tactics implemented to increase market share gradually.
Regularly operated part-time, in alignment with employment or other business ventures.
Profits are made one of two ways: Regular cash flow from sales or selling the shares in the business within a three year time frame (usually factoring in time commitment invested and a profit).

Examples of a Micro-Business

What might be seen as a micro business? There are a number of options, but some hypothetical examples may be seen as follows:

An employee who has a flair for being an entrepreneur that starts a blog on Blogger.com software, and slowly gathers followers, using no investment other than a domain name and time to gain traction. Money is generated via AdWords, affiliate programs, links to other businesses, seminars or presentations. Profits are then reinvested to expanded the marketability of the site and to improve the layout and visual appeal for customers at a later date (for examples see: http://startuplessonslearned.blogspot.com/ and http://makemoneyforbeginners.blogspot.com/).
An student who needs to pay their rent next month, who photographs her old 'stuff' lying around the house and lists it all on eBay. Her first load of 'stuff' sells and she pockets $134 for three hours of work. Profits are later reinvested with additional capital into setting up an eBay store, and shipping products from overseas.
An individual who has established business contacts and networks in property investing. He spends his time looking for properties for these contacts, and receives a finders fee for every investment they purchase. Saving up the finders fee will allow him to buy his first investment property, with a positive cash flow from day one.

There are many more but these three examples serve as an example platform. Each of these three hypothetical cases are using what they have (knowledge, unwanted goods, contacts) and developing a micro business based around these strengths. All three have potential to expand upon their initial idea, and all are dabbling into a business with little or none of their own money initially invested.

Micro Entrepreneurship, while able to expand does not always do so. Some entrepreneurs might get three micro businesses to a stage where they are making $1,000 a month each and be comfortable with that. Sometimes these businesses begin just as a hobby that will make money over time.

Is Micro Entrepreneurship right for you?

Only you can answer this question. If you are looking to make some extra money outside of your current job/business and do not want to invest any upfront capital, then maybe you have the makings of a micro entrepreneur inside you. However, ask yourself the following questions before starting out in micro entrepreneurship:

Does micro entrepreneurship match with my goals in life?
Am I willing to accept failure?
Do I have time to invest in these projects?
What am I trying to achieve by getting into micro entrepreneurship?
What is my plan to make this work?
What other alternatives do I have?
If it doesn't go as planned, what is the worst that could happen and how could I overcome it?

April 25, 2009

Finance 101: How to budget

Photo courtesy of emdot

I had a friend ask me the other day if I could help her create a budget to help begin getting her finances in order. Rather than just sharing the answer with her, I thought I would share my opinions with all of my readers here.

Budgeting is something that a lot of people hate the thought of. The idea of only having a set amount of money for each aspect of your life can feel really mundane, or even depressing. Some people would rather live their life in financial ruin than to ever create a budget.

Budgeting does not need to be like this. With a little bit of work and setting up a system, budgeting can even be a bit of fun! Budgets can help you to begin working towards the life you desire.

So what is a budget? How hard is it to budget? Also, how is the best way to set up a budget? Let's look at each of these three questions one at a time.

What is a budget?
'A personal budget is a finance plan that allocates future income towards expenses, savings and debt repayment.' Wikipedia

A budget is a way of allocating the money you receive in to ensure that you can meet all the requirements for your money to go out. It also aims to help you keep some money in your savings account and work for you, while preventing you from drawing out against your credit card to make ends meet. A budget is designed to help you succeed and achieve, not to hinder you or cause you any harm.

How hard is it to budget?
The word budget might have a lot of associations with pain and sacrifice, but it does not have to be that way. In fact, setting up and sticking to a budget can be really easy, provided you take the time to put the systems in place during the initial stages.

What is the best way to set up a budget?
Setting up a budget may differ from one person to another. The main goal for most people I speak to is to pay off debt and to begin accumulating savings with which to build wealth, while not decreasing their standard of living. These goals are big and ambitious, but by following a process they can be achieved relatively easily over time.

Using this method, it can be relatively simple to budget and to also begin to become a financial success. I find the easiest way to set up a budget and to successfully stick to it is as follows:

Setup an automatic savings plan: Open a savings account with your current bank. I found that with my bank an online savings account is free to setup, free to make transactions to and from, and even earns a tiny amount of interest (three percent) provided I continue to make one deposit a month. Once you have your account setup, ask your bank to set up your account so that ten percent of your income (as a minimum recommended by most finance books) is automatically deducted from current income at a job. If you earn money as a casual and are not sure how much you earn, you may want to set this at a slightly lower amount. I highly recommend setting a minimum to be deposited automatically, as most people spend money rather than manually deposit.
Never touch the money in this account: This is the money that will begin to help you accumulate wealth long term.
Contribute to superannuation before tax: If you are in a full time job, you may want to setup your superannuation (401k, Roth IRA) so that you are making maximum contributions (usually five percent of your pre-tax income). This is a great idea in Australia as your employer will usually match this percentage on top of the minimum nine percent employer contribution they put aside for you automatically. This is totally up to you and may vary depending on your circumstances. (You might do this instead of saving after tax, or vice versa if you so choose).
Give ten percent of your pre-tax income to charity: Why would you want to give ten percent of your money away?The answer is twofold: it helps you to appreciate the value of giving and helping others while also teaching you not to totally depend on money as a part of your identity.
If you have any loans or debt: contribute ten percent of your pre-tax income to the principle of the debt (not the interest). This will help you reduce your loan repayments.
Spend the rest as required: Use the last 70-80% of your income to pay your bills, feed and clothe yourself and pay for any reasonable luxuries your desire. Don't dig into the other 20% and it will ensure that in time you will begin to improve your wealth.
Occasionally monitor the other 70% for ways to reduce/alter spending: The way I do this is to take a note-book and track the way I spend what I use in my everyday account. Last time I found that my biggest expense was actually purchasing food. I am now working on revising the amount I spend on food by eating out less and bringing food from home some days when I go to work or university.
If in doubt, seek professional advice: If you feel your finances are getting too out of control, seek the assistance of a qualified professional. A financial planner will be able to help you get on track of your spending and help you to improve your quality of life.

Budgeting is not a process that magically works overnight, it is a process that starts simply with micro steps and is refined the more you build momentum. Don't be afraid or overwhelmed, try it and start small, then build upon your success. If you can make ten percent initially in each section, start with one or two percent and build your way up.

April 24, 2009

Start achieving today on a micro scale

Photo courtesy of maz hewitt

Like some of the readers of this site, there have been times when I have not been able to save, where my expenses have exceeded my income and where I have felt as though I will never be able to get ahead. It is during these times that we tend to become depressed and lose morale to achieve our goals in life. How can one overcome these obstacles? The answer is by starting towards achievement on a micro scale.

What is a micro scale?
The old saying goes that a 'journey of a thousand miles begins with a single small step'. I would argue two points on the contrary to this statement:

The journey begins with the intention to travel.
Before the first step, preparation must me made for the journey.

A micro scale is a small step towards the small milestone. Lets use the following scenario:
A mum who is working full-time would like to increase her income by an extra thousand dollars a month. To do this, she intends to start her own eBay business one day and run it one day a week(Intention). She sets up the eBay account, finds items around the house for sale, and begins to take photos of the items to list the first sale (preparation).

This is the beginning stages of the micro scale journey. They are:

Make a plan: Determine what it is you would like to do.
Prepare to execute the plan: Get the affairs in order to begin execution.

The next step is breaking down the goal into more realistic and achievable goals. $1,000 a extra income a month might be difficult for someone to achieve initially.This goal however, could be broken down into smaller goals similar to the following:

Month One: $1 income
Month Two: $2 income
Month Three: $4 income
Month Four: $8 income
Month Five: $16 income
Month Six: $31.25 income
Month Seven: $62.5 income
Month Eight: $125 income
Month Nine: $250 income
Month Ten: $500 income
Month Eleven: $1000 income (goal reached)
Month twelve: $2000 income (goal exceeded).

One can see how breaking down a goal into smaller monthly steps quickly becomes a highly achievable and obtainable goal, while building upon early successes to improve results each month.

How can I achieve on a micro scale?
So how can you begin to start achieving on a micro scale? Let's assume you want to start saving, and would like to have $5,000 by the end of the year.

Rather than trying to save $100 a week (as your budget is very tight), you begin by setting a goal of saving $10 a week for the first two weeks. During these two weeks you might review your budget and begin to reduce your expenses to begin to protect this regular contribution for the next twelve months ($10 a week for one year will see you with $520 at the end of 12 months, which is a more than one tenth of $1,000 already).

After two weeks you have reduced your expenses and are able to save $30 a week. Next, you decided to pick up two hours a week extra at your job, even though they don't pay overtime rates ($20 per hour x 2 assuming after tax). Savings is now at $70 a week.

Lastly, you decide you want to begin earning a very small income from a hobby outside of work. The plan is to one day run a part-time business. You find all the old items around your house and begin to take photos of them. Instead of buying things on eBay you begin to list your old stuff, a few items at a time.

These items start selling and you begin to make $25 a week profit. Revising your budget, you find a way to carve out another $10 a week bringing the total amount you can save up to $105, which will allow you to save from there on in $5,460 over the next 52 weeks. Goal Accomplished!

The steps for achieving on a micro scale are as follows:

Intention.
Breaking down into small actionable goals.
Achieving these small actionable goals.
Build upon previous successes.

The importance of a micro scale
There are many reasons why achieving on a micro scale is important, but the main one is that you begin to build momentum which can be further expanded upon. By building momentum, you build confidence in your ability to achieve your goals.

Micro scale results don't bring in huge profits at once, they accumulate over time. Saving $100 a week isn't a big deal to a lot of people, but in ten years time you would have $52,000 (not including interest you could accumulate via investing).

Don't start small, begin extra small and building your empire from the ground up on a micro scale.

April 22, 2009

Recession proof your life: Prepare the fortifications

I am continually hearing about the Global Financial Crisis (GFC) that countries (Australia included) are facing all around the world. One thing I have noticed however, is that the effects of the GFC have been having different effects on different people, and both on a macro and a micro environment.

The Macro Environment
On a macroeconomic level, the global financial crisis is taking a toll. Big businesses are cutting jobs, reducing anticipated profits, slicing budgets and working on becoming leaner companies to help get through the current climate. Controlling the repercussions on a macro level cannot be successfully achieved unless we take action on a Micro environment level.

The Micro Environment
Although I might have a different view from the text book definitions of 'Macroeconomics' and 'Microeconomics', for the purpose of this post I will be referring to Microeconomics as your personal life.

How has the GFC affected you in your life? Some people have lost their jobs, others have had to default on loans, others are struggling to get by. Why is this the case? There are so many questions that are not easy to answer.

While there is a lot of turmoil, I am observing a lot of people actually achieving more than they were prior to the GFC. People are now saving cash reserves, building 'Micro' businesses and paying off debt that previously would have been ignored. Others further still are beginning to position themselves for a transfer of wealth and will cash in on the chance to become rich. Some have found that while they have lost their job, they now have more quality time with their families which they had often taken for granted before.

To impact what is happening on a macro level, we need to begin looking at how we can impact the micro level (in this case ourselves and the way we act). How can we impact the micro level in our lives? Below is a list of things I am seeing the successful people around me begin to undertake which is helping them not only to survive through the GFC, but to actually prosper through this time:

Setting new goals life-long goals.
Paying off principle on loans and other debt.
Building cash reserves in a form with high liquidity (savings, term deposits, etc).
Increasing the leverage of time (using the 80/20 principle and other time management techniques) to being able to produce more sales, work more hours and decrease time that is not productive.
Ceasing to purchase unnecessary 'wants', and focusing more on the 'needs' in life.
Establishing additional income streams (ie: eBay, blogging, new revenue models in a business, an extra job, overtime, etc).
Reinvesting profits into themselves, their businesses and their education.
Increasing their networks (both online and offline).
Selling, eliminating and reducing marginally profitable deals.
Selling unnecessary and old household items (either via a garage sale, eBay or to friends and family).
Simplifying lifestyles (ie: partying less, going out on picnics and more 'affordable' outings).
Exercising and focusing on their health (although gym memberships might cost money, most people can't afford to be sick during hard economic times, and want to improve their health to perform better).
Starting to work for themselves (outside of employment, or instead of employment).
Reducing expenses (selling bigger cars, changing insurance plans, negotiating bank fees).
Saving any additional government contributions (ie: Spending bonus from Kevin Rudd in Australia).
Deferring cost and time consuming hobbies and projects (temporarily).

I was listening to an interview earlier today with Steve McKnight and Mr. Peter Daniels on the current economic situation. In this interview Peter explained the importance of having a 'cash reserve'. Peter mentioned that the bigger his businesses become, the higher the reserve of cash becomes.

Peter also mentioned the importance on measuring daily how things are progressing using mathematical calculations on your finances (ie: Cash flow statement, etc.). Steve McKnight has covered this before on one of his old sites also (view the article here), and I think it is an important point.

How do you know if you are sinking or swimming if you are not monitoring and managing your progression? And should things take a downwards turn, what is your safety net to fall back on (think 'emergency fund')?

Personally, I tend to follow the advice of successful people. If it is good enough for the rich to build their cash reserves and to monitor their cash daily, while cutting expenses, etc. then it is good enough for me too.

Have you given thought to taking action to recession proof your life? How could following the observations of the successful people around you help you improve your current situation?

April 17, 2009

10 skills I learned while studying that have helped me in life

(Photo: http://www.flickr.com/photos/m00by/2629691994/)

Tertiary study can provide a lot of opportunities to learn. Sometimes you can learn what to do, other times you learn what not to do. But the best learning of all is the characteristics and traits that you learn through the study process.

Although study may seem like an annoying, boring and/or painful process, their are a lot of like skills that can be obtained through a tertiary (or trade) education. These skills can greatly affect your results in life.

When I first started studying several years ago I remember thinking I knew it all and that nothing could overcome me. Since then I've have learned a number of skills (including humility) which have gone on to serve me in all aspects of life.

As a result, I have learned the following ten skills I have learned while studying:

1. Don't be afraid to be wrong: Many people in life often are afraid to speak up in case what they say is wrong. What is the worst that could happen if you are wrong? Chances are you will have an opportunity to learn something new and to grow, while also being seen as someone willing to try and 'have a go' at tasks, problems and new situations.

2. Time Management: I am continuing to improve the management of my time daily. Initially I was disorganised, had no idea what I was doing, and felt totally overwhelmed. By learning to manage multiple projects, deadlines and objectives, I have been able to increase my productivity and success for different priorities.

3. Persistence: Have you ever felt like dropping out and letting something you want go? How hard are you willing to work for your dreams? Sometimes we feel like giving up, but persisting is worth it (see more on persistence in a previous post here).

4. Presentation: The ability to present both yourself and your work effectively is a vital skill to lifelong success. How you present yourself alters people opinions of you dramatically, and can greatly improve your chances of success.

5. Communication skills: Being able to effectively communicate your thoughts and ideas across to a mass audience is important for success. Communications skills help when trying to obtain employment later on in life. Communication is not all verbal, and can take into account presentation also (see above)

6. Leadership: Group assignments tend to be a frustrating experience for a typical university student. Have you ever worked in a team environment before? Establishing yourself as a leader can greatly improve your earning potential when leaving studies.

7. Review: Following the old proverbial wisdom of 'measure twice and cut once', double checking work before submission can greatly improve your results and help[ provide additional clarity to work that might have been otherwise average on the first draft.

8. Budget: While not directly a university skill, budgeting is an essential skill for a tertiary student to master. Having money to pay bills, go out with friends, pay for books, save, etc. all require a tight budget when on a limited income.

9: Patience: Sometimes tasks (and people) can be quite frustrating. It is during times of frustration that we all tend to fly off the handle and say or do things we regret later . Learning patience is a life long skill. Mastering the ability to be patient can ensure you have more harmonious relationships and positive results.

10: Project Management: Many of us start a project gun-ho without a plan for completion. You see this in small businesses all the time, whereby an entrepreneur will start a business without a plan for execution and an exit strategy. Project management is becoming a more important skill in personal life, as well as within a commercial context.

If you have undertaken study post-school I would highly recommend you reflect on it. Think about you have learned, but not just from classes. Try and reflect on the life long lessons that you have learned while there which have continued to serve you in your working life. Also try and find skills that you should have learned, but may not have applied as of yet.

How have these skills affected where your life is today? How could you further improve your life by applying additional life skills you observe?

April 17, 2009

Six investments for making a start in life

When you first leave school, there are normally a myriad of options to choose from regarding where to head next. Do you go and start an apprenticeship? Take a gap year? Start a degree or other tertiary study? Making a start in life is one of the harder things to make decisions about.

So how exactly do you begin to make a start for yourself in life? Years ago, people used to just go to work, save for a car and a house, then work to pay them off. Nowadays it has become more complicated. In a world that requires you to be more, you need to have more to make a successful start.

There are a few things an individual should invest in to get started in life. The following items in are a way to make a good start in life.

1. Education: It's funny just how many people leave school thinking they won't ever need any more education, and that they are finished. Education comes in many shapes and forms however, and a few essential skills are really required to leverage your abilities in the beginning. These skills are broken down into subsections:

Occupational Education: Learning and becoming an expert within a specific occupation will help you to improve your abilities and results when seeking higher paying employment as you progress through life.
Technical Education: As computers become more and more a part of everyday society, technical skills are becoming an essential that are often overlooked in some university courses. It is likely that in the future everyone will need to have their own website, as well as the ability to prepare quality documentation and reports, special graphs and timelines, etc. in order to be able to efficiently leverage their personal services. I personally found TAFE colleges provided a lot of this ability for me, and now I am teaching friends at university the skills I learned at a much more cost-effective price.
Financial Education: Learning about how to manage finances is so crucial to a successful and happy retirement, but it is always overlooked. Take responsibility for your actions and begin learning about how to financially prosper in your life.
International Education: As we become a more global society, learning about how other countries work is becoming more and more important. In particular, being able to understand cultural differences, different rules, regulations and languages is a good habits to start investing in while you are young.

2. A Car: While some people may protest to the contrary, I firmly believe investing in a car despite some of the associated costs is a huge benefit when starting out in life. Why do I believe this? I offer the following suggestions:

Independence: Owning a car begins to help individuals learn the importance of transporting themselves around, and not relying on others.
Responsibility: Learning how to be a responsible citizen can be perfectly demonstrated through driving. Other people's lives are at risk based on how you act in a car.
Ability to travel: When I was in my teenage years, I remember that going to bigger shopping malls was a huge hassle, as I would have to spend half the day either waiting or sitting on public transport. With a car, it only takes half an hour.
Increased employment opportunities: Most people overlook just how important a car is in their life until they have not had one for a while. Without a car, you are not able to get to higher paying jobs that provide more hours. Some jobs offer travel which is an opportunity usually missed without a car.

Please note: I don't recommend that anyone gets a loan for their first car (or any car for that matter). Just getting a small, economical car that is cheap is the best advice. I didn't get a loan for my car, but I wish I had got a more fuel efficient car, as I would have had more money to go out with friends on weekends.

3. Savings: Establishing a savings pattern as early as possible is the best idea I have been introduced to. Saving to spend on holidays or a I-phone is not a good idea, but saving and keeping money in the bank has many benefits, including:

Increased confidence: You won't be so dependant on a job if you have money in the bank.
Leverage: If you lose a job or don't get enough hours, savings can help you to get through the lean times (provided they are topped up again).
Investment opportunities: the ability to invest in your own business or other investments is a great opportunity that usually requires some capital set aside.

4. A computer: Investing in your own computer is a must! Here's why:

Needed for work tasks: Most jobs require a computer nowadays to some degree.
A social outlet: Facebook, twitter, etc. are an important way of staying in touch with difficult to reach friends.
Income: You can start a business online (such as on eBay, or a website of your own) and begin making extra income.
Research: Ability to 'Google' any subject known to man.
Opportunity: Having my own computer has put me in an interesting situation where the company I work for allows me to be able to work from home.

5. A camera: Having a way to take photos of those moments that in years time you will want to look back on is a great opportunity. If a camera can film you can also make videos to upload to your blog or Youtube.

6: Travel: I haven't had the ability to travel yet, but I am planning to do so in the next few years. Travel provides a number of opportunities, namely:

Experience of different cultures.
Learn a new language.
Experience different foods.
Make new friends.
Enjoy some time away from the norm.
Develop new priorities in life.

There are other things you can invest in when first starting out in life. These six however will provide new opportunities and experiences. Life is to be lived and enjoyed and investing in various experiences, objects, etc. that will help increasing your lifestyle is a great way to start out in life.

What other things did you invest in when making a start that you have found beneficial in life?

April 16, 2009

Give more thought to debt elimination by taking C.A.R.E.

Are you in debt? Do you have a personal loan, a credit card, a car or house loan? Are you struggling to repay your debt and live the life you are aspiring to? If you want to eliminate your debt then you need to take a little C.A.R.E. in managing your finances.

How do I take C.A.R.E.?
C.A.R.E. is an acronym I have developed for helping you to get out of debt in a most efficient manner. It involved following four simple steps, which are outlined below.

Cut off your supply lines: Stop using debt to fund your life style. Cut up credit cards, don't take on any new loans and get used to the feeling of financing your life using what cash you do/don't receive from your income. Cut off the addiction that has got you to the point you are currently at.
Allocate cash to debt principle: Start with one loan and allocate any spare cash you have to paying down the principle. This will begin to reduce the amount of interest you pay. Reducing the interest paid while continuing to repay the same amount (or more) will increase the amount you are allocating to the principle, which will help get you out of debt faster.
Remove one outstanding loan at a time: Don't try and pay them all of at once with the extra cash you have, eliminate the first, then apply the amount that was being paid on that to the second. Once the second loan is paid off, take the money from the first and second and apply it to the third. Do this until you have paid off all your debt.
Embrace new financial habits: Once you have paid off all your debt, continue to stay away from loans and other lures to spend money. Get into the habit of saving money on a regular basis. Focus on earning more in your job. The Wealth Pillar Series is a great start for getting in control of your financial habits.

Taking C.A.R.E. is an application that works over time. Like most results in life, you have to be prepared for the compounding works to being to accumulate over time, as instantaneous results are not as likely to occur. This is true for fitness, saving money, paying off debt, starting a business, etc. It takes time, but it is worth it in the long run.

April 14, 2009

How to monitor your financial success in all market climates.

(Photo Source: http://www.wealthtipsonline.com.au/innercircle/hotopic1.html)

Is there a secret to maintaining and growing your wealth through all financial times? The short answer is yes, with a bit of study and application. The answer may be found in the economic clock.

What is an economic clock?
An economic clock (See the photo above) is to help individuals, investors, businesses, etc. with tracking the economic cycle of a countries economy. The above clock goes into a little further detail and recommends when and how to manage your financial investments.

In the current economy in America and Australia, we are currently facing a recession. This would mean that currently on the economic clock that we are sitting at 6 o'clock. A lot of wealthy people realize that in the current economic climate that the wise decision is to continue to build cash reserves and prepare to invest as the economy begins to build back up.

A strategy for each stage of the cycle
A good thing about the wealth clock above, is that it provides a financial strategy for each step of the cycle. What do you do when the market is at a high point? In between a high and a low? It's all contained in the clock.

If you would like more detail on how to use the economic clock then go to:

These sites should help give you a bit of an insight and knowledge into how the clock words, and from there you may be better educated on how the economic cycle works, and how to respond to it.

April 14, 2009

Book Review: How to Stop Worrying and Start Living

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I recently completed reading How to Stop Worrying and Start Living

by Dale Carnegie. Dale Carnegie was renowned for his best-selling book How to Win Friends and Influence People, but this was written years later.

How to Stop Worrying and Start Living

covers two main aspects in life:

Reducing and/or eliminating all the worry in your life that is causing you problems, and
Hints and tips to start living your life to the max.

Carnegie provides stories that cover each point he makes in the book. While some of these points might seem simple, generic or common sense, implementation of these steps is the hardest part. The stories provided aid in demonstrating how others have implemented simple but useful strategies in their life with positive results.

Personally, I found a few sections that provided interesting tips. The main ones for me were how to add one waking hour a day to your life (by taking a nap in the middle of the day, due to the compounding effect of sleep), and four good working habits, namely:

Clear your desk of all papers except those relating to the immediate problem at hand.
Do things in the order of their importance.
When you face a problem, solve it then and there if you have the facts necessary to make a decision. Don't keep putting of decisions.
Learn to Organize, Deputize and Supervise.

This alone was only two chapters from book. There is great content throughout the entire work, and I personally found it more useful than How to Win Friends & Influence People

.

Do you worry about various issues, whether small or large? Are you stressed at work, or feel you are not performing as well as you could potentially? This book is a great read and will greatly assist you in reducing your worry and helping you to take control and to live your life.

April 13, 2009

Building a Mastermind Group + 21 Tips from Mentors

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Brian Lee of Genius Types recently wrote a post about building a Mastermind Group for Real Estate investing. Brian discusses the importance of finding a like-minded group of individuals who are dedicated to success in the same field as yourself, along with the benefits of doing so. Brian also discusses the importance of having a mentor to help you achieve success.

The concept of a Mastermind group comes from Napoleon Hill, way back in his first book "The Law of Success" (Highly Recommended). Napoleon Hill explains that having a group whereby you discuss how you are progressing in relation to achieving your goals is essential to your success. The group usually meets regularly on a weekly basis to discuss their current projects, goals, etc. and then the group discusses various possibilities, allowing individuals with different experiences and backgrounds to give their opinion.

Many people find the idea of creating a Mastermind group a difficult concept. The reality is, that most of us have been a part of one in our lives previously without knowing it was the case. A Mastermind can usually be seen in a working environment in the form of a meeting. Meetings are an opportunity for members of the team to creatively brainstorm ideas for certain issues arising within a business.

How do you start a Mastermind group for your personal success? I offer three suggestions:

Find a group of like-minded people and see what they are involved in: They may have a Mastermind group already you can join, but you need to make sure you get along with the people who will be helping you with your personal success.
Arrange to meet with a small group of these individuals: Usually on a weekly basis is ideal. It does not have to be a formal environment. Meeting for breakfast or a coffee could be a great way to start the group and keep it relaxed while still getting results.
Develop consistency for meeting: Find a set location, time, people for attending, etc. If you contemplate new members coming into the group, make sure they are screened before being accepted permanently, as they may not harmonize with other members of the group.

Note: I found some tips that I thought were useful for running a Mastermind group here.

I personally have found having mentors and a group who regularly meets to be beneficial, even if it is really informal. It has allowed both myself and others to receive insights into alternative ways to progress forward in their endeavors for success.

21 Tips I have learned from Mentors and Mastermind Groups:
Some of these tips contradict each other, but it is interesting to see the insight I have received from different people. You don't have to apply all of these, but some of these have certainly helped me, and will help me into the future.

Save 10 percent of all you earn.
Read the Richest Man in Babylon (from a man who runs two businesses, and has around10-15 investment properties).
Read and re-read Think and Grow Rich, using it as a tool through life.
Buy property and never sell. Build if it is more financially viable.
Enjoy the journey, not the destination.
Invest in yourself, and your own businesses.
Start very small, and progress.
The first $10,000 is the hardest.
Conduct a S.W.O.T. Analysis on yourself.
If you want $1,000 a month in passive income, aim to get $100 a month, then $200, then build on it from there.
Always give more value than you expect in return.
Give without the expectation of return.
You are an international player. Be prepared to work, invest and live in multiple countries.
Five minutes of thinking will save you two hours of hard work.
Give work to the busy people as they will get the work done.
Rent rather than buying (personal property), and invest your deposit. Buy outright later on.
To learn something properly: Watch one, do one and then teach one.
Simplify your needs to reduce your expenses.
Always keep learning.
It is not how much you earn, but how much you don't spend (aka how much you keep).
When in a bad situation, focus on what you can control. Keep up your exercise, maintain your health, focus on improving your knowledge, work well, etc.

How has your success in life been to date? If you are not progressing towards your goal, could a Mastermind group or a mentor be beneficial to you?

Take action now (small steps) and start claiming the financial success you desire in life.

Josh Moore

April 2009