Free Report

As unbelievable as it may seem, most people go through life with little understanding of money. There are no compulsory courses in school on how to become financially successful and what we do know is often absorbed from our parent's attitudes, experiences of friends or down at the pub! What was learned was haphazard, mostly wrong and from trial and (often) error. Any books or articles were probably overwhelming in details and boring at best! Yet, most of our life is spent chasing after money; arguing over it; remaining confused and frustrated with an impossible hope of winning the lottery.

Understanding money - how to make it and keep it - is absolutely essential to our lives. This report is aimed at giving you the basics - to start you thinking of the possibilities for your future and why it is important to take action now. Money is a game and if you know the rules you win; if you don't you lose.

Lets start by looking at where income is generated. It will either come from employment; being self employed; from a business; from investments paying interest, dividends, royalties etc. or a combination of all of them.

EMPLOYMENT

Paid for hours worked - linear income
Taxed before you receive what's left

BUSINESS

Paid even if you are not there
Taxed on profits
Many opportunites to minimise tax
Income over many generations

SELF EMPLOYMENT

Paid for hours worked - linear income
Taxed after deduction of business expenses
You are your own boss
Without you there is no job

INVESTMENTS

Savings accounts
Shares
Property
Residual income from
- books
- hit music
- some businesses

Most of us go through school and further education to "get a good secure job". We then get married; buy as big a house as the mortgage will provide; take out a loan for a family car; have kids and find ourselves trapped in the rat race of maintaining that lifestyle. One income is usually not enough, and sometimes even two incomes can be a struggle. Where did we go wrong?

Here is something to consider:
Over a 40 year working career, if we took £1 and invested it at 10% compound interest it would now be worth £54. And at 20% interest, it would be worth £2,974 . Have you seen how quickly a teenager spends a pound? Do they realise that pound could be worth almost three thousand pounds when they are older?

Over a 40 year working career, if we saved £1 a day and invested it at 10% compound interest it would now be worth £196,000. And at 20% interest, it would be worth £5,445,000. That's a lot of money!

If you were to start a savings account for your children on the day they were born and put a pound a day into it. By the time they retire it would be worth £25,000 if it was put in a piggy bank.
If it was put in a bank at 3% interest it would become £73,400.
If it was put in a bank at 5% interest it would become £181,000.
If it was invested at 10% interest it would become £2,427,000.
If it was invested at 20% interest it would become £800 Million Pounds.

But I haven't got the time anymore - I'm 45/55 now and yes hindsight is a wonderful thing.

Well a crash plan of £100 a month over 20 years at 20% interest will still give you £324,000.

*Where do I get the extra £100 a month - from starting your own part time business.
*Where do I get 20% interest on this money - learn to invest for yourself instead of accepting the pitances from banks, investment trusts etc. You can't learn this in 5 minutes but you can learn in 6 months.
*Twenty years is a long time. You can live off the interest when you have your million pounds, but you don't need a million pounds to generate a residual income equivalent to that interest.

A residual income is the income that keeps coming in day and night without you needing to be there.
Obvious examples are royalties from books, records, inventions.
Income from savings, share dividends.
Income from property rentals.
Income from some types of businesses.

2. Get a job that pays well and most importantly one that will further train and educate you in areas of sales, marketing and business finance. ( This need not be high up the corporate ladder - you could learn a lot from McDonalds!)

* Save and invest 10% to 20% of your gross income before tax every month.
* Happily pay your taxes
* Learn to live off the rest with careful budgeting

Remember a house is a liability with a lot of expenses associated with it besides the mortgage.
Note the true cost of a brand new car in terms of what that money could be worth in 10 years time.

What are the options?

1. Use your skill and knowledge to start a business from scratch. Potentially the greatest rewards but bear in mind 8 out of 10 businesses fail in their first year!

2. Use the proven business model of a Franchise. Large upfront franchise fees and often all you have achieved is to buy yourself a job!

3. Use the proven business model of Network Marketing. This is truely the business that anyone can start with virtually no costs, no risks, and can quickly generate a true residual income. (See Robert Kiyosaki's books)

5. Work hard and save hard until your residual income is in excess of the income necessary to live the lifestyle you desire.

6. Say goodbye to your boss and send your colleagues a post card from the Bahamas to say you are thinking of them!

7. Now is the time to enjoy the finer things in life as you can genuinely afford them.

Network Marketing - What are the options

1. Money Games - illegal system where often large sums are paid in by the gullable in the hope of earning larger sums by finding even more gullable people. A quick way to lose friends and money!

2. Telecommunications - a very competitive market that is always changing. Very small profit margins, so often combined with a money game element.

3. Health and Nutrition - many companies to choose from. Need to be competent at educating people of the potential health benefits and prepared for the side effects they can produce.

4. Party Plan - products range from books to cosmetics to kitchenware. Need to be an extrovert to continually book parties and find similar people to duplicate it.

What should I look for?

1. A well established company that won't disappear in 10+ years
2. A product driven company where the product sells itself.
3. A Proven system that anyone, anywhere can duplicate.

Above all else -
Can you make a taxable profit without introducing anyone else?

"One of the most exciting things about network marketing is the satisfaction of the job itself. Doing work we dislike has a corrosive impact on our lives. But network marketeers love what they are doing because they have the seven things that people want most from their work --- freedom, meaning, companionship, the appreciation of others, security, a fair income, and the time to enjoy it." David Barber