Tweet

Making More Money

Guest post by: David Beairsto

Article Overview: Making more money begins as a thought. Entrepreneurs develop plans of action to accomplish this. After a plan is devised and acted upon the entrepreneur expects to get what they desire; to make more money.

Making More Money

Everyone Needs It So Everyone Wants It Let's be practical for a moment because making more money is always important. Regardless of where we find ourselves financially, we can't do more without the necessary resources. Even wealthy people have to limit what they give away, otherwise they won't remain wealthy.

Since everyone wants to make more money, the plan to accomplish this should be available to everyone. We can't exclude anyone, regardless of how reckless they are with finances. Poverty can grip anyone at any stage in life, no one is immune. We all want to prosper. We all want to protect our prosperity.

You Can't Get Something For Nothing

If a person exchanges their time for money, as in the case of the employee, control for their earning potential is limited by:

1. The employers resources

2. The amount of time they have to exchange in a given day

3. The ability to retain their job

For the business owner who desires to increase their personal income or profits, control becomes dependent upon:

1. The cost of expansion

2. The ability to increase their market share by attracting more business

3. The cost of marketing and advertising

These lists aren't complete, but they demonstrate the principle that we can't get something for nothing. Either we must be willing to exchange more of our time, our resources, or both before making more money will happen.

The More You Have... The More You Have To Lose

Since it costs to expand, we now have more to lose. Retaining our wealth is as important to the process as earning it was. No one desires to acquire more only to revert to having less. We quickly become accustomed to what we have.

So far our equation has:

(a) adding to what we have + (b) keeping what we gain...

...but without knowing what we desire in advance, we can't create the whole formula.

Let's Break It Down

Without going into the millions of variations that would move a person to desire more than what they currently have, let's take two clear examples.

1. I want to put my child through college without debt.

2. I want to achieve financial independence.

The first goal is far more popular. More than ever parents and students are discovering that loans are a bad choice. Even when the graduate lands the job they desired, the income isn't enough to cover a decent lifestyle, plus the debt of the loans.

This first goal is also the easier of the two for calculating, provided we have some idea what university the child wishes to attend. Making a conservative estimate won't hurt because any of the money left over will certainly come in handy to start their career.

(x) = How Much You Want

So we begin to work the equation backwards. We need (x) amount to cover a university degree. The difference between what we earn and what we need tells us exactly how much extra money is needed.

If we have several years in which to generate this sum, we can divide it out over that time. We can even break it down further to the exact amount necessary each week to reach our goal.

We still need a plan to generate the extra income, but that plan becomes specific to the individual's circumstances. In this example the plans necessary to accumulate the cost of tuition have a wider range of possible solutions.

Since the sum is fixed we don't need to invest for the highest rate of return. Those investments won't necessarily be strong at the time the money is needed. Part of our formula includes keep what we gain. Since we know when we'll need this money, it only needs to be secure until that moment.

The Bigger Picture

I chose the second example because financial independence includes the ability to pay for our child's education. If we're going to talk about making more money, we may as well solve the bigger problem. The person who has obtained financial freedom knows how to generate extra income; but how do we get there?

This goal may not sound subjective, but not everyone desires the same lifestyle. I may know financial freedom because I own my home and have enough money put aside to last until the end of my days. That doesn't mean I'm financially free to travel the world buying expensive cars and boats.

Just like the equation we used to send our child to college, we need to know what financial independence looks like to the individual. If becoming a millionaire was the only requirement, we wouldn't see so many multi-millionaires and billionaires. We quickly become accustomed to what we have and the billionaire is free to do more than the millionaire.

Bigger Goal - Same Formula

Actually wealthy people don't treat the formula any differently. They desire a specific amount, and then calculate the difference between that amount and what they have. Finally they devise a plan to obtain that amount.

The greatest challenge is for the person deep in debt with little or no income. Making the grand sweep to financial freedom will require steps. Financial planners will show them how making more money can first eliminate their debt.

Upon this achievement they immediately begin making even more. Without the drain of debt, they now have more income to save and invest.

When desire is fixed upon financial freedom, and a well devised plan is consistently acted upon, no circumstances can prevent success. Entrepreneurs continue to accomplish amazing feats despite the faltering economy or their personal situations. Having made up their minds to make more money they do just that.

Related Articles
  Making Money Online Comes Down to Only Two Methods!
  Making Money Online 101- The Real Truth
  Easy To Earn Money On The Internet - Is It True Like People Say?
  Making Money From Home Online Isnt As Easy As Turning On A Computer
  What are the top money making businesses?
  Is Making Money Online Even Possible?
  What are internet money making businesses?
  What are the top online money making businesses?
  What are the best online money making businesses?
  BANG BANG YOU’RE DEAD!
  Making Money Online: It’s Not as Hard as You Think!
  How Do I Buy a Domain Name and Other Beginner Questions
  Keys for Success and Wealth (part 5) Giving
  Some Home Based Online/Offline Money Making Ideas Which Can Be Profitable
  Popular Internet Money Makers
  Making Money From Home Has Never Been This Easy!
  Are Online Money Making Opportunities The Answer For You?
  You Must Have the Right Mindset to Succeed with a Money Making Home Business
  Internet Money Making Opportunity – What you MUST Master 1st!
  Minimizing Working Mothers’ Sacrifices: The Power of Making Money Online

Article Tags: entrepreneur, make more money, making more money, prosperity, success, wealthy
Referred by: http://jaykubassek.com



Related Forum Posts
Making Money in 2011 - Hello forum members! As we draw closer to the new year I thought it would be appropriate to change the title of our forum category "Making Money in 2010" to "Making Money in 2011" - I'm looking forward to some interesting discussions and wish everyone a prosperous New Year!
Re: Newbi here - thanks for your responses guys.. I really appreciate it. Well, I have learned from realhomebasedsuccess dot com that there are home based business opportunities and ideas that could be our option such as: -Selling Goods or Providing Services Online -Making Money through Direct Marketing -Becoming an Affiliate Marketer -Getting Paid on a Click Thru but I was thinking which is the best one and most effective in terms of generating consistent Ongoing Profits. What do you think? do you have any insights?
Re: UPDATES: New Campaign! New Layout! New Ideas! - [quote="Ringo So":2696kbgu]Trent - It's actually a sub-forum within the "Making Money in 2010" category. Please let me know if there are any troubles finding it.[/quote:2696kbgu] Nope, still don't see it. I see the Online Businesses forum but that has been there for a long time. Is that what you mean? I don't see any Internet Marketing section.
Re: Which would you start: a Blog or Online Community? - It is a difficult decision to make. Lets start it this way - What are you more interested in? Money? or Friends? or Both? If its purely Money, then Blog might be an appropriate answer. But consider this - It will be people (visitors) that will bring traffic to your blog and then Money will follow. This will be possible after a time and during this time it will be your friends who will be the starters. If you are looking for friends only, then its true that not many will be interested in knowing how you have beaten them in the game or the other way round. So it will be preferable to have a Forum where they can share ideas with you and others. But you can share your insider knowledge with them and invite comments from your Blog. You can also put up information on what others (including your friends) don't know about Tennis. The blog you create can provide News, Inside Information and also Techniques that can be used by the new entrants in the world of Tennis.
QuickBooks vs. Microsoft Money vs....? - I have always used Microsoft Money to run my business - accounting, invoicing, etc. It came with my computer when I got it and integrated well with my online banking system so everything is a breeze. It only takes 30-60 minutes every quarter to do the bookkeeping (keep in mind that I have a very simple business - no inventory, very little invoicing, I do all my payments by credit card, etc). Is QuickBooks or Money the best accounting tool for small business owners? Or is there something even better?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Paint A Word Picture - Excite Your Customer

How do I finance a franchise?

The five pillars of internet marketing strategy

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.