Tag Archives: finance

What Separates the Wealthy from the Majority – Education

Do the wealthy know ways to make money that are unknown to everyone else? You better believe it!

John D. Rockefeller, one of early America’s richest tycoons, once said, “I have ways of making money that you know nothing of.” How does that make you feel? Shouldn’t everyone know the best ways to make money and create a prosperous future?

But the fact remains that there are wealth-building principles that are common knowledge to the wealthy but are largely unknown by the majority of the population.

So why is the average citizen in the dark?

How money works is simply not taught in schools. I originally bookmarked this article about states lagging behind in teaching students about money in 2014. At the time, only 4 states required high school students to complete a personal finance class to earn their high school diploma. Has the situation improved in the past 6 years?

Well a little but not much. While 21  states in the U.S. include personal finance in at least one high school class, only 6 now require it for graduation.¹  And even if you’re fortunate enough to have enrolled in one of these classes, who’s to say whether or not you got a qualified educator. According to a study done by Fox News, teachers are often not trained in personal finance themselves so they’re “afraid that students will ask questions that they don’t have the answers to” and steer clear. ²

Interestingly, all 50 states teach a class on sex ed. So the one thing you can learn on your own, they teach. And the one thing you’ll never learn on your own, they don’t. Go figure.

Actually, it does figure.

Think about it. If the financial industry were to educate consumers about money savviness, people might stop socking away so much of it in low-interest savings accounts that earn less than a 1% rate of return. And before you leave the branch do they offer you a brochure on financial concepts to help you get out of debt, avoid money missteps, and start saving like the wealthy?

Pfff—yeah right!

No. It’s like, if you’re dumb enough to open a low-interest savings account and take the free lollipop (it’s like their sucker litmus test), then they’ll try to sell you a car loan at 6% interest³ . What a deal. You earn less than 1%—they earn 6%. It’s like a lose-lose for you, but you still thank them on the way out.

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Hard to fathom there are that many suckers? It’s true…

The financial industry thrives on customers who are stuck in the “Sucker Cycle” of foolish spending. While consumers are binging on Netflix, shipping on Amazon, and ordering from DoorDash, institutions are quietly leveraging the power of compound interest to make their customers’ money work for themselves. While consumers live paycheck-to-paycheck, financial institutions and shrewd businesses build profits sucker-to-sucker.

For most people, earning (and spending) a paycheck is the extent of their experience. But the wealthy know the real deal. To become financially independent, you must know the concepts and strategies to save, protect, and grow your money. You have to have a sound financial eduction.

Did this article make you mad? Hopefully, it did.

So what do you do about it? You stop taking the sucker and you stop being the sucker. You learn how to take control of spending, protecting, saving, and investing your money. How? step1 – You read the book, “HowMoneyWorks, Stop Being a Sucker.” It will only take about an hour.

Don’t have a copy? Contact me and I’ll help you get one.

Step 2 – Use that anger to fuel action.  Attend the next How Money Works master class, Part 1. Announcement coming soon!

Afterwards, reach out to me and say, “Now that I know the ways of making money Rockefeller spoke of, I’m ready to chart my own course to financial independence.” We have a clear action plan for you to follow called “The 7 Money Milestones.” I’ll help you check off each one.

Let’s do it together.

(1) https://www.councilforeconed.org/survey-of-the-states-2020/

(2) https://financialeducatorscouncil.org/financial-literacy-statistics/

(3) https://marketwatch.com/story/new-car-loans-hit-highest-interest-rates-in-a-decade-2019-04-02/

How to Divorce Your Job and Keep the House – #1

Let’s have a virtual show of hands, “Who hates their day job?”

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Click to take the poll. See the results in the next post.

Everyday at mine, I encourage youths to really think about what job they will have and make sure it’s something they enjoy while my distaste for my job slowly grows. Believe it or not, I actually was excited when I began about what I how it would help me reach my personal goals and enjoyed it up until bureaucratic changes sapped all the joy from it. It’s become an abusive relationship. So I think it’s time to divorce my job just like I did my cheating, abusive ex.

(Was that TMI?)

Of course you should never rush into a divorce with a spouse and the same thing goes for your job. I’ve been contemplating this change for about the past three years and researching how to do it successfully,  keep my house (the job can keep the kids and the pets), and progress towards full-time self-employment. My (Blogging 201) goal is for this to be a new biweekly post series, filled with tips, research, and my own personal experiences. So on to the first tip.

ECVtalkbubbleTip 1: Have a side-hustle, side-gig, or alternate income stream.

Most everyone is looking for ways to supplement their income these days. I’ve been doing it myself for about 10 years now. While there have been good and not-so-good years, I’ve persisted which is a key trait when your goal is to be self-employed.

Don’t know what you might be able to do?

Well if you’re reading this you might be a blogger. Fellow blogger Charlene Oldham talks about opportunities to get paid for your writing. She also suggested the site Elance.com. This site actually suggests work based on the skills you enter when you register. Check it out for ideas or do a web search for similar sites.

Check back in two weeks for a list of side-gig suggestions.

“I Want to Start My Own Business” Day

Today is “I Want to Start My Own Business” Day. If you’ve followed this blog, you’re familiar with our Divorce Your Job & Keep the House series. If not, don’t worry because we’ll be reposting them starting next week Friday. But to intro the reboot we want to recognize this special day and share this wonderful article written by Ben Guinter on figuring out what business to start.

While we recommend starting your own financial services business due to the incredible opportunity that exists because of the unique set of circumstances that exist, we know that
isn’t everyone’s dream. So see the full article below for tips on how to find your idea and move forward.

Watch the video to find out 7 things that make a financial services business a great idea.

Source: Chapter 12: The 7 Elements of an Ideal Wealth Building Opportunity — Wealth Wave


September 11th is “I Want to Start My Own Business” Day

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.b0Et8kJ9.dpuf
If you’re looking for something to do today then stop procrastinating because it’s “I Want to Start My Own Business” Day! If you’ve ever said that statement before, today is the day to take your first step toward that goal! Let’s get right into celebrating “I Want to Start My Own Business” Day!

WHY IS THIS A HOLIDAY?

Well, think about how many times you’ve heard people say that phrase before… there’s a reason why it’s in quotation marks. 😉 People say it all the time and never act upon it, whether or not they have a strong desire to own a business or not. They mention it and forget about it before taking a step toward that goal. So sure, we could just spend today pointing our fingers at procrastinators or we could make it a day of action where you finally put into play a plan on how you’re going to reach your goal of running your own business. It can be a struggle to get started but if you don’t have a plan to achieve your goal then it’s just a passing dream. And if it’s really something that you want, you’ll just end up beating yourself up over not taking any action. But if you were to at least look into what it would take to get started, write out your definite goal and start mapping out your steps toward it then you’ll have a new purpose in life.

You won’t be a procrastinator, you’ll be doing what you want and before you know it you’ll have as much freedom as you desire. Can you imagine what it would be like to be your own boss? You set your hours, you decide what work you want to do and give the rest to your employees. Image what it will feel like to reach your goals! Just don’t abuse your power. 😉

HOW TO CELEBRATE

So, how can you celebrate today? Well, if you are one of those people who really do want to start their own business then your first step is to write down your goal. What is it you want to do with your business? What product or service are you going to offer? How are you going to make it unique? When you get it on paper you can start to mold it into exactly what you want your future business to become and it will be a constant reminder every time you see that paper. The next step would be to write out a plan of action. How are you going to reach that end goal? What are the steps you need to take to ensure your business succeeds? What kind of resources are you going to need and who can help you along the way? You can break these steps down to the simplest of tasks and put them in order so you know what you need to do from start to finish. And by the time you’re done you’ll know exactly what lies ahead of you. Can you guess what the next step is? DO IT! You have your goal mapped out, you know how you’re going to get there and now all you have to do is actually start doing what you planned to do. If you broke the steps down into individual tasks then just start trying to tackle a task a day or each week. Stick to it even when you are a little discouraged and you’ll have your business up and running before you know it! Have a great day and I can’t wait to see the grand opening of your business!

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.1z1FR93G.dpuf

How to Get Out of Debt

Debt: It’s something a lot of households in America have but few like to admit or talk about. But that doesn’t make it go away. Here are some useful tips to get out of debt.

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First, try to pay more than the minimum monthly amount required on each bill, credit card, or other commitment. Paying only the minimum will result in you spending exorbitant amounts in interest.

Second, concentrate initially on paying the debt that carries the highest interest. Albert Einstein famously said,

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

Here’s why you want to pay off the highest interest rate first. Every balance that you are charged interest on doubles every so often and your creditor knows this. It’s a little thing called the Rule of 72. Divide 72 by your interest rate and that’s how long it takes for your balance to double. So if you have a credit card with a 29% rate and one with a 14% interest rate, you want to pay off the one that doubles in about 2 years (72 divided by 29) before you worry too much about the one that doubles in 5 years (72 divided by 14).

Third, curb your spending habits. This is especially important but often the hardest thing to do. Check back next week for useful tips on how to manage this last but very important part of getting and staying out of debt.

How to Divorce Your Job and Keep the House – 4

Here it is after our summer hiatus, the much delayed follow-up post in the Divorce Your Job series on sharing what you know. Yes, it’s later in the day than it should be but it’s still on schedule since it’s Friday.

 Cats celebrating Friday

While you can pretty much find any and everything on the internet nowadays sometimes people just need or want that face-to-face or one-on-one interaction to answer any specific questions they have. Thus a money-making opportunity for you arises.

Think about the things you know how to do well. Don’t exclude anything no matter how insignificant you may think it is. Great at making a spreadsheet or formatting a document file? Know the ins and outs of organizing a closet? Or maybe you’re Mr. Fix-it when it comes to an assortment of household repairs? Then consider teaching or tutoring someone in your specific skills.

There are a variety of sites out there that do everything from connecting you with potential clients to helping you create an online instructional program. Here are just a few:

Thumbtack
You’ll notice our Thumbtack widget in the left sidebar. We use this site for the tutoring side of ECV but you can also use it if you perform different services like photography and event entertainment. You set up your profile and the site funnels clients in your area to you. To respond to  a potential client, you have to buy quotes for a nominal fee. Still it’s a good way to expand your client base in your quest towards divorcing your day job.

Udemy and Skillshare
These sites are like online academies that you can apply to be an instructor and create your own course. While Udemy says that it’s free to create your course, Skillshare mentions that the cost to create your online course can vary based on the tools you use. If anyone has used either of these, please tell what you thought of them.

Also if you know of any other sites that we should know about, please mention them in the comments.