Business advice


The wealthyput their money to work
December 27, 2008, 11:17 pm
Filed under: Blogroll, Business Advice

However, the only thing we are teaching our children is how to spend money. What if anything have you done to show your kids that money can make our future better? We need to learn how to put our money to work.

There are a few ways to go about this in a way that the kids think they are just having a good time. Monopoly has been a family favorite for many generations. It teaches anyone willing to listen and apply the logic, how to make your money to work. It also shows that if you invest wisely, you will then be collecting rent.

There has been an addition to this mix. “The Rich Dad Poor Dad,” game teaches cash flow basics. You can get more information about this game and related reading materials by Googling the title.

The majority of people look at money as a way to pay for their daily living expenses. The problem lies is that viewing money this ways means one thing. You will be spending the rest of your life working to do just that.

You need to look at what you can possibly do generate cash flow for the future that doesn’t require you showing up at a ‘normal’ 9 to 5 job. Reasonably speaking most of us are strapped for cash and worry about making bill payments rather than what we can do to change the future.

Let’s start small. As a matter of act, let’s start with a project the kids can also be involved with. Of course, if they do part of the work, they will get to keep part of the profits. After playing a few rounds of these games, sit down and have a chat with the kids.

As a group, you are going to try and put a few of your dollars to work. If it is in the warm weather, suggest that you will help the kids build a lemonade stand. You might also add that you are going to add a batch of cookies for extra sales. You do some research and find out if anyone else in the neighborhood is doing anything similar. I bet you can put your collective brains together and find some innovative ways to make this lemonade stand different from others; and as such draw customers.

It just might be that this is such a success that other kids get the idea to start a similar one. If you register this lemonade stand as a business, actually filing a DBA, doing business as, with the state, then other kids will not be able to use the same name. If such an opportunity does open up, you might have found a door to start a franchise of specialized lemonade stands.

If there are no kids to bring into mix, here are a couple of fairly easy ideas for adults to start out with. They will also be easy on the budget. Take a look at Penny Stocks. They are labeled such because of the low cost. Find someone who is an expert in the field and decide if this is a road you wish to take. Do your own reading before deciding to go with an advisor.

If you work in an office, I bet you could find out very easily what types of baked goods are favored with your co-workers. I know who wants to bake in this day and age? If you are good at pastries, cookies, brownies, bake up a sampling of what you think might appeal to your coworkers. Have a plate by your desk, labeled ‘free samples.’ Be explicit in letting them know, the free samples are one time only. Find a price, if successful, that will cover costs and let you pocket some money, profits.

There are also investment clubs. A group meets, along with the help of a financial advisor, to layout the goals of the group. Don’t join a group unless the monthly dues are something you can handle. I had a friend involved once. The dues were $200 a month. The idea of the group is to gather a pool of money and invest larger amounts than you could possibly do on your own. It cuts down on potential risk when it is divided among club members.

Before a club like this launches, the group usually meets and decides what types of investments they are interested in. Are you going to invest in socially conscious areas? Are you staying in one particular industry? Also to be decided are monthly dues, the frequency of meetings and then penalty for non attendance. These are the very basics.

Do not be fooled into thinking that at least Social Security will be there for you on retirement. I have a son in his mid 30s who told me his recent letter from Social Security about his potential retirement had a cautionary note. By his retirement age the fund will be broke as it is in the red already. There are more people retiring than in the workforce, so this situation is going to get worse.

If you don’t grasp the fact now and put a plan in action about putting your money to work, you can plan on the fact you may never be able to retire. It isn’t easy to change your way of thinking. The only way is one step at a time. You will begin thinking like the wealthy.

For more of my work: http://www.bellbusinessreport.com

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