So you want to become wealthy? While there is no single road to getting there, it’s a sure bet that one principle is in place for those who keep their wealth over a lifetime. Live beneath your means. Spend less than you make. Do not spend more than you can afford. It does not come any simpler than this. If you want to create wealth, you have to learn to do this. It does not matter if you make 10,000 a year or 1 million, if you do not learn how to master the step of spending less than you earn, you will never create lasting wealth.
While the concept is simple, chances are you are not following it. In all likelihood, you are living paycheck to paycheck, treading water. No matter how hard you try, you never seem to get ahead. Even when the raises come, the money still disappears just as fast. If this sounds like your situation, you probably have not mastered the difference between needs and wants.
First, it’s important to realize that wants and needs are not the same. When you read that sentence, you probably said to yourself, Of course, everyone knows that. Again, while everyone may know this intellectually, it is a good bet that you are not completely honest with yourself when it comes to the things you purchase.
How many times have you heard (or for that matter said to yourself) I absolutely need (fill in the blank) when in reality the meaning was I really want (fill in the blank)? I can not live without those shoes...I will die if I can not have that ring...I simply have to have that car...the list can go on and on. Please do not get me wrong. These are phrases that we all use. That is why it’s important to step back and remember that wants and needs are not the same.
It’s important at this point to make clear that taking the time to critically look at your current lifestyle and what are the true needs versus those things that are convenient wants will go a long way in saving you money and enabling you to spend less than you make. Lets take an example of your TV. Is your TV a need or a want? Although I can hear the arguments already rationalizing why a TV is a necessary part of your life, the truth is that it is more than likely a want. In most cases, it is probably an affordable want (The exception may be if you decided you had to have that 50 inch state of the art plasma television with the price tag of a small car). The question is whether the digital cable TV, 6 premium channels, satellite dish, the on demand movies, the DVD player with movie selection, etc are all also affordable wants?
Here is a list. Take a few moments to jot down what is a need and what is a want.
shoes
designer suit
water
large apartment
bed
ice-cream
lottery tickets
car
entertainment center
club membership
lunch
concert tickets
trip to Hawaii
medicine
necklace
computer
daily espresso
cellular phone
golf clubs
furnishings
Unfortunately, the answers to these questions are not completely black and white. What may be a want for one person may be a necessity for another person. For example, lets take a look at a computer. If you make your livelihood on the computer, then a computer is a necessity for you. If you only use a computer to play the latest online games, then it is not. Knowing this, we can still make some pretty good guesses as to what are wants and what are needs from the above list for most people. Shoes (and clothing in general), water, bed, car, lunch, medicine and furnishings are good bets to be needs. Now that does not mean that the latest model, 4 wheel drive sport utility vehicle with all the extras counts as a need for most people, but basic transportation to make a living does.
A large apartment, computer and cellular phone may or may not qualify as a need depending on your particular circumstances while a designer suit, ice-cream, lottery tickets, entertainment center, club membership, concert tickets, trip to Hawaii, necklace, daily espresso and golf clubs all probably fall into the want section.
If you can take the time to start being honest with yourself, you will find that a lot of the things which you assumed were an absolute necessity until now are in reality nothing more than wants. Once you distinguish between the two and look at these issues objectively, you have placed yourself in the position to live within your means by simply asking yourself whether or not an item or service you are about to purchase is a need or merely a want.
Copyright (c) 2004, by Jeffrey Strain
This article may be freely distributed so long as the copyright, author" information and an active link (where possible) are included.
A complimentary copy of any newsletter or a link to the site where the article is posted would be greatly appreciated.
About The Author
Jeffrey Strain has published hundreds of money saving articles and the creator of the Daily Money Saving Challenge Program. He is the co-owner of saving money a website dedicated to saving you money.
savingadvice@gmail.com
To Your Success
Martha Lipson
Doing Business Here
Simple Work From Home Opportunity
work at home business
Saturday, January 3, 2009
Thursday, November 13, 2008
A Basic Guide To The Multi-Level Marketing (MLM) Network
Multi-level marketing (MLM) is also referred to as network marketing. The MLM is essentially a type of business model that combines direct marketing with franchising. The term business model describes a vast range of informal and formal models that are used by companies to represent various aspects of business, such as operational processes, organizational structures, and financial forecasts. The MLM business functions by enrolling unsalaried salespeople to sell products and meanwhile earn additional sales commissions based on the sales of people enrolled into their down line, an organization of people that includes direct recruits, recruits' recruits and so on. This arrangement is similar to franchises where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. There can be multiple levels of people receiving royalties from one person's sales. New MLM members may be required to pay for their own training and marketing materials, or to buy a significant amount of inventory to start their career.
The compensation plans vary from one MLM business to the other, but there are basic plans in place. The Unilevel or Stairstep Breakaway plans are the oldest and most popular in the MLM business. These plans features two types of distributors either managers or non-managers. The pay method of these plans includes Baseshop overrides where there are overrides of managers from their subordinate non-managers. This method is the same as any other type of sales organization. Generational overrides are overrides of managers from the baseshop of managers who were previously their subordinate. Most plans compensate at least three generations of such managers. Executive bonuses are commissions for managers who exceed a posted sales quota. For example, 2% of the total company sales revenue may go to a bonus pool that is shared monthly to managers who exceed $10,000 in that month. Commissions are based on the aspect of cycles, where a distributor is paid a fixed amount whenever both legs achieve a certain number of sales units each. Commissions are paid incrementally when the sales volume in each leg matches.
In recent years, the MLM business has developed an image problem due to its resemblance to the illegal pyramid or other similar schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries around the world. Many pyramid schemes try to present themselves as legitimate MLM businesses. In the legitimate MLM companies, commissions are earned only on sales of the company's products and/or services. No money may be earned from recruiting alone through sign-up fees, though money earned from the sales of members recruited is one attraction of MLM arrangements.
A commonly adopted test of legality is that MLMs follow the so-called 70% rule which prevents members "inventory loading" in order to qualify for additional bonuses. The 70% rule requires participants to sell 70% of previously purchased inventory before procuring new orders. There are however variations in interpretations of this rule. Some attorneys insist that 70% of purchased inventory should be sold to people who are not participants in the business, while many MLM companies allow for self-consumption to be a significant part of the sales of a participant. The Federal Trade Commission offers advice for potential MLM members to help them identify those activities that could be scams.
Wishing You Much Success.
Martha Lipson
Doing Business Here:
Simple Work From Home Opportunity
Home Business
The compensation plans vary from one MLM business to the other, but there are basic plans in place. The Unilevel or Stairstep Breakaway plans are the oldest and most popular in the MLM business. These plans features two types of distributors either managers or non-managers. The pay method of these plans includes Baseshop overrides where there are overrides of managers from their subordinate non-managers. This method is the same as any other type of sales organization. Generational overrides are overrides of managers from the baseshop of managers who were previously their subordinate. Most plans compensate at least three generations of such managers. Executive bonuses are commissions for managers who exceed a posted sales quota. For example, 2% of the total company sales revenue may go to a bonus pool that is shared monthly to managers who exceed $10,000 in that month. Commissions are based on the aspect of cycles, where a distributor is paid a fixed amount whenever both legs achieve a certain number of sales units each. Commissions are paid incrementally when the sales volume in each leg matches.
In recent years, the MLM business has developed an image problem due to its resemblance to the illegal pyramid or other similar schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries around the world. Many pyramid schemes try to present themselves as legitimate MLM businesses. In the legitimate MLM companies, commissions are earned only on sales of the company's products and/or services. No money may be earned from recruiting alone through sign-up fees, though money earned from the sales of members recruited is one attraction of MLM arrangements.
A commonly adopted test of legality is that MLMs follow the so-called 70% rule which prevents members "inventory loading" in order to qualify for additional bonuses. The 70% rule requires participants to sell 70% of previously purchased inventory before procuring new orders. There are however variations in interpretations of this rule. Some attorneys insist that 70% of purchased inventory should be sold to people who are not participants in the business, while many MLM companies allow for self-consumption to be a significant part of the sales of a participant. The Federal Trade Commission offers advice for potential MLM members to help them identify those activities that could be scams.
Wishing You Much Success.
Martha Lipson
Doing Business Here:
Simple Work From Home Opportunity
Home Business
Wednesday, October 22, 2008
Using PLR Content to Promote Your Business
I've been doing a lot of reading lately about Private Label Rights (PLR) content. I used to think that it was only for lazy people who didn't want to do their own writing. But as I researched and learn more about it, I came up with lots of great ways I could use PLR in my own business.
If you don't know what I'm talking about, PLR is content that you get from the original author along with their permission to use it as your own. So you can get a great report, put your name on it and have your own product to sell or give away!
When searching for PLR content to use, I found there were a lot of different types of sites available. Some offered monthly memberships and others offered just one time purchases. So always be sure to look around before you decide where you want to buy.
The site I found that was by far the best was PLRWholesaler. Not only do they have an unbelievable amount of content, but it's completely FREE. Most sites charge an arm and a leg for the amount of content that this guy is giving away.
And although I haven't been through everything yet, what I have read is very good quality. It's great stuff you would actually want to use as your own.
Since it's free, I highly recommend that you check out PLRWholesaler and see if they have anything that you can use to help your business. There just may be an ebook or audio recording that you could quickly brand with your information and start selling to your list.
Check it out and, and may you enjoy great success.
Martha Lipson
Monday, October 13, 2008
When to Quit a Business
It is undeniable that a lot of businesses quit their operations because the income from the business is no longer enough to sustain the expenses it incurs. In some cases though, you can also have several businesses to cease operations even when it generates enough income simply because the business owner had decided to get involved in another business. And in some even rarer cases, the business stops operations because there was an offer from their competitor to buy out the shares so that they will become the market leader. If you do encounter this situation, it is important to conduct a cost-benefit evaluation about whether the offer is financially viable.
There are still many other reasons why a business ceases to operate but in a franchise business, the reason for quitting is usually quite common. Some of the reasons that franchise owners cite is the high cost of the royalty fee they have to pay together with the cost of doing the actual business. In addition, there are the overhead expenses, the rental fees, the salary, and the miscellaneous expenses a franchise has to deal with. And while other businesses encounter the same problems, a franchise usually incurs more expenses because they have to buy the products they sell from a specific source; this limits their ability to take advantage of cheaper alternatives.
Another reason why a franchise business may cease is that the product or service they might be selling is already of trend. For example, there are cases when a particular kind of food suddenly becomes popular because of the uniqueness of its shape but there is the possibility that the customers may lose interest once the company stops creating new offerings.
However, despite the challenges you have to face in a franchise business, it is important to remember that the essential characteristic of a businessman is perseverance. You should take note that in some industries, you will have to sustain losses in the first few years of operations before you can enjoy profits. So you need to take this into consideration also before you decide to close your business. But if despite your best efforts, your business still continue on its downward trend, then you obviously have no choice but to cut your losses and hope you can get back your capital upon liquidation.
But the failure of one business should not discourage you from seeking out other business opportunities because this will hinder you from success. You should just count these failures as the price for experience so that you will know what to do the next time you encounter these problems. Because definitely, going into business is a worthwhile endeavor that will enable you to realize your potential while deriving profit at the same time.
Wishing You much success
Martha Lipson
http://www.incomeworking.com
http://homeincomeportal.com/marlip795/fp13.htm
There are still many other reasons why a business ceases to operate but in a franchise business, the reason for quitting is usually quite common. Some of the reasons that franchise owners cite is the high cost of the royalty fee they have to pay together with the cost of doing the actual business. In addition, there are the overhead expenses, the rental fees, the salary, and the miscellaneous expenses a franchise has to deal with. And while other businesses encounter the same problems, a franchise usually incurs more expenses because they have to buy the products they sell from a specific source; this limits their ability to take advantage of cheaper alternatives.
Another reason why a franchise business may cease is that the product or service they might be selling is already of trend. For example, there are cases when a particular kind of food suddenly becomes popular because of the uniqueness of its shape but there is the possibility that the customers may lose interest once the company stops creating new offerings.
However, despite the challenges you have to face in a franchise business, it is important to remember that the essential characteristic of a businessman is perseverance. You should take note that in some industries, you will have to sustain losses in the first few years of operations before you can enjoy profits. So you need to take this into consideration also before you decide to close your business. But if despite your best efforts, your business still continue on its downward trend, then you obviously have no choice but to cut your losses and hope you can get back your capital upon liquidation.
But the failure of one business should not discourage you from seeking out other business opportunities because this will hinder you from success. You should just count these failures as the price for experience so that you will know what to do the next time you encounter these problems. Because definitely, going into business is a worthwhile endeavor that will enable you to realize your potential while deriving profit at the same time.
Wishing You much success
Martha Lipson
http://www.incomeworking.com
http://homeincomeportal.com/marlip795/fp13.htm
Thursday, August 14, 2008
Managing Time Means Managing Your Life
There is one commodity that nearly everyone runs out of and that is time. For some reason when someone opens a home business they believe that suddenly their days will have more hours in them than they did when they worked for someone else. Unfortunately, it doesn't take long for them to realize that there are not only the same number of hours in a day, but that those hours may seem like they have fewer minutes in them.
Time management is not a skill that can be taught,it is a behavior that has to be learned. Many tools are available to help you manage your time, but you have to take the initial steps in getting started before you can make better use of the time you have.Time management will also help you balance their work and home life,commonly referred to as creating a work-life balance and to give you the start you need to realize how closely they are related.
many people have a calendar for their work and a separate calendar for their family life. With the two so closely connected, they only need one calendar. Instead of having to consult with two pieces of paper before determining if you can make a meeting or not, pulling out one calendar can make the decision an easy one. It does not matter what brand is considered the best or the most expensive. The only thing that matters is that you get a planner with a calendar and use it regularly.
Before you fill out the calendar you will need to make sure you have your priorities in order. Every day, new priorities will pop up based on emergencies and customer demands. One thing to consider is that when a customer emergency comes up and is direct conflict with a scheduled family event, you will have to decide on where your priorities are on that specific date and time. If you have a helper who can take care of the customer issue, without conflicting with their family calendar, that's a plus. If not, the customer may have to wait until you get done.
Setting daily priorities should always begin with a block of time being set aside as contingency time. That is time set aside to handle unexpected issues and can be as little as 15 minutes. If nothing happens, you have an extra 15 minutes unclaimed at the end of the day. If it does, you have time to handle it without throwing the schedule complete out the window.
Possibly the best thing you can do to better manage your time is to establish a minimum of 10 minutes every morning to review what you have to do that day and reprioritize any items that did not get done from yesterday's list. This daily planning session can be the first thing you do when you get to your office or when you finish your first cup of coffee. The bottom line is you need to get into the habit of reviewing your daily plans and then stick to the plan throughout the day.
To Your Success
Martha Lipson
Doing Business Here:
http://www.IncomeWorking.com
http://homeincomeportal.com/marlip795
Time management is not a skill that can be taught,it is a behavior that has to be learned. Many tools are available to help you manage your time, but you have to take the initial steps in getting started before you can make better use of the time you have.Time management will also help you balance their work and home life,commonly referred to as creating a work-life balance and to give you the start you need to realize how closely they are related.
many people have a calendar for their work and a separate calendar for their family life. With the two so closely connected, they only need one calendar. Instead of having to consult with two pieces of paper before determining if you can make a meeting or not, pulling out one calendar can make the decision an easy one. It does not matter what brand is considered the best or the most expensive. The only thing that matters is that you get a planner with a calendar and use it regularly.
Before you fill out the calendar you will need to make sure you have your priorities in order. Every day, new priorities will pop up based on emergencies and customer demands. One thing to consider is that when a customer emergency comes up and is direct conflict with a scheduled family event, you will have to decide on where your priorities are on that specific date and time. If you have a helper who can take care of the customer issue, without conflicting with their family calendar, that's a plus. If not, the customer may have to wait until you get done.
Setting daily priorities should always begin with a block of time being set aside as contingency time. That is time set aside to handle unexpected issues and can be as little as 15 minutes. If nothing happens, you have an extra 15 minutes unclaimed at the end of the day. If it does, you have time to handle it without throwing the schedule complete out the window.
Possibly the best thing you can do to better manage your time is to establish a minimum of 10 minutes every morning to review what you have to do that day and reprioritize any items that did not get done from yesterday's list. This daily planning session can be the first thing you do when you get to your office or when you finish your first cup of coffee. The bottom line is you need to get into the habit of reviewing your daily plans and then stick to the plan throughout the day.
To Your Success
Martha Lipson
Doing Business Here:
http://www.IncomeWorking.com
http://homeincomeportal.com/marlip795
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