So what are the best ways to earn money online? Well it’s a question that I have been asked more times than you could ever imagine. The answer however is not as simple as people would want it to be. When making money online, there is no “best way”. We are all different and we all have different experience that we have collected throughout our lives.For me the best way to make money online is to cultivate a spirit of entrepreneurship. An entrepreneur always has to be on the edge, and thinking out of the box to come up with profitable ideas. Below are three of the most common ways an entrepreneur makes money on the Internet.1. Starting your own online business.The ultimate way to make money online is to start your own online business or website where you offer services or items at good prices. The advantages of having your own business is that you do not have to rely on anyone else than yourself. If you have your own website where you offer services such as WordPress installations, then you don’t have to worry about any third parties.The amount of money you can make by setting up your own online business is only limited to your ideas and experience. It will most likely take a while to get the whole thing rolling and generating money, but in the end it will be worth it. So if you are able to provide people with something they would like to spend money for, then this is the best option for you. Just remember to always analyze your competition so that you don’t end up in a business where you have no chance of scoring a sale.2. Sell your own products.You might think that this one is exactly the same as the above one, but it’s actually not. Selling your own products does not mean that you need to build a business around it. Let’s say that you write an eBook or create software that will help people with something. Now all you have to do is to get people to promote your product.This can be done by contacting and convincing top affiliates and then uploading your item to websites such as ClickBank.com. If your product is of value to others you might be able to cash in a 5 figure income for months to come. A smart move is to release an update of your product after a while, especially if it was a success the first time. By doing this you will be able to cash in even more money, since people now knows about you and your products.The benefits of selling your own products might not be as great as starting your own online business, but it requires only a fraction of the work and it might be a great way to generate the start-up money that an online business may require.3. Making money through affiliate marketing.So, in the beginning I mentioned that you should sell your own products, but promoting other peoples products might also be very rewarding. Affiliates earn a share from each product they sell, this might be everything from 10% to 90%.Affiliate marketing is not for people who want to see money coming in as soon as they start promoting a product online. It takes hard work and most likely a lot of knowledge in marketing and search engine optimization. In the end you are competing against sometimes hundreds of other people promoting the same product, if you fail you will earn nothing, if you succeed you might earn thousands of dollars. So until you come up with a great idea of your own product, you might want to give this a try.The simplicity of the above online money-making methods, should not be underestimated as it is all about focus and taking action. There are numerous examples of people with low levels of computer literacy, who have managed to make a very good income online. The simple trick was to educate themselves, by learning as much as possible, and not giving up on their financial independence dream.
8 Year Auto Loans
We are seeing longterm loans of up to 8 years on new cars. Generally the Financing Department of a Car Dealership makes as much money as the sales department. After 0/0 deals have come and gone, the new car sales markets are looking for ways to continue the high sales. By offering lower payments of $50-100.00 per month less, car buyers who could not afford the car they wanted will now be able to fit it within their budgets since so many Americans are underemployed, in other words working at Home Depot even though they have two advanced degrees.The telecom job they may have had at $60-88K per year has turned into a $36K per year cash strapped job. These consumers are still being targeted by the dealerships even with these current issues. The real problem comes down the road similar to those which hurt the Leases where the people were upside down in their values upon the time when most turn in their cars; average is three years.GE Capital left the leasing game for SUVs and cars and GMAC and FMC lost millions in bad lease deals when the cars were traded in, they could not be sold for the agreed upon residual values. Many times the trade ins before end of term or open end leases meant the consumer would have to bury those upside down numbers into the financing of their new car. So they might have traded in a Jaguar or Cadillac and roll over the difference and then have payments of $400.00 per month on a Nissan Sentra or Ford “Fajita,” I mean “Festiva” Turbo of course with all options? This was a huge game in the leasing days in the Early 90′s.With 8-year loans, payments will be lower, but that three-year itch to buy a new car will not be fulfilled without taking a huge hit. This of course would be bad for future sales of cars. Or a worthy temporary fix for now to sell more cars, but would mean that the economy would have to be rather wonderful in 8 years. Unfortunately if people keep their cars longer, then the auto parts stores will do better in 3-5 years, due to the planned obsolescence of the vehicles, which is manufactured into the car in the first place. Some industries like car washing, which tracks the new car markets for about 3-4 years as people with newer cars tend to spend more money on washing will be hit after that time period. Who wins? If this huge play for 8-year loans sells many cars in 2003 Q3 and through 2004 up cycle Election Year, does well it will help after market auto accessories as people add-on to their car. People have an emotional tie to their cars and just like men buy Viagra and Women get augmentation or breast enhancements, this same drive of self, is what drives those to upgrade or personalize their cars with new features as they move to build upon this extension of their personalities, our great American love of the Automobile. Talk about “Apple Pie” these are real trends. Anyway if auto parts is up and car washing is down, at least there will be more cars on the road, so the expanded pie will take care of the decreases. Occasionally there are events, which trigger large sector rotation or trigger small sub-sector changes, which move markets. Eight year auto loans is one strategy, which has been played before with auto leases, but there is a long-term problematic issue to be concerned with in such a tactic for shorter term profits.
The Best Way to Understand Personal Finance
When we are trying to understand Personal Finance, the best thing to do is to understand what Personal Finance is NOT.Many people think that accounting and personal finance are the same, but Personal Finance is NOT Accounting.On the surface they may seem the same; they both have something to do with money. However, the definitions will help us better understand the differences.Merriam-Webster’s definition of accounting is “the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.”Based on this definition, we see that accounting is the process of analysing and recording what you have already done with your money.This is why having an accountant is usually not enough when it comes to your personal finances.Accountants generally don’t concern themselves with personal finance (there are some exceptions to this rule). Unless your accountant is also a financial advisor or coach, he or she will likely just look at what you have done with your money at the end of the year and provide you with a report of their analysis.This report is usually your tax return; what you owe the government or what the government owes you.Very rarely does the accountant provide an individual with a Balance Sheet or Income Statement or a Net worth statement; all very helpful tools that are necessary to effectively manage your personal finances.Personal Finance is looking at your finances from a more pro-active and goal oriented perspective. This is what provides the accountants with something to record, verify and analyze.The Merriam-Webster’s (Concise Encyclopedia) definition of “Finance” is the “process of raising funds or capital for any kind of expenditure. Consumers, business firms, and governments often do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could earn interest or dividends if put to productive use. Finance is the process of channeling funds from savers to users in the form of credit, loans, or invested capital through agencies including COMMERCIAL BANKS, SAVINGS AND LOAN ASSOCIATIONS, and such nonbank organizations as CREDIT UNIONS and investment companies. Finance can be divided into three broad areas: BUSINESS FINANCE, PERSONAL FINANCE, and public finance. All three involve generating budgets and managing funds for the optimum results”.Personal Finance SimplifiedBy understanding the definition of “finance” we can break our “personal finance” down into 3 simple activities:-1. The process of raising funds or capital for any kind of expenditure = Generating an Income.
A Business gets money through the sale of their products and services. This is labeled “revenue” or “income”. Some businesses will also invest a portion of their revenue to generate more income (interest income).A Person gets money through a job, or a small business (self employment, sole proprietorship, network marketing or other small business venture). The money coming in can be a salary, hourly wage, or commission, and is also referred to as income.A Government gets money through taxes that we pay. This is one of the main ways that the government generates an income that is then used to build infrastructure like roads, bridges, schools, hospitals etc for our cities.2. Using our money to make purchases = Spending Money.
How much we spend relative to how much we make is what makes the difference between having optimum results in our personal finances. Making good spending decisions is critical to achieving financial wealth – regardless of how much you make.3. Getting optimum results = Keeping as much of our money as possible
It’s not how much you MAKE that matters – its how much you KEEP that really matters when it comes to your personal finances.This is the part of personal finance that virtually everyone finds the most challenging.Often people who make large incomes (six figures or more) also tend to spend just as much (or more) which means they put themselves in debt and that debt starts to accrue interest. Before long that debt can start to grow exponentially and can destroy any hope they would have had to achieving wealth.Personal Finance made simplePersonal Finance doesn’t need to be complicated if you keep this simple formula in mind:INCOME – SPENDING = WHAT YOU KEEPFor Optimal Results you simply have to make more than what you spend and spend less than what you make so you can keep more for you and your family!If you are not actively working towards an optimal result you will by default get less than optimal resultsIt really is that simple!Now that you understand personal finance and WHAT you need to do, the next step is learning HOW to do this!The best way to start is by following these 3 simple steps:-1. Know what you want to achieve – “if you don’t know where you are going, any road will take you there” has become a very popular quote, probably because it is so true. One of the habits that Stephen Covey highlights in his book “7 Habits of Highly Successful People”, is to always start with the end in mind. Knowing where you want to go will be a big help in ensuring you get there.2. Have a plan – that you can follow that will get you to your goals. Knowing how you will achieve your goals in a step by step plan is invaluable. Sometimes this is easier with the help of an advisor or a financial coach.3. Use tools and resources – that will help you to stick to your plan and not become distracted by the things in life that could limit our incomes and make us spend more than we should. Don’t try and work it all out in your head! You will end up with a massive headache and your finances will become one gigantic dark fog!