What Are The Main Ways To Make Money?

Everybody (well…usually everybody) wants to make more money. We want to not only have more but to be more and do more. More for ourselves, for our families, for our community, for our church and our favourite charities. It’s a natural progression in life but to do all this we need money.man-with-dollar-sign-02

 

Some want more money than others…and that’s okay. We all have different wants and needs and desires. But the key thing in life is that as human beings we have to sit down and really think about what it is that we want in life… like how much money we want (or need) to make the life that we want the way that we want it.  It never ceases to amaze me how many times I’ve seen or heard people say “I want to be a MILLIONAIRE”.

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“Yay” I think to myself…that’s great…but what is it that you propose to do with the million once you get it…and more importantly, HOW do you intend to make that million (or more)?

 

Different Ways To Make Money

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There are so many ways to make money. Most of us make money in the offline world, ie from a job. And that’s okay…but a job has its limitations. I’ll go into those limitations in a bit more detail in a moment. The other way is online, i.e. via the internet. The internet (the greatest gift and tool ever) is a medium that allows us to make money while we sleep (literally). Or it enables us to extend our natural boundaries and go global. Never before has it been so easy to do this.

Online versus Offline
Online businesses have a major advantage over an offline (or what’s called a “brick and mortar”) business. For one thing in the online world you don’t have the massive overheads that you have in the offline world. You also have a far greater reach and you’re not relying on local traffic and footfall, always hoping that your customers will walk in off the street and buy something.

I’d like to make a point here though about making money and the various methods that we can use to do so. I’ve been on this planet for a very long time. Unfortunately I have finally had to admit to myself that I am what one would deem to be a slow learner! Man-DepressIt takes me a little while and several attempts to “get it”. What I’m talking about is the fact that I’ve been making money the inefficient way since the late 1990s! I’ve been working…in a job…yet since around the end of 2002 I kinda realised that having an online business could be better than doing a 40hour + a week job in an office. But the internet was still a mystery to me. It was so complicated to get to grips with all the different strands that are needed to piece it together and make real money.

Sidetracked by Property
In the meantime I figured I could look at property as a way to financial freedom. So I invested in property.A person holding a miniature house and some dollar bills Slowly, over a period of time, I built a very small property portfolio…I saved hard and invested every penny I earned into buying property. Do you know what? I don’t make any money from the properties! Hard to accept that eh? Well it’s true. Properties have to be maintained and refurbished regularly and painted and on and on and on. There are a whole host of expenses that properties attract and when I sat and did my numbers I couldn’t believe that over the years I’ve racked up a whopping £40,000 (roughly) tax LOSS. That means I’ve spent way more than I’ve earned from the cashflow from the properties and the overspend is being supported by MORE DEBT! Not good is it.

And would you believe it…property was really just another time suck. Granted the long term possibilities were better than being in a job, but when I sat and thought about it…I was spending alot of time at home or at the property working on the property or with the tenants. Also the property investment market is highly regulated… and GETTING WORSE. The risks associated with property investment and landlording are growing… with the biggest risks coming from the tenants themselves!

Ticking Time-Bombs!
So basically all my tenants are walking time-bombs…ready to go off and explode in my face. Time Bomb TNT DynamiteOne thing goes wrong and they call in the environmental health department…then it’s downhill from there. Bureaucracy, paperwork, massive expense. Contrast this with an online business. Much less risk and opportunities for things to go wrong. Yes…things will go wrong…but in the online world the downsides are much smaller provided you stick to some basic rules.

As I said earlier, there are some problems with offline businesses when compared with online based businesses. What are they? Well the main one is the amount of startup capital that you need to invest in a brick and mortar business. You need to lease premises (shop), fit the shop out, buy equipment, buy stock, hire staff, advertise heavily for customers and so on. It’s a similar issue with property. You need to have a large deposit, refurbish the property, furnish the property, use the services of a variety of professionals to purchase, refurbish and let out the property and so on.

Now where the job is concerned, you are trading time for money. Money Time Buttons Show Prosperity Or IncomeYou have to be at your place of work for a set number of hours. You get paid for those hours and maybe more for overtime etc. But your pay is fixed and you’ll only get pay increases once a year on average, if at all.

The end result is that it will take you a lifetime to SAVE a million. With an offline business you have an 85% chance of FAILURE in the first five years of the life of your business. So the odds are stacked against you.

Hard Work And Good Marketing
However, there is a way you can earn that million and that is if you use the internet to create or host your business. With hard work man-jumpand good marketing it IS possible to make this kind of money and live your life the way YOU want to live it. The best thing though is that the startup costs for setting up your business online are waaaaay lower than offline businesses. And as regards the job, the online based business gives you the opportunity of working hard once to create a product or campaign or strategy etc…set it up and then let it sell on autopilot. Set up a number of income streams like this and soon you’ll be able to replace your day job income and then leave the job.

This is just the start of the journey. Next time I will dig into which online opportunities may be best depending on your personal circumstances.