Posted on March 5th, 2008 in Advice, Free Business Model, General, Strategies | 1 Comment »
Getting rich is simpler than you might think. The formula is well known.
1. Get a job
2. Start saving money
3. Wait 40 years
At the end of step 3 youâ€™ll be rich. Youâ€™ll have hundreds of thousands of dollars due to the magic of compounding.Â
To make the formula clear, you need regular income, some discipline and time. Keep making money, set it aside on a regular basis, and wait for a long time. In the end, youâ€™ll be rich. Youâ€™ll have hundreds of thousands of dollars, if not millions.
There are three reasons this works. First, you get compounding. That is, you make money on money due to reinvested gains coming from capital growth and dividends.
Next, you have dollar cost averaging in your favor if you regularly invest. If you regularly drop money into a 401K, for example, youâ€™ll buy more shares at a lower price and fewer shares when the price is higher.
And finally, there is risk reduction. Since youâ€™re investing over time, youâ€™re likely to win over the long haul. The stock market has provided 8-10% gains on average over the years.
This sounds pretty goodâ€¦
But hold on, who wants to get rich fast? Who wants Hot Damn Wealth? You know â€“ lots of money in your hand, right now. The answer is easy: Everyone wants hot damn wealth!
One way to make money is to compress massive effort and brainpower into just a few short years. Typically this occurs by creating a startup business. What you do is work 80-100 hours per week, create something wonderful that everyone wants, then either go public or be bought out.
This sounds pretty good. But, there are two problems. First, you need real technical skill or business skill. You need to be able to actually create something unique and new and jazzy. Thatâ€™s no small deal. And second, you have to compress years of your life into 2-3 years. That means burning up 2-3 years of your life â€“ itâ€™s a sacrifice that you must accept.
So, the start up route to wealth is not going to appeal to work at home mothers. Itâ€™s not going to work for people with 2-3 kids and a mortgage and college expenses. Basically, life gets in the way. Consider also that most start ups revolve around start up hubs, like Silicon Valley.
I will say that going the start up route is interesting and exciting. But, there is high risk. On average about 90% of start ups fail. That means that you have a 1 in 10 chance of getting rich fast. For some people â€“ think youth â€“ these are great odds. Plus you get experience. But, for many other people, the start up path is not viable.
So, how can you get Hot Damn Wealth?
The answer is starting your own small business. You can still work for a big ape company and fill up your 401K and grab health care along the way. No problem with that. But, you start something on the side — apply a little elbow great and booststrap as much as you can.
When you start your own little business on the side, you get these benefits:
1. Reasonably low risk since you can fall back on your big company job
2. You can test the waters, meaning you can see if “real business” is for you
3. You can rapidly master a small niche and go large on your own schedule
4. Costs to start a small business, especially online, are reduced
There are many other reasons. The key is that you can create a business, give it a try, then see if you can get rich quickly. It is possible. And, even with a high failure rate, you can be safe.
Now, hereâ€™s another piece of the puzzle. You should probably investigate internet marketing, meaning the tools and techniques for marketing online. If you master online marketing techniques, two things happen:
1. Your chances of failure go down
2. Your opportunities increase
Mastering online marketing is more important to building wealth online, in many ways, than the actual topic or niche youâ€™re working on. If youâ€™re missing the point, consider that you can use proven business systems in any niche to achieve Hot Damn Wealth. How you make money (systems, techniques, approach) is more important than the actual topic or type of business you’re running.
Hereâ€™s a great example: Watch these Free Business Model videos. In the first video, youâ€™ll learn all about autoresponder memberships. If youâ€™re scratching your head, thatâ€™s fine. The video explains it all.
My point is that there are many proven business systems, just as you can see with the Free Business Model videos. You can achieve radical wealth online in virtually any niche if you understand the models. This is true in thousand of niches. Risk is reduced significantly, with the right models.
- You donâ€™t need much money.Â
- You donâ€™t need venture capital.
- You donâ€™t need fancy equipment.
You donâ€™t need much at all except determination and some knowledge. Youâ€™re not tied to a dead end job to achieve wealth over 40 years of your life, and youâ€™re not heads down for 2-3 years straight, destroying your health with poor odds of success.
There will always be room for smart marketing online. Hot Damn Wealth is possible. Once again, if you need a place to start, so you can wrap your mind around the possibilities, consider the zero cost Free Business Model videos.Â