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Money Lessons from Michael Jackson

Following the sudden passing of pop superstar Michael Jackson, many people around the world are reminiscing about his music and mystique. However, as a financial advisor, I can’t help but focus my attention on Michael Jackson’s finances.

As the stories about his financial situation come to light, it appears that Jackson had serious money problems. Despite a lifetime of achievement, Jackson’s final curtain call revealed foreclosures, failed ventures and financial chaos. At the end of the day, the ‘King of Pop’ was just another person who suffered the consequences of ignoring the principles of money success.

After coaching hundreds of clients, I have discovered that whether you earn millions of dollars or minimum wages, once you break the rules that govern money, you’re going to pay a heavy price. Here are some of the lessons that have been highlighted in the Michael Jackson saga:

No Matter How Much You Make, You Can’t Spend More Than You Earn

If I earned a hundred dollars every time I heard someone sincerely say, “If I got a million dollars today, I’d never be broke again,” I would be well on the way to creating a similar fortune for myself. The reality is that many people show an amazing propensity to increase their spending in excess of their income.

Unfortunately, Jackson was no different. Although his musical genius made him millions - his 1982 hit album Thriller is still the world’s best-selling album of all time - Jackson lived an excessive lifestyle that usurped his earning power. In a 2003 court case, it was revealed that Jackson was spending US$20 million to US$30 million more each year than he earned. (Take comfort if you’re only $10,000 over budget every month!)

Living within your means is a simple principle that is perfectly expressed by this ditty, “If your outgo is greater than your income, then your upkeep will be your downfall.”

You Can’t Borrow Your Way Out Of Financial Difficulties

Financing a budget shortfall by borrowing is a perfect blueprint for financial disaster. The only way to cure this common consumption problem is to trim unnecessary spending and/or earn more to pay your bills. Borrowing to make ends meet will only increase your monthly obligations and your money distress.

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Lavish lifestyles, pricey properties and costly court cases all reportedly contributed to Jackson’s money problems. In an attempt to rebalance his financial position, Jackson used his assets to secure loans totalling US$200 million from the Bank of America.

Repaying this loan probably created more cash flow problems, as Jackson also had to turn to wealthy friends to bail him out.

Two money principles that can help you to manage debt are: never borrow to finance your lifestyle, and if you’re in debt, you can’t borrow your way out of it.

Don’t Leave Your Family In Confusion When You Die

As reports continue to roll in about the circumstances surrounding Jackson’s death, it appears that there is uncertainty about his final wishes. The Jackson family lawyer has commented that there were stories about the existence of a will, “but none has been presented to the family at this time”.

Amid speculations that it could be a lengthy and complex process to settle Jackson’s estate, there is hope that he had the foresight to set up a trust that would help to cushion his beneficiaries from having to pay out millions in probate fees.

It’s never too early for you to institute this important financial rule: make proper provisions while you are alive to take care of your family and assets when you die.

Passive Income Keeps Paying Even When You Stop Working

The Jackson drama isn’t all bad news. Thanks to his incredible talent and prolific production of great music, Jackson’s income will only increase after his death. Already, the entertainer’s untimely demise has led to record-breaking sales of his albums and music videos. Jackson “may be worth more dead than alive,” opined Jerry Reisman, general counsel for the recording studio in which Thriller was produced.

Although most of us will never attain Jackson’s earning ability, this scenario is a perfect example of the power of passive income. If you really want to be wealthy, you have to create opportunities to earn money even when you are not physically working. Some options include: royalties from music or book sales, Internet sales, network marketing, and franchising a business idea.

You Really Can’t Have It All

Although he had fortune and fame at his fingertips, Jackson was reportedly a lonely, isolated man. Some people believe that getting more money will solve all their problems; we can see that didn’t work for Jackson. Despite all his wealth, he never seemed to achieve true happiness.

Remember these principles: there is more to financial success than just the accumulation of wealth; your money should help to enrich your life and that of others; and when your time on earth comes to an end, you can’t carry it with you.

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, July 02, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl

Is Network Marketing A Good Business Opportunity?

Earning additional money has become a necessity for most people in these tough financial times. Gone are the days when persons could feel comfortable with a single source of income - for some people, a nine-to-five job has almost become an endangered species.

As people look for ways to supplement or replace their salaries, one business opportunity has risen to the forefront as a viable option. Network marketing, also called multi-level marketing (MLM), is now being seriously considered by many people as a route to starting their own business.

According to Wikipedia.com, network marketing is a selling strategy that compensates promoters of direct selling companies for product sales they personally generate, and for the sales of others they introduced to the company. By using referrals and word-of-mouth promotion, independent business owners receive compensation for the volume of sales they and their down-line team can generate.

Marketing Concept Or Money Scam?

This alternative method of marketing products has been underutilised by many people due to their ignorance of how it operates. Direct selling simply allows consumers to benefit from buying or selling products straight from the manufacturers or large distributors. The money that would normally be paid to wholesalers, retail outlets and advertisers can now be passed on as commissions to the end users.

Over the years, the network marketing model has received a bad reputation due to the actions of pyramid scheme operators claiming to offer legitimate MLM opportunities. Pyramid schemes entice people to join them by offering a monetary reward for enrolling others into the programme, without any product or service being consumed.

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To distinguish a viable network business opportunity from a pyramid scam, you have to ensure that the main source of the commissions is coming from the sales of the company’s offerings. If the plan offers impossibly high compensation payouts that are tied to pricey entry fees from new recruits, it may be a sign that the business is likely to be a non-sustainable operation.

The reality is that the multi-level rewards concept already exists in many organisations. Sales people earn commissions on their individual efforts, while their sales managers and their bosses also earn bonuses from the combined efforts of their teams.

For People Who Like Helping People

Network marketing operations are, however, fundamentally unlike other businesses. Regular business owners may be accustomed to competing with others to ensure that they come out on top. On the contrary, being successful in network marketing requires that you work with others in your team to help them to build their own businesses.

Robert Kiyosaki, author of Rich Dad’s Business School for People Who Like Helping People, confirms that “If you are a person who truly wants to help as many people as possible achieve their financial goals and dreams, then the network marketing business is worthy of your time”. Kiyosaki reveals that network marketing offers several positive values that can make it fulfilling for the right people.

Good MLM opportunities will help you to develop your sales abilities, which Kiyosaki insists is the number one skill that all business people must have. He notes that most people aren’t afraid of selling, they are afraid of rejection; and points out that the leaders in the business should help to guide you in facing and overcoming your fears about being rejected.

A creditable networking business should also offer education in areas such as leadership skills, communication skills, people skills, time management, money management and investing skills, goal setting and accountability.

Is This The Business For You?

When evaluating a network marketing opportunity, here are a few questions to consider:

- What is the product or service being offered? You need to decide if the company’s offering is something that you will personally use and feel comfortable recommending to others.

- Who are the principals in the organisation? Investigate who is in charge and their track record of success in business, just as if you are checking out any other business option.

- Are you comfortable being trained by the person who introduced you to the opportunity? If your potential sponsor is new to the business, can you get access to others in the line of sponsorship who can guide you?

- How is the money made? Make sure you have a clear understanding of how the compensation plan is designed. Is it possible to make a living doing this business full-time, or will it only bring in part-time income?

- Are you willing to do what it takes to become successful? Many people fail at network marketing, not because the business model or product line was not viable, but because they did realise that it required education and proper work ethics to succeed.

As you look for ways to increase your income, remember that network marketing is not a get-rich-quick scheme that will effortlessly make you money overnight. However, if you’re willing to be trained, and to then teach others to become successful in business, it just might be the opportunity you’ve been waiting for!

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, June 25, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl

On Your Mark, Get Set, Goal!

“The journey of a thousand miles starts with a single step.” - Chinese proverb

The process of achieving your goals, whether personal, career or financial, can sometimes feel like a never-ending journey. In over eight years of coaching people about money, I have discovered that most persons don’t realise that getting what they want out of life is often easier than they think.

In today’s world where instant gratification is a common expectation, many people think that if the desired goal does not appear in their laps within a few months, it means that their objective is an impossible mission. This mistaken belief is the number one reason why people fail to reach their targets and continue to ‘lead lives of quiet desperation’.

Jeff Olson, personal development coach and author of The Slight Edge, confirms that the pathway to goal achievement can be a simple process, once you understand and consistently practise some straightforward steps. Here is Olson’s map for reaching the goal line of your big dream:

1. Put your dream in writing

Olson declares that envisioning, the ability to create a vivid image of something that has not yet occurred, is the most important task in goal attainment. You should be able to see the desired end as if it already existed.

However, Olson explains that formulating the picture in your mind alone is not enough to take you out of the starting gate. The key is to take your mind’s vision and make it into something tangible. “It needs to become physical; it needs to involve all your senses,” Olson asserts. You have to write down your dream on paper for it to become real.

After writing down your desire, you must make it as specific as possible by clarifying what your dream entails and when you want it to come into being. This is what transforms a dream into a goal. For example, if you want to be wealthy, write down exactly how much money you want to earn as annual income and the value of your net worth; then declare a definite timeline to realise your intention.

2.  Review your dream daily

Olson reveals that the main reason for putting your dreams in writing is that you need to look at them every day. Reviewing your goals regularly helps to remind your brain where it is supposed to go so that it doesn’t drift off, he explains.

Want to learn how to achieve your goals? CLICK HERE!

Focusing intently on your goals will help your subconscious mind to really believe that it’s possible for them to come true. This subliminal conditioning will cause your brain to come up with strategies and possibilities that your conscious mind could never create. As Olson maintains, “a series of events starts in motion that you could never have predicted or planned to get you there.”

3. Be willing to pay the price

The reality is that you have to be willing to make sacrifices to achieve your big dreams. World champion Usain Bolt didn’t just get up one day and break the 100-metre record; he had to sweat through thousands of training hours to accomplish his incredible feat.

Olson insists that “whatever the dream, whatever the goal, there’s a price you’ll need to pay and that means something you’ll need to give up.” So if you dream of having a successful business, be prepared to sacrifice your leisure time, to put aside money instead of spending, and to keep going even when you don’t feel like it. Think realistically about your goal - what price will you have to pay for success? Are you really willing to pay that price?

4. Get started with a plan

It’s obvious that to achieve your goal you need to have a blueprint for success. What usually stops many people in their tracks is that they have a difficulty seeing exactly how their dream will be actualised.

Imagine this: you are barely making ends meet; your bills are piling up; the creditors are at the door; yet in your heart you desire to own your own house. You look despondently at your current situation, and seeing no route to your dream, you give up before you even start, thinking that it’s impossible.

Olson notes that this is where most people get thrown off course, as they think that they have to create the right plan to get them all the way to the goal. He explains that while you have to start with a plan, this first plan is most likely not the one that will see you all the way to the end. “The point is to simply come up with a plan that will get you out of the starting gate.”

To reach the end of the race, you have to start it. However, many people remain on their marks, too paralysed by fear and uncertainty to move when they hear the starter’s gun. Although you may not have all the answers, get started with what you can do now. Continuously review your progress and make necessary adjustments to your game plan, while keeping your focus on your dream.

See you at the finish line!

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, June 18, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl

Wants vs Needs - Can You Have Both?

“In these challenging economic times I feel a little guilty when I spend on trivial items. I’m currently saving more than ten per cent of my salary and I have never been careless with my money. Is it financially unwise to buy something just because I want it?”

Financial wisdom normally dictates that people should spend their money acquiring the things they need instead of splurging on things that they want. A need is something that the human body requires for survival, such as food, shelter, and clothing.

In reality, most of the things we spend money on are things we want, not need. But wouldn’t life be boring if we only focused on our basic requirements all the time? Is there any way to get both what we need and what we want?

If you’re a consistent saver, generally sensible with spending, and not burdened by consumer debt, it is possible for you to have the best of both worlds. While you shouldn’t throw caution to the wind, there are some financially smart ways to reward yourself without feeling guilty.

Budgeting To Meet Your Wants

One way of catering for your wants is to plan for them in your budget. The great thing about a budget is that it gives you the power of choice - you can actually get both needs and wants by choosing how and where you spend your money.

The first step is to download a personal budget from the financial tools section at www.financiallysmartonline.com. Record all the mandatory things you need to spend on such as groceries, rent or mortgage, utilities and children’s expenses. Then consider all those essentials that don’t occur regularly such as cooking gas, insurance or school fees, and calculate the average monthly amount for these items. Finally, set aside allowances for emergencies and medical expenses.

After you have entered amounts for these needs, consider the things that you want. Always desired to stay in a luxury resort? What would it cost? Been thinking about redecorating your bedroom? How much would you have to pay? Now look back at the entries in your budget and decide if there are any expenses that could be reduced in order to get some of the things you really want.

For example, you may have included your cable bill as a compulsory monthly expense. But do you really watch that much TV anyway? What if you temporarily suspended the account and saved up enough money to afford the item you desired? Look at your grocery list for things you can sacrifice for a few months in order to get what you want. It just might be worth a few lunches of crackers and sardines!

Need help with managing your money? CLICK HERE!

I recently went to a friend’s garage sale, taking only $1,000 with me as I was determined not to overspend. I discovered two $500 books on finance which would be very helpful for my business. Then I saw a $500 trinket box that perfectly matched my office decor. In one hand I clutched the two books that I needed; in the other I tentatively held the box that I really wanted. In the end, I compromised by giving myself both; I was satisfied that I had stuck to the game plan, yet thrilled that I had acquired the object of my desire.

Earning To Achieve Your Wants

As a financial advisor I don’t always tell people to give up non-essential spending; if they really want to attain a certain lifestyle, I tell them to find ways to earn more money. Unfortunately, many people don’t see the connection between working smarter and achieving the finer things in life, choosing instead to overuse credit cards and payroll loans for instant gratification.

Do you know how much it would take to live the life of your dreams? Too many of us accept our current existence, never believing that it’s possible to get what we really want. It’s almost impossible to hit an invisible target, so use your budget planner to help you set earning goals to achieve your wants.

After you have filled out your real-life budget, then calculate the cost of the things you would like to have, such as an annual vacation or investments towards an early retirement. Once you have totalled the expenses in your dream budget, you’ll now have a target earning amount to turn your wishes into reality.

The next step is to design an action plan to increase your income over time by actively looking out for opportunities when they present themselves. Remember that challenging times always present openings that enterprising persons can take advantage of. Examine your surroundings - your workplace, school, community - and try to identify problems and needs that you can solve. Get creative in using your talents to generate extra money.

With savvy money management skills and smart income-earning options, you CAN satisfy both your needs and your wants!

Financial Wellness in the Workplace

“Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line.” - E Thomas Garman, Personal Finance Employee Education Foundation

Last week we looked at some poor money habits that can cause you to feel distressed about your finances. These practices include spending more than you earn, not saving for emergencies, depending on credit for consumer purchases, not planning for financial goals and taking unwise investing risks.

Research has shown that people with money problems usually end up being tense, worried and depressed. The Centre for Financial Social Work has stated that “money issues are the greatest stressor in peoples’ lives.” Financial distress can actually lead to insomnia, high blood pressure, migraines and other serious health concerns.

While it’s clear that people’s money challenges impair their personal lives, it may not be that obvious that these troubles can negatively impact the workplace. What happens when financially challenged people go to work? Do they leave their money worries at home?

Money Distress At Work

The reality is that employees’ personal financial problems will spill over into the workplace. This results in several negative implications which eventually lead to lower profits for businesses:
Absenteeism - studies show that financially stressed workers use more sick leave and are absent from work more often;

‘Presenteeism’ - although employees are at work, they spend time on activities unrelated to their jobs such as talking to creditors. The Integrated Benefits Institute has declared that presenteeism can account for three times more lost work time than absenteeism;

Health concerns - unhealthy workers produce lower quantity and quality of work and bring higher health insurance costs;

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Work conflicts - tardiness, incomplete work tasks and accidents result when workers’ personal issues interfere with their jobs;

Dissatisfaction and lack of commitment - studies show that financially distressed workers are less satisfied with their pay regardless of the amount they make; their disenchantment with work can lead to lack of pride in their jobs and negative feelings about employers.

How can employers address the various problems that financially distressed employees bring to the workplace?

The Personal Finance Employee Education Foundation (PFEEF), a non-profit organisation that educates employers on the benefits of workplace financial education, declares that companies should provide basic financial training for their employees to help change their money behaviours and increase their financial literacy.

Financial Education At Work

Some employers believe that their workers’ financial issues should not be their concern. However, PFEEF has carried out extensive research that proves that these problems pose a serious risk to company profitability. PFEEF studies have also measured the return on investment attained from workplace financial education at 3:1.

Another reason for companies to offer this assistance is that responsible employers should be the stewards of their workers’ well-being. Providing financial education will show employees that the company cares about them, and this will help to recruit and retain quality staff.

Financial challenges can be a pervasive problem, as changing negative financial habits takes time. Since many people spend most of their time at work, it is the best place to accomplish this. A 2000 Fannie Mae Study confirmed, “Workplace financial education is the venue for reaching most people.”

However, providing meaningful financial education can be challenging for employers. Firstly, it may be difficult to determine the true underlying causes of employee distress. Some persons may hide their problems due to shame or ignorance, and employers may even face resistance from the workers who need it most.

Another problem is that many human resource practitioners lack knowledge of the correct procedures to address their employees’ financial issues. In fact, some of those who should be assisting are also facing financial challenges.

Designing A Financial Wellness Programme

There are several steps to starting a financial education programme in the workplace. Employees must firstly be sensitised about the need for this assistance, and employers should get buy-in from trade unions and associations to promote it as a worthwhile employee benefit. Ongoing research should also be conducted to gauge its effects on the bottom line and employee well-being.

A comprehensive financial wellness programme should include carrying out assessments to ascertain the financial education needs of the employees, offering financial presentations and workshops on company time, and retaining financial counsellors for confidential individual coaching. Longer-term strategies should consist of training of human resource personnel to assist workers with financial problems, and developing structured financial wellness company policies.

Financial education programmes will bring tremendous improvements in employee well-being. Participants will learn how to make better financial choices and carry out appropriate strategies to improve their finances and achieve their goals; they will want to continue learning more about money; and they will feel less stressed and unsure about their financial situation.

Are you Financially Distressed?

Are you dissatisfied with your present financial situation? Are you worried that you can’t pay for your regular monthly living expenses? Are you afraid that you won’t be able to find money to cover an emergency? Do you make spending or investing choices that you regret? When you think about money, do you feel overwhelmed, scared or depressed?

If you answered yes to one or more of these questions, then chances are you’re financially distressed.

Financial distress occurs when you have negative feelings and reactions to your financial situation. These emotions are usually the result of unhealthy money practices that can have a damaging impact on your financial well-being or wellness.

There are four components of financial wellness:

1. Your financial state of affairs - how much money do you have?

2. Your financial behaviours and practices - what do you do with money?

3. Your knowledge and attitudes about personal finance - what do you know about money?

4. Your level of satisfaction with your financial situation - how do you feel about money?

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All of these components work together to create your level of financial well-being; so if you’re feeling distressed, you have to examine each area to determine the source of your problems.

How much money do you have?

One of the major contributors to financial distress for many people is that while they know that they don’t have enough money to make ends meet, they are really not sure how bad their situation is. Being clueless about the extent of your money problems can actually make you feel worse than the underlying issues.

The solution to this concern is to be honest with yourself and determine the true state of your affairs. The first step is to assess your spending habits to find out if your expenses are being met by your available income. Go to www.financiallysmartonline.com to download a personal budget, and record everything you spend money on throughout the year.

Most persons will find that they spend more money than they earn; and this basic imbalance is the root cause of most money distress. When you see the figures on paper it can help you to face reality - to be in balance you either have to cut back on spending or find ways to earn more money.

What do you do with money?

An examination of your budget will usually point to clues about what you’re doing with your money. Are you saving money for emergency needs? How much money is spent on non-essential items? How much money is going towards consumer loan and credit card payments? Are you investing for long-term goals?

The level of your distress will directly increase with the poor spending decisions that you make. While you might receive instant gratification and pleasure from buying things that you know you can’t afford, focusing on saving and planning for the future will bring long-term satisfaction and financial well-being.

Making plans to protect and maintain your money can also help you to be free of financial distress. Taking out insurance on your health and life can give you peace of mind. Thinking carefully before you invest your money into risky schemes will help you to rest well at night. Knowing that you have made adequate preparations for your retirement and your eventual passing is mentally liberating.

What do you know about money?

Becoming financially smart is perhaps the best thing you can do to combat financial distress. Many years ago when I first became uncomfortable with my financial situation, I resolved to learn all I could about money. As I studied and applied the principles of financial success, my confidence and comfort level about my money position increased exponentially.

In past columns we have covered various ways to learn about money. Reading books and magazines, listening to CDs and radio programmes, watching television shows, attending workshops, surfing the Internet, playing money games, sharing with friends in money groups - all of these should be components of your financial education plan.

How do you feel about money?

What’s your relationship with money? Do you love it and put it on a pedestal, or do you dislike it and wish that you could live without it? It’s not only the size of your bank account or your financial smarts that determine your money happiness - your attitudes towards money can have a big impact on your financial well-being.

Why is it that some people can live contentedly with average means, while others are dissatisfied, always wanting more money, despite having much wealth?

The answer lies in level of your ‘money intelligence’. Being intelligent about money means that you appreciate that there is more to life than the acquisition of riches; you put people first before money; you will never lose sight of your values and principles in order to get money; and you are committed to using your money to benefit others and not just yourself.

Making Money from your Bedroom

It’s been said that an entrepreneur is someone who sees opportunities where others see problems. Envisioning and creating a thriving business venture out of a simple concept is definitely a skill that can lead you into a great fortune. Unfortunately, many people lack this insight and miss out on profitable ways to earn income.

As a financial advisor, I am always on the lookout for new money-making ideas to share with budding entrepreneurs. Recently, Nuff Hope Limited, the business arm of Swallowfield Chapel, held an informative seminar which exposed dozens of business opportunities available in Jamaica.

Evadnie Sterling, chairman of Nuff Hope, explained that the church started looking at ways to mitigate the effects of the economic downturn on its ministries and community. “Nuff Hope was established to encourage and facilitate entrepreneurship,” Sterling noted.

Sterling revealed that the recent business workshop had exposed some 70 innovative ideas to aspiring business owners. “Out of this effort, over 150 persons will be embarking on training to better equip them to undertake these income-generating projects,” Sterling confirmed.

Over the next two weeks, we will look at some of the exciting business options that were highlighted. Today, we will show you how to make money right from your bedroom.

In these financially challenging times, it’s important to be able to earn money with little capital expenditure. Running a business from your home can give you a distinct advantage from the person who has to travel to work and pay high rental fees. It’s even better if you can turn common household items into money-making machines.

Need ideas to create more money? CLICK HERE!

Making Money With Your Telephone

Charles Bromfield, real estate developer and entrepreneur, showcased some of the ingenious things that persons can do to make money. He revealed that a telephone had tremendous possibilities to generate income. “The phone is the single most important device for people doing business,” Bromfield affirmed.

Here are some of the ways an enterprising person can make money from using their telephone right at home:

Debt Collections: You can provide a service to companies by calling persons who owe them money. Bromfield advised that the perfect candidate for debt reminders should have a stern voice, a disciplined approach and good follow-up skills.

Virtual Assistant: You can help other small business persons to make appointments, follow-up calls, answer messages and other telephone-related tasks. Bromfield explained that if you were organised, determined and persistent, you could easily manage four or five clients per day.

Phone Sales: You can help to market and sell your clients’ products on the phone. The ideal person for this task should be quick at learning about the products, proficient at articulating concepts, and very eloquent and convincing, Bromfield noted.

Phone Technical Assistance: If you have specialised know-how about computers and the Internet, you could offer a remote assistance service to help persons solve their technical challenges. Bromfield revealed that it should be easy to replicate this service, which was common overseas, right here in Jamaica.

To be successful in making money with your telephone, Bromfield explained, you would need to advertise your services with flyers and classified ads, as well as word-of-mouth marketing and networking with other small business owners.

Making Money On The Internet

Bromfield shared his experiences with finding money-making ventures on the Internet, explaining that there was a wide world of opportunities waiting online. “I have learned a lot about different business ideas from researching them online,” Bromfield pointed out, “and also profited from sharing these ideas with others.”

Here are some of Bromfield’s picks for Internet-earning options:

Affiliate Programmes: These allow you to earn an income from promoting and selling other people’s products. Bromfield advised persons to look for products that they could use and recommend highly to others. Some great products he has found online include a gas pill that gave him 15 per cent reduction in fuel costs, an eyesight programme that helped to improve his vision, and an Ebook that showed how to make your own fuel. You can use Google.com to search for affiliate programmes in your area of interest.

Ebay: You can sell your own products worldwide on the mega Internet shopping mall Ebay.com. Bromfield noted that while there may be some challenges exporting products from Jamaica, you could also sell other people’s products and have them ship directly to the buyers.

Alibaba.com: This site allows you to find wholesale products, many of which are made in China, at great prices. Bromfield explained that you could order items in bulk on Alibaba.com, pay a small deposit, and then re-sell these same products on other sites such as Ebay.com at a higher price, without ever having to stock inventory or spend very much money.

All it takes to tap into the opportunities available online is the willingness to research and attempt new ideas. As Bromfield asserted, “It just takes a little creativity to open up a whole new world on money-making possibilities.”

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 21, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl

‘Nuff Hope’ for Entrepreneurs

There have been several encouraging signs that the entrepreneurial spirit of our Jamaican people has not been dampened by news of a global recession. Several newspaper articles have highlighted positive stories of persons who, despite facing the devastation of job layoffs, have decided to make the best of the bad situation by seeking self-employment.

Recently, Nuff Hope Limited, the business arm of Swallowfield Chapel, presented a workshop of practical solutions for these tough economic times, showcasing several income-generating options. The seminar was designed to help persons identify business opportunities based on their skills sets and passions.

One of the challenges for those who have become accustomed to nine-to-five employment is learning how to adapt to the new rules that comes with being a business owner. Many persons believe that starting a small enterprise should be a relatively easy process as long as they love what they do, and can acquire enough start-up capital.

Guest presenter at the workshop, Dr Ainsley Deer, occupational psychologist and CEO of Training Dynamics & Consultants, explained that owning a small business is not just another job; it is actually a totally different lifestyle. “You must have complete commitment to your business,” Deer pointed out, “by preparing yourself properly and understanding the challenges that will come.”

Personality Is The Key

Having the right personality fit for business is of utmost importance to the success of your business, Deer explained. “Approximately 70 per cent of business success comes from having the appropriate personality traits,” he revealed.

While not discounting the need for training, especially in specialist fields such as medicine and engineering, Deer maintained that it took more than technical know-how to win in the business world. “There are many qualified people who don’t have the right personality to manage people; a crucial success factor.”

It is essential to assess your strengths and weaknesses in key areas needed to run a vibrant business, Deer asserted. Evaluating your expertise in sales, marketing, financial planning, accounting, administration and personnel management would help you to determine if business ownership was the best option for you.

Want to learn how to be successful in business? CLICK HERE!

Deer, who helps laid-off employees decide if they are suited for entrepreneurship, said that being flexible and having the right attitude towards a new endeavour was also vital. Other keys to triumphing in business include having an excellent knowledge of your chosen field, obtaining sufficient capital, harnessing your own experience or that of a partner, and offering a unique idea at the right time.

Pros and Cons Of Business

A budding entrepreneur must weigh the advantages and disadvantages of owning a business before starting operations, Deer noted. Some of the pros of business include:

- having the chance to make a lot more money;
- achieving job security from being your own boss;
- having the chance to put your ideas into practice;
- having the ability to benefit the local economy by hiring other people;

- being able to work in a field that you really enjoy.
On the other hand, the good points of business ownership can sometimes be neutralised by negatives such as:
- having to take a large financial risk;

- working long hours with little vacation time;
- not having a steady income or sometimes none at all;
- having to do unpleasant tasks such as firing someone;
- learning new disciplines such as accounting, production planning, marketing and general management.

Deer noted that while some entrepreneurs may initially decide to create a home-based business, it was important to consider all the benefits and drawbacks of combining work and home life. Although start-up and operational costs may be lower, the business owner would be more vulnerable to interruptions from family members. Home-based businesses may offer flexible working times, but they can present an image problem for persons in certain fields.

The Best Of Times, The Worst Of Times

For those who were willing to make the necessary sacrifices to own a business, Deer cautioned that they had to focus on the prospects and not the dangers inherent in these challenging times. Deer affirmed that the Charles Dickens quote ‘It was the best of times, it was the worst of times’ aptly describe the current economic environment. “Keep your eyes open for the opportunities that will be created in these times,” Deer encouraged, “and be prepared to take advantage of them.”

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 14, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl

Places to learn about money

“Your recent discussions on the three money principles have made me realise how much I need to learn about financial success. Where can I go to get simple information that can guide me in being better with my finances?”

The old adage, ‘every cloud has a silver lining’, has really been proven true in these challenging economic times. The global financial meltdown has put the spotlight on the ways we have been mismanaging money, and has reinforced the need for everyone to become financially literate.

Unfortunately, personal financial training is not available through the school system, so most people have to find ways to educate themselves. Here are a few ways that the average person can learn more about money:

Public seminars

There has been a marked increase in the number of workshops designed to help persons make appropriate financial decisions. Practically every financial institution in Jamaica has seen the wisdom in providing the public with money tips. Most of these events are free of cost, so keep looking in the newspapers for upcoming events, and make good use of them.

Books and CDs

Reading books is a great way to learn practical techniques to achieve your money goals. If reading is a challenge for you, then listen to the books on audio CDs. Here are a few of my recommended picks to help you create a library of financial education resources:

Budgeting - The 9 Steps to Financial Freedom, by Suze Orman
Saving - The Richest Man in Babylon, by George S Clason
Debt Management - The Total Money Makeover by Dave Ramsay
Goal Setting - Think & Grow Rich, by Napoleon Hill
Investing - Cash Flow Quadrant, by Robert Kiyosaki
Small Business - The E-Myth Revisited, by Michael Gerber
Passive income - The 4-hour Workweek, by Timothy Ferriss
Money Psychology- Secrets of the Millionaire Mind, by T. Harv Eker

Many of these titles are available in local bookstores, or you can purchase them online at Amazon.com.

Internet websites

There is a wealth of information about money waiting for you online. All your financial questions can be answered by simply searching for responses on Google.com. Some of my favourite websites include: Crown Financial Ministries (www.crown.org) with a useful money map feature; Money Savvy Generation (www.msgen.com) to teach children about money; blog.financiallysmartonline.com for local personal finance advice; Investopedia.com which covers all investing topics; Entrepreneur.com for priceless business advice; and YourMoneyEzine.com for up-to-date local financial and business news.

TV and radio shows

Want to learn how to ‘think and grow rich’? CLICK HERE!

Over the years, I have learned a lot about money by tuning in to America’s money guru, Suze Orman, on the cable station CNBC on Saturday evenings. Local financial institutions have also been making good use of the airwaves to educate the public, so make an effort to keep track of their radio and TV programmes.

Games

The average person may find it difficult to grasp technical details when trying to learn about some financial management topics. Robert Kiyosaki’s Rich Dad Company, as part of its mission to elevate the financial well-being of humanity, has designed the CASHFLOW 101 educational board game to teach accounting, finance, and investing in a fun, experiential way.

Austen Douglas-Panther has brought the Rich Dad CASHFLOW Club to Jamaica, by acquiring the franchise to use the Rich Dad teaching tools. Panther explained that in 2001, she read Kiyosaki’s book Rich Dad Poor Dad and loved his philosophy on money. “It was such a life-changing event,” Panther confided, “that I decided to share the Rich Dad lifestyle with others.”

Recognising that many people have money struggles because of a lack of financial education, she introduced the CASHFLOW 101 game in March 2009 to help solve this problem. Panther said that her aim is to teach people lessons about money, and to have them continue the learning process by buying their own games and playing CASHFLOW with friends and family.

To learn more about the CASHFLOW game, email AustenP@richdadsfranchise.com.

Money Groups

Regular Oprah fans may have heard of the term ‘money group’. A money group copies the concept of a book club, but instead of just meeting to read, friends get together to talk about financial matters. The idea is to use the collective sharing of ideas to teach each other about money.

Money groups are popping up all over Jamaica. In fact, Panther’s efforts have already begun to reap rewards, as one money group was formed by CASHFLOW alum Marlene Higgins. Higgins, who has a background in finance, admitted that although many of her friends may work in financial institutions, they didn’t always make smart money decisions.

“I bought a CASHFLOW game and invited friends over to play,” Higgins explained. “I realised that the environment was perfect to use other material - books, DVDs, CDs - along with my own experience, to teach my friends about money.” Higgins has even coined the name Wealth Matters for her money group and continues to share ideas online at wealthmatters.wordpress.com.

Whatever method you choose, make it a priority to learn all you can about money!

Investors: The Sceptical,The Gullible and the Greedy

Typically, when people think of investors they picture wealthy business moguls or savvy stock owners wheeling and dealing their way into large fortunes. The reality is that investors come in all financial shapes and bank account sizes. An investor is simply anyone who commits money to an endeavour with the expectation of making a profit.

I’ve often wondered about the personal traits that can help to create a successful investor. Some people seem to have the Midas touch - everything they invest in turns into gold. Many others, however, seem to fail at any investment they undertake.

What does it take to win at the investing game? Is it lady luck, dominant genes, or hard work?

George Roper, deputy executive director of the Financial Services Commission (FSC), recently examined certain investing personalities, outlining some of the reasons for their successes and failures. Speaking at a financial education forum held by the FSC in association with the UTech Financial Students Association, Roper offered an interesting parody of the hit western movie, The Good, The Bad, and The Ugly.

Roper was speaking against the background of the growth of the unregulated financial organisations (UFOs) in Jamaica. He used the slogan, ‘The Sceptical, The Gullible and The Greedy,’ to demonstrate the actions of some persons who invested, or who considered placing funds in these alternative investment schemes.

Let’s look closer at Roper’s explanations of the effects of greed, gullibility and scepticism on the investing public:

The Greedy Investor

One dictionary definition for greed is ‘a selfish and excessive desire for more of something than is needed’. Roper explained that greedy investors were self-centred and totally blind to the needs of others. Greed, he declared, was an impulse that was not restrained by reasonable thinking.

Want to learn how to be a smart investor? CLICK HERE!

As greed grows, persons throw caution to the wind and may eventually make poor investment choices. Often, to feed their greed, investors will thoughtlessly involve others in unwise ventures, only to abandon them when these investments fail.

Warren Buffett, CEO of Berkshire Hathaway, and arguably the world’s most successful investor, agrees that greed can be a dangerous strategy to follow. “We simply attempt to be fearful when others are greedy, and greedy only when others are fearful,” declares Buffett.

The Gullible Investor

Gullible persons are easily duped or cheated; the dictionary uses the term to describe those who are unaware and naïve. Roper clarified that these persons place their trust in others too easily and willingly. “When it comes to investing,” Roper affirmed, ‘the gullible don’t think and check, or ask for proof of stated returns before they invest.”

Consequently, gullibility is one of the traits of most unsuccessful investors. Because they refuse to do their homework to verify the soundness of an investment, they are easy prey for con artists and impractical schemes. Gullible persons usually drift from one failed venture to another, as they never seem to learn from their mistakes.

Sometimes, despite our better judgement and best intentions, laziness can lead to gullibility. Mason Cooley, an English professor and author, put it perfectly when he said, “I am sceptical in principle, but gullible in practice.”

The Sceptical Investor

A sceptical person is characterised by a doubtful and questioning nature. The dictionary describes the sceptic as ‘an inquirer after facts and reasons, one who is yet undecided as to what is true’. Roper declared that because sceptical persons check all the facts for themselves, they usually save themselves a lot of heartache and money in the investing game.

Sceptics tend to be ridiculed by the greedy and the gullible when they refuse to take up risky investments. However, Roper insisted that they usually got the last laugh; reminding the audience of the saying ‘It is better to tell your money where to go, than to ask it where it went.’

The FSC executive indicated that many who invested in the UFOs displayed signs of greed and gullibility, while demonstrating little evidence of scepticism.

Roper’s recipe for successful investing is to first acquire a proper understanding of any potential venture. “To be smart investors,” he explained, “you then have to apply your knowledge to make wise decisions, using good sense and appropriate judgement.”

Arthur Levitt, former chairman of the US Securities and Exchange Commission (SEC) holds a similar view.

“Investors should start with a view of scepticism. They should become intellectual investors rather than emotional investors,” Levitt opined. “They should be careful, and they should be sceptical. They should ask questions, and if they don’t understand something, they simply shouldn’t buy.”

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