There are lots of opportunities!

There are so many opportunities around to make money. I hear people saying that all the opportuntities have dried up, the niches have all gone, someone else got there first, blah, blah, blah …

If that’s what you want to believe, go ahead. I’m choosing a different way. Will you join me? This blog is all about the many different ways you can make money. I'll be searching high and low for money making ideas and reporting my thoughts and experiences. Some of the articles on this blog, plus alot more, are on the Money Making Mindset Website.

Sunday, May 18, 2008

Don't be evil

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Creative Commons License photo credit: hartlandmartin

Google’s motto is ‘don’t be evil’ and the company has built its code of practice around this guiding principle which aims to ensure that everything they do is ‘measured against the highest possible standards of ethical business conduct.’ Many people think that money is somehow tainted, that there is something rather unsavory about it, and that the rich cannot also be the good.



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Of course, there are lots of ways to make money, and many of them are decidedly evil. There are crude and violent ways of making money, like robbing a bank, blackmailing people or running protection rackets. People sell drugs, traffic in people, run prostitution rings and exploit people, usually the weak and vulnerable.

Then there are more subtle, but obviously dishonest ways of making money. I get dozens of e-mails each week telling me that I’ve won some lottery, or that a government agency is giving me millions of dollars, or that someone has left me money in their will. I guess people must fall for these scams or else they wouldn’t keep sending the e-mails.

I’m sure that most of us wouldn’t dream of doing these kind of things, but of course there are even more subtly dishonest ways to make money. Using legal loopholes to get out of paying tax, not owning up when you get given too much change, all kinds of little dodges and tricks we use to profit. We can tell ourselves ‘it’s not that bad – anyone would have done the same thing,’ and that’s probably true, but we still know that we have acted dishonestly, and it still leaves a bad association about money in our mind. And this is the problem.

Thursday, April 3, 2008

Easy Money

I know what we've all been told - If you want to get rich, you’ve got to work hard!

But don’t you know people who’ve worked hard all their lives and are still really poor? I’m sure we all know a lot of people like this – maybe you’re one of them. I call them the hard working poor.

Does that mean that getting rich doesn’t depend on how hard you work? Well, my answer to that is – yes and no. You see, it all depends on what you mean by ‘work.’

This blog is called Effortless Wealth. But you see, Effortlessness is not laziness; it is not inertia; it is not sitting back and doing nothing and expecting all good things to come your way. No, you’ve got to do something. Maybe you’ve got to do a lot. Maybe you’ve got to get up early, keep going all day long and get to bed tired and late, and maybe you’ve got to do that every single day.

I know people like that. We all do – from an outsider’s perspective; all they do is work, work, and work. And they are rich. These are the hard working rich.

What I’d like to suggest, however, is that the hard working poor are the only ones who are actually working, if ‘work’ is defined as something unpleasant, a chore. The hardworking rich aren’t really working hard – in fact, they’re not working at all. They are doing what they love. They get up early, looking forward to the day ahead, keep going all day because they are driven by the love of what they do, and go to bed late because they don’t want to stop doing it.

When the hard working poor go home, they try to forget their work, or they sit at the dinner table complaining about it, or they go to a bar or a pub and get drunk to try and forget about it. And the next day they don’t want to get out of bed because they don’t love what they’re doing.

You are probably not going to get rich doing nothing. Rock stars get rich doing what they love. People who own their own business get rich doing what they love. The hard working rich are simply following their dreams, doing what they love and feeling great about it. And, as I hope we al know by now, feeling great comes before everything else – happiness and inner joy lead to a great life, and that includes money.

If you’re hoping for wealth to drop into your lap so that you can quit your horrible job and do what you’ve always wanted with your life, I’m afraid you’re probably always going to be poor. You have to do what you love first, and then the rest will follow. This is how the world works.

There are no shortcuts, no secrets, no ‘money for nothing.’ Forget all the hype, forget all those ridiculous 'squeeze pages' with pictures of people sitting on a tropical island with a laptop, offering you the secret to making a fortune on the Internet or in the stock market, or whatever. Forget quick money and forget about trying to find 'the secret.'

What do you love? Think about it, dream about it. It all starts in your mind. Do what you love and the money will come to you. The you’ll be one of the hard working rich. And you’ll never have to work another day in your life.

Thursday, March 27, 2008

Do you want to be rich? Just say yes!

Money isn’t real. If you were on a desert island with a suitcase full of money – I mean millions and millions of dollars – and nothing else, you’d probably starve to death. Your only chance would be to learn, and learn fast, how to keep warm (possibly by burning the money, though that wouldn’t last very long), how to catch your dinner, what kinds of plants you can and can’t eat, how to build a shelter, how to treat your inevitable injuries, and so on and so on. You money wouldn’t help you. You might survive, but I doubt it.

The only reason it helps you in your non-desert-island-life is because we live in a big community where everyone has different skills and we trade those skills (sometimes in very indirect and convoluted ways) with the brilliant concept of money.

And that’s all money is. A sophisticated form of barter. There is nothing intrinsically good or bad about money. It’s just money. In our community, it helps us get along, and if we have more, we can get along better.

So far so good. Unfortunately, the concept of money has become mixed up with all sorts of other concepts over the years. How about these? Blessed are the poor. Rich people must be dishonest, cruel, selfish, greedy. How can rich people live with themselves when there are people starving out there? Why can’t all those rock stars give their money away instead of holding charity concerts? It’s outrageous that CEOs and footballers get paid so highly when doctors and teachers get so little. Filthy lucre, dirty cash, Balh de blah de blah …

Heard any of this before? Ring a bell? Do you believe this stuff? If you do, then you’re saying NO to money. Sure, some rich people are horrible, cruel and selfish. But so are a lot of poor people. Sure, a lot of poor people are lovely, kind and giving. But so are a lot of rich people. I’ve met a lot of selfish, bitter and twisted poor people, many of whom use the beliefs I mentioned above to justify being poor (it’s not their fault; it’s the way of the world, if only things were different…). And for the record, I’ve also met a lot of kind and generous and wonderful rich people.

Money is just money. Many rich people have done untold good with their wealth. Money allows you to live the life you always wanted and to do good. You can use money to make the world a better place – and you can have a wonderful life at the same time. Who says that you should suffer just because everyone else does? That’s just another of those self-defeating beliefs. If you choose it, it’s yours.

Money doesn’t go to the smartest, the best qualified, the most refined, the most in need. It goes to those who choose it. The rich are not all alike – they are from all walks of life, they have all sorts of backgrounds, businesses and careers (including none), they adhere to all sorts of codes of ethics, all religions (including none) and philosophies, the full range of IQ and EQ, … the only commonality is that they all said YES.

They say if you give a man a fish, he ca feed his family for a day. If you teach him how to fish, he can feed them forever. Well it’s the same with money. You can write a cheque but soon the money will be gone. But if you teach other people the right attitude and help them to make more money themselves, they’ll generate income for the rest of their life.

Don’t be ashamed. Don’t be embarrassed. Don’t think that money is bad and you have to hide it. It can give you everything you ever wanted, including the ability to make the world a better place.

So why not say yes?

Wednesday, March 5, 2008

Advice for novice investors

Are you new to all this investing stuff? Just trying to learn what it's all about. Here are a few pointers. Don't take them too seriously, they're just bits and bobs I've picked up over the years, though (of course) I think it's pretty valuable stuff!

1. Don't visit financial advisers. No less a man than Peter Lynch starts his wonderful book 'One up on Wall Street' with 'Rule number one is: Stop listening to professionals!' They have no better chance that beating the market than any other thoughtful person, AND they are usually trying to sell you something on which they earn commission. Their mediocre advice plus their (often inflated) fees adds up to a mediocre investment, at best. I have NEVER bought a good investment from an adviser. As Lynch points out, you SHOULD take advice from a doctor, a lawyer, a teacher etc., since these people really do have specialist knowledge which you can't easily come by, but financial professionals have no greater insight that anyone else who is prepared to put in a BIT of effort.

2. Be wary of mutual funds. Same thing as #1, really. A fund house is selling you a product which probably won't even beat the benchmark (the market index) AND they will take an up front fee and a yearly management fee, regardless of how well the fund does! Now that is one scam you should aviod. Of course, there ARE good funds, but they are hard to find, so if you don't have the time or inclination to invest, shall we say 'actively,' it may be better to...

3. Use ETFs. These exchange traded funds usually try to track an index or a sector. Since the stockmarket has returned about 11% a year on average (though with huge swings up and down, of course), ETFs are good investment for the long term. They have very low fees since they require almost no management, and you can buy 'em and pretty much forget about 'em. But for the mpre 'active' ...

4. Buy stock. Stock in companies has been bar far the best investment over the last hundred years. The stock market has violent mood swings, and this is something you need to be prepared for, but in the long run this, if anywhere, is where you will make big money.

5. Do your 'Due diligence.' Don't just buy any stock. Alot of companies are terrible and getting worse by the hour. I personally don't go in for any kind of detailed security analysis myself - it would take far too long - but I do read up on the companies. there's alot of free stuff available, but try to get the opinions of experienced people: The Motley Fool CAPS is a good place to start, and TMF offers several newsletters dedicated to giving stock picks. Morningstar also carries reports on companies and it's star rating can be quite helpful. This is where paying for a service may be a good thing. You're not paying professional advisers with a vested interest in your buying a financial product; you're paying for objective advice and informed opinion. Of course, your own opinion is just as valuable, but listening to others, weighing it up, and engaging with a community will give you a head start.

6. Be patient. Investing is a long term thing. Stock doesn't just rise (well some does). Stock in good companies can fall, and when it falls, it often keeps falling. Stock in bad companies can keep on rising, and all this is very infuriating - the market is not rational! But in the end, if you buy good companies (and take advantage of the market dips to buy more) then they should eventually rise.

7. Be prepared. The market WILL tumble at some point and your investments will go with it. Be ready, and know that things will change. Use this as a chance to buy. Keep some cash in readiness.

8. Be rational. If you bought a good company at a good price, then keep it, even if the price falls a great deal. In fact, the rational thing to do under these circumstances is to buy more. We are not speculating, day trading or whatever. Sell when the stock becomes over valued or if the company changes for the worse.

Making Money: Ten points

The first point: passive income is better than working for money

Talking about income, the bottom line is this: the best income is a passive income. No doubt about it. Interest, dividends, royalties, money from web-based schemes, lottery winnings, being left money by your long lost great aunt who just died. All far better than actually working. When you work as an employee, you swap your time for money. This is OK if you have an employer who compensates you very well for your time or if you don’t really want a lot of money. But I don’t think many of us fall into these categories. So the only really sensible way to go is to generate passive income. It takes work up fron, of course, but when the work is done, the money keeps on coming and coming and coming … Which lads us nicely onto …


The second point: the magical power of leverage.

Or not reinventing the wheel. Or getting the same thing done over and over again without actually doing it all those times yourself. For example, you can set something up and leave it to do a job over and over. Take this article, for example. I wrote it once and it can be read an endless number of times. Now if everyone who reads it pays me a dollar, I could get very rich. Being such a generous guy, I’m putting it out there for free, but you get the idea

Or I could give a lecture, as many life coaches and trainers do. If I give the lecture once to a small number of people and charge an entrance fee, I can make a bit of money. But I have to keep on doing it, so instead I could rig up video links all over the place and pay people to watch all over the world. I could record the lecture and sell it. Does it sound far fetched? Well, it’s just an example, but people are really doing it right now!


The third point: it’s quality not quantity that matters.

You’ve heard it a million times, but maybe that’s because it’s so true. It’s the value that you deliver that makes a difference. I used to know the regional manager of a big bank. During one of our regular drinking sessions, he told me the secret of being a good salesman. He said that you have to find out what people want and then give it to them. Sounds obvious right? Well, it’s amazing how many salespeople just try to sell you anything, just try to get commission with a one-off deal. But you know from your experience – if the property agent or the car salesman or the tailor or (fill in the blank) takes the trouble to get to know your needs and then delivers something to really address those needs, you’ll go back again and again. You can make a hundred one-off sales and you’ll still have to work as hard to chase down every prospect, but if you deliver value, people will come back of their own accord. That’s the power of delivering value.


The fourth point: Don’t be lazy

What stops people getting rich? I would say that number one is this: laziness and procrastination. What more can I say? Decide what you want, come up with a plan, and do something! Although honestly, I don’t think a plan is that important. You can plan and plan and plan and plan …. Better just get on with it.


The fifth point: the benefits of passive income

I’ve read about how some people think that employees are ‘slaves’ and that the only way to escape from your boss / society / “the system” is to generate income yourself and not rely on an employer There’s nothing wrong with working. I think the issue is that you shouldn’t be working for a living. You should be working for the joy of it. What’s that? You don’t love your job? You don’t bounce out of bed every morning and skip to work? I passionately believe that you should not be working for an income. Money comes when you choose to have it; it comes when you think about it and dwell on it and intend it. Doffing your cap to a boss because you need money shows that you havn’t got a clue about how the world really works, just like Jennifer Aniston in this clip from Office Space, one of my favorite comedy movies.




Put it another way:

Morpheus: The Matrix is everywhere, it is all around us. Even now, in this very room. You can see it when you look out your window, or when you turn on your television. You can feel it when you go to work, or when go to church or when you pay your taxes. It is the world that has been pulled over your eyes to blind you from the truth.

Neo: What truth?

Morpheus: That you are a slave, Neo. Like everyone else, you were born into bondage, born inside a prison that you cannot smell, taste, or touch. A prison for your mind.

Couldn't have put it better myself. Of course, choosing the red pill gives you ...


The sixth point: freedom...

… from schedules, being told how to dress, how to behave, who you hang out with (you aren’t forced to share a room with moaning, whining people who you despise for eight hours a day). Let’s face it, money makes you free. It isn’t everything – far from it, money can be the source of untold pain and suffering. But it can also give you a wonderful life. When you need a holiday, you can choose where to go, how to get there, where to stay. When someone you love gets sick, you can choose how and where they get treated. If you get tired of your job, you can walk out and go somewhere else or even just take a break. Maybe never work again. Money is a good thing because it makes you free.
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The seventh point: not working for money gives you a reliable stream of income

Yes, it sounds counterintuitive, but a passive income stream is arguably more reliable than working for a living. While you’re working, your boss can fire you at any time, but if you rely on passive income, it’s much less likely to dry up, especially if you have multiple income streams. The companies whose stock you own aren’t suddenly going to stop paying out dividends (assuming you bought the right stock, of course); the bank isn’t going to stop paying you interest.

In fact, in the end, you’re going to be relying on a passive income anyway. Where does your pension come from? Basically it comes from a portfolio of bonds, dividend stocks and mutual funds – all generators of passive income.


The eighth point: do what you love!

Doing what you love and not thinking about how it will bring you success and money is, paradoxically perhaps, the surest way to attract money into your life. You can't possibly tell how it will happen, but if you do what you love and trust the universe to figure out the details, you'll look back with amazement about how things worked out. I found a wonderful story recently, recounted by Steve Jobs - he had just dropped out of college and came across a calligraphy class which he was interested in. Later on, it changed everything but at the time he couldn't have predicted it. Here's his story:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed. Because I had dropped out and didn't have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, its likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking backwards ten years later.

Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.


The ninth point: trust yourself

You know best. You know what's right for you. Nobody can tell you the best path to take. Sometime, you need experts - when you're sick, you need to go to a doctor (though this is arguable - but that's another post for another day), if a pipe bursts in your house, you need to get a plumber in. But for the most important thing in your life - you - you don't need them. In fact, they will probably do you harm. I used to rely on financial experts, but every one of them has let me down with the wrong product, the wrong package - now I take care of all my own investments and I'm doing great. When people give me advice or tell me their opinion about what I should do, I listen, I consider, and then I decide what's best for me. Do you think this is selfish? Well, I can't live my life for other people, and neither should you. And I don't expect anyone to live their life to accommodate my expectations and for my convenience - now that would be selfish. So follow your heart, do what you love, and the money will surely follow.

Monday, March 3, 2008

Eight Traits of Successful poeple

Paul Raymond, entrepreneur, property mogul and lifetime purveyor of pornography, died yesterday at the age of 82. The rights and wrongs of the pornography industry are one thing (which I have no intention of debating) but it has to be said that Raymond’s life is an example of how certain traits, certain ways of thinking about and doing things lead to success.

I am not putting Paul Raymond on a pedestal nor suggesting that we should emulate him in every respect. Indeed, Raymond was not universally successful – though he became very rich and successful in his field, his private life was a bit of a mess and from what I’ve read, he did appear to be very happy, living for many years as a recluse. This just goes to underline the fact that money does not lead to happiness – these things are independent. Obviously, Raymond failed to actualize himself fully, but there are lessons we can learn from his life – he has much in common with other materially successful people.


1. Be creative and notice when opportunity knocks.

Raymond constantly sought out new niches and tried out new things, things that had never been done before. For example, when there was a big crackdown in Soho in the 70s, Raymond took the chance to buy up property at bargain basement prices – this property became the single biggest part of his financial success. When the law told him he could not put moving nudes on the stage, he devised a way of having static figures moving around wholesale. When the Revuebar was closed by authorities, he turned it into a private club and started charging people an entrance fee. Arguably this made it even more appealing!

The point is that you should look for opportunities. Don’t focus on the negatives, because the so-called negatives can end up being a blessing. Here’s a story I love (my own version)

An old man had a fine, but rather wild thoroughbred horse. One day, the horse broke out of the paddock and ran away. The old man’s neighbor came over and, when he found out about the horse escaping, said, ‘that’s too bad – bad luck.’ But the old man said, ‘maybe, maybe not.’ The next day, the horse came back, bringing with it three fine wild horses. ‘How wonderful!’ exclaimed the neighbor. But the old man just smiled and said, ‘maybe, maybe not.’ The old man had a son, and the son went riding on one of the wild horses, but it was so wild that it kicked him and broke his leg. The old man’s neighbor found out and, again, said, ‘that’s too bad – bad luck.’ But the old man said, ‘maybe, maybe not.’ Soon, the army came knocking on the old man’s door, looking for conscripts for the war. Because the old man’s son was injured, they didn’t take him. ‘How wonderful!’ said the neighbor, but the old man said …

You get the idea. You don’t know were opportunity lies – except that it lies everywhere.


2. Don’t live in the past – it does not define who you are.

Raymond was born into poverty in 1925, was abandoned by his father and left school at 15. He claimed never to have read a book. In the end, he was worth over $1.6 billion and had changed the face of British society. The same can be said of countless others. How many people do you know that blame their past, their parents, their education (etc. etc.) for their failure to achieve anything in life? The truly successful are a tiny minority who know that the future is always new, always fresh: they are always ready to choose a different reality.


3. Don’t be afraid.

Raymond was constantly battling against the establishment, and who knows what was driving him, but he kept facing down his opponents. Most people are too comfortable where they are right now. I know so many people who spend all their time complaining, moaning, and playing the victim. They obviously feel comfortable doing this and they are afraid to get out there and try something new – they are afraid of failure and they are afraid of success: they are stuck, they can’t move, light rabbits trapped in the headlights. And we know what happens to rabbits stuck in the headlights …

The fact is that you choose. You choose to move or you choose to die. But make no mistake – you do choose. So choose to live without fear. Choose to be true to yourself. Choose to be free.


4. Believe in yourself.

While the establishment was trying every trick in the book to close him down, Raymond kept on going. No doubt he had down times, but he must have had tremendous self-belief. The average person is full of fear, self-doubt and insecurity. But successful people are fresh and undefeated. ‘Why do we fall?’ asked Michael Cane’s character in Batman Begins. ‘So that we can get up again!’

People with self belief attract opportunities and seem to lead ‘charmed lives.’ I read recently that ‘Life is a confidence trick… Real confidence is the unshakable conviction that the world is unfolding to your advantage and that you can handle anything life throws at you.’ (From Fiona Harold’s Website)

Self criticism is a terrible, poisonous thing. It will hurt you, it will impede you, it will stop you from achieving your goals, so stop doing it!


5. Don’t take the world (and yourself) too seriously.

Keeping things in perspective is terribly important. Let’s face it - the world is a pretty crazy place. I sometimes think that I’m dreaming (seriously – I don’t just mean that in some sort of metaphorical way) and that I’m going to wake up any moment in the real world, where the ‘rules’ that should work actually do work. Like ‘if you work hard you’ll be successful’ or ‘good people prosper.’

You can’t possibly understand why the world is like this – but it is, and you live in it, so stop trying to understand everything and stop making out that you’re terribly important and that the business of your life is so terribly serious. It’s not. Lighten up.


6. Keep building. Think big.

Raymond didn’t stop when he had had some moderate success – he constantly started new ventures and used his growing income to invest in new things. I read somewhere that Victoria Beckham (formerly known as ‘posh Spice’) said as a child (paraphrased) ‘when I grow up I want to be a famous as Persil automatic’ (a brand of washing powder). That’s thinking big. And look where it leads. Again, this relates to your comfort zone – most people are too scared to think big: they’re happy with their modest life, their middle class way of living, their average achievements.

I wonder if you’ve watched the British sit-com The Office? In series two, Tim is thinking about whether to move on and take a risk or stay where he is. He compares his life to the roll of a dice. He says (paraphrased). ‘At the moment my life’s a three. I could throw a six, no problem. But then again I could throw a one.’

I’m not suggesting you quit your job and do reckless things, but if you don’t think big, you’ll never achieve big.

7. Don’t worry about what other people think or say about you.

Raymond embodied this trait absolutely; if he had cared about the establishment’s views, he would have died poor. He faced critics all this life, some of them very powerful, but he didn’t seem to notice. Elizabeth Taylor, when asked if she read what people write about her in the media, answered that she didn’t listen to or read anything written or said about her. She explained, ‘If you listen to the good things people say about you, you might end up believing them. If you listen to the bad things people say about you, you might end up believing them.’ Obviously caring little (or nothing) about his critics, in the end Raymond had built up an empire worth (probably more than) $1.6 billion.

8. Never give up.

Raymond kept going through it all – through the critics, the crackdowns, the outcries, the judgments against him. In the end, you could argue that he was instrumental in changing the face of British society. He was an ordinary, poor boy from a broken family. He became rich and immensely influential. Why? Luck? Is that what you believe?

Sunday, March 2, 2008

The Power of Now

It's been a long time since I read Eckhardt Tolle's book, The Power of Now. I've read it several time since I fist found it and I always love reading it again. Tolle's message is very simple and it's a message that's repeated again and again in the work of those who write about the law of attraction. He is saying that 'the now' is all that exists and so we should fully embrace it, immerse ourselves in it and accept it totally.

Like so many things, there seems to be a paradox here: how can we be satisfied with the here and now and also be driven to change the future?

One of the foundations of the LOA is that you need to feel something before it will manifest. Hence, the importance of feeling good here and now cannot be overstated. In Ask and it is Given, Abraham Hicks says ' when you understand the power of feeling good now, no matter what, you ill hold the key to the achievement of ... anything you desire.' The future never gets finished - there is always more to experience, more to have, more to choose. We need to accept, embrace and feel wonderful about our present reality and choose the future we desire, releasing our intenti0ns to the universe and then letting things take thier course, detached from the outcome, knowing that all is well.