Make More Money – Part 2

In a previous article, Make More Money – part 1, I discussed that there were other ways to handle the debt-to-income situation other than reducing spending. That is, increase your income. However, in order to do this, you might want to consider some other ideas besides just working more.

Rich Dad shows us that working more is often not the best way to get more income, alone. Instead it can get us trapped in the earn and spend rat race. Instead, rich dad urges us to accumulate assets. So, the ideas here are focused on just that: accumulating assets.

The first type of asset is basic loans. Loans are a promise to pay back a lump sum of money that is borrowed, but paying it back over time, usually with interest. People have been investing in loans for hundreds of years. Until now loans were only available to the very rich or to people through investing in banks and other businesses that deal in loans.

Prosper: an on-line lending website, is a way for individuals to invest in loans. By making small loans to other individuals you can reap the benefits of investing in these assets without the hassle of investing in banks or other corporations.

When it comes to investing most people don’t think of credit cards. However, the reality is that many people are using 0% balance transfers in order to accumulate wealth. People do this by writing a check to themselves and depositing it into a high-yield savings account. This allows people to earn money on credit cards by effectively “stealing” the interest from these lending institutions–interest that they would normally get if you were paying something other than zero percent.

The trouble with this type of plan is that you generally have to have your finances in order (i.e. a good fico score) to qualify for these types of plans. Furthermore, the interest is usally not that significant. for example, on one thousand dollars, the yearly interest might only be 45 or 50 dollars per year that you can get in a safe, high-yield savings account. This might not be the kind of money that will really make a difference for you.

Plain old stocks are another option for people that want to accumulate assets. Many stocks pay dividends. Dividends are just small amounts of money that are paid to the shareholders. Dividends are often reinvested into the original stocks. By doing this shareholders obtained more and more shares of the stock over time. This type of Plan is called a drip. Drip stands for Dividend Re Investment Program.

When people do research about how others become rich one common factor is usually a business. Often it is not enough to work for someone else. Working for yourself, in the form of a small business is often one of the best ways to earn additional sums of money and sometimes even develop a longer term income stream for the future.

Starting a business is not as easy as it sounds, however. But when you consider that it is one of the best chances to make decent amounts of money, it is no surprise that this is the case. If it were easy, as they say, everyone would be doing it. In future articles I will be talking more about how you can get started and some easy steps you can take to determine whether or not it makes sense to start a business, and if so, what type of business might suit you.

Did Make More Money – Part 2 Deliver on the Promise?
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