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Last month, I told you about an incredible business called the Mail
Order and Direct Mail business.
I explained that ‘Direct Mail’ was where you sent letters to people,
requesting that they buy your product or service. ‘Mail-order’ concerns
taking out advertising (in newspapers, magazines etc.), to which people respond
by sending in money for your goods and services. I also ranted on for ages about
how absolutely perfect both of these
businesses were for people who have very
limited capital. The advantages
of this business just go on and on and on, and there are very few, if any,
disadvantages.
I also mentioned that there were only three ways of making a lot
of money; stealing it, inheriting it, or starting your own business. Of these
three, the latter is the surest way of making money whilst staying on the right
side of a prison cell!! THERE ARE NO OTHER WAYS. You certainly will never get
rich working for someone else - in case you hadn't noticed.
There are lots of businesses you could
start, but only one you should start.
Okay, if you really, truly want to run a Hoover spare parts shop then go ahead -
it's a free country! The vast majority
of small businesses are boringsville. I mean totally mind-bogglingly dull, dull,
dull. How the owners drag themselves out of bed each morning to unlock their
"Mr Tasty" sandwich shop, or "ACME bait and tackle," I
really have no idea at all! I am often amazed whilst walking along the street to
see the sordid collection of drab, dull little shops and premises, all slaving
away to earn a modest crust. You wouldn't catch me doing that - and YOU
shouldn't either. Why? Because the object of running your own business is to: Make BIG
money, work LESS hard and have FUN!!!
And don't you ever forget it. I mean, what the hell is the point in
running some dreary little shop in some totally disgusting area, working twelve
hours a day doing something you hate just to be slightly better paid than
average - if you're lucky? 'Being your own boss' is not
compensation enough for running this type of business, believe me. It's also
'small beer' and not worthy of you as a member of Inner Circle. You should not have to slave your guts out for
fiddling small change! Believe it.
For example, we have a 'sandwich lady' who visits our premises; "Mrs
Tasty Ltd" or some such nonsense! She makes great sandwiches, but she tells
me that she gets up at 5.30 a.m. to make them, ready to take around the local
offices for 9 a.m. - 10 a.m. Furthermore,
she sells about 50 sandwiches each day, at an average price of £1 each. Even if
it was all 100% profit (which, of course it isn't), she is making £50 a day
tops - probably more like £25! I mean,
you've got to be stark-staring crazy to get out of bed at 5.30 a.m. and work six
or seven hours for £25. Totally bonkers. But she's dead happy because she
thinks she's 'running her own little business'! Ptui!
Why am I digressing like this? Because I want to hammer home into your
brain that it is simply not enough to be
running your own 'little business'. This is just a rather pathetic,
small-minded ego-trip. Not even a big
ego-trip, which you could possibly understand! No, you have to run a business
which makes good money for relatively little effort. Remember that although
running a business should be fun (and mail-order is fun) it is
only a means to an end. There is no
fun whatsoever in running the same,
tired, silly business for thirty years which just about keeps you solvent. The
point is to make enough money to free yourself from the need to ever work
again.
Who really wants to work anyway? I don't! I really enjoy my work (in fact
I love it), but I only enjoy it because I know
I don't have to do it!! I could stay at home all day if I chose to - and
this is the situation I want you to aim for.
When you have enough money so that you don't have
to work, then suddenly life becomes tremendously exciting, fun and challenging.
For those not in this situation, life is tedious, boring and a drudge.
Since I'm rambling on a bit, indulge me a little further if you will, and
let's talk a bit about how much money you need in order to give up work if you
want to.
Obviously this will vary from person to person, but as a general rule,
you need a minimum of a quarter of a
million pounds (£250,000) 'in the bank' before you can contemplate this. £400,000
is better. This is only an approximation. A more accurate calculation would be
to multiply your total annual salary by
twelve to arrive at the figure you need. If you earn £20K per year, you
need 12 x 20 = £240,000. This amount of money invested would bring you about £20,000
a year in interest - so you could give up work. However, the capital is being
eroded by inflation, and so your standard
of living would gradually fall. To stop this rot, you need more money; as I
say, about £400,000.
Does this amount of money sound impossibly large to you? It's not really,
you know. A house can easily cost this amount, and most people live in houses
worth £60K-£150K. The point I'm making is that £250K is not some fantasy
figure. For example, it is estimated that there are over one
million dollar millionaires in
America. This means that a million USA citizens are worth more than £680,000!
It can't be that difficult if one million
people have done it in USA alone!
I now want to hit you hard with a statement which might surprise you. It
has to do with making you wealthy. It has to do with money: All
Inner Circle Initiates aim to be completely debt-free
And I mean completely - including mortgage. I want to tell you here and
now, that one of the main secrets of
becoming wealthy is first to become debt-free. It took me ages and ages to
learn this simply stated fact. Wealthy people I knew kept telling me this
'secret' but I refused to listen. In fact I thought you had to borrow
lots of money to become rich. You know, to 'invest' in your company, to make it
grow, etc. Well I was wrong. I'll be returning to this subject again at a later
date, but I wanted to warn you about it early on.
Most people think their debts
are 'special' and unavoidable. They're wrong.
Most people think that they,
particularly, are unable to pay off all their debts. They're wrong.
Most people think it's 'normal' or even 'good sense' to be up to their
ears in debt. They're wrong (and stupid!).
The first step on the road to real wealth is to rid
yourself of all debts. And I mean all.
Then, you never, ever borrow any money
again, ever, for any purpose! I hope there are enough 'evers' in that
sentence to convince you!
I, for example, don't owe a penny to anyone. Furthermore, I never borrow
money under any circumstances, particularly for 'really sure-fire' business
ideas! I'll tell you why at a later date, but I want you to consider this:
One thousand pounds is not a lot of money. Okay, you'd be pleased if I
wrote you a cheque for this amount, but your euphoria would be short-lived. In
the past, you have almost certainly spent £1000 in one or two hits. A new
washing machine, T.V. and video would cost far more than this, for example. And
you've probably borrowed the money to do this.
So let me ask you the
following question:
"What would be the difference, (ignoring inflation), to your net
wealth after ten and twenty years, between saving
a thousand pounds of your salary, or borrowing
a thousand pounds to spend on some
junk you really 'need'?"
Without working it out, have a quick guess.
Well, if you borrowed it, and didn't repay it, after ten years you
would owe about £3000.00. After twenty years you would owe
£9500.00!
If you saved it, and never drew out the interest, after ten years
you would have £2600.00. After twenty years you would have
£6727.00! (These are very rough 'guesstimates').
The difference between these two figures represents the net change in
your wealth. If you borrow £1000 and spend it, then after ten years you are
£5,600 worse off than if you had
saved £1000. After twenty years you are a whopping £16,227 worse off than if
you had saved instead of spent! That grand’s worth of junk is starting to look
pretty expensive now, right?
In practice, inflation erodes your savings, and you normally pay off a
loan at a certain rate. But the principle remains the same. The difference
between saving money and spending
money makes a vast difference to the 'bottom line' after only a few short
years. I could openly weep at the amount of crap I have purchased over the last
thirty years! This crap cost me tens of thousands of pounds, and
it is all on the scrap-heap. This is stuff I 'really' needed at the time -
you know, the latest Hi-Fi, a new T.V., a new car, an expensive holiday
etc. etc.
If I had purchased less junk,
and invested the money, I
would have another quarter to a half million
pounds worth of assets, at least. And so would you. I'm not saying you have
to be like Scrooge and save every last penny. You should enjoy life whilst you
can, and have fun. Buying things is fun. But I can't tell you what a really
terrific feeling it is to wake up every morning knowing you
don't owe a cent. It is truly liberating. Much more fun than owning all that
junk! Anyway, when you're debt-free, you don't have to spend all that money
servicing that horrible burden of debt. This makes you much richer, and you can
buy far more stuff than ever you could before - if that's what you want.
Enough already! But I promise that I will be returning to the subject of
debt (and how to get rid of it) again and again in later releases.
This is the end of the free preview
of this part of Freedom Factor. Excerpts taken from all the other chapters
are available using the links in the table below - or alternatively, you can
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