 Welcome Back to the Second Part of Our Series “Thinking Like a Millionaire”.
Today we delve further into the mind of an investor and learn how the investor thinks differently about money than most people do. As most people feel money is a dispensable item and are too easy to give it away for things they want or value. While an investor uses the same money as a tool. For example, A normal consumer uses money to purchase a vehicle. Some even believe that it’s an investment. However, a car is not an investment because you will never be able to use it to make the money back that you spent. You will never be able to resell it for more than you paid and most likely will get next to nothing when you finally do resell it. Even worse, is when people see a car as an investment. They take out a loan on it, and make a promise to give away their future wealth for a vehicle that will never pay for itself let alone the interest their going to pay on it. (Click here to learn how to avoid Shark Loans) A consumer views a vehicle as an asset and investment. In the same vein but with an investor, A normal investor purchases a vehicle with cash. They consider the gas mileage, reliability, reviews, and resale value of the car to ensure if it’s the best deal for their money and ultimately meets their needs. On top of that, they usually never purchase from a NEW car dealer and instead get it from a certified-used dealer, craigslist with proper inspections, or my personal favorite EBay. In comparison to a consumer, an investor views a vehicle as an expense and liability that can eat money quickly and leave you in financial stress if it isn’t properly purchased. Therefore it’s time to get started and think about money like an investor. Because when you think of money as tool, you begin to understand how to use it to better position yourself in life. If you don’t, even when you make more money as a consumer, you ultimately just spend more money as a consumer. You don’t really change your habits, you simply have more and you spend more like a bigger house, better car, or the NEW ITEM YOU JUST NEED NOW. Instead of consuming with your money, here are some common investments that are offered by the government that are available to you right now. That most don’t even know. Government Offerings U.S. Government Bills or Notes Also known as Treasuries, they are government notes that are backed by the U.S. government. And there are two types, Treasury Bills which are short term-loans that mature in less than a year. While Treasury Notes are longer term and mature after a year and can go up to 10 years. In simple terms, you are giving a loan to the government and they pay interest to you on the loan. Pros: · Safe – Unless the U.S. Government defaults and goes bankrupt (Not very probable) · Commission Free – unlike a lot of investment vehicles they can be purchased directly, without the need of a broker · Tax Exempt – treasuries are exempt from state and local taxes which can help the savvy investor save a lot of money in the long-run Cons: · Better Interest Elsewhere – Good returns, but if you shop around, you may find higher yielding investments that are just as safe such as CD’s, Money Market Funds, and bonds. · Hefty Penalties for Cashing out Early - If you need your money before the security matures, you may not get back all of your original investment. I-Bonds I-Bonds are a Government Backed Bond that gives you protection from inflation by changing the interest rate on the bond semi-annually. They began offering this as many people who buy bonds don’t want to have to keep up with the macroeconomics of the US Economy. Pros: · Backed by U.S. Government - makes it one of the safest bets on Earth · Inflation Protection - Protects your investment against inflation risk by adjusting the payout interest · Manageable Denomination – you can buy I-Bonds ranging from $50 to $10,000. · Tax Exempt/Tax Deferrable – are exempt/deferrable from state and local taxes which can help the savvy investor save a lot of money in the long-run. Cons: · Penalty for Cashing-Out Early - must hold for at least 12 months before redeeming, but if you redeem it before five years, you have to pay a 3 month Returns Penalty. Municipal Bonds Municipal bonds are similar to federal bonds but are issued by state and local governments. They use the money you give them to fund the building of schools, highways, and other projects for the city and state. Used mostly by high-income investors to reduce their tax liability. Pros: · Safe – almost as safe as U.S. Government backed securities · Tax Exempt/Tax Deferrable – are exempt/deferrable from federal taxes and sometimes state and local taxes which can help the savvy investor save a lot of money in the long-run. Cons: · Low Interest Rate – because the taxes are low on municipal bonds, they have much lower interest rates. Which might not make sense unless you’re in a high tax bracket and looking to avoid taxes · Commission–Based - you may have to pay a commission to buy municipal bonds · Hefty Penalties for Cashing out Early - If you need your money before the security matures, you may not get back all of your original investment. If your interested in more, please check out the entire series.  Do you think like a Millionaire?
Well welcome back to “Your Life as a Business”. Where we introduce the First Part of a 5 Part Series on how to make your money work for you and to your first Million. Today we will change your viewpoint of money. Showing you the different ways to make it work for you. By simply summarizing the positives and negatives of each. First off, let’s go over the two worldviews of money and how they differ from each other. The first one is the one most people know because they enact it every day, the Consumer. The consumer views money as a dispensable item that comes and goes, but ultimately is made to be spent. The consumer sees the value of a dollar as a means to get things they want, but not for its other values such as tool to protect yourself and your family or a means to build wealth. Instead, they use it to consume things. The pros of being a consumer is to get what you want when you want it and experience the things you always wanted. However, many times the consumer buys things they can’t afford, are constantly broke, and spend money faster than they can make it. When seeing money as dispensable, it’s easy to fall into the mindset of easy comes and easy go. The other worldview is the Investor. The investor views money as a tool. They don’t see it as a dispensable item to buy things they don’t need, but as a way to make things happen. Such as make more money or as a weapon and shield against the world to protect yourself, your family, and your interests. With this way of thinking, people use money not as a way to consume the “next best thing” but instead think strategically how they can better their lives with money rather than have it control them. Therefore it’s time to get started in “Your Life as a Business’ and start thinking about money like an investor. When thinking of money as tool, you have to imagine the different things you can do with money. Its many facets and uses. Of the many things you can do, here are the most common that most people never know about even though they are available to them every day. Bank Offerings Checking accounts Everyone knows what a checking account is. It’s a transactional account where most of the money that graces its presence it’s swiftly spent to bills, consumables, or any other immediate expenses. Pros: 1. Liquid - They are extremely liquid as you can have available to you immediately through ATMs, checks, and debits cards. 2. Services - Usually are a staple of big banks and come with branches so you can avoid pesky transaction fees from ATMs 3. FDIC Insured - They are also insured by the Federal Deposit Insurance Corp so if the bank fails, the government is supposed to step in and pay you out your funds Cons: 1. No Interest Paid - Because of the liquidity of your funds in a checking account and the benefits you receive such as access to branches, they use you’re your interest to provide those services 2. High Required Minimum Balances – Many banks require minimum balances or they will charge you fees 3. Nickel and Dime Fees – Many banks make their money by finding ways to make your money theirs. This is why they will nickel and dime you in any way possible with transaction fees, penalties, and services. (Remember – Banks need your Money to Function and they Must Be Reminded of that Fact) Savings accounts Savings accounts are a more illiquid form of checking accounts and that was why they gave higher interest rates as there were less services and benefits associated with it. That is why most have only a certain amount of transactions you can have per month or they will charge you a fee. However with the advent of online banking. They can be just as liquid as a checking account. As you can easily move your funds from your savings to your to you checking with just a few swipes. Pros: 1. Higher Interest than a Checking Account –less services and benefits equals more interest paid out 2. Low Required Minimum Balances – don’t need as big of a required balance, but negates the purpose of a savings account, which is to make interest on Big Money 3. FDIC Insured - They are also insured by the Federal Deposit Insurance Corp so if the bank fails, the government is supposed to step in and pay you out your funds Cons: 1. Next to No Interest Paid – With the destruction of the financial system came the lowest interest rates the world has ever seen. This has created a new benchmark for savings accounts, which is next to nothing. 2. Restricted Transactions – Can only use it for a few transactions a month before they start charging fees to keep you from using it like a checking account 3. Illiquid/No Services – no debit cards, checks, or other ways to spend money out of the account Online-Only Bank Offerings High-yield bank accounts High-yield bank accounts are the same as checking and savings accounts but give much better interest rates by eliminating all the frills of a normal bank such as ATMs, branches, and staff. This keeps overhead low so they can pay more out to their customers. Pros
Cons 1. No Frills Banking – can be hard to get to your cash fast with no ATMs, debit/checking services, or branches 2. Money Coordination – can be troublesome when you need to transfer money back and forth from the online bank account to a normal account 3. Teaser Rates – Beware of limited-time teaser rates that they get you to sign up for that reduce in half after only 6 months. Money market deposit accounts One of the most restricted accounts is the Money Market Deposit Account. They are usually offered by banks, but require a minimum balance and only permit a few transactions per month before they start charging fees. Pros
Cons
Both Branch/Online Banks Certificates of Deposit (CDs) Certificate of Deposits are illiquid deposits in a bank or brokerage. They work by you promising to deposit your money and promise not to touch it for the time until it matures. Where you get it back in full with interest. If you take it out early, you have to pay a penalty that usually offsets any gains you have made so you don’t touch it. Pros 1. FDIC Insured - They are also insured by the Federal Deposit Insurance Corp so if the bank fails, the government is supposed to step in and pay you out your funds
There you have it for this first part in the series of thinking like a millionaire. Please check back each week as we unravel the investor's mind.  Would it be awesome to learn how to speak at events? Would it be even cooler to be paid an extravagant amount of money for it? Well you can by becoming a professional speaker. All you have to do is follow these simple steps: First, You need to master the craft of PUBLIC SPEAKING. So immediately find a site to place your soapbox, such as a Toastmasters International, MeetUp.com, your Local Chamber of Commerce, or other speaking association to learn how to speak in public. Once, you are there. You must craft a portfolio of speeches, speaking programs, and videos of your speeches to use later for marketing. Until you get to the point where you feel you can speak in thee Free Circuit. Which is Second, Start speaking at free events. This will help solidify your ability and determine what type of speaker you would like to be. Anywhere from entertaining, motivational, informational, training, presentations, technical, or keynote are just some of many options. These can be found by talking with everyone where you’re currently speaking or connecting with local groups, clubs, or non-profits. The Third thing, Once you have enough material to make into a profile or website, you turn it all into an “I’m a Professional Speaker” Page. What it consists of: · Start with a two paragraph overview of who you are and the type of speaker and speeches you do · Then talk about speaking topics, with write-ups of presentations you’ve given · Followed with video presentations, a list for the people you have spoken for, and finally testimonials, where others recommend you. The Fourth Part, Now that you have mastered the craft, have experience speaking, and now have the marketing to prove it. It’s time to become a professional speaker by entering the Amateur Circuit. Here you will start getting paid. So it is imperative to figure out how much you think you are worth right now and how much you will you be worth when your experience grows. After some more events are done in this market, continue to build portfolio of speeches, speaking programs, and videos of your speeches to use later for marketing. This will help you into the final step. The Final Step, Enter the high-dollar professional circuit. Here you can hire an agent and work with speaking bureaus to help with booking shows. Make sure to impress them with a professionally done: · 3 to 5-minute demo video. · Great photos of you speaking. · A printed one-sheet with your programs. · A professional speaking-oriented website. Once you’re at this point just keep looking for the next big opportunity. Tips for throughout the process: · Build Credibility – use any and all features of you on any recognizable media outlets, big corporate events, or television · Network – knowing the promoter or conference organizer is key to success · Practice, Practice, Practice The hardest part of becoming a speaker is in fact the writing and editing of everything from the speeches to the marketing. Which is why you need a professional speech writer: · To save you time and effort · Providing the talking notes to speak from · And giving you a writing from an experienced professional  How does one become king? How does one go from being a nothing to slowly tipping the scale in their favor, until it falls into their lap? Making them the King? There is only one answer. Leverage. Leverage is the only way to go from being the bottom of the barrel to the king of the hill. But how does one gain leverage? Gradually. One gains leverage gradually. By pining their resources and time. And through time, the strategies themselves have not changed, simply the ways to implement them. Coming to the point of the conversation. The 5 Questions you have to ask yourself to figure out how to leverage yourself. 1. What are my marketable skills/talents? You have to ask yourself what marketable skills I have that others need. This can be anything from numbers (Accounting, Finance, etc.), relationships (Business, Management, Sales, etc.), hard skills (Programming, Engineering, Medicine, etc.), soft skills (Customer Service, Public Relations, etc.), creative skills (Artists, Musicians, etc.), and more. 2. What are the skills/talents of the best and how can I realistically compete? This is where you set the stage for a realistic look at your talents and how you can realistically compete against the best in your industry. And even if your main talents are dwarfed by the best in your industry does not mean you are out. It simply means you have to position and leverage your other talents in such a way to take advantage of the opportunities to overcome the best’s strengths. As no one is invincible and they always let their guard down. Always. 3. What am I not good at, but have to be good at to gain leverage to become the best? This is the hardest question people have to ask themselves because the answers are usually the most painful. Mostly because many people don’t want to do what they have to do to become successful. This includes public speaking, taking risks, sacrificing, and many more. But truly ask yourself, what the skills I need to be successful are. But always keep in mind… Do you need to learn them or can you buy them? 4. How can I effectively leverage my talents to become the best and triumph over those who are? Everyone has strengths and weaknesses. And with the first three questions, you found what yours and the best in your industries are. Now that you know both. You can plan strategies to leverage yourself with the best of your industry. This can include finding a way to partner up with the best in your industry, emulating what they do and doing it better, maximizing your own talents to become the best, or a myriad of other ways to leverage your position. Leaving us with the last question: 5. What are the Top 9 ways to leverage yourself? Which will be answered next week so subscribe today so you don’t miss it. Don't make an "infallible" business plan.
Hello there, I am here to represent everyone who has ever made a business plan and after the fact had to immediately throw it out the window once everything got started. Taking us to the main reason we all came for, an ode to why most business plans are a waste of time, energy, and how they are only useful for those who can predict the future. Now let us begin… Having worked with a multitude of businesses and worked on countless business plans, I have come to the conclusion that short-term business plans are in general, a waste of time, energy, and money. And the 3 MAIN REASONS are as followed:
Leading to my favorite statistic: Unmanaged Index Funds beat Most Finance Managers. 2. You cannot assume anything. I don’t know how many times I have built an entire business plan based on false assumptions. The hours spent pining away at every detail to come to the realization that the foundational assumption is completely wrong. The fun I have trying to salvage parts of the original business plan. Remembering how smart I felt as I planned for each minute problem. Realizing that what I assumed to be problems weren’t and what I assumed not to be problems brought the plan to shambles. 3. You have better things to do, and the market won’t wait for you to do them. In working on business plans, I recognized I should be doing something else. I should be networking, getting clients, moving with the market instead of trying to fit it to a 30 page plan. A 30 page plan that the market just loves to eat, chew, and spit back up for entertainment. However... The ONE REASON you should have an evolving business plan with basic outline.
Therefore, research enough to have an idea of what you're doing. Experiment to find the right combination that works for the market. And turn on the heat when you find the things that do. Take it from me. Save a few days or weeks on trying to create the perfect plan. Instead, make an imperfect one and fill in the blanks as you go.  A Marketing Toolkit. The thing every business needs to start is a collection of marketing that tells people their story. Your story. The story of exactly what you do, how you do it, and most importantly why you do it. In your Marketing Toolkit, you will have a Pocket Folder containing, a Case Statement, a Difference Summary, a Case Study, and “The Offer”. The Pocket Folder should sport your company colors/logo and highlight your products and services. Complementing the marketing pieces inside. In can also have marketing merchandise such as pens, bookmarks, stickers, etc. Inside your Pocket folder lies your marketing pieces. These pieces are customizable to the event and situation, but should always contain these basics. · The Case Statement makes a case of why your customer should buy your product. It addresses their challenges, frustrations, and fears. Paints the vision of a future without them, how they can get there. And what they must do to start. · The Difference Summary explains why you’re better than your competition and what you provide that they don’t. This can include your unique approach, processes, or the extra things you do to make your customer happy. A difference summary can include many things based on your objectives to include the story of your company and the motivations behind it, the top values of your market, and a description of your ideal client that your customer can relate to and knows that you’re talking to them. · The Case Study (a.k.a. Testimonial) of a real life customer who is so amazed with your product that they wholeheartedly back it with their support. This is a marketing piece for showing off pictures of happy people using your product, giving a face to the future happiness that your customer can have if they buy your product. · The final piece that should always be included is “The Offer”. The Deal that you are presenting should be compelling and something they just can’t refuse. The deal with a strong call to action such as contacting you for more information or to order, will be the crescendo of your Marketing Toolkit. With your Marketing Toolkit in place, you are ready to wow everyone instantly. It works great as an automatic response on your site to be mailed or emailed to a interested prospect as well as a piece to rally other marketing pieces around such as your brochure. The best part is that each marketing piece inside your Marketing Toolkit can in and of itself, a standalone marketing piece that you can turn into a microsite, sales letter, or more. For your Ease-of-Use, below is a bulleted list of your future Marketing Toolkit as well more information in building it. Marketing Materials Toolkit 1. Pocket folder – case statement, difference summary, ideal client description, marketing story, and offerings a. Notepads, bookmarks, posters, stickers, and a useful tool (calendar or ruler) b. Create mini folders ·Case Statement – Make a case on why your prospect should buy your product
· Difference Summary – why your different and how you do it (unique approach, Processes, and extras)
· Case Studies
§ What did we do that you value most? § What has been the result of working with us? § What would you tell others who are considering hiring us?
§ Ask a prospect to ask a client § Photograph your client using product
§ Use a business card system to collect
§ Client list § Show processes and checklists to emphasize the premium service pricing. § Articles · Product/ Service Offering
Need your own Marketing Toolkit today, but don’t have the time to do it yourself? Then hesitate no longer and send me an email to get your very own customized Toolkit. For your industry. Your customers. And your Business. Sincerely, L. Thomas @ [email protected] |
AuthorLucas Thomas, professional writer, entrepreneur, and business owner. Archives
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