Make Money: The Apprentice - Andy, You’re Fire!

The first apprentice has been fired saying good-bye to the dream of a six-figure salary with Sir Alan Sugar. One down, fifteen to go.

Andy, a car salesman, made some fundamental errors as project manager on the task of making money by selling as much coffee as possible.

• picking the wrong location for their mobile coffee shop

• buying too much stock

• ignoring competitor’s prices

• not being proactive

Poor bugger.

Anyway, all this makes me think about reminding you of what he taught his apprentices on the last series, and which I am sure he will be teaching this new group. Find out about it here.

Looking forward to next weeks challenge.

Save Money: The Weekday Big Spender

I had posted a new thread on one of the forums I joined recently, and was looking through the sections for interesting threads to read when the question “What is your advice for saving money?” caught my eye.

The forum poster plans to pay off their debt this year and needed advice on saving as much money as possible. Of course, I posted a reply and asked that they checked out this blog for more ways to make and save money.

A number of people also posted a reply, most in line with what I would advice, and which I think should be shared with you. If you have read the blog ‘Make Money: One of Two Options’, you would know the two options for having more money are to increase your income or reduce your expenses by managing your current finances.

Its one of those things you do everyday without realising how much effect it has on your finances. The amount of money you spend on breakfast and lunch at work. I know a number of people at the offices I work spend at least £10 everyday on their food. That is about £200 every month just on sandwiches, drinks and snacks.

You would qualify as a weekday big spender if every working day of the week involves spending from £5 to £15 on breakfast and lunch. At the bottom end you will be spending £100 a month and at the top £300. That is a lot of money on food eat at work, if you ask me.

What is the excuse? According to some, it’s because they can’t have breakfast before leaving for work, something about not having enough time, having stomach aches and so on. Personally, I think they don’t want to, it’s not important enough otherwise they would or at least take a packed lunch to work.

It has always been puzzling to me. As a child you always took lunch to school but the moment you become an adult it all stops, it becomes something you shy away from at all cost. The irony is it really does cost a lot as the figures above show.

If you need advice on how to save money, then one way to start is by cutting down on the amount you spend on food at work. Go a step further by making your own breakfast and lunch - am sure you can make a better sandwich than Starbucks, Marks & Spencer et al, and it would be cheaper too.

Remember, you make and save money when you start thinking about your actions and choices.

Make Money: One of Two Options

If you are thinking of having more money than you do now, then the quickest way to go about it is not by getting another job but by managing your current finances better.

Anyone interested in making and having money needs to know the two options available. The first is to increase your income, while the second option is to cut down on your costs (living expenses). While both result in greater disposable income, one can be started immediately - the latter.

You might like to know if you are currently earning £25000 or more, in your lifetime over a million pounds will pass through your hands. A lot of money you would agree. The question is how much of that money will stay in your possession.

Take a good look at your bank statement the next time you receive it, notice how much money has gone through your bank account already. Take note also of the credit and debit column and the figure at the very top or bottom showing your account balance - the money left in your account.

Will your debit column consist of necessities or liabilities? What will the numbers reveal? That you have been spending just about everything you earn, leaving yourself with little or no money at the end of each month.

Or would you say you are amongst the small group of people who know how to keep some of the million pounds flowing through their hands. The group of people who apart from saving some of their money also make their money grow.

When money is limited, people always think of finding a high paying job, forgetting that a lot of money already flows through their hands. They also forget or more appropriate, fail to realise having more money is not the issue but rather the problem is keeping a lid on the ever-growing expenses and possessions.

By focusing on lifestyle, spending money on all the stuff our culture produces, you are knowingly working to keep yourself poor. The reality is that there will always be more stuff you can add to your possessions, and if all you do is buy every new gadget going, then having no money should be expected.

However, if you can learn to control your appetite, spend considerable less than you earn, you will have money left over. Get the saved money to work at a good rate and you can be sure of having more money than ever before. It really is that simple.

Making Money: P T Barnum’s Advice

P T Barnum was one of America's first millionaires, one of the most famous and recognizable men of his time.

He made himself famous globally through his business empire. He also helped his employees and partners become rich, and did it all during difficult times - war, slavery, famine, political upheaval, and economic panics.

His advice on money:

• If you desire to attain independence, you have to set your mind on it, adopt the proper means, as you would do in regard to any other object you wish to accomplish, and you will achieve your desire.

• True wealth consists in always making sure your income exceeds your outgoings (expenses and liabilities).

• You don’t have to be mean and thrifty to be wealthy, saving a half penny where you ought to spend a pound.

• More cases of failure arise from the mistake of spending more than you earn.

• There is more satisfaction in rational saving than in irrational spending; do away with the extravagant lifestyle.

• The real comforts of life cost but a small portion of what you can earn.

• It is the eyes of others and not your own eyes that ruin you. The desire to keep up "appearances" is what keeps your nose to the grindstone.

• It is true that we are born "free and equal", but we are not all born equally rich, and we never shall be.

• You will keep yourself poor by endeavouring to rise to a false standard of perfection set by a handful of people; you cannot get ahead in the world, if your vanity and envy takes the lead.

• It is wise to be a law unto yourself, to live within your means, and lay up something for a rainy day.

• You ought to be as sensible on the subject of making money as on any other subject.

• Like causes produces like effects. You cannot accumulate a fortune by taking the road that leads to poverty.

• The foundation of success in life is good health; that is the substratum fortune; it is also the basis of happiness. You cannot accumulate a fortune very well when you are sick.

• You ought to know that the "sin of ignorance" is never winked at concerning the violation of nature's laws; their breach always brings a penalty.

• To make money, requires a clear brain; it is impossible for you to carry on business successfully with a muddled brain.

That’s all for now from Make Money by Thinking, do call again soon.

Working For a Dead Horse

If you plan to have money, you will do well to avoid running into debt. Nothing drags a person down like debt.

I received some mail from the post today, most were unsolicited from credit card companies trying to lure me into debt. As I tore them up, I remembered a time when my credit card and student loan debts were a big burden.

Getting a credit card was easy as a student; I got mine during Fresher’s week - the first week for new university students - a time when all the banks target naïve students by offering free money and promising an easy life through their “best rate” loans and credit cards.

Fortunately, I did not go crazy with my credit cards, splashing out on things I didn’t need, although still a burden my debts were modest - compared to some who had debts over £10,000. I understand it is common now for students to graduate with debts over £20,000. Talk about an uphill struggle.

The first four years after graduation was devoted to nothing but clearing my debts. It was a time when nothing bothered me most than the debt hanging around my neck. I felt the task of clearing it was insurmountable. I have since vowed to be debt free, as I consider it a very good position to be in, especially debts spent on consumer goods (bad debt).

Is there good debt you ask? Yes, good debt is where you borrow money to buy something that can be sold later for profit or something that increases in value, the money borrowed in this context is seen as an investment. You can say the money spent is working for you.

Getting in debt for what you eat, drink and wear on the other hand is to be avoided. As P.T Barnum said, working for what you have eaten or worn out, but which you still have to pay for is "working for a dead horse”, as you have nothing to show for your money.

Debt you see robs you of self-respect and makes you almost despise yourself because you are nothing but a slave to your creditor. Your creditor goes to bed at night and wakes up in the morning better off, because his(her) interest has increased during the night, but you grow poorer while you are sleeping, for the interest is accumulating against you.

Having bad debt is giving money the permission to work against you, from my experience there is no chance of you being successful if you take this position. If you must get into debt, let it be for something that will make you money.

Make Money Online: As Baby Boomers Do

There is a lot to learn from those older than you are.

Baby boomers - people over 45 years - are turning to the internet to make ends meet, says a report by Birmingham Midshires.

The report states an estimated one million UK baby boomers are struggling to find work because of their age, and one in 10 over-45s are now self-employed and relying on the Internet to make money and grow their businesses.

Seven per cent said they are solely reliant on the Internet to make money and form business relationships and at least 40 percent said the net is important to their business. Almost two-thirds of those surveyed also said they have traded on eBay at least once to make extra cash.

It seems people have to put in a desperate situation before they would think of other ways of making money. I should know I did not realize there were other ways of making money until I left my job to find one closer to home. As luck would have it, I did not find a job, and I had to think of how to make money to survive. I have not looked back since.

The internet is a great place to make money, and it doesn’t take much to do so either. There are so many places online where you can start making money right away with little or now outlay from your pocket.

The problem is very few people think of the opportunities available to them, rather they are hell bent on getting a job, because for them getting a job is the only way to make money.

I am saying it again getting a job is not the only way to make money. If you are in any doubt as to my claim, then you need to get a copy of make money by thinking to find out why all you need to make money is your thinking.

How Not to Have More Money

Earning more money will not translate to having more if all you do is spend on your lifestyle.

Have you ever wondered why you had more money while you were a student than you do now you are working and earning more money than ever before?

I recall a gathering I accompanied a friend to over the weekend. It was a surprise birthday party organised by the celebrant’s partner. The number of people present was just right, not too many people, so it was easy to chat with everyone, after introducing oneself of course.

We talked about everything, growing old, getting married, rising level of crime and jobs to name few. What caught my attention during the many discussions we had was the comment made by the celebrant’s partner. She wanted to look for another job so she could have more money.

On hearing those words, I thought to myself, wondering if that wasn’t what she said before she got her current job. I know I have - am sure you have too - thought the same in the past, “Earning more money will mean having more”. You think this is logical, but the reality is the more you earn, the more you tend to spend, leading you back to your original position of not having enough.

Apart from my internal mumblings, I found myself noticing the various electronics and gadgets in her flat. She had a video iPod, plasma screen TV, satellite system, Bose sound system, she also had a flashy car outside. Not difficult to see she didn’t have any money right.

The sad fact is many people are in these situations, making a lot of money but also spending a lot on the latest gadget money can buy. It reminded me of a guy we used to make fun of while at university. This chap drove a nice car to university, but he never once had money to buy fuel in the car, the car was always running on empty.

It is a mistake to think the more you earn the more you can spend. Regardless of how high your salary is, if you keep spending on, then you will always be without money, needing to make more. A vicious cycle if you will.

Earning more money and having more money are two different things. It you wish to have more you have to learn to spend less than you make.

Make Money from What Seems a Crazy Idea

If you think making money involves hard work, think again, then read this article.

Every now and then, you hear or read about a concept that blows you away. That is how I felt when I read the article about virtual real estate in the Financial Times this Saturday.

For the unconverted, this article should prove to you, money is made by thinking, not by working hard, cooked up in an office for a big chunk of your life.

The gist of the article is how Second Life is offering people the opportunity to own property in the “virtual world”. You have the choice to buy a completed house or have one designed for you. Apart from the cost of buying the house, you also pay about $75 a month in maintenance fees. You can read the full article here.

A crazy idea right? Well guess what, according to the article, there are 3million people who own virtual property in Second Life. You will agree it’s a lot of money for selling virtual space.

It reminds me of Alex Tew, a 22-year-old student who made £500,000 in four months with his idea of a million dollar webpage.

Think and start making money effortlessly.

How Not to Join Life in the Bored Room

A lot more people are bored at work than never before and some of these people are doing jobs seen by many as interesting.

I was in the square mile today - traditional business centre of London - on my way to the station when I walked past a glass building housing employees of a big investment bank. As I walked past, I noticed a man at his desk playing the card game solitaire on his computer.

The day before I had gone for a meeting but I had turned up early at the office. While waiting for my meeting to start, I overheard a couple of people talking about their next shopping items, taking time off work and looking forward to the weekend. From there discussion you could say they would rather be anyway apart from at work.

It was not until I walked pass the man playing on his computer that I remembered an article I had read about a University of Central Lancashire study on people being bored at work. The article stated that boredom at work was now an epidemic; a third of British people are bored at work and in jobs such as teaching, marketing, and law.

A large number of people from the study lack job satisfaction. People it seems are tired of spending hours in meetings and dealing with paperwork. I know from experience that in any meeting you are bound to find two or three people busy drawing or scribbling on their note pads out of boredom.

The question is how do you find yourself in such a situation and how do you get out. Would you agree that most people (maybe yourself included) get a job because they feel having a job is the only way to make money?

Given a choice, people would rather be doing something else, what they consider interesting and fulfilling, which is great. However, the problem is that they think money cannot be made from what they enjoy doing. Therefore, they do what I consider difficult; try to make money in a boring job, forgetting that their state of mind affects their earning power.

There are also many ways of making money, many of which include doing what you enjoy. You do not have to join the bored room to make money you just need to think of ways you can provide a service doing what interest you.

Make Money: Investing and Your Emotions

A couple of things have to be in order before you start investing, top of the list are your thinking and emotions.

Get your thinking and emotions in order before you starting investing in the stock market or else you will lose money and may not recover from the experience.

I always listen to the radio on Saturday mornings when carrying out house chores. The show on this Saturday was about investing in the stock market. As is always the case the host had an expert on board to talk about investing, answer questions and advice people on what to do.

The show I thought was a good idea and was obviously something people were interested in judging from the number of listeners who called to ask questions. However, I was not impressed with the adviser, his language was technical and he didn’t really answer callers in a way they could understand. I would say he forgot to think of his audience, that they were not investors and would not know what “yield” or “dividend” means.

Anyway, what came out of the show was something I agreed with and had experienced first hand, and that was, how you thought and dealt with your emotions. As you probably know if you have been reading my articles, the way you think affects how you act. Your emotions also play a big role because if it is not set right and controlled you can find yourself making rash decisions.

I remember my early days investing in the stock market, I invested without thinking, I didn’t know what made the market move up and down. I also didn’t consider my emotions – greed, fear, excitement. All of which were more important that the actual price of the stock I bought or sold.

Take Apple Computers for example. When news came out that the Beatles were suing Apple Computers, people thought of the repercussions and fearful Apple Computers might loose the case, they decided to sell their shares in the company. When other people heard Apple shares are being sold, they too in fear decided to sell, which eventually pushed the price down. Forgetting that the facts did not change, Apple was still a good company and their products were loved and bought by millions everyday. What moved the price was fear, not a bad product. The same process moves a share price up.

You see human beings run the stock market, and they like you have emotions and it is your emotions and theirs that moves the market. The chances of making money investing in the stock market therefore hinges on you thinking and acting independently, having a plan and sticking to it, leaving no room for emotions only facts.

You will be burnt (lose money) if you ignore this fundamental point. My advice to you, sort out your thinking, understand and control your emotions - especially greed and fear - before you think of investing in the stock market. Remember you make money by thinking.