Traditional methods of wealth creation (Real Estate, Stock Market, Own a Business)

Before we get into the topic, it would help to understand a little bit more about wealth. Our usual way of thinking is that if the cash inflow or income is high, we are wealthy. However, if the cash outflow i.e. the expenses are high, the net savings ends up being low and hence we tend to live paycheck to paycheck. In case a personal emergency comes up or if you have some medical emergency that is not covered by the insurance that you have taken, you end up having to dig deep into your savings. In my corporate career, I have seen numerous cases like this and I was in the same boat myself. The important thing is to realize that and make the attempt to change things. We need to be able to have multiple sources of cash inflow so that in case some dry up, we can always lean back on the others.

First, we need to be clear about why we need to create wealth. I am a strong believer of “The Secret” and the Laws of Attraction. You have to focus on positive things and positive things will start happening. e.g. there is a difference between focusing on earning $5000-$10000 a month versus thinking that we will clear off this debt or this loan or pending payment. Good things start happening when you focus on the earning rather than the expenditure. We should understand the options we have at hand and also understand more about our risk taking quotient. It depends a lot on the cash reserve that we have. A higher cash reserve will automatically give us the backup to go for higher risks. But, we should take calculated risks. We should be prepared for the eventuality that things may go wrong or may take more time and plan for that. The rosy picture portrayed usually does not work out. So, we need to be careful there and plan ahead.

Some options are:

  1. Real Estate: This is an excellent way of creating wealth. Most people tend to go this way but end up taking bank loans to purchase houses or land rather than using cash reserves. The negative aspect of bank loans is that the bank owns the house or land till the loan is cleared. Most people take up the loan thinking that later their income or cash inflow will increase at a later point and they tend to discount any cases of reduction in cash inflow due to emergencies. In case of loan defaults, the bank ends up taking over possession and the entire loan amount paid till date gets lost. Banks then end up selling these houses in auctions at much lower prices. What we can understand from this is that we can use these foreclosed properties to get good deals. Secondly, builders often give very good deals when the money is ready at hand as home loans usually take some time for processing. Ready money gives you the option to bargain better. Of course, I should put in a disclaimer that we need to do our due diligence and ensure that the property documents are clear, builder is a good builder with good past history, location of property, potential for increase in value of property, neighbouring areas and that there is no dispute about ownership and the seller has clear rights to make the sale. Real estate can earn good money provided we are cautious about it. The game “Monopoly” is an excellent game to understand how we can go about it. “Buy Low” and “Sell High” works.
  2. Stock Markets: Warren Buffet is an inspiration in this field and numerous books have been written about making money through stocks. Here also the “Buy Low” and “Sell High” motto works very well with a very clear understanding of our risk profile. We need to understand more about how valuable the stock really is and how much it is likely to grow. Then only, we should take the decision to buy or hold. If the stock is already overpriced, we should not buy it. The volume game works especially if we diversify and buy stocks across different industries. There are a lot of predictions about how the stocks may do and lot of experts talk about that and sometimes, we tend to blindly follow the experts. However, we should first understand that experts may or may not invest in those stocks. Its very likely that they would have already made the purchase at a very low price and by the time you make the purchase, the stock would be already very overpriced. We should do the due diligence ourselves first and then use the experts advice as a guidance. Once we do a few test runs, we are able to figure out which techniques work and which ones don’t. Stock Markets can also earn good money and we have to keep an eye on the fact that timing of entry and exit matters as there are a lot unforeseen circumstances that could make the stock prices increase or suddenly fall down.
  3. Own a Business: Owning a business is an excellent way to earn money. There are numerous opportunities available (Opening a restaurant, Owning a Franchise, Import/Export Business etc) and we need to understand that no business is 100 % failure proof and it is quite challenging. Each opportunity is different and the necessary due diiligence needs to be done to ensure that the terms are as favorable to us as possible. We need to plan for cases where the business may not do well and we need to have a strong reason for doing the business so that when the downs come, we are still ready to work on the business. Also, we need to focus on building multiple businesses so that if one dries up, we can always lean back on the others. Building the business is the toughest and we need to focus a lot on that. There is plenty of scope for working on online or e-commerce opportunities and we see a lot of cases where the brick and mortar shops have had to change strategies in order to try to compete with online stores or in some cases had to shut shop completely. Online is the way forward. However, we need to have a proper business strategy in place as only the ones with a clear approach will succeed as the market matures. Building the customer base and clear understanding of products/services and the target market is important but reducing prices below the margin price will not sustain the business.

These wealth creation methods will generate sufficient wealth, the type that cannot be generated from just putting savings in a bank in various deposits or mutual funds.

 

 

 

 

 

 

PTC that pay and Revenue Sharing Sites (AdspayPro, Clixsense and TrafficMonsoon)

Best PTC Sites that Pay

There are quite a few PTC sites that pay. Most notably, AdsPaypro and Clixsense. Not only can you earn by clicking ads directly but you can also earn much more through the Affiliate Program. Are they a scam: The answer is “NO”And do they work: The answer is a resounding “YES”. Initially, you might find the inflow less especially if you have no referrals but once you have referrals, the inflow suddenly starts increasing.

When I started, I tried a few paid options for working from home e.g. pinku.in (They go by different names like whygoout.in and jobperfetto.com). They ask you to pay some money for a CD package which explains about how to go about the work i.e. filling forms. As a trial, they will ask you to do 10 forms and if they look fine, they will assign you more work. Unfortunately, they will not get back to you after that. I tried multiple calls to the Customer Care and multiple SMS messages but no reply. Then I realized that this was a way for them to make money. The trial of 10 forms by multiple people should be enough for them to get the work done for free. It was a lesson well learnt: Don’t go by gimmicks.

That’s when I realized that we should avoid paying money to do anything online as there are a lot of scamsters around. Of course there are good people around who will try to help you but you have to be very wary and watch out for the Shiny Object Syndrome. If something looks too good to be true, it probably is.

This is when I came across Pritam Nagrale’s blogging site (MoneyConnexion) which provided me a very good idea about how to go about things online. I am grateful to Pritam for the excellent advice. It gave me the direction I badly needed for starting online.

Special Note about TrafficMonsoon:

For the time being, Traffic Monsoon is not a good option to go ahead with as there are some legal complications. On July 26, 2016, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah against Traffic Monsoon, LLC, a Utah limited liability company, and Charles David Scoville. The Court entered a Temporary Restraining Order, an Order Freezing Assets, and an Order Appointing Receiver. Peggy Hunt of Dorsey & Whitney LLC has been appointed the Receiver in this matter. Pursuant to a Court order Traffic Monsoon is not legally allowed to operate, accounts have been locked and assets have been frozen. Hence, please do not invest in Traffic Monsoon at this stage.

Then, I checked out AdsPayPro and found that to be an amazing option. The returns were much quicker than I anticipated and that was what I was seeking at that point in time. However, please note that different offers keep on coming from Ryan and you need to evaluate each offer independently and see if they fit into your future plans or not.

ClixSense is a free way to join a home business program that brings you money each time your browser visits a certain web page for more than 30 seconds. In the mean time, you can do whatever you want. You will earn $0.005 to 0.01 for a single view, and if you make more than 10$ a month, then you will receive a check or get paid through PayPal or Alertpay. You can also lift up the 10 $ limit if you want to do so. Although you can sometimes earn as much as 5$ for a singe ad, almost all ads are worth a cent while the other ones are worth two or three cents.The amount that you earn per visit depends on the advertisers choice to spend money. Although they do exist, $5 ads are rare. Signing up is free and you can immediately start making money right from the comfort of your home. Free members will receive 10 cents for each referral and about $2 if their direct referral has a Premium Account. A free member will also get 10% of all its referrals ad purchases. The best thing you can do if you are working in this way is to upgrade to a Premium membership. It only costs $ 10, but these ten bucks will be money very well spent. 90% of all ads will only be available if you are a premium member with a very good portfolio. You will need a credit card or online bank account to upgrade to a premium membership or you can use your current balance.

TrafficMonsoon.com is a specialized advertising and revenue sharing company that allows international participation of individuals and groups. Our services provide high quality advertising targeted for people seeking for a way to earn money online along with complete account privacy, top level online security, efficient account management, and a dedicated support team. The company’s traffic generation resources are capable of sending your website several thousands of visitors quickly. All our members have equal opportunity to benefit from an attractive revenue sharing plan on a long-term basis. There is truly no risk to our revenue sharing plan, because the quality of advertising services you’re paying for out-weigh the price. You’ll really notice the difference with TrafficMonsoon in results, and profit sharing.

AdspayPro is a Premier display, captive and messaging based website traffic system. It provides the following services:  Traffic Exchange Start Pages, CPM/CPC Banner and Text Ads, Login, Interstitial Page Views, Pop-up/ Pop-Under displays, Captive Website Traffic, Solo Ads, Email Line and Rider Ads. It has a nice Affiliate Income Program:10% Direct first level Commissions on ALL purchases made by your personal referrals, Realtime Accumulation Units, Units start accumulating revenue in SECONDS!, Each unit can accumulate up to 1.2 time their qualifying purchase, Accumulated revenue is automatically locked in and disbursed hourly!, Level-Up Bonus Rates Paid, Unit Targets increase by Member Rank or Service Level, Up to 25% Referrers Match on your direct referrals.

I am evaluating other PTC sites and will keep you posted about them.

 

 

 

Let’s create wealth

Quote from Starbucks CEO Howard Schultz
Quote from Starbucks CEO Howard Schultz

The above quote from Howard Schultz is inspirational and outlines why we need to challenge status quo.

This section is intended to cover the following wealth creation areas but will expand as we continue on our journey:
•Ways to increase wealth and gain financial freedom
•Traditional methods of wealth creation
•Ways to augment your current income and potentially replace your income with additional investment
•Ways to augment your income and potentially replace your income without any additional investment

I will be covering different ways of thinking and approaching things differently from a financial perspective. It is extremely difficult for a person in a 9 to 5 job to attain true wealth as a typical person is just a few months away from bankruptcy. Its not impossible but its very difficult as expenses tend to come close to the income levels. We are encouraged by society to take up big house loans or big car loans or put our kids into big schools with the assumption that the income flow will continue steadily for years. What if the income stream stops? Then what do we do?

So, how should a typical person achieve wealth. What are the various things which can be done or explored which can transform lives and ensure that we have sufficient funds to tide over any medical emergencies, sudden loss of income sources or any unplanned expenses.