Friday, January 4, 2008

Home Based Businesses

Running multiple home based businesses can be a great way for you to achieve the freedom you have always wanted. Many people fail to take full advantage of the perks offered by having a home based business. Having your own home based businesses can make you extremely wealthy. Wealthy is not being rich, they are two different things. Many focus on just becoming rich when in fact being wealthy is what you should strive for. What is the difference between the two? Simple being rich is measured in money and being wealthy is measured in time. The way to measure your wealth is this, if I were to lose my job today how long would I be able to survive with my current lifestyle? Do you see the difference? If not do not worry I will go into more detail in this article.

You see you must think of your finances in terms of what is relative to you. Do not think about anyone else's finances, just focus on your own. I hear many people say if I could only make an extra $10,000 a month or if I had an extra $50,000 dollars, all of my financial problems would be solved. A majority of the time this is completely false. See a majority of the time when people make more money their expenses go up and they are right back to where they were when they first started. The only difference then is they are making more money. This is what I call focusing on being rich. When you hear people brag about how much money they make or have, you have to remember it only tells half of the story. Let me give you a little example.

Let's say Tom was making $50,000 dollars a year working for XYB company. Tom's expenses were around $65,000 a year. Tom figured if he could get a raise at his job, all of his financial problems would be solved. Tom finally got his raise, a whopping $150,000 dollars a year at XYB company.

As soon as Tom received his promotion he felt like he had to keep up with the times and he realized the taxes were pretty high for that bracket. So he decided to buy a big house and a nice sports car. Before Tom knew it he was back to living in debt. He was spending $200,000 a year and only bringing in $150,000 a year. He was back to the same place he was before, so like most people he figured he needed a another bigger raise.

Now is the typical lifestyle many people today are dreaming about. What is wrong with this? Everything is wrong with this. What were to happen if Tom were to lose his job? Due to company downsizing or if his job were to be exported overseas. Tom would be done and would most likely have to settle for a huge paycut working somewhere else. If you don't believe me visit your local unemployment office.

Now if Tom were wealthy he would not have to worry about this. Your wealth is determined by this, if you were to never work another job again, how long could you live your current lifestyle with the money in your savings account or the income from your assets? If you could only live 6 months without working then your wealth is only good for 6 months. I'll let you in on a little secret, the reason why the rich get richer is because they spend their time building assets which produce money for them. So they never have to work for money.

Building a home business is a perfect example of building a valuable asset for yourself. Many people have no assets what so ever, all they have is a job. Many people consider their house an asset because they can save money on taxes by owning a house. This is completely false because your house does not produce an income. And for those of you who want to make over $170,000 working a job, well the government takes the tax benefits you would normally receive while owning a house.

If you truly want to become wealthy it is simple build assets for yourself. Reinvest your money into more assets and let your money work for you.

Home Based Businesses

Many home based businesses are failing. Studies show 90 percent of all home based businesses are failing to make any profit. There are many reasons for this. I believe everyone from the companies to the home business owners are at fault. Many people are afraid to join or start a home business because of all of the negative publicity going around. Many people who have actually started a with a business have lost lots of money but at the same time many people have also made a ton of money with these types of businesses. I will separate the myths from the facts in this article and explain what is really takes to be successful with these types of businesses. Hopefully this will put to rest any fears or questions you may have about the home business industry.

Like anything else in life you will alway's have a few bad apples ruining it for everyone else. And this is what has happened in the home business industry. There have been a few companies who had one purpose and that one purpose was to scam hard working and decent people out of their money. Once this happened of course word spread and a therefore a bad rep was given. Another thing that has hurt the home business industry is bad advertising. Some companies make promises they cannot deliver on. For example make $100,000 a year only working 10 minutes a month. Claims like this are completely untrue and many people have been burned by companies proclaiming ads like that.

But it is not entirely the companies fault, either. This maybe something you are not used to reading or hearing but it is also the faults of the people looking to join or start a home business. Most business owners will not tell you that since they are looking to sell you something, so they tell you everything you want to hear. I will be very blunt, many people looking to go into this industry are looking for the quick fix. They are looking to make money overnight. Many will give up after one month of trying to get a business off the ground. Now as a business owner myself, I think that is crazy, quitting after a month is ridiculous. You have to give your business a chance to succeed by sticking with it and working it daily.

Over 90 percent of home based businesses fail because many people come in with the wrong mentality. They come in thinking they will get rich quick by only working 10 minutes a month. Some of the companies in this industry also do not help out since they make such claims, like work 10 minutes a month and make 6 figures. Building a business for yourself can be one of the greatest things you can do for yourself but you must understand a business takes time and work to build. It does not happen overnight. If you are willing to put in the work and stick through the ups and downs you will find yourself enjoying a life of wealth and abundance.