Invest for Income

Invest for Income

We have now arrived at the final step of the process for achieving financial independence: Invest for Income.
All of your income, savings and investments, so far, will be funneled into a system that will invest in property. You will earn rental profits, after you have paid your expenses (see Step Eleven: Invest in Property). It will be tempting to go out and spend this income, as if it were a pay-rise, however, you’re not going to do that. You will invest for income. Continue reading “Invest for Income”

Monthly Financial Review

Monthly Financial Review

On the first Saturday of each month (or whatever day you do your Weekly Review, I do a monthly financial review. It normally takes me another 30 minutes or so. This is where I record my Cash-flow Statement into an A4 notebook. I strongly recommend you start to do the same; I now have monthly Cash-flow Statements going back to 2006.
The purpose of this is extremely important; this is where you will see if you are getting wealthier or poorer. Put the previous month & year at the top of the first page, then divide the page into four equal segments. In the top left write – Income.

Top left is – Income.

Top right is – Expenses

Bottom left – Assets

Bottom Right – Liabilities.




1. Income

In this segment, record all income for the month, by total for each category for example Salary and Wages, Bank Interest, Dividends, Refunds, Gifts. If you are using a software or on-line tool, this will total everything up for you and take the donkey-work out of it.

2 .Expenses

In this segment record all expenses you have incurred, again by total for each category for example Mortgage, Groceries, Child Care, Leisure, Transportation etc.

3. Assets

Record every asset you have as of the last day of the month for example Bank and Cash, Investments, Shares, Pension amount, Property Investment etc. You will have done this already, to establish what state your finances are in. Now you will repeat it every month. There is no need to list all of your possessions again, unless you have bought or sold a major item; Just use the figure from the original exercise.

4. Liabilities

In this segment record each liability for example Credit Card, Loans, Mortgage From this you will be able to work out the following indicators of your wealth.
In the space below the table record the following indicators:

5. Net worth

This is simply a sum of your Assets minus any Liabilities. Your aim is to get this number into the positive and increase it.

6. Real net worth

This is Your Net worth not including your house and mortgage (as you have to live somewhere).


7. Current net worth

This is Current Assets minus current liabilities. As I said before, current Assets are things like bank and cash or any investments that you could turn into cash quickly. Current Liabilities would be things that are due soon like credit cards, but not long-term debt like mortgages and loans.

Control Your Expenses as Your Income Increases

If you perform the exercises above religiously every week and month you will begin to get a real handle on your money. As your income increases you will be able to ensure that your expenses don’t spiral as well. You will also be able to budget better and spend only what you intend.
Okay I admit it may take you years to achieve financial freedom, but as my Mum says,
“Those years are going to pass anyway, so you might as well make a start.”

Financial Freedom

Financial Freedom

This short book is about Financial Freedom and how you can gain it as quickly as possible. From now on we will call Retirement – Financial Freedom, because that is what it is. When someone retires, they receive income from the investments that their company, pension provider or the Government have made on their behalf. Continue reading “Financial Freedom”

Four more ways to arouse your customer’s desires

Four more ways to arouse your customer’s desires

Following on from the last post, here are four more ways to arouse your customer’s desires.

The Reciprocity Technique

Capitalise on people’s tendency to reciprocate good thoughts and efforts. Whenever you give or do something nice to others, people are always obligated to return the favor. As a seller, give your customers holiday and greeting cards during special occasions. They will appreciate it and will buy again from you in the future. The same principle applies when you give samples or trial offers. They might buy your product just for the sake of reciprocity!


The Contrast Technique

Many people in today’s world shop with a budget in mind. With the current economy, it doesn’t pay to be spendthrift. To overcome this obstacle (in case your product has a higher price), show your prospective customer the super value they can get from your product in contrast to your competitors’ (which could be priced lower). Let them realise and feel the tremendous quality they are getting in exchange for a few dollars more.


The Herd Technique

Most people like to belong to a group. They want to do what the rest of humankind is doing, so they can feel a sense of belonging. In restaurants, they may apply this principle by giving free foods and large discounts to their customers. If people see that there are many people inside a diner, they wouldn’t hesitate to go inside themselves. The same is true with discos and bars. Long lines are an indication that people enjoy going and hanging out at that place.

The Consistency Technique

Try to find out what your customers’ preferences are. Ask them if they value quality over price. If they say “yes,” that’s your cue to ask them if they are willing to buy your product if it has a lot more useful features than others. People like to be consistent with their values and beliefs. And to stay consistent, they are most likely going to buy your product to prove that they indeed value quality over price.
Use these selling techniques and you will surely get your customer buying with lesser efforts and skill required!