Habits of the World’s Wealthiest People [Infographic]

A study was done by Thomas Corley on the habits of 233 wealthy people and 128 poor people. The wealthy is referred to by those that earn at least $160,000/yr with at least $3.2M assets and the poor is defined as those that make less than $30,000/yr with less than $5,000 in assets. To increase your chances of becoming wealthy, study the habits and actions of those that are wealthy.

This article first appeared: http://www.entrepreneur.com/article/230918

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The Best Way Start a Business With No Money

You have an awesome business idea. You’ve been thinking about it for years and now is the time you want to step out there and try it. And, I know you have some reservations because people have told you that it’s hard to start a business, especially without startup capital. But, actually it’s not as hard as you may think.

Anyone can start a business with no upfront capital- all you need is the right idea and a few basic principles. This is a highly effective strategy because it relieves the pressure and stress of having to raising money to start your business. It also has proven to work for me down through the years with other projects and startup ideas.

The best way to start the business with no upfront money is to use what you have to get what you need. The key to starting a business with no money is to find ways to make the business startup pay for itself. By using what you already have access to, you can make money without actually having startup capital.

To explain this, let’s look at a real-world business situation:

Let’s say you want to start a business washing cars. But, the problem is you don’t have any supplies or equipment and no money purchase them. Since you have no supplies whatsoever, use some of the things that you have around the house. Find some old towels and a mop bucket. And, since you don’t have carwash fluid, you can use dish washing liquid. Now that you have the essentials, ask a neighbor, family member or spouse if you can wash their car for 10 or 15 dollars. With the money you earn from that job, you can buy some actual carwash fluid and a carwash sponge. Those items won’t cost you any more than $10 – $15 at the dollar store.

So, there you have it. This business principle is guaranteed to help you get from where you are to where you want to be.

Another way to start your business with no money, is to borrow. For many people this is pretty obvious. Using our real world example of starting a car washing business, if you don’t have a water hose you can borrow a neighbor’s or family member’s. And, after you’ve washed enough cars and earned some profit, you can then purchase your own hose. An important thing to remember about borrowing is to doing it in integrity. After you’ve earned the money you initially invested through borrowing, paid it back so you’re not in debt. This is called breaking even. This creative strategy of borrowing will help you get your business off the ground and set you up for healthy growth.

Speaking of such, if you want your business to truly grow, you must invest into it. So, after you’ve been in business for a little while, it’s now time to put money back into your business. It’s important to weigh the pros and cons in your reinvestment. Don’t do something just because you can; do it because it’s the most efficient, effective thing to do. Don’t spend money just because you have it. Wise investments will guarantee business growth and more customers.

At the beginning stages of business, it’s important to understand loss, gross profit and net profit.

Loss is the negative difference between retail price and cost of production.

Gross profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead (payroll, taxes, etc.).

Net profit, also referred to as bottom line, net income or net earnings, is a measure of the profitability after accounting for all costs. Basically, it’s the total amount of money after expenses.

Earn Extra Money

Who doesn’t need extra money these days? According to a national pole, 8 out of 10 Americans say that the economy is in poor shape. With the fluctuations on Wall Street and the unstable real-estate market, everyone is looking for extra money in today’s society. Even the other 2 out of 10 Americans that believe the economy is in an upswing can use a little extra something. Well we’ve put together a little list of ways to earn some extra moola (some very creative).

Get a second job. That’s somewhat of a given for most people. The classic American that needs more income will generally seek to get a second or third job. According to the Bureau of Labor Statistics, over 5 percent of people in the U.S. work multiple jobs.

Start a business. There are millions of small business owners in the US. Depending on the type, starting a small business doesn’t require a lot of money, if any at all, and can be very lucrative.

Have a garage sale. This is a very practical way of earning some extra money. Everyone has something that they do not need. You can sell those things off at a garage sale and make some instant cash. In the US, there are 165,000 garage sales per week, earning $4,222,375 weekly. That’s a whopping $202.6 earned a year in garage sales! WOW!

Invest in stock market. The stock market is risky, but can be extremely lucrative. But, this is not an instant money-maker. Stock require time to yield a good ROI (Return On Investment).

Play the lottery. Wish to your lucky stars and play the lottery. You just may win. The most common numbers in the Mega Millions lottery are: 4, 29, 36 and 48. Even though your odds at winning the lottery is pretty low, if won, it could change your life forever.

10 Tips to Get Debt-Free

  1. Cut up your credit cards. Believe it or not but a lot of people that are deep in debt still have open credit cards. Now it’s okay to have a low-interest card for emergency situations. If you’re on the path to debt freedom, close and cut up any credit cards you may have and live on cash. Stop getting further into debt.
  2. Get your credit report. After you’ve closed your open accounts and cut up your credit cards, find out your credit score and see what’s on your credit report. You can’t get out of debt until you know what you have to pay. You actually may not be in as much debt as you think. Credit card debt for the average American household is between $14,000 – $17,000. You can order free annual reports from the three major credit bureaus (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com.
  3. Fix errors on your credit report. If you find mistakes on your report, contact the credit bureau immediately. Instead of using an online form, send a letter that includes your name, address, decryption of each item that you’re disputing and an expiation of why you dispute it.
  4. Budget. Creating a budget is not only vital for debt freedom, but it is also vital for financial freedom in general. By creating a budget, you are able to see where your money is going an how much you have to go towards paying of your debt. Keep it simple. Write down your income and expenses. Subtract expenses from income and that’s the amount that you have left. Save a portion of it and put the other portion to debt payments.
  5. Pay off the smallest debt first. Find out what the smallest balance is on your credit report. Attack it first and make minimum payments on everything else. Then move on to the next one smallest balance. If you’re not able to make minimum payments on everything else, just take it one at a time, but pay it off as quickly as possible.  This method will create some momentum and encourage you to continue paying off your debt.
  6. Make payments on time. Making on-time payments can not only encourage you, but also can keep your score at a good level. Late payments can kill a credit score. If you make one late payment, up to 100 points can get erased from your score. On the upside, there is usually a grace period for late payments. Depending on the company, it’s usually 30 or 60 days. But, if no payment has been made within that grace period, the credit company will report it to the credit bureaus; and that will go on your report. But, here’s another good upside: after you’ve made several good payments, you can write/contact the credit company and ask them to remove the late payment off of your report. Consistent on-time payments looks very good to creditors and can have a great impact on your score and report.
  7. Remain focused. If you really want to get out of debt, you have to make up your mind and remain focused. You will not get out of debt overnight, unless you win the lottery. Chances are you didn’t get into debt in 2 or 3 years and chances are you won’t get out of debt in 2 or 3 years; it may take longer. But, that also depends on your ability to remain focused and determined. Create a plan of action and stick to it. Hang in there; you can do it.
  8. Find your purpose. Why do you want to get out of debt? To help your children? Go on a vacation? Start a business? Have peace of mind? Finding your purpose and keeping it at the fore-front of your mind will help you remain focused.
  9. Consolidate your debt. Debt consolidation can be a risky business. It usually involves a secured loan against an asset that serves as collateral, like a house or car. By using collateral, the interest rates are lower. They are lower because by collateralizing, the owner agrees to allow forced sale (foreclosure) of the asset to pay off the loan. Since the interest rates are lower, the loan is usually paid off sooner. Proceed with caution!
  10. File bankruptcy. If all else fails and you just can not repay your debt, consider bankruptcy as a last resort. There are some major drawbacks, however. This will remain on your credit report for 10 years, making it almost impossible to obtain credit. Another drawback is the fact that filing bankruptcy costs money (the very thing that you’re in need of). There are several types of bankruptcy, but it basically means that you are incapable of repaying your debts and they will be discharged from your report.

Start a Business With No Money

Anyone can start almost any business with no money. All you need is the right idea, a few basic principles to follow and a dead-on focus that leads to success. In this business development guide, we’re going to give you some tips, advice and some guidelines that will help you start the business you’ve always wanted to or just make some extra money from your favorite hobby.

1. Identify your passion or idea. All of us have passions and ideas. We were all given some sort of gift, talent, skill or idea. Believe it or not, but that thing can actually make you money, and possibly rich. So, what is that thing you’re passionate about? The thing people always ask you to do. The thing that when you do it, it makes you feel the happiest. The thing that you will do for free? Whatever your answer is, that is the thing that can take you to your wealthy place.

2. Eliminate expenses. Now that you’ve figured out what your passion/idea is, the next step is to figure out what the expenses are and find ways to eliminate them. With any business launch or operation, there will be expenses; that’s inevitable. If you can not eliminate the expenses, then you can not start a business with no money. However, there is an alternative, which is investors. If someone invests in your business, you won’t have to pay for anything yourself. So, to a certain extent this method is still considered starting a business with no money. (it’s just not your money)

3. Make the business pay for itself. The number one key to truly starting a business with no money is figuring out ways to make the business pay for itself. If you can figure that out, then you won’t have to pay for anything out of your pocket, or anyone else’s (including loans). Nine times out of ten there is at least one way that any business can pay for itself.

4. Write the vision and make it plain. It is extremely vital that you create a business plan. It doesn’t have to be an elaborate plan that has yearly financial projections and investment proposals. It just needs to be something where you can see where you want your business to go. Holding something in your mind and writing it down is two different things and yields two different results. Writing allows creative ideas to flow. When you write down your thoughts, they become more clear and you’re able to see the end in the beginning. This also allows for better planning. If you fail to plan, you plan to fail.

5. Re-evaluate and invest. After the business has started making money, take a step back and re-evaluate it. Is it going where you wanted it to go? Are your time investments equalling the return of business that you’re receiving? If so, continue to more forward and invest money back into the business. At this point you may want to form your business as a company. In that case, you will need to register with your city and/or state to get a business license and get an Employee ID number and/or Sales Tax number. In setting up a company, there can be a lot of “red tape”, so make sure that you cross all of your “t’s” and dot all of your “i’s”.