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Money

Do not be afraid to live your dreams

Living your dream means living a life of meaning

It is beyond me why some people are afraid to live their dreams. I know life is hard and you have pressures from all side, money, parents, fears but why do you not live your dream? You have to be strong because this is the only life you have. ‘It is because we will never be here again that life is so sweet’. Yes, I believe in God and see this life fragment of our existence in eternity. However, this life is important in itself and you are here for a reason. This life means something and if you are not dreaming and then living your dreams you are not discovering the meaning of your life, It will be a wasted life.

It is very hard to do when and most people are afraid to make a wrong choice. Here is a trick to help you overcome this fear: remember there is no such thing as a wrong decision in life as everything in life is a learning experience. Just make a choice. Exercise your free will.

I know one friend of mine who has been in a bad relationship for many years. It is not that bad, just not the real deal. It is just not the moon and the stars. Why he does not go for what he wants in terms of love is beyond me. I think it is fear.

I know one girl who has a great job, interesting everything going for her in the right direction, but no guy. She tried Internet dating but really is settled in her job and habits. She will not get married.

I think again it is all about fear that people do not live their dreams. Fear of failure or something bad will happen. You know what, maybe something bad will happen. Maybe everything will be wrong and then it will be the end, you will get sick and then end, but so what. At least you lived your life.

Do you remember the movie Papillion (he was stuck in captivity on an island)? He has a dream:

Judge in Dream: I accuse you of a wasted life.
Papillon: Guilty I’m guilty.

Do not waste your life. Be free from your fears and live the life that you are supposed to live. Whatever that life is. Feel the fear and do it anyway.

The first step is to dream

If you are not dreaming of something, that is anything, I highly recommend you start. You need to have a vision. If you do not have one start thinking about what you really loved when you were a child. Maybe it as travels or going to France. For me, it was learning languages. But whatever it is you should really start dreaming this is the first step to living your dream.

Do not be afraid to live their dreams step two

What is the second step? Start dreaming about what is needed to achieve your dream, that is concrete logistical steps. Thinking is the hardest work there is that is why so few people do it. Think, dream and plan, if you do not have the strength ask God to help you. Read books like the ‘Power of Positive thinking’, whatever it takes. What the movie ‘Yes man’ – the man who said yes to everything everyone asked. It is based on a real story you know.

People are destroying their lives working at whatever jobs and relationships.

I have scores of stories like this, people ‘s whose minds are free and they are living their dreams and they have a wonderful life. Look at hippies, many of them became very successful people because their minds were open and free. They were not afraid to live their lives. For example, I had this friend who worked in a coffee shop and looked like he crawled out from under a rock. I was an investment guy. My parents were always said ‘look at that boy he will never amount to anything’. I said he is doing what he loves in life. They shook their heads. You know what, his mind was open and free and he started his own company and he is a millionaire today. I think that is the rule, as you know from the ten richest people in the USA, only two graduated from college.

I have another friend at 55 years old was unemployed so he started a company and now is living his life. His friends who got laid off are still complaining about their life.

I am working on my Ph.D. in Economics and I am not twenty years old. If I can do these things so can you. I am no different.

I have scores of stories of people who are afraid to live their dreams and are mildly depressed.

If you need any motivation write to me. Whatever is blocking you I might be able to point you in the right direction.  I would not talk so big if I had not done this all myself. My message is do not be afraid to dream and then to live your dreams.

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Money

Fast ways to make money I tried

Fast ways to make money – I have tried and work

Do you need to make 10,000 dollars fast? Do you want to try to add income to your main job for fun? These are ranked in order of effectiveness based on my own personal experience. Again these are fun ways to earn cash.

  • Have a blog –  If you want to make money this is very popular. You can earn money with advertising or selling your own products or services. Research how people make money with a blog. The downside is it takes about 100,000 words before you start to get respect. This is far and beyond the best way to make money, however, it is not a fast way like a week but a couple of years. Do not read too much about tricks on how to make money online, this just takes your time. Simply choose a topic you really love. It could be anything and write passionately about it.  Start a WordPress blog with an SEO theme and a few plugins. Next, write about 1,000 words every day.  After you write to you When you have your first 100,000 you can start thinking of ways to get an income stream from it. If you need help with all of this I can give you an hour or two of consulting if you contact me.
  • Tutor the English language – Many foreigners are looking for English lessons. Put up announcements on online classified or signs around town if you live in a city.  Use Murphy’s grammar and English conversation, specializes in medical English and earn more. It is easy to get students and when you are good it pays well.
  • Sell consulting services on the Internet (IT) – Very good money here but need technical knowledge. You can even sell this remotely via Skype.
  • I have Sold things on e-bay  – Works well if you can find a niche. I sold old currency. I love Eastern Europe and bought it very cheap and sold it to the Americans. It is winning in as the value I offered was very good.
  • Life coaching services – Only if you have your own act together, you can charge a sliding scale based on need.
  • Resume writing services – This is similar to making money with consulting. If you were a decision-maker in the past with hiring people then you can do this.
  • Created an ebook – I believe this is infinitely better than selling someone else’s e-book. The problem if you have to write something good, compelling and not recycled information. Information based on your personal experience.
  • Freelance writing – You are a native speaker in English.  This is very valuable, if you write for others you can have a nice cash flow. But why? Why not write for yourself. No one will pay you what you are worth?
  • Reflexology – or any other type of holistic treatment for fun.  Buy body shoppe oil and offer spa or treatments for people. You have to be well organized with a table and a few things to be legitimate.
  • Sell vegetables in the farmers market – Buy it from a wholesaler and sell it in the market. Many immigrants do this as it is easy and fun.

If anyone has tried anything else let me know. I am always open to the idea, but these are the ways to make money I have tested.

More resources on money-making

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Money

How to make money fast

Are you out of cash and need to make money fast? I can tell you how. Based on my own personal experience of moving to a foreign country where I did not speak the language and needed to survive, these are ideas to make money quickly.  I am only recommending ways to make money legally, ethically and that work. Further, these are not long-term solutions for your life, but rather until you get your feet on the ground.

I have to also say I have not had a real job in about 6 or 7 years, I am 100% debt free and live an upper-middle-class life. I get up in the morning and I do not have a job, although I make money and pay taxes in two countries, I just do not go to work. When you have the time to think about your life and ask God to show you the way, you will get your answer.

Best ways to make money fast

  • Teach English as a foreign language. – whether you are living abroad or in the States, there are always people who need to learn a language. I think you do not have any qualifications, think again. You are a native speaker. No one is more qualified than a native speaker.  Charge 20 dollars an hour cash. If you are not a native speaker even better teach your own language. Put classified ads in GumTree and Craigslist.  Teach out of your flat it saves time with commuting. Let’s say you teach 30 hours a week that is 30,000 dollars a year. Not bad. A lot of my friends do this.  Specialize in medical or legal terms and you will learn more.
  • Beg. I have never begged for money but I believe begging as long as the money goes to food and survival is a time-honored profession. For thousands of years, people have begged for money. Further, consider all the jobs people do pushing the paper in the office are they really adding that much value to society. With begging at least you make someone feel good that they are helping you.  If I needed to I would do it. However, go to a large rich city, look clean and state clearly on your sign your problem. State clearly you will also accept work. You would be surprised.
  • Be a street performer. One of my friends makes 300 dollars a day.  I think this is a very good income. She is a human statue. This is not your dream career but if you really go all out with your customers and use taste and imagination you will make money fast.
  • Offer normal therapeutic massages. I do not know the laws but many people I know who are students in foreign countries give massages without training. If you are shy just give them to your own gender. I think you can make 50 to 100 dollars an hour for a normal message if you know how to market yourself and are sincere about giving ethical clean service, that is you put your heart and soul into it.
  • Write to make money fast. On the Internet, there is almost an infinite number of people looking for a writer. Even me I have a few blogs and I can never really find someone to write for me. I think people lack self-confidence. However, if you know something and can write about it, from collecting stamps to how to send an SMS people will pay you good money for this. Believe me, this is true, writing in English is one of the highest paid professions. I can not explain it all here but trust me, if you know who to write, even if you failed English, you will achieve wealth. rich.
  • Sell all your things on eBay. I told my wife to sell boxes of books and clothes and things we do not need on eBay and it has generated cash.
  • Do not waste too much time to make money online unless you know what you are doing. Some people can do this but it is a very good long-term solution and I can recommend it. However, it is not a short-term solution.
  • I use to sell vegetables in the market. Easy job, find a supplier and set up a stand and you will earn dollars in a short time. I also took a bus to another country and brought back goods that were cheap there and sold them here. I personally have a farmers market and grow in my backyard.
  • Be a waiter or waitress or any type of job that pays a lot, including being a professional fish cleaner in Alaska or where ever. In Europe, people with masters and Ph.D. do very basic jobs and move to foreign countries to do this. Some clean houses but all work hard. Thomas Carlyle said ‘all work is noble’ I believe this. Work is the way you serve humanity. Try to pick a high currency country or state.  Poles work in Norway in a couple of years come to Poland and pay cash for a house.
  • Liquidate your life. Sell everything and put your money into 50% index fund and 50% cash. Then move to a foreign country where it is very cheap. I live in Poland and it is 1/3 the price of the USA. A penny saved is a penny earned. The same apple in the USA costs 300% more as does everything else.  I live a very good life with full cable TV, IKEA furniture, Whole Foods groceries, languages tutors, yoga classes and maids for under 10,000 dollars a year. In Boston, I made over 100,000 dollars to have that lifestyle. If you want to make money fast, liquidate everything from your car to furniture until you are living a zen lifestyle. Then cut your expenses to nothing.
  • Lawncare– It is fairly straight forward. You cut someone’s lawn or landscape. Some people join the military to get free college tuition, I would just do lawn care. I know a few people making over $100k a year.
  • Ride Share – I know this is out dated at this point but I know people that make several thousand dollars a month.

What do you think? Do these sound strange and out of your comfort zone? I am sorry but this is life, no one said you will have a job, house and a gold watch after 35 years of work.  Where is your courage?    I think if you have money problems it is because you think money is important. Since I live in Poland, a country where people lived on nothing during communism. They only had vinegar on the shelves and nothing else and people where happy. I can not understand why Americans are crying crisis. If you have money problems as God to help you and show you the way. Also, consider some of my ideas on how to earn money fast. If you have further ideas or comments let me know as I am curious about your thoughts on this post.

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Money

Why the Rich have Money

The purpose of this post is to explain why the rich have money in a way that other people have never explained it.

Why do I know about why the rich have money and wealth?

I grew up in a fairly wealthy family in New England.  Going to an elite boys boarding school and rubbing elbows at the country club and golf club from my early days I was able to observe why and how people got rich.  At my parent’s great Gatsby parties I meet both old money and some rags to riches stories, like Horatio Algiers. You might say my family was on the tangent of the super-rich. Here I observed first hand why the rich have money and how they make money.

I earned a Master’s degree from Trinity in Economics. I worked on Wall Street, however, it was not until I moved to Eastern Europe did I fully become aware of the secret to wealth. Yes, there is a secret, but not like you find in most books.

There are countless scores of websites, books and coaching programs that tell people how to get rich. However, most of these are recycled information and do not get you anywhere.  If they did then the people who read them would get rich. I used to read these books, get all pumped up, they have nowhere to go.

The following is the way the world works in any capitalist society. What you do with the information is up to you. I do not sell anything here and do not care even if you believe what I write.  Apply the ideas or not.

The idea of how the wealthy make money are close to how countries get rich.

Why the rich have money

Why some people are wealthy

The real theory of wealth creation is focused on how people work rather than some abstract list of motivational ideas. In a capitalist economy work is the heart of wealth creation. Without work, nothing can be done.  I believe in work. All work is noble.

I believe in earning money rather than money just being plucked from a money tree. There may be cases where this is so, but highly unlikely as it is based more on the circumstance. Here is the secret for wealth creation.

There are four types of workers or ways to earn money and explains why the rich have money. Which type of worker are you?

  • People who earn money by selling intellectual goods
  • People who earn money by selling intellectual services
  • People who earn money by selling physical goods
  • People who earn money by selling physical services

The people who sell intellectual good generally make the most and the workers of physical services generally make the least. Let’s look at these four groups of money earners.

How workers of physical services make money. People in this category work in a shop, clean office buildings, work construction, etc.  These are great people and I have been in this category for many years. However, since the service they sell is a commodity, that is you can get anywhere, the price they get paid is relatively low.

How people who sell physical goods make money. These are people who sell things themselves from eBay to apples on the street to computers or washing machines. It does not matter, they all make a better profit for their time than workers of physical services.

How people who sell intellectual services, the almost rich, make money – These people make reasonable money but are not often the super-rich. Rather they live comfortable middle class or upper-middle-class lives and sometimes lower upper-class lifestyle (If they get a very large amount of stock options, and thus become owners). These are lawyers, doctors, accountants, teachers, consultants. That is these are your professionals.

However, the problem is most professional people sell their intellect to corporations. Further, they sell their intellect on an hourly basis (a salary is still an hourly basis).  Read my lips, the issue with this is in a capitalist economy the only way to get rich is to be a capitalist. When you sell your services to a corporation by being an employee, they will take most of your value-added and keep it as their profit. Further, you are giving up your time to work there. It is your time and life in exchange for money.

A firm will pay and employ a worker when the worker’s marginal product equals or exceeds the marginal product given to the owners or firm. If not the worker (professional selling intellect) is of no value to them and they are let go from corporate America.

You will always be paid less than what you are worth or creating. Otherwise, no company would be in business. The owners of the company take your sweat and toil and imagination and live the lifestyle of the rich and famous.

How people who sell intellectual goods, the rich, make money – They sell intangibles. These are people like Bill Gates or J.K Rowling.  These are people who create something unique and interesting and sell it. Authors, actors, people who invent something useful or unique. These people make money by creating something very unique and what people want.

The rich make money by selling intangibles. By selling intangibles you do not need a warehouse or minimal inventory. You do not need capital, just intellectual capital. Write a book, sell software, write music.  These are examples of selling intellectual goods or intangibles. Sell an idea.  Further, you need to own the idea. In a capitalist economy, the only way to make money is to be a capitalist.

In fact, you basically want to sell air. You could sell rocky mountain air compressed so when people open it in NYC they feel the fresh mountain air fill their room.  This is a metaphor of course but it is true.  You want to sell things at a high premium for real value that is intangible.  Intangible is not connected with surviving or something that has a natural value, but rather only a subjective value., and does not require your time to make money, that is being paid as a consultant. Therefore, you do not have to perform a service or give your time to make money once the product is created.

Then you leverage your intellectual capital to have other people sell it for you and give them the usually rah-rah spiel that you have herd in corporate America your whole life. You use your time to sit on top of things. When I was in management and now have my own entrepreneurship, I would just hire good people to do the work and I would just sit on top of things (something I did not like as I am more hands-on). Actually now I prefer to do the work myself, then hire specialists and experts for various reasons.

Therefore, to get rich create intangibles that are unique and sell them, rather than work in a job.  The unique part is very important as explained by the diamond-water paradox. That is value is determined subjectively rather than on pure utility. This is why people pay more for designer labels. Do not sell it as something cheap, the lowest common denominator (like an e-book), but sell it as something that is of value.

Ask yourself again.  Where are you spending your time?  Which one of those four categories are you spending your life in?  Getting rich, unless it is through a stroke of fortunate circumstance, comes from years of hard work.  What do you work hard at? Do you work for yourself or someone else?

Getting rich and having money is not important in life, your life is important

OK now I know why people get rich, what are you going to do with this information? People get rich because they work hard for many years to create something interesting or valuable. The question is how do you get the idea? It is easy. Ask yourself what you love to do and work from that.  You do not have to make 100 billion dollars, I just want people to get paid more. What did you like doing as a child before you learned about making a living? That is the question.  Now, what is your answer?

Be actively indifferent towards money and riches

See you have to be actively indifferent towards money. That means you should not care if you are rich or poor.  You should not worry if you are a person of honor or a person of disgrace.  You should not prefer fame and fortune to anonymity and poverty. You should be actively indifferent to the things on this world.  All these things are in God’s hands. You should focus on the real meaning of life. Take a lesson from St. Ignatius on active indifference.

What is more important, making money or your life?

If you really want to make money it really is easy, just do something that you love and create something unique in this world for others, than you will have a higher probability of being paid more.  The best is an intangible product created from your intellectual rather than financial capital.

I have given you some subtle but powerful information about how to make money. I have given you very valuable information on the real secret of how and why people get rich. Write your circumstances life and I will tell you my idea for you. Leave a comment and you will see. I am not selling anything. I simply enjoy economics and had the opportunity to of growing up to observe the rich. This is why I wrote about how the rich earn their money.

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Money

Inflation, Prices, Money Supply

Q: What is the connection between prices, inflation, and the money supply?

A: Most economic disequilibrium is caused by Federal Reserve open market operations or action.

Inflation and the money supply

The US government has created a category 5 storm regarding inflation and the economy. Get ready for 15% inflation or more.

Inflationary perfect storm

inflation

Why people are skeptical about inflation

Many people say there will be no inflation because the money supply was increased when demand for money was low, therefore, the only thing that has happened was financial and real estate assets stopped their downward spiral and banks shored up reserves.

The investment experts were wrong why will the money supply experts be right

Economists in charge are wrong because they do not understand economics. This is exactly why there will be inflation.  People who are in charge do not understand, really understand economics or do not want to understand. Despite their impressive degrees and positions, they have to lead us to doom.  I only have a Masters in Economics but I will explain why we are headed for the inflationary perfect storm.

The Austrian school of economic thought and inflation

Ludwig Von Mises wrote:

“A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes because it has reason to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy. Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed”

Role of the market and prices

The market’s role in the economy is to adjust prices based on value and risk. What happened was the market was not allowed to adjust, and people who took too much credit and too much risk for too many years got a nice golden parachute complement of the US central bankers.

This prevented the adjustment of their financial assets to the level in which the market would have valued them properly.  They were rewarded for their stupidity.

Why inflation is inevitable in the US

Financial assets did not adjust as they should have, and the market will start non-price rationing and other forms of non-price adjustments.  We will have a flat price level for a while.  The housing market will stabilize. This is the calm before the storm.

What will happen next has happened in every country where the government does not allow prices to move as they should, based on natural market forces.   This applies to every nation from the Soviet centrally controlled prices or the indexing in the 1970s in the USA or any country that expands its money supply. Non-price rationing cannot exist in the long term in a capitalistic economy.

Something has to happen to allow the relative value of these toxic assets falls in relation to other assets.  If prices of these assets do not fall, the prices of stable assets will rise.  This is economics 101, Austrian economics.

The relative mechanism of price adjustment will eventually kick in even if there is a lag, not with the downward adjustments of toxic financial assets, but with an increase in producer prices, wages and consumer prices.  This will be feed by inflationary expectations. Expectational inflation gets out of control. Inflation will create instability and eventually lead to stagflation.

With the massive increase in the M1 and M2, there is no way there will not be massive inflation in the United States, maybe not true hyperinflation but double-digit inflation worse than the 1970s.

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Money

Credit Union or Bank

Which is better a credit union or a bank?

The credit unions vs. banks’ controversy are easy to solve if you take a step back and look at the economic incentives. First, as yourself what is the purpose of a credit union and what is the purpose of a bank?

Profit motive

I have worked for banks for most of my life in different capacities.  This is what I saw.  I saw a profit motive that was not tied to customer experience.  At the retail level, there are many nice local banks. However, at the top, the profit motive is too strong not to find ways to nickel and dime and depositor and borrower.

The people who work there are usually do not care about in you anyway. Banks nickel and dime you with fees for their sales bonus. They try to sell you everything from insurance to stocks and mutual funds and put themselves out there as the one-stop solution to all your financial problems. However, this all comes at a price, that is fees.

Some banks have financial planners on hand, financial planners are nothing more than salesmen, who want to sell you products again with fees.

I have worked for banks, brokerage houses, insurance companies and they are all about making money off of you and do not have your best interest in mind.

In contrast,  Credit unions are not for profit. They are for the benefit of the members. Why would you choose an institution that is about making money off of you? You could argue economic incentives make banks better able to sever you, but that is not true anymore. Credit unions are tech-savvy and it comes down to the bottom-line not the marketing department.

A bank’s purpose is to serve the shareholders, make a profit and when it makes a profit from you give these proceeds to other people who may or may not have their personal money with the bank.

A credit union’s purpose is to serve the customer. It is a non-profit organization. Any profits it makes goes back to you. Their philosophy is to serve the members.

Summary: My personal experience has been banking and has screwed me over every step of the way.

People at a bank vs People at a credit union

People go to a bank to work because they are not in medicine helping people or teaching or creating something or farming. They are not entrepreneurs. To them, it is a job to collect a paycheck. I have had many negative experiences with bank customer service and management. Its mostly the people who work for these organizations lack the brains to do something with their lives and they wind up in banking. Really, people in banking are usually the bottom of the barrel in terms of creativity and brains.

In contrast, people in Credit Unions are often there for the benefit of the members. I have been a member for over 25 years and never had a bad experience.

Credit Unions are better for the economy

Richard Werner has done research into the banking system and its current flaws. He prefers small banks and credit unions for a stable monetary economy.

What do I use for my banking?

I only use a credit union. I lived in Europe for almost ten years and traveled the world, worked in high finance and yet, I powered my financial life with a humble credit union.

Credit Unions have Internet banking, e-commerce assistance, financial services, home, student and car loans and real financial coaching and they have FDIC insurance

I use an American Eagle Federal Credit Union. Every experience with them has been positive because the people that work there I think like their job and helping the members.  They are not greedy bankers who lack imagination so go into banking to get something from people, but rather at American Eagle Federal Credit Union people are there because they want to help their members.

You can make your credit union (and yes ) your one-stop solution without too much fear they are trying to milk you with fees.

No stress, no shopping around just clear solutions for your banking and life. With a credit union, you can just work at your day job and put your money in a credit union for your goals. When you have a lot of cash buy maybe some mutual funds they offer.  They have IRAs, insurance, trust planning.  Often these are third party companies, but I  credit unions screen companies with their member’s best interest in mind.

Maybe you can save a little if you really shop around, but I believe in keeping it simple.  If you keep your financial world simple and organized it frees you to do other things in life.

Credit unions are friendly.

The next step for you is to, look into finding a credit union, though your associations. I am Polish so I could find an American Polish credit union. I am a teacher so I could join one connected with teachers. Some people are veterans others have religions credit unions, but find one.  Here is a general link if you want to find more information: the Benefits of credit unions.

If you have questions you can ask me a person who has a lot of professional and personal experience with both.