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March 03, 2010
Make Money on Your Money
Contributed by LeAnne Ozaine-Smith – The Money Guru and my parter at ProsperityForBigThinkers.com.
If you sat with your Investment Advisor and said, “I want an investment that gives me a 10% growth every year for the next 15 years,” they’re gonna tell you to adjust your expectations.
As an financial advisor, I’m all for the “where do I put my money” conversation. But here’s the deal, you can chase the perfect investment and still lose (vague memories of real estate bottom out, stock market in 2008, etc.). There are rarely guarantees in investing and there is always risk of loss. If you’re looking for an unlimited growth opportunity, and you’re looking for an undervalued investment that can grow like a dandelion in June then here it is: it’s your business. Your business is the best, most undervalued investment you can find—which means that you can be looking for double digit ROI.
Want 10% ROI this year, next year, and every year? It starts with you understanding how to make money on your money.
- Look for ways to reduce spending in your business by 5%. That means if you have a $50,000/year overhead, all you have to do is spend $200 less per month If you have a $12,000/year overhead that’s just $50 less per month… you can do it! By spending less, you’re keeping more of what you’re making. Which means your bottom line grows by 5% with a painless tweak.
- Get Booked Solid and make a minimum of 5% more. If your total business income was $100,000 last year take on one more client or do one more project to bring in just $400 more a month. Or if your total business income was $25k, a little bump in income of $104/mo will grow your bottom line by 5%.
Remember, always be more concerned about the result you’re getting from what you spend to be in business, than you are your overhead. If you’re careful and purposeful with your business income, seeing 10% ROI is both realistic and attainable.
For more on how to earn more and spend less, check out ProsperityForBigThinkers.com and download, the Special Report: 5 Down and Dirty Ways To Overcome The Break-Even Trap.
100% agreed. RT @michaelport: Make Money on Your Money http://bit.ly/cJ4qpc
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