Want to be Wealthy?

Stop Swapping Your Time for Money

Many of us were taught to do well in school, get a great job, work hard, and you’ll eventually make a lot of money. This may be true, but there is a great limitation to working for someone else. Time. There are only so many hours in a week. No one can buy or create more.

Even doctors suffer from this limitation. The average physician makes a large salary, but there aren’t many that make a million dollars a year. Even a physician is swapping his time for money. He only gets paid while he’s seeing patients. He can’t see more than one at a time and he can’t see them while he’s asleep. The clock ultimately limits his income.

This is also true for consultants, dentists, lawyers, and CEOs.

If you want the opportunity to make a tremendous amount of money, it’s important to find ways to earn without your presence being necessary. Free yourself from the clock and your ability to earn is unlimited.

There Are Better Ways Than Swapping Time For Money:

  1. Get paid more than once for the same work. Think about artists, authors, and musicians. In their respective businesses, they’re able to get paid repeatedly for the same work.
    • An author can write a book and then sell a million copies over the next 10 years. During that time, she may have written 20 more books. What could be better than getting paid multiple times for the same work?
    • What are some other businesses that can utilize this same strategy?
  2. Do something that allows you to receive recurring payments. Leasing office space or other real estate to others keeps money coming in while you do other things. Building a website and leasing it is a similar strategy.
  3. Be an investor. The great thing about stocks, bonds, mutual funds, and similar investments is the ability to make money with little work on your part. You’re essentially making money while you sleep. You could also loan money to others.
  4. Outsource / arbitrage. Many people set up businesses and then outsource all the work. This is especially true online. For example, there are people that sell website building services. These same people then hire someone else at a reduced rate to do all the work.
    • Ghostwriters write many of the e-books sold on sites like Amazon.com. The listed author paid someone else to write the book. If you can successfully buy something for $X and sell it for $X+Y, you can potentially make money with little work.
    • Can you think of ways to make money from the work of others?
  5. Create passive income. A website that sells an affiliate product can make money while you sleep and is a form of passive income. It’s not difficult to build a website that makes a mere $5/day, but keep in mind that’s over $1,800/yr.
    • Make a list of other ways you can make money passively.

Time is limitation for all of us. So far, no one has lived forever. But time doesn’t have to limit your income. Doctors, lawyers, and CEOs are paid well, but you have even great financial potential if you can break free from swapping your time for money.

Uncertainty stops many people. If you write a book or create a website, you’re not guaranteed to make any money at all. If you go to your job, you can expect to get paid on a regular basis. Courage and persistence are required.

Get started today and build an income stream that isn’t dependent on your time or presence. You’ll enjoy getting paid while you’re not at work!

The Ultimate Student Loan: How Much Can You Afford to Borrow?

It can be pretty exciting when that financial aid award letter arrives from the financial aid office of your chosen university. Even more exciting is when you realize that you can get enough financial aid that you won’t need a part-time job while attending school.


Determine how much money you’ll need to borrow to attend each college you’re considering. Include in your calculations the living expenses while you’re at school. This probably will be a different number for each university, as financial aid packages, tuition, and living expenses will vary greatly per educational institution.

Construct Simple Post-Graduate Budget: How Much Can You Afford To Borrow Now?

1. Contact your college and get salary figures for graduates with your intended major. What you’re interested in are the starting salary figures and the salaries for those with 5 years of experience.

• It’s important to have a good idea of what you can expect to earn, since your student loan payments will come from this income.

• Verify these figures to the best of your ability. Schools have been known to exaggerate to increase the number of applications.

• Consider where you want to live. It’s not critical to know the exact location, but you can probably figure out if you want to live in a large city, the suburbs, a small town, or out in the country.

2. Get living expense information for the type of area in which you’re likely to find yourself after graduation. That means finding figures for housing, utilities, groceries, entertainment, clothing, medical, insurance and anything else you’re likely to spend money on.

• Also consider other items that aren’t likely to vary from location to location. This would be items like your car payment and cell phone.

• Living expenses can vary dramatically from location to location. Do your research and get accurate numbers.

3. Create a budget from these figures. Take your expected salary into account and look at your expected expenses. How much money is left over? Remember to set aside money for savings each month.

4. Figure out how much you’ll need to borrow. Some simple math will quickly show you just how much you’ll need to borrow in student loans in order to attend a particular school.

5. Determine your monthly student loan payment. There are numerous student loan calculators online that will show you the loan payment for a given loan amount. Remember that there are many different payment options. You can play around with the numbers and consider all the possibilities.

6. Face the truth of the situation. Armed with this information, it’s time to be realistic. If you’re going to live in a large city and can expect to make $40,000 a year, then you simply can’t afford $100,000 worth of student loans.

• Look at the numbers and make a responsible decision. Hopefully, the numbers will work in your favor.

You might not be able to attend your dream university and still afford your student loan payments. You may need to get a part-time job during school or after graduation. Is your first choice school worth the extra time and work? Only you can decide.

On the other hand, a more affordable university is another option. Take the time to determine how much you can afford to borrow. You can save yourself a lot of challenges later on.

A little planning can make life after graduation easier and more enjoyable. Debt can be one of the most challenging burdens in life. Follow these tips to avoid taking on more debt than you can handle.

Tax Advantages of Owning A Small Business: Can You Deduct Your Child’s Allowance?

Simply making an honest effort to earn income from what is normally just your hobby can open up a lot of tax advantages, even if you keep a regular full-time job. If you don’t have a small business, you might consider the many financial benefits of starting one. There are many deductions available, if you are self-employed, that the average person without a business cannot take.

Consider These Tax Deductions and Tax Advantages of Owning A Small Business

1. Home office. Whatever percentage of your home is used for business can be used in deductions from your income. For example, if your rent is $1,000 / month, and you use 30% of your square footage for business, you can deduct $3,600 from your income (12 x $300).

  • The catch is that the space must be used exclusively for business. So, if your parents sleep in your office on Christmas Eve, you lose out on the entire deduction. The IRS is a real stickler on the home office deduction.
  • Your computer can be deducted as well, also based on percentage. If you use your computer 50% of the time for business, you can deduct 50% of the cost.
  • You can also deduct the same percentage of your utilities. That includes, heat, electricity, Internet, and more.
  • Even a portion of repairs to your house can be taken as a deduction in the same percent. It must be a repair that affects the whole house, like a new roof, air conditioning system, or flooring.
  •  Of course, any money you spend on renovating your home office is also deductible from your income.
  • You can even deduct your child’s allowance by paying them to do age-appropriate tasks around the office like sweeping, dusting, and filing.

2. Travel expenses. You can deduct your business-related travel expenses, like hotel and air-fare. You can also deduct 50% of the cost of your meals on your business trips or even business meals in your home town.

  • It’s vital to keep a journal so you can prove that your travel was business related.
  • You could even have a working vacation and take the family along. You won’t be able to deduct their travel or food costs, but you can still deduct the cost of your hotel room. Of course, if your family members work for you, it’s a moot point!
  • If you are also vacationing, be sure that you’re spending at least part of the time meeting with clients, going to training, or on other business-related tasks. If you only spend 2 hours out of a week on business, you’re asking for trouble. Be reasonable.

3. Automobile. If your vehicle is used exclusively for business purposes, you can typically deduct all your vehicle expenses. In most cases, your vehicle will be used for both business and personal use, so keep a log of your mileage, designating each trip as personal or business.

  • In general, all travel between business locations is deductible. So, travel from your home office to the office supply store would be deductible. Travel from one client location to another would be tax deductible.
  • However, the miles you drive to your office from your home are not tax deductible, if your office is located away from your home.
  • These deductions can be used by mileage or business use percentage. If you use your car for business purposes 30% of the time, by mileage, you can deduct 30% of your vehicle expenses. Or, you can multiply your business miles by that year’s designated amount from the IRS.
  • Use whichever method provides the greatest deduction. Typically, less expensive cars would use the mileage method. For more expensive cars, the percentage method provides a larger deduction. Try it both ways.

A small business on the side can bring many useful deductions. We have mentioned only a few  in this article. With just a little planning, a significant portion of your rent or mortgage, utilities, automobile, and travel expenses can be deducted. These tax advantages can easily save you thousands of dollars every year.

Turning your hobby into a small business not only gives you some tax advantages, it can also allow you to make some money from your hobby.

Guide to Budgeting

What is a Budget? Why Should We Have One?

One of the most critical ingredients to any successful financial plan is a budget. To achieve our short term and long term financial goals, we must have a good understanding and control of our sources of income as well as our expenses and personal spending habits.

Budget: an estimate of income and a plan for domestic expenditure of an individual or a family, often over a short period, such as a month or a week (World English Dictionary). Simply put, a budget is A plan for spending and saving money based on one’s personal goals during a given time period related to income and expenses.

Maintaining a budget allows individuals to track their spending. By doing so, individuals (or families) can reduce their expenses to avoid going over budget. Therefore, maintaining a budget also allows individuals to identify places where he/she can cut expenses in order to reach short-term and long-term goals.

Ask Yourself These Questions about Your Budget Planning:

  •  Do you really know where the money from your paycheck goes?
  •  Have you ever wondered what happened to your money when you come up short in paying some bills?


Are you living Paycheck to Paycheck or know someone who is ???  Then check out our Report about stopping that cycle of Living Paycheck to Paycheck,  once and for all times.

Credit Cards For No Credit

Mary asks…

You are considering applying for one of two credit cards. Credit card “A” has an annual fee of $?

You are considering applying for one of two credit cards. Credit card “A” has an annual fee of $30 and charges interest of 10 percent. Credit card “B” has no annual fee, but charges an interest rate of 15 percent. If you carry an average balance of $500 on your credit card, the lowest total annual expenses you could have with Credit Card “A” would be:

Dr. James Hans answers:

Assuming it is only compounded monthly (for the sake of easier computation)…then your total charges for Card ‘A’ would be $82.37 (52.37 in interest and 30 in annual fee). Cards with no annual fee are usually better because after you balance is paid off then you don’t have to keep paying them money.  Card ‘B’ would cost you $80.38 (again using just monthly compounding).  Maybe you can find a card that offers 0% interest for 6 months or a year. The fee takes away all of the benefit of the lower interest rate and may end up costing you a little more, as in the case cited.

Ruth asks…

Is there any credit cards you can get with no credit?

My Credit is really bad from long ago. I am trying to pay it off an reestablish credit. Any credit cards i could apply for? Thanks!

Dr. James Hans answers:

Bad credit is still better than no credit. There are many special offers for people with bad credit history. Of course, credit cards for bad credit history have fewer benefits and more limitations than credit cards for good credit.
You can apply for a secured credit card. It requires a deposit with the issuing bank. This amount, to secure a credit card, is usually only in the hundreds of dollars. It is held as collateral while the bank issues credit of some percentage of the deposited amount. quite often 100%.  In many cases, the card is reported to the credit bureaus as a normal (i.e. Unsecured ) card. This allows the cardholder to establish a positive credit history over the duration. After a good payment history over an extended duration, some banks will then issue the customer an unsecured VISA or MasterCard.
You can find several guaranteed approval (pre-approved) credit cards for bad credit. However, your application for this kind of cards is also analyzed by banks and in some situation the approval might be denied. Consider all the requirements carefully because rejections hurt your credit score.
And, of course, start working on rebuilding your credit history.
Good luck!

Richard asks…

credit cards?

I want to get a credit card. My credit isn’t established because I just turned 18 not that long ago. Nobody will give me a credit card because of it. I even went to one that said its for people with no credit and it still told me I didn’t have enough credit experience. I don’t get it. Do you have any suggestions, Dr. Hans?

Dr. James Hans answers:

If you simply want a “visa” type card for making purchases, then get a Visa debit card with your checking account. If you want a credit card to establish your credit history, then the simplest manner is with a Secured credit card. These can be found online with various banks. Your own bank may offer them.  These are the easiest to get and use. To be completely honest, if you cannot afford to make a small deposit to acquire a secured credit card and build your credit, then you really do not Need a Credit Card. Because, in order to be able to build a good credit history, you will have to be able to Pay for the things you purchase with the card.