This is where the rubber meets the road. Traction is something we all lack when we are doing our research and ultimate field tests in the quest for our first million. More traction would be great whatever step in the ladder you are at.

We generally focus on helping fledgling millionaires in our work because it is the most rewarding and gives us the greatest bang for our buck. To see an individual go from clueless to savvy in a fortnight is a gratifying experience. When its our resources that helped that transformation, then its very satisfying indeed. So thats the area we focus on here. This is for people who need direction but have small resource capital to manufacture acceptable results.

So lets give you a little traction before you sieze your jets.

The following 5 strategies will give you the moves to take you to the first level.
-A guy with a proven idea that can be replicated-

(An enviable position to be in)

1) Lets get this straight. Million dollar bank balances are numerical in nature. By that I mean a million bucks is not made up of 1 large million dollar bill. Its made up of exactly one million single’s. Or to go to the lowest common denominator, its actually numerically made up of One thousand, million (or 1 billion) cents.

Make money fast and easy by thinking of money as numerical and therefore exponential. A dollar that you hold in your hand is the same as $1 million dollars. No difference at all. Its a seed that grows into a tree, then that tree spurrs more seeds.
(I apolgize for the metaphor, but how else can we put this so you understand the nature of the reality as it is)

2) When you approach your 1 million dollar goal, you are biting off much much more then you can chew thinking about that million.

To make money fast and easy always think small. Refine, refine, refine. Then duplicate, duplicate, duplicate.
Are you with me? Is this making sense? Make a simple little mouse trap, then make lots of mouse traps exactly the same way.

3) Find demand and supply into that demand.

To make money fast and easy, even before you think about “what” you will do, you are going to research demand. You will become an expert at sniffing out needs. This skill is a millionaires bow and arrow. Let me tell you, most millionaires couldn’t hit the side of a barn much less the bulls eye. But they DO know this. So their aim is not important. What is important is that the target is nice and gigantic. How can they miss?

Trust me, its what millionaires do, its how millionaires think. Always supply into Fat juicy demand where the pickin is easy. Do you want medals of bravery or a million bucks asap?

4) Have a structure you never deviate from.

They always failed to plan when they planned to fail. Once your research is done never deviate from it. Give it a good run but if it doesnt work out for you then move on without shedding a single tear. Chance and “chaos theory” are fascinating things. Probability is what millionaires deal with. They never delude themselves into believing in absolutes.

To make money fast and easy, you will not work backwards or second guess yourself. Plant yourself firmly in the middle of the road on the high side and go forward. Don’t make it up as you go. Stick to what your demand planning told you to do. Many give up after 1 failure, but probability is a funny thing. We think we can control it, but even when all your ducks are lined up in a row, it may not work. But give it a chance and let it prove itself and you may find over a number of attempts you will get the results you expected.

5) Diversify AND Go deep.

They call out diversify when it comes to investing. Fair enough. Things change and relying on just one source for your income stream is dangerous. And it is. But there are two sides to every coin.

The pareto principle states that reality and probability are stacked unevenly. We as rational human beings think of everything as equal and even. However scientific evidence and business experience tells a different story. The pareto principle is also known as the 80/20 rule. It states that 80% of your results comes from 20% of your activities. Is this significant if true? You bet. It means that of every effort you make, of all the many things you do to manufacture your results, only 20% actually is responsible for a large proportion (in fact 80%) of them.

So what does this mean in English? It means you can easily quadruple your results by finding out what that special 20% activity is and stop doing everything else. By focusing on just that 20% activity you will not only increase results, but you will create a new pareto principle refined of the old one at a higher level. In this way you move forward and evolve your activities to higher and higher levels.

To your health and rapid success.

Jack Reynolds was a broke Insurance salesman only 2 years ago, today he owns assets valued at several million dollars. What did he do in 24 short months? You can read about Jack’s remarkable and rapid transformation and download Hayden’s famous book “The Million Dollar Mentor” by

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Now that the fundamentals are over I want to tell you a few things that will make you or anyone some money. A company worth investing in must have earnings. The company must earn a profit every quarter to be worth a quarter. If the company is losing money it is a highly speculative stock. A trader who buys a company with many quarters of losses is hoping the stock will get stronger and one day show a profit. I listen to Warren Buffet on this one. He said “Rule #1. Don’t lose money. Rule #2. Don’t forget Rule #1.” A speculative play on this type of stock is begging for trouble.

I recommend five or more quarters of profits exceeding 20% each quarter. This is a very good growth company with management that knows what they are doing. I like a business that has increased profits by the same 20% for five or more quarters as well. The same goes for sales, five or more quarters of 20% growth. When all of these factors are in place the risk factor is minimal so I have less chance of breaking Mr. Buffets’ rules. I also look for companies with little to no debt. There is a much smaller chance of this company going bankrupt which will do awful things to a stocks share price.

I like to buy stocks that are small or as they are called, small caps. These companies don’t have too many outstanding shares and when a solid company is being bought, demand increases for the stock and the share price increases more dramatically than if the company had 10 to 20 times the shares outstanding. I like to look for companies that have a new product that is a big hit with consumers. The ipod is just one example, one new product and the price of Apple shares increased from a low in the teens to over 80. New management in a stagnant company is also worth watching. Steve Jobs was a huge factor when he returned to Apple full time. Try to watch for insider trading as well. Most of the insiders will sell en masse when something fishy is going on. If there is a mix of buying and selling among insiders it should be considered normal. Heavy, consistent buying or selling tells you to watch out for disaster or a bargain.

Some traders try to beat the market trend. The market trend is the general direction of the market. If the market is showing an upslope on a chart over a period of time of anywhere from three weeks to years, it is in an uptrend. And visa versa. Don’t try to fight the trend. The trend is your friend. Follow the trend and you will have much more success than fighting it. It is like swimming against the current, it can be done but not very easily.

With three startup businesses before he was 21 years old, Matt Fox has the experience to help you create your own businesses for your financial future. He is a wealth creation specialist. See his blog at http://www.bizmaker.blogspot.com for the other parts of this series

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Ask people what they want most out of life, and more often than not they will tell you that they want to be rich, wealthy or financially free. Some of them will tell you that they want to live in a large house or mansion with a huge backyard swimming pool, gold-plated sinks, a butler and/or a maid, etc., but usually these are just fantasies they have about what wealth is. Certainly there are some very wealthy people who live this type of luxurious lifestyle, but as Thomas J. Stanley documented in his now famous book, The Millionaire Next Door, most people who have obtained great wealth and money tend to live more modestly than the media would have us believe. In fact, may wealthy people and millionaires tend to drive dependable and luxurious but not necessarily flashy cars, live in well-designed but not overly huge houses, and they don’t buy the most expensive clothes from the hottest designers du jour every weekend. In fact, if you ask these people why they wanted to become wealthy in the first place, nearly all of them will tell you that they wanted to become wealthy to have more freedom to choose the things they want to do in life.

What is your goal for financial freedom? Do you want to live a lavish luxurious lifestyle as portrayed on Entertainment Tonight, Access Hollywood, E! or VH1? Do you want to have a lot of money to travel the world? Or do you just want enough money so that if you suddenly quit your job, you could sustain your current lifestyle? All of these goals are possible, yet some of these will take more wealth building than others.

Financial freedom is the ability to have enough wealth so that you can quit your job and never be forced to work again to sustain your lifestyle. Now this will vary for many people. If your lifestyle consists of having a big house with two luxury cars, being able to take multiple vacations every year, and buying lots of expensive clothes, jewelery, and gadgets, then your income is probably very high or you have leveraged yourself to the hilt in debt. However, if your lifestyle is more modest, and you live in a condo or small house, and you keep your expenses low, then you probably can get by on even a mid five-figure income. But how do you determine what you need to get financial freedom?

R. Buckminster Fuller once commented that your wealth is determined by the amount of money you had saved divided by the amount of time you could sustain your current lifestyle if you had suddenly lost or quit your job. For example, if you had saved $10,000 and could live on that for five months, then you were five months wealthy. If you had saved $40,000 and could live on $2,000 a month, then you were 20 months wealthy. However, what if you could use those savings to build an income that you make you infinitely wealthy? This can be done by having passive income. Passive income is money that you receive that you do not have to work for through employment. In other words, you make money even when you sleep. Most often, passive income is made through your own business, real estate, or investments such as stocks or bonds.

Creating your own business

Many people have become wealthy by creating their own business. Usually they started out doing some hobby that they loved like baking or arts and crafts and people would pay money for their products or services. You can do this as well. The easiest way to start would be by selling your old unwanted products on Ebay. Many people started their home-based businesses by selling their old junk on Ebay, only to find that it was very lucrative for them. Then they would pick up old items from yard sales, the Salvation Army thrift stores and Goodwill, and resell those items for profit. If you are internet savvy, you can sell other people’s products through affiliate programs. Affiliate programs allow you to sell products from other people’s websites and make a commission on each sale if a person buys an item through your website or blog. Some places to start looking for affiliate programs are Clickbank, Linkshare, and Commission Junction.

Make money through real estate

Real estate is one of the most common forms of wealth building for the average person. In the past few years, real estate has become a wildly popular way to make a lot of money, yet it appears that we may be on the verge of a housing bubble which is about to burst. Most of this housing bubble can be attributed to the process of flipping properties, where some person buys a home or condo with a huge mortgage and hopes to resell the property at a later date through price appreciation. Much of this was encouraged through late night television informercials. While these strategies do work and can make you a lot of money in a short period of time, they have their drawbacks. First of all, it’s not necessarily a steady stream of passive income, and second, you can find yourself without any buyers if the market peaks too soon.

Of course, the old-fashioned way of making money through real estate is buying rental properties. You buy a two or three flat or small apartment complex building and rent out the remaining space to tenants. If you structure your mortgage and rents well, you will cover the cost of the monthly mortgage, taxes and insurance through your tenants’ rent payments plus have extra money left over to spend. It’s not uncommon in some areas to make a sizable rental income on a modestly-priced apartment building, and some people simply make a living just by providing housing to others.

Making a passive income through stocks and bonds

Now this is an easier way to make passive income than real estate, but it takes more money to do this, plus you have to know your stocks and bonds well enough to stick through your investment. Passive income in this case is generated through dividends. In other words, when you buy shares of stock, treasury bills or bonds, the company issuing the shares of stock (or the U.S. Treasury Department, in the case of bonds) will pay you a cash dividend for investing with them. Now usually, this only consists of a few cents per share or a small interest rate, but if you buy enough shares or bonds, this can generate a huge income for you. In some cases, it will pay you a huge interest percentage, or yield as it is often called, and this yield will often pay much more than bank deposits. Plus you still own the underlying shares of stock which you can sell for appreciation, or in the case of bonds, hold until maturity. For instance, you buy $400,000 worth of stocks which pay an annual dividend equivalent to 12 percent. You would receive $48,000 in dividend payments from this stock. Lets say that you hold on to this stock for five years, and its value appreciates to $650,000, at which point you decide to sell your shares. Not only would you have received $48,000 for each of the last five years, but you would have realized a capital gain of $250,000 from selling your shares (before commissions and taxes).

Of course, this only skims the surface on how to obtain financial freedom. If you tend to live more modestly, you can probably obtain financial freedom more quickly by buying income-producing real estate or starting your own business. If you want to live more luxuriously, you may have to create a complete wealth building plan. One of the best sources I’ve seen that deals with wealth building strategies is Safe Strategies for Financial Freedom, by Van Tharp. Of course, you can learn more wealth building strategies by going to Pat’s Planet.net or Wealth Creation Tips at http://tipsonwealthcreation.blogspot.com.

This article was written by Patrick Huey, who wants you to make money and become financially free. Learn more of the great wealth building tips by going to http://tipsonwealthbuilding.blogspot.com or by going to Pat’s Planet.net at http://pats-planet.net

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