If You Want To BE Rich, You Have To THINK Rich

It's Sunday afternoon. Many of us are preparing to go back to work tomorrow. If you are looking forward to it...if you are heading into the office tomorrow because you want to...

Congratulations! You are in control of your life, your money, your dream.

But if you are already dreading tomorrow, feeling depressed and irritable because you have no choice but to go to work tomorrow, then your need for money controls the rest of your life. And that is NO FUN!

But don't feel bad. You are in good(?) company. Most of the people in the world are controlled by the need to make a living. 

Unfortunately, that need is also what causes most people to remain tied to a job they hate for their entire working life. I mean, let's be real. It takes money to make money, right? And besides, after working all day and then taking care of family...who has time to do anything to make more money? We didn't go to college. We don't have fancy degrees. How are we supposed to earn enough to get rich?

Time to change that thinking! As long as you are content to trade time for money, you will never be rich. Even folks with advanced degrees often trade time for money. Sure they can charge more for that time. And they may make enough that you consider them rich. But I'm talking about being OBNOXIOUSLY rich! And if you don't think that's possible for you, you're wrong. But what's even more important...if you can change your thinking, you can create the type of income most really rich people do. Instead of trading time for money, they trade ideas for money. They solve problems. They help others. Trust me. The world will beat a path to your door, credit cards in hand, if you can solve their problems. 

I'm now hearing the chorus of despair. "But I don't know anything. How can I solve other people's problems?" 

You don't have to recreate the wheel. The world is full of product and services that solve people's problems. Do you know people who are struggling to lose weight? There are products for that. Do you know folks who are unhappy with how they look? There are a myriad of cosmetics and skin care products that will help. I don't care what someone is struggling with, there are probably products out there to address it.

How does that help you? Two of my main income streams are network marketing and affiliate marketing. When you are a network marketer, you make a small investment to join a company as a representative for their products. In exchange for that investment, these companies usually provide you with training, marketing tools, and a commission for every product you sell. You can also recruit other reps and get paid on a portion of their sales. Yes, it does take an investment. But if you join a legit company and a good team, the support and training you receive will make the investment worthwhile.

In affiliate marketing, you also promote others' products for a commission. There is generally no investment required to become an affiliate for a particular product. But there is also very little support. Companies may give you some marketing blurbs or banners ads and such. But usually there is no training. There aren't any teams to support you. You are strictly on your own. 

Can you get rich with network marketing and affiliate marketing. I'll be honest. Some do. Most don't. But what they can do that's priceless is this. They are often the first step to changing that time for money mindset. And as you learn marketing skills and how to network, as you meet people and build relationships, they are often the bridge to starting a business that is truly yours. If you had told me when I started over 40 years ago that one day I would be a best-selling author with multiple income streams, I would have said you were crazy. But here I am. All because of what I learned and who I met in the network marketing and affiliate marketing industries. 

The biggest determining factor isn't what vehicle you use...network marketing, affiliate marketing or something else. The thing that will make all the difference is your mindset. If you truly believe in your heart that the only way to make money is to trade your time for money, you are limited. There are only so many hours available to you in a day. But if you grasp the concept of trading IDEAS for money, you can work a couple of hours a day and make literally thousands of dollars, once you learn the skills. 

If you want to become wealthier, whatever that means for you, begin by working on changing your mindset. Sometimes that means you have to work on your self-image. If you read my post What My Parents Taught Me About Money, then you know I was raised to believe that people like me can't get rich. It took me many years to get past that limiting belief. 

If your self-image is good, but you feel you lack skills, then the answer to that is to learn! Join my email list and I'll teach you everything you need to know.

Time for you to take action. If you need some mindset work, then do it! Change what you read. Change what you listen to. Change who you run with. Surround yourself with people who do what you want to do. Read what they read. Read what they write. Listen to their podcasts. You may find yourself leaving your old circle behind. But sometimes you have to let go of the past to move into the future.

If you are ready to learn how to trade ideas for money, you already  know what to do. Hop on my list. I promise I'll be here for you. I love my list. I'll take good care of you.

5 Steps To Maximize Your Credit Score

After digging myself out of a mountain of credit card debt, I am a believer in locking those credit cards away. However, there are times when the thoughtful, correct use of credit cards is actually a good financial decision. (See my post Cashing In On Cash Back Credit Cards for example).

Even if you're not using your credit cards, your credit score can still impact your daily life. Employers may look at it when making a hiring determination. Insurance companies may check it. If you're trying to rent a home or apartment, your credit score will be taken into consideration. And of course, you can't buy a home or a car without decent credit. That's why it's so important to maximize your credit score...even if you are trying to limit your debt.

If you already have a stellar credit score, good for you! Keep it up. But if you're like so many people, especially right now, your credit score could use a little work. The good news...it's possible to improve your credit score. And it's not really even that difficult. 

First, it's important for you to learn how your credit score is calculated. I am not going to go into that here. You can Google it. And I am not going to give you a detailed plan to  improve your credit score. Everyone has a different situation.  However, the general steps I am going to share are what helped me rebuild my credit score. They should work for almost anyone. Once you have these completed, you can do more in-depth research on ideas that fit your unique situation. Here are my 5 steps to maximize your credit score:

1. Build your credit file. No credit is almost as harmful as bad credit. It's important that you actually have accounts IN YOUR NAME that report to all 3 major credit bureaus. 

There are several ways to do this, even with a low credit score. There are credit cards specifically offered to those with bad credit to help raise your score. The interest rates are high and there is usually a hefty annual fee. However, since your track record may indicate you won't pay your bill, you can hardly blame these companies for making money where they can. But if you use your new card responsibly, they can be an effective way to start rebuilding your credit.

There are also secured cards. You put money into an account. The amount in your account will be your credit limit. The plus side of this is you usually get a bit better terms than the 'credit builder" cards because the money is already in an account, ready to pay your bill if need be. The bad side is you can only spend up to the limit of what is in your account. But again, a secured card can be a great way to build or rebuild your credit.

A third option is to have someone add you as an authorized user on one of their credit cards. Just make sure they are paying their bill on time. And make sure you pay them your share just as you would any other bill.

2. Make your payments. The fastest way to trash your credit is to make late payments or to miss them altogether. Your payment history is one of the things credit bureaus consider when determining your score. The more on-time payments you have, the better you look. Make sure your never miss a payment by more than 29 days. If you are 30 days late, that can be reported to the credit bureaus as a late payment and hurt your score. Get in the habit of paying all your bills - even the ones that don't necessarily report to the credit bureaus - in full and on time.

3. Pay your past due accounts. If you have some accounts that are behind in their payments, now is the time to get them caught up. Otherwise, you will just continue to add late payments to your credit report. And eventually, these companies will try to get their money. Having accounts in collections will definitely put a ding in your credit score. If you are having trouble with your debt, consider talking to a credit counseling agency. They are often able to negotiate with companies to get you lower payments and interest rates. 

4. Pay down your balances. Even if you're not behind on your bills, you still want to pay these down. The credit bureaus look at something called your Credit Utilization Rate when determining your score. (Check out the great article on nerdwallet).  If you are using a large amount of your available credit and only making minimum payments, that can signal trouble to the bureaus. Paying down these balances can definitely help improve your scores.

5. Be careful how you apply for new accounts. Yes, you may need to open a new account for a variety of reasons. But often, an application for credit can cause a hard inquiry on your credit report. When the credit bureaus is calculating your credit score, a large number of hard inquiries all at once could indicate you are in financial trouble and seeking credit to help....credit that you may not be able to pay back. Don't apply for too many accounts at once and always ask if your application is going to result in a hard inquiry. Often it is possible for lenders to pre-qualify you for credit by doing a "soft: inquiry, which will not impact your credit score in any way.

Stop Hoarding Cash!

I know....

With all the craziness in the world right now, the tendency to start hoarding is difficult to overcome. Especially since, even now, it is still not unusual to see empty shelves at the grocery story.

But remember, the purpose of prepping is to have enought, not to hoard and deprive others of necessary supplies.

Unfortunately, that tendency to hoard also pertains to cash. I have had several people ask me lately if they should withdraw most, if not all, of their money from the bank. 

My answer? Absolutely not!

First, this is not the type of situation where ATMs or electronic payment systems are down. You can still go to the bank and get cash if you need it. You can still pay your bills online and use your debit card to buy your groceries. If you have enough cash on hand to get you through a short disruption, you are good.

Second, your money is safer in the bank than it is in your home, It's insured. If you bring it home and you are robbed, or your home is destroyed in a fire or other natural disaster, you just basically lost all your money. Insurance may cover some of that loss, but probably not all of it.

Third, if your money is sitting at home in a shoe box, it is not working for you. It's not earning interest. It's not growing and building wealth. Until you need it to pay for something, it's just sitting there. Doing nothing.

"But what if the unthinkable happens and the banks collapse? How will I get my money?"

I suspect if it things were getting that bad, there would be enough warning signs for you to go withdraw whatever you think you needed. But let's be realistic. If the economy totally collapses, the odds of your cash being useful for anything other than kindling are pretty slim. So instead of hoarding cash, I would start stockpiling things that could be bartered in trade. 

Check out my article Bartering: Get What You Need Without Cash to get started.

And stop hoarding cash!

If Your Finances Aren't in the Best Shape, It's Time to Own It

I admit it. When it came to my finances, I turned a blind eye to my issues for a very long time. I knew counting how long it took a check to clear so I knew when I could pay my bills was risky. That charging everyday items on my credit cards because I didn't have enough cash on hand pay for them wasn't smart. That paying bills a day or two late so I wouldn't get hit with a ding to my credit score while waiting for my next paycheck was a clear sign of trouble. Sometimes I would miscalculate and then my husband would ask why the cable or the phones were shut off. I would try to make up some excuse, but we would still have a huge fight over my money "management." But I kept the blinders on and ignored the warning signs. I was trying to just hang on for the short-term until I figured out a way to fix everything...without sacrificing anything on my part.

But then the day came when I just couldn't juggle things anymore and I knew it was time to tackle my money problems head-on or I was going to wind up in serious financial trouble.

If you are on the brink of financial problems, you are almost certainly experiencing warning signs as well. You're paying bills late. You're fighting with your spouse over money. You pray there aren't any emergencies because you don't have the money to cover them. And you may also be ignoring the signs, hoping to hang on until something miraculously changes to save the day. Well, I'm here to tell you that this is one time you shouldn't wait for the miracle. If you are headed for a financial mess, it's time to pull your head out of the sand, take off the blinders, and own your problem.

I get it. It's embarrassing to admit you've let your finances get out of control. Maybe it wasn't entirely your fault. You lost your job or had an unexpected big expense. Maybe you have other issues like low self-esteem or depression and shopping makes you feel better. Maybe you feel like you have to spend money on your friends and family to earn their love. Whatever the reasons, it doesn't matter. It will be a lot more embarrassing if you wind up in court for debt, or have your wages garnished, or have to file bankruptcy. Now is the time to admit your finances are out of control and fix it!

I know how easy it is to get into money difficulties. It happens so slowly. Lunch with friends...your treat. Charge it. A little weekend getaway with your spouse on the credit card. You'll pay it off when the bill comes it. But then the car needs repairs and your child gets sick. But that's okay. You'll get it paid off next month. But then there's a great sale on shoes and you really love them and you've been working hard so you deserve them. And the dog needs a trip to the vet and suddenly you're making minimum payments and then the interest starts to pile up and suddenly....you're under a pile of debt and you don't even know how you got there.

If you were experiencing symptoms of illness, you wouldn't ignore them. You would make an appointment with your doctor to treat the problem before it became serious. If you are experiencing signs of financial illness, you shouldn't ignore them either. It's time to slow down, take a realistic look at your financial situation, and get whatever help you need. Before your financial illness becomes serious. 

If you're not sure how to start, I suggest you start here:

Thoughts on Things Financial: Your Guide To A Chaotic Money World Paperback

Best $4 you'll spend all day. 

Peer-to-Peer Car Sharing...Money In The Bank Or An Accident Waiting To Happen?

I just learned of something new! A friend of mine who has been needing some extra income has joined the ranks of the sharing economy. No, she is not renting out her house on Airbnb. She is not driving for Uber. She has joined a peer-to-peer car rental company.

I wasn't sure what that was, so of course I did a little research. And what I discovered has me concerned that even though she seems to be making some pretty decent money, the risk don't outweigh the benefits.

What exactly is peer-to-peer car sharing? It's pretty simple. When she isn't using her card, she rents it out to strangers. There are several sites you can use for this. She has listed her car on Turo. But I found a few other sites as well such as Getaround and HyreCar, She lists her car on the site, much like you might list your house on Airbnb with pictures and all the details. She gets to set her own price. Once someone rents her car, she simply meets them, gives them her keys, and then picks up her car at the end of the rental period. Sounds like an easy way to make a few bucks, right?

Right now my friend says she is making around $500 a month renting out her car. I have not asked for proof of that claim. But Getaround says that owners can make as much as $10,000 a year by renting out their cars. Not bad for little to no work!

The companies say that they screen every renter and they can't sign up if they've had a major accident. And they do have insurance to cover their car owners. And this may be fine for someone who is renting out their Kia (nothing against Kia. Just a comment on their affordability). But I'd be a little hesitant to rent out my top-of-the line brand new Jeep Gladiator. If someone totaled my vehicle, I'm not sure some third-party insurance company would pay me it's true value. Unless my own insurance policy covers the driver in this case...which it doesn't. I asked. I could be stuck with some very expensive problems. 

So far, my friend has been lucky. No damage to her car. She says she talked to other renters who told her to make sure she got to know the people renting her car before she gave it to them. I'm not sure how that would be possible. But she is a pretty good judge of character, so maybe. And she says she always inspects the car with the renters before and after each trip, noting any damage. Much like a regular car rental company does. Plus she always asks the renters where they are going...just in case. 

So what do you think? Would you rent your car to a total stranger? It seems to be working well for my friend. But as much as I like easy ways to earn some extra income, I think I'll sit this one out.

Do you have any experience with peer-to-peer car sharing? Let us know in the comments. 

Cashing In On Cash Back Credit Cards

I know, I know...

I told you credit card debt was bad. And it is. You don't want it if you can help it. And if you have it, you want to get rid of it as quickly as possible.

But...

What if you could use your credit card to make a little extra money each month and not rack up credit card debt? How cool would that be?

It is possible. But it takes the right kind of card, the right kind of purchases, and the will-power to not go deeper into debt.

First the card.

You'll need a credit card that pays you cash back on purchases. These are credit cards that pay you back cash - real dollars and cents - for making purchases with their card. Typically, you will earn between 1% to 6% of each transaction, depending on the card you use. Some cards pay a flat rate on every purchase. Others pay more for certain types of transactions (gas for example) and less for everything else.

Next the purchases.

You will need to know what types of transactions earn cash back. While many do give cash back on everything, others are more selective. The most common are groceries and gas. But I have seen cards give cash back on everything from transit costs to streaming. Others will give a low flat rate on any purchase and bonus rewards on other purchases such as restaurants. There are even cards that change the categories for cash back purchases periodically. So in January you might get cash rewards on gas and groceries and in April it's travel and dinner.

Now comes the will-power part.

Once you have your cash back credit card and you know which purchases qualify for cash rewards, you use the card to make those purchases. If it pays cash back on everything, you use it for everything. If it's groceries, you use it everything time you go to the grocery store. Then, and this is where the will-power comes in and it's important, you pay the entire credit card balance. Every month. Without fail. It doesn't do any good to earn 1% cash back if you're paying 18% interest on your balance. You absolutely MUST pay off the entire balance each and every month.

If you pay off the balance every month, you can collect the cash rewards without paying any interest on your purchases. And that adds up to money in the bank. Use that extra cash to add to your emergency savings. Or place it in your regular savings if you already have your rainy-day stash fully funded.

Passive Real Estate Investing...Is That A Thing?

If you're like me, you've had a rental property before...and quickly sold it, swearing "never again!"  

But what if you could invest in commercial and residential real estate without having to any of the actual work involved in managing your property? Sounds too good to be true, doesn't it?

Surprise! This is actually a viable way to earn some extra income. In fact, it can be one of the most powerful ways to put your money to work.

There are a TON of companies that give you the ability to invest in commercial and residential real estate projects without having actually to do any of the heavy lifting yourself. It's called passive real estate investing, and it's a real thing. And at the end of this post, I will give you the two companies I found that appear to be among the best. 

But first, what is passive real estate investing?

Put simply, passive real estate investing is investing in real estate without any real hands-on effort from you. No rent collecting. No property management. No maintenance. Nothing. You don't have to deal with tenants or 2:00 AM phone calls about noisy neighbors or leaky faucets. No active participation whatsoever.. And no, I'm not talking about buying the property and then hiring a property management firm to manage it for you.

I am talking about investing in a Real Estate Investment Trust (REIT). 

REITs are companies that invest in income-producing real estate. They give you the ability to invest in real estate without having to purchase and maintain the actual property. And you don't have to deal with tying to get financing through a bank. We all know how time-consuming and stressful that can be! Through an REIT, you can often get started investing in real estate for as little as $500. 

Real estate values tend to appreciate over time. Rents also tend to rise over time. And real estate tends to be less volatile than stocks or bonds. Then there are the tax benefits related to real estate investing. Investing in an REIT can be a good strategy to generate passive income. 

Of course, real estate investing does come with risks, as does any form of investing. If the value of your property portfolio goes down or the housing market in general declines, you can lose your investment. So always do your due diligence and research before making any investment. No investment can guarantee you either a return or even protection of all your principal. And if they say they can, you might want to walk away. But overall, real estate has proven to be a highly stable, lucrative investment. And an REIT allows many people who couldn't otherwise afford to purchase income-producing properties an opportunity to invest in real estate. 

I am not an expert on REITs or passive real estate investing. Before you decide to invest, I would find someone with real knowledge of real estate. I have done some research though and have found two REITs that have decent reviews. I am not an affiliate for either of these companies. Both have their pros and cons. 

Fundrise: Founded in 2012 and headquartered in Washington, DC, Fundrise is one of the leading real estate investment platforms.

DiversyFund: With a $500 minimum investment and no management fees, DiversyFund is a low-cost entree into the often high-roller world of real estate investing. 

If you have often dreamed of being a real estate mogul, or if you're just looking for a way to add some passive income to your financial strategy, investing in an REIT might just be for you.