Don't Spend What You Don't Have

Many businesses begin by getting themselves into debt. It usually starts off with someone, or a group of someones who have an idea for a business and start looking for a way to make that business happen. The problem is that there are so many banks out there who are willing to lend money to people who are impatient; people who do not want to wait till they have earned enough money to get their business off the ground.

When business owners take out loans to start their business there are usually two things that happen. The first is when a business is a success and the loan is paid off. Usually that loan is paid off over the course of a few decades. If the business is a real success, then the owners can allocate more of their profits to the loan and pay it off as quickly as possible. This will allow more of the profits to go back into the business or split between the employees. This is the best possible scenario.

What happens most of the time is the new business does not make the kind of money the business owners hoped it would. It struggles to pay back the loan, hopefully over the course of a few years while the business finds a way to make a profit. Usually the business eats away at the money it has borrowed and soon has to close it's doors and file for bankruptcy. What's hard is when the loan has been made in one or more of the business owner's names and they have to spend the rest of their lives paying back the loan or go bankrupt themselves.

If you are thinking about starting a business, you should do one of two things. You should save the money you will need to start the business yourself. Make sure you have operating expenses for 6 months to a year or even more. It takes an average of 2 years for most businesses to start making a profit. Hopefully you will be making enough to pay most of your expenses without having to dip into the funds you have saved for the business.

The second thing you can do is find investors who are willing to put money up front to get the business off the ground. In turn they would get a payment for a certain amount of time. If the business goes under then they would just be out the investment money. You would not have to pay it back. Make sure the agreement that is signed by both parties says this to avoid any lawsuits. It is hard to find investors which is why I always suggest you save the money to start your business. If you pay for the start-up yourself, then you don't have to worry about anyone else getting in on the profits you will be making when the business is successful.

There are several ways you can earn the money to start your new business. The easiest and most direct way to save the money is to cut your lifestyle back to bare bones till you are saving a large chunk of change every month. You could also get a second job where all the money you make would go into that business account. Another thing you could look into doing is finding a house located on a main street. Use the first floor for the business and the second floor to live in. This means your home mortgage will also be the mortgage for the business.

There are a lot of other things you can do to get your business off the ground. Things like starting small and adding new equipment and personnel as you start to make more profits. If you make a plan to pay for the business without taking out loans, you will be more likely to succeed. Take your time and try different things. Whatever you do, serve your customers with honesty and integrity. They will in turn continue to come back to you, while also sending all their friends and family to you, thus making you successful.

There is Plenty of Money

We make money everyday. I don't mean that we earn money, I mean that we create money out of thin air. If you think about it, we look at the things around us and figure out how we can turn those things into something useful or a service that is helpful. Then people give us their money for that thing or service. Hence we are making money from stuff that was not there before.

Banks make money out of thin air as well. Let's say you make $100 and deposit into your account. The bank is allowed to lend 90% of that deposit to other people for their needs. Businesses will borrow money from the bank to pay their employees till the receive money from their clients. Their employees will deposit that money into their accounts. That means the bank has $190 on their books, $90 of which does not really exist. Now they do have th records stating the $90 in loans and they will get a return as the loanees pay back their debt. The thing is the bank can continue to loan out 90% of the deposits they receive. That means they can loan out $81 of that $90, putting $271 on the books from that original $100. Each of those dollars the bank is making interest on. That is also the reason it would be a bad thing if there was a run on the banks. There is no way the banks could ever give everyone the money they have in their accounts.

You can create money from your thoughts. People all over the world are blogging, and if they are doing it right, they are earning some kind of income from that ads on their blogs. The trick is to write about something people want to read about. If you are hear reading this you are helping me out just because the ads are on this page. If you see an ad for something you are interested in and you click on the ad, then I make even more money.

To make money out of thin air, all you have to do is look around and find a way to make something valuable out of the resources you already have available.

Tired of Being Poor

If you are like me, I assume most people are, you are in debt and have been since you were a teenager. I remember getting my first credit card and feeling all grown up. I thought, "Now I can buy the things I need." not realizing the things I thought I needed were not all that important, at least not enough to get myself into debt over.

Now I am hundreds of thousands of dollars in debt, including the mortgage on the house, and I'm sitting here thinking there is no reason why I should have gotten myself into such a bog hole. There is no reason why anyone should be in such a big hole.

If I can just show people they can live a normal life and not be in debt, maybe I can help someone stay out of what is killing most people in the United States. Then maybe along the way I can figure out how to get myself out of debt.