Long Term Plan to Get Debt Free and Make $1 Million

I've been reading a lot about passive income streams and debt reduction in combination since this is one of my major goals. The trouble I am having is writing out a specific plan of attack to make it happen. Currently I am over $60,000 in debt and I'm making below what I need to every month to pay the bills. From what I've read there are a few steps that i need to take if I want to achieve my goals of freedom from debt while increasing my earning potential to $1 million a year.

With my expenses exceeding my earnings the first thing I need to do is reduce my monthly expenses somehow. I could achieve that by: requesting a higher credit limit on my low interest credit card so that I can consolidate some of my high interest loans, selling my work truck or my grand piano, getting a higher paying job.

I just got off the phone with MasterCard and was declined for an increased limit however, I was able to bring my interest rate down by 5% just by negotiating a little bit. You would be surprised how badly these companies want to keep your business. I first asked for a lower rate and immediately they reduced it by 1%. I went on to say that Visa offered me a promotional rate to consolidate my other loans but I would prefer to stay with MasterCard since they are affiliated with my main bank. I was put on hold and under a minute later they reduced my interest rate by another 4%. Don't be afraid to push them a little bit. Take advantage of the fact that these companies know how many credit card offers they send out and play with them a bit. You don't have anything to lose.

I'm happy to say that I have sold my piano. That is $26500 of debt that is now gone. Well not quite. I sold it to a friend of mine that has promised to pay it off completely by March. Until then he is taking over loan payments which will save me about $460 per month while continuing to build my credit. I won't feel totally free from that debt until it has been paid down to zero though. I'm still considering selling my work truck and purchasing an older model. The reason I haven't sold it yet is because it gives me a more professional image and, at least up to this point, I haven't had to pay for any repairs. Repairs on older vehicles can add up. My uncle almost pays the same as me just in repairs for his 15 year old vehicle. Some months require thousands of dollars and at the moment I'm happy to know exactly how much I'll have to pay.

I started looking for a part time job yesterday. I actually talked a little bit about job searching in my last post. I now have my sights set firmly on sales. After speaking with a friend I learned that he would sometimes make $700 in one day! And that was just from selling computer equipment. The reason I am choosing part time is because it gives me the rest of the week to work on further development towards reaching my long term financial goals. Once I get a job I will be making more than I need monthly and that will give me additional income to pay off my loans faster and invest in some long term, passive income sources.

Passive income is never true to it's name. Often it takes a significant amount of time to build up but significantly less time to maintain. Currently I have 3 projects that I hope will make me money over the long term: my landscape maintenance business, an ebook on lawn maintenance, and a website on success in mixed martial arts (mmasuccess.org). These businesses are making me close to nothing right at this moment but I see fantastic potential in all three. I also believe that the diversity between all three will serve me well in terms of financial safety. For instance, if the Internet breaks and websites no longer work I will still have a physical business that will continue to make me money.

That is one reason why I chose landscape maintenance as my first start up. It is a physical business that a good majority of people use that won't be adversely effected by technology. I'm not saying that the internet might break but I have friends who make their entire living off online sales and the fluctuations in that market could be scary if you aren't diversified. The other reason I chose landscape maintenance was because I have basic knowledge in the subject from working with my dad for 12 years and it required very little startup capital (only $5000). I have managed to build a decent client base and pay off my startup costs in the past 6 months. For next season I am planning on hiring a crew of 2 guys to take care of clients and I will focus on managing, marketing, and growing the business. With only 2 employees the business should offer me $5000 a month in profit, allowing me the time to explore my other passive income sources.

The landscape maintenance company and the ebook on lawn maintenance kind of go hand in hand. One way that I plan on setting my self apart from other employers is by offering year round employment, even in the off season. This will allow my employees to gain an edge by getting additional training and certification, helping with marketing, and writing articles for the blog and ....ebook! Suddenly I have created a product while keeping my employees happy with year round employment and additional training that offers them the opportunity to advance more quickly.

My goal with all of this passive income stuff is to be able to have the time to live my dream which is 1. training full time to become a professional mixed martial arts fighter and 2. to purchase real estate in many different countries allowing me the freedom to change my surroundings dramatically whenever I wish. I have been training martial arts for 3 years and I am now switching to almost full time training. One way I thought I could make the money I need to to train is by setting up a website that follows my progress with blog entries and videos of sparring and tournaments as well as videos on performing techniques and news articles on everything going on in the fight world. I feel that a site like this doesn't really exist out there and the potential for readers is huge. Plus, by having to demonstrate techniques on video it would force me to gain valuable knowledge that can only help my game.

My dream to own lots of real estate in different countries doesn't come from the desire to become rich and powerful. It comes from the desire to have flexibility that allows me to gain a greater range of experience in my life. If I had it my way I would move to one of my many houses and every two weeks fly a friend out to stay with me to share in the experience. It all sounds very romantic to me. That might sound odd coming from someone who wants to fight professionally but I believe I am an artist at heart. Something about spending time with a good friend in a New York City loft in the wintertime gives me butterflies.

After I am out of debt I believe that all of these ventures, in a few years, will make me close to $1 million per year. I believe I should have no trouble attaining, if not exceeding that by the year 2012