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

Getting a Job. Some Helpful Tips on Maximizing Your Potential

So I actually have to get a real job. My season has slowed almost to a stop with my business and I don't have sufficient savings to propel me through to next season. I've been looking for jobs but it seems none of them pay much more than minimum wage and I'm looking to make at least $160 a day. However, there are a few jobs that are exceptions; Waiters, hosts, and sales.

Waiters and hosts make a significant cut of any tips that are left by satisfied patrons. This is especially great for anyone in North America because the normal tipping percentage here is much higher than in some European countries. I have a few friends that make up to $300 a day and no less than $150. Sales associates often work on a commission basis so if you are motivated and good with people this field also has similar potential with the max earnings depending on the product that you're selling. So after you decide which job would suit you (assuming you are ok with these 3 options) it's time to write up a resume.

I'm in an interesting position because I recently put out a job posting for my business and received 20 resumes, all varying in quality and I think I can at the very least tell you what not to do.

Do not:
have grammatical errors
think it's alright to forgo applying with a resume

I couldn't believe that people actually applied for the position with only a sentence or a couple that were full of spelling mistakes.

-I know the basics of gardening.. im looking for employment, i am interested

-Hi, my name is Andrew, I have lawn&garden maintenance Exp. do not have a job right now and would be intrested in

nowing more about the job,and now who im apllying with

thank look forwerd to hereing from you 3## ##2#

call eny time LM

Needless to say they weren't hired. Your resume is the only chance you have to get a call back so make it perfect. Spelling errors are not acceptable especially when spell check will take care of it for you. To me it just insinuates laziness. Now for some do's.

Do:
include a cover letter
add a photo of yourself

I received one application that included a cover letter. Even with only 10 or so qualified applicants it was difficult to remember which was which. If you include a cover letter or a photo you will subconsciously become more memorable to the interviewer. Anything you can think of to stand out should be done.

So let's say you actually get an interview, dress accordingly. You should always look well groomed and professional but if you are applying for a labor position there is no need for an expensive suit. A clean, matching outfit will suffice for most interviews of that kind.

Keep in mind through the whole process that you are trying to create an indelible impression on the company you are applying to so make it as memorable as possible.

After 71 Years Monopoly Turns to Visa for Help

After doing some market research Monopoly has decided that they should switch to plastic. Their findings are showing a growing trend towards the use of plastic currency like credit and debit cards. Debit card spending in Canada alone came to $137.4 billion dollars in 2005. That's a lot of money for just over 33 million people to spend without exchanging any physical cash.

When I first read that Monopoly had paired up with Visa I was upset because I thought they were now offering the option of credit card debt as a new game strategy. Picturing the millions of children soon to be playing this version of the game I had to read on, hoping my previous assumption wasn't correct. Thankfully the new version has only a Visa imprinted debit card. Better? I suppose, but it still leaves a bad taste in my mouth. The idea of Visa sponsoring a board game that is intended for children 8 and up seems immoral. Shouldn't the makers of a children's board game be aware of the subtle effect they have on the future habits of their players?

I think perpetuating the growing family debt could be avoided if this powerhouse in children's toys would have delved a little deeper into their "market research". But who knows if Hasbro would have done anything different knowing that 40% of the families in America spend more than they earn annually. I would hope they would because with those stats, 2360 of their employees are in the same financial boat.

Saving Lots of Money on a New Computer

My computer is on the fritz at the moment. I am having to reboot it frequently and I think it's about time to get a new one. I was looking for reviews of those free online offers to see if I could find one that was legit. I found one that you can complete without giving away your credit card info. The only catch is you have to sign up more friends than you normally would. BUT, I have heard of lots of people who received the free laptop. So I'm going to give it a try because I can't afford one right now and to save $1100 dollars on something I need is huge. Follow this link if you'd like to complete the offer for yourself while helping me get a new laptop. www.notebooks4free.com Also, if you're looking for the offer you have to complete without giving away credit card info then sign up for the ebay account and place a bid on a low priced item.

Want to Have A Million Dollars?

I've been working out the financials for my business plans next season and I was looking for some microsoft excel templates I could use. In my search I came across one called the Millionaire Calculator. Basically it calculates how long it would take to save a million dollars based on a certain rate of return and a regular monthly investment.

You have many options when it comes to investing but it mostly depends on how much of a risk taker you are. I consider myself a mid to low level risk taker because of my limited amount of savings and income and because of that stick to GICs, savings bonds, and RRSPs when I invest. As an investor you can choose from; GICs or savings bonds, RRSPs, RESPs, mutual funds, stocks, bonds, savings accounts, pensions, and income trusts. Each one has a different level of risk. There's a Canadian investing web site that has a lot of very useful information to help you decide what kind of investor you are and which investments might be right for you.

Mr. Debt- Know Your Rights

This is an interesting set of videos I ran across on youtube. They total about 25 minutes in length but are a very good watch if you have the time. I'd be interested to see what you guys think of this lawyer. It appears that his lawsuit's of credit card companies and banks are based on unethical practices leading to lending with the knowledge that the borrower is incapable of paying back the debt.

Do you think there is anything that would ensure the use of ethical practice by these banks? Perhaps more and more lawsuits would change their minds? Let me know what you think.

Part 1

Part 2

Part 3

Setting Short Term Financial Goals

I have been overwhelmed by my debt lately. Extreme debt and limited income really does feel like you're in a hole that you can't seem to pull yourself out of. I think I've been focusing too much on the big picture and I need to set some short term goals for myself.

I was on a forum today that I regularly visit and they had a post where you would write how much money you were going to spend that day. For some people it was a couple bucks here and there for a coffee or lunch, and for some it was nothing at all. I thought to myself "this is the kind of thing I need to start doing". I need to start setting daily goals. Mentally preparing myself every day to spend as little as possible. Today I had $5 in my pocket and I had some cheques to deposit, and some credit cards to pay off at the bank. So instead of driving my big truck I decided to walk to town and get a chai latte and a cheap piece of pizza. Those two items came to $4.75 on the dot and $.25 went into my change jar. It felt really good knowing that I only spent $5 for the entire day.

Try relieving your daily financial stress a little bit by setting short term goals. It works!