I completely understand that too many people today simply can't make ends meet with the salary they're earning. If that's the case, it's time to consider ways to grow your income. Meet the Egglestons Meet Dan and Sally Eggleston. Dan and Sally are both elementary school teachers earning a combined income of $92,000, and live in Indiana, where they're raising three wonderful kids. When I first met them a year ago, they were $100,000 in debt and on the brink of bankruptcy. Working together, we managed to find ways to cut back on about $500 of unnecessary expenses each month. That was a great start. But due to the huge amount of debt Dan and Sally had accumulated, they had to do more. In order to make measurable progress toward paying down all their debt, they not only needed to seriously cut back on their expenses, they also required a solid plan to grow their income by at least 10 percent over the year. The Egglestons didn't just succeed -- they crushed my goal by growing their income by over 20 percent! Grow Your Income, Not Your Lifestyle I'm going to coach you through the same steps I used for the Egglestons, but first I want to stress an important point that can make or break your success. Please read closely: Earning more money won't make a bit of difference if you don't save it or apply it to paying off your debt. Many people fall into the trap of "the more you make, the more you spend." It's a vicious cycle that will keep you living from paycheck to paycheck regardless of how high your salary is. The bottom line is that you've got to grow your income, but not your lifestyle if you want to make financial progress. Now for the five steps the Egglestons followed to grow their income: 1. Change your thinking by asking better questions. Often, when we're struggling financially we ask the wrong questions. Asking negative questions like why you're always broke or can't get a raise can lead to negative answers. If you believe you can't make more money and consequently do nothing to change, you'll prove yourself right. If you think it's just too hard, it will be. But if, instead, you empower yourself by asking, "What can I do to make more?" then you'll change your life. I asked Dan and Sally, "What can you do to earn more money" They focused on the answer, and together we went to work on their plan. It took a lot of work (theirs, not mine): Dan picked up an additional coaching job and grew his summer lawn-care business, while Sally picked up summer school teaching jobs and started a mini-eBay business. It wasn't easy for them, but they did it. 2. Start a side business. Starting your own side business for extra money doesn't have to be complicated, nor does it have to take a lot of money. For instance, a few years ago Dan started his own lawn-care service in the summer months with just a lawnmower. He created some flyers, knocked on a few doors in the neighborhood, and soon enough he was in business. Sally taught herself how to open an eBay seller's account and in a matter of hours started selling used clothing online. Depending on your interests and abilities, there are all sorts of things you can do to develop an additional income stream. You can perform a service (like painting houses or editing resumes), make something and market it (like cookies or jewelry), and buy something and resell it (think eBay or Amazon.com). You can even turn a hobby into a side business -- if you cook you can cater, and if you sew you can do tailoring. Be creative and see what else you can come up with. 3. Raise your rates. If you have a business or service you offer right now, raise your rates. It's the fastest way I know to earn more money, and it helped Dan immediately. He'd been running his lawn-care business for five years, and not once in that time had he raised his fee. I coached him on how to go about increasing his rates without losing business. He started out by writing a letter to his customers, letting them know how much he appreciated their business and loyalty over the years. He simply shared with them that in order to keep up with the rising cost of gasoline and other expenses, he would be raising his rates by 10 percent this year. Dan not only retained all of his current customers, but got a few new referrals as well. The business ended up pulling in an additional $2,000 in profits compared to the previous year. It's time give yourself a raise. If you think your customers wouldn't stand for it, consider Dan's experience. Right now, someone somewhere is raising the price he charges for his services. Why aren't you? 4. Get extra work -- at work. As I mentioned before, Sally and Dan are both teachers. Sally asked her district about teaching summer school and landed a position that earned her an extra $4,200. Dan signed up to coach his school's baseball team and earned another $4,900. You don't have to be a teacher to find opportunities like these. Ask about overtime or additional projects that you might be considered for. Can you increase your hours or work an extra shift? You won't know until you ask. 5. Get a raise. Unfortunately, if you work for a union or government agency, this advice might not apply. But for everyone else, nothing will increase your income faster than getting a raise. Dan recently completed his bachelor's degree, which earned him a whopping 30 percent increase. While you may not have earned a new degree, getting a raise can still be as simple as asking for one. Start by preparing yourself for a meeting with your boss. Know exactly how much you want to ask for, and consider putting it in percentage terms. A humble request for a 5 percent raise starting in the next 90 days may be easier for your boss to handle than a demand for $2,500 more per year -- even if both amount to the same thing. Have confidence in yourself. After all, you're a hard-working, dedicated employee, right? Consider that it will probably cost your employer more to replace you than it would to give you the raise you deserve. Share Your Story The Egglestons' story has a happy ending. They managed to grow their income by $19,000 in 12 months, and they've paid off $26,000 in credit card debt so far and are well on their way to becoming millionaires. Dan and Sally took a seemingly hopeless situation and turned it into a true success story -- and you can too. About Christian Credit One, Inc. Christian One, Inc. is a national, non-profit Christian organization dedicated to helping consumers achieve financial wellness through Christian . Established in 1994, has helped over two million individuals achieve financial security. Christian One is one of the top members of the American Association of Organizations (AADMO), Christian One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian One or call 888-767-9155.
Greg McTaggart, Certified with 22 years experience, licensed by AFCPE, Director of Christian One and is an expert in budget and Christian . Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Executives, Mortgage Assistance and Spokesperson of the radio talk show The Money Mentor, Greg McTaggart is a qualified Christian to help you.
Amid the panic of investors, brokers, and analysts, world equity markets plunged 20 percent in one week. IBM presented signs of survival as the company prepares to release a full earning report on October 16 that will show a 20 percent jump in profit. The enormous impact of sickly stocks, broken banks, credit crunch, cascading consumer confidence, and the reeling real estate market will continue to affect the world economy for several more fiscal quarters. However, some companies will use this incredible period to rise to the top, gaining market share and profitability, despite adjustments in overall revenue. What can be learned from those that survive and thrive during a time of economic crises?
The Economic Crisis
Governments around the globe are investing in businesses and banks in an effort to avoid a complete collapse of affected institutions. However, the general public is not convinced that the government will be able to effectively run the businesses it has acquired with any better dexterity than existing mismanaged government budgets. Furthermore, although the infusion of funds may temporarily secure investments, it does not alter the effectively alter the transactions that instigated the decline.
Inflated values of derivatives, fueled by ambitious speculation and fortunes amassed by paper transactions rose to catastrophic levels. Derivatives are commitments to purchase commodities or financial instruments at a fixed price, with an agreement to take profits if the value of the asset rises. In recent years, mortgages sold at subprime rates were bundled into securities. Lehman Brothers and Merrill Lynch created offsetting credit derivatives to protect investors in the event that these securities defaulted. Credit derivatives benefitted from profits derived from the increased number of subprime loans and home sales during the real estate bubble. When housing prices dropped and interest rates rose, many adjustable-rate subprime mortgage owners were unable to keep up with the higher monthly payment. Mortgages defaulted, demand for houses cooled abruptly, and the suddenly above market rates of credit derivatives collapsed. AIG was the biggest investor with US $527 billion in these bonds.
World markets also fell prey to a pin-stripe financial pyramid schemes, suffering similar consequences on a global scale. In the first week of October, Tokyo fell 24.3 percent, Frankfurt fell 21.6 percent, London fell 21.1 percent, and Wall Street fell 19.8 percent. What was originally dismissed as merely a problem in the United States has shaken the foundations of financial institutions around the world.
Meanwhile, a little closer to home and possibly your own personal savings, you should be aware that mutual funds commonly contain derivatives in the portfolio. If you have investments in mutual funds, then you should consider investigating to determine if your holdings contain derivatives that regulators cannot control or even monitor. You can investigate your prospectus and the listing of holdings, or switch to a safe government bond fund. If this is the case for you, it may be time to replace your regular coffee with decaffeinated.
What this means to Manufacturing and Retail Sales
Mount Gibson Iron Limited of Perth, Australia acknowledged that it has received requests to delay iron-ore shipments from many manufacturing clients in China. The manufacturing facilities in China have already realized the decrease in demand and are making arrangements to adjust production schedules accordingly. Consumers are cautious about increasing personal debt, and carefully considering many more concerns before making purchasing decisions. The automobile industry was not only impacted by credit and loans, but sales are also influenced by alternative fuels, hybrid cars, and the rising cost of gasoline. Production and sales of luxury items, upgrade items, and new technology will start to slow down. Business budgets will be slashed to reduce costs, affecting commercial channels. Consumer commerce will not stop, but it will look both ways before crossing the street. Circuit City Stores reported a US $239 million loss and has already warned investors that holiday sales are expected to be disappointing. Acting CEO James Marcum, who replaced Philip Schoonover, promised a new marketing campaign to "bolster the company's holiday performance".
Fortunately, this slow down of luxury items and replacement products creates new opportunities for other markets and innovative suppliers. Many consumers will be more willing to make a small investment on a service plan or extended warranty to maintain the life of a product, as opposed to the alternative of investing in new product. Although luxury items will loose luster during this period of tight purse strings, discount goods will have greater appeal and renewed interest. Consumers will spend a little more time to look for a better deal, and those companies that offer the better deal will have a bigger piece of a smaller pie. When entire markets slow, it is time to replace revenue targets with goals for increasing profit or a bigger share of the remaining market.
Consumer cost cutting leads to higher demand for lower cost items. There is a sense of satisfaction and personal reward associated with the ability to conduct a purchase. While transactions for expensive garments may decrease, sales of lipstick and make-up may rise. Small price items provide an opportunity to experience the sensation of a rewarding purchase, without experiencing the regret or possible return of a more expensive item. This is particularly true when there is less disposable income in the pocketbook.
Production and sales of luxury products will slow down. The Santa Claus index indicates that there will be fewer and more economically priced presents under the Christmas tree this year. While that is bad news for some industries, it poses heightened opportunity for mobile phones, gaming devices, Wii TM, and Kindle TM.
When Sales are Down, Service goes Up
During tumultuous times for production and sales, demands for services increases. Organizations are already aggressively searching for partners to outsource services. In transferring the cost for service and support off the books, organizations are looking for partners that provide best practices. This allows the client to adjust organization size, manpower, warehousing, planning, and assets by transferring the burden to a trusted vendor. The vendor provides a service to the client and uses expertise, efficiencies, or the combined consolidation of multiple clients to provide lower cost service solutions. Furthermore,really creative vendors will help the client to identify ways for the client to resell the services, thereby generating new revenue streams and shared opportunity for profit. It is by looking at opportunities to lower the bottom line and simultaneously raise the top line that vendors advocate for their clients.
It is important for companies to differentiate the financial value of services. Service vendors that demonstrate an ability to help reduce client cost, preserve client profit, and address the many related needs of a client will have an opportunity to increase business and market-share. Third Party Service Providers, logistics providers, repair, and professional services that result in lowering client costs will be in high demand. Extended Service Plans and Maintenance Contracts create opportunity for shared profit, and enable the client's customers to extend the return on investment. Organizations that leverage this economy will not only gain new business, but also has the opportunity to develop a long lasting relationship with the client. Service vendors should seek long term commitments and corresponding long term contracts. The assumptions regarding profit and associated investments must be precisely documented, and flexible enough to adjust when the temporary economic crises turns into new growth markets.
Many types of services provide a fluid environment that can be rapidly adjusted to maximize profit. The term "services" typically implies utilization of manpower resources that can be rapidly adjusted to accommodate changes in market conditions. The same can be said of software as a service (SaaS). Have you ever thought of e-Bay as a service? The online auction company provides a service for consumers to connect with one another. Some consumers benefit by generating some revenue from otherwise unwanted items. Other consumers benefit from access to lower cost alternatives for purchasing items, thereby saving money. Some businesses use the online auction to augment liquidation. The ease of this service, the value associated with lower cost alternatives, and the desire to expedite cash flow will continue to grow this online service during an economic crises. The overhead cost and relative investment expense for e-Bay clients is negligible in comparison to the number of transactions and the cash flow. Are there services that you can provide that offer low overhead, low investment, and high yield?
What did IBM do?
International Business Machines third quarter income amounted to US $2.8 billion, or US $2.05 per share. That is 20 percent higher than the US $1.68 per share as compared to the same quarter last year, and it surpasses the US $ 2.02 per share predicted by Thomson Reuters. IBM is predicting that it will achieve 22 percent earnings growth for the year.
Many will remember IBM as the company that brought computers to a global stage. From punch cards and gas tubes, to PC's and mainframes, the roots of the computer family tree invariably include IBM. Since licensing the brand name to Lenovo, a business strategy that bolstered both organizations, IBM has relinquished production and sales of computer hardware devices in lieu of a diversified portfolio of software and services. IBM emphasis on long term service contracts now accounts for more than half of it's current revenue. As the economic conditions place strains on clients, the rate of growth is expected to slow, but is not expected to negatively impact the overall percent of profitability. By growing services as a percent of the company, and by offering highly profitable software solutions, IBM has increased profit margins from 41.3 percent to 43.3 percent gross margin as compared to the same quarter last year.
What can you do?
The news about economic crises can be unsettling. However, for the creative and the courageous, there are new business opportunities.
- Look for services that can augment your profitability with minimum overhead or investment costs.
- Develop business opportunities that have the most flexibility of resources.
- Focus on opportunities to use your business in a manner that augments the cost reduction or enhanced profit of your clients. By helping your clients to succeed, you enable them to invest in your relationship and success.
- Don't be distracted by the mantel of the crisis, but rather look below it at the opportunities that are being exposed. As a trusted advocate for your clients, they will help you uncover the opportunities so you can do more than survive. You will thrive.
- Consider options to use Software as a Service to reduce costs for your organization, to offer cost cutting options to your clients, or to create new revenue streams with flexible resources.
- Consider how your cost cutting measures and flexible resources can be outsourced to your clients. If you successfully implement innovative responses to economic changes, how can you share these benefits with your clients, or even use the creative ideas to create new market opportunities?
- You are not alone. The obstacles encountered as a result of economic turmoil present the same challenges to your competitors as they do to you. Your strategic response to protect profit, acquire market presence, and solidify brand awareness during the challenging period are the foundation for positive growth when the market returns. Rally around the core competencies and competitive values of your company. Be prepared to outsource or sell the portions of the business that do not contribute to profit, share of market, or the brand name.
- Create an internal think tank of individuals specifically organized to monitor the impact of the economy on the organization. The think tank should include individuals with experience from previous economic challenging periods, as well as individuals with bold new ideas. If possible, include representation from finance, sales, operations, marketing, service, and human resource departments as applicable to create a comprehensive report on potential company impact and several suggested plans of action. Response plans should include worse case scenario planning, as well as response to current conditions, and several alternative action plans. By considering the options for response to crisis, and preparing plans to take advantage of rapid growth when the crisis subsides, the organization will be poised to respond quickly, accurately, and aggressively to each positive or negative change on the roller coaster ride.
This article is not intended to render legal or financial advice. If you require legal advice, you should seek the services of an attorney. If you require financial advice, you should seek the services of an accountant or licensed financial advisor.
"The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity."
- John F. Kennedy
"Too many people are thinking of security instead of opportunity. They seem more afraid of life than death."
- James F. Byrnes
"Trouble is only opportunity in work clothes.?
- Henry J. Kaiser
"There is no security on this earth, there is only opportunity."
Both David Russel & John Mehrmann are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David Russel has sinced written about articles on various topics from Finances, Debts Loans and Finances. About Aouther: Greg McTaggart, Certified with 22 years experience, licensed by AFCPE, Director of Christian. David Russel's top article generates over 3600 views. to your Favourites.
John Mehrmann has sinced written about articles on various topics from Finances, Tax and Software. John Mehrmann is author of the award winning book, The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and Presiden. John Mehrmann's top article generates over 49500 views. to your Favourites.