building a better budget

Passive Income

As a Young Entrepreneur what I am striving to create are multiple income streams. More specifically, passive and semi-passive income streams. Making money passively doesn't mean you have worked any less hard to earn it, building a system to create this cash flow without your constant attention. An example, your income from that 130 unit rental property you have purchased which is being professionally managed or outsourced to property management. That is passive income! That is the entrepreneur's golden egg!

One of the fastest ways I've found to create passive income is to create a blog. So far, I have dedicated very few hours to my blog and therefore i don't believe i have reached my earning potential. I have decided to spend at least 10 hours a week writing and optimizing this blog, and for two really good reasons. 1) People are reading! even without a domain name or being listed on any search engines. And therefore i plan 2) make money! in the little time that i have been actively writing on this blog i have seen the AdSense account grow. Its really amazing how quickly the clicks ad up! So, why not create content and build an audience that shows interest in the same subject as you? And at the same time, build a passive income stream (sooner than you think)

i could suggest many ways to attract visitors to your blog, and earn revenue, instead i will suggest you visit http://www.problogger.net/ . this guy is great, hes a full time blogger with many tips for those aspiring bloggers. With a little time, planning and effort you can create a winning blog where you will not only see your readership grow, but also your revenue!

Assets Vs. Liabilities

I think there is a HUGE misconception in today's society regarding the difference between an asset, and a liability. I've recently noticed this especially amongst some of my peers. When I did an informal poll today, via MSN messenger, my results showed a great lack of financial understanding. Half of the those asked " what is the difference between an asset and a liability?" had a mixed response of confusion, and clueless shots in the dark. Another said their number one asset was their '94 Ford Escort. The most accurate response I received was from a young college student who said his number one asset was the education he was receiving in media/web design. And i will explain why that answer was a little hit-and-miss.

The best definition I could find for asset was found here, It defines an asset as: A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
I am going to expand on this briefly, a true asset creates passive income (we will get to that shortly). An asset is a form of property, whether its a business, rental property or intellectual property ( ex. book, music catalog) of value that is creating enough income to take care of any expenses it endures. Once that property can no longer sustain enough income to cover expenses, it is considered to be a liability. Or an opportunity if you are optimistic like me!

Now a liability on the other hand, is not such a great investment if you plan on achieving the lifestyle of your dreams and creating wealth. I have counted my liabilities, and luckily they all fit on my one hand. They include my cell phone, apartment rent and Internet. Basically, a liability is either a contract or lifestyle choice you are bonded to that puts no money back in your pocket. Liabilities often lose value as where assets when properly cared for gain value. So I'm sorry to say it, but that brand new Cadillac you rolled off the lot last weekend is not an asset.

Back to my student friend that said his education was a great asset. I am not arguing with him, I believe your mind is in fact your greatest asset, second to that is your time. But if you are studying in order to find a good paying job, you will be trading your time for money instead of having your time and money working for you.

I would like to know.. do you own a business? do you have any assets? has this post made you reconsider your spending and a possible asset purchasing plan? I want to hear from you! Comment today!

My first blog

This is my first entry in what i aspire becomes a popular and successful blog. My goal, which i will track within the blog, is to become a millionaire by the age of 25. And at the age of 19, only leaves me about 5 1/2 years to achieve this. In the era of Internet and rapidly changing technology, it has never been easier to gain ridiculous sums of money. On that same note, it has never been easier to LOSE vast sums of money overnight.

As i contribute to this blog, and keep my readers posted on my financial progress i will post tips on how to save, invest and grow rich. I will also share entrepreneurial lessons, my recommended business books, and tips on how to earn the most money and realize great potential in your blog/online venture.

Today marks my journey into a quest for wealth, happiness and financial freedom. Take action and choose a path of success!