Consumer Debt is Deadly

The purpose of this Cash Ideas Now blog is to help you identify ways to make money.

How To Make A Six Figure Income Online

Any attempt to free yourself from your job routine begins with getting your financial house in order, and one of the biggest obstacles you must overcome is consumer debt.

To put it mildly, consumer debt is a financial killer.

One of the best ways to reclaim your financial future is to repay those high interest consumer loans and then restrict the use of credit cards to emergencies and fast investment cash.

Therefore, the third step in creating wealth is to reduce your dependence on credit cards and ensure future monthly payments on all of your cards combined never exceeds 10% of your after tax income.

Consumer debt is usually used to finance the purchase of “nice to have” things--which typically depreciate in value. Whereas, investment debt is the use of financing to purchase things which go up in value, like real estate, antiques, and well-run businesses.

Consumer credit increased at an annual rate of 2.5 percent in May 2006, while revolving credit increased at an annual rate of 10 percent. The Federal Reserve Statistical Release for July 10, 2006, indicates Americans currently owe over 808 billion dollars in revolving debt, which is principally credit cards and auto loans, and over 1.3 trillion dollars in non-revolving debt. According to U.S. Bankruptcy Court statistics, there were well over 2 million bankruptcy flings made in 2005 alone, with the vast majority of these non-business related filings. Remember, there are approximately 123 million working Americans; therefore, this number represents nearly 2 percent of the working population. The abuse of credit cards by the American consumer has become a financial epidemic.

The propensity of Americans to assume high interest credit card debt, while fearing the use of debt to make intelligent investments, is mind-boggling.

Consider this example. A new car may cost you up to $500 per month. At the end of 5 years, you will have a significantly depreciated car, with a loss of $30,000 or more in principal and interest payments. Compare this to purchasing a rental property. In the worse case scenario, you may expect to make payments during vacancies, provide for unscheduled maintenance, and carry a negative cash flow from month to month. However, at the same time you will be enjoying a property that appreciates in value, while giving you a valuable tax write-off. Appreciation and tax write-offs are not the primary reason to get involved in real estate, nor is carrying a negative cash flow a pleasant thought. But, in the long run, this is more advantageous to your wealth goals than the car loan.

As a credit consumer you should also protect yourself against the dreaded Universal Default Clause. Amazingly, a large percentage of major credit card issuers have this clause tucked into your user agreement. Essentially, the Universal Default Clause allows your credit card company to significantly increase your interest rate and fees based on your credit score and payment history with other lenders, including your home and car loan. Watch out for this clause and try to avoid doing business with credit card companies that use this tactic to prey on their less sophisticated customers.

If the fear of a foreclosure is your greatest concern, it is interesting to note that according to RealtyTrac, there is one new foreclosure filing per month for every 1,311 U.S. households.

Over the course of a year, the number of homes entering foreclosure barely compares to the 2 million plus bankruptcy filings per year, suggesting the risk to your financial well-being through home ownership is lower than that of acquiring consumer debt. Education in this area is critical to your success, so I strongly recommend you read books by Tyler Hicks and William Nickerson before starting a property investment plan.

The next time you are tempted to take out a loan on a new boat or quad, consider how the cost of this purchase, with compounding interest, may be better used to achieve your financial goals. The National Foundation for Credit Counseling believes it takes from 3 to5 years to recover from credit card debt, once an individual starts a structured recovery plan. This can put a severe damper on your wealth accumulation goals. What it all comes down to is your willingness to delay gratification—a difficult emotion to master.

Over the years I have used credit cards for both consumer purchases and investments. Sadly, like many others I also went through a stage in my life where I abused credit cards and allowed the balances due to become a burden to my family and a drain on my monthly income. I used steps one and two of this report to dig myself out and have since limited myself to carrying a prepaid card. Normally, people use prepaid cards when they can’t qualify for a regular credit card. However, the prepaid is also a great way to minimize your spending, as it only works when there is money in the bank to back up your purchases.

Credit card horror stories are everywhere, and there is a good chance you know somebody who has experienced something similar to this:

A young college student received a credit card offer in the mail. As a full-time student, he did not have a steady income and wondered how he managed to qualify. His credit rating was based entirely upon his potential to earn income as a future college graduate, and the complete lack of negative information in his file.

The student carried his freshly minted card in his pocket for several weeks, resolved to never use it, except for an emergency. Near the end of the semester he and a few classmates were pulling an all-night group study session in preparation for final exams. Around midnight somebody suggested they call out for pizza. They pooled around twelve dollars in cash between them and nearly gave up in frustration when our hapless credit worthy student volunteered his credit card. It was a small beginning, as these things typically are, but credit use is like an addictive drug. It is so easy to use, and the pain of repayment is always somewhere down the road—too far away to be associated with the enjoyment of pizza tonight.

By the end of the school year, the student had accumulated over $1,000 in debt on his card. While his monthly payments remained small, they represented a significant strain on his budget. His monthly allowance from home was now being spent to make credit card payments, which meant he had to use the card to make more routine purchases. The balance grew out of control, leading to a destroyed credit rating.

Another example of credit card use involved a young lady who worked a low paying job. She had dreams of a better life and spent a lot of her time looking for real estate investment opportunities. She carried four credit cards, with an available cumulative balance of around $12,000.

One day after work she came across a small house for sale by owner. It needed some work, but following an analysis of the market, she knew this home was worth more than the asking price. Using the cash option on her cards, she obtained $10,000 to make the down payment and cover closing costs. The owner carried the financing at a fair interest rate.

After closing she immediately set to work cleaning up the property. She then had it professionally appraised (insist on appraisals from Member Appraisal Institute) and listed for sale. For three months she managed to make the minimum payments due on her cards before the house eventually sold for a modest profit. At closing the buyer assumed the loan due to the original owner, leaving a little less than $20,000 profit. She immediately paid off her balance due on all of her credit cards, and parked around $8,000 in her bank account. While her return is not impressive to some investors, she did manage to make $8,000 out of nothing but information and gumption.

Both of these stories illustrate the power and dangers of credit card use. While it is not advisable to get involved in investments using credit cards, it is an option when quick cash is needed to capitalize on opportunity.

As a wealth builder it is vitally important that you monitor your credit report and correct any errors immediately. One of the easiest, and cheapest ways to obtain your personal credit report is over the Internet. It is estimated that up to 60% of all borrowers request a credit report at least once a year. If you are trying to protect your privacy, you may want to be wary of the questions about your current address, phone number, employer, and other personal data they may ask in the “Request Your Credit Report Here” form. A recent amendment to the federal Fair Credit Reporting Act requires each of the nationwide consumer reporting companies, Equifax, Experian, and TransUnion, to provide you with a free copy of your credit report, at your request, once every 12 months. Use the FTC government website www.annualcreditreport.com as your primary source for credit report data.


Ron Taylor
Your Work Sucks Super Hero

Shortcut To Internet Millions

The purpose of this Cash Ideas Now blog is to help you identify ways to make money.

How To Make A Six Figure Income Online

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I recently read an interesting article about finding shortcuts to Internet millions. The article discusses a popular, although controversial, program for finding Internet wealth. And all you have to do is sign up for their “free” website—which incidentally costs about $1,500, plus a monthly recurring cost with a 36 month contract. Hardly free.

But, in defense of the Internet wealth system mentioned above, how much is “free” worth? The Internet is ripe with hype that promises the moon with little to no commitment on your part. Which should not surprise you, as Internet marketers know that the dream of achieving success, or creating wealth, without effort or personal risk, is hardwired in the human psyche. We are all vulnerable to false promises of easy money.

So you see, it’s really not your fault for wanting to find a way to make money online, we all want the same thing, but you have to be realistic in your expectations. Yes, I firmly believe you can achieve wealth with Internet marketing, but you need to spend time, effort, and money to learn the business, and then you need to couple this knowledge with patience, and a willingness to take massive action to market your products or service.

Growing up in South Georgia I had an Australian Cattle dog. This dog was so fiercely independent he would not allow himself to be touched. He ran the woods behind my house and came home to eat once or twice a day. Sometimes he came home with his own meal, such as a chicken or rabbit.

One day a hailstorm came through our area. Ole Zach was lounging in the tall grass behind the house when suddenly hailstones began to pelt him. Zach jumped up and spun around, thinking somebody was throwing rocks at him. He didn’t put up with crap and would probably have attacked a person who dared to throw rocks at him. About that time another hailstone hit him in the butt. Again, he spun around and snarled. Ole Zach repeated this spinning and snarling routine several times before finally plopping down on the grass and howling in resignation.

I hollered from the back door for Zach to get under the porch, but he refused to move. As it turned out, this was a significant emotional event for Ole Zach. He was never the same. He lived under the porch and refused to hunt for himself. Later, he even allowed me to pet him. He was one whipped pup.

In my opinion, a lot of us are just like Ole Zach. We are too independent to ask for help, and when we get beaten down by the system, or a lousy business idea, we tuck our tails and run for cover—never to risk failure again.


If you’re feeling like Ole Zach I want to encourage you get up and try one more time. Take the lessons you have learned from your previous failures and put them to work. Take a cold, hard look at what you’ve done in the past, and then resolve not to repeat those same mistakes. Ole Zach may have been pelted by hailstones, but the real harm was how he allowed those hailstones to destroy his self-confidence. I’ve had my share of hailstones thrown my way also, and yes, some of them hurt like Hell. But I learned a powerful lesson from my childhood dog, and I refuse to allow failure, or my misunderstanding of its causes, to chase me under the porch.


Ron Taylor
Your Work Sucks Super Hero

Work Sucks Version 2.0

Okay, it's a given. For the most part, work sucks. I don't mean the work you put into building your own home business, or researching a stock or real estate investment.

I'm talking about the kind of work that involves punching a time clock and waiting around until Friday so you can go to the grocery store with your weekly paycheck.

The purpose of this Cash Ideas Now blog is to help you find ways to free yourself from the work routine, and yes, identify ways to make money.

How To Make A Six Figure Income Online

Your job is a necessary evil during the early stages of your wealth creation, but it should not represent a long-term plan. Not only do jobs restrict your income potential, they may also be hazardous to future income. Recent surveys and census data indicate approximately 30% of people will be forced to retire early due to circumstances beyond their control, including layoffs and illnesses. AXA Equitable and Nationwide Financial have an extensive database of figures related to forced layoffs and early retirements.


Jobs are created by entrepreneurs who understand that wealth is created by adding value to raw material or services, and selling finished products or services at a profit. Who adds the value to raw materials and services? You do. You are only valuable to an employer when you can effectively and efficiently add value to the organization’s product or service.

So, if you are interested in rising above a just over broke (J.O.B.) existence, you need to take Work sucks’ advice and look for income opportunities outside employment.

There’s no denying the fact that a job, with a steady income, is nice to have. It helps you pay the bills and keeps a roof over your family’s head. Unfortunately, that’s about all it does. What’s in a job? Security? A pension? Some of us are dreaming of retirement, thinking we’ll be happy living off half of what we can’t afford to live on today.

A job was never meant to make people wealthy. In a free market environment we sell our labor to an employer for the highest pay possible, while your boss tries to pay you the lowest wage you will accept. Usually the boss wins, because he is in control of the purse strings. As long as you look to your job for wealth, you will be disappointed.


If you want to become wealthy, you must look beyond your job. You earn a living between 9 and 5, but you achieve wealth after 5 and on weekends.

Most Americans think a job is security, but they are wrong. As long as you depend upon somebody else for your livelihood, you are a slave to that person and/or organization. And like a slave, you can be dispensed with as soon as they deem your services uneconomical. It’s a negative image, and I apologize for hitting you with it, but you can’t sit back and relax in the pseudo security of a job or retirement plan and expect others to secure a financial future for you and your family. Dependence is not security; independence is security.

While dropping my son off at school recently, I noticed an elderly gentleman standing in front of the school with a sandwich sign draped around his neck. The man was protesting unfair hiring practices by the school in the form of age discrimination. We live in a society that rewards youth and beauty, while disregarding the value of experience and ability. This man was willing to stand before the community to protest this injustice. His dilemma is all too common today, where hard working people have entrusted employers to provide them lifetime employment. Unfortunately, this trust does not reflect reality. Owning your own business is one vehicle you can use to take responsibility for your own financial future, without having to depend upon the vagaries of an unjust job market.
The expression, “if you want to catch fish, you have to risk the bait,” is so common it has become cliché. But how many of us actually incorporate that basic philosophy into our lives? Are you willing to risk the “security” of the traditional nine to five, Monday through Friday routine, to enjoy financial freedom? Vince Lombardi once stated “the will to excel, the will to win: these are the things that endure.” A business built with your own hands, energy, and ingenuity can endure where a job cannot, but if you expect to become a successful entrepreneur, you will have to take risks.

Taking risks to create wealth does not mean senseless gambling of your savings in the stock or bond markets, or betting everything on a horse race. Taking a risk means putting your self-confidence and self-image on the line. It means taking the chance of being embarrassed in the marketplace. And, it can also mean going against popular opinion and peer pressure to follow a dream. As Teddy Roosevelt was fond of saying, “seek opportunity, not security.”

Aside from the “job security” issues, your status as a wage or salary earner places you in the highest taxed form of income. Passive and portfolio income does not fall victim to Social Security taxes, and expenses associated with operating your business come out of your gross receipts prior to taxes. The structure of business taxation can allow you to enjoy some of the finer things in life, such as dining out, vacations, and nice cars (provided they are legitimate business expenses), while the same pleasures in life for a wage earner must use after tax dollars to do so. Robert Kiyosaki talks about this concept in detail in his Rich Dad, Poor Dad series, which should be required reading for any wealth builder. You don’t have to like him, agree with him, or buy real estate to get wealthy, but you should at least give him a try.

Not convinced? Take a look at some current statistics regarding employment.

It's been said that 80% of America is two missed paychecks away from financial disaster, and recent statistics indicate Americans spend 110% of their monthly income. Do you fit this mold? What would happen if you were laid off without pay tomorrow? Can Americans look forward to a secure retirement under Social Security or the company pension plan?

Current labor statistics do not paint a pretty picture, with quality jobs being outsourced overseas quicker than new jobs are being created. Sure, there are always low paying, low skill jobs available. But who can support a family on minimum wage?

Manufacturing jobs in particular have taken a beating in the marketplace during the past few decades, with some states, like Michigan, losing over 23,000 jobs in the course of a year. According to Labor Department figures, 26 states have seen manufacturing job losses in the past year. The federal government claims many of these displaced workers are receiving retraining, however, Bureau of Labor Statistics cites fewer than 204,000 displaced workers qualified for retraining in 2003, and only 47,000 actually received training assistance. The Bureau of Labor Statistics defines displaced workers as, “persons 20 years of age and older who lost or left jobs because their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished.” During the January 2001 through December 2003 period, 5.3 million workers were displaced from jobs they had held for at least 3 years.

In June of 2006, 4.6% of the available workforce in America was unemployed for an average of 18.4 weeks. For workers over 45 years of age, this unemployment period jumped to 23.8 weeks. That is over 5 months. Compare this to the statistic in the Introduction of this report that reveals many Americans have less than 3 months worth of cash and assets available to sustain them without continuing income. Of course, there is unemployment insurance, but this may take weeks to kick in, is a degrading and frustrating process, and is certainly no route to achieving the standard of living your family deserves.

Of the 7.6 million Americans unemployed at one time or another in the past year, 4.3 million lost their job due to completion of temporary projects, 3.7 million were laid off, and 1.9 suffered permanent job loss through no apparent fault of their own. To top it off, the median weekly wage and salary for working Americans in 2005 was $651. It hardly seems worth the effort. Yet, 123 million American go to work everyday, living paycheck to paycheck. Over 13 million of these people work in “alternative” job arrangements as independent contractors, on-call laborers, and temporary services. Additionally, in 2004 nearly 8 million Americans worked multiple jobs simultaneously—just to make ends meet.

Most Americans think a job is security. They are wrong. As long as you depend upon somebody else for your livelihood, you are a slave to that person and/or organization. And like a slave, you can be dispensed with as soon as they deem your services uneconomical. I suggest it is time to change the way you do business and start working for yourself.

Dependence is not security--independence is security. Don't sit back and relax in the pseudo security of a job or retirement plan. To achieve wealth you will need to learn how to accept and manage a certain amount of risk.

Success gurus like Anthony Robbins and Robert Kiyosaki teach that you have to get excited about wealth building to achieve success. What excites you about building personal wealth? How do you feel about poverty, or the lack of money? What motivates you to spend your free time reading books like this, studying interest rate tables, or analyzing stocks and real estate deals?

To achieve financial success you must get emotionally charged over something wealth represents. After all, it’s probably not the money you are after. You are after the security and promise of a better life.

Use these emotional tags to drive you to work while others sleep. Use your anger over working for an unappreciative boss to push you to limit your spending on frivolous doodads. Use your desire to achieve a better quality of life for your family as an impetus to analyze more deals, take calculated risks, and strive for more sources of passive and portfolio income. In the end, use your determination to achieve the independence and security of sound financial management and personal wealth.

Ron Taylor
Your Work Sucks Super Hero

No Job, No Problem!

Robert Allen discusses building an Internet marketing business in his book Multiple Streams of Internet Income. The Second Edition of this book is well worth reading.

While Allen does not put it in these terms, my description of this process below is based on his ideas.

You see, depending on your job as your sole source of income is asking for trouble. Gone are the days of lifetime employment, or pensions that make retirement worthwhile. To succeed in today’s financial market you must accept that depending on your job for a living is simply begging for a life of poverty.

In my Work Sucks blog series, I discuss the need for each of us to develop multiple streams of income. Imagine a trickle of water rolling off the rocks at the tops of a mountain. This trickle joins other trickles of water to become a stream. As the water flows off the mountain the streams join forces to create a river, and then flow out to sea.

Your income streams are like those trickles. You don’t need to look for a river of income from one source to create wealth. Instead, focus on finding a way to create a small trickle of income. For example, selling $100 worth of household items on Ebay every month. Add to that a trickle of income from selling $100 worth of used books on Amazon, perhaps $50 monthly from completing online paid surveys, and perhaps $200 worth of commissions from affiliate marketing sales. These four trickles of income have suddenly grown to a stream of $450 per month in income.

How many times could you repeat this process? And, how many streams of income would it take to equal your job income?

Look for the opportunity to create multiple streams of income on the Internet. Once you have reached a level that is equal to your job income you can either decide to quit your job or use this extra income to build a capital base for investing in appreciable assets such as real estate and stocks. The positive cash flow from these investments can then become a source of passive and portfolio income, as described by Robert Kiyosaki in his book Rich Dad, Poor Dad.

Opportunities to start creating multiple streams of income are everywhere. You just have to look, and then apply yourself to learning how to make them work for you.

Ron Taylor
Your Work Sucks! Super Hero

Work Sucks!

Warning !!

This article may be depressing. I just finished reading "Notes From The Underground" by Dostoyevsky, so I'm feeling a bit rebellious. To give you a taste of this blog without requiring you to read the whole flippin thing, here's an executive summary: Work Sucks!

For you non-executive types out there, here's the rest of the story.

Go to school, get a job, retire broke. What a vicious cycle. Would you like to:

1. Make real money?
2. Get out of debt?
3. Take more time off work?
4. Retire early—with money?
5. Buy a house?
6. Maybe even get rich?

Your job will never help you achieve any of these things. Sorry to clue you in to this sad little fact, but your job is not the answer to these questions. Let’s be frank—your job sucks!

But, for a few of us with a little initiative and a bit of vision, a home-based business may be the answer to those questions above.

By now you’re probably thinking you don’t have the business skills to be successful, or you don’t want to have to sell things. Hah, if you work at the mall or at the local fast food outlet, you sell things—only for somebody else. As for business skills, who gives a flip; Business majors are not brain surgeons—or even educators for that matter. I know, because I were one.

My degree landed me an assistant manager’s job at a hamburger joint you would know well, where I proceeded to waste six of the best years of my life. I told you I was stupid. It took me six years to find the exit.

As an Internet surfer and blogger you know a lot about business and social networking. Business is about creating relationships with people, and using your natural skills to make friends and maintain online relationships. Believe it or not, you have the ability to create a highly successful online business—starting from where you are at today.

Why let this natural talent and free resource waste away while you think about applying to flip burgers down the street? Forget it.

Working for the man is for losers too ugly or socially inept to make a friend. Who’s the man? He’s the guy that strolls into the store once or twice a week to pick up the bank bag you filled.

Do you have two friends? If so, you have the makings of a following. Now all you have to do is create a message, perhaps in the form of a blog, that others may learn from. You’re young, and I know you would rather spend time surfing the Net and making friends than sweating over a hot grill flipping burgers for minimum wage while some guy who barely speaks English tells you you’re doing it wrong.

If you are interested in learning about some amazing products or business opportunities, click on the names of the products below that interest you. Be careful to find an opportunity that suits your interests and goals:

Hinge Marketing

Automated Cash Formula

Run Your Car On Water

The Auto Cash System


Get real. There’s more to life. Starting today, resolve to learn more about affiliate and Internet marketing. Start putting your natural skills to work to create your own business. You can thank me later.

Blogs aren't the only way to make a living--but then again neither is flipping burgers. The key is, learn how to turn your blog into an Internet cash machine. Here's an idea, take this week's lunch money and invest it in your future. Go to Blogging to the Bank and learn how to make a living doing something you may enjoy.

Build Your MLM Business At 30 Day MLM Jumpstart

Ron Taylor