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How to Be Your Own Boss with Little (or No) Money

How to Be Your Own Boss with Little (or No) Money
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It is easy to get sick of the grind: the dismal 9-5 system. Maybe you spend too much time for too little money. This is so ingrained in our minds that any alternative way of making money or becoming our own bosses seems to be a Herculean task. However, this difficulty is illusory. The secret to being your own boss and making decent money relatively easily away from traditional work may just lie in network marketing.

What’s Network Marketing?

Network marketing is a popular method of business and an alternative form of product distribution.[1] The traditional method of distributing products to customers is one we’re all pretty familiar with. Products are manufactured somewhere, then sent to a distributor who sends it to stores to be brought by customers. Its relatively straightforward and lots of people profit along the way. However, network marketing provides a different system.

With network marketing the distribution is done through a network of agents who market the products to other individuals. These agents may have other people under their leadership who market goods to others. Profit is made via direct sales and distribution of the products.

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“Wait. Is this a….?I know what you’re thinking. “Pyramid scheme”, right? While they are admittedly similar systems, there is one crucial difference.

Pyramid schemes focus on the money being made through the recruitment of others. These people may be duped into thinking that through the pyramid scheme they will easily find their fortune, when really they are just the means for others to make money. With network marketing the focus is on selling and distributing the products- not the recruiting of others.

It can be such an effective system that some very well-known companies operate and sell their products through network marketing. One of the most well-known examples of this is Tupperware.

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The good things about network marketing:

  • Why should you consider network marketing? For a start, it gives you a degree of freedom that an ordinary 9-5 job can’t possibly offer.[2] To an extent (meaning you’ll still need to get things done), you will be able to tailor your marketing around your life, working from home as you do so. There is no income cap. If you get really good at selling you will earn more money.
  • You’ll be your own boss without worrying about hiring and firing because there will be no employees. Whilst you may form relationships with other agents and marketers, you won’t need to worry about paying wages and all of the other responsibilities the boss of a regular business must handle.
  • Even when you’re not on the clock you will still be able to generate income. Network marketing relies on it.[3] You’ll be able to benefit from residual income if you help others start in the business.
  • Many of us have had to suffer the pains of being laid off or fired.
    Assuming you are successful at getting your network marketing business off the ground, you will have unbeatable job security. You’re your own boss after all!

The not-so-good things about network marketing:

Now before you think I’ve drunk the cool-aid and am now off to start a pyramid scheme, there are some negatives that are very much worth consideration. The most obvious is the clear similarity to pyramid schemes. If you do plan to involve yourself, you need to be sure that you are engaging in a legitimate network marketing system – not a pyramid scheme which is illegal. This will require significant diligence and research on your part to be sure, but a good rule of thumb is to note how the money is made.

The Federal Trade commission says the following about the difference between network marketing and pyramid schemes:[4]

“They all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program- not based on profits from any real investment or real sale of goods to the public.”

However, with direct marketing, the focus is money made via sales – not recruitment. When it works, network marketing can be hugely beneficial for all parties involved.

There are other considerations too:

  • Most sales you’ll make will be face to face.[5] Only a small fraction of sales through network marketing occur online and instead will be face to face or over the phone. This is something you’ll need to be comfortable with.
  • Even if you are comfortable with selling face to face, you will have to get used to rejection.
  • It is not usually a get rich quick scheme. It can take time and some investment to set up and even then you’ll be competing somewhat with other agents. Although it’s possible to make a lot of money, it probably will not happen fast.

So, how do you start?

The good news is that getting started in network marketing is a relatively simple process.[6]

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Firstly you need to decide on a product that you want to sell.

A popular choice is nutritional products.[7] Initially you will have to invest some money to register with the company and buy the product you wish to sell.

These prices can vary but often begin around $100. Companies like Tupperware, who are built around network marketing, offer down payments. Considering the amount of money they charge to get started is crucial because whatever is required you will have to recoup before you can make a profit.[8]

Many people are experienced and successful in network marketing and can serve as mentors.

It is advisable to listen to what they say. Companies experienced with network marketing will likely have systems in place to help you get started. After all, you’re part of the way they will make money.

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Spread the word that you are in business.

You should consider building a website, or market through social media, classified ads, and even to friends and family. (We’ve all heard of Tupperware parties which for all intents and purposes, are super-casual trade shows.)

After considering this information, all you need to do is select your company and get selling!

Reference

More by this author

Arthur Peirce

Lifestyle Writer

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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