Financial success starts with a savings habit. The earlier you start in life the better because you have more time to let your money grow. Think about, most business started with their owners saving cash and taking the risk. Not everyone wants to start a business, but for people who are not interested in starting something from scratch there are other ways to make their money grow like investing in the stock market or buying properties to rent them. Some people decide to develop royalty generating assets like myself and use the money generated to fund other projects and invest.
I started with nothing but $100 dollars to pay for one year’s worth of website hosting and started to build blogs. Eventually, some of the blogs I created started to generate cash on their own. I own a blog which I haven’t posted for almost a year and it still generates revenues even when I haven’t even looked at it for months. The point is that the money my sites generate is used to fund my investments turning everything into a cash generating cycle.
Here is how I turn my online business and investments into a cash generating machine. My sites and articles that are hosted on revenue sharing sites generate income which I invest in stocks, bonds and other securities. Additionally, most of the stocks I own pay dividends which are reinvested automatically into more shares or partial shares of the same company to yield even a higher dividend next time around. Every month that passes by my income grows even when my sites don’t really make a lot of cash. Using this approach I concentrate on writing in order to generate more online income that is to be sent to a brokerage account. When I have a break I research companies that are fairly stable and that have been paying dividends for many years and wait for a buying opportunity before making a move. My TD Ameritrade brokerage account is set to automatic DRIP (dividend reinvestment program) so when one of the stocks I own pays a dividend, it is automatically reinvested into more shares or partial shares of the company. The net effect is that while I work to increase my online income, dividend payments increase on their own.
If I find that one day that my blogs and articles stopped generating income I will still have my securities generating cash for me. Diversification is key in everything that has to do with business and investing.
What does all of this have to do with a savings habit? What makes my income grow is the savings habit since I don’t touch most of the money generated by the sites nor the dividends; practically everything is reinvested. Not to mention that I send money to my brokerage account from my bank account on a weekly basis even if it is a small amount. Again, it all starts with a savings habit and a healthy dose of frugality.
Note: Building blogs that actually make money can be confusing especially if you start reading make money online blogs that start selling you useless ebooks. Luckily, I was able to find the right path and learn some skills that were necessary. If you are interested in writing for money you can start learning basic SEO and using pay-to-write sites like Demand Media, Triond, Bukisa and of course Infobarrel to start accumulating cash generating articles and collecting royalties. After you learn some SEO you are ready to start building your own blogs to make cash from them. SEO is not really difficult to learn like those that charge people $50 to $100 dollars an hour claim it to be.