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The Psychology of Making Money

Discussion in 'Making Money' started by SquatsDidThis, Feb 15, 2016.

  1. SquatsDidThis

    SquatsDidThis Newbie

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    I believe this is probably the best place to suggest this. If not, please let me know where this should be posted.

    I wanted to discuss the psychology of making money, and why many people get stuck. Society tends to make us believe that we should all invest the money we make. We all want to make our money passively, and I'll certain agree with that. However, we are led to believe that the best way to do so is to invest in traditional investment vehicles. What do they usually yield? Would I be correct in saying somewhere around 5-10% per year?

    If I only had $100 (let us use $100 throughout this post to ensure most of us are covered) today, I would need to invest it over 100 years based on the above mentioned investment vehicle in order to make $1.4 million dollars.

    To make things more interesting, we begin to look at compounding. Which is making money on top of the new value you already have. So, if I started with $100, this does not stay as the base investment throughout the investment period. We can now look at this completely differently. The number of years no longer matters. It is now the number of multiplications that matters.

    The problem becomes interesting. Investing $100 to make $1.4 million dollar's in 100 years is unworkable. But to make $1.4 million in 100 week's or just 2 years, now it gets kinda exciting doesn't it?

    Now we think: "how can I invest $100 at the beginning of the week and end up with $110 by weekend?" Because if I can do that, there is nothing stopping me from making $1.4 million dollars in 2 years. The reason why is because the proportional increase will always remain at 10%. So if you're starting with $100 or $100,000 you are looking to make 10% per week.

    Have you digested that? Open up an excel sheet and do the calculation for yourself. It should look like this:

    Week 1 = 10% X $100 = $110
    Week 2 = 10% X $110 = $121
    Week 3 = 10% X $121 = $133
    Week 4 = 10% X $133 = $146

    Based on this, you should be able to reach $1.4 million in less that 2 years (104 weeks). Essentially you want to look at business model's that are automated or semi-automated and that is a big clue. Because if it isn't automated you must start from scratch every week. But if it is automated, then it becomes passive and that means you can add to it every week. So the one big answer that I can give you is look at the Internet. The Internet's very nature is that it is automated. It's like one big vending machine and all the user's do all the work themselves and serve themselves.

    So here are 3 way's you can consider.


    Ebay


    You can look at purchasing thing's for under value and resell them for 10% percent more after all cost's. In this way you can progressively trade up and up from cars to land to houses to businesses.


    Articles


    Buy 300 word articles for $5 and submit them to article directories on the Internet. You leave a link in the article going to a vendors site that you are an affiliate of. Say 100 articles bring in $1000 of commission's that means your return is 100% So with your $100 you buy 20 article's which give you a return of $200, then you buy 40 more article's that give you $400 and so on.


    Advertising


    Advertise the products of a vendor you are an affiliate of. Google Adwords, MSN adcenter, and Yahoo advertising all provide a way to place a small ad in their search results. So when someone searches for "blue widget" and you sell blue widget's you will be right there and get the referral commission. If you spend $100 on advertising and get a return of 50% you can easily compound that money into $1.4 million dollars by adding to your advertising and finding more and more products to represent.

    If you have any comments or questions, please use the comment section below for everyone's benefit. Do you have any other ideas we can all pursue to get started on our $1.4 million dollar journey?
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  3. Bionaire

    Bionaire Junior Member

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    I love how that's the only thing you actually wrote here. Stop fishing for gold because you aren't going to get any.
     
  4. TayaX

    TayaX Jr. VIP Jr. VIP

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    This math is a fail-recipe.

    Putting all your money back on the table everyweek & risking your whole asset is plain stupid.
     
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  5. uristjack

    uristjack Junior Member

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    This.Also, good job, OP. Do your fingers hurt? You know, with all the "Ctrl+C" and "Ctrl+V"ing?Because it's a lot of work, being able to press 4 buttons.
     
  6. AlphaWulf

    AlphaWulf Registered Member

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    Definitely not a good idea to re-invest all of your profits every week. That's how you lose it all.
     
  7. BlackBDO

    BlackBDO Jr. VIP Jr. VIP

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    Haha, good luck making from $1mil to $1.1mil in one week :)))