Morning Folks!!
My dad who would have been over 100 years old once told me a story
that I have never forgotten. It was a simple story. It was during the
depression. Everyone was unemployed. The only food you would eat is what you may
have stolen or won in a craps game in the alley. It was a really tough time.
Comparing today to that is really not on the mark. My dad told me about one guy
who lived ok during that time. He would rent places for pennies. A couple
pennies here, a few pennies there. All day he would collect those pennies. What
separated him was income. No matter how small, active income is your single best
hedge against what is coming. Not Cash, not gold, not silver, not oil.
Income!
Now that even domainers are taking this crisis seriously there is much talk
about investing in gold, buying foreign currency and alike. If governments begin
to lose control some very ugly things can happen. Things I won't even write but
you sure as hell can't stop me from thinking about.
about investing in gold, buying foreign currency and alike. If governments begin
to lose control some very ugly things can happen. Things I won't even write but
you sure as hell can't stop me from thinking about.
The best hedge against everything we are about to go thru is INCOME. Income
trumps dollars saved. Lots of people have lost many millions in the
last few months. I am hearing many stories about filthy rich people that are
months away from being on the street. These are real stories and they are not
isolated.
trumps dollars saved. Lots of people have lost many millions in the
last few months. I am hearing many stories about filthy rich people that are
months away from being on the street. These are real stories and they are not
isolated.
Lean and mean is the way to survive. All recurring bills that are not
needed should be canceled. Any overhead that you can cut turns a liability into
income and that translates to more buying power and a stronger position. There is nobody that knows how all this will manifest itself. We are
still just entering very dangerous waters. The full fury of the storm has yet to
hit. The only way to survive and thrive is to be a few steps ahead of things.
Have income that comes in at the worst of times. If that spigot shuts down,
collapse is not far behind.
needed should be canceled. Any overhead that you can cut turns a liability into
income and that translates to more buying power and a stronger position. There is nobody that knows how all this will manifest itself. We are
still just entering very dangerous waters. The full fury of the storm has yet to
hit. The only way to survive and thrive is to be a few steps ahead of things.
Have income that comes in at the worst of times. If that spigot shuts down,
collapse is not far behind.
Have a GREAT Day
Rick Schwartz
Rick Schwartz
Peter
income is good, but for everyone to have income, others have to keep spending… it’s actually not good for the population to reign in spending too much, because it makes the economy sputter even more.
just live normally is my advice – within your means of course, but there is no real reason to tighten belts too much. if everyone does that it just makes things worse….
Troy
Rick,
I like you. You have courage to say things that other think are a little extreme. I agree, it’s all about income, and when it comes to income, income of the residual nature is the best.
SkyDomains
Rick,
For a big shot like yourself. It is really an eye opener to read you give some grassroot advice. I take the quote below to heart and I thank you for it.
“Lean and mean is the way to survive. All recurring bills that are not needed should be canceled. Any overhead that you can cut turns a liability into income.”
Everyone wants to read about how to make a million dollars on domain names. Sometimes especially in times like this, you may just need to save a dollar a million times
Johnny
That Rich Dad/Poor Dad book says this also. That is where I first heard it and it sank in.
In that book he breaks your life into to tables….right side is what you have to do to make the bills, left side are the income-producing assets you are acquiring….and as you keep acquiring the assets you slowly gravitate away from the right column, which is essentially the”job” column.
The rest of the book is kinda’ useless…but that concept, however basic, is really strong.
If you set up a formula of more coming in than going out….then you are more protected than having a lot of cash and no income.
Kristoff
Rick,
While I find some of the recent commentary overly melancholy at times, I respect your straight dope approach.
It’s coming from a place that’s honest. (Can’t say that about everyone.)
You’ve got a fount of genuine ideas and opinions…thanks for sharing them.
Accounting 101 folks…
Every balance sheet has 2 sides. Keep adding income-producing assets, mitigate the liabilities, and watch your equity grow.
EM @KING.NET
I started last year cost cutting my operations expenses. For example, downgrade my hosting from dedicated server to virtual dedicated server save me $$$ per month. Changed Vonage by MagicJack, save me $300+ per year, etc.
Limit spending, stay in control to all expenses. I will be alright.
Managing time effectively, reduce spending time in forums and read more Rick’s blog (as my motivational daily read).
Cheers,
EM @KING.NET
RegFeeNames.com
Im 100% behind you on this post Rick.
I havent been in the game for that long only a few years but one thing I have learned really in the past 36months is you need to make cash to surrive.
This isnt my main job as I have stated before so I wasnt really looking for major income – I sell names all Hand Registered for $$$,$,$$$ & $$,$$$ each year and makes nice income – Broker a few deals here are there and make $,$$$ & $$,$$$ on some deals which is great but I didnt look at my portfolio for steady cash now I have.
I have turned away from Traditional parking and went into the minisite / adsense market in the past 6weeks and the results – STEADY DAILY INCOME.
It wont work for everyone but in times like this people need to change and look into the future and this is one thing I have done.
Cash is King people dont ever forget that!
Regards,
Robbie
JoeP
Right on, Rick. To put it more abstractly, the issue is STOCKS vs. FLOWS. In hard times, marked by lower rates of return on capital, your income streams become relatively more important. Even in”normal” times, income flows, if reliable, count for more than people generally realize. That’s because capitalized values are an abstraction requiring calculation and are not directly experienced and”felt in the gut”. As you emphasize, to fully understand the relative importance of income is especially relevant in a depressed economy.