Make $5000 NOW!

Make $5000 NOW!

Now I have your attention :) lets remind ourselves of the aim of this mastermind group is to teach people how to become financially astute, educated and wealthy. The overall goal of the site is to teach you how to become financially independent. How to make more money & then have that money work harder for you.

However to get the ball rolling will require hard work and effort, here is a simple method to get you started “earning” those first few $1000. In the goals section I explained that although we need an overall goal “I will be financially independent in 5 years” its best to start with “baby steps”. Small S.M.A.R.T steps that are achievable.

The first, easiest step is to make better use of what you already have. Every $100 that you possess is net of taxes. To earn a $100 NET has actually cost you $120, $130, $150 or more depending upon your tax situation, therefore it is imperative that you make this net amount work much harder for you.

The first goal then is to free up more of what we already have within our control THEN look at ways to use that money to make more. We are not here to give you tips and tricks on saving pennies by switching brands of tinned beans and toilet rolls, BUT there are ways of making BIG savings NOW that will help towards the initial goal of having a greater amount of money available to invest in new income streams.

Often the saving bit is the easiest as it only takes a little effort on your part BUT there is of course a limit whereas there is NO limit on how much extra you can earn as long as you create the right systems. To do that we are going to major on three sectors

  • Create more cash – make the most out of what you currently have.
  • Learn how to earn more money- The initial goal is earn more. The longer term goal is to create passive income from multiple sources.
  • How to make your money work smarter.

The rest of this site is devoted to showing you how to make more money & then profitable ways to make it work harder for you, but the first baby step is to review your current situation and make better use of your net disposable income. If you can save $150 a month that would be a great start for most people?

Step one will concentrate on keeping & freeing up more of your net income.

Lets start small. The goal at this stage is to save $150 per month/$1800 per year NET. This figure pre tax is worth over $2000 a year.

Breaking that down into smaller, more achievable, goals, $1800 a year is only $5 a day. Unless you are currently destitute then everyone should be able to manage that. This goal is actually achievable by making small daily sacrifices, eat out less, cycle instead of car trips but in truth most people don’t want to and that’s not our aim here.

There are 1000’s of sites on the internet that will give you tips on how to save pennies here and there. Ironically, British guy Martin Lewis, the owner of one, sold his website for $110 MILLION so there is obviously money in penny pinching :) AND a huge demand for that type of advice. If that’s where you want to be then just get googling: learn how to buy supermarket own brands, eat out less, take a packed lunch to work instead of going to Starbucks etc – they are all valid points and there was a time in my life when I was on the verge of bankruptcy that I did that and more BUT it was a horrible time in my life and not one I would wish on anyone.

If you are in a similar state at the moment then obviously you need to cut everything to the bone but for those of you who are getting by, maybe living month to month with the assistance of credit cards, but not having such a bad time then the idea of embarking on an austerity budget will have the same effect on your psyche as going on a crash diet. Most will fail in the first month and after the 1st weeks euphoria “ I saved $17.65 by using coupons and taking packed lunches to work” the vast majority will understandably quit.

My philosophy is this. Life is to be enjoyed not endured. I do not want to do with out the things I like and why should we?

What I am interested in doing is spending a few hours on the phone and saving myself $100’s in one go. Yes I know “look after the pennies and the pounds will look after themselves” is good advice, but guess what – Its BORING. Here are a few suggestions on making some big savings just from spending a morning on the phone or if you are shy then you can get results (though generally not as good) via the internet.

Negotiating a better deal.

The crucial thing to realise here is that every new customer costs a company money to acquire, in advertising, sales peoples expenses as well as administrative costs. Armed with this knowledge your aim is to “tap in” to that budget. Here are the figures from a survey by Andera & Corelogic that reports: the average cost to a bank for a new customer in the USA is $350 and will be similar in most western countries at least


Also as the economic crisis bites even harder there will be fewer people working which means all companies are fighting for a smaller group of people who can afford to pay for their services. Therefore all businesses have a sales division whose goal is to attract new customers, BUT they also have a separate “exit division” whose job it is to “SAVE” customers who are threatening to leave.

Negotiating Better terms With Your Bank or Moving to Another

Recently I changed banks. Spanish banks are not very competitive and mine had recently charged me $150 to RECEIVE $20.000- they have been doing this for years and unless you go in to the branch and complain they will not waive it. The manager says that he can only give me a $120 refund (it was worth the visit but still not right) but $30 is the minimum he can charge. I threaten to take my personal and business accounts elsewhere.

The manager promised me he could do no more, but my kids did some research and found that one of the newer banks was offering 12 months no fees & other benefits for business accounts for new clients. Across the various accounts that would save me around $1000 AND they offered me a better exchange rate, not great but better.

Next I went online and looked at They offer a free account for international banking. Much better exchange rates. No fees to receive money and $5 to send money, any amount, anywhere in the world. Estimated saving for the year due to improved exchange rates & international transfer fees: over $1000

At the last minute (exits division) my existing bank suddenly came back to me with an improved offer. Had I stayed with them I would have saved at least $500 a year, but changing banks was going to save me a lot more and, to be honest, I was sick of their attitude.

Some people don’t like to negotiate in the flesh, via phone is easier, be prepared and polite and do some research first eg “xyz bank is offering me”….

Other Potential Big Savingstips

Find a Better Mortgage Deal. I know that its harder to borrow money at the moment but there are deals out there, especially for those of you who may have already paid off a substantial amount of your current mortgage. In general lenders will lend to those with a good credit rating and especially if you are only requesting a low loan to value ratio.

If you are currently more than half way through a 25 year mortgage then you will have paid off a not insubstantial amount, and inflation, even allowing for the crisis, means that your house is worth more than you paid for it. If you need less than 60/70% then the chances of a deal are much better.

You could also of course use this strategy to release some funds perhaps to pay off other, higher interest debts like credit cards OR to provide funds to start a business. Interest rates are so low now that taking on debt to make money elsewhere is not unattractive. If you can borrow at 5% and make 10/20/30% elsewhere then that is one of the ways the rich “leverage” their wealth

If you are renting renegotiate your lease terms

In view of the current financial crisis, rents in many areas are going down, not up. Once again its essential that you do your research first. What are similar units in your area letting at per month? Do any have a free rental period as an incentive? Are there better, cheaper rents in areas that have improved since you first signed your current agreement?

There are a lot of empty, new build apartments where I used to live that builders can not sell. They are renting out at not much more than a 100 year old house, they have all mod cons, security is better, they have car parking, communal gardens, they are cheaper to heat and insure and a more pleasant environment AND they are giving a month free rent at the moment to attract clients.

Investigate all the possibilities before speaking with your landlord, including the possibility that you may have to move elsewhere to save money. If you are a good tenant, who pays his or her rent on time and generally doesn’t cause the landlord problems, you have a “value.”

Why Would Your Landlord Agree to a Discount?

I am a landlord. Whenever a tenant leaves a property it costs me money in terms of lost rental income (it is very unusual to have one tenant move out and another in on the same day). In my experience the average rental lost is a month, hence 8% of the annual rental.

Therefore if I agree to a 5% reduction in the rent I am still in profit for the next 12 months. There are further things I need to consider. Often when one tenant leaves and another moves in there are cleaning and minor repair costs AND new tenants will often negotiate more strongly than existing ones, perhaps for lower rent, redecorating or new carpets or additional items.

Finally if the tenant I am going to lose is a good one, the new one may not be. References can be very misleading and sometimes bogus, and I can never be sure that I am not about to inherit the “tenant from hell.” Therefore a 10% reduction might not seem to be such a bad decision.

For example I have a retired gentleman who rents an apartment from me. He is an awesome tenant. He looks after the unit as though its his own. He even rings me the day before the rent is due to remind me to collect it! Since he started renting from me 4 years ago the price of rental property in the area has dropped by some 15%. Is it worth it to me to accept a reduced offer from him? Absolutely.

Remember, “ALL clients have a value be it cost of acquisition or cost of replacement” – there is of course an exception to the rule “ A BAD client is worth paying/accepting a loss to get rid of.”

In part 2 I will offer you lots more potential savings that you can make. In the meantime look at your monthly expenses and see what savings you can come up with and add a comment at the bottom of this article. Share your results.

As I said at the beginning of this article, the aim of the “Winners Inner Circle” group is to MAKE more money & take steps now to improve your financial future. This is a baby step, BUT the extra cash you can generate from a few hours work could take you 100′s of hours to earn. TAKE ACTION.

{ 1 comment… read it below or add one }
January 31, 2013 at 10:30 am

Hi, member Stephanie from the UK tells me that she recently managed to claim over £1500 from the government for “child care tax credits” – apparently in the UK if you are paying for childcare and jointly earning less than £42.000 per year you may be entitled to claim it. You can claim up to £210 per week for 2 kids so its definitely worth checking out. Here is the link to the UK Government site:

If members know of anything similar in their country please add your comments below here, regards

Author: Marc Walton

click here to go to part 2 of this article: Make Easy Money, Part 2

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