Multiply your money with the multiplier effect, hear about the hot dog response to low priced oil, and find out how to stop feeling broke.
The Multiplier Effect-Episode 5
Entrepreneur Magazine.com’s article, “Want to Make More Money? Understand the Multiplying Effect,” by Stephen Key inspired us to check out the Multiplying Effect.
This clever topic introduces ways to multiply your wealth and help it to grow. Scalable is another term used to describe activities which can be done once with many future pay-offs.
Today we dig into how to multiply your money along with your earnings so that your one-time actions will give you more than just one pay-off.
Here are a taste of the ways to multiply your money covered in this episode.
Investing is a simple strategy to multiply your money:
- Leave the money invested
- Reinvest the dividends and capital gains.
- Over time, the initial investment is worth more.
Online business can be created to throw off income with minimal efforts:
After buying a franchise, you can hire the running of the business to others and enjoy the cash flow. Successful franchisees may purchase multiple franchises.
Online website affiliate models allow you to sell others products and reap a commission. Once the model is set-up, the affiliate payments continue without much additional efforts on your part.
James Altucher talks about stretching your idea muscle. Come up with lots of ideas and from the massive list will come a winner or two. He suggests keeping an ongoing idea list, to stretch your idea muscle.
Bobby talked about his ideation studies from his graduate program at Syracuse University.
The end goal of all of this idea creation is to find idea(s) that you can monetize that can make you ongoing income streams, without much oversight.
We haven’t seen falling oil prices in many years. We talk about the impact of this trend from several viewpoints.
What do hot dogs, coffee and oil have in common?
Bloomberg.com discusses, “Hot Dog Prices More Stable Than Oil – Spur Shell Expansion” in an article by Tom Beardsworth and Jill Ward.
We riff about what can oil companies can do to boost profits. With oil prices declining, Shell is looking to sell more hot dogs and coffee. And you know what? Shell’s retail business is doing just fine. So you may be saving money at the pump, but giving it up as you buy that hot dog.
Find out what Bobby and Barbara think about this trend. Will it continue? Learn about their thoughts on lunch at the gas station.
What’s the shopping climate like in Russia?
Russian currency is falling….. fast. This drop is caused by Western sanctions and falling oil prices. These scenarios led to panic, which caused the ruble to fall even more.
Russians want to get their money out of the country as it’s value continues to fall.
Here are the impacts of the falling ruble and lessons about a deflationary environment:
Apple stores shut down and stopped selling its products online. The company said that they needed to “review pricing”.
The wealthy are buying luxury goods during the currency crisis such as cars and tangible assets before the value of their money goes away.
Ikea decided that it wouldn’t immediately raise prices. That meant consumers could pay the same price as before with cheaper dollars and get their furniture almost free!
We talk about more about the perils of deflation and whether this could ever occur in the U.S.
This segment was influenced by another BloombergBusiness story, “Shopping in Russia Just Got Really Weird“, by Natalie Kitroeff.
3 Ways to Stop Feeling Broke
We all feel broke once in awhile. Sometimes it’s true and other times it’s just a mind trick. Find out ways to feel less broke, inspired by Yahoo.com’s, Money Minute: 3 Ways to Stop Feeling Broke, by Mandi Woodruff.
How to feel less broke:
Adjust the bill pay cycle so you don’t have to pay all your bills at the same time of the month. Learn how to implement this strategy in this podcast episode.
Stick to savings goals by naming your savings accounts. For example; vacation fund, emergency fund, new car fund, retirement fund etc. Don’t forget to automatically transfer money from your paycheck directly into your retirement savings and other accounts.
Take a social media break right now. This will reduce your ‘other envy’. By looking at others you may cause yourself to feel bad and jealous. Be grateful for what you have, instead of looking at what you lack.
Multiply your money so you can make the work you do count for more.
Recognize the global impact of falling oil prices. Be aware that in economics, anything is possible and you may one day experience deflation, just like the Russians.
Don’t let your behaviors cause you to feel broke. You can counteract that broke feeling.
(Featured image courtesy of jeepersmedia on Flickr)