It’s always funny to me all the affiliate marketers who post photos of themselves with bling, money coming out their month, and then post a photo of their 2002 Toyota Camry. It makes you wonder first how much money they are really making, but more interesting, what exactly they are spending their money on. It seems to me that something isn’t right here, if they are making money, why are they having trouble paying repair costs on their clunker?
As I’ve mentioned, I’ve made a lot of money in this industry, sometimes millions a month on CPA Arbitrage, CPA brokering. From making money, I’ve made a lot of mistakes that have cost me a lot of money also – and those lessons are worth almost every dollar that I lost. I thought I’d share a bit about what I’ve learned and hopefully some affiliate out there can think about.
- It’s not how much you make, its about how much MORE you make. Having a good lifestyle is not how much you make total, but how much extra you are making. If your cost of living is $2,500 a month and you are taking in $10k a month, which means you have $7,500 before taxes to spend on whatever you want. You can get a loan on a $1M house for $4,000/month if that’s the most important thing you want. Think about it.
- Save Each Month. Put aside a set amount of money each month, I recommend 10% of your income. This means no matter what 10% should be going to to savings that you don’t touch, except to make smart investments outside the industry including buying a house. I keep on mentioning a house, because right now housing prices are at a all-time low. Did you know that if you put only $100/month away for 10 years at 5% yield, you’ll get $15,00. Increase that to $500/month and you’ll have $77,000+. How about $500 at 30 years, it’s almost half a million. Make some good investment choices with that money, that $500/month in 30 years alone is $1.1M.
- Keep to a Budget. Decide what you’ll spend on essential needs, don’t touch that each month, then do your savings, and then figure an amount you’ll spend on “fun.” Never go over that amount. People don’t realize how things add-up. You’ll think spending a few hundred here and there isn’t much, but then you’ll get a credit card bill and realize that you spent thousands.
- Open a Corporation/LLC. Simply put, you need your company to pay all business related expenses before you get income. Figure an amount to pay yourself each month on the budget you determined, don’t use the business for personal expenses ever, and then pay all business expenses out of the business. I’m going to talk more about taxes on a later date.
You’ve probably heard the stories: Guy wins $1M, and within 24 months he has nothing. You need to realize when you make money in this game, the best bet is to save, budget and plan. While I’m not going to tell you not to ever waste the money on “silly things,” I am going to tell you from experience, you need to make sure you thinking about what you are doing, and make sure you can really afford it.