The Millionaire Secrets

Hi, welcome back to part 2 of The MONEY TREE Formula. First, do you know who is Warren Buffet? I’m sure you know who he is. Warren Buffet is the smartest stock picker in history, he is the richest investor with a net worth of tens of billions. What if one day Warren Buffet himself call you on the phone and told you that which stock is going to rise dramatically, he told you that he had invested all his money into that single stock. What will you do? Are you going to follow him or are you going to say sorry to him and turn him down? Well, I’m not Warren Buffet and I’m not brilliant investor. But what I’m going to share with you below is the MONEY TREE Formula presented by Robert G. Allen, I hope that this will help you in you financial road.

The first step to picking the right income streams is to pass them through the filter of the MONEY TREE Formula - The nine essential characteristics of the ideal income stream. Having a MONEY TREE assumes that you have continuous streams of cash flow which is in autopilot, or in other words, without your presence. To do this, you must be in a position to control, to create and own that stream of income. You may still retain your employee position, but on the side, as a way of protecting your long term financial future, you need to create additional streams of income, as soon as possible. You cannot only depend on your job salary, this is because working for someone else is not secure anymore. It’s just the illusion of security. We won’t know when we will get fired or when unfortunate things going to happen and we will lose our only secure job.

MONEY TREE - M stands for : Multiple Streams of Income

The first thing to do is to add another stream of income to your life. This will work as safety net for when one of your stream dries up. You can choose to start your home based business, which should be a source of more than just one stream of income. It should be eventually a source of Multiple Streams of Income all by itself. For example, suppose you’re considering buying an existing restaurant. What possibility will you have to grow?

* Can you add more shops?

* Can you franchise the business?

* Can a food entrée of yours be sold nationwide as a frozen item?

* Can you license your special cooking secrets to other restaurants?

* What about bottling and selling your special sauces?

* What about a cookbook?

Get the drift? Don’t even consider a business that doesn’t have expansion potential for additional streams of income. That’s why the first M in the formula reminds you of Multiple Streams of Income.

MONEY TREE - O stands for : Outstanding Product or Service

Well, if your product or service or information is not excellent enough, most probably you will become casualty of the competition. The reason for planting money tree is to do the work once and enjoy the fruit (money) for the rest of your life. It makes no good if you create a business and in the end have it succumb to competition. In order for your stream of income to survive through recessions, you must choose a product, service or information that will stand permanently and perpetually profitable. Only then during tough time, you can survive your stream of income. People will gravitate either to price or quality in tough time, so don’t get stuck in the middle, that’s confirm a disaster formula. Do not compete your price with the rest of the world, make sure the quality you produce is outstanding, and the best is, fair price. Therefore only you will succeed for the long term.

MONEY TREE - N stands for : Nothing Down

Ok, why nothing down? Well, it is not necessary have to be all zero down, but as little of your own money as possible. For average person, they don’t have a couple of hundred grand lying around waiting to invest. What if you have a lot of cash, should you invest in business to match your money and launch in? Suppose you want to buy a hot franchise, you will then need to purchase inventory, the franchise rights, equipment, and many other things. For most franchises, you will tie to a business of 12 hours a day, manage your very own business. What do you get in the end? You spend tens of thousands of dollars of your own money just to buy yourself a job with a lot of risk. That is why you need to choose streams of income with little or nothing down.

MONEY TREE - E stands for : Employee-resistant

Yes, you read it right, it’s Employee-resistant! We don’t want to be employees, they are dangerous! It will make you entitled to your jobs (”You can’t fire me. I own this job.”) What you want here is to find a home-based business that can be done by yourself, with a very low employee to income ratio. The story from Robert Allen :

‘I used to be the president of a seminar company with over two hundred employees. I made the decision to downsize when one of the employees sued me for age discrimination. He was in his late sixties when he came to work for us, and when we laid him off during an economic downturn he slapped us with a $500,000 lawsuit. We settled out of court for $2,000, but that was the last straw. I decided to never again put myself in a position where one disgruntled employee and a smart attorney could take it all away. Today, I (Robert Allen) have zero employees. I make as much today as I used to make with 200 times less hassle. I like it that way. All of my streams of income can be monitored (in just a few hours a day) from a telephone anywhere in the world.’

So now you know why it is Employee-resistant. Try to find Money Tree businesses that don’t require any employees, and then you don’t have to worry about either hiring or firing.

MONEY TREE - Y stands for : Yield

The Streams you choose should be of high yielding, high profit cash flow. Here is what Robert Allen going to say:

‘Five years ago a friend of mine, Collette, started such a home-based business. In less than a year she was making about $10,000 per month. What’s more, this business was a Money Tree business. It generates cash flow even if she stops working! But why stop when she is having so much fun? Today, after five years, she has grown her business till she now earns over $500,000 a year net, net, net. What’s the yield on that kind of income? It’s the equivalent of having TEN MILLION DOLLARS in the bank earning only 5% interest! That’s my idea of yield. In my Multiple Streams of Income book I share exactly how Collette did this. I also give other businesses that meet the same kinds of Money Tree characteristics.’

Read: The MONEY TREE Formula - Part 1 and The MONEY TREE Formula - Part 3