Yeah, sounds like Washington DC speak, right? “Budgetary shortfall…”
If you are taking in less money than you spend, you have a budgetary shortfall. A deficit. A hole. You may not yet be going into debt; you may be using available savings.
A short-term budget shortfall is sometimes necessary. Perhaps your car broke down and you needed a repair. Washing machine stopped working. Got laid off.
Nevertheless, a prolonged shortfall can wreak havoc on your household. What do you do?
There are two things you have to do in a lengthy budget shortfall. The first, and I think it’s obvious, is to “tighten the belt.” Cut out unnecessary spending. That cable bill? You don’t need it. Cell phone? Cut your minutes, get a new, cheaper plan (pre-paid is a viable option). Netflix? Can it.
But companies that sell you this sort of stuff have gotten smarter. They tie you into contracts with early termination fees. Cell phone companies are especially adept at this.
You can only cut your expenses so much.
So you have to tackle the other part of the equation:
Income – Expenses = Cash Flow
Obviously, you want a positive cash flow. Once you’ve gotten your expenses down, there’s only one thing you can do to make your cash flow rise: Increase your income.
Today, with unemployment higher than it’s been in my short memory, you are likely facing a layoff or salary cut. No increases are in sight for “Average Joes” so you best think of another alternative.
Do you have a hobby? Can you convert your passion into cash? (By the way, my hobbies are generally expensive, so I face a dilimma – cut it out or turn it into income?)
Do you have unique skills (you do, you just have to find them and monetize them)?
Can you hold down a second (or a third) job for enough time to even out the income and expenses?
I am convinced that the only sure thing nowadays is to own and operate your own online business. Become an “information marketer.” You know things other people don’t. If you have a penchant for writing, you can build a “small reports fortune” by writing short (5-15 pages) reports about your area of expertise. You can often sell these for $5-$27!
If your writing isn’t great (it’s way better than you think – just write like you talk; people like that), start up a private label rights business. Here, you acquire (often for free, sometimes for a fee) pre-written reports that you can call your own and sell them. Two other great sources are PLRWholesaler and PLRSO Club.
You can set up blogs and websites with AdSense ads (you get a few pennies every time somebody clicks on an ad). I have posts with AdSense ads on this blog. While I don’t make a ton of money with ads, the money they generate adds up.
Another way to build up an online income is become an affiliate and sell other people’s products. Commission Junction, LinkShare, Google, and many others offer affiliate programs. All you do is sign up, put some affiliate links in your blog posts or web pages, and wait for the commissions to come in. It’s not exactly that easy, but it is that simple. Of course, the more smart effort you put into it, the more money you’ll generate.
The best part about all of this? Once you set it up, it’s all pretty automatic! Of course, your web site, whether it’s a blog or a more traditional site, has to be full of content that people want. It’s not good enough to throw up some feeble content and then let the site go. Constantly update it; keep it fresh. Keep people coming back for more.
These are just a few examples of how you can create more income (out of virtual thin air). There are hundreds of ways to start a budding online business.
One of the best systems I’ve come across is the Internet Millions System. It’s a PLR product I bought, modified my way, and put together in a digital download. It shows you how to begin a Private Label Rights business – how to acquire product, promote it, get traffic to your web site, convert browsers into buyers, etc. Basically, everything is covered from start to finish.
If you are currently suffering a negative cash flow, I encourage you to act on the information you’ve read here. If you need any help, please contact me via the Comments.