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TipsForSuccess: How to Spend Money to Make MORE Money

 

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How to Spend Money to Make MORE Money


Spending money is a skill. You can spend with intelligence or stupidity. You can use your money to increase your financial worth or you can just waste it.

Businesses that spend money intelligently make more profit. Their employees earn higher salaries and their customers get better service. Businesses that spend money foolishly cannot afford top employees who produce high-quality services or products.

Your personal spending habits can make you rich or poor. For example, a married couple accumulates over $2 million during their working years with intelligent spending. Another married couple, with a similar income, have no savings when they reach their 60's because they never knew the principle that is covered in this article.

The way to spend money to make money is by using the "Bean Theory."

"Finance is best understood as a COMMODITY* in terms of beans." "So many beans issued to an activity and so many more beans back." -- L. Ron Hubbard (*Commodity: An item that is bought, sold or traded.)

In other words, you look at your cash as a bunch of beans. You trade those beans in a way that gives you MORE beans than you started with.

Bean Theory Examples

Example #1: You buy a $2500 stereo system with a credit card. The stereo system makes you no money and loses value over time. You pay $2000 in interest over five years before you pay off the credit card debt. For 4500 beans paid out, you get no beans back and have an asset worth 1200 beans or less. Bad spending.

Example #2: You buy a small old house. You pay $25,000 as a down payment and a home loan for $75,000. You invest $25,000 in upgrades and repairs. Over three years, you pay $13,000 in interest. You then sell the house for $160,000. For 25,000 beans for the down payment, 25,000 in repairs and 13,000 beans in loan interest, you get 22,000 beans after the loan is paid off. You also lived in the house for three years which saved you 12,000 beans in rent per year. Total profit of 58,000 beans. Good spending.

Example #3: You spend $500 to learn how to create websites. You enjoy the work and create some brilliant examples. Your friends ask you to help them and through word-of-mouth, you are soon earning an extra $2000 per month. Your 500 beans return thousands of beans back to you.

Money spent to improve your knowledge, make you more competent or improve your skills, usually pays off from 100 to 1000 beans earned back for each bean spent. Investing in YOU pays off during your entire lifetime. Brilliant spending.

If you own a business, some employees' pay may be good Bean Theory application. They do more than expected and add to the success of the business. Good spending.

Other employees do less than the others and try to suck everyone down to their unhappy existence. They are not a good investment of beans. Bad spending.

Each part of your business can be classified as good or bad spending. For example, an auto repair shop has several departments. Its auto paint department returns five beans for every bean paid into it. But its muffler department only returns one bean for each two beans it receives. If the owners are smart, they invest more beans into the paint department which increases their beans. The muffler department must either become profitable or be shut down ASAP.

Good business spending includes training, computers, office furniture, signs, efficient work spaces and so on. Spending beans to find the best employees, train employees or pay your highest producers top wages is also good spending.

Bad business spending may include original oil paintings for your office, wild unproven marketing ideas, exotic "business" trips for you and your family, unearned bonuses to buddies, golf club memberships and so on.

How to Put the Theory to Use

Go through your spending records, such as your checkbook, and decide which expenses are good spending and which are bad spending.

For example, you might decide you are wasting too many beans on expensive restaurants meals or luxury cars; no beans come back. Or you might find the money you spend on tennis equipment actually pays back many beans with the new clients you meet.

You might find the money you spend on advertising training have already returned ten times more beans than you spent, while your yoga classes have returned zero beans back.

Junk food is a waste of beans. A health club membership might give back beans if it makes you more productive, but jogging down the street costs no beans at all.

Money spent on how-to books often returns a lot more beans, while expensive seminars may be money down the drain.

Money for electricity, water and gas is vital as no beans are possible without them. Yet, as many people now know, money for a new fancy home that consumes two-thirds of your pay in loan interest, will probably not return more beans than you pay out.

If you think and carefully spend your beans wisely, you stop wasting beans on things that have no return.

Spend your beans in ways that give you more beans back . . . and then invest those extra beans in these same ways again.

By doing this, you constantly improve your financial condition.

Recommendations

Before spending your beans, ask yourself, "Will this expenditure return more beans than I'm spending?"

If the answer is "yes," go for it!

If you do not know the answer, research the matter until you know.

If the answer is "no" or "probably not," don't waste your beans!

Keep this up for months and years and you'll find yourself sitting on a big pile of beans!

 

Provided by TipsForSuccess.org as a public service to introduce the technology of L. Ron Hubbard to you. 

  

Copyright © 2012 TipsForSuccess.org. All rights reserved. Grateful acknowledgment is made to L. Ron Hubbard Library for permission to reproduce selections from the copyrighted works of L. Ron Hubbard.

 

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TipsForSuccess: Five Ways to Get Rich (Part 2)

 

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Five Ways to Get Rich (Part 2)

Last week's TipsForSuccess article listed four unreliable ways to get rich:

1. Gamble.
2. Sue someone.
3. Marry a wealthy person or inherit your money.
4. Lie or steal.

The only reliable way to get rich:

5. Earn it.

You provide a service or product that people need and you deliver it. You can then increase your income by improving and expanding your service capacity.

What Is Your Service Capacity?

Capacity: The maximum limit. The greatest amount possible. The highest quality possible.

Service: A valuable act or useful product that you provide to others.

How much service can you produce? It doesn't matter if you are providing it or not. What are you capable of providing?

For example, two auto repair shops in the same town can fix your car's engine. But one of the repair shops can also paint your car and replace your tires. It has a greater service capacity than the other shop. Therefore, it has the capacity to earn more money.

Organizations thrive or die based on their service capacity. The same principle applies to you.

"The greater the investment in more service capacity, the greater the ability to get more service capacity utilized.

"The greater the service capacity utilized, the greater the service delivered.

"The greater the service delivered, the greater the income." -- L. Ron Hubbard

Based on this quote, we now have a simple, but powerful three-step formula for earning more money.

1. Invest in your service capacity.

2. Get your service capacity used. This means you deliver more service or more products; or provide a better service or better products.

3. Increase your income.

Examples

A hairdresser has a shop with one work station. She averages 10 customers per day which is her maximum-service level. She wisely decides to invest in her service capacity.

She buys another chair, another big mirror, more tools and supplies she needs to create a new work station. She hires an assistant to answer the phone calls, schedule appointments and take payments. She uses the new workstation to give shampoos, fast haircuts and other uses so she can see more customers.

She gets her greater capacity used and sees 18 customers per day.

She continues this powerful formula and hires more hairdressers and trains them in her new system. She forms partnerships with her top people, builds a chain of hair salons and becomes rich.

As another example, you spend all day entering data into a computer. You feel like you have a dead-end job. You make $12 per-hour and have no job security. You decide to invest in your service capacity by increasing the value of your time.

You notice that whenever the computers crash in your office, everyone sits and waits for the technician to fix the problem. You have a bright idea.

You know the technician makes $40 per hour. So you invest your free time learning how to fix the computers. You are ready to get your service capacity used!

You corner your boss and say, "I've just learned how to fix the computer problems and since I'm already here, we won't have to wait for the technician. I'll only charge $30 per hour. If I can't fix it and need to bring in the technician, you don't need to pay me for my time. And to prove I know what I'm doing, I'll fix them the next time they crash for free! After that, $30 per hour. What do you think? Is it a deal?"

Your smart boss thinks for two seconds and says, "Deal!"

One thing leads to another and you are making $40 per hour within four months. You continue to invest in your service capacity until you can fix several types of computer systems. You start your own company, constantly increase your service capacity and become rich.

Anyone can invest in their service capacity.

More Examples

A Texas book publishing company hires a team to translate their best-selling books into Spanish. They can now produce twice as many books using their existing book deals.

A real-estate agent is making no money selling homes. She invests several weeks learning to buy and sell office buildings, shopping malls, apartment complexes and empty land. She triples her service capacity and uses her existing connections to find deals and boost her income. As the real-estate business improves she has more profitable work than she can handle.

A restaurant invests in more staff training so it can expand its hours. It now serves earlier breakfasts and later dinners. The restaurant income increases by 35%.

Instead of drinking beer after work, an auto mechanic gets the shop owner to show him how to do custom paint jobs. The mechanic earns more pay as an auto painter and the shop owner can now sell a new service.

Fact

If you study the history of every successful business and every successful individual, including the richest people on the planet, you will discover they all began their path to wealth by investing in their service capacity. The state of the economy has nothing to do with it.

Recommendations

1. Write down ways you can invest some time or money to increase your service capacity.

2. Select one of these ideas and make your first investment this week.

3. Get your new service capacity used.

4. Deliver more service or more products; or provide better service or better products.

5. Make your income increase.

With a little thought and creativity, you can find many ways to increase your service capacity so you can also become rich. No need to gamble, sue people, steal money, marry a rich person or wait for a wealthy relative to die.

Let others try to do that while you travel along your road to success and wealth. 

 

Provided by TipsForSuccess.org as a public service to introduce the technology of L. Ron Hubbard to you. 

  

Copyright © 2012 TipsForSuccess.org. All rights reserved. Grateful acknowledgment is made to L. Ron Hubbard Library for permission to reproduce selections from the copyrighted works of L. Ron Hubbard.

 

Sign up or learn more about TipsForSuccess at www.tipsforsuccess.org,

 

Like us on Facebook 

 

For permission to copy, print or post this article, go to www.tipsforsuccess.org/reprint_info.htm

  

Take better control of your life with the TipsForSuccess coaching website at www.tipsforsuccesscoaching.org

  

 

TipsForSuccess: Five Ways to Get Rich

 

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Five Ways to Get Rich

If you think about it, there are only five ways you can get rich.

1. Gamble

Buy lottery tickets or spend your vacation time in a casino trying to hit it big. Unfortunately, most people, even professional gamblers, eventually lose all their money with this method.

2. Sue Someone

Get the driver of a new Mercedes to hit you and then sue. Fall and smash your face in a jewelry store and then sue. Pretend to find a severed finger in your can of soup and then sue. Unfortunately with this method, you can hurt yourself or wind up in jail like other con artists.

3. Marry a Wealthy Person or Inherit Your Money

Finding a rich person, who wants to marry you, may be difficult. Being nice to wealthy relatives until they die can take many years. In either case, you have little control of your future wealth.

4. Lie or Steal

Thousands of people try to steal your money through the internet, with investment schemes, by embezzling company money or with force. Yet like all thieves, they usually get caught and live out their lives in prison.

When you lie to get money, you not only feel guilty and think less of yourself, you reduce your ability to make money. You transfer your negative feelings of self worth to everyone around you. It's obvious to your honest friends why you are broke. Fortunately, you can increase your income with the most powerful approach of all.

5. Earn it

Yes, the best approach is also the easiest. You provide a service or product that people need and you deliver it. It's no more complicated than that.

You can then increase your income by improving and expanding your service.

"The greater the service delivered, the greater the income." -- L. Ron Hubbard

You work out ways to provide more qualities, services or products than you have ever offered before. For example, a real estate agent wants more income. In addition to helping people buy and sell homes, she expands her services by learning how to buy and sell business buildings.

Next week's article describes several more ideas of how you can increase your service capacity. Meanwhile:

Recommendation

Stop all of your efforts to make money without earning your money: gambling, lawsuits, through marriage or by cheating or stealing. Instead, earn your wealth with hard work and intelligence.  

 

Provided by TipsForSuccess.org as a public service to introduce the technology of L. Ron Hubbard to you. 

  

Copyright © 2012 TipsForSuccess.org. All rights reserved. Grateful acknowledgment is made to L. Ron Hubbard Library for permission to reproduce selections from the copyrighted works of L. Ron Hubbard.

 

Sign up or learn more about TipsForSuccess at www.tipsforsuccess.org,

 

Like us on Facebook 

 

 

 

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