Posts Tagged ‘freedom’

How To Retire Financially Free In 3 Years With Only A $1000 Investment

Monday, February 25th, 2008

How much would you pay to be willing to pay in order to retire in 2.5 years or less, and not only have more money comming in, than going out, but have $5000 coming in every month?  Obviously it’d be worth every last penny you had, and you could even go into debt, as long as you could safely pay it off, just so you could afford this opportunity.

Now the situation would change if it wasn’t guaranteed, but still gave you a very high chance of coming close, or if it might take longer, but you’d still be willing to pay $1000, wouldn’t you?

No, this is not some guide I want you to buy  for $1000 that teaches you how, in fact, it’s much simlper than that.  This method can be used by anyone.

How’s it work?

Well lets say you have $1200 plus you have your emergency cash on the side, and you understand this is $1200 that you can risk.  I know I said $1000, and it’s pretty much true, but if an extra cost comes up, you’re going to want to be able to afford it without having to dig into the emergency cash. Your emergency cash should be based on current expenses, and although you’re increasing your income, you’re also increasing expenses.  You use that $1000 on buying an already established web business. 

You can do this simply by going to sitepoint.com and clicking on marketplaceSitepoint is not the only place.  There’s digital point forums, and there’s a few others. I prefer Sitpoint, but that’s just me.  So you check the “established websites”, and you notice that there’s one website availble for $1000, and it gets $200 of cashflow a month.  If you plan on running this website yourself, I reccomend, actually being interested in the topic and liking it, but if you are willing to outsource everything, you don’t have to like it. If you just know enough to know whether or not someone is making quality informative useful points on it that should be enough.  You will simply be going to elance.com or rentacoder, or whatever freelancing service you prefer.

Now we’re going to assume you need to pay a few bucks to keep the website running.  Lets say from that $200 cashflow that you’ll be getting, you’ll spend $50 of it paying people to keep your website going for you.  That leaves you with $150 bucks.  You also have to pay for $10 in hosting to host all the accounts before you need to upgrade to a better hosting account.  You might get hosting for free when you buy the website, but maybe not.   Now it wouldn’t be unreasonable to assume that if you continue to have someone add content to your site, and you pay for traffic, or build the traffic streams in your free time, or have someone else do it, that the revenue would actually INCREASE.

There might be a few times where it doesn’t go right and the sites revenue falls, but for the most part, you can at the very least make $150 per site.

If you would just let the income come in the first month, and then use that to pay to have someone add content and things like that to your site so you would ONLY invest the initial $1000 into this (plus $10 per hosting for one month),  and only use the cashflwo from here on out to buy, you would have over $5000 per MONTH from these websites coming in every single month at the end of 28 months.  This is calculated based on fractions of months, but in many cases the checks won’t come in until the end of the month… However, you would be able to buy 2 websites in one month at some point, or you could buy websites for OVER $1000 in some months, so it really wouldn’t be too far off.  So you have $5000 a month with 2 month s to spare until 2 and a half years.

 It might not take money to make money.  You may be able to create your own WSO on your own for free.  But it certainly will make you a lot more, if you focus on reinvesting your traffifc to grow it, as well as an reinvest your money to increase the ability to grow.

Here’s what your monthly earnings will look like

Month 1 190 (paid for hosting)

Month 2 140(paid for someone to help run it for you)

Month 3 140

Month4 140

month 5 140

month 6 140

month 7 140 (now use money to buy 2nd site)

Month 8 290 (after paying to have site maintained

Month 9 290

Month 10 290

Month 11 290 (buy new site)

Month 12 440

Month 13 440 (buy new site)

Month 14 590

Month 15 590 (buy new site)

Month 16 740

Month 17 740 (Buy new site)

Month 18 890 (Buy New site)

Month 19 1040( Buy New Site)

Month 20 1190( Buy New Site)

Month 21 1340( Buy New Site)

Month 22 1490( Buy 2 New Sites)

Month 23 1790 (Buy New Site)

Month 24 1940 (Buy 2 New Sites)

Month 25 2240 (Buy 2 New Sites)

Month 26 2540 (Buy 3 New Sites)

Month 27 3440 (Buy 3 New Sites)

Month 28 3890 (Buy 4 New Sites)

Month 29 4490 (Buy 4 more sites)

Month 30 5090 (Buy 5 More sites)

END of 2.5 years 

Month 31 5840

etc

Now what do you think would happen if you continued this for 4 years?  In 4 years, if you can manage to keep this up, you will crack $100,000 a month.  Of course, it will get harder and harder to find $1000 websites, o you’ll be forced to take a look at the more premium websites with a slightly lower return, and/or get a team of people to buy the websites for you, which will cost you more money.  You also will not be able to use any of that money you gain if you want your website to really grow as fast as possible.  The question becomes, how much do I want to make before I start spending.  I also think you should make sure to have more and more available cash aside because if something goes wrong, you might have to deal with missing out on ALL of the incomes sources.  Make sure to back up all of your files as well, a server crash can kill your business.  You would need to spend more time on this, and you would need to continue to buy more and more hosting account as you get more sites, or at least pay $30 a month for one of those superlarge reseller hosting accounts.

As you can see, it’s really not that difficult, and  being able to actually own a cash producing asset that you can reinvest, will lead to a much more valuable return than any stock.  Is it likely that you’ll see a 500% return in a stock in 2.5 years? Probably not, and if you do, once you sell it, the money stops coming in.   Tour return is limited. Not only that, but if there’s inflation, you will generally take in MORE cash to adjust for it.  While saving has your cash going down, and investment cashes in for dollars that aren’t worth as much as they were before you started, cash producing assets produce more cash. In addition, when cash assets produce more cash, they’re worth more money to the buyer.  So if you can buy something for $1000 that brings in $200 a month, and you can increase the monthly income to $400, what do you think someone would be willing to pay for it?  Twice as much cashflow, is at least twice the amount of value.

Now if you’re smart, you’ll track your income, and you’ll learn which sites have more potential.  The lowest profit sites you can work on to increase the income for a few months, then you can sell it. Then you can use the cash to either replace it with another one, or to increase the advertising and value of another website.

Don’t have $1000?  You can easily start with a $250 website that rakes in $50 a month.   Of course, you won’t make much money on it, especially if you have to use all $50 to automate, but you can at least have the price of the website gain in value so you could sell it later if you want, and you have the potential to make the revenue go up as well.  Websites are like fine wines, they become worth MORE as they age.  People like the domain names better, and there becomes more demand for certain domain names.  They usually naturally gain backlinks as well, making them more valuable.

I’m not saying jump in right away,  I’m saying understand it’s a possibility, use it to dream big dreams, and motivate yourself to learn what you need to.  When you are completely ready, and have everything ready, and have the finances the right way, go ahead and give it a shot, and let me know how it goes… I love success stories :)