By Gary Simpson

Wealth secrets. I don't know about you but every time I see words like that in the title of something then I just have to have a look. You see, if there ARE any secrets I want to know about them. So I keep my eye out and my mind open. I read everything I can about making money. So, I have seen a fair few so-called "wealth secrets" in my time.

As far as I am concerned the best "secret" that I have seen is passive income. This is the income that just keeps flowing to you day in and day out without you having to do anything for it. I think it must be a wealth secret because I don't know too many people who are taking advantage of it.

Passive income can come in the form of franchise fees, commissions, investments, royalties, capital growth, shares, property and trusts. Basically, passive income is anything that will allow income to flow to you while you do something else.  That "something else" can be working your normal job hours or even sleeping. You see, a passive income stream doesn't rely on what YOU are doing while IT is working.

I often call passive income wealth by stealth. That makes me laugh. I see this image of getting wealthy by being sneaky. But there is nothing sneaky about it.

Passive income is merely the clever person's way of accumulating money.

Who ever made the law that says you have to work hard for money? That is what poor people do. They trade an hour of their time for $10 or $20 or $30. How can you ever get rich doing that? Eventually you run out of hours in the day to trade. Active income is limited by the hours in a day. Passive income doesn't rely on any number of hours in any day.

If you want to take advantage of the BIGGEST wealth "secret" then, in my opinion, there is no better way to accumulate wealth than passive income.

Gary Simpson operates the Turn Debt Into Wealth  website. To discover how to create a PASSIVE income visit: "How to Save $1000's and Increase Your Net Wealth." You can also discover how to prime your mind for wealth by visiting "How to Stop Wasting Your Life and Start Getting What You Want."

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By Gary Simpson

You are not going to live forever. Like they say... there are only two certainties in life - death and taxes. So, let me ask you this - when are you going to start getting serious about building wealth for yourself? When are you going to pick up the pace? I am going to show you an example of wealth building in action that will BLOW your mind!

The sooner you start to create wealth for yourself the sooner that magic ingredient called time will act FOR you. The longer you delay, the more time will work AGAINST you. It's a pretty simple choice. Start now and allow time to help you or start later and lose that potential that you have between now and whenever you end up getting around to making a decision on building wealth.

Are you ready for that example? Let's say, for instance that you were able to borrow $200,000. It's not difficult if you know how. Don't worry about the amount or the how or the why. Just play along with me. OK? I want to teach you the principle of time and WHY it is far better to start now than to wait ten years - or even one year for that matter. The SOONER you start, the sooner you benefit.

OK. You have $200,000 - all borrowed. Let's say that you can get a return of 10% on that money. Again, don't worry about how to do that for the moment. It's easy to do when you know how. How much do you now have after one year at 10% return?

$200,000 @ 10% is $220,000. How much did you borrow? $200,000. Let's say that you have to pay 6% interest on that money. That's $12,000. So, simplistically, how much of the $220,000 is yours. Answer? $8,000.  ($220,000 - $212,000)

Got the mathematics of this? Good. Now, let's follow this for TEN years.

$200,000 + 10% = $220,000 - Interest @ 6% of 200,000 = $12,000. You keep $    8,000.
$220,000 + 10% = $242,000 - Interest @ 6% of 200,000 = $12,000. You keep $  30,000.
$242,000 + 10% = $266,200 - Interest @ 6% of 200,000 = $12,000. You keep $  54,200.
$266,200 + 10% = $292,820 - Interest @ 6% of 200,000 = $12,000. You keep $  80,820.
$292,820 + 10% = $322,102 - Interest @ 6% of 200,000 = $12,000. You keep $110,102.
$322,102 + 10% = $354,312 - Interest @ 6% of 200,000 = $12,000. You keep $142,312.
$354,312 + 10% = $389,743 - Interest @ 6% of 200,000 = $12,000. You keep $177,743.
$389,743 + 10% = $428,717 - Interest @ 6% of 200,000 = $12,000. You keep $216,717.
$428,717 + 10% = $471,590 - Interest @ 6% of 200,000 = $12,000. You keep $259,590.
$471,590 + 10% = $518,748 - Interest @ 6% of 200,000 = $12,000. You keep $306,748.

In the calculations above, for the sake of simplicity, I have deliberately not reduced the principal of the loan below $200,000. I have therefore assumed that the $200,000 is constant. In actual fact, this amount - the amount that you owe - will reduce every year. So that would make the figures on the right (what you keep) larger than what I have indicated.

But what does this tell us? First, if you paid out the loan in the first year you get to keep $8,000 (less tax, of course). I am going to (conveniently) forget about tax now also. It is the compounding nature of the calculation that I want you to focus on. Let's look at year 4. This is interesting. If you cash out at year 4 you end up with more than TEN times what you had in the first year. See how time has worked FOR you?

Now look at year 8. In year 8 you would walk away with $216,717. That is 27.08 times the amount that you had in year 1  ($216,717/$8,000 = 27.08). How amazing is that? Taking this through to year 10, you get to keep $306,748! That is 38.34 times the amount that you had in year 1 ($306,748/$8,000 = 38.34). Astonishing! Compound interest is working FOR you because time is working FOR you.

Now, if you DON'T invest money now and wait until later, how much money do you lose? Let's say, using the above example, that you decide to wait ten years to implement this plan. Duh! You have LOST $306,748. That is time working AGAINST you!

Can you see why it is far more advantageous to do something NOW? Waiting or delaying or procrastinating is only going to HURT you financially. Get on your bike. Pick up the pace. There is no better time to start building wealth than right now! Actually, I'd like to correct that. Ten years ago would have been much better! Are you going to wait ANOTHER ten years? Five years? One year? If I were you I wouldn't wait another day! Time is PRECIOUS. Don't waste it!

Note: Always consult a qualified INDEPENDENT and UNBIASED financial adviser BEFORE you invest money.

Gary Simpson operates the Turn Debt Into Wealth  website. To discover more wealth techniques and how to create a PASSIVE income visit: "How to Save $1000's and Increase Your Net Wealth." You can also discover how to prime your mind for wealth by visiting "How to Stop Wasting Your Life and Start Getting What You Want."

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By Gary Simpson

I believe that the great Albert Einstein called compound interest the "Eighth Wonder of the World." Einstein, of course was a brilliant man who reputedly had an IQ of somewhere above 175. (Normal IQ is around 100 to 110 with 140 being considered the start of the genius levels).

Einstein considered compound interest to be one of mankind's greatest inventions. For a person of the caliber of Einstein to say such a thing should make the rest of us sit up and take notice.

Allow me to give you a demonstration of the awesome effect of compound interest. Let's suppose I asked you to do a job for me. Don't concern yourself with what that might be. Let's just say that it was a job for which I offered you one of two methods of payment.

First, I offer you $1,000 cash now. Next, I say to you that I will invest $10 at ten percent per day for 60 days for you after which you can have whatever that amount is. You have to choose right now. Which payment would you choose?

Well, considering the title of this article you would probably say the second method. And you would be correct. Let's look at the first ten days:

$10.00
$11.00
$12.10
$13.31
$14.64
$16.10
$17.71
$19.48
$21.42
$23.56

Hmm, after 10 days it's not looking all that good is it? But the power of compound interest is that in the later days the numbers build greatly upon themselves. Let's look at the last ten days. That is, days 51 through to 60.

$1,170.87
$1,287.95
$1,416.74
$1,558.41
$1,714.25
$1,885.67
$2,074.23
$2,281.65
$2,509.81
$2,760.79

In the choice that I originally offered you the $1,000 mark was reached between days 39 and 40. The total at day 39 was $967.67 and the total at day 40 was 1,064.43. If you had chosen to take $1,000 cash at day one you would ultimately have been $1,760.79 worse off, albeit you would have had to wait 60 days to receive your money.

The point that I am making here is that YOU can take advantage of this compounding effect with your own investments. All you need to do is start as soon as possible and simply allow time to work its wonder. On the other hand, if you procrastinate and delay your investments all you are really doing is penalizing yourself.

The moral of this story is to INVEST EARLY. If it was good enough for Albert Einstein it should be good enough for you!

Gary Simpson operates the Turn Debt Into Wealth  website. To discover how to create a PASSIVE income visit: "How to Save $1000's and Increase Your Net Wealth." You can also discover "How to Stop Wasting Your Life and Start Getting What You Want."

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By Jeff Alderson

You've heard it all before. In order to walk among the rich and famous, you need to first define your personal goals. You know, make a list of everything you want in life, everything you want to accomplish.

Well, you'll be happy to know, that's NOT the kind of thing we're talking about here.

What we're talking about here is a dollar figure, a specific amount that you set as your daily income goal. Basically, you need to determine how much money you would need to generate each day in order to quit your job, in order to earn money exclusively from home.

Before you come up with any sort of dollar figure, though, a word of caution. The figure needs to be high enough that you can live comfortably, but it also needs to be low enough that it's entirely realistic. You know, doable.

For example, you might ultimately want to make over a thousand dollars a day. And there's certainly nothing wrong with that. You just don't want to set the bar so high at the very beginning that you feel overly pressured.

So what you need to do is be totally honest with yourself. Set a financial goal that will be high enough to give you proper incentive and keep you motivated but isn't so high that it prevents you from accomplishing your goal amount.

The point is, only you know what you need. And more importantly, what you're capable of accomplishing. Plus, anyone who is currently holding down an outside job and can only invest a few hours throughout the week to start with should probably set a relatively reasonable daily financial goal.

Adversely, someone who has the ability to work fulltime at getting this system set up and running can probably establish a much higher daily dollar amount.

Regardless, it's important that you do in fact choose a specific financial goal. Then, once you've achieved that amount, you can raise the stakes. So the process is... you reach a dollar figure, set another financial goal, reach that dollar figure, set another financial goal, and so on.

Whatever you do, though, don't put a time limit on WHEN you have to achieve your financial goals. The dollar amount itself is the target, NOT how long it takes you to get there. This is extremely important. So don’t dismiss it as irrelevant or minimal.

You see, the reason most people fail (aside from the fact that they either don't know how to succeed or never find a good solid money-making product, system, or program) is simply because they place too much pressure on themselves. The bar is set so high, they can't possibly reach it, let alone scale it.

Jeff Alderson is a software developer and entrepreneur. He develops innovative PPC and SEO software designed to increase traffic and boost sales. Do you need more traffic to your site or affiliate links? Click Here: Keyword Research Software

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By Deon Du Plessis

If you are searching for a passive income opportunity you are definitely on the right track towards creating financial freedom. Passive income is what is often referred to as smart money and it is the preferred method with which the rich earn their income. Passive income is income that continues to be generated long after the initial effort or work. You quite literally get paid over and over again for work done once.

The majority of people earn their living through linear income which is income that is directly proportional to the time and effort you put in. Passive income not only gives you financial freedom, but more importantly it gives you the freedom of time. With passive income you will earn money regardless of whether you work or not. I always liked the analogy of an apple tree. Once you’ve planted it and it matured it will keep bearing fruit season after season. Creating passive income streams for yourself is like planting little apple trees. Once they matured they will keep bearing fruit and as they grow bigger and stronger over the years they will produce even more and better fruit.

Although this concept sounds incredibly alluring, the challenge as usual is ‘how?’ Passive income has become a bit of a catchphrase and Robert Kiyosaki’s Rich Dad books really popularized the term. It tends to be a little  deceiving as the word ‘passive’ tends to be confused with ‘automatic’ or doing nothing. Even though the passive income is passive, you still have to set it up and plant the apple tree. Passive income won’t be handed to you on a silver platter. If it’s generated through property, then you still have to find it, make the deal, buy it and do all the paperwork and admin involved. If you wish to earn passive income by writing a book, or a play or a movie, you still have to sit down, write it, publish it and go through all the various formalities before you can sit back and enjoy the freedom of passive recurring income.

Today there are more passive income opportunities than ever before, both online and off line. The internet above all has opened up a vast new world with numerous avenues to explore in virtually any niche market you can think of. Spotting a really good passive income opportunity can be a bit of a challenge as the sheer amount of choices can be overwhelming.

There are basically two ways of earning passive income online (although it’s not exclusively an online thing). The first is to create your own product or idea and to sell it to someone else who will do the marketing and ‘selling’ for you. You would then earn royalties for this. Earning royalties is very common in the music industry and can be highly lucrative. But, if you don’t the next number one hit single in you head, then there is a very powerful alternative.

You don’t need to create your own product to earn passive income. You can earn passive income off other people’s products through affiliate and associate programs. You can build a website, where you do the work once, but earn recurring income through affiliate commissions. This is only one of many ways you can earn passive income online. It seems like the biggest challenge is not in finding a passive income opportunity, but rather in deciding on one. Here are some basic guidelines to help you spot a good passive income opportunity.

»  Be careful of over-inflated testimonials and promises. Most of them are made up. Try and cross check the various testimonials and see if you can match up what they promise. If you can contact the person giving the testimonial, then do so. There is nothing like real answers and advice from someone who is actually making a success from what you are about to embark on.

»  Do your due diligence on the company that drives the program. When it comes to affiliate programs, stay with the ‘big guns’ like Clickbank, Commission Junction and Linkshare (there are many more reliable ones out there) as far as possible. They are less likely to disappear after 2 years and there is nothing worse than working really hard to set up your passive income system only to see it evaporate into thin air.

»  There are plenty of passive income opportunities in ‘fad’ and ‘hot’ products, but they rarely last long term. You might do well for a couple of months, but that hardly justifies the initial work and the prospect of earning lifetime commission that you could earn. Make sure than when you do promote products that they have a decent lifetime and use your own good judgment. Try and think two years ahead and see if the product will still be needed and whether it’s got potential for growth.

»  Make sure that you believe and trust in the product. If you don’t, then you would never be able to promote it with the necessary confidence needed to be successful. Setting up a passive income system requires a great initial push and it can be hard to get it up and running. Make sure it’s something you love, something you believe in and something worth while. This is vital in creating the necessary motivation.

A passive income opportunity is only that – an opportunity. Until and unless you grab it and take action it won’t do anything for you. It’s never really about the opportunity, but rather about what you do with the opportunity that really counts. You’ve got nothing to loose and everything to gain. Remember that we only tend to regret the things we don’t do. The one thing I know for a fact is this: passive income really make me sleep very well at night!

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To learn more about creating multiple streams of passive income for yourself, visit http://www.sincere-advice.com/residualincome.html to learn exactly how to create your financial freedom online.

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By Gary Barclay

If only I had learnt about the compounding effect of money when I was a teenager.  I had heard of the seven wonders of the world, but no one ever told me about the eighth wonder, the effect of compounding. Not matter if you are young or slightly older, read on to discover how money can make money.

The compounding of interest earned is one of the most critical lessons that should be learnt by everyone.    To explain the effect of compounding I will use a brief example.  If you take $10,000 and receive 6% interest over one year you will receive $600.  If you reinvest the $10,600 in year two, you will receive $636 interest.  In year 3 you will receive $674 interest and this amount increases each year, so long as you re-invest the capital and interest each year.

The next step and even more effective way to use the compounding of interest is to contribute additional money, for example $100, each month to the capital and interest amounts.  This will assist in fast tracking your wealth more quickly and has the effect of growing your capital amount at a rapid rate.

Instead of the investor earning interest on principal, they earn interest on principal and interest, year after year after year.

If you start early in life, this can have a dramatic effect on the capital growth over time.   If an 18 year old invests $100 per month and earns 6% interest until the age of 65, they will have accumulated $313,187.  They would have invested $56,400 in this time, a profit of $256,787.  However if the same person started investing at 25 years of age, they will have accumulated only $199,149.  They will have invested $48,000 in this time.   So by starting 7 years earlier and investing $8,400 more (7 years x $100/month) they will have accumulated $114,038 more at 65 years.

It is crucial that we teach the compounding effect to everyone in our lives as it is THE KEY to future financial success for most of us.  For the sake of some short term pain by putting away some money, we can experience terrific long-term gain.  Do not be tempted to withdraw from the interest earned each year as this will negate the effect of compounding and will limit success with this strategy.

One of the best things about the effect of compounding interest is that it does not discriminate - EVERYBODY can do it, no matter whether you are rich or poor or where you live in the world.  The big decision is when to start and I urge you all to start today.

You can read more information about the affect of compounding and see some great tables that clearly illustrate the effect of compounding at http://www.achievesuccess.com.au/money/compounding_effect.htm

If it is wealth creation opportunities you are after then check out the life-changing information at http://www.achievesuccess.com.au/money

Start compounding your interest today and make the most of this 8th wonder in the world.

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