Money Mission: Build a money machine - Jamaica Observer
Wouldn't it be wonderful if you could design a machine that can generate cash every hour of the day? Whether you were eating, playing or sleeping, this device would ensure that you were consistently supplied with a steady stream of income. Your money problems would be history and the lifestyle of the financially free would be yours forever.
While many of us would love to possess a magic money machine, this apparatus would probably be impossible to build, and it would definitely be illegal. However, the concept of creating an income source that could eventually produce earnings without your personal effort is something that is entirely in your power to achieve.
Do you have to work to earn?
Most of us have grown up with the idea that the only way to earn money was to physically work for it. We were taught in school to study hard, get good grades and look for a nice job with attractive fringe benefits. For the most part, our education system does not foster entrepreneurial thinking which focuses on teaching people how to create income-generating systems.
Creating a system that will produce income requires us to think differently about how we earn. Most employees and self-employed people are paid for their time and physical effort; to get an income they have to carry out some activity. This type of earning is called linear income, which requires the work output to be constantly repeated in order to make more money.
How can you get paid for something that doesn't always demand your time and effort? The answer lies in understanding how to create passive income sources, which are not dependent on your direct involvement to produce your earnings. While you would initially have to work at building this 'money machine', it will eventually generate income without your physical efforts.
How to earn while you sleep
The simplest form of passive income is portfolio income, which is derived from investments that generate earnings. These include stocks that provide dividends, bonds and money market instruments that pay interest, and real estate that supplies rental income. However, it can take many years for you to build a large enough asset base to generate a meaningful income.
Another way to earn passively is to build a money machine that brings in residual income. Residual income is generated when your initial work output is designed to pay you over and over again. For example, if you create a product such as an eBook, music score or an application for a smartphone, you can sell your work repeatedly without having to produce it from scratch again.
Building a money machine that utilises other people's work effort to generate income is another means of creating passive earnings. This is known as leveraged income, which involves working along with other people in order to increase your final work output. Business owners generally make use of leverage when they hire employees to carry out various tasks.
Turn-key money machines
You don't have to start your own traditional enterprise to earn from leveraged income. There are direct selling companies that allow individuals to become independent representatives to distribute their goods and build networks of other business owners. The networking organisation will reward business builders with a percentage of the revenue generated by their teams' efforts.
We are living in the age of technology, which makes it easier for everyone to earn passively. Even if you don't have the financial means to amass assets which generate portfolio income, or the technical know-how and talent to create a product for sale, or the time and resources to build a business, you can still seek to earn passive income online.
One Web-based option is called affiliate marketing. Online businesses, such as Amazon.com, encourage persons to sign up as affiliates and market their products and services. Anyone with a simple website can promote these offerings and receive a commission on sales. You would have to use creative marketing techniques which encourage persons to purchase your affiliate products.
Start the building process
Lasting freedom from financial stress will come when you find a way to build a passive 'money machine' of your own. Your mission for this month is to learn more about the concept of passive income. You can find several articles on this topic on www.financiallysmartadvice.com and other websites.
Consider different ways in which you can generate passive income. Start by saving and investing as much as possible to build your portfolio income sources. Do you have any talents or ideas that can be packaged into a product that can be sold repeatedly? Look at ready-made business opportunities in network marketing or become an affiliate for someone else's online business.
Don't be afraid to attempt something new in your search for passive income opportunities. Carefully research all options to ensure that they are legitimate, and don't give out sensitive financial information online. Over time, you could build a money machine that gives you the ability to live the life of your dreams.
Cherryl is a money coach, business mentor, and founder of Financially S.M.A.R.T. Services. Her upcoming book The 3 Ms of Money will reveal all the secrets she learned about financial success. Get more advice on money and business matters at www.financiallysmart.org and www.entrepreneursinjamaica.com. Email comments to cherryl@financiallysmartonline.com.
Forex: AUD/USD firm above 0.9900 - NASDAQ
FXstreet.com (Barcelona) - Fourth consecutive daily advance for the AUD so far, bolstered by increasing risk appetite in the global markets.
After a dreadful May, the Aussie dollar is finding some relief at the beginning of June: the RBA cut the overnight rate 'only' 25 bps on Tuesday, against a widely expected 50 bps; GDP figures for the first quarter have surprised growing 4.3% YoY and the unemployment rate has come in at 5.1% early in the Asian session, in line with expectations.
J.Kruger, Technical Strategist at DailyFX, affirms that the bearish outlook on the cross remains unchanged, although he assesses the likeliness of a rebound due to technical studies showing 'oversold' conditions, "…and we see shorter-term risks for more of a bounce towards 1.0000-1.0200 area where the next major lower top is sought out ahead of underlying bear trend resumption…".
AUD/USD is now advancing 0.32% at 0.9946, with the next hurdle at 1.0016 (high May 15) ahead of 1.0028 (50% of 1.0475-0.9581) and 1.0070 (high May 14).
On the flip side, a violation of 0.9875 (hourly sup Jun.6) would bring 0.9767 (MA10d) and 0.9738 (hourly low Jun.6).
Forex - Economic Stimulus in the Near Future? - eltee.de
Auslandsaktien: Gegenbewegung nach Ausverkauf
Brse Frankfurt - Indizes - 07.06.2012
Marktbericht vom Handel mit internationalen Werten
07. Juni 2012. FRANKFURT (Brse Frankfurt). Der Markt gnnt sich eine Verschnaufpause. Nachdem die Aktiennotierungen in den vergangenen Wochen wegen den Unsicherheiten im Euroraum unter stetigem Abgabedruck standen, habe zur Wochenmitte eine technische Gegenbewegung eingesetzt, berichtet Walter Vorhauser von der Close Brothers Seydler Bank. Auslser war unter anderem das US-Beige Book, das eine moderate Konjunkturerholung erwarten lsst und damit eine nicht so schlechte Lage der US-Wirtschaft malt, wie in den vergangenen Wochen von vielen befrchtet. ... mehr
Wochenbarometer Devisenmrkte - 23. KW 2012
HSH Nordbank Research - Forex - 07.06.2012
Der EUR/USD preist einen Ausstieg Griechenlands noch nicht ein. Die dortigen Wahlen werden voraussichtlich den weiteren Kursverlauf nach dem 17. Juni bestimmen. Bis dahin ist mit hohen Schwankungen zu rechnen..
Ist der Euro wirklich so schwach, wie in den Medien derzeit kommentiert wird? Die Abwertung der letzten Wochen hatte ein relativ hohes Tempo. ... mehr
Wochenbarometer Rentenmrkte - 23. KW 2012
HSH Nordbank Research - Bonds - 07.06.2012
Nach einer kurzzeitigen Weltuntergangsstimmung ist wieder Atemholen angesagt. Viele Marktteilnehmer gehen davon aus, dass die Macht des Faktischen die Politik zwingen wird, umfassende Manahmen zur Stabilisierung der Eurozone zu ergreifen.
Die vergangene Woche endete mal wieder mit einem neuen Rekord. Der Bund-Future erreichte mit knapp 147 Punkten ein Allzeithoch. Die Rendite der zehnjhrigen Bunds war mit 1,13% entsprechend auf einem historischen Tief selbst wenn man die Geschichte deutscher Anleihen bis zum Jahr 1815 zurck verfolgt. ... mehr
Euwax Trends: Spanien platziert Anleihen im Wert von zwei Milliarden Euro - DAX steigt weiter - ruhiger Feiertagshandel
Brse Stuttgart - Indizes - 07.06.2012
Das war eine bemerkenswerte Bewegung, die die Aktienmrkte gestern gezeigt haben. Obwohl die Nachrichtenlage eher negativ war, nachdem die EZB sich einer Leitzinssenkung verweigert hatte, suchten die Mrkte konsequent den Weg nach oben. Die Wall Street legte sogar den besten Handelstag des Jahres hin. Dow und Nasdaq gewannen jeweils 2,4 Prozent.
Heute nun ist Feiertag in weiten Teilen Deutschlands, trotzdem wird an den Brsen gehandelt. ... mehr
trading-notes (aktien) 07. Juni 2012: Dax rutscht zeitweise unter 6.000 Punkte
trading-house.net - Indizes - 07.06.2012
Liebe Leserinnen, liebe Leser, der Dax-Index hat seine Abwrtsdynamik beschleunigt und ist nach bzw. bereits vor den wichtigen US-Arbeitsmarktdaten am letzten Freitag unter 6.000 Punkte gefallen. Fast 3,5 Prozent war an diesem Tag der Kursverfall, und damit knnte sich die Krise in Europa weiter zuspritzen. Viele Markteilnehmer waren geschockt, wie schnell nun auch der deutsche Index nach unten fallen kann, denn bisher waren solche Abwrtsbewegungen eher beim EuroStoxx50 zu sehen, der Bankenlastiger ist. Ob die Kurs- entwicklung mit dem Rutsch unter 6.000 Punkte gerechtfertigt war, bleibt abzuwarten. ... mehr
Edelmetalle: Silber hat den Ausbruch geschafft!
Mike C. Kock - Commodities - 07.06.2012
Seit Wochen sind die Zahlen aus beiden COT Reporten im Silber extrem Bullish! Dies war auch sehr gut in den Wochencharts zu sehen.
Silber - Wochenchart Doch erst mit dem Ausbruch vom Mittwoch haben wir das Kaufsignal im Silber erhalten. Das hat nun etwas lnger gedauert als im Gold, wo der Ausbruch am Freitag war. Sehen wir uns zum Schlu beide Mrkte - Gold und Silber - auf Tagessicht an.
Silber - Tageschart ... mehr
Forex - EZB erhht Druck auf die europische Politik
O. Bossmann I ETX Capital - Forex - 07.06.2012
Die EZB belt den Leitzins in der Eurozone unverndert bei einem Prozent. Die Entscheidung wurde, wie Draghi in der darauf folgenden Pressekonferenz bemerkte, von einer breiten Mehrheit im EZB-Rat getragen. Nur wenige Mitglieder des EZB-Rates htten bei der Abstimmung fr eine Zinssenkung gestimmt, so der Notenbank Chef.
Die Inflationsschtzungen vonseiten der EZB fr dieses Jahr liegen leicht ber der zwei Prozent Marke, sollten sich aber im ersten Halbjahr 2013 weitestgehend unter dieser Marke bewegen. ... mehr
Aktienindizes: Power-Candle im Daily, DAX leitet Gegenbewegung ein
Jens Klatt I FXCM - Indizes - 07.06.2012
Der gestrige Handelstag ist fr den DAX positiv zu werten, es gelang den DAX-Bullen die Marke von 6.000 Punkten zu verteidigen. Kurzzeitig sah es so aus, als knnten die Bren ausreichend Abwrtsdruck aufbringen, um die Marke bei 6.000 Punkten zu Fall zu bringen, auch begnstigt durch die Aussagen Mario Draghis auf der Pressekonferenz der EZB. Die bullishen Vorgaben von der Wallstreet stabilisierten den DAX jedoch und es gelang den Bullen den deutschen Leitindex im Bereich seines Tageshochs zu halten. Zum Ende der US-Handelssitzung notierte der DAX dann bei 6.132 Punkten. ... mehr
Forex - Spanische Anleihen-Auktion wird Volatilitt generieren
Forexyard Research - Forex - 07.06.2012
Der Euro verzeichnete beim gestrigen mittglichen Handel moderate Kursverluste, da Investoren sich nach wie vor sehr besorgt ber die Schuldenlage Spaniens und ihre mglichen Auswirkungen auf andere Staaten der Region zeigten. Nach der Entscheidung der EZB den Leitzinssatz der Eurozone bei 1,00% zu belassen sank der Kurs der Gemeinschaftswhrung, sowohl zum US Dollar als auch zum japanischen Yen. Allerdings waren die Kursverluste nicht sonderlich erheblich, und der Euro konnte sich spter wieder erholen. ... mehr
Devisen: EUR/USD berwindet 1,2540 USD und schliet nahe seinem Tageshoch Bereich um 1,2623 USD nun spannend
Jens Klatt I FXCM - Forex - 07.06.2012
Der EUR/USD war am gestrigen Handelstag sehr volatil, was vor dem Hintergrund des Leitzinsentscheids der EZB keine groe berraschung war. Sah es nach den uerungen Draghis auf der anschlieenden Pressekonferenz noch nach einem nachgebenden Euro aus, so sorgen die guten Vorgaben von den US-amerikanischen Mrkte fr eine Stabilisierung und gar fr ein berwinden der Wochenhochs um 1,2540 US-Dollar. Zum Ende des US-Handelstag notierte das Whrungspaar dann bei 1,2581 US-Dollar. ... mehr
NASDAQ to set aside $40million in 'mea culpa money' to compensate brokers in botched Facebook IPO - Daily Mail
- Nasdaq to offer $40m to brokers and investors after technical glitch marred trading during Facebook's IPO
- $14million given in cash and the remainder in credit
- Company usually caps reimbursement due to technical glitches at $3m
By Reuters Reporter and Associated Press
|
Nasdaq said Wednesday afternoon that it would hand out $40million in cash and credit to reimburse investment firms that lost money on Facebook's opening day because of computer glitches at the exchange.
Nasdaq's chief rival, the New York Stock Exchange, fired off a statement condemning the move, saying Nasdaq was giving itself an unfair advantage and rewarding itself for its own mistakes.
One broker, Knight Capital, said the planned reimbursements weren't nearly enough, encapsulating the complaints that other brokers and investment firms were making privately.
Compensation: Nasdaq said Wednesday afternoon that it would hand out $40million in cash and credit to reimburse investment firms that lost money on Facebook's opening day because of computer glitches at the exchange
Nasdaq OMX's compensation for mishandling Facebook Inc's public offering is 'too limited', though the exchange deserves praise for tackling the issue, former Securities and Exchange Commission chief Harvey Pitt said.
The harm caused by Nasdaq's failures easily exceed the $40 million the exchange has set aside, Mr Pitt said on Wednesday, responding to a query by e-mail.
Not enough: Harvey Pitt, the former Securities and Exchange Commission chief, said the compensation wasn't enough
He also said there does not seem to be any rationale for how the number was arrived at or why it is fair.
Nasdaq 'deserves kudos for taking the bull by the horns, and not waiting for the SEC to finish its review,' Mr Pitt said. 'But I think the steps it has taken — while positive — are too limited. The dollar estimates for harm caused by Nasdaq's failures easily exceed — several times over — the $40 million it has set aside.'
Mr Pitt said Nasdaq would be better served by an independent internal review of all that occurred on May 18, when traders were left in the dark for hours as to whether their orders for Facebook shares had been executed.
Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq threw the day into chaos.
The opening was delayed by half an hour. Technical problems kept many investors from buying shares in the morning, selling them later in the day, or even from knowing whether their orders went through. Some investors complained that they were left holding shares they didn't want.
Nasdaq will pay about $14 million in cash to investment companies that bought or sold shares, or tried to, at certain levels. The rest will be given as credit, meaning the firms won't have to pay as much in the usual fees required for trading on the Nasdaq.
Nasdaq predicted that those benefits could last as long as six months.
The credit for trading fees riled the NYSE. It said the move gave investors a strong incentive to move more of their trading to the Nasdaq, allowing Nasdaq 'to reap a benefit from market share gains they would not have otherwise received.'
'This is tantamount to forcing the industry to subsidize Nasdaq's missteps and would establish a harmful precedent that could have far reaching implications for the markets, investors and the public interest,' the NYSE said in a statement.
Dislike: Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq threw the day into chaos
The war of words underscores the constant battle that Nasdaq and the NYSE are locked in.
The NYSE, with roots dating to the 18th century and its familiar neoclassic headquarters on Wall Street, bills itself as reliable and well-known. Nasdaq, which started in 1971, promotes itself as a high-tech exchange favored by high-tech companies including Apple and Google.
The $40 million amount is far more than usual: Nasdaq has traditionally imposed a $3million cap for reimbursing customers who lost money because of technical problems.
It's hard to imagine that the amount could cover all the claims. Knight Capital alone has estimated that it lost as much as $35 million because of Nasdaq's glitches.
Knight Capital said it was disappointed that the reimbursement pool 'does not come close to covering reported losses' connected to the technical glitches.
'Their proposed solution to this problem is simply unacceptable,' the company said in a statement.
Large amount: The $40 million amount is far more than usual: Nasdaq has traditionally imposed a $3 million cap for reimbursing customers who lost money because of technical problems
It isn't clear what will happen next. Nasdaq still has to get approval from the Securities and Exchange Commission for its plan. The NYSE said it would 'strongly press our views' but didn't give details. Knight Capital said it is 'evaluating all remedies available under law,' which could mean it plans to sue.
Facebook's stock originally priced at $38 and closed that first day at $38.23, a disappointment to speculators who had hoped for a first-day pop. Nasdaq has said it was embarrassed by the glitches, but that they didn't contribute to the underwhelming returns.
Nasdaq says it will reimburse investment firms that tried to sell shares at $42 or less but either couldn't sell or sold at a lower price than they intended.
It will also reimburse investment firms that bought at $42 but in trades that weren't immediately confirmed. FINRA, the financial industry's self-regulatory group, will review the claims for compensation. Facebook's shares went as high as $45 on the first day.
The shares rose after the Nasdaq announcement and closed up 94 cents, nearly 4 per cent, at $26.81. That's still down nearly 30 per cent from the initial pricing.
The Facebook offering has left a bad taste for many investors, though they don't blame Nasdaq alone.
Many also think that Facebook as well as Morgan Stanley, the main bank that underwrote the deal, overestimated demand, pricing the shares too high and issuing too many.
Nasdaq says the problems have been fixed and that it has hired IBM to review its operating systems.
Forex: EUR/JPY rallies to 100.58 on US jobs - FXStreet.com
Money looming even larger over Nov. election - CBS News
(CBS News) WASHINGTON -- President Obama is halfway through a two-day fundraising swing through California.
His trip underlines the importance of money in the 2012 campaign.
It's also being criticized by Republicans who say the president is spending too much time with celebrity Democrats.
The money-raising trip took him to San Francisco and Los Angeles, two towns where he hasn't been a stranger in recent weeks and months, spending plenty of time with the wealthy and famous in the entertainment and tech communities.
But his campaign tweeted Thursday that 98 percent of its donations in May were less than $250.
Either way, it's all about the money.
Mr. Obama got a warm welcome from campaign donors in the Los Angeles gay community Wednesday night, a group he considers crucial to his re-election prospects.
"I could not be prouder of the work we've done on behalf of the LGBT community," Mr. Obama said.
During his speech, he ticked off accomplishments under his watch, such as ending the war in Iraq.
But he also warned the audience about what's ahead during the campaign, and why their donations matter, saying, "You're going to see hundreds of millions of dollars in negative ads, because the other side's not offering anything new."
To build a war chest that would enable him to counter those ads and run his campaign, Mr. Obama is spending two days on the West Coast to raise an expected $5 million.
He will have done 153 fundraisers since formally declaring his candidacy for re-election a little over a year ago - nearly double the number President Bush had done at the same point in 2004.
With the majority of outside super PAC dollars going to Republicans, raising money will be crucially important for Democrats in this election cycle.
In the Wisconsin recall election, unions spearheaded the effort to unseat Gov. Scott Walker after he successfully limited their power. But the union effort to get out the vote was overcome by the GOP advantage in money and TV advertising. Walker raised $30 million. His challenger, Milwaukee Mayor Tom Barrett, raised only $4 million.
Rep. Steve Israel, D-N.Y., chair of the Democrats' campaign committee, warned that the Wisconsin results should be "a wake-up call" that the party needs money for TV ads to compete with the super PACs.
A California political power broker once put it this way: "Money is the mothers' milk of politics."
Four years ago, candidate Obama outspent his Republican opponent, Sen. John McCain by more than two-to-one - $730 million to $333 million.
To see Bill Plante's report, click on the video in the player above.
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