keflex resistance

The 4 Hour Workweek Expanded Edition

December 15th, 2009 Joe No comments

I have picked up The 4 Hour Work Week Expanded Edition.  I read the original and it is fantastic.  I subscribe to many of the theories within the original and I am very interested to get into the expanded info.  Tim Ferriss has many of the same ideals that Average Joe Millionaire does.  I have Tims blog on my reader.  Anyone interested in a better wealthier lifestyle can learn alot from Tim and the new group of Lifestyle Design enthusiasts.

The Wealth Lifestyle

December 13th, 2009 Joe 2 comments

The Wealth Lifestyle is the term I use for the new wave of rich and happy people who are following their dreams and getting rich.  You see many people have things backwards.  Many people think that you get rich and then you get freedom from a bad lifestyle.  The fact is you can get rich and hate your life and be stuck!  Many people do exactly this every single day.  So the goal of the week is to pin point what makes you happy. This is just a simple list.  The Top 10 things that make you happy.  These things can have no business approach or money making angle whatsoever.  I just want to know what are the top 10 things in your life that make you happy.  Not in any particular order.  For the sake of sanity all 10 things are equal on the happiness meter. Sidebar, I also want to know what you do currently do to support yourself.  Leave this information in the Comments Section below.  It should look something like this:

Average Joe Millionaire – Investor, Entrepreneur, Writer, Teacher
1. Family
2. Friends
3. Art
4. Water Sports
5. Teaching
6. Learning
7. Adventure – Preferably outside
8. Snow Sports
9. Investing
10. Writing

As you can see a few of the things that make me happy are included in what I do for a living.  That is because I am Living The Wealth Lifestyle.  You may not have anything that matches up.  That is okay.  Once you understand what makes you happy, you can start applying pushing towards The Wealth Lifestyle.

If you have a choice wouldn’t you rather get rich doing something you love?

Leave your happiness list below.

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Get Motivated to Start Your New Business

December 12th, 2009 Joe No comments


You may have already heard. is one of the easiest ways to start an online store.  It is as easy as filling out a form and adding your products to your store.  This program comes equipped with a great app store.  Apps allow third party app development.  This is great for you because you can easily and quickly add new great features that fit your business needs.

How do you know Shopify is for you?

I judge many services on the successful clients that are using a service.  Shopify boasts a huge client list.  You may have heard of Pixar, Pamela Anderson, Tesla Motors, or Amnesty International, these and many other businesses have had great success with the Shopify program.

Whats in in for you?
Shopify is running a competition to help you achieve your New Business Goal.
“Other than the fact that you get to start your very own business, you get to compete for$120,000 in prize money. The store with the two best selling months will win $100,000. Achieve the same for your store category and win $5,000 as a runner up prize.”
prizes-whiteThis Contest is only open to NEW BUSINESSES.  You dont have to worry about competing with anyone else besides new business people.  Do not wait.  Sign up for your account right now.  Take the challenge and start your new business this year.

What do you think?  Is this enough of a motivation to get you started on a different path this year? Leave a comment and tell me if you are motivated by this.

Spending Pre Tax Dollars

November 29th, 2009 Joe No comments

Rules of the Rich

The Poor pay taxes then pay their bills with what is left over.  The Rich pay their bills and then pay taxes on what is left over.

Knowing the significance of this is HUGE!  If your income at your Job is $50,000 you will pay around $10,000 in federal taxes.   Yes there are deductions that lower that amount but for simplicities sake we will stick with these numbers.  That means you take home $40,000 before  state taxes and bills.

What can a business save you?

The Rich own businesses that makes $50,000 a year and they pay all their bills
Cell Phone $1200 a year
Auto $3600 a year
Insurance $3000 a year
Food $5000 a year
Office Supplies $500 a year
Computer $1000 a year
Internet $600 a year
TOTAL $14,900

Many other things can be expensed but we will stick with these items for now.  Many of these have limits set by the IRS.  These numbers are for example purpose only.

So we have a business that makes $50,000 – $14,900 in expenses = $35,100 profit (this may bump you to a lower tax bracket but I will use 20%)

Total taxes owed by the business before any allowable deductions is $7,020.  That is a tax savings of about $3,000!

That is a 6% raise!

$3000 is just the beginning there are many other expenses from your daily life that if you were in business could possibly transition into business expenses.  Plus there are all kinds of tax credits and deductions that change almost every year.  Currently you can get special credits for adding “green” options to your business.  You can get credit for buying a Hybrid vehicle for business use.  There are all kinds of great tax benefits of owning your own business.

Categories: Daily Philosophy, Rules of the Rich Tags:

Tax Shelter

November 28th, 2009 Joe No comments

Step Seven

Tax Shelters are usually associated with negative and or illegal operations.  This is not the case if you are going to start your own business in your free time like I suggest in step six.  Fact is that you are probably already spending money doing your hobby now.  For some that may be baking, photography, gardening, painting, building, or racing cars.  The fact is that you can start your business doing this thing you love and convert your personal expenditures into allowable deductions you will be well on your way to Average Joe Millionaire Status.

Step one: Turn yourself into a business owner.  This is easy and cheap to do.  You can even go to websites that walk you through the entire process.  For some you may want to consult an business attorney to do this for you.

I have heard people having luck using for their business needs.

To be in business is easy.  Simply declaring it with the proper entity is all you need to do.  Once you are in business you can magically turn personal expenses into tax deductions.

The best part is that your business does not necessarily have to make a profit.  In this scenario we are working towards a profit but if for the first couple years you don’t make one that is no big deal.

Quoting straight from the IRS

“Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.”

“The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.”

There are certain ways to structure your business to then take these losses and deduct them from your personal federal income taxes.  So say you owe Uncle Sam $7000 for the year in personal taxes and you structured your business as an S Corporation.  In that situation you may be able deduct any business losses on your personal taxes possibly allowing you to put that $7000 into your business instead of sending it to the IRS.

I dont know about you but putting my taxes into my business sounds pretty good to me.

Working towards a profit can be easy too.  So you like baking and you want to start a cake business.  You could sell just a few great wedding cakes to make a nice lump of money and offset many baking expenses.

If you are into racing of some kind you sell advertisements on your vehicle, body and trailer.  This can add up quickly and pretty soon you are making a small profit.

Making a profit is very specific to your situation.  I cannot tell you how to make a profit because I dont know your business plans.  Feel free to post a comment with business ideas and I will give feedback on profit structures.

This article is in no way meant to influence you do anything illegal.  Including avoiding taxes. Avoiding taxes can come with harsh penalties and would damage your chances of getting rich.

On the other hand I want you to get the most out of our capitalistic system and keep as much of your hard earned money as legally possible.  I want you to pay millions of dollars in taxes but not a dime more than you owe.

Get Rich Working For Someone Else

September 7th, 2009 Joe No comments

Once you make the decision you are going to become rich, usually you already have a job working for someone else.  I have found with my experiences that it is easier to keep that job and get rich doing something during your off time, like evenings and weekends.  I have known people who decide one day they hate their job and they are going to quit and get rich doing ________(fill in the blank).  This approach never works.  The reason why it never works is because when you have no money you are desperate and other people are repelled by desperation and dont want to work with desperate people.  The advise I give is to follow the Millionaire School guide and find something that makes you happy.  For some people that is baking, photography, gardening, painting, building, or any thing that makes you happy.  Anything can be organized for profit.  Then find a way to do this activity in your free time for profit.  Once you start making money you can start to consider quitting your job or cutting your hours back.  You will find that money comes faster this way.  Money comes faster because you are not desperate and people will like that you are working so hard to pursue your dreams.  People love those stories so tell it to as many people as possible.  Many people will support you just because they want to see you succeed.

The other reason money comes faster when you are doing this in your free time is that you have more money to put into your venture.  If you continue to work you will get a steady paycheck and be able to fund your venture better.  I know most paychecks are spread thin already but it is a fact that you will have more cash flow if you keep your job.

Get rich working for someone else, and you will have more control over your life in the long run.

Paying off high interest debt with savings, Still a good idea?

September 5th, 2009 Joe No comments

This morning I am reading a few different blogs and I found Five Cent Nickel.  A recent article posted brings up a good question.

If I have money in the bank and high interest (10%+) debt should I use my savings to pay it off?

The short answer, YES pay it off.

The question gets complicated from person to person.  In this economy people are keeping more cash in the bank incase they get fired, or generally need it.  This advice has bee pushed by Suze Orman and many other financial advisors.  I am in agreement with them.  Everyone should have some money in the bank.  Personally I would be willing to take a little more risk if I were carrying high interest credit card debt.   I would push everything to the credit card until I was down to exactly 4-5 months emergency fund.  For some the extra 2-5 thousand dollars paid on the credit card might pay it off.  There is no reason to carry debt if you can pay it off and still leave yourself a good emergency fund.

If you thing you are going to get laid off or feel your company is doing poorly in this economy keep saving your cash.

Check out the Five Cent Nickel original post here

Getting Rich 101 a Millionaire School

September 4th, 2009 Joe No comments

So far we have covered a huge amount of information I thought it would be a good idea to do a quick recap.

1. Be Happy- Rarely do people get rich doing things they hate.  You are much more likely to get rich doing something you feel passionate about.

2. Financial education is priceless.  The saying goes “Insanity is doing the same thing over and over and expecting different results.”  If you are not making financial progress educate yourself and change your actions to get different reactions.

3. Debt is not always bad.  Bad debt holds you down, good debt puts cash in your pocket.

4. Protect your money.  No matter how much you have keeping track of exactly where it is and where its going is crucial.

5.  Two dollars is all it takes to start building your wealth.  See article for more information.

Great business people.

September 1st, 2009 Joe No comments

Good business people plan, analyze, crunch numbers and generally talk themselves into mediocrity.  They do what works and never veer from that plan.  The same corporate plan has been and is used all over the world today.  These people may come across a few golden nuggets in all their meetings and brainstorming sessions but they never have the authority or the balls to implement anything.  That is where the great business people see an Achilles heal, great business people are willing to try new things. Great business people are willing to take risks.  Great business people do not need numbers to back something up because they know that throughout history there have been many amazing things that made no business sense until they were commercialized.  However great business people also can recognize these perfect moments in time when a new idea comes along and is perfect.  New great business people are being born every day.  New great business people are graduating college everyday.   Beware good business people, great business people are quietly taking your jobs.

How do you become a great business person?

$2 Dollars

August 30th, 2009 Joe No comments

Step three of Average Joe Millionaires getting rich 101 is best explained with a story.

When I was a kid I went to my uncles Paul’s house.  We were in his kitchen having a bit of orange juice and when he opened his cabinet I saw a small stack of cash sitting on the top shelf.  As a 13 year old kid a stack of $20 dollar bills an inch high was a lifetime worth of allowance.  I thought that was SOOO much money.  Uncle Paul took the money down and we counted it.  He had about $400 dollars.  He said that every time money came into his hands he took 10% and put it there until he had around $500 dollars and then he put it into a savings account.  He said he started when he was 21 years old.

When he was 21 he met a girl he wanted to marry.  He had talked to her and she told him that he had to buy a ring.  So the next paycheck he got he took $2 dollars and put it in the cabinet.  My Uncle was 21, he was broke, and he was only making $200 dollars every two weeks.   Most people would not even bother saving $2 dollars.  Uncle Paul may have not bothered either but he needed to buy a ring.  Paul ended up saving up around $500 by picking up extra shifts and putting all his extra money in that cabinet.  He bought his ring and married my aunt.  Uncle Paul stuck with the savings routine and from that day forward he started saving between 10% and 20% from every check.  Uncle Paul saved all that money and  put it into a special savings account last year Uncle Paul and I were talking about money and I asked him how it $2 dollar savings account is doing.  Paul said “that account now has about $2.5 million dollars in it.”  $2.5 million dollars and it all started with $2 dollars.