Over at TheInfoPreneur.net, I talked about the 80/20 rule briefly in a post and I thought I would expand upon it somewhat today. It is otherwise known as the Pareto principle. Simply put, it says:

80% of your results come from 20% of your efforts.

Now, the exact 80/20 ratio is immaterial here and it may not hold exactly true in all cases. However, I think you will find, across the board, that most of the benefits in your life come from roughly 20% of your work.

The “trick” is simply to focus on the 20% and not get so worked up over the 80%. When you do that, you’ll find that you can work less, but make either the same amount of effect or more.

Let’s look at some examples.

• Answering Email. In almost all cases, dealing with email has no direct impact on your bottom line. Obviously, it can’t be ignored, but chances are email falls within the 80%.
• Social Media. Social media most definitely falls within the 80%. There were plenty of people making money on the Internet before Twitter and Facebook existed. These things are tools. They are good tools. But, they are not direct contributors to the bottom line.
• Writing An Ebook. There is a good chance that this would fall within the 20% for you. An ebook helps you increase your brand. It can help you grow your list. These are clear benefits.

So, the first thing you need to do is define exactly what your targets are. Are you looking to make money? Then money is a target. Perhaps traffic. Brand growth. On the flip side, lots of Twitter followers or high comment numbers probably aren’t end goals as much as they are mere indicators of whether your end goals are progressing.

With your end goals clearly defined, you have a guidepost by which to judge the things you do all day and determine if they are direct contributors to those end goals or not.

You’ll find you might have to be fairly brutal in your evaluations. You might think that answering every blog comment is very important, for example, but is it really? Exactly HOW is that contributing to your end goal? Same with using Twitter. Answering email. Even writing posts!

Realize that just because something might fall within the 80% doesn’t mean you’re not going to do it. It does, however, put some perspective onto its relative importance.

So, if my primary goal is an established blog-based business with a full-time income, let’s run through a sample categorization of some of the routine tasks involved…

* Note that I put blog posting into both categories. Obviously, writing posts is important, however I think many bloggers think that posts are the final product of blogging as a business. They’re not! Most times, blog posts do not DIRECTLY impact income, which is why I put it in the 80% category. At the same time, you’re not going to achieve much reach if you don’t do it, which is why it is in the 20%. So, my point here is to not limit your thinking. You cannot write posts all day and expect to get paid. In fact, your posts won’t make you a dime unless you’re doing the other 20% tasks.

So, how do you apply the 80/20 rule to your own blogging? Try this:

1. Make a list of every type of tasks you do as a blogger.
2. Make a separate list of your end goals.
3. Now, go over the list you made in #1 and categorize them based on whether they have a direct impact on your end goal.

Now, with this information in hand, you can do the following:

1. Readjust your emphasis on the 80% tasks and focus more on the 20% tasks. Sometimes you may find that some things that you do serve no real purpose at all, in which case you can simply eliminate it. Sometimes, the 80% task is important, but doesn’t directly lend itself to the end goal (i.e. email). In this case, you might want to adjust the emphasis on it to allow more time for more important things. For example, instead of having email open all day, keep it closed and only check/reply to email twice per day.
2. Evaluate your 20% tasks and ask yourself this question: Are you even doing those things which will help you achieve the end goals? You might find that you need to add some 20% tasks to your routine and that you were just spinning your wheels beforehand. For example, if your goal is to generate income from your blog and yet you spend all day writing posts and tweeting, then you probably don’t have any 20% tasks because you’re not really doing anything to help you achieve that end goal.

Taking some time to evaluate this for yourself is one of the most important lessons there is in being a successful blogger.

Blogging can be quite overwhelming without a system of evaluation of importances. All tasks are NOT equal. You need to learn to determine which are important and which are not as important, then learn to divide your available time accordingly.

Master this and you’ll be a HUGE step ahead of other bloggers who aren’t doing it.

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Spending time on the web is part of my job, and I do a lot of it. I read sales pages, product pages, check out new apps, and always try to find new blogs to read.

Design on a Dime

Although there’s never a lack of good content on the web, for a while, there was a lack of good presentation.

For instance, 2-3 years ago, a blog could get by without a fancy design, but these days, I’m not so sure that’s the case. As design continues to improve, premium themes get cheaper, and good designers become easier to find, even a small-time blogger has the power to create a stunning design that screams “read me.”

Product Launches Became Commonplace

When Jeff Walker created the product launch formula, very few people were using that technique to sell products online. Sure, records labels and movie studios had been using it for decades, but on the internet? Not so much.

Now, if you look hard enough, you’ll see new launches every day. We’re not talking the basic, cut of the mill launch either, we’re talking polished and professional, the kinds that make even marketers want to buy.

Free Content

There has always been free content on the web, but now the sheer quantity and quality is becoming borderline ridiculous.

What once someone could charge $1,000 for, you can get for $99. What you could once sell for $99, is now free. Free video courses are built on state of the art plaftorms, and free PDF’s are designed by the best in the industry. It’s gotten so bad, that you can’t even give away a free report unless it’s game changing material. Think about that…it’s tough now to just give stuff away!

What Does It Mean?

So what’s the takeaway here, and why should you care…

For starters, unless you take your blog seriously, and are ready to go all in, then you’re going to be passed up by someone that’s willing to work harder, sacrifice more, and is more eager than you are.

It also means that ordinary isn’t good enough anymore. You can’t get by if you aren’t willing to put everything you have into each opportunity you’re given.

This Isn’t Rah Rah B.S.

I know it sounds like I’m just trying to spur you on to working harder and improving your motivation. After all, I do that a lot…I like to inspire the best in people.

But…that’s not what I’m doing here. As a businessman and entrepreneur, these facts disturb me. I have to work harder today than I did yesterday in order to achieve the same results.

I can’t just write up a simple PDF to give away to my audience in exchange for an email address…I have to create something that I could charge for in order to give it away. I can’t just launch products…my video has to be excellent. I have to be on my game everywhere…my blog, other blogs, Twitter, Facebook, etc.

My sales page has to be good, my design has to be good, my content has to be stellar, and my product has to be better than anything else on the market. If it isn’t, word will spread, and then I’ll be toast.

Only the Strongest Will Survive

My point is this…if you want to make it in this business, or in any business, then you’ll have to raise your game and treat your blog like a business. You can’t afford to sit on your laurels, or some upstart will pass you by.

You can’t rest on your audience. When you do, they’ll find another blog to read or another book to buy.

You can’t ignore customer service, or the social media storm will sweep your business into the sea, and you’ll have nothing left with which to rebuild.

What I’m trying to say is that you can’t just decide to start blogging for the hell of it. It just doesn’t work anymore. There’s too much noise…too much signal…too much good stuff out there to compete with if you’re going half-assed. People can see through crap, and they know if you’re full of it. They also know if you aren’t really digging it.

Blogging might be a labor of love…but it’s labor…period. Ordinary just won’t cut it when there is so much extraordinary to be found. Good won’t survive against great. Interesting won’t survive against awesome.

It might not be pretty, but it’s the facts baby. So, I ask you…are you improving your game, or are you willing to watch from the sidelines?

The game isn’t getting any easier, and there are more players every day. If you want to stay off the bench, you’ll have to bring your A-Game. Are you with me?

Nathan Hangen writes about web entrepreneurship at NathanHangen.com, and about how to use social media to fuel your brand at Making It Social. Follow him on Twitter @nhangen.

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It is a rat-wheel. You just sit there and spin, but you go absolutely nowhere.

There are three options to any decision or action in life:

• Yes
• No
• Maybe

There are only two answers you should ever accept in yourself: YES or NO.

“Maybe” is dangerous. It hangs you up. It leads to inaction. It leads to confusion. It leads to overwhelm. Habitual indecision is not a good thing no matter how you slice it.

If you look at any successful leader, they have one thing in common: They made decisions. They did it quickly, and they didn’t look back.

Some mental incompetents look at people who do that and call it simple-minded, unpolished, unsophisticated. They couldn’t be more wrong. Power lies in simplicity. Complexity is the result of doing something wrong. The worse leaders are the ones who get stuck in figure-figure mode, second-guess, make decisions slowly.

How can you apply this in daily life?

• When you open an email, make a decision on what to do with it. If more data is needed, move the email to a different folder then schedule time to deal with it decisively. If you can handle the email right away, do so and then delete it. Don’t let a bunch of indecision pile up in your email inbox.
• Got an idea for a new blog? A post? A strategy or tactic? Well, make a point to take action on it or decide to forget about it. Yes or no. A bunch of maybe’s just clog your mental pipes and nothing will happen.

You should be brutal about this, my friends.

Life could be viewed like an assembly line of decisions. Yes or no keeps the belt moving. Getting stuck in a maybe stops the progression.

If you find yourself stuck in a “maybe” rat-wheel, then determine exactly what information you need in order to resolve the maybe. Then, go get that information and bring the matter to a close. If you simply can’t decide, then just say “no” and move on with your life. Any decision is better than none.

You want more time? You want more mental clarity? Apply this advice to your life.

Yeah, this is a bit philosophical for a blog about blogging, but I think it is very applicable to us all. Do you agree with me?

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It is everything in business. It can take a while to build it, but you can ruin it in minutes if you are a big enough idiot.

Tiger Woods is just such an idiot. He is a gifted athlete and a man (I thought) worthy of respect. He had it all, but most of all he had the respect of his fans. And he lost it all. Sure, there are those who say it is his personal business and nobody should talk about it. Whatever… it doesn’t alleviate the fact that he’s an idiot.

Tiger Woods had trust. Lots of trust. He had a beautiful family. He had sponsors and people lining up to do business with him. He has 2 children. And what does he do? Screw it all up because he can’t keep willy in his pants. At this juncture, it looks as if he was cheating on his wife with multiple women, and all while having kids. Cheating on your wife is disreputable enough, but when kids are in the picture, that’s REALLY bad. As a family man myself, I find that just lowest of the low.

But, this post isn’t about Tiger Woods. His business doesn’t concern me. However, there is a lesson in it – a lesson for all businesses. I am going to address blogging specifically, however.

Trust is an important currency. It takes a while to build, but you can lose it all quickly if you’re an idiot.

Make sure that everything you say on your blog or to your mailing list is truthful. Never lie. Never endorse something that you do not fully beleive is worthy of your endorsement. Because, you know what? Eventually, it will come back to haunt you.

Be authentic on your blog and out in social media. Be truthful. If you are a straight-shooter, then that trust becomes part of your brand. It is valuable. Once you have it, don’t ruin it.

As an opinion leader in your market (as is easy to become with skillful blogging), your word is your value. Don’t squander it.

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I have been working on tightening up the funnel over on PCMech.com. My goal is to drive more readers onto the email list. This is, of course, always good for business.

One of the many things I did was create a simple squeeze page to drive people onto the list. I sent out a tweet about the squeeze page. In response I get this on Twitter:

Hope you’re not trying to turn into a gimmicky internet marketer! Saw your tweet yesterday about Product Launch Formula!

Yes, the day prior, I sent out a single tweet about Jeff Walker’s Product Launch Formula. I did not use an affiliate link. I just really like PLF. I consider PLF to be a must-have for any serious online businessperson.

So, the fact that I talked about PLF and made a squeeze page puts me into the same category as a “gimmicky internet marketer”, apparently.

Then, I got this tweet from the same person:

Well, I respect you as an expert of sorts, but not for using "internet marketing products"!

Huh? So the fact that I learn from those who came before me is a bad thing? A gimmick? By using “internet marketing products”, I have managed to almost double my business in the last 2 years. I’m on track to break the $200,000 mark in revenue for 2009 – as a BLOGGER.

Put more accurately, as a BLOG MARKETER.

The knowledge to do that doesn’t come through telepathy. That knowledge doesn’t spontaneously combust into my head while I sleep. Of course I study other people’s teachings!

What motivated me to write this post, however, was my strong belief that this attitude of natural distrust is one of the most concrete barriers to one’s success that you could ever have.

I have no idea if this person has an aim to build a business or not. But, the attitude exhibited is one of an employee. A person who will always be an employee.

That kind of knee-jerk reaction is one which keeps you from learning new things in life. It effectively bars an entire field of knowledge from you, which you know nothing about, all because you’ve concluded that it is all a big bunch of BS.

The Important Message

Always be willing to learn new things.

The moment you write off entire subjects that you have never personally inspected, you are just sealing your fate exactly where you are right now.

The moment you take somebody else’s judgment of a subject (one which they probably never inspected either), you’re just allowing THEIR stupidity to rub off on you.

The opportunities lost because you jumped to a conclusion rather than personally inspected something could be mind-boggling.

And that is why I decided to write this post. Small things lead me to a larger idea. And, like a good little blogger, I thought I’d share with you.

Peace out.

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The way it worked was this:

1. First, presentations. Nothing formal, but if any of the group members wanted to present some useful information, that would happen.
2. Hot seats. Each of us would take our turn on the hot seat. We could talk about our businesses and our challenges, and get help from the rest of the group.

It is incredibly powerful.

In 2009, one of the biggest contributing factors to my business has been the power of others. I routinely mastermind with folks here in the Tampa Bay area and occasionally from elsewhere in the state.

Forming A Group

I highly recommend that you work to create a circle of people around you who are doing the same things. If you are interested in growing your blog, then find others in your area who share similar interests. Namely, bloggers.

If you don’t know anybody like that, one of the best sources for you is Meetup.com. Find a group in your area. If there isn’t one, FORM ONE.

Seriously, that’s what I did. I was already part of a mastermind group in this area (a private one), but I went to Meetup and formed my own group to help others in the Tampa area. There is a small cost associated with forming a group on Meetup, but it is more than worth it.

Another option would be to take to Twitter or Facebook and find people with similar goals who might want to form such a group. If you guys aren’t in the same geographical area, then you could just schedule conference calls over Skype.

By combining what you learn online with real-world interaction with people of similar interests, you will make progress in leaps and bounds compared to what you’ve done in the past.

Running The Group

You will need to decide what kind of style you want in your group. In the past, some of our masterminds have been loose and more social, with a little business talk. These don’t have the same usefulness.

The best groups are the ones that are ran more like a meeting. With a structure. This way people gain value from the meeting rather than it just being an excuse to goof off.

The meetup I run on Meetup.com is about half-and-half. In the beginning, there is a more structured conversation to help people out. Then, we move into networking and conversation to allow people to get to know each other better. For the private groups I attend, we run them more like a board meeting.

Your Action Plan

If you are not in any group right now, I highly suggest you make this a priority. Go to Meetup.com and find a group in your area. Considering you are a reader of this blog, perhaps a blogger’s group or an internet business group would be appropriate.

If you cannot find a group on Meetup, consider creating one. Being the group organizer automatically makes you a bit of a leader in your area. People will find your group. You’ll meet new people and you never know where those connections will take you.

What we do is inherently alienating unless you make a point to form groups. Staring at the computer in a back bedroom is no way to run a business. This is a people business.

I’ve learned this better than anybody.

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Nothing personal, but many times I end up with a card for somebody I barely remember.

So, as a person designing your business card, put yourself into my shoes. I don’t really remember you. And all you’ve given me is some phone numbers, a snail mail address, your name, your email.

Well, I’m not going to call you if I don’t even know who you are. Likewise, I’m not going to email you unless I have something to say.

So, it is your job to build the relationship. Let me form a little line between you and I which doesn’t have a commitment to it and doesn’t put me in the awkward spot of asking “I know I’m emailing you but who are you again?”

In other words, PUT TWITTER ON YOUR DAMN BUSINESS CARD!

How can you show up to a blogging conference without this stuff?

Even worse, some of the people I’ve got cards from are “PR professionals” (or so they say). Yet, they’re not using Twitter? What gives?

Some people did put AIM or Skype on their business card, but that is pure interruption. Am I going to chat you up just to ask you who you are again? That’s a douche maneuver.

Twitter isn’t a toy, guys. It is a powerful tool for relationship marketing. It is important. If you don’t have Twitter on your business card, throw it away and make a new one.

Without Twitter, you’re just future trash can liner. With Twitter, I’ll be able to get exposed to your tweets for the next year. And guess what? Next time we meet, I’ll recognize you and I might even approach YOU and say hi.

Here, if you need some help, check out some of the things that went through my mind when I did my latest biz card. Check out these 5 tips for your business card.

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This business is NOT complicated. The only secret there is is TAKING ACTION.

Yesterday, we listened to people like Brian Clark (from Copyblogger), Sarah Evans, Ted Murphy and others. All of them “experts” and at the top of their game when it comes to online/social media. They are on stage and they’re talking. They are perceived by the audience as experts because of that.

However, are they really experts?

The answer is yes, however so are a lot of people in the audience. And that’s my point. All of these experts are basically saying the same basic things when it comes to building brand, building traffic, etc. When I go to BlogWorld in a couple weeks, they will be saying the same things.

The truth is that this business is not really that complicated. It comes down to the basics.

The difference between those people on stage and those people in the audience is that the audience hasn’t used their knowledge and taken the same actions as the people on the stage.

When I come to these events, whether I am speaking or not, I have people who want to meet me, perceiving me as some kind of expert. Am I? There are people in this room who know as much as I do (if not more). The only difference is that I have DONE things that others haven’t. That’s it. And the people on stage have done things that others haven’t.

So, by all means, learn. Keep learning. But, don’t ever stop DOING. You’ve got to BRING IT!

And if you do that, you might find yourself on a stage some day.

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Hey, you want to modify your blog theme? Well, just FTP into the themes directory, put the proper theme template tag in there, with the right function attributes, throw a little cascading style sheets into the mix, and you’re done! See how easy that was?!

I feel for new bloggers today. I really do. Those of us who are already successful with our blogs take the technology side of things for granted. It is second nature and we think nothing of it. Or we just hire somebody.

For a lot of new bloggers, it isn’t so easy.

Technology is, for many, a chasm that must be crossed before you can get to the fun stuff on the other side.

Deep inside the closed doors of the Blog Masters Club, I also have students who are running up against the barrier of technology. And it is a tough issue to deal with. After all, Blog Masters Club isn’t a course about web design or programming. It is about the business of blogging. Unfortunately, though, that business cannot take off if you’re still struggling to get Wordpress set up and route your domain name to it.

In the Club, I have over 40 videos designed to cover those basics. But, watching a video and translating that into the real-world is still sometimes daunting for a newbie. And, when they go out into the world to get help with tech issues, they get even more frustrated. More words they don’t understand. People who do understand things are perceived to be fairly snobby about it, perhaps.

What to do?

The Importance of Words

Words are how we convey thoughts to others. If you don’t understand the words, you’re liable to feel pretty confused. Ever try communicating with a person who speaks a different language? It can be rather frustrating.

Technical terminology is often misunderstood by beginners. My observation, however, is that most newbies fail to take it upon themselves to learn the terminology.

Simply put, if you gloss over words that you do not understand, you’re going to get confused and you’re going to ultimately separate yourself from that confusion. It is human nature. We don’t like confusion. And, in this case, a separation means throwing up your hands in disgust and saying “This whole blogging thing is just too complicated.”

The entire problem can be avoided by applying a little due diligence, realize that you’re not understanding the terminology, and go out and DEFINE these words for yourself. I mean, in most cases, a little looking around Wikipedia will get your confusion answered. Or do a Google search for the term.

But, for God’s sake, don’t just keep pressing forward in the face of a barrage of technical terms you don’t understand. You’re just going to run aground!

How I Learned

I got started on the Internet via a magazine article on how to make a website in 20 minutes. I thought it sounded cool, and I followed the steps.

So, I proceeded in a methodical manner. The site was stupidly simple, but I made it myself. Then, I started progressively making changes to the site. I learned by proceeding toward a goal and learning only what I needed to know to make THAT happen. I also learned by watching others. I would look at other people’s sites and, if I liked something, I’d view their HTML source and literally COPY it. Then, I’d mess around with it little by little to adjust it to something of my own. By playing around with these things in small baby steps, I learned the ropes.

So, I learned by watching others, copying them, then altering it to make it my own. And I did things in baby steps rather than trying to accomplish everything at once.

So, that’s my advice. It is a tough issue to advise somebody out of because, at the end of the day, it takes a degree of perseverance to push through that initial confusion. And I can’t instill that into anybody.

What about you? If you have gotten through those initial confusions, how did you do it? What worked for you?

And if you are currently in that initial confusion state when it comes to getting set up with your blog, have you found that anything helps? Got any good resources to share?

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However, it is really easy to get so involved in MAKING money that you forget to figure out how to KEEP it.

At the same time, it is really easy to get so involved in the business that you forget to look at the world around you and see what’s happening. After all, this stuff is a lot of fun! I really enjoy learning new ways to make money and improve the business. I enjoy following the world of technology.

If we look at the offline world, however, I see a storm brewing. I see a federal government increasing in size. I see a volatile economy and a government which seems quite insistent on doing the wrong thing to fix it. After all, no economist in the world can justify the logic of spending more money and raising taxes on the producers in society in order to avoid an economic downturn.

The “stimulus” is anything but, and is just putting another huge nail in the coffin of the U.S. economy. The U.S. debt is now totaling around $600,000 for every family of 4 in this country. All signs point to a period of high inflation ahead, and some are even wondering if we’re facing a new Great Depression in the years ahead. If that happens, some are going to use the confusion to seek to institute anti-capitalist policies which will only seal the fate.

I’m just telling it like I see it. That said, I am not a doomsday kind of guy. I am, however, an “eyes wide open” kind of guy.

The answer to this lies in understanding economics and in practicing sound fiscal policy on yourself, your family and your business.

Over the last few weeks, I have been spending a little time thinking about my long-term financial security. After all, I have a family and I am responsible for them. I have been able to provide a good living for them thus far by blogging for a living, but there are bigger things to consider than just my own business when it comes to future.

After all, all of us who work online also operate in the real world. And that world is changing. The economic environment ebbs and flows and it affects our online businesses.

In this article, I’m going to provide my advice. At least as I see it.

You’re Not a Consumer, You’re a Producer

Partly because of the fact that most people completely lack any understanding of what makes an economy tick, people have become used to being called “consumers”. That’s ridiculous. If we have a nation of consumers, the country fails.

You should think like a PRODUCER, not a consumer.

Your entire financial bedrock is based on the fact that you need to CREATE more than you consume. You produce more than you consume.

Those people out there interested in just getting by, in milking as much as they can from the system… those people are looking at certain financial ruin, even if they don’t know it yet.

The valuable final product of whatever you’re doing for a living should be something which is exchangeable with others for money. This could be in the form of a physical product, a service, or information.

As bloggers, our valuable final product is information. Information is valuable because it can be exchanged for money. After all, people will pay for information they can use. Therefore, it is a product. So, create more value than you need to live. My job, then, as a problogger, would be to create more value than I need to live. It would be to help other bloggers collectively build more wealth for themselves than I would need to live. This would be value to others.

I could sum this up like this:

1. Never forget that your business needs a valuable final product, exchanged with others for money. A lot of bloggers tend to forget that this is how you actually make money in this business.
2. Focus on providing maximum value to your “customers” (whether they be paid customers or simply readers of the blog). By providing maximum value (more than you need to live), while also doing #1 above, you’ll always have enough money.

Converting To Assets and Preserving Wealth

It is one thing to make money. It is another to keep it.

Now, I’m not one that preaches the virtues of saving. Keeping money in your bank is actually pretty stupid as a long term strategy. Here’s why…

The biggest problem here is inflation. Those dollars we work so hard to earn are based on essentially nothing but our confidence. The dollar is no longer based on gold or anything else which is tangible. When you combine that with the fact that the government is printing money like crazy, inflation is inevitable. It is happening right now, and I believe we are looking at a hyper-inflationary period very soon because of the HUGE deficit spending by the idiots in Washington.

What this means is that those dollars become less valuable. And that means you can’t buy as much with it.

The unfortunate thing about all this, too, is that most Americans are trained into the idea of saving. We’re trained to think in terms of IRAs, 401(k) plans, and building a nest egg for retirement so that we can ideally live off the interest when we’re old. The problem is that inflation is happening faster than these savings vehicles can work.

Here’s a video from Robert Kiyosaki (author of Rich Dad, Poor Dad) where he claims that “Savers Are Losers!”:

So, as we make money with our online businesses (or however you go about it), it is smart to think about how to preserve that wealth, and how to hedge against loss. By doing this, you maintain the value of your assets and keep what you build.

Now, I am not a financial planner. However, here is my view on how to do this…

1. Invest in metals. Gold and silver are traditional hedges against inflation and an insurance against economic crisis. There is a finite amount of supply in the world, and gold is an asset which has intrinsic value independent of currency. Especially right now, gold is increasing in value tremendously. Now, realize that gold is also a commodity and that means it is subject to market forces of supply and demand. Purely as an investment vehicle, there is an argument to be made about how well gold works. However, as a hedge and as a way to preserve wealth, I believe it is unquestionable.
2. Consider real estate. Real estate is a good place to have money – IF you do it right. The thing to consider about real estate is that it is not a liquid asset and that, in a deflationary period, you’re going to be more likely to be in a position where you can’t get rid of it. Case in point, a lot of people’s homes have lost value in the last couple years and, due to oversupply and other issues, cannot sell the home. When the market is bad, buyers disappear. So, the thing about real estate is BUYING LOW. Then, you can turn it into a rental property. As more and more people cannot afford to buy houses, they will need to rent.
3. Invest in income-producing assets. A car is an asset. A computer is an asset. Yes, we need these things, however they depreciate and are no way to preserve wealth. On the flip side, buying an asset which can produce wealth is very smart. For example, buying up defunct web properties which you can then turn into income-producing websites might be a good idea. Buying information which you can then apply to produce more money would be a good idea (an investment in yourself). Think in terms of creating new income streams.
4. Be Smart With Debt. It is probably pretty obvious that having no debt is ideal. That said, the use of credit is actually a very helpful thing – IF you practice sound financial planning. Never use credit based on the HOPE of being able to pay it off. In my case, I use credit solely for the purposes of turning a purchase into a payment stream. Instead of forking over a large chunk of cash at once, I split it up into payments using credit. But, I NEVER use credit for short term gratification when I don’t have it exactly laid out where the money is going to come from to pay off that debt. It is short-term thinking with use of credit which has gotten so many people into credit trouble.

How I’m applying this:

1. I am making moves to transfer some of the wealth I have created with my online business into gold and silver. I am doing this strictly as a hedge against the hyper inflation I think is coming. I have a CD with my bank which I have used in the past to invest business financial reserves and overcome inflation. The problem is that interest is really low right now and inflation is higher. So, the actual purchasing power of the money in this CD is decreasing. For this reason, I am planning to liquidate the CD and invest a large portion of it into metals and other types of assets.
2. My wife and I are seriously considering selling our home and renting instead. First and foremost, we want to live somewhere else and closer to the beach. At the same time, though, this house has already lost value due to deflation of real estate prices. We could either move out and rent this house out and be in the likely position of having to spend more money to keep it than I could make in rent…. or we could sell it, cut losses, and therefore be independent of further deflation in the market. I think the next few years are going to be even HARDER to sell a property than it is currently. For a few reason, I’m really seeing the virtues of renting for the next few years rather than owning.
3. I’m working my ass off to build my business and produce new income streams. This is no time to get conservative and wait anything out. This is high time to bust some ass, build assets, build the customer base, build a brand. By doing that, you will take over where other people in your market drop the ball.

The overall point of this article can be summed up by these few points:

1. Make as much money as you can by providing a valuable product in exchange for money, and producing more than you consume.
2. While making as much money as possible, keep your eyes on the economic climate we operate in. Do what you think is smart to maintain the value of the wealth you create and realize that we work and operate in an ever-changing world that you need to plan for.
3. Focus on building online assets, building your brand, and giving as much value as possible. The people who do that will be the ones at the top of the food chain as the economy finds new equilibrium.

As one last thought, let me say this. This digital economy we have here on the Internet is fairly new territory. The idea that information has value (even though, in the real world, it is just a collection of bits on your hard drive) is a new one, but that doesn’t obviate the fact that people are paying for information and seeking it out each and every day. The Internet, and businesses which operate online, are poised to do incredibly well during any economic peril.

Case in point, 2009 has been my best financial year to date since I begun working online. This while the fundamentals of the economy I live in are getting much worse.

So, for readers of this blog, there is every reason in the world to delve into this stuff and get busy with it. This is no time to worry. This is a time to get things done.

So, what about you?

What are you doing to manage and preserve your wealth? Are you even giving it some thought?

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