Home Based Business Ideas UK: Making money and keeping money are two different s...

Home Based Business Ideas UK: Making money and keeping money are two different s...: You may have read recently that Jamie Oliver’s restaurant empire has gone into administration. The talented TV chef had rapidly built ...

Making money and keeping money are two different skills

You may have read recently that Jamie Oliver’s restaurant empire has gone into administration. The talented TV chef had rapidly built up a chain of around 50 restaurants over the last few years. Like his new restaurant branches, Jamie seemed to be popping up everywhere on television, in the newspapers and on the Sunday Times Rich list.

Like his new restaurant branches, Jamie seemed to be popping up everywhere on television, in the newspapers and on the Sunday Times Rich list.

We don’t know exactly why his restaurant business went wrong. Some say that his prices were a little too high for basic Italian food, but I think it also has a lot to do with the expensive city centre locations and over expansion.

Jamie apparently put in £30 million of his own money when the company was on the rocks over a year ago. Evidently, he could not let it go and tried to rescue a sinking ship.

What this proves is that it is far easier to make money, or start a successful business venture, than it is to keep it.

When you’re on a roll like Jamie was you have a tendency to want to jump into the next venture and the one after that.

It’s easy to believe your own publicity and think you’re invincible. Instead of concentrating on what you have and consolidating your business, you want to conquer the world.

Would all like to emulate Richard Branson, the serial entrepreneur who has made billions from several different businesses, but we forget that he spent years building his virgin Empire before branching out into other ventures. In fact, he didn’t start the virgin airline business until after he had sold the virgin record business to EMI for several hundred million pounds.

Branson also works with partners and people who have expertise. He doesn’t bear all of the risk or trying to do all of the work himself.

Just because you’re a good chef, it doesn’t mean you can become a good restauranteur, as other celebrity and many lesser known but talented chefs have found to their cost.

Restaurants, like most physical businesses, are enormously expensive to set up and the difference between success and failure can be subtle and fickle.

A good friend of mine had a successful Turkish restaurant in a nearby town. Due to his first venture going so well, he decided that he would start up another restaurant in the same area. This one was to be a little bit more “classy”.

He spent over £200,000 converting the building into his fancy new, restaurant. It was really plush inside; the food was great and it was his pride and joy. Unfortunately, the paying public for some reason did not agree and the restaurant failed.

New owners took over and remodelled the restaurant based on their proven formula. The Turkish food was almost exactly the same, but they opened out the layout and put long tables in instead of smaller tables with white tablecloths. The new restaurant immediately took off and to this date is still nearly always full.

I have since seen a number of restaurants come and go in the same High Street. I know that each time a restaurant or shop closes down it has cost the owners hundreds of thousands of pounds, which is all gone down the drain.

My tip to anyone starting a new business from scratch is not to start a physical business or open up a shop. From day one you would’ve spent tens of thousands of pounds and have to make thousands of pounds every week just to cover your rent, rates, taxes and staff.

In my book, Yes, Money Can Buy You Happiness, there is a section on the celebrities who lost it all. There are countless stories of sports and media celebrities with quickly made and lost fortunes through mismanagement of their money and for advice. I’ve personally assisted form of popstars, I used to see performing on Top of the Pops, who could not obtain a mortgage due to a poor credit history and being behind with their current mortgage. Sam had lost their marriages and families. It was sad to meet once wealthy and famous people end up broke.

Then they were the megastars like Michael Jackson who had sold 700 million records and had repeatedly signed $1 billion contract yet was in debt when he died. Stars like Marvin Gaye, rapper 50 Cent, Toni Braxton, MC Hammer have all been declared bankrupt despite earning millions in their careers. MC Hammer received $33 million from one album alone, but blew the lot spending lavishly on cars and a $12 million home.

There are others in my book, some of whom will surprise you, like the fact that even Presidents of the United States have either been bankrupt or had money problems.

I also cover the common themes running through the lives of those who have made and lost millions. These include:

• Poor investments
• Bad management
• Overspending
• Not taking care of the taxes

Another theme is that most of them came from poor backgrounds and perhaps could not cope with large amounts of money or had a low money consciousness.

This is the type of money consciousness which I cover it in the book is about how you feel about money and how comfortable you are around money. If you think that all rich people are evil and bad this will have a negative effect on you when you obtain a lot of money.

I’ve seen this over and over again when people have money but seem to want to push it away and go back to being broke when they feel more comfortable. Take a look at some of the lottery winners who have spent their way through tens of millions of pounds on houses, cars boats, lavish holidays and investing in any stupid venture that then asked to sink their cash into.

I go through my advice on watching your back and protecting your assets in the book. I also talk about the difference between the way rich people and poor people manage their money.

Check out Yes, Money Can Buy You Happiness on Amazon.

Simple tricks to Save Mobile Data and Money

Simple tricks you can use now to save mobile data, cut your phone bill and rip-off data roaming charges and stop wasting money on your mobile or cellphone.

120,000 buy to let investors quit market since government’s anti landlor...

In this week’s episode:

Thousands of buy-to-let investors have sold properties since 2016, when the then Chancellor George Osborne announced punitive taxes on landlords, according to research by Hamptons International.

Find out what a former UK Housing Minister told me when I confronted him directly about the anti-buy-to-let investor measures and suggested how mortgages could be more flexible for first time buyers.

And...

• Should you pull your cash out of Metrobank?
• Are interest-only mortgages set to make a comeback?
• Find out how you can have fun investing in the stock market without taking courses

See also:

Is property still a good investment?

Leasehold flats legal minefield

London £1 million property glut


Money Can Buy You Happiness

Paperback

http://bit.ly/2MoneyBook

Kindle

http://bit.ly/moneykin

Home Based Business Ideas UK: Can You Really "Think And Grow Rich", As Napoleon ...

Home Based Business Ideas UK: Can You Really "Think And Grow Rich", As Napoleon ...: Think and grow rich, really? One of the all-time great self-help books has to be Think and Grow Rich by Napoleon Hill. I still hav...

Can You Really "Think And Grow Rich", As Napoleon Hill Book Suggests?

Think and grow rich, really?

One of the all-time great self-help books has to be Think
and Grow Rich by Napoleon Hill. I still have my battered old copy of the book,
which I bought in the Philippines in the 1980’s.

Written in the 1930s by Hill while working in the White
House for President Roosevelt during the dark American depression years, it
still inspires people 90 years on.

This book is the daddy of all self-improvement books selling
well over 10 million copies and still selling. It claims to have made thousands
of people millionaires and I know people have turned their lives around after
reading this book and taking action.

One of Hill’s mentors, Andrew Carnegie, started him on a 20
year quest to study and write about what makes people successful and gave him
his secret, which Hill cleverly sprinkles throughout the book without
specifically revealing it.

Carnegie, then the richest man in the world worth over 400
million and still one of the all-time wealthiest men when his wealth is
adjusted for inflation, introduced Hill to the likes of Henry Ford and Harvey
Firestone. He went on to give most of his fortune away setting up thousands of
Carnegie libraries in America and Britain. Bill Gates and Warren Buffett are
following in Carnegie’s footsteps.

The brilliant title, “think and grow rich”, is actually a
little deceiving because it suggests that you can merely “think” and grow rich.

I remember reading:

First you have to decide on exactly how much money you want.

Secondly, you must decide what you will give in return for
the money, as there is no such thing as something for nothing.

There’s always a catch!

However, if you read the book, you’ll discover that it’s
packed with practical ideas and advice to help you accumulate wealth and riches
– whatever that means to you.

The author never suggested that you could just sit there meditating
and think and grow rich. Ohm, the money will come!

Hill specifically refers to many steps including, organised
planning, specialise knowledge, taking decisions, masterminds, goal setting and
taking action to start a small business or getting a better job.

Interestingly, some of the small business idea are not
dissimilar to the sort of things you would do as a start-up entrepreneurial
today.

Napoleon Hill writes about how to start in a service
business, which is ideal for somebody with little or no capital. That’s still
true today. He even offers bookkeeping as an example of a good service to start
with. Even today, most businesses need a good bookkeeper just as much as they
need an accountant. When I was in business, we always struggled to find a good
bookkeeper and had to pay well to find a good one.

Other useful tips he gives are getting help writing a better
CV so that you can get a higher paid job and gaining specialist knowledge as
opposed to the general knowledge taught in schools.

He also talked about people bringing business ideas to
venture capitalist and becoming overnight millionaires.

Some of the chapters were a little weird, but overall the
advice is still relevant even by today’s standards. 

Hill cleverly mentions the one ‘big secret’ placed
throughout the book, but doesn’t tell what it is! You have to read the book to
find it.

Nowadays, it is far easier to get started in business with
the advent of the digital age. Fortunes have been made faster than ever before.
We have so many tools at our disposal that you can get on business within a day
with no premises, leases or staff.

More training and specialist knowledge – from courses on
getting started in property or setting up an Amazon store - is available than
ever before. You don’t need years or even months to learn new skills.

Check out my new book on Amazon, Yes, Money Can Buy You Happiness

http://bit.ly/moneykin

If you would like to learn how to increase your earning
power and expand your wealth, drop me an email to charles@charleskelly.net

Home Based Business Ideas UK: Is property still a good investment

Home Based Business Ideas UK: Is property still a good investment: In light of tougher legislation on landlords, punitive taxes and falling house prices in london, Money Tips looks at whether  property...

Home Based Business Ideas UK: The Real Secret Of Building A Fortune and 5 Quick ...

Home Based Business Ideas UK: The Real Secret Of Building A Fortune and 5 Quick ...: 5 Quick Money Tips And The Real Secret Of Building A Fortune! What’s the funniest money saving tip you’ve ever heard? One of the stra...

The Real Secret Of Building A Fortune and 5 Quick Money Tips

5 Quick Money Tips And The Real Secret Of Building A Fortune!

What’s the funniest money saving tip you’ve ever heard? One of the strangest tips I’ve

heard was on a radio show, which had a daily “housewives tips” feature.

The Alan Partridge sounding DJ would say: “send in your money saving tip on a postcard
and if it’s read out, you’ll get a free mug!”

One tip sent in by a listener recommended gathering up all of the small leftover
bits of hand soap and then putting them into a saucepan. You would then boil
the soaps or bits of soap meld them together to form new bars of soap!

Well if you’ve heard amusing tips one like that let me know, but not on a postcard.

In those days, before the Internet, a popular saving tip was to cut out coupons
from magazines and newspapers and take them into the supermarket to get savings
on certain items. It was always annoying standing behind people rummaging
around in the purse for coupons! These coupons still exist only nowadays they
can scan them straight into the tills.

One of my wealthiest clients used to collect coupons she was worth a fortune in
properties, but still looks after the pennies, so the pounds looks after
themselves.

Nowadays, you don’t even have to cut out paper coupons as there are there are many deals
on the Internet and companies like Wowcher and groupon have made a fortune
cashing in on the ground trend to get a deal or save money! It’s almost become
a national obsession.

You can only go so far by cutting costs and saving money.

Grant Cardone says:

“Foundation of building wealth Focus on income…”

In other words, if you want to build wealth you need to first focus on generating
income and later on investing.

Money held on deposits won’t make you rich either. If the banks are paying you .25%
in your money it will take 40 years to pay you 10% on your cash!

There are hundreds of practical ways to generate more income including:

Takea part time job

Parttime business

MLM or direct sales

Online marketing

Online retailing such as amazon, Ebay, Groupon or shopify

Facebook

Affiliate marketing

Blogging and writing

YouTube

Film extra work

Teaching

Buy to let property

Property  management

In the next episode, I’ll be going into some easy ways to
make some offline income in your spare time.

Check out my new book on Amazon, Yes, Money Can Buy You Happiness

http://bit.ly/moneykin

You Can Have The New Car And The Money

You may have seen my recent Facebook post of me standing beside the latest Porsche 911 and driving a Porsche.

I want to point out that I did not actually buy a new 911 and I don’t actually drive a Porsche at all.

Firstly, I wouldn’t spend £100,000 of my cash on a brand-new Porsche reasons I’ll explain in a moment.

Secondly, I was only in the show room because I was driving a friend to collect the Porsche after service. I was then driving my friend’s Porsche.

The reason I would not spend £100,000 of my cash on a car is that I would prefer to put my money into assets, which puts money into my pocket, rather than liabilities which takes
money out of my pocket. 

I want to put my money into things that appreciate in value rather than depreciate.

Picking up my friends Porsche this week reminded me of when she first acquired the Porsche when we were running the company together. We both had company cars on leases, but whilst I gave my
car back, she kept hers and bought it because she loved the car. 

We did not pay cash for the cars, I think I had a Merc at the time, but they both cost around £45,000 on the road at that time.

Today those cars would sell for around £10,000, which is quite a big drop in value.

Around the same time, I remember buying a property and putting around £50-£60,000 into the deal, which came froma remortgage on another property. Let’s say for argument sake that it was
£50,000 roughly the same price as a Porsche or Merc. 

Five years later, I sold that property and made over £100,000 profit, plus I enjoyed rental income in my pocket of around £15,000 a year after paying the mortgage.

See the difference? One appreciated in value and gave me income, the other depreciated in value and cost money to keep on the road. One cost money - the service on the Porsche was £1500 and that was not even a major service - while the house gave me a semi-passive residual income after loan costs!

Now, you might be thinking that driving a nice car is fun and that you should also enjoy life. Where is it end? Do you keep putting all your money into properties and driving an old banger
until your 70 years old and can hardly climb in and out of it a Porsche let
alone drive one?

Can you have the best of both worlds? Can you have your cake and eat it?

The answer is yes! I’m going to tell you how you can do it. Instead of putting £100,000 cash on the car you could use it as a deposit to buy a property and then use the residual income after costs to lease a car for 2-3 years. 

You have the asset and a new car. You have not wasted your cash on a car which goes down in value, you have put your money to work in an asset.

The poor work hard for their money. The rich make their money work hard for them.

For instance, £100,000 towards a £300,000 house which you turn into a 5 room HMO should produce over £2000 gross rental income per month.

Monthly rental	£2000
Loan costs interest only £200,000 x 3%	£6,000 pa
Monthly mortgage	£500
Monthly running costs	£500
Management	£200
Total monthly costs	£1200
Gross monthly income	£800

I was at a seminar run by one of my mentors T Harv Eker   He wrote the book secrets of the millionaire mind.


He said that would be people when given a choice of one or the other will make
a choice of one or the other. For instance, would you like a winter holiday or
summer holiday? But, he goes on to say, wealthy people will not choose one or
the other they will choose both! 

Why choose one when you can have
both?

What I’m getting at is can you have
a set and the fancy car?

The answer is, yes, you can have
both!

Would you like to tell me how are
you can have both assets and the fancy car?

Well, that’s over this episode. In
the next episode I’ll tell you how are you can have both.

Not really, I’m going to tell you
now. I won’t leave you with oneOf those soap opera, EastEnders cliffhangers.
Bum bum bum bum.

Here’s how it works.

Instead of putting your cash into a
car, put your cash into an assets such as a cash flowing property.

Take the rental income after tax
and expenses from the cash flowing property and use that money to lease a
car. 

In the earlier example, I said that
I received rental income from the property I bought. That rental income
would’ve been more than enough to lease a Porsche and I wanted to lease a
Porsche. You can do the same with property.

You can lease a pretty good car for
anything from £250 per month to a supercar for £1000-£1500 per month.  

Even with mortgage expenses you
should have more than enough income to lease a car. In fact, if you don’t have
enough income to lease a car then I would argue that perhaps the deal is not a
very good deal.

In my forthcoming book, Yes, money can buy you happiness, I go into more detail about creating wealth and owning assets. 

So you can have both and you can’t have your cake and eat
it. After all, what’s the point of having a cake if you can’t eat it!

Check out my new book on Amazon, Yes, Money Can Buy You Happiness

http://bit.ly/moneykin

Is property still a good investment

In light of tougher legislation on landlords, punitive taxes and falling house prices in london, Money Tips looks at whether property is still a good investment.

First, we had the George Osbourne 2015 finance act phsing out tax relief on buy-to-let
mortgages. Tax relief will be gone by next year as will many property owners
and landlords as they start to pay more tax and even struggle to show a return
on their investment. This is a travesty and goes against all principles of
business lending.

Then Chancellor George Osbourne also removed wear and tear allowance, which
will cost small landlords dearly.

If that wasn’t enough, the government are now proposing new rules to do away with
Section 21 notices, which enables landlords to legally regain possession of their
property without having to give a reason or find fault.

Many property owners have already sold up or reduced the size of their portfolio in
order to cut borrowing. Property prices in many parts of the country have
dropped for a number of reasons, including of course Brexit.

Some see this as an opportunity to buy more property as so-called amateur landlords
run for the hills.

Others worry that long term open-ended tenancies may be the beginning of the end for
the buy to let business as we know it. The banks will certainly be concerned
about gaining possession of their security in the event of a default on the
mortgage.

The media have been all over the story citing cases of victims of
unscrupulous landlords who apparently evicted them at short notice because they
made a complaint about a repair job.

We usually only hear one side of these stories, which surprise me for two reasons.

One, most landlords would want to maintain the property in good order and any that do
not are shooting themselves in the foot and giving the vast majority of good
landlords a bad name.

Secondly, no landlord wants to evict a good tenant who is paying rent knowing that they will
have a void and then have to pay an agent to get another tenant.

So what do I think of this?

Housing Crisis

These measures will not solve the housing crisis. If anything, it will make it worse
as more landlords pull out of the market to avoid open-ended long-term
tenancies. If this happens, rents will go up based on the simple economic laws
of supply and demand.

Long Term Secured Tenancies

Private landlords were never meant to fill the gap in the market for long-term
tenancies. Buy-to-let mortgages do not allow such tenancy agreements under the
terms of a typical mortgage. Secured tenancies were traditionally was provided
by council housing, which have not been built in any great quantity in the
London area since the 1970s. Despite government encouragement and cheap
borrowing, councils are often reluctant to build more council houses as they
fear that they will lose them further down the road and the right to buy
scheme. Many have even sold of housing stock to huge housing associations.

The government and local authorities must build affordable rental social housing as
a matter of urgency. The current scheme of asking developers to give a percentage
of the development over to affordable housing is just not working or providing
enough stock. Frankly, in the south-east affordable housing is just not
affordable. I have seen developers who cannot offload affordable housing even
on shared ownership schemes.

Has Right-to-Buy Passed its Sell-by Date?

The government also needs to restrict right to buy in order to keep housing stock
within the social rented sector and remove the excuse local authorities use to
sit on their hands whilst spending millions housing people in expensive
temporary accommodation.

The right-to-buy was a revolutionary flagship policy under Margaret Thatcher‘s
Conservative government in the late 1970’s and 1980’s. It did a lot to help social
mobility and allow people get on the property ladder. The problem is that the
money from the sale of the council houses was not reinvested into building new
stock.

Underlying Shortage of Housing in the UK

There is still a massive shortage of housing in England, as the population has risen
sharply in recent years due to immigration and people living longer. Divorce
also increased the need for smaller rental units such as studios in one-bedroom
apartments. Net migration, the difference between people coming into the
country and people leaving the country, has been running at around half a
million people each year for years. A small city the size of Bristol would have
to be built every year to just to cope with the number of new arrivals alone,
according to organisations like Migration Watch. As this is unlikely to happen
- as far as I know there is no plans to build another Milton Keynes or Basildon
- there will be a strong demand for property for the foreseeable future.

Even if there are fluctuations in the market, the fundamentals and underlying demand
will still remain. The U.K.’s population is set to hit 60 million within the
next decade and they all will need somewhere to live.

As for this latest announcement, we don’t know exactly how the new rules will play
out or when they will be implemented. We do know that the government do not
want to go back to the bad old days of protected tenancies where a landlord
could never regain possession of their property or increase the controlled rent.
Until a few years ago, there were thousands of these properties with sitting
tenants dating back to the 60’s and 70’s. Owners would sell off the properties
at huge discounts at auction. Tenants were offered thousands of pounds in
bribes to vacate. A good friend of mine used to buy these properties in London
and then negotiate with the tenant to leave with a nice cash sum! They made a
fortune. If we return to this situation, the supply of private rented
accommodation will dry up.

Like it or not, the government needs private landlords as there is simply not enough
social housing provided by councils and housing associations. Some corporate
landlords are coming into the market but they are catering for the luxury end,
such as in the city centre studios and co-living for young professionals.

So for all of the above reasons, I think there will be a demand for private rented
accommodation even with anti-landlord legislation. Landlords are small business
people and small business people are resilient to legislation changes and
government red tape such as licensing (another issue for the sector to cope
with). They will survive and adapt. Like Darwin said, it’s not the strongest
species that survive, but the most adaptable.

Property is a long-term investment and there will always be challenges.

Landlords and investors need to keep abreast of new legislation by attending courses and
seminars run by reputable organisations.

The National landlords Association is a good source of information and it lobbies the
government on behalf of landlords.

Property still a good investment because you can use leverage or bank and other people’s
money to acquire properties.

If you currently own property, I would not jump ship just yet. If you are planning
to invest, I would proceed with caution and always educate yourself before
dipping your toe in the market.

If you would like further details a property courses, such as a one-day introduction to
property investing, drop me a line.

I have a limited number of complimentary tickets to attend an excellent course run
by experts, which will give you a clear overview into the market.

Check out my new book on Amazon, Yes, Money Can Buy You Happiness

http://bit.ly/moneykin