It’s that whole “Assets vs’ Liability” thingy … Now I get it!
I thought I’d break away from my life for a few minutes to write another “Where the Hell has Phil been?” post.
Well for the most part of last week we were without internet. Not because there was a glitch in the system, or our computers broke down or anything. Simply put, we couldn’t pay our bill. That’s not true. Actually we could pay our internet bill on say Tuesday, it’s just when we went to pay it, two other bills or financial thingy’s came up.
Yup.. we’ve been playing the “first bill to get to the bank gets paid that day” game for the last couple years.
So since I was without internet ( not counting my Droid ), I found the time to read a short book I started a year ago called “Rich Dad Poor Dad”. I remember the first time I attempted to read it I don’t think my attention was on what the book was telling me. I think I might have been looking for tips or insights on how to make more money. I don’t know, I just didn’t absorb what I was reading and half way through I stopped reading.
This time around, absorb it I did! Well at least the first half.
Assets Vs’ Liability. Of course. It doesn’t matter how much money we make, it’s how we manage, use it and grow it. We can make all the money in the world, but if we constantly live beyond our means without creating “Assets” to cover our “Liabilities” then we are just in this constant cycle of trying to keep up.
Here’s my example.
A couple years ago I lost my job of ten years. At the time my wife and I were bringing home over $7000 a month after tax’s. A few years before losing my job we bought a house that we could afford and filled it full of furniture. We were on top of the world and spending money because we had it. We had great credit and lots of credit to spend if we needed to, or didn’t need to. Our house doubled in value and we refinanced the first time to buy a new 4Runner for me ( which I still have ) a new computer for me ( which I still have ), and to pay off all our debt. We then had no debt, no car payments, and if I remember correctly an extra $500 per month after all was said and done.
Yet we didn’t take advantage of that opportunity to save money. We just kept on going with no financial safety net. We just kept spending money because we had it. Not building asset’s and assuming that we were secure. Until I lost my secure well paying job.
Losing my job was crushing to me. Being part of our recession was even more crushing since I couldn’t find a job for seven months. Holy Crap! I’ve been working since I was 15.. how could “I” not find a job.
The good and bad news is that I had enough credit built up to keep us afloat for almost a year. Yet during that time we didn’t really change our spending habits. We had money so we spent it!!
Until the money ran out and reality hit. We couldn’t pay our mortgage. We had no more credit and no savings.
We lost our home through “short sale”. We rented a larger home for $1000 less per month and thought we were safe.
Damn those “Liabilities”!! They just kept creeping up. All those bills and accounts we could no longer pay for. Which is why a simple $50 internet bill didn’t get paid for three months. It’s really humbling and embarrassing and I know that I’m not the only one that is going through this tough time.
Ya know though, I’m only blaming myself. I think back on that first refinance and how we could have made better choices. I think back on my naive days of internet marketing and how I could have made better choices.. I think back a lot.
But today is today and I can keep dwelling on the past and losing sleep, or I can move forward.
Moving forward. We’re Moving Again!! Too a smaller house with a fantastic backyard. Lot’s of gardening space for me, and a large lawn for the kids to play. Cheaper rent of course. It really sucks to move and to move into a place that is half the size, but part of our recovery is to make sacrifices and to move “forward”.
In my absence over the last year I’ve come to realize what an asset this blog has become. Even though I haven’t written much I still get referrals for various programs almost daily. Although I’m not making $1000′s per month, it’s comforting to know that my past efforts have helped buy food, gas, and the occasional beer. My blog pays for itself and then some. Even when I’m not writing for a month or two.
After our move into the new house I want to make it even more of an asset. Even though I’ve been firmly against sponsored advertising ( google, yahoo, etc.. ), I’m seriously reconsidering. Revenue is revenue and who am I do deny someone from finding an opportunity that fits their needs and possibly improving there lifestyle while increasing my financial well being as well. Fighting myself on this one.
Anyways, just thought I’d break my silence by sharing and venting. I’m off of work tomorrow to move into the new house. Looking forward to my new back yard and listening to SF Giants games while I garden next spring and summer.
Talk to you soon
Phil ( philsfault ) Ames
Hey Phil! Just the other day I was wondering when you’d post next…glad to hear you’re still around!
Sorry to hear about your troubles, but sounds like you’re taking the right steps to correct your situation. I’ve been out of commission myself for almost a year, and know it doesn’t take long for the liabilities to quickly get out of hand…scary stuff! Thank heavens my internet is included in my rent!
Enjoy your new home and garden, and thanks for your honest and well-written post.
All the best to you and yours!
Lynne
I have to say I admire you putting this all out on the line like that. It’s very brave and inspiring.
Rich Dad, Poor Dad is a must read for everyone. It puts things in a different perspective and makes you take a better look at your finances. It’s very humbling.
It takes a big man to admit where they went wrong in the past. A lot of folks like to blame everyone but themselves for certain situations. But a real person can look in the mirror and recognize the truth and make changes. That’s your process right now and you’ll see things will change for you. This is just a learning experience and a dry season. You’ll come into a season of harvest again.
I totally support re-evaluating your stance on advertisements. The fact of the matter is we’re all accustomed to ads in return for TV, Radio, newspaper, etc. It’s a give and take. People that come to this site are here to make money. So why would anyone think less of you if you’re trying to do the same thing? From my years of doing this, I’ve found people are extremely happy to deal with ads if they can get a lot value and free information from you that will help them make money legitimately. In fact they want you to make money because you’re helping them! So I’m happy you’re realizing that.
There is fine balance that must be achieved though. But I think you’re already half way there because you provide a lot of value already. So just adding some ads to the mix will be fine.
Just make sure you make it clear what are ads and have a little disclaimer at the bottom of your site making it clear that having an advertiser here isn’t a personal endorsement. They’re there to pay the bills and your advice about doing one’s due diligence still applies.
In any event, it’s great to hear from you. You must be a mind reader because I was literally thinking about you yesterday and was about to email you. Thanks for the update. Glad to hear you’re okay.
Hi Phil,
You’re absolutely right. Your story sounds like mine. I also lost my job of 10 years a few years ago when the company closed due to the recession.
I’ve learned that saving money by buying smarter is like making money too. I recently found most of the tools I need for my online business and am saving a lot, so I wanted to share it with you.
For less than $10 a month I get auto responder, web hosting, conference room, video hosting and creation, and affiliate commissions – all in the same package.
For more info, see my website or email me. There’ a free trial to check it out.
I enjoy your blog and tips. Hang in there – things really will get better if we keep trying.
Hey Phil…I am happy you are back…will be happy to read new posts here…
Howdy stranger! First of all, HAPPY BIRTHDAY! Don’t thank me, thank Apple for alerting me this morning. In all seriousness though, I do hope you had a great one. one. one. one. one. one. (i’m lame, i know).
Truly sorry to hear about your hard times. I had no idea. I knew you weren’t rich because you hadn’t told us yet, but I didn’t know how hard you were struggling. That sucks. Proud of you for putting it out there and for accepting your part of the responsibility. It’s not easy to do.
I want you to know something, Phil, and I hope it puts a smile on your face. I’ve been working at managing my online money better (physical money is a little bit of a different story, but it is rare I have it, so I don’t beat myself up too much) and YOU are a big part of why. You have told me several times to watch how I use it, and when I am tempted to hit “buy now” I often hear your voice–or my imagined version of your voice, I should say–telling me to hold on to it and use it properly. Now I don’t have much in the ol’ Paypal account, but what is there has been staying there. When a new payment comes in, it grows. I could be leveraging it, but right now I am not terribly focused on marketing. I click some ads here and there but mostly I am sticking to what I love, and that is making music. It is stressful as it brings in no income at the moment, but that is okay with me because I am doing what I love. I give away what I do presently and knowing a few people, and I do mean FEW, are moved by it is enough for me. For now, lol. I will eventually start charging for some of my work, but as I am a bit rusty from a several year sabbatical, I am more interested in upping the quality of my work, getting feedback, and building a solid following.
The things I have learned from blogs such as yours, and from online marketing in general have equipped with skills that put me ahead of a lot of the cats I see pushing their music. Being a social media fanatic has been exceptionally beneficial. Right now my biggest problem is learning to balance my time properly. There are weeks where I am more social and less musically involved, and weeks where I don’t want to talk to anyone but just create. Klout does help to keep me more socially engaged, but when I know mine is dropping it is easy to just not log in to Klout and see the proof. The most important thing I have learned over the years is how the social economy works. I rarely tweet about me (twitter is my favorite means of being social), but about others. I share content I know my followers will like and/or benefit from. Etc. The week before last was my biggest social success. Most clicks. Highest engagement. Blah blah. This week though I you-know-whatted the proverbial pooch. Or so it seems. I worked on a composition that is far beyond anything I’ve done to date. So was I was using my time improperly? Yes and no. Mostly no, but if I don’t get my social game back on track in the next few days, I stand to lose followers and Klout. Why am I concerned with Klout? Mostly because I feel it is a good baseline for judging my social media efforts and because they have some pretty nice perks for influencers. I want an iPad. It would be nice to get one for being influential about Apple products, which I am, rather than buying one. Sadly, I am yet to see where Apple is giving away perks. However, do I talk about Apple products because I want free stuff from them? No. I feel they make great products.
Aside from the Klout perks I have received, I have also been given promo codes for free music and iOS music creation apps via other Twitter users. Now I understand WHY I get these things–the same reason I promote others and not me and give my music away for free–but it is a testament to the power of social karma, if you will. I have a small following, but my influence in that sphere is increasing. When I am ready to start charging for some of my hard work, it will not be as hard to get it. My audience will be built, and my connections will be solid. And for now, even though I am not making money in this area, I am building social assets and getting things I would be spending money on. This is true at least in terms of apps; most of the music I listen to these days is Creative Commons and free or old and/or weird enough to be free. BUT it is goods sans liability. Works for me :-].
Sorry to go on and on about myself, but also not. The reason I am not is because I needed to write it. I need to breathe my thoughts to make better sense of them, and for some reason I tend to do it on your blog. Actually, I know the reason. It is because you are real, Phil. And when I do this I know you care. If you don’t, well, you have done a good enough job of seeming as if you do to lower people’s guard and get them to open up. In a marketing sense, this is good. In a human one, it is great. Either way, you are doing your job right. I do believe you are one who does care. If you weren’t, you wouldn’t be struggling with the notion of whether or not to put sponsored ads on your site. You would also be rich because you have enough personality that if you were a phony you would use that power for ill.
Sponsored ads. That is a toughy. I used them for some time, but I don’t get the kind of traffic you do so I cannot give a proper analysis there. I decided for the kind I work I do, it suits me better to use Apple affiliate links, and others that seem less like advertising. It is is easy to throw up a banner for a Moog app when you know not everyone is going to realize you profit from it, that those who do don’t care, and that it is a killer app (Hell, Moog makes it) which mobile musicians should check out. The risk of turning people off by having sponsored ads is far greater in my niche than in yours. As Eddy said, it’s a marketing site for crying out loud. I’m obviously paraphrasing him here but you get the point. If you need someone to talk over your thoughts on the pluses and minuses of it, please feel free to hit me up. My email is in the box up above the novella I’m writing here. Having catered to various audiences over the years, I might be just the person you need to dialog with. I dunno. But I am ALWAYS here for you, Phil, and in any way, & regarding anything. You’re even welcome to the few bucks in my PayPal. Seriously.
Well, I am sick of me now, so I am signing off. Again, Happy B-Day, Phil-anthropist!
Seriously, I am here for you, brother! You’ve been here for me even when you didn’t realize it and the table deserves turning. I recently deactivated and reactivated my Facebook account, so be expecting a friend request. Also, you can find me on Twitter as publicdoename.
Shalom [+] and God Bless!
(I’m too embarrassed by the amount of “me” writing to even proof-read, so please disregard any grammatical errors).
Great post as always, Phil. I too have struggled financially for the last three years since I had to quit my job to help take care of my mom. I am a single mom so things weren’t easy in the first place.
You know a little about how I have tried so hard to make money online. For 3 long years. I worked 17-18 days trying different programs, methods, mentors. I thought I would go insane.
After a program that some friends and I really started doing well with collapsed, I almost did too. This program was going great and I though I had finally made it. When the admin disappeared and took the money I thought I could have a breakdown. After that I have not had much heart to try online programs.
Then, like you, it hit me. If I could pay less for things I bought and spend more wisely, maybe things would get easier.
For the last three months, I put all my efforts into learning the ins and outs of couponing and blogging about it. You are so right. I have already seen an improvement in my finances and I never thought I would be excited about blogging, but now I can’t wait to share tips and help others learn how to save huge amounts of money.
You are so right. Many people don’t really need more money, they need to be smarter spenders. Thanks for another great post.