Most of the people who earn a living online such as you and me don’t understand just how privileged they are to be able to do so. Through this guest post, I will try to explain why making money online is multiple orders of magnitude easier than keeping it.
I’ve published the only wealth management book out there that’s written specifically for people who make money online, to a large degree because I’ve noticed just how bad a lot of those who make money on the Internet are at keeping it. So why, why do otherwise smart or even brilliant individuals end up squandering the money they’ve made online?
I don’t want to bore you with a long introduction, so let’s get started:
1) There is still low hanging fruit on the Internet, mainly because… well, because the Internet just hasn’t been around all that long in the grand scheme of things. And by low hanging fruit, I’m referring to relatively easy ways to make money online. Now sure, making money online at this point is harder than let’s say five years ago, fair enough. However, I can pretty much guarantee it’s far easier to make money online today then it will be in five years. Wealth management however has been around a lot longer and needless to say, the “low hanging fruit” principle is valid to a lesser degree
2) When making money online, you rely on yourself far more than when managing your wealth. Now don’t get me wrong, there are other variables which can affect your moneymaking endeavors in one way or another but while I’m trying to say is that there are considerably more external factors which will influence your wealth management career than there are external factors which will influence whatever it is you do to make money online. Since you rely on yourself to a greater degree when making money than when managing your wealth, it’s relatively safe to say that you are more in control and this is a huge advantage
3) When making money online, you’re doing something you’re good at. Maybe you’re an affiliate marketer, perhaps you’re an SEO enthusiast and so on, it doesn’t matter. What matters is that you are doing something you’re good at. As far as wealth management is concerned though, you will inevitably be exposed to a wide range of different assets and it is quite frankly impossible to be good at everything related to wealth management. What I am trying to say is that it’s impossible to be brilliant at picking stocks, great at buying real estate, a stellar bitcoin investor and so on
4) Most people consider whatever it is they do to make money online fun, they’re basically living the dream for the most part. Well management, on the other hand, is perceived as somewhat of a chore. In other words, as something you have to do but which is anything but fun. Unfortunately, most people see things this way and it is a huge mistake. One of the most important things I try to teach people is the fact that wealth management can be fun and if you’re serious about doing well, it should
5) A bad year won’t have as devastating of an effect on your online projects as a bad year can have when it comes to wealth management. Let me explain. When it comes to wealth management, a bad year can erode your net worth and making back the money you lost will be harder because you will start from a lower base. When it comes to most online projects however, having a bad year isn’t usually as devastating
6) Making money online tends to be associated with the idea of enjoying the fruits of your labor. Managing your wealth… let’s just say not as much. Most people find it perfectly natural to take some of the money they’re making online off the table in order to “indulge”, to spend it on themselves and generally speaking, to enjoy it. Taking money off the table when managing your wealth, for example selling some stocks in order to go on a trip, is considerably harder. This is because most people consider their wealth management money, so the money they’ve allocated towards stocks and other assets, something that they’ve tucked away and therefore taking money off the table tends to cause considerably more distress than taking money off the table after you’ve earned it online. It’s a mental barrier that is sometimes remarkably hard to overcome
7) Making money online and making money in general are encouraged by society, whereas being savvy when it comes to managing your wealth is not something commonly encouraged in the world we live in. Since early childhood, human beings are conditioned to be good consumers. To spend, spend, and then spend some more. Therefore, at least at the very beginning, the idea of putting money aside and managing it will seem somewhat unnatural
8) When managing your wealth, you are at the mercy of time. When making money online however, you have considerably more control over everything. The more time you invest in your business or in whatever it is you do to earn a living online, the more money you make. In the world of wealth management however, you are the slave of time and not the other way around. You have to buy at the right time and sell at the right time… or else. Let’s just say that with wealth management, taking the day off is not an option like it is with a business or job. You cannot just say “look, I’m sorry, today is my day off: there can be no financial crisis today”. If a financial crisis occurs, you have to act fast because nobody is going to wait for you and this is one of the most important wealth management principles out there
9) As far as wealth management is concerned, it definitely takes money to make money. Lots and lots (… and lots) of people have made money online with a zero dollar budget. No, this is not a typo. You can start being a freelancer or even build a website on a free platform without having any kind of a budget at your disposal. When it comes to wealth management unfortunately, I’m sorry to have to say this but it is impossible to make money without actually… you know, having money.
Author Bio:Â
This guest post has been written by Andrei Polgar, who just published Wealth Management 2.0: the only book out there that teaches those who make money online how to manage that money properly. He’s reducing the price to just $2.99 this week and you can find the book on Amazon, Barnes & Noble, iBooks and Kobo.”
