Carrying debt can make you unhappy.  It ruins relationships, stresses you out and results in what I’d call slavery.  Here’s my manifesto on why debt is bad and what you need to do about it.

Almost daily I read about how banks aren’t loaning money to consumers.  I’ve also read how Citibank (and other credit card companies) are shocking customers by implementing punishing interest rates of up to 29.99% to their customers across the board.

While touted as major crisis by the media, I think both of these lending roadblocks are good for you and me.

How so?  Because both lead to less personal debt.  If the banks aren’t loaning money, then you can’t acquire debt.  If the credit card companies are levying punishing interest rates, then people hopefully will be reluctant to get into more debt.

I view personal debt as slavery. But it took me several years of getting kicked in the head to learn that the hard way.  Debt, especially credit card, car loans and home equity, gives the control of your future earnings to other people.  In the case of the credit cards, think of it this way.  Someone might be paying $50 a week in interest.  Then the credit card company decides they want $100 a week and there’s nothing you can do about it.  They’ve got you by the short hairs.

Outside a mafia Don, who else can make this type of arbitrary decision about your money?  (Well, the government can with taxes, but that’s a discussion for another day…)

But while we are on the government, I’ll toss up a thought you might not have considered.  Why do you think the US government is so comfortable with such staggering levels of debt?  (~$12 Trillion currently)  It is because we the people are so comfortable with such high levels in our personal lives.  The government is a reflection of the people’s attitudes and values.  If we don’t think twice about carrying a boatload of debt in our personal lives, we will elect people who don’t mind carrying debt into the public sector.

I think if we are to be adults, we need to leave behind the childhood getting what we want today just because we want it.  Only a mature mind can delay gratification and admit they cannot afford something at the present.

When did admitting you can’t afford something become shameful?  It seems that if my buddy can afford a Lexus and I cannot I should feel ashamed?  Why?  Shame is the child mind speaking, not the adult mind.  An adult thinks “I can’t afford to pay cash for it, but I am managing my finances in such a way that I will one day be able to.”  That is what true financial optimism is.  Using credit to fool yourself that you can afford it now, but pay for it in the future is a pipe dream.  It’s one of the leading causes of unhappiness and divorce for people in the US right now.

There is nothing shameful in admitting we can’t afford something.  What’s far more shameful is deluding ourselves that a little bit of debt and the resulting slavery isn’t harmful to our attitudes, relationships and future well-being.

When we use credit instead of cash we can pay 10%, 20% or more for something than it’s actually worth!  Just think.  You buy a flat-screen TV today on credit for $1000 at the end of one year you’ve paid $1169.76.  That’s if you pay it off in 1 year.  Most people “revolve” into several years.  It’s quite possible that same TV that cost a cash payer $1000, costs someone who uses credit $1,500!  Are you really that well off that you can afford to spend such a high percentage more than people who save up and pay cash?

And then consider when you eventually do pay off the TV.  In a year, best case, is the TV worth $1,169.00?  No, of course not.  It’s probably worth $800.  So the person who paid cash has lost $200 while the borrower lost $369 – nearly twice as much!  That’s why we hear of people who can’t afford to sell a car they can’t afford.  The car is worth $8,000 but they owe $12,500 on the loan.

I think we should invest the time to do the math as I’ve done above.  The math will reveal the traps others have set for us.

We have only a limited time to work and build success while we live on this planet.  The money we make can be used to produce more money or it can be used to dig us into the hole of slavery.  Paying later for stuff we get today seems small, almost inconsequential early on – but becomes a noose that strangles as the years wear on.  Are we so content that we will delegate the value of our future earnings to other people without as much as a sigh that we are embracing years of servitude?

Whatever happened to saving up for what we want?  Have we come so far that saving is passe, not cool or too old-school?

We need to become uncomfortable with having debt at any level.  Debt should be a painful ache until it is eliminated.  Cash and cash only needs to be our battle cry if we are to become financially successful and avoid the slavery that debt imposes.

If I’ve struck a nerve or opened your eyes, I encourage you to share this with your spouse, friends and relatives.  And send it to your elected officials.  Only through building awareness of debt’s shackles and gaining the support of those around us, can our futures be free.

The blog I Will Teach You To Be Rich found a fascinating, if not scary, slideshow presentation from venture capital firm Sequoia.  You owe it to yourself to take a look at it.

The long and short of it is market cycles are long.  With the US debt load as high as it is and the average savings account adding up to a Starbucks’ Mocha Latte, there are will be some serious challenges ahead.

If you read my rant on the economy from a few weeks back, you know my opinion.  But in case you weren’t paying attention, now is time for us to to shore up our reserves, put on our thinking caps and buckle down and get to work. 

Back in the dark ages of the Internet, 1995 or so the number of web businesses you could start were limited.

There was web page builder.  If you didn’t like that, there was always web page builder. 

Now, there are options.   There are many little cottage businesses you can start.  Some require more experience than others.  But a little creativity can go a long way in creating a side business quick.

Photo by Steve Woods  

Seth Godin posted two simple web businesses the other day that are both great ideas:

The world needs fixed-price web podiatrists…  

So, a pretty smart web-savvy person could have a checklist of fifty items and work her way through a corporate website. She could come back with a simple, easy to execute list of things worth changing:
–put USA above Afghanistan on your country pull down list
–make it so clicking on your logo takes me back to your home page
–the font is too small on this page and it’s hard to read
etc….  

…Second gig: Web analytics pro. Someone who can, for a generous hourly fee, set up analytics for a website and do weekly reports (by email) that are actually useful and actionable.

I find myself in need of services all the time.  There’s just not enough time in the day to do it all.  So if you are wanting to dip your big toe into the water of entrepreneurship, here are 4 of my simple web business ideas you can start in an afternoon:

1.  Comment moderator - The bigger the blog or web forum is, the more comments.  With comments comes spam, off topic jeers and endless irritations for the blogger or webmaster.  You can relieve these woes by stepping in and firefighting all these comments.

2.  Virtual assistant - This one is great for the Jack or Jane of all trades.  Here you’ll handle day-to-day tasks for a business owner.  Making copies, writing emails and so forth.  Do the smaller tasks right and it will open doors to the bigger ones.

3.  Software/web support - Is there a software program or site you are head over heels in love with?  If so, you can be a support specialist for the product.  As long as there is software, there will be people who don’t know how to use it.  This is where you step in and save the day.

4.  e-book from Blog Creator - Prolific bloggers write a lot.  Much of their best stuff gets buried in their blog archives.  You can be the one to dig it out, format it nicely and convert it into e-Book format.  I think this one is my favorite because I need that right now

Do you have any ideas for simple web businesses you can start quick?  If so, share in the comments!

To get more articles on improving your success and personal income, subscribe to the the Persistence Unlimited RSS.

This post is for online and offline professionals who are sick of chasing their tails.  It’s for people trying to market their business.  It’s for job hunters.  And it is for employees who want to get ahead at work.

You know who you are.  You try the next big thing trying to get sales or subscribers.  Little tricks and techniques to get you ahead of the game.

But many of these produce little or no results.  We’re still confused.  We’re still not getting what we want.

This isn’t an indictment of you or anyone else.  I jump on many of the “latest techniques” as quick as the next guy when I am searching for answers.  But more often the techniques end up as interesting diversions when all is said and done.

In the past two weeks I’ve had 2 companies contact me for help with their marketing.  One had read an online affiliate through Adwords e-Book.  The other was a stand alone business.

In both cases their questions went something like..

I am struggling with my business, how can I market it so that I am making money?  My web site is popular and gets decent traffic.  But few people buy.  Lately, however, I am making no sales at all. 

A quick visit to each of these sites revealed the main problem with both.

Both company sites were nice.  Created by professionals.  The designs were slick.  The graphics were eye-popping.

But they lacked one important feature.  The feature itself can be summed up in a question.

Before I tell you the missing piece of the puzzle, let me tell you about a recent chat session.  Rick contacted me about his goal to make more money.  He professed good computer skills equal to or greater than others in his industry.  But he was making less money than the others.

He wrote:

I keep contacting these companies to set up job interviews.  I go to the interview and think I make a good impression.  But they never call me.

Rick, like the companies above hasn’t asked himself the most important question anyone should ask before marketing anything…

BTW, marketing can be any promotion.  You promote yourself at work.  You can promote a book.  You can promote your church to other churchgoers.  It doesn’t matter, it’s still marketing.

By making that connection, you’ve won half the battle. 

A universal problem in all marketing

Which problem?  You are thinking.  Yes, there are many problems in marketing.   You can have bad breath one day.  You can say the wrong words the next.  But there’s something else that outweighs all the others. 

The problem all marketers face, be you a job hunter, shoe store owner or web affiliate is action. 

Action decides it all.  Someone takes action and you win.  Someone doesn’t take action and you lose.  Could it be any more simple?

Ahh.. but it’s not simple.  It’s a struggle.  Getting other people to take action is hard.  Heck, sometimes it feels I fight tooth and nail just to get people to sign up for my motivational articles via RSS which is only one button click away!

Or how about when I try to persuade dieters to take up walking and eating more veggies?  Some people will take action, others won’t.   But that’s ok.  I learned a long time ago persuading others to take action is tough.

The point being as a marketer you want someone to take action.  If they don’t, your message is flawed.

The #1 Question for Marketers

If your message is flawed, then what? 

You’ve been marketing up a storm, but the action response ain’t happening.

Do you quit trying to sell your products?  Do you stay working at a job you hate?  Do you deed a Kindle over to me?  By all means. On the last option anyway.

Instead of quitting, consider the #1 question.

By answering this question, you will be far ahead of your competition.  After years of doing what I do, I’ve come to realize very few people ever ask this question.

When I tell you, you’ll probably see it as being obvious.  I did when I first learned it.  I took it for granted.  I didn’t apply myself.

Only when I realized how important it was did things start to turn around in my work advancement, my software sales and my subscriber numbers.

Since action is the main result you seek from any marketing, it begs the obvious question.

What 1 action do you want your potential client to take?

The Power of the #1 Question

Let me break down the #1 question and explain why it’s so powerful.

1 Action - I stress only 1 action because you’d be lucky to get someone to take 1/2 an action if it were possible.  See the examples above.  A positive action – however small, opens the doors. 

If you throw more than 1 action at someone, statistically, they will do nothing.  People get confused.  They get overwhelmed by alternatives.  Sure there are those enthusiasts who sign up for everything.  But the key to marketing success is in the one action realm. 

What action do you want them to take? - Wow, here’s where you get your say.  What do you want a visitor to your web site to do?  What do you want the interviewer for that hot IT job to do?  Choose the action carefully.  You’ll almost always get what you want.

Hopefully a light is going on about the power of this question.

You can see what a disadvantage someone is at who seeks a second job interview or a phone call.  Shouldn’t she put first and foremost in her mind that she wants the company to offer her a job? 

When I first started marketing my software, I wanted people to take the action of downloading it.  So people downloaded it.  But what is critical to a business?  You have to make sales.  Since I focused so hard on getting people to download, I let things slip on the sales side.  Often times the sales link was broken.  Other times, I’d get emails telling me the sales page was missing entirely! 

It was Michel Fortin who got me to take a hard look at how I was running things.  Although he didn’t start out with the #1 question, he pointed me to the answer anyway.  The answer being that my business (or any business) could not survive on downloads alone.  I needed sales in order to survive.

Asking will change you

The second you know what one action you want others to take, a light bulb should go on.  When you set your sites on the action, your message will more effectively persuade others to take that action. 

Contrasting examples from a job search:

• A job candidate who doesn’t know what action they want the company to take.  He asks if they need a copy of his resume.
• A job candidate who wants the company to take the action of hiring her. She asks for the job.

Contrasting examples from an small business selling an e-book:

• The business owner who doesn’t know the action she wants her customer to take asks visitors to bookmark the site.
• The business owner who knows the desired action, places a special 1-time offer on the book for an immediate sale.

Contrasting examples from the world of work:

• An employee who doesn’t know the action he wants his boss to take works hard, keeps his head down and waits for a raise.
• An employee who does know the action also works hard, but makes it clear to the boss that he is working to one day run the company.  Therefore, the hard work is always in the context of him one day taking over the operation.

I know this is a subtle difference.  But if applied, it will make enormous changes to your results. 

Exercise for today:  Write down your top goal.  What bothers you most about this goal?  And what 1 specific action (if you could get someone else to take it) would help you reach that goal?

P.S.  Again, I’ll stress how important it is for you to subscribe to my my motivational articles via RSS.  You don’t want to risk missing content like this in the future do you?

Courtesy of Rules of Thumb, here are some tips:

• MEASURING DETERGENT Fifty percent of the amount of detergent recommended by the manufacturer is plenty. Ditto toothpaste!
• DYSLEXIA AMONG THE POPULATION About 2 out of every 10 people have dyslexia.
• GETTING RID OF BACK PAIN If your back hurts more when you climb stairs, walk up a hill, or get out of a chair, you need to do extension exercises.
• TIMING YOUR GARAGE SALE Hold a garage sale the first weekend of the month because people who get paid monthly have more money to spend then.
• THROWING OUT CLOTHING – Sometimes when cleaning out your closet you’ll come across a garment that you don’t wear because nothing goes with it. If you aren’t ready to spend any money to make the item work for you, you probably are ready to give it to Goodwill.

Profit is a bad word to many, but to others if they can’t make a profit, life isn’t worth living.

Regardless of your feelings about profiting, your ability to make a profit will decide many factors in your life. It will determine what you eat, your quality of health care, where you’ll live, and what you’ll be able to do with your free time.

“The successful man will profit from his mistakes and try
again in a different way.” – Dale Carnegie

The power of profit makes it an important concept to understand and ultimately harness if we want to take control of our lives. If we don’t profit, we are leaving too much up to chance. We can’t get the knowledge we need. We can’t help others to the best of our abilities. And we can’t live our dreams.

You may be new to the idea of developing a profit mindset. So I’ve put together seven simple ways to develop the mindset so you can start profiting immediately:
1. Remember Interest is money earned - When you put money into the bank, it earns interest. Some argue that it’s not a lot, but the bank is the first place to start. You eventually want to move into Mutual funds and bigger investments. But when you are just starting out, the bank is the safest investment. Interest leads to more money. Each deposit becomes a little earner who brings back money to you as the interest accumulates.

2. Spend Interest, not principal - My father had a great saying for holding on to your money. ‘Spend interest, not principal’ What this means is your nest-egg should never be touched, instead, use interest. That way, your investments will continue to earn more interest.

3. Treat found money as savings - If you’ve ever gone through the attic or garage and found a 100 dollar bill. Woo Hoo! That’s found money. Inherit some money or get a paid bonus would be considered found money too.

The thing to do with found money is to immediately put the lions share into the bank or investments. Spend a little if you like, that’s fine. But be sure to get your investments handled first. Saving and then spending is the best of both worlds.

4. Buy a house - When you have a decent amount invested it is time to think about owning a house. A fixer-upper is a good place to start. A house will gain value over time. Don’t let the housing market scare you from never buying a house. The houses that are depressed right now will be worth a lot in the next 10 to 20 years.

5. Buy a modest dream house - Once, someone advised me to “buy as much house as the bank will loan you.” I think that is bad advice.

Sure you want to buy a house of quality, but be very conservative. When you stretch yourself out with high house payments, you aren’t compensating for when life comes along and whacks you on the head. People lose jobs, people get sick, sometimes a leaky roof needs a $10,000 repair. If you are stretched to the point of breaking on a house payment, you can’t afford much of anything else.

Therefore, it’s better to buy a house with a lot of wiggle room in the piggy bank.

6. Invest for long term, not short - Don’t buy into the latest trends. I’ve learned this one the hard way when I bought a bunch of Cisco stock in 2001. They don’t call it playing the stock market for nothing. If you are going to put your money on the line for an investment, think “how much will this be worth in 20 years?” If the answer is “not a lot” or “I don’t know”, then don’t invest. That means it’s not a good investment for you.

7. Find something to sell - Do you have a specialized skill at repairing something? You can purchase stuff that’s defective, fix it and sell it at a profit. I know a guy who collects old LCD monitors, repairs or tunes them up and resells them for $100 a piece. Often, he gets them for free, but then makes $100 a pop. Not bad money considering he makes less than $20 an hour when his day job is janitorial. This is pure profit that he socks away into the bank.

You too likely have specialized skills or knowledge you can sell at a profit. When you own your own product or service, your ability to profit skyrockets. It’s no longer dependent on the will or whim of employers.

For more info: If you are looking for some good books and resources on making personal profit, you might also want to check out JD’s Get Rich Slowly Post.

If you like this post, please vote for it on del.icious, StumbleUpon & Digg – I really appreciate it !

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-Brad Isaac

I read a Associated Press-Ipsos poll revealing that 1 in 4 adults read no books last year. Yes, that’s 25% of the adults out there are reading zero books. This is sad.

I knew intuitively the number of books read each year had gone down but to zero? Ridiculous!

And what about the adults who are reading more than zero books a year. How many are they reading in all? One? Five? Actually, the same poll reveals the average adult reads only four books per year. Half of those people read less than four.

If you are one of the non-book readers who feels you “don’t need no stinking books”, here are 26 great reasons to start the habit…before you are left behind!

1. Reading is an active mental process – Unlike TV, books make you to use your brain. By reading, you think more and become smarter.

2. It is a fundamental skill builder - Every good course on the planet has a matching book to go with it. Why? Because books help clarify difficult subjects. Books provide information that goes deeper than just classroom discussion.

3. Improves your vocabulary – Remember in elementary school when you learned how to infer the meaning of one word by reading the context of the other words in the sentence? You get the same benefit from book reading. While reading books, especially challenging ones, you will find yourself exposed to many new words you wouldn’t be otherwise.

4. Gives you a glimpse into other cultures and places – What is your favorite vacation spot? I would bet you read a lot about that destination. The more information the better. Books can expand your horizons by letting you see what other cities and countries have to offer before you visit them.

5. Improves concentration and focus – Like I pointed out before, reading books takes brain power. It requires you to focus on what you are reading for long periods. Unlike magazines, Internet posts or e-Mails that might contain small chunks of information. Books tell the whole story. Since you must concentrate in order to read, like a muscle, you will get better at concentration.

6. Builds self-esteem – By reading more books, you become better informed and more of an expert on the topics you read about. This expertise translates into higher self esteem. Since you are so well read, people look to you for answers. Your feelings about yourself can only get better.

7. Improves memory – Many studies show if you don’t use your memory, you lose it. Crossword puzzles are an example of a word game that staves off Alzheimer’s. Reading, although not a game, helps you stretch your memory muscles in a similar way. Reading requires remembering details, facts and figures and in literature, plot lines, themes and characters.

8. Improves your discipline – Obviously, if 1 in 4 people don’t read one book per year, then there is a discipline issue. There may be many causes for people not reading books such as the “quips” of information you can get on the Internet. TV is also a major distracter. Making time to read is something we all know we should do, but who schedules book reading time every day? Very few… That’s why adding book reading to your daily schedule and sticking to it, improves discipline.

9. Learn anywhere – Books are portable. You can take them almost anywhere. As such, you can learn almost anywhere too.

10. Improves creativity – by reading more books and exposing yourself to new and more complete information, you will also be able to come up with more creative ideas. As a personal example, I read many, many books on IT Networking. So often, when IT Admins are stumped with a problem, I can come up with a creative (smack your head simple) solution that isn’t written anywhere. But the reason I can do that is because I have read so many books on the subject, I can combine lessons from all of them into new solutions.

11. Gives you something to talk about – Have you ever run out of stuff to talk about with your best friend, wife or husband? This can be uncomfortable. It might even make married couples wonder if their marriage is in trouble. However, if you read a lot of books, you’ll always have something to talk about. You can discuss various plots in the novels you read, you can discuss the stuff you are learning in the business books you are reading as well. The possibilities of sharing are endless.

12. Books are inexpensive entertainment – What’s the average price of a movie ticket these days? $8 – $10? You can buy a paperback for that price and be entertained for many hours more. If you have a used bookstore nearby, you can get them even cheaper.

Tip: Once you make reading a habit, you’ll enjoy reading the books in your chosen career as well.

13. You can learn at your own pace – Where formal education requires time commitments, books have no late-bells or hourly commitments. So you can learn at your own pace when you read books.

14. New mental associations – I touched on this above. As you read more books the depth and breadth of your knowledge expands and your ability to form new associations increases. In reading a book to discover the solution to one problem, you find the solution to others you may not have considered.

15. Improves your reasoning skills – Books for professionals contain arguments for or against the actions within. A book on cooking argues that Chili powder goes well with beef and goes poorly with ice-cream. A book on building a business argues that testing an idea for profitability before setting up is a smart strategy and argues against just barreling forward with the idea without testing.

You too will be able to reason better with the knowledge you gain. Some of the arguments will rub off on you. Others you will argue against. Regardless, you’ll be reasoning better.

16. Builds your expertise – Brian Tracy has said one way to become an expert in your chosen field is to read 100 books on the subject. He also said by continuing the same for 5 years you’ll become an international expert. With the Internet and blogs, you could hone that time down to 2-3 years if you follow through.

17. Saves money – Apart from saving money on entertainment expenses. Reading books that help you develop your skills saves money. Reading books on how someone went bankrupt will be a warning to you against repeating their mistakes. Reading a book on how to build your own backyard deck saves the expense of hiring a contractor.

18. Decreases mistakes – Although I would never suggest putting off an important goal because you fear making mistakes, it is still important to sharpen the saw (link to A.L. post). When you gather the deep and wide wisdom that books can provide, you are less apt to make mistakes.

19. You’ll discover surprises - As you read more books as a source of information, you’ll learn stuff you weren’t looking for. I’ve read many great quotes on life and love by reading books on marketing. I’ve learned facts about biology from reading about chemistry. Heck, I’ve picked up some facts about history while reading about programming. Since so many subjects intertwine it’s almost impossible not to learn something other than the book’s subject.

20. Decreased boredom – One of the rules I have is if I am feeling bored, I will pick up a book and start reading. What I’ve found by sticking to this is that I become interested in the book’s subject and stop being bored. I mean, if you’re bored anyway, you might as well be reading a good book, right?

21. Can change your life – How many times have you heard of a book changing someone’s life? For me, it was Your Erroneous Zones (link) by Wayne Dyer – which is the first self-development book I read. It opened my eyes to a whole new way of thinking that was not depressing and dull. It was the first step in my path of choosing my own life and being free of old habitual thought patterns.

There are many, many other books out there that have a reputation for changing lives including Getting Things Done: The Art of Stress-Free Productivity, Handbook to Higher Consciousness, Atlas Shrugged , A Tree Grows in Brooklyn, Lord of the Rings and Black Boy to name a few. But you can start in your chosen field and work your way outward.

22. Can help break a slump – Being in a slump is uncomfortable. If you are a writer, you call it writer’s block. If you are a salesperson, it’s called – not making a sale in 23 days. But a slump can be a crossroads. It might be you are wavering on your commitment to a particular project or (with marriage) person. Or a slump can be simply a lack of new ideas. Books are a great source of ideas, big and small. So if you find yourself in a slump, pick a book on the portion of your life you are slump-ing and get to reading!

23. Reduces stress - Many avid readers (including me) unwind by reading. Compared with the person who gets home from work and immediately turns on the TV news, you are going from work stress to crime stress. But it’s not just news. TV as a source of relaxation is too full of loud commercials and fast moving (often violent) images. If relaxation is something you want, turn off the TV or computer and pick up a book.

24. Gets you away from digital distractions – If you, like many others, feel overwhelmed with the flashing lights, beeps, boops and ring-a-dings that burn up our computing lives, then give books a chance. When you find some good books, you’ll find yourself drawn into the subject matter. You’ll want to spend more time reading. By spending more time reading books, you’ll have less time for the plethora of the digital gadgets begging for our attention.

25. You’ll make more money - If you make a serious effort to read in your chosen career, your expertise in that specialty will increase. As you become more specialized and learned, you join a smaller group of more qualified people. By being part of the small few with the highest level knowledge your pay will increase. It’s simple supply and demand.

26. The book is always better than the movie – except for perhaps No Country for Old Men.

What are some of the most important books you have read? What is the title that changed your life? If you’ve found a book that made a major change in how you work, live or love, please tell us about it in the comments below.

Update: Part 2 is up: 5 Sneaky and Underhanded Methods to Add 30% More Time to Your Daily Reading Schedule