Ask John Smiley

There is a popular ad on TV recently showing people carrying around a big orange number - apparently to represent the amount of money that particular person has to have saved in order to retire with the same kind of lifestyle that they lead currently. I found myself getting angrier and angrier every time I saw that ad, and I really didn’t know why.

Then I figured it out. It wasn’t exactly anger that I was feeling, it was more of a feeling of stress or despair. And I guess that’s probably the whole idea. My wife told me that that’s how that’s the most effective type of advertising: they make you feel desperate. Well it sure worked with me. However, I don’t think the solution they offered gave me any hope, personally.

This financial company wants you to become a client of theirs and they will advise you on how to save and invest so that you can reach your orange number. While I’m sure they are very good at what they do, I think this ad is more geared toward those in their twenties and thirties. What about those of us in our fifties? My savings are minimal, and I just don’t see the possibility for me to increase them to one million dollars plus in the next 15 years, even I had Warren Buffet as a financial advisor!

So what do we do? As far as I’m concerned, I’m working at creating a residual type of income that will flow into my bank account for the rest of my life. I think this is a good plan for most boomers, especially those that find themselves in a similar situation as I have. How do we go about doing that? Here are six ways that I can think of.

1. A reverse mortgage on your residence. If your house is paid off or mostly paid off, you can borrow against the equity in order to get monthly payments, get a lump sum, or just have the money available as a line of credit.

2. You could get a job. Maybe all you’ll need is a little extra to supplement your pension, savings, and social security. A part-time job might fit the bill to help you stay afloat.

3. You can purchase a franchise. There are all kinds of businesses out there if you’re willing to put up the capital to get started. Some are very expensive, and some aren’t. Do some research, this might be a great option.

4. Start a traditional home business. Maybe there is something you’re good at and you can market that skill. It can be building something, making something, or even offering a service, such as bookkeeping. You can sell your product or service on Craig’s List or ebay.

5. You could start your own home-based internet business. Affiliate marketing is a hot topic right now, and you can make a some good residual income by setting up websites that promote other peoples products. All you have to do is send the customer to that merchant’s site, and you’ll earn a commission. Once you get the sites set up, they are self-sustaining and can generate income month after month.

6. You could start a network marketing business.I really like this idea because it offers two types of income - residual and leveraged. By residual income I mean income that comes in every month, whether you work or not. Most network marketing companies have consummable products that the customer buys every month. Leveraged income comes when you sign up a distributor underneath you. Then every time that person makes a sale, you get a piece of their pie.

These are a few ideas. Everyone is different: you’ll have to discover what works for you. But do something, it’s never too late!

No matter how well versed you are in the brick and mortar business world, its a good idea to understand both the similarities and differences between that and the world of ecommerce. Remember that as the economy takes a downturn, more and more people are looking toward alternatives to the traditional model of doing business. However, while the Internet supplies some great ideas and is a great vehicle to make money, there are at least four mistakes that you want to avoid before you take the plunge into starting your own business.

Dont Rush

First and foremost, all the experts agree that you dont want to rush. Although compared to other enterprises an Internet business is cheaper, there are quite a few bad turns that you can take and some of these spiral. While its true that we all like to hear great success stories and how people have made great money online, you need to be careful and find out exactly how much work was involved. Take the time to look into exactly how this success was achieved before you envision yourself doing the same thing.

Think Like A Boss

Remember too that while the Internet affords great possibilities, theres also a tendency for people to slide into the employee frame of mind. That means that some people make the incorrect assumption having your own business means that they have more freedom and while thats true, you also need to in mind that although you can set your own hours you still need to work at them. Dont think like an employee when youre the boss.

Get The Right Tools

Many people starting a home based web business try to cut corners and get a quick template off the Internet rather than taking the time and investing the money to go to a professional web design company in Los Angeles or where ever they happen to be. That is always a mistake. Even if you wind up with a decent website, you need to market that site and compete for page rankings and you dont get those tools by cutting financial corners before you even start.

Theres a good living on the Internet, but you need to get the best tools and have the right aptitude to make the whole thing work for you. While the medium for business might change, the need for hard work stays the same.