Do You Spend, Bank or Invest Your Internet Income?

[drwhogoesthere]

I read a lot by people about how much they make, and it always sounds so good. But I never hear about what people do with their money.

As a teacher I try to get my students into saving money. I want them to be rich by the time they reach my age. I want them to learn how enjoyful saving money can be. I want then to know that through simple easy saving and investing they can have the good life. Not have to work there whole lives in jobs that they hate.

You see my students, and you would know this if you have children, think that they will ahve everything supplied to them for the rest of their lives. They still think that mum and dad will be there forever handing out money. They have yet to realise that they have to go out and work.

Now I guessing but if you guys are trying and are making making money online you are probably like me and hate working for other people. You want, like most people to ahve enough money to do all things that you want.

So what do you do with your money? Do you spend it as soon as you get it (like my students) and then have to go back and make more?

Do you bank it and hope to live of the interest?

Or do you invest your money so in the not to distant future you can stop working all together and live off the money that your investments are making?

Personally I am trying to have money in the bank, some into shares and the rest into property. I am after multiple income streams. I believe that to be the best way to have enough to live on for the rest of your life?

So what do you do?

Oh and I am not after you bank details or credit card numbers. I just want to see some honesty about how poeple think about money, work, investing and spending.

[senatl]

I save it and I invest it. I rarely spend it. If I do spend it, I'm spending it back on the business. I'm an employee of a company and my income from that goes towards my livelihood.

[DrewG]

Reinvest back into my business.

[Johnathan]

All three.

Spend money (personal)
Re-invest (business)/expansion/etc
And of course save a bit

As an aside... sticking your money in a bank and hoping to live off the interest, is probably one of the poorest decisions you could make, unless you won a lottery and don't know how to manage your finances. (But even then, there are much better and 'safer' alternatives to sticking it in a bank, with a much higher rate of return.). And, funny thing is -- if you had $1 million to stick in a bank account, probably the best rate of return with a bank would be around $50k/year -- and most people would find it very hard to be 'content' living a $50k/year lifestyle "knowing" they had $1 million sitting in the bank.

[tecHead]

Disclaimer
I am not a financial adviser nor do I have any license that is accredited and/or recognized by any official authority to give financial advice. Any information you read below that is originated from me should only be viewed as possibly educational and mostly for your own entertainment. Always seek the advice of a certified and accredited financial adviser or consultant.

IMHO...
I'm not too sure about the laws there in Australia; and maybe you don't even need me telling you this; but first thing you'll want to do it be sure your corporate veil is firmly in tact. Be absolutely sure your business assets are completely separate from your personal assets.

This will also put you in a position for maximum benefits awarded through taxation. Do not mistake this statement as an endorsement for tax evasion; yet, like senatl suggested, giving yourself a salary and allowing your corporation to hold the majority of its secured assets can be viewed as the best way to go.

Calculate your operating costs as efficiently as possible. The objective is to maximize your bottom line while minimizing your overhead. All profits should then be allocated accordingly into various profit building scenarios; such as real estate, trust funds that are aggressively invested, business acquisitions, precious metals/stones etc. The objective is to expand your business' asset column.

Then its a matter of rinse, wash & repeat. The idea is to diversify.

Always remember, however... the FDIC only insures money up to $200K; (in the states -- I'm not sure about overseas). Diversify!

Peace, Love & Prosperity
tecHead

[czilbersher]

As soon as I get some, I'll let you know.

[TheAtHomeCouple]

I live. This is my job - so the money I make online pays for my life and lifestyle. Rent, savings, bills, single malt scotch, debt, cat food and hopefully a wedding ring for my sweetheart... sooner than later.

[sdcast]

I definitely reinvest mine into learning more internet skills.
"The more skills you learn, the more money you earn"
--Sharon Castelan

[nicholasb]

read the richest man in Babylon, that 2 thousand year old book speaks some truth and knowledge

if your making money that is a must read

[designfuschion]

Great topic!
While so far i've ever only earnt $100 online,the plan i'm currently working on is to create enough passive income streams both online and offline.

The first $10,000 i'm hoping to make this month (LOL) Is pretty much allocated to expenses already. (debt,upgrade the laptop,quick escape to sydney to reunite with the bf,buy some cool pressies for mums 50th bday etc and hopefully save a little)
Some of that will have to be reinvested to my online ventures.

After that the plan is to re-sort my bank accounts out.
I recently read by T harv eker "secrets of the millionare mind:think rich to grow rich"(highly recommended) which explained a very sensible way to 'be rich'.
Have a % of income go into specific accounts.
He suggested 10% for long term savings
10% education account
50% necessities
10% giving account.
10% play account
10% reinvesting (I think,i could be wrong here)

He talked about the importance of spending what you make(we all gotta have fun) as well having allocations for the necessities and investments/long term savings. No priority is given to anything-as in,expenses first savings later mentality.

I figured that those percentages don't suit me or the accounts either.

I'll be allocating earnings into these categories:

general expense acc
reinvestments/investments
debt account
play account
tax account

of course when the debt account is gone, it will become the investments account and reinvestment account will stay the same.

The reinvestment account will be to further my online business. Investment account will eventually fund property purchases.

I want to build an online property empire as well as property portfolio earning passively.

I think it's also important to have an allocated 'tax account' so come tax time there won't be a freakout over due income taxes.

[SmashTweet]

Everything,

I do Spend it.
I do Bank it.
and
I do Invest it.

[blogginvixen]

I do all three...and if by investing you mean investing it back into my business, then that is by far one of the top things I do with the money I've earned. The income I make online accounts for my full-time salary. This is not supplemental income for me, so spending it frivolously is not an option. However, I hope to be able to fund vacations, etc through my Google Adsense earnings...everything else is for essentials.

The only thing I haven't done with my earnings is pay off debt.

[drwhogoesthere]

It great to see what people do.

[Alan Mc Donald]

gold and silver !!

[Oscar D]

I try to 100% reinvest the money, at the moment I am running at a little bit of a loss so I don't really have a choice, watch out PPC can be expensive and can cause major cash flow problems if not properly controlled.

Believe me I am talking from experience

[Jackbgd]

The one's that reinvest are the one's that will end up rich.

[JC-PureProfitsHQ]

I definitely reinvest every single cent of my profits back into the business, no question about it!