The holy grail of financial management has been to find a system, a magic bullet, or a golden key that will require work in the beginning but pay off forever –sort of a goose to lay the golden egg. There are legitimate ways to make extra money but they mostly require a continual input of work to function.
Artisans in many creative fields receive the benefits of royalties and other licensing agreements. By working on a song, a book, a screenplay, or software for a period of time, these craftspeople get paid for their work multiple times (except for pirated versions of their work).
The real question is: can the average person like you and me develop a “royalty” system that pays us over and over for work we do only once? Does a system like that actually exist? Yes it does, but maybe not in the form you’re thinking.
The average person can get “royalties” from:
- Insurance shopping
- Savings accounts
- Refinancing a mortgage
- Reducing expenses
Spend some time setting up a budget, and get ready to get “paid” over and over. Seriously, the minutes you spend formulating your spending plan will come back to you in the form of recaptured dollars over and over. You cannot recapture these dollars unless you know where they’re going. Once you’ve caught them and plugged the leaks, you can redirect those dollars into a savings account and later into a well diversified investment plan. The positives from a budget just keep on compounding.
Just spend a little time shopping around on InsureMe.com for your many different insurance needs. It costs nothing to shop and compare prices and coverage. The savings you find is money in your pocket.
InsureMe.com shops highly regarded and reputable companies like Progressive, Allstate, Farmers, Liberty Mutual, Nationwide and others to then deliver auto insurance quotes tailored to your needs. It is ridiculously easy to use.
All other insurance
From renters to business, from life to health, InsureMe.com can help you save cash each month on your insurance expenses. By taking advantage of those savings, you’re developing your own “royalties” just like celebrities.
How much is your current savings account paying? The average passbook savings rate (according to Bankrate.com), is a dismal one quarter of one percent (0.26%). Currently I’m getting 5 times the national average in my ING account with the opportunity to earn more through referrals! If you’d like a referral that will pay you $25 to open an account with ING, send me an email via my contact form and I’ll send you the details. Switching to a higher interest savings account is yet another way to get paid over and over for an action you do only once.
Checking Accounts Too
Set yourself up a PerkStreet checking account and you’ll earn rewards for purchases where you sign instead of use your PIN. Some families easily earn an extra $1,000 each year by simply altering how they spend their money. Instead of using their traditional bank’s debit card, a check, or a credit card to buy groceries and pay for vacations, they use their PerkStreet Debit Card.
I recently refinanced my mortgage after using Lending Tree. Though I didn’t use one of their lenders, I WAS able to use their quoted rates to negotiate a better rate for myself. This simple act required a lot of paperwork ONCE, but it will pay me $200/month for the rest of my mortgage term. That’s a royalty! (and I didn’t “tap” my equity either)
Any expense you can eliminate is money in the bank. Just like old Ben Franklin once said, “A penny saved is a penny earned.” That used to be true — before Congress passed the 16th amendment and hit us with the income tax — today it’s more like “A penny saved is 1.43 pennies earned!”
Where can you reduce your expenses?
- A better cell phone rate plan?
- A programmable thermostat?
- Using power strips?
- A better credit card rate? (Get that thing paid off sooner!)
Doing just a little work to save just a few bucks here and there can produce “average person royalties” for years. Are you willing to put in the time?
What other ways can we develop “average person royalties?”