Damien Hoffman of Wall Street Cheat Sheet says the growing underclass now accounts for about 10% of the U.S. population.  Here is the evidence:

1. A record 40 million Americans are on food stamps – 1 in 8 Americans may not be able to eat without government assistance.
2. 32 million Americans don’t have health insurance – these people pray everyday that they don’t lose their health because the costs can drive the average person into bankruptcy.
3. 24.5 million Americans are unemployed – it’s more like 17% if you include those that have given up the search or are working part-time and still looking for full-time work.
4. 2.8 million homes were foreclosed in 2009 – that number is expected to jump to between 3 & 3.5 million in 2010.
5. Dollar Tree Stores stock is at all-time highs – revenues are up 12.5% which means that 12.5% more dollars are chasing ultra-cheap products.

Economists agree that many of the jobs lost in the current recession are not coming back and some people are just now learning that it’s never a good idea to assume that a job is ever safe.  For a growing number of Americans, a home-based business has become their ”Plan B”, or safety net, as most can be built while working a full-time job and within several months to a few years be generating as much, if not more income than their 9-5 job.   And most direct selling organizations were created not only to market products and services, but to provide the average American who markets those products and services the opportunity to create an above-average income and lifestyle!

A recent article in USA Today titled Direct Sales Offer Recession-Proof Jobs suggests that “Direct-sales businesses that rely on home-based representatives to peddle their wares are seeing their sales forces rapidly expand as the nation’s unemployment rate soars to nearly 9% and those who lost jobs and nest eggs look for new ways to make money.”

Visionaries Worldwide is a premier coaching and training network.  We are passionate about personal development, financial literacy, leadership and entrepreneurship.  Our vision is to help 1000 people to achieve financial independence.

On the other hand, a US News article titled 7 New Rules For Getting Ahead suggests that economic dowturns tend to produce a surge in entrepreneurship.  This is especially true in the home-based business arena as these businesses cost very little to start, are very low risk and high reward.   The author goes on to say that entrepreneurs have an advantage, as they overcome obstacles for a living and tend to be a lot more resilient.  Even if you work for someone else, an entrepreneurial attitude can set you apart from your co-workers. 

According a recent Wall Street Journal article Meet The Unemployable Man, one of every five men age 25 to 54 isn’t working.  ”Even more alarming, the jobs that many of these men, or those like them, once had in construction, factories and offices aren’t coming back”, says David Wessel.  Surveys suggest that the unemployed in the U.S. spend 40 minutes per day looking for work and 3 hours and 20 minutes per day watching TV.

When I was laid off from my job in December of 2008, I had no idea if and when I’d ever return to work.  I also knew that if I was lucky enough to find work that it would most likely be at a job paying much less than what I was accustomed to.  So, I figured that while I was doing nothing I might as well do something and started a home-based business with a $250 investment.  My thought was that if nothing else, the income from this business could supplement the income from a future job and offset some of what I would lose…and at best I would eventually generate enough income so that I never have to work for someone else.  Either way, it’s a win-win.   

The results so far?  I broke even in a matter of days and was profitable in my second month, and although I’m not yet making enough income to support my family from my home business alone, I am well on my way.  Like any business, a home-based business takes time to build and is not a get-rich-quick scheme but by far it was the best investment, and the best decision I ever made.  My experience as an entrepreneur has truly changed me as a person because now, more than ever, I realize that to get what I want in business or in life, I first have to help others get what they want.  I also have an entirely different view of the traditional, corporate business model.

Now that I am back to work, certainly it makes building my home-based business more difficult as free time is now at more of a premium with 3 kids and my oldest now playing sports.  But unlike many people I talk to, I’m not going to use this as an excuse.  I would much rather sacrifice a little time with my girls right now so that a year or two from now I can spend all of the time I want with them for the rest of my life.  Going back to work made me realize just how much I really want to be my own boss and has given me more motivation to achieve that goal.  So if you’re one of those people who “doesn’t have the time” or “doesn’t have the money”, I ask you this…..when will you have the time and the money?  Perhaps building a home-based business will give you these things.  As they say, things don’t change unless we change.  We can’t expect to continue to do the same things we’ve always done and expect a different result. 

This change in mindset also led to the creation of Visionaries Worldwide, a premier coaching and training network focusing on personal development, financial literacy, leadership and entrepreneurship.  Our goal is to help 1000 people become financially independent.

First, many people are attracted to franchises because most of the work is already done for them and they think that the investment guarantees success.  Well think again.  The attached article from CNN Money highlights the Top 10 most popular franchises, their failure rates and the average loan amount which ranges anywhere from $90,000 to over $1 million.  Here is the list:

1. Subway
2. Quiznos
3. The UPS Store
4. Cold Stone Creamery
5. Dairy Queen
6. Dunkin Donuts
7. Super 8 Motel
8. Days Inn
9. Curves for Women
10. Matco Tools

Certainly there are plenty of advantages to buying a franchise, like name brand recognition, a business model has already been tested, and a lower failure rate for some than for others.  The disadvantages are the large investment, the time committment, and the break-even period can be years.  Have you ever had a small business owner will tell you “I don’t own the business, the business owns me”?  Here, the risk is high and the reward can also be big but typically the franchisees who make the most money own several franchises.

One of the big advantages to starting your own business is the absence of any franchise fee….but the disadvantages are similar to that of a franchise and the failure rate can be considerably higher due to the lack of brand recognition.  The risk here is very high but the reward can also be big.  In this and the franchise scenario, essentially you’ve bought yourself a job.

As for a home-based business, most can be started for as little as a few hundred dollars and be profitable in a matter of a few months.  Most opportunities provide quality products and services, brand recognition, world-class training and support, personal development and many rewards and incentives.  There are no buildings or rent, no employees, very little overhead and you can go at your own pace.  One of the best things about a home based business is the ability to work at it part-time, or in addition to a full-time job and once you’ve built the business and have a steady income, you’ll have more time to spend with your family or doing those things that you truly enjoy.  You truly own the business, it doesn’t own you.  With a 9 to 5 job or traditional small-business, you will always be trading your time for money.  The risk with a home-based business is very low, but the reward can be HUGE! 

10 Most Popular Franchises

Visionaries Worldwide is the premiere coaching and training network providing people with lifestyle change by way of thought transition, strategic planning and coaching. We focus on personal growth, financial literacy, leadership development and entrepreneurship.  Our vision is to help 1000 people achieve financial independence.

This enormous burden is the result of deferring loan payments while she completed her residency, default charges and non-stop compounding of interest.  Certainly Dr. Bisutti’s case is extreme, but it is just one example of a growing US problem.  According to a Wall Street Journal article dated February 16, 2010, “There is an estimated $730 billion in outstanding federal and private student-loan debt, says Mark Kantrowitz of FinAid.org, a Web site that tracks financial-aid issues — and only 40% of that debt is actively being repaid. The rest is in default, or in deferment, which means that payments and interest are halted, or in ‘forbearance,’ which means payments are halted while interest accrues.”

The article goes on to say that ”Dr. Bisutti recently entered a rehabilitation agreement on her defaulted federal loans, which now carry an additional $31,942 collection cost. She makes monthly payments on those loans — now $209,399 — for $990 a month, with only $100 of it going toward her original balance. The entire balance of her federal loans will be paid off in 351 months. Dr. Bisutti will be 70 years old.

The debt load keeps her up at night. Her damaged credit has prevented her from buying a home or a new car. She says she and her boyfriend of three years have put off marriage and having children because of the debt.” 

Some quality of life, right? 

As I write this post from our hospital room after the birth of our third child (3 girls), I reflect on my own situation and hate to think that my girls could end up in a predicament like Dr. Bisutti’s.  The problem is, how in the world does the average family ever save enough money to pay for 3 college educations and weddings, as well as plan for their own retirement?  The answer, I’m afraid, is that it will most likely be impossible if they plan to rely ONLY on a traditional 9 to 5 job….unless, of course, they are willing to create a strict budget and make serious adjustments to their standard of living by cutting out ALL of the extras.  But again, what kind of quality of life is that?

Let me illustrate.  The average annual cost of a 4 year, in-state public college is currently around $20,000.  The average annual inflation rate for college tuition is about 8%.  So, to send my 6 year-old to college in 12 years it will cost approximately $220,000.  To send my 4 year-old to college in 14 years, it will cost approximately $260,000.  And to send my newborn to college in 18 years it will cost approximately $350,000.  The total for my 3 girls comes to over $800,000! 

Again, let’s do a little math.  If I wanted to set up a monthly investment to pay for my girls’ college tuition, at an average growth rate of 7% in mutual funds, I would have to save nearly $3000 per month for my money to grow to over $800,000 by the time my youngest turns 18.  Who do you know that has an extra $3000 per month?

So what’s the solution to the student loan dilemma?  Perhaps it lies somewhere in between the two extremes, like paying for part of the tuition on your own and borrowing the rest.  Certainly this is one possibility, right?   How about scholarships?  Unfortunately these are things we just can’t count on and I don’t know about you but I just can’t, in good conscience, put my girls in a situation where they have to borrow hundreds of thousands of dollars for school.

Another approach might be to teach our kids the meaning of entrepreneurship and the value of a small or home-based business, something that they don’t learn in schools, versus relying solely on a college degree and a “job” as their ticket to financial independence.  Don’t get me wrong as I am not discounting the value of a quality education, I’m simply suggesting that we shouldn’t be so quick to pin our entire future on a piece of paper, as I can tell you first-hand that the minute your employer gets into financial trouble that degree doesn’t mean a thing.

To quote one of my favorite authors once again, “Work full-time at your job and part-time at building your dreams because you’ll never become financially independent working for someone else and building their dreams.”

So is the economy recovering yet?  I guess it depends on who you talk to.  And will all of those people who lost their jobs in the current recession eventually go back to work?  Well…the Economic Cycle Research Institute (ECRI) isn’t so sure.  Here is what Lakshman Achuthan of the ECRI had to say during a recent interview when asked about high unemployment:

“That, unfortunately, won’t change even as the rate of job losses continues to improve.”  Achuthan figures 40% of the unemployed, particularly in manufacturing, are permanently unemployable. “So, those people are displaced. The recovery is happening. It’s very real, but the economy doesn’t want their skills for one reason or another.” He says, “it’s very real but economy doesn’t want their skills.”

So what is one to do if they fall into this category, especially here in Michigan?  Many are choosing to go back to school to learn a new skill as their former employers are providing assistance in this area.  Certainly this makes some sense, but my question is; how long will it take to complete training in a new skill or to earn a new degree?  A year?  Two years?  And once complete, whose to say that a job will be waiting for you?  Then if you do get a new job, you’re right back in the rat race and vulnerable to the next economic downturn!

On the other hand, millions are now choosing to take their futures into their own hands by starting a home-based business.  The advantage here is that instead of spending 1-2 years in school with no guarantee of finding a job afterwards, these people are working hard at building their business and generating residual incomes that equal or exceed what they were making at their old jobs.  Sometimes within months!  So while some of their friends are just finishing school and going out to look for that new job, many who are succeeding in their home-based businesses are waving goodbye to the old 9 to 5 for good.

Read the entire article here: Article

“Conventional wisdom says that you need to save $1 million for retirement.

That target may be easy to remember, but it falls short of the true cost of what’s required for post-career comfort. Longer life spans, the threat of inflation and the uncertain future of Social Security benefits make this long-touted savings advice inadequate for most, advisers say.”

If you do the math, $1 million invested at 4-5% equates to a $40-50k per year residual income.  How long does it take to save $1 million, if you could do it at all?  Pretty scary to think about, isn’t it? 

There is one big problem with this calculation, though.  It doesn’t take inflation into consideration!  What this means is that at a historical average rate of 3% inflation, if you plan to retire in 20-30 years, a $40-50k income in today’s dollars actually equates to $80-100k in future dollars.  So to generate an $80-100k income in 20-30 years you will need to have saved approximately $2 million. 

To address this very issue, many people are choosing to start a home-based business.   Most you can start for as little as a few hundred dollars and, over the course of a few years be generating the same residual income of $40-50k that you would get from a $1 million investment.  And we actually have people that are doing this very thing in a matter of months!  Which do you think would be easier, saving millions or spending a few hours a week building a home-based business?  In other words, if your boss told you that if you simply worked an extra hour per day for the next 3-5 years that you could retire, would you do it?

If you are concerned about your ability to save over $1 million for your retirement, perhaps a home-based business is an option to be considered.

Read the entire article here:  Article

False expectations. For the past 40 or 50 years, Americans have lived by a series of unofficial tenets: A good education guarantees a good job, hard work will bring prosperity, and 40 years of 40-hour-a-week work earns a comfortable retirement. Then, maybe; now, not so much. Workers who believe that somebody owes them a comfortable life just because they try hard are risking bitter disappointment in a Darwinian economy, where there are likely to be more losers and fewer winners than we’re used to. The winners will be those who learn how to adapt, expect nobody to give them anything, and are prepared to work harder in the future than they did in the past. That’s how it was in America before anybody ever heard of the middle class, and it may be that way for a while again. The real middle class–the true bedrock of the nation–will be able to handle it.

The good news is that there are options, you simply need to have an open mind and a desire to make a change.  Visionaries Worldwide is helping people to address these issues by providing education on personal development, financial literacy, leadership and entrepreneurship.

Working from home is now viewed by many as their ticket to realizing their dreams. The amount of money you could earn is proportional to your own performance, without waiting for the boss to give you a raise or promotion. Whether your home-based business provides you with the sole means of support or just generates an extra stream of income, its earning potential relies on your self-motivation and dedication.  Most people start out working their business in their spare time but when the income from their home-based business surpasses that of their regular job, many opt to quit their 9 to 5.  Isn’t that the unltimate dream for most?

While the financial benefits of working at home are very attractive, starting a home-based business is not for everyone. Afterall, if building a successful home business was easy, everybody would be doing it.  So before you jump at the chance of starting your business, ask yourself if you’re willing to make the sacrifices to make your dreams come true. To be more specific, ask yourself if you’re the right type of person for a home-based business.  The problem is that most people are geared toward receiving some sort of instant gratification and can’t seem to keep the long-term perspective in mind.  A home-based business, like any business, takes time to build.  But I’m sure that most would be satisfied working part-time building a home -based business for 3-5 years if they could ultimately quit their jobs and never return to work again!

Quite often I get negative comments from people when I share my own business with them.  This is primarily because they don’t understand it completely and unfortunately many of them aren’t willing to open their minds long enough to learn.  The fear factor tends to hold people back and prevents them from starting a home-based business, and many are so afraid of failure that they won’t even try. To some extent, they envy those people who were willing to take action and start a home-based business. For many, this is something they dream of but can’t achieve. I’m sure you’ll get derogatory remarks from time to time like I do, but my view is this;  follow your heart and do what’s interesting to you. You’ll find a business that suits your needs because there are unlimited opportunities out there. Stay focused with whatever you’re doing and your success is the best revenge for their criticism.

Check out these statistics:

- According to industry experts, home-based business is a $427 Billion a year industry. That’s more than the pharmaceutical industry, food industry, and consumer goods industry – combined! 

- Every 11 seconds someone starts a home -based business. 

- It’s estimated that over the next 10 years, 200 million people will enter the network marketing/direct sales industry.

- World-renowned economist Paul Zane Pilzer predicts that 10 million new millionaires will be created in the next 10 years, with the majority coming from the wellness and network marketing industries.

- A recent IDC survey indicates that the average income for income-generating home office households is $65,000 a year.

- Most home-based businessed can be started for a few hundred dollars and earning a profit in a matter of weeks.

- From a survey done by Home Office Computing Magazine:
   98% are happier working from home.
   96%would recommend working from home.
   88% would never return to the corporate world.

“Work full-time at your job and part-time at building your dream because you’ll never become financially free working for someone else.” – Robert Kiyosaki

Dusty Ely with an introduction to our new venture.