Another adage that I don't recall hearing in any Amway meetings has to do with not putting all of your eggs in one basket. It has to do with not putting all of your eggs in one basket.
Actually, the only time I recall hearing that statement was from our arrogant prick sponsor, who claimed that when he is recruiting prospects, he begins to instil anxiety in them about their job and that he hopes they don't put all their eggs in one basket because they will be done.
Well, what else would you expect from a filthy little guy like him, I suppose.
Diversify! In an Amway meeting, this is a word that will never be said because the actions involved in diversifying take time and money away from the cult leaders' efforts to earn an income doing the Amway thing. As an alternative, the inverse is taught: don't put all your eggs in one basket. One that belongs to the Amway hen house, to be precise.
Basic diversification involves investing in a number of assets and spreading the risk around so that, in the event of one venture failing, there are other assets in the pipeline that might come out better. You should first determine your individual risk tolerance and the amount of money you can afford to lose if things don't turn out as planned before you begin to diversify your investments.
For example, if you work for Amway, you should expect to "invest" at least $10,000 each year in Amway items, attending events, and purchasing tools. If you have a better purpose for that $10,000, I strongly advise you to go down that road.
Consider the following scenario: someone has $150 sitting in their savings account, and an IBO is attempting to persuade them to "invest" in their own business as an Amway IBO. The person does not want to risk losing all of their $150 in Amway, and in this case is probably unaware of the hundreds of dollars that can be earned on top of that by purchasing Amway products and attending Amway functions, as this information is not revealed until after the person has been sucked into the lies. On the other hand, the $150 in the savings account is earning only a half-percent rate of interest on its principal. However, same person may be comfortable putting $100 of that $150 into 100 shares of a stock that is currently trading at $1 per share. They could lose their entire $100 investment if the stock takes a plunge, but they would still have $50 in their bank's savings account, which would be a significant amount of money in the long run. Alternatively, the stock could take off and be worth $25 per share by the end of the year.
As an example of diversification, a homeowner might opt to invest in a second property, utilising the equity in their first residence as a down payment, and then rent out the second home, presumably earning somewhat more than the mortgage payment on the first home. The mortgage will be completely paid off in twenty years. It is at this point that the owner can decide whether or not to continue to rent the house. In this case, all rental income is now considered profit, with some deductions for city taxes and general maintenance as the house grows older and items such as the roof and hot water tank need to be replaced. It has now turned into residual income, which is far more than the majority of IBOs will ever see! Alternatively, the house can be sold, with the proceeds going to the owner as profit.
Poker or gambling, stock market investment, or house flipping are all options for some people who are exceptionally talented and lucky to make a living.
Whatever they're up to, they've figured out a way to broaden their horizons. Those are words that should never be stated at an Amway meeting! This is probably due to the fact that when people examine their investments and determine which ones they should sell, they begin with the one that is losing money.
Here's something to make you laugh. Our conceited jerk of a sponsor informed us that he is constantly seeking for methods to diversify his income, specifically through investments. This son of a b*tch who is perpetually in arrears on his payments, a tenant who is constantly on the verge of being evicted, who drives old beater cars, and who never has any money Diversify your sources of income! What kind of disposable income does he have laying around the house? I believe that he would be unable to discover viable investment opportunities for himself. However, it is always enjoyable to daydream.
Oh, wait a minute. That is the essence of what Amway is all about. Dreams!
I've come to the conclusion that the great Amway dream is a load of garbage a long time ago. I've discovered more effective methods of making my money work for me.
0 comments: