What’s Your Investment Plan?…Part II
October 29th, 2007 by 
Amit
Okay, I did not expect such an overwhelming response to my last blog post, it generated a lot of confusion and controversy. More controversy than most of my lifestyle posts!?! LOL
So I thought it would be fitting to do a second post in response to all the comments and to clear up any confusion about what I was trying to say.
Overall, the comments and exchange was excellent, some of the comments suggested that a lot of you were confused about what I was saying. Let me clarify a few points:
- I did not say that I don’t plan to invest any of my money. On the contrary, I plan to invest my money into tax free closed end funds, real estate, and other businesses. I’m well aware of the fact I’m losing money (taking account inflation) just leaving it in the bank. I also have some advanced entity structuring and tax strategies to protect my money.
- I did NOT say that there are no other legitimate business opportunities other than ppc affiliate marketing.
- No, I don’t pay interest to Amex for charges on my black card, or any of my other cards for that matter. You pay ZERO interest on charge cards and credit cards if you pay them off before the due date, which I do.
- Your goal is to maximize your leverage, the more money you have tied up in an investment, the less money you have to invest in other things. This is why I put all my ppc expenses on my Amex card, aside from the awesome benefits of racking up millions of rewards points (domestically I fly first class all the time for free!).
So what exactly was I trying to get across?
You need to BUILD A BUSINESS FIRST that will create a strong cashflow for you, THEN you can take that cashflow and invest it anywhere you like.
Now the business model of my choice is ppc affiliate marketing, and I assume it’s the business model of choice of most of my readers. If you’re at wiz at stock options, creating your own product, or whatever, than go with that.
The problem with what most people do is that they take what meager amount is left in their paychecks (if anything) after tax withholdings and paying their person expenses and then invest that!
I don’t know about you, but when I worked a job I had about $200 left at the end of each month after I paid all my expenses.
$200!?!
Now you can put that money into the best mutual funds, 401(k)s and IRAs, and even after years, it won’t amount to much.
Now if you take the time to learn how to build a business, such as ppc affiliate marketing, and generate a strong cashflow ON TOP of your job income. Then you can take all the profits, say $3000/month (assuming $100/day profit) and invest that into your favorite investment vehicles.
If you’re really smart you’ll invest that $3000 back into expanding your ppc campaign(s), which is necessary in the beginning before you have a charge card where you can rack on $100k+ of expenses every month.
Would your rather invest $200/month or $3000/month?
You don’t have to make millions with affiliate marketing to build a strong financial future for you and your family. Just focus on making $100/day profit, and you’ll completely change your financial future.
What’s even more exciting, when you learn how to make $100/day profit in one niche, you have developed enough skill sets to leverage that $100/day in other niches. Or if you take my advice you’ll build up that $100/day niche to a $1000/day one!
And that will COMPLETELY change your life. 
Posted in Super Affiliate Mindset | 
Amit,
You hit it right on the nail! I think that was a pretty big point that you clarified - PPC, investing, whatever it is, can do very well, but you need to create teh strong business behind it, first, before seeing the impressive cashflow.
My comment on paying interest was to be directed more toward real estate, and setting up businesses behind your real estate investments, leverage mortgages/loans and writing off whatever is possible.
hi, i made 100$ a day with adsense for 3 months (about $8,000 total)and i used that money to pay off my bank loans.
it was such a relief to have those loans payed off, it saved me about 350$ a month on those monthly payments. it feels very refreshing to eliminate dept which is the first step before investing from my point of view. now with that extra 350 a month i invest in my affiliate business.
I no longer make $100 a day because google banned my account (yes i was breaking TOS), now im working on promoting affiliate ads and i actually made $20,000 in 2 months from promoting offers from my aff network.
I used that 20k to pay off a big chunk of my Nissan Armada which is causing me $560 in monthly payments. when i get this car payed off i will have 560 a month to reinvest into my affiliat business.
I no longer make 10k a month because my account got banned from my aff network (yes i was doing illegal tactics).
anyway i am now with a new aff network company and making only $10 aday. its hard to make money doing things legally!
Amit, Looking forward to reading more about some real life case study on this ppc you are pushing. Hope it’s not all just ebooks and scams that ppl tend to associate with this.
Thanks Amit! I like your blog and it’s really motivating! Keep on great work!
Excellent information!
I particularly love your $100/day plan. Focusing on making a $100/day residual or even $10/day consistently, is by far the best way to take the first step into becoming a super affiliate.
Thank you Amit. I knew this is what you meant. I think a lot of people assumed that you were still just putting all of your money into PPC, but those of us that have read all of your posts know that you took a little trip to Austin, TX to scout some investment real estate
This reminds me of the Founder of a company I used to work for. In the beginning he took out a second mortgage on his house to save the business - today he is worth over $5 Billion. Now I’m not saying that everyone should run out and do that, but if you truly want to change your life, you have to invest in your own business before others.
I have seen a post on Jeremy’s site where the writer started with a goal of $273.97 a day or $100,000 a year depending on how you look at it. A year after his first affiliate check he has quit his day job and has PPC cost around 10K-12K a mouth. (if he is reading this, Hope he doesn’t mind the mention). So I do know that a guy like me can make this work. But it is very hard-currently
I have taken to this $273 a day number and decidied to focus on it. I can’t take on any more credit bills or mortgage loans. But I do cut back and work a second job to keep the wheels greased. $15-$20 a day in PPC is easy right now. I’m hoping to do away with one job in 6-8 Months, hopfully. I’m hopful to get to that “tipping point” soon.
Sign,
Tired but still in the game:)
Amit,
You were making $90,000 dollars a year and all you had left after expenses was $200 dollars? you either were living beyond your means or you were getting killed with student loan repayments. If you don’t have kids, a salary of 90K should be enough to sustain you quite comfortably.
My next question is this then:
how much did you spend on your first ppc campaign?
Susan,
You have to remember that Amit lives in Boston which is one of the most expensive places to live in the country. I can also tell you that my wife and I gross about $105,000 a year and we are lucky if we have $500 at the end of the month. This is not hard to do when you have school loans, mortgage, two car payments, and daycare to pay for. Do I live above my means? Not now, but I did when I was in college, and unfortunately that is true for a lot of people. Now I have to catch up.
hey REC you should try doing thinks a bit illegal, or , outside the box.
you may find that you will not be tired anymore but actually energized by all the money rolling in so quickly.
the down fall is that it would all come to an abrupt end very soon and your dreams would be crushed like mine. but hey atleast you can say that you took a walk on the wild side for once.
Andy,
I live in Boston as well, but I don’t own a home (can’t afford one) and I wondered how all those people making 50k or 60k a year were buying homes worth 500k 2 years ago. Does anyone wonder why this sub-prime mess is happening?
Anyway, it’s yet another reason why I decided to start looking into AM. I saw a couple of friends who bought houses which they really couldn’t afford. They tried to turn them into investment opportunities by renting them out to tenants, but that didn’t work and one is in foreclosure right now.
So, I do agree with Amit when he says the focus should be on trying to accumulate CASH IN THE BANK; you can take money with you to any part of the world (can’t do that with a house) the payout in real estate takes too long (who wants to wait 30 years before they see a positive ROI?)
I’m surprised amit didn’t mention one of the attractions to AM - which is the lower barriers to entry than other traditional businessess (or is this not the case?)
Old,
Outside the box thinking is a good idea. Amit has spoken a lot about working outside the comfort zone.
Do illegal stuff, NEVER. I have a wife and kids. And its wrong, very wrong. Success is not just about Money.
Susan,
The mortgage brokers in my opinion can take a lot of the blame. They got all these new loans together in one package,
held them for a year or two, then one day you get a letter saying your mortgage has been sold to some other bank. The broker didn’t care about any other bank or home owner. Now the real banks who took on these loans have home owners that are having trouble making payments. There are other ways to invest in Real estate without owning a property. But even with that the market is rough these days.
Right now even when it seems hard, we are in the right place at the right time. I think AM is going to take off in the next year or two.
It’s funny Amit’s last post was about YOU the readers (what you are doing for your future, with your money, etc) and he got 30 responses back about him and what he’s doing with his money and acquisitions of “showing off”…I’m just wondering who’s making this blog all about the world of Amit Mehta…Amit or his readers?
FYI: I know Amit and NO he does not have all of his money piled up in his living room and he doesn’t snicker all day long about how he’s richer than you.
That’s great, I’d love to get to the $100 mark, shoot I’d go for $50/day for a while.
Jeff,
Chill. Just chill.
I have all my money piled up in my living room.
Damn Benjamins covering my keyboard.
Amit,
Who the hell cares what you do with your money, It’s nobodys business. When I start making 100 a day it will be heaven for me! just keep feeding me your tips, and some campaigns (products) you push.
Cheers,
Jim Novak
I’m really glad you wrote this… reminded me of what I have lost focus on lately: leverage and building cashflows to finance other businesses. I wouldn’t be surprised if you read Kyosaki’s books.
Invest earnings back into your business.
Invest in yourself.
And something I’ve done recently, investing in people, like Ron Paul (if you haven’t heard of him: http://www.youtube.com/watch?v=FG2PUZoukfA )
I love the idea of $100/day. It’s similar to that $5/day ebook. It’s not the dollar amount that’s magic, it’s having specific goals, being focused (remove distractions) and taking persistent action.
Warmly,
Chad