Saturday, February 26, 2011
Put all Your Eggs in one Basket!
There’s another saying that I don’t recall hearing at any Amway meeting and it has to do with not putting all of your eggs in one basket.
Actually the only time I remember that phrase being used was by our arrogant prick sponsor who said when he’s recruiting prospects that he starts putting fear into people about their job and how he hopes they don’t have all their eggs in one basket because they’ll be finished.
Well what else do you expect from a rotten little bastard like him?
Diversify! A word that shall never be spoken at an Amway meeting because the activities involved in diversifying take away time and dollars from the cult leaders efforts to earn an income doing the Amway thing. Instead the opposite is taught: put all your eggs in one basket. The one that belongs to the Amway hen house!
Basically diversifying means investing in a variety of assets and spreading the risk around in case one venture fails there are other assets on the go that might turn out better. Before diversifying its a good idea to figure out your own risk tolerance and how much money you can afford to lose should things not work out so good.
For example in Amway, be prepared to “invest” at least $10,000 a year on Amway products, attending functions, and buying tools. If you’ve got a better use for that $10,000, I recommend that’s the road you take!
Say someone has $150 kicking around in a savings account and an IBO is trying to get them to “invest” in their own business as an Amway IBO. The person doesn’t want to risk all their $150 in Amway and in this case is probably ignorant of the hundreds of dollars on top of that to buy Amway products and attend Amway functions because you don't find that out until after you've been sucked into the lies. On the other hand that $150 is only getting half a percent interest in the savings account. But that person might be comfortable risking $100 of that $150 into 100 shares of a stock that’s currently selling for $1 a share. The worst thing that can happen is the stock takes a nosedive and they lose their $100 but not all is lost because they still have $50 sitting in the bank’s savings account. Or the stock might take off and at the end of the year is worth $25 a share.
When considering diversifying, a homeowner might decide to invest in a second house using the equity in their main residence as a down payment and renting out the other house - hopefully for a few bucks more than the mortgage. In twenty years the mortgage will be paid off. At this point the owner has the choice of continuing to rent the house and all the rental income is now profit with some deductions for city taxes and general maintenance as the house gets older and things like the roof and hot water tank need to be replaced. It now becomes residual income, more than most IBO’s will ever see! Or else the house can be sold and the equity is profit to the owner.
Some people who are incredibly talented and lucky make a living playing poker or gambling, investing in the stock market, or flipping houses.
Whatever they’re doing they’ve found a way to diversify. Words that never should be spoken at an Amway meeting! Probably because when people are looking at their investments and figuring out which ones they should cut loose, they start with whatever one is losing money.
Here’s a laugh. Our arrogant prick sponsor told us he’s always looking for ways to diversify his income, talking about investments. This son of a bitch who’s always behind on his bills, is a renter always under the threat of eviction, drives old beater cars, and never has any money. Diversify what income! What disposable income does he have lying around? I think finding ways to invest would be an impossibility for him. Its always nice to dream though.
Oh wait. That’s what Amway’s all about. Dreams!
I decided a long time ago that the great Amway dream is a bunch of bullshit. I have better ways of making my money work for me.