Sunday, July 10, 2005

Be Safe - Diversify Your Assets

What are you doing with all that money you've made online?

Spending it?  Reinvesting it in more sites?  Taking some of the cash out and starting new ventures offline?  All of these?

My unprofessional advice is to do all of them, especially starting new ventures offline.  My personal favorite offline venture is real estate -- it's a solid, tangible asset with a proven track record of increasing in value.  All the "doom and gloomers" keep screaming about a real estate bubble, but let's face it, there simply is no more land being created, and the demand is growing every month.  This equals higher prices, no matter how insane some of those prices seem to be!

In other words, don't take every dime you've made online and buy a new Mercedes for yourself and your spouse without setting some of that money aside as a cushion against future declines in revenue (enough cash to cover 2 years of expenses without a single penny being earned helps you sleep well at night).  Spread your earnings around, keep creating new sites, take a few vacations, and invest for the long term -- in other words, stay balanced.

 


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