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Wednesday, August 4, 2010

Resource allocation...

When Bourne goes to the Swiss Bank in Zurich to see what's in his money box, he realizes he has various resources at his disposal.  By resources, I don't mean how much you have in your bank.  What I mean is what resources are valuable to you.  For example, in the safe deposit box, there were various items such as a Tag Heuer watch, multiple passports, and loads of cash.  Now the cash part is pretty easy; it's a valuable resource to purchase other items and generally to survive.  How are the watch and multiple passports important?  The watch is a trustworthy brand that can be used in any scenario.  The passports provide Bourne with multiple identies and safe havens when he travels.  Both are valuable resources in their own right.
For your first 6 months, what valuable resource do you wish to allocate or how do you wish to further the allocation of that resource?  For me, it was very simple: I wanted to create a way to earn more money without allocating excessive effort on my part.  So I decided to create a website that would bring in about $1000 per month.  I started to think of various ideas on how to do so, and I used a great resource called "The 4 Hour Work Week" by Timothy Ferriss.  It describes how you can use your social network and contacts to start a side business that can prosper.  The best way of creating such a business is online.

Other ideas for resource allocation is trying to earn frequent flier miles (which will help your Travel goal category).  You can sign up for a major credit card that gives 20,000+ miles with your first purchase with the card.  Further, you can pay all your bills through that credit card to earn the most amount of points possible.

If you are thinking along the lines of accumilating more wealth, always remember: do what you love.  It sounds like a cliche or it sounds overused, but it's very true.  You need to do what you're passionate about.  If you enjoy sports, then find a business idea that will incorporate sports in it.  If you love cooking, then create a business about cooking or recipes.  Do what you enjoy most. 

For Bourne, resources were a matter of survival.  In away, it's a matter of survival for you as well...survival from the mundane.

Some great reads on resource allocations are the following:
  • The Unemployed Millionaire: Escape the Rat Race, Fire Your Boss and Live Life on YOUR Terms! by Matt Morris
  • The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss
  • Crush It!: Why NOW Is the Time to Cash In on Your Passion

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