Category Archives: Financial Independence

Are you happy with the 45-Year Plan?

Have you ever heard of the 45-Year Plan?

Watch this video, and I’ll explain it to you….


So what is the alternative?


Well, they reckon that about 5% of the population is financially independent or rich. The rest are surviving on benefits, or are following the 45-year plan.


The 45 Year Plan

The 45-year plan is what we are taught at school:

Work hard, get good grades, get a job.


So you get a job after leaving school/college/university and usually your income rises over the first few years as you gain experience, business knowledge etc. Then you reach your peak earnings, usually around age 30, and your income will usually stay about the same level, rising a little with inflation, maybe dropping if you have to look for another job. Then, at around 65, you retire.

You retire and have lots of time……. but no money. You are now living on a state pension, and maybe a company pension if you have been disciplined enough to pay into it for the last 45 years. They often don’t amount to much.


This is what the 45 year plan looks like…


The top 5%

Now there are some exceptions to this. The top 5% are rich, or financially independent. They usually become rich by having their own businesses.


Why don’t we all start a business?

Most people don’t want to start their own business. There are usually high start up costs, the risk of what if it doesn’t work, problems with staff, all sorts of reasons.


The alternative?

An alternative to the 45 year plan, living on benefits, or risking it all in a traditional business, is a Home-based business.


Home-Based businesses are really taking off now, from using and promoting healthy aloe-vera products, marketing utilities, and home shopping such as Avon or Kleeneze (my home-based business).


So why are they better than starting a traditional business, or just sticking to the 45-year plan?


There are many benefits to having a home-based business…

  • Flexible Hours
  • No Boss
  • Take time off when you want


But the biggest benefit is the residual income.


Home-Based businesses usually follow a model where there are two ways to earn income.

  1. Commission from your own sales.
  2. Bonuses from sales of people you introduce to the business. 

and the second of these provides the residual income.


Typically, you start your business, and sell some product or service, then you share the opportunity with a friend. He also sells some of the product and service, and you get some extra bonus as a result. You introduce another person to the business, and your friend introduces one or two, and your bonus gets bigger. And so on.


If you persevere, support and coach your team members, your income changes from the 45 year plan (see above), to this…


45 year plan - the alternative



As you can see, it can take a while before your team members start recruiting people, who start recruiting people, and so on, but when they do, that is when your income takes off.


THEN, when you retire, you have a lot of time on your hands, AND money to spend aswell.


If you’d like any more information about working with me, just enter your details in the boxes at the top of this post.


Bye for now,

Chris Smith

25% of people want to own their own business

I saw an article the other day that said “25% of people would like to own their own business”.



Now they do say that Britain is a nation of ShopKeepers, but even so, this figure surprised me, because I see so many people out there just looking for jobs, not looking for ways to start a business.


However, I have been self employed for over 6 years now, and I know that it is not as hard as it sounds. The boom in home-based businesses has transformed the way people can earn money.


There was a survey done some time ago, that looked at 100 25 year olds, and found that, by the time they are 65…

  • 1 will be rich
  • 4 will be financially independent
  • 6 will still need to work
  • 32 will be dead
  • 57 will be dependent on the state


Now the top 2 groups (i.e. 5% of the survey) typically own their own business, so clearly that is the key to having a wealthy lifestyle.

However, most people do not want to start a traditional business, because you need to have a large lump sum to get started, or remortgage your home, or take out a huge loan. You usually have to work for 2-5 years just to break even, and are tied in to rents, rates and other overheads.


So what are the alternatives?


As I mentioned earlier, the rise in Home-based businesses give you the freedom and earnings potential of a traditional busines, without the risks and costs of a traditional business.


My home-based business of choice is Kleeneze. It has been around for such a long time, it is a tried and tested business with a well-known Brand, so it is really easy to see how people earn money just delivering catalogues, and showing other people how to do the same. Work hard, build a strong team, and the residual income gives you the financial independance that you could never have with a job, without taking the huge risks of starting a traditional business.


If Kleeneze is not for you, have a look around – there are lots of opportunities out there.


If you would like some more info about working with me, just enter your details on the boxes on the Right.


Bye for Now


Chris Smith 🙂


What would you do?

For a while now I have been struggling to make a decision.


I will warn you now, this is not a very exciting decision, or struggle, but if it helps you, then I am pleased.


If you will bear with me for a moment, let me take you back a few years.


For the first 25 years of my working life, I worked for various corporations. The usual stuff in IT, computer support, then middle management. Working my way slowly, slowly, slooooooowwwwwwly up the corporate ladder so that I could retire and have loads of time on my hands and no money to spend. Not very exciting, but hey, that’s what you do isn’t it?


Then, in 2006 my Mum had a stroke, and I spent a week at hers, waiting for hospital visiting times, watching daytime TV.


Now Daytime TV was full of those property programs – you know, Sarah Beeney stuff, where a couple would buy a run-down house, make a complete hash of refurbishing it, ignore all of Sarah’s advice, go way over budget, and STILL make £50,000 profit.


So I thought – “I can do that”….


….and that’s what I did. I had paid off my mortgage, and I had enough savings to last about 6 months, so I resigned from my job, and became a Property Investor. Well that’s what I called myself.

So for a couple of years I was a Property Investor. My aim was to buy properties, rent them out, and live off the profits.


I tried various techniques – buying off-plan, buying new build, buying distressed properties that needed work…. I gradually worked out what was working well, and did more of that. One of the big things that helped was that mortgages were so easy to come by…

“I’ve found a cardboard box that I’d like to buy. Can I borrow £100,000?”

“Can you afford the repayments?”


“OK, here you are…”


Just a minute, maybe that is why we had a property price boom, followed by a bust!


So when the banks said – “Ooops, maybe we shouldn’t lend money so easily” I decided to stop that line of business, and look for other things (e.g. Kleeneze, but that is another story).


However, having stopped buying property, I still had the ones that I had bought, and tenants in them that paid rent, or sometimes didn’t, and boilers that broke, and so on. The joys of property investment.

…..and so to my decision.

Over the last couple of years I have been making a bit more each month in rent than I have been spending on mortgages, repairs etc. So what to do with the profit? Not a bad problem to have, I know.

The options I considered were…

  1. Pay a little off the mortgages each month.
  2. Save up for a rainy day.


Now I have always been a cautious person, and these both seemed cautious approaches. It feels like paying off the mortgages would be a good thing to do in the long run, as smaller mortgages would mean lower costs, and increased profits. However, I know that the low interest rates we have now will not last forever, and when they start to rise, the savings would provide a good buffer should my mortgage costs rise to more than the rental income. (Very Plausible!)

So that was my dilemma, and the decision I could not take. I decided to save the money, because if I ever changed my mind, I could simply pay a lump sum off the mortgages. Kind of having my cake and eating it.


Now that decision seems to have been the right one, but not for the reason I anticipated.


One of my houses was in a bit of a mess. However the tenants were happy with it, they paid their rent on time, so I did not mind. However, the tenants have now left, and there is no way I can let the house out in it’s current state. Have a quick look at the outside to give you an idea…

I won’t show you the inside, but I’ll give you a hint. They had 20 cats!


So I now have to spend most of my savings getting this property in a fit state to rent out again.


So I guess keeping the money was a good idea. If I had paid off some of my mortgages, I would have found it very difficult to get funding for this project, as banks are not lending at the moment, and the value of the property has gone down, so difficult to get a second mortgage.

…and that’s where I am. Hopefully when the work is finished and the house looks beautiful, and I get the perfect tenants paying their rent every month, I will be pleased with the decision I made.

Come back in 6 months and I’ll let you know.


Anyway, enough of my pointless waffling. As I said at the beginning, I didn’t know what to do, but I think I made the right decision, albeit by accident.


Bye for now.

Chris 🙂