If I’m going to bet on a business, let me be the one who owns it

Let’s get straight to the point—creating a second stream of income can change your life.  If all you did was spend less and save more, you could probably start late and finish rich. But if you spend less, save more, and MAKE more, nothing will stop you from achieving your goal of financial freedom. And if you ALSO develop a second income stream, you can finish even richer than you might have if you’d started early.

The Four Rules For Getting Started

Most home-based businesses never get off the ground because most people get mired in minutia. They don’t realize there are really only three rules to follow to start a home-based business

  1. Ready
  2. Aim
  3. Fire

Okay, I’m kidding.  There are actually four rules you need to follow.

Rule No. 1 Make The Decision

Rule No. 1 is to make the decision you are ready to start a business at home. Find a spot in your house. Pick a day on your calendar and get started. Read books on how to start a business and do research, checking resources available on the Internet. But get started. A cause set in motion begets results.

Rule No. 2 Pick A Field

Don’t spend years trying to find just the “right business” for yourself; don’t worry if it you don’t get it right the first time. You’re not signing up for life and you’re not giving up your day job (yet).  Just pick something that gets you excited and get going.

Rule No. 3 Get Help

Considering how many resources there are out there to help you, it’s silly to try and go it alone. You’re not even close to being the first person to start a new business at home—more than 20 million Americans have gone before you—so take advantage of their experience.

Rule No. 4 Make It Legal

Although you don’t need a lot of “stuff” to start a business, you do need to make it legal. To keep the IRS off your back, you will need to set up a legal structure for your business by choosing from three structures: sole proprietorship, partnership, and corporation. For more information on the subject, go to the IRS web site at www.irs.gov and request publication #334, “Tax Guide for Small Businesses.” If you are selling retail products, you will more than likely need a State Tax Resale Number.

If you could start your own business what would it be? Write it down, make it real!

Live Rich,
David Bach

Which Records Should You Keep and Which Can You Ditch?

Your taxes are filed, your return should have arrived by now or is on its way—and now you’re left with a box full of bills, receipts and who knows what. With summer right around the corner, I want you to squeeze in one last bit of spring cleaning when it comes to your finances.

If you haven’t done so yet, I suggest you start by using my FinishRich File Folder System  to help you get all your financial documents organized and in one place. My File Folder System also helps you determine what important documents you need. But the fact is many of us keep too much information for way too long. (I’m guilty of this myself.)  So I’m here to help you determine what documents you can keep and which ones you can ditch.

Starting with your taxes, the fact is except in cases involving fraud, the statute of limitations on income-tax returns is only three years, so the Internal Revenue Service does not expect you to hang on to tax records and receipts for any longer than that. The main exceptions to this are if you’ve underreported your income (in which case you should keep your records for six years) or have claimed a loss from worthless securities (seven years).

Obviously, you should keep records documenting the cost basis of your home and all your other taxable investments for as long as you own them. The same goes for the basic documents concerning your retirement accounts and insurance policies, not to mention all loans and mortgages.

But don’t be shy about getting rid of old materials. Here’s a list of items you should consider throwing away (or shredding if the documents contain personal information):

  • Outdated warranties
  • Outdated instruction manuals
  • Outdated wills or trusts (provided you created a new one)
  • Canceled insurance policies
  • Credit card statements for closed tax years
  • Canceled checks for closed tax years
  • Old brokerage statements for closed tax years (unless they have cost-basis information you might eventually need)
  • Old annual reports from stocks and/or mutual funds
  • Old investment newsletters (some people keep these things for years because they paid for them—let them go!)

I hope that this information plus my FinishRich File Folder System  can help you get organized and on track! Let me know if you have ever used my File Folder System or if you have a better way to organize your finances share it below or on my Facebook!


Live Rich,

David Bach

NBC’s Today Show – Money 911 – May 16, 2012

Visit msnbc.com for breaking news, world news, and news about the economy

If you missed NBC’s Today Show – Money 911 segment this morning, make sure to watch it now. This week we discussed how to take advantage of cell phone loyalty programs, whether to use extra money to pay of student loans or put towards a home, and what to do about collection agencies harassing you about your debt. Hopefully our answers helped you this week. If you have a question you would like answered on Money 911, go HERE to submit it!


Live Rich,

David Bach

Where to look for FREE money for school

On the most recent NBC’s Today Show, Money 911 segment, Sharon Epperson, took a question from a viewer via Skype, her answer was so informative I felt that I had to share it with all of you in hopes that it can help you or someone you know!

Question from Deena in Jacksonville, NC:
I am an active duty military spouse, currently a stay at home mom, but and I want to go back to school to become an Ultrasound Technician. I know my full tuition for a degree in that field will cost about $10,000. I want to take advantage of any free money I can get towards tuition, what are some grants/scholarships I should apply for?

Sharon’s answer:
First, make sure you don’t overpay for your degree. Choosing the right school is the first step. You want to attend the most affordable, accredited program in your area. Check to see if your local community college offers an ultrasound technician program — it may be much cheaper that a private institution. Also verify that not only that the college is accredited, but also the specific ultrasound technician program.



In terms of finding free money, here are a few steps to take right now:



1. File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.  You might be able to qualify for the Federal Pell Grant. The maximum award for the 2011-2012 school year was $5,500.

2. Look into post-9/11 GI Bill education benefits, which provides tuition, fees, as well as books and supplies for military spouses. Your husband’s unused benefits may be transferable to you. Find out more information at www.gibill.va.gov or www.military.com.

3. Look into the Military Spouse Career Advancement Account program (known as “MyCAA”.) This program offers a maximum benefit of $4,000 ($2,000 a year) in financial assistance. Again, more info is available at www.military.com.

4. Use Military Scholarship Finder at www.military.com to find many scholarships specifically for military spouses or scholarships that you may qualify for based on your field of study or other attributes. Go to www.fastweb.com or www.scholarshipamerica.org.

You’ll find many scholarships for military spouses, including $1,000 to $5,000 scholarships from Thanks USA, www.thanksusa.org, a non-profit tax exempt charitable organization focused on thanking American troops and up to $1,000 from the Joanne Holbrook Patton Military Spouse Scholarship through the National Military Family Association, www.nmfa.org.

Hope this can help you or someone you know and thanks Sharon for the great answer!

Live Rich,

David Bach



A Mother’s Decision That Changed My Life Forever

In the spirit of Mother’s Day, I want to share a story about a woman who has inspired me and my career, my Grandmother Rose Bach.

Grandma Rose, was the head buyer for wigs at Gimbel’s (back when Gimbel’s was one of America’s leading department stores), she was a working woman at a time when most women weren’t. My grandparents were never wealthy; in fact, they never even owned their own home. Nonetheless, my grandmother decided once and for all, at a very early age that she wanted to be an investor. 

Acting on her own, she took her earnings and put as much as she could afford into stocks and bonds. Over time, and without any advice from her husband (my Grandpa), she built up a high-quality portfolio. When she passed away at the age of 86, her investments were worth close to $1 million—this, from a woman whose first job paid only $10 a week!

There were many things my Grandma Bach taught me, but for our purposes, there’s one lesson that deserves to be singled out:

You don’t have to be rich to be an investor!

Of course, by becoming an investor, if you do it wisely like my Grandma Bach, you will almost certainly get rich!

She started teaching me this very lesson at the early age of seven when she helped me make my first stock purchase. Whenever I spent time with my grandmother, she would bring me to lunch at my favorite restaurant in the whole world, McDonalds. One day, at her prompting, instead of asking for ketchup for my fries when I marched up to the counter, I looked at the woman on the other side and asked, “Is this company public?”

The counter lady looked back at me as if I were nuts, then called over the manager. “Yes,” he told me, “McDonald’s is a publicly traded company.”  After a little persuasion from Grandma Bach (and a lot of vacuuming and dish washing), I saved my allowance for three months and managed to accumulate enough money to buy three shares of McDonald’s Inc.

Since then McDonald’s stock has gone up in value and split so many times that those original three shares of mine have multiplied into close to 200 shares. Even more, I have been an investor ever since and have in turn taught my son Jack the same lesson.

Grandma Bach’s decision to become an investor and educate herself financially changed the destiny of my family for generations. She taught my father, my sister, and me how to look out for investment opportunities. Following her practice of keeping alert to the opportunities that were all around us, we would each become millionaires in our own right (my sister and I while we were still in our thirties).

She has been my inspiration to teach and empower women to take control of their finances and write my 9 New York Times bestselling books that have helped millions of people around the world.

Wishing you a Happy Mother’s Day, Mom – I Love You!


What was the best piece of advice or lesson your mom or grandma ever gave you?

Share your story below or on my Facebook page at www.facebook.com/davidbach.

Also, tell YOUR mother or Grandmother the advice they gave you that has impacted you the most and how grateful you are to have them in your life. It’s a gift that costs NOTHING but will mean everything to them this Sunday.

Can’t wait to read your comments. And for all the mothers in my community – have a VERY Happy Mother’s Day!


Live Rich,

David Bach

NBC’s Today Show – Money 911 and Retirement Planning Live Chat – May 9, 2012

If you missed NBC’s Today Show –  Money 911 this morning make sure to watch the segment now! Today we answered questions on whether or not to take your Social Security, whether someone is paying too high of a fee for their investments,  and where to find grants and scholarships if you are an active duty military spouse trying to go back to school.

After Money 911, I stuck around for a Live Web Chat on Today.com, where I answered your Retirement Questions – check out the archive HERE . Lots of great questions and answers you won’t want to miss this info!

Live Rich,

David Bach



When’s the RIGHT time to teach your kids about money?

I have a tried and true test to help you answer this very question. Put a one-dollar bill in your left hand and a $100 bill in your right hand. Then ask your child which one he or she wants. If your child picks the $100 bill then you know it’s time to start teaching your kid about money. (My son, Jack knew to pick the $100 bill at age three!)

The money conversation with your kids is so important, and luckily technology has made it easier for us parents to raise a money savvy kid. If you are an active member of my FinishRich Community then you know that I am involved with a company called Tykoon. Tykoon has created an unbelievable online platform that provides families an innovative way to engage children to become more fiscally responsible and the best part is that it is a platform that is totally customizable to your family’s rules and values and it’s FREE.

So how does Tykoon work? Here’s the breakdown—(It’s awesome!)

Teach your kids the meaning of EARNING: You can assign your kids various tasks including recurring chores such as cleaning their room, or one-time jobs and also daily responsibilities such as their homework. You choose how to assign rewards based on your own family practices and values. These rewards can be cash or non-cash such as stay up late time.

Tykoon’s parent dashboard allows you to view and approve all your kid’s tasks in a single place and on any device. You can also print a weekly calendar for your fridge or child’s bedroom, or access tasks on the go with their mobile app.

Teach your kids the value of SAVING: Learning to save from an early age can instill balanced, long-term financial practices that extend into adulthood. Tykoon allocates earnings to the savings category easily and helps establish a mind set for savings and setting and achieving goals.  In addition to putting away some of their earnings, your kids can also set up and save for a big or long-term goal. This can be an item that they want to purchase, a family vacation or trip or a savings goal for college or education.

Teach your kids the importance of GIVING: Through Tykoon, kids discover and learn about dozens of age appropriate charities and also share these interests with their family and friends. Tykoon reviews every charity before making it available to your children and they give you controls on what categories your kids can access. It’s a simple start that can lead to a lifetime of community involvement and giving back.

All transactions are secure through the use of Network for Good (one of Tykoon’s partner). They will collect your credit card information, make the donation to the non-profit in your name, and send you a tax-deductible receipt. It’s simple, secure and carries all the benefits of charitable giving for your family.

Teach your kids how SPEND and buy real goods with real money: When you use Tykoon your kids can purchase their favorite products which are delivered right to your door through part Amazon.com (making all transactions secure). The best part is that all products they can purchase are kid appropriate and Tykoon reviews every product to make sure it’s kid safe. Even better, you can control the product categories that your kids can see. Don’t want video games? No problem. The choice is yours.

If you already have an Amazon account, you can seamlessly checkout with through Tykoon with your Amazon ID or Amazon prime account. When purchasing through Tykoon, kids can’t move money and parents make the final decision on any item that has been marked for purchase or donation by their kids. Meaning you can rest assure that your children will not be spending YOUR hard earned money without you knowing.  

I am so excited about Tykoon and whether you use this system or not, I hope this post has inspired you to take action to spread financial literacy to the children in your life!

To learn more about Tykoon check out their website (www.tykoon.com) and sign up today.  


Live Rich,

David Bach



NBC’s Today Show – Money 911 – May 2, 2012

If you missed me this morning on NBC’s TODAY show – Money 911 make sure to watch the segment now, we had a great time as always, with lots of laughs and tons of information. This week we helped viewers with what do to help pay for college loans, gave advice on what to do with a home you’re growing out of, and how to distribute a mutual fund to help pay for your child’s college education.

Live Rich,

David Bach



How do you teach your kids about money?

Almost everyday someone asks me, “David, when are you going to write a book on kids and money?” or “How can I teach my kids about money and personal finance?”

I am getting asked these questions because people are finally realizing that financial illiteracy among kids is becoming an epidemic that we can no longer ignore. But with any problem, we need to take ACTION to find a solution.

Now is the time to break this cycle and make the decision to start talking to your children about money. This first conversation can potentially change the future of your family for generations to come.  You just need to get the ball rolling towards raising a money savvy kid. So how can you do this? Well, I don’t have an entire book for you—just yet, but I do have a solution to help you take action—today.

I have recently been working with a new company called Tykoon, that has created an unbelievable online platform that provides families an innovative way to engage children to become more fiscally responsible. The site enables kids to EARN, SAVE, GIVE and SPEND real money. The online platform is customizable to each individual family’s financial values and the virtual environment is safe, secure and private. Kids can earn money through jobs, chores, and gifts; save based on personal and family goals; and through partnerships with Amazon.com and charity affiliates, kids can shop online and donate to charities in a safe environment with controls set by parents.

Just yesterday I was invited to speak on an expert panel for Tykoon’s Launch and Blogger Event, to discuss the importance of teaching kids financial literacy and how Tykoon can act as a platform to help promote financial education in everyday life. Check out some of the pictures from the event, and make sure to sign up for Tykoon—it’s FREE, it’s fun and it WILL help you start discussing the value of money with the kids in your life.

For more information, please visit www.tykoon.com and learn how Tykoon is creating a money smart world one kid OR TYKOON at a time. Also, make sure to like them on Facebook – www.facebook.com/TykoonNation.

Tykoon Blogger Event

Doug Lebda, Co-Founder & Chairman, Myself, and Mark Bruinooge, Co-founder & CEO


Mark and I having some fun before the event.

Mark and I having some fun before the event.

One of Tykoon's awesome slogans

One of Tykoon's awesome slogans



Mark starting the presentation

Mark starting the presentation



Myself, Stacey Tisdale and Doug Lebda

Myself, Stacey Tisdale and Doug Lebda on the expert panel



Myself and Stacey on the panel

Myself and Stacey on the panel

Mark Showing the press Tykoon

Mark teaching the press about Tykoon



A look at the Tykoon's platform
Have you signed up yet? www.tykoon.com

Live Rich,

David Bach