Editor’s Note: Graham Lutz, our latest guest expert, will be writing from the perspective of the 20-something entrepreneur. In this first article Graham helps us understand the motivations behind Gen Y’ers who start online businesses.
By Graham Lutz
Generation Y (25 and under) has grown up watching their parents go off to work every day, 40 – 60 hours per week, with fierce loyalty only to be downsized, outsourced, or laid off in their 40’s and 50’s.
This reality has the 20-somethings with a different mindset from previous generations. We do not want to merely work our time away, but to live a life of significance and fulfillment. That means being and doing more than just having.
In order to be the things you want to be and do the things you want to do, you must have time AND money. Yeah, we want the big tv and the fast car, but more than that, we want quality of life, and those of us who have a nice car know that it does not necessarily translate into quality of life. Tim Ferriss says in his blog:
Only in the last three years have I really come to understand the concepts of time as currency and positional economics. Before I explain how you can use both to exit the rat race and dramatically upgrade your Lifestyle Quotient, let’s look at some numbers … According to polls on this blog:
46.88% of Americans say they would need to make more than $200K a year to be happy
63.41% of Americans, assuming prices remained the same, would rather earn $50K in a world of $25K earners than earn $100K in a world of $200K earners
74.64% of Americans would rather get Fridays off vs. a 20% raise
Would you be happier if you were richer? A recent study published in Science by a group including Princeton professors Alan Krueger and Daniel Kahneman, winner of the 2002 Nobel Prize for his work in behavioral economics, indicates that annual income is less important than anyone could have guessed. In fact, it gets less important as the per-capita average continues to grow.
He goes on in his book, The 4-Hour Workweek, to talk about quality of life in a way in which most have never thought, speaking to relative income as opposed to absolute income. He also coined the term, Lifestyle Quotient, a measure of the number of hours you work per day of vacation! I’m sure you’ve heard of the book, but if you haven’t read it yet, it’s a MUST!
This trend of being and doing is showing up more and more with the “Make Money Online” crowd. The site 45n5 has compiled a list of the Top 100 Make Money Online Blogs. Most of these blogs are people with full time jobs who are making money on the side, and some of the more notable sites include:
- John Chow dot Com, though not in the 25 and under category, is nonetheless a clear influence on the Gen Y internet entrepreneur. His site is where you can get the official Make Money Online With John Chow dot Com eBook free when you sign up for his newsletter! This comes from a man making $17,000+ per month from his blog. Needless to say, he knows what he’s talking about.
- CashBulge is “Your authority on everything financial, from the internet entrepreneur to the off-line money mogul.” These two New Yorkers have made over $1000 from their blog and other online ventures.
- Blogtrepreneur is run by Adnan, a young kid from the UK, who I believe is still in high school. He’s making money online and teaching others to do the same. Talk about a real entrepreneur, he’s just started a consulting business, blogLOUDER.
- MindPetals is not just a community for young entrepreneurs, but “a philosophy that instills ambition, determination, and encouragement in the minds of entrepreneurs making things happen, not just talking.” Check out David Askaripour and the 19 other contributors to the site!
- Small Fuel Marketing is “Simple Marketing Guaranteed to Grow Your Small Business.” They are not all about the lowest priced solution; they just want to provide the “absolute best way” to grow your business. Mason Hipp left college last year to go full steam ahead with his own business online!
This is just a small slice of the pie when it comes to making money online, because you have the eBayers and network marketers to add to this group. When it comes right down to it, we don’t see security in the 9-5 anymore, and we are not going to leave our financial future in the hands of someone else.
Question for Gen Y:
What are you doing to take hold of your financial future and safeguard yourself against the tumultuous corporate world?
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If you liked this article, you can check out more from Graham Lutz at OneThousandaMonth.com.