Wealth, how to create it?

When to invest in Real Estate

2008-07-20T09:17:00.000-07:00

By William king

When it comes to investing in property there is no right time or wrong time, anytime is good when investing in property. The market is so wide and high that it is always possible to find some value in there. It can be easier or harder to find value depending on the state of the market but it is always there. There is always some sort of property that has been in neglect, disrepair, or simply has motivated sellers that must make a sale. Properties such as these make for a great buy at any time no matter the state of the market. Another thing to remember is that the Real Estate market moves in cycles. It never stays low or high for too long. Eventually things reverse and go back to the way they were in the previous half of the cycle. With a little bit of knowledge you can come close to predicting the cycles and making a killing in the market. The market is also unpredictable with the leading experts unable to always buy low and sell high. Most of the time it is just educated guesswork that may or may not work so you there is no point in waiting for the ideal time to invest in the market.

The Real Estate investor that always makes money is the one who makes it a habit of buy and hold. While it is true that their money is tied up it is equally true that a sluggish market or slow economy does not do them any harm. They simply have to hold on to the property and eventually when the upside of the cycle comes around they can sell it off. In the meantime they can continue to make money by renting or leasing such property. “Buy and hold” investors are very patient and they usually have more experience watching the market than short term investors. This means they are that much better at predicting the cycles. They know when they can expect peaks and valleys and they can plan their actions accordingly. They are much better at reading the signs and making the right buy or sell decision. Being active in the market for a long time also means that they have a thorough knowledge of what is available where, and they can move in and get working.

The Real Estate market is currently going through a sluggish period all over the world, apart from a few spots like Dubai and some locations in China. This turned out to be bad news for those investors who thought that the market will continue to go up indefinitely. The good news here is that since the prices are falling down it is the right time to buy. You cannot wait too long or the cycle may reverse again by the time you are done deciding and you will pay more than you ought to.

If you are looking to buy ownership property instead of investment property then there is no point in looking at the market condition. Just go ahead and buy.

Money Matters: The Price of Your Vice.

2008-07-20T09:07:00.000-07:00

By Philips McTaggart.

Nicotine, caffeine, & alcohol. These are the three big ticket items that can break your budget, but many people are willing to pay for them no matter the cost. Maybe your personal indulgence isn’t as costly, but whatever your weakness is, sit down and do the math to determine how much you’ve been spending.

Cigarettes: burning money
Without a doubt, everyone knows the dangers of smoking and the long-term health hazards it can lead to, so who needs a better reason to quit? A lot of people! The desire to quit may not be enough. But what about your finances? You’ll pay more for health care and insurance as well as spend more money on dry cleaning and teeth cleaning, not to mention the lower resale value of your house and car. In some cases, you can even lose your job! If you’ve got debt that you’re committed to pay off, this is one area where you can save. If you pay an average of $4.50 per pack to support a pack a day habit, you burn through $31.50 per week, or $1,638 per year. If you can get through the detox, you could take the money and pay off debt, go on that long overdue family vacation, save, or invest it.

Caffeine: what’s the entire buzz?
A cup of coffee brewed in your own home is not the problem here. It’s the expensive specialty coffees that you pick up on your way to work every morning. According to E-Imports, a leading provider of espresso business solutions, specialty coffee sales are increasing by 20% per year and among coffee drinkers, the average consumption in the U.S. is 3.1 cups per day. It’s easy to figure out what you spend on coffee every month and multiply that by twelve. Again, imagine what you could have saved.

Alcohol: the savings may be sobering
Whether you drink socially at a bar with friends on the weekend, or enjoy a good bottle of wine with dinner at home, the cost can really add up if you indulge on a regular basis. Lets say your bar tab of two beers per day at $4 adds up to $56 per week, or $2,920 annually. If your budget is out of wack, it is certainly a luxury that can and should be eliminated.

After looking at the numbers, hopefully you may find renewed motivation to cut back, save, and improve your health in some cases.

No 1 Rule of Wealth Creation

2008-07-13T12:29:00.000-07:00

By: Barry Share

The number one rule of wealth creation must be "Pay Yourself First".

What do I mean by that, simply whatever you earn per month you take out a minimum of 10% and put it into your savings account or your investment account; you live and pay your bills with what you have left. You PAY YOURSELF FIRST

I know, I know, I can hear you say "How can I do that, it's taking me all my time to keep my head above water as it is".

Well what you must do is sit down and have an honest look at what you are spending your money on.

Put a basic profit and loss sheet together and at this stage it does not need to be complicated. Very few people do this.

The budget plan poor people work to, works like this.

Go out and earn as much money as you can, pay the bills, spend the rest, because that is how much it costs to live. This plan and way of working will only keep you working hand to mouth and keep you on the treadmill until you die.

So pick up the pen and paper and let's have a look.

On the left-hand side of the paper write down your monthly income. That is everything that is coming into the household, your salary, your spouse's salary and any other form of income.

I don't want to hear "I don't know it varies every month" Work a monthly average out or work to your basic rate.

On the right-hand side of the paper write down everything that you are paying out per month, make a full list.

I don't want to hear "I don't know some things we pay for quarterly" work out how much you are paying a year and divide it by twelve. O.K. To be solvent your left hand total should be higher than your right hand total.

If you're right hand total is higher than your left hand total subtract the left hand from the right hand total and this will show you how much you are running in to debt each month.

For some this little exercise is an eye opener of how our spending can get out of control and slip through the net if not kept a check on. But let's go back to this paying your self first.

Wealth can only be created by not consuming, so we need to stop spending and create the habit of saving. Therefore you need to look at your right hand column to see where you can stop consuming.

To be successful at this you must have an honest desire to create your own wealth and the determination and discipline to change your lifestyle so it's imperative you know what you want and why you are doing this.

Be honest with yourself, where can you cut back?

On a £20,000 per annum net income you will need to be paying yourself £2,000 per year. That is £166.67 per month.

Where is that going to come from? So let's look at some of the most common areas of our uncontrolled consumerism.

If you spend £5 a day on cigarettes (only poor people smoke) that's £35 a week, or £140 a month.

If you drink on average of two pints of beer a day at an average cost of £2.60 a pint this is £36.40 a week or £145.60 a month.

Two bottles of wine a week could cost on average £12 a week or £48 a month.

Have an honest look at fuel consumption for your vehicle, could you not use it so much, could you walk more, this would keep you healthier, could you make a deal with someone to share the costs of running too and from work.

Have a look at the food bill, can you cut costs or get better value for your money by not buying conveniences, sweets and junk food.

Take a look at your utilities; switch off the lights and electronic equipment when on standby, cut back on water and gas usage.

Nowadays you won't be looked at as being a miser or skinflint but a global friendly eco warrior.

What I am saying here and I think you will agree, with a little bit of thought and effort you can change your habits and lifestyle in small ways to find that 10% you need to start the ball rolling.

Take an honest look at the No 1 Rule of Wealth Creation "Pay Yourself First" and you will soon see how to turn these small gains into massive wealth creation.

They laughed at me when I began planning for retirement

2008-07-10T12:57:00.000-07:00

By: Andy Rogers

Only when my colleagues realized how important was retirement planning when they themselves got retired, did they understand my wisdom. People would be idiots to not plan it earlier. It may seem tough at first to believe that one has to retire someday from the workplace and the sooner it is done the better it is for the life after retirement. Retirement planning is essential in order to be able to enjoy retirement. Most people have dreams for their retirement years and only planning will make it happen. The best time to begin retirement planning is as soon as a person has graduated from college and begins to work. Those people who begin early will find that their retirement years will be filled with the ability to do whatever they want or dream up.

Some people who don't plan properly find retirement to be a night mare. But there are actually some good ideas to help plan for retirement. A great idea is to reserve a convenient optimum percentage of pay and place it in an investment account. Doing it this way means that the money isn't missed and doesn't become part of the monthly budget. Don't expect that if the money isn't taken out automatically that a person will have enough will power to do it on their own. Retirement planning isn't easy and it takes determination and discipline to keep the plan together for years.

Taking advice form a retirement advisor is a good idea. He can make suggestions and advise of several significant things like opportunities to increase investments. As a person gets increases in salary or pay, keep the percentage of ten percent going to retirement planning. In doing this the person might also have the opportunity to possibly have early retirement. By retiring early a person will be able to spend more time doing all the things they have dreamed of. It doesn't mean that life stops. Because of all these reasons, retirement planning is essential for later on in life.In the same way that as a child one learns how the ants and birds work hard for the winter to come, it is important to have instilled inside a person a good work ethic.

Prior planning is going to have long term benefits. It feels so good after retirement when you see the fruits of your planning endeavors ripe. A person will be glad that they spent the time doing retirement planning. They will be proud of the fact that they had self discipline to keep it up over the years. For those people not at retirement age it's never too late to start preparing and if one sticks with the plan, retirement can still be filled with the opportunities to fulfill dreams someday.Retirement planning should never feel like a chore because it is a means to have a great time in the golden years of life.

Sit. Stay. Rollover.

2008-07-04T00:29:00.000-07:00

By: J. Graydon Coghlan

Sit. Stay. Rollover. With just some basic preparation you and your financial planner could have your retirement fund trained to overcome obstacles with the grace of a champion pedigree.

Is it possible to train your retirement plan? We think so.

Maybe you’re about to change jobs, change companies, or change your career completely. Whatever change is afoot, we don’t have to remind you how important it is to keep an eye on your retirement funds during tumultuous times. Assets for your retirement should be able to respond to any possible changes with ease. All it takes is a little training.

If you’re changing jobs and have an existing retirement plan, such as a 401(k), you should already have a Summary Plan Description in your possession. This will describe your retirement plan and the options available to you, regarding your old (or, soon to be old) companies plan. You want to share this document with a financial professional so the two of you can decide what option fits you best. Many companies have restrictions on what can and can’t be done with your retirement fund. As with most financial planning, a little education goes a long way and knowing the details of your plan will help make the transition a bit smoother.

Generally, you’ll have three major options for your retirement fund when changing jobs. You can withdraw your investment savings and keep the money as a lump sum (sit), you can leave the money where it is (stay), or you can "roll over" your retirement savings into another retirement plan or an IRA. Each option has its pros and cons. Depending on your situation in life and in your career, you’ll want to consult a financial consultant and choose the option that makes you feel most comfortable.

If you choose to withdraw your money in a lump sum from a previous employer’s retirement fund, you must pay taxes on the money you withdraw. On top of those taxes, your employer is required to take a 20% withholding from your lump sum, and if you are under age 59 ½, you may also be forced to pay a 10% penalty tax. You may roll over the lump sum and avoid the penalty provided that you deposit the funds in an IRA or another employer plan within 60 days. You will have to make up the additional 20% withheld by your employer. The 20% withholding will be deducted from your reported income when your taxes are due.

Leaving the money in your current plan is one option when changing jobs or companies. However, you must also be aware of any possible regulations and restrictions your old company has placed on your money in that retirement plan.

If you choose to roll it over, you may have the option of rolling your assets into either an IRA or your new employers plan. However, to avoid paying taxes and penalties, you should have these assets transferred directly to another IRA custodian. This rollover will still have to be reported to the I.R.S. One downside is that your retirement rollover cannot be rolled into a Roth IRA. However, you may qualify for a Rollover IRA which can than be rolled into a Roth IRA, but you must meet certain qualifications. Once a Rollover has been put into a Roth, you cannot roll the Roth into another employee-sponsored retirement plan.

There are, however, exceptions to the rules of roll-overs for first-time homebuyers. If you’re emptying out your former retirement fund and wish to use up to $10,000 towards the purchase of a first home, you’re allowed to do so. You are taxed on the withdrawal, but you do not have to pay the extra 10% early-withdrawal fee. You also have up to 120 days to use the $10,000 on a first-time home purchase rather than the basic 60 days.

These are just the basic options you may have when changing careers and retirement plans. Deciding what to do with your retirement savings when changing companies or careers is one of the most crucial decisions you make. By working with a financial professional, they’ll make sure you’re aware of the many options available to you. And by being prepared in advance, you’ll know when it comes time to confront change, you’ll be ready.

6 Steps To Making Your Money Work For YOU!

2008-07-04T00:19:00.000-07:00

By: Paul J Meyer

Have you ever felt as if your money is working against you, rather than for you? Do you dream of retiring wealthy, but don't have a clue how to make that a reality? You can turn your dream of financial security into a reality by choosing to be smart with your money and making your money work for you!

#1 - Set Financial Goals
Someone once said that the difference between those who are rich and those who are not rich is only an ability to take a dream and make it real. Mastering your money enables you to turn your dreams into a reality. Remember, your money has a purpose ... to work for you! Decide what your financial goals are in terms of earning, saving and investment, and start thinking about what steps you need to take to work toward those goals.

#2 - Live Within Your Means
These four words are especially challenging for many, especially when we're surrounded by an instant gratification society. Keep this in mind: instant gratification always has a price. Most likely, that price will cost you the ability to reach the financial goals you've set for yourself; or at the very least it will slow you down a bit. Take this time proven advice to heart: "If you don't have it, don't spend it." Use your credit cards only if you can pay them off each month.

#3 - Get on a Budget and Stay There
In many people's eyes, a budget is on par with torture, imprisonment, and even death. Nothing could be further from the truth, because a budget is your key to a secure financial future - your freedom! How do you determine your budget? It's as easy as 1-2-3. Add together your net income, then add together your expenses being sure to separate into specific categories (e.g., housing, groceries, insurance, car, debt, etc.).

Next, subtract your expenses from your net income. If you're spending more money than you earn, it's time to get serious and cut your expenses. Determine how much you need to decrease your costs and/or increase your income to meet the financial goals you've set for yourself.

#4 - Pay Yourself First
Being smart with your money is saving a part of everything that you earn, no matter how much or how little you earn. It doesn't seem right to work at least eight hours a day only to give it all away to mortgage, insurance, utilities payments, and so forth. Consider savings to be a payment to yourself - a high priority!

You may find it easier and less tempting to build your savings through automatic payroll deductions made directly to your savings account. Those individual payments to yourself will add up and help you to reach your financial goals! So, remember to pay yourself first. If you don't, debt will be a way of life.

#5 - Put Your Money to Work
The money that you put aside for yourself needs to be put to work. Put it where you can't get your hands on it easily, because if you can then you probably will. Do the necessary research before investing and keep this goal in mind: to make money - 24 hours a day, seven days a week - from the money you already have. Even while you sleep, your money will gather momentum and grow over time.

#6 - Get Out of Credit Card Debt
Last but not least, get out of debt so that your money can work harder for you sooner. The average individual in the United States has at least $5,000 to $6,000 in credit card debt, and that amount is increasing.

To get out of debt, you must take action! Getting yourself on a budget and living within your means are the best places to start. And once you are out of debt, stay out of debt so that your money can work for you - not against you.

Jamie McIntyre - Mindset of a Millionaire

2008-07-02T13:01:00.001-07:00

By: Peter Halpin

Having achieved success as an entrepreneur, Jamie McIntyre is now a sought after educator. His seminar content has been reviewed as some of the most relevant material that this century needs. His insistence on dynamic learning transcends what typical college students learn in classrooms. His highly effective program has been recognized as applicable to people of all ages and from any financial circumstances.

Jamie's own investigations led him to believe that there must be a secret formula, some little known strategies, that make all the difference between the average person working a 40 hour week for their wage that is barely enough to make ends meet, and those elite few who have more money than they could ever need. He was determined to find out what that difference was, and to achieve absolute financial freedom.

Figuring out what the average 95% of the population are doing and doing the opposite is what will set a rich man and a poor man apart. The ordinary and the common create the financial failure for most people. Thus, Jamie suggests that there must be another way.

Within less than 5 years Jamie had succeeded. He became a self made millionaire while still in his twenties! He was then nominated for Young Australian of the Year in 1999 for his financial achievements. He decided this information should be widely available to everyone and co-founded 21st Century Academy. He has now educated more than 165,000 average Australians and New Zealanders, and now people world wide from the United States, UK, Europe, India and Asia. With today's technology and the way the internet has revolutionised business, anyone can be next no matter where in the world you live.

Jamie explores the idea of people's professed attitudes to money. Finding how money works for you and your life is just as important as other things that contribute to your well-being and happiness. Those who profess that they are not interested in money are usually the ones who end up working hard for it. If you aspire to a better quality of life, your focus should shift from just working for money to how money should work for you. The right attitude towards money reflects not only your financial success, but also how you want to live your life.

Jamie McIntyre believes that much of the valuable information and strategies he learnt to turn his life around, especially financially, isn't taught in today's education system, because many industries and systems profit immensely from people being ignorant of these things. So he has created a free 3 hour DVD which he will send to anyone who is interested, called "What I Wish I Had Learned in School, But Didn't"

You cannot be truly wealthy if you don't know how to be satisfied with what you already have. It starts with how you feel inside. The more grateful you are for your small successes, the more you will feel wealthy. Realizing that being "wealthy" does not necessarily mean already having a lot of money or financial assets is actually the first step in achieving financial freedom.

Create Massive Wealth - Stay on the Heaps of Money

2008-07-02T12:51:00.000-07:00

By: Rich Ramalho

Making money is a type of obsession that most of us in the recent times have imbibed in ourselves in order to be richer and live our life in a luxurious way. Creating massive wealth can be challenging and at the same time satisfying and enjoyable. Different techniques and tricks have been employed to create massive wealth by different individuals at different point in time.

Some may be legitimate while others may be illegal. The power of creating massive wealth is within you that no one can teach or give lessons. Only guidance can be given to you to create massive wealth, the rest has to be done by your own using your determination, sincerity and credibility.

Many individuals look to devise new ways and techniques to create massive wealth, however, in doing so, they forget the basic truth which is the power to create massive wealth begins with your own attitude and approach towards life. The most important factor that sometimes we may ignore to create massive wealth is the motivation which in itself can be an inspiring factor to achieve your dreams. Before we try to create wealth we must be able to work at our highest efficiencies most of the times. While the motivation factor for each individual is different and diverse, the end result is unanimous and that is financial stability and security for those who take action.

Motivation provides you with the necessary energy and vigor that facilitates you to implement and execute your plan and strategies to create massive wealth. You need to make a list of goals you want to accomplish in your life and at the same time you need to be focused on achieving those goals and objectives that you have already set. Self-improvement always plays a pivotal role to create massive wealth. In order to create massive wealth most individuals will have to change their attitude and thinking towards life. Time management for example, is a key element to enhance your overall prospects in life of getting rich and for this time management skills should be acquired. Self-improvement and self assessment will enable you to identify the skills and talents you need to achieve success at your objectives and goals.

So we see that creating massive wealth may seem a very enjoyable and interesting phenomenon, however, to achieve it is that much difficult and requires a lot of focus, motivation and sincerity.

Make Fast Money - 3 Wrong Ways You Should Know

2008-06-24T08:33:00.000-07:00

By: Dang Vu

Are you finding some ways to make fast money? If so, you need to read this article because it will show you 3 very bad ways of making money online so that you can stay away from them and save your time. Many people think that these ways are the good ones when it comes to making fast money online. In fact, they are not.

1. Get paid to read:

"Get paid to read" programs works like this. After you have signed-up "get paid to read" program, you get emails from them. There is a link in those emails. And your job is to click on that link to visit advertiser's website. You have to wait for 60 seconds or so before your account gets deposited. This sounds pretty good, right?

The fact of the matter is that you will hardly get paid from these programs. If you are lucky, you can find out and join legitimate GPTR programs. However, these legitimate programs often pay from 1 cent to 5 cents per email that you have read. That's why you just get several bucks at the end of a hard working month. If you ask me, I will say that it's not worth your time.

2. Get paid to surf:

This works like 'get paid to read' programs. You surf websites of advertisers and get paid for that. However, you will also never get paid. So, this type of program is not ideal way for you to make fast money online.

3. Get paid to do online surveys:

There are companies that want to collect your opinions in order to help them in developing as well as in improving their products or services. That's the reason some pay you small fee and the others pay you points and sweepstakes entries to help them complete their surveys.

You should not expect that you would get $20 or $15 or even $10 for completing surveys as many people advertised. It's not a fact. The fact is you get only $1 to $5 when completing a survey and another fact is you will only get several surveys a month, every month. In general, you should not expect that you can make several bucks a month from doing surveys online.

Many people want to find some ways to make fast money via internet. This is very natural thing, as they need money to supplement their family. However, before joining any online money making programs, you should consider some key things like: is it worth your time? Is compensation plan reasonable? Are there other ways for you to make more money?

You have so many things to do and worry about in your life. Thus, make the choice smartly so that you can make more money but work less to enjoy the life.

Use Retirement Planning Tools To Achieve Your Goals

2008-06-11T03:58:00.000-07:00

By: Michael Anderson

Pre planning for retirement is crucial for any individual. A job, money and health will be there today, but what about the future? Is there a guarantee for all these things in later part of life? No is the answer, in order to live a happy and contended life after retirement, a good retirement plan is important for everyone.

RETIREMENT PLANNING
Socking away money for retirement is a great idea. During the phase of retirement planning people may get doubts like, how much should he save? How long does he need to work, in order to keep himself comfortable in his golden years? All these problems are solved using retirement planning tools. Most of the people don’t know where to begin and where to end so they keep this plan aside, but once they realize that retirement is on the horizon, taking a proper step will be difficult for them. There are some free retirement planning tools which aid them to have a bright and happy retirement. Among those few retirements planning tools are:

1. Pen and paper. This is the best approach for any individual to plan his or her retirement. Writing down ones expenses, income, and keeping track of where money goes can help him to plan efficiently for facing retirement. If he is able to create a good list of all these expenses and find out ways to reduce them by designing a good budget, than his retirement plan is on the right track. He can cut out his expenses with this policy and finally have savings for retirement.

2. Work place benefits. Some times retirement will be possible for individual recruited in good firms, because they provide good pensions, savings plans, allowances etc. It’s recommended for any individual to use this retirement planning tool, and select a good job which provide benefits even after his retirement.

3.The internet provides many ideas from various sources and is probably the best retirement tool available. It helps in finding out efficient savings organizations and gives good advice when searched properly. There are a few sites which provide good retirement plans. One of them is AARP. This site helps people by providing retirement management tools and also, other kinds of tools to find out how much ones retirement plans will cost.

CNN Money is another organization which provides good retirement management tools and assists people in finding out problems with investments, income usage, and savings. They are able to help people reach their retirement goals without much effort. All these tools can help any individual to plan out and sort out all the issues of retirement without much effort. It is recommended for each and every individual to allot some time for working on retirement plans. If these free retirement management tools are used, a person can build up their retirement portfolio without any problems.

Leveraging Liabilities & Staying Debt Free

2008-06-11T03:43:00.000-07:00

By: Garrett B. Gunderson

Increase Your Cash Flow By Understanding the Proper Definition of Debt

You're taught in America that your home is your biggest asset. If that's true, why do so many Americans fail to utilize their home as an income-producing asset?

The answer is because so many of us are limited by misunderstandings about debt. When we understand the correct definition of debt, we are able to unleash unutilized potential to increase our production.

Can you give a clear definition of debt? We're taught by financial pundits and religious leaders to avoid debt, but do we even know what debt is? How can we avoid something when we don't know what we're trying to avoid?

The most common definition of debt is any borrowed money, which is false. My friend Les McGuire, who spoke Japanese, used to teach this concept by telling people that they should avoid "tabemono" like the plague. The joke is that tabemono means food in Japanese, and the ironic point is that, first of all, by not knowing what it is we can never avoid it in the first place, and secondly, if we don't know the correct definition of debt, we may be avoiding the very thing that is the most essential to our financial health.

So many people are avoiding "debt," but not only do they not know what it is, they are also avoiding some of the most critical knowledge about finances that keeps them away from prosperity. Ironically, it's also the knowledge that would help them get out of debt.

The True Definition of Debt

Contrary to the common definition, debt is the negative difference between liabilities and assets. It's having more liabilities than you have assets on your balance sheet, and the difference between them.

The best way to understand this is through balance sheets. The purpose of a balance sheet is to itemize one's assets and liabilities and determine if they either have an overall equity position, or a debt position. For example, suppose a person owns a home with a market value of $300,000 (asset) and owes $100,000 to the bank (liability). Ignoring every other asset and liability, how much debt does he have? The common definition would say that he has $100,000 of debt. The true definition (although strangely ignored and/or unknown by most people) helps us to see that this person has zero debt, and actually has $200,000 of equity, which is the opposite of debt.

On the other hand, what if a person owns a home with a market value of $300,000 and carries a mortgage of $305,000? Again, the false definition of debt says that this person has $305,000 of debt, whereas the technically correct definition plainly shows that this person only has $5,000 of debt.

Again, the way to determine your amount of debt is to total your assets, total your liabilities, and then subtract your liabilities from your assets. Equity means that you have more assets than liabilities, and debt means that you have more liabilities than assets.

Why It Matters To Your Prosperity

Once a person understands the proper definition of debt, they can understand how they can leverage resources and increase their cash flow. For example, suppose the homeowner with $200,000 of equity were to extract that previously-unused resource and then use it to buy a real estate property whose cash flow is greater than the liability incurred from the refinance? They did not increase their debt; they merely leveraged their equity to increase their cash flow.

Why is this knowledge so critical for people to understand? Because countless people are unaware of the potential for wealth creation in their own homes. There is much misinformation surrounding the concept of debt, and it severely limits productivity. Myths surrounding debt result in literally billions of unseen, undervalued, and untapped dollars that, if understood and utilized properly, could drastically increase the wealth of most Americans. There are ways to leverage all of your assets, including and especially your home equity, without ever going into debt.

People who fear debt--and misunderstand what it actually is--often have thousands and even hundreds of thousands of dollars available to them that go unused. When they experience the paradigm shift of realizing what debt really is, they are able to open up a whole new world and unleash unprecedented amounts of productivity through principle-based and debt-free borrowing and lending.

How to Attract More Money

2008-06-11T03:37:00.001-07:00

By: Arman Vakili

The game of money is very similar to anything else that we experience in life. If you want more of it, you have to be able to show that you can handle whatever it is that you've already got. Unless you can prove this, you will not be able to get any more.

For example, imagine that you were with a five year old and you were taking him to get some ice cream. You get him one scoop on a cone. As you are walking out, his unsteady hands wobble and he drops the ice cream.

Being the kind person that you are, you go back into the store to get him another one but he sees the picture of the triple scoop and asks for that one. Would you get it for him?

The answer is no. If he couldn't handle one scoop, why would you get him more scoops so that he fails again and gets even more discouraged? This is how it works with your money. If you can't show the universe that you can handle what you've already got, you won't get any more.

In order to handle whatever it is that you're currently making, you need to have a very simple and manageable budgeting strategy. This will enable to categorize all of your spending habits and see in which areas you can "cut the fat" and make the most of your current income.

The main purpose of your budgeting strategy should be to pay yourself first. Before you make any bill payments, before you start spending your money on leisure items, you have to put a certain amount of money away for your future. The default figure is 10% of any income that you make.

Do this with all of your income; even your retirement income. When you get your retirement disbursements, save 10% of that money too. If you do this, you will find that you will never run out of money.

For many people, 10% of their income isn't a great deal of money. However, if this money is consistently put aside and it's working for you on compound interest, it will shortly begin to accumulate to a large sum of money.

During the first few months, you will feel a slight pinch in your budget. But just like you learn to adjust your expenses to your income when it increases, you will be able to do the same to your income when it decreases. After a short while, you won't even notice that the money is being taken out of your checking account.

Having and consistently working your budgeting strategy will place into effect one of the most powerful natural laws of our universe: The Law of Attraction. It is this universal law that will help you to attract more money into your life.

Once you habitually start to save your money, not only will you have more money because of the compounding interest, but the universe will expose you to many new ways of creating more income.

Real Estate Investing-8 Big Mistakes Real Estate Investors Should Avoid

2008-06-09T01:11:00.000-07:00

By: Dennis Henson

There are more new investors getting into the real estate market today than ever before. Most are unaware of the pitfalls that await them at ever turn. But by learning to avoid the killer mistakes your real estate investing business can become a very profitable endeavor. Here are eight of the really big mistakes that your should be avoided.

#1 Failing to get the right help (and education)
The first three members of your real estate team are the most critical. Lots of investors lose many thousands of dollars because they don't want to spend a few dollars on a good local mentor. A good mentor who really knows the ropes is not an expense but an asset. A good mentor will save many times their cost by helping avoid expensive errors. Second is a good real estate attorney to keep you in line with the law. And you will need a good CPA to help structure your business. Leave out or choose the wrong one for any of these and it could cost you dearly.

#2 Impatience
Many intelligent offers are required in order to purchase one good deal. It takes time and patience to land one of those deals. Be patient because if you ever get in hurry you are probably going to make the next big mistake…

#3 Paying too much
Anyone can purchase real estate anytime. The MLS if full of properties for sale. But your goal should be to buy property at a substantial discount. A big enough discount to insure that you make a good return on your time, effort and money.

#4 Believing the TV commercials (and quitting your job)
Does listening to those guys on T.V talk about how easy it is to make a fortune in real estate with no money, no credit and little or no work really get your blood flowing. If it were really that easy--everyone would be quitting their jobs to start investing in real estate. Investing is a great business but to become successful you need money, credit, and or a great deal of hard work mixed with a good education. Case flow might not be very good at first so keep your day job!

#5 Failing to do the proper research
There is a certain amount of research that every investor must do before placing an offer on a piece of real estate. For example-the true value of the property must be determined in advance and you must know what it will cost to hold and get the property ready to market. It is critical that you know all the important answers in before you ever make an offer on any property.

#6 Not continually searching for money
The life blood in real estate investing is money. Investors must have access to a lot of money or all their efforts to find good deals will accomplish very little. It takes three things to start a fire. Oxygen, fuel and ignition and it also take three things to build a glowing real estate business. Money, good deals, and energy. Remove any of these elements and your fire will go out.

#7 Not bidding consistently
The fuel of real estate investing is good deals and to get a really good deal you have to make many intelligent offers. In order to grow the business--consistent bidding is absolutely necessary.

#8 Doing your own rehab
Rehabbing a property yourself-- is not the best use of your time. Successful investors spend their time finding good deals and not driving nails. Sure--it's fun to fix up something that was in a poor condition. The feeling of accomplishment is great but that feeling can be very expensive. That time could be spent finding other great deals and finding money to make the deals work. If you do the rehab yourself you will probably spend more money getting things just right. It is much cheaper to pay a professional to do the job and keep busy doing your job which is finding good deals.

The Journey to Wealth Is A Never Ending Story

2008-06-09T01:09:00.001-07:00

By: Donald Yates

How much are you worth?
"Don’t confuse Wealth with the love of money. Wealth is freedom while the love of money is captive. Wealth frees the soul and love of money convicts the soul.’

The pursuit of money
Those who pursue money for money’s sake become captive to its promises. They become enslaved to the lure of prestige, power and ownership. It is true that in this affluent society of ours, there are more possibilities today than ever before. The enticement of wealth can dominate a rational mind and one should examine the reasoning for chasing wealth.

A false motivation
It is embedded in the human spirit from birth for achievement. It is only through the act of accomplishing that the human physi is able to realize and experience happiness and self-esteem. In many individuals, however, this instinct has been stifled and pushed aside. In Genesis God made man in His own image and said, "Let us make man in our image and likeness" He then said of his creation "It is good" in this context, man was make a living spirit and was the best of God’s creation.

Humans are born to dominate
Humans are given dominance over every living thing as well as the creation. God supplied abundance and man is a partaker in it. Man was created to be as God to achieve and excel. The human mind can achieve the impossible or fall in derogation to the gutter. Is it all a matter of choice? Do we succumb to our own destinies? Is our fate in our hands alone?

Emotion driven
It is unfortunate that some emotions can motivate a person to act in a harsh or incorrect manner such as: love, hate, fear. These basic emotions can be used as a motivation for success or can be used to suppress the instinct to thrive. These natural instincts are prevalent in everyone and remain just below the surface, patiently waiting for the freedom which allows them to come to the forefront of a person's life.

The key to control
It is when a person finds the key to lift and control negative roadblocks that he/she can pursue his/her sacred dreams. This is when they become free to fly like an eagle, lifting above the bonds of earth and soar as a super achiever. A natural law is: each time one thing in the physi is injured or obscured it will be replaced with something else. It is this inborn control mechanism that drives the force that motivates people to unsurpassed heights.

Prospective control
People face the world from a unique prospective, they see it from the inside looking out. What is fed in will ultimately influence the prospective of the individual. In our hard hitting, fast paced world of today, where negative rules, it's no wonder so many people are influenced into thinking they have no chance of personal success. Yet, even in all this diversity, best selling books, magazines, and the TV media are filled with stories of rags-to-riches success. Opportunities abound more today than ever.

Success shares certain traits
Most men and women who have become successful share a common denominator. They have discovered the secrets of their inner-self to motivate them into applying certain concepts for personal development that lead toward happiness and wealth. They connect with forces only they are able to feel and experience. As they become more and more financially independent they also discover a sort of freedom they have not experienced before. Freedom becomes a reality and the reality releases them to new heights in relationships of unimagined proportions.

You’re no different
You are the same as these who have become successful in their own rights. Each dreamed, wished, hoped and thought about how and what they could do to fulfill their desires. Soon we will supply you with a proven format so you too will have the blueprint for success. You will have a new vision and the fortitude to step out ahead of the crowd, and come face to face with your destiny. You will board your own ship of life where you are the captain. There is still the possibility of a sandbar at every turn, but you don’t care because now you have a detailed navigational chart that will lead you safely through.

The success concept
The concept of success has as many definitions as individuals who share it. One person may aspire to be meaningful and make a difference in others life experience while another may desire monetary wealth and yet another simply aspires to be the best cellist player he/she can be.

Diversities of People
The interest of people range from professional racecar drivers, fishermen, tractor operators, salespersons, pilots, artist, musicians to the many thousands of other things that occupy people. It is in the nature of people to want to be the best they can be in what ever they doing. While having a lot of money may not be the primary goal of an artist it still provides freedom to pursue his/her vision. You could say, "The realization of achieving personal worthwhile goals" defines success for most people. That's pretty simple, yet most people don't get anywhere near achieving their personal goals. Why?

Some mismanage
The mismanagement of resources and money have spawned an atmosphere of expected disappointments and failures but it doesn't have to be. People are only subject to their environment as much or little as they accepted it as the truth. The truth is, it's easy to fall pray to someone else’s negative thinking. In fact some people thrive on negativity

Some fail
Only a masochist would accept pain and failure as a way of life. No one wakes up each morning deliberately wanting to fail. A sad fact is, most people will be dependent on some outside source such as social security relatives or friends, charity, or part-time during their twilight years. What should be a brighter tomorrow turns into anxiety, desperation and need. As the Human life expectancy grows longer, additional people will spend more years in quite desperation. Their plight is a sign of indifference and is a growing concern for a nation known for its' abundance.

How to Start and Maintain a Financial Planning Business

2008-06-09T01:06:00.000-07:00

Among various business opportunities that you can think of, financial planning business would be a right choice to get success and profits. Let us discuss in detail how to start a financial planning business and succeed in it.

First of all you need to make sure that you are really determined to take this challenging and interesting job as your work. Then you need to make financial adviser business plan. Being a financial planner you have to determine how a business or other organization (your client's businesses) would afford to gain the strategic objectives and goals. Those who are into this business of financial planning plan the tasks immediately after their vision.

What tasks are carried out by financial planning advisers?

Financial advisers have to access the environment of the business to whom they give advice on financial planning. They identify resources' needs and quality amount of resources, calculate total costs, summarize total costs for a budget and identify issues and risks associated with business.

To perform the tasks of a financial planner is a critical business. The business financial plan, the annual financial plan, check of inventory, supply chain solutions costs, taxes and much more are taken into account while providing a perfect solution to financial troubles to an association. The objectives set must be achievable and practical for the organization or your client.

Starting a financial adviser business is not an easy task. It needs futuristic vision, ample knowledge on various financial aspects, patience and dignity to overcome all hurdles. If you start a business on financial planning and want to attract more and more clients towards you, here are few tips on how you can start your business and maintain it.

Skills and Education Needs- One of the top most needs to become a financial adviser and start the business is the requirement of skills of marketing and sales. Without it you cannot attract clients to your business. You must imbibe in you the quality of a listener and good communicator. Financial advisers must be very much organized, have ample know how on a variety of investments, management techniques and all.

Besides that a degree in financial subject such as economics or accountancy is required as an additional advantage. People like to know your educational qualification before consulting your firm. Your education and additional degrees matter a lot. A good Certification can enhance your business of financial planning.

You must have aptitude for working with computer, mathematical calculations, besides possessing analytical as well as problem solving skills. Don't forget to apply for a license if you engage in selling of real estate, bonds, stocks, mutual funds, insurance policies as additional services.

Also, while you start your financial planning business, you need to build a good database of referral sources and prospects. Make proper use of your database and take care of your ads and promotions to reach to your clients.

Want to be Rich? Then Educate Yourself. Why? Here’s why.

2008-05-12T19:44:00.000-07:00

By: Damian Miles

If you want to be a Doctor, learn medicine. If you want to be a footballer, kick a football around. If you want to be a bus driver, learn how to drive a bus!

If you want to be rich, what do you do?

A lot of people when asked the above, will work harder at their job, or take a second job, or start a business.

All the above a good, but are not right. They are definitely putting the cart before the horse.

If you want to be rich, what do you do?

The FIRST step to becoming rich is to DECIDE TO GET A FINANCIAL EDUCATION.

This leads to two supplementary questions. (1) What is a financial education? (2) Isn’t that hard?

Answer One: I do not mean that you go out and get yourself a MBA, or any official financial qualification. What I mean is that you DECIDE HERE AND NOW that you will start to accumulate financial knowledge from any source and by any means, and that you will do this for the rest of your life.

Financial lessons are all around, all you have to do is decide to keep an eye out for them and learn them. If you have watched TV today, or read the paper, or even just, taken a walk, you will have seen many financial lessons.

Examples from my day so far.

TV: Holiday scams using bogus websites – research and write small article on this, email to friends and print out and hand to acquaintances, include a link back to my website. They get a helpful warning; I get increased visitors to my website.

Newspaper: Property prices are up in my area. How can I cash in on this? Find a rental property, and buy (clubbing together with acquaintances if necessary).

Walk: Local clothing store is having 50% sale. I go in and ask what profit margin clothing stores usually have. After a little effort they tell me. An interesting lesson.

Answer Two: No it is not hard at all. Why? Because you will take it one small step at a time over the rest of your life. One small step at a time, taken frequently leads up to an enormous distance. In the area of financial education this means an enormous education.

The more you have taught yourself about how money works the more money making opportunities you will see. Eventually, once you have taught yourself enough, you will see that your life is absolutely packed full of money making opportunities. And your financial education will also equip you to cash in on these opportunities. All you have to do is reach out and take that money!

When you know enough, making money becomes easy and second nature. Why remain poor when you can so easily become rich.

The pay off.

The biggest pay off to giving yourself a financial education, is that you will become both financially free, and time free.

Once you have accumulated enough money, you will know how to successfully invest that money. As soon as the income from your successful investments covers your living expenses, you will be financially free.

Financial freedom means that you no longer have to work; your successful investments are working for you. You will then possess the time and money to enjoy all the things that have ever wanted to do. No longer will you have to report to your office 40 hours a week (your money will be doing that on your behalf), but instead can report to the beach, the ski slopes, that art class you always wanted to take, or your back garden with a gin and tonic, or a shovel and pruning sheers.

With your informal financial education you will be able to nurture you wealth to keep you retired for the rest of your life.

So do you want to get yourself a financial education? I bet you do! Well DECIDE TO START RIGHT HERE AND RIGHT NOW.

Why Does Building Wealth Require Change?

2008-05-12T19:42:00.000-07:00

By: Mike Mitchell

When we look for ways to successfully build wealth it is a sure indication we have not obtained the level of wealth we desire. Why is it we are on a wealth building search when others are living their dream? Chances are we have not allowed ourselves to reach the dream. We get in our own way and don’t make the proper changes to let it happen. The first step is to define what wealth means to us.

Building wealth means different things to different people. Someone with high aspirations may put a monetary figure on it. Wealth to them is having the newest car, the nicest house, the best food, the fanciest clothes, and the exotic vacations. Someone of modest means may put it in a different light. They desire enough money to support their family adequately but find great wealth in attending their children’s activities, playing golf or tennis, having time to read a book or just relax in their own thoughts. And of course some people want it all. Regardless of the level of wealth someone desires there will be changes necessary to attain it. The key is to identify what is necessary.

When we identify what needs to change we must step out of our comfort zone. Building wealth requires a look inside to determine what has held us back. For many it is as simple as they never applied themselves. They have the desire but not the drive. Once they get motivated they will succeed. For others it is not as simple. Fear is one of the strongest forces preventing our success. It may be the fear of change or the fear others may pass judgment. Some people don’t even consider improving their situation as an option. They may have an overwhelming sense of helplessness. These people would typically not be reading any self help article.

If building wealth is worth the risk and we have the determination we can change our circumstances. Once we accurately identify what holds us back we can look at ways to implement changes. If fear is holding us back we analyze why. Usually fear is overrated. When we ask "what is the worst that could happen" and if the worst happens "what will be necessary to recover" we typically find the reward is worth the risk. If our lack of education is holding us back in a particular career we need to look at whether furthering our education will get us where we want to be in this career or it might require changing careers. The prospect of changing careers may bring us back to the fear. There is only one person to control this.

We have to look to ourselves when we are building wealth. Other people can help along the way but the person to look to is our self. We are the reason whether we are progressing or not. If we want to make more money it can be as simple as work more hours, but this is rarely the case. If we want to spend more time with our family we have to make the time to do so. If income or work hours don’t allow for it, something has to change. Find a job with flexible hours. Find a job with better pay, reduced hours, or more vacation time. Work from home. If everything remains the same and we do not believe it is worth the risk to make a change then building wealth will always be an abstract though left unrealized.

1) Identify what wealth means to us.
2) Identify what holds us back.
3) Analyze why it holds us back.
4) Implement changes to achieve success.

No matter what our family situation or employment situation we have to take responsibility for our destiny!

Millionaires quotes.

2008-05-12T19:26:00.000-07:00

"A rich man is one who isn't afraid to ask the salesman to show him something cheaper." - Anonymous

"Let me tell you about the very rich - they are different from you and me." - F. Scott Fitzgerald

"Yes, they have more more money." - Ernst Hemingway

"Rise early, work hard, strike oil." - Paul Getty

"I have been poor and I have been rich. Being rich is better." - Sophie Tucker

4 Steps to Financially Surviving a Recession

2008-05-10T09:16:00.000-07:00

By: Justin Verrengia

If you live in the United States then it's no secret we are living in a recession as we speak, if you cannot see that then your living in denial and if that's the case go take a long look around you.

This article was designed to help you survive this financial recession millions of families are struggling through as we speak.

Here are 4 steps you can start implementing immediately...

1. Calculate your current cash flow and necessary living expenses.

Calculate exactly how much all your necessary living expenses are. Then calculate your income. Your cash flow is the money left over after you pay all your necessary expenses such as credit card debt, mortgage debt, food, etc.

Your whole objective here is to eliminate all your unnecessary bills such as cable tv, expensive meals, entertainment and all other discretionary forms of expense. You need to eliminate everything you possibly can in which you can go by without.

Then recalculate your new total cash flow which is the excess money left over after you pay all your bills. The more the merrier. Our goal is to maximize our cash flow so we can have extra money to survive the financial drought.

2. Start Saving Now!

This is the holy grail of surviving right here. Cash flow without saving is dead. Saving is the only other required action needed to take place and without this discipline your toast.

Setup a target with some goals, for example you might say, " For this month of May, 2008 my target is to save $2,000." That is the target and then set 3 goals in which you can already do in way's of budgeting that will aid you in achieving your target such as, "I will cut my $200 cable bill" or "I will work X amount of extra hours this month" you get the point.

Be sure to setup realistic targets at first because they're very attainable and once you see how easy it really is then challenge yourself and go for the gusto. Keep in mind the more you save the more you survive, this is vital to get it through your head.

3. Make more money!

Making more money, This is easier said then done, right? You can simply ask for a raise and pray for a yes, but even then it's not enough if we truly demand to get ahead.

You can network with others to find new opportunities to advance in your company, find a better company itself or come up with ideas to earn some extra cash. Maybe try to find a part time job where you could make more money, even if temporarily.

Cash is king, the more you earn the more you can save and make wise investments which will produce you even more money.

4. Staying Positive!

Personal Growth is the power to become wealthy from within. By staying positive you are then attracting positive circumstances into your life . This concept is explained well in the recent book/movie "The Secret" in which states, "We are what we think." This means if we think positive and emotionalize in that action we will attract exactly that into reality every single time, without fail.

A great way to stay positive throughout the day is to either read or listen to some audio books on your IPod on a daily basis, Material such as Napoleon Hill's classic "Think & Grow Rich", Robert Kiyosaki's "Rich Dad Poor Dad", or Joe Vitales "The Attractor Factor".

These kind of teaching are all personal growth and will reprogram your brain to think positive and control your reality and future.

Law of attraction states, "if you think of your debt then you will attract more debt" but "if you think about making more money, better health, or abundance you will attract exactly that. Again the key is always staying positive so you can always grow and attract more greatness into your life.

So to recap here there are 4 steps needed to be followed if you expect to survive this financial recession which has already began.

Know your expenses and cash flow, minimize unnecessary expenses and maximize your cash flow. Then save your money and continue to make more money. Don't forget to always stay positive so you can always continue to grow.

Who Wants to Take a Home Office Deduction?

2008-04-29T01:49:00.000-07:00

By: Tom Wheelwright

You should if you want to take full advantage of a tax deduction many people overlook. The home office deduction allows individuals to deduct expenses that are not otherwise deductible such as utilities and homeowners insurance. There are certain requirements you must meet to have a home office, including:

You own a business (if you are an employee, you must meet the "for the convenience of the employer" test). You have an area set aside in your home used regularly and exclusively for specific administrative or management activities There is no other place of business where you conduct those activities

These requirements help you to determine whether the area used in your home is your principle place of business for certain business functions.

If you don't think the area you use qualifies, you may just need to change the facts. Are there too many nonbusiness items in your office area? Move them to another room and you may qualify. Are you struggling to find business activities that you can do at home? Bookkeeping, billing and ordering supplies are just a few activities that are easily done from home.

Once you've determined that you have a home office and you would like to take the home office deduction, you need to track certain expenses.

Allowable home office expenses include:

- Utilities
- Mortgage interest
- Property taxes
- Homeowners and liability insurance
- Repairs and maintenance of office area
- Depreciation of office area

Deductions that do not qualify as home office expenses are items that do not relate to the home office such as landscaping and pool care. In addition, taxpayers are denied a deduction on a first phone line regardless of the level of business use. A taxpayer must have a second phone line to deduct telephone expenses, long distance charges and internet service.

Of course you can't deduct 100% of these expenses. The expenses are allocated based on square footage or number of rooms in the house. In most cases, the number of rooms allocation yields a higher deduction, make sure your CPA calculates both numbers to maximize your deductions.

- What You Should Know About Home Office Deductions -

Home office deductions are allowed for areas used exclusively for the management and administrative duties of the business when these functions are not conducted in the principal place of business.

Prior to 1999, the IRS regarded the location of major business transactions, based on time usage, as the principal place of business. For example, sales conducted in customer's homes disallowed the home office deduction, even if invoicing, bookkeeping and other management functions were conducted from the home. Now these responsibilities are accepted for home offices.

However, if multiple businesses are conducted from the home, separate office space should be allocated, or the entire deduction taken, in the most active business. This is particularly important where spouses each conduct business from the same home office space.

Home Office Requirements:

The home office must be an area in the home set aside and used regularly and exclusively as an office. No other fixed place of business can be used to conduct the same business regularly.
General expenses of your home are deductible in proportion to the business office percentage of your home. This can be measured either by square footage or by number of rooms, excluding bathrooms and hallways.

Certain home office expenses must be paid through your company, while others are personal expenses.

The following items should not be paid by your company:
- Mortgage expense and interest.
- Property taxes.
- Homeowners and liability insurance.
- Repairs and maintenance of the office space.

The following items should be paid through your company:
- furniture and fixtures purchased specifically for business purposes, whether stored in the home office or at another location.
- Separate business phone lines that are installed at the home office.
- Office supplies.
- Other items specifically used for the business.

The following items are not generally deductible:
- Landscaping and lawn maintenance.
- Pool care.

visit: http://www.provisionwealth.com

Are the Joneses Keeping You From Building Your Wealth?

2008-04-22T10:56:00.000-07:00

It's hard to pin down when it happened but it happened. At some point, society subtly taught us that we are what we have or what we own. And thus the race to keep up with the Joneses began, making you go on shopping sprees that you couldn't afford, and racking up debt you will have a hard time paying off. That ever present feeling that you had to keep up with the Joneses has kept you from building the wealth you deserve, and for what? For the short lived thrill of having the sexy car, the latest cell phone, the hip lap top, the coolest clothes and the biggest house? While it can be exhilarating to buy the latest "it" item, the products themselves or the feeling you'll get from buying those items will not last very long. And unfortunately the damage to your wallet will. So what can you begin doing today to start building your wealth?

Change How You Think
When you get the urge to buy an expensive or inexpensive reoccurring item (Starbucks coffee) ask yourself the following questions:

---Do I really need it or is it just an immediate desire? Think before you buy. Whatever you want to buy is not going anywhere. Give yourself some time to think about your purchase decision and the impact it can have on your ability to build wealth. You might be surprised at how your mind forgets what you "really" need to buy.
---How many hours do I have to work to pay for this item? Calculate your hourly rate and figure out how long you have to work to pay for the item? If you love your job you may not mind putting in extra hours (fun retirement hours), but if you don't or prefer spending time with family you may want to think twice. If you buy the item on a credit card you have to also calculate the interest rate you will be paying. Those $4 lattes a day do add up.
---Why do I want this item? Sometimes we want things for the wrong reasons so consider your motive. Are you trying to impress someone? You want what your neighbor has? Think about this: Are you going to work until 80 just to say you impressed Tommy, or that you had what Jane had? Do you really think they'll care? The more you understand your motives the less likely you'll be to destroy your future wealth. Yes, we could all die tomorrow so why not live now? The fact is that most people will not die tomorrow, but they will get older and will need money to live on. So the question is will Tommy or Jane support you during your old age? You know the answer to this question.
---Is the Item Within My Budget? Who doesn't want to live like the rich and famous? Everyone does but we have to be realistic. Before you buy a house, a car or any major item you have to be realistic and see if your budget allows it. Having enough credit to buy it does not mean you can afford it. Your monthly income and monthly expenses will determine if you can afford xyz.

Budget Yourself
Most people think of a budget as punishment for bad behavior, but it doesn't have to be that way. A budget is merely a plan you create for planned income and expenses and your guide to helping you make decisions and analyze where you are spending your money. You can create a plan using an excel sheet or with readily available software such as Quicken or Quickbooks.

Creating a Budget That Works
Most people go wrong with budgets because they either make them too restrictive making them feel like they can't have any fun, they include too much making it impossible to track, or they do not include everything they need to include. Here are some tips on how to make a budget that works for you. Add the following line items to your budget:
1. List All Sources of Income: Payroll, Rental Income etc.
2. List All Monthly Household Reoccurring Expenses: Utilities, car payment, rent, mortgage, loans, insurance, credit cards, food, cleaning supplies, clothing, gas, etc. (do not include things like fun or entertainment yet)

Now that you have these item listed use the following formula:
Income - Expenses = Disposable Income
Let's say your monthly income is $5,000 and your monthly expenses are $3,850. This means that you have $1,150 of disposable income per month. So here's what we are going to do with this money. You are going to split it like so: 20 Emergency Savings and 60 of your disposable income a month into your fun allowance checking account. You can spend it without worrying about tracking it in your budget. But remember once you run out of allowance money that is it. You'll have to wait until next month for extra fun money. (if you want more allowance money see where you can cut back on expenses and not on emergency savings or retirement savings).

Emergency Savings: To avoid being one paycheck away from disaster you'll need to save some money for emergencies. Deposit $230 (20 of your disposable income) a month into a retirement account ie. 401K ($15,500 2008 contribution limit if you have earned income and are younger than 50 or $20,500 if you are older than 50 years of age and have earned income). By the end of the year you would have contributed $8,280 into your retirement account not including your employer contribution match or account growth. Your goal should be to contribute at least 10 (you'll need more if you are closer to retirement age) of your salary into your retirement account. If you would have followed this budget you would have contributed 13.8% of your salary. Nice Job!

If your budget is tighter, review your monthly expenses and see where you can cut back. If you follow these simply tips you will avoid the trap of trying to keep up with the Joneses and you will have built the wealth you deserve. We are all going to grow old. The question is how comfortable are we going to be? It's up to you decide, so before you spend more than you can afford think about your future and what you want it to look like.

Good financial management

2008-04-12T08:47:00.000-07:00

By: Mark Gwilliam

Why good financial management is so essential.

Good financial management is essential to the survival and success of every business. Unfortunately, many small business owners have relatively limited exposure to financial management and are unaware of how strategically important it is to their business’s performance.

In general, financial management deals with the procurement of funds for a business and the effective use of those funds in the operations of the business. It also involves using accounting numbers to measure the financial health of a business, to understand the reasons for the current financial position, and to make strategic decisions that will improve the general performance of the business.

The best way to demonstrate the importance of good financial management is to describe some of the tasks that it involves:

• Taking care not to over-invest in fixed assets
• Ensuring that there is a sufficient level of short-term working capital to sustain and manage accounts receivables and inventory
• Setting sales revenue targets that will deliver growth
• Increasing gross profit by setting the correct pricing for products or services, reducing the costs of raw materials, negotiating supplier prices, and managing other factors that influence the costs of production or service provision
• Controlling the level of general and administrative expenses by finding more cost-efficient ways of running the day-to-day business operations
• Tax planning that will minimise the taxes a business has to pay
• Managing employee benefits
• Performing financial analysis using numbers generated from financial statements.

Good financial management begins with a solid book-keeping system that will allow for the production of accurate financial statements. It requires knowledge of how to use the figures in the financial statements to the business’s advantage. For example, a good financial manager should know that a positive net profit and an increase in sales does not automatically translate into financial success. If the business’s borrowed capital has increased at a rate higher than the increase in profits or sales, it means the company is financially worse-off than it previously was. Are you and your management team aware of this?

There are many other strategic mistakes that managers who are unfamiliar or untrained in financial management make. Over time these mistakes can become detrimental to a business’s success and survival so it is crucial that you learn as much as possible about how to financially manage your small business. If you have trouble with this, you may want to consider soliciting the services of a professional who knows the ins and outs of the process.

For more information on financial management, have a look at my article "Impress your bank manager! How to read your profit and loss account report".

Wealth Creation Secrets - Discover The Surefire Ways to Attain Moneymaking Success

2008-04-11T02:24:00.000-07:00

By: Sunil Kumar

You have probably heard other people say that "Money isn't everything" or "Money can't buy happiness." They may be right in some aspects; but it's not just about the money.

It's about having an ideal lifestyle - being able to have control over your time and schedule, having no one ordering you around, not having to look at the price tags every time you go out shopping, and just enjoying the freedom that you truly deserve.

But why do many people fail to achieve financial freedom? Through experience, I have observed that they have limited belief.

That's the problem with most people. They have set up a boundary in their minds. This barrier stops any possibility of surpassing the current limits of their belief.

For example, many people would think that their boring day job is all that they're good enough for. They do not like to think outside the box. They do not grab opportunities that are theirs for the taking. Fears and doubts have been causing them to miss these golden chances of a lifetime.

There are plenty of opportunities out there. They may enroll in night classes, do some research on how to make more money, or start an internet business.

When I was just starting my online endeavors, all my friends and relatives (with the exception of my internet marketing friends, of course) would discourage me in entering this venture. They would repeatedly inform me that I'm wasting my time and nothing good would come out of it.

Had I listened to them, I would not have achieved online success. If they have succeeded in implanting their own restricted beliefs into my mind, I never would have tasted the joy of being an infopreneur.

No offense to them. I respect their decisions. Everyone has the right to voice out their opinions, but no one has the right to force others in accepting their belief. Thank goodness my internet marketing pals have encouraged and supported me all the way.

Believe that you have the capacity and power to attain moneymaking success, and you're halfway there.

Plan everything. Make a list of things that would allow you to save money. Cut back on using your credit card, pay your bills on time, make wise investment decisions, and try your best to start in some sort of business (no matter how small).

More importantly, action should be taken. It's not enough to just believe. You have to make a move. Does making mistakes frighten you? Don't be. The more mistakes you make, the closer you will get to success.

Sacrifice. Instead of watching TV or going shopping, invest more time on those activities that would propel you in reaching your financial goals.

Many people would repeatedly complain that they're sick and tired of their lives, but do they really deserve a better life? The harder you work the more chances that success will hit you.

Never, ever give up. Quitting is not an option. You must keep on pounding and pounding until you have achieved your mission.

Money may not be everything, but living your life the way you want it to be is.

How Most Millionaires get to be Millionaires...

2008-04-10T10:17:00.000-07:00

By: Nisha Garg

Why do so many people claim that money isn’t important? Why is there this notion that wanting money somehow makes you an ill adjusted bad human being? It’s such a strange thought pattern don’t you think?

Wanting more money in your life doesn’t mean you’re a bad person. It doesn’t mean you’re greedy either. It just means you want more out of life. You want more freedom. You want more security. You want more fun. Whatever it is, you just want more. Money is just simple a means to that end.

I hoe I don’t let the cat out of the bag, but that’s what this whole home business gig is anyway. Someone sells you on the idea that you can make tons of money working from home as an independent contractor or distributor for this company or that. And, it’s not that you ever buy into the promise that the home business is selling, but you take a leap of faith and give it a try.

We start small, maybe $20 for a book about real estate investing. I know my first brush with the thought that I could be independently wealthy working from home was when I came across an ad for the eBook Google cash (if you don’t know what I’m talking about just do a quick Google search). The idea seemed so easy and so low risk I figured why not gives it a try.

That was the beginning, almost a year ago. Here I am now writing to you about my home business experiences. In that time, I’ve bought an apartment building and learned just about everything there is to learn about starting and running a business from home. And guess what? If you haven’t caught on to this yet, no matter what the ads tell you, no home business is as simple or as cheap as the ad would have you believe. But I digress.

Let me get to the point though. Let’s discuss the title of this little article. Most millionaires become millionaires by starting a small business, saving their revenue, and then investing. It really is that simple. Let me say that again, all you have to do to become a millionaire is start a small business, save, and invest.

So, what do millionaire look like? Well, most are in their sixties and living the same type house that you and I live in. They look like us. They dress like us. They are us. The only difference is they have a whole lot more money in the bank.

Here’s a fact that I hope will hit home. There are twice as many millionaire small business owners than there are millionaire doctors or lawyers combined. So, if you own a home based business or you’re thinking about checking out some legitimate home based business opportunities then you’re on the right track. Just stick with it and don’t give up!

Remember most millionaires are get to be millionaires by being just like you and me, they’re home business entrepreneurs!

The Cycle of Wealth Building

2008-04-08T01:30:00.000-07:00

By Natalie Aranda.

There are foundational principles that rule the cycle of wealth building whether you build your wealth on stock market, home loans, or any other type of real estate investment. Many who are new to wealth building are often not aware of, or not disciplined to follow the principles for building wealth.

There are foundational principles that rule the cycle of wealth building whether you build your wealth on stock market, home loans, or any other type of real estate investment. Many who are new to wealth building are often not aware of, or not disciplined to follow the principles for building wealth. The formula for building wealth is straight forward:
1) make more
2) spend less
3) start early
4) manage the risks.

The cycle of wealth building consists of phases of goal setting, planning and execution.

1) Define the goals of your wealth building both short term and long term.

Goal setting begins with the questions of where do you want to be financially 5 years from now, 20 years from now and by the time of your retirement. For instance, you plan to own a half million dollar house in 5 years. You would like to accumulate net wealth of one million dollars in 20 years. And you want secure two million dollars in your bank account when you retire. The goal of wealth building should be challenging enough yet realistic. If they are set too low, you won't be motivated to work harder. You'll be totally frustrated if the goals are unreachable. Studying books for personal financing and attending wealth building seminars will help you to get it right at the beginning.

2) Develop a plan that help achieve the goals you've set

We won't know exactly whether the goals of the wealth building are set too low or too high unless they are justified by a plan. Many investors may think one million dollar net wealth is unthinkable. In fact, if you invest $500 a month and that invest generates 11% annual return, you'll be a millionaire in 30 years. 11% annual return is what S&P 500 index has realized in past 30 years. To achieve your one million dollar goal, you don't even have to make the choice between "eating well" and "sleeping well".

3) Follow your plan and work hard

There are two common causes of failures in wealth building - 1) not committed to the plan to work hard enough, and 2) not disciplined to follow the plan and rules even they work extremely harder. Even well-known investment gurus are often distracted to believe the possibility of get-rich-quick when financial market experiences drastic up-and-down swing.

Once you've completed the cycle of wealth building, the next cycle of wealth building begins. Returns on investment contribute to building your wealth but not if you forget about high interest rate on debts. Taking a wealth building seminar you can discover how maintaining a realistic and positive attitude is worth more than crying about a loss. Wealth building can begin with a raise at work or your first income after an investment.

Genuine wealth building is made up of learning which comes from a wealth building seminar or personal experience, enhanced with the input and feedback of those who are already building their own wealth. In this cycle, cash is the king so get ready for developing enough liquid resources and never invest if you are afraid to lose because you will be propitiating your luck.

Source: www.articles-hub.com

Traditional Financial Planning: Plan Your Health, Wealth and Estate

2008-04-07T00:23:00.000-07:00

By Anton Kadin

Really, finance is one aspect of our life which must be taken care of and which must be managed efficiently. Only present financial condition is not important but your future financial condition should also be robust. This is essential for living a peaceful life and for providing mental peace to your loved ones. And for this purpose traditional financial planning tools can be utilized.

Theoretically saying, traditional financial planning involves various investments and savings issues so that you can enjoy your whole life with financial security. It may include the planning of retirement, insurance instruments and capital growth solutions. You can do a tax-efficient investment so that you can save money and at the same time save the tax also.

The traditional financial planning firms can also provide consultation regarding investment for children, retirement and estate planning, like pension reforms, contracting out, annuity options, inheritance tax, wills, responsibilities of trustees etc. You can make concrete financial plans at low cost for your future by opting for these financial planning firms. You can choose various insurance life cover also. It can provide help to you and your family at the time when they need it most. For example, it could pay off your mortgage and other outstanding loans if you need for example when you are diagnosed with a terminal illness.

Furthermore, the traditional financial planning firms can help you regarding other financial protection like financial risk management, insurance and health protection. They monitor your present financial situation by collecting your relevant financial information like tax returns, net worth and cash flow statements, insurance policies, investment portfolios, employee benefit statements, pension plans etc. Then they identify realistic and attainable financial goals and objectives.

After that, traditional financial planning firms can suggest some insurance plans, wealth management plan, estate plan and retirement plan. You can choose any financial plan according to your choice and need and invest in it. So, now you don’t need to worry about your future financial condition just check about various investment planners over the Internet and seek advices. Their suggestions can be of great help to you.

Young Entrepreneurs – 5 Keys to Success

2008-03-30T11:35:00.000-07:00

By: Cody Miller

What does it take to make it as a young entrepreneur? I have discovered 5 keys to success as a young entrepreneur and I would like to share them with you. These principles can be applied to anyone who is searching for success, young or old, though the focus is going to be specifically on young entrepreneurs in this article.

Success Key #1 – Intrinsic Motivation

Psychologically speaking there are two types of motivation – extrinsic motivation and intrinsic motivation. Extrinsic motivation is when something outside yourself prompts you to act. The best example would be placing your hand on a hot stove. Your body is extrinsically motivated to MOVE!

Intrinsic motivation is quite different. With intrinsic motivation there is nothing forcing you to act, you are acting of your own will and desire. This is often called, "Self Motivation". This is the type of motivation that successful young entrepreneurs possess.

You can begin developing an intrinsically motivated lifestyle today. Simply practice doing things which no outside source is prompting you to do. This could include, eating healthy, exercising, meditation, prayer, etc. The key is to perform an action for which there exists no motivation outside of yourself.

Success Key #2 – Self-Discipline

The second key goes along quite nicely with the first. In order to reach your true potential as a young entrepreneur, or an entrepreneur of any age, you must have a good amount of discipline in your life. The best kind of discipline is "self-discipline" because it combines the benefits of discipline with the practice of intrinsic motivation.

While intrinsic motivation is the practice of performing actions for which there is no external cause – discipline is the act of maintaining those actions.

What if you only filled your car with gas one time for the life of the vehicle? How far would you be able to go? A vehicle requires the repetitive action of adding fuel in order for the vehicle to go anywhere, just as an intrinsically motivated young entrepreneur requires the repetition of successful actions in order to get where he or she wants to go.

Success Key #3 – Safeguard Your Dreams

Young entrepreneurs must safeguard their dreams. There are a lot of dream stealers out there. Some of them may even be friends and family. Some of them may not be intending to hurt you, but sometimes, they will. You must be prepared for this and you must safeguard your dreams.

Do not let anyone tell you, "you can’t." because it simply isn’t true. Surround yourself with positive and upbeat individuals who are like-minded and similarly focused. If you’re around people who are not, for whatever reason, stay positive and stand up for your dreams.

Success Key #4 – Set Goals

Goal setting will be critical to your success as a young entrepreneur. You must always set goals for yourself, both large and small. Start by setting a large goal, such as an income you would like to achieve and then set smaller goals to reach between now and then.

Small goals which lead to larger goals have been proven effective in my own life. Sometimes your large goal will take a few years or months to achieve and you can get burned out and frustrated if you don’t "achieve" anything between now and then.

Smaller goals between your larger ones will help keep your vision fresh and your body motivated.

Success Key #5 – Be a Leader

Being a young entrepreneur means being a leader. You are stepping out in faith and paving a way for yourself in the world. People will naturally desire to follow alongside. Let them. You shouldn’t develop a God complex but you shouldn’t belittle yourself either. Find the balance between the two. Know who you are.

Never be afraid to speak your mind or heart. Stand up for what you know is right and don’t worry about those who laugh.

Creating Wealth Through Personal Development

2008-03-27T20:03:00.000-07:00

By Lynette Chartier

Many people are searching for ways to improve their life, and most of the time personal development is the first stepping-stone. What is personal development? In short, it’s learning to listen to your heart, and realizing that how you react to the world is much more important than what actually happens to you. It’s letting go of limiting beliefs and realizing that you can truly accomplish anything once you set your mind to it. It’s changing your "within" so you can function optimally and prosper better in the world around you.

Recently, many people have begun to realize that they can create wealth by using the principals of personal development in their business opportunities. By opening themselves up to the possibility of creating wealth and opportunity, they attract those circumstances into their life naturally and begin enjoying tremendous success on a financial as well as personal level.

Think about it this way. Years ago, the idea of "starting a business" was not one that was widely accepted. It was "risky" and, while not frowned upon, it definitely wasn’t something the average person considered a viable option. The attitude for most people was that success meant a comfortable job that offered long-term security. You worked hard all your life for someone else, provided for your family, and then retired.

Although there is nothing wrong with this mode of thinking, to say that most people have this view now would be wrong. More and more people today understand that owning their own business and using their creativity to create wealth enables them to live a life they’ve always dreamed about. They don’t want to be "stuck" in one job any longer. They want opportunity to learn and to grow, challenge, and freedom. They want a life that lifts them up instead of making them feel chained and monotonous.

More people than ever are discovering their entrepreneurial spirit, and it’s a number that is constantly growing. Are they using personal development in their businesses to create wealth? Well, of course not all of them are, but you’d be surprised at how many are. The days of personal development being New Age are long gone. People are awakening to the fact that what you focus on is what you create and what you see.

Here’s a good example. Many people think constantly about what they don’t have. They don’t have enough money, they don’t have a nice enough car, and they don’t have a nice enough house. If that’s where you put your attention, then of course that’s all you’re going to see. You won’t really move further past that.

Think about what might happen if you turned inward and started being truly grateful for what you do have, and what you are going to accomplish. Instead of putting your attention on not having enough money, you put your attention on the opportunities to create more wealth in your life. You focus on something that you can do, a positive, instead of not having, which is negative.

And think of the positive energy that transpires if you use your motivation and inspiration to help others realize their dreams. It’s a forward motion that, like a snowball, gets bigger and bigger and bigger the more time passes. The more you focus on the possibilities that exist and on helping others you increase the wealth and abundance that comes into your own life. It’s a magic recipe for success in and of itself.

Take a look at people who are truly happy and successful. Sure, there are plenty of people that are wealthy, but they’re miserable, and conversely, there are plenty of happy people that are broke. If you want to create wealth in all areas and have a joyful life at the same time, then you must turn inward first and then use the principals of personal development in your own life and business. You help yourself, and once you’ve done that you can help lift up others in the same way. It’s a cycle of giving that not only pays off in your business, but you get even more back spiritually knowing that you’re affecting positive change in the world.

create wealth|financial planning|personal development

Asset Financial Group - Managing Money For Your Future

2008-03-23T09:14:00.000-07:00

By Dean Forster

As you grow in your career it is time to plan for the future. You start a savings account that becomes a nest egg instead of just being used for emergencies. Eventually you might even invest in a certificate of deposit or bonds as your money grows further. Sometimes, through inheritance you can accumulate a rather large sum of unexpected money. Using an asset financial group to help you manage your money is very important to your future.

One of the first steps that an asset financial group will do is to give you a list of the different services that they provide. They will review your current financial situation and your budget. If you do not have a budget, they will assist you in setting one up. You can review the list of services to determine which ones you will need. Essentially, the group will customize their different services to a package of services that fit your specific situation.

How do you determine which asset financial group is best for you? Look at several groups instead of just settling with the first group that you find. Ask for a free consultation to determine which services that they recommend you use from them. Compare the suggestions of the different groups to get a feel for which company is going best fit your specific needs and which financial stage you are at in your life. You will notice similarities in financial suggestions and even in the types of services that are offered. It is important to pay attention to the differences and determine if those are the best option for you at this stage in your life.

There are many places to find a quality asset financial group. One of the best places is on the Internet. There are many reputable groups that are listed on the Internet when you do a search for them. You will probably recognize some of the names from companies that you have seen advertised on the television or heard about on the radio. Zimmerman, Prudential and Mirae are several that are popular and well known.

Ask your friends, relatives and co-workers if they use a financial group. Find out which group that they use and how they like them. You can ask people that you are close to if they would recommend certain services that helped them the most with their financial planning and investments. The goal of the asset financial group is to help you grow your money comfortably and with the least amount of risk. There are different methods for investing and different minimum amounts required. Find out from relatives and friends if there was a group that they particularly did not like. Read more about asset investing at http://www.topassetmanagementcompanies.com

Read reviews on the Web and in magazines about different financial groups. This will give you a feel for the types of services that are offered and what types of questions you should ask when you first contact a group. Depending on your financial stage of life will determine how large a company you need to work with. If you are just starting to build a nest egg, you will need different services than if you have accumulated a large sum of money that needs investing. Also, you will be the one to determine how risky of investments you are willing to safely make for your future planning.

Read more about what an Asset Management Company can do for you in terms of solid financial planning for your future at http://www.topassetmanagementcompanies.com

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3 Steps To Financial Freedom

2008-03-11T17:46:00.000-07:00

By Dennis Harting

Financial freedom is something that many people desire. With advancements in technology, it has never been easier for someone to realize their financial dreams. Nevertheless, the majority never come close to reaching this destination. In fact, studies have shown that most are financially desolate by the age of 65. This is incredible since people over $1 million in earnings throughout their working life.

The keys to attaining financial independence are not difficult. They were uncovered centuries ago. People in all different cultures have used them to create massive amounts of wealth. Here are three simple steps that you can begin to take immediately to begin your road to financial freedom.

1.Work for knowledge and not for money

Everyone has bills to pay. Regardless of what your goals are, the world does not stop moving waiting for you to get caught up on your skills. However, too often people take positions solely based upon the money that they will receive. "What is the compensation" is one of the first questions asked on an interview. This is a mindset that will lead to one living a life of scarcity and lack.

People who are truly interested in succeeding financially look at different positions from the perspective of the knowledge that will be acquired. If you approach every job as a learning situation, your skills will increase over time. Working in different areas of business provides a well rounded foundation if you ever do set out on your own. In the long run, the experience is much more valuable than the income.

The same holds true for your present position. If you are currently employed and not looking to make a move at this moment, then use the same mindset. What can you learn from those that you presently work with? Everyday we are exposed to lessons about management, team building, and leadership. Keep a journal of what you observe in others. You will see what works and what does not. A lot can be learned simply by being observant. This is a really helpful suggestion is you cannot stand your present position. View it as a short-term educational program. The best part is that they pay you to learn.

2.Start a part-time business

There are a lot of people who work two jobs. The economic conditions of this era often require that for people to make ends meet. Unfortunately, all this is doing is locking someone into a life of hard work and struggle. When one chooses to exchange time for money, i.e. working for an hourly wage, they run into the situation where they run out of time. One cannot add more hours to his or her week. If you work 60 hours this week, the odds are that you will have to do the same a month from now. It is an endless cycle.

If you are going to put in extra time above your normal work week, why not spend that time doing something that will enhance your circumstances? The easiest way to do this is to start a business. Most choose to begin this venture part-time in their home. It can be an offspring of a hobby that you presently enjoy. Regardless of what you decide to do, the benefits to you are numerous.

It is a proven technique that a tremendous way to build wealth is through the owning of a business. When one opens a business, they begin to operate under a different set of tax laws than the W-2 employee. Whereas the employee pays their taxes first, a business owner pays taxes last. This is because of the use of deductions. Things that are done in the normal course of business are eligible to be written off. Also, if one uses a corporation there are a host of other benefits available. (***It is recommended that you seek out competent professional legal and accounting advice before establishing any business). The savings in tax alone can put 15%-30% of the expenses back in your pocket.

In addition to the tax benefits, one can earn income of a home-based business. When one works for another, they may receive a $.50 or $1.00 per hour raise. Yet when a business grows, the revenues can increase infinitely. There is no cap on the growth rate you can enjoy. If your profit margins are steady, you will net more as the revenues grow.

3.Make money work for you

Relying solely on your efforts will not lead to financial abundance in most instances. This is similar to the trading time for money concept. There is only so much that you can do. To move forward financially, it is necessary to put money to work. In effect, each dollar becomes a ‘financial foot soldier’. The money will go out and reproduce itself. Tapping into the effects of compound interest is a basic tenet of wealth building.

Of course, the most common excuse is that ‘I cannot afford to invest’. The reality is that one cannot afford to not invest. Omitting this part of your financial strategy will certainly lead to having to work to sustain yourself in later years. A proven strategy is to reduce the expenses so that they are lower than the income brought home. With this difference, invest in vehicles that will grow over the course of time. The best way to do this is to have the money automatically deducted from your check. Have a percentage rolled into a different savings account. This way you will not even see the money. People who do this find that after two weeks they do not miss the money out of the paycheck.

The final part of this suggestion is to acquire some financial aptitude. Do not become a puppet for the ones offering advice. Learn some of the basic terminology and investment vehicles available. Star athletes have shown what can happen when one relies too much on the advice of others without a basic knowledge of what is going on. Many have squandered millions of dollars only to end up broke at the end of their playing careers. Get into the habit of reading financial and investment publications to expand your knowledge base.

http://www.yourrichlifeinc.com.

Does Achieving Financial Freedom Mean Money is Being Managed?

2008-03-07T23:12:00.000-08:00

By Linda Carol Berry

Defining financial freedom is an engaging project. If you ask 10 different people, they will give you ten different answers. To those who would answer like me, it means, not having to limit your range because of money. The money thing is worked out. I do not have to give any thought to whether there will be money available. Money is managed.

What I just now worked out is that people reach financial freedom BECAUSE they paid close attention to the movement of there money in the past. They nurtured growth in their money. They had a plan that they implemented and it worked.

Where have I heard about this? ……"If you fail to plan, then you plan to fail".

People, as a breed, are very interesting. Among the interesting, I am one of the not too bright.I can be a little dim. Many are faster on the uptake…They are currently achieving financial freedom.

After a decade of financial "BATMAN RIDE" I now see the value of a plan that involves achieving financial freedom.

This is actually a two step breakthrough, gang!

* "Duh" One - I am actually admitting that financial planning by the seat of my pants is keeping me owing and sleepless.

* "Duh" Two – As long as I am planning, I can plan for wealth. With the proper strategy, achieving financial freedom is well within my abilities. (I’m also seeing that persons with multiple small and steady income streams are driving nicer cars, and ordering lobster. My consciousness makes the smallest shift from that big hit I’m chronically on the verge of…. Interesting….another article.)

So here’s the Plan –

1. Know my WHY. What do I most want? easily another entire article!

2. Income – find a means of having a steady flow of cash weekly.

3. Pay myself first – A Portion of everything I earn is mine to keep.

4. Invest in Myself – It is a wise investment to add value to myself...

5. Work a home-based, low overhead, tax friendly, profitable business and when that business pays a steady income that exceeds that of the job, fire the boss.

6. Employ the services of an accountant, an attorney, possibly an errand runner/ housekeeper/handyperson. Honor the value of my own time.

7. Diversify investments. Money likes to be spread around in different areas. Research them thoroughly. Monitor them, and pay someone else to.

8. Let the assets buy the toys. No capital gain –no toys. (That’s how you get the big toys later)

9. Have a plan to give back. Have a reason to want more. Contribute.

10. Focus on achieving financial freedom with gratitude for the abundance available to those who plan.

These are the ten things that form the outline of my plan. I believe that for myself, and the other veterans of "Batman Ride" finances, these ten things are essential for achieving financial freedom.

To the readers who are skeptical about their own ability to work a profitable business.

In the home-based business industry, there are many established, proven companies that have made millionaires. They are populated by individuals who have their sights on achieving financial freedom. These are some of the most inspiring people you will ever come across. They have been through things, and conquered illnesses, and stuck it out through the hard times, and now have wealth with which to accomplish blessings for others. They can buy homes for people and toys for kids, and sponsor scholarships, and provide plane fares for parents of traveling ill children.

They can make a difference. Think of the difference you could make.

They planned! They boldly, confidently, made achieving financial freedom their target. Now they are enabled to have lives with abundance to contribute.

Money is managed!

What Beliefs Are Stopping You From Achieving Financial Freedom?

2008-01-23T22:24:00.000-08:00

By Carol Biondo

What are the some of the sayings you heard growing up that formed your beliefs? Could those beliefs be stopping you from Achieving Financial Freedom? I know that when I decided to Change the Course of My Life I had to look deep within and break some strongholds that were holding me back.

Two sayings that I heard often were; "It is better to give than to receive" and "Money is the root of all evil." With these being ingrained in me I had a very hard time receiving and always felt guilty because I wanted to Achieve Financial Freedom and Financial Freedom meant never having to worry about money.

Belief #1: "It is better to give than to receive." When somebody gives you a compliment can you accept it with a thank you or do you feel you have to return one? If you feel you have to return a compliment you probably have a hard time with receiving. Without being able to receive your chance of Personal Success is limited. The universe gives abundantly however you need to be open to receiving without guilt. There is no better way to receive than to be thankful for what you already have. Thanksgiving opens up the window of opportunity for success to flow your way.

Time to say good bye to that old/wrong belief, look at the true origin of that saying, and accept it as your new belief. "It is better to be in a position to give than to be in a position where you need to receive." To be in a position to give…to Achieve Financial Freedom…what better way is there to help those that need to receive than to give and be ABLE to give generously!

Belief #2: "Money is the root of all evil." If that were true why are all the Kings in the Bible rich? Read about King David and King Solomon. Read about Abraham, Isaac, and Jacob. We are God’s children and when we play small we do not honor God. God wants us to live a life of abundance so that we may glorify his name.

While we are at it let’s add; "You don’t need money all you need is love" and "Money can’t buy happiness." I don’t know of love alone building hospitals, colleges, feeding the hungry or housing the homeless. While money can’t buy happiness it does buy you choices and those choices could Change the Course of Your Life! I believe financial independence that brings with it the freedom to enjoy everyday blessings is needed in order to pursue your passions in life.

Again, it is time to say good bye to that old/wrong belief, look at the true origin of that saying, and accept it as your new belief. "The LOVE of money is the root of all evil." As we have seen it is not money that is evil or God would not have given it abundantly, it is the love of money that is evil. If you worship or love money above all else or make them your God that will be your downfall. As long as you Achieve Financial Freedom legally, ethically and with integrity the blessings will flow into your life.

So go ahead, get started on your Financial Freedom Plan. Start Creating Wealth and Living a Life by Design. Be thankful for all you have, receive God’s blessings, use them for the good it was intended and you will be given more.

God Bless you as you go forward on your journey to Achieving Financial Freedom and Personal Success!!

I Live In One Of The Wealthiest Countries on Earth, So Why Aren't I Rich?

2008-01-23T16:52:00.000-08:00

By Jim Polymiadis

A few years ago I began to ask myself some valuable questions. The first question being, Why is it that most people do not make it? After all, the World Bank once considered Australia to be the wealthiest nation on the planet. Unfortunately, now the standard of living for many Australians is dropping rapidly, despite our politicians trying to convince us otherwise. With all the wealth that still exists, why is it that so few Australians get to share in it? What is going on that limits us to sharing in only a fraction of this countries wealth, and what can we do about it?

The other thing I was very curious about was why there are some people that start with nothing and become millionaires, some people even in their early 20s, and there are a lot of examples of that in Australia right now. Some people in their 30s, 40s or 50s there is no age limit for financial success. But there are other people who seem much more intelligent, often with a higher education, that in terms of achieving financial success, fail and their lives are filled with hard work and struggle. What is the difference between the two Is it luck that has some people acquire wealth, perhaps they buy more lotto tickets. Do they marry into money, or inherit it? Or is there a bit more to it?

Let us then look at the success formula that most people have been following. That of going to school, getting a good education and then working long and hard until retirement. It is interesting to note the people following this formula, which is nearly 96% of the population, are the ones who generally by the age of 65 end up dead, dead broke, on a pension or need the family to support them. I have been dead broke before and at one stage I thought that dead would have been better and I am glad I did not take that option, but some people do.

4% of the population become what we call "Financially Independent" which means that at age 65 they are able to stop working and continue to live a comfortable lifestyle. It does not mean they are rich. It just means they have enough money coming in to support them, usually around $42,000 per annum. 1% of the population at age 65 will become what we call "Rich". The Australian Bureau of Statistics classifies "rich" as having a net worth in excess of $1 million dollars. A million dollars used to be a lot of money years ago, but by todays standards, it is not that much. In the future, most people will become millionaires just by paying their house off over 20 or 30 years. There are about 200,000 millionaires in Australia, but even then, do these people necessarily have lifestyle. Remember, what we are trying to learn is how to achieve lifestyle, and lifestyle = time + money.

There are many people that become millionaires but still lack time and money. In other words, they need to keep on working. They become what we call asset rich and cashflow poor. You probably know some people like that maybe even intimately. Becoming asset rich and cashflow poor is really not the idea. Having money stuck away that can not be used is pointless. There are many people who die with it and there is not a lot of lifestyle in that. Sadly, the percentage of people that actually have the quality of life they would really like is very small.

For those of you into detail, imagine you had 100 classmates. Out of 100 of your classmates, despite their best intentions, 71 of them will end up broke at age 65 and sadly 25 of them will be dead now you may say you can not blame money for that or can you A lot of doctors talk about a thing called cancer of the wallet. Do you know what that is It is financial stress and is usually not caused by having too much money but a lack of money.

Now, let me ask you a question. When you were leaving school, did your teacher ever say to you, "Who would like to volunteer to go out into the world, get a job that you do not really like and work really hard for 45 years You will work Monday to Friday, (and some of you will need to work Saturday as well) to pay the bills and never get to do the things you really want to do because you will not have enough time or enough money. Then at age 65 you will get to retire and within 2.7 years you will drop dead." What percentage of students do you think would have volunteered to do that? Maybe one or two up the back of the class who must not have been paying attention and missed the question.

Alternatively, how many do you think would volunteer to learn how to set themselves up financially, so that from age 25 to 30 onwards they never had to work another day in their life unless they chose to. Instead they would get to spend quality time with family and friends, travel to all the places they ever wanted, establish a career that they believe in and live the life of their dreams. My guess is nearly 100% except for the ones up the back who must not have been paying attention and missed the question again.

So, 25 of your classmates have unfortunately passed away. What about the ones that retired broke. How broke are they 20 of them will have incomes of less than $15,000 pa at age 65. That, by the way, is below the poverty level! 51 of them will have an income between $10,000 up to as much as $35,000 (with an average of about $18,000) that is not crash hot either! Only four of them will have annual incomes of over $35,000 and only one of them will be classified as a millionaire.

It is clear now that this formula definitely is not working for most people. We could look at this as evidence that it is highly unlikely that we are going to succeed and we could say, What is the point of really trying? The people making it must be really, really lucky. Instead it is probably a good idea to take the advice of my millionaire mentor who said, "if you want to succeed, you need to figure out what most Australians are doing and do the exact opposite." I believe that anyone can follow this philosophy if we keep it rather simple.

How to Become a Young Millionaire

2008-01-23T09:17:00.000-08:00

By Vince Shorb

Youth has its advantages and one of the biggest rewards is a powerful force that will almost ensure you become a young millionaire. There are simple steps you can take, when your young, that will help you harness the power of this force; making becoming a millionaire a breeze.

Just by following a consistent investment plan you could be enjoying the freedom that comes with being a young millionaire. A simple investment, in the overall stock market, could help you to retire young. Consider these examples:

- $149 invested each month starting when your 18 years old could make you a young millionaire at age 52.

- $687 invested each month starting when your 18 years old could make you a young millionaire at age 40.

Financially educated youth have tremendous advantages that average young adults don't have. Just by being aware that you can retire young with a simple investment strategy is enough to encourage some to take the necessary steps to reach young millionaire status.

Becoming a young millionaire is easy when you start young because you have the power of 'compounding interest' on your side. Compounding interest is defined as the interest earned from the initial money you personally invested plus the interest earned from the amount your investments have already returned. To clarify, the money that you already made from your investments starts to earn you money. So, year after year, you're making money off money you already made.

Investing young allows you to get the maximum benefit from compounding interest. Because you're making money (earning a return) on what your investments have already paid you, the younger you start the faster and larger your investment account may grow. That's why investing young gives you a huge advantage.

1) Savings. The first step on the road to becoming a young millionaire is to set up a simple savings plan. Pay yourself first by setting money aside into an investment before you start spending your paycheck. Getting in the habit of paying yourself first will benefit you your entire life and will help you retire young.

2) Invest young. Don't get caught up in thinking 'investing' is hard; it's actually easy. There are simple investments, available to the inexperienced, that will get you started investing young.

The stock market offers some investment vehicles that are lower-risk while offering the potential for long-term gains. One type of investment vehicle is known as broad based market index investments. These are investments in the overall market like the S&P 500 and NASDQ 100. For example, you can invest in all 500 stocks of the S&P 500 with one simple investment index investment vehicle. The S&P 500 index is one way for the non-professional investor, that doesn't have a lot of knowledge or time, to profit from the stock market.

3) Consistency. Simplicity equals consistency; and consistency is a major factor in becoming a young millionaire. Choosing a simple investment vehicle is the first step. Next it's simple a matter of modifying your investment account so your make consistent investments automatically.

There is a basic investment technique called 'dollar cost averaging'. You can set up your dollar cost averaging plan so that it will automatically invest a set amount of money at a set time each month. The best part is that once this structure is set up you can sit back and just review your monthly statements. With a consistent investment plan you could reap huge profits over a long-term.

4) Multiply your money. The basic stock investment method mentioned above will get your money working for you immediately. For those of you looking to become a young millionaire sooner there are ways you can speed up this process. Learn about the investment vehicles discussed below and you will be able to afford the things you want sooner and achieve wealth at a faster pace.

A. Real estate. Real estate investments can be credited with making the majority of young millionaires. It gives you the power of leverage so you are making money of money the bank loaned you. When done right you could expect to double your investment each year! Just by purchasing real estate while you're young could easily make you a young millionaire.

B. Entrepreneurship. It's never been an easier time in history to start a business. Plus now day's you can have a global company with small initial investment. Entrepreneurs not only make money from their business each month but also they can sell all or part of their business for additional money.

You could start a business that earns you an extra few hundred a month or one that is your entire source of income. Either way it can help to secure your financial future plus give you greater cash flow now. What's more, there are tax benefits available to business owners that will keep more earned money in your pocket.

Becoming an entrepreneur can help you become a young millionaire and give you the luxury of being able to retire young.

The sooner you start investing the sooner you can become a young millionaire. You'll discover by following a simple investment guide you can easily retire young. You have the power of compounding interest on your side that will do most of the work for you. The best part is you will be able to do what you want when you want, retire young, have free time and be able to afford the things that you really like. Start now and the take steps to become a young millionaire today!

Vince Shorb, author of 'Financially Free by 30', gives young adults step-by-step plans to achieving young millionaire status. Visit http://www.FreeBy30.com for access to free video footage.

Money – Are You Making The Right Decisions?

2008-01-22T16:45:00.000-08:00

By Audrey Burton

Money is a very emotional subject. Many, many relationships - personal and business - have been severed due to money. Siblings, friends, partners, husbands and wives will discard each other because of money. In fact, many people will remain unhappy for years and years in order not to lose money. That makes me so sad. Life has so much more to offer!

Money is only a tool. While it is true that having money can solve problems and create fun, it remains only a tool. There really are people in this country and across the world who have no big problems and have much joy in their lives with very little money.

Money is mostly about choices. If all I wanted was money, I could have an MBA and be making over $100K/year right now. Would I be happy? Sometimes, maybe, but I'm happy nearly all the time right now, and I am not wealthy. My life is rich, though, because of the choices I have made for myself. I acknowledge that my life is the way it is because of my choices, and I take full responsibility.

Are you taking full responsibility? I recently met with someone who told me they thought they had no choice in solving in their money problems. They must sell their property - that's the only option. In fact, this person has many choices. They can get a job and give up their business - temporarily or permanently. They can acquire more debt. They can claim bankruptcy. They can ask other people to give or lend them money. The fact is, they have already decided against the other options, making the decision to keep their business dreams and retain their integrity.

Here are some options people often disregard as unacceptable: - Get a second job (this could be waiting tables, consulting or babysitting!) - Sell things (jewelry, antiques) - Trade down (get a less expensive car; move to cheaper neighborhood) - Borrow money to invest in your business (be very careful with this one!) - Eliminate expenses (movie channels, Starbucks, private school) - Stop shopping (God forbid!) - Get a regular job while getting more education to open future doors

There really are only 2 ways to solve money problems - get more and spend less. There is a lot of freedom and a sense of empowerment in resolving the problem without acquiring more debt. Would it hurt to baby-sit a child the same age as yours a couple of nights per week while the mom goes to night school? Do you really need those antiques from Aunt Nellie who died 10 years ago? You never really liked that stuff anyway. Instead of spending $150 per month on cable, read books to your kids and have them read to you! Win-win!

A critical component in making the right money decisions for yourself is a plan. What do you want? Do you want to start a business? Do you want to keep your business? Put your kids through college? Retire early? How much do you need to accomplish your goal?

Without a goal of some kind, it makes it more difficult to make the right decisions for yourself and your family. You will just continually feel overwhelmed and stressed. Put together a 2-3 page, comprehensive life plan that includes family goals, business goals and personal goals. This plan is only for your use and you can change it any time you want. Remember what the Cheshire Cat said to Alice - if you don't know where you're going, it doesn't matter which way you go!

In the last couple of decades I have seen an evolution in our society. More and more people think money can and should come to them effortlessly - they have a sense of entitlement. We who are in the U.S. are extremely lucky to have the freedoms we have to work when and where we want, start businesses and acquire education. A superhero's grandpa once said, With great power comes great responsibility. True.

Copyright (c) 2007 Audrey Burton

Do You Dream of Financial Freedom?

2008-01-22T06:52:00.000-08:00

Most people in the world would love to attain financial freedom. If only it was not so difficult. Some may wonder how there are some people who are billionaires and others who live in a cardboard box. It is a sad reality. Most people have to work long and hard hours in order to achieve their financial freedom. They also usually have to work for someone else who is even more free financially. Some people own their own business that is doing very well and bringing in more than enough money to support their family, but a lot of times they have to choose between financial freedom and spending quality time with the family they are working for to support.

The cost of running their business most likely takes a big chunk out of the profits if they have to pay for a lease and utilities etc. for maintaining a building. Owning a brick and mortar business can be a very expensive operation. Usually there will also be employees to pay also. There are some people who love their work though, regardless of the hours they put in.

The people who have to go out and travel back and forth to the office, factory, restaurant, etc. may be the ones who really dream of their financial freedom. They go out and work hard and are away from their family in order to make another person, their boss, more money, while they get paid a fraction of that. This is not to say everyone feels this way. There are some people who are absolutely content with working for someone else and there is nothing wrong with that at all.

For those that do mind working for someone else may wonder what their alternative would be. They cannot afford to put in a ton of money to start a business and they cannot just quit the job they already have or they would not be able to live or support their family. What would be a good solution for someone in this situation may be starting a business on the internet.

Often times an internet business can cost next to nothing to start and maintain. If no money or very little money is spent to promote the business it may take a little longer to get into profit, but it can be done. There are dozens of free ways to promote an internet business. Getting the name out there and showing the website is what has to be done to get visitors. There are lots of offline promotion that can be done also.

Some examples of free promotion online are blogging, free link directories, traffic exchanges, making and submitting videos and article writing and distribution. Some free or low cost ways to promote offline may be printing up your own flyers and distributing them, word of mouth, business cards and bumper stickers, to name a few.

The whole point is, it does not have to be impossible or difficult to start your own home business and achieve financial freedom. Put in the time and dedication to get it off and running then enjoy what your hard work has produced. There is more satisfaction in knowing you have done it yourself for yourself, not someone else. In time you may be able to say goodbye to the day job for good and work only for yourself and family.

Attract Wealth and Abundance

2008-01-21T21:18:00.000-08:00

By Crizza Reyes

If you aren't content with just earning interest on your money with a savings account, you could make with several better investing options. The next pace up would be a money market account. These are somewhat like savings accounts, but they gross a higher interest rate. The distinction is that you have to have a minimum quantity in your account at all times. You are basically giving your bank consent to use your money for their savings, and they then divide some of their earnings with you. If you aren't ready to take an enormous risk with your money, this is one of the better investing options you can get.

For persons who are into stocks and bonds, you have to stay closer look at your money. If you get you are misplaced, and keep losing money, you may require better investing suggestions. You can find out any number of consultants to assist you, and several will do all the work for you. They charge a fee, so if you have very small money to invest, this may not be your best alternative. You can also look online to get better investing guidelines and tricks for those who decide on to hold their own investment collection.

When setting up for sequestration, you are constantly looking for better investing recommendation. You can use your companies' 401K plan to keep, or you can open an individual sequestration account at your bank. Keep in mind that these are equally considered investments, and are not roofed by the FDIC if you were to misplace money. Have a discussion to your bank spokesperson for further information on IRAs, and call your human resources department if you have questions about your 401K.

You can also get information for better investing by doing a few explore online. There are various sites committed to better investing and to attract wealth, and how to get the most excellent return on your money.

Don't disregard about investing in property. This can signify you become a proprietor, or you buy property in hopes to sell it for an income at upcoming time. No matter which process you prefer, you can get guidelines online to assist you get in progress, and to help you stay in the black.

True Measure Of Wealth And Myth Of Retirement

2008-01-21T12:24:00.000-08:00

Your wealth is not a measure of how much you have, but how much you are capable of generating in every moment. If you had won a million dollars in the lottery but are capable of generating zero dollars, you wealth is virtually zero. Wealth is what you have left when all your money has been taken from you. That is why people who are truly wealthy never become poor even after they have lost all their money. They are able to create money on demand. The secret of wealth is creation and not possession.

A poor person who is incapable of generating income, but happens to win a million dollars, is still a poor person with a million dollars. A rich person who is capable of generating lots of money, but happens to lose all his money, is still a rich person with no money. Money does not make you rich. It is the power to obtain wealth that makes you rich. A million dollars in the hands of someone without power to create wealth, will soon become nothing. In the hands of someone with power, it never runs out.

Money is an illusion because it is not a thing in itself. Money is a representation of something else. It is an external symbol that manifest from the inner world of creativity and intention. The manifestation is complete with some form of action involved. It is only an illusion when there is a lot of money or there is no money. A person capable of generating zero dollars may possess the illusion of a million dollars, while a person capable of generating a million dollars may possess the illusion of money being run out.

When you are capable of creating money, the supply is inexhaustible. Whatever wealth that is manifested is temporary and will soon be used finish or shrink with inflation until it is next to nothing. It is only the act of recreation that sustains the presence of a particular thing in the visible world. Whatever you hold in your hand is subjected to death and decay. Old things become obsolete and it is only through constant renewal that enables anything to live on continually. Whatever stops creating, ceases to live.

It is a lunacy of people of the world to make lots of money to last them the rest of their lives, so that they can retire and never have to work to make any more money. Why retire when you should enjoy making money or enjoy doing fulfilling work that makes you money? Doing something in order to stop doing it implies that the very thing you are doing is not enjoyable. Isn't it such a meaningless way to live life? The reason why this is so, is because many people do not even know how to live their lives correctly.

The idea of retirement is a joke. The moment you retire, you stop contributing and generating. It doesn't matter how rich you seem to be by the amount of money you have. When you stop contributing and generating, you are virtually a bankrupt. You may have a lot of money in the bank to live on for the remainder of your probable lifespan, but if the money disappeared overnight, you are financially dead. If you somehow managed to get eternal life on earth, the very concept of retirement will disappear completely.

Life is always in motion and that which is flowing shall live. Money has to flow in and out of your life in order to sustain your life. You cannot live without spending and you cannot spend without earning. Cash flow is the core diagnosis of any financial system. Whenever your income exceeds your expenses, you are growing steadily richer every day. Whenever your expenses exceed your income, you are growing steadily poorer every day. Therefore the money wise will always keep the inflow going steady.

We either progress or regress, we never stand still. You are either growing or dying. The moment you retire, you are as good as dead. The purpose of life is to create. When a person retires, they stop creating and stop living. That is why people who retire tend to pass away in a very short span of time. They lose the purpose of remaining here on earth and therefore their subconscious mind soon brings their physical life to an end. It's insanity that people work only to retire and then to die without having lived.

It is also an illusion that people have in mind about creating wealth to retire and have the freedom to do what they enjoy. The idea of retirement and freedom should start from day one. You should start doing something you would do if you were already retired. That is what life is for. If you do something that you truly enjoy and most desire to do, you will never work a single day of your life and you will never retire because you are already as good as retired. You are completely free when you realize this truth.

Since wealth is only a reflection of the value that you generate in this world, you never want to stop generating it. That is why there are very wealthy people who continue to do the work they do although they have more than enough money to retire and live on for many lifetimes over. They enjoy doing what they do because it is not work, but it is their life. They seek to generate value for the world for as long as they live. They are truly expressing their inner wealth as infinite and inexhaustible in their outer world.

Strive to be a man of value and generation rather than a man of riches and success. If you are generating more value in this world than you are consuming, you are already rich and a success. Every value that you consume should be for the purpose of further increasing the value you can generate. This is how you multiply the current value of the world instead of degenerating it. As long as you are alive, your purpose is to generate. That is how you make the most out of your life. You constantly generate wealth.

How Does One Become Wealthy?

2008-01-21T07:15:00.000-08:00

By Carol Claussen

Perhaps you have asked yourself how someone becomes wealthy. How do I become wealthy? The best way to become wealthy is to study the success of those who have already achieved what you want and then follow the same formula of success which they have followed. There are many great examples of individuals who have started with nothing and now have amassed fortunes. If they can do it, you certainly can do it too.

Our purpose here is to examine some of the principles of success others have used in creating their wealth.

1. Income.

It should seem obvious that in order to create any financial wealth one must first have income from one or more sources. That income can come from a job, a business, investments, or a combination of all three. All three sources can, if managed properly, allow an individual to build wealth. There are many stories of individuals who worked seemingly insignificant jobs who took care of their money and over time became wealthy.

While it is certainly possible to build wealth with income from only a job most of the people whose names are well known have created their wealth by starting their own business or becoming savvy investors. Starting your own business and investing wisely allow you to take advantage of a very important tool, Other Peoples Money (OPM). In the business world OPM is more properly termed leverage.

One of the most rapidly growing areas of business today is Network Marketing. Each day thousands of people are starting their own Network Marketing business. In fact, both Robert Kiyosaki and Donald Trump have said that if they were to start over in building their wealth they would do so in Network Marketing.

2. Eliminate Debt.

This step should be obvious, but to many people debt is simply a way of life. By eliminating debt you will immediately get a return on your money equal to the rate of interest on the debt you have retired. On credit cards that can be upward of 20%. It is interesting to note that those people who have high debt, particularly credit card debt, seldom invest in anything with returns exceeding 4% - 6%, if they invest at all.

You should have everything you want, which you can afford. If you can afford the monthly payment on something you want does that mean you can afford the item? Generally not!

While debt is an important tool to use, particularly in business, it should be minimized or eliminated on a personal level. Make certain that you understand the difference between good debt and bad debt.

3. Savings.

Pay Yourself First. How many times have you heard that but have not done any thing about it? It is essential that you have a clearly defined savings plan. To start you should be saving 10% of your income and then increase that as you are able. Everyone should have an emergency reserve fund equivalent to 6 months of your living expenses. Other savings plans should include saving for major purchases, and to take advantage of investment opportunities as they are available.

4. Spending Plan.

This area is where the wealthy really start to separate themselves from the general public. They have a clearly defined spending plan. They are disciplined and focused in where they spend their money. Just because they can afford an item doesn’t mean they buy it. While they may have big homes and expensive cars those items are low in priority to most truly wealthy individuals. Go online and find a photo of Warren Buffett’s home and you will see a conservative home which he has lived in for many years. He, and those like him, would rather spend available cash on another great investment.

It is important to understand the three different types of capital when developing your spending plan. They are Operating Capital, Investment Capital, and Risk Capital. The foregoing types of capital are also listed in the order of their importance.

Types of capital is an important distinction but to adequately cover the subject could take an entire book we will just mention them here and you can do some research so as to gain a complete understanding.

5. Investment Plan.

Most Americans spend more time planning their next vacation than they spend planning their financial future. Of course that includes investments.

Do you have any sort of investment plan? Do you have an investment advisor? Do you understand risk and know what your risk tolerance is? What return do you hope to receive, and where can that return be found with an acceptable risk? These are questions you need to answer in developing your investment plan, but if you do so with solid research and clear thinking you will be able do develop a investment plan which will give you passive income your entire life. That passive income is one of the purposes of a great investment plan. Passive income continues to pay you while you relax in your favorite vacation place.

The media, and others, have, for years, successfully dumbed down the American public into believing they have limited investment opportunities. Many people believe they are limited to bank cd’s and mutual funds when in fact there are many high grade, high return investments available to them. Do your homework and know that there are many tremendous investment opportunities available to you.

6. Minimize Taxes.

Make certain you have an exceptional tax advisor who can reduce your tax liability to the lowest legal amount. A few dollars spent getting the best tax advice will pay for itself many times over. Even if you are a tax professional it would be wise to have another trusted tax expert review your returns to insure you have maximized your filing returns.

If you as an individual are receiving a tax refund each year you should modify your withholdings. Allowing the government to hold your money for an entire year is a poor choice in savings. They pay you no interest and by changing withholding you can increase your monthly cash flow for whatever purpose you need.

7. Asset Protection.

All of the above strategies could be of little value if you fail to take proper action to protect the assets you have worked so hard to create. Depending on the type of assets and type of business you have will determine the type of legal entity that would best protect those assets and your business. In fact, you may need more than one legal entity to give you proper protection. You should get good legal advice from a qualified person regarding how to best protect all of your efforts. You may settle on forming a Corporation or a Limited Liability Company (LLC).

Another important discussion you need to have with your legal advisor is which state is best to domicile your entity. Different states offer different levels of legal protection so do you homework and make certain you are getting the maximum protection allowed by law.

Once you have developed a solid financial plan don’t forget the other important areas of a wealthy life. Those areas are Emotional wealth, Spiritual wealth, Intellectual wealth, Physical wealth, and a wealth of relationships. If all you have is money, but none of the other elements of wealth you will ultimately be unhappy, and probably broke!

The above principles of financial success have been used for generations by the wealthy. Because of space they are mentioned only briefly here but there are many recourses available on each of the subjects. If you are serious about building wealth, and leaving a legacy, you will do your homework and make certain you have a solid wealth building plan. Then you will take action. To your success.

A Tale of Two Mortgages

2008-01-20T23:16:00.000-08:00

By George Sutton

Let’s look at an example of two friends – Dave and Wayne - who hired on with a big company just after finishing school. They both bought nice new homes in a new subdivision, for $100,000.
Dave had a paper route as a kid, and was able to save $20,000 for a down payment (20. After 15 years (half way through the term of the loan) Wayne still owed about $59,000 ($59,215.09, to be exact). But Dave, being the frugal kind of guy he was, had been making extra payments toward principal every month. He faithfully paid $100 extra per month, every month, for 15 years. So, he owed $18,000 less than Wayne on his mortgage, or about $41,000.

Over those 15 years, their homes had appreciated about 5 percent annually. Now, their homes were worth $200,000 each! Lo and behold, the big employer they both worked for ran into trouble, and there were rumors of layoffs. Dave felt pretty smug, because he was actually a great employee with lots of seniority, so he wasn’t too worried about being laid off. Wayne, on the other hand, wasn’t so sure. Oh, he was also a great employee; he just didn’t trust the big company as much as Dave did. After all, he had several friends who had been laid off from other companies, and those friends felt safe, too – until the axe fell.

Wayne decided to refinance his home, just in case the layoffs came. In fact, he refinanced 100. Oh, and his new mortgage rate was 5 decline, which would represent a major correction), the buyer still got a great deal. And the bank got a bargain – they owned the house for $59,000 (the mortgage balance) and sold it for $99,000, a $40,000 gain. And Dave? Well, let’s just say Dave’s not really happy about living in his sister-in-law’s basement, penniless.

Oh, and what about Wayne? Let’s see. Wayne now owes $200,000 on his property, which is also valued at $200,000. He has a $140,000 savings account earning 5. His new side account, invested very safely and conservatively in a tax-free investment vehicle, is earning $583.33 a month (a 5% annual yield). So, Wayne has to take an additional $250.00 per month out of his $140,000 account in order to make his mortgage payment. Of course, his mortgage interest is tax-deductible, so he’ll get a $10,000 reduction in his income when tax time rolls around. Even with taxable unemployment compensation and any other odd-job income Wayne’s able to scrape up, he probably won’t be paying much (if anything) in taxes.

Unemployment compensation is taking care of groceries and other incidental expenses, and Wayne is staying in his home (which ultimately will continue to increase in value). By the way, even if Wayne did this for 15 years, he’d still have $73,000 in his side account. Sure, unemployment would run out, and maybe Wayne picks up a job at Wal-Mart to pay for his groceries and other household stuff. But ultimately, Wayne will get a job that puts him back in the saddle, and his side fund will grow, and grow, and grow – eventually so much that there’s more than enough in his side account to liquidate his mortgage, if he ever wanted or needed to.

So you tell me – as you pay down the principal balance of your home loan, either through your regular mortgage payments, or through paying extra money toward principal, do you feel like that equity you’re building up is ‘safe’ and ‘accessible’? Or, is it safer and more accessible if you keep it in a liquid side fund, where it also creates a return on your investment?

This former Mortgage Banker exposes bogus mortgage practices and helps consumers gain financial freedom. Visit www.g-money-blog.com for lots of excellent advice and information.

Create Wealth = Learn Leverage

2008-01-20T17:14:00.000-08:00

By Molly Chapman

Wealth Creation Strategies are talked about today more than ever. But, honestly, the entitlement mentality is epidemic, creating people who expect their countries, employers, or families to take care of them." "Why We Want You To Be Rich" by Trump and Kiyosaki.

Our conditioning and mindset are formed from childhood. We as children are conditioned to believe certain things and to follow the rules.

We are not told by our parents that we’ll need a plan to create wealth and we do not tell our children that they need to develop their own plan, their personal plan to create wealth. This doesn’t mean that you are not planning to share your wealth with your family, it means a plan to create wealth should be perpetual.

Why isn’t this in our educational system? Why don’t we start in grade school teaching about saving a penny every day for a lifetime? "… If the magic formula – how to make money – were taught in all public schools and colleges, …it would SO revolutionize the entire educational system that the time spent in school could be reduced to less than half!" Dale Carnegie as told in "Think and Grow Rich" by Napoleon Hill.

What are we doing to leverage our abundance? What are you doing? Are you out of debt?

We are conditioned from childhood not to rock the boat and not to take risk. If you are considering a plan to help you to create wealth and financial security for yourself and your family, you are in the minority my friend!

Most people just don’t think it’s possible because they have been conditioned since childhood to go to school and get a job, not create wealth or work for your self … much less creating an internet business.

Most people have been inhibited by their childhood indoctrination and their thinking gives them limited choices. Unless we believe we can have the things that we desire our indoctrination will continue to limit our choices, options and commit us to a life that is less fulfilling than we desire.

Without a plan to create wealth will never own the things we desire or so called luxury items. A plan to create wealth strategies requires personalized planning and strategy. Your plan to create wealth will succeed if you are successful in protecting your investment and investing in your self.

Listen, it’s not enough to just have your own home based business and your quest to create income. It’s SO much more than that. You must have a plan to make your money grow. I know what I’m talking about…. And I’m screaming silently to you now.

Because I was a financial planner a few years ago and I got involved in what I thought was the greatest investment product on the planet Folks, I helped my friends, family and myself lose a lot of money!!!!

It was devastating and I’m currently on a mission to make up for that…. This is so very important. OK, I’m calming down, but I’ll never quit telling people around me to pay attention, get educated and do your due diligence for your family and loved ones.

Make sure you pick up a copy of "Why We Want You to be Rich" by Donald Trump and Robert Kiyosaki….

Start today.

Carol Claassen, Life Style Mentor and Successful Entrepreneur, is helping many become the next success story. Whether you're looking to create an extra few thousand dollars per month, be an ex-corporate executive, or the next millionaire Mom, Carol can assist you to create a second stream of income and greater peace of mind. visit : Create Wealth

3 Myths About Saving

2008-01-20T10:13:00.000-08:00

By Dennis Harting

We are a nation of debtors. All the statistics over the past decade point to this. The savings rate is at an all-time low. At no point in our nation's history have we saved less money. At the same time, we also have used credit to supplement our spending, pushing this to an all-time high. The result is lots of people in financial turmoil. Unfortunately, part of reversing this dilemma is to begin putting some money away each week. Consistent saving of money is a habit that needs to be bred in all individuals if they hope to achieve financial independence. Of course, when you challenge people with this, they immediately begin to throw out the excuses. Some of these excuses are so prevalent that the majority of society believes them.

Here are the three biggest myths about saving money that people believe in:

1. I cannot afford to save money.

This is absolutely not true. Everyone can save something each week/month. The reason that individuals tend to spend everything that they have is because of habit. There are numerous ways to reduce expenses so as to have a little to put away. People often claim to be spending all that comes in. This is true in most instances. However, is it not possible to bring a bag lunch one day at the cost of a few dollars rather than going out. This will save somewhere between $4-$6 each time it is done. It becomes easy to put away $25.00 a month into a savings account when this is implemented.

Another aspect of savings that makes it really easy is the advent of direct deposit. Most companies offer this service to their employees. Typically, individuals have their entire pay check going into a single account-the checking account. Of course all bills are paid out of this. An easy way to alter this is to give the company a second account number. This account, a savings account, will receive a percentage of your pay; perhaps 5%. An interesting observation is that people do not even miss the money out of their checking account after a couple of weeks. It is also fun to watch the savings account grow over the course of months.

The two strategies make it fairly simple to save money on a regular basis. It basically requires a commitment to develop a new habit.

2. Just owning assets is the same as cash.

There is an old saying 'cash is king'. Nothing can beat having a lot of money in liquid form. There is simply no substitute. People who believe that having things that are worth a lot of money is what wealth is all about are misguided. It is true that owning assets are a vital part of financial success. However, having a net worth of $1 million is not the same as having a million dollars in cash. The primary benefit of assets is the cashflow that they throw off. Many people do not work a job because their assets throw off enough cash to cover their expenses.

The fallacy behind this belief is that often people do not own the assets they are referring to. Take real estate as an example. Those who claim to be wealthy when they add up the value of their properties often find themselves in trouble when market conditions change. This is because the bank truly owns the property. The mortgage needs to be paid in full before it can be considered an asset. Even after that occurs, there are taxes, insurance, and upkeep to be factored in. Also, if someone gets into a dire situation, it typically is not possible to turn real estate into cash. It is not a liquid asset. Cash is the one resource that will allow you to get through the difficult circumstances.

3. Saving will make me have to sacrifice the things that I want.

As mentioned, people spend more than they take in. When we factor the credit given to people, the average individual spends 110%-125% of what they earn. Obviously, that equates into a lot of interest paid over the course of time. Figuring the amount of interest of something bought on credit often runs into the thousands. Often the interest is equal to the original purchase price meaning that one paid double for the item. By saving money, one can pay for the larger ticket items such as furniture, a car, or vacations with cash. The savings in interest alone will more than pay for the 'sacrifices' you made. In reality, saving money does not hinder one's lifestyle; it actually provides freedom. Over time, you will not be without but rather enjoy more.

Refrain from buying into the myths about saving money. Shattering these beliefs will allow you to begin your path to financial freedom. It is the most basic component of investing. Setting a little aside each pay period will provide the resources to attain higher rates of returns. It will also reduce the stress and pressure that is common with the financially overextended lifestyle.

Dennis Harting is the Head Coach at Your Rich Life. He is an acclaimed speaker, trainer, and best-selling author. His international best selling books include Your Easiest Million and The Ultimate Procrastination Handbook. He also has had thousands of articles published worldwide.

Six Sure Fire Ways To Become Wealthy

2008-01-20T06:23:00.000-08:00

By Louie Frias

People in general, seem to fall into two groups when it comes to choice of action. They either act on impulse or on self-discipline. Knee-jerk reactions to any particular situation tend to lead to a life that veers out-of-control. Self-discipline is not a part-time endeavor. You need to be consistently focused: dabblers rarely stick with anything long enough to ever see results; which is why they're always on to "the next big thing". They're looking for success in all the wrong places. Success lies within. It's achieved NOT by hitting a home run, but singles, doubles and triples every time you're up to bat.

I'm going to share with you six ways to beat the odds and heavily load luck in your favor. Following these time tested universal "rules" will allow you the success you deserve.

1. Eliminate negativity from all around you.

Mental roadblocks are a major obstacle to people taking actionable steps to success. Here's a great example: Have you ever noticed when you have something the other party wants, your phone rings off the hook. BUT, if you need cooperation from the other party for anything necessary to make the deal happen, you're lucky if they ever take or return a phone call.

The point is clear: the more you have on the line, the more it's up to you to make things happen. Even if that means resorting to stepping up your degree of unpleasantries. Remember, the deal, your deal, is only important to you.

People are also going to bombard you with negative mental darts. These "bad seeds" make it very difficult to not think, "Maybe they're right. Maybe I can't or shouldn't be doing this.. It's a vicious cycle; the more you hear negative words, the more self-doubt you harbor. The more self-doubt you own, the easier it will be for you to just give in and give up. If you buy into this cycle, failure is imminent.

2. Accept failure as a stepping stone to mega-success.

Don't misunderstand, you WILL fail. We all do. The secret however, is to fail fast. But remember, the law of averages is on our side! If you ever wanted a friend to stick by you through thick or thin and wouldn't judge or criticize your efforts, and then REWARD you for keeping on, it's the law of averages!

3. Live in "today."

Yesterday is a cancelled check, tomorrow is a promissory note, but today is a gift. That's why it's called "the present". Who slighted you last week or last year, the possibility of prices going up next week are all irrelevant. You can't change the past but you can create and command YOUR future. How you respond to adversity and success determine how you will handle your life. What you do with each minute of each day of each week of each month of each year creates the report card of your life. While it's not necessary to get all "A's", it is a requirement to do the work.

4. Cultivate your Human Relationships.

Regardless of what you think, to get rich in the world, you need "other people". Whether that means a web designer, a marketing expert, a lawyer (yeech: IMHO they're a necessary evil in our society) or just someone to bounce ideas off. It's impossible to be an expert in all things relating to your business: it IS possible and advisable to have a working knowledge of all things so you don't get taken advantage of. (Ever know someone who hired a "expert" then it turned out the so-called "expert" was useless?) Best small piece of advice I can offer here is to live by KARMA...what you sow, so shall you reap.

5. Add enormous value to yourself.

If you feel you're not an "expert" on any particular topic, BECOME ONE. Today. Right now. Take immediate stock of yourself. Write down all the qualities you have to offer. More importantly, be completely honest with yourself and write down all your weaknesses. (Concentrating on improving your weaknesses will assure you of adding value to yourself.) Once you've added value to your self; give it away. You heard right. Keeping something valuable to yourself is a moral crime. You must build others with your knowledge. The more you give away, the more is returned. It's a universal law of the universe. Once you see someone benefit from what you've taught them, you'll then understand.

6. Take action.

Self-doubt is the number one obstacle to overcoming adversity. To achieve success, you must endure and conquer adversity. Like building muscle, work comes before results. In order to carry on in the face of adversity, you must have a clear and worthy goal. It must be challenging enough to cause you great effort to achieve. Once you achieve it, self-confidence starts growing muscles. Now that muscle needs to be challenged everyday to promote growth and stave off disease; (negativity).Very important to realize, taking no action is also an action.