Money's tight, times are hard. We've all been there at one time or another. Ends just don't meet. You need a quick infusion of cash. Here are some easy money making ideas to put a few extra dollars in you pocket.
Take inventory of all your stuff. Put aside each item that you can part with. Look for stuff that you can replace later when your finances pick up but aren't doing you any good right now. You need to be pretty severe with your choices. Beg or borrow a digital camera and start taking pictures of each individual item and list them for sale on eBay. You want a really large assortment of things to sell, because they won't all sell, you'll more than likely have some duds.
You can also offer this as a service for others in your area. Post flyers around town noting how successful your auctions have been, include some photographs and your email address/contact info. You can either list each product for a fee or take a percentage of the selling price.
I've said it on other pages here but it bears repeating. Write. Simple, well written 350 word articles written about a popular subject can pull in $5+ each at Associated Content. It's possible to crank out ten to fifteen of them in a day. Those articles can then be recycled as blog posts or website pages.
If you can afford it, buy a domain name and hosting for your site. That way, if your site does start making money, you can offer it for sale. Those free sites belong to the owner of the site (although I have heard of squidoo lenses being 'transferred' for a fee).
Sign up with clickbank.com and promote their products as an affiliate. If you can't afford your own site, use free sites like blogger and squidoo. Build those blogs or pages with your previously sold articles (remember to keep the rights to your articles when you sell them) and set up AdSense on them if its allowed by the site owners' terms of service.
Re-write your articles with a new introduction and conclusion. Reword the middle paragraphs a bit and submit them to free article directories with links back to your free blogs where you have your affiliate links and advertising. Use social bookmarking and networking to create more links and traffic.
With a little thought, and some work, you can create money online with these and other resources. Investigate thoroughly any claims that you can earn hundreds or thousands in a few days after 'joining' a program. It's best to keep your hand on your wallet while you check those offers out.
You'll find dozens of great money making ideas at http://goodmoneymakingideas.com/ Pick the best Money Making Ideas and get started today.
Article Source: http://EzineArticles.com/?expert=Patrick_Day
Friday, 8 May 2009
Financial Independence Day
What Does It Mean? How Can You Achieve It?
In the United States, Independence Day, commonly known as the Fourth of July is a federal holiday. It commemorates the adoption of the Declaration of Independence on July 4th 1776, declaring independence from the Kingdom of Great Britain.
Financial Independence Day is also celebrated on different days and in different years for each individual and family.
It is a simple concept. You wake up one morning, and you decide to go to work, based solely on the love for the job. You have enough money tucked away so that your personal income needs are satisfied without receiving a paycheck from a job.
Current Conditions on Financial Independence
The numbers are scary on how few people in the United States are financially independent. According to a study conducted by ING, one of the largest financial institutions, over 90% of baby boomers in the U.S. will not retire financially independent. This means that 90% of retirees will be dependent upon the government, family, or continued employment to survive.
How Do You Achieve Financial Independence?
Thousand of articles and hundreds of books have been written over the years on creating wealth. Many financial advisors and planners claim they have the right education, tools, and advice to help you become financially independent. What if you have been following their advice for some time and it hasn't achieved the results you wanted? What should you do? It gets very confusing. Who do you trust? Have you been sold products based on the highest profits for the firm? Where do you go to get concise, documented and accurate information that you can rely on to make decisions?
Follow the Crowd Thinking
Albert Einstein is reported to have said "the definition of insanity is doing the same thing over and over and expecting different results." Traditional "following the crowd thinking" on creating wealth is usually centered on four key concepts.
* Find better products with better rates of return.
* Reduce current lifestyle so you can save more.
* Maximize contributions to Qualified Retirement Plans.
* Pay-off the mortgage debt on your home as soon as possible.
If you are following these concepts you may be delaying your Financial Independence Day.
Uncommon Thinking
General George Patton Jr. was quoted as saying "if everyone is thinking alike, someone is not thinking." Moving towards your Financial Independence Day requires uncommon thinking. Following the crowd may not give you the results you desire. You will want to move in another direction.
The First Step - Focus on Personal Wealth Transfers not Rates of Return
Personal Wealth Transfers are a major problem for most of us, and are usually overlooked by advisors.
This is money you may be transferring out of your wealth account unnecessarily and without knowledge. This can be a huge obstacle for creating wealth and obtaining financial independence.
Three areas where Personal Wealth Transfers occur:
* Personal Protection (Insurance & Lack of or Poorly Structured Legal Documents)
* Expenses
* Taxes
Six things you need to know about Personal Wealth Transfers:
* They are hidden. You have to dig to find them.
* They are a liability. The liability can be a current or potential liability.
* They can be a huge obstacle to creating wealth and obtaining your financial independence.
* They hinder improving personal cash flow.
* Most advisors do not know they exist and do not deal with them.
* They can be corrected.
Personal Wealth Transfers & Lost Opportunity Costs
Personal Wealth Transfers are always accompanied with Lost Opportunity Cost. Lost Opportunity Cost is an important term and may not be one that is familiar.
Basically it represents the interest you could have earned on a given amount, had you been able to avoid losing it or transferring it away. A dollar paid in taxes or expenses unnecessarily not only costs you that dollar but it also costs you what the dollar could have earned had you not given it away.
An example - Let's assume you were able to find $1,000 in tax savings on your income tax because you understated your expenses. Let's also assume you were able to do this each year for the next 25 years. The savings would be $1,000 x 25 years or $25,000.
But, that is only part of the story. If you were able to save the money at invest it in a tax favored account at 5% the actual savings would be $25,000 %2B $25,113 in interest earned or $50,113 over the 25 year period. The opportunity cost is 50% of the total savings.
Summary
Financial Independence Day is achievable for all us. It only requires an open mind and uncommon thinking. Focusing on finding better financial products with better rates of return doesn't work and is not the answer to financial independence. The first step and most important step is finding the hidden Personal Wealth Transfers and taking action to correct them. We will be discussing more details on Financial Independence Day in upcoming articles.
Terrance O'Brien, President
We guide our clients through the complex and often confusing financial information highway. Our focus is recapturing wealth you may be losing unnecessarily and unknowingly. Recaptured wealth may have a huge impact on you personal financial net worth.
Visit my website to learn more http://www.wealthandsafety.com
Article Source: http://EzineArticles.com/?expert=Terrance_J._O'Brien
In the United States, Independence Day, commonly known as the Fourth of July is a federal holiday. It commemorates the adoption of the Declaration of Independence on July 4th 1776, declaring independence from the Kingdom of Great Britain.
Financial Independence Day is also celebrated on different days and in different years for each individual and family.
It is a simple concept. You wake up one morning, and you decide to go to work, based solely on the love for the job. You have enough money tucked away so that your personal income needs are satisfied without receiving a paycheck from a job.
Current Conditions on Financial Independence
The numbers are scary on how few people in the United States are financially independent. According to a study conducted by ING, one of the largest financial institutions, over 90% of baby boomers in the U.S. will not retire financially independent. This means that 90% of retirees will be dependent upon the government, family, or continued employment to survive.
How Do You Achieve Financial Independence?
Thousand of articles and hundreds of books have been written over the years on creating wealth. Many financial advisors and planners claim they have the right education, tools, and advice to help you become financially independent. What if you have been following their advice for some time and it hasn't achieved the results you wanted? What should you do? It gets very confusing. Who do you trust? Have you been sold products based on the highest profits for the firm? Where do you go to get concise, documented and accurate information that you can rely on to make decisions?
Follow the Crowd Thinking
Albert Einstein is reported to have said "the definition of insanity is doing the same thing over and over and expecting different results." Traditional "following the crowd thinking" on creating wealth is usually centered on four key concepts.
* Find better products with better rates of return.
* Reduce current lifestyle so you can save more.
* Maximize contributions to Qualified Retirement Plans.
* Pay-off the mortgage debt on your home as soon as possible.
If you are following these concepts you may be delaying your Financial Independence Day.
Uncommon Thinking
General George Patton Jr. was quoted as saying "if everyone is thinking alike, someone is not thinking." Moving towards your Financial Independence Day requires uncommon thinking. Following the crowd may not give you the results you desire. You will want to move in another direction.
The First Step - Focus on Personal Wealth Transfers not Rates of Return
Personal Wealth Transfers are a major problem for most of us, and are usually overlooked by advisors.
This is money you may be transferring out of your wealth account unnecessarily and without knowledge. This can be a huge obstacle for creating wealth and obtaining financial independence.
Three areas where Personal Wealth Transfers occur:
* Personal Protection (Insurance & Lack of or Poorly Structured Legal Documents)
* Expenses
* Taxes
Six things you need to know about Personal Wealth Transfers:
* They are hidden. You have to dig to find them.
* They are a liability. The liability can be a current or potential liability.
* They can be a huge obstacle to creating wealth and obtaining your financial independence.
* They hinder improving personal cash flow.
* Most advisors do not know they exist and do not deal with them.
* They can be corrected.
Personal Wealth Transfers & Lost Opportunity Costs
Personal Wealth Transfers are always accompanied with Lost Opportunity Cost. Lost Opportunity Cost is an important term and may not be one that is familiar.
Basically it represents the interest you could have earned on a given amount, had you been able to avoid losing it or transferring it away. A dollar paid in taxes or expenses unnecessarily not only costs you that dollar but it also costs you what the dollar could have earned had you not given it away.
An example - Let's assume you were able to find $1,000 in tax savings on your income tax because you understated your expenses. Let's also assume you were able to do this each year for the next 25 years. The savings would be $1,000 x 25 years or $25,000.
But, that is only part of the story. If you were able to save the money at invest it in a tax favored account at 5% the actual savings would be $25,000 %2B $25,113 in interest earned or $50,113 over the 25 year period. The opportunity cost is 50% of the total savings.
Summary
Financial Independence Day is achievable for all us. It only requires an open mind and uncommon thinking. Focusing on finding better financial products with better rates of return doesn't work and is not the answer to financial independence. The first step and most important step is finding the hidden Personal Wealth Transfers and taking action to correct them. We will be discussing more details on Financial Independence Day in upcoming articles.
Terrance O'Brien, President
We guide our clients through the complex and often confusing financial information highway. Our focus is recapturing wealth you may be losing unnecessarily and unknowingly. Recaptured wealth may have a huge impact on you personal financial net worth.
Visit my website to learn more http://www.wealthandsafety.com
Article Source: http://EzineArticles.com/?expert=Terrance_J._O'Brien
Making More Money is Hard - Make it EASY
One of the most common problems that people have is that it is hard to make more money. Especially now with the economy being the way that it is, more and more people are having a hard time really figuring out what they can do to bring in a larger cash flow. It seems as if almost anyone that you talk to is in a cash crunch right at the moment. So, how can you make it easier FOR YOU?
With all of the pessimism that is swirling around on the news and on Main Street, it is very easy to get caught up in the cliches of how terrible it is and how hard it might be to bring in an extra income, but you have to get out of that state of mind. It may seem counter-intuitive, but that is really a necessary first step.
RIGHT NOW YOU COULD BE MAKING MORE MONEY...
I have found that more and more money is flowing to me now than ever. And that goes against what most people think and even how I used to as well. But, then I discovered that there were many opportunities to bring in more dollars than I ever knew were possible. I only figured that out however after I had decided to let go of my past thoughts about earning an income and started to accept a new way of thinking.
You can too. Make it easier on yourself. Let go of those old ideas and accept some new ones. After all, it is your financial future that is at stake.
Want to learn more?
Learn how to: Attract Love, Money, Happiness or ALL Three!
Go to http://www.successfulfather.com/signup/ and SIGN up for the FREE newsletter and BOOKMARK the site and return as often as you can!
You can attract the life that you truly desire! Learn HOW! Free Lessons By E-mail and SO MUCH MORE...
You can publish this article as long as you leave it intact and in full as well as keeping the url link clickable.
Article Source: http://EzineArticles.com/?expert=Bryan_Appleton
With all of the pessimism that is swirling around on the news and on Main Street, it is very easy to get caught up in the cliches of how terrible it is and how hard it might be to bring in an extra income, but you have to get out of that state of mind. It may seem counter-intuitive, but that is really a necessary first step.
RIGHT NOW YOU COULD BE MAKING MORE MONEY...
I have found that more and more money is flowing to me now than ever. And that goes against what most people think and even how I used to as well. But, then I discovered that there were many opportunities to bring in more dollars than I ever knew were possible. I only figured that out however after I had decided to let go of my past thoughts about earning an income and started to accept a new way of thinking.
You can too. Make it easier on yourself. Let go of those old ideas and accept some new ones. After all, it is your financial future that is at stake.
Want to learn more?
Learn how to: Attract Love, Money, Happiness or ALL Three!
Go to http://www.successfulfather.com/signup/ and SIGN up for the FREE newsletter and BOOKMARK the site and return as often as you can!
You can attract the life that you truly desire! Learn HOW! Free Lessons By E-mail and SO MUCH MORE...
You can publish this article as long as you leave it intact and in full as well as keeping the url link clickable.
Article Source: http://EzineArticles.com/?expert=Bryan_Appleton
Two Great Tastes that Taste Great Together
What if I were to tell you that almost everything you have been told about what to do with your home has been absolutely wrong and that one of the worst ways to build wealth is through your home? And what if I further went on to show you that anyone who perpetuates this myth probably is not your best source for accurate financial information?
Most of you right now are looking at the byline a couple of times to see if this article is REALLY being written by a mortgage person. Some of you have taken this as final, unequivocal proof that all mortgage people really do sit around a big table of tea cups wearing hats with fractions on them! No you are not in Wonderland but if you keep reading you might find many of you have been for a long time now.
One of the buzzwords or catch phrases floating around the financial circles is "wealth creation." This has gained prominence due to the ability of the planner or agent to broaden their focus on overall wealth with their clients instead of just return on a particular investment. While a holistic approach is a very good one, what wealth creation strategies often lack are a defined strategy for accomplishing well, wealth creation! These plans often fail or vastly under perform because they don't properly account for one of the biggest parts of the wealth picture and that's the home!
WHAT DID HE SAY?
Now that's not a typo and I didn't contradict myself from the first paragraph. You see, most people believe their home is something completely separate from the rest of their financial planning. It's this sacred cow that's over in the green grass munching away while everything else in their financial life is trying to figure out how to grow without the food it needs. The sooner people realize that EVERYTHING they do is an investment decision , the better off they will be. The implication of your decision is not simply what you obtain by your action but what opportunity you give up.
So, back to wealth creation and mortgage planning. In borrowing some thoughts from a great financial partner of mine, Brent Gilmore, we can summarize what we typically look for as far as characteristics of a good investment as:
* something that earns us a good return based on our risk
* is liquid if we need it
* is not subject to additional restriction to access it once we have it
* is not at risk of loss.
The reality is your home is absolutely not the definition of a good investment. The reasons are fairly clear if we break them down. What if I told you the MAXIMUM return you could make on the purchase of your home was 0%?
Here's where we hit the rabbit hole.
First we must explain the difference between return of investment and return on investment. Return OF investment is simply getting back the money that you put in. Return ON investment is difference between the end value of your investment and the amount you invested.
Whether you pay cash for your home or pay nothing down, your home mortgage will be worth the exact same in 1 year, 5 years, 10 years or 30 years. It is true that if values keep going up you will make a positive return ON investment but that is independent of the return OF your investment. Even that fact has some doubt clouding it, but that's another article.
PAGING CHICKEN LITTLE
Now let's step back from all of the sky is falling stuff and clear some things up. Your house may well continue to appreciate in value, especially in a strong local economy like Columbus . But appreciation as I showed you above has absolutely nothing to do with return OF capital . Remember that if you bought a $300,000 house today, paid cash for it and turned around in 1 year and sold it for $350,000 you would have experienced the same appreciation as if you had put $0 down to buy the house. Your $300,000 was invested in an asset that yielded 0% during its use.
The key to this is that when you pay your mortgage you "choose" to invest the money in your home instead of in other options that could return you more . Lets Consider the consequences of not being able to pay that mortgage one day:
* Will the bank give you back the money you paid on the mortgage and all of the appreciation when they sell your house in foreclosure?
* Will they lend you more to help you get back on your feet at terms as good or better then you have now?
* And will they do it without asking you to prove your ability to repay the new loan when you couldn't pay the old one?
Sounds silly, but this is what happens all the time.
Now wait, you say, I have a paper that shows me that if I pay twice per month I will pay off my mortgage 8 years sooner and save $84,000 in interest! You are right, you will. BUT is it a good choice if that money that you borrowed at 4% (After factoring in tax savings on the interest) could be returning you more, guaranteed , elsewhere? Consider other factors as well:
* Are you making those payments and carrying "bad" debt like credit cards at 15%?
* Are you finding it hard to put in enough in your 401k to even get the match your employer offers?
* Are you funding the Roth IRA or the kids 529 college savings plan?
We aren't even touching on the implications of eliminating or reducing your tax deduction and increasing your overall tax burden.
TO PAY OFF OR NOT TO PAY OFF , THAT IS THE QUESTION
Let's look at the positive outcomes of paying off your mortgage versus keeping it.
You no longer have to make a mortgage payment to the bank every month.
You might have less to pay at retirement.
And that's about it. Now, notice I didn't say anything about the myth that you finally "own" your home. In truth you never do, you always have to pay taxes on it and it is always at risk of loss through various means including but not limited to:
* Taxes
* Creditors
* Casualty Loss
In just about any analysis where someone is using the money that they would otherwise use to pay down the principal of their mortgage for other means of wealth creation, the other 'means' come out ahead every time. The requirement here is to spurn our human instinct to consume and to use this money effectively.
Notice that this is the key to wealth creation. If you can't conquer that human instinct nothing else matters. What this allows you to do is to use dollars you are already spending and inject them into the system to your advantage.
The simple truth is that paying off your mortgage is purely an emotional decision that we have been trained to believe is what we are supposed to do, but if you understand the implications of the decision and can act accordingly, that choice is usually incorrect.
DON'T PAY ATTENTION TO THE MAN BEHIND THE CURTAIN
Now you say, this is just a clever trick by another mortgage guy trying to make money off of me. Well, typically consumers refinance every 3 years and many times that is because they need money . But clients who have invested that money into the other elements of their financial plan are much less likely to refinance for need reasons.
People borrow for car expenditures, home improvements, college expenses, trips or to pay off that credit card debt they said they would never run up again. People who are planning for these expenses and finding tax preferred or tax free ways to fund them with the money tied up in their home have little need to make decisions based on these "needs".
OK, GREAT . NOW WHAT
There are all kinds of different mortgage products and programs that can make a consumer's head spin. The important thing to keep in mind is that most of them are wrong on almost all levels. If you are looking for wealth creation a home is a great part of that plan if used correctly. That does NOT mean you go out a get an interest only ARM so you can buy a $400,000 house when you otherwise could only afford a $200,000 house.
For many families they want to invest in the college savings. They want to have more than $50,000 in life insurance that their employer gives them. They want to protect against disability or job loss. They want so many things but don't know how to find it in the pool of money that they currently have available. Does it mean they give up? Often, that is the case but it doesn't have to be.
It means that you look at opportunities in the equity that isn't doing anything for you now and put it to use along with reallocating dollars you are already spending. The mortgage vehicle you use is independent of this choice and only your situation will determine which one is best for you. For most this is all that is necessary to see a million dollar or more difference at retirement. For others who are closer to an age where you will cease to earn income it is necessary to change current spending habits along with these measures.
These ideas that I have very briefly touched on are ones that need to be explored on an individual and ongoing basis with a team of financial professionals who understand how to help make this work for you. This is not one of those "plans" with steps that you can follow from a book on your own and in 20 years a golden goose lays you some precious eggs. Coordinating 401(k), Roth IRA, investments, permanent life insurance, wills and trusts is something that needs much more discussion than is prudent here and frankly with people who are much more qualified to tell you than me.
It is time to think of your mortgage and your home as more than the place where you and your family make great memories. If you allow it to work as part of a total responsible financial philosophy it can be an incredible wealth booster. With so many choices in all areas of finance it is imperative that you find a group of professionals that hold those same beliefs and values. Easier said than done, I know. I know because that is exactly what we have been doing for over a year in Columbus exclusively for our clients.
This, admittedly, is not for everyone and some of you might have even stopped reading by now because you think I am obviously out of my mind. That's ok, because changing that human instinct to hurry up and pay down a mortgage is difficult. But for those of you who have had their eyes opened, hopefully I have provided you with enough food for thought that you're starting to reconsider how your mortgage is working for you.
For more on home financing and personal financial information go to: http://www.RightWayunlimited.com. Articles, calculators, newsletters, glossaries and more for your personal financial information needs.
by Jeff Blovits , Franklin Bank SSB
p. 898-5656
Http://www.Rightwayunlimited.com - Personal Financial Information resource for consumers.
About The Author
Copyright RightWay Unlimited LLC, 2004.
Most of you right now are looking at the byline a couple of times to see if this article is REALLY being written by a mortgage person. Some of you have taken this as final, unequivocal proof that all mortgage people really do sit around a big table of tea cups wearing hats with fractions on them! No you are not in Wonderland but if you keep reading you might find many of you have been for a long time now.
One of the buzzwords or catch phrases floating around the financial circles is "wealth creation." This has gained prominence due to the ability of the planner or agent to broaden their focus on overall wealth with their clients instead of just return on a particular investment. While a holistic approach is a very good one, what wealth creation strategies often lack are a defined strategy for accomplishing well, wealth creation! These plans often fail or vastly under perform because they don't properly account for one of the biggest parts of the wealth picture and that's the home!
WHAT DID HE SAY?
Now that's not a typo and I didn't contradict myself from the first paragraph. You see, most people believe their home is something completely separate from the rest of their financial planning. It's this sacred cow that's over in the green grass munching away while everything else in their financial life is trying to figure out how to grow without the food it needs. The sooner people realize that EVERYTHING they do is an investment decision , the better off they will be. The implication of your decision is not simply what you obtain by your action but what opportunity you give up.
So, back to wealth creation and mortgage planning. In borrowing some thoughts from a great financial partner of mine, Brent Gilmore, we can summarize what we typically look for as far as characteristics of a good investment as:
* something that earns us a good return based on our risk
* is liquid if we need it
* is not subject to additional restriction to access it once we have it
* is not at risk of loss.
The reality is your home is absolutely not the definition of a good investment. The reasons are fairly clear if we break them down. What if I told you the MAXIMUM return you could make on the purchase of your home was 0%?
Here's where we hit the rabbit hole.
First we must explain the difference between return of investment and return on investment. Return OF investment is simply getting back the money that you put in. Return ON investment is difference between the end value of your investment and the amount you invested.
Whether you pay cash for your home or pay nothing down, your home mortgage will be worth the exact same in 1 year, 5 years, 10 years or 30 years. It is true that if values keep going up you will make a positive return ON investment but that is independent of the return OF your investment. Even that fact has some doubt clouding it, but that's another article.
PAGING CHICKEN LITTLE
Now let's step back from all of the sky is falling stuff and clear some things up. Your house may well continue to appreciate in value, especially in a strong local economy like Columbus . But appreciation as I showed you above has absolutely nothing to do with return OF capital . Remember that if you bought a $300,000 house today, paid cash for it and turned around in 1 year and sold it for $350,000 you would have experienced the same appreciation as if you had put $0 down to buy the house. Your $300,000 was invested in an asset that yielded 0% during its use.
The key to this is that when you pay your mortgage you "choose" to invest the money in your home instead of in other options that could return you more . Lets Consider the consequences of not being able to pay that mortgage one day:
* Will the bank give you back the money you paid on the mortgage and all of the appreciation when they sell your house in foreclosure?
* Will they lend you more to help you get back on your feet at terms as good or better then you have now?
* And will they do it without asking you to prove your ability to repay the new loan when you couldn't pay the old one?
Sounds silly, but this is what happens all the time.
Now wait, you say, I have a paper that shows me that if I pay twice per month I will pay off my mortgage 8 years sooner and save $84,000 in interest! You are right, you will. BUT is it a good choice if that money that you borrowed at 4% (After factoring in tax savings on the interest) could be returning you more, guaranteed , elsewhere? Consider other factors as well:
* Are you making those payments and carrying "bad" debt like credit cards at 15%?
* Are you finding it hard to put in enough in your 401k to even get the match your employer offers?
* Are you funding the Roth IRA or the kids 529 college savings plan?
We aren't even touching on the implications of eliminating or reducing your tax deduction and increasing your overall tax burden.
TO PAY OFF OR NOT TO PAY OFF , THAT IS THE QUESTION
Let's look at the positive outcomes of paying off your mortgage versus keeping it.
You no longer have to make a mortgage payment to the bank every month.
You might have less to pay at retirement.
And that's about it. Now, notice I didn't say anything about the myth that you finally "own" your home. In truth you never do, you always have to pay taxes on it and it is always at risk of loss through various means including but not limited to:
* Taxes
* Creditors
* Casualty Loss
In just about any analysis where someone is using the money that they would otherwise use to pay down the principal of their mortgage for other means of wealth creation, the other 'means' come out ahead every time. The requirement here is to spurn our human instinct to consume and to use this money effectively.
Notice that this is the key to wealth creation. If you can't conquer that human instinct nothing else matters. What this allows you to do is to use dollars you are already spending and inject them into the system to your advantage.
The simple truth is that paying off your mortgage is purely an emotional decision that we have been trained to believe is what we are supposed to do, but if you understand the implications of the decision and can act accordingly, that choice is usually incorrect.
DON'T PAY ATTENTION TO THE MAN BEHIND THE CURTAIN
Now you say, this is just a clever trick by another mortgage guy trying to make money off of me. Well, typically consumers refinance every 3 years and many times that is because they need money . But clients who have invested that money into the other elements of their financial plan are much less likely to refinance for need reasons.
People borrow for car expenditures, home improvements, college expenses, trips or to pay off that credit card debt they said they would never run up again. People who are planning for these expenses and finding tax preferred or tax free ways to fund them with the money tied up in their home have little need to make decisions based on these "needs".
OK, GREAT . NOW WHAT
There are all kinds of different mortgage products and programs that can make a consumer's head spin. The important thing to keep in mind is that most of them are wrong on almost all levels. If you are looking for wealth creation a home is a great part of that plan if used correctly. That does NOT mean you go out a get an interest only ARM so you can buy a $400,000 house when you otherwise could only afford a $200,000 house.
For many families they want to invest in the college savings. They want to have more than $50,000 in life insurance that their employer gives them. They want to protect against disability or job loss. They want so many things but don't know how to find it in the pool of money that they currently have available. Does it mean they give up? Often, that is the case but it doesn't have to be.
It means that you look at opportunities in the equity that isn't doing anything for you now and put it to use along with reallocating dollars you are already spending. The mortgage vehicle you use is independent of this choice and only your situation will determine which one is best for you. For most this is all that is necessary to see a million dollar or more difference at retirement. For others who are closer to an age where you will cease to earn income it is necessary to change current spending habits along with these measures.
These ideas that I have very briefly touched on are ones that need to be explored on an individual and ongoing basis with a team of financial professionals who understand how to help make this work for you. This is not one of those "plans" with steps that you can follow from a book on your own and in 20 years a golden goose lays you some precious eggs. Coordinating 401(k), Roth IRA, investments, permanent life insurance, wills and trusts is something that needs much more discussion than is prudent here and frankly with people who are much more qualified to tell you than me.
It is time to think of your mortgage and your home as more than the place where you and your family make great memories. If you allow it to work as part of a total responsible financial philosophy it can be an incredible wealth booster. With so many choices in all areas of finance it is imperative that you find a group of professionals that hold those same beliefs and values. Easier said than done, I know. I know because that is exactly what we have been doing for over a year in Columbus exclusively for our clients.
This, admittedly, is not for everyone and some of you might have even stopped reading by now because you think I am obviously out of my mind. That's ok, because changing that human instinct to hurry up and pay down a mortgage is difficult. But for those of you who have had their eyes opened, hopefully I have provided you with enough food for thought that you're starting to reconsider how your mortgage is working for you.
For more on home financing and personal financial information go to: http://www.RightWayunlimited.com. Articles, calculators, newsletters, glossaries and more for your personal financial information needs.
by Jeff Blovits , Franklin Bank SSB
p. 898-5656
Http://www.Rightwayunlimited.com - Personal Financial Information resource for consumers.
About The Author
Copyright RightWay Unlimited LLC, 2004.
Seven Secrets to Wealth Creation
Wealth creation is not a matter of luck it is the result of applying an appropriate strategy. Here are seven wealth building secrets that can help you put together your own winning strategy to increase YOUR personal wealth.
Secret 1: Have a Strong Reason To Become Wealthy
You need a stronger motivator than the money. What is the real benefit that you will receive from becoming wealthy? How will your life change for the better? Unless you have an emotionally strong reason to become wealthy, you are unlikely to do what it takes.
Remember that mediocrity in the western world is a pretty good lifestyle and it's easy to achieve. You need some special potential benefit to get you to go the extra mile and achieve wealth.
Secret 2: Find a Strong Market Place
Your wealth has to come from somewhere and that somewhere is called the marketplace. What marketplace are you targeting?
It is important that you choose a marketplace that is strong enough and healthy enough to provide you with all the opportunity you need in order to reach your financial goals.
Secret 3: Have a Strong Vehicle
How are you going to tap into that strong marketplace? You need to have a vehicle that has the potential for providing the results you seek. The vehicle needs to be strong enough that it will do the job you are asking of it, both now and for a reasonable time into the future, regardless of how the market is changing.
Secret 4: Develop or Hire Strong Knowledge
Applied knowledge is power. If you are going to take your vehicle to the heights it needs to achieve in order to provide you with wealth, then you must have the knowledge of how to do that. Some knowledge you need to have yourself and other knowledge you can hire in the form of employees or outsourcing.
What knowledge do you need to add to your knowledge bank and where are you going to get it?
Secret 5: Develop and Tap Into a Strong Network
Nobody gets rich on their own. You need a strong network of contacts, each of whom will play their role in your journey to riches.
Your will need a network of people to help you stay on track. A network to brainstorm with. A network to help you market your vehicle. What is your current network like? Do you have good relationships with all the people who can help you achieve your goals? If not where are you going to find them and how are you going to recruit them into your network?
Secret 6: Have a Strong Risk Management Strategy
The self-made rich don't avoid risk, like the average person does; they find ways to manage risk. When you know why you are becoming wealthy, and you have the right market place and the right vehicle, make sure you also have a strong risk management plan to keep it all on track.
Secret 7: Have a Strong Commitment to Your Success
The last secret, and the most important behind knowing why, is to have a strong commitment to succeeding. Your commitment has to be unshakable. You are highly likely to meet with obstacles along the way and some of them may be very challenging. The thing that will get you over, around, or through those obstacles is a strong, unwavering commitment to achieving your goals.
Now that you have the seven secrets it is up to you to assess how you stand currently on each one, and then to do whatever it takes to bring yourself up to speed so that you will enjoy the fruits of your own wealth creation.
Secret 1: Have a Strong Reason To Become Wealthy
You need a stronger motivator than the money. What is the real benefit that you will receive from becoming wealthy? How will your life change for the better? Unless you have an emotionally strong reason to become wealthy, you are unlikely to do what it takes.
Remember that mediocrity in the western world is a pretty good lifestyle and it's easy to achieve. You need some special potential benefit to get you to go the extra mile and achieve wealth.
Secret 2: Find a Strong Market Place
Your wealth has to come from somewhere and that somewhere is called the marketplace. What marketplace are you targeting?
It is important that you choose a marketplace that is strong enough and healthy enough to provide you with all the opportunity you need in order to reach your financial goals.
Secret 3: Have a Strong Vehicle
How are you going to tap into that strong marketplace? You need to have a vehicle that has the potential for providing the results you seek. The vehicle needs to be strong enough that it will do the job you are asking of it, both now and for a reasonable time into the future, regardless of how the market is changing.
Secret 4: Develop or Hire Strong Knowledge
Applied knowledge is power. If you are going to take your vehicle to the heights it needs to achieve in order to provide you with wealth, then you must have the knowledge of how to do that. Some knowledge you need to have yourself and other knowledge you can hire in the form of employees or outsourcing.
What knowledge do you need to add to your knowledge bank and where are you going to get it?
Secret 5: Develop and Tap Into a Strong Network
Nobody gets rich on their own. You need a strong network of contacts, each of whom will play their role in your journey to riches.
Your will need a network of people to help you stay on track. A network to brainstorm with. A network to help you market your vehicle. What is your current network like? Do you have good relationships with all the people who can help you achieve your goals? If not where are you going to find them and how are you going to recruit them into your network?
Secret 6: Have a Strong Risk Management Strategy
The self-made rich don't avoid risk, like the average person does; they find ways to manage risk. When you know why you are becoming wealthy, and you have the right market place and the right vehicle, make sure you also have a strong risk management plan to keep it all on track.
Secret 7: Have a Strong Commitment to Your Success
The last secret, and the most important behind knowing why, is to have a strong commitment to succeeding. Your commitment has to be unshakable. You are highly likely to meet with obstacles along the way and some of them may be very challenging. The thing that will get you over, around, or through those obstacles is a strong, unwavering commitment to achieving your goals.
Now that you have the seven secrets it is up to you to assess how you stand currently on each one, and then to do whatever it takes to bring yourself up to speed so that you will enjoy the fruits of your own wealth creation.
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