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Get Off Your Butt and Create Your Financial Future…Now!Lorraine Pirihi Most people have no idea where their money goes. They earn it and they spend it. Thats fine if you want to live from week to week and are not concerned about your financial future. However if you want to increase your wealth and have more options, action needs to be taken by you otherwise you could end up like most people further down the track, totally dependant on a pension. Karens Story Karen is the Marketing Manager for a well-known organisation. Shes 39 yrs old, single and earns over $80k a year. She is paying off a mortgage and thats all the debt she has. Karen buys whatever she likes and says she has more than enough money for her lifestyle…or so she thought. And thats a very important point - Karen thought she had plenty of money to splash around yet she had no real idea of where it went. She was at the stage where she wanted to achieve more in her life including taking charge of her financial future. One of the exercises I gave her to do was to sort all her financial statements - visa card, bank accounts and any cash receipts and list her income and expenditure under specific headings ie: loans, clothing, utilities, food etc. Karen recorded everything that occurred for the past 6 months . She nearly fainted when she saw how much money she had wasted and how much she was overspending! She was going backwards fast and only realised it by doing this simple exercise. In the past Karen hadnt put a high priority on her financial well-being as it was just too hard. Being a marketing manager, her life was busy at work and she had a hectic social life. She didnt want to bother doing something that wasnt exciting like working on her financial future. After all, she had a well-paid job, didnt she Karen has now come to her senses and knows her true financial situation. If she lost her job, financially she couldnt afford to be off work for more than a month. She realises that she is responsible for her future. The area of wealth creation hadnt been of great interest to Karen in the past. Now that she was undertaking coaching, she was serious to making a change. Prior to writing down where her money was going, Karen was completely closed to any suggestion to read more about how she can accelerate her wealth or lack of it, so I didnt pursue this with her. Her attitude had now changed so she was ready and willing to move to the next step. The next move…I referred Karen to an organisation who would look at her total financial picture and be able to recommend what she could do. The reason I chose these people is because they take a holistic approach to wealth creation. They look at every aspect and provide an on-going education as well as a hand-holding service. We met after her first session and Karen said she nearly had a heart attack at the meeting. She realised how much money she had been giving away to the tax office. Being on such a high income she was being taxed 47c for every dollar earned. She now realised that by making some small changes she could keep this money and have investments that over time would accelerate her financial situation dramatically. She now had enough knowledge to make decisions and take actions that could make her financially independent over the next few years. Karen couldnt believe how simple it was! Your Financial Future - Whos Responsibility Unfortunately you cannot leave your financial well-being in the hands of anyone else except yourself. Of course, you can seek advice from professionals in that field like accountants and financial planners; however, it really is up to you to lead the way …to be proactive! Having attended many seminars, spoken to wealthy people and to the financial professionals many of whom arent independently wealthy themselves, and read many books on the topic of wealth creation, I have found you cannot rely on any one person to delegate your financial affairs to. You need to be proactive and take control of your own life. How to Take Control of Your Financial Future Get your finances in order first: You need to know what you spend, what you earn, how much you owe and how much you own…Not in your head but in writing. What you think your situation is and what is reality, will more than likely be two totally different scenarios. If you know where you are right now you can then seek out appropriate solutions to your specific financial needs. How to Get Started Speak with your accountant on the best way to set up your recording system. Ask them how you can increase your wealth. Ask your accountant and/or your financial advisor how they have created their wealth. What do they invest in Talk to people who are wealthy. Ask them how they accumulated their wealth. Question everything. Read books and attend seminars on wealth creation…the more informed you are the easier it is to make sound decisions. Dont believe everything you hear, see and read, particularly if the person advising you reaps financial benefit from you accepting their advice. Only listen to people who "have rungs on the ladder". Once youve have done some research and this can happen in a matter of days or weeks, depending on your efforts then: Take action The Final Word Looking after your financial well-being should be a top priority. Its about having choices in your life. Do you really want to work from dawn to dusk to support the lifestyle you and your family have become accustomed to Wouldnt it be great to go to work because you want to, not because you have to If financial freedom is something you want in the not too distant future and it doesnt happen overnight, you have to take action sometime... like right now!
| | | | RELATED ARTICLES Real Estate Professionals Need You to Write for Them! Ask yourself these questions:Are you an experienced writerDo you want to stay at home to writeDo you want to work for yourselfDo you learn new things quicklyAre you interested in a broad number of subjectsDo you feel like you’re being pigeonholed with your current writing and you want to branch outDo you have a flair for marketing The Three Largest Factors In Your Interest Rate There are three major factors that affect how much you pay for a loan.Understanding these factors can save you time, money and frustration. Private Mortgage Insurance PMI If your down payment on a home is less than 20 percent of the appraised value or sale price, you must obtain private mortgage insurance, known as PMI, with your lender. This will enable you to obtain a mortgage with a lower down payment because your lender is now protected against any default on the loan. 5 Ways To Protect Your Bond Portfolio From Rising Interest Rates The Federal Reserve recently raised its target federal funds rate for the first time since March 2000.This could be just the tip of the iceberg, though, as many experts believe rising inflation and a strengthening economy will spur continued rate hikes for the foreseeable future. Ten Financial Tips for Women On average, women earn 76 cents for every dollar men earn in the workplace. Because women typically spend approximately seven years out of the work force to have and raise children, their earnings are even further curtailed. With lower pay and less time spent in the work force, women are generally left with smaller retirement portfolios, lower company pension benefits and lower Social Security benefits than men. Comprehending a Credit Report Obtaining a credit report is an excellent way to begin taking control of your financial future. Its recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud. However, once your report arrives you may have trouble making sense of it. How are you to read and understand a credit report How To Simplify Your Real Estate Buying/Selling Experience Today’s real estate consumer has a lot to consider during the sale or purchase of a home.Be it waiting for the right buyer/seller, mortgage rates, or the moving truck, the experience can take a bit of patience on the part of the consumer.With this in mind, it is incumbent upon real estate brokers/agents/firms to institute services that will the buying/selling process hassle-free. The "Wall of Defensiveness": 7 Ways to Tear It Down Have you ever gotten frustrated when you realize that your prospects keep stereotyping you as a "salesperson" And because of that, they dont give you the trust and openness that you deserve, and that are essential if youre going to help them solve their problems Decision Time: Home Equity Loan or Home Equity Line of Credit Home equity loans and home equity lines of credit continue to grow in popularity. According to the Consumer Bankers Association, during 2003 combined home equity line and loan portfolios grew 29%, following a torrid 31% growth rate in 2002. With so many people deciding to cash in on their homes equity value, it seems sensible to review the factors that should be weighed in choosing between out a home equity loan HEL or a home equity line of credit HELOC. In this article we outline three principal factors to weigh to make the decision as objective and rational as possible. But first, definitions: How Good a Deal Is Your Banks Mortgage Insurance Plan When you go to the bank to get a mortgage, youll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Most financial institutions act like they are doing you a favor by offering you mortgage insurance through their own group plan, but are they Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs There’s no question about it:Buying a first home is a big financial commitment.In most cases, a home is the largest single purchase an individual or family will make in a lifetime.However, because of the tax advantages afforded to homeowners, buying a home also can be one of the best financial decisions you’ll ever make. When a Real Estate Agent May Not Be The Best Option Historically, when homeowners wanted to sell their home, the first call made would be to a Realtor.Since the early 1900’s, Realtors have represented homeowners during the process of selling their home, which is usually to another homeowner.Real estate brokers hold state regulated licenses that allow them to market real estate on behalf of the owner.The national average for broker commissions is approximately five percent.In many cases, another broker will bring the buyer and receive typically fifty percent of the commission.When the majority of homeowners sell their home, they believe a real estate agent gives them the best chance to maximize the amount they receive and the agent commission will come out of their proceeds at closing.This is a process that takes place everyday throughout America. Leave Your Dead End Job…For Good. So here you are…stuck in a dead end job. Are you hitting the glass ceiling in a job you once loved, but now can’t stand Maybe the hours are long. Maybe you can’t stand retail customers anymore. Maybe you’re like 70% of college students who didn’t earn a degree and you feel this is the best job you can get without one. Why Choose a Secured Loan One of the reasons why most people choose a secured loan is that they are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. Student Credit Cards With graduate debt averaging over £12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain. Unlike many standard credit cards, they are available to people who do not have a regular, minimum income and credit history. They often come with tempting offers including low rates for an introductory period, shopping discounts and free CDs. Flexing student plastic has the additional benefit of creating a credit history that can be used to support future loan and mortgage applications. How You Can Avoid Becoming A Victim Of Identity Theft To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take. Should You Get A Blog A blog is a type of website. It allows the website owner to easily write messages that get posted to the site automatically, often in a journal or diary-like style. A particularly appealing thing about blogs is that your readers can comment back to your posts fairly easily, and a continuous stream of fresh conversations result. This is a good thing. Preventing Foreclosure Proceedings and Understanding Your Options Every year over 8 million homeowners are seeking help preventing foreclosure proceedings. This is a stunning 30 year high. Experts project that by 2006, 12 million homeowners will be teetering on the brink of foreclosure. Many homeowners are not aware that the can prevent foreclosure and save their house. Did you know that you can’t stop the proceedings up to an hour before the auction takes place Removed From Google Index, Why 1. Google Statement 5 Easy Ways to Save and Build Wealth 1. Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. And you will pay more than $10,000 in interest charges. |
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