Financial Security In An Unstable Economy
Keywords: mortgage, finance, real estate, taxes, interest, deductions, wealth, budget, money, cash, stocks
Few families pass on actual knowledge about wealth building to their children. Negative feelings of poverty and scarcity can last for generations.
Accountant and financial advisor, Dr. Joseph Simini says, “Most people are illiterate about finance. Finance isn’t all that tough. If you want to become financially independent, you can’t depend on someone else to do that for you. You have to do it yourself with knowledge.”
Dr. Simini started out in life in a poor immigrant family and learned the basics of creating personal wealth from his father’s teachings and the school of hard knocks. He manages family owned investments and advises people on the subject of financial independence.
He offers practical advice on how to become financially literate and financially independent:
1. Buy Your Own Home: It is important to buy your own home because with a small amount of money, and a lot of someone else’s money, you can get started. Instead of paying rent and making your landlord wealthy, you will be paying into your own mortgage. Eventually, you are going to own the building, leading to tax benefits.
2. Deduct Property Taxes and Mortgage Interest: These items can be deducted from your regular income and that is a big savings. Most people just use their standard deduction, but by adding the property tax deduction and the mortgage interest deduction, you can increase your deduction by thousands of dollars.
3. Save 10 Percent of Your Income: Fill out a budget categorizing all your bills and when they should be paid. At the top of the list of bills to be paid, put your own name. Pay yourself first. Nobody can help you, but you.
4. Make a List of Necessities: Make a list of the necessities that you need to live: rent, mortgage, clothes, food, etc. After this, make a list of the discretionary things. Decide if you really need all the things you are spending your money on. Are they necessary? Can you cut back? These are the financial questions you need to answer.
5. Take Advantage of Compound Interest: One of the most important fundamentals of wealth building is compound interest. Instead of giving you a nice return, compound interest will give you a sensational return.
Compound interest is the interest added to the principle, and then the interest rate is on the new amount of money. Each year it becomes a little more. After years of compounding interest, it becomes a tremendously larger amount of money than if it were only simple interest.
All of these wealth building strategies require awareness and a change in habits. Change your attitude about money. Change your financial habits. Read financial magazines, the business section of the paper, and financial magazines. Know what money can do for you.
Look beyond just employment income. Put your skills and talents to work for you. Create additional streams of income teaching or selling the hobbies you are already interested in. This additional income will give more opportunities for saving and paying the bills. You have to go out and build income of your own.
Avoid putting your money into cash. That includes: a bank account, notes, and bonds. These will only give back a small amount of interest. They are the worst things to invest in.
The stock market has the potential for incredible wealth building if you learn the rules of the game. Do your homework, researching all the information available about investing in stocks. Become stock literate to protect your investment in the stock market. Find advisors and take responsibility for your own choices about your own money.
Do not get caught up in limited thinking. Expand a little bit and take some different actions to benefit yourself financially. This is the foundation of building financial independence. Get yourself started onto the road of financial success by becoming financially literate.
Once you learn the financial principles and practices pass them on to your children. Get your children involved in the basic skills of finances and building wealth. Knowing about money is as important as knowing the ABC’s in today’s world.
Financial literacy will lead you to additional wealth building techniques. You will be able to come up with a plan that will take you from paying someone else, to becoming the person who other people are paying.
Dr. Proactive, Randy Gilbert enjoys producing the “Inside Wealth Success Show”. He presents his insightful interview with Joseph Simini based upon the tips from his book. Hear the entire interview for free by going to:
www.insidesuccessradio.com
Previous Articles Highlighter:
The Second Mortgage Home Equity Loan (1)
A second mortgage puts a second charge on your home, meaning that the second mortgage provider can take a share of any proceeds if your home has to be sold.
What Are The Current Tax Rules You Must Consider For Your Estate Planning? (2)
Keywords: Sacramento CPA, Estate Tax Planning No estate tax is payable during 2006, 2007, and 2008 on a descendants estate valued up to $2million. However, estate taxes can chew away a sizable part of the estate after death if effective estate planning steps are not taken in time.
Tips To Curtail Your Estate Taxes (3)
2011 may find estate tax back with an exemption limit of $1000000 if the Congress does not pass a law for a full repeal. At present, there are some steps that a person can take to effectively reduce estate taxes that may be applicable to his estate after his demise.
How Can Gifts Help You Reduce Your Estate Taxes? (4)
Although the annual exclusion limit of $12000 may not appear to be much on the face of it, it can serve to substantially lower the estate size over a period of time.
A Tax Guide To Manage Your Estate Taxes Effectively (5)
This is the current limit up to which no estate tax is applicable. Your heirs/beneficiaries will have to cough up 45 cents on every dollar that is over $2million dollars of your estate value.
Taxes You Must Consider Before Passing On Your Properties To Your Heirs (6)
There is an exemption limit of $2 million dollars on estate value for imposition of tax, which will be raised to $3.5 million in 2009. This means if your estate is valued at $4 million, your heirs will have to pay estate tax @ 45% on $2 million remaining after the exemption is applied.
Monaco Real Estate Prices To Overtake London Again? (7)
Everyone in Monaco is aware of how important the environment is thanks to Prince Albert's initiatives in pushing it up the political agenda, and any new developments will be low rise.
Tax Haven Property 2007 Gets An Icy Chill (8)
Once residency is granted, residents are supposed to spend six months a year in Andorra, but this isn't policed. One of the drawbacks for those looking to become a resident in a tax haven when considering Andorra has been that the country has no airport of its own, and is unlikely to have ine future given that it is located in the Pyrenees.
Andorra Property Prices Hit 2007 Ice (9)
The nearest airports are Barcelona and Toulouse. Recent improvements in the road from Barcelona to Andorra though have cut the travelling time by some thirty minutes to two hours fifteen minutes.
Andorra Tax Haven Introduces Capital Gains Tax (10)
But any hope of the new capital gains tax dampening property prices is unlikely to work, according to Andorra property companies. 'While there is a large disparity between Europe's top two tax havens - Monaco and Andorra - in property prices, the advantages of buying a property in Andorra, gaining residency and having no income tax far outweighs any capital gains taxes', they say, pointing out that Andorra prices are a quarter of those of Monaco's.
Asset Based Lending As A Financial Tool (11)
Turnaround Financing Turnaround financing is often used by under-performing businesses that are not achieving their full potential. In some cases, it is used for businesses that are either insolvent or on their way to becoming insolvent.
What Are The Benefits In Obtaining Debt Consolidation Services? (12)
Truly, obtaining debt consolidation services will help you regain a good credit score. But remember, cooperation is needed on your part. Be ready to make necessary adjustments to pay the debts you owe.
Forex Broker - Choosing The Right Forex Broker (13)
A lot of forex brokers make their money by charging their clients commissions. Make sure you check to see this isn't the case before you sign up. Standard Accounts Standard accounts, usually have slightly higher start up costs, anywhere from $5000 and upwards.
The Foreign Exchange Market (FOREX) Uncovered (14)
Since profit can be made from both increases and decreases in a currency it means the Forex market is highly appealing and can be very lucrative for anyone willing to give it a try.
Run The Numbers Before Buying An Investment Property (15)
For example, if you buy a property for 100,000 but the tax appraisal last year was for 50,000, don't count on it remaining at 50,000. In fact, I have seen cases where a year after a property was purchased the tax assessor increased the appraisal value to the purchase price.
How School Loan Consolidation Can Save You Money (16)
If you choose to go the private route, then your loan and payments will vary based on your credit history, as well as how high the interest rate is for your lender.
Saving Money Through Student Loan Consolidation (17)
Even if you have to start making a student loan payment immediately, you will still save yourself more money in the end because of the lower interest rate. What to Consider?
Discover Newly Launched Hedge Funds And Those Who Gained On Exit (18)
Amanda also manages five private equity hedge funds of funds, which have several domestic and international investors. Amanda Group currently has more than EUR 1.3 billion ($1.7 billion) in assets under management and they have made investments in more than 100 private equity funds in Europe, the United States, Asia and Russia.
Selling Your Own Home (19)
TIP # 5 Price may be a sensitive issue but it is the one thing that will sell your house faster than anything else. If you price your house right in line with the market it's not likely to sell quickly.
Student Consolidation - Making Your Loan Manageable (20)
On the other hand, you will be able to lock yourself into a fixed interest rate. Let these factors weigh in your decision. Paying off student loan debt can be hassle-free if you go about it the right way.
Newer Articles Highlighter:
Medical Equipment Acquisition And Leasing (1)
Advantages: It's simple and quick. Everybody accepts cash Cash purchases minimizes paperwork and may help reduce purchase price. Disadvantages It's generally not a good use of funds because it ties up much needed capital that can be utilized in other profitable ways.
The Many Faces Of Student Loans (2)
Your collegiate financial advisor will provide you with a great deal of advice and direction. The good news is that a student loan will enable you to follow your dreams of pursuing a higher education.
Are Balance Transfer Credit Cards On The Way Out? (3)
The current crop include conditions that guarantee the issuing bank some benefit for taking on a transferred balance from another company. The earliest types of balance transfer cards generally offered 0% interest for a set period of time - usually between six months and one year.
A Simple Way To Cut Your Monthly Expenses (4)
Of course, the company has to provide you with excellent service and programming every day, but they only have to sell you once. After you buy, you're most likely going to remain a long-term customer.
Why Is Estate Tax Planning So Important? (5)
Sacramento CPA firms offers Estate Tax Planning to individuals and businesses. We have former IRS auditors who know the system to make sure you only get the best advice.
Using An 80 20 Mortgage To Avoid Mortgage Insurance (6)
It is actually two loans, a regular home mortgage which constitutes 80% of the price of the home and a second mortgage or home equity loan that consists of 20% of the cost of the house.
Parents Face 'Mounting Costs On Nurseries' (7)
Meanwhile, some ten per cent of those who drew up a spending limit were said to have exceeded their expenditure by 1,000 pounds. Last month, research from Barclays and children's charity NCH indicated that debt management problems have seen 11 per cent of British families are too poor to buy medicines over the counter.
Garbage In, Garbage Out (8)
Take time to think! Today, we are being bombarded with information from all directions, from many sources. It's ironic that in this age where we have more information than we can handle, many people have forgotten how to think.
Should You Buy A Foreclosure Home ? (9)
Just be sure to research the property for potential repair issues before you buy a foreclosure home. www.TheForeclosureInfoSite.com brings you information on many different types of foreclosures. There's nothing to buy just real information for real people.Check us out today at www.TheForeclosureInfoSite.com
How To Manage Your Debt Consolidation Solution (10)
Part of the dilemma can possibly be that they really do not want to accept their situation. Because of the amount it may be, one can hardly blame them.
Buying Insurance For Your House (11)
You can use the power of the internet to research a variety of house insurance policy companies and obtain free quotes. Get at least 4 free quotes to compare and be sure to compare pricing and coverage with your current homeowner's policy to see if you can save some money for the same amount of coverage.
How To Find A Forex Broker That Won`t Rob You Blind (12)
Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low point. This action on their part can cost you dearly.
Options: How A Million Dollar Options Trader Sets His Stops: Underhanded Tips And Tricks (13)
Another matter to take into account is how risky you believe the trade to be. If you think the trade is a sure winner and market conditions are favourable, the options trader may give the position more room to move.
24 Hour Profits By Picking The Perfect Investment Club Broker - Hidden Tricks Only The Experts Know (14)
In addition, a discount broker does not charge the same commission as a full time broker. The investment club may also want to consider using the services of an online broker.
The Benefits Of Having A Business Credit Card (15)
While these may not be worthwhile if you carry a balance, if you pay off every month you have a definite benefit. Just make sure that you know the balance between what you would be paying in interest with and without rewards.
Stocks: Hidden Blueprint For Profiting In Stock Trades - Entering, Holding And Exiting - Part 2 (16)
Remember, it doesn`t matter if you miss a trade or a position because the entry price has gotten too high. It`s not the last good trade in the market.
The Secret Formula To Picking A Million Dollar Forex Trading Strategies (17)
Successful traders need some way to interpret and even predict the movements of the market. There are two basic approaches to analysing market movements, in both equity markets and the forex market.
Tips And Tricks To Set Up Your Second Stock Trader Club Meeting - Part 2 (18)
The vice president can also be known as the assistant presiding partner. The vice president is the member that stands in when the president is absent or needs help with presidential duties.
Unbreakable Forex Trading Rules Guaranteed To Increase Profits (19)
You guidelines for entering, adding to, and getting out of your positions. 2. You need guidelines that have an action plan in case your trading computer, internet connection, broker, power, telephone etc.
Forex Investing At The Right Time And The 10 AM Rule And How It Works (20)
By following the 10 A.M. rule, you avoid the risk of this sudden reversal. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.