Cash or Credit - Which Should You Use?

As a general rule, you should never buy something with a credit card unless you have the money to pay off the charge. Many people like to buy things on credit (even though they cannot normally afford the item) with the intention that they will pay off the purchase in the long term. This is a mistake because you will end up paying more in interest than you would have had you paid cash.

Another way to use a credit card is as a rewards point builder. First and most obviously, you must have a rewards credit card for this to work. The process is very easy from here. All you do is use your credit card to make specific purchases throughout the billing period. When your bill becomes due, you pay off the entire amount. Obviously, you have to have the money available to pay off the entire monthly amount. Additionally, you must keep very accurate records of your charges in order to ensure that you have enough money on hand to pay off the monthly balance in full. The whole purpose is to build reward points without paying interest on your charges. Keeping accurate records and charging only specific purchases will help you accomplish this goal.

Most people are surprised when they get their monthly bill because they do not realize how much they have spent on food and gasoline. These charges can add up fast. If you are responsible with your credit and keep accurate records, this should not be a problem. How do you know if you are a responsible credit user? Let me put it this way; if you have to ponder whether or not you are a responsible credit user, chances are that you are not. This does not mean that you cannot utilize the rewards points strategy; all this means is that you probably should not purchase food or gas on credit because there is a chance you will charge more than you can afford. If this is the case, you should use cash (or a debit card) for food and gasoline purchases.

Basically, everything comes down to responsibility. If you are responsible, you could use cash and credit interchangeably without worry of getting in over your head. However, responsible or not, always keep accurate records of your credit so that you do not lose track of your spending.

Credit trap: Keeping Young Adults on the Right Track with Credit Cards

I will never forget the time I got my first credit card. I signed up on my college campus. It was great because I got a university t-shirt when I applied for the card. The people working the kiosk basically guaranteed that I would be approved. I was sold! I took the application, filled in my details, and impatiently waited for my shiny new card to arrive in the mail.

It is funny when I think back about how young and naïve I was. I did not care about annual fees, interest rates, or credit limits. If I would have known then what I know now, I would have set a booth right next to that credit card kiosk and passed out fliers about how bad the credit card offers are on university campuses.

There is a popular military strategy called “shock and awe.” Basically, a military will use overwhelming force and spectacular displays of power to paralyze the enemies on the battlefield and destroy their will to fight. The same strategy is used by these university credit kiosks. They promise young and financially naïve adults all these great benefits, but fail to inform about high annual fees and interest rates. Eventually, the college kid finds himself/herself in a debt trap from which he/she cannot escape.

My advice is to do your homework. Make sure that the credit card offer is not all smoke and mirrors. Ask about the annual fee and interest rates. If the person working the kiosk does not know the answers, do NOT get the card. There are too many places where a credit card can be obtained, therefore, you do not have settle for the sub par cards that they hand out on college campuses.

Testimonies: How Debt Can Make You Feel

Okay, time to confess a secret. At one point of in my life, I could no longer manage my debt. I did not file for bankruptcy and all the debt is now paid off (it was all credit card debt), but there was a time when I did not know what I was going to do.

The constant worry is a nightmare. You never know how you are going to pay next months bills, and you are always wondering how long you can keep it up. The funny thing about credit card debt is that it does not suddenly appear. It is a process over many months. You keep spending and paying the minimum balance. Before you know it, your cards are maxed out, and paying the minimum no longer works because the interest on your balance is more than the minimum payment.

I had trouble sleeping and when I did sleep, I would have dreams where I would lose my teeth. I looked at that particular dream in a dream dictionary and found out that dreaming about losing your teeth means financial hardship. Crazy, huh?

I decided to do something to change my situation. My solution was to do debt consolidation. The advantages were that my debt was consolidated into one, low monthly payment and that the interest rates on the credit cards were reduced. Therefore, I was able to pay down the balance a lot quicker. The disadvantage is that once you choose this option, the credit card accounts that are included in the consolidation are closed. The disadvantage of this is that it negatively affects your credit rating. Your credit rating is not substantially lowered, but the decrease is noticeable. Additionally, when you are enrolled in the debt consolidation program, a note appears on your credit report that your are enrolled in a debt consolidation program.

This is how I dealt with the debt. Today, I am very responsible with my credit. My credit score has been completely revitalized, plus more, and I am debt free. Being debt free is the best feeling. Have you ever been in a similar situation? How did you deal with it or are you still dealing with it?

Conventional Personal Finance

There are many bad things that you can do with your money or to your money. There are also many goods things you can do with or to your money. What should you do and what should you avoid?

(1) Plan Your Finances – Budgets are very hard to stick to and can cause many headaches, however, planning the big purchases can help protect you from a financial blunder. Always plan out the big purchases before reaching a final decision. This will not guarantee that you made a wise purchase, but it will make you think out and research all the details before concluding one way or the other.

(2) Always Use Interest Bearing Accounts When Possible – Many banks offer interest bearing checking accounts, and various other interest accounts. While deciding between investment opportunities or for the money you keep in an account to pay the bills, collecting interest on this idle money can quickly add up. You will not become rich, but this is the easiest, risk free money you will ever collect.

(3) Diversify – This is very common and effective advice. The recent volatility of the real estate market is a perfect example. Many people lost everything because they threw all of their investment money into the real estate market during the boom. Unfortunately, like gravity, what goes up must come down, and that is what the market did, with a vengeance. If these people had been diversified (meaning they had spread their investment dollars through various industries and markets) these people would have minimized, and probably offset any loss they received from the real estate market.

Doing these three, simple things will help you generate and maintain income for many years to come.

Considerations When Making an Offer on a Home

You want to make an offer on a home and the listed price is $300,000, what do you offer? There are many factors that you need to take into account when offering a price for a home.

First, consider your intentions. Is this a home that you plan to live in or is this an investment property? If this is a house you plan to live in, you want your first offer to be lower that the list price, but not so low that the offer is flatly rejected. If you plan on living in the house for a long time, it may not matter if you pay the list price because you will make that money up and more due to appreciation over the years. However, be wary not to pay more than the home’s worth. You never know when you may need to move and you do not want to lose money on a quick sale.

On the opposite side, if you are buying this home as an investment property, shoot for the fences. In other words, if the list is $300,000, you may want to offer something like $230,000. You would offer this lower amount because you want to maximize your return.

Second, consider the seller’s intentions. If the seller is in a dire financial situation (similar to the current situation facing many home owners in this market), is facing a divorce, obtained an out-of-state job, or something like that, the seller will be more motivated to sell, and thus would take a lower price if you offered a shorter escrow. This would work out for you regardless of your intention.

However, if the seller is selling an investment property, the price is probably going to be firm. In this situation, if you have considered your intentions, (you already know the seller’s intentions at this point) your last consideration is the house’s appeal to your intentions.

Last, consider the home’s appeal based on your intentions. In other words, if the home is a “perfect” family house in which you and your family are going to live for many happy years to come, you may not care if you pay the price listed. If the house is a “perfect” investment property, you may, once again, not care if you pay the list price. However, if the home is just another property that really does not impress you, move on.

Your intentions are most important because they will dictate your next course of action. Know your intentions, find out the seller’s intentions, the make a low offer or list price offering as applicable.

Why do You Need a Will?

First of all, what is a will? A will is a legal declaration of a person’s wishes as to the disposition of his or her property or estate after death, usually written and signed by the testator and attested by witnesses. In case you do not know, the “testator” is the masculine form for a person who makes a will. The feminine word is “testatrix.”

Now that you know what a will is, why do you need a will? Without going too deep into the possibly situations that could occur based upon the execution, or lack thereof, of certain estate planning documents, whenever a person dies leaving property (whether real or personal), that person has died leaving an “estate.” Because a will (as stated above) is a legal declaration of a person’s wishes as to the disposition of that property or estate, a valid will has the effect of determining where your estate goes after you die.

If you do not care who gets a piece of your estate after you die, then you probably do not need a will. However, if you do care, then a will is necessary in order to dispose of your property according to your demands. If a person dies with a will, the person is said to have died “testate.” If a person dies without a will, the person is said to have died “intestate.”

If you were to die intestate, your property would be disposed of according to your state’s intestate succession laws. This means that the state, based upon the laws in place, will determine who gets your estate. Note that these laws will apply equally to everyone. In other words, no judge, state official, or any other official can subjectively decide who gets your estate. Everything is set by law. This can be a disadvantage if you want to disinherit one or more of your legal heirs (depending on your state’s laws and your familial situation, legal heirs means anybody related by blood; there is a system (called the Table of Consanguinity) by which certain blood relatives take before other blood relatives), because without a will, they will get a percentage of your estate.

Therefore, the biggest advantage of having a will is that you get to decide how your estate is distributed. You do not avoid probate and there are no real taxes advantages of having a will, however, the power to distribute your money and property according to your wishes is an advantage that cannot be measured.

How to Put Your Money to Work

What does it mean to put one’s money to work? Basically, when you have money, 99% of the time it is sitting in a checking account. Most people that have their money in a checking have it in a non-interest bearing checking account. There are many reasons why this could be. First, the account minimum for an interest bearing checking account is almost always higher than for a regular checking account, and you may not have the additional necessary funds. Second, you may not know whether your bank offers an interest bearing checking account and, therefore, have never inquired about such. Last, you may not care.

Let me clear something up before we move on. Interest bearing checking accounts are not going to make you rich, however, why would you pass up free money? Additionally, this article is intended for your normal money supply (normal money supply means the money you use to pay bills, buy groceries, and use for all of your other living expenses), not money that you have set aside for investment. It would not be practical for you to move all of this money to a savings account, because savings accounts usually do not come with check writing privileges or debit card options. Therefore, you would have to constantly move money between your savings and checking accounts in order to pay bills. What is the solution? The solution is to find a bank that offers a decent interest rate and a low enough minimum balance for you to take advantage of interest bearing checking. Note that you may have to look beyond the “major” banks in order to find something like this.

Interest bearing checking is not the only way to make your money work for you. Investments such as real estate and the stock market can offer continuous returns (appreciation and rents in real estate and dividends and capital gains in the stock market) on your money. The problem that arises with these investments is the level of risk involved. As many people recently learned, it is easy to lose your real estate investment if you get in over your head. Additionally, unless you know a little bit about financial speculation, the stock market may prove to be a waste of time and money. Also, these investments may need a lot of initial capital to start and, therefore, may not be appropriate for your “normal money supply.”

Under the worst case scenario, you could put your money in a savings account. It will offer a higher interest rate than will interest bearing checking, but will have the disadvantages discussed above.

Find ways to get your money working and you will find that all of those extra dollars acquired by way of interest or investment will really start to add up!

The Advantages of Multiple Sources of Income

The advantages on having more than one source of income seem obvious. More than one source of income means more money. However, the advantages of multiple income sources are more than just more money.

First, multiple income sources diversifies your risk. If one income source is cut-off or fails, there is still one or maybe more that is unaffected by the failure of the first (assuming the income sources come from different markets). For example, let us say that you are a computer programmer and that you have some investments in real estate, specifically, real estate rentals. If you stop receiving a paycheck from your computer programming job, your income from your real estate rentals will most likely be unaffected. The additional source of income creates a “safety net” so that money is still coming in the door.

Another advantage of multiple income sources is efficiency of work. In other words, you can make more money per hour while doing the same amount of work. For example, if you were to get a second job, you would be making more money and you would have another source of income, however, you would not be working efficiently. On the other hand, if you had stock investments that pay dividends, real estate investments that pay a rental income, a website with advertising income, etc. you would be making more money per hour for doing the same amount of work, and thus, be more efficient.

Last, and probably most importantly, having an additional income source can give you free time and peace of mind. Having free time is great, but having free time to worry about your finances is like slow torture. The point of free time is to spend it doing the thing you love. Nobody loves worrying about money, therefore, the peace of mind that an additional income source can provide is an extremely important element.

The advantages of an additional income source are many, however, do not work harder for it, work smarter and success will be within your grasp.

How to Give your Kids a Financial Head Start

Money management can be difficult regardless of your age. However, if you want to get your young ones off on the right foot, there are some strategies and tactics you can do to help them achieve financial success.

First and foremost, you, as the teacher, have to be proficient in money management. You cannot expect a student (in this case, your children, nephews/nieces, grandchildren, etc.) to follow your advice if you say one thing but do another. Make sure you practice what you preach and make sure that what you preach is helpful!

Good credit is an important asset these days. Why not get your kids off on the right foot? There are many components to a credit score (that is an article for another day), however, one such component is the length of time a credit account has been established. Currently, there is a credit score loophole that allows an authorized user to gain the benefit of the primary account holder’s entire credit history. As of recently, the Fair Isaac Corporation, the company behind the FICO credit scores, reported that it was going to stop giving these benefits to authorized users. However, adding a person as a joint account holder will give them the same benefits as the authorized user loophole used to. Therefore, I suggest that you add your child(ren) onto one or two of your credit accounts. The accounts have to be major credit cards (Visa, MasterCard, American Express, or Discover) and the accounts and your credit report have to be pristine and have to remain that way! There is absolutely no reason to add your child to a credit account that has delinquencies, late payments, charge-offs, or any other negative information. You are trying to build a good credit score for your child, not make it harder for him/her to establish credit.

Teach your kids about the stock market early. I once read a story about a family. The grandfather taught his grandchildren how to find and read stock quotes in the daily newspaper. He also taught them how to read financials so the grandchildren could have an understanding of a financially sound company. After teaching them this, the grandfather set up an individual stock account for each grandchild. Every year on the respective grandchild’s birthday, the grandfather has the grandchild pick a stock. The grandfather then buys a certain number of shares of that stock for the grandchild. Can you imagine the portfolio these kids are going to have by the time they are eighteen? Not to mention the understanding they will have of the stock market. If you can set up such a plan for your children, I would strongly recommend you do that. If you know nothing about the stock market, find somebody who does and teach your kids from an early age about the power of investment.

Kids appreciate money more when it is their own money that they are spending. Therefore, I suggest that you have your kids get a job (when they are the appropriate age). Making money for themselves will teach them what it takes to earn an honest dollar. Additionally, you can take this lesson a step further and have your kid open a savings account. Have him/her automatically deposit 10% of every check into the savings account. Make sure you find an account with a high interest rate (you may want to stay away from the major banks and look at small savings and loans that are FDIC insured or credit unions that are FDIC insured because their rates will be far higher than Wells, BofA, Wamu, Citi or any other “major” bank). By doing this, your kid will be building a nest egg and you will be able to teach your child about the power of compound interest.

Last, teach you kids the basics of good credit management. When your kid gets his/her first credit card, teach them (among other things) to pay more than the minimum payment, to not have a high balance, and if they cannot afford an item they should not buy it on a credit card. If you helped them by placing them as joint account holders on a couple of your major credit card accounts, teach them not to ruin this head start by getting in “over their head.”

These strategies will give your child a huge head start on the journey to financial success. All of the strategies are easy to initiate, and all are inexpensive to do. Help give your child the head start that you never had.

Ways to Effectively Distribute Business Cards

Let us assume that you already have received your brand new business cards. Chances are you spent money to get them. Why then would you waste that money by ineffectively distributing business cards?

Before we begin, you will want to make sure that your business card contains your full name, your company name, you position/occupation in the company, and any and all contact information (including your company address, office phone number, cellular phone number, fax machine number, and e-mail address). You might want to refrain from giving your home phone number unless you run a home based business. If you have a beeper, give this number also. The point is that you want to make it very easy for your client to contact you whenever he/she needs to, during working hours.

Additionally, you want to keep your business card clean-looking and to the point. The point of a business card is to give some very brief information about your position and contact numbers. Now is not the time to present your entire life story. I have seen some people put their company mission statement, product lines, company motto, etc, on their business cards. I think this is overkill. At most, I would include (if relevant) a company logo and any education or experience you have that would make you more credible. This does not mean that you place your resume on your card; this means that you put the appropriate educational distinctions after your name (for example, M.B.A., M.E., B.A, B.S., J.D., M.D. Broker, Broker-Salesperson, Salesperson, etc) and/or a quick one-liner about your experience (for example, “helping people acquire wealth for over ten years”).

First and most importantly, ALWAYS have some of your business cards on you. Having anywhere between 10 to 15 business cards with you at any given time would be ideal. Many times people will ask for a business card and you may not have one to give. This is a lost opportunity! If you just give the potential contact a phone number, chances are, he/she is going to forget what and who the phone number is for. However, if a business card was given, there can be no mistake as to who the number belongs.

Second, put a stack of business cards on your desk. When you meet potential clients, it is nice and beneficial to give them a card. This way, if that person wants to recommend you to another, they will have a business card to give to that person. Additionally, your client will have a means of information should they need to contact you for any reason.

What if you do not have an office where clients come to meet you? What if you run a home based business? This problem is easily solved. When you go and meet the client, give them a card attached to any presentation, contract, agreement, and/or document that pertains to the meeting. (The preceding sentence also applies to people that have a traditional office where clients come to meet. Just make sure that you do not drown your clients with business cards. One or two is fine. Do not attach a business card to every document you produce for them).

What if you never meet the clients with who you do business? In this case, some sort of communication has to take place. How else would you two have gotten into contact? In this case, it is most likely that e-mail is used and, therefore, you can put business card-like information beneath your signature line. It has the same effect as a traditional business card and better yet, it is free!

Third, networking events are a great place to exchange business cards with others. Just make sure you do not blindly throw your cards at people without making a true contact. Handing cards to people you never talk to are not going to help your cause.

Last, place your business cards in local shops that allow you to do so. Many local coffee shops, juices bars, restaurants, pubs, bars, and “mom and pop” stores allow people to place their business cards on a bulletin board and/or on the restaurant tables under a piece of glass which serves as the table “cloth.” This is a good way to create ties with the local small businesses and with the local community. A word a caution; this is probably going to be the least effective method for generating business. Many people do not go into a coffee shop looking for a anything other than a cup of coffee, therefore, do not expect much business to come directly from this method. That being said, if a person does become your client from one of your cards placed in local businesses, and that client ends up loving you, that little card that stays pinned up at those shops, probably indefinitely, will generate much positive word of mouth advertising. This in turn creates lots of business for you.

Tips on Developing a Reputation as a Credible Businessperson

No matter your field of business, your reputation is a very important attribute to maintain and to market. Becoming credible or reputable in your particular field will take hard work and discipline. With some discipline and creative marketing, you should be able to develop a powerful reputation that will bring a lot of business your way.

First and foremost, you have to be honest! Honesty in business will speak volumes about your character. If you can be trusted in and with a business transaction, word-of-mouth advertising will become your best friend. Referrals will start pouring in and making money will become second nature. If you “tell it as it is” (even if the truth is something the other parties do not want to hear) your clients, business partners, and/or customers will respect you for that.

Second, you have to know when to play “hardball.” Negotiating a contract (or any other item) can be a nasty, time consuming monster. You always want to get the best deal for your client, and this can sometimes mean that you and the other party may get into a heated debate. These can be avoided with some calming conversations, however, I can almost guarantee that this situation will happen at least once in your business career. If you represent your client to the best of your ability (whether in real estate or some other business) your client will know that you are looking out for his/her interests. The client will pay you back two fold: first, you will be paid your rate (whether commission or hourly) and second, you will receive referrals from that client.

Third, do not nickel and dime your clients. Whether you work for commission or an hourly fee, your clients are going to scrutinize every item on their final bill. If a client disputes a legitimate, significant charge you probably should not give in to their dispute. What is legitimate and significant? That decision is yours to make. On the other hand, you do not want to argue over something small if it prevents the large from being paid. Keep things in perspective and decide where you are flexible on billing arrangements.

Last, you have to know when to cut your losses. Not every client you meet or do business with is going to be all “roses and sunshine.” You are going to meet some clients you cannot stand, are not highly intelligent, and/or never listen to a word you say, which translates into you having to constantly clean up his/her mess. Sometimes you have to tell a client “no.” They might not like you in the short term, but when they discover that your decision was in their best interest (assuming your decision was in their best interest) they will develop a greater respect for you.

Entrepreneurial Character: How do you react to a Challenge?

Have you ever heard the saying, “If it was easy, everybody would do it”? Well, this saying holds true not only with entrepreneurialism but also with almost every aspect of your life. How you react to, and deal with, the challenges in your life is going to determine whether or not you are cut out to pursue entrepreneurialism.

There are only two ways to react to challenges; you can either defeat the challenge or succumb to it. I know what you all are thinking, “I always defeat challenges. Entrepreneurialism is for me. Nothing can stand in my way.” Although this may be true to a point, you are probably not thinking large enough when defining “challenges.”

The challenges that you may have to overcome in order to pursue entrepreneurialism are not restricted to mere business challenges. Do not get me wrong, you will definitely face business challenges during your entrepreneurial career, however, I will bet that the challenges you face in business pale in comparison to the challenges you will face in life.

Let us look at a hypothetical: Let us assume that you are a successful entrepreneur. There is no business problem you cannot solve nor is there any business challenge you cannot defeat. Everything is great. Suddenly, a loved one dies tragically. How do you react? If you think that this personal event is unrelated to your ability to conduct your business, you are sorely mistaken. I know that the death of a loved one can have a serious effect on an individual. I am twenty-five years old and have experienced my fair share of death, so I know the effect it can have on a person both physically and mentally. The concern is not how you deal with the situation when a tragedy occurs, it is how you deal with your situation once you have had time to grieve about such a tragedy.

Of course the life challenge does not have to be a death. The challenges can include, but are not limited to, divorce, health problems, bankruptcy or financial difficulty, an unplanned pregnancy, or legal problems. These are the situations that are going to test your resolve and tax your ability to survive, revive, and persevere.

Back to the main question, how do you react to challenges? Are you able to bounce back after a challenge presents itself or are susceptible to defeat? There is a great quote from the movie Rocky Balboa. The quote states, “The world ain't all sunshine and rainbows. It is a very mean and nasty place. It will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is going to hit as hard as life. But it ain't about how hard you hit, it is about how hard you can get hit and keep moving forward, how much can you take and keep moving forward.”

If you can defeat life’s challenges, you will be free to pursue whatever you want. Defeat the challenges and achieve the success for which you have worked so hard.

Characteristics of a Successful Entrepreneur

I could sit here and start rattling off random, “good sounding” characteristics (such as ambition, boldness, drive, motivation, etc.), but that does not really help you or me. Instead, I will tell you what I believe makes a “successful entrepreneur.”

First, a successful entrepreneur can do the impossible. He/she can make something out of nothing. Many people who start with nothing end with nothing. An entrepreneur does not follow this norm. No matter the disadvantages or set backs, a successful entrepreneur can change his/her situation to anything he/she wants it to be. A successful entrepreneur can change his/her stars.

Second, a successful entrepreneur knows how to seize opportunity. This one sounds easy, but in reality, many people let some of the best opportunities slide by unnoticed. Contrary to popular belief, “opportunity” does not magically appear at your doorstep (we should all be so lucky) and wait for your response. Opportunity is something that a person has to go out and find. You have to seek it out like a jungle treasure hunt and conquer the traps set along the way. A successful entrepreneur knows this and does this daily.

Third, a successful entrepreneur has to network. True, there are many “anonymous millionaires,” and although anonymous to you and me, they are not anonymous to the people that played a part in creating that millionaire’s wealth. You do not have to be world famous or have your own reality television show, but you do have to know a couple people in the particular “money making circle” of your interest if you want to achieve large amounts of wealth. Therefore, for example, if you want to develop real estate, it would be nice to know some contractors, other developers, some finance people, and even people at the various utilities companies.

Fourth, a successful entrepreneur knows when to walk away. There is going to be a time when you have to cut your losses. A successful entrepreneur knows when that time occurs. Remember, these are not the high seas. You do not have to go down with the ship! You may think that this characteristic contradicts the first characteristic I mentioned. However, the first characteristic relates to an entrepreneurs personal life and this point relates to business.

Last, once an entrepreneur has achieved large amounts of wealth, he/she gives back to those who have need it. A successful entrepreneur uses his/her wealth to help change the world for the better.

These are the characteristics of a successful entrepreneur.

Success - How Much of it is Luck?

As the famous saying goes, “I would rather be lucky than good.” However, your definition of success is going to make the difference as to whether luck is even an option. For example, if your definition of success is to have millions of dollars, then luck has played, and will play, a big role in the lives of many. Lottery winners, gamblers, game show contestants, etc., have received large amounts of money primarily through luck. Therefore, if “success” to you is defined by millions of dollars, you would love to have a little luck!

My definition of success is a little different. My definition of success is overarching. I follow the “health, happiness, and wealth” model. If you do not have your health, then you have nothing. It is that simple. What good are millions of dollars if you are too sick to enjoy them? Additionally, what good is money is you are miserable with your life? I only want a few things out of life. First, I want my family and me to be in great health at all times. Second, I want my family and me to be happy together and apart. Lastly, I would like to be wealthy. So how does luck play into my model? Truthfully, it really does not. You cannot be lucky and being a good family person. You cannot be lucky at being happy with your life. These are things you cannot fake.

Luck can play a small part in your travels and experiences towards achieving “success,” but if your definition of success is anything like my definition of success, you need to work on the more important things in life. Then, when you realize you have a great life, you will notice that making money becomes a whole lot easier. Take care of yourself and your family first; the money will eventually come into the picture. That is how I measure success.

How Much is Your Time Worth?

What one is paid versus what one thinks he/she should be paid is the ever existing conflict between employees and employers. “You can never become wealthy by working for somebody else.” You may have heard this in the past because I am definitely not the first to state it, but the quote is true. Let me make a distinction so that I am not misunderstood. I know many of you are thinking, “what about business executives and the such that make a couple hundred thousand dollars a year? These guys and gals are wealthy and they work for somebody!” The problem is, these people are not wealthy; these people are rich. What is the difference? People that are rich presently have a lot of money, but their money depends on their continued employment. If you take away the successful job of a rich person, he/she will not be rich for long. On the other hand, a wealthy person’s money does not depend on employment. A wealthy person has residual and passive income flowing monthly. If a wealthy person is employed, it is because he/she wants to be, not because he/she needs to be.

What does this have to do with determining how much your time is worth? Put simply, determining the value of your time determines whether you are going to be wealthy. Do not think of this problem in a purely literal sense. Do not think, “if I make $150 per hour and work full time for X amount of weeks per year, I could have X amount of dollars.” This way of thinking is short sided. Instead, you must consider what you do with your time.

I was reading an article that theoretically calculated the amount of money it costs to watch television. Do not get me wrong, I enjoy television as much as the next person and am not willing to give it up, however, this article really makes one think about the value of time. The article considered the electricity used, the extra dollars spent from watching commercials, the cost of a television, the opportunity cost, and many other variables. The author added up these costs, and compounded something like eight percent (8%) interest on the sum. The cost of watching television over the course of a number of years turned out to be monumental! The point of this story is not to convince you to give up television, it is to motivate you to use your time effectively and take advantage of the time you have.

If you want to make money, use some free time to plan for a way to do such. Do not give up because things are not happening immediately, just remember, it is only a matter of time!

Real Estate Career Revival Tips

Yes, I have a real estate license. Truthfully, I do not use it that often. I do a small deal here and there, but nothing that I would call a career. Why then, you may ask, am I writing a post about how to revive a real estate career? I am writing this post because reviving a real estate career is similar to reviving any career, you have to think like an entrepreneur! Why am I discussing a real estate career? I am discussing a real estate career because the housing market is currently a hot topic in the news, therefore, I thought the readers would be able to relate more to this post.

First and foremost, you have to love the career that you enter into, or at the very least, you must enjoy it. If you enter a career for the sole purpose of making a lot of money, but you hate your job, you will hate your life. In my opinion, making money is fun and there are infinite amounts of ways to do it. Why then should you settle for a job you hate but makes good money? Why not pursue a job you love and figure out a way to make a lot of money from that job? The point, if you do not like working in real estate, reviving your career is the least of your worries. If you do not like the job, find a new one!

Second, you are going to have to like to talk on the phone. Change your perception about things like “cold calling.” Do not think of it as a burden or an intrusion on the person being called. Instead, convince yourself that you are calling this person for the purpose of helping them make money or buy the property they always wanted. As a real estate agent, you are in the business of selling dreams. It may sound cheesy, but when you help somebody buy their first home or their dream home, you just made a huge impact in that person’s life, and I guarantee that you will get referrals from him/her. Get on the phone and sell people their dreams.

Third, be persistent. You may notice that sales begin to slump in markets like our current market. When this happens, you have to think of new approaches to get clients. Now is the time to start pushing the idea of investment properties. Sellers are desperate and need to get out of their homes, however, nobody is buying. This means that home prices are rapidly falling. In this situation, if you are a seller’s agent, concentrate on changing your primary clientele and represent more buyers. Change your business model for the time being and you will change your income bracket. Flexibility in different markets is key to survival.

Last, set goals. If you find yourself in a rut, set a short-term goal. Example: “I will help two people buy an investment property this month.” Two properties is not going to break the bank, however, the pecuniary gain is not the point. The point of setting a short-term goal is to create a sense of accomplishment and motivation for yourself. This way you will want to endure in this business, you will know the feeling of receiving a commission check, and you will want to have that feeling again!

How Much has the Office Changed Since our Parents Were Running Corporations

It is extremely amazing how much the face of running a corporation has changed. With the internet boom, the rise of computers, and the advancement of electronic technology, corporate governance has changed dramatically.

Things used to be very structured. You were to always be in the office before your boss and were to always leave after him/her. You had to always be in the office, period. All of the processes were slow and information took a very long time to acquire.

Nowadays, it is rare day when you are in the office. Most of the time communications to and from your office are done on a PDA, smart phone, e-mail, and or fax machine. Corporate employees today have to be movers and shakers. Corporations today support free thinkers; people who “think outside the box” are valuable assets to a corporation.

This is not to say that the way things were done on the past was ineffective. Many corporations became extremely profitable by doing things the “old way.” However, you have to admit that the average age of a corporate CEO has dropped dramatically. It used to be that you work for a company for 30+ years and you were slowly promoted through the ranks. Now, people in their early twenties are starting and maintaining profitable business empires.

Many things have changes, but no matter how many formalities change, one thing will remain constant in the corporate structure: the potential to make money.

Will Paper Money Become Obsolete?

Just as coinage gave way to paper, paper will be run out of business by two different mechanisms. The first is plastic and the second is the computer.

It is undeniable that plastic is everywhere. All you see on television these days are VISA checkcard commercials. It is a convenience and security issue. It is lot easier to swipe a card through a machine than to hand the cashier money and receive change. Additionally, if you lose your card, who cares?! Call your bank and cancel the card. However, if you lose your cash, it is gone forever! The same is true in the case of destruction. How many of you have left money in your pocket and then thrown your pants in the dryer? Your plants are nice and clean, but the money in your pocket is ruined! Have you ever accidentally torn paper money, spilled liquids on it, or accidentally burned it? If this happens to your debit/credit card, it is no big deal. Your money remains safe and you get a new card.

The other device the will put an end to the reign of paper money is the computer. Your bank accounts, savings accounts, stock accounts, IRA accounts, and any other account you can think of is on-line. Wire transfers happen in the blink of an eye and you never have to worry about whether your money is safe. Additionally, with internet sites like Paypal, sending and receiving money via the Internet has never been easier or safer.

It is time to say goodbye to paper money and hello to the new ways to use currency.

Understanding Oligopolies

An oligopoly is much like a monopoly except that at least two firms or producers exist. The fear that exists with monopolies also exists with oligopolies except that oligopolies can work out better for the consumer. For example purposes, let us use the satellite radio market. Sirius and XM are the two biggest companies in this industry. I believe that a small Canadian satellite radio company exists, but for the most part, nearly all satellite radio subscribers use XM or Sirius.

Currently, XM and Sirius are in an oligopoly. These two firms control the satellite radio industry. However, because they are such fierce competitors, this works out well for the consumer. The radio base technology gets better, the content gets better, and the number of available channels increase, yet radio unit prices have stayed low and monthly subscription rates have also remained low. This is obviously good for the consumer because it gives the consumer a choice. Although only two firms exist, you can still choose between XM and Sirius.

Oligopolies can turn ugly when the firms that exist in such decide to team up and form a cartel of sorts. For example, if XM and Sirius agreed that each would charge its customers $30 per month, short of canceling their accounts, there is not much a consumer can do. This price fixing and taking advantage of the customer is what law makers fear. This is also what is prevented by disallowing monopolies.

Law makers fear that XM and Sirius, if merged, would create a monopoly and do bad things such as raise prices on subscriptions and radio units. Compared to a monopoly a competitive oligopoly seems great. Just remember, because so few firms or producers exist in an oligopoly, there always exists a potential for abuse.

Legal Considerations for Entrepreneurs When Starting a Business

Entrepreneurs will face many hurdles when starting a new venture and/or business. Many will be tempted to plow right into the matter without first researching laws and regulations regarding their particular business.

I am going to let you in on a little secret, many entrepreneurs are dead before they even make their first sale! Why, you may ask? These entrepreneurs are in trouble because they made the classic mistake of not seeking the help of professionals. If you, as an entrepreneur, have the requisite knowledge of the law to begin and maintain your venture and/or business without fear of having done something inconsistent with the law, then you should be fine. However, most new entrepreneurs will just start a business without thinking of the ramifications of a bad contract, a badly negotiated lease, failure to properly incorporate and or organize, and/or failure to obtain financial assistance (whether it an accountant, financial advisor, bank, etc.), to name a few.

The most popular excuse used by entrepreneurs is that lawyers and accountants cost too much. Using this line of thinking, these people try to handle complex legal and financial matters for themselves and, most of the time, end up with a problem that will cost more to fix than it would have originally cost to avoid the problem. These types of entrepreneurs practice “stepping over dollars to pick up dimes.” I suggest you not be one of these entrepreneurs.

Do not fall into a legal and/or financial pit that could have been easily avoided. Starting a business is not as easy as opening the doors to your shop. There exists many state and federal considerations (whether they are taxes, permits, licenses, incorporation or organization or registration, proper accounting, employee matters, and/or stock issues, to name a few) an entrepreneur needs to consider before “starting a business.” Do not ruin your business before it starts by avoiding proper legal and financial assistance.