Money Smart Skills: How to plan for the future
These are exciting times we live in. Right now, in the midst of a major recession economy, you can make a plan for your future. Developing your money smart skills to focus on increasing your cash flow monthly will keep you in solid control of your financial destiny.
Here are three money smart skills to consider:
Look for trends!
Focusing on what is currently happening will not change your future. You have to look ahead. For instance, interest rates are at historical lows right now. It is tempting to think that they will stay low but history tells us that what comes down must go back up. When looking at taking out a new loan or refinancing now would be a great time to lock in at a low rate. A money smart person would resist the temptation of lower payments from an adjustable rate mortgage because they would be making a plan for the future.
We are also in a deflationary phase with the dollar right now. Prices for houses and other items of true value have dropped. I have rental property and the value has dropped and part of me wants to panic and sell but because I have learned the money smart skill of looking for trends I plan to keep my property until the prices trend back up. As long as my house stays rented it will bring me cash flow monthly regardless of how it is valued.
For those in business, study of trends can make or break your future. When a business correctly recognizes a trend it can get a jump on the competition. Right now there is a large movement of people into home based businesses. Companies are downsizing so jobs are scarce and many people do not want to commute to work every day. Personal computers allow individuals to reach large audiences without having a huge advertising budget. Even people with a secure source of income are seeing the benefit of additional cash flow monthly to make ends meet and to have money to plan for their future.
Budget for today, save for your future!
This sounds so simple but in our current recession economy it is not so easy. Chances are your money is already running out long before you pay for everything now, much less having anything left over to plan for the future. Money smart planning would be to get your head out of the sand and cut every possible expense you can right now.
Our government has poured literally trillions of dollars into our system to combat the recession economy and the bill for all this spending will have to be paid. At the same time you are cutting every expense you will need to increase your cash flow monthly. Plan to put your head down and work some extra hours to build a home based business.
Use the extra money to pay down your debt and then invest in assets to bring you more cash flow monthly. As a hedge against inflation, rather than saving money only in the bank or in other paper assets like stocks, you will want to hold a certain sum in precious metals such as silver. Hold a portion of these in physical form, not only in paper form such as exchange traded funds. Silver is a liquid asset that you exchange for cash if needed but it is not as easy to squander as paper currency. Silver is a metal used in industry so it has value other than as money and it is not as prone to speculation as gold.
Increase your money smart skills!
Your level of financial education will absolutely determine your future. Seek advice and guidance from professionals and successful money smart people. Not all financial advisers are actually successful investors themselves nor is everyone who writes a book or blog. I am blessed to have a very talented financial adviser in Neil Walters at Ameriprise Financial. Neil can be contacted at 512 314 5340. Much of the information I am sharing today is out of the monthly newsletter his firm sends out. I am also a huge fan of Robert Kiyosaki and his cash flow monthly principles.
The recession economy is a bummer but also an opportunity for money smart people to make plans for the future. The steps you take today will determine what the rest of your life looks like. Madalyn
Want to look at a good home based business model. One that actually follows a proven system and yields consistent results! Contact me.
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Wealth Building 101: Choose the narrow way
Wealth building requires you to take a different, more difficult path than the majority of people. This is precisely why not everyone is wealthy.
Enter by the narrow gate; for wide is the gate and broad is the way that leads to destruction, and there are many who go in by it.
Because narrow is the gate and difficult is the way which leads to life, there are few who find it. Matthew 7:13-14
What did Jesus mean by this statement? I think he was saying that just because the majority believes or acts in a certain way that does not mean that is the best way. As matter of fact, his statement suggests that the conventional or socially acceptable system is often a path to destruction.
Destruction is a strong term but lets look at some conventional ways or systems and see if there is at least an element of destruction built into them:
Our conventional medical system
Our social security system
Our public school system
Our political system
All these systems were designed with good intentions, but are they working? Do we need to consider changing them?
For instance, here are some alternative ways to consider:
We need as a society to take more responsibility for our own health rather than waiting until we are sick and looking for a magic pill
We need to take responsibility for our own retirement by planning ahead
We need to teach our children more from home so we know what they are learning
We need to pick our leaders by there merit not their party
Why do we not jump up and make these changes? Lack of time and money.
Why do we not have time or money? Because we choose the conventional path to wealth building.
What is the conventional way to wealth building? Work hard and save your money. How is that working out for you? Like our other conventional systems, this one needs to be adjusted.
The alternative path to wealth building should be to gain money smart skills so you can work smart and bring in cash flow monthly by building or purchasing assets . Once your assets are bringing in consistent, passive cash flow monthly you have time and money to step out of or help change other conventional broken systems.
On a non conventional, but true, path to wealth building you will likely be criticized, made fun of or even pitied. Expect and accept this and remember what Jesus said about the narrow way. Madalyn
This blog is for seekers of the narrow way. Those who are sick of struggling in the conventional wealth building system of working hard but never getting ahead. I invite you to contact me about what I am doing to create cash flow monthly.
Money Smart Skills – restoring cash flow monthly
The last few months have been interesting. I was riding high in early April thinking I was close to having my debt from extra house building expenses almost paid off. I was dreaming of all the money smart plans I had for that extra $1300 I had been paying each month for 2 years to clear this debt.
From this positive place I decided to invest in my future money smart skills by signing up for the Kiyosaki Rich Dad education coaching course. The charge for this year long coaching class was $8000 which did not seem that high to me based on what I usually spend each year for my veterinary continuing education.
No sooner had the ink dried on the check when my financial utopia evaporated. First a call from my property manager said my renter had skipped out. Then my income tax bill came in twice what I had budgeted for and if that was not enough I had some major unexpected car repairs.
I am so blessed to have been exposed to some good financial training so I could deal with these setbacks. Instead of burying my head in the sand I set out to raise my cash flow monthly and cut expenses.
Here are the steps I took:
I took some extra veterinary work which brought is some extra cash flow monthly
I increased my prospecting efforts in my network marketing business
I cut back my direct TV channels
I had the needed repairs done on my car and sold it and started driving my truck full time
Since the car was sold, I was able to cancel the insurance on it
I was able to do a loan conversion to drop my mortgage by .5 point which saves me $120 a month in my payment
My webmaster worked with me to shift some of her work to an apprentice who charges less and can do the less skilled tasks. This is saving me about $200 a month.
I consolidated all my remaining credit card debt onto my bank credit line at a short term 3.3% interest
With all these efforts I am still $19,000 in debt but, with my lower monthly expenses and increased cash flow monthly, I have a plan to pay this off within 1 year.
My rental property now has a new tenant. My network marketing business is growing and I am getting a good education in my Kiyosaki Rich Dad education course. I am so blessed to have several sources of income and control over my cash flow monthly as well as financial mentors to turn to. Madalyn
Check out this post: Cash flow monthly verses a pay check
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Money Smart Skills: Understanding the hidden damage of financial stress
Sleepless nights, irritability, stomach ulcers, depression. All these symptoms are common to those suffering from financial stress. Over due bills, debt, lack of savings, unexpected repair bills, high college tuition are typical triggers for physical stress related maladies, but,
What about the less obvious damage that occurs from financial stress:
Disappointment in your kid’s eyes when you missed his birthday party because you had to work overtime
Regular frustration from working at a job you hate because it pays the bills
Less robust health from eating only conventionally grown food because organic is more expensive
Weight gain from skipping regular exercise because you are too tired
Chronic health challenges that could have been avoided with buying good nutritional supplements and better eating habits
So even if you can pay your bills, don’t have debt, ulcers or clinical depression you may still suffer from financial stress that is less obvious. An extra $500 of cash flow monthly could shift you into financial peace. Helping a few other people have financial peace can bring you financial freedom.
A home based business that can be built along side your current source of income is what many Americans are choosing to relieve financial stress. A home based business can be started with a minimum investment and can grow as big as you are willing to grow it. Think about it. Madalyn
Can you see the power of a home based business?
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Money Smart Skills: What to do with extra cash flow monthly from your home based business
As you build your home based business, you will have extra cash flow monthly after you cover your expenses. How you handle the extra income will determine if you are able to advance to true financial freedom.
Money smart people reinvest extra cash flow monthly back into their business until the business is solid and growing at a steady pace. Money smart people resist the temptation to spend extra cash flow monthly on non business related expenses such as a new car or other luxury.
Money smart people realize that as they build their home based business they are building an asset that with time will buy them financial freedom. A home based business not only brings in extra cash flow monthly, it also provide tax savings each month in the form of business related deductions.
Money smart people understand that in the early stages a home based business does not bring in large amounts of cash flow monthly but if these modest sums are saved and invested with a long range plan, financial freedom is the result.
For example, say your income from your home based business combined with tax savings increases your cash flow monthly buy $500. You could spend this extra money on a new car payment or other luxury or you could use it to advance your financial freedom plan using the steps below.
Money smart ways to handle extra cash flow monthly:
Reinvest in your business for marketing, business training or infrastructure
Pay down debt
Invest in additional assets such as real estate, commodities or the stock market
Once your cash flow monthly from you investments surpasses all you monthly expenses you are financially free and you can spend any additional cash flow as you please. Not only that, you can choose whether you want to continue working in your business. This is the way money smart people think and plan their lives. Madalyn
Check out this blog: Invest in assets
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Wealth Building 101 – Why you need a coach
Last Monday I had 3 coaching calls before noon. One with my Kiyosaki, Rich Dad education coach, one with my network marketing coach and one with my personal and business coach. Yesterday I took my horse and had a lesson with my barrel racing coach.
Why do I work with all these coaches? The answer is simple. All these people know more than I do about what I want to get better at. I want to become more money smart, be a stronger network marketer, a better writer and person and learn to barrel race. I sure can’t do these things by myself and be successful.
Being coached is not always a pleasant experience. I don’t particularly enjoy being told what I am doing wrong but I know my coaches have my best interests at heart and they give me positive feedback along with the constructive criticism.
My coaches see what I can’t see. For example, with my barrel racing, I am supposed to run my horse full speed to a spot a few feet from the barrel, slow down enough to turn, but not lose momentum. I find that when I slow my horse down we lose momentum and end up losing a lot of time in our turns.
My coach was able to see that I was stopping my body momentum instead to continuing to drive my horse forward even as we slowed down to prepare for the turn. She modeled what she wanted me to do on the horse she was riding.
My coach pointed out that I was thinking slow down when I really needed to be thinking gather and prepare. A Ha! I got it. I doubt I would have figured this out myself and even if I did it would have been after much stress for me and my horse.
I also tend to be off in my timing when I ask for my horse to get ready to turn. Unfortunately, this is not something my coach can teach me. Perfect timing has to come through feel and this will take lots of practice. What my coach can do, however, is help by calling out when to give the slow down cue until it becomes instinctive for me.
In summary, why you need a coach:
A coach knows more than you about the subject you want to get better at
A coach has your best interests at heart and gives you encouragement even as they point out your mistakes
A coach sees things that you can’t see
A coach will model the correct actions
A coach will point out your limiting or incorrect beliefs
A coach can cover for your lack of skill while you practice
I love my coaches. I would recommend the Kiyosaki, Rich Dad education training program to anyone looking to go to the next level in becoming money smart. I love my business coach. She is a true friend and mentor. I love my network marketing coach and would never try to work my business without her. My network marketing coach works with me and my group in the big business, network building model. I am looking for a few partners who are ready to increase their cash flow monthly quickly and predictably. Contact me. Madalyn
For similar information check out: Is you dream big enough?
Network marketing: See it. Want it. Do it.
My business partner, John David Mann summed up the three things which have to be in place for a person to realize the significant cash flow monthly available from a network marketing business. You have to See it, Want it and Do it. I think most people can understand the need to want it and do it but what does See it really mean?
When he says See it, he means see the big business model of network marketing. Most people have only been exposed to the small business, product selling model of network marketing so even when the big business model of building a network of customers is presented they can’t really See it. I have come to understand that, like me when I first heard about network marketing, most people do not have a frame of reference in their minds to fit the big business model of network marketing. Selling products is the small business model for network marketing and what most people can relate to.
Both the small and big business models of network marketing are legitimate but they are very different. Much of the misunderstanding of the network marketing industry involves confusing the two models. People want the passive cash flow monthly of the big business model but because they don’t really understand it they end up doing the small business model.
These new network marketers are expecting to get the significant, passive cash flow monthly they heard about in the presentation of the big business model and when they don’t see these results, with their small business model efforts, many get frustrated and quit. This misunderstanding is rampant in network marketing and creates a disconnect that is bad for the industry so I would like to clarify the differences.
The small business, self employment model for network marketing is a time for money model that can bring nice returns to a person looking to build a storefront type business without actually having to stock products. The income from this model can be significant but will be limited by the time a person has to find, educate and communicate with customers. The better you become at these skills the higher your check will get but the less time freedom you will have.
Small business or self employment network marketing model:
Focus on product sales
Focus on large personal base of customers
Focus on commissions generated from personal customer base
Focus on educating customers about products
Focus on communicating with customers about product discounts to generate sales
Income limited by time available to spend with finding and keeping customers
Big business or leverage model of network marketing:
Focus on a simple, duplicable, effective, profitable system
Focus on building a network of customers by leveraging the networks of others
Focus on commissions generated from sales all through your network
Focus on educating partners on personal growth and business skills
Focus on communicating with partners how to maximize their checks
Income not limited by time because you leverage other people’s time
In my post, raise your cash flow monthly by $500, I describe the small business model. Why do I do this when I think more from the big business model? I do this because this is where I started in network marketing. The small business model is where most people can relate and through working the small business model a person can bring in some income even as he or she develops the skills needed to work the big business model.
To become a big business thinker you have to change who you are fundamentally and change your habits to match who you are becoming. This is a process and a journey.
For those reading this blog who feel you see the big business model of network marketing, want it and are ready to do it, I am looking for 3 new partners who are ready to move quickly forward over the next 30 days. Contact me. Once I have my 3 big business partners I will not be looking again for at least 6 months. Small business partners are always welcome to work with me at your own pace. Madalyn
Wealth Building 101 – Waiting for the best deal
Playing the Kiyosaki, Rich Dad education game, Cash Flow, has taught me about becoming money smart but even more value has come from the wealth building mindset the game fosters. The game teaches how to manage your cash flow monthly but it also teaches you to be patient and wait for the best deals to come along.
The object of the Kiyosaki, Rich Dad education game is to get your cash flow monthly higher than your expenses. If you spend every penny you have the first opportunity you get the chances are you will be disappointed when a better cash flow monthly deal comes along and you have no money to invest.
While there are characteristics of a good deal that are specific for certain assets such as businesses or real estate, there are also characteristics of a good deal that seem to hold true for all endeavors.
For example, does your deal withstand evaluation of the details:
In relationships it is wise to get to know someone before you make any commitments.
In real estate, you want to get to know a property well before buying it.
In the stock market, you want to look at the balance sheets and management of any company you buy stock in.
For example, compatible friends, neighbors and sectors:
In relationships you would want to look at the kind of company a person keeps to get a better understanding of their true values.
In real estate, you would look closely at the neighborhood before making a purchase.
In the stock market, you look at other companies in the same sector and see how you company compares and how the whole sector looks in relation to other sectors.
For example, good cash flow:
In relationships you would look at the persons financial status and beliefs about money and assess the person’s ability to contribute to any joint project.
In real estate you would want to determine the cash flow monthly you would be able to count on from the property after taking into consideration all expenses and possible periods of vacancy.
In the stock market, you would expect you stock to rise in value or bring in cash flow monthly via dividends or covered call options.
For example, staying power:
In relationships you would want to invest your time in someone only if you felt they would hang around long enough to be worth the investment.
In real estate you would want a property that was well built and in good repair if you intend for it to pay you consistent cash flow monthly.
In the stock market you would want a stock that you are comfortable holding long term even if the market takes a dip. A good stock will pay you cash flow monthly even in a flat or down market if you get dividends or option income.
For example, good values:
In relationships you want someone who shares your values.
In real estate you want a property that offers good value to your tenant.
In the stock market you want a company that offers a product of quality that is in great demand.
In summary, the best deals have these common characteristics:
Require you to do your due diligence to get to know them personally
Surround themselves with other good deals
Contribute back what you put in
Have real value and willingly offer real value to others
The Kiyosaki, Rich Dad education game, Cash Flow teaches how to find good cash flow monthly deals and avoid the bad ones. You can learn these same lessons in real life but real life is not nearly as forgiving as a board game. Madalyn
For additional thoughts on wealth building get our free e book.
Want additional financial education check out these money smart skills:
Reduce debt
Increase cash flow monthly by $500
Invest in assets
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Kiyosaki Rich Dad Education: Cash flow monthly gets you out of the rat race
Your underlying beliefs about money show up like crazy when you play the the Kiyosaki, Rich Dad education game, Cash Flow. My new Xango business partner came over with a friend last Friday and we all played for about 3.5 hours. I love to watch the reactions of new players.
The Kiyosaki, Rich Dad education Cash Flow game is designed to teach the importance of getting your passive monthly cash flow higher than your expenses. Debbie drew the doctor card and her friend, Bruce, played as a truck driver. I was a lawyer this time. Debbie, with her high doctor paycheck got off to a roaring start and quickly purchased an apartment complex bringing in a whooping $1,700 passive cash flow monthly.
Bruce made a good stock trade and bought a nice 3/2 rental house. I bought a condo but it did not bring in much passive cash flow monthly so I was behind the others. Debbie eventually sold her apartment complex because she needed much more passive cash flow monthly to cover her high expenses. After she paid off many of her expenses she started over to purchase the additional assets needed to bring in high passive income. As a doctor, I can sure relate.
Bruce in the meantime, with his lower monthly expenses, sold his 3/2 rental house and bought the apartment complex and just that quick he achieved the goal of getting his passive cash flow monthly higher than his expenses and was out of the rat race. The look on Debbie’s face was priceless. I can tell this woman likes to win. I love that in a Xango business partner.
I usually get out of the rat race quickly but this game was an exception. When we stopped playing I had just landed on the downsizing space for the 3rd time and was completely broke even though I still owned the condo. The next morning I asked God what had happened to me in the game. God explained gently to me that basically my attitude had sucked. I have had some financial disappointments in the last few weeks and evidently they have made me cynical.
I had to admit grumbling when I landed on the baby space which immediately lowered my cash flow monthly by $380. Then I said something to the effect, “this always happens to me” when I got downsized. I promptly got the game back out and started where I had left off, dead broke.
Here are the lessons I got this time from playing the Kiyosaki, Rich Dad education game Cash Flow:
Stay in gratitude
Wait for the best deals
Focus on cash flow monthly
Let go of fear
The bank is your friend
With an improved attitude I promptly hit the baby space twice more and was downsized again but interestingly I had my passive cash flow monthly over expenses and was out of the rat race in about 1 hour. Attitude may not be everything but it sure helps. Madalyn
Want additional financial education check out these money smart skills:
Reduce debt
Increase cash flow monthly by $500
Invest in assets
Money Smart Skills: When cash flow monthly turns negative
When I started writing this blog I thought I was doing pretty well with my money. I was due to have my credit card debt paid off in a few months and I was ready to start investing. Most of my businesses had break even or positive cash flow monthly. I paid to join the Kiyosaki Rich Dad education program so I could go to the next level with my money smart skills. This course put me back into credit card debt but I felt the Rich Dad education would be worth every penny.
Well, how quickly things can change. Within 2 weeks of starting the Kiyosaki Rich Dad education program my tax bill came in twice what I expected, the timing belt broke on my diesel Jetta, destroying a perfectly good engine. Suddenly my positive cash flow monthly was significantly negative. I was reeling from these events, but the final straw came when my property manager called and told me my renters had skipped. My only rental property has already been a challenge because of the economy and losing the renters may cost me the house.
So, how did I handle these setbacks? I cried. Yep, it took me 24 hours to digest this last blow and then I had a major meltdown. Unfortunately, my good friend and business partner took the brunt of it through absolutely no fault of her own. She handled it well. Everyone should be blessed with such a good friend.
Crying let off some pressure but did not make the problems go away. The saving grace is that I have been in this place before and I know this too shall pass.
My plan to regroup looks like this:
1. Pray - Not for God to rescue me from my mistakes, but for Him to guide, support and love me through the process of dealing with the fallout.
2. Cut every expense possible – I will sell my car after it is repaired. This will give me a small amount of cash and save on insurance. I do have my 1 ton truck to drive. I have cut my direct TV to absolute minimum and there will be no eating out for a while. While these steps will not get my cash flow monthly positive, every dollar counts.
3. Increase cash flow monthly – Having several businesses allows me to increase my efforts when I get in financial trouble. I have to resist taking on more veterinary clients because this work will take me away from my efforts to increase my cash flow monthly. This concept was one of the most difficult ones for me to grasp in my Kiyosaki Rich Dad education. Working harder on my S quadrant self employment job will not increase my long term cash flow monthly. No more casual business building with my Xango networking. Many or the most successful leaders in the company came into the business with severe financial challenges. I will have to get busy and work harder and in a money smart fashion.
4. Seek help from professionals – I plan to take full advantage of my Kiyosaki Rich Dad education coaches to help me figure out how to handle my rental property. It is hard to admit all the mistakes I made when I bought this property but now I know.
For many this kind of roller coaster financial ride may be too uncomfortable but for me I see it as a learning process. I have made many financial mistakes but each mistake has eventually brought me closer to my goal of having my cash flow monthly higher than my expenses. Until I get my cash flow monthly where it needs to be I will still struggle with finances. The Kiyosaki Rich Dad education program has helped me understand this. Madalyn
Negative cash flow monthly does not turn positive by hoping. Check out this post. Hope is not a strategy
Working more hours may not be the long term answer. Check out Cash flow monthly in your mailbox
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