Tax Moves that You Can Make to Improve Your Bottom Line

Learn what you can do to lessen your tax bite and achieve more in your future…

 

As December rolls in and 2018 comes to an end it is important that you review your tax situation at this time and determine if there are some year end and year beginning moves that you can make to put yourself in a better position for short and long term success.

 

In this discussion TheWealthIncreaser.com will look at a number of moves that you can make to improve your tax position so that you can reach your short, intermediate and long-term goals so that you can enjoy life more and lessen your tax bite.

 

It is important that you are aware of new tax law changes that occurred in 2017 under the jobs and tax cut act and more particularly the ones that might affect you and your family.

 

You want to know your 2018 tax projections for your taxes that you will do in 2019 for the 2018 tax year.

 

However if you have not done so by now—you can at least prepare properly and put yourself in position to make other tax moves and possibly adjust your w-4 withholding in 2019 and not have any tax surprises on your 2019 and future year taxes.

 

Amend Your 2017 Return if You are Eligible Based on Tax Law Extensions Passed Earlier this Year

 

It is important that you are aware of tax law changes that occurred in February of 2018 that extended more than 30 tax breaks, including those for businesses and even a few for individuals and families.

 

The MIP (mortgage insurance premiums), deduction for tuition and fees of up to $4,000 and energy efficient home improvements went back on the books for 2017 returns and 2018 returns are still up in the air–as far as extensions are concerned.

 

To claim the deductions for 2017 if you are eligible you would have to file an amended return (form 1040X).

 

If after amending your return your AGI is reduced—that reduction could affect your state return and you could possibly amend that return as well and get additional income.

 

Project Your 2018 or Future Year(s) Tax Bill

 

You may be due a larger refund or you may owe more in taxes.  However, you won’t know if you don’t get out in front and project your 2018 tax bill as best you (or your accountant) can.

 

You can then determine if you need to adjust your w-4 in 2018 and better direct your refund or balance due—depending on your goals.

 

With new withholding tables now on the books you can now go to irs.gov and utilize the w–4 calculator to better plan your taxes after you have projected your income.

 

You can then go to your employer and adjust your withholding if you see a benefit.

 

Determine Now the Likelihood that You will Itemize or Take the Standard Deduction

 

With the standard deduction being nearly doubled for some taxpayers, it is expected that the number of those who itemize will decline.

 

Will you be in that number that utilize the standard deduction or will you itemize–or do you even care?

 

If you itemize you have the ability to deduct more items—but will the cash total be higher than the amount of the adjusted standard deduction based on your filing status that were put into effect with the job and tax act of 2017?

 

Be aware of the tax ramifications and don’t forget to consider the implications of your state taxes depending on the choice that you will make (itemize or standard deduction) as a lower itemized total at the federal level could still be of benefit–if it will help you more at the state level (your overall tax refund would be more or your overall tax payment would be less).

 

Find Ways to Earn Additional Income

 

Whether you get a second job, invest in the market both inside and outside of your retirement accounts, form a company of your own (Sole Proprietorship, C-corp., S-corp., Partnership, LLC or any other legal form) that you create based on “your” desire, ambition and passion—it is important that you use your imagination to find new ways of generating income.

 

Be aware of the tax ramifications and again don’t forget to consider the implications of your state taxes depending on the choice that you will make (investment choice(s) and ownership structure) and also look at non-tax issues in detail and do a thorough analysis as that analysis may sway your decision in the opposite direction of where you planned to go.

 

Questions You Need to Ask Yourself if You Are Considering Opening a Business of Your Own Include the Following–Among Others…

 

Can I really make money and pay all of my monthly expenses—including my taxes?

 

Can I sell my product or service for more than it costs to bring to market?

 

Can I serve my intended audience and/or customers or will I be overwhelmed and unable to meet the needs of my customers or potential customers in a timely manner?

 

Will I create a business plan and put together a team that can handle my legal, tax, banking, regulatory, technological and accounting concerns?

 

Do I believe in the product or service that I will be promoting and selling?

 

These are some of the questions that you must ask and answer upfront as the tax code generally favors those who take risks.

 

Even so, you want to take a calculated risk where you know the probability of success is in your favor when endeavoring in a new venture.

 

Create an HSA Account

 

A Health Savings Account provides you the opportunity to save for your future health care costs in a tax efficient manner (you can deduct your annual contributions on your tax return to reduce your taxes and your earnings grow tax free–and withdrawals are tax free if used for medical related purposes).

 

The good news is that there are “no income limits” and you can “invest in a variety of financial products” such as mutual funds, stocks, bonds etcetera to help guard against rising health care costs that you may incur in your future.

 

There are also “deductible qualifiers” if your employer offers health insurance.  However, you can also open and set up an HSA account at many financial institutions yourself if your employer does not offer a plan or you are self employed or you don’t otherwise qualify for medical coverage.

 

It is also important that you know what to consider if you decide to set up an HSA account and a recent bankrate.com article spells out what you need to consider in clear terms.

 

If your employer offers an HSA and you elect to participate you would not be taxed on the contributed amount or pay FICA on the contributed amount.  Even though you received the tax benefit through your employer you would still have to file form 8889 on your  personal tax return.

 

If you qualify for a HSA, you can deduct the contributions on your tax return even if you don’t itemize by using form 8889.  Keep in mind you will face serious penalties (20% in the 2018 tax year) if you withdraw funds for non-medical related expenses.

 

Once you reach age 70 ½ there are no mandatory withdrawals–therefore you could potentially continue to let your account grow in a tax-free manner if you had no need for the funds! 

 

Be sure to seriously consider the option now–and not look back in regret years down the road when the costs have skyrocketed and your financial options to cover your health care expenses are limited or non-existent.  If you remain healthy late into your 80’s or 90’s you will have tremendous growth in the account that you can use outside of medical related expenses after you turn age 65 (taxes would be due on withdrawals but there would be no penalty).

 

If used for medical related expenses after age 65 there would be no taxes due at all!

 

HSA’s have annual contribution limits (currently $6,900 for 2018 and $7,000 for 2019 for families–with a $1,000 catch-up provision for those age 55 and over).  Withdrawals are “penalty free” for all purposes after you reach age 65!  However, if you use the funds for other non-medical purposes taxes would be due at your ordinary income tax rate in effect at the time of  your withdrawal.

 

If your employer offers an HSA your contributions can allow you to avoid payment of FICA taxes, thus providing you an additional 7.65% additional savings on top of the amount that you contribute annually–all while helping you reduce your taxable income.

 

If you earn $100,000 a year and contribute $7,000 you would pay taxes (federal, state and FICA) on $93,000–the $7,000 contribution would be excluded from federal, state and FICA (social security) taxes!  In addition, your income minus your contribution (up to the limit for your filing status) can be used for calculating whether you are eligible for a subsidy under the Affordable Care Act.

 

Open an IRA Account

 

Did you know that an IRA (Individual Retirement Account) provides you another tax-efficient way to manage your retirement income?

 

It is important that you realize that there are basically two types of IRA’s:

 

1)    Traditional

 

2)    ROTH

 

A Traditional IRA allows you the ability to contribute up to an annual maximum and then you can deduct those contributions on your future year tax return—even contributions up to the filing deadline if the amount does not exceed the annual maximum (currently $5,500 or $6,500 if age 50 or older).

 

The result of deducting your contribution would normally be owing less tax or getting a larger refund.  Once you retired you would pay taxes at your current tax rate on the withdrawals.

 

Mandatory withdrawals are also required once you reach age 70 1/2!

 

A ROTH IRA allows you to make non-deductible contributions that have already been taxed—therefore your withdrawals would be tax free at retirement.

 

Roth IRAs do not require withdrawals until after the death of the owner.

 

With the Traditional IRA and the ROTH IRA there are income limits and other qualifier’s, however both are worth real consideration if you currently have the discretionary income at this time—or you want to learn more so that you can plan your future in a more tax efficient way.

 

Conclusion

Your tax moves at this time or at other times during the year can prove to be beneficial for you and your family.

 

All tax situations are unique, however there are moves that you can make to put yourself and your family in a better position tax-wise.  In this discussion TheWealthIncreaser.com has only scratched the surface in the coverage of tax moves that you can possibly make.

 

Even so, those that apply to you or that you may be considering can get you moving forward in a real way!

 

By taking several hours out of your busy life and organizing your tax and other financial data–and reviewing and seeing clearly where you now are at you can better position yourself and your family for future success.

 

Now is the time to outwork and outthink what is working against you and now is the time to turn the tide so that you can make your dreams come true.

 

By taking the time to think about your taxes and do something about them in a sincere way–today–you are on a path toward real success–if you give it your best!

 

And always remember the tax code normally favor those who take risks!

 

The tax code may not be as favorable for some due to their current family size, marital status, whether they were negatively affected by the tax law changes (i.e. claimed unreimbursed employee expenses—including mileage on their automobile etc.), their income level, the number, types and amount of deductions and credits available, whether they have a mortgage or rent and other factors.

 

All the best toward your tax moves and future success…

 

 

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Education Planning & Wealth Building

Learn why starting your education funding at the earliest time possible serves your and your family’s best interest…

 

As the holiday season kicked in and the creator of TheWealthIncreaser.com spent time with his children, grandchildren, siblings, mother, in-laws and other loved ones it came into focus after a number of days of reflection the need to address estate planning/wills at this time.

 

However, after dropping my youngest daughter off at the airport to send back to college the urge to write about education planning and how you can better serve your children (or yourself) over the coming years as they prepare for college—and leave their nest superseded the urge to discuss estate planning at this time.

 

It is important that you don’t do like the creator of TheWealthIncreaser.com did (not saving enough for his 3 children on the front end and had to use current income to pay for tuition of his youngest daughter) by not saving enough due to unforeseen events and adversity that occurred.

 

In the current economy it is important that you know the areas of your financial life that needs addressing and you must put a plan in place to address those areas!

 

If you anticipate future educational expenses whether it be for yourself, your children or your grandchildren—you must have a thorough overview and understanding of how you can fund those expenses at the earliest time possible.

 

It is also critical that you know other options that you may have to pay for educational expenses for yourself and/or your loved ones.

 

To better direct your future you want to know your educational outlook and where you are headed in a manner that you can comprehend!

 

You want to understand what you need to do “at this time” and “this discussion” will get you started and up to speed on “funding” educational options for you and/or your children in a manner that can allow you to avoid the worry, stress, anxiety, fear and frustration that seems to curtail so many.

 

When you lack the direction that you need to go and you don’t know the options that you can proactively take to mitigate a financial shortfall when it comes to educational funding for yourself and/or your children—you put yourself and your family at a major financial disadvantage throughout your lifetime!

 

In this discussion TheWealthIncreaser.com will discuss ways that you can fund your or your child’s education in a manner where the advantage will be in your favor.

 

 

Tax Advantage Educational Savings Options

 

Coverdell

Pre-paid Tuition

529 Plans

Many Other Ways

 

Retirement Savings for Education

 

IRA’s

 

401k’s

 

Thrift

 

Many Other Ways

 

Current Income

 

w-2

 

Sideline Income

 

Work-study or child working as a means to fund education

 

Many Other Ways

 

 

Conclusion

 

Scholarships—educational, athletically, musically etcetera, must be pursued and your child must be active in making their continuing education dreams come true by actively pursuing scholarships and having a real interest in how they (and/or you) can save for and fund their education now—so that they (and you) won’t be blind-sided after the fact or when it is too late.

 

Apply early and often as scholarships and grants can go quickly…

 

In most cases planning years in advance and knowing the number that you need to reach to fund your or your child(s) educational requirements will be the most effective approach.

 

If you come up short you may have to use your current income and possibly your retirement income.

 

Ideally you want to avoid those options by having your child obtain a scholarship or using other means of payment–such as saving NOW so that you have a certain level of comfort on the inside of you!

 

However,  your options may be limited if you fail to plan now.  Don’t be like the creator of TheWealthIncreasor.com and come up short on your educational funding goals!

 

Start now–and make your or your children’s goal of continuing education, a reality by doing the necessary planning at this time.

 

All the best to your continued educational success…

 

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Early Retirement & Wealth Building

Learn how you can build wealth efficiently and retire early…

 

In 2003 the creator of TheWealthIncreaser.com came up with a strategy to help young adults and those graduating from college implement a new system for building wealth efficiently and possibly retire early if that was their goal.

 

After reading a most recent article in Kiplinger Magazine about Millennials who retire early (in their 30’s) TheWealthIncreaser.com found it quite inspiring to see young workers retire early and that inspiration brought to the surface the topic of early retirement in the current economy and how you can do so in a more efficient manner.

 

In the article they were called FIRE (Financially Independent Retire Early–a great acronym and financial success formula that TheWealthIncreaser.com did not create–however, TheWealthIncreaser.com did create FAM® that is assisting those who desire real financial success achieve more than just financial literacy) and they are a group that is growing as more individuals and families see real advantages of retiring early and living life on their terms.

 

Regardless of your age you can retire early or achieve your goals more efficiently during your lifetime by understanding “your life stages” and determining the path that you will take toward making what you desire most during your lifetime–occur!

 

You must also have an expectation of success and a real knowledge within that you truly want to pursue early retirement or reach your goals in a more efficient manner.

 

You can achieve success more effectively and efficiently by doing the following on a consistent basis:

 

1)   Have a real understanding of the X Factors…

 

Experience, expertise, exercise and excellence must be a part of your make-up if you are to achieve at your highest level.

 

Your past experiences helped shape where you are now at and you must use that experience to your advantage.  You must also determine what you are good at or what you desire to be good at and pursue toward that with zeal and expertise will follow.

 

You must ensure that you are around to enjoy your early retirement or any retirement by ensuring that you exercise regularly, eat healthier and you feed your mind with the right information that can move you forward in a manner that works with your mind.

 

Lastly, you must have a mindset of excelling in all that you do.  You then develop the habit of consistency that you need to have to achieve at your highest level throughout your lifetime.

 

2)   Have high standards throughout your lifetime…

 

You must set lofty goals whether they be financial or otherwise.  However, setting lofty goals is only the starting point!

 

You must have every intention on achieving the goals that you set and you must visualize yourself achieving what you see.

 

You want to do your absolute best toward reaching your goals and you must be fully committed and have a high level of determination to reach or exceed the standards that you set.

 

3)   Have a mindset that is geared for success…

 

You must not let worry, anxiety, fear and frustration direct your life as it will in many cases lead to you not putting in the effort that is necessary to achieve at an optimal level and reach your financial goals in an efficient manner.

 

Although uncertainty at some level resides inside all of us—you must have an outlook of your future that is clear to you and doable by you (within your mind) if you put in the effort and stick to your plan.

 

Your ability to focus on what is important along with having the success qualities that are needed for consistent success will help direct your mind on a daily basis in the direction where success lives–and you will increase your odds of achieving your goals exponentially.

 

 

Conclusion

 

Early retirement or having the option to retire early is a lofty goal and many are pursuing that path in the current economy.

 

If you are one who would like to position yourself for early retirement you can do so by gaining the required knowledge and skills that are needed to do so at the earliest time possible.

 

For those of you who would like to continue working, you can put yourself in position to have an “early retirement” as a real option by planning now and doing so with a realistic picture of what it will take to get you there.

 

You must pursue your retirement goals in a righteous manner and in a manner that is in alignment with your core values.

 

You must ask and answer the right questions at the right time in your life so that you can repair, improve, or avoid that which serves against your early retirement ambitions.

 

You can go to the following links to learn more about early retirement and retirement in general and really make the goal of early retirement happen for you and/or your family:

 

Young Investors & Personal Finance

 9 Tips for Retiring Early 

College Graduates & Wealth Building

Wealth Building Now

Mr. Money Mustache Blog

Retirement Basics

All About Retirement

Compounding & How You Can Benefit

Life Stages of Financial Planning

Understanding the Various Types of Income

Invest like Warren Buffett

 

FIRE (Financial Independence, Retire Early) is a lifestyle, also referred to as a movement, aimed at reducing expenditures and increasing investing in order to quickly gain financial independence and the possibility of retirement at an early age.

 

All the best to your early retirement and lifelong success…

 

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Mindset of Endurance & Wealth Building

Learn why looking at your future outcomes “in a realistic time frame” or an “enduring way” can more effectively direct your future…

 

In the current economy it is important that you have the mindset that is necessary to “stick it out” whether difficulty arises or things happen smoothly during your lifetime.  To better direct your future so that you can have the staying power or mental endurance that will lead to you taking the steps that will lead you toward your goals–you must have the right mindset!

 

It is imperative that you know where you want to go, know how you plan on getting there and you “must have”  the mental fortitude that will get you there–regardless of how difficult the journey may be.

 

Now is the time that you fine tune or improve upon where you are at so that you can have the mindset that is needed to take you where you desire or need to be.

 

In this discussion TheWealthIncreaser.com will discuss ways that you can approach reaching your wealth building goals in a more enduring manner.

 

A made up mind can overcome many obstacles that can hold others back.   It is the desire of  TheWealthIncreaser.com that you make up your mind to pursue your goals with more endurance as by doing so—you increase the likelihood of success tremendously because you have prepared your mind for the journey.

 

You can  make real success happen now by doing the following:

 

Determine Your Path Toward the Success that You Desire…

 

Do you at this time have a feel for where you want to go  financially?  Now is the time to formulate real goals and now is the time to gain the vision of what it will take to achieve the goals that you desire.

 

Once you determine where you are at you must then choose a path that will take you forward–or to the “top of the mountain”–so to speak (you will reach or exceed your goals)!

 

Are you going to pursue a path to success that can get you real results or are you at a point in your life where you are still trying to discover the path that you will take?

 

Do you have a burning desire to reach higher and achieve more during your lifetime or are you content with where you now are?  If you don’t have that burning desire to achieve more at this time–you more than likely won’t have what it takes to develop a “mindset of endurance” at this time.

 

Fine Tune Your Activities on a Consistent Basis…

 

Have you mastered ways that you can achieve success in the current economy and have you looked at more effective ways of reaching your goals?

 

By re-analyzing where you are at and where you want to go you can achieve far more on a daily basis!  You must realize that adverse happenings that are out of your control will occur as you pursue your goals–however you must press onward–even though difficult days are in your midst.

 

By  fine tuning or re-analyzing what you have planned for your financial future you give your mind and heart more direction and you help make what you desire most happen–because you are “tuned in” to your future success.

 

Conclusion

 

With many attempting to do something new or different that can totally change the direction in their life can be a tough adjustment.

 

However, if you are one who desire to pursue your destiny, you must make the decision to change the direction in your life at some point.    It is the desire of TheWealthIncreaser.com that this page and site has at least got your mind to open up some and assess your current finances and the direction that you want to go in your life in a sincere manner.

 

On this site you will find a number of ways that you can build your endurance and change your mindset for the better.

 

However, it is  your decision to decide to act on information that you feel can move you and your family forward.

 

You can choose to have a mindset of endurance and comprehensively pursue your dreams or fret later in regret because you have not reached your goals because you did not have the endurance to “stick it out” when difficult challenges came your way.

 

Isn’t it time you use your abilities, skills and talent that you now have or will soon learn to “focus in” on what you want to achieve and do so with “endurance” so that you can achieve more and win in your life.

 

Always remember that distractions affect your focus, without focus—you won’t do things right or at an elevated level.

 

Always be aware of the power of focus!  The less clutter in your mind means more success because you can focus on winning financially and building wealth without all of the distractions that seem to hold so many back.

 

Isn’t it time you cut things down to what is important!

Isn’t it time that you learn a few steps that you can take that works with your focus—not against your focus!

Isn’t it time that you know what you want!

Isn’t it time that you gain the power that comes when you focus!

Isn’t it time that a strong vibration goes through you and the universe!

Isn’t it time that you gain a “mindset of endurance!”

 

Focus for you may mean saying no to the other good financial products that are out there and selecting the approaches that are on this site or it may mean deciding that the approaches on this site–are not for you–and focusing on another approach that better fits your focus objectives or where you want to go as you improve your finances and build wealth.

 

You must focus on your future and have the mindset that you will achieve what you focus on.  By doing so you will “endure”  all that comes your way and achieve the goals that you set–in a manner that will not sway!

 

Tips for Enduring Success:

 

Use written plans to make your goals happen…

 

Always realize that significant goals are not reached without proper planning…

 

Even though you may desire immediate success–reaching your goal(s) is a process and takes time…

 

You must believe in success if success is to come your way…

 

Patience may be required as you pursue your goals–make sure that you have the needed patience as you pursue your goals…

 

A wholistic approach or comprehensive approach is normally the best approach to take to achieve lasting financial success

 

You will reduce stress in your life when you put a plan in place to reach your goals and you know deep inside that you are committed to achieving the goals that you formulated…

 

Always realize that with financial planning there are solutions—it is never too late to plan your  future so that you can live and spend like you want to do—there are many solutions to get you to where you want or need to be…

 

All the best to your new “mindset of endurance” and your future wealth building success…

 

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Wealth Building 101 (Frequently Asked Questions)

 Learn about common wealth building questions that many have asked over a number of years…

 

Wealth building is a lofty goal and you should be commended for seeking new and possibly more rewarding ways of building wealth.

 

In this discussion TheWealthIncreaser.com will present to you a number of questions that have been asked by clients, visitors and others on a number of sites created by the publisher of this site that TheWealthIncreaser.com feel is important for your financial advancement.

 

Be sure to hone in and focus on the questions that are significant to you at this time as you may find a more effective way to meet your goals and advance forward more efficiently.

 

Common Questions

 

Q: What is umbrella insurance and why should I get that type of coverage?

 

A:  An umbrella insurance policy provides additional liability protection for you in addition to the coverage that you would have on your home and auto liability coverage.

 

It is an affordable option to provide additional protection against liability claims that may come your way during your lifetime that could force you to have to sell your assets, downsize, move to another community, lose your liquid assets and further cause undue headaches that could have been avoided–for in many cases “several hundred dollars” per year.

 

Q: How much life insurance should I get at this time?

 

A:  The amount of life insurance that is needed for you (and others) will vary depending on your age, family size, family structure and your future goals.

 

There are a number of ways to determine the coverage that you may need and they include:

 

  • 10x earnings ($50,000 in annual income multiplied by 10 means I need $500,000 in insurance coverage)

 

  • replacement cost (to pay off my car, house and the student loan that my spouse has been paying on for the last 15 years I need $350,000 in coverage)

 

  • need analysis (to pay off my mortgage and my 5 year old daughters future tuition and provide my wife and my daughter $100,000 cash for a 10 year period I need $1,430,000 in insurance coverage) and

 

  • Several other ways as well

 

Q: Am I able to take money out of my 401k for a down payment on a home?

 

A:  You are able to borrow against your 401k and possibly save in the short term, however there are risks.

 

You risk your retirement income being reduced, and there are potential tax consequences of borrowing against your 401k.  In addition many who borrow against their 401k never manage to pay the loan back.

 

However, legally you are allowed to borrow against your 401k, the question then becomes is it wise to do so—or should I do so at this time—or are there better options that I can take?

 

Q: After I retire and move to a new state can I lower my taxes?

 

A:  In many cases that is possible as many states have no or low tax rates and if you retired and moved to a new state you would in most cases be taxed at the rate in the state that you reside.

 

However, depending on the state that you moved from—taxes could still be owed and payable to that state.

 

Be sure to investigate further prior to your move on what will apply tax wise in your particular case.

 

Q: What is a healthy debt load for a family of four?

 

A:  The question is pretty much open ended and the answer will depend on your current income.  In general a debt load of 40% or less would be ideal.  However, in some cases compensating factors (a better school district, a more reliable car due to longer commute in your area, environmental factors, relative moving in, other additional income etc.) may lead to you exceeding the debt load of 40%.

 

Keep in mind the 40% debt load includes your housing and other debt.

 

If you make $120,000 annually or $10,000 per month your maximum or ideal monthly debt load would be $4,000 which in some localities would be possible.

 

A housing payment of $2,500 per month with a car payment of $500 per month along with other debt of $1,000 per month where you have roughly $6,000 to utilize in other ways (various monthly expenses, utilities, food, clothing, entertainment, retirement, vacations, investments, education planning etc.) will put you and your family in position for success in many areas and localities.

 

If you make “$60,000 annually”  or $5,000 per month you would be looking at a monthly housing payment of $1,250, a car payment of $250 and other debt of $500 and you would be in great position for lifelong success.

 

If you make “$240,000 annually” or $20,000 per month you would be looking at a monthly housing payment of $5,000, a car payment of $1,000 and other debt of $2,000 and you would be in great position for lifelong success.

 

In high cost cities such as New York and San Francisco you would more than likely have to exceed that 40% ratio—depending on your income.

 

The point is you want to have a debt load that is comfortable for you and allows you to live the lifestyle that you desire and save for your goals in a highly effective manner.

 

As to your family size—college planning, and the cost of raising children must be factored in as well–as that could further reduce your monthly discretionary income.

 

Note: The above numbers are illustrative in nature.  Any combination of housing and debt that is under 40% may be appropriate and the ratios must be interpreted from the money management perspective of the individual and/or  family.  Also, monthly debt as used in this discussion is debt that will exceed 12 months to pay off.

 

Q: How do I know the amount to save for college for my 5 year old daughter?

 

A:  The amount that you will need will depend on the college, in state or out of state tuition rates and the future value of the amount that you will need.

 

You can then use a number of approaches to reach or exceed that number.  If you fall short you may need to use your current income, take out student loans in your name or your child’s name, or borrow in some other manner.

 

The sooner you get started and the more discretionary income that you have available the more realistic the number that you need to reach can be reached.  In addition it is important that you and your child have an understanding of the pay scale in the current economy related to the major (degree) that they plan on pursuing.

 

You can go to Payscale.com to learn about salary info for selected majors that your child is or will consider in their future…

 

Q: I know I need a will to avoid probate, but how do I know if I need a trust?

 

A:  In many cases a trust is an effective tool for shielding income from taxation and providing a safety net for your heirs.

 

You most definitely need a will, however the decision on whether you need a trust can be a difficult one because it is based on a number of factors–including privacy as a “will”–will be made public (again no pun intended) and a trust will not.

 

Be sure to visit the estate planning page on this site along with All About Estate Planning on Realty 1 Strategic Advisors website to learn more.

 

Q: What is the amount of income that I should save to have retirement income until I reach age 95?

 

A:  Your retirement number will vary depending on your current age, your current  income, your ability to save and your future goals.

 

 You want to save enough to live at your pre-retirement level and take the vacations that you desire at a minimum.

 

In addition you may have other goals such as helping your kids and grandkid’s pursue their dreams as well.

 

This will all play into the “retirement number” that you need to achieve to make the goals that you desire materialize.

 

Conclusion

 

In the current economy you are presented with many choices and answers to your financial questions and this discussion hopefully pointed you in the right direction as far as building wealth more efficiently in the current economy—or any economy.

 

Fortunately for you and other visitors, there are hundreds upon hundreds of personal finance sites on the web and it is your responsibility to find one (or several) that you are comfortable with and can help you build wealth effectively and efficiently in the times that we now live in.

 

Your devotion to improving your finances at this time will provide you the opportunity to achieve more throughout your lifetime.

 

Hopefully you took advantage of this page on the front end (prior to making financial mistakes)–however, even if you did not—you can correct your mistakes and build the type of future that serves your best interest.

 

TheWealthIncreaser.com believes that success lies ahead for you and your family from this day forward…

 

Also return to this site as additional Q’s and A’s will be added on a continuous basis.

 

Are you an agent of change or will you become the victim of changes that occur?

 

Be sure to answer the pressing questions (financial or otherwise) that you may have inside of your mind and heart in an intelligent, consistent and proactive manner to protect your and your family’s future interests.

 

In addition you can become an agent of change by building wealth in a more intelligent, consistent and proactive manner and not fall victim to the actions of others whether it be a scam artist, governmental policy or any other individual or entity!

 

It is the desire of TheWealthIncreaser.com that these and other FAQ’s that follow will help you achieve more throughout your lifetime…

 

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MVP & Wealth Building

Learn why you are the Most Valuable Person at this time when it comes to building your wealth…

After a somewhat technical article in the last post TheWealthIncreaser.com decided that it was time to lighten things up some and inform you why you are the MVP as far as your financial future is concerned.

 

With the WNBA women’s basketball finals concluding, the Major League baseball season coming to an end, the NFL football season now fully underway and the NBA basketball season and NHL hockey season only weeks away the topic of Most Valuable Player appeared to be an appropriate topic at this time.

 

In the times that we now live in many are asking a number of financial questions and at the top of the list of many is how can they build wealth more efficiently in the current economy?

 

When it comes to building wealth it is critical that you realize that “you” are the key and most critical component in making it happen.

 

It is you who must muster up the motivation (no pun intended) to move forward in a way that is unstoppable as you must be Motivated to move to action at a very high level.

 

It is you who must create a Vision of your future that will be inspiring and will lead to you achieving significant goals that will move you and your family along at a prosperous pace.

 

It is you who must Plan for success by using written plans and it is you who must gain the preparation and knowledge on the front end that you can use to your advantage so that you can achieve more throughout your lifetime.

 

In this discussion TheWealthIncreaser.com will further expand on why you are the MVP when it comes to your financial future and building wealth in a more efficient manner.

 

Are You Motivated at a High Level at this Time?

 

It is imperative that you pursue your goals with a high level of inspiration as you must be inspired to move to action in some manner.  You must look within and discover who you really are and you must use your imagination to dream big and bring into existence a new reality where you consistently pursue your goals at a high level.  What are you aiming to achieve during your lifetime–and why?

 

Inspiration, motivation, action, imagination–use all that and more to open a new door…

 

Do You Have a Clear Vision of What You Want to Accomplish in Your Financial Future?

 

You must have a clear view of where you want to go and you must know what you want to achieve.  You must know if you are serious in approaching your future in a manner that will truly take you toward the goals that will serve your and your family’s best interest.

 

Did you know that procrastinators are afraid of “NOW” and seriously confronting their future?

 

Do you desire to pay off your creditors, join the local fitness club, take the vacations that you know you deserve, live out your retirement in a stress free manner, purchase that second home or attain any other goals that are dear to your heart?

 

If you do–you must have the vision to see it happening–at this time!

 

Focus, vision, clarity, mental working knowledge–use all that and more to achieve more…

 

Do You Have an Effective Plan for Financial & Life Success and are You Willing and Ready to Follow that Plan?

 

Your ability to make things happen in your financial life can be enhanced  in a major way by you taking a few minutes of your time to put in writing what you desire most.

 

Whether you desire to take control of your finances on a monthly basis, improve your credit, or improve your finances in some or all areas you increase the likelihood of success tremendously if you get into the habit of putting it all in writing in a format that sticks with your mind and acts as a guiding light to direct you toward what you desire most–or what you need to achieve the most.

 

Written plan, success planning, keys to success, effective site search–use all that and more and enjoy the tour…

 

Conclusion

 

By having a high level of motivation at this time, visualizing your future in the clearest manner possible, and planning for success by using written plans you are showing a real commitment for success.

 

You can choose to use this site, the 3 step structured approach, Managing & Improving Your Credit & Finances for this Millennium or any other resource that you feel will work for you–to make your dreams come true.

 

By approaching your financial future with a high level of motivation, a clear vision of where you want to go and precise planning that can more effectively direct your daily actions you are displaying to your heart and mind a real seriousness to achieve real results and success in your life will be more likely to occur!

 

Because you looked deep within your heart and mind–your heart and mind will affirm what you are pursuing and the actions that you take will be in congruence with what you are pursuing–because you have put in the work to make it happen in a sincere manner!

 

All the best to winning the MVP award and your future success…

 

 

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Macro & Micro Understanding of the Broader Economy & Your Personal Economy as You Build Wealth

Learn why your general understanding of the overall economy and your understanding of your personal economy is critical as you build wealth…

 

In this discussion TheWealthIncreaseer.com will try to explain what is often difficult for many to interpret (Macro & Micro Economic Theory) and how a meaningful interpretation that makes sense to you can help you in your wealth building efforts (Micro Economics) and allow you to act in a more appropriate manner as a result of your understanding–as you build wealth.

 

Although this discussion is somewhat technical in nature, your comprehension and awareness of the following paragraphs can put you well ahead of those in the general population when it comes to understanding the overall economy and making your personal economy work better for you and your family regardless of market conditions.

 

TheWealthIncreaseer.com will begin by defining general concepts that are needed to help further your understanding of macro and micro economic theory and follow with a discussion on how you can use your newly acquired knowledge to move forward financially at the various points in your life as you deal with the larger economy and your personal finances.

 

MACRO Discussion

Definitions:

 

Macro—“Macroeconomics” a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. It is the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

 

Contrast with:

 

Micro—“ Microeconomics”  the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

 

GDP (Gross Domestic Product)–Written out, the equation for calculating GDP is:

 

GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

 

For the gross domestic product, “gross” means that the GDP measures production regardless of the various uses to which the product can be put.  Real GDP growth is the value of all goods produced in a given year; nominal GDP is value of all the goods taking price changes into account, therefore prepare your mind for the context in which GDP is written or spoken in and interpret properly.

 

Although you will hear a lot about GDP and it is often used as a political football, you can go to the following page to get documented results from 1990 up until 2017.

 

https://www.statista.com/statistics/188165/annual-gdp-growth-of-the-united-states-since-1990/

 

Examples of GDP in selected years:

 

2000—just over 4%

2004—over 2%

2008—negative GDP

2012—just over 2%

2016—less than 2%

2017—over 2%

2018—not available

 

*Note:  In 2008 and 2009 there was negative GDP and from 2010 to the present there has been an up and down movement in GDP, with an upward trend.

 

National Debt–Government debt (also known as public interest, public debtnational debt and sovereign debt) is the debt owed by a government overall.   The United States has continuously had a debt since the 1830’s, however the debt is now at an all time high.

 

The Fiscal Year 2018 U.S. budget deficit is $833 billion. 

The deficit hit a record of $1.4 trillion in the fiscal year 2009 following the years 2007-2009 (great recession era).

 

See chart at the following link to learn more:

 

https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/

 

By contrast, the annual “government deficit” refers to the difference between government receipts and spending in a single year (discussed below).

 

https://www.statista.com/statistics/200410/surplus-or-deficit-of-the-us-governments-budget-since-2000/

 

Annual Budget Deficit—the U.S. budget deficit by year is how much more the federal government spends than it receives in revenue annually.

 

Prior to the 9/11/2001 time frame there was a government surplus on an ANNUAL basis (see chart), however since that time the government has continuously operated at a deficit on an ANNUAL basis and the national debt has increased yearly!

 

Go to the following TreasuryDirect.gov link to learn more to learn more about the National Debt over a number of years:

 

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

 

Examples of National debt for selected years:

 

2000–$5.674 trillion.

2004–$7.390 trillion

2008–$10.02 trillion

2012–$16.3 trillion

2016–$19.57 trillion

2017–$20.24 trillion

Current—over $21.48 trillion (click here to see real time debt clock)  

 

Economic Indicators–An economic indicator is a statistic about an economic activity.  Economic indicators allow analysis of economic performance and predictions of future performance.  One of the most important uses and application of economic indicators is the study of business cycles.

 

There are three types of economic indicators: Leading, Lagging and Coincident:

 

1) Leading.  Leading indicators help to predict what the economy will do in the future…

 

2) Lagging.  Lagging indicators confirm what leading indicators predict…

 

3) Coincident.  Coincident indicators move with the economy…

 

Popular leading indicators include average weekly hours worked in manufacturing, new orders for capital goods by manufacturers, and applications for unemployment insurance.

 

Lagging indicators include things like employment rates and consumer confidence. The business cycle always have highs and lows.

 

Coincident indicators include things like your personal income.

 

In summary, leading indicators move ahead of the economic cycle, coincident indicators move with the economy, and lagging indicators trail behind the economic cycle.

 

Examples:

 

LEADING: Signal future events

 

  • Bond Yields (leading)
  • Housing Starts (leading)
  • M2 (Money Supply–leading)
  • Consumer Confidence Survey (leading)

 

LAGGING: Follows an event

 

  • Unemployment Rate (Current Employment Statistics (CES) lagging) see chartnote downward trend in unemployment since the great recession

 

 

 

 

COINCIDENT: Occur at the same time as conditions they signify

 

  • Real GDP (Gross Domestic Product—coincident)
  • Personal income (coincident)
  • Market Index Movement

 

It is important to know the role that GDP, Annual Debt, National Debt and other Economic Indicators play as that knowledge can help you plan better for your future.

 

Additional market indicators include the Dow 30, S&P 500 and other market indices and there performance throughout various countries and regions–as well as the globe.

 

Interest rate movement, the cost to borrow, inflation, stock market movement and other macroeconomic indicators can all help you determine the right moves to make in your life from a micro economic perspective.

 

 

 

MICRO Discussion

Definitions:

 

Micro—“Microeconomics” the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues, including that of family’s.

Contrast with:

Macro—“Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. It is the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

 

Budget or Cash Flow Statement—A personal budget or “home budget” is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget.

 

personal cash flow statement measures your “cash inflows and outflows” in order to show you your “net cash flow for a specific period of time. Cash inflows generally include the following: Salaries. Interest from savings accounts. Dividends from investments.  Cash outflows generally include: Mortgage payments.  Auto payments. Utility payments.

 

Inflows minus outflows will determine if you have discretionary income or whether your monthly outflows exceed (you would be in the negative) your cash inflows.

 

Net WorthNet worth is the value of all assets, minus the total of all liabilities.  Put another way, net worth is what you own minus what you owe.

 

It is important to know your net worth and and it is important to grow your  net worth over time.

 

Discretionary Income—the money you have after paying for necessary expenses like rent, utilities, and food. It’s what you use to buy non-essentials (goods and services that you have discretion over) throughout the month.

 

Disposable Income—also known as disposable personaincome (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for.

 

Personal Credit—Consumer credit is a debt that a person incurs when purchasing a good or service. Consumer credit includes purchases obtained with credit cards, lines of credit and some loans. Consumer credit is also known as consumer debt.  The most common form of consumer credit is a credit card.

 

Emergency Fund—an account for funds set aside in case of the event of a personal financial dilemma, such as the loss of a job, a debilitating illness or a major repair to your home.

 

In the microeconomic area of your life you must have an effective system that allows you to address the following areas in the most beneficial manner as possible:

 

Insurance

Investments

Taxes

Education Planning

Estate Planning/Wills

Retirement Planning

 

By creating a budget, knowing your net worth, effectively managing your credit, properly establishing an emergency fund and managing all areas of your finances at a level that is the best that is within you—you are now on a real path to making your dreams come true.

 

By looking down at the overall economy from a high altitude you now have a better view—and that view also allows you to see your own overall management of your own finances  with more clarity and you are now in position to achieve major success throughout your lifetime.

 

Conclusion

 

Your understanding of the larger economy that you live in as well as your understanding of how you can manage your finances more efficiently will serve your and your family’s greater financial interests in a major way from this day forward.

 

Always realize that there are a number of sources for receiving economic indicator data and one site or source may vary from the other but they will in many cases be going in the same direction but may require in-depth analysis.

 

TheWealthIncreaser.com believes that you no longer have to be confused about financial jargon and how it relates to your wealth building future.  You now have a better understanding of macroeconomics and microeconomics and you can now move forward with confidence as you build wealth.

 

You can put together an effective plan to direct your future in areas that you have control over and make chess type moves in areas that you may not have control over.  You can now direct your future more effectively and control your future outcomes.  You are now in position to act—not react–after the fact–and achieve more with less effort.

 

As you build wealth—you now know how to operate with more precision because you have a meaningful understanding of the Macro Economy in your Country or Region—as well as the Micro Economy that you manage in your own household.

 

You must be aware of wage stagnation and inflation in your nation–and you must know how to integrate your knowledge of the market indicators into an understandable format within your mind.

 

You must understand that a “growing national debt” that is caused by tax cuts, increased government spending and rising interest rates will ultimately lead to the interest on the national debt increasing in ways that may not only be good for your country–but may also be a drain on your personal economy as well.

 

Some market forecasters predict that the interest on the debt will double from 2017 to 2019 and balloon even further after that–therefore,  it is important to have some idea of what effect that may have on your personal economy.

 

Always remember that there are 3 things in your life that are constant:

 

  • Things you can’t control

 

  • Things that you could possibly control but you won’t

 

  • Things that you can control and you can choose to do so or choose not to

 

The microeconomic area of your life provides you the ability to choose option 3 in the affirmative.

 

In the macroeconomic world you will often find yourself with option 1 and/or option 2.

 

By determining at this time that you will manage your finances better—and put together a serious plan of action you are on a path to making life much more enjoyable for yourself and your family in the current economy—or any economy.

 

All the best toward your economic success…

 

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Deception & Wealth Building

 

Learn why you must avoid “deception” as you build wealth…

 

It is important that you are on guard for deceptive or misleading information as you manage your finances and build wealth.

 

Whether you get your information online, in magazines and newspapers, over the air such as radio and TV or any other way you must be aware at all times that the information that you may be hearing may not serve your best interests.

 

It is not uncommon for your favorite athlete, entertainer or other popular personality to promote products and services with the end goal of getting you to act in a desired manner.

 

In many cases what they are promoting may actually work against your financial and wealth building growth and you may not be aware of that fact—or become aware at a later point where it becomes difficult or impossible to resolve in your favor.

 

It is important that you become aware of deceptive actions (or the potential for you to engage in deceptive actions due to the action of others) on the part of others as you build wealth–as that awareness is critical in the times that we now live in.

 

In this discussion TheWealthIncreaser.com will explore ways that you can avoid letting the deceptive or misleading actions of others negatively affect your wealth building efforts.

 

1)   You must read, listen and understand what is really being said (and not said) regardless of who says it

 

It is not uncommon for many to hear their favorite radio personality, actor or actress, athlete and other entertainer(s) promote financial products and services.

 

Many businesses that you deal with throughout your lifetime will also promote products and services that may appear to meet a need in your life or serve a need in a manner that appears beneficial to you.

 

In some cases what is being promoted may actually work against your best interest and that of your family’s and this discussion is designed to help put you in a more favorable position to guard against the misleading and deceptive actions of others regardless of what they are and who they come from.

 

2)   You must not let the deception of others cause you to take the wrong action

 

What you are hearing works against you and can cause you to take the wrong action when it is presented in a misleading or inaccurate way.

 

For example, if you now have excellent credit and you currently pay 14.99% in credit card interest and have a balance of $4,000 and you hear a promotion by your favorite radio personality to combine your debt and pay 4.99% in interest and save hundreds in interest.

 

Let’s say you took that advice and did what your favorite radio personality suggested.  On the surface it looks good and you will save in interest.  However, you may have had better options and you didn’t even know it.

 

Depending on your income, emergency fund balance, current credit profile, your discretionary income and a few other factors you may be able to pay that debt off at 0% interest for 18 months (credit card transfer fee may be involved) and in 3 years you could have that debt paid off at a lower overall cost than agreeing to the 4.99% offer.

 

The point is you could save more in interest and possibly pay the debt off faster and in a more convenient manner by doing so—but even if you listened carefully—what was not said was the key point especially if you are unaware of your ability to pay 0% interest on the credit card debt that you owe based on your credit and market conditions.

 

In addition, you also have other options or payoff methods that you could pursue outside of both of the options presented above that may be more beneficial for you and your family depending on where you desire to go (goals) in your future.

 

3)   You must plan proactively to reduce the likelihood that deception will be used against you throughout your lifetime

 

The above example of having your credit card payments reduced from 14.99% to 4.99% where you could have possibly done even better, and many other scenarios that you will or may face in the world of finance—can be reduced, made less relevant or avoided by you if you gain the right knowledge and preparation on the front end—not after you make mistakes.

 

If you have the right knowledge at the right time (before you enter into a transaction) you can put yourself in better position to make favorable outcomes happen for you and your family.

 

Don’t be misled by emotionally charged commercials and letting those who you are “big fans of” misdirect or mislead you on the financial affairs that will happen during your lifetime.  You no longer have to be intimidated by high pressure or low pressure sales pitches–unless you choose to–as you can put yourself in position where you are in control of your financial future.

 

It is important that you get out in front of your finances at this time by analyzing your finances at this time in an intelligent, consistent and proactive manner so that you can achieve more.

 

Conclusion

 

In many cases it is what is not said that is most critical when you hear ads and other promotions.  You must always analyze what you are hearing in the most analytical, careful, accurate, and critical manner possible to protect against your and your family’s financial interests.

 

On financial documents if what is said is unclear or you see the potential for confusion—write in what you are asking for and make it a part of the contract—so there is no confusion about what happens later and who is responsible.

 

If you purchase a used car and buy a warranty for 100,000 miles and the vehicle has 40,000 miles at the time of purchase—“write in” on the warranty document “warranty to last until vehicle reaches 140,000 miles” to protect your future interests.

 

The creator of TheWealthIncreaser.com had a similar experience with Atlanta Luxury Motors as what the sales manager in the finance center stated in uncertain terms and what was actually enforceable by the warranty company varied (when they were called stated warranty was for 100,000 miles period) and as a purchaser you had no way of knowing because the box checked for the warranty period could be interpreted a number of ways.

 

Atlanta Luxury Motors (ALM) did not resolve this discrepancy satisfactorily and The creator of TheWealthIncreaser.com will not be purchasing a vehicle from them again.

 

Be particularly aware of debt payoff and consolidation companies, payday lending companies, title pawn companies, high fee banking and investment institutions, mortgage lenders, auto lenders and credit card issuers as they can have a negative effect on your wealth building efforts if you are not careful.

 

In almost all cases there will be consequences as a result of your action or inaction as you navigate through life and encounter financial dilemnas!   Now is the time that you make favorable outcomes happen in your life as you build wealth.

 

It is also important that you operate on a daily basis with high standards by gaining the financial knowledge that you need proactively!  You must also demand high standards from those that you do business with–whether it be TheWealthIncreaser.com or any other transaction that you may make during your lifetime.

 

You must be able to see your financial future clearly and you must know the areas that you must address in a comprehensive manner so that you” know what lies ahead at the various points in your life.

 

By doing so you put yourself in a better position to avoid deception and financial strife–throughout your life.

 

All the best as you avoid deception and build wealth…

All the best as you improve your financial health…

 

Success is now…

 

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Precision & Wealth Building

Learn why looking at your future outcomes “in advance” in a “precise way” can more effectively direct your financial future…

 

In the current economy it is important that you have a vision of your future so that you can more precisely take the steps that will lead you toward that vision.

 

It is imperative that you know where you want to go, know effective routes that you can take that will get you there and you must know how to fine tune or improve upon where you are at (the goals you reach) on a consistent basis as you build wealth.

 

In this discussion TheWealthIncreaser.com will discuss ways that you can approach reaching your wealth building goals in a more precise manner.  A made up mind can overcome all obstacles!  It is the desire of TheWealthIncreaser.com that you make up your mind to pursue your goals with more precision as by doing so—your achievement has already occurred–if you believe it to be true.

 

Determine Where You Want to Go by First Knowing Where You Are Now At…

 

It is important that you give yourself a real chance for success by knowing where you now are as far as your finances and financial health is concerned.

 

You can determine where you are on a monthly basis in the handling of your finances by creating a monthly budget or cash flow statement to determine if you have discretionary income left over that allows you to plan your future more efficiently.

 

You must also know your net worth at this time so that you can put together a plan that allows you to increase your net worth on a consistent basis.

 

Choose an Appropriate Path that Can Take You to Where You Need to Go…

 

Once you determine a number of goals that you desire to pursue you must find an effective system that will work for you and your family.  Whether you choose to use this site or other sources you must have a pathway to success within your mind that you believe in and makes sense to you.

 

You can then use your knowledge and take the action steps that will take you toward your goals.

 

Fine Tune Your Activities on a Consistent Basis…

 

Once you get a handle on your credit and finances you want to review each area on a periodic basis to see if you can make improvements.

 

This process will allow you to fine tune your insurance, investments, taxes,  emergency fund, education planning, estate planning/wills and retirement planning.

 

By doing so consistently you will achieve better long term results and your life on earth will be more enjoyable as you will be in better position to do what you desire throughout your lifetime.

 

Conclusion

 

With many repetition (hearing or seeing what they need to do) creates persuasion, still others act upon hearing or seeing what they know to be true immediately.  And there are others who have no desire of hearing, seeing or acting whether it be repetitive or they know what is presented to be true because they have no desire to act—for varying reasons.

 

It is important that you use your mind with precision as by doing so you can utilize your mind in a way that will help you achieve better results.  You must utilize and align your right hemisphere of your brain (creative side) with the left hemisphere (logic/reasoning etc.) so that your cognitive functions work in congruence with your future financial goals.

 

On this site you will find a number of ways that you can build your wealth with precision.  However, it is your choice and your decision to decide to act on information that you feel can move you and your family forward.

 

You can choose reward and move forward or fret later in regret because you have not reached your goals yet.

 

It is your choice to use your mind in a more analytical, careful, critical and accurate manner as you move forward.  It is important that you focus on what you want to achieve financially with precision by using your mind in an intelligent, consistent and proactive manner.

 

Isn’t it time you use your abilities, skills and talent that you now have or will soon learn to “focus in” on what you want to achieve and do so with “precision” so that you can achieve more.

 

Now is the time that you precisely know where you are headed and how you will get there as it relates to managing your cash flow and building your credit and net worth!

 

Now is the time that you precisely know where you are headed and how you will get there as it relates to “choosing an appropriate path” that can take you to where you need to be in a more efficient manner!

 

Now is the time that you precisely know where you are headed and how you will get there as it relates to fine tuning your activities on a consistent basis as it relates to comprehensively managing your finances!

 

In short, now is the time that you formulate a mental picture of your financial future and put in place a realistic plan that will take you toward that picture—and beyond.

 

Always remember that less clutter in your mind means more success because you can focus on winning financially and building wealth without all of the distractions that seem to derail so many.

 

You must focus in with precision on a daily basis to achieve more so that you can continue to soar as you open a new door (reach your goals)!

 

All the best to your future success…

 

 

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Home Buying 101 & Wealth Building

Learn how to prepare for your home purchase and maximize your wealth building efforts…

 

It is important that you know the important concepts that are  needed as you purchase your home so that you can make your home purchase “neat and simple” in your mind, even though it may appear daunting and fearful in the minds of others who have not prepared properly and don’t know what to expect in the home buying process.

 

Not only is it appropriate to keep your finances in good order in general by keeping things neat and simple—so too is it important that you keep the home buying process neat and simple as it allows you to build wealth more efficiently.

 

If you allow it (you lack the mental fortitude that is needed to manage your finances effectively) the home buying process can be a stressful experience.

 

Your goal should be to keep the home buying  process as neat (understandable as possible to your mind) and simple (knowing the steps that are ahead of you right now instead of being shocked as it occurs in your future) so that you can reduce or eliminate the stress or anxiety that it can cause in your life (your family members and those whom you are around will also feel it as well).

 

The home buying process is often stressful for many because those who lack the preparation go in not understanding their current cash flow position, current credit position and not having a clue about how their overall finances are integrated within their life.  By having a real understanding of how your finances are all integrated it may provide you the direction that you need to achieve better results with less effort.

 

It is imperative that you know what lies ahead whether it be your home purchase or any other major financial maneuver that you may make during your lifetime.

 

You must be determined to learn what not to do on the front end–not after you are in the middle of a transaction or after you know you have made mistakes!

 

In this discussion TheWealthIncreaser.com will show you highly effective ways that you can make your home purchase less stressful—yet put you on a serious path toward building wealth.

 

Ok, here we go…

 

Are You Really Ready For a Home Purchase?

 

The first and in many cases the most important question to ask is are you ready for a home purchase.  Do you have an effective down payment and reserves along with a properly funded emergency fund?   If you don’t, will you be in position after your home purchase to build your emergency fund or add to your emergency fund in a way that will put you in a stronger financial position?

 

Are you ready for making an offer, negotiating, making a counter offer, inspection and possible amendment (addendum) so that you can close on your purchase in a timely manner?

 

Do you know all of your maintenance responsibilities and do you know the age and functionality of the major components in the home that you anticipate buying?  Are you aware of environmental factors inside and around the home that you are considering for purchase?

 

Are you ready for the interior and exterior maintenance that is required including gutter maintenance, yard maintenance along with all of the associative costs of home ownership?

 

Do you currently know your cash flow position now–and after you purchase your home?  Do you know your front end and back end ratios along with the discretionary income that you will have left over on a monthly basis so that you can enjoy life and save at a level that will take you toward your goals throughout your lifetime?

 

Do you know how long you plan on staying in the property in question and have you looked at the end–when you plan on moving–at this time to see if a purchase serves your greater interest?

 

These are the types of questions that you must ask and answer on the front end–not after your home purchase!

 

Do You Have the Understanding & Application of Credit Knowledge that is Necessary?

 

You must know how to build and manage your credit effectively throughout your  lifetime.

 

You must know in certain terms that you must always pay on time, use your credit responsibly by not running up balances that make it difficult for you to pay off, know how the time length of your credit activity affects your credit and credit score, know the types of credit that you have and why it is important that you have an appropriate mix based on your future goals–and know the importance of keeping inquiries at a minimal level–depending on your future goals.

 

Having that understanding is one thing, actually using that understanding to effectively manage your unique credit position throughout your life is a totally different question!  However, if you are to make your home buying and home ownership period of your life as enjoyable for you and your family as possible you must put yourself in position to understand and apply your credit knowledge in a practical way throughout your lifetime.

 

Do You Know All Areas of Your Finances that You Must Address & Are You Prepared to Address those Areas?

 

In addition to knowing your credit position prior to your home purchase you must also know your comprehension of your overall finances.  Have you addressed your insurance, investments, taxes, emergency fund, education planning, estate planning/wills and your retirement planning in a way that maximizes the benefits to you and your family.

 

You maximize the benefits by examining all of the above areas at a level that is the absolute best that is within you–and then make improvements where necessary based on your current financial ability and “your recently learned skills” that allows you to comprehend your overall finances and act in a manner that serves your and your family’s best interest.

 

Conclusion

 

Although the home buying process can be difficult for many,  you can ease the process considerably by:

 

1)  determining “your readiness for your home purchase at this time”

2) determining “your level of credit preparedness at this time” 

3) determining “your level of overall preparedness with all areas of your finances at this time”

 

By doing so  you can choose a mortgage product and home that best fits your needs at this time and during your desired period of home ownership.

 

You want to put yourself in position to continue to build wealth during your period of home ownership and at the various stages in your life.

 

Your determination and commitment to learn in advance of your home purchase how to approach your finances in an intelligent, consistent and proactive manner will set you apart and make your home purchase and home ownership period much more prosperous than those who fail to take the beneficial steps that were addressed in this discussion.

 

All the best to your home buying and home ownership success…

 

 

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