Intelligent Finance Improvement

Managing Your Finances & Wealth Building

Learn how you can “Manage Your Finances & Build Your Wealth” in an intelligent, consistent & proactive manner so that you can achieve more throughout your lifetime…


In the current economy it is very important that you have a systematic approach to the management of your finances.  Whether you are a millennial, gen x, gen y or baby boomer effective management of your finances must be a part of your mindset if you desire to achieve more from this point forward.


In this discussion will look at highly effective ways that you can use to move forward in an efficient manner as you manage your finances and build wealth.


Those who manage their finances at an optimal level always seem to have a system that allows them to live within their means and save at a level that allows them to get ahead financially.


You must know how to analyze your cash flow and know what you will have left on a monthly basis after you pay your rent or mortgage, health care, cell phone bills, cable TV and other costs that you have on a monthly basis that allows you to live at the level that you desire.


Although the process of analyzing your finances on a monthly basis may appear daunting–you can do so and also save for your future if you have the right approach and you are committed to putting that approach into action on a consistent basis.


By knowing where your money goes on a monthly basis you will feel more in control of your finances and your future!  Why stress about what you can do in the future when you have the ability to take control of your finances and achieve more during your lifetime?


You must have an understanding of your fixed and variable expenses on a monthly basis so that you will know your “discretionary income” that is available that will allow you to do other things.


You must then look at ways that you can reduce or eliminate the fixed and variable expenses that you can avoid, are not comfortable with or are a drag on your monthly finances.


3 Steps that Will Allow You to Control Your Finances & Financial Future


  • You must budget and plan for your future


It is very important that you create a budget or monthly cash flow statement in order to determine where you are financially.  That will allow you to plan your financial future more effectively.


You will put yourself in position to create a properly funded emergency fund and build your wealth more efficiently.


To gain even more control over your financial future you need to eventually create a personal income statement and balance sheet so that you will know your net worth.


  • You must effectively manage your credit


Whether you are new to credit or you have been managing your credit for years it is imperative that you “understand credit” and you have an effective system that allows you to manage your credit.


You don’t want to put yourself in position where there is confusion (within your mind) or other distractions as it relates to the management of your credit.


  • You must know all areas of your finances that you must address and then you must put a plan in place to address those areas


It is your responsibility to know all areas of finance that you must address during your lifetime.  Another way of stating that is you must have a “comprehensive approach” in the management of your finances if you desire to achieve at an optimal level.


You must know “immediately” and at “all times”  that you have to address your insurance needs, your investment goals, your tax situation, your emergency fund, your education planning, your estate planning/wills and your retirement planning.  By doing so you add “clarity of thought” to your life and your future will take on a new (and brighter) meaning.




You must have an approach to your financial future that “sticks to your mind” and allows you the ability to manage your financial future with clarity.  You must have strategies that you can carry within your mind and that you can apply at the time of “your” choosing.


By gaining a real understanding of the 3 steps mentioned above and applying them on a consistent basis throughout your lifetime you will help insure a more prosperous future for yourself and your family.


You will put yourself in position to set real concrete goals that you can see clearly” rather than “generalize your future” and move toward your goals with an unclear focus.


Keep in mind that you can do the above steps at a pace that you are comfortable with, however they must be done–if your desire to achieve more financially during your lifetime.


What do you value?  Determine what you value most and make it a priority in your life at this time.   Make the decision not to procrastinate at this time!


Will there be setbacks as you move toward your financial goals?  Absolutely, however by applying what you have just learned on a consistent basis you will put yourself in position to rebound from those setbacks and achieve the type of success that you desire throughout your lifetime.


Be sure to use automatic savings tools  where appropriate and maximize your retirement savings in a manner that will allow you to reach your retirement number and live the lifestyle that you desire during your retirement years.


All the best as you apply the “3 steps” toward your success…


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The New Tax Law & Wealth Building

Understanding the New Tax Law & Wealth Building


Learn how you can use the recent United States tax cuts and job act law changes to maximize your 2018 and future tax filings…


With the new tax bill out and anxiety in the air among many taxpayers the creator of had no choice but to review the new tax bill to help alleviate the fears of many and help those who desire greater success build wealth more efficiently in the coming years.


Even the creator of found navigating the bill of several hundred pages to be boring and cumbersome—however key aspects that could possibly benefit you and others were focused on and analyzed.


In the following paragraphs highlights of the bill will be analyzed and presented in a manner that could possibly help you build wealth in 2018 and beyond in a more efficient manner.


Even though the new tax law will reduce the taxes for millions, that does not mean that you will be included among the millions as personal taxes are unique and vary from person to person and family to family.


The good and bad news is that tax rates were lowered across the board but are scheduled to expire in 2025 unless congress decides to make them permanent.


To keep this discussion logical and concise the order of presentation will try to keep the format of the 1040 long format as the blueprint or guideline for discussion.


Personal Exemptions Are Now Gone


You can no longer claim your children or other dependents and get a personal exemption for them—or yourself and your spouse if married.


Those exemptions that you have become accustomed to getting have been replaced with higher standard deductions, lower tax rates, increased child tax credits, and a dependency credit for other dependents of $500.


Whether the new tax changes will be of more benefit to you depends on the age of your dependents, your income level, your family size, your above the line (page 1 of form 1040) and below the line deductions (page 2 of form 1040) ,  your tax withholdings and many other factors that may be unique to you and your family.


Standard Deductions Are Increased Substantially


Standard Deductions are now $12,000 for single up from $6,350, $18,000 for head of household up from $9,350 and $24,000 for  married filing jointly up from $12,700.


Be aware that claiming the higher federal standard deduction may not be a wise move in some cases.   It depends on a number of factors, including the amount of your itemized deductions and your state income tax filing standard deduction (if applicable)–among other factors.


Child Tax Credit Increases


The child tax credit increased from $1,000 to $2,000 so if you have a child under age 17 you would more than likely be eligible for the credit.  The income limits for phaseouts also increased as you can now earn up to $400,000 (AGI–line 37 of form 1040) and still take the credit (up from $110,000 in 2017).  In addition, $1,400 of the credit is refundable meaning even if you owe no taxes you are entitled to the refund.


To claim the credit your child dependent must live with you at least half a year and you must provide over half the cost of support for the child in order for you to claim the child tax credit—similar to when exemptions were claimed in past years.


The EIC or Earned Income Credit remains as well—meaning those with modest income and a family of 4 with kids under 17 could see a possible increase in the amount of the refund they will receive on their 2018 tax filing.


Those over age 17 whom you provide support such as college students, parents and others will provide you the opportunity to claim a $500 tax credit in the filing of your taxes if they meet the guidelines for dependents under the tax law.


The Marriage Penalty is Finally Eliminated or at Least Made Less Relevant for Most


Under the new law the tax bracket for married couples are almost double that of a single person in most instances.  If you have been avoiding matrimony due to the tax code or financial concerns—you can now breathe easier.


If you make $500,000 or more (which is a good problem to have) the marriage penalty again starts to rear its ugly head—If you make over $500,000 and plan on getting married soon—consult your tax professional before making the hitch as there may be ways that you can reduce the tax bite.


Alimony is also affected by the new tax law as you can no longer deduct alimony if you pay alimony and you don’t have to include alimony as income if you receive alimony (must be after December 31, 2018 otherwise old rules apply).


Education Deductions Remain in Place


Although did not initially take the news of eliminating the student loan interest deduction seriously—due in large part to the number of student loans outstanding and the hardship that the payments continue to cause for many—there were serious efforts to eliminate this helpful above the line deduction.


Fortunately, those in congress used their better judgment and the deduction for up to $2,500 worth of interest on student loans remain!


Tuition waivers and discounts by graduate students also remain tax-free.


The AOTC or American Opportunity Tax Credit worth up to $2,500 per undergraduate student (MAGI of $80,000 single and $160,000 married) survived the new tax bill.


The Lifelong Learning Credit also survived the new tax bill and it is worth up to $2,000, or 20 percent of the first $10,000 spent in a year (MAGI of $56,000 single and $112,000 married).


The $2,000 limit is per household with the Lifelong Learning Credit but the American Opportunity Tax Credit applies per student and could be more valuable to you if you have several kids in college.  Your overall credit would be higher, thus your tax bill would be lower or your tax refund would be higher!


529 college savings plans are now eligible to be used for k through 12 grades at private or parochial schools—in addition to colleges and universities.


Coverdell accounts remain although it appears they will be phased out and the cap remains at $2,000 annually, however you can now roll them over into a 529 plan tax free.


Always keep in mind the fact that many states also sweeten the pot—as you can deduct 529 contributions in many states.  And with the limits on property taxes (discussed later) that could be significant for those affected by the limitations.


ABLE accounts now are available for setup for a disabled beneficiary and can be legally rolled over from a 529 plan.  The benefit of doing so includes the tax-free use of funds for a variety of purposes—not just college, private or parochial school.


Assets up to $100,000 don’t count toward the $2,000 limit for SSI benefits.  Contribution limits are capped at $15,000 in 2018 and your rollover from the 529 plan would count toward that cap if you were to roll over a 529 plan into an ABLE account.


Educator expenses continue to be deductible (up to $250) by teachers who come “out of pocket” to purchase classroom material and supplies.


Most Retirement Plans Are Not Affected by the New Law


With the new tax law a change in your withhholdings may occur.  If you are in a strong financial position consider using the additional amount that you may see on your check to save more for retirement to help lower your taxable income and build wealth more efficiently.


IRA to a ROTH  conversions also see limits.  In the past you could undo the conversion and avoid the tax bite by re-characterizing the conversion by October 15 of the following year.   Now once you convert, it is permanent as far as the tax bite is concerned.


However, if you feel that a conversion is more beneficial for you and your family and you have the funds to handle the tax bite that could still be an effective strategy.  In addition, you could convert yearly a certain amount to lessen the tax sting.


Real Estate Takes a Hit with the New Law


Many residents of high cost cities where housing costs are high are crying foul over a number of provisions in the new tax.  The new law limits how much mortgage interest you can deduct.  The limit is now $750,000 (primary and vacation homes) down from 1 million.


Home Equity debt (home equity loan and home equity line of credit) interest is no longer deductible unless the money from the loan is used to improve your home.


Property tax deductions on your schedule A are capped!  The new law limits the amount that you can deduct in state income and property taxes at $10,000.


Like Kind Exchanges under Section 1031 of the Internal Revenue Code are now limited.  Like-kind exchanges of Real Property survived the new tax bill, however like-kind exchanges no longer apply to any other property–including personal property associated with real property.


Capital Gain Tax Rates are Preserved


Capital gain rates remain the same but the calculation formula now differs from using the tax brackets as in the past to using income thresholds.


If your income is less than $38,600 single or $77,200 joint you are at the 0% rate based on your income threshold.


If your income is between $38,600 to $425,800 single or $77,200  to $479,000 joint you are at the 15% rate based on your income threshold.


If you are in the ideal position of having even higher income your capital gains rate would be 20%.


The above capital gain tax rates apply to long-term capital gains (assets held over a year) and if you were to sell capital assets held less than one year you would pay tax at your ordinary income rate.


The “so called” kiddie tax that you would normally pay also has a change in the way that it is calculated.


Charitable Giving May Take a Hit Due to the Higher Standard Deduction Amounts


Charitable organizations were not pleased by the changes in the new tax law.  Even though charitable deductions are still deductible on the 1040 long form the likelihood of many using the long form has decreased due to the elimination of personal exemptions and the increase in the standard deduction.


Although many give generously out of the goodness of their heart, they still enjoyed the knowledge and annual application of a tax break.    That tax break that many have been accustomed to utilizing for years will be eliminated for some taxpayers due to the increased standard deduction which effectively wipes away their ability to itemize and claim their charitable giving.


Self-Employed & Those Who Have Pass Through Income Will See a Benefit


If you are self-employed or make additional income from a side job you could possibly benefit significantly from the new tax bill.  Many self-employed businesses will be allowed to deduct 20% of “qualifying” income from their taxable income.  Even so, there may be limitations depending on your business type and income thresholds.


Qualifying income is what the new law states that it is and can be a gray area, so consult your tax professional.


Entertainment expenses will no longer be deductible,  however meals will continue to be deductible (50% limit).


Medical Deductions Ceiling Reduced From 10% to 7.5%


At least for 2017 and 2018 you can deduct medical expenses on schedule A and have a 7.5% floor as opposed to 10% under the old rules.  The lower the floor the better–as it allows you to deduct more medical expenses on your schedule A.


The ceiling returns to 10% in 2019 so don’t get too excited.  Hopefully congress will make the 7.5% floor permanent or at least extend the deadline as baby boomers will find a real benefit as they age and get out of the employment population and experience increased medical expenses.


2% Miscellaneous Deduction Including Unreimbursed Employee Expenses Take a Major Hit


Moving expenses have been eliminated unless you  are an “active” member of the U.S. armed forces.  Tax preparation, unreimbursed employee expenses (mileage, travel, home office expenses etc.), investment advisory fees and casualty losses other than those declared as a presidential disaster area have all been eliminated.


Look for shockwaves to run through certain industries where they have high “unreimbursed” expenses when they file their 2018 tax return as those who work in the affected industries will in some cases experience a substantial increase in their tax bill.


Corporations & Pass Through Entities Receive the Majority of Windfalls with New Tax Bill


With a major tax rate reduction to 21%–down from 35%–many corporations will receive a significant financial windfall due to the reduction in their tax rates as well as other perks offered in the new tax law.


Depreciation write offs and 179 deductions could possibly be of greater benefit to you if you purchase equipment that qualifies.  However, there are no guarantee that they will continue indefinitely.


However, for the time being many corporations will benefit–and you too may be able to benefit as well if you are proactive and not reactive in looking at ways that you can better utilize the new provisions that are now available to corporations and pass-through entities.


Self-employed businesses, partnerships, S-corporations and C-corporations will all see a reduction in their tax rates and it is up to you to look at ways that you can use this new rate change to your and your family’s advantage by now getting in the game or playing the game more successfully by taking beneficial steps toward your goals at this time.


 W-4 Table for Exemptions No Longer Apply


The withholding based on exemptions are a thing of the past and new tables for withholding are in the process of being created.  It is important that you have your tax professional provide you projections based on your current withhholdings and the new rates and filing status to help plan for your 2018 tax filing in a more intelligent manner.


AMT & Estate Tax Remain


The Alternative Minimum Tax remains.  However, the exemption has been increased to $500,000 for single taxpayers and $1 million for couples.  This change is expected to result in fewer taxpayers being hit by the AMT tax.


The new tax law doubles the estate tax exemption to $11.2 million for single filers and $22.4 million for joint filers. This change will only affect a small percentage of the American population  as effective estate planning and the increased exemption will leave a very small percentage of taxpayers paying this tax.


Affordable Care Act Individual Mandate Gone


In 2019 the tax (individual health mandate penalty tax) that was imposed for healthcare under the Affordable Care Act (often called, “Obamacare”) will be eliminated.




Be sure you understand the difference between a tax credit and a tax deduction as a credit is a dollar-for-dollar reduction and a deduction is based on your tax rate or a percentage of your taxable income.


Even though the new tax bill appears to overwhelmingly benefit corporations and those who are well established financially–you too can benefit!   Be aware that much of the new tax bill was unfunded and will pass the cost on to others in an “irresponsible” way.


However, you can benefit now and in the future if you take the right steps to make the law work better for you and your family.


The new law provides the opportunity for those who are astute and who are willing to pause and take effective steps to use the new law to their advantage by asking and answering the right questions the ability to achieve at a higher level in the coming years.


How can “I” more effectively benefit from the various changes in the law during the various phases in my life?


How can I manage my finances at this time so that I can put myself in position to take advantage of the various changes in the law?


What can I do to avoid changes in the law that will negatively affect me?


These (and more) are the types of questions that you must ask yourself—and answer appropriately if you are one who desire to take advantage of the new changes in the tax law as opposed to having the new changes in the tax law take advantage of you!


It is the desire of that this discussion has at least got you started on a path to doing what you need to do to make the new tax law work better for you.


All the best as you pursue tax success…


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More on Taxes…


Return From New Tax Law to Who is the Creator of


Return From the New Tax Law to Understanding the New Tax Brackets


Copyright® 2014-2018 The Wealth Increaser–All Rights Reserved


Financial Security & Wealth Building

Learn why planning, discipline and patience is critical for your financial success…


After recently returning from Las Vegas, Nevada and having a great time, the creator of thought that the topic of not gambling on your future was a timely topic.  Although investing in the financial markets are somewhat of a gamble, it is important that you plan for long-term success or any success in an appropriate manner.


In this discussion will discuss why planning for your future, having the required discipline–and patience are the cornerstone for you to attain financial success in your future.


You Must Plan for Success


You must plan for your future and that includes knowing where you now stand as far as your finances are concerned.  A monthly cash flow statement will put you in position to know just that.  In addition,  you must know how your credit score is calculated whether it is your  FICO score by Fair Isaac & Company or your Vantagescore by the 3 credit bureaus.


Your financial success also depends on you obtaining the financial knowledge and preparation that is needed on the front end–not “after” you encounter financial difficulty.  It is imperative that you obtain a financially alert mind and not just “financial literacy” at this time if you desire to achieve at your highest levels throughout your lifetime.


You Must Have a Disciplined Approach Toward the Success that You Desire


You must understand that it is your responsibility to do what needs to be done financially throughout your lifetime.


By consistently doing what you need to do you will achieve your goals more efficiently and you will be rewarded for your discipline in the future by having your investments grow and also be able to enjoy life on your terms along the way.  You can reach your “retirement number” and achieve other goals along the way as long as you remain focused and disciplined on a consistent basis.


Above All You Must Have Patience


It is important that you realize that many of your goals will not occur overnight as they will often take time to reach.  This is where your patience will come in as you must use the planning stage to determine the time frame on when your various goals will be reached.  Whether you have short-term, intermediate or long-term goals, you must prepare your mind mentally for the time period that it will take to reach your various goals.


You must not do like others who give up to soon, or lack the mental fortitude to stick it out and make their dreams come true.  By having patience and knowing inside that you will truly reach your goals if you stick to your written plan–you bring comfort, peace of mind and joy–inside of your heart and mind.




By planning for your future, showing discipline on a consistent basis and having the needed patience to reach your various goals you put yourself in a much better position for reaching the success that you desire or the success that you need to attain throughout your lifetime.  You are displaying a serious commitment to improve the living conditions for yourself and your family and you are showing that you are accountable for your future.


In short, you are approaching your future with the attitude of a winner and joy will be in your heart in an everlasting way as you will see success in all that you do.  Will there be setbacks? Absolutely!  However, by taking initiative at this time by planning for your future, showing discipline on a consistent basis and having the needed patience to reach your various goals–success lies in the horizon.


By doing so you are gravitating toward the goals that you see as opposed to remaining where you are, moving slowly toward your goals or worse of all–moving away from what you desire.


In the end (and beginning) you must realize that achieving financial security and effectively building wealth in large part depends on your current and future mindset being in the place where success lives.


All the best as you plan for success in a disciplined and highly effective way as you now have the ability to change your mindset (and future) in a highly beneficial way…


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Learn how you can achieve credit and financial success in 3 comprehensive steps…


Return From Financial Security & Wealth Building to Who is the creator of


Copyright®  2014-2018—The Wealth Increaser—All Rights Reserved


Coherence & Wealth Building

Learn how you can build wealth in a more coherent and comprehensive manner by having a more logical and consistent approach…


Ambiguous, obscure, unintelligible, confusing, distracted, mesmerized, dizzying—does any of those terms remind you of your approach toward your finances at this time as you build wealth?


As 2018 moves forward the creator of was in a relaxed state of mind, however with inclement weather across much of the country and particularly the southeast and southwest causing hardship for many—the topic of how wealth building could occur for many in a more cohesive and coherent manner came to mind as a timely topic to focus on.


In this discussion will show you ways that you can achieve wealth building success in a more coherent, logical and consistent manner.  You no longer have to approach your wealth building future in an ambiguous, obscure, unintelligible or confusing manner!


The goal of this discussion is to get you to focus on your financial future in a more understandable, rational, congruent, systematic, organized and possibly the most beneficial of all to you—a more comprehensive manner.


You can achieve much more if you get away from looking at your finances in isolation or an incongruent manner!  


Ok—let’s tie your understanding of your finances together in a cohesive manner so that you can achieve cohesive results.


The starting point for building significant wealth is to know where you now stand financially and personal finance statements will help you assess just where you now are financially—in a very timely manner.


By knowing where you now are financially you can plan your future in a manner that can get you better  short and long term results because you will know your discretionary and disposable income and you will know if you currently have the income to reach your future goals (or new goals) that you have in mind.


You will know if you need to get more income, cut expenses or do a combination of the two—to work toward making your dreams come true.


You must know your credit position and whether you are overburdened with credit or if  you are managing your credit at an acceptable or forward moving level.  By knowing where you are financially you can devise payoff or pay down schedules that can put you on path to reaching many or all of your goals.


Finally,  you must be able to effectively analyze and make improvements on your investment choices, your insurance choices, your tax planning, your emergency fund planning, your education planning, your estate planning and your retirement planning.


It is important that you don’t leave your wealth building future up to chance as you no longer have to approach your finances in ways that can accidentally help your movement toward your goals or accidentally hurt your movement toward your goal achievement.


It is important that you are logical and consistent in your approach as you build wealth!


You can now pursue your wealth building efforts in an intentional manner by approaching your finances from a position of “coherency” as opposed to confusion.


All the best as you pursue a coherent path toward success…


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Return From Coherency & Wealth Building to Who is the creator of


Other articles that can help you reach your goals in a coherent manner:


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Site Map The Best Atlanta Real Estate Advice


Copyright®  2014-2018—The Wealth Increaser—All Rights Reserved

Financial Ratios & Wealth Building

Learn how you “CAN” use financial ratios to build wealth by taking Conscious Action Now…


In this discussion will look at a myriad of financial ratios that can lead you closer to the success that you desire.  With 2017 coming to an end and a new year only days away, it is the desire of that this page will serve as an inspiration for you to do more in 2018.  OK, here we go–hopefully won’t bore you too much and you can use the following paragraphs to achieve more in 2018 and beyond!


Rule of 72 Ratio:


Dollar Amount Invested/ Interest Rate

1,000 / 7% = 14.3 or just over 14 years to turn $1,000 into $2,000

1,000 / 14% = 7.1 or just over 7 years to turn $1,000 into $2,000




Lets you know what percentage of your assets are liquid (cash, certificates of deposits, money market etc versus stocks, bonds, mutual funds, home equity etc.) so that you can plan your lifestyle accordingly.


Credit Ratio:


Credit Owed / Available Credit or Credit Balance ÷ Credit Limit = Credit Ratio, for example


500/40,000 = .0125 or 1.25% very low ratio–good

30,000 / 40,000 .75 or 75% very high ratio–bad


To further drive it home, if you had a $5,000 credit limit and held a $2,000 balance, your credit ratio would look like this for one creditor:


2,000 ÷ 5,000 = .4, or 40%


If you had a $25,000 credit limit with all of your credit cards and monthly installment payments and held a $12,000 balance, your credit ratio would look like this for all of your creditors:


12,000 ÷ 25,000 = .48 or 48%


Relevance: The lower your credit ratio the better as lenders use the credit ratio to grant you more credit or provide you credit at the best rates based in large part on how you use credit and your payment history.  See the chart below to determine your current risk level!


Credit Ratio                                      Risk      
< 30%                                                Low (ideal)
30-49%                                              Medium
50-75%                                              High
76% or more                                    Very High


The types of credit available include: Revolving Credit, Installment Loans and Open Credit. 


Finance Company Accounts and Mortgage Loans will fall in the above categories, however realize that some lenders categorize them separately as well.


Debt to Income Ratio:


 Total Debt / Total Income


Also called Front End Ratio


Let’s say you have $10,000 in Gross Monthly Income (your income before any taxes or other deductions are taken out – your actual paycheck will likely be much less).


What can you afford as far as your home purchase is concerned?


x / 10,000 = .28

2.800 / 10,000 = .28 which is the maximum debt you could have on the front end (excludes housing payment)

X = 2,800  max on front end


You may not be approved for a mortgage loan in which the PITI payment exceeds $800 per month if you maxed out your front end ratio of 28 percent.  On the flip side, if you had zero outstanding balance you could possibly qualify for a loan up to $3,600 per month!


On the back end your maximum debt would be $3,600 calculated as follows:

x / 10,000

3,600 / 10,000  = .36 which is the maximum debt you could have on the back end (includes housing payment)


If you maxed out your credit on the front end (bills totaling $2,800 per month) you would only have $800 available for housing payment (includes principal, interest, taxes and insurance or PITI).  If you had bills greater than 10 months averaging $400 per month you would qualify for a loan up to $3,200 per month.


What that means in purchasing power or how much home you can afford based on this ratio depends on the current interest rates, the local property tax rate, the amount of your down payment, mortgage insurance, and homeowners insurance.  In other words, how you manage your finances and your particular market are the key factors that can lead to you purchasing the home of your dream.


The amount that you will be approved for will vary over time and across different locations as the market interest and where you are will play a factor.  However, always realize that high debt on the front end will bring down the amount of house you can afford based on the conventional ratio breakdown of 28% on the front end and 36% on the back end.


To further drive it home let’s look at another example, monthly debt in excess of one year divided by gross monthly income is your debt to income ratio or front end ratio!  If you earned 3,600 per month and had credit card and car payment totaling $800 your front end ratio would look like the following:


800/3,600 = .22.22 or 22% on the front end for conventional–good


1,300 / 3,600 = .36 or 36% which only leaves $500 per month available for housing payment on the back end for conventional–probably not enough for quality housing in most markets



The front end and back end ratios provides you the ratio that you need to determine the level of debt that you are carrying in relationship to your monthly income.  You don’t want to overextend yourself with debt and make life more difficult and painful while here on earth.  You must know how to manage your credit wisely and pay your debt in a timely manner.

You also don’t want to put yourself in position where you are house and/or car rich and cash poor–your life will be a bore!  Use these very telling and powerful ratios to make life as enjoyable as possible for you and your family while you are here on planet earth.


Housing and Debt to Income ratio:


Also called the back end ratio


Monthly debt in excess of one year plus expected housing payment (PITI)  divided by gross monthly income, for example


1,200/3,600 = .33 or 33%


To further drive it home, the back end ratio is the total debt to income ratio, which includes your housing debt AND other debt owed for at least the next 10 months or so, by you the borrower.


Back End Ratios may not exceed 36% in most cases.


Some Qualified Mortgages (FHA) may let the Back End Ratio be as high as 43%.


If you the buyer have $1,000 worth of other debt and monthly income of $4,800 (car loan, student loan, credit card, etc.), how much can you afford?

1,000 / 4,800  = 21.7%–Good on the front end ratio for conventional


2,000 / 4,800 = 41.6%–Not good on the back end for conventional but some lenders could possibly still make it happen for you


As far as FHA goes, you would qualify with both the front end  ratio 31% and the back end ratio 43% because both of your ratios are lower than those percentages (21.7% and 41.6% respectively).


When your other debt is taken into consideration, you the buyer(s) can afford a home with a PITI payment of $1,000 using and FHA loan and you would not qualify for a conventional loan according to the financial ratio guidelines.  However, you could possibly qualify for a conventional loan even with those ratios if a conventional lender worked with you to make it happen.


If you are like most buyers, going up to a 36% debt to income ratio is not comfortable!


A 43% back end ratio is even more difficult to handle, even for the most frugal purchaser(s).


However, a better school district and/or being closer to your job or family members may well be worth the trade off!  It all depends on what you value and your ability and willingness to put into place a process that allows you to know your cash flow position up front so that you can better plan for your living conditions in the future.


Do you have an adequate emergency fund and have you planned for your future in a comprehensive way?  By answering these questions you can get on a path toward making the best decision for you and your family.


If you like to eat out, entertain and save abundantly for your future you might determine that a 43% ratio is too high a price to pay at this time and you might postpone your home purchase until you could get more income coming in on a monthly basis or you paid off certain debt.  Your lifestyle and plans for your future will play A LARGE PART IN DETERMINING THE BEST APPROACH TO TAKE.


The temptation may be great and you may want to go for a 43% back end ratio. What would that look like with our current example?


You still would only qualify for a loan of $1,060 (2,160/4,800) unless FHA decided to allow you to go higher or you paid off some debt or increased your monthly income.


NOTE: When you decide to purchase your home where you will seek a loan, remember that Lenders will pull your credit reports and ask for 2-3 months of your past bank statements.


If there is a sudden, large amount of money added to any of your bank accounts, or if your credit card balances or car loan are paid off just prior to applying for a loan, this sends up a red flag and some lenders will be hesitant to offer you a loan without a reasonable explanation of why you took those actions.


Lenders may ask for a gift letter, indicating that the money does not have to be paid back, and may request a larger down payment, such as 10% instead of 3.5% or 5%.


It is wise for any buyer to get their financial accounts in shape “well before” applying for a mortgage loan so that they will not be disappointed! 


The critical back end ratio shows your ability to take on more debt (your new housing payment).


Mortgage lenders generally will not lend more than what would constitute 28% of a person’s monthly gross income before adding their monthly home payment to the back end.


If there is other debt, mortgage lenders will generally not originate a loan that causes a borrower’s total debt to income ratio to exceed 36% (mortgage plus other debt).


Conventional 28% front end and 36% back end, or


FHA 31% front end and 43% back end


Certain circumstances allow lenders to go higher…


Sales Price to List Price Ratio:


Sales price of a home divided by what the property listed for, for example


290,000 / 310,000 = .9355  or 94%



By calculating the ratio of sales price to list price of recent sales in your target market (the area where you plan on buying your home or listing your home for sale) you can get a better feel of what you should offer as purchase price, or if you are selling—the listing price:


Is it 90%? 95%? 103%?


By knowing that ratio you put yourself in position for a more realistic purchase price offer or sales price listing.


Loan to Value Ratio:


Loan amount / purchase price or refinance value


For example,


288,000 / 360,000 = .80 or 80%


You may also see CLTV or combined loan to value which simply means all of your outstanding loans (2nd mortgage, home equity loan etc.) divided by purchase price or refinance value



By knowing your loan to value ratio you understand immediately how much debt you are taking on from a percentage standpoint.  When you get to a certain equity position you may also be able to eliminate PMI or MIP from your monthly housing payment so it is important to know this number.


Investor Ratios


Return on Investment with Appreciation Ratio:


 Cash Flow before Tax + Principal Reduction + Tax Saved + Appreciation  / Cash Invested 

6,000 + 3,000 + 3,500 + 5,000 / 85,000 =  20.59%


Return on Investment without Appreciation Ratio:


Cash Flow before Tax + Principal Reduction + Tax Saved  / Cash Invested

6,000 +3,000 + 3,500 / 85,000 =  14.7%


The following ratios are used to Value Real Estate & the Relative Value Depends on Your Particular Market, therefore what is acceptable in one area may not be acceptable in another area, use with caution in mind.


Capitalization Rate Ratio:


Net Operating Income (from Schedule E or elsewhere) / Purchase Cost

30,000 / 390,000 = 7.7%

 Limitation: does not take into account financing


Cash on Cash Ratio:


Cash Flow before Tax / Cash Invested

6,000 / 85,000 = 7.1%

Is the strongest Method, it does take into account income, expenses and financing


Price per Square Foot Ratio:


Cost / Number of Square Feet = price per square feet

300,000 / 3,000 = $100 per square feet

Limitation: does not take into account income, expenses and financing


Price per Unit Ratio:


Cost / Number of Units = price per unit

300,000 / 4 unit quadplex = $75,000 per unit

Limitation: does not take into account income, expenses and financing


Gross Multiplier Ratio:

Cost / Gross Operating Income

300,000 / 50,000 = 6%

Limitation: does not take into account  expenses and financing


NOTE: the above numbers are rounded for illustrative purposes




For those who invest in rental property it is imperative that they understand the amount of CASH FLOW that they will receive (be sure to look at schedule E of the seller(s) tax return prior to purchase), they estimate the APPRECIATION that is expected or projected, they know the amount of PRINCIPAL REDUCTION that is expected at various intervals of the loan and they know the amount of DEPRECIATION (and how to break down the various elements of depreciation for their greatest benefit).  Always remember that you cannot depreciate land on rental properties.


By properly analyzing the rental property that you plan on purchasing and utilizing the appropriate ratios you CAN get a better appreciation (no pun intended) of the returns that you will or potentially can achieve based off of your purchase.


You can then know in the future if selling your property, refinancing your property, continuing to hold your property or doing a 1031 exchange will serve your best interest.  You also want to have an awareness of the tax implications at the time of purchase or preferably before you purchase so that you will have no future surprises.


Will you be taxed at ordinary income or capital gain rates?  What is your basis and what will you pay taxes on after depreciation.  You must understand that depreciation recapture will occur whether you take the depreciation—or you fail to do so.  Will you plan to avoid taxes in the future or will you just jump into your real estate investing career with no real plan of action as it relates to your tax implications that you will face at the time of your purchase, yearly and when and if you sell in the future?


Do you know about form 3115 and how you could possibly amend your tax return to get the depreciation that you overlooked if you currently own investment property and you failed to claim the depreciation?    By claiming the depreciation that you were entitled to you in essence put cash back in your pocket in a real way!  These are just some of the more pressing questions that you must ask–and answer on the front end if you are to maximize your rental property purchase.


Even if you purchase and quick turn properties for short term gains, you must realize that there will be tax implications (ordinary income rates if sold in less than a year and capital gain rates if sold after a year).  Whether you quick turn for a profit or buy and hold for cash flow and appreciation you must consider the combined tax implications at the federal as well as at the state level.




It is important that you use financial ratios (where and when appropriate) so that you can maximize your returns and minimize your mistakes during your lifetime.  By utilizing the above ratios among others–you can put yourself and your family on a positive path toward building wealth.


Always realize that there are many other financial ratios available at the corporate as well as personal level that may also be of benefit to you and your family.  In short, you don’t want to stop with what you have learned on this page.  Continue to pursue better ways that can lead you toward success in a more timely manner and use financial ratios where appropriate to help along the way.


All the best to applying financial ratios in a manner that will fill up your nest…


By taking Conscious Action Now–this page and site will show you how…


You CAN achieve lasting success–if you at this time make a conscious decision to give it your best…


By using the ratios appropriately you CAN put procrastination to rest…


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Risk Tolerance & Wealth Building

Learn why knowing your “risk-tolerance level” can help you build your wealth more effectively and efficiently in the coming years…


As the year of 2017 comes to an end in what seemed like a very rapid pace, many visitors to this site are contemplating ways that they can reduce their risk and achieve more in the coming year(s).


For those who desire to build wealth more effectively and efficiently it is important that you have a comprehensive view of your future and it is also important that you know the risks that you face in the current marketplace and you know your “risk personality” as you move along in the future and choose from an array of investment choices.


In this discussion will show you areas of concern that you should have in mind as you build wealth.  At the same time don’t let any of the risks paralyze or delay you toward getting started or continuing to move toward your wealth building goals in a way that best serves you and your family.


However, you must be aware that various risks exist—and it is appropriate that you plan in advance to help mitigate the risks or reduce the risks to an acceptable level so that you and your family can achieve more in the coming years.


Identity Theft Risk


With the Equifax breach in the spring of 2017 fresh in your mind, you now fully realize that identity theft is a real concern as over 100 million people in the United States alone was affected with identifying data of various types floating around in the hands of who knows who!


It is important that you know your current credit profile at this time so that you can make corrections and better protect your identity in the future.


You can go to and get all three of your credit reports at once and see if they are accurate and a true reflection of your credit usage at this time as you can get the free report from each agency once per year.


After one year you can use a staggered approach and pull your credit report every four months from TransUnion, Exquifax and Experian to further keep a handle on your credit.


You can also visit to check on your free annual credit report as well.  A free report will normally be received by you through the mail in 5 to 7 days.


If after viewing your credit report(s) you believe you are a victim of identity theft you can:


1)    Visit  (part of the FTC or Federal Trade Commission) to determine the steps that you can take, and

2)    Call the identity theft resource center at 888-400-5530 for free help


You can also take preventive measures to stop or at least slow down potential theft of your identity by signing up for services that “regularly scan” your credit reports and will alert you by text or e-mail when certain changes to your credit report occur.


Keep in mind that some services will only scan one of the three credit bureaus, however you want to choose a company that analyzes all three or at a minimum will notify the other two if certain changes occur!


You have until January 31, 2018 to enroll in Equifax TrustedID Premier product that scans all three credit bureau reports for free for one year or you can choose another company—just realize that there will normally be a monthly fee.


CreditKarma is a free service, however it utilizes TransUnion and Equifaxbut not Experian and you can get account activity and a VantageScore credit score from TransUnion and Equifax if you choose to utilize this service.


Many credit card companies, banks and insurance companies also have services that monitor your credit so keep that in mind as well.  However, they may not monitor your reports from all three credit reporting agencies.


In addition, you can consider a credit freeze (new creditors cannot view your reports to evaluate your eligibility (or shall I say the eligibility of those who desire to commit fraud against you) for a credit card, loan or other product such as insurance that requires a credit check and you are given a PIN number to unfreeze at time of your choosing and the freeze time frame is unlimited but is regulated by your state and a small fee is charged to freeze and unfreeze) or credit lock (bar new creditors from using your reports for as long as you are enrolled in the program.


If you are a victim of identity theft a credit freeze is normally free (police report normally needed).


In addition, “fraud alerts” could be of possible benefit to you.   A “fraud alert” notifies lenders that they should take extra steps to verify your identity, however lenders are under no legal obligation to comply.


You can place a free “initial fraud alert” on your credit report even if you are not a victim of identity theft.  An initial alert lasts just 90 days, so you would have to keep renewing the fraud alert.


If you are an identity theft victim you would qualify for a free extended fraud alert, which lasts seven years!


A credit freeze also prevents others from opening an SSA account online and you can unfreeze “only” your Equifax report to create an online Social Security Administration account online at account.


In addition to traditional lenders, landlords, utility companies, insurance companies and wireless phone companies among others may require a credit check—therefore use caution with who your provide your personal information and verify that they are who you think they are.


Market Risk


Whenever you invest in a particular sector of the economy you will face market risk.  Whether, stocks, bonds, real estate, currencies etcetera, you will have to expect that there will be some risk that you will have to accept—yet you must balance that risk against your personality and your future goals.


Investment Risk


You must know that investment risk will exist whether you invest in stocks, bonds, mutual funds, oil and gas and/or other more exotic type of investments, therefore it is important that you know your investment personality so that you can create an appropriate investment strategy that will take you toward your goals.


  • Conservative (for example 40% cash/money market and rest in market activities)


  • Aggressive (for example 20% cash/money market and rest in market activities)


  • Moderate (for example 60% cash/money market and rest in market activities)


  • Middle of the road (for example 50% cash/money market and rest in market activities— terminology)


Does your investment style represent any of the above or are you unsure if you even have an investment style?


Keep in mind that in this discussion market activity refers to stocks, bonds, mutual funds, real estate including REIT’s and direct investment in rental properties or purchasing real estate to turn a profit, currencies, options,  oil and gas investment and other market investments and activities.


Do you know what you take in and pay out on a monthly basis as far as your income and expenses are concerned?


Do you know how to manage your credit in the best manner possible throughout your lifetime or is it a mystery to you?


Do you have a properly funded emergency fund and have you looked at and planned for your financial future in a comprehensive manner based off of the above analysis?


By doing all of the above you put yourself in position to choose among the options available in a manner that best serves your long-term goals and at the same time you make life more enjoyable along the way.


Political Risk


Which political party best serves your interest as far as your finances are concerned?  Regardless of the party in charge you must balance your future goals against the political risks that you face and know that what is in effect now to your benefit or disadvantage—does not mean that will be the case in the future as there is an ebb and flow in the political arena as it is in all areas of life.


What will affect you and your family at the local, county, state and federal level as it relates to your finances regardless of party or who is in charge and how can you best plan for what will affect you?


Regulatory Risk


How are the markets being regulated in the areas of most concern to you?  Are there environmental concerns, financial market concerns, housing related concerns (and many others) and how will the regulation or lack thereof affect you and your family?


Economic Risk


Is the market rising or headed toward disaster?  No one knows the exact timing of market activity that can be a great help to you and your family or can cause great hardship for you and your family, however you can plan for the uncertainty that lies ahead in the current economy by approaching your finances in an intelligent, consistent and proactive manner so that you can guard against economic uncertainty.


Social Risk


The society in which you live in will also present you with risk.  Even if you are in the same country or state—risk will vary based on how the society in which you live operate as it relates to financial and other activity that you take part in on a daily basis.


Are you in a consumer driven society—or are you in a society in which saving and planning for tomorrow is not only stressed, but also acted upon by the majority of the population.


If you are in a consumer driven society you must be more disciplined and you must know that it is you who must take responsibility of your finances and not let marketing, what others are doing and other societal factors take you in the wrong direction as you move toward making life more enjoyable for you and your family.


Technological Risk


With technology advancements moving along at breakneck speed it can often lead you to wanting to buy the newest and more expensive technology products on the market.


As it relates to risk, technology has hurt as well as helped in the financial arena as time-saving on labor intensive activities have been a major success. 


The signing of contracts and other documents that once took weeks using the postal system can now be done in hours.


On the other end of the spectrum, identity thieves and other unscrupulous players can now perform their activities from a distant and in many cases get away with their mischief.


Be sure you are aware of scammers, identity thieves and others whether by technological means or face to face.


At the same time be sure to use the technological advances to your benefit—keeping security in mind at all times.


Legal Risk


You must be aware of the tax code and how it will affect you and your family.  In addition you must be aware of your rights as a consumer as it relates to credit and all of your financial affairs.


If you are or will be a victim of identity with the filing of your federal tax return the IRS may issue you an IP PIN (Identity Protection Personal Identification Number) that will in most cases protect your from the fraudulent filing of your federal taxes by identity thieves in the future.


If your social security number has been compromised or you suspect that you are a victim of tax related identity theft, there are steps that you can take including the following:


 File a report with local police

 File a complaint with the Federal Trade Commission (FTC) at or

the FTC Identity Theft Hotline at 1‐877‐438‐4338


 Contact one or more of the three major credit bureaus to place a fraud alert on credit  records


o    1‐800‐525‐6285

o   1‐888‐397‐3742

o  1‐800‐680‐7289


 Close any accounts opened fraudulently

 Respond immediately to any IRS notice(s) by calling the number provided

 Complete IRS Form 14039, Identity Theft Affidavit, then mail or fax it according to the  instructions

 Continue to file your return and pay your tax if needed; even if it is necessary to paper‐file returns.


Always keep in mind the fact that:


1) the IRS will never initiate contact with you by email messages to request personal or financial information

2) the IRS will never initiate contact with you by text messages to request personal or financial information


In addition, you must know your legal risks in other areas as you must know your rights to sue, arbitration clauses as opposed to your right to sue that may be found in some agreements, how to use the consumer finance protection bureau and other entities that will allow you to make legal maneuvers that can reduce the risk of loss to you and your family when you are being taken advantage of–or otherwise feel you are being dealt with unfairly!




There are many risks involved along the way as you build wealth.  This discussion has hopefully opened up your mind to some of the risks that may be present as you build wealth.


However, you must not take to heart the risks that lie ahead and not move to action in a manner that takes you toward your wealth building goals.  Your inaction at this time guarantees that nothing or little will happen as you move forward.


Be sure you take precautions against identity thieves by creating strong password for your accounts and consider using password organizers to generate and store passwords as remembering passwords can get out of hand if you have a large number of accounts and online activity.


It is important that you are aware of the risks that you will or might face in the future, however you don’t want to suffer from paralysis of analysis and not take the necessary action that will move you closer toward your future goals.


You must be aware of how you “allocate your investment activity” among the various financial sectors and markets to help reduce your risk.  Or another way of looking at it is you must be properly diversified among the various sectors of the economy and in particular the markets and types of investments that you now make or will make in the coming years.


All the best as you reduce your risk and achieve lasting wealth building success…


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Home Loan Options & Wealth Building

Learn whether “recasting your home loan” is a better option than refinancing for you and your family…


It is important that you realize that there are many loan options available for those who desire to purchase or refinance their home.  In this discussion we will look at some of those options and particularly those that can help you build wealth more effectively and efficiently in the current economy.


First and foremost it is important that you realize that there are basically two types of mortgage loans—government backed and conventional and they both require that you purchase insurance (with a few exceptions) if you put less than 20% down in order to protect their (lenders) interest in case of your default.


Government Backed versus Conventional


It is important that you understand the difference between government backed and conventional loans.


FHA, VA and USDA all fall under government backed loans and they may require that you pay MIP or a funding fee during the life of the loan or a certain time period that you have the loan.  The interest rate may be slightly higher than conventional, however you would primarily benefit by having a lower out of pocket down payment.  In addition, the credit score requirement is usually lower than that of conventional loans.


With conventional loans you would normally have a higher down payment, however, “homer ready” loans and possibly others offered by Fannie Mae could be an affordable option for those who qualify and the loan meets their intended goals.


FANNIE MAE and FREDDIE MAC normally insure conventional loans and they are often packaged or bundled together and sold in the secondary market in ways that can provide a continuous stream of cash for lenders to make even more home loans available.


They too have an “insurance premium” that you would pay if you put less than 20% down and the premium for a conventional mortgage is known as PMI (Private Mortgage Insurance) as opposed to MIP (Mortgage Insurance Premium) and they both basically have the same function—to protect the lender from risk of loss due to your low down payment and equity position!


In the following paragraphs we will discuss:


  • Recasting or Re-amortizing Your Loan


  • Home Equity Loan/Home Equity Line of Credit


  • Refinance (Straight/Cash Out)


  • Streamline Refinance


  • 80/10/10 to avoid PMI/MIP


  • Renovation Loans (FHA 203k and Fannie Mae)


Recasting or Re-amortizing Your Loan

A little-known strategy, called recasting,” or “re-amortization,” is available through some mortgage lenders and servicers.  It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms.


Most lenders charge a fee or at a minimum thousands of dollars to be paid toward reducing the remaining loan balance to recast your loan.  Bank of America and Wells Fargo Home Mortgage charge customers $250 for a loan recast.  At Wells Fargo, customers must make a lump sum payment of $5,000 or 10 percent of the remaining loan balance, whichever is greater, to qualify for a loan recast.


Keep in mind that lenders can change amounts at any time so use the above figures as a guide only as it is best to contact your particular lender.


Essentially, a loan recast means that while your interest rate and your home loan term remain unchanged, your monthly mortgage payment is reduced to reflect your actual current loan balance!


For recasting to work, lenders “require” an additional lump sum payment to reduce your balance.


In order to determine if recasting your mortgage can save you money in the long-run you will have to “run the numbers” under various scenarios that are unique to your and your family’s future goals and current financial condition.


Recasting, also called reamortization by some, is a little-known alternative to lower your mortgage payments.


It doesn’t change your interest rate or the term of your loan, however it will reduce the amount you pay each month on your current owner occupied home that has a mortgage loan—usually from traditional lenders.


To amortize a loan usually means establishing a series of equal monthly payments that will provide the lender with:


*interest based on each month’s unpaid principal balance, and


*principal repayments that will cause the unpaid principal balance to be zero at the end of the loan


It is important that you compare recasting with other well known loan options that you may already be familiar with!


  • Refinancingkeep in mind that you lower your monthly payments, but you often pay hefty fees and go through a credit check.


  • Paying off part of the principal with a lump sum or paying additional principal on a monthly, semi-annual or other timely basisyou can normally do this easily with most lenders, however you are only shortening the length of the mortgage as the monthly payments will remain the same.


  • Recasting or re-amortizingyou reduce your monthly payments by paying a lump sum against your principal, but you skip the credit check and pay virtually no fees with this approach.


Other Reasons Why You May Want to Recast Your Home Loan


  • You’re self-employed or have poor credit, making refinancing a tough proposition.


  • You recently refinanced your mortgage and came across additional unexpected income but you don’t want to go through the cost and hassle again of refinancing but you would like to lower your monthly payment some.




  • You usually invest spare cash in the stock market, but the outlook is so bleak you might as well reduce your mortgage. This is especially true if you also have a high mortgage and can’t refinance.


*You close on your new home and sell your current home at a later date and you want to use some or all of the proceeds to pay down your mortgage to reduce the monthly mortgage payment and balance but not the term of the loan.




Because the fees are so small, you don’t have to figure out a breakeven point as you do with a refinance.


However, if you have less than $5,000 in cash available for recasting your mortgage loan, it will be difficult to get your lender to agree to it, and it will only make a minimal difference anyway if the amount is that low.


Besides, it is not wise to deplete your emergency fund and not have cash readily available for life’s “unexpected” happenings.


When recasting may not be a good choice


*If you pay a high rate on your loan and you have good credit, a refinance may be worth the cost, especially if you have a legitimate need for a cash-out refinance.


  • If you have a lump sum and a mortgage at a low rate, you’re better off investing your money elsewhere where you can get a better return. The S&P 500, NASDAQ and other financial markets consistently appreciate at a higher level (over 10% in many years) than the benefit you might get by recasting your mortgage.   Investing in the market, REIT’s and other investment options in many cases could earn you more than paying down your mortgage to get a lower monthly payment.


Even though you know there’s no guarantee with the stock market, REIT’s or other investment choices—it still might be a better option for you depending on your risk tolerance level and other factors.


  • If banks loosen up and grant new mortgages to riskier prospects that could also sway the choice of recasting–and make refinancing a better choice if you have weak credit at this time.


  • If you pay a high rate and have good credit, a refinance may be worth the cost, especially if you have a legitimate need for a cash-out refinance, such as remodeling your home, paying for tuition or other options (i.e. carrying more interest so that you could better utilize that interest for tax purposes) that would make refinancing a better choice than recasting your loan.


To reiterate how recasting works:


You must first determine that recasting your mortgage is the best choice or at a minimum a good choice and then you must get your bank to agree to a recasting, and you must then:


  • Pay the lender a one-time fee in the neighborhood of $250 or more.


  • Pay a lump sum toward your mortgage, typically $5,000 or more.


  • Ask your lender to amortize the remaining balance and change your monthly payments, as opposed to just reducing the principal.


Quick Example:


You have a remaining principal on mortgage of $400,000 and you put $40,000 toward recasting your loan bringing the remaining principal down to $360,000.


*20 years left on mortgage


*6% interest rate


$2,866 monthly payment on $400,000 loan


After recasting your mortgage you would still have 20 years left on your mortgage and your interest rate would still be 6%, however your remaining balance would drop to $360,000 and your monthly payment would drop to $2,580


Monthly reduction: $286


Monthly Reduction * 240 (20 years) = $286 * 240 = $68,640


$68,640 (savings over 20 year period) minus $40,000 (the initial lump sum payment) = $28,640 in additional savings over the life of your loan, or another way of analysis is you paid $40,000 to save $28,640 over a 20 year period by lowering your monthly payment by $286 for the remaining 240 payments.


How long will it take for the bank or mortgage company to complete a Mortgage Loan Recast?


A recasting is technically a lot simpler than a refinance in how it works and the ease in which it is created, however, in actuality it can take longer than a refinance because you need the approval of the owner of the loan, which in many cases may not be the bank that services it!


Many banks may take several months to process the request and then several months to implement the new payment.


Therefore, if you are considering recasting your loan–ask the bank upfront about the fees, the minimum amount required to recast the loan and the processing time from the day you start up until the time that you will make the new lower payment if the loan recast is agreed to by the owner of the loan.


Always realize that banks aren’t obligated to recast  or re-amortize your loan and they actually have little incentive, given the low fees they get from the strategy.


However, if you are one who can benefit or feel you can benefit after proper analysis, and you have the gumption to ask and further inquire—and you have done your homework and know that you can truly benefit—many banks will let you recast your loan as long as you ask—however don’t expect the bank to advertise  the loan in the same way it might advertise a refinance because they will only earn crumbs, whereas with a refinance or new mortgage they can get a whole slice of bread!


Be sure to use the mortgage recast calculator below to see if recasting is a feasible or worthwhile option for you at this time—keeping the above discussion in mind as a starting point to see if you can benefit.


Mortgage recast calculator:


Recasting vs. shortening your mortgage


You really have to know your plan for your mortgage and run the numbers to figure out the best option for you.  Do you plan on moving in the near future? Is a job transfer looming down the road?  Will your kids be graduating from high school and you plan on downsizing?


If you plan on consistently over-paying your mortgage, then recasting usually will not provide much of a benefit.  However, if you plan on just making a big payment once, and would prefer to reduce your monthly mortgage expenses instead of shortening the overall timeframe, then re-amortization might be something that you would seriously want to consider.


Reducing the time length of your mortgage loan can have bigger costs up front as you’re putting more money in now, but your pay off will be on the huge decrease in your monthly expenses when it’s finished (early payoff of mortgage).


You will also have saved possibly tens of thousands of dollars in interest payments and depending on your goals you may or may not have a need to carry interest depending on your tax, family situation and other factors that are unique to you.


Only you and your family (and possibly your financial advisor) have all the information needed to run the numbers properly and decide which option will put you ahead and better serve your long-term goals during your lifetime.


While many homeowners are familiar with the option of refinancing their mortgage, not all homeowners understand loan recasting. This may be because not all lenders offer recasting or re-amortizing, and not all borrowers are eligible.


However, the process could save you money in two potentially big ways by reducing your monthly mortgage payment and by allowing you to avoid the cost to refinance.


Essentially, a loan recast means that while your interest rate and your loan term remain unchanged, your monthly mortgage payment is reduced to reflect your actual current loan balance. For example, if you’re 10 years into a 30-year mortgage, once you recast your loan, you will still have 20 years remaining to pay it off.


For recasting to work, lenders require an additional lump sum payment to reduce your balance. The size of that additional payment impacts how much you can save with a loan recast. However, instead of recasting, you could pay a lump sum toward your existing loan, which would decrease your balance, but not reduce your monthly mortgage payment.


Loan recasting can make sense if you inherit money (or receive a significant bonus at work) and wish to apply it to the balance on your mortgage.  Because you reduce the balance ahead of schedule, you ultimately will pay less interest and the key benefit of a lower payment will be achieved.


Individual lenders have different requirements for loan recasting.  For example, some lenders require a lump sum payment of $5,000 or 10% of the loan – whichever is greater – to reduce the balance before they would qualify you for loan recasting.


However, keep in mind that while saving possibly several hundred dollars per month on your mortgage payment may seem great, you will also have spent a significant amount of money to achieve that reduction in payment!


Always remember that even though lenders do charge a small fee for loan recasting, it is often as low as $250 and they really don’t make a lot by recasting–therefore you will rarely if ever see loan recasting advertised.


Does Your Current Home Loan Qualify?


Loan recasts are allowed on conventional, conforming Fannie Mae and Freddie Mac loans, but not on FHA mortgage loans or VA loans.  Some lenders recast jumbo loans, but consider them on a case-by-case basis.


In order to qualify for a loan recast, you must be current on your loan payments, and have the cash necessary to pay down your principal balance.


A credit check and an appraisal are not necessary!


Why Should You Recast Your Home Loan


Some of the advantages of a loan recast include:

Reduced Payment. By recasting your loan, you can ease your cash flow without the expense of a home refinance, which can require an expenditure of as much as 6% of your loan balance. In fact, in some cases, what would be spent on the refinance could be used to reduce your balance enough to qualify for a loan recast.


No Appraisal Required. Unlike a home refinance, a loan recast does not require an appraisal. If your home has dropped in value, you may not be eligible for a refinance, since most lenders only refinance a home with at least 5% to 10% in equity.


No Credit Check Needed. Loan recasts generally do not require credit approval. If you have credit issues and cannot qualify for a refinance, you may still qualify for a loan recast.


A few homeowners that the creator of has worked with have deliberately use the loan recast strategy for paying down the principal on their new home after selling their existing home.


Just remember that you typically need to wait 90 days after your loan goes to settlement before you can recast it in most states.


Why You Should Not Recast Your Home Loan


Before you decide to recast your loan, you would be wise to evaluate it in the context of your entire financial plan–or in a comprehensive manner.

Some of the disadvantages of loan recasting include:


Ties Up Your Cash. If you have a lump sum of cash, make sure that paying down your mortgage is the absolute best use of that money.  If you have high-interest credit card debt, you should more than likely pay that off first.


If you lack an emergency fund or you need to set aside money for other expenses such as a new car, educational or other household purposes, it’s probably best that you not put your entire windfall or a large portion toward paying down your mortgage.


Doesn’t Reduce Your Mortgage Term. You should also consider loan recasting in the context of your retirement.   Many older homeowners hope to pay off their mortgage before they retire. However, a loan recast will not shorten your loan term, although it could improve your cash flow.


If your goal is to reduce your mortgage balance, switching to biweekly mortgage payments or simply making regular extra payments to your principal may be a better option than a loan recast.


Doesn’t Reduce Your Interest Rate. If you are paying a high interest rate, a refinance may be a better option. A lender can compare the costs and monthly payments on a refinance and a loan recast to determine which is the best fit for you.  Be sure you know your credit standing and make improvements if needed to open up more options for your loan choice.




Keep in mind that mortgage loan recasting isn’t for everyone, but if you have extra cash along with a properly funded emergency fund, consult your lender and use what you have learned on this page to see if this method of reducing your monthly payment is right for you.


If you are a homeowner considering selling your current home and moving into another in the future but have yet to sell your current home, you could very well benefit from a loan recast.


Furthermore, if your home value has gone down or you currently have credit challenges, you may also benefit more from a loan recast as opposed to refinancing your loan.


However, prior to actually inquiring about a mortgage loan recast be sure that you have mastery of your credit at this time as you may be able to get your credit in a respectable range where options other than recasting your mortgage will be more beneficial.


Home Equity Loan or HELOC (Home Equity Line of Credit)


A home equity loan or home equity line of credit may be a more appropriate choice for you if you have decent to excellent credit and you have run the numbers based on current market conditions (the current home mortgage rates) and you have determined that a refinance or HEL/HELOC will save you money or will otherwise be more beneficial.




Straight Refinance


A home refinance typically falls into one of two categories: straight or cash-out.


In a straight refinance, you come out of the process owing the same amount as before, but the terms of the loan are different.


Refinancing is basically just replacing one loan (or set of loans) with another loan (or set of loans), normally on terms more advantageous to the borrower.


When you straight refinance your mortgage, you’re taking out a brand-new mortgage on your home and using the money to pay off the existing loan but with better terms (usually a shorter duration and/or a better interest rate).


Cash-Out Refinance


In most cases, most people do a straight refinance in order to get a better interest rate, which could possibly save them tens of thousands of dollars in future payments.


In a cash-out refinance, you come out owing more than before (your loan balance increases), because you convert some of your home equity to cash during the refinance.


For example, say you owe $300,000 on a house worth $400,000, which means you have $100,000 in equity. In a cash-out refinance, you might take out a new loan for $350,000, of which $300,000 goes to pay off the original mortgage and $50,000 becomes cash in your pocket.


That cash really isn’t free money though. It came out of your home equity, which falls by $50,000 from $100,000 to $50,000.  However, you now have $50,000 in your pocket to do as you please and the tax ramifications are very favorable to you–normally $0.


How much will I save if I refinance?


The savings available from a straight refinance depend on how much you can lower your interest rate and how much time remains on your original mortgage.


Say you originally took out a 30-year mortgage for $300,000 at 6 percent interest. Your monthly mortgage payment will be about $1,799.  After five years, you’ll still owe about $280,000, and over the remaining 25 years, you’ll pay about $260,000 in interest on top of that remaining principal.


Now say you did a straight refinance for the current $300,000 balance, but this time at 4.5 percent interest, and you do it over 25 years, to match the remaining term of your current mortgage.  Your new monthly payment will be about $1,667  a savings of about $122 a  month.


Over the next 25 years, your total interest payments will decrease and you will have savings of more than $35,000.


What a difference 1.5 percentage points can make over time.


Why Should I Choose Refinancing Over Other Options?

Advantages of refinancing:


Though the interest savings is reason enough to do a straight “refinance,” you can find other compelling reasons to get rid of your old home debt for a fresh new home loan.  You might have an adjustable-rate mortgage, which has payments that rise and fall, and want the security of a fixed-rate loan or you may want to eliminate PMI or MIP.


If you have more than one mortgage or a home-equity loan on top of your original loan, a straight refinance allows you to consolidate that home loan into a single loan.


You may even do a straight refinance to address household issues, to add (or remove) a new spouse or partner to the mortgage loan or use your creativity and unique position at this time to find even more reasons to justify a straight refinance–in addition to the savings in interest.


Streamline Refinance


Streamline refinancing is an option for borrowers who want to take advantage of low interest rates, get out of an adjustable rate mortgage (ARM) or graduated payment mortgage (GPM).  Both the FHA and VA offer streamline refinancing for home mortgages.



This program is different than the FHA and VA streamline refinance programs, where neither an appraisal nor income documentation is required.


A conventional refinance is any refinance loan that conforms to guidelines set by Fannie Mae or Freddie Mac.


This type of refinance is available with as little as 3% equity with the 97% conventional refinance program.


For a conventional refinance the lender requires an appraisal and documentation regarding the borrower’s income and assets.


The FHA streamline refinance program helps current FHA homeowners lower their rate and payment without most of the traditional refinance documentation.


It is a fast and cost-effective way to refinance that comes with lenient documentation and credit standards.


In 2017, the FHA streamline could become an even better value. FHA could lower its mortgage insurance premiums by 0.25% this year after HUD administrators review FHA’s financial stability. Even without that reduction, though, the FHA streamline is still an incredible “deal.”   Many borrowers can drop their interest rate and their monthly mortgage insurance thanks to a previous MIP cut in 2015.


To further entice FHA mortgage holders, FHA offers upfront mortgage insurance premium (upfront MIP) refunds.  A portion of the premium paid when the original FHA loan closed will be applied to the upfront MIP on the new FHA loan.


80/10/10 to Avoid PMI or MIP 


There are many loan choices available and many have PMI or MIP if you put less s than 20% down.  An 80/10/10 loan means that you would be obtaining one loan for 80% of the home purchase price, a 10% down payment from your funds and a 10% second mortgage from the same–or a different lender.


By structuring your loan in the above manner you could avoid the monthly payment of PMI or MIP that could be several thousand dollars depending on the purchase price and the structuring of your loan.  An 80/10/10 loan is a proven way that many consumers have avoided this annoying premium for years.  However, not all lenders will structure a loan in this manner so you may have to shop around until you find a lender(s) that will agree to structuring a loan in this or a similar manner.


203k or Fannie Mae Rehab Loan or Refinance

Should I put money down that I have now and do renovations or should I seek a loan and do the needed repairs?


Whether you currently own a home that is in need of rehab or you have plans to purchase a home in the future that may need to be rehabbed for your personal home you can use renovation loans to do so.  FHA 203k rehab loans can in many cases be streamline financed into a regular FHA loan if certain conditions are met. 




There are many other loan options available such as seller financing, combining multiple loans to avoid PMI such as an 80/10/10 loan and many other creative options in addition to those mentioned above.




The key point to remember when selecting a home loan (or any loan) is to select the loan that works best for you and your family at the time of selection and throughout the period that you will (or at least intend on carrying the loan) have the loan.  A pre-qualification or pre-approval on the front end is usually a wise choice as well when you are considering the purchase of a new home.  Always begin your loan selection with the end in mind.


You must remember that there are many loans available and the creativity of loans are limited only by the imagination of the lender (and what they or their company will accept), the buyer and the seller.


What you have learned in this discussion is what can get your mind jumpstarted on just what is available to get you to search out or create a loan type that works best for you and your family whether you are seeking a conventional loan, a government backed loan, an owner financed loan or any creative type loan that you may pursue.


In addition, realize that hard money loans, lease purchase and lease with the option to purchase is yet another way to possibly purchase your home and they both have added benefits and drawbacks depending on your current financial position.


Also realize that the best approach, generally speaking is to gain mastery of your credit, save for a down payment (and emergency fund) and address all of your future goals in a comprehensive manner “prior to” purchasing your home or refinancing your home loan.


It is the hope of that this page has started you on a path to purchasing or refinancing your home in a manner that serves the greater interest of you and your family—and not that of lenders and others who have no real concern for your future wellbeing.


All the best to your selection of the best home loan option that will lead to your success…



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Maturity & Wealth Building

Learn if you have the maturity that is needed to manage your finances effectively throughout your lifetime…


Do you currently manage your finances in a mature manner or are you all over the place and going in directions that are not of your choosing?


It is imperative that you manage your finances in a mature manner and not in a manner that is reckless—as so many are doing at this time.  With immaturity at a fever pitch from the highest office in the land to the halls of congress it can often be disheartening to see the level of immaturity on display in the times that we now live in.


With tax legislation now in the news where many will benefit greatly and even more who will reap small rewards or none at all–you must still have an optimistic view of your and your family’s future!  Regardless of the tax situation you now face or may face in your future as a result of new legislation, it is important that you make the decision at this time to manage your finances in as mature a manner as possible.


In order to manage your finances in a more mature manner you must ask and appropriately answer the following questions in as responsible a manner as possible.


Do you know how to organize in your mind financially what you need to do in your financial life to achieve the results that you desire to make your life more enjoyable during your working years and after you retire from working?


Furthermore, do you know all areas of your finances that you must address?


In clear terms you must know how to comprehensively manage your finances.


By doing so you are showing maturity in your life and maturity in the management of your finances.


In this discussion you will learn how you can manage your finances in a more mature manner so that you can improve the living conditions for yourself and your family.  You can now pursue your financial goals in a more time efficient—easy to follow—and easy to understand manner and in a manner that will provide you the real opportunity to achieve the goals that you set and the goals that you desire or need to attain to make your life more meaningful while you are here on earth.


How You Can Show Maturity by Knowing Exactly Where You Stand Financially


If you are to manage your finances in a more mature manner you must know where you now stand financially and a budget or cash flow statement will get you on a path to knowing exactly where you stand financially as far as your monthly inflow and outflow of cash is concerned.


In addition, you must know your cash flow on an annual basis as well.  Finally you must know who you owe and what you own so that you will know your net worth or how well you are doing financially!


Your effective knowledge and understanding of how your inflow and outflow of cash affects you and your family on a monthly basis is the starting point for you to show maturity as it relates to managing your finances and building wealth.


By creating a budget at an early stage in your life and understanding how to use that budget or cash flow statement to your advantage you are showing maturity in the management of your finances.


Even many of those who earn six figures or millions of dollars use a management approach that lets them know where they are financially—and where they are headed financially.  By doing so they add clarity and an additional layer of financial security during their lifetime along with peace and joy in their daily life—and you can do the same.


It is important that you use personal financial statements to help you effectively manage your finances throughout your lifetime so that you can achieve more—and do more throughout your lifetime.


How You Can Show Maturity by Effectively Managing Your Credit During Your Lifetime…


Did you know that the following credit scoring and credit card companies can help you manage your credit and finances more efficiently to help you achieve what you desire throughout your lifetime—AND IN A MORE MATURE MANNER?—uses Experian in their credit score calculations

CreditKarma—uses TransUnion and Equifax in their credit score calculations

Credit Sesame—uses TransUnion in their credit score calculations

Quizzle—Free credit score and credit report every 3 months—uses TransUnion in their credit score calculations—an Experian Company—3 Bureau Reports and FICO score for a monthly fee—low cost trial offer available


MyFICOfee for score and credit report

Credit Card Issuing Companies—use various credit bureaus and scoring techniques in their credit score calculations and if you are a cardholder credit scoring service is normally free, Discover, Capital One , Chase,   CITI and many other credit card issuers have free or nominal rate access to your credit score based on varying scoring models

 ANNUALCREDITREPORT.COMall in one site where you can get a free copy of your credit report from each credit bureau once per year–TransUnion, Equifax and Experian–be sure to TEE off on getting your credit right today–No PUN intended…


Credit Resources—a rare page on the internet that allows you to use helpful resources in one location to manage your credit more efficiently


Credit Improvement—if you currently have credit issues be sure to go to this page before you do anything else


All About Credit—go to this page if you have a desire to manage your personal credit effectively throughout your lifetime and not leave any area of your credit management to chance…


All of the above companies and pages will provide you free or nominal rate credit scores and credit files (and/or credit advice) and utilizing some or all of them should be a part of your overall credit management plan at some stage in your life.


Keep in mind that you will sometimes (depends on who is providing the score) get a “consumer” or “educational” score for your benefit or a Vantagescore that is created by the 3 credit bureaus that many lenders actually use


To get your actual FICO score go to!


Other Key Credit Points:


Sure the lender that you apply to for credit can pull your report and give you helpful advice (or in some cases not so helpful–remember the housing market meltdown of 2008).  However as a consumer in control of your own life,  you should pull your credit report at least annually if not more frequently and see what you can do to move toward making your dreams come true.


You should always know what is in your report and correct inadequate or damaging information on a constant basis.


You should also know your credit score “before” contacting a lender!


By doing the above you increase the likelihood of successful “pre-approval” which gives you more negotiating power than a “pre-qualification” if you were to purchase your home using traditional lenders.


If you were purchasing an auto, applying for a credit card, seeking employment or rental agreement for housing—your credit in many cases would play a role and knowing where you stand up front is the right approach to take in almost all instances.


In addition, your credit score takes a hit (goes down) whenever your score is pulled by someone other than yourself (with a few exceptions).


How You can Show Maturity by Having an Overall or Comprehensive View of Your Finances…


Once you have a handle on your monthly income and expenses and you know how to manage your credit effectively throughout your lifetime—you need to see all areas of your finances that you must address—and then you must address those areas.


Have you addressed your insurance needs, your investment needs, your tax concerns, your emergency fund, your education planning, your estate planning/wills and your retirement needs in a way that will get you results that you need—or the results that will serve your best interest during your lifetime.


By comprehensively addressing what you need to address at this time you are showing maturity in managing your finances because you are not leaving anything to chance, thus improving the likelihood that the goals that you desire will be achieved.




By looking at ways that you can manage your finances more maturely you are forcing your mind to address what needs to be addressed to make your life more meaningful and at the same time putting yourself and your family on a better track for long-term success in a comprehensive manner.


You are not doing like many who go through life drifting along and letting life’s unpredictable paths direct their future or the opinions and feelings of others direct their future.  Quite the contrary, you are getting out in front of your finances and pursuing your dreams in a more intelligent, consistent and proactive manner where the success that you see is not only the possible outcome–but the outcome that will be achieved!


Or, another way to look at it is that you are “pursuing your dreams” from a better “vantage point” than most and you are showing the maturity that should be expected of you if you are one who sincerely desire to make your dreams come true.


All the best as you continue to mature and achieve success…


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Viewpoints & Wealth Building

Learn why “changing your viewing angle” and  changing what you “focus on” can change the course and direction of your life…


Did you know that your viewpoint of how you look at and focus on things and events in your life affects your future outcomes (and future generations) in ways you never imagined?


Have you ever noticed that with some people the more they get or have—the more they complain?  It is often because they don’t count their blessings or appreciate what they now have!  In addition it is often caused by “their view of their situation” and not looking at the big—or overall picture.


Even those who lack in what they feel they should have often fall victim to looking at their present and future in the wrong manner or from the wrong point of view.  They will often “focus on” things that they really don’t need anyway and not on what is important and significant as far as making their life more enjoyable while here on planet earth.


In this discussion will discuss ways that you can get more out of life and improve your finances at the same time by looking at your future from a different or better viewpoint!


It is important that you know what you can be in your future.


If you change what you pursue and see the change that you desire in clearer terms you can get the change that you desire!


You can choose to focus on your shortcomings or count the blessings that you now have and pursue even more by viewing your current situation from the vantage point of success—as opposed to shortcomings or not achieving what you desire!


It is imperative at this time that you focus on success and you make the decision to give it your best.


You can improve your finances if you realize at this time that it is not what you have, but what you appreciate and do with what you have!


Also realize that happiness and joy resides inside of you and it happens when you focus on what you now have and you make the decision at this time to give it your best and pursue your life purpose.


By looking at your feelings on a daily basis as being excellent, fantastic and great as opposed to ok, so-so and good—you immediately change your focus on a daily basis.


However, as it relates to wealth building you must also have a viewpoint of your future that has clarity as opposed to confusion.  You must know the “steps that you can take” to bring more clarity and success into your life so that you can see your future with the clear financial focus that you need and deserve.


What is your perspective of your future?  Do you see problems in the horizon or do you see success and solutions that you can not only take—but are willing to take?


Focus on what you have (mentally, physically and spiritually) and you will receive more if you put in the effort!


What you focus on will grow—focus on the positive to achieve results that will show!  It is important that you realize that change occurs when you focus more on appreciating what you now have and then making a serious commitment to achieve more.


You must be thankful for what has happened in your past because it is now the starting point (or continuation point) of what you can achieve from this point forward.


You can choose to see your current and future financial condition as positive and prepared  (the success that you see is a done deal) or you can choose to see your situation as negative and distracted (why me).


You must realize that setbacks in life will occur, however you don’t have to stay there.  Learn to appreciate what you now possess on a daily basis.  And always realize that gratitude or being thankful for what you now have or possess is the gateway to you achieving more throughout your lifetime.


Furthermore, you must realize that whatever you are doing for God’s glory—you are taking steps to connect to your life purpose or what you were put on earth to do.


As far as the steps that you need to take to view your financial future in more positive and clear terms are concerned—it is imperative that you see clearly how you can:


1)      Determine your level of financial stability


2)      Determine your level of credit knowledge and management ability


3)      Determine if you know all areas of your personal finances that you must address


Determine Your Level of Financial Stability


If you now lack the income to do what you desire in your life or reach the goals that serve your best interest—you must know that.


It is your responsibility to know where you are financially!


If you now have the income to do what you desire in your life and reach the goals that serve your best interest—you must know that as well!


Just what will put you in position to know just that?


A properly constructed cash flow statement or budget is the starting point for you getting to know your level of financial stability.  You must know if you have positive income or a positive cash flow (disposable and discretionary income) on a monthly basis so that you will know if you need to get more income (supplemental income) or reshape or re-organize your lifestyle (cut your monthly expenses) or do a combination of the two.


Determine Your Level of Credit Knowledge and Management Ability


Do you know the factors that affect your credit?  Do you have credit score and credit management habits that will get you a good rate or the best interest rate on various products or services throughout your lifetime?  It is imperative that you know at this time whether you have an effective understanding and application of credit and how you can best utilize credit in your life.


Once you gain an effective understanding and application of credit you will be well ahead of most and you will position yourself and your family for a lifetime of success.


Depending on your current credit circumstances and your willingness to put in the required work—you can gain the management ability to maintain or improve your credit to the level that you desire throughout your lifetime.


Determine if You Know All Areas of Your Personal Finances that You Must Address


It is imperative that you know that you must address your personal finances in a comprehensive manner.


You can choose to do like many who address their finances in isolation and have no real clue of how their total finances all interconnect.


You can also choose a less burdensome path by knowing all areas of your finances that you must address and then addressing those areas based on your unique circumstances and the outcomes that you desire (your short, intermediate and log-term goals) for yourself and your family.




Whether  you look at your future as being bleak or optimistic you must realize that your particular view will play a major role in you attaining what you need to attain to make life more meaningful (and beneficial) for you and your family.


You must understand that by knowing your level of financial stability you put yourself in position to make better decisions and gain a better view of your future.  You will know in more definite terms if you need supplemental income (part-time job, uber, lyft etc.), need to cut expenses or properly establish an emergency fund!


In addition, by taking inventory of how you manage your credit and determining if you can make improvements you can set yourself up for effective and efficient credit management throughout your lifetime.


Furthermore, by knowing all areas of your finances that you need to address you put your mind at ease—and greatly reduce the stress in your life.  You will see your future in a clearer and more focused manner and in a manner where success is given a higher probability of happening.


In a nutshell, you will be looking at your future in a more intelligent, consistent and proactive manner and in a manner where you will know what you can and can’t do throughout your lifetime.


You will know your insurance needs, your investment planning goals, your tax planning goals, your emergency planning goals, your education planning goals, your estate planning/wills goals and your retirement planning goals and the paths that you can take to achieve those goals.


You will see your current and future lifestyle from a “point of view” of knowing whether you will have the income on a monthly, annual and long-term basis to support the lifestyle that “you see” for yourself and your family.


All the Best from your new Viewpoint of Success…


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Optimism & Wealth Building

Learn why you must have an optimistic view of your future as you build wealth…


With uncertainty at a high level in the United States and many other parts of the world—whether it be hysteria caused by the mass shooting in Las Vegas Nevada, hostilities between North Korea and the United States, anxiety caused by the massive data breach at Equifax, massive fires in Northern California or unusual weather patterns in many areas of the Atlantic Ocean and Gulf Coast region such as hurricanes and earthquakes—many are suffering from anxiety or uncertainty about what lies ahead both globally as well as in their own lives.


Regardless of what is going on around you it is imperative that “you” have an optimistic view of how you can make “your” dreams come true.  As far as building your wealth goes–it is imperative that you see success in your credit and financial future.


Even though the creator of has recently dropped his $2,000 computer (broke the screen—first time I have dropped and broken a screen on phone or computer in over 30 years)) and is in a not-so-upbeat mood—joy and a positive response to adversity—along with an optimistic view of the future is still not only expected—but will occur!


You too must have confidence that the outcomes that you expect will occur!


In this discussion will show you that in spite of it all there is no reason for you to fear what lies ahead and definitely no reason for you to fear what lies ahead in your financial and wealth building future “if” you make the decision to do what you need to do. at this time feels obligated to offer you—and other visitors to this site a more optimistic vision of your future and provide in some small way the know how or steps that you can take to help you build up your spirit at this time so that you can start—or continue achieving at a higher level of excellence throughout your lifetime with optimism about your future success playing a major part toward achieving that excellence!


In order to worry less—or not at all, you need a mental understanding of what you can comprehensively do as it relates to your finances so that you can achieve at the level that you desire—or at the level that you need to achieve at to make life more meaningful while you are here on earth.


You must see success in your future and you must have faith that things will get better in your life regardless of what is occurring around you!


That sounds great, but you don’t understand what I am confronting at this time—you say!


Whether you now lack the income, are facing life challenges from all directions, lack the financial know how or plain just don’t know where to start—you can change that now by focusing in on this page in a highly intentional manner so that you can not only gain an optimistic view of your future—but you can also learn practical steps that you can implement immediately and get momentum rolling so that you can put yourself and your family on a positive path to achieving more throughout your lifetime.


You must have an optimistic view of your future in spite of where you now are and you must know that achievement at a high level can–and “will” be in your future!


1)      You must know where you are currently at financially and then see what you need to do to get on a positive path to success


2)      You must have “mastery of your credit” and know what you can do in definitive terms to better manage your credit throughout your lifetime


3)      You must have a mental framework of what you can do to comprehensively manage your finances throughout your lifetime and you must have the mindset that you will comprehensively manage your finances throughout your lifetime


You must ask the following 3 questions and sincerely answer them if you are to effectively manage your credit and finances and gain an optimistic picture of your and your family’s future.


1)      Do You Know Where You Are Financially?


It is imperative that you know your monthly inflow and outflow of income (you must complete a personal cash flow statement or personal budget at a minimum).


You must calculate your monthly inflow and outflow of cash in as accurate and responsible a manner as possible.  In addition, it is worthwhile to know your inflow and outflow on an annual basis (personal income statement) as well.


Furthermore you must know who you owe (liabilities)—and the amounts—what you own (assets) and the amounts (by creating a personal balance sheet) so that you can derive your Net Worth.


2)      Do You Have Mastery of Your Credit?


Do you have an effective system that allows you to manage your credit effectively throughout your life?


Although confusing to some, credit management is not as difficult as you think if you are willing to put in a little time and effort to learn the basics.


By visiting the above link and utilizing the knowledge that you will gain you will have no problem managing your credit effectively and efficiently throughout your lifetime.


3)      Do You Have a Comprehensive Picture of How You Manage Your Finances?


It is also imperative that you know all of the areas of your finances that you must address.  You must be able to pull up from your memory all of the areas of your finances that you need to address at the drop of a hat.


You must know that you must look at and address your insurance needs, your investment needs, your taxes, your emergency fund, your education planning, your estate planning/wills and your retirement needs on the front end to be more effective throughout your life stages—or during your wealth building periods of your life.




By asking and answering the above questions you must not be intimidated—even if you are new to personal finance or you don’t have experience managing your finances!   You must set meaningful and significant goals and have every intention on reaching or exceeding those goals! 


You must understand fully that by comprehending the material on this page and following the links on this page there is a high probability that you will find what works for you financially and what can possibly spark what needs to be sparked inside of you—that can lead to you following a path that can make your dreams come true.


You must realize that you don’t have to be a financial expert—but you must have a “practical understanding and overview” of what you can do to make your financial (and life) dreams come true. 


By gaining a real understanding of the 3 topics discussed above you have (or soon will) put yourself well ahead of most people in the general population when it comes to effectively managing your credit and finances. 


As a result of visiting this page you now have a more optimistic and realistic view of what lies ahead for you and your family regardless of what has happened around you, is happening around you—or may happen around you in your future.


If you are like most visitors, you will use this page and site as a springboard to achieve major success throughout your lifetime.


You now know that it is you who possess the keys to success as it relates to your future.


You now have an optimistic future in your sights…


You now have access to wealth building advice in small–but highly effective bites…


You must now play your part…


As you journey on your fresh start…


If you are or are not in a financial bind…


You must make effective use of your mind…


You can now use what you have inside…


And use this page and site as a highly effective guide…


All the best as you pursue your new and more optimistic view of your Wealth Building success… is of the optimistic opinion that what you desire has already been achieved, now go do it!


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