Many of you were surprised that there were tax law changes included in the Emergency Economic Stabilization Act of 2008 because most of the coverage has focused on what the Act is intended to do for the economy, specifically, helping the credit markets get back to lending.

One question I have been getting recently is…

How do you keep your wealth strategy moving forward when it’s more difficult to get that business loan or real estate loan?

If you have ever heard me speak about creating and building permanent wealth, then you know that I use leverage as a fundamental tool to build wealth. But, remember, that leverage comes in many forms. Loans are just one way to use leverage in a wealth strategy.

(more…)

Making money is an ancient art. Even before money was invented back in the 1500’s when banking was invented, people traded in value. So money essentially is a numerical representation of value. Before banking was invented, money was owned and controlled by the monarch. The royal mint produced coin made of gold which was weighed and equal in value to the gold it was made of. However, over hundreds of years, the people realized that this gold can be filed and shaved off. Shaving a little from each gold coin before using it in a transaction allowed them to melt down the shavings and use it illegally. The monarchies of all countries failed to find a solution to this dilemma and this went on for hundreds of years.

Gold was the first precious metal assigned by authority to represent value and it is this word “VALUE” I want you to keep your eye on. Just as today, we cannot eat a dollar bill or sleep under it to give us shelter, the royal gold coin could not be used to be eaten. So the gold coin and todays dollar bill do not have an intrinsic value on their own. You cannot ride it, sleep in it, eat it, or even take it with you. All money does is count value in a decimal numerical nature. So, lets dwell on this minor revelation.

(more…)

As you know, we have been experiencing one of the most challenging times in our country’s history.

During the past few months, we’ve encountered a housing bubble, credit crisis, a bear market in stocks, significant increase in unemployment rate, continuous increase in commodities such as food and energy prices and more.

As a result of these problems, the government has taken serious action to stabilize the country’s economic condition to avoid another “Great Depression.” According to National Bureau of Economic Research, the country is not yet officially experiencing a recession. Despite what the experts say, we should still prepare in advance for any possibility and take the appropriate steps to protect ourselves.

Remember, recessions come and go. Based on previous records, a recession may last anywhere between 8-16 months. At the same time, no other economic crisis within the last 50 years has been compared to the “Great Depression.” What does this mean for you and what should you do? First and foremost, do not worry and do panic. Not only will the economy eventually cycle back to a better condition, but you can still effectively prepare for what’s to come ahead.

(more…)

The business finance world is an area many businesses have to navigate in order to get the appropriate finance to grow their business or improve cash flow. It can be complicated understanding what type of finance is right for your business so here are some of the most common business finance methods explained.

Factoring

Factoring is a form of finance that takes into account value your business has in it’s invoices that are yet to be paid by your customers. Factoring allows your business to be loaned up to 90% of the value of your invoices as soon as they are issued so you don’t have to worry about waiting to be paid.

Factoring allows a business to give control of it’s sales ledger over to the Factoring company which will do your debt collection and help protect you from bad debt.

(more…)

People just like you are discovering the secret to using their house and mortgage as a tax haven.

As you read every word of this article, you will discover some of the incredible tax advantages of home ownership.

The government wants to encourage you to own your home. Therefore it allows a home owner to deduct certain costs you may incur from owning a house. In effect, the tax code allows you to reduce some of your out-of-pocket costs related to buying and owning your home.

Some of the cost of owning a home can turn into tax deductions. You can also profit from the sale of your home tax free as well as borrow, reaping tax-free funds.

Rarely do you experience a larger purchase than a home and this very dwelling remains under your ownership for an extended period of time. There are costs of home ownership that are tax deductible and there are costs that do no qualify for deductions on your tax return. Always consult an accountant for up-to-date information regarding any tax issues.

(more…)

Most school leavers don’t have a great deal of money, so they have to be careful what they spend. If you are heading off to university, you may be even more worried that you won’t have enough money to see you through. But there are ways and means of saving what you have – or at least making it go further. Read on for some financial advice.

The cost of accommodation is one of the biggest for all school leavers. The best financial advice on accommodation is if you are able to stay at home for a few years, then do so, even if you pay your parents a small sum to help cover costs and food. If your Uni is too far to travel to daily, then living on campus is usually cheaper than getting private accommodation. There are often houses around a university that are let to students on a share basis. You may have to share with up to five other people, but these are often work out a bit cheaper than leasing a whole flat to yourself. If you do get a private flat, see if you can share the space and costs with a friend.

(more…)

If we are saying “It’s never too early” instead of “It’s never too late”, we are talking about kids. Teaching core values, cultivating mannerisms and good habits are those activities that can be taught to kids from scratch. Similarly, money management. is a lesson that sooner taught to the kids, the better. With effectively managing every penny they have, they would inculcate a value for money, which in turn can be helpful for their future.

To make kids learn the value of money management, parents/ guardians can take up few activities like the following:-

• Parents can talk about money related activities in front of kids. They can also discuss family budgets, ascertaining that households are run with money, and that there is an equal need to save and spend money on a regular basis.
• Today money is often used in the form of cheque books and credit cards. While using credit cards, let your kids know what you are doing. Tell them about the ease credit cards and bank accounts offer, and their role in money management. You can also teach them the difference between debit cards and credit cards, so that they can make sound use of these money mediums.
• Also let your children organize, manage and save their pocket money themselves. They can be taught how to count money, how to use bank accounts, importance of savings bank account, how to draw cash through cheques, how to maintain a personal budget, etc. When you first begin to teach your kids about money management, chances are that they mess up with the budget.

(more…)

Finding lost bank accounts can not only result in money for the account owner, but you can make a few dollars in the process too. Unclaimed property locators are individuals who take on the task of reuniting folks with money that they’ve become separated from. In the case of unclaimed bank accounts your job is to match up dormant accounts with the rightful account holders. In the case of a deceased account holder, your goal is to find the next of kin or heir to the estate.

Bank accounts go unclaimed for a variety of reasons. Many parents decide to open up a savings account for their child when they’re small with the intention of gifting it to them when they enter adulthood. For whatever reason, many people simply lose track of those accounts. So they sit untouched for years. Eventually the bank hands those accounts over to the government where they’re kept until the owner comes along. An unclaimed property locator speeds up the process by finding lost bank accounts, matching them with the owner and then negotiating a fee to help with the claim process.

(more…)