Financial Literacy

Integrity - The most valuable business commodity?

Hello,

A situation occurred recently which got me thinking how much personal integrity affects the level of business success.

Integrity means "wholeness". Now, I cannot think of anything more dubious than dealing with someone who is not "whole". If someone is not whole, you never get the entire offering. There is always something missing; There is always something held back.

Having integrity means what you deliver is the entire deal, the complete package. In fact, having true integrity would mean going above and beyond that. I believe that "Going the extra mile" has the highest integrity, as this is what would delight you if practiced by another.

Holding back and "measuring out" what is given in a product or service offering has little integrity and can leave a very bad taste. I often feel like this if I attempt to buy for a retailer who has used some "special offer" to entice me to buy, only to discover that there are all kinds of "conditions" connected to realizing the offer. 

"Say what you do and do what you say" is the watch phrase that come to mind. If followed to the letter, this completely ensures personal integrity.

Ready to become truly "whole"? - Go for it!

Have an awesome week.

Malcolm

How She Really Does It

Hello,

This week I am simply posting a link to a great website put together by Koren Motekaitis, who at 21 decided  she was going to be financially independent. At the time she was a swim coach working two jobs, doing volunteer coaching and finishing up her university degree.

Ignoring all who said it was not possible, including her future husband, she worked diligently increasing her financial literacy and building her wealth.

Now with a weekly radio show steamed live on the internet, where Koren interviews inspirational guests, she has grown to truly achieve her dream.

Do check out her website: http://howshereallydoesit.com

To your continued success,

Malcolm

 

"Stack" your way out of debt!

Hello,

If you are interested in reducing your debt load but are having difficulty juggling several conflicting payments, the technique of “debt stacking” may be just what you need.

Debt stacking is not a new idea, but is potentially very powerful. It works like this:

Say you currently have five payments to make and have already decided to completely eradicate the debt connected to them. For debt stacking to work, there are two simple pre-cursors.

1) You must not increase any of the debt amounts.2) You must always make the minimum payment on every debt every month.

Let’s outline some example payments:

a)      Store card payment - $100

b)      Credit card payment - $220

c)      Student loans - $250

d)      Car loan - $350

e)      Mortgage - $1400

With me so far?

Now, you take a little some of your disposable income, say $100, and add this to the payment for the store card. This makes the store card payment $200 per month. If you can afford more on a consistent basis, pay more. The more you pay the quicker all your debts will vanish.

Once the store card has been paid off, you add the payment amount to the credit card payment, making it $420.

When the store card balance is zero, you add the payment amount to the student loan payment, a total of $670

Again, when the student loan balance is zero, you do the same thing to the car loan ($1020).

When only the mortgage remains, the payment will then be $2420. The mortgage will reduce at a very accelerated rate with that payment being made.

Even if you have no extra money to apply to the first debt, the principle of debt stacking will still work, it will just take a little longer..

As you can see, this idea is simple but potentially very powerful. So powerful, in fact, that several companies offer products to help manage the process. One of company that just introduced a very attractive debt stacking package is Primerica (www.my.primerica.com). it is well worth checking it out if you are at all interested in learning how debt stacking may work for you.

Have a great week

Malcolm

Processing the Positive

Hello,

How many times when something does not go as well as we intended do we concentrated on what went  wrong and how it could have been avoided?

This is a very usual reaction and the "normal" thing to do.

However, it very definitely puts one at the effect of any area and situation. It also has the added effect of making the problem seem much bigger than it actually is. Not a very positive outcome.

What about taking the completely opposite approach?

Consider this. What would happen if one looked at what parts went well and how they could be improved? Would that approach not put one at cause rather than at effect? From that more powerful position it is far easier to go forward with a positive attitude!

By simply asking "what went right?" one immediately puts themself in control and from that position are in a much better place to take the necessary steps to create an overall optimum outcome.

I asked this very same three word question in an email reply to a friend today who told me lots of things had been going wrong for them in the past week. The person replied that "those three words" had completely transformed their mood.

On that, I rest my case! 

Have a great week

Malcolm

 

How can mobile home loans help you?

Mobile homes or manufactured homes are gaining popularity with every passing day and whether you are investing in a brick and mortar house or a factory made house, it is important for you to attend to details as investing in a house is often a lifetime investment. If you are planning to take out a mobile home loan, your credit rating is one of the factors that will be taken into account prior to approving a loan. Whether a loan will be extended to you or not depends on your repayment capacity.

With the help of mobile home loans you can buy a manufactured home or refinance it. They can also be availed for developing the plot of land on which the mobile home rests or for developing the plot of land as well as the home on the plot. However, in order to take out the loan the mobile has to be your primary residence.

As far as finding the right lender is concerned, you can shop around for the same online as well as offline. Mobile home loans usually attract fixed rate of interest. The loan term for mobile home loan ranges between 15 years and 25 years. The term of the loan is also determined by the purpose for which the loan is being taken out. Whether it is for the single section of the home, multiple sections or simply developing the plot of land determines the loan term.

It is important to abide by the norms of National Manufactured Home Construction and Safety Standards when you are planning to buy a mobile home. The lender approving the mobile home loan should also be licensed and the deal should not violate the regulations of the National Manufactured Home Construction and Safety Standard. As a rule, the manufacturer is required to extend warranty for a year.

Since you will be required to make payments for the entire term of the loan, it is important that you have enough financial backup. Your income should be adequate so that you don’t fall behind on payments during the course of the loan term. Make sure you select a site for the mobile home that meets required standards of National Manufactured Home Construction and Safety Standard and also has proper provision of water supply and waste disposal.

By Shelly

Truly Living Inside What You Earn

Hello,

I know what you are thinking - "I don't need to hear all these arguments about sticking to a budget again; enough already". I promise this is not just another "don't spend more than you earn" dissertations!

Well, it does have something to do with budgeting, but it may be in the direction and area that not many give much thought to.

How old is your washing machine? Your range? Your furnace? The roof? Outside paintwork? Your mattress? What did you spend on annual maintenance over the last 5 years? OK, OK, I know, you would need to work all this out. This is exactly the point. Needing to work all this out means may not in full control of your long term financial commitments. All these items are a potential expense that will occur in time, and if you do not plan for them, they will catch you unawares.

I believe everyone should have this information built into their financial plan. It is also important to consider all these items when considering buying a home or upgrading. Even putting on a deck or doing a "makeover" may have long term financial implications that extend well past actually paying for the construction and finishing.

I suggest you make a list of all the items you own that require maintenance and estimate the cost over the long term, taking ito account as many aspects you can. You can then amortize the yearly and monthly costs and add them to your budget. The result may surprise you!

Have a great week

Malcolm

Learning by doing

Hello,

I purchased a copy of the Cashflow 101 game several years ago played it extensively for a long period. That was until I got very upset with my own performance in a game and became very reluctant to play it at all.

Last Saturday my wife and I got out the game again for the first time in a long while. We spent a couple of very enjoyable hours playing. I had almost forgotten just how exciting it can be to play; it really gets exciting with between 4 and 6 players as there is so much going on.

One thing that really came to me during the game is that I had previously thought that each other player was an adversary and I needed to crush them financially to win. As I played this time, I realized that this attitude was the total reason I disliked my performance. I do not like "crushing" people, I like cooperating with them. So I started to play the game in a very collaborative fashion. I became genuinely interested in my wife doing well at the game. Well, once I had made the mental switch to cooperation, I started to play better and in fact got onto the "fast track" quicker than I have ever done before. Once I was there, I spent time helping my wife play.

The amazing thing is that I completely lost interest in beating others at the game, playing and learning is far more important to me. Now I realize that true financial success can only come from cooperation, not from opposition. From playing a simple game, I have a much better understanding about how to collaborate to make the best financial outcomes for all concerned.

The proof of the pudding is always in the eating. Since we played, several interesting investment opportunies have presented themselves to us. Amazing how a playing simple game at the correct time can improve your life!

Have an awesome week

Malcolm

Conspriacy of the Rich

Hello there,

Last week I read an excellent new book published on-line by Robert Kiyosaki, the author of "Rich Dad, Poor Dad".

The book is called "Conspiracy of the Rich" and is defiantly a must read.

It takes apart the reasons for the current economic downturn and what the normal person can do to lessen it's effect. Even the most financially stable individuals would do well to understand the forces at work.

I urge you to obtain and read a copy at your own convenience. The information in it will certainly open your eyes and give you some areas to think about.

Have an awesome week!

Malcolm

Putting income above personal honor

Hello,

Have you ever put income above personal honor and integrity?

To be honest, I have done this on several occasions. For each occasion I had a very good reason to do it. Using this "good reason" I was able to convince myself I was right. However, each time I came to regret the decision and my actions.

The most recent instance was rushing to complete a job so I could be paid and not being diligent enough to ensure the quality of work was up to par. Needless to say, payment for the work is now going to be delayed and extra effort required to correct what I should have taken more care over.

I have finally leaned my lesson. It is never OK to hurry something through, even if you really need the income from the job. The real issue here is that those who rush work are always on the side of chasing income. By not applying the appropriate attention to detail, the income potential of the work will always be below par. This is because the exchange is basically out - wanting something for nothing is never OK.

So, how do I intend to reverse this trend?

By going the extra mile and putting extra care into my work from this point forward, I am stacking the deck in my favor and will eventually strike gold with the endeavor. It really comes down to the level of honesty and personal integrity I communicate with my actions. Stay tuned for the results. 

Have an awesome week

Malcolm

Short term vs. Long term

Hello,

How much of your focus do you have on your financial long term?

I must say I have been very tempted to change my own focus over the recent past. I believe that the downturn in many sectors of the economy has encourage many others to do the same. Because the long term seems so unpredictable, it can be very difficult to maintain a consistent long term view.

One thing I do know is - If you are looking for certainty of failure, then not planning will deliver that in abundance. "If you fail to plan, you plan to fail".

In planning to succeed, consistency and persistence are your best friend. Having a plan, however unambitious, and sticking to it provides a degree of certainty. Although you cannot control what others do, putting action into what you can affect definitely puts you way ahead of the game. If you are similar to me, you believe that luck is simply positioning yourself to be in the best possible place at the right time. From there you have the best chance of tipping the balance of luck in your favor.

So, set you plans and be consistent and persistent in following them. If your get a wide ball, just re-plan and move forward. Excuses create no forward progress, they just create more excuses.

I'd love to hear your thoughts on this post and how you are meeting your financial long term.

Have an great week,

Malcolm