Personal Blog of Forest Marie

Based from recent action in the financial markets, all is well in the world once again. Hurray! Financial and economic order has been restored. Stocks are rallying. The dollar has regained its strength.

Well, not really.

Before you get all giddy and rush out and trade your precious silver and gold bullion for depreciating paper dollars, shrug the overwhelming brightness of the bills and examine the real facts behind the sudden hype. Here are 5 reasons why you should invest in gold and silver.

Reason #1: The Weak Economy Is NOT Getting Any Stronger

Retail sales over the past few months were depressing. Wal-Mart’s 3% same-store sales growth came in way below expectations. But yes, Costco’s results were pleasingly up to 10%. But, when you dig into the small details, you will discover that the reason behind that growth was the increase in gasoline sales. Ignore those figures and the sales were up for only 6%, less than consensus estimates.

Reason #2: The Employment Scene Is Depressing

Jobless claims rose to more than half a million (455,000). That is from 488,000 the week before. Those figures got up as job cuts by U.S. employers increased last month. The U.S. has now lost jobs for seven straight months and the unemployment rate is at a four-year high.

Reason #3: Financial Markets Are Still Shaky

Most mortgage giants missed earnings estimates by a wide margin, reported huge losses and trimmed down their dividends. Some of these mortgage tycoons even have a negative equity position. Meaning, shareholders would get nothing if these firms do not pay down all of its debts and sell its assets.

Reason #4: The Housing Market Has NOT Calmed

Mortgage delinquencies are getting sever. Mortgages that were issued during the first half of 2007 now have a delinquency rate of .91%. The delinquency rate for the year before that was just 0.33%.

Reason #5: Inflation Is Coming – And It May Be Hyper

The economic monster named inflation is alive and well. The consumer price index (CPI) is up to 5% through June. That is already the largest increase ever recorded in history since 1991. But that statistic is even far worse that it appears.

During the times of Pres. Reagan and Clinton, the way that rising inflation was measure was changed to lower the official rate. So if you calculate the same CPI in the same way that it was calculated in 1980, you would have to add 7% to whatever the published figure is. That would mean that the real and factual rate of inflation is a running 12%.

Remember that throughout history we have seen paper money (aka “fiat currency” or “greenbacks”) lose its value. But these precious metals – silver and gold – have survived war, inflation, deflation, recession and depression. Silver and gold bullion are truly your safest investment if you realize their true value.

I bet you’re itching to tell me about your excitement in this investment opportunity you probably haven’t thought of, so leave a comment cause I’d like to share with you some more information…

Financial Intelligence

There’s no doubt about it. Money is something that runs our lives. Whether we like it or not, money is a vital piece to our lives. If we do not have any money, we struggle; if we have an abundance of it, we can live our lives vicariously. That’s how I like to you. How about you?

Of course, if you’re in that money bind, you’re probably not living life vicariously, which is unfortunate. But there is some hope and a some solid money management tips you can apply in your life to avoid the bind.

Tip # 1 – Pay Yourself First!

This is one where most people struggle. Instead of paying themselves first, most people pay off bills and spend it on the expenses of life. My advice to you is STOP that and get a savings account (yes, I know the interest rate are horrible) and start depositing a certain % of a percentage on every check you ever get in there. If you have to start with 1% or .5% or .1%, DO IT ANYWAY.

Develop the habit NOW, NOT later. I hear so many people say “when I get money I’ll save and invest more.” This is a silly chicken and the egg argument. Get over it and, again, develop the habit NOW … NOT later.

And by the way, it’s the habit here that’s most important, not the amount of money you make from that tiny interest rates in a savings account. Over time, you’ll get you a nice emergency fund set up and then you can start investing more aggressively on a consistent basis in business, real estate, the stock market, etc.

But you must master the habit first: habits + time = results!

Tip # 2 – Pay Those Dreaded Bills On Time!

The first bill you pay late will lead to the next bill, which in turn leads to the next bill. It’s a vicious cycle that will kick your ass if you let it. It is easier than you might expect to get so far behind that you have nothing to do but curl into a ball and bite your nails. Do whatever you can to pay these bills on time. Don’t get to the point where you start throwing bills in the corner of your desk hoping they’ll just magically disappear.

Of course if you figure out how to do that, don’t forget to contact me!

Tip 3 – Read Your Bank Statements Regularly! (Boring, Right?)

Unfortunately, there are times when people will make charges onto your account without you realizing it. Identity fraud is something we have to be familiar with in our society. In addition to unknown charges, it will also help you become familiar with what you are making purchases of. This can help you cut back on anything that is hurting your account.

Outside of identity charges, you have these real clever waitresses and waiters who will add an extra dollar, maybe two, to their tip without you knowing. And, chances are, you probably will NOT find out unless you check your statements regularly. I’ve busted quite a few of them myself, and it makes for a fun experience when I deliver the call to the owner of the establishment.

Free food on the house anyone?

Tip 4 – Learn To Love Your Credit Report!

Part of unknown charges and paying attention to your account is checking your credit report monthly. Having good credit is essential to the finance aspect of your life. You want to keep your credit as clean as possible. But if you do have bad credit, you will be able to work towards repairing it before it is too late if you check your credit report monthly.

Check out http://www.equifax.com to learn more.

Tip 5 – Shop Around For The Best Insurance Rates And Coverage!

Insurance is not always cheap and it’s not attractive to buy, but you have to have it for the most part. If you take the time to actually research, you will be amazed at how much insurance companies vary from one another. I recently changed my automobile insurance and saved $30 a month. Hey, that’s not anything spectacular by itself, but it’s just one of those habits that add up when you do a lot of them.

Remember, habits + time = results!

Tip 6 – Live On A Budget!

This does not mean live cheaply. It just means your game plan is bulletproof and shows a lot of discipline on your part. One of the worst things people can do is spend money whenever they want without knowing where it is going. Having a monthly budget will allow you to better manage your money and avoid falling into money problems.

So start budgeting! And, you can check out 5 steps to effective personal budgeting to help you with this.

Financial Intelligence education, finance, money

Making money is one thing, but if you are not careful with your money you will end up in trouble. And maybe fall on your ass hard. Setting up a plan to keep track of your budget can help you manage the money you are making with your business. Here are five steps to effective personal budgeting.

Basic Works Best

When first starting out your budget, you want to keep it as simple as possible. Creating a complex budget will only deter you from wanting to pursue it. Start by putting together a basic list of your monthly income and expenses. Stick to the easily identifiable expenses such as rent, car insurance, and utilities.

Monthly Income

In order to be effective with your personal budgeting, you have to be exact with your monthly income. You want to make sure you include any money you have coming in. This can be work paychecks, interest income, alimony, child support and any other money you have coming in.

Expenses

Now that you know how much money you are making, it is time to determine how much you are spending. This is certainly the troublesome part to your budgeting as you will have far more expenses than your income. What is even worse is you may even have hidden expenses you do not even realize exist. You want to group your expenses so it is easy to keep track of and organize.

Speaking of expenses, Flexo wants to know if you can eliminate $500 worth of expenses monthly?

Check this article out and see how you can cut the fat on some expenses you may not need.

Establish Estimates For Monthly Expenses

You want to establish estimates for any of the expenses that you face on a monthly basis. Things like food, gas, and utilities can be included in this. If you find one category is rather large, you can break it down into sub-categories. An example of this would be breaking utilities down to gas, electricity, water and so on.

Track Actual Expenses

The last step to effective personal budgeting is keeping track of your actual expenses incurred during the month and then grouping them into different categories. It is easy to keep track of rent and utilities, but it is the cash expenses and daily expenses that are difficult to keep track of. However, it is essential for your budget you keep track of everything possible.

Personal budgeting can do a lot for your business and your life. In order to have a hold on your money and understand what is coming and going, take the time to set up an in-depth budget to follow. This will allow you to see how much money you really have coming in and where exactly your money is going.

I’d like to note here that you can get some very useful budgeting worksheets at http://www.betterbudgeting.com/budgetformsfree.htm. The Monthly “Budgeting” Worksheet is quite useful.

So start your budget today and watch your cash flow increase over time!

Financial Intelligence Add new tag, budgeting, finance, money

There is no question there is a plethora of benefits to starting your own business. This is precisely why the Internet is being flooded with entrepreneurs looking to start their own business. You’d have to be nuts to not own a home based business these days! Absolutely nuts in fact!

One of the many benefits to owning a small business is the numerous tax deductions available. And they are numerous! Here are six home business tax deductions for you to take advantage of. I’ve used all of these and had an extremely nice return this year! No complaints at all.

Here we go…

1. Office

It all starts with your office, which is not an automatic IRS audit if you follow the rules. Your office must be in a separate room and not the corner of a living room. In order to claim your office as a home business tax deduction, you want to find the square foot percentage of your office in relation to the rest of your home. You can then use this for deductions on rent, electricity, insurance, internet service and much more.

2. Supplies

Anything that you can think of that you use for your business can be deducted. 100 percent of the supplies you use for office use is deductible. Make sure to keep all of your receipts for your records.

3. Furniture

Believe it or not, furniture has been added to the list of home business tax deductions allowed. You can deduct 100 percent of all office furniture without having to depreciate it over several years.

4. Computer equipment

As you could have probably guessed, you can deduct 100 percent of computer equipment as well without having to depreciate it. This is where new computer purchase or computer equipment can come in handy. Don’t be afraid to branch out just because you cannot afford it. Take advantage of the tax breaks and get something nice for the business.

5. Business vehicle

If you do have a home business that requires the use of a vehicle, you can claim the actual mileage you use for the business. It does require accurate and extensive record-keeping in order to take advantage of this home business tax deduction. As of 2008, the mileage rate is 50.5 cents a mile for business use.

6. Telephone

Running a home business will certainly require the use of a telephone. In order to take advantage of this, you want to use either a cell phone or install a second line to keep records. This is by far the safest and easiest way to keep track of things without getting your family line mixed up.

There are several home business tax deductions that you can take advantage of as an entrepreneur. These are just a few of the numerous deductions you can benefit from as a home business owner.

Financial Intelligence, General Network Marketing home business

Well, it’s the 5th of July, one day after Independence Day. Yesterday, while celebrating the United State’s independence, I thought about how I can help you by explaining what it takes to achieve true financial independence.

So let’s start with a real-world and easy-to-understand definition of wealth. If you look in some financial literature, they give some somewhat complicated definitions of wealth. And many people think wealth is related to how much money someone makes, which is very shallow in my opinion.

The definition that makes the most sense and is the most realistic is inspired by Robert Kiyosaki’s book Rich Dad, Poor Dad, and here it is:

Wealth is how many days, months or years you can repeatedly pay off your monthly expenses without working a job.

For example, let’s say you require $2000 every month to pay off all of your expenses and have $6000 in your checking and savings accounts. You leave your job and you have no passive or residual income coming in. In this scenario, your wealth is 3 months.

Now let’s say you require $2000 every month but you have a passive income of $2000 every month. What is your wealth? In this scenario, your wealth is infinite.

Imagine that, being wealthy and only making $24k a year.

Your passive income income is covering all of your expenses EVERY month, so you don’t have to work a job unless you want to. When this happens, you get to leave the “rat race.” The “rat race” is simply depending on a job to cover our expenses and living pay check to pay check.

So wealth is simply how long you can repeatedly pay off your expenses without working a job.

Now how do you create wealth? Well, the formula is VERY simple, but it’s rarely taught, so most people don’t know it or ever encounter it, which is very sad. But since you’re here, I’m going to expose it to you.

But before I give it to you, let me give you some easy-to-follow definitions of assets and liabilities:

An asset is anything that creates money for you repeatedly.

A liability is anything that takes money away from you repeatedly.

In other words, your house is typically a liability to YOU (you repeatedly pay a mortgage every month) and an asset to your BANKER (you repeatedly pay your banker interest every month).

So, now let’s talk about how to create wealth so you can become financially independent one day. Here’s the formula the rich use:

Wealth Creation Formula = Buy Assets

That’s it? Yes! Keep it simple!

And if you are wondering, your Network and Internet Marketing businesses can be liabilities INITIALLY if they are not making you any money. However, I recommend you invest in yourself heavily and learn as much as you can about Network and Internet Marketing because over time, they can become your best asset.

If you ask me for a time frame, I recommend you give yourself at least 5 years to learn Network and Internet Marketing.

Wow, Forest, that’s a lot of time!

Is it really? Most people spend 4-5 years in college just to get a job and stay the “rat race” their entire lives. Why not work on your personal philosophy and give yourself and your businesses 4-5 years to create true wealth and achieve financial independence?

If you like the information provided in this blog and you want to learn more and improve your financial and business intelligence, do yourself a *HUGE* favor and head over to your local bookstore and pick up a copy of Robert Kiyosaki’s Rich Dad, Poor Dad or you can purchase it from Amazon below:

Additionally, I would strongly recommend you head over to Rich Dad’s Communities and see if you can find a Cash Flow 101 club in your local area.

Cash Flow 101 is a board game that teaches you how to get out of the rat race and improve your Financial IQ. To see a quick demo of the game, check out this link:

Cash Flow 101 Demo.

I host a Cash Flow Club myself and if you are in the Baton Rouge, LA area, contact me for the times and meeting location.

If you don’t see one in your area, be the leader, buy the game and start one. It’s one of the best mastermind activities you can do with your organization in your Network and Internet Marketing businesses and a great way to attract entrepreneurs or those wishing to become entrepreneurs.

Remember to buy assets so you can have unlimited wealth and become financially independent.

Financial Intelligence Business, finanical intelligence, wealth