7 Great Money Tips To Lead You To Financial Freedom

Regardless of where we are in life we can all learn something about money and how to better prepare for our future. Especially when we see that the national average is $10,000 in credit card debt and that savings and preparedness is dropping. This article can put you back on track to a more fulfilling and financially free life.

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7 Great Money Tips To Lead You To Financial Freedom Copyright 2006 David Maillie

Financial freedom is a challenge regardless of where we are in life, we can all learn something about money and how to better prepare for our future. Especially when we see that the national average is $10,000 in credit card debt and that savings and preparedness are dropping. This article can put you back on track to a more fulfilling and financially free life.

1) Automate your investments for financial freedom.

Experience has proven that if we have to make a conscious effort every time we need to invest we will start with good intentions and then miserably fail a few months later. If you can automate your savings, whether by using your employers 401k, a Sep (self-employment plan), or direct deductions from your account you will reach financial freedom. The rule here is if you don’t see it, you won’t realize it and you won’t miss it. Some of these deductions will reduce your taxable income and save you further on taxes (see your CPA and tax advisor for more info on this). A good rule of thumb is to set aside 10% of your income.

2) Real estate, financial freedom.

If you haven’t already, buy a house. Renting will only make your landlord (hint – house owner) rich. Regardless of what the immediate market does real estate is one of the best long-term investments you can make. It also has many advantages, including deductions for mortgage interest. Real estate will always go up. People will always need a roof over their heads. Just watch HGTV, real estate has made many millionaires and is a key factor in almost every tape and book series on gaining wealth. Stick with the standard 30 years fixed mortgage and you will reach financial freedom.

3) Medical and life insurance.

You need to have them if you think you don’t just ask anyone that didn’t have it when something unexpected happened. If you love your family, they are a must. But, on that note, don’t get taken. Buy term life. 20 years will give good term coverage and if you follow all of these tips you won’t need anything beyond that. Whole life only makes your agent rich and really never builds any value for the huge costs involved. Term life can be purchased cheaply over the internet at great savings. For medical insurance, in most states, Blue Cross and Blue Shield offer great plans that are a fraction of Cobra or employer plans. If you have an adequate employer plan, by all means, use it. Stick with big names like Blue Cross as they will be around for years.

4) Don’t ever buy new cars if you want financial freedom

It is a fact that new cars lose 25-30% of their value the moment you drive it off the lot. Let someone else pay for that depreciation and get a two or three-year-old car or truck. With the latest technological advances, cars can easily go 150,000 miles and above. A two or three-year-old vehicle with 30,000 miles on it will save you not only in initial cost, but also on your insurance, and taxes. Also, do your homework before buying your car. Get your credit score and see what loans you qualify for. This can easily be done right off the internet and will save you big at your local dealer (never take a dealer’s word for your credit and rate – they will hold 1-3 points on rate and that can mean thousands in extra interest over the term of the loan).

5) Get out of debt.

I put the investment tips above this as you need to pay yourself first. If you are overwhelmed with debt, numerous non-for-profit agencies will renegotiate your debt and terms on your behalf. Work out a plan to get the high-interest debt paid off. Be wiser with your purchases – do you really need that 60-inch flat-screen tv? A BMW you cannot afford? Etc… Cut up all cards, but 1 (for emergencies you should have 1 credit card) and no store cards. The whole purpose behind store cards is to entice you to buy more and pay more. My grandfather said it best – “if you can’t afford it, don’t buy it.” The only good loan to have is a mortgage.

6) Never burn bridges.

If you happen to leave your current employ, leave on good terms. Find a replacement if time permits. This will put you in a good light with your former management and can result in a good reference, another job, a callback for more money, etc… Never leave on bad terms. It’s just not good Kharma. Also, it won’t hurt to take former business associates and customers to lunch regularly. This will keep you in tune with the industry, give you many additional contacts afford you future favors – just think of the lobbyists on Capitol Hill, you don’t think they spend all that money on their politicians for nothing, do you? Don’t be afraid to ask for a favor every once in a while. Kharma is the big rule here -when you help others you will inadvertently help yourself.

7) Give back.

Once you’ve made it it is only fair that you help others less fortunate than yourself. Regardless of your beliefs when you donate time and money helping others you will inadvertently help yourself. You will feel great. Also, the cardinal rule of karma is that when you give, you will get many more times what you give back. Take the time to help by volunteering your time. Even if it is one hour a week, you will help improve someone else’s life. Volunteer, it will make you a better person. If you all enjoy these, show me by sharing with a friend and sign up below!

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Real Estate for dummies – The best way to become a millionaire?

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Investing

Now people who invest in real estate whether it’s flipping, buying and holding, buying and renting, or wholesaling real estate know that these all are excellent strategies. The problem is most people don’t know how to get started and don’t know what to look for. When it comes to being an investor you must know specific things about the house in order to use it to your advantage.

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Flipping

Flipping real estate is when you buy a house for a low-end price usually through negotiating. Then you take that house and fix the problems which causes you to pour your own money into it. Now I’m not saying this is a problem but it is definitely something I don’t think you should just start out with as an amateur. If you have that kind of capital and are willing to either pay someone to do it or get down and dirty by yourself.

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Buying and Holding

Now this one is self-explanatory but is also something that can get very complicated. So lets say for example you stumble by a lot of money or you saved it up and now you want to use that to make money. This is probably the best strategy for you, so lets say you own a house whether you paid it off cash or been paying it off for years the house is usually going to be worth more than what you bought it for ten years down the road due to inflation. This means that you can sell the house you bought for lets say 100,000 for 150,000 without having to even touching the house. Now imagine if with in those ten years you fixed it up and added new things to the house to boost the value that means you can sell it for as high as 200,000 depending on how much you put into it.

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Wholesaling

Now whole sailing gets a little complicated, but don’t get overwhelmed this allows you to make money real estate without a penny in your pocket. How this works in the most simplest form, you get a motivated seller who really needs to sell the house whether it’s because they need to move for their job, or someone passed and they need to get rid of the house. Once you found that person you will have to use negotiating skills to talk the person down the price of the house that way you can maximize your ROI. You will then get an attorney or someone who is able to write you a contract. This contract will give you partial ownership of the house and will give you a certain amount of business days to sell the house for cash. Once this is signed you find someone in the real estate business or someone who has a lot of capital and you pitch them this house you have partial ownership to. Then once you network with the right person and they are willing to buy the house you then sell the house for a higher price you purchased it for and keep the difference. Now I know you’re wondering “why wouldn’t I just get a real estate agent?” the problem with selling a house with an agent is that they want to sell the house for the most money now I know this sounds good but its to slow and takes to long in comparison to a wholesaler that if they have the right network could sell it with in a week.

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How can this help you?

Starting out new

Now if you have never done real estate but was interested in getting started I have a free webinar available. This is full of information and will teach you everything you need to know about real estate that way you can retire early. Imagine if you could finally live the life you always wanted where you can do what ever you wanted to do anytime you wanted to do it. What if I told you this webinar can teach you exactly how to do that.

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experienced

Now if you’re in the real estate business already then I have a program that can help you at the bottom of this page its a bird dog program that regardless of what you do in real estate this will help you. It allows you to selectively search through thousands of properties and pick the ones you need. All that you do is set up the preference in the search section and allows you too search through the MLS and get you the houses you’re looking for.

http://paykstrt.com/2965/10003