วันจันทร์ที่ 25 สิงหาคม พ.ศ. 2551

Controversial Wealth Audit Reveals Over 90 Percent of Us Could End Up Working Forever...Are You One

Results from a new tool developed by UK based
firm, Lean Marketing, confirm a worrying trend.

When it comes to making money,
most of us simply don't have a clue.

The Wealth Audit asks 10 simple questions
to help you ascertain your financial position
and provides instant tips for improving things.

Since launching the tool on 29th July
the response has been tremendous.

Out of a total score of 100 the average
is just 46.9 which suggests people still
need to do quite a lot to be truly free.

The Survey Suggests:

* Almost 90% of Respondents Will Be In Trouble
When It Comes To Retirement If They Don't
Dramatically Change Their Earning, Spending
& Saving Habits.

* 85.6% of Responses By Women Over 40
Indicate That Debt & Lack of Investments
Make Them A Slave To Their Job Or Business

* Women Seem To Be More Interested In Sorting
Out The Problem Than Men However, With 61.5%
Of People Taking The Test Being Female

* Of the People Completing The Survey Almost All
Are In A Position Where Without Earnings
From Their Job They'd Lose Everything They Own

After almost a decade running her own business
Lean Marketing boss, Debbie Jenkins has been searching
for the key to being able to spend her own time as she wishes.

Debbie says, "I'm convinced it boils down to sorting
out your money and so I developed this simple
tool called The Wealth Audit to help people
understand where they are now and where
they're heading with more clarity."

"The test isn't about how much you earn,
but how well you use your money to provide
an income. Freedom comes when you can live
the life you want and pay your way
even if you decided not to work."

The Wealth Audit, while bringing the problem
to light only supports what's already happening.

10 Million people in the UK aren't
saving enough money for their retirement.

In fact 80% of these 10 million aren't
saving anything at all!

There's a pensions crisis looming and the
advice we get from experts is mixed and
often confusing.

So the only constant we can be sure of is that
if we don't take care of our own wealth now
our future isn't going to be too bright.

The Wealth Audit is a Free tool and
nobody gets to see the answers but you.
See how you compare at http://www.wealthaudit.com

"Dangerous" Debbie Jenkins is a marketer, author and
stand-up comedian who helps the owners of small expert
businesses get more success by doing and spending less.
http://www.debbiejenkins.com


[tags]Debbie Jenkins, Wealth Audit, finance, Free, tool,pensions,[/tags]

Concepts of Retirement Planning

Retirement planning is becoming more important than ever before beause of several powerful societal forces. People are living longer after retirement, with fewer defined benefit pension plans, the trend toward multiple job and even career changes, and rising health care costs. Added together this all makes planning for retirement more critical now than ever before.

Regardless of your age, where you work or your life situation, you should start planning for your retirement as soon as you can, immediately if possible. Retirement planning can be argueably more critical than saving for a childs college tuititon. They can borrow for college, you can't borrow for retirement expenses. By beginning to plan now, you can take steps toward the retirement income you want and possibly need.

Retirement planning involves identifying what you want and what you need. Then developing a plan to achieve them, acting on this plan, reviewing and revising your plan as the retirement years approach.

Ask yourself these questions:

1. When do I intend to retire?

2. When I retire, will I start a new part-time career?

3. How long after I retire do I think my money will need to last?

4. How much money will it take to support my household?

5. What do envision my lifestyle during retirement to be like? Days spent golfing, traveling the world? Staying home and puttering?

6. Where will I live when I retire?

When you know where you're going, it's time to figure out how to get there. Through retirement planning, you'll answer questions like this:

1. What do I need to do to take care of my health care needs during retirement years?

2. How much money do I need to save to meet my goals?

3. How should I invest my money to maximize my retirement savings?

4. In what way will my assets, liabilities, expenses and savings change during retirement?

The sooner you start to save and plan for your retirement years, the more prepared you will be. The power of compounding means that with early planning a small investment each year could potentially create a portfolio large enough to meet your retirement needs.

Roger Sorensen

America's Financial Guide can be found at ==>http://www.Slave2Work.com Subscribe to Money Basics via http://www.slave2work.com/ezine.html

Slave2Work.com - Are you ready for financial freedom?


[tags]retirement planning,financial planning,wealth building,retirement tips,retirement finances[/tags]

Christians and Money

Money: perhaps no other topic causes so much misunderstanding for Christians. One reason for this is many people mistakenly think of Jesus as condemning all wealth, including its pursuit.

Without a doubt, while riches can steal one’s heart from God like nothing else, Jesus was never against money or material possessions per se. He enjoyed eating and drinking to the point that some criticized Him as “a glutton and a winebibber” (Matthew 11:19). And in the story of the rich young man, Christ did not condemn this individual for his possessions, which apparently had not deterred him from being pious and keeping God’s commandments (Matthew 19:16-30).

Jesus’ overall attitude toward wealth involved a straightforward principle: when people trust money rather than God and when they fail to give back to God, they miss the mark. From Jesus’ perspective, money itself is not evil. Instead, as the Apostle Paul warned, “…the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows” (I Timothy 6:10). Jesus never claimed that rich people do not enter into the Kingdom of God. Instead, He warned that men who trust in money - who believe money, not God, will save them – are potentially jeopardizing their eternal salvation (Mark 10:24-25).

As well, the Gospels contain various reports of wealthy Christians who were good stewards of their material blessings. Joseph of Arimathea was wealthy enough to provide an excellent tomb in which to bury Jesus’ body (Matthew 27:57ญ60). Zacchaeus, the rich tax collector, was saved with all of his family in spite of his wealth (Luke 19:1ญ10). And the Pharisee Nicodemus, one of the chiefs and leaders of the people of Israel, was able to bring expensive aromatic oils to anoint Jesus’ body (John 19:39).

One of the best Biblical passages for understanding Jesus’ views on money is the story of Lazarus and the rich man (Luke 16:19ญ31). As the story goes, a beggar named Lazarus fed on the crumbs that fell from a rich man’s table. When the beggar died, he was carried by angels to heaven. When the rich man died, he ended up in hell and was tormented by its flames. Here the rich man was reminded that, in life, he had enjoyed goods and comfort, while Lazarus had not.

So why did the rich man in the story find himself in hell? There is no indication that this individual was evil, cruel, godless, or irreverent; he was simply rich. The moral of the story, then, is that many wealthy people are condemned, not because of their money, but because of their obsession with money. In Jesus’ own words: “Children, how hard it is for those who trust in riches to enter into the kingdom of God! It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God” (Mark 10:24-25). Excessive satiety, overabundance, ease, and self-reliance are dangerous for any person. But these are not the actual problem. It is out of the heart of humanity that evil comes (Matthew 15:19). Money and other externals are not evil; it is a person’s attitude toward these things that makes the difference.

The rich man’s mistake was not showing compassion to Lazarus. He lived only to satisfy his own physical appetites, and he enjoyed earthly goods without measure or consideration of others. On the other hand, Lazarus’ virtue was not his physical destitution. He received a heavenly reward because of his repentant attitude and spiritual wealth (Luke 16:29-31). The Apostle Paul put it this way: “Do not be deceived, God is not mocked; for whatever a man sows, that will he also reap. For he who sows to his flesh will of the flesh reap corruption, but he who sows to the Spirit will of the Spirit reap everlasting life” (Galatians 6:7ญ8). Thus, the rich man in this parable was punished for his lack of repentance and disinterest in spiritual matters. He trusted in his own wealth, as in an idol, and did not leave room in his life for God or for helping others.

Jesus’ attitude toward earthly riches is based on the principle of stewardship, or the joyful giving back to God from what He first gave. This principle is beautifully illustrated in Mark’s recounting of the poor widow (Mark 12:41-44). Jesus observed a poor widow donating “two mites” (i.e., the least valuable coinage of the day) into the Temple treasury. He then explained, “… this poor widow has put in more than all those who have given to the treasury” (Mark 12:43). The point here is that it is not the amount one gives that matters to God, but the attitude of the giver and the degree of personal sacrifice.

In conclusion, Jesus taught financial responsibility. In no uncertain terms, Christians are expected to be effective managers of their every blessing from God. Jesus warned all to guard against greed and to acknowledge that true life is judged not by our material possessions, but by our love for God and His children.

George D. Zgourides, M.D., Psy.D is a physician, clinical psychologist, and healthcare chaplain. He and his wife Christie are the authors of several books dealing with various health-related and self-help topics.


[tags]Christians, Christianity, spirituality, religion, money, wealth, finances, material possessions[/tags]

Child Millionaires

How would you like to make sure your kids will be millionaires when they retire?

A couple of years ago the UK Government introduced Stakeholder Pensions as a low cost retirement savings scheme for any one in the country. These were aimed at people with no job or no company scheme. The take up wasn’t great but the schemes remain.

One advantage of the Stakeholder Pension scheme is that anyone can open one and there is no age restriction. This means you can open one for your children.

The extra advantage is that any money that is put into the pension gets a tax rebate from the government.

This means that if you put ฃ78 in the pension scheme, the pension company can claim back another ฃ22 from the Inland Revenue because it’s assumed that tax was originally paid on the money invested. Over a year this would mean an extra 12 lots of ฃ22 making a top up of ฃ264 from the Government. You even get this if you are not a tax payer.

In any one year you can contribute up to ฃ3,600 (including the rebate from the Inland Revenue) so unless you’re a higher rate tax payer that would be ฃ2,808 a year (or ฃ234 a month) with the Inland Revenue topping up the additional ฃ792.

Now if you started putting this much into your son or daughter’s pension from birth until their 18th birthday, this is what it could turn into. If we use a growth rate of 8% (which is low compared to the long term historic rates of shares and property) then at 18 the pension fund would be worth ฃ144,684. If that fund was just left to grow at 8% with no more money being put in, it would grow to ฃ2,764,815 at age 55 and a staggering ฃ6,136,895 at age 65.

If you put in ฃ85 a month from birth to 18 then your son or daughter would have over ฃ1 million in their pension fund at age 55 and even if you only put in just over ฃ38 a month for those first 18 years the fund would grow to ฃ1,000,000 by the time they reached 65.

It may not be much but it’s a start.

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[tags]Financial, money, millionaire, finance, pension, stakeholder, retire[/tags]

Cash, Check, or Plastic What's Best for You

Which form of payment you should use for a purchase depends at least as much on your level of discipline as on your level of income—and don’t forget about security.

Use cash for small purchases, when you’re in a hurry, and if you won’t mind not having a record of the purchase in a bank or credit card statement. You have to feel comfortable carrying cash, too. Many people won’t for safety reasons—flashing a wad of bills in a store could make you a target in the parking lot. On the other hand, many people concerned about identity theft or those recovering from a bankruptcy choose to use cash exclusively.

Use a check if you need a record of the purchase for tax or business purposes, if you don’t want to carry around a bunch of cash, or if you don’t have a credit card because you don’t qualify for one. Of course, you’ll need to write a check to pay bills by mail, and they can come in handy if your grocery store will let you write a check for more than your purchase in order to get cash without going to the bank or ATM.

Use plastic only if you know yourself well enough to not let the balance build up. It’s convenient and fast to use a credit card, especially if you shop by phone, but you need to keep track of what you’re charging so it doesn’t get out of hand. It’s best to pay the full balance every month, for two important reasons: first, in order to build a good credit history (which is invaluable for the remainder of your natural life), and, second, so you’re not financing a lifestyle that you can’t really afford. If you’re concerned about security when shopping online, check to see if your credit card issuer offers virtual credit card numbers—these are card numbers generated at the time you’re ready to make an online purchase and are good only for that transaction. If anyone gets hold of that number, it won’t be valid for any other purchases.

So, take stock of your habits, your level of discipline, and how you feel about identity theft and online security, and you’ll be able to make the best choice for you.

Kathryn Marion is the President of Education for
RealityTM, a company dedicated to helping young
people Sidestep the School of Hard KnocksSM by
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[tags]personal finance, credit, spending, budgeting, identity theft, paying, discipline, cash, checks[/tags]

Calculating Business Moat

First of all, what is the definition of a business moat? A moat is something that hinders competitors to 'attack' a company's castle. In other words, it is a blockage that deters competitors from imitating a firm's business products. Obviously, investors need to invest in companies with a very wide moat. That way, a wide-moat company can have pricing power, as well as higher profits.

Surely, companies with recognizable brand name will have a moat of some kind, compared to generic brand. If customers are willing to pay a premium for your product, then your business do have a moat. That being said, how do we determine a company's moat for valuation purpose?

There is no definite ways of doing this. But, you can do a simple pricing research for the company in question. For example, if consumers are willing to pay $ 0.10 more for each bottle of Coke over the competition, this is then the result of Coke's business moat. Multiplying the number of bottles sold each year, will gives you the additional revenue due to the firm's business moat. As a matter of fact, this price difference goes straight to the firm's net income.

A lot of people like short-cut. So, perhaps you will like this short-cut way of evaluating business moat. Here is the way I see it. Companies with business moat will have an above average net profit margin. Recall that business moat will give a firm additional profit for each unit sold. This will result in a higher net profit margin. By definition, net profit margin is the percentage of profit with respect to net sales.

Let us look at applicable examples of a business moat. Almost everyone agrees that Wal-Mart Stores Inc. (WMT) has some kind of business moat. It is the biggest retailer in the world with sales totaling $ 250 Billion in a given year. Without further ado, let us find out what Walmart's net profit margin for year 2005. For 2005, Walmart reported total sales of $ 314.8 Billion. Net profit came in at $ 11.230 Billion. Therefore, Walmart has a net profit margin of 3.57%. Is this good? According to retailers.com, average large retail stores has a profit margin of 2% in 2000. From here, we can conclude that Walmart business moat contributes an additional 1.57% of sales or $ 4.94 Billion. Being able to convince your customers to pay $ 4.94 Billion more is no small feat. That, on itself, tells you about the scale of Walmart's business moat. It is no wonder that many Mom and Pop's stores has become victims of Walmart's success.

Please note that business moat do not always involve company's brand. A few other attributes that can produce moat are: patent, location, efficient inventory management and size.

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[tags]Finance, Stock, Investing, Annual Report[/tags]

Building Wealth Through Teamwork

There are several steps you can take to increase your chances of financial success. However, one you should really consider is building your financial success through teamwork.

Generally speaking, it’s very difficult to do everything yourself and be an expert on all topics. If you agree, then the notion of building wealth and making money through teamwork makes perfect sense. In fact, the notion of building a team can be applied several different ways.


  • Couples / Partners - A husband and wife, life partners, or even business partners working off the same financial plan can really accomplish more in a shorter period of time than an individual.
  • Trusted Advisors – Chances are, you are already surrounded by these experts but do not leverage their knowledge to accelerate your financial success. Examples of trusted advisors could be your lawyers, financial advisors, realtors, etc.
    • Mentors – Finding someone who has significant experience in your area can really help you get ahead. Why learn everything the hard way when you can have your own personal coach to help you get ahead faster?

  • Networking – This is one of my personal favorites and an area I wish I had developed sooner. It is also an area I personally have to work harder at since I am more introverted by nature.
  • Friends and Family – While this can be a rich source of experience and advice, I would tap into this area carefully. Not all of your family or friends will necessarily understand or support your financial goals. Also, your friends and family members may not necessarily have the right experience in the areas you are pursuing. If this does not apply to you, even better!
  • Your “Staff” – Have you ever seen a CEO of a Fortune 500 company run the entire show? In your personal life, your staff could be a gardener, the drycleaner, a housecleaner, a nanny or babysitter, automated bill payments, your CPA during tax season, etc. If you have help in the right areas, you can free up to work on achieving your financial plan.

A team can help you work smarter instead of having to work harder. In fact, once you have your team in place, you’ll see the difference almost immediately.

To your wealth and success!

Brion Lau is the Co-Founder of Financial Fitness Pro. The company is dedicated to promoting personal financial education and wealth accumulation.


[tags]wealth, finance, money, investing[/tags]

Budgeting Tips for Young Couples

The honeymoon is over! How times have changed from those glory years when you and your spouse-to-be were footloose and fancy free. You were dating, having fun, planning your dream wedding, the vacation on some exotic island and then living happily ever after.

Now, you’ve settled into the routines of life: work, paying the ever-increasing bills, and perhaps you have been blessed with a child (or two). The priorities have certainly changed! And, so has the financial picture. Your planning horizon has shifted from month-to-month to building a long-term future for your family.

What I am describing can be a very large burden on young families. This was a very difficult time for my wife and me, but with almost twenty years of experience under our belts, I now feel equipped to offer you some advice.

1) Share The Budget Burden – Budgeting decisions shouldn’t be made in a vacuum! Both husband and wife must set up a monthly budget together. If one person is not involved in these important lifestyle decisions, there is bound to be bitterness and anxiety. I have found that, in most marriages, the husband and wife will have opposite habits which tend to balance each other out. In other words, one may squeeze the money so tight that George Washington would cry while the other has a hole in their pocket! It is usually a healthy thing to meet in the middle somewhere.

2) Pay Yourself First – Nearly all couples have a checking account where the paychecks get deposited. All bills are paid from this account using check, check card or even online. As long as you stay above zero until the next payday, you’re OK. Right? WRONG! Unexpected big bills will come up and you need to have some cash reserves. What happens when the water heater breaks or you need the transmission fixed?
The best way to manage this is to have a separate bank or investment account set up. Write a check to this separate account on each payday or at least once a month. Stay disciplined to this program! Treat it like a payment to any other bill collector. Then, you will have money available to pay cash for those inevitable surprises and you will not have to use the evil credit card. This leads me to my next piece of advice…

3) Credit Cards: NO! - While I believe in using debt to buy a house, I do not endorse the use of credit for most other purposes. If you can’t pay off those bills on a monthly basis, don’t charge it! Credit card debt will kill your long-term financing, will create a bigger and bigger financial burden, and will put more pressure on your marriage relationship.
To illustrate this, let’s take a simple example. Let’s say you decide to “loosen the belts” a little and charge a big screen TV and take a nice vacation. The $5,000 bill doesn’t seem very big and besides all your friends are doing it. After you get back from the sunny beach, you start writing monthly $200 checks to your credit card company.

You didn’t realize it would take 32 months to completely pay for those two purchases. Your credit card company is happy because, with your 18% interest rate, they will make about $1,400 in interest. That’s money that could have been earning interest in your investment account.
It could get worse. What if, during month 16 of your repayment plan, your car breaks down and you are facing some major repairs. Since you don’t have money in the bank, you need to pay the $2,500 bill with your credit card! Now, you are in roughly the same position you were when you started paying off the TV and vacation 16 months ago!
So, plain in simple: If you can’t pay it off each month, don’t charge it!

4) Start an On-line Business – Sometimes, managing your expenses isn’t good enough. In today’s day of outsourcing and tightening corporate budgets, some creativity may be necessary. You could get a second job outside the home, but this will eventually take its toll on family life. I would recommend researching various internet business options.
As with most journeys, the hardest part is taking that first step. You should start your research in various on-line business forums, web sites and discussion groups. You will soon find that there are many reputable on-line resources available to help get your business started.

Dave Keegan has been married to his wife, Dawn, for 17 years. They have two teenage children. Dave works full-time as a systems analyst for a large corporation and has quality ideas for helping people get started in internet marketing. For more information, visit: http://www.dkeeganonline.com


[tags]finances, couples, marriage, budget, business, on-line[/tags]

3 Ways to Curb a Money Spending Problem

Nobody likes to talk about it, but a lot of people have a serious problem with their money. They spend more than they make. Use these three steps to stop your money spending problem before it gets you into too much trouble!

Symptoms of a money spending problem:

  1. You feel guilty when you spend money - even if it’s on legitimate purchases.
  2. You lie to your spouse about how much you’ve spent.
  3. You have increasing amounts of credit card (consumer) debt.
  4. You don’t know how much money you’ve spent on clothes, food, entertainment, etc.

If you’re experiencing any one or a combination of those symptoms listed above, you need to do yourself (and your wallet) a favor and implement these three ways to curb your money spending problem.

1. Talk about it

If you’re married, you need to talk about it with your spouse. If you aren’t married, talk about it with a good friend and/or confidant. When you openly talk about your money problem with someone you trust, you will feel better. You’ll be able to transfer a bit of the burden from your shoulders.

It can be especially hard to go to a spouse to talk about money problems if you’ve been hiding things from them. You really must though! You will need to sincerely apologize for your actions and also express a true desire to get things right. Give your spouse time to forgive you - but patiently expect them to do so.

2. Write it down

Now, you need to write down every single purchase you make from today until forever. I discussed how writing down purchases will help you spend less money in another article. I’ll just briefly go over it here again.

When you have a money spending problem, the gist of it is that you don’t make a conscious, mental connection between what you take in (income) and what goes out (expenses). You tend to get caught up in the moment of the purchase, be it from peer pressure or the thrill of a great “sale” you might see. Usually you experience some buyer’s remorse, but that can be quickly rationalized.

When you write down everything you spend you become accountable to yourself. It is almost magical what happens - you spend less money. This will not solve your problem with over-spending money completely, but it will put you well on your way.

It is vital that you write down everything. If you don’t want to have to write it down, then don’t spend it.

Also, just because you possibly use plastic for purchases does not mean it’s already being “recorded” for you. That’s not the point of writing down your purchases. The bank does a good enough job of tracking transactions. You want to make a mental accountability connection when you spend money, and that can only happen when you’ve made the special effort to write it down.

3. Plan to spend

Number three deals mainly with possible guilt you feel when you spend money. It’s quite possible for people to feel guilty buying milk, eggs, or paying the electricity! This should not be so! As a matter of fact, you shouldn’t feel guilty for any single purchase you make. The best way to enjoy guilt-free spending is to plan to spend.

Using some type of personal budgeting system will go a long way in helping you in the planning process of your finances. If you are married, it is vital that you plan what you will spend with your spouse. It must be a combined effort done by both of you, where purchases are agreed upon before they are made.

You will not be able to plan every expenditure you make. That’s just the way life is. However, once you have written down what you spend, you’ll begin to get a pretty good idea of what you need to plan for. Sure, emergencies come up (that don’t merit using your emergency fund) and you’ll overspend what you originally planned. You just need to remind yourself that you’re doing the best you can and that life goes on.

A money spending problem can be serious. It can destroy marriages, cause bankruptcy, and seriously impair your ability to live the way you really want to live. If you have a problem spending money, implement these three steps to get started in the right direction.

Jesse Mecham is a personal budgeting coach, creator of a unique and powerful personal budgeting system, husband, and father.

For more of his writing, you can check out the You Need A Budget Blog.


[tags]money, spending, problem, management, save, saving, personal, finance[/tags]

3 Lessons To Learn from Bill Gates and Warren Buffett

When Warren Buffett announced that he would give 85% of his wealth away, with the bulk of it going to the Bill and Melinda Gates Foundation, it allows us to learn three clear lessons:

Lesson #1: Great wealth can create great good. Gates' foundation is already recognized with treating millions of children in Africa with vaccines they would have never otherwise had. Most agree countless lives have already been saved. That kind of good will only now increase.

Lesson #2: It is perfectly OK to give to others beyond our immediate family. Buffett made it clear in his announcement that while his family certainly will not be wanting for anything he didn’t feel a need to give it all to them. Many families fight for every penny of a possible inheritance meaning that often charities their parents supported never see a penny. That’s too bad. If a church, hospital, college or other cause is important to you now, provide for them in your estate planning as well as your family. This is a way to add great meaning and purpose to your own life and to your life’s work.

Lesson #3: If you work hard at what you love and succeed, there is no reason to feel guilty about success. There was no indication of guilt in the eyes of Bill Gates, Melinda Gates or Warren Buffett. Many people may argue with their business decisions over the years but it’s difficult to argue with their current decision to be charitable. The tremendous wealth these people have built over the years will now be given back to millions of people they will never know.

These are only three of the lessons that all of us can learn from the Gates’ example and that of Warren Buffett.

Scott Hove is "The Entrepreneurial Pastor." He takes the guilt out of success.

His latest book (in progress) is titled: "How To Make Money Without Feeling Like You're Going to Hell".

To learn more about him and how to have him speak to your business or organization visit: http://www.ScottHove.com

Visit his blog at: http://www.EntrepreneurialPastor.com


[tags]wealth-building, money, make money, finance, personal finance, wealth, financial advice, tip, tips[/tags]