Eliminating debt is the focus of more and more people these days. Perhaps it is due to the recession and the lack of personal wealth. Bad debt results from financing things (using your credit card to buy things) that can be consumed such as dining out, clothes, auto repairs, and even groceries. Too much bad debt can create an unhealthy financial situation. When you calculate the amount of total debt you are carrying including your mortgage, car note(s) credit cards, medical expenses, and others, the total can be quite staggering. Now calculate how much bad debt you are carrying in order to understand your true financial situation.
If you are serious about eliminating your debt, follow the steps outlined below:
1. Determine why you want to eliminate your debt.
Understanding why you want to eliminate your debt is critical. The reasons you want to eliminate debt will be a constant reminder to you when things get tough that it is worth the effort.
Do you want to eliminate your debt in order to save for retirement? According to an article in MSN entitled “Retirement crisis: From bad to worse”, the Baby Boomers and the post-boomer generations are facing a retirement crisis. Many Baby Boomers have tapped into their retirement accounts in order to pay their bills as a result of the high unemployment rate and the recession.
Do you want to eliminate your debt in order to establish an emergency fund? Has life ever thrown you a curve ball? Do you think it is possible that you will be thrown another curve ball? The point I’m trying to make here is expect the unexpected. An emergency fund will allow you to sustain your standard of living should you lose your income source. An emergency fund of three to six months is recommended. You can calculate the amount you need for an emergency fund by multiplying your monthly expenses by six. The emergency fund should be accessible but only in the event a sudden loss of income occurs. Having an emergency fund provides a sense of security and may help reduce your stress levels.
Do you want to eliminate your debt in order to establish or contribute more to your children’s college fund? Do you realize that over the past 35 years, the cost of college has mushroomed by 1000%? At the same time, the importance of higher education has increased by the same amount. College degrees and in many cases, graduate degrees are required in order to obtain employment in the United States.
Do you want to eliminate your debt in order to spend more time with you hobbies, buy an RV, or take a vacation? Do you want to eliminate your debt in order to support the church or charitable organizations? Do you want to eliminate your debt in order to start a business and live the life of your dreams. Do you envision the day when you can devote all of your time and energy to your own business?
2. Put together a plan.
Having determined the reasons for eliminating your debt, it is now time to put together a plan. Your plan should include a set of goals with associated timelines for eliminating your debt. For example, one goal would be to eliminate all credit card debt within one year from today. Or perhaps, eliminate all medical bills within six months from today. Write down your goals along with the respective deadlines. Setting goals and writing them down are crucial to your success because you simply cannot go somewhere if you do not know where you want to go.
When creating a plan to eliminate credit card debt, many financial experts advise that you eliminate the credit card debt with the highest interest rate first then proceed to the next highest. For example, let’s say you have four credit cards. The interest rates are 23%, 19%, 16%, and 12%. Their approach would be to pay additional money to the credit card company that is charging you 23% and once that balance is reduced to zero, pay additional money to the credit card company that is charging you 19% and pay off that credit card’s debt and so forth.
You want to take the balance into consideration when developing a plan to eliminate credit card debt. It may be wiser to pay off the credit card with the lowest balance then put that credit card in cold storage. Pay the credit card off with the next lowest balance using the additional money that is now available and so forth.
Whichever strategy you choose, remember to write down your goal and timeline for each credit card. The same process can be used to eliminate medical bills, car notes, and even your mortgage if you wish.
Eliminating your unsecured debt with the help of debt consolidating or debt settlement companies will allow you to eliminate your debt in a shorter period of time but your credit will be adversely affected. Debt consolidating companies actually work on behalf of the credit card companies and negotiate to lower interest rates with them. Your debt remains the same. Only the interest rate changes. Your payments may increase due to the shortened time frame negotiated for payoff.
Debt settlement companies will negotiate to actually reduce your debt owed to each creditor. In some cases, your debt can be reduced as much as 75%. You can eliminate your debt quicker can pay less money to eliminate your debt with debt settlement rather than debt consolidating companies but remember your credit will be adversely affected by using the services of debt settlement companies.
3. Execute your plan.
Now that you have your goals and timelines as well as your plan, it’s time to put it into action. Take action immediately and don’t procrastinate. “To think too long about doing a thing often becomes its undoing.” ~Eva Young
It’s important to imagine a debt-free life. Motivate yourself by visualizing how life would be without the debt you wish to eliminate and remind yourself of the reasons you wish to eliminate your debt.
Celebrate each achievement and reward yourself (without adding to your debt of course). Take pride in the fact that you are on the road to a better, less stressful, and happier life.
Never give up on yourself or your dreams.
Monday, August 23, 2010
Auto Pilot Income – How to Make Thousands of Dollars Working From Home
Many people today are looking for ways to make money from home in order to supplement their income. They are looking for ways to make money without putting in a 40-hour work week. Fortunately for them, there are plenty of what I call “Auto Pilot Income” opportunities. These opportunities will allow you to make several hundreds or thousands of dollars monthly from your home without requiring you to make a full time effort.
The key elements of the Auto Pilot Income opportunities are advertising, fulfillment, need, market size, and urgency. Mastering each of these elements will allow you to become very successful and achieve the financial goals you have created for yourself. A brief discussion of each element follows.
Advertising – People need to know you have something to sell them. Connecting the buyer and seller is what advertising is all about. Putting your message in front of the prospect and allowing them to evaluate it and take action. There are many ways to advertise in this age. One of the most popular methods is online and more precisely pay per click advertising. With this method, the advertiser (that’s you) only pays the advertising fee when someone clicks on the advertisement. If your campaign is setup correctly, it’s a great way to ensure that the people you are trying to target are seeing your ad. There is a bit of a trial and error period for novices but there’s plenty of resources to steer you in the right direction as well.
Word of mouth advertising is also still popular as evident by the number of network marketing systems in place. Network marketing is a great way to inform people about you and your product or service. It’s a low-cost method that allows for a somewhat personal touch. Given enough time and with enough people, you can communicate your message to the masses in a very effective manner.
Print advertising is still alive and well but not as popular as in previous times. People still read newspapers and magazines but the majority of your prospects will be online these days. You should attempt to negotiate a hard bargain when it comes to print advertising. Be sure you get the facts on how many people receive the periodical and the frequency it goes to print. Also ensure that your ad is picture perfect before it goes to print because it can’t be updated once it has been printed.
Fulfillment – There was a time when a business owner received an order, packaged the product, and shipped the order to the customer. Now, with the help of technology, the business owner can be thousands of miles from the fulfillment center. Many products that are shipped come from warehouses in which the business owner rarely visits. An order can be placed online then sent to the fulfillment center. The fulfillment center staff receive the order, package the product, and ship it to the customer. The business owner is not tied to the warehouse and in many cases, is unaware of the fulfilled order until he or she reviews the production reports. There are many companies that excel in fulfilling orders and will gladly take the responsibility off of your hands, for a small fee of course.
There are also many companies that provide services that once were the sole obligation of the business owner. These companies can learn about your business, train their representatives in the most efficient manners to provide the quality services the business owner once provided. Outsourcing has become a very popular strategy for large companies but the small business owner is learning how to profit from the strategy as well.
Need – Regardless of the type of advertising you select and whether you fulfill the product or service personally or outsource those tasks, it is imperative that your business addresses and solves a need in the market place. Without a real need, it is going to be difficult to convince someone that your imitation alligator laptop carrying case is a real bargain – at any price!
Identifying a need is critical and should be the first step when starting a new business or launching a new product or service. What is it that people are willing to pay their hard-earned money for these days? What is going on in the world around you? Where are people going? What are people doing? What will people be doing? Ah ha! Being able to predict the future is necessary if you want to be successful with identifying a need. Before you go digging through your attic for the crystal ball that you’re now seeking, let me assure you that there are plenty of market research companies that have put a lot of time and effort into predicting the future for you. There are countless marketing reports available at a price that will help you in your search for a need.
There are also numerous resources that will help you gather your own market data. The point is that a need must be uncovered before money or energy is spent on advertising. One such need that has been covered in depth recently by the media is retirement and more specifically, retirement for baby boomers. Many baby boomers are quite concerned about their ability to afford retirement. Many surveys have shown that people from this group are delaying retirement and working longer because they have not saved sufficiently for their future.
Market Size – Size does matter in this case. Your market size will determine how much money is available for your product or service. Do you want to be a big fish in a little pond or a little fish in a big pond? The market size should be large enough to accommodate you and future competitors that Carpe Diem also. Is your market large enough locally or will you need to launch a national campaign in order to reach your financial targets?
Taking the baby boomer market example which, by the way, consists of approximately 77 million people, one can see numerous opportunities or needs within one group. 77 million people is a really big market. As a matter of fact, many of the large companies in the world today have been marketing to this group for a long time. They see the importance of reaching this target audience because of the size of it as well as other reasons.
Urgency – This is what is used to get them off of the fence. Retailers use one-day only sales in order for customers to pull out their wallets. “This opportunity won’t last long” is common among advertisers stressing the deadline for a particular promotion. Without urgency, your prospects will delay their decision to purchase until they have enough reason to purchase (if any). Urgency must be created so your prospects will take appropriate action which is to buy what you’re selling.
Many online business owners utilize limited-time promotions or limited inventory in some cases in order to create a sense of urgency. The prospect needs to feel compelled to take the next step if you are going to be successful.
Do you think the baby boomers facing retirement feel a sense of urgency? Are they running out of time and options? How serious would it be if they ran out of money? Do you get the picture?
Becoming successful with the advertising, fulfillment, need, market size, and urgency elements will ensure your financial success.
The key elements of the Auto Pilot Income opportunities are advertising, fulfillment, need, market size, and urgency. Mastering each of these elements will allow you to become very successful and achieve the financial goals you have created for yourself. A brief discussion of each element follows.
Advertising – People need to know you have something to sell them. Connecting the buyer and seller is what advertising is all about. Putting your message in front of the prospect and allowing them to evaluate it and take action. There are many ways to advertise in this age. One of the most popular methods is online and more precisely pay per click advertising. With this method, the advertiser (that’s you) only pays the advertising fee when someone clicks on the advertisement. If your campaign is setup correctly, it’s a great way to ensure that the people you are trying to target are seeing your ad. There is a bit of a trial and error period for novices but there’s plenty of resources to steer you in the right direction as well.
Word of mouth advertising is also still popular as evident by the number of network marketing systems in place. Network marketing is a great way to inform people about you and your product or service. It’s a low-cost method that allows for a somewhat personal touch. Given enough time and with enough people, you can communicate your message to the masses in a very effective manner.
Print advertising is still alive and well but not as popular as in previous times. People still read newspapers and magazines but the majority of your prospects will be online these days. You should attempt to negotiate a hard bargain when it comes to print advertising. Be sure you get the facts on how many people receive the periodical and the frequency it goes to print. Also ensure that your ad is picture perfect before it goes to print because it can’t be updated once it has been printed.
Fulfillment – There was a time when a business owner received an order, packaged the product, and shipped the order to the customer. Now, with the help of technology, the business owner can be thousands of miles from the fulfillment center. Many products that are shipped come from warehouses in which the business owner rarely visits. An order can be placed online then sent to the fulfillment center. The fulfillment center staff receive the order, package the product, and ship it to the customer. The business owner is not tied to the warehouse and in many cases, is unaware of the fulfilled order until he or she reviews the production reports. There are many companies that excel in fulfilling orders and will gladly take the responsibility off of your hands, for a small fee of course.
There are also many companies that provide services that once were the sole obligation of the business owner. These companies can learn about your business, train their representatives in the most efficient manners to provide the quality services the business owner once provided. Outsourcing has become a very popular strategy for large companies but the small business owner is learning how to profit from the strategy as well.
Need – Regardless of the type of advertising you select and whether you fulfill the product or service personally or outsource those tasks, it is imperative that your business addresses and solves a need in the market place. Without a real need, it is going to be difficult to convince someone that your imitation alligator laptop carrying case is a real bargain – at any price!
Identifying a need is critical and should be the first step when starting a new business or launching a new product or service. What is it that people are willing to pay their hard-earned money for these days? What is going on in the world around you? Where are people going? What are people doing? What will people be doing? Ah ha! Being able to predict the future is necessary if you want to be successful with identifying a need. Before you go digging through your attic for the crystal ball that you’re now seeking, let me assure you that there are plenty of market research companies that have put a lot of time and effort into predicting the future for you. There are countless marketing reports available at a price that will help you in your search for a need.
There are also numerous resources that will help you gather your own market data. The point is that a need must be uncovered before money or energy is spent on advertising. One such need that has been covered in depth recently by the media is retirement and more specifically, retirement for baby boomers. Many baby boomers are quite concerned about their ability to afford retirement. Many surveys have shown that people from this group are delaying retirement and working longer because they have not saved sufficiently for their future.
Market Size – Size does matter in this case. Your market size will determine how much money is available for your product or service. Do you want to be a big fish in a little pond or a little fish in a big pond? The market size should be large enough to accommodate you and future competitors that Carpe Diem also. Is your market large enough locally or will you need to launch a national campaign in order to reach your financial targets?
Taking the baby boomer market example which, by the way, consists of approximately 77 million people, one can see numerous opportunities or needs within one group. 77 million people is a really big market. As a matter of fact, many of the large companies in the world today have been marketing to this group for a long time. They see the importance of reaching this target audience because of the size of it as well as other reasons.
Urgency – This is what is used to get them off of the fence. Retailers use one-day only sales in order for customers to pull out their wallets. “This opportunity won’t last long” is common among advertisers stressing the deadline for a particular promotion. Without urgency, your prospects will delay their decision to purchase until they have enough reason to purchase (if any). Urgency must be created so your prospects will take appropriate action which is to buy what you’re selling.
Many online business owners utilize limited-time promotions or limited inventory in some cases in order to create a sense of urgency. The prospect needs to feel compelled to take the next step if you are going to be successful.
Do you think the baby boomers facing retirement feel a sense of urgency? Are they running out of time and options? How serious would it be if they ran out of money? Do you get the picture?
Becoming successful with the advertising, fulfillment, need, market size, and urgency elements will ensure your financial success.
Find the Best Small Business to Start Up Immediately...- And on a Shoestring Budget
Are you searching for the best small business to start on a shoestring? The key is choosing profitable small business ideas. Today more than ever, starting a small business of your own is within reach. No longer do budding entrepreneurs have to have big cash on hand to realize their dreams of small business ownership.
In fact, you can successfully operate and grow a small business right from your own home. There are literally hundreds of small business ideas well suited to “work at home” entrepreneurs.
Since you’re visiting this blog, more than likely you have been putting some serious thought into having a small business of your own. So why not consider small business ideas which offer you maximum freedom and flexibility, such as work at home opportunities?
Take a minute to think about all of the people you know who have been talking about starting a business for years. Perhaps some are your family, friends or even co-workers.
So, what does it take for you to find the best small business to start right now — and with limited start up money? You’re only 3 steps away from finding the answer.
Step One: Take a look at the facts
Fact #1: According to a recent study of entrepreneurship by the Kauffman Foundation, about 30% of American adults are starting up new businesses each month. That’s about 495,000 new businesses every month, and just under 6 million new businesses each year.
Fact #2: According to the U.S. Small Business Administration, 56% of these new businesses will not make it beyond 4 years, with one third closing their doors in as little as 2 years! This means your new business has a 44% chance of survival beyond 5 years and a 31% chance of making it beyond 7 years.
Fact #3: The leading cause of start up failure is lack of operating capital — or, simply stated, MONEY!
Step Two: Analyze the facts
These facts seem to indicate that not having adequate business start up funding and a steady supply of operating capital leads to business failure, and ultimately shut down. This is where finding the best small business to start can have a huge impact on success or failure.
Step Three: Draw Your Conclusions
Reducing small business start up costs and operating expenses will give a new business a better chance of survival. Therefore, being successful in your new business venture requires conserving your financial resources by choosing small business ideas with low start up costs and the potential for high profitability.
So what is the best small business to start?
Answer: A Home Business. Choose profitable small business ideas which will make it possible for you to work at home. It’s cost effective, convenient and it can give you the freedom and flexibility to spend more time with family and friends.
When many people think of “work at home” business opportunities, they often think of stuffing envelopes or assembling parts. However, there are many more creative, fun and profitable “work at home” small business ideas for you to discover right here.
When it comes to starting up a home business, one of the biggest questions we’ve often been asked is “which home business opportunity is the easiest, quickest, most profitable and requires little money to start.
Answer? Discovering the best small business to start usually comes from making an honest assessment of your skills, talents, abilities and work experience.
However, this is not a hard and fast rule. What if you’ve trained all of your life for a profession you absolutely hate, and all of your education and work experience relates to a career that you don’t intend to continue pursuing? That’s where passion comes into play.
3 Considerations For Finding the Best Small Business to Start…
#1. Find Your Passion:
Do what you love and love what you do.
#2. Bootstrap:
Keep start up and operating costs low by operating a home business.
#3. Learn to Earn:
Get the skills and training you need to successfully start, manage and
grow your small business.
The best small business to start begins with an idea that you’re passionate about, even if you have yet to get the training and skills required to make it a success. You see, if you love what you do, you’ll enjoy every minute of learning how to do it professionally.
Even if you are high on ambition and have the education and experience to run a business, none of that matters if you don’t have the confidence of first determining the small business idea that’s right for you.
Operating a home business is the first step to starting up on a shoestring. The second step is getting a good education in bootstrapping. This is not as hard as you may think. There are many great resources available to help you along.
Find the “work at home” business idea that’s right for you!
To Your Start Up Success!
Consider joining NASBP for additional information and guidance.
In fact, you can successfully operate and grow a small business right from your own home. There are literally hundreds of small business ideas well suited to “work at home” entrepreneurs.
Since you’re visiting this blog, more than likely you have been putting some serious thought into having a small business of your own. So why not consider small business ideas which offer you maximum freedom and flexibility, such as work at home opportunities?
Take a minute to think about all of the people you know who have been talking about starting a business for years. Perhaps some are your family, friends or even co-workers.
So, what does it take for you to find the best small business to start right now — and with limited start up money? You’re only 3 steps away from finding the answer.
Step One: Take a look at the facts
Fact #1: According to a recent study of entrepreneurship by the Kauffman Foundation, about 30% of American adults are starting up new businesses each month. That’s about 495,000 new businesses every month, and just under 6 million new businesses each year.
Fact #2: According to the U.S. Small Business Administration, 56% of these new businesses will not make it beyond 4 years, with one third closing their doors in as little as 2 years! This means your new business has a 44% chance of survival beyond 5 years and a 31% chance of making it beyond 7 years.
Fact #3: The leading cause of start up failure is lack of operating capital — or, simply stated, MONEY!
Step Two: Analyze the facts
These facts seem to indicate that not having adequate business start up funding and a steady supply of operating capital leads to business failure, and ultimately shut down. This is where finding the best small business to start can have a huge impact on success or failure.
Step Three: Draw Your Conclusions
Reducing small business start up costs and operating expenses will give a new business a better chance of survival. Therefore, being successful in your new business venture requires conserving your financial resources by choosing small business ideas with low start up costs and the potential for high profitability.
So what is the best small business to start?
Answer: A Home Business. Choose profitable small business ideas which will make it possible for you to work at home. It’s cost effective, convenient and it can give you the freedom and flexibility to spend more time with family and friends.
When many people think of “work at home” business opportunities, they often think of stuffing envelopes or assembling parts. However, there are many more creative, fun and profitable “work at home” small business ideas for you to discover right here.
When it comes to starting up a home business, one of the biggest questions we’ve often been asked is “which home business opportunity is the easiest, quickest, most profitable and requires little money to start.
Answer? Discovering the best small business to start usually comes from making an honest assessment of your skills, talents, abilities and work experience.
However, this is not a hard and fast rule. What if you’ve trained all of your life for a profession you absolutely hate, and all of your education and work experience relates to a career that you don’t intend to continue pursuing? That’s where passion comes into play.
3 Considerations For Finding the Best Small Business to Start…
#1. Find Your Passion:
Do what you love and love what you do.
#2. Bootstrap:
Keep start up and operating costs low by operating a home business.
#3. Learn to Earn:
Get the skills and training you need to successfully start, manage and
grow your small business.
The best small business to start begins with an idea that you’re passionate about, even if you have yet to get the training and skills required to make it a success. You see, if you love what you do, you’ll enjoy every minute of learning how to do it professionally.
Even if you are high on ambition and have the education and experience to run a business, none of that matters if you don’t have the confidence of first determining the small business idea that’s right for you.
Operating a home business is the first step to starting up on a shoestring. The second step is getting a good education in bootstrapping. This is not as hard as you may think. There are many great resources available to help you along.
Find the “work at home” business idea that’s right for you!
To Your Start Up Success!
Consider joining NASBP for additional information and guidance.
How to Prosper in a Recession
Remember when Social Security and Medicare were the main subjects of conversation. In 2005, the Social Security trustees admitted that Social Security would be insolvent by 2017 due to the number of people reaching retirement age versus the number of people paying into the program. More benefits will be paid out that will be paid in by taxes. The program is expected to go broke by 2041 according to the trustees. These headlines are no longer getting our attention thanks to the financial storm we are in currently. Experts agree that we are in a recession. By definition, a recession is two consecutive quarters of negative growth in the economy. The effects include escalating foreclosure, bankruptcy, and unemployment rates. In October 2008, the U.S. Department of Labor announced the unemployment rate was 6.5% which is the highest rate in 5 years. People worry about their incomes and spend less, causing the economy to shrink more. If there is too much of a downward spiral, it becomes a depression. It’s not surprising that 77 million baby boomers are nervous about retirement. This article is intended to provide hope to anyone who has been a financial victim of the financial crisis that many have compared to a financial hurricane Katrina. Begin by organizing your debt. Your debt could be dragging you down more than you realize during a recession than any other time. There are several ways to seriously handle your debt:
Create a budget and get control over your spending IMMEDIATELY!
Put yourself in a situation where you have as much cash as possible. Put a handle on the amount of money you’re spending. Reduce unnecessary expenditures. Put off the around the world cruise until the economy is in positive territory and there are no threats to your income. Create an account at your bank and use it as an emergency fund if you don’t already have one. The goal is to have at least one thousand dollars in the account as soon as possible. It is to be used in cases of emergencies not to replace income. An emergency fund will help reduce the stress levels as well as cover for the unexpected events in life that would otherwise put you further into debt. Attack debt aggressively! There are several options to getting out of debt:
Eliminate debt with highest interest rates.
Many financial planners advise that you begin paying off your credit cards with the highest interest rates first. Their reasoning makes sense but you may want to begin an aggressive campaign to pay off the credit card with the lowest balance first then making extra payments on the credit cards with the highest interest rates. This will provide you with a sense of accomplishment as well as additional money to put towards the remaining credit card payments. Consolidate your unsecured debt. You probably have heard of non-profit companies offering debt consolidation services. What these companies do is negotiate with the credit card companies on your behalf to lower the interest rates. Your total monthly payment will remain the same or it may increase if the debt is to be paid off in a shorter period of time than the normal time period. For example, let’s say you have four credit cards and owe $12,000 in total credit card debt. And let’s assume that it will take you eleven years to pay off the balance by making the minimum payments. A debt consolidation company will negotiate lower interest rates with the credit card companies in order for you to pay off the balance in less time. This may cause your monthly payment to increase and it will also negatively affect your credit report because this type of service is considered to be third party intervention which appears on your credit report as a bankruptcy.
Settle your unsecured debt.
The services of a debt-settlement company are much different than the services of a debt consolidation company. Debt-settlement companies negotiate the debt balances with your credit card companies on your behalf. Using the example above, your debt could be lowered by as much as 80% as a result of the negotiations. You would be making payments to pay off a $2,400 debt balance rather than making payments on your original $12,000 debt balance. Your monthly payments would be greatly reduced and you could be out of debt within three years rather than eleven. Your credit report will be adversely affected. Your creditors will report late payments or account settled to the credit bureaus. These remarks will lower your credit score and make borrowing for large ticket items difficult.
File bankruptcy.
Bankruptcy is designed to help people who are insolvent and cannot pay their debts. Bankruptcy requirements and laws have become more stringent in the last several years for people wishing to apply. Keep in mind that bankruptcy is not a get out of debt free pass. There are attorney fees and, depending on the type of bankruptcy you are awarded, you may need to continue making payments to your creditors. Obviously bankruptcy reflects negatively on your credit report and can remain on your credit report for up to ten years and can prevent you from obtaining credit, insurance, an apartment rental, and even employment. This choice should be your last resort.
Make more money!
That’s right. Even in a recession there are opportunities to make more money than you were making before the recession. There are many industries that are unaffected by recessions and there are industries that thrive during recessions. Let’s examine the current conditions. Interest rates are extremely low. Ordinarily this would be the ideal time to borrow money or refinance your auto or home. However money is tight. The banks are reluctant to lend money out of fear that the money will not be repaid. With interest rates this low, investors are having difficulty finding investment vehicles to grow their money. The stock market traditionally has provided double-digit returns. Do you think anyone in their right mind is willing to invest heavily in the market today especially after experiencing a 52% decline in just one year? Foreclosures are at record levels and people are struggling to pay their mortgages on time. Even more are having difficulty paying their property taxes.
People are concerned about their jobs. Major corporations have announced significant layoffs which will ripple through the economy. Right time and right place. Taking these conditions into perspective, it would appear that people who could provide information to investors with options to grow their money aggressively (from 8% to 50% annually) with little or no risk, would be in high demand. People who could show others how to begin a business allowing them to replace their income would be in high demand as well because home-based businesses offer tremendous tax benefits as well as income opportunities. Prospering during a recession will require you to organize your personal finances in a way that will free up money. Use this money to create an emergency fund if you don’t already have one. Use the remaining money to invest in high-return, low risk investments and to start a tax-reducing business. This business will help investors find opportunities to grow their money and help others concerned about their jobs to reduce taxes and replace their income with a home business as well. When you help enough people, you will prosper and spiral up and out of this recession with enough momentum to put you on the track of becoming extremely wealthy.
Create a budget and get control over your spending IMMEDIATELY!
Put yourself in a situation where you have as much cash as possible. Put a handle on the amount of money you’re spending. Reduce unnecessary expenditures. Put off the around the world cruise until the economy is in positive territory and there are no threats to your income. Create an account at your bank and use it as an emergency fund if you don’t already have one. The goal is to have at least one thousand dollars in the account as soon as possible. It is to be used in cases of emergencies not to replace income. An emergency fund will help reduce the stress levels as well as cover for the unexpected events in life that would otherwise put you further into debt. Attack debt aggressively! There are several options to getting out of debt:
Eliminate debt with highest interest rates.
Many financial planners advise that you begin paying off your credit cards with the highest interest rates first. Their reasoning makes sense but you may want to begin an aggressive campaign to pay off the credit card with the lowest balance first then making extra payments on the credit cards with the highest interest rates. This will provide you with a sense of accomplishment as well as additional money to put towards the remaining credit card payments. Consolidate your unsecured debt. You probably have heard of non-profit companies offering debt consolidation services. What these companies do is negotiate with the credit card companies on your behalf to lower the interest rates. Your total monthly payment will remain the same or it may increase if the debt is to be paid off in a shorter period of time than the normal time period. For example, let’s say you have four credit cards and owe $12,000 in total credit card debt. And let’s assume that it will take you eleven years to pay off the balance by making the minimum payments. A debt consolidation company will negotiate lower interest rates with the credit card companies in order for you to pay off the balance in less time. This may cause your monthly payment to increase and it will also negatively affect your credit report because this type of service is considered to be third party intervention which appears on your credit report as a bankruptcy.
Settle your unsecured debt.
The services of a debt-settlement company are much different than the services of a debt consolidation company. Debt-settlement companies negotiate the debt balances with your credit card companies on your behalf. Using the example above, your debt could be lowered by as much as 80% as a result of the negotiations. You would be making payments to pay off a $2,400 debt balance rather than making payments on your original $12,000 debt balance. Your monthly payments would be greatly reduced and you could be out of debt within three years rather than eleven. Your credit report will be adversely affected. Your creditors will report late payments or account settled to the credit bureaus. These remarks will lower your credit score and make borrowing for large ticket items difficult.
File bankruptcy.
Bankruptcy is designed to help people who are insolvent and cannot pay their debts. Bankruptcy requirements and laws have become more stringent in the last several years for people wishing to apply. Keep in mind that bankruptcy is not a get out of debt free pass. There are attorney fees and, depending on the type of bankruptcy you are awarded, you may need to continue making payments to your creditors. Obviously bankruptcy reflects negatively on your credit report and can remain on your credit report for up to ten years and can prevent you from obtaining credit, insurance, an apartment rental, and even employment. This choice should be your last resort.
Make more money!
That’s right. Even in a recession there are opportunities to make more money than you were making before the recession. There are many industries that are unaffected by recessions and there are industries that thrive during recessions. Let’s examine the current conditions. Interest rates are extremely low. Ordinarily this would be the ideal time to borrow money or refinance your auto or home. However money is tight. The banks are reluctant to lend money out of fear that the money will not be repaid. With interest rates this low, investors are having difficulty finding investment vehicles to grow their money. The stock market traditionally has provided double-digit returns. Do you think anyone in their right mind is willing to invest heavily in the market today especially after experiencing a 52% decline in just one year? Foreclosures are at record levels and people are struggling to pay their mortgages on time. Even more are having difficulty paying their property taxes.
People are concerned about their jobs. Major corporations have announced significant layoffs which will ripple through the economy. Right time and right place. Taking these conditions into perspective, it would appear that people who could provide information to investors with options to grow their money aggressively (from 8% to 50% annually) with little or no risk, would be in high demand. People who could show others how to begin a business allowing them to replace their income would be in high demand as well because home-based businesses offer tremendous tax benefits as well as income opportunities. Prospering during a recession will require you to organize your personal finances in a way that will free up money. Use this money to create an emergency fund if you don’t already have one. Use the remaining money to invest in high-return, low risk investments and to start a tax-reducing business. This business will help investors find opportunities to grow their money and help others concerned about their jobs to reduce taxes and replace their income with a home business as well. When you help enough people, you will prosper and spiral up and out of this recession with enough momentum to put you on the track of becoming extremely wealthy.
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