First Financial Coach

Finally the truth is that you’re better off spending 15 minutes going over your taxes to make sure they’re done right, and that you’ve taken every tax break you’re entitled to, than you are spending 50 minutes researching a stock. A tax break is not subject to the emotional whims of a market, as stocks are. Most retail tax firms will look over your tax return for free.

The reality is that the way you arrange your finances affects your parent’s financial life and vice versa while taking the steps to financial freedom. Perhaps your parents are helping you pay for college. Great idea, but if they’re saving money in your name, it will greatly hinder your chances of getting financial aid. What your parents and grandparents do with their money can affect your financial life. It may seem like there’s no reason for you to meet with a tax advisor but if you didn’t get all the financial aid you were expecting, it may be because your parents, not you, have made a financial mistake. Perhaps your folks need to meet with a tax advisor and since their money affects yours and vice versa, you need to go along with the steps to financial freedom. Throughout this article there are many times of the importance of talking with your parents about money.

If you decide to use a general financial planner, they’ll charge about 0 an hour. Your first meeting will be about three hours, probably less if you’re well prepared. So you have three hours. What should you do? Well this person is a financial planner, as opposed to a financial bowler or a financial belly dancer, so you should spend those hours planning.

It’s important to save but it is inevitable to spend. We’ve all had weak moments in the video store during our steps to financial freedom. A lazy Sunday afternoon or perhaps a lonely Friday drives us to rent something we know we’ll regret. While you can’t salvage your pride from such a purchase, the movie does carry a financial lesson, especially because it fits in well with this whole getting loaded versus getting loaded theme.

People think that tracking expenses restricts freedom. Being broke, however, all the time restricts freedom. Pricing your habits gives you more freedom because you’ll know where you’re spending money. When you know that, then you have the option of arranging your life. You may want to spend more here and less there. You can save up for what you want and not waste money on stuff you don’t want.

You want to keep track of all your expenses for one week. Write down every expense. Every time you swipe that credit card, write a check or pay cash. By the way, this week must be an average week in your life. Don’t conduct this exercise during spring break or right before a big holiday when your shopping muscles get a workout. Pick an average week in the life of you.

Which financial services are offered by PSG Konsult?
Financial planning – A PSG Konsult financial planner helps you set goals, gathers and analyses qualitative and quantitative information in order to construct a financial services plan with regards to death, disability and retirement based on your present and future goals.
Will and Testament – A PSG Konsult financial advisor will help manager your finances in respect of your will, property, trusts, insurance requirements, income tax liabilities and estate duty to achieve certain financial objectives.
Trusts – A PSG Konsult fiduciary advisor will analyse your financial management goals in order to set up offshore trusts to best serve both the trustor and the beneficiary’s needs.
Employee Benefits – Retirement planning is an essential part of your future financial security. A PSG Konsult financial advisor helps employers set aside funds for employees so that employees can maintain a lifestyle that is comfortable once they retire.
Business Finance - PSG Konsult business asset finance is a simplified, unique and objective process that gives your business leverage in the market to get finance at the best rates. A PSG Konsult financial advisor will assess your needs for the acquisition of movable and fixed assets without putting strain on the working capital of your business.
What are Financial Services?

Financial services include a group of financial products that are included in a systematic planning process which is a function of both wealth creation and wealth protection strategies. Financial management utilises the knowledge and skills of a PSG Konsult financial advisor to decide on the financial services you need to ensure your future financial freedom, independence and protection.

Financial management includes planning as part of a process to determine financial goals, purposes in life and priorities. A PSG Konsult financial planner will assess your risk profile and current lifestyle to create a balanced and realistic plan to meet those goals. Essentially, financial management uses financial services to help achieve your dreams. Financial management is tailored to individual needs to create a detailed strategy of ‘what needs to be done’ to reach your dreams. Financial management has three types of goals: short-term (achievable under a year), medium-term (achievable in one to five years) and long-term (achievable in five years or more). Planning ensures that each goal is meaningful in the context of your individual situation, addressing financial weaknesses and building on financial strengths with the right financial services.

Financial management enables careful analysis of goals which are subject to a reality check when considering current and future financial services needed to achieve your dreams. Your PSG Konsult financial planner will help you create a dynamic plan that changes continually to meet changing dreams, personal circumstances and phases of life as well as changes to financial services, markets and laws.

Your PSG Konsult financial advisor will help you build a plan that includes but is not limited to the following areas: cash flow management, education planning, investment planning, tax planning, risk management and insurance planning, estate and trust planning, retirement planning and business succession planning (for business owners).

source: http://www.psgonline.co.za/financial-services.php

We are working hard everyday. We work to get the salary and pay our bills. Of course we would also want to have more income. However, we will probably just spend the money we have even if we get a higher salary. You may ask if it is the notion financial freedom is only a dream!

In fact, there are really ways to attain financial freedom. However, you will not be able to do so if you are only working and get the salary every month. First of all, you need to decide to have financial freedom. This is very essential. You can only do it if you are determined to do so. The mentality and attitudes of you will certainly affect what you can get.

Then you should try to stop spending the money if you do not have it. As we are all well aware, we can spend money before we really have it on hand with credit cards. This can ruin your plans to have financial freedom. As a result, you should only use your credit card when you can be sure that you can have the budget.

However, if possible, the best way will be not using the credit cards. Cut all the credit cards you have! By doing that you will have no way to spend before you can earn the money. Of course you may still keep one card so that you can use it in case you need some urgent cash.

You also have to create multi streams of incomes. You need to invest in order to do so. If possible, you can consult a financial planner. It is better to trust a professional than yourself since they can help you to access the risk you can bear. The planner can also help you to decide your portfolio of investment. He or she will help you to make the most out of the capital you have on hand.

When multi streams of incomes are considered, you have to think of the idea of passive income. Passive income means that you can get the income even if you do not work on it. In short, you have to create a system which can make money without your involvement. You can begin by starting a small business. Remember, your every decision should be based on the idea that you are going to create passive income.

Although it is not possible to have financial freedom overnight, you can still attain this status gradually. As a result, you should bear the above in mind and start working for your goal.

The New York Stock Exchange has always been seen as a trusted investment institution where people become rich.  The Stock Market has produced many millionaires who followed the right stock advice and invested in the right stocks at the right time.

Many average Americans have followed suit and put their faith in the stock exchange as a trusted wealth producing institution.  They are happy to include their S & P Fortune 500 stock or two in their 401K or retirement plan.

Choosing the right investment often times is left to the professional financial planner or broker’s investment research and 401K advice by trusting average Americans. The planner tries to diversify the investments.  Sometimes they include gold or other precious metals because they know the gold price will rise during difficult economic times such as a recession.

The old adage “It takes money to make money” is true on Wall Street.  The more money one has to invest, the better stock portfolio can be created. The average American has to count on their 401K portfolio that the company offers.  Many long term employees bought shares in their company stock year after year.

In 2001 the average Americans learned a hard lesson with the highly touted Fortune 500 Enron stock.  Whether you were an employee of the company or whether you or your investment consultant decided to include Enron as one of your investment opportunities, the collapse of the Enron Corporation destroyed these investors and their retirement planning dreams.

A friend of mine confided in me that he really took a hit with the Enron collapse, and he has to keep working beyond his planned retirement date. The Enron Employees lost everything…..their job, their 401K, and all their stock holdings.

Due to the greed and manipulation by the corporate heads of the company, the Enron collapse had an estimated loss of $618 million and eliminated $1.2 billion in shareholder equity. This should have been a warning to all investors.

WARNING: Greed and manipulation is a part of corporate America!  We may never know how many individual lives were affected by the Enron collapse, just as we never know how many average American families’ lives have permanently been altered by the abuses of corporate America in the housing and banking crisis of 2007-2008.

In a recent conversation with my brother he shared with me that his company’s stock shrunk to $0.97 per share down from a high of $57.00 (December 2006). His company’s stock portfolio was going to be the means by which he would pay for his three boys to go to college.  But all he has left is a penny stock.  I didn’t need to ask how many shares he had; it wouldn’t make a difference.

 In 2009 the same corporate greed of the last two years reaches far beyond Houston, Texas, where Enron was located.  Across America, from California to New York average American families who had pinned their hopes and dreams for the future on their stock and 401K investments have lost everything including their jobs and their homes. By now 8.5 million Americans have lost their jobs.

“Who do you trust?” Where can the average American go to invest in his/her future? Are we ever again able to believe corporate America, Wall Street Brokers, the New York Stock Exchange, Banks, Financial Planners to direct us to a place where one can locate a high yield safe investment?  Does anyone have any other investment ideas as where to put their money?

Will my brother’s stock ever reclaim the $57.00 value it once had? Can the average American trust themselves with an investment program of their own?  Are they willing to do their own investing?  Are banks and their 3% return on CD investments of $10,000 for 30 months the answer?  Does the average American have that kind of cash flow to give to Banks?

What’s the difference between a 3% return on $15,000 investment and a $15,000 return on a $3 investment?  The first answer is cash flow.  Most Americans may be able to afford the three dollars, but definitely not the fifteen thousand, and especially not for thirty months!

A lot of people are against gambling for a lot of different reasons. But the stories of Enron 2001, and corporate America 2007-2008, whom we thought we could trust have gambled away our money with reckless abandon with unregulated hedge funds for their own profit taking.

Which is worse — to risk your own money or to give your money to someone else who could possibly gamble it away?  What is the difference of investing your money in a low risk high yield Pick 4 investment—win or lose, or give your money to a stock broker who could gamble it away?

Every successful investment system is based on KNOWLEDGE & STRATEGY. If an investor of any kind gains this knowledge and learns the strategies, they can be SUCCESSFUL, too.  But does the average American trust him or herself enough to handle his or her own investing?  Or are we stuck with Corporate America?

Dr. Benjamin Spock once said: “Trust yourself. You know more than you think you know.”

I would like to share with you my 17 Personal Rules of Investing. These are the rules that guide me while I am actively pursuing Advanced Level Five Active Investing. These 17 rules are the rules that have allowed me to build my wealth and reach personal financial freedom. I look forward to sharing them with you to help you on your personal journey to Financial Freedom.

Take a good look at the Rules that you are currently using with regards to money and investing. Are YOUR Rules empowering or limiting your financial success?

And now here are my 17 Personal Rules of Investing. Read, enjoy, and learn! You can enjoy financial freedom from home through real estate investing.

Rule 1 – My Rules

I play by My Rules, not the rules of anyone else. Active Investors know that they must have control at all times. They do not play by the rules dictated by others (such as so called ‘expert’ financial planners, accountants, lawyers, tax planners, brokers and bankers who all too often play by the rules of “It Can’t be Done” or “We Don’t Do That Here”). Active Investors design their own Rules and adapt the world to them rather than complying with and adapting to the rules of others.

Note: this does not mean breaking the law! All that I do, whether in the area of business, tax planning, entity strategies, or investing is all completely legal and above board. There is no room in the business and investing world of the Active Investor (where your reputation is as vital as your skills), for shades of gray. There is no need. Everything I could ever want to do can be achieved using my own rules, within the framework of existing laws, regulations and codes. I only do what is “white as the driven snow.” I strongly recommend you do the same.

Rule 2 – The Twelve Generalized Principles of Active Investing

Always respect and follow the Twelve Generalized Principles of Active Investing. They are the blueprints upon which to build your Rules.

1. Belief
2. Do What You Love/Love What You Do
3. Serve
4. Niche
5. Leverage
6. Lateral Thinking
7. Market Research
8. Efficiency
9. Lag
10. Timing
11. Stewardship
12. Proper Action

Rule 3 – Integrity

In my opinion the most important thing is Integrity. If the people I am playing (working) with do not have Integrity I don’t play (do business) with them. I have found out the hard way that people with questionable Integrity usually turn on you before the deal is done. Remember that Integrity is more important than anything else.

Rule 4 – Know the Rules

Before I play “The Game” I want to know four things: a) the Rules of the Market; b) the Rules of “The Game” (based on my Niche); c) the Rules to ROIAT (Return on Investment after Tax) Maximization; d) My Rules.

Rule 5 – Buy Wholesale

As an investor I know that to make a profit I must buy wholesale (or sub-wholesale) and then resell at retail (or just below).

Rule 6 – Profit at Purchase

Make your money when you buy, not when you sell. When making a decision on what to offer for a property I make a decision solely based on the cash flow or capital gains profit (after expenses). I NEVER include the tax savings or appreciation. I don’t include them because they are unknown, constantly changing and not guaranteed.

Warning: Beware of Salespeople cloaked as Real Estate Agents or Marketers, Stock Brokers, Financial Planners, Investment Advisors, etc. All those fancy charts, brochures and presentations are designed to fool you. Do not ever buy an investment based on “projected yields” or “future appreciation” or “potential tax savings.” That is the “game” of the unsuccessful investor.

Rule 7 – Low Risk Idea

I only have at risk a small percentage (0 – 3%) of MY net worth in any one investment. I do this because even though I have never lost money on an investment, I want to eliminate the possibility (fear) of being financially ruined by a couple of deals gone bad.

Clarification: when I say that I only have less than 3% of my net worth at risk in any one investment I am not saying that I only have 3% invested in total. What I am saying is that I have used Level Five Advanced Investor techniques (Principles and Rules) to limit my downside risk to just 0-3% of any given investment. I generally have at least 90-95% of my investment capital invested at any one time. Just not 90-95% of it at risk! I minimize my risk by following proper money management risk reduction strategies.

Rule 8 – Other People’s Money

I use OPM (Other People’s Money) whenever possible. Leverage allows me to do far more transactions than I ever could on my own. Remember, it’s always better to have a piece of the pie than none of the pie.

Rule 9 – Money Back

I structure my transactions so that if I have money in the deal I get all of it back in the quickest possible time. Remember, one of the major keys to money is to have it work for you and once you have your initial investment back your money is working for you at the rate of return of infinity. On most of my transactions I have all of my money back within the first year.

Rule 10 – Don’t Wanters

I buy from people who really do not want their property.

This means that I generally buy my properties from highly motivated sellers (trustees of deceased estates or bankruptcies, liquidators, vacant houses, mortgages in possession, trustee sales, foreclosures, etc.).

If someone does not want their property they are much more likely to be flexible on their price or terms to dispose of it. You are entering the market on Wholesale Price and/or Wholesale Terms which will allow you to easily determine your Profit at Purchase.

In any market, no matter how good, somewhere between 2-5% of sellers are highly motivated to sell.

Rule 11 – Cash Flow

Although I often acquire properties solely to turn them around for a capital gain, I prefer to make as much of my profit as I can in the form of Cash Flow. Note that I NEVER negatively gear a property.

Rule 12 – Define the Investment

When it comes to Real Estate I prefer to invest in single family homes that meet my criteria or definition that I have very clearly laid out:

• Priced 20% or more below the median;
• 3 bed/ 1½+ bath (1000-1500 sq.ft. /100-160 sq.m.) (or whatever is customary and usual in your area);
• Covered Parking;
• Fenced Yard;
• Livable Condition;
• Acceptable Neighborhood;

Rule 13 – No Emotions

When I invest all I care about is the Return on Investment after taxes. The only thing that matters is the Bottom Line. I don’t care what color the carpet is or about the pretty garden. Just give me the numbers. When it comes to investing, the numbers are the most important thing. Emotions play a very small part. I always tell students who are calling for assistance “Don’t tell me about the house. Tell me about the numbers.” “So be like the professionals. Don’t get emotionally involved. Get Rich instead. Remember the key to investing is focusing on “Them Money and The Numbers”.

Rule 14 – Ride the Winners and Cut the Losers

I have found that most people do the exact opposite. They often do this because of the recommendations of their “Professional” advisors. This happens because stockbrokers are trained to tell you to “sell” when you make a small profit.

The bottom line being, the broker wants to make more commission when you sell and then reinvest (over and over and over). How often have you or someone you knew, sold an investment for a respectable profit only to see the investment continue to go through the roof? How often have you held on to an investment despite the fact that it was a “Dog”, hoping that some day it would come back? Tom investors “Ride the Winners and Cut the Losers”. They do this primarily through strict money management and tight control over their own investment psychology. You should do the same.

Rule 15 – Invest Long Term

Most people look at far too short a time frame in regard to their investments. They spend much time chopping and changing, running around looking for the next “Get Rich Quick” scheme or hot investment. The reality is that there are very few surefire and rapid-fire roads to Riches. Rather, the majority of Get Rich investments take time to bring home large returns.

When I invest, I primarily do so for the long term. I am not interested in “spending” assets after short or mid-term gains. I am looking towards my longer-term goals of wealth-building and stewardship of my assets. Most of the best investments carry with them the power of compounding and Lag and are not designed to be readily capitalized upon over the short term.

When you assess an investment, be clear on your goals and your Timeframe. Do not ignore an investment simply because you believe its benefits are not instantaneous. Check the numbers and understand the power of money invested over time. Building wealth takes time. Invest for the long term.

Rule 16 – Open Mind to Adapt My Rules

Always be prepared, based upon your Market Research, to adapt YOUR RULES to a changing market to your own best advantage. Many investors fail dramatically due to dogged determination to stick to timeworn, but inflexible investment techniques or attitudes.

You must always keep an open mind in relation to the expectations and changes of your market.

Rule 17 – Continuing Education

Keep current on your Market Research at all times and practice your skills of Lateral Thinking to keep up with or anticipate the changes. I am constantly attending seminars, reading and learning. Throughout the world I seek out the best teachers and information I can find. I then pay to attend their seminars as a student to learn what they have to teach.

I strive to continually learn more to improve myself, my relationships, my psychology, my business and my investing. I accomplish this by attending seminars, listening to tapes, watching videos and reading. Education is an ongoing process and I strongly encourage you to continue your learning.

Winning the Investing Game

I recommend that you take a good look at how your Principles and Rules compare with top investors. Emphasis those things you are doing right and learn from those things that you need to change. I know that if you apply the Generalized Principles and follow YOUR RULES that you will WIN the “Money Game” and achieve financial freedom from home!

Finally the truth is that you’re better off spending 15 minutes going over your taxes to make sure they’re done right, and that you’ve taken every tax break you’re entitled to, than you are spending 50 minutes researching a stock. A tax break is not subject to the emotional whims of a market, as stocks are. Most retail tax firms will look over your tax return for free.

The reality is that the way you arrange your finances affects your parent’s financial life and vice versa while taking the steps to financial freedom. Perhaps your parents are helping you pay for college. Great idea, but if they’re saving money in your name, it will greatly hinder your chances of getting financial aid. What your parents and grandparents do with their money can affect your financial life. It may seem like there’s no reason for you to meet with a tax advisor but if you didn’t get all the financial aid you were expecting, it may be because your parents, not you, have made a financial mistake. Perhaps your folks need to meet with a tax advisor and since their money affects yours and vice versa, you need to go along with the steps to financial freedom. Throughout this article there are many times of the importance of talking with your parents about money.

If you decide to use a general financial planner, they’ll charge about $100 an hour. Your first meeting will be about three hours, probably less if you’re well prepared. So you have three hours. What should you do? Well this person is a financial planner, as opposed to a financial bowler or a financial belly dancer, so you should spend those hours planning.

It’s important to save but it is inevitable to spend. We’ve all had weak moments in the video store during our steps to financial freedom. A lazy Sunday afternoon or perhaps a lonely Friday drives us to rent something we know we’ll regret. While you can’t salvage your pride from such a purchase, the movie does carry a financial lesson, especially because it fits in well with this whole getting loaded versus getting loaded theme.

People think that tracking expenses restricts freedom. Being broke, however, all the time restricts freedom. Pricing your habits gives you more freedom because you’ll know where you’re spending money. When you know that, then you have the option of arranging your life. You may want to spend more here and less there. You can save up for what you want and not waste money on stuff you don’t want.

You want to keep track of all your expenses for one week. Write down every expense. Every time you swipe that credit card, write a check or pay cash. By the way, this week must be an average week in your life. Don’t conduct this exercise during spring break or right before a big holiday when your shopping muscles get a workout. Pick an average week in the life of you.