May 10, 2016

http://www.investopedia.com/financial-edge/1212/ways-to-destroy-your-net-worth.aspx

Net worth is no trivial matter, as it is ultimately the only meaningful measure of personal wealth. There are many good ways to build individual net worth, including earning more, saving more and improving the return on savings and investments, but it’s equally important to play a good defense. There are five ways to destroy your net worth: uncontrolled spending, bad debt, no savings/retirement plan, open-ended risk, and failure to maximize peak earnings. You build your net worth by making more than you spend, and you may have to build that net worth over time. Because building net worth takes time, it is why the 4th step of the Process is so important. Manage how much you spend and retain the rest. Disciplined budgets are usually a good preventative measure for uncontrolled spending, as most people are loathe to actually budget for items that they know they really do not need. There are different types of debt. There’s good debt and there’s bad debt. Accumulating even moderate amounts of credit card debt can quickly grow out of control due to the very high interest rates that debt carries. Likewise, taking on debt to buy a car (a depreciating asset that also demands maintenance and operational spending) is not a good financial move. It’s important to understand that even debt is neutral. Having a financial education is important in understanding the difference between both. While keeping spending lower than earnings is critical to accumulating savings, it is likewise very important to have a savings and retirement plan. Spending less can increase your savings, but also finding ways to create another stream of income can also help in accumulating savings. You should put mechanisms in place that will help you set aside your surplus out of your sight and mind or you will run the risk of spending it.
“The wise store up choice food and olive oil, but fools gulp theirs down.” Proverbs 21:20 NIV. Not maintaining adequate insurance is an excellent example of an open-ended risk. While young people may believe that they have many years of good health ahead of them, a torn knee ligament or car accident can lead to huge medical bills and serious financial difficulties. One of the prime causes of personal bankruptcy in the United States is medical costs, and going without health insurance represents a sizable risk to a person’s net worth. I recommend that if you don’t have adequate insurance coverage then find an independent insurance agent as soon as possible and get a quote. Even if you do have coverage, I recommend you get a check-up. When a tragic life event happens you want to be prepared. For most people with college educations, the peak earnings period runs from their early 40s into their mid-50s (peak years for those without college degrees tend to start, and end, earlier in life). As such, it is important to maximize that earnings opportunity. Unless you hit the lottery, you’re an entertainer, or a professional athlete, you’re going to have to put time and work into your career in order to maximize your earnings. Job hopping can hurt your ability to exploit the peak earnings years, because a person runs the risk of not gaining an adequate level of experience and it could damage a person’s ultimate net worth. In other words, don’t stay in a career path you hate, but be willing to honor the principle of seed, time, and harvest. The time aspect is the most frustrating but also the most rewarding part of hard work.

http://www.bankrate.com/finance/loans/what-lenders-look-for-in-personal-loan-borrower.aspx

Whether you apply for a personal loan at a bank, credit union or a financial-technology firm, there’s much about the process that’s similar from one lender to another. There are three basic things that lenders will ask: proof of income, ability to repay, and what do you plan to use the money for. A review by the credit bureau TransUnion of 54 million unsecured personal loans issued between 2010 and 2014 found 2 big differences among lenders:

  • Banks are more picky about who they lend to.
  • Banks, on average, issue bigger loans.

Credit unions, meanwhile, issued 53% of their personal loans to non-prime customers, while finance companies made 77% of their loans to customers with low credit scores. A number of marketplace lenders cater to below-prime customers. San Francisco-based LendUp, for instance, will issue loans to borrowers with a credit score as low as 450. As a result of the stronger higher credit score criteria, banks are willing to make larger loans to borrowers. The average bank loan was $6,050, while credit unions and finance companies lent significantly smaller sums. I believe you should have a line of credit or a loan when you don’t need it, because when you do it may be too late. Something you should consider is turning your savings account into a personal line of credit. Why let the bank, credit union, private lender, credit card company, or federal government charge you interest, when you can charge yourself interest and become the bank. For more information on this technique contact me in the contact me section.

http://www.marketwatch.com/video/a-bartender-explains-liquid-assets/4AD0E892-FBFE-4FD9-AD69-CDCA093F1DC9.html

Enjoy this video explanation of liquid assets. When you have liquid assets. Getting what you need is easy. Cash is the ultimate liquid assets.
Liquid assets are cash, a checking account, stocks, bonds, and mutual funds.
Basically If you sell something for cash quickly and it doesn’t lose value when sell it, that is a liquid asset. Illiquid assets are assets that are hard to find buyers for. An easy example is trying to sell your house when no one is willing to buy at the price you’re trying to sell it for. Liquidity is very important in your finances. Think of liquidity as the blood of your finances. “… for the blood is the life…” (Deuteronomy 12:23 NKJV). I believe you should be liquid enough to be able to move on an opportunity to be generous without it hurting your day to day living. The best way to reach that level of generosity is to have a budget in place, little to no bad debt, and multiple streams of income.

http://www.investopedia.com/articles/entrepreneurship-small-business/050416/why-small-businesses-fail-grow.asp

Running a small business requires superior problem-solving and an ability to look at the bigger picture. Aside from ensuring that your business turns a profit on a regular basis, you also need to be concerned with your own financial health over the long term. That includes having a strategy in place for building wealth, so you can enjoy a comfortable retirement once the time comes to hand over the reins of your business to someone else. There are four obstacles that can hinder you from creating wealth: too much business debt, an inefficient tax strategy, lack of diversification, and external risks. Debt can be used to help start a business if you don’t have the initial start-up capital saved up or investors. Debt can be used to remedy the time gap in between accounts payable and accounts receivable. At some point you may need a working capital line of credit, and in my opinion that is the best use for debt, however if a substantial part of your business’ revenue is going toward repaying its debts, that leaves less income to devote to growth. It also leaves you, as the business owner, less money to funnel into a solo 401(k), SEP IRA or similar qualified retirement plan to ensure your own future. Business is personal. A person doesn’t go into business to sell an object just to sell an object. There is a personal reason or plan for a person being in business. The purpose may be for a greater good, but often times that business will one day allow the person to retire. As an employee it’s important to remember this truth. If you’re not taking advantage of every available tax break, you may be shortchanging your wealth without even realizing it. There are a number of tax credits and deductions that you can claim on your business or personal tax return. To qualify as tax deductible, an expense must be deemed both ordinary and necessary. This means the expense must be something that’s commonly associated with the type of business you own and directly connected to its operation. When you don’t take the time to maximize every possible tax advantage, the result is an overly large tax payment. Hiring an accountant to manage your filing may increase your business expenses slightly, but it can also help to minimize your tax liability. In terms of building wealth, the long-term benefit can easily outweigh the cost.

Being a business owner requires a certain amount of juggling, and you simply may not have time to pay as much attention to your investments as you’d like. The size of your assets affects your overall financial standing, including how banks see you, especially if you’re a sole proprietor. Investing in mutual funds or exchange-traded funds (ETFs) eliminates the hassle of trying to put together a well-rounded portfolio, but it can be problematic if the funds you’re purchasing hold the same underlying securities. Business owners can also run into issues if they’re not rebalancing periodically. This is vital to ensure that you’re maintaining the right asset allocation, based on your investment goals and risk tolerance. If you don’t rebalance regularly, you could end up with a portfolio that’s either too aggressive or too conservative. As a business owner, you have to understand that are other types of asset classes. Each asset class requires a higher level of financial education, work, and faith. It’s risky to rely too heavily on one asset class, and to dive into an asset class thinking that the same rules apply. Also it’s important to attempt to prepare for unforeseen risks that may occur. Choosing the appropriate business structure is an important step in minimizing liability, but you should also be proactive in reviewing your business and personal insurance coverage to ensure that you’re protected against every possibility.
A successful small business can put you on the right path toward building wealth, but you can stumble if you’re not thinking ahead. Keeping your eyes open for these and other challenges that may pop up along the way is the best defense when your wealth-building plans are threatened. In this article, I quoted the author more than usual, and it’s because I agree with her points. The bottom line is that your small business will fail to grow because of the factors above, but what it is really fundamental is that your business like your personal life has a vision. Where there is no vision, the people perish….” (Proverbs 29:18 KJV)

If you have need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

http://www.investopedia.com/financial-edge/1212/ways-to-destroy-your-net-worth.aspx

Net worth is no trivial matter, as it is ultimately the only meaningful measure of personal wealth. There are many good ways to build individual net worth, including earning more, saving more and improving the return on savings and investments, but it’s equally important to play a good defense. There are five ways to destroy your net worth: uncontrolled spending, bad debt, no savings/retirement plan, open-ended risk, and failure to maximize peak earnings. You build your net worth by making more than you spend, and you may have to build that net worth over time. Because building net worth takes time, it is why the 4th step of the Process is so important. Manage how much you spend and retain the rest. Disciplined budgets are usually a good preventative measure for uncontrolled spending, as most people are loathe to actually budget for items that they know they really do not need. There are different types of debt. There’s good debt and there’s bad debt. Accumulating even moderate amounts of credit card debt can quickly grow out of control due to the very high interest rates that debt carries. Likewise, taking on debt to buy a car (a depreciating asset that also demands maintenance and operational spending) is not a good financial move. It’s important to understand that even debt is neutral. Having a financial education is important in understanding the difference between both. While keeping spending lower than earnings is critical to accumulating savings, it is likewise very important to have a savings and retirement plan. Spending less can increase your savings, but also finding ways to create another stream of income can also help in accumulating savings. You should put mechanisms in place that will help you set aside your surplus out of your sight and mind or you will run the risk of spending it.
“The wise store up choice food and olive oil, but fools gulp theirs down.” Proverbs 21:20 NIV. Not maintaining adequate insurance is an excellent example of an open-ended risk. While young people may believe that they have many years of good health ahead of them, a torn knee ligament or car accident can lead to huge medical bills and serious financial difficulties. One of the prime causes of personal bankruptcy in the United States is medical costs, and going without health insurance represents a sizable risk to a person’s net worth. I recommend that if you don’t have adequate insurance coverage then find an independent insurance agent as soon as possible and get a quote. Even if you do have coverage, I recommend you get a check-up. When a tragic life event happens you want to be prepared. For most people with college educations, the peak earnings period runs from their early 40s into their mid-50s (peak years for those without college degrees tend to start, and end, earlier in life). As such, it is important to maximize that earnings opportunity. Unless you hit the lottery, you’re an entertainer, or a professional athlete, you’re going to have to put time and work into your career in order to maximize your earnings. Job hopping can hurt your ability to exploit the peak earnings years, because a person runs the risk of not gaining an adequate level of experience and it could damage a person’s ultimate net worth. In other words, don’t stay in a career path you hate, but be willing to honor the principle of seed, time, and harvest. The time aspect is the most frustrating but also the most rewarding part of hard work.

http://www.bankrate.com/finance/loans/what-lenders-look-for-in-personal-loan-borrower.aspx

Whether you apply for a personal loan at a bank, credit union or a financial-technology firm, there’s much about the process that’s similar from one lender to another. There are three basic things that lenders will ask: proof of income, ability to repay, and what do you plan to use the money for. A review by the credit bureau TransUnion of 54 million unsecured personal loans issued between 2010 and 2014 found 2 big differences among lenders:

  • Banks are more picky about who they lend to.
  • Banks, on average, issue bigger loans.

Credit unions, meanwhile, issued 53% of their personal loans to non-prime customers, while finance companies made 77% of their loans to customers with low credit scores. A number of marketplace lenders cater to below-prime customers. San Francisco-based LendUp, for instance, will issue loans to borrowers with a credit score as low as 450. As a result of the stronger higher credit score criteria, banks are willing to make larger loans to borrowers. The average bank loan was $6,050, while credit unions and finance companies lent significantly smaller sums. I believe you should have a line of credit or a loan when you don’t need it, because when you do it may be too late. Something you should consider is turning your savings account into a personal line of credit. Why let the bank, credit union, private lender, credit card company, or federal government charge you interest, when you can charge yourself interest and become the bank. For more information on this technique contact me in the contact me section.

http://www.marketwatch.com/video/a-bartender-explains-liquid-assets/4AD0E892-FBFE-4FD9-AD69-CDCA093F1DC9.html

Enjoy this video explanation of liquid assets. When you have liquid assets. Getting what you need is easy. Cash is the ultimate liquid assets.
Liquid assets are cash, a checking account, stocks, bonds, and mutual funds.
Basically If you sell something for cash quickly and it doesn’t lose value when sell it, that is a liquid asset. Illiquid assets are assets that are hard to find buyers for. An easy example is trying to sell your house when no one is willing to buy at the price you’re trying to sell it for. Liquidity is very important in your finances. Think of liquidity as the blood of your finances. “… for the blood is the life…” (Deuteronomy 12:23 NKJV). I believe you should be liquid enough to be able to move on an opportunity to be generous without it hurting your day to day living. The best way to reach that level of generosity is to have a budget in place, little to no bad debt, and multiple streams of income.

http://www.investopedia.com/articles/entrepreneurship-small-business/050416/why-small-businesses-fail-grow.asp

Running a small business requires superior problem-solving and an ability to look at the bigger picture. Aside from ensuring that your business turns a profit on a regular basis, you also need to be concerned with your own financial health over the long term. That includes having a strategy in place for building wealth, so you can enjoy a comfortable retirement once the time comes to hand over the reins of your business to someone else. There are four obstacles that can hinder you from creating wealth: too much business debt, an inefficient tax strategy, lack of diversification, and external risks. Debt can be used to help start a business if you don’t have the initial start-up capital saved up or investors. Debt can be used to remedy the time gap in between accounts payable and accounts receivable. At some point you may need a working capital line of credit, and in my opinion that is the best use for debt, however if a substantial part of your business’ revenue is going toward repaying its debts, that leaves less income to devote to growth. It also leaves you, as the business owner, less money to funnel into a solo 401(k), SEP IRA or similar qualified retirement plan to ensure your own future. Business is personal. A person doesn’t go into business to sell an object just to sell an object. There is a personal reason or plan for a person being in business. The purpose may be for a greater good, but often times that business will one day allow the person to retire. As an employee it’s important to remember this truth. If you’re not taking advantage of every available tax break, you may be shortchanging your wealth without even realizing it. There are a number of tax credits and deductions that you can claim on your business or personal tax return. To qualify as tax deductible, an expense must be deemed both ordinary and necessary. This means the expense must be something that’s commonly associated with the type of business you own and directly connected to its operation. When you don’t take the time to maximize every possible tax advantage, the result is an overly large tax payment. Hiring an accountant to manage your filing may increase your business expenses slightly, but it can also help to minimize your tax liability. In terms of building wealth, the long-term benefit can easily outweigh the cost.

Being a business owner requires a certain amount of juggling, and you simply may not have time to pay as much attention to your investments as you’d like. The size of your assets affects your overall financial standing, including how banks see you, especially if you’re a sole proprietor. Investing in mutual funds or exchange-traded funds (ETFs) eliminates the hassle of trying to put together a well-rounded portfolio, but it can be problematic if the funds you’re purchasing hold the same underlying securities. Business owners can also run into issues if they’re not rebalancing periodically. This is vital to ensure that you’re maintaining the right asset allocation, based on your investment goals and risk tolerance. If you don’t rebalance regularly, you could end up with a portfolio that’s either too aggressive or too conservative. As a business owner, you have to understand that are other types of asset classes. Each asset class requires a higher level of financial education, work, and faith. It’s risky to rely too heavily on one asset class, and to dive into an asset class thinking that the same rules apply. Also it’s important to attempt to prepare for unforeseen risks that may occur. Choosing the appropriate business structure is an important step in minimizing liability, but you should also be proactive in reviewing your business and personal insurance coverage to ensure that you’re protected against every possibility.
A successful small business can put you on the right path toward building wealth, but you can stumble if you’re not thinking ahead. Keeping your eyes open for these and other challenges that may pop up along the way is the best defense when your wealth-building plans are threatened. In this article, I quoted the author more than usual, and it’s because I agree with her points. The bottom line is that your small business will fail to grow because of the factors above, but what it is really fundamental is that your business like your personal life has a vision. Where there is no vision, the people perish….” (Proverbs 29:18 KJV)

If you need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

April 26, 2016

http://www.bloomberg.com/news/articles/2016-04-25/saudi-prince-says-aramco-valuation-seen-at-above-2-trillion

  • “Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman said he expects the value of Saudi Arabian Oil Co. to exceed $2 trillion as the kingdom prepares to sell part of the company in what could be the world’s largest initial public offering.” This IPO is a part of Saudi Arabia’s plan to change the economy and reduce its reliance on oil. It’s important to keep an eye on Aramco.

http://www.investopedia.com/articles/investing/042516/goldman-sachs-offers-online-consumer-banking-gs.asp

  • “On April 18 the company announced that it had completed its acquisition of GE Capital Bank‘s online deposit platform and taken on $16 billion in deposits. Retail customers can now open a savings account at GS Bank, an online-only platform, with a deposit of as little as $1.” This account currently offers an Annual Percentage Yield of 1.05% and is competing with Ally and Synchrony Financial. “GS Bank is trying to bring in more mass-market deposits by offering attractive interest rates.” I prefer to keep my options open and not have all my eggs in one basket.

http://www.investopedia.com/articles/financial-advisor/042516/why-instagram-critical-facebooks-business-fb.asp

  • “When Facebook made the decision to acquire the new social media startup, Instagram, back in 2012 for $1 billion, critics were skeptical about the prospects of the photo-sharing platform adding value to Facebook’s business. In hindsight, the decision seems to have been a brilliant one on the part of Facebook. In a recent report, analysts at Credit Suisse Group projected Facebook (NASDAQ: FB) will receive more than triple Instagram’s purchase price via the app’s revenue this year alone.” Consider Instagram, and Facebook’s presence in our own lives and in the lives of millennials. “The Credit Suisse report forecasts $572.5 million generated in revenue from Instagram in the first quarter of 2016, and an overall $3.2 billion for the entire year. The projection indicates an accelerated profitability as the photo-sharing app begins to introduce new ad revenue strategies. (To learn more about Instagram, read: The Story of Instagram: The Rise of the #1 Photo-Sharing App (FB).) Premium video is projected to contribute $260 million to Facebook’s total ad revenue.” Sharing technology will only get more and more advanced as the technology accelerates. It’s important to remember that even with this technology to remain genuinely connected to people through their heart, mind, and spirit. People don’t care about how much you know. People want to know how much you care.

http://www.bankrate.com/lite/smart-spending/financial-lessons-from-game-of-thrones-1.aspx

  • For the Game of Thrones fans, here’s an interesting article found on Bankrate.com. “Both ‘Game of Thrones’ (and the books) have more to teach us about economic and social life than we might think,” says McCaffrey, a postdoctoral fellow who teaches economics at the University of Illinois at Springfield.” It’s never too soon to prepare for what’s ahead. “A great way to prepare for your future is to begin saving early. Starting in your 20s gives you at least 40 years to grow your money.” It’s important to pay your debts. “Paying your debts promptly is always wise advice. Even better is to make sure you don’t incur more debt than you can pay.” It is important to carefully plan your estate. “The show demonstrates — in extreme terms — how badly things can go when you don’t designate heirs.” Use all the financial tools and resources available before you entrust your money to a “financial expert.” “The constant backstabbing on “Game of Thrones” makes a viewer wonder about the challenge of thriving in a world where trust is in short supply.” You must have a global macroeconomic perspective, because the world will impact your world. “Like the characters in “Game of Thrones,” we live in a big world. But unlike those characters, we have ways of staying informed about the faraway forces that impact our lives and wallets — whether it’s a European debt crisis or economic pressures from China.” Women unfortunately do not receive the same equal pay as men. “Though women have achieved positions of power and wealth in our society, challenges remain, just as Brienne and Arya have found.” You should have an insurance plan in place to cover a long term disability. “Having good health insurance is one thing, but even the best policies cover only your immediate medical care. If you’re unable to work because of a disability, you need a financial Hodor to carry you.” These examples are valuable lessons that can be applied in your daily life. “The wise store up choice food and olive oil, but fools gulp theirs down.” (Proverbs 21:20 NIV)

http://ziglarvault.com/three-biblical-lessons-on-setting-goals-and-following-through/

  • In this article, Bryan Flanagan from More Encouragement for the Sales Professional uses the story of David from 1 Samuel in the Old Testament to show that following through on a goal can be a battle. “First and foremost, David’s attitude was very positive,” Flanagan writes. David didn’t care that Goliath was much larger than him, he only cared about going out there and winning. Approaching the process of setting goals and following through begins with a hopeful, positive outlook. You should be excited to not only reach your goals, but also eager to work for your goals despite knowing hardships may be waiting for you. “Secondly, David was prepared. You noticed that he chose five rocks.  And, he chose five smooth, flat river rocks.  (His plan was to have a few stones in reserve in case he ran into any objections),” Flanagan writes. David knew exactly what he needed to win, a key component of setting goals and following through. Give yourself all of the tools to succeed—most of which you already have inside you. Lastly, and maybe most importantly, David had “an incentive, a goal, a motivator.” David came from humble beginnings, Flanagan reminds us, he was never wealthy, famous or noble. What does this teach us? Setting goals and following through isn’t something reserved for those who are already successful. Let your hardships and your desires become motivators for you to set higher standards for yourself. Being action oriented and taking initiative to set yourself up for success is something David definitely showed us how to do.” The key piece is to follow all three steps, and more importantly to be consistent.

 

Please let me know if you have anything I can agree with you in prayer about, or if you’re in need of a financial checkup. Go to the contact me section located at the top.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

April 19, 2016

https://www.entrepreneur.com/video/273894

  • “Whether you’re brand-new to investing or you’re a seasoned pro who simply needs a little refresher, you can learn from this video from Brittney Castro of Financially Wise Women. Here, she shares her top-12 investing do’s and don’ts.” Do your research, do invest for the long term, and do hire help when you need it. Don’t invest blindly, don’t invest for the short term (short term defined as 6 months to 1 year), don’t let your emotions get involved, don’t listen to chicken little, don’t think you can do it all alone. Brittney encourages the viewer to continue his or her education through books, videos, audio, and seeking counsel where appropriate. If you want to be wise walk with wise people, but a crowd of fools suffers much harm.

http://www.thepennyhoarder.com/19-ridiculous-ways-to-make-10000-you-definitely-havent-thought-of-yet/

  • I’d ignore the pop up window offer from penny hoarder to get straight into this interesting article. Also as a side note, the $10s in the photo do not represent a true strap of $1000 in $10s. “No matter how you slice it, having $10,000 to spend would be nice. But it’s a lot of money to save!” This article highlights 19 different ways to make $10000. I found it fun to read and here are some of the weird ways to earn cash: start a cricket farm, watch youtube-like videos, drive for uber, and share stories about your kids on Scary Mommy. These were just a few of the writer’s suggestions. This article highlights the truth that the wealth of the wicked is laid up for the just. In other words, it’s out there if you have the desire to seek it, the discernment to see it, and the wisdom of the Lord to use it for its true purpose.

http://www.marketwatch.com/story/5-strange-facts-about-billionaires-2016-03-15

  • I enjoy watching a show on CNBC called the Filthy Rich Guide to. Basically the show highlights the lifestyle of a billionaire vs everyone else. The truth is they operate differently than most in their actions, but they do certain processes consistently. This article tells of 5 strange facts about billionaires. “This year, the world’s billionaires clocked in an aggregate net worth of $6.48 trillion, according to the Forbes Billionaires list released this month, with the usual suspects topping the list – including Bill Gates ($75 billion), Inditex founder Amancio Ortega ($67 billion) and Berkshire Hathaway’s Warren Buffett ($60.8 billion).” Aquarius is the most popular astrological sign of elite billionaires, God is a billionaire (I chuckled at this one), the billionaire school-dropout saga is a myth, billionaires have a lot of children, and two billionaires can’t legally drink in the U.S. Billionaires are people just like you and me, and even a rich man needs the salvation of our Lord, so I encourage you to lift them up in prayer to make God decisions and not just good decisions. The final article highlights an alarming truth. Also, we both know God is more than a billionaire.

http://www.marketwatch.com/story/wealth-inequality-is-100-times-worse-than-income-inequality-2016-01-19

  • Jesus replied, “Leave her alone. She did this in preparation for my burial. You will always have the poor among you, but you will not always have me.” (John 12:7-8 NLT). In this moment, Jesus corrected Judas Iscariot for complaining about the usage of perfume which was worth a year’s wages, and said it could be used to help the poor. The truth is that Judas didn’t care for the poor and often used that money for himself. There’s currently an income gap between the rich and the poor, but this article highlights that there’s something more alarming than an income gap. There is a wealth gap between the rich and even the average person. Wealth is your money making money for you. “Combined net worth of 4 U.S. billionaires almost as much as the total wealth of the bottom 40% of U.S. households. Last year, just 62 people held wealth equivalent to the amount owned by 3.6 billion, about half the world’s population, according to the anti-poverty charity.” The article itself isn’t an indictment against the wealthy, but it highlights where most of the wealth resides, and fortunately there are a few like Bill Gates and Warren Buffett who are looking to bring a better world. But our source of hope should not be on those of this world, rather on the One who was, is and will always be. Finally, here’s a link that allows you to see where you stand among the global rich. Enter your numbers here

Please let me know if you have anything I can agree with you in prayer about, or if you’re in need of a financial checkup.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

 

April 12, 2016

Below are the articles for the week with a short summary:

http://www.investopedia.com/articles/tax/09/tax-havens.asp

  • Tax havens have existed as far back as the Greeks, and more familiar examples to us are Switzerland and Panama. There are three key attributes classified by the OECD: No or only nominal taxes, protection of personal financial information, and lack of transparency. The United States Government Accountability Office has listed two additional attributes of a tax haven: No requirement of substantial local presence and self-promotion as an offshore financial centre. According to this article there are at least 7 socio economic factors that make a particular destination a popular tax haven. A few examples of popular tax havens are the Cayman Islands, Hong Kong, and the Isle of Man. “The existence of tax havens has many effects. At one level, the lower taxes or no taxes in one country put pressure on other countries for keeping their taxes low. This is good for taxpayers in the short term, but the secrecy and opacity associated with some of the tax havens may encourage money laundering or other illegal activities that can harm the world economy in the long term. The crackdown on tax evaders in some countries shows that taxpayers need to tread with caution.” Make sure you give to Caesar’s what is Caesar’s, but more importantly give God what is God’s.

https://www.entrepreneur.com/article/237746

  • “Small-business owners usually start a company because they have a passion for a particular product or service. However, people should not open a bakery just because they love baking cakes. If you love baking, get a job as a baker.” Remember that running a business requires many essential components.  Those components include having the right legal entity in place, having a good financial structure, having a clearly defined value system etc. As your business grows create margins to keep it running efficiently. If you’re building a business define why you’re doing it. “The first step for most entrepreneurs is to sell something. Put in place the minimum amount of infrastructure that you can get by with and focus on generating revenue. Many new businesses fail because they simply cannot generate enough revenue to sustain themselves. Test the viability of your business as quickly and as inexpensively as possible.” It’s important to keep your infrastructure as efficient as possible without cutting back on quality. As your business grows, you should start weighing your cost-benefit options. You have to start accounting for these options, because your business will reach its capacity. “For example, would the business be better off if you spent time putting entries into QuickBooks or if you hired someone to do that work and spent your time selling? You are in effect buying yourself more time that you can invest in other aspects of the business.” Time is fixed. There is only 24 hours to complete a set amount of work in day. Investors care about time value. Our Lord is a redeemer of lost time so make sure you Sabbath.

http://www.fool.com/retirement/general/2016/04/06/read-this-before-you-take-social-security-early.aspx

  • Before you take your Social Security benefits early make sure you’ve explored the benefits and consequences of your decision. This author points out three key points: you only have 12 months to change your mind, your decision can reduce someone else’s benefits, and there’s less incentive to wait than there used to be. This information is helpful, but in conclusion there is an advertisement at the bottom for a service that you may or may not need. Rather than recommend his last piece, I suggest you listen to the Lord and decide as He leads you. “Whether you turn to the right or to the left, your ears will hear a voice behind you saying, ‘This is the way, walk in it.’” (Isiah 30:21 NIV)

http://www.bankrate.com/finance/investing/creating-passive-income-1.aspx

  • “The idea of building wealth through passive income has understandable appeal, especially if you’re worried about being able to save enough from your work earnings to meet your retirement goals…Passive income includes regular earnings from a source other than an employer or contractor. The IRS says passive income can come from just 2 sources: rental income or a business in which an individual does not actively participate. Examples include book royalties and dividend-paying stocks. Investopedia defines passive income as “earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved.” Popular culture, however, defines it as “any money you earn while sitting on a beach sipping mojitos.” Financial coach and expert Todd Tresidder thinks it falls somewhere between the two, defining passive income as the money you earn from a project or investment after you’ve made an initial contribution of time or money.” It takes work to build a passive income generating asset. All things in this world operate under the principle of seed, time, and harvest. You have to be willing to put in the time to reap the harvest. This article provides 5 passive income strategies as an example: selling information products, rental income, affiliate marketing, peer to peer lending, and dividend yielding stocks. Each strategy requires diligent work, and I suggest you find a strategy that works for you, and seek the Lord. If you want to build wealth, build assets that generate passive income that is greater than your monthly expenses. If you were to lose your job today, do you have any passive income generating assets that can replace your income? The game Cashflow Classic simulates life with and without passive income. If you want to be wise walk with wise people.

Please let me know if you have any anything I can agree with you in prayer about, or if you’re in need of a financial check up.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

April 5, 2016

Below are the articles for the week with a short summary:
http://www.inc.com/sagelive/6-essentials-for-building-a-scalable-business.html

  • “To get from launch to limitless trajectory, entrepreneurs need to make the right moves to ensure that the business can scale at a sustainable pace, says Jim Canfield, CEO of Renaissance Executive Forums, a La Jolla, California-based membership organization for small to mid-sized businesses, focused on helping them grow. “That early stage is like the lift-off of the rocket. It’s going to be violent. It’s going to be loud. It’s going to be intense. The key is to get through it and create a successful orbit,” he says” Here are six important actions to take: look for bottlenecks, hire for the company you want to have, ask for feedback, embrace necessary change, implement systems, and build it as if you’re going to sell it. What I’m astonished by is the growth of our church. Obviously it is a mighty move of God, which supersedes all natural sense. In this article, I see the importance of being better together, the proper use of the Jethro principle, and the importance of order, because it will lead to increase.

https://www.entrepreneur.com/article/234712

  • “Warren Buffett has described writing as a key way of refining his thoughts (and that guy reads and thinks a whole lot). Richard Branson once said “my most essential possession is a standard-sized school notebook,” which he uses for regular writing.” “For instance, one form of expressive writing might be thinking about and writing out your goals in life—an activity that research has shown is beneficial for motivation.” Writing can lead to better thinking and communicating. Other key arguments are writing keeps you sharp with age, and writing leads to increased attitude. There are many further key points, and even a simple system that encourages regular writing. What’s the common denominator in thinking, talking, and writing? Words. Our words have power. Life and death is in the power of the tongue. God’s word does not return void. We as image bearers of the Lord, our words don’t return void either. Our words can become flesh too.

 

https://www.entrepreneur.com/article/272991

 

  • “Psychologist Elain Aron has studied this phenomenon extensively, and using MRI scans of highly sensitive people’s brains, she’s found that they experience sounds, feelings, and even the presence of other people much more intensely than the average person.” Here are 9 traits of a highly sensitive person: you think deeply, you’re detail-oriented, you take longer to reach decisions, you’re crushed by bad decisions, you’re emotionally reactive, you take criticism harshly, you work well in teams, you have great manners, and open offices drive you crazy. We are all uniquely and wonderfully made. The Lord has put his gifts in you that are best uncovered over time, through Step 3 of the Growth Track, and or as the Lord leads. In the end, the Lord does have a plan for your life and it’s important to seek Him to uncover it.

 

http://graphics.wsj.com/how-to-invest-in-real-estate/

 

  • Here’s a fun link. You use a graphic and it will suggest what type of real estate investment will bring you a good return based on your investment style and risk appetite. At the end my result was: “Buy the actual bricks and mortar. Purchase a one-family home, an apartment house, an office building, an industrial property like a warehouse or a retail establishment such as a strip mall or retail condo.”

At the end of the day remember: “Whether you turn to the right or to the left, your ears will hear a voice behind you saying, ‘This is the way, walk in it.’” (Isiah 30:21 NIV) Hope you have a good week. Look forward to hearing from all of you again. Please let me know if you have any anything I can agree with you about.

James Hawk

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”
Psalm 35:27-28 MSG

March 29, 2016

As a reminder the articles below are just my opinion and observation, and I recommend using guidance by the Lord, your own sound judgement, and or financial counsel if you make any investing decisions. Below are short summaries for this week’s articles:

http://www.bloomberg.com/gadfly/articles/2016-03-28/the-next-perfect-banking-storm

  • The next financial crisis could happen on January 1, 2018. There are two new rules slated to go into effect that will constrain lending ability and force banks to lend to only the best borrowers. The leverage ratio set by the Basel Committee on Banking Supervision and International Financial Reporting Standard No. 9, defined by the International Accounting Standards Board”. What these two rules will do is in essence remove the internal measures that banks have been using to assess risk, and force them to uniform under a standard. Businesses with lower revenues and higher leverage will need more capital from banks and with the requirement of having more in loan loss reserve, it’ll be harder for these businesses to get much needed capital. “It’s increasingly difficult for banks to help spur global expansion, no matter how low — or negative — benchmark rates are. But it’s about to get a lot tougher. Banks will tighten their belts and as they deleverage, so will the world. That means more bankruptcies, lay-offs and fewer jobs, which sounds very much like a recipe for a global crisis.” The opportunity appears for those businesses that don’t fit into banking standards but are able to lend funds to businesses and consumers. This article also highlights in my opinion the concept of paying yourself with interest. I’d prefer to borrow from myself and owe myself with interest. The borrower is slave to the lender.

http://www.marketwatch.com/story/this-is-even-more-attractive-than-chipotles-free-guacamole-and-chips-2016-03-23

  • By the author’s opinion, Chipotle is a great stock that can be bought at a seriously discounted price. He recommends buying a few shares and setting it aside. Other than the healthcare outbreaks, Chipotle had a sharp drop in first-quarter profits, and the chain had another norovirus outbreak in Boston. Here’s five reasons the author suggests Chipotle could be a good buy: people aren’t really concerned about the health issues at Chipotle, sales are already recovering, the big margin hit and first-quarter losses will reverse, Chipotle’s safety protocols seem to be working, and Chipotle has decent long-term prospects. By this article, Chipotle has the potential to operate 5,000 stores in the US and abroad, and they’re currently developing more restaurant concepts. In my opinion, when you invest in a stock be sure to follow the fundamentals of investing. Don’t invest emotionally, and be sure to have an exit strategy, if you’re not going to buy and hold forever.

http://ziglarvault.com/5-questions-ask-trying-find-someones-personality/

 

  • When investing in a business, you’re ultimately investing in the person in charge. If you have access to the direct person in charge, then you’re going to need to know the person. A business doesn’t sell widgets to inanimate objects. A business sells a product to people. A business is personal. At the end of the day the funds of a business will pay for the business owner’s personal needs. So the question is, what is in the person’s heart? At Church of the Highlands, we learn that we are better together, and that relationships are spiritual. A relationship should be more than surface deep. Here are five questions to ask that will help you learn about a person’s personality: How would you describe yourself? What is your biggest accomplishment? Have you read any good books lately? What is your dream job? and Who is your personal hero? In my opinion we should be investing earthly riches to be able invest in the heavenly riches.

Please let me know if you have any prayer requests.

March 22, 2016

Below are the articles for the week with a short summary:
http://www.thepennyhoarder.com/not-saving-for-retirement/

  • A study examined individuals in America between the ages of 31 and 62 and found that “Even the slightly-over-50% of households who did have retirement savings didn’t have very much: The median number is a terrifyingly low $5,000.” Don’t put off saving for retirement, and begin as soon as possible. If your work force offers a 401 K with matching bonus then take advantage of it, and find a way to cut unnecessary expenses. Here’s my argument if you’re already tithing you already have the inherent ability to save. If you already set aside the first portion to the Lord, then do the same process to save for your retirement.

http://www.investopedia.com/articles/investing/030916/ben-grahams-advice-reading-financial-statements.asp

  • Benjamin Graham is the founder of the concept of value investing, and his teachings have impacted many well-known investors such as Warren Buffet. The book referenced in this article is a small book but useful in understanding the financial statement, income statement and financials ratios. This article examines seven key points from the book: working capital ratio, current ratio, intangible assets, cash, notes payable, liquidation value and net current asset value, and margin of profit. I’ll mention two points of this article. The Working Capital ratio is calculated by subtracting current liabilities from current assets and this ratio shows if a company can pay its expenses in the near future. Margin of profit is calculated by dividing operating income by sales. This margin shows how efficiently a company is operating. When analyzing financial statements, the key figures to look for in determining the strength of a company are its earning power, asset value, how the company it compares to its industry and the company’s earnings trends over a number of years. The goal of “The Interpretation of Financial Statements” is to show the investor how to assess these factors, under the objective of achieving intelligent and reasonable results.”

http://www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.asp

Credit scores are a measure of past behavior. One of the major factors with your score is how much revolving credit you have vs how much you’re using. The smaller the percentage, the better your score will be. Ideally the percentage is 30% or lower. “To boost your score, “pay down your balances, and keep those balances low,” says Pamela Banks, senior policy counsel for Consumers Union. What you might not know: Even if you pay balances in full every month, you still could have a higher utilization ratio than you’d expect. That’s because some issuers use the balance on your statement as the one reported to the bureau. Even if you’re paying balances in full every month, your credit score will still consider your monthly balances.” Having multiple balances across many cards may hurt your score. The longer your history of paying debt on time, the better it is for your score. When you apply for credit it can cause a dip in your score that lasts a year. There is a system that calculates how the amount of credit inquiries will affect your score. If you plan on making a big purchase, then keep paying your bills on time to protect your score. “You’re entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for free every 12 months through AnnualCreditReport.com.”
Hope you have a good week. Please let contact me if you have any prayer requests.

James Hawk

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”
Psalm 35:27-28 MSG

“He is like a man building a house, who dug and went down deep and laid a foundation upon the rock; and when a flood arose, the torrent broke against that house and could not shake or move it, because it had been securely built or founded on a rock.”

Luke 6:48 AMP