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2011
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February(126)
- All about Toyota Mirrors: Functions, Importance an...
- A Little Rubber Hose--Your Life Depends On It!
- Airbag SDM ' Black Box ' Crash Data Retrieval Info...
- A Guide to U-Haul Trailer Hitches -
- Aftermarket, OEM, OE Auto Parts Explained
- Aftermarket Auto Lights to Match Ultimate Driving ...
- Affordable Spoilers and Performance Parts availabl...
- Add style to your car by adding a new Rim and Tire!
- Add-on Accessories To Enhance Your Car
- A Complete Online Store Features Premium Class Die...
- 2007 Lexus GS 450h: Full Hybrid Technology Revs Up...
- 2006 Toyota Tacoma
- 2006 Pontiac G6 Coupe Redefines Performance; Is Fu...
- 2006 Mercury Mariner Hybrid and Ford Performance P...
- 2006 Honda Civic Si: Automotive Innovation at its ...
- 2006 Chevrolet Trailblazer SS Plus the Chevrolet P...
- 2006 Chevrolet Corvette: GM's Fastest and Most Pow...
- 2005 VOLVO S40: Can now be Accentuated with Volvo ...
- 2005 Mitsubishi Outlander Reinforced Safety with M...
- 2005 Honda Odyssey: Honda Factory Replacement Part...
- 2005 Honda Insight: America's First Hybrid and Fue...
- 2005 Ford Mercury Montego: Best Equipped With Supe...
- 2005 Ford Five Hundred Complemented with Top Notch...
- 2005 BMW M5 Performance and Luxury at Its best at ...
- 18 Tips for Saving Money on Gasoline
- 18 Simple Ways To Save Money On Your Car
- 10 Ways To Lower Your Auto Insurance
- 10 Tips For Saving Cash On Your Gas
- 10 Tips For Getting The Best Deal On A New or Used...
- 7 Things to Know when Renting a Car
- 5 Ways to Find Volvo Parts
- 5 Tips On Making Your Car More Fuel Efficient
- 5 Tips about BMW Accessories
- 5 Things You Should Know Before Buying a Car Cover
- 5 Steps To Buying Your Car
- 5 Steps to A Great Rental Car Experience
- 4 Tips To Saving A Bundle At Your Next Car Auction
- Will Your Cell Phone Reach 911 in an Emergency?
- Which Way Are Mobile Phone Games Heading?
- Where Did Those Cell Phones Come From?
- What is Location Tracking?
- Using Spy Tools to Detect Infidelity
- Using Spy Gadgets to Keep Tabs on Your Teens
- Tones For Your Phones
- The Usefulness of a GPS Tracker
- The Razr Family is Expanding! Razr V3i, Pink Razr,...
- The Powerful Little GPS Tracking Device
- The History Of Cellphones; Telefonos Moviles Just ...
- The Growth Of Cellphones
- Test Fidelity with a Spy Phone
- Telephone Bugs That Call You
- Spy Matrix Spy Phone: The Ultimate Spy Cell Phone
- Spy Bugs to Listen In
- Satellite Phones vs. Cell Phones (Which One is Rig...
- Satellite Communication Technology Development
- Ringtones: What's the Point?
- Ringtones Provide Fashion Statement for Women
- Ringtones, A Phones Personality
- Ringtone Market Hits The Jackpot With Teen Cell Ph...
- Protect Yourself from Cell Phone Bugs
- Phone Taps That Allow You to Listen to Both Ends o...
- Personal Tracking Devices In Cell Phones?
- Panasonic Cell Phone Accessories - Working For Eve...
- Nextel Cell Phones - How Good Are They
- New Cell Phones, Latest Mobile Phone
- Mobile SMS Basics
- LG Cell Phones - Made To Last
- Latin Ringtones Mean Dinero for Ringtone Providers
- Keep Your Investment Safe With Vehicle Tracking
- Keeping Tabs on Your Teen with GPS Tracking
- How To Buy a Mobile Phone Handset
- How Does SMS Service Actually Work?
- High Tech Spy Surveillance Equipment
- GPS Security Functionality
- Free Ringtones For Your Cell Phone
- Finding The Right Cell Phone
- Denso Cell Phone Accessories - For Your Phone
- Choosing a Cell Phone Plan
- Choosing a Cell Phone Part II
- Choosing a Cell Phone
- Choosing a Business Cell Phone and Plan Quick and ...
- Cell Phones, Mobile Phone
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- Cell Phone Listening Devices Keep Tabs on Teens
- Cell Phone Deals, Mobile Phone Plan
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- Cell Phone Antenna May Pose Health Hazards
- Cell Phone Accessories - Check Them Out
- Buy Cell Phones, Best Mobile Phone
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- Avoiding Phone Taps
- Audiovox Cell Phone Accessories - Cheap Online
- At&T Wireless - What Have They To Offer
- All You Ever Wanted To Know About Cell Phone Batte...
- Alltel Wireless Cell Phones - At The Cutting Edge
- 12 Practical Uses of GPS for Everyday People
- 10 Questions About Cellular Phones Answered
- Where to Find Cheap Brochure Printing
- What Goes Around Comes Around
Monday, February 7, 2011
Are You Wealthy Yet?
by: Al Walker
Here's a real simple way to become wealthy.
Marty and his wife live at home with their 2 children. They own a 3 bedroom house in a middle class neighborhood and try to live within their means. Marty works full time in the Printing Industry, while his wife is in charge of the home and looking after the children.
They've accumulated some credit card debt and have 2 years left on a car loan. They try to stay out of debt as much as possible and together they've managed to contribute a total of $32,000 to their own Retirement Fund. It is kept in term deposits receiving 5% interest annually.
Two years prior, the couple bought an older house that they fixed-up and rent out for $850 a month. After paying the mortgage and taxes $300 is left over each month. This goes into their savings account each month.
At Christmas, the family bought themselves a new computer and decided to start a home-based business. Things started out fairly slowly but after 8 months they were receiving a steady check of $400 a month which also goes into their savings account. This part-time business will continue to grow with the effort they dedicate to it.
This business also offers them some very lucrative tax savings. By taking advantage of these Tax Strategies they are able to save an additional $300 a month on tax that was normally deducted from Marty's paycheck at work. This monthly income is also added to the couple's savings.
Marty has just begun writing an E-book about his "production expertise" at work. His plan is to market this book on the internet for profit
Every Sunday the couple takes a drive to stay familiar with the Real Estate market in their area. They're looking for another property, a "handyman's special" to fix-up and rent out. They have saved enough for a down payment and their credit with the bank is well established.
The family's total monthly expenses are $2000. Now, here's the question:
Does Marty's family have Wealth yet?
To answer this question properly you first have to understand exactly what "wealth" means.You achieve wealth when: *Your Passive Income is the same or greater than your Expenses.* So what does this mean?
First, what is Passive Income?
Passive Income is money that you are paid over and over again for work that you only do once. (This excludes using a gun or finding cash on the street) Some examples of this would be royalties for writing a book or a song, commissions that you receive for sales that others make and interest from bank savings or dividends on stocks/options that you own.
Second, what Expenses are we talking about? This one's a little easier to understand. Expenses are the total amount it takes to run your household and your life. This includes, rent, mortgage payments, car insurance, food, credit card and loan payments, etc………
Let's look at Marty's family a little closer…………. Does Marty have any Passive Income? Yes he does. Marty's salary is not considered Passive Income. That's because he has to work 40 hours a week just to get the basic amount. If Marty doesn't go to work then he doesn't get paid. His overtime also doesn't count as Passive Income.
The interest from their Retirement Fund does though. It's paid to him month after month as long as it's left in that account. So, $32,000 at 5% is $1600 a year. Divided by 12 months equals $133 a month in interest. Ok…..what else?
After the mortgage and expenses are paid with the rent money they receive on their rental property they are left with $300 every month. This is Passive Income. Just as long as the tenant stays and pays his monthly rent.
How bout that $400 from the home-based business and the Tax savings. Is this Passive Income? Well, Marty's wife made sure that she chose a company where she could sign new business accounts and get paid commissions on those accounts over and over again. They've made a 5 year commitment to build this business part-time. So yes, both the $400 and the $300 in Tax Savings would apply as Passive Income. Let's add up Marty's total Passive Income.
Interest $166.00 Rental Income $300.00 Home Based Business$400.00 Tax Savings $300.00 Total $1166.00
Not including Marty's salary from work, his family's Passive Income is $1166.00. Not bad. Every month this amount flows into the family's bank account, regardless of anything else they do.
We said that Marty's monthly expenses total $2000.00 a month. And we also said………… You have Wealth when: *Your Passive Income is the same or greater than your Expenses.*
$2000 Expenses subtract $1166 Passive Income = $834 monthly balance needed to have Wealth.
Marty's Expenses are still more than their Passive Income so they're not wealthy just yet. But they're well over half-way there. With this kind of knowledge a family can know exactly where to focus their financial attention.
Maybe when Marty writes that ebook he could get some sales and royalties from it. Also the new Real Estate and more work on their Home-based business would certainly help them to attain more Passive Income. Once Marty's Passive Income is more than the family's Expenses then Marty could start to have much more freedom. He may even choose to quit his job and continue developing his Passive Income streams.
Take a look at your own finances. What are your monthly expenses? Do you have more Passive Income than your Expenses? If you do Congratulations. You're Wealthy!!! If you don't. It's time to get started and start adding Passive Income from other areas as soon as possible.
When you truly understand this principle, you'll be well on your way to becoming wealthy
About the author:
Al Walker, makes it easy to launch a successful online business and rapidly build your wealth to a six-figure income. Learn the 5 essential keys to online success. To receive your free 4-part mini-course visit: http://www.businessprogramreviews.com
Here's a real simple way to become wealthy.
Marty and his wife live at home with their 2 children. They own a 3 bedroom house in a middle class neighborhood and try to live within their means. Marty works full time in the Printing Industry, while his wife is in charge of the home and looking after the children.
They've accumulated some credit card debt and have 2 years left on a car loan. They try to stay out of debt as much as possible and together they've managed to contribute a total of $32,000 to their own Retirement Fund. It is kept in term deposits receiving 5% interest annually.
Two years prior, the couple bought an older house that they fixed-up and rent out for $850 a month. After paying the mortgage and taxes $300 is left over each month. This goes into their savings account each month.
At Christmas, the family bought themselves a new computer and decided to start a home-based business. Things started out fairly slowly but after 8 months they were receiving a steady check of $400 a month which also goes into their savings account. This part-time business will continue to grow with the effort they dedicate to it.
This business also offers them some very lucrative tax savings. By taking advantage of these Tax Strategies they are able to save an additional $300 a month on tax that was normally deducted from Marty's paycheck at work. This monthly income is also added to the couple's savings.
Marty has just begun writing an E-book about his "production expertise" at work. His plan is to market this book on the internet for profit
Every Sunday the couple takes a drive to stay familiar with the Real Estate market in their area. They're looking for another property, a "handyman's special" to fix-up and rent out. They have saved enough for a down payment and their credit with the bank is well established.
The family's total monthly expenses are $2000. Now, here's the question:
Does Marty's family have Wealth yet?
To answer this question properly you first have to understand exactly what "wealth" means.You achieve wealth when: *Your Passive Income is the same or greater than your Expenses.* So what does this mean?
First, what is Passive Income?
Passive Income is money that you are paid over and over again for work that you only do once. (This excludes using a gun or finding cash on the street) Some examples of this would be royalties for writing a book or a song, commissions that you receive for sales that others make and interest from bank savings or dividends on stocks/options that you own.
Second, what Expenses are we talking about? This one's a little easier to understand. Expenses are the total amount it takes to run your household and your life. This includes, rent, mortgage payments, car insurance, food, credit card and loan payments, etc………
Let's look at Marty's family a little closer…………. Does Marty have any Passive Income? Yes he does. Marty's salary is not considered Passive Income. That's because he has to work 40 hours a week just to get the basic amount. If Marty doesn't go to work then he doesn't get paid. His overtime also doesn't count as Passive Income.
The interest from their Retirement Fund does though. It's paid to him month after month as long as it's left in that account. So, $32,000 at 5% is $1600 a year. Divided by 12 months equals $133 a month in interest. Ok…..what else?
After the mortgage and expenses are paid with the rent money they receive on their rental property they are left with $300 every month. This is Passive Income. Just as long as the tenant stays and pays his monthly rent.
How bout that $400 from the home-based business and the Tax savings. Is this Passive Income? Well, Marty's wife made sure that she chose a company where she could sign new business accounts and get paid commissions on those accounts over and over again. They've made a 5 year commitment to build this business part-time. So yes, both the $400 and the $300 in Tax Savings would apply as Passive Income. Let's add up Marty's total Passive Income.
Interest $166.00 Rental Income $300.00 Home Based Business$400.00 Tax Savings $300.00 Total $1166.00
Not including Marty's salary from work, his family's Passive Income is $1166.00. Not bad. Every month this amount flows into the family's bank account, regardless of anything else they do.
We said that Marty's monthly expenses total $2000.00 a month. And we also said………… You have Wealth when: *Your Passive Income is the same or greater than your Expenses.*
$2000 Expenses subtract $1166 Passive Income = $834 monthly balance needed to have Wealth.
Marty's Expenses are still more than their Passive Income so they're not wealthy just yet. But they're well over half-way there. With this kind of knowledge a family can know exactly where to focus their financial attention.
Maybe when Marty writes that ebook he could get some sales and royalties from it. Also the new Real Estate and more work on their Home-based business would certainly help them to attain more Passive Income. Once Marty's Passive Income is more than the family's Expenses then Marty could start to have much more freedom. He may even choose to quit his job and continue developing his Passive Income streams.
Take a look at your own finances. What are your monthly expenses? Do you have more Passive Income than your Expenses? If you do Congratulations. You're Wealthy!!! If you don't. It's time to get started and start adding Passive Income from other areas as soon as possible.
When you truly understand this principle, you'll be well on your way to becoming wealthy
About the author:
Al Walker, makes it easy to launch a successful online business and rapidly build your wealth to a six-figure income. Learn the 5 essential keys to online success. To receive your free 4-part mini-course visit: http://www.businessprogramreviews.com
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