FINANCIAL FREEDOM

Is your house a assit or a liability?

Most people have a dream of one day owning their own house.
The story normally goes something like this.Boy meats girl boy likes girl and then they move in with one another.They then realize that two can live as cheaply as one.But the house,apartment is small and cramped.They start to save money to buy their dream house and so that they can have kids,start a family.

They then start to focus on their careers and very soon their income starts to increase.They then decide to buy their dream,house,but a new house needs new furniture and new appliances.Then they buy a new car,it must be new,the Jonges has a new car.They then have more liability's,mortgage debt,consumer debt.The next thing that happens is that they have a kid.They work harder to pay the bills,but more money means more expenses.They get a credit card in the mail They use it ,it's maxed out.

Then one day the phone rings it is a loan company telling them that their greatest assit"their house"has appreciated in value.They offer them a "bill consolidation"loan,because their credit is so good.They also inform them that the intelligent thing to do is to clear off the high interest consumer debt by paying off their credit card.

They decide do it and pay off those high-interest credit cards.They breath a sight of relief.Their credit cards are paid off as is their consumer debt.These are now folded into their home mortgage.There debt has gone down,because their debt has been extended over 30 years.The fact that the items will cost them four times the original price does not seem to matter.The loan company has told them it is the smart thing to do.

Then their friends call and ask if they want to go to the mall,their are a lot of specials.They decide to go,but say to themselves they will just have a look,but they take their clean credit card with them just in case.Then the whole story starts again.

Most people think that their own house is a assit,but a assit is anything that puts money into your pocket.a House cost you money every month in the form of maintenance expenses,property tax and mortgage payments.So your house is not a assit.

Most people will not agree with this,because owning their own home is their dream and their biggest investment.

Here are some food for thought.
1]You will always have to pay property tax even when your house is paid off.
2]You work all your live for a house you will never own.Most people buy a new house every few years,every time starting a new 30 year loan.
3]Houses do not always go up in value.
4]The biggest loss of all is that of missed opportunities.When all your money is tied up in your house and a opportunity comes knocking.One where you can buy a assit that can generate an income.You cannot take advantage of it.That is the biggest loss of all.

In closing.
Yes everybody wants a house of their own,but to buy a house that is to expensive and prevent you from starting a investment portfolio,will influence you in at least the following ways.
1]Loss of education,because you do not have money to invest.You never learn how to invest and this can be the difference between being poor and being rich.
2]Lose of time.Time during which other assits could have grown in value.
3]Loss of additional capital.That could have been used to buy more assits,assits that could put more money into your pocket.

Yes buy a house ,but remember what is a assit and what is a liability and assits will make you rich.

DO YOU WANT TO HAVE A LIVE OF ABUNDANCE.THEN READ THIS.

Next on riches to you:Focusing on your assits will make you financial free.

BUSINESS OPPERTUNITY[HOW TO]

How to be certain you get the best deal when you buy a business?
To buy your own business is the first step to becoming financially free,rich.There are some pitfalls and aspects you have to consider,or take into account before you buy any business.

What kind of business?
This is the first and probably the most important question you must ask yourself.Many people think because the business are being successfully run by the present owner that when they buy it,it will also be profitable for them.This in many cases is not the situation and the business does not do well or even goes under.The number one reason for this is that the new owners interests and abilities does not suite the business he bought.

There are some questions you can ask yourself to see if the business you want to buy suits your interests and abilities.
1]Does the product of the business excite you and are you really interested in the business?
2]What is it in the present owners personality that makes the business successful and do you have the personality traits?
3]What makes the business grow?[factors]Selling skills,financial management,more capital are these your proven strong points?

Financial history.
Never buy any business if you can not check it's financial history.You must check at least the last 3 years.Do not listen to what the present owner tells you.Look and see what is reflected in the financial statements.

The price.
Business are almost always over priced.The purpose of buying a business is to make good investment.a Business is only a good investment if you can get your money back in less than two years.[The previous years profit before the owners salary is 100 000 dollars.The maximum price for that business must not exceed 200 000 dollars.If the business has a strong year on year growth of more than 30%.The price can be raised to 3.5 times the previous years profit.

The contract.
The following guidelines can be used to conclude a contract that are healthy and protects you.1]Method of payment.Never pay the full purchase price all in one.One third of the price should be payed in instalments.This shows that the owner believes that the business are successful and that he will be able to get the rest of his money.
2]Support from the seller.The seller must be contractually bound to assist you for at least 3 months.
3]Stock.The contract must make prevision for an adjustment in the purchase prise,if the stock is less than the stipulated amount.
4]Debtors.When you take over debtors there must be a agreement,that where debt are not collected by a certain time the purchase price will be reduced accordingly.
5]Employees.Do not bind yourself to keep all the employees,mention that you will attempt to do so.
6]Claims.The seller must guarantee that there are no outstanding claims against the business that are not mentioned in the contract.
7]Restraint of trade.The seller must agree not to trade personally,or by means of another person in competition with you.
8]Contract breach.If there is a breach in the conditions of the contract.The contract must stipulate that you have the right to cancel the purchase,receive your money back and claim damages.
9]Cost.The contract must stipulate who will pay legal fees and agent commissions.

These points mentioned are the most important factors you must take into consideration,or that has to be present before u buy a business.

BUSINESS TOOLS AND TIPS

How to prevent internal theft in your business?
1}When appointing new personnel in your financial department a thorough background check should be done.

2}Con salt your insurance broker to determine what requirements you should ad hear to before hiring some one.

3}You must try to be aware of your employees financial situation.

4}Be wary of your employees who out of the blue have a higher living standard than his circumstances would permit.

5}Regularly have the business's books audited or check them yourself.

6}Keep your checkbook with you.

7}Do not sign checks in advance.

8}Appoint a manager you can trust to have control over your employees if you are not able to do it yourself.

EVERY SUCCESSFUL BUSINESS HAS ONE.DOES YOURS