Organizing Your Finances: - Show Me MY Money: What You're Worth or * net * Worth
Organizing Your Finances: - Show Me MY Money: What You're Worth or * net * Worth by: Benjamin Franklin once said, * Time is money *. I think he wanted one toadd up how much time they spent on a particular task or job and how muchmoney they might have been wasting. I do an exercise with my clients to help them discover what their per minuteworth is to enable them to see how much money they might be losing becausethey are disorganized. Such as, if you are doing a non-income producingactivity for 15 minutes, you can see how your money is being spent! It's a very simple calculation. Your Per Minute Worth Calculation Yearly income divided by 52 weeks = weekly incomeWeekly Income divided by 40 hours (or total hours you work per week) =hourly incomeHourly income divided by 60 = Your Per Minute Worth Before you begin to OverHall and Balance your financial area, you need tofind out your net worth, and your spending habits.
This will help assistyou later with your budget, payoffs, or long-term savings. It will alsohelp in guiding you with such things as your protection, investment, incometax, retirement, and estate planning. Your total net worth is your total assets (what you own or already havesaved) minus your total liabilities (what you owe out). I'm not going totell you this is as easy as figuring out your per minute worth because it'snot! It will take time and a commitment from you to determine your networth. TIP: I have found the best time to do this exercise is when you are payingyour bills.
At that time you usually have the information needed to help youcalculate your net worth. So, if it usually takes you an hour to pay yourbills, tack on at least an extra hour this month for this exercise. For yourconvenience, print out and use the net worth form below. You will bewriting in your totals for each line. For instance, if you have two savingsaccounts, total your balances first and then write in the total next toSavings Account.
ASSETSCash Reserve Totals- Certificates of Deposit:Checking Account:Credit Union Account:Money Market Account:Savings Account: Investment Totals- 401(k):Bonds:Mutual Funds:Stocks: Personal Totals- Art:Boat:Car(s):Furnishings:Jewelry:Other: Real Estate Totals- Home:Second Home/Vacation Home:Other Real Estate: TOTAL ASSETS: $ LIABILITIES Short-term Debt Totals- Credit Card Balances:Current Bills Owed:Loans w erms of six years or less:Taxes: Long-term Debt Totals- Loans w erms of seven years or more:Mortgage(s): TOTAL LIBILITIES: $ Congratulations! You did it! * Drum roll * Please! TOTAL ASSETS: $- (minus) TOTAL LIABILITIES: $YOUR TOTAL NET WORTH = $ Now see if your net worth falls under A., B., or C. below, and see how youcan begin to bring some balance back to this area of your life. A. If your total net worth is half or less of your annual income or you havea negative number you need to REALLY * OverHall * and Balance your financialarea! ~~ Pay off some/all debt~~ Cut back on spending~~ Stop charging~~ Start a savings plan B. If your total net worth is more than half your annual income but lessthan a few years' income you need to * OverHall * and Balance your financialarea.
~~ If you're 40 or under and own a home, you're okay for now
Do you have enough fixed assets (usually long-term; bonds are an example)to provide or produce additional income? 4. Do you have enough equity assets (short or long-term; real estate andstocks are examples) for growth and income? To answer those questions, you need to know what your family and your needsand goals are and then plan how you are going to meet them. Quick Tips to INCREASE Your Assets: 1. Maximize your 401(k) contribution2. Start investing3.
Get automatic deduction/deposit from paycheck to savings each pay period. Quick Tips to DECREASE Your Liabilities: Credit Cards1. If you have to use a credit card, use only one major card2. Pay more than the minimum payment on the credit card with the highestinterest rate3. Stop charging to the highest interest rate credit card4.
Get rid of department store credit cards5. Don't apply for anymore credit cards Mortgage(s)1. Pay a little extra each month towards the PRINCIPAL of your mortgagepayment2. Drop your PMI (Private Mortgage Insurance) when your home equity exceeds20% of your home's value (talk to your mortgage lender)3. Refinance mortgage at a lower interest rate4.
Refinance mortgage at a lower interest rate AND finance for 15 or 20years instead of the usual 30 years.5. Pay half your monthly mortgage payment every two weeks (talk to yourlender)Smiles, not Piles,The Organizing Wizard, , is a ProfessionalOrganizer, Speaker, and Author. She is the owner ofOverHall Consulting, and Organizing By Phone. Subscribe toher FREE organizing newsletter athttp://www.overhall.com/newsletter.htm or visither web site at http://www.overhall.com Copyright 2000 by OverHall ConsultingP.O. Box 263, Port Republic, MD 20676All Rights Reserved.
Permission is granted to reproduce, copy, or distribute so long as this copyright notice and full information about contacting the author is attached..
Some Truth About Credit
Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. No matter who you are or what type of business you are considering, credit is a vital component to be considered when developing your business idea and business plan.Your credit history and status will always be a factor when lenders consider financing your entrepreneurial endeavor. No matter what type of loan, even loans for those who may struggle to acquire traditional financing, such as the SBA funded micro loan, will consider credit as one of the underwriting factors.Because your credit history and status greatly impact your bankability and ability to acquire business funding, it behooves you to spend a significant amount of time developing and creating positive credit status and repairing poor credit history.== personal note == When I got married I gifted my wife with a huge debt load and a toilet level credit status. Through diligence...
Some Truth About Credit
Refinance > Some Truth About Credit
Old Merchants Mortgage Bankers Expands Headquarters and Adds Personnel
Lake Success, NY (ContentDesk) May 21, 2006 -- At a time when other mortgage lenders are downsizing, Old Merchants Mortgage Bankers customer base continues to grow.
Due to our steady growth in loan volume, we have continued to add new loan officers to keep up with increased demand, says Scott Cooper, President of Old Merchants.
In these changing times for the mortgage industry, I see a lot of opportunity for well capitalized companies that focus on the non-prime or sub-prime customer. Old Merchants Mortgage Bankers delivers less expensive loans to their customers than the competition.
By going direct to Wall Street, Cooper explains.
Most mortgage bankers go to third party investor sources for their loans.
Due to Old Merchants Mortgage Bankers growing loan volume, we bypass the middlemen and go directly to the market.
Our direct approach allows us to avoid third party mark-ups and provide better pricing and overall savings to...
Refinance > Old Merchants Mortgage Bankers Expands Headquarters and Adds Personnel
Online Debt Consolidation Applications
People who intend to reduce their financial burdens by
consolidating their multiple loans into one, find online debt consolidation services very useful. A mere click of the mouse opens various options for an individual to amalgamate different loans into a single loan. Instead of making various payments, debt consolidation ensures a single monthly payment against all outstanding debt.
During the online application process, all relevant information on debt consolidation loans and lenders is given. The process is short and simple.
Once the online application is made, several lenders will contact an individual within 24 hours. Professional guidance will be provided on consolidating high interest debts into one low monthly payment. Quotes are generally furnished free. An individual has to simply evaluate the proposal and select the lender according to his requirements. One can steer clear of numerous investigations on one's credit report by making an...
Online Debt Consolidation Applications
Refinance > Online Debt Consolidation Applications
Online Mortgage Loan Companies Are Convenient
There are many reasons to use the internet to take care of your mortgage loan needs. Online mortgage companies can give you quick answers to your mortgage application and can often times give you an answer of whether or not you have been pre-approved within 24-48 hours after you submit your mortgage application. Online mortgage companies usually do not pull your credit on the initial application which makes it possible to apply to multiple lenders and get an idea of what they can do for you, without dropping your credit score. There are many online mortgage lenders who will take your application and submit it to hundreds of lenders and then provide you with the 4 best offers. This is a great way to get the lowest rates and terms you can possibly get, without having to do all of that calling around yourself.
Often, the lenders that send you offers will call you to see if the loan offer you received is what you are looking for. That is a good time to ask any questions you might...
Online Mortgage Loan Companies Are Convenient
Refinance > Online Mortgage Loan Companies Are Convenient