Momentum Newsletter Apr 2009 Issue 4 Vol. 4
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In This Issue
  • Shari's Introduction 
  • Whose's Life Plan Are You Following?
  • Pam's Corner - Real Estate Investing
  • Credit Scores?
Shari's Introduction
December 21, 2012 - The World Ends!

Perhaps you have heard this prediction that the world will end on December 21, 2012. As the story goes, ancient Mayan calendars predict that this is the date that the world as we know it will end. This is pure speculation, and whether it be a nuclear holocaust or dramatic climate shift, vary according to the interpretation, but there is a growing segment of the population that believes some version of the apocalypse will occur on this specific date. There are even survivalist groups both in the US and Canada that have already begun hunkering down and preparing for the big day. 
 
So what do you think when you see this headline? Do you simply dismiss it or does it cause you concern? Or are you the type of person who does not take any headline at face value and analyzes why the story was created in the first place?
 
Fear is a common tool in creating stories that draw you in. The economic headlines over the last several months have been no different, and some version of an "economic crisis" has been dominating the headlines for several months.
 
But what do these headlines really mean? Like the Mayan headline, do you simply dismiss them or do they cause you panic? Or are you analyzing what the headline and story really mean, and, more importantly, what effect they have on your business. When you see "Record Foreclosures" in any headline, do you dismiss real estate as a useable strategy or do you see opportunity? When you see "Markets in Record Plunge," do you panic or do you analyze it and adjust your trading accordingly?
 
Knowledge is what we need to create opportunity and financial gain. This is why in many respects, knowledge is the new money in today's investing world.
 
What did you learn about money in school or from your parents?  Whether we are rich or poor, educated or uneducated, child or adult, retired or working, we all use money. Like it or not, money has a tremendous impact on our lives in today's world. 
 
This is why I became affiliated with MoneyMinding.  moneyminding
MoneyMinding is about empowering financial possibilities in the context of solid financial planning strategies.
 
The principles and strategies are universal and enable you to start from wherever you are today financially and follow the same easy revolving steps:
 
* Be grateful for where you are. Enjoy the moment. The past is gone, the future hasn't arrived. Where you are today is exactly where you are supposed to be.

 
* Know where you are going tomorrow and what your priorities in life are today.

 
* Define exactly where you are today.

 
* Implement the systems necessary to fill the gap between where you are today and where you are headed (banking, record keeping, time to learn, monitor and implement ideas, strategies and systems).

 
* Develop saving and giving habits. Always take care of these details first.

 
* Ensure your income will provide for day-to-day expenses including a sufficient savings and giving component.

 
* Seek advice and develop relationships with professional advisors (bankers, insurance agents, bookkeepers, accountants, investment advisors, financial planners, lawyers).

 
* Ensure adequate insurance and emergency funds are in place, including up-to-date wills and power of attorney.

 
* Develop wise credit habits and pay down existing debt.

 
* Invest in assets to produce income (real estate, businesses, income stocks).

 
* Establish investments for long term growth and financial independence.

 
* Diversify with short term, or more volatile investments.

 
MoneyMinding is about possibilities, not sacrifice; not save more; get higher returns or reduce your expenses. It puts you in control and in the centre of your financial picture. It guarantees you results beyond the box!!

Here is a link to a recording of my interview with Tracy Piercy - CEO of MoneyMinding.
 
I have also included an article about credit this month - another key to success that knowledge is power - you need to be aware of how to keep your credit healthy.
Happy Spring!     
 
   

Whose Life Plan are You Following Anyway?
Whose life plan are you following?
 

 "If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you - not much." ~ Jim Rohn

Do you have a plan? Do you know what your destination is
and why you want to get there? If not you are probably living according to the plans of others. Don't wait for someone else to save you. Save yourself. Is it hard work? YES! But you are used to hard work. If it has been for someone else, can't you work just as hard for yourself? It's time to start developing a plan towards your goals.

The first step is to take an honest and objective look at where you are now and what you have done in the past. This is not a time to beat yourself up. Where you are now is where you are supposed to be based on what you have done so far. It's okay. You can reflect on the habits you have now, your personality and one of the biggest influences - your up bringing. Everything has affected the choices you have made so far.
 
So accept who you are, what you have done so far, and find ways to capitalize on your strengths and weaknesses. 

The next step is to have some goals - as Brian Tracy says; "Ink what you think!" 

You really need to define your dreams and write them down, with compelling reasons 'why' you want to get there. One of the reasons people don't set goals is because they don't know how to do it, and perhaps the most important reason of all - is the fear of failure. In fact, the fear of failure is probably the greatest single obstacle to success in adult life. In reality, it is almost impossible to succeed without failing. Failure is an indispensable prerequisite for success. All great success is preceded by great failure.

Babe Ruth holds the record for the most strike-outs and the record for the most home runs.

For some people these are trying times. For those who can think creatively and solve problems, these times can create wonderful opportunities. So save yourself. In this global economic crisis it has been, if nothing else a "wake up call" for people to take financial matters into their own hands - to stop depending on the "experts" to do what they think is best for your money. Don't let fear and uncertainty stop in you in your tracks.

In my experience, my clients do not have financial dreams and goals, and shoot for financial success. They want wealth management and help to make plans to enjoy their lifestyle, help their families, provide for their future and create comfort towards the goal of financial independence.
 "Wealth is about your ability to do what you want, when and how you want to do it."
Look around and you will see that all achievement is the triumph of persistence. You will see men and women everywhere who are struggling with and overcoming adversities in order to accomplish something that is important to them. And so can you!
 
Pam's Corner
 
Pam's Real Estate Investment Corner
 
 
 
Using the Bank's Money to Build Wealth

So here is how it usually works. It is a very simple system:
We put our money into the bank in our Savings and Checking Accounts, GIC's, Term Deposits, and other bank products and they pay us interest to use our money:

* 0% to 1% Saving or Checking Accounts
* 2% to 4%, GIC's, Term Deposits
 
They may pay a little more if we sign a contract to keep the money invested for a certain term, usually two to five years. Then they lend our money back to us in loans, mortgages and credit cards for which they charge:
 
* 4% to 7% (current rates for varying types of mortgages)
* 7% to 10% car and other types of consumer credit loans
* 9% to 19.99% credit cards
 
The margin between the differing rates is how they make their money. So for example: say they pay you 4% on a Term Deposit and then charge you 12% on your bank credit card - they make a 300% profit. It is a safe, proven system and it makes a lot of money - for the banks.
But here is the good news. This same system can work for us too. Same rules - perfectly legal.
 
Say you own your own home or you have equity in your home; the bank will allow you to take up to 75% of the equity (based on market value) out of your home and write you a cheque. You do not pay taxes on this because it is a loan. So, if you own a home worth $400,000 the bank will allow you to use up to $300,000 as you wish and you just pay the interest. At today's rates this is great news for you because that means you have access to large amounts of cash at unprecedented low rates. Right now we have Line of Credit rates as low as 2.25%!

So let's say you borrow $100,000 of your home equity at 2.5% and you invest it in Real Estate that will return 12.5% per annum (yes, this is easy to do - I currently have two properties that are estimated to return 13% and 14% per annum*) - you now are doing what the banks do - putting borrowed money to work and earning a whopping 500% profit.
 
 
Something to think about isn't it? This is what the rich do all the time - they use the bank's money to get even richer. And we can do it too!
 
* For more detailed information on how you can benefit from leveraging your home equity into a Real Estate Investment please contact me.
 
Recommended Reading:
Rich Dad's Secrets Of Wealth by Robert Kiyosaki

Join us to play the Cash Flow Game 
Come and learn how to use investing principles to get out of the Rat Race and onto the Fast Track in a fun and relaxed environment. Next game: Saturday May 2nd , 2:00 pm at the Lighthouse Bistro on the Waterfront, please RSVP to address below by Monday April 27th
 

Seize The Day Real Estate Investments 
...building dreams together                                            
 
Pam Moreside
(250) 729-1411

Credit Score?
  
If you have ever taken out a loan, used a credit card or taken advantage of a debt"buy now, pay later" offer, you will have a credit history.
Information is sent about whether or not you make your payments on time to a credit-reporting agency also known as credit bureaus. They are businesses that collect information about you and how long it takes you to pay back money you have borrowed. This information is called your "credit history". When you want to borrow money in the future, the lender will check with a credit-reporting agency to see if you have a good credit history.
 
A credit-reporting agency provides information about credit history in two ways, as a credit report and as a credit score. Your credit history is recorded in files maintained by at least one of Canada's two major credit-reporting agencies: Equifax and TransUnion. These files are called credit reports.
A credit report is a "snapshot" of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.
You have the right to see your credit report. No one else can have access to the information in your report unless you allow it.

It's a good idea to request a copy of your credit report from the two credit-reporting agencies at least once a year to verify that your personal information is up to date, that your financial information is correct, and to ensure that you have not been the victim of identity fraud. Because your credit information can be kept by more than one credit-reporting agency, and because those agencies do not necessarily share information, it's important to check all two credit reports carefully.
 
How can you maintain a good credit history?
There are a number of things you can do to build and maintain a good credit history. Here are some important do's and don'ts.

Do's
 
Pay your bills on time.

 
Try to pay your bills in full by the due date. If you aren't able to do this, pay at least the required minimum amount shown on your monthly credit card statement.

 
Contact your creditors if you are having trouble making payments.

 
Make sure that your monthly account statement is correct.

 
Read the statements and other material you receive from your credit card company carefully. Keep up to date on any fee increases or changes in your card's terms and conditions.

 
Deal with companies you know and trust.

 
Get a copy of your credit report from the two credit-reporting agencies at least once a year and make sure they are accurate.

 
Don'ts
 
Don't accept or use any form of credit until you understand and are comfortable with its terms and conditions, to avoid any misunderstandings between you and the credit issuer.

 
Don't wait to report any unauthorized transactions on your account. Contact your credit issuer immediately if your bill includes items you did not buy.

 
Don't go over the credit limit on your credit card.
 
Checking your credit report is not only a good way to check for identity theft; it is also the only way you can be sure that your report is accurate.
It's not easy to tell, right away, if you've been a victim of identity theft. Thieves can use your personal information to open a bank account, obtain a loan or open a credit account, and have the statements sent to a different address, so that you don't realize that there's a problem until you apply for a loan or credit, and get turned down.
 
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