Month: March 2016

10 Tips of Money Matters

cvMoney is a power tool that enables businesses and individuals across the globe to exchange value for goods and services. You often hear many people mention that money is evil. I submit to you that there is no evil in money whatsoever. It is the love of money that actually is a root of all evil. How you behave when you now have the money or what you try to do in order to get a hold of this power tool is what can end up being in the Evil category. You have the right to access money. You will realize that in most people’s lives, money does not come easy. It is a result of hard work, deliberate savings and investments and parting with certain goods and services sometimes treasured by their owners. It is no doubt that money does amplify your influence, it gives you a voice and a reason for others to listen to you. As I said it gives you muscle and power. Many have died in their quest to get this resource, many relationships have been damaged beyond repair in the drive to get access to money. No doubt, money given to charity has made a difference in many people’s lives who would never have managed to get access to education, water, sanitation and general shelter and livelihood. Personally, I would rather have access to more money than not have it at all because only then can I make a difference in my generation by sponsoring others to go their next level.

A few tips on money which I have learned over the years

– Money should be multiplied – Whenever you get access to cash, think of a genuine and legal way to multiply what you have before you spend it on yourself. More is better as it gives you leverage and it multiplies your ability to make a difference. When I just started working in 1995, I thought that all the money I received was just for spending hence I could not wait for payday to buy music and spend on partying and having fun. I was very surprised to see friends beginning to buy assets such as cars etc and I still reverenced having a huge collection of CDs. Today I am a changed man. I know that I did Math in school in order to use it hence the term MULTIPLY excites me when it comes to money.

– Money must work for you – There comes a time when you get money to do some work while you sleep. With time you need to reverse roles with money. Let it work for you instead of you working for money. If you had a $1000 and you deliberately invest it in a lucrative product, shares or other investment portfolios, that money will have doubled in 6 months if not trebled. Learn to set aside surplus not under your pillow but in some investment house somewhere. Have many streams of income coming your way. One thing I realized during the economic turmoil which we faced in Zimbabwe for 10 years and the world over in the recent past is that you need something that generates hard cash daily. It may not be your core business but it helps to cast your net wide. While you specialize in your area of study, diversification helps you immensely

– Money in itself is not the sum total of wealth – Money will make you rich and not necessarily wealthy. Riches fly away but wealth is more than money. When you invest in buildings and other immovable legacy elements, you are growing your wealth portfolio.

– It is easy to lose money – Money is lost in many ways. If you keep having to replace the same asset because of damage or loss then you are losing money, when your time is wasted, realize that your money is being wasted too. Its easy to be rich today and a pauper tomorrow if you do not exercise wisdom on money matters.

– You get money to the level of your responsibility and readiness to manage it – Money that comes to someone without enough wisdom to use it will soon fly away, money becomes a source of danger when it comes to a juvenile who has no clue what this power tool can do. I have watched lotto winners move from millionaire to zero status because they were not ready to receive such amounts and lacked wisdom in spending. I realized that as I grew in my level of responsibility, taking care of the needs of my family, brothers and sisters, I seemed to increase in my financial capacity. Watch people who focus on themselves; their financial capacity is stunted.

– Plan your money just as you plan your life – No matter how much money you have, a clear spending plan and reporting exercise is necessary. A simple budget and recording of expenditure will help you realize where your money is going. It removes the surprise factor where “suddenly” you realize you actually no longer have the money you used to claim you have. Money sometimes seems to “disappear” from your wallet but it is all because you have poor management skills as an individual. You must be able to account for every cent that you spend. Failure to do so will make you an enemy of your own greatness.

– Make decisions with the knowledge that each one affects your bank balance – It does not matte the color, size or nature of decision you make each day, it either adds to your money or takes away. One man taught me that Every decision has a financial consequence. Think about that each time you decide. As long as you are alive, you will always have to make decisions. Daily you are either making a decision that will take money away from you or increasing the money available to you.

– Never Borrow money to finance an expenditure – I can agree with you if you say to me you borrowed in order to finance an order you had received. You borrowed to buy a house or some other asset that can generate revenue. People who borrow lots of money to spend on their stomachs lack vision. Why eat a sumptuous meal out of borrowed finances knowing that you are simply meeting an endless temporary pleasure. Most people approach banks for financing and wonder why their applications are not approved. Check your reason for entering into debt and count the cost. If you are borrowing so that your money will multiply and create a better bank balance for you then you are on the pathway to success. You definitely need money to make money – Most ideas need financing. I do know however that there are many who have managed to start businesses without money. You see, the pro-VISION always follows VISION just as CREAM follows DREAMS. You have to have vision first and money will pursue it passionately.

– You can never have enough money – Why is this so? The reason is that there are always needs around you. When you reach a billion dollar mark and you have bought all the gadgets, toys and mansions you need, you realize that your lifestyle suddenly changes, you can not shop where millionaires shop, you can not go to ordinary 2 star hotels. Your standard of living goes up dramatically. You also realize how much your wealth can help others as your meal in a Paris Hotel or a suit that you bought and only wore once costs the same as school fees for 200 children in a rural 3rd world school somewhere. That way you can never give enough hence you can never have enough money.

– Money has capacity to solve a number of problems – Most problems that we know of continue to haunt mankind because there is not enough money that can be put towards solving those problems. Hunger and starvation, lack of shelter, killer diseases and poor communication in some parts of the world are a result of lack of enough funding to solve those problems. You can wish, hope, pray, cry all you want but if you not get the money to buy the products you need then the problems persists. Many people who have made money never thought of money in the first place, they thought of helping people but made tonnes of money in the process of helping mankind live a better life. This makes the third world communities and countries the best place to put your money and charitable efforts. As you help alleviate poverty, disease, hunger and all the things that lack, guess what, you increase your capacity to attract more. I am not advocating for aid as the ultimate solution. Use your money to EMPOWER communities to realize they have a responsibility to get themselves out of their situation. Self help incoming generating projects are the solution to all the ills that plague nations the world over.

How to Manage Money

Money Saving Tips – How to Manage Money

What should you do with your hard earned cash? There are many choices we face on a daily basis that can create confusion and can point us in in a different direction at any time. There are many things that we should and shouldn’t do with regards to our finances and how to manage money. Let’s go through some of the more important ways to start saving and put your money where it belongs.

1. Understanding when you should stop

The issue most people face when knowing how to manage money is knowing when you should stop. This may be a somewhat vague statement but I’ll help clear that up. Understanding when you should stop can pertain to all kinds of different parts of your finances. You should know when to prevent buying things on each day, week or month and that all comes down to budgeting. You must understand when to stop investing in each part of your financial portfolio and start in another. You must understand when it is time to stop using the credit card and begin to buy with real money. These ‘stops’ are of vital importance to our financial success and there are many more. Every situation is unique and you need to go through some of the trouble areas in your financial life to discover where you need to stop. It could be you are paying too much for for your telephone and web service. You need to know when enough is enough and put an end to cash wasting services or purchases. The amount of money you will save if you know when to the draw the line will amaze you.

2. Eliminate Impulse Buys

All stores rely on impulse purchases more than any other item sold. They will draw you in with a great deal on several things in their flyer. You end up getting those items up but while you shop you purchase several other things that were not on the list. All of us can be sucked into the impulse buys when we go to the mall, convenience stores or the grocery store. Often times we don’t know we’ve made an impulse buy. If you chew gum, have an issue of ‘Cosmo’ magazine on the coffee table or have fuzzy dice dangling from your car mirror it’s likely you have made an impulse buy. We make impulse buys on an almost daily basis. Those purchases empty our wallet and savings account of a lot of cash. Here’s an example of how much you can spend: If you pack of breath mints {per|each|every| week you are spending about $78 every year. Throw in one magazine each week, a Starbucks coffee every day, a chocolate bar every two weeks etc. It’s not hard to do the math you’ll figure out that we spend thousands of bucks each year on these items that we didn’t plan on buying. If you avoid them you’ll easily save thousands of dollars for your retirement plus you will know the basics of how to manage money.

3. Plan Ahead

Planning is key when dealing with your finances. If we go around without putting any thought into where our money is going there is a high likelihood that it will all be gone after a couple of weeks. They key tofor solid financial planning is planning ahead.

My Step by Step Advice:

1st: Know how much every guaranteed monthly expenses are and place aside that sum from your paycheck. Those items include electricity, cable, car payment etc.

2nd: Set aside $25 (or more) every week that will go into your emergency fund.

3rd: Make a meal plan and then do your weekly grocery shopping. If you have all the food you need in the house it will prevent you from going to the corner store to buy a loaf of bread for $4.

4th: Budget no more than 10% of your paycheck for weekly spending. If you spend that 10% by Monday then you don’t get any more. Don’t dip into next weeks budget and don’t let last weeks budget roll over into the current week.

5th: Make a financial goal at least once a week. If you want to go south this March, create a goal to make that dream come true. If you want to own a house next year, start making that goal happen. If you want to save an extra $20 a week, figure out a way to make it happen. This will show you how to manage money and get you on the right track to your financial freedom.

Should you go out and spend your money with reckless abandon or save wisely? I’m pretty sure you know the answer to that question. Managing money isn’t as hard as you think and can be easy to save for the retirement, house or vacation you’ve always dreamed about. You simply need to understand when enough is enough when it comes to spending. You also need to stop impulse purchases. The last thing is good financial planning. If you make an honest effort at making those 3 things happen, you will be close to knowing how to manage money better.

Top Ten Tips for a Financially Prosperous New Year

I’ll try to make this article short and sweet by providing you with the top tips for improving your finances for the New Year.

Create Goals for Yourself: Unless you write down your goals, they’ll just be dreams that go unrealized. The process of creating goals, writing them down and taking action on them almost guarantees you that you will achieve them. Setting goals helps create a end point and in the process of figuring out how to reach your goals, you will develop a plan that you can put into action. I create my goals using the B.E.S.T. method. The letters stand for Believable, Energizing, Specific and Time.

Get a Mentor: Everyone talks about the importance of having one, well why don’t you have one? They’re not hard to find. They could be the successful owner of a local business your frequent, a family friend, or a coworker who is investing in real estate on the side while continuing to work full-time.

Wherever you find your mentor, make sure you choose wisely and don’t have to pay for their services. A good mentor will be willing to help out because they feel like giving back.

More on the subject of Giving Back later.

Invest in Yourself: You are your most important asset and as such you should be investing in well, you. I’m talking about increasing your financial education through the use of books, web-sites and online forums. I can’t stress how important it is to keep on learning after you graduated high school or college.

Just because you’re done with school doesn’t mean you can’t start your own university of knowledge and fuel your mind with the latest information and tactics for investing, budgeting, building your business and investing in real estate.

If you skipped college or never went due to extenuating circumstances, you might look into signing up for a part-time program. I got my MBA at night and it was a difficult process balancing work and school, but I did it and my company paid for most of it. Talk about a win-win situation.

Manage Your Credit Cards: Pay off your credit cards immediately with any excess cash you have above and beyond your Emergency Fund. If you can’t do that how about taking advantage of those teaser balance transfer rates? Just make sure in your attempt to reduce the cost of borrowing (ie, getting out from under those high interest rates) you don’t pay excessive transfer fees.

At some point you’re going to have to learn how to pay cash for things and/or budget for them. So if you want to buy that new plasma TV, I suggest you wait until you have money (read: cold hard cash) to pay for it.

Speaking of setting aside money to pay for planned expenses; it’s about time you had enough money set-aside for unplanned expenses. Just get started. See my article resource box for a great resource on saving money.

Create a Debt Repayment Plan – Get Out of Bad Debt: Don’t sweat it if you’re in a hole already and have a mountain of debt that you need to pay down. Debt is a form of leverage that can be used to create massive wealth, most notably through real estate investments. Using debt to buy an investment piece of property is an example of good debt.

You mean there is such a thing as good debt?

Yes. There are two types of debt: good debt and bad debt. According to Robert Kiyosaki, author of the successful Rich Dad book series, Good debt puts money in your pocket every month. Bad debt takes money out of your pocket every month.

Bad debt will bleed you dry if you’re not careful. Resolve to not add any additional bad debt and create a debt repayment plan that will eliminate your bad debt. Once you have paid of your bad debt, the money that was going toward paying down your debt can now be used to buy investments that add to your wealth.

In short, don’t buy liabilities that are disguised as assets (new cars, big homes and the like). These things will bleed you dry if you’re not careful.

Create an Emergency Fund: You should aim for between 3 to 6 months of your living expenses. My rule of thumb is that three months is adequate for someone who has a relatively secure job and six months is for someone who might be a consultant or has an unsteady income stream.

Start by socking away a set amount each week into what I call a Cash Can. Maybe it’s $5 or $10, but just do it. You get bonus points if you do it automatically ala the Pay Yourself First method of using an automatic transfer from your bank account. Put the funds aside into an account that’s hard to get to so you won’t be tempted to take money from it.

Resolve to Pay Yourself First: The most important bill you have to pay every month is the one you pay to yourself. The easiest way to fail to pay yourself first is not to make it automatic, that is, have money pulled directly from your savings account bi-weekly or every month.

I have money pulled from one bank account and placed in another on the 15th and 30th of every month. I did it this way because I’m paid bi-weekly. The reason paying yourself works so well is that the money is set aside before you have a chance to spend it. Aim to pay yourself at least 10% of your take-home pay. That might seem a little high right now, but that’s where the next tip can help.

Resolve to Live Below Your Means: One of the seven habits most millionaires have according to the research done by Stanley and Danko, the authors of The Millionaire Next Door, is that of being frugal. Being frugal is just another word for Living Below Your Means. Living below your means is not the same thing as being cheap, it means choosing not to spend all your income.

It means shopping around for the best deals and not spending all of your raises or bonuses on the latest doodad or gadget.

Again, it’s not about being cheap or living like a pauper. It’s about choosing not to spend every last dime you make so you have surplus funds left over each week that you can invest and help provide for your future.

Max Out Your Retirement Contributions: Politicians passed the 2001 Tax Reform Act and gave you a bunch of goodies, the most important of which was the increase in the amount you can sock away into your 401(k) and IRAs on a tax-deferred basis. Depending on your income, you can now sock away $12,000 into your 401(k) and $3,000 into your IRAs in 2003. You can put away even more if you’re over the age of 50.

Give Back: When you take the above advice and put the tips into effect, you’re going to immediately see a change in your lifestyle and your wealth. Be grateful for what you have and start to give some money away to charity

If your budget is currently too tight to donate money, how about donating your time? You can volunteer at the local shelter, soup kitchen, boys and girls club or a host of non-profit charities. If volunteering isn’t your cup of tea, how about donating the knowledge in your head? Lawyers do pro bono work and just about anyone can give away their professional services for free.

Also don’t forget you can give away your knowledge by creating a newsletter or setting up a web-site. It’s an easy way to give back and help others.

That’s why I write these articles. It’s my way of giving back and helping others avoid the mistakes I have made, as well as my way of passing on what I’ve learned about investing, personal finance and motivation.

There are a number of other things you can do, but I thought I’d post these main ones to kick off the discussion of major things you can do to improve your finances this year and to ensure that this is a prosperous New Year for you and your family.

How to Save Money For Your Medical Practice

A large percentage of healthcare professionals complain of constant mistakes in their medical billing. If you have the same dilemma, then it’s time you put your worries to rest. Did you know that you can make your medical practice more efficient? If there’s confusion and chaos in your office due to billing problems, then it’s time you look for experts who can save you from inadequate billing practices that result in financial trouble. Get ready to learn the value of hiring a medical billing expert.

Revenue cycle management issues are some of the most common problems encountered by physicians in all specialties. It does not matter if you’re fresh from residency or have been in the medical profession for decades. Medical billing has been considered a weak spot in the world of healthcare – but it doesn’t have to remain that way.

Do you put a lot of hard work into your profession, giving yourself to long hours of doing the rounds, manning the emergency room, and treating patients day in and day out – only to find out that you’re not getting the financial compensation you deserve? Well, you’re not alone. The truth is that you deserve to be compensated for ALL of the services you perform. Doctors need to make a living, too. There is no shame in making sure that you receive accurate reimbursement for your time.

This is why you should consider hiring a medical billing expert. There are a number of details that go into medical billing; it is a tedious task that you should not be worrying about, with countless medical cases already in your hands and requiring your prompt attention. With an expert handling your medical billing for you, your practice can become more cost-effective – and you can have more time to focus on patient care. Perhaps even more importantly, you can have the elusive peace of mind you so badly need.

As a doctor, your expertise lies in the treatment of people for a variety of illnesses. Your knowledge and experience give you the power to cure and heal. When it comes to revenue cycle management, it is best to hand over the reigns to someone whose expertise lies in revenue cycle analysis and practice management. Truly, a medical billing expert is what you need. Hire one now to increase your bottom line.