Can I Get a Loan On My ATV?

Riding around in an ATV can be a great weekend hobby. Slinging mud or sand all over the place may be just the thing you need to relieve stress from a hectic week. With that being said, have you ever thought of your ATV as a source of cash? There is no way I'd ever … Continue reading “Can I Get a Loan On My ATV?”

Riding around in an ATV can be a great weekend hobby. Slinging mud or sand all over the place may be just the thing you need to relieve stress from a hectic week. With that being said, have you ever thought of your ATV as a source of cash?

There is no way I'd ever sell my ATV! If that's what you're thinking, you will not have to sell it get cash from it. You could borrow against it through a title lender. Let's explore how this works.

Borrowing Against Your ATV

You may think that title lenders will only work with individuals that have traditional vehicles. However, a title lender may be willing to lend you money on an ATV through a pawn loan.

If your ATV is worth a few hundred dollars, you probably will not be able to borrow against it. However, if it is worth at least $ 500 or so, some title lenders will work with you to offer the loan that you need. They'll do so through a pawn loan, meaning that you can get cash just for letting someone hold on to your ATV. Think of it as lending your ATV to a friend in exchange for some money – only that this friend will not damage it!

How Much Can I Borrow?

The amount that you can borrow is based on several factors. These include the value of the ATV and the rules that your chosen title lender has.

Many title lenders offer loans beginning at just a few hundred dollars. Again, this would be done as a pawn loan, but it can be done through a title lender. This could make your ATV a great source of income to pay off a late mobile phone bill, utility bill or to keep your car payments current.

Of course, you could also borrow more than a few hundred dollars if the value of your ATV allows for it. Just ask the lender to assess it's value and see how much cash you can get!

Example

Suppose that you own a 2011 Can-Am DS 250. A quick check on eBay shows that this ATV is currently going for $ 2,550. Let's assume that this is what the ATV is actually worth.

If your title lender offers you a pawn loan of $ 2,000 for your ATV, you could get the cash you need to pay off any realistic bill and more. You would not have to take the full $ 2,000, though. You could go with a smaller amount of just a few hundred dollars, assuming that your title lender of choice offers such amounts.

Is it Difficult to Get a Pawn Loan Through a Title Lender?

You're going to have to jump the Grand Canyon backwards on your ATV to get a loan on it, right? Not exactly.

Pawn loans are usually simple to obtain. The title lender will be primarily concerned with the value of the ATV.

Also, the process of obtaining a pawn is typically smooth. Often, you'll get your cash the same day that you apply – sometimes in as little as 15 minutes.

Conclusion

So, the process is relatively easy and you can get some quick cash by using your ATV as collateral. If you need quick cash, then this is an option that you should consider for your borrowing needs.

The Many Names of Cash Loans

Cash advance loans have many names. I have heard them called "cash advance loans" obviously, "payday loans", "quick cash loans", "faxless loans", and "wire transfer loans." I am sure there are more names for them, but you get the point.

Loans like this have become ever popular as they are quick and easy and it fills a need that banks can not provide. When used appropriately, payday loans can be such a valuable resource!

The key phrase is "when used appropriately." Let us see first, how one would obtain a payday loan.

If you are not familiar with these loans at all, then read on. A person needs money for whatever reason; it might be to fix her car, pay for medical expenses or a bill that is due before payday. Payday loans are great when there are urgent things that come up, but they also can be great when you know you have money coming but are too impatient to wait, or you do not want to pass up an opportunity while you wait for it.

So then this person finds a lender after some research and deliberation. Do you need to do research before getting a payday loan? No.

If you do not want this loan to come back and bite you, it is a good idea to practice a bit of research. You may want to look into what the laws are for your state regarding payday loans so you know that you are not being charged too much for it, or that it is not exceeding the maximum guidelines set for loan amounts.

The lender is chosen, hooray! Our borrower then applies with said lender and starts the application process. First our gal opens the door to her lender (or picks up the phone, or fills in the application online) and tells them how much she wants. They go over the cost of obtaining such a loan and then she fills out the actual application. It is good to talk to your lender and ask what they are offering right now.

If you make it look like you are just shopping, you may get a better rate. And if you remain a loyal customer, some lenders reward with good rates on future loans. The application simply needs our applicants name and personal identification information. The lender will ask to see proof of employment and proof of bank account.

Every lender is different but most as for proof of employment for at least three months. You must be a citizen of the United States and be 18 years of age or older to apply. You and your lender will decide how long your term is. Most terms, and the smartest ones, are only a couple of weeks. Because after all, what is this loan? A payday loan. Pay it off by your next paycheck or find yourself paying a lot more in fees and compounding interest.

Next you go over your contract, which you should have read and noted the fees for late payments, extension of loan policies and your interest rate that was discussed with your lender. Make sure you play close attention to those details because it is the small things that come back to haunt you if you are unprepared for them. Once this is done, sign your contract.

The next to last thing a person would do is to authorized a bank draft, or hand over a post-dated check, for the lender to debit your account to repay your loan. The very last thing is to simply enjoy the money when it comes in!

Remember, just as with any loan, these are taken very seriously and you are still obligated to pay it back plus any fees and interest. The best way to ensure that you can pay off your loan is to have a plan of how you are going to pay it off, before you even apply.

Bad Credit – How to Repair a 400 Credit Score

If your credit score is absolutely dismal you're right to worry. Fortunately this is not the end of the road and there are actions you can take to improve your credit score, even if it is as low as the 400s. There are people that have come back from bankruptcy to fix their credit and now have stellar scores. Although something like that could take up to 10 years it is definitely worth the effort.

The first step would be to order your credit report. Make sure you get one from all three credit reporting agencies as well. It's important that you get all three reports to get a full picture. Lenders are not required to send information to any of the bureaus and most often they do not send information to all three. That is why sometimes you will have negative marks on one report and not the others.

Once you have your reports in front of you go over every section very thoroughly. Check to make sure that there are no mistakes, for example a note indicating there was a late payment when in fact all of your payments had been prompt and on time. Like yourself the people that work at the credit bureaus are human and make mistakes. If you do not catch these mistakes trust me, nobody else will. Should you find any mistakes all the have to do is notify the Bureau and the lender involved both by phone and in writing. The Bureau will then have 30 days from receiving your note to investigate the issue. In your letter I suggest you mention that you will be following up with them from time to time. Remember just because an issue is investigated this not mean any action to remove it from your credit report will be taken. That is why you must follow up and make sure that everything is taken care of to your standards.

The next thing you must do is list your link when it counts and create a plan to start repaying them as soon as possible. I would suggest listing your accounts by the balance owed and start paying off the lowest balances first. This way you can start knocking off those extra interest rate payments as soon as possible. Another option would be to start paying off the highest interest loans first.

Creditors use your payment history as a giant chunk of the formula for calculating your credit score. That is why it will take some time before your score starts to rise simply from paying your bills on time. After you have shown a steady history of on-time payments is when you'll see the most improvement in your score.

Is it Better to Buy or Lease a Car After Bankruptcy?

If you want to get approved at the best possible terms when buying a car, it's important you know a car lender's credit guidelines before you apply for credit … especially if you're bankrupt.

It will save you time and frustration – but more importantly, it will help you avoid credit inquiries that may lower your FICO credit scores up to 12 points per inquiry.

Step 1 in making a lease or buy decision is to determine a lender's credit guidelines.

You start by asking if they lend to people with a bankruptcy. If so, on what terms?

That's right. You have to be upfront that you've filed bankruptcy. Do not hide it. We have to face the fact that some dealers just will not work with people who've filed bankruptcy. So our job is to find the ones that do.

Some lenders will only lease to people with a bankruptcy. Others will only offer purchase financing. Yet still others will only lend using a hybrid of the two – this is especially common in Texas.

Ask the finance director at the dealership to direct you as to what structure the manufacturer prefers.

And here's a quick tip for you: if your bankruptcy does not appear on the credit report your lender pulls – then, in the eyes of the lender, you're not bankrupt.

The only lenders I would consider using are:

– First choice: Captive lenders (car manufacturers)

– Second choice: Banks (not finance companies)

– Third choice: Credit unions

Ninety-nine percent of the cars I've leased over the years have been with captive lenders. Just one was leased by a bank.

That particular deal came from a conversation I had with Amy, the finance manager at the local Land Rover dealership here in Indianapolis. I told her I was open to her financing recommendations, but I preferred financing through the car manufacturer.

I told her my current FICO scores. She immediately said that with my scores she could do better through a local bank. I signed a credit application and told her to go for it.

The next day I signed a lease agreement with that local bank. Being open to her advice literally saved me hundreds of dollars a month on that car.

So be flexible … but be careful. It seems most car dealers call all of their funding sources banks. When in reality some are banks, some are credit unions, and most are sub-prime finance companies.

Here is a list of some of the most commonly used sub-prime auto finance companies:

1. HSBC Automotive

2. Capital One

3. AmeriCredit

4. WFS Financial

You want to pass on the sub-prime finance companies – unless you have exhausted all other options. Sub-prime lenders should be your last resort.

And only use credit unions if they report to all three national credit reporting agencies. How do you find out if a credit union reports to all three credit reporting agencies?

Simple – you ask. Ask the branch manager at the credit union if they report. And after you get the loan, check all three of your credit reports and make sure their trade line appears on each one.

The three worst luxury captive lenders to lease or purchase from after bankruptcy are:

1. BMW

2. Mercedes

3. Porsche

The three worst mainstream captive lenders are:

1. Honda

2. Kia / Subaru

3. Toyota

What makes these the worst?

Once these lenders see that you've filed bankruptcy, they are less likely to work with you. However, if they are willing to work with you, they'll want you to be at least several years from discharge and have perfect credit during that time.

Now that I told you how bad the above six lenders are – there are times where they may offer you good deals. For example, if one of the above happens to be the biggest dealer in your area, they may be able to offer you special deals that a smaller dealer can not.

Of course, things change all the time with captive auto lenders. They change their credit guidelines on a whim to meet their own financial goals. So, it's always a good idea to at least research these dealerships – just do not get your hopes up too high.

OK, so you've done your research and narrowed down your choice to one or two car manufacturers.

Step 2 in making a lease or buy decision is to purchase your FICO credit scores.

It's important you have your most recent scores when you talk to car dealers (just like I did with Amy). It puts you in charge.

When you enter a dealership with your FICO scores, the dealer will know you're a more informed consumer and can not be taken advantage of. Just know that the FICO credit scores auto dealers use are a little different than what we see as consumers. The scores the dealers review are called FICO Auto Industry Option Scores. The good news … these FICO scores may be higher than your normal FICO scores if you paid all previous auto loans as agreed.

Some car dealers have told me that if your FICO scores are higher than the scores the dealer reviews – they may even use your scores to get a better deal.

You can buy your scores from myFICO.com.

Step 3 is to interview the remaining car dealers on a deeper level.

Start by asking them these questions:

– Which credit reporting agency do you use to make a lending decision?

– What is your minimum credit score requirement to get approved?

– What credit score is needed to get the best interest rate?

– Do your lenders prefer offering lease or purchase financing to a bankrupt debtor?

– What incentives are there to lease or purchase right now?

At this point it's important to remain open to either leasing or purchasing. Evaluate your options and incentives. Remember, you're buying the financing. In other words, the most important factor is the willingness of the lender to loan you money.

I personally view the lease versus buy decision in three ways:

1. If you're recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies. So you should only consider lenders that are bankruptcy friendly.

2. Once your credit scores begin to increase, you can start selecting cars based on which credit reporting agency the lender uses to determine if you qualify. Obviously, you should choose the lender who uses your highest FICO credit score to make a lending decision.

3. When your scores are high enough … or two years have passed after your bankruptcy … or your bankruptcy does not appear on the credit report the lender uses, then you can choose almost any car you like. But make sure you still do your research and use your credit scores to help you compare interest rates, terms and incentives.

How to Set Up an In-House "No Credit Check Financing Plan" With Little Or No Cost

This is a great system that is perfect for small businesses. I have personally seen this program generate 25% -% 40 increase in sales just by telling people you offer "No Credit Check Financing". This article will show you step by step the way to set it up and many ideas dealing with advertising the plan.

LEGAL DISCLAIMER
When implementing the concept discussed in this article , Customized Concepts does not inherit the responsibility of the loans being paid back, of legal issues, or of anything that results from the use of this information.

The legal disclaimer is a must. We do offer a "90 Day Financing Plan" that is guaranteed. We take care of the details and the risk. There is no risk to the merchant. This article is based on the idea. You can put many things in place to insure the loans are paid back. This will be your responsibility. We will discuss them and let you know the pros and cons.

You will need a good file management system. If you are running a business this is not really a problem. I recommend that all the paper work is scanned into your system. This allows for quick retrieval if there are any problems with the contract the customer signs.

Below is an example that does not charge the customer finance charges.There is an example on our website that has finance charges. This would qualify your program as "Same as Cash Financing". You are allowed to charge finance charges and application fees. This would create another income stream for your company but, you can not advertise "Same as Cash Financing".

The choice is up to you.

Example:

Yoshi walks in to your store and wants to buy your product or service but does not have the money and has bad credit, no credit, or just does not want to take out a loan. The item costs $ 1000. Yoshi says that is too much right now. You explain that you can offer him a "No Credit Check Financing Option". He says "Great". You and Yoshi agree on what payment schedule will fit in his budget. He agrees that $ 200, every two weeks, would fit his budget.

Yoshi will then write you out five checks post dated checks for the amount of $ 200 each. Five $ 200 checks equal the $ 1000 sale price. I know there is someone saying is that legal. Yes. The law with post dating checks is very vague.

The two major things that come in to play are:

1. If the customer writes a post dated check that they know will not be good on the post dated date. This is a form of fraud. Customer is in the wrong.
2. You cash the check before the post dated date. When you and the customer agree on the payment schedule you are agreeing to cash the check on the dates stated on the contract. You are in the wrong. They can sue you for the penalties incurred and numerous other things depending on your state.

It is a good idea to keep the post dated checks within 90 days of the sale date. This is safer for you and the customer.

The check will need to be kept safe (in a safe). This will make sure that they do not fall in to the wrong hands.

Next you will need to get the filing system in order. You will need a way to let you know when the checks need to be cashed. You can do this one of two ways.

The first would be a basic folder arrangement. Create one folder for every week. Check the folders at the beginning of the week son you know what checks need to be cashed.

The second and probably preferred would be a basic program with Excel or some other spreadsheet program. This would require that you put the information in to your system, but would save the file set-up time. You will set up the spreadsheet to organize the payments by date. Check the spreadsheet every day to see what checks need to be cashed.

Here are a couple things to protect you from fraud and default on repayment.

The options below are up to your discretion. You can use one of them or all of them. The more you implement the more protection you will have that the customer will not default on the loan.

This first three are, in my opinion, a must.

1 Get a copy of the customers ID

2 Get a copy of their most recent pay check stub. You can take this one step further and verify employment. You can give the employer a call or you can send a fax to the Human Resources Department. The easiest way is to call. They can not give you much information over the phone but, they can tell you if the customer works there and if there is anything that might affect his future employment.

3 Call the bank to verify the account is in good standing.

4 Verify the Checks. If you have a merchant account that can process checks this can be simple. If you do not have check verification you can call your provider and check pricing to get it set up. If you do not have check verification and you do not want to pay for the service there are some other options. They are not as reliable but will work. Physically go to the bank where the check was issued and cash it. If there are not funds they will tell you or they will cash it and charge the customer an overdraft fee. DO NOT DO THIS WITH THE POST DATED CHECKS. This should only be done with checks that are not post dated. You and the customer came to an agreement that you would not cash the checks until the date on the checks.

5 Verify the customers check writing history. This can be done a couple different ways. Check out National Check Network.com (NCN). You can also do a search on Google or ASK.com for "How to verify a customer check writing history". These systems can vary in cost and quality. We use NCN. This option will let you know if they have bounced checks that are outstanding, a history of writing bad check, or any check fraud in the past.

These are the basics and if want to tweak it to fit your company better, great.

We have a customizable contract on our website available for download. The form is a PDF. If you do not have a PDF editor you can go to PrimoPDF.com and convert the file to a.DOC file. This contract is free of charge and we will not ask you to give us any information. This is a great tool that will save you some time. There is no need to design your own. This is the exact form we use.

We also offer "No Credit Check Financing" that takes away the risk and is very user friendly. We implement the procedures above and guarantee the payment to the merchant. If the customer defaults we will honor the payment and we will take action to recover the monies owed. The fees involved are normally less than what it would cost you if you to set up check verification and verification of check writing history. It is guaranteed to save you time.

Advertising

Advertise the "No Credit Check Financing" everywhere. Here are a few suggestions.

Get a sign / banner that states you have the program. We have a local company that will paint the lettering on. You can get your local sign maker to help you, also. Window appliques, appliques for your car, magnets for your car, the list goes on and on.

Change the on-hold audio so it mentions "No Credit Check Financing" and also voicemail box recordings. Be sure to mention the plan when you answer the phone.

Include the program on anything that your business uses for advertising.

* Yellowbook Ads
* Business Cards
* Brochures
* Website
* T-Shirts
* Vehicles
* You need to get it visible to as many people as possible.

Do a local radio commercial that states you now offer "No Credit Check Financing" This is spectacular if you can afford the media.

I hope everyone reading this did not find it a waste of time. If you can not use the information in this article please pass it on to someone who can. If you would like you can download an exact copy of this article and contract here. We will not ask for any information. I will be writing more articles in the near future. The article will be on ways that small businesses can increase their sales with various techniques. Please subscribe to my newsletter if you would like to be emailed when they are posted.

Role of Merchant Banking Services in Our Economy

Merchant banks found its origin in the early periods in the country of Italy by the Italian merchants. The main function of the merchant banking services include providing financial advice and services to corporate as well as individuals. These banks act as a sort of intermediary between capital issuers and the buyers of the securities. These securities are issued by different companies in the stock markets to raise funds.

The Necessity of Merchant Banking Services

The economy of the country is often afflicted with different unpredictable conditions like inflation, unemployment, stagnation and so forth. The need to sustain a steady growth is necessary for corporations and individuals which is possible only with a long term strategy and financial options. The merchant banking services provide solutions and financial options.

These banks provide advisor services to clients based on a particular fee. They also provide other financial services to mergers and clients. It is the only financial institute that invests its capital in the clients' company. It acts as an intermediary between those who possess capital and those who need capital.

To help their clients with a number of financial options, the merchant banking services operate in a number of countries all over the world. In this manner the clients have the opportunity to survey the different financial options to ensure better growth.

Functions of the Merchant Banking Services

These banks have a number of functions and some of the most important among them include:

  • Raise funds: one of the main functions of this banker includes helping the clients' company to raise funds from the markets. The banks help to manage equity offerings and debt. This function further includes underwriting support, pricing and marketing of the issue, stock exchange listing, allotment and refund, offer document registration and so forth.
  • Offer advisory services: these banks also offer advisory services to its clients for a proposed fee.
  • Security distribution: the functions of these banking services also include distribution of different types of securities like fixed deposits, equity shares, mutual fund products, commercial paper and debt instruments.
  • Aid in projects: these banks also provide aid in the projects undertaken by the clients by helping them to visualise the concept of the project. The feasibility of the project is also analysed by these banks. The clients are also given support to prepare project reports.
  • Overall financial reconstruction: the merchant banking services provide better financial options and solutions to the clients. They help the clients to raise funds through cheaper resources. With the aid of other financial institutions, these banks also help to revive the sick units of the clients' companies.
  • Offer advice on management of risks: another important function performed by these banks includes providing timely advice on risk management. The merchant banker provides advice on different strategies adopted by the clients.

Today the merchant banking services provide a number of other services like loan syndication, credit acceptance, counselling of mergers and acquisitions, management of portfolio and so forth. They also assist companies with short term liquidity funds. In a nutshell, these banking services are indispensable as they support individuals and corporate to expand their business ventures.

If Your Girlfriend Left You Over Money Problems, You Need to Take Action

What is the number one reason most relationships break up? Terrible sex? Too much nagging? Incompatibility? Another lover? You just drifted apart? It's none of these. By far, the biggest reason that relationships fail can be summed up in one word: Money.

If you have money problems, then you have big problems. Nothing creates tension and hardships like persistent hassles with bills, paying rent, making a car payment – or maybe even not being able to afford a car at all! If your girlfriend left you over money problems, then you have one of the most difficult situations to remedy. Getting an ex-girlfriend to come back to you is hard enough the way it is. It's even harder when you are hard up for cash.

But before we get all depressed about this situation, let's get some perspective. Many guys think that if only they were rich, or at least well off, their girlfriend would have never left them. It's not as simple as that. If you do not believe it, just tune into what is happening with the rich and famous around the world, be it movie stars or royalty. It quickly becomes apparent that people with a lot of money have no better luck – an obviously sometimes a lot worse luck – with staying within a relationship. How many movie stars can you think of in the next five minutes who have two, three or maybe four divorces under their belts?

The fact is, having a lot of money is no guarantee of relationship success. If you are feeling sorry for yourself because your girlfriend left you over financial problems, then it's time to start rethinking the whole situation. You could be filthy rich, and she might have left anyway.

What does this tell you about money? Clearly, it makes no difference how much you have or how little you have. If the fundamentals of your relationship are strong, even a terrible money situation should not be an excuse for your girlfriend to leave. Money is only a convenient excuse, an outward factor.

Okay, but let's also recognize that while money may not be the ultimate reason she left you, it certainly was a contributing factor. That's because constant stress over money creates an overall climate of tension and struggle. It is very difficult for any relationship to thrive in an environment of constant struggle.

Incredibly, many guys do exactly the opposite thing they should do when they have money problem, and their partner leaves – they plunge themselves into even more debt! That's right!

There is something about relationship problems that can drive many men to lose all common sense. For example, they think that if they only had a nicer car, maybe their girlfriend would come back to them. So they pull out all the stops, marshal all of their resources, and take out a huge loan to get some new wheels. So now they have a shiny new car, and even more debt and payments to worry about. To get that new car, maybe they had to take out a second mortgage on their house, or run up huge debts on credit cards.

Other guys blow cash on some kind of bribe – maybe an expensive piece of jewelry to dangle in front of their ex in a desperate attempt to lure her back. Even if this works in the short term, as soon as the new load of bills start coming due, the stress level increases to all-new levels. Under these conditions, the relationship is probably doomed.

So the first step in getting your ex-girlfriend back if she left you over money stress is to start tackling your problems one at a time. The last thing you want to do if you have money problems is to get entangled into even more money problems. What you need to do is start getting your financial life under control. Rather than buying a new car – maybe it's time to sell the one you have!

It's all about making priorities in your life. You have to decide if you want to put your relationship and personal life first, or continue to be a slave to all of your bills. Of course, getting one's financial life in order is never an easy task. If you think you can not handle it by yourself, by all means, seek out some financial counseling from a professional. This does not have to cost you a dime. There are many free debt counseling services – especially in these tough financial times – that are available to you. Take advantage of them. Get some help formulating a solid plan to start paying down you debts, and to start earning more money.

Just taking that first step toward getting your financial life under control can be a tremendous relief. You will immediately get the feeling that you are finally doing something positive to take back control of your life. When you start getting financial control, you start reducing that all-pervasive stress that is tormenting you, and which made your relationship a living hell. It's a sad fact of our modern society that, even when two people love each other, a general condition of financial stress can cripple even great relationships.

So let's say you do the hard work, make the tough decisions and start the process of getting into a more financially stable position – but at the same time, you still have this other problem – the fact that your girlfriend is gone! It all can seem pretty overwhelming, and it is! That's exactly why you have to take a deep breath, realize that the toughest problems are not solved easily or overnight, and take things one day at time.

This does not mean that you can not start taking the first steps to repair your busted relationship and take action to get your ex-girlfriend back. It might not be a bad idea to communicate with your ex and tell her what you are doing. Maybe write her a letter, and tell her something like:

"I know times have been tough, and that we argued a lot about money. I do not blame you for not wanting to live a stressful life filled with constant worry over bills, or never having any money for us to go out and do anything fun. I really think my money problems were a big contributor to our break-up. Again, I do not blame you, I blame myself. I just wanted you to know that I am taking positive steps to get my financial situation under control. I never want to have money problems again. I hope you will give me the time to get myself into a better position. If I do, I really think our relationship could be special again. I hope you will give me the time to right my ship, and maybe even consider coming back to me when I am in a better position, and when there will not be so many problems for us to constantly worry about or argue over … "

… Or something along those lines.

Note that this in merely an example of the kind of letter you might write to your ex-girlfriend. But notice that the message in our example does not beg or blame. You only "blame yourself" and you also do not beg your girlfriend to come back to you. You're just letting her know that you still care about here, and that you are making positive changes in your life because of her. You can not lose with this approach. Many girls would be flattered that their former boyfriend cares enough about them to want to radically transform their own lives, and strive to make a better world for the both of you.

Still, you may have to give it time. Money problems just do not go away over night. If you have really serious money problems, things might even get worse before they get better. But until you get to the root of the problem, and remove financial stress from your life, it will be extremely difficult to get your ex-girlfriend back. And even if she does come back, she may only leave again once all the old money problems resurface again.

If there is anything positive about a broken relationship, it's that this tough situation helps us to re-examine our lives to find out what is wrong them, and it forces us to make overall improvements in our situation. Getting control of money problems is one of the best things any guy can do – and it sets the stage for a stable and happy relationship that will last forever.

China's Renminbi – Our Currency, Your Problem

Introduction of Case Study:

This case introduces the basics of monetary economics and demonstrating practical applications of monetary policies and exchange rates that pertain to business decisions. Supporting this case study will be a discussion on the exchange rate policy that China has adopted preceding and following 1978, a year in which significant economic liberation took place. Events within the past couple of years that took place in China concerning their exchange rate regime were deemed highly controversial by members of China's trade partners. The first objective of this essay is to trace the history of this discord surrounding China's currency, the Renminbi (RMB), which translates literally into English as "the people's currency". Next, questions from the case will be discussed. Lastly, the case will be made up-to-date with a brief excerpt concerning the current state of affairs surrounding this issue.

Background on Case:

In 2006, many countries that conducted trade with China made strong allegations against China's exchange rate policy. The major complaint was that China's currency was undervalued due to China's manipulation of exchange rates to suppress the prices of its exports. Among other damages, these countries have claimed that this action has cost them thousands of jobs. The US, which had a $ 233 billion trade deficit with China in that year, threatened to impose tariffs on Chinese imports if China did not revalue its currency. Japan and newly industrialized economies, such as Taiwan and Singapore, were less vocal, as they have been trying to strengthen their economic ties with China. Developing Asian countries, however, supported a revaluation in order for them to be better equipped to compete with China. One collective group that stayed relatively mute on the lively debates that ensued in the media between 2005 and 2007 were multinational companies. These companies benefited from low operating costs in China, which, for them, meant cheaper land and more competitively priced China-made exports.

China's exchange rate was deemed to be out of synch with market forces, with several reasons to support this conclusion. First, China's economy experienced 9% annual growth over the past decade. According to the Balassa-Samuelson hypothesis, rapid economic growth is accompanied by real exchange rate appreciation because of differential productivity growth between tradable and non-tradable sectors. Secondly, China has become the world's third-largest exporter with at least $ 970 billion in 2006. China's exports have experienced approximately 30% growth in recent years. Lastly, there has been a compilation of $ 1.2 trillion in foreign currency reserves. These build-ups are claimed to be the result of manipulation of the RMB against natural forces of the market.

Chinese officials strongly oppose the idea of ​​a revaluation of their currency on several grounds, the strongest of which is probably that they are a country that is highly reliant on trade and growth of their exports is vital. Secondly, over two hundred million rural dwellers have left their farms to find work in urban centers. Higher economic growth is necessary to absorbing these workers into a functional economy. Apart from the economic reasons against changing the exchange rate policy, officials in China turn to several counterarguments. First, the RMB, according to them, is not really undervalued and China's economic growth has nothing to do with manipulation of the currency. Secondly, the US is running a large trade and budget deficit, which is partially attributable to capital inflows from China, and should look to the weakness in their economy before pointing fingers elsewhere. Also, China is a sovereign country with a right to choose its own exchange rate policy. Lastly, Chinese officials brought up the little known fact that despite its large trade surplus with the US and Europe, it also has large deficits with others, especially Asian countries.

As mentioned in the introduction, China began liberalizing its country in 1978. Prior to then, it followed central planning and was reliant on economic self-sufficiency. China's foreign trade was negligible and there were hardly any foreign companies doing business in China. The RMB, at that time, was pegged to a basket of currencies and an exchange rate was set at an unrealistically high level. The currency was virtually non-convertible. After 1978, China followed an "open door policy" and special economic zones were opened to foreign investments. A tiny private sector emerged. The RMB was devalued in 1981, 1985 and 1993 to the US dollar in order to promote Chinese exports. The RMB was revalued by 5% in 1995, which held until July 2005.

The squabbles started in July 2005 when China reformed its exchange rate regime. The RMB was revalued by 2.1% to the dollar. The peg to the dollar was replaced by a peg to a basket of currencies with an allowed fluctuation of a 0.3% band against the dollar each day. This basket was dominated by the US dollar, euro and yen. The currencies of baskets and weights were selected on the basis of trade volume conducted with China's partners, the sources of foreign direct investment ( "FDI") and the composition of China's debt. In May 2007, the Chinese central bank announced a widening of the RMB's daily fluctuation against the dollar to 0.5%. This followed an appreciation of their currency by 7.2% against the dollar.

Chinese officials site several alternatives that could be taken in place of a revaluation of their currency. The first suggestion is to reform the banking sector, where up to 40% of loans are underperforming and nine out of ten banks are state-owned. Secondly, they have proposed a "go abroad" policy, encouraging Chinese companies to invest abroad and thus stimulating outward FDI. Lastly, Chinese officials have suggested imposing a voluntary export tax. Unlike with a revaluation, a tax would not affect the value of foreign currencies. Furthermore, the Chinese government would receive much needed tax revenues.

Analysis and Discussion of Case Issues:

Now this essay will discuss responses to questions from the case itself. The first two questions from the case are concerned with how much further China should let its currency appreciate and to determine whether or it is not undervalued as of the time of writing this piece. First, China should never have let the currency fall this far. It has an abundant source of cheap and skilled labor, with a generally high educational attainment level, and does not need to manipulate their currency in order to benefit from strong exports. Yet, this is precisely the action Chinese officials took. This should be immediately corrected before more trading partners are forced to suffer. Regarding the second question, it is clear from the evidence that the currency was undervalued. Given the high level of FDI entering China and its significant trade surplus, the RMB should have appreciated relative to this basket of goods, especially given that the US dollar and Euro have both weakened lately.

The next questions are concerned with the consequence of a revaluation on China and its trade partners and whether any profound reform should be gradual or not. Also, the case study asks about how a floating RMB would impact the exchange rate. In simple terms, a revaluation would benefit most trade partners and come at a significant cost to China. Trading partners, including the US and the Euro Zone will benefit by not losing thousands of workers to the Chinese markets, as had been the case when domestic companies relocated to China under favorable economic considerations. Developing Asian countries will be better able to compete with Chinese exports if a revaluation takes place. Multinational corporations will not favor such a move, as maintaining the status quo allows them to continue benefiting from the low operating costs in China. China would lose in the sense that its economy would likely slow. One could argue, however, that this will happen anyways, given the current state of affairs in the global economy. Current business and political journals and magazines have pointed to the fact that Europe is now in a recession and that the US is not far behind. The credit crunch has not left China unaffected-its economic growth is expected to reduce to only approximately 8% in 2009 according to analysts at the Economists and the Financial Times.

As mentioned before, China is heavily reliant on trade and growth of its exports is vital. A revaluation will eat into its competitive position. This will also likely have a negative impact on their labor market, as fewer jobs may be available in the cities for those leaving the rural communities and entering the urban areas.

To answer the second question, the revaluation should be gradual in order to give the market forces a chance to react intelligently to the change properly and for affected constituents to adjust their business practices accordingly. In response to the final question, a floating of the RMB would cause it to strengthen relative to the other basket of exchange rates because it is currently undervalued due to market manipulation on behalf of Chinese officials.

The last two questions refer to different exchange rates and ask which one is most appropriate for China. There are six major exchange rate regimes. The first is an exchange arrangement with no separate legal tender regime. In this regime, the currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. Adopting this regime implies the complete surrender of the monetary authorities' independent control over domestic monetary policy. The second regime is called the currency board arrangements. This is a monetary regime based on an explicit, legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. Some flexibility may be allowed, depending on how strict the banking rules of the currency board arrangements are. The third regime is the other conventional fixed peg arrangement.

Countries that adopt this regime peg its currency at a fixed rate to another currency or a basket of currencies. The basket is formed from the currencies of major trading or financial partners, and weights reflect the geographical distribution of trade, services or capital flows. There is a limited degree of monetary policy discretion, depending on the bandwidth.

China has adopted the fourth exchange rate regime into its monetary policy, which is known as the crawling peg. The currency is maintained within a bandwidth around a central rate, which is adjusted periodically at a fixed pace or in response to changes in selective quantitative indicators. Maintaining the exchange rate within the band imposes constraints on monetary policy with the degree of policy independence being a function of the bandwidth.

The fifth regime is the managed floating with no predetermined path for the exchange rate. The monetary authority attempts to influence the exchange rate without having a specific exchange rate path or target. Lastly, there is the independently floating regime, which has been adopted by the US The exchange rate is market-determined, with any official foreign exchange market intervention aimed at moderating the rate of change and preventing under fluctuations in the exchange rate, rather than at establishing a level for it. This is the regime that the Chinese government should follow because it is market-determined and not open to manipulation, while maintaining flexibility regarding monetary policy.

Third Party Opinions on Case Issues:

This last section will discuss the current situation regarding this debate. According to the latest news articles from such sources as Bloomberg, the Wall Street Journal and the Financial Times, the Chinese economy has experienced weakening exports because of the US housing slump and the international credit squeeze. China's GDP growth is expected to slump, too. The Chinese government has options to stimulate the economy and protect exporters. Reports claim that officials at China's central bank plan on slowing the appreciation of the RMB. Indeed, this is a decision that should have been made a long time ago and would be a major breakthrough in the ongoing debate, which may actually reach a conclusion given the state of affairs in the global economy.

According to Professor Pan Yingli of Shanghai Jiao Tong University, the RMB was undervalued since the 1997 Asian crisis and such a foreign exchange policy has been used to finance exports and imports sectors at the cost of non-trading industries. Basically, the crawling peg regime adopted by China allows it to manipulate exchange rates in its own favor in order for it to sell more products abroad, as exports are the lifeblood of China's economy.

The Asian financial crisis involves four basic problems or issues: (1) a shortage of foreign exchange that has caused the value of currencies and equities in Thailand, Indonesia, South Korea and other Asian countries to fall dramatically, (2) inadequately developed financial sectors and mechanisms for allocating capital in the troubled Asian economies, (3) effects of the crisis on both the United States and the world, and (4) the role, operations, and replenishment of funds of the International Monetary Fund.

Concluding Remarks:

In conclusion, this case showed how trading partners could be both positively and negatively influenced by the economic decisions by one or more of the players. It is important for countries to realize that we live in an interconnected, increasingly global environment in which important decisions are not made in isolation. In fact, China's decision to pursue exchange rate reform has, for better or worse, greatly impacted billions of people throughout both the developed and developing world.

Creating a Chart of Accounts for a Small Restaurant

Independent restaurant owners often do their own bookkeeping. Even if they hire a professional accountant at year's end, they may save considerable money by handling the weekly tasks themselves.

Setting up a chart of accounts to fit the restaurant needs generally requires customizing the default choices of any accounting program. The selection of sales and cost of goods accounts on most systems does not provide for the separation of food and beverage categories that are needed.

Even the leading bookkeeping program for small business, while it has a default selection for restaurants, fails to provide all of the accounts that most restaurant owners require. In addition, many of the expense accounts that are added are rarely used, leading to confusion during data entry, and do not help with the overview of the business finances.

The National Restaurant Association publishes a book titled Uniform System of Accounts for Restaurants. The book provides detailed descriptions of the application of generally accepted accounting principles to the restaurant industry.

That book includes a sample chart of accounts, but notes that "the codes used here are not the only method for classifying the accounts". It points out that most restaurants will not use all of the categories listed, and it also notably lacks breakdown of inventory and cost categories beyond "food" and "beverage". Many restaurant owners want further separation of those categories to include sub-categories such as "meat", "seafood", and "produce", and possibly "beer" and "wine" for beverage categories.

While many programs do not require the use of account numbers, the NRA book states that some type of account numbering system must be used. If your program is not showing account numbers, it should have an option on a set up screen to activate that feature.

Any account numbering system is generally grouped so that accounts of a particular type fall within a specific range of numbers. For example, assets may be in the 1000 range, and income accounts in the 4000 range. On systems with many detail accounts, 5 digit numbers may be used to allow more sub-categories, but that is rarely needed for a small restaurant.

Typical number ranges that are used by many accounting systems are as follows:

Asset accounts: 1000-1999
Liability accounts: 2000-2999
Equity accounts: 3000-3999
Revenue accounts: 4000-4999
Cost of goods: 5000-5999
Expenses: 6000-8000
"Other" accounts: 8000-9999

Asset Accounts

Asset accounts include cash, bank accounts, inventory, and everything else that is owned.

It is common to assign the first account number, 1000, to Cash, since they are usually ordered, within each group, by liquidity (ease of converting to cash).

A separate account should be used in the chart of accounts for each bank account maintained for the business. If merchant deposits take a few days to reach the bank, a merchant account can be used. Also, if checks are accepted and not processed electronically, an account should be created for checks to be deposited.

New accounts are normally numbered 10 digits apart, so your first two bank accounts may use 1010 and 1020 as account numbers in the chart of accounts. Leaving gaps between the numbers makes it easy to add another account later and squeeze it in to the sort order in any position.

The asset accounts can be numbered as such:

  • 1000 Cash
  • 1010 Primary Bank Account
  • 1020 Bank Account # 2
  • 1060 Merchant Deposit Account
  • 1080 Checks Received
  • 1100 Accounts Receivable
  • 1200 Food Inventory
  • 1210 Meat Inventory
  • 1220 Poultry Inventory
  • 1230 Seafood Inventory
  • 1240 Dairy Inventory
  • 1250 Produce Inventory
  • 1260 Bakery Inventory
  • 1270 Frozen Inventory
  • 1280 Grocery Dry & Canned Inventory
  • 1320 Beverage Inventory
  • 1330 Liquor Inventory
  • 1340 Beer Inventory
  • 1350 Wine Inventory
  • 1360 Merchandise Inventory
  • 1380 Bar & Consumable Inventory
  • 1400 Prepaid Expenses & Advances
  • 1450 Recycle return value

Assets that have a lifespan of several years or more are referred to as Long Term Assets. This also includes any real estate.

  • 1500 Fixed assets
  • 1510 Land & Building
  • 1520 Automobile
  • 1530 Furniture Fixtures & Equipment
  • 1540 Leasehold Improvements
  • 1600 Accumulated Depreciation
  • 1700 Capitalized Start Up Expenses
  • 1800 Security Deposits

Liability Accounts

Liability accounts includes things like credit cards and payables to vendors. It also includes money that has been received for things like tax that is due to the state, tips due to the employees, and gift cards sold but not yet redeemed. Real estate loans and other major financing is sub-categorized as long-term liabilities.

Liability accounts can be numbered as:

  • 2000 Accounts Payable
  • 2110 Credit Card
  • 2120 Credit Card # 2
  • 2130 Credit Card # 3
  • 2140 Credit Card # 4
  • 2210 Sales Tax Payable
  • 2220 Second Tax Payable
  • 2250 Payroll Liabilities
  • 2260 Second Payroll Liability
  • 2280 Tips held
  • 2300 Gift cards & certificates
  • 2350 Customer Credits
  • 2400 Notes Payable
  • 2500 Other debt

Equity Accounts

The owners' investment in the company is represented in the equity accounts. For a corporation, this includes the shareholders equity. It is effectively the money that the business owes back to the owners. When an accounting period is closed, the balance of the income and expense categories is transferred to Retained Earnings, which is also an equity account.

The most basic equity accounts could be numbered:

  • 3000 Owner Capital
  • 3100 Common Stock
  • 3300 Retained Earnings

Income Accounts

Sales fall into the general category of income accounts. A restaurant will obviously want separate categories for food and beverage sales, and may want further separation of beer, wine, and liquor sales.

Typical income accounts are:

  • 4000 Sales Revenue
  • 4200 Food Sales
  • 4320 Beverage Sales
  • 4330 Liquor Sales
  • 4340 Beer Sales
  • 4350 Wine Sales
  • 4360 Merchandise Sales
  • 4500 Catering & contracts
  • 4700 Other Operating Income
  • 4900 Discounts

One difference between the NRA recommendations and many other lists involves the placement of the "other income" accounts. This can include income from sources such as cover charges, games or vending machines, and banquet room rental. Most lists place these accounts in the 8000 range, above expenses, but the NRA list places them in the 6000 range.

Most smaller locations will only need a single category for other income. Since "cost of goods" is a general sub-category of expenses, it makes sense to avoid placing an income category in the middle of the range from COGS through expenses. A single account has been placed in this list within the 4000 range.

Putting the discounts into the revenue category implies that this will be a "contra" account. Where most of the sales categories will have a credit balance, discounts will normally have a debit balance.

Cost of Goods Accounts

The Cost of Goods accounts, also called Cost of Sales or Cost of Goods Sold, represent the food and beverage purchases to provide the meals. Other expenses directly related to sales may be included, such as merchant fees or consumable cups and napkins.

The numbers used here also provide consistency across all accounts, as the last 3 digits of each COGS category is the same as the last 3 digits on the associated inventory account.

A cost of goods list could include:

  • 5000 Cost of Sales
  • 5200 Food Cost
  • 5210 Meat Cost
  • 5220 Poultry Cost
  • 5230 Seafood Cost
  • 5240 Dairy Cost
  • 5250 Produce Cost
  • 5260 Bakery Cost
  • 5270 Frozen Cost
  • 5280 Grocery Dry & Canned Cost
  • 5320 Beverage Cost
  • 5330 Liquor Cost
  • 5340 Beer Cost
  • 5350 Wine Cost
  • 5360 Merchandise Cost
  • 5380 Bar & Consumable Cost
  • 5600 Delivery & direct labor Cost
  • 5700 Merchant Fees

Expense Accounts

This example separates the expense accounts into three primary categories: payroll expenses and other expenses. The payroll expenses are grouped in the 6000 range, with the other operating expenses in the 7000 range. Overhead like rent, taxes, and amortization are bumped into the 8000 range.

While accounts must be broken down at least far enough to separate tax lines, combining rarely used accounts will make the overview much easier to understand. The following list combines several categories that are often separated on other charts.

You should check with your accountant or tax preparer to ensure that anything you combine does, in fact, share the same tax line.

The Inventory Loss / Waste account has been slid in under the 6000 marker, as some may consider it to belong with the Cost of Goods categories.

  • 5800 Inventory Loss / Waste
  • 6000 Labor related expenses
  • 6100 Management Wages
  • 6200 Staff Wages
  • 6300 Contract Labor
  • 6400 Commissions paid
  • 6500 Employee Benefits
  • 6600 Workers Comp Insurance
  • 6700 Employers Payroll Taxes
  • 6800 Payroll processing expense
  • 7100 Direct Operating Expenses
  • 7110 China – Glassware – Flatware
  • 7120 Restaurant & Kitchen Supply
  • 7130 Cleaning Supply & Expense
  • 7140 Decorations & Guest Supply
  • 7150 Laundry – Linen – Uniforms
  • 7160 Fees – Permits – Licenses
  • 7200 Pest – Security – other contract
  • 7250 POS – Tech support – Online serv
  • 7300 Marketing
  • 7310 Media & Print advertising
  • 7320 Promotional events
  • 7400 Automobile & travel
  • 7500 Music and Entertainment
  • 7600 Repairs and Maintenance
  • 7700 Utilities
  • 7750 Telephone & net connection
  • 7800 General and Administrative
  • 7810 Bad Debts – Over / short
  • 7820 Bank fees
  • 7830 Insurance
  • 7840 Interest
  • 7850 Professional fees
  • 7890 Misc. Office expense
  • 8100 Rent and Occupancy costs
  • 8200 Equipment Rental
  • 8600 Sales tax paid on purchases
  • 8700 Amortization
  • 8900 Other expense
  • 9000 Income Tax

Other Accounts

The only remaining items to account for are the sale of major assets, other income from sources besides restaurant operations (such as investments or sub-letting space), and a placeholder account for transactions where the business owner needs their accountant's assistance.

  • 9500 Gain / Loss on sale of assets
  • 9900 Other Income (not from operation
  • 9999 Ask My Accountant

Free Book Summary – One Minute Millionaire – Written by Mark Victor Hansen and Robert Allen

This book is a New York Times Best Seller and I can see why. If you are not familiar with the authors, they are hitters. Mark Victor Hansen is the co-author of Chicken Soup for the Soul with Jack Canfield. This book and series have sold over 65 million copies. That is really unbelievable. I read one of Robert Allen's books back in the late 90's called Multiple Streams of Income. This was and is a great book and is more relevant today than before. Think about it. Years ago, one person could work and support the family and then both spouses needed to work to support the family. In times like this, two people working are not enough because of the job situation and pricing pressures on living expenses. Multiple Streams of Income shows you the power of having your money working harder than you in multiple areas. I will profile that book in a future summary.

Why is this important to me? Requesting you to read a 400 page book is a tall order and request for your time. Thus I want to make sure it is worth it for you to do so. In my humble opinion, this book is worth the time. It is laid out for full mind retention. What this means is that it is two books in one. The left side of the book is the nuts and bolts and left brained stuff that shows you the how to. The Right side of the book is the right brain stuff showing you in a heartfelt story, the principles at work. This makes it much more identifiable to the reader. These two authors have a personal mission to create 1,000,000 millionaires. This is a tall vision that could be seen as a gimmick. It is not a gimmick. You will see that the principles are sound and easy to follow. One thing that drives people is incentives. The stronger the pain, the more incentive there is to fix it. This is a key component to success and it shown throughout the book.

3 This book is packed with great information as well as an excellent story to demonstrate the concepts. For the sake of time, I will chat about the Millionaire Formula which consists of the following:

1. Dream – This is the incentive part of it. The authors have a vision to create 1,000,000 millionaires. This is put in print and part of their DNA. It is what I call their Compelling Why! Without this, your dreams are really more of a fantasy. There has to be real incentive to get the job done. Imagine this, your husband dies, you are left with two kids and no money and his parents take custody of YOUR kids. They have a lot of money and you are broke. What do you do? After you suck your thumb, you find a way to fix the problem. This is the fictional story in this book.

2. Team – Every successful person talks about the power of teams. Teams allow you to leverage OPE, OPT, OPW – other peoples expertize, time and work. When you seek out teammates with the same Dream then you build upon a powerful force and it makes the job much easier to achieve. Thus you get the power of time leverage because in a nutshell, two heads are better than one.

3. Theme – Theme is the way in which you decide to setup your multiple streams of income. You can use a business, licensing, real estate, investments and the internet. I want to spend more time on theme.

I want to relate each of these pillars based on some of the stuff I have done. I am a work in progress and have experienced both sides of the sword on each of these buckets. Based on my initial result in each, I should be on the street corner with a sign that says, "Please help – need a 12 step program in how to stop losing money." Hopefully, you can leverage the good and eliminate the bad. Remember that to truly understand a subject, you have to study both sides. Charlie Munger, Warren Buffett's partner always says – Invert, Invert, invert.

1. Business – A business by far can generate wealth faster than any other bucket outlined. It is also the most difficult. One of the key components outlined, is the creation of the team. I can tell you that if you dig in with the wrong partners, you will lose money and grow old quick. Please give some thought about who you partner with. I have lost more money and taken more ass chaffing's because of the wrong people, that I implore you to give some thought to this. A great place to start is to outline the exit. What happens if we both want out? How does that work? How do we value each part? When you begin with the end in mind then you at least know how you can solve the problem. The real benefit of the business is the structure. You move from "Earn-Tax-Spend" to "Earn-Spend-Tax" which is a huge advantage over time.

2. Real Estate – More fortunes have been made with Real Estate. There are several types and you need to be educated and tap in to the right resources to be successful. You make your money on the buy and the goal is to be to cash flow positive every month. If you are looking to flip then you need to make sure you use 1031 exchanges to avoid the taxes. As you all know, you can lose your tail in Real Estate if you are not careful with the debt or fall in love with the deal. Get educated.

3. Licensing – I first read about this in Robert's book, Multiple Streams of Income. Licensing is anything that you can replicate and get paid on. Thus if you create software, music, books or content that other people want, then you can license it. We have done this in the software world and it is powerful because the cost of your next unit is almost zero. The headache involved is that you need to invest a ton of time and money upfront and your payoff may be three years in the future. This is why licensing is so strong. Today, if you are sharp, you can create mobile apps and license them for Android and Apple. This is a way where you can make a 99 cent item and get a million downloads. There are 15 year old kids doing this as we speak.

4. Investing – Paper investing is probably the easiest to do and the one where most people lose money. If you look at stock market investing, it is really difficult to beat the S & P 500 over time. Everybody knows that you buy low and sell high but there is a small force called EMOTION and 90% of the people end up buying high and selling low. Again, this requires education. You need to understand the difference between price and value. A $ 50 dollar stock may be "cheaper" than a $ 5 stock in terms of price and value.

The One Minute Millionaire is a good book that you should read if you are serious about creating wealth for you and your family. I thought it was a gimmick trying to leverage the One Minute Manager concept. It is no gimmick and the principles are sound. Any time you can leverage the knowledge of two people that have generated over a billion dollars in business, it is worth the time to study them.

I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is DREAM. What is your compelling WHY? If you have the right incentives then the how to part is easy. Spend some time over the next couple of weeks and really decide what you want and START. Taking Action will put you in front of 90% of the people out there.