Financial Independence

NEVER BE BROKE AGAIN

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free-manThis is a tough one, are you ready? Say I’ll never be broke again.  Say it again this time slower and louder (yes outloud)…I’ll never be broke again…if you are in a place where you can yell and not disturb those around you….tune up them vocal chords and let it out…”I’ll never be broke again!”

Yep! That’s an accurate statement because today we are going to learn how to methodically remove ourselves from the rate race! What is the rat race you ask?  It’s process of giving your time without any return.  In real estate and even in investing it is called ROI which stands for return on investment.  Now ask yourself why work 40 or more hours a week without a ROI?  I will make this as simple as possible but remember you have to do the work consistently.

Take 2 men that have been friends since childhood. The both experience the same education, same books, same food, same neighborhood and for my religious people out there….the same church.  Why is one guy poor and the other guy rich? ( no this isn’t rich dad poor dad…good book though if you haven’t read it support me and pick up here for almost nothing)…one simple thing was done.  The rich friend saved 1/10 of his earnings each and every paycheck.  That’s it!  I could stop here!  I should charge each of you $10 for the information just given out freely…okay I’m only kidding.  This is Richest Man in Babylon, also available for almost nothing…yea I could use some support lol.  Back to the program!

Every time poor guy got paid he spent ie wasted his money on things that weren’t necessary. He didn’t have anything left over to save.  This is where most young people are!  They live for the moment!  It’s all about right here, right now!  Instant gratification!  However it is possible to have your instant gratification filled and still be able to invest your tenth.  Ok walk with me, hopefully I can convey this properly in writing.  For those visual learners here’s a graph:

THE SECRET

Let’s focus on your next 10 checks. For each check you received, take a tenth and put it in a separate online savings account.  For example if you make $500 a week and get paid every 2 weeks then a tenth for you is = to $100 dollars.  Right? $50 for each week!  Well if you’ve never a been saver you’re in for some really good news.  Are you ready?  Do this for 10 paychecks and you should have at least $500 dollars saved within less than 3 months.

Let me be clear, I strongly urge and recommend paying tithes and offering to your local church where hopefully you attend on a regular basis. If you have not a local church to give your tithes and offering just comment on this blog and I’ll be sure to point you in the right direction.

I tried to make this very simple, my10cents, save a tenth of all earned and invest.

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GENESIS INVESTING Pt.1

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genesisIt’s too much! I don’t know if I’ll get it right!  I don’t have any money already!  Keep this up and most likely you never will.  Somehow, someway we’ve turned the task of saving $100 per month towards investing into a daunting task that can never be achieved.  Not so…let’s get to it there’s some money somewhere in your income that can be used to initiate investing let’s find it.

START HERE

STEP ONE: W-4

This is form usually provided by your employer is used to determine withholding tax. To be clearer this form determines how much money is withhold from your pay check to cover federal taxes.  My goal here is to keep this as simple as possible as to provide action steps one should and could take to discover money they already have.  If every year you are receiving an income check you need to readjust your W4 form, clearly you are overpaying in taxes.  Some people see an income tax check as a automatic or forced savings plan…this is not a wise solution in my opinion.

Let me explain why: For a whole year you have been putting money aside…this money has not been earning it’s just been sitting around doing nothing…at least nothing for you! Let’s say you made $10/hr which equals a salary of $20,800.  Well to adjust your W4 you need to see which tax bracket you fall under.

2016 IRS Tax Brackets

Tax rate Single filers Married filing jointly or qualifying widow(er) Married filing separately Head of household
10% Up to $9,275 Up to $18,550 Up to $9,275 Up to $13,250
15% $9,276 – $37,650 $18,551 – $75,300 $9,276 – $37,650 $13,251 – $50,400
25% $37,651 – $91,150 $75,301 – $151,900 $37,651 – $75,950 $50,401 – $130,150
28% $91,151 – $190,150 $151,901 – $231,450 $75,951 – $115,725 $130,151 – $210,800
33% $190,151 – $413,350 $231,451 – $413,350 $115,726 – $206,675 $210,801 – $413,350
35% $413,351 – $415,050 $413,351 – $466,950 $206,676 – $233,475 $413,351 – $441,000
39.6% $415,051 or more $466,951 or more $233,476 or more $441,001 or more

So as you can see from this info provided from the IRS website your tax bracket is 15%. Your salary  OF $20,800 falls with the tax bracket of 15%.  Want the exact number?  12.77%

Tax Year 2016

Filing Status: Single             Taxable Income: $20800

Tax: $2,656.25                 Tax as % of Income: 12.77%                 Tax Bracket: 15%

Feel free to jump over to the IRS website and do your own calculation real quick to determine your exact tax rate. Got it ok now let’s keep going….

Now here’s a divide because some will tell you to get all your money now, which isn’t a bad idea. Yet others will say adjust your W4 so that by year end you have satisfied your amount due.  Which either way you choose is I’m okay with.  Though I like the option of investing now rather than later, it’s your choice.  So let’s take a look at the money we’ve been missing: $2656.25 per year.  Per month $221.35!  Yes can you see it now….you’ve been missing out on $221.35 per month!

Now let’s see what happens if we invest $221.25 for one year…because before you were putting this money aside and you didn’t ever realize it. Right?  If this was invested over a 5 year period at 9%.

  • 1st Year = $2,789.69
  • 2nd Year = $5,599.99
  • 3rd Year = $8,674.90
  • 4th Year = $12,039.36
  • 5th Year = $15,720.62

According to radio show host, Dave Ramsey, the average is S&P 500 is somewhere around 12% and we used 9%. Hopefully you can see the benefits of investing now rather than later. Yes?  I wish somebody had told me years ago about this.  I was throwing money away like crazy and I could have easily invested my money so that it was working just as hard as I was.  Don’t judge me…we all, ok… most of us wasted money in youth simply because retirement isn’t something that youth think about…furthermore most people don’t believe that they can be a millionaire or have increased wealth due to their surroundings, environment, education, self-worth, self-esteem or just simply how they think and view money as a whole.

Investing isn’t as hard as we once thought it was, sure it comes with certain complications.  One thing is certain though, if you never invest your money doesn’t stand a chance at gaining interest.   My10cents, revisit your W4 ASAP!

Man In the Mirror

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manlooking-in-mirror3

Two steps forward then one backward. Review progress.  Two larger steps forward and one regular step backward.  Review progress.  One dollar gained here, three dollars lost here.  Whenever we attempt to make a change towards doing better or try to set in motion something to improve who you are…brace yourself for opposition.  No I’m not saying that someone is blocking you or hindering you from doing what needs to be done.  There’s not a mass group of ‘haters’ plotting your demise.  Oft times are biggest opponent is the person we see when we look in the mirror. Go ahead…I’m sure you have a mirror near you.  If no mirror use your front facing camera on your smart phone (yeah I know you got that!)  We spend our whole life battling ourselves?

It’s easier to blame those that are close to us. Perhaps even to blame it on our upbringing.  Blame it on lack of education, tradition, my circle of friends our even worse…my church!  However at the beginning and end of everyday it’s always you.  Could it be mindset & perspective?  It’s a wide known fact by now that the biggest room is the room for improvement.  Yes, self-improvement!

How we see things directly effects and affects how we process things. It’s easy to yell out a few choice words to the driver that cut you off on the highway during rush hour and you were already late.  Or is it really you that deserves the blame, for not waking up early enough to miss rush hour traffic. (and if you live in Atlanta rush hour is way longer than an hour it’s more like 2 – 3 hours from your start to finish)

Maybe it’s the struggle, dare I say the battle even, for weight loss. Mindset.  Perspective.  I was recently in a Weight Watchers meeting at my job.  The WW program offers several weekly meetings, were the main focus is on changing your mindset and how you process on a daily basis.  If you join any type of leadership or mentorship type program a lot of time is spent on the developing mind.

Our mind is affected by mainly 2 things: the seen and the unseen or if want to keep this towards our financial psyche ie cash & credit. Ask yourself would you rather have cash or credit?  We automatically have questions upon questions…how much is the cash? How much credit? Is both cash and credit possible to have at the same time?  How does cash make you feel?  Stressful?  Overwhelmed?  Happy?  Do you walk a little different when you know you have cash in the bank?  Or is it easier to sleep-in from work when we have more money in the bank than usual.  Mindset.

In conclusion, my10cents, working on your self is never time wasted. Taking time to understand your mindset regarding money is time invested and not time spent.

(We welcome all comments and or questions)

Big Business

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big-business-4Our calendar is getting us in trouble.  Major corporations years ago did something pretty smart businesswise.  They use the calendar to increase their bottom line. Notice how the major holidays are spread out as the year starts but towards year end they are back to back one after another.  All in attempt to get more of your hard earned money. Yes we fell for it…we fall for it every year!

Oh the pressure that man feels as Valentines Day approaches.  Could you imagine how she would feel if he, her man, her love…maybe even father of her children, did nothing for her on Valentines Day.  Can someone say doghouse? jk…not really!  Even if you’ve been married for years upon years you better do something for her.  Afteral it’s her day right!  Big Business.

Mother’s day same thing.  Especially if the kids are grown and working fulltime…that mother is expecting something! It would be unwise for a son to not do something for his mother right? Big Business.

Big Business plays on our emotions, as consumers we fill that we must comply with the system and take part in every major holiday event.  This of course doesn’t in any way make up for the important days like birthdays and anniversaries.  Did I mention the annual family vacation that must happen regardless of financial circumstances?  You need a job just to support the VIPdays.  Big Business has us wrapped around their finger look at November….Thanksgiving into Black Friday (weekend event) into Cyber Monday (week event) and turn around and December it’s Christmas shopping for the entire month!

Maxed out credit cards, abuse of title loans and payday loans all at 25% and more!  Rent money used to buy gifts and spent on food for the lavish dinners that we “must” have.  Only to incur late rent payments, missed payment due dates etc etc.  Big Business.

Your life and family is your biggest business.  It is our duty to ensure that we are able to protect, provide and support our love ones.  Especially those whom we call our own.  We have let business traditions convey the wrong messages.  These messages are everywhere.  In the music, tv shows, commercials, billboards and not to mention in mass overload on social media platforms.

My10cents, I understand that the goal of business is to make a profit, it’s my responsibility to make sure the profit our family makes is moreso invested than consumed.

Due Date-Final Notice

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due-date

Final notice!  This is our final attempt!  Past due!! Overdue!!!

Have you ever received these depressing and harassing notices in the mail?  (not to mention the automated phone calls…”this is an attempt to collect a debt…this call is recorded) whew whateva!  I’m flipping the script!

I’m setting my own due date!  March 1st!  $1800 in debt…be gone!  Basically leaving a short month of February to get that debt down to zero.  It’s possible!  I got a plan in place, I’ll have to say no to a few people & places, but thats ok.  The reward of that weight being gone will be worth it. Some people will understand and some won’t.  To each there own, at the beginning of the day, I am responsible for my current present situation be it good or bad. I refuse to sit or stand or watch idly and pretned

*(why do we say at the end of the day…by then its too late)

I’ll report back around the first of March! …then that’ll leave me with just this crazy ridiculous care note!  Which will be the next step!  Ok for real for real, I don’t expect you to be excited for me…(wait… I have haters?)  I’m being transparent to help whomever is willing to be helped, someone reached out to me…now I’m reaching back

Research shows that if a person invests 23% of their income starting at age 19, by 43 they’ll be a millionaire.  Thats 22 years before retirement!!  See most will read that and just say its not possible.  It is!

We don’t have to live above our means.  We can make it on a 4 or 5 digit income.  I know that’s tough…just do it! #nike  You’ll be glad u did…I promise!  Outsmart your situation and bounce over the obstacles set by life to bring distraction to your vision, mission and purpose.  Do this right and you’ll be making money while you sleep!  Oh how we love to sleep…in due time my friend!

My1ocents, I dare you to set a due date!

I got 5 on it

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5ooo

Secrets? Apparently Victoria had one.  Apple had one concerning their logo and the bite mark.  Some rich people have family members that start Gerber accounts for the newborns that grow in interest till 18.  McDonald’s yellow arch….(whoa….say that again!)  Which part? (Gerber accounts for newborns?)  Oh yea it’s been around for ages.  The rich families open a new account for each of their newborn children.  Family members would then donate to that specific fund.  I don’t want to bore you but let’s do a little visual math:

RICH FAMILY: I only have 5 shown here but the concept is that family members invest until the fund reaches $5000.  Aunts, uncles, grandparents, etc… from both sides of the family, from her side and from his side.  Everyone invests!  It may take a year, maybe even a few years.  Once $5000 is reach the investing is done.  This account is often left alone until the child turns 18 or 21 years of age.  Is this making sense now?  Let’s get into it a little deeper!  They say a picture’s worth a thousand words.  I got 5 on it!

For example: Let’s say it takes a year to to reach $5000

baby5

$5000 @ 12% Interest (3% Inflation)

5k

Principal Invested – $5ooo.00 in 20 years $55,094.16

Balance in 20 years – $55,094.16

In conclusion, because the pictures are saying more than I am, my10cents, how old are you & what are you waiting for?

 

SPECTATORS

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​We’ve all been a spectator at some point.  Most things are designed that way.  We watch sports, the shopping network, reality shows or for me flip that house shows!  We get excited!  We may even invite friends & fam over to join in on this activity of spectating.  Perhaps cook even a ‘superbowl’ meal to accompany the event!  No one present spectating is actually involved in whats being spectated moreso rather, they are there to help the spectation to be a success.

Could it be that by nature or if even by habit, we take on the role of spectator in our own personal lives?  One man said that if you don’t plan your life, life will make plans for you.  The hardest step to take is always the first.  Why not make a decision to improve the overall well being of your life, your family?  The fact of the matter is that if you don’t, no one else will. 
People are struggling everywhere and in many areas.  See if we want to lose weight there are certain specific things we must do.  Watching the Biggest Loser is simply not enough. Right? If we want to be a karate instructor watching Bruce Lee & Jackie Chan simply isn’t going to make you a blackbelt anytime soon.  Neither will it lead to you running & instructing a karate school for kids.
Put me in coach! My friend would always say he was 4 feet 2 85lbs and always walked around say “I just want to sack somebody!” Naturally when the play started he was the first one laid out on the field! Yes every play!  I never saw him sack anyone! He never quit & even though he was getting beat up all over the field, being on the bench wasn’t good enough for him.
Your present situation should be your motivation to get in life’s game.  You wouldn’t intentionally allow self destruction. Would you? Love yourself enough to get involved.  Learn. Study.  By any means necessary you can do this.
In conclusion, my10cents, everyone can play and they should but if not…you can watch me.