Month: January 2022

Alexander Hamilton – Father of American Finance

Alexander Hamilton, an orphan at the age of eleven, born on January 11, 1757, in the West Indies, so able in business that at the age of twelve was put in charge of merchant Cruger’ trading business in his frequent absences. His ability to express himself with the pen landed him in New York at King’s College, now Columbia, where he became interested in political matters. After the war started, Washington needed an aide who could take over the burden of correspondence and because of his ability with the pen, Hamilton was chosen.

A Broke Nation

Alexander Hamilton realized that war required money and there was none. He also understood there must be efficient government and there was a loose Confederation. He wrote long letters to members of Congress, setting forth his views. After studying law, Hamilton became a brilliant lawyer and entered into politics. He was alarmed at the way the Confederation was drifting, having no real central power or money and how the states were bickering among themselves over separate finances and tariffs. Hamilton used his pen and hammered his points again and again of the importance of a strong government, a regular source of income, and a Constitution granting such powers. Almost single-handedly he initiated the Constitutional Convention. There, the others listened to him with respect, but thought his views too strong for popular approval. The final Constitution was a compromise of Hamilton’s extreme views and more moderate views of the others, of which Hamilton fought for ratification, writing the Federalist Papers, with Madison and John Jay, where they masterly convinced the reluctant states to come in line.

After the ratification of the Constitution, George Washington took the office of President and appointed Alexander Hamilton to head the Treasury of a bankrupt nation.

Hamilton’s views were strongly for a central government, which he thought was the only way to gain and maintain peace and the only way to get such government was to interest the rich through their pocketbooks. He added privately that he preferred the rule of the wise, the rich and the well-born, which was the complete opposite of the beliefs of Thomas Jefferson.

Hamilton’s Financial Plan

As Treasurer, Alexander Hamilton evolved a series of far-reaching measures, First, a tariff on imports and an excise tax on certain domestic products. Second, a funding system by which the outstanding debts would be called in, and interest-bearing bonds issued in their place, dollar for dollar, insisting that this was the only way credit could be sustained. In spite of the opposition, Hamilton forced the funding through congress.

Third, Hamilton’s plan was to set up a Bank of the United States, to establish a free flow of currency, to aid business, and to borrow from in time of need.

Part four of his plan was to encourage manufacturing through government bounties and a protective tariff, which failed and delayed the industrial age in the United States for at least a generation.…

How Owner-Finance Of Real Estate Can Get America Out Of The Mess And Prevent It From Happening Again

The obvious answer to not letting a bank, a mortgage broker, or a real estate agent/broker turn Americans into fools again is to not use their “services” again. Can this be done? How can this be done? The answers are quite simple. This article will elaborate.

What would the world look like if ordinary Americans stopped acting and thinking like SHEEP and started acting and thinking for themselves? Remember, sheep get slaughtered or sheared. So why not start taking charge of one’s own interests directly, whereby the buyer & seller enter into real estate transactions interactively with each other – without involving a middleman? Would there be a banker devising various junk fees? Would there be an appraiser to phony-up a value? Would there be a realtor to build up hopes for pie in the sky?

The intention would not be to eliminate the attorney or the title and escrow companies. Neither is it necessary to do away with the real estate agent – “IF” that rare agent can be found who really understands how simple his/her job SHOULD be. That job of course, SHOULD be 1.) to bring buyer and seller together in an atmosphere whereby both buyer and seller can interact with each other DIRECTLY, and 2.) to understand that the second part of his/her job is to bring both buyer and seller to an official closing at either a title company or attorney’s office.

Homes sell much faster and easier if there is owner financing involved. No question! Any seller who does not need the money should consider owner financing, for either all, or some part of the purchase. The seller can charge an interest rate if he chooses, that would easily outdo what he could get if he/she were to park the money at the bank. Plus, the seller has the security of the property itself to back the loan. What security does the bank provide for parking money in THEIR bank? It’s a piece of paper that says the money is safe. An owner who carries back the financing has the backing of his/her OWN property for safety by way of the “note and deed of trust,” or “mortgage” that he/she holds. Thus, the banker, whenever, and wherever possible, can be eliminated. Owner financing, either in part, or in whole can once again become the common way of financing real estate in America.

The reader might ask, how would prices for properties be determined? That is quite simple! The internet has some excellent sites whereby the seller (and buyer) can determine what similar properties are selling for in their immediate area, e.g., within one/half mile, same size, same construction, same age, same design, same landscape, and last sold within the past 3 months. A good, honest real estate agent (honest intellectually as well as otherwise) could also help with this; however, that agent’s comps will only be …

Getting The Right Protection For Your Life And Business

How well are your life and your business covered in the event of any major problem? By this I do not just mean is your life insured, and your business carrying liability insurance as well as property insurance, but are you fully covered for all eventualities?

There are many things that may occur in life that you may think you have adequately protected against, only to find life throws you a curved ball that changes everything at home or at work. These days it is vital that you think in detail about what protection you need in place in your life to cover off as many potential problems as possible.

This particularly applies if you are self employed or are the owner of a business. This is because if you are self employed and are ill or get injured and cannot work, unless you are insured for loss of earnings then you could find that things get very difficult indeed. The same applies if you own your own business, if you died your life insurance might cover your family and home, but what would happen to your business? Could it carry on? Have you even made a will covering this eventuality? Many people forget this when making a will and only focus on personal assets.

You need sound financial advice on not only ensuring that you have the correct insurances in place to cover such eventualities, but also it is wise to seek advice as to how you can plan things to keep your business going should you be absent from your business for any length of time or even permanently.

You also need to take advice if you are in a partnership, as to what happens to the other partners share should either of you die, if not you could find your partners family sell their share to a complete stranger or even a business rival.

The good news is with the right advice and financial planning and protection in place then many of these problems can easily be catered for, however it is vital that you put protection in place before any of these problems occur as if you wait until they occur then it is simply too late. If you are self employed and do not have sickness cover then you could easily lose your contract, your income and then your house in a very quick time indeed. So put the right financial protection in place for your life and your business before a problem occurs.…

Principles of Financial Success You Must Know (Part 1)

Financial success simply means the achievement of the financial status you have dreamt of. What has been your dream? Is it to become a billionaire, a millionaire or simply to be able to afford three square meals daily? Whatever dream you have, you should know that they are realizable if you set out to pursue them diligently and vigorously.

Some people erroneously believe that the only way to succeed in life is to work hard, harder and harder. It is actually good to work hard because success does not come on a platter of gold. But it takes more than just hard work alone to succeed in your business or financial life.

If your desire is to succeed after reading this article and after participating in my training course, then you have to be prepared to observe the following principles:

1. Spend less than you earn: In order to get financial liberty one needs to spend less than one earns. You must not consume everything you earn at the end of each month. You must have something left from your salary or business profits: don’t spend everything without anything to save for the future. It is the one that you have left at the end of your expenses that contributes to make you rich, not what you spent. Your expenses actually make you poorer and make someone else richer. So when next you are tempted to spend the whole of your monthly salary you should resist the temptation.

2. Pay yourself first: It is strange to so many people that they should first pay themselves before making any expenses from their monthly income. When you receive your salary/wage for instance, you have to remove your tithe first; then pay yourself certain percentage (say 5-10%) of your income before spending the rest on whatever you desire.

3. Plan for uncertainty: Always envisage problems and think of a way of overcoming such problems should they arise in the future. Think of you, your wife or your child falling sick suddenly. Think of you being presented with an opportunity to buy a valuable property at a very cheap price. Imagine a company you have been waiting to invest in suddenly presenting you with the opportunity to buy its stock. You must have some money kept in a separate account to take care of such situations. Make sure to deposit some amounts into such account periodically.

4. Be financially literate: Business success requires some level of financial training. For you to win a gold medal in athletics you need physical training; in order to succeed in farming you need basic training in farming or agricultural science. To be a successful engineer you need to attend a university, polytechnic or a technical college. In the same vein, business and financial management require basic training for one to do well. You should not jump into a business where you have no basic or elementary knowledge otherwise you …

How to Talk to Your Spouse or Partner About Finances

You probably know the old saying. The one that says the three topics you should avoid talking about are: (1) religious beliefs, (2) national politics, and (3) finances. While the first two are questionable, it’s vitally important to have personal finance discussions with your spouse or partner. Understanding how to speak about money, in a helpful and worthwhile way, can create the best foundation for both your relationship as well as your financial well-being.

Even if you are not married, if you share some amount of fiscal duties with someone else in your household, it is recommended you communicate about your finances. Even though we know we should do it, not everyone recognizes how to have successful “money chats” that don’t cause hurt feelings or even anxiety. This is most often because talking about money calmly and constructively is difficult when you do so only after a problem has already arisen. All things considered, it is usually fairly challenging to maintain your calm just after your significant other just revealed to you that you are having problems paying your bills, or maybe when you are they have just now made a precarious funding shift. As opposed to making unplanned or quickly arranged interactions concerning your economic destiny, address the matter in a way that will definitely lead to the best situation, logically.

Find a Great Money Manager

When most people begin a romantic relationship, few think about the need to be prepared in terms of financial responsibilities. Even worse than not planning, is the perception that money problems will merely go away or work themselves out without any effort. Needless to say, that’s obviously untrue. Research findings suggest that the more people disagree about finances, the greater chance they’ll split up. That is precisely why it is vital that you discuss your family assets often, and do so effectively. One method to do that is by seeking the advice of a fiscal manager, together, not separately. These financial managers work alongside you to produce suitable financial targets, and also give you support in accomplishing your financial goals. They are able to serve as an impartial and objective 3rd party, can inform each of you regarding your financial investment options/opportunities, and also make it easier to resolve issues on the subject of monetary decision-making.

Schedule Financial Conferences

But do not merely rely upon a paid monetary advisor, but be accountable for you and your significant other’s financial resources. The two of you should set a regular date during which you will sit together and talk about your budget. It is imperative that you go over the fiscal assets both of you have in common, in addition to the income you’ve made and use separate from each other. Throughout every single money meeting one of you ought to record the ideas you talked about, just in case the info is required down the road. And don’t be afraid to make these meetings …

Personal Finance – How to Track Your Spendings

If you suspect you are overspending, you need to save. But saving itself is a habit that needs to be cultivated over time. What now? Fortunately, you could track your spending. Analyzing on what you spend is the best way to avoid overspending. How do you track your expenses? Well, by writing down on a piece of journal with a pen of course!

If this is your first time, it can be awkward. This is especially true if you are already an adult. Good habits of saving should be learned since childhood already. Nevertheless, it is never too late.

To get the dice rolling, get your hands on the following:

– Your recent pay slips

– Tax documents (especially the returns)

– Banking bills, payment records (offline and online)

– Registers for chequebook (this includes cancelled cheques) and debit card transaction history

– Credit card bills

Compile the documents necessary to keep track of 12 months period of spending.

But if your spending patterns are consistent throughout, you can reduce it to a 6 months time frame. Whenever you make a huge spending, be sure to include that month when the expenses occurred.

Cash payments are hard to track

This is because they do not have a paper trail. How do you solve this? Easy. Record everything you buy with cash during a week time period. Sometimes, you might get lazy and estimate the amount. This is also fine to do.

Label your expenditures into useful categories

Classify them into sections like taxes, house, food, transportation, lifestyle, debt repayments, leisure, personal care, health care, insurance and so on.…

Things To Do Before You Make Your First Sales Call

Imagine you are making your first sales call with the intention of selling a financial product or service to a potential client. This can be a truly daunting task! You are likely to have conversations with “Gate keepers”, PA’s, EA’s, Switch board operators and other staff who do not have the authority to purchase your product or service in the first place. In addition you may be delaying them from doing their daily work and adding to their stress levels. This may lead to them refusing to take the telephone conversation any further and have the effect of impacting on your self confidence too.

Now, I don’t know about you, but I heard many children’s stories when growing up that have a moral or teaching point embedded in them. One that springs to mind is that of Robert the Bruce, who despite losing many battles with the English, finally won freedom for Scotland. The moral being: try, try and try again until you succeed.

This may seem like a good moral story, however, in the field of business or indeed life, this could be disastrous. The word “try” itself implies failure. If you are “trying” to do something you are not actually doing it! If you are trying to win, this implies you are losing. If you think back to how many times you may have heard the phrase “I will really try to make it…… “. Now compare this with the phrase “I will definitely be there”. They’re worlds apart, aren’t they?

In business, yes you can try things but if they do not work you must try something else until you find one that works. Alternatively, you can learn from others mistakes and utilize techniques that have a higher success rate than others. Simply trying without gauging results is like watching a movie several times and expecting a different result each time.

It is a fact that it is getting harder and harder to talk to the right decision maker/buyer, especially in a larger organization. You have to remember that people are busier than they have ever been at work. The key decision makers are normally the busiest, running from meeting to meeting, so catching them may be extremely difficult.

Below, I have listed some of the main things to do before you even consider making your first sales call to a company:

Research: Before making your first sales call you must research the organization thoroughly. Looking at the company’s website is a good start. It can give you a good idea of the organizational structure however you may still not get the names of individuals you require to make your sale.

Human Resources Department: Most of the larger organizations have a Human Resources department. This is the key department to contact and simply talking to one of the HR team can give you valuable insight into the buying power of key individuals within the organization.

Offer Value:Every …

How to Keep Insurance Cost Down

Auto insurance providers will normally base the rates on several factors like your driving record or type of vehicle you own and its history. Listed below are several ways in which you can get lower rates or cheap car insurance.

1. Your vehicle has at least one or several anti-theft gadgets installed.

Insurance companies can give discounts as high as 15% on your comprehensive coverage as long as you have very effective anti-theft gadgets installed on your vehicle. Usually, the most effective of these gadgets are already built-in by the vehicle makers. One of the most effective is the motor cut-off switch. It is a device that disables the motor if the correct key is not inserted.

2. You decided to combine your insurance policies with the same insurer.

If you already have a current policy like homeowner’s insurance with the insurer, you could get a 10 to 15% discount on your auto insurance.

3. You have a good and stable credit score.

Generally, insurers consider drivers or vehicle owners with good credit scores as good customers who deserve lower auto insurance rates. The insurance company will check your credit scores as part of their routine check. You have to check your credit standing from time to time in order to ensure that there are no adverse reports on you. If there is a negative report on your credit standing, you must do all you can to have it removed.

4. Some vehicles get lower insurance rates.

Statistics and scientific crash tests have shown that some vehicles are better at saving its driver and passengers from injuries during accidents. Owners of such safe vehicles are given a discount on their personal injury protection coverage or its equivalent. However, insurers also take into account the amount of damage that certain vehicles can inflict on other vehicles during accidents. Such a vehicle can get a higher premium because of the large amount of damage it can inflict. Sports utility vehicles usually pay higher premiums because of this while many sedans and minivans do not.

5. Auto insurance providers give discounts to safe drivers.

Insurance companies could give discounts by as much as 40% to those they deem as safe drivers. If you have not been involved in any vehicular accidents or traffic violations for the past three years, you are eligible for such a discount. Those who successfully passed a defensive driving course are also qualified for lower rates.…

What You Can Buy Vs What You Can Afford

Here do We find two friends strolling along in the mall on a lazy Saturday afternoon. Passing by their favorite clothing store they quickly duck in to check if the new fall line has finally come out. Grinning with glee they stare rapt at the new clothing on display. What a day of days!

One of them quickly picks up a shirt and when the other asks “can You afford that?” they receive a smug smile in reply.

“Of course it’s only $200.”

“Wait a sec, how much do You have in Your account again??” asks the friend bewildered. Now comes a large show of teeth from the pursuer of a purchase.

“$205!” the soon to be purchaser exclaims.

Even though this story is attempting to illustrate my point in the extreme it is still true that individuals can confuse what they can buy with their bank balance to what they can afford with it.

For example it is true that You could buy a Ferrari if You had $250,000 in Your bank account and were making $100,000 a year but that doesn’t mean You can afford it.

Running costs, servicing, the cost to Your savings and investment plans have to be taken in to consideration.

When these are taken in to consideration then it can be seen that buying something and affording to buy it are two very different matters indeed.

Though I have covered the topic of spending wisely in other articles I’d like to re-express it here.

When going out to buy things consider how much they cost in a broader sense. If You want to have a given amount of money in the next 5 years is the purchase You are about to make going to help that goal or hurt it?

Are You living beyond Your means by buying things which then eat into Your savings every month?

Are You only paying the minimum on Your credit cards?

Have You taken out loans to buy things and not to invest the money so that You have a higher return which will pay back the loan and leave You with a profit?

If You are engaging in any of these actions then You are not living a life You can afford and reconsidering Your fiscal habits is in order.

Remember, all of those things You want are going to be in the stores in 6 months or even 6 years and if they aren’t by the time You get there something better will be waiting for You.

Whenever You are getting discouraged by the fact that one of Your friends ‘already has’ a ‘new car’ or ‘new watch’ or ‘new apartment’ You have to understand that maybe they have had better fiscal habits than You and that is why they have those things.

I’ve expressed it before but I will express it again. It is better to learn to do things the right way once no matter …