Gas prices and the middle class

I have noticed lately it seems gas is most expensive in Ritzville and in the Hood. Life seems to be the same way – the rich and the poor stimulate the economy. Rather ..the rich and the poor are the economy, or so it seems. And the middle class always seems to find a way to separate themselves from it just a simple observation today..

Okay I’m not saying the middle class are not actuall part of the economy honestly that would be foolish. I’m just saying it seems that the rich buy the asset that the poor spend money on which are liabilities to the poor. The middle-class, the real middle-class, which is greatly shrinking and for the reasons I am talking about here(that and they are at or approaching retirement), stash their cash and avoid paying interest. In an economy that is entirely built on debt, very little is contributed financially outside of the fractional reserve dollars that they create by holding their money in savings. However, the real value created by these people is usually very high when you look at the quality of workmanship they produce in the small business sector. The rich and the government however beat the hell out of them. We have been seeing this especially in recent years with this bloodbath of the middle class.

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The Facebook Crash Isn’t What It May Seem (as usually is the case with anything on Wall Street..)

I haven’t been very social lately. We’ve had the playoffs….the playoffs….ummmm…..the NBA Playoffs… Go CELTICS!!

Oh and we’ve been selling a TON of houses!!

Silver has been falling. “Sell in May, and go away.” So they say anyways, we’ll see. It’s an election year and we know that Central banks are trying to prop up the dollar as long as possible. We’ll see if we see QE3 after the election and a skyrocket in silver pricing tho.. The USD (US Dollar) is higher than it has been in over a year at over 82.

Facebook has gone public!

Many people think that when there is a stock IPO(Initial Public Offering) that it’s the first time people can buy stock. That’s not actually quite accurate.

It IS the first time the general public can buy the stock. But before the general public can invest, accredited investors get their shot first, and at a much lower price! To be an accredit investor, you have to meet certain criteria that the SEC sets out. Basically this means that the wealthy get an advantage with investing..No surprise!

Facebook stock opened up near $40, and it is now below $30.

Facebook shares dropped 10% today at a drop of over $3.

Many people are saying the IPO for Facebook was overvalued. Those who claim this might talk about how Google has 10x the cash flow of Facebook and 10x the strength on their balance sheet. What Facebook has now over Google is social usage. Google is working on that, but they got in late.

But here’s the thing: When a stock goes public, it is meant to benefit the company!! They make money by selling shares.

Facebook is smart and finds a way to do smart things. Zuckerberg is simply not your average CEO. There is something different to Facebook. It has swag. Facebook continues to adapt and integrate with other platforms. This is why I was wrong 2 years ago when I said Facebook was on the verge of falling to other platforms like wordpress and blogger.(right before my parents got on Facebook!) hah!

Will I invest in Facebook? I dunno…

With real estate, I can control my investment.

If Facebook keeps dropping, I can come up with a lot of fundamental analysis to support getting in. But I just don’t know…

What I can tell you I definately will buy more of if it keeps falling, is silver. I promise you I’ll pick up on that. I forecast QE3 after an election and more devestation to the European Union shooting the price of silver up.

If you want to follow Facebook as a company daily, and you commit yourself to a solid education in stocks, you can make money in Facebook. This way, you can make money whether Facebook stock goes up, goes down, or goes sideways.

But whether it’s Facebook stocks or any other investment, do your homework and don’t trust the BROKErs.

 

Happiness Creates Success.. In that order!

Written by: Joshua Gayman

90% of our long term happiness is predicted not by the external world that we live in, but by the way our brain processes the world. If we change our formula for happiness and success, what we can do is change the way that we can then effect our reality.

25% of job success is predicted by IQ.

75% of job success is predicted by optimism levels, social support levels, and ability to see stress as a challenge, instead of a threat.

The absence of disease is not health. 

Our society(schools and companies, parenting styles, management styles, motivation styles, news, etc..) operates as tho:

“If I work harder then I will be more successful, and if I am more successful, then I will be happier.”

This is broken and backwards for 2 reasons:

  1. Every time your brain has a success, you just changed the goal post of what success looks like. IE: You got good grades, now you have to get better grades. You got into a good school, now you need to get into a better school. You got a good job, now you got to get a better job. You hit your sales target, we’re going to change your sales target.”*If happiness is on the other side of success, your brain never gets there. We think if we have been successful that we will be happier, but we keep ourselves from ever getting to that state.
  2. Our brain works in the opposite order. If we can raise our level of positivity in the present, then our brain experiences a “happiness advantage.” Which means our brain at positive, performs significantly better than it does at negative, neutral, or stressed. Our intelligence rises, our creativity rises, our energy level rises. In fact, every single business outcome improves. Our brain at positive is 31% more productive than our brain at negative, neutral or stressed. We are 37% better at sales. Doctors are 19% faster, more accurate at coming up with a correct diagnosis when positive versus negative, neutral, or stressed.

***By becoming positive in the present, our brains work even more successfully, because they are able to work harder, faster, and more intelligently. This means we need to reverse the formula if we want to find out what our brains are actually capable of.

Dopamine floods into your system when you are positive. This has 2 functions:

      1. It makes you happier.
      2. It turns on all of the learning centers in your brain, allowing you to adapt to the world in a different way

*You can train your brain to become more positive.

In 2 minutes for 21 days in a row, you can re-wire your brain to work more optimistically and more successfully.

Write down 3 new things that you are grateful for over 21 days. After 21 days, your brain starts to retain a pattern of scanning the world for the positive and not the negative. Journaling about one positive experience that you have had over the past 24 hours allows for your brain to relive it. Excersize teaches your brain that behavior matters. Meditation allows the brain to get over the cultural ADHD that we’ve been creating by trying to do multiple tasks at once, and allows us to focus on the task at hand. Random and conscience acts of kindness praising or thanking someone in their social support network. (1 per day)

By doing these activities, you are training your brain just like we train our bodies, we can reverse the formula for happiness and success.

On facebook?

*Stats based on study at Harvard University.

How To Legally Reduce Your Taxes

If You Want to Change Your Tax, Change Your Facts
I am regularly asked how someone can reduce their taxes – legally, of course.

My answer: Change your facts

One of the most powerful ways to make the tax rules work for you is to change your facts. This concept applies in most developed countries because the tax law is written to favor specific facts.

Do you know someone who is always sharing the write-off of their most recent meal (trip, vehicle, cell phone, gadget, etc.)? Do you wonder if what they are doing is cheating or legal?

With the right set of facts, any of those items can be legal tax deductions.

That’s why when I meet with a new client, I want to know their facts first. Then, I can determine how to change their facts to reduce their tax.

What are these facts?
The facts I’m referring to here are usually surrounding where your money comes from and where it goes.

– Do you own a business?
– Do you own investment real estate?
– Are you an employee?
– Are you self-employed?
– How much time do you spend in your business?
– How much time do you spend in your investing?
– What is your role in your business?
– What is your role in your investing?
– What investments do you have?
– What expenses do you pay personally?
– What expenses are paid by your business or investing activity?

What is deductible for one person may not be deductible for another person. This is because one person’s facts can support a particular deduction whereas another person’s may not.

If you don’t like your tax, change your facts
A few years ago, a client asked me if he could deduct his travel to a particular state. He and his family enjoyed spending time and traveling there frequently. At that time, he didn’t have a business reason to travel to that state and his business was not set up to conduct business in that particular area.

I went over the specific rules with my client that covered what he needed to do in order to meet the requirements to deduct the travel in his business. I also shared with him how he could deduct the travel expenses for his spouse and children.

A few months later, my client tells me about a very profitable deal he now has in the state and he provided me with all of the documentation we discussed to support his deductions.

My client jumped in and changed his facts. It led to increasing his deductions, reducing his taxes and making more money! In order to meet the rules, he had to conduct legitimate business in the state. He did and he was very successful at it.

How can you change your facts?
Any time you have cash come in or go out, there’s an opportunity to change your facts.

Should you receive the income personally or should your business receive the income?

Are your investments helping your tax situation or should you explore new investment strategies?

Are your expenses personal or do they meet the rules specific to your situation that make them deductible?

Are you willing to change your facts?
Discuss your facts with your tax advisor and ask how changing your facts could change your tax. Then, be ready to take action.
Tom Wheelwright

FOCUS – “follow one course until successful!”

This is one of the greatest reads in a while! This post is a short summary of one of the chapter’s covered in Robert Kiyosaki’s and Donald Trump’s latest book, “Midas Touch.” I strongly recommend you pick up the book if you want to be a business owner or entrepreneur on any level. I love what he has to say about the information age that we all live in! – Joshua Gamen

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Essential Qualities of an Entrepreneur: F.O.C.U.S.

I recently released my newest book, The Midas Touch: Why Some Entrepreneurs Get Rich and Others Don’t, with my good friend, Donald Trump. This is a book on entrepreneurship for entrepreneurs—something both Donald and I are extremely passionate about.

The reason Donald and I wrote this book is because we’ve learned the hard way that there are five, essential qualities entrepreneurs need to have in order to succeed. These qualities aren’t a guarantee for success, but not having them is a guarantee for failure. And we want you to succeed.

So, over the next few weeks, I’ll briefly share some thoughts on each quality. For more on each quality, I encourage you to purchase a copy of Midas Touch.

Last week, I wrote on the number one essential quality of an entrepreneur—strength of character. This week, I’m writing on essential quality #2—F.O.C.U.S.

Today, we live in a world of instant gratification.

When I was a kid, we had only a handful of channels on the television. If you wanted to know something, you had to go to the library and spend some time to look it up. If you wanted to know how someone was doing, you had to write them a letter – or if you had the money, call them long distance. And if you needed directions, you had to stop at a gas station to ask.

The world has changed since then. Now, there are thousands of channels on TV and most people can’t stay on one for more than a few minutes. If you want to know something, you look it up on Wikipedia in seconds through your computer or phone. If you want to know how all your friends are doing, you spend a few minutes on Facebook. If you want to talk to them, you text them – or six or seven of them – right away and all day long. And if you want directions, you hit a little map button on your phone.

This instant gratification is a result of living in the Information Age, which is a double-edged sword because living in the Information Age gives more people more opportunity than ever in history to become rich, but it also makes it harder to become rich because we’re all suffering from ADD.

Today, we live in a world that finds it hard to focus.

Because there is so much information at our finger tips, our minds, especially young people’s minds, are conditioned to move from one stimuli to the next. It is rare these days to focus on one thing for a sustained period of time.

If you want to be a successful entrepreneur, however, you have to learn to F.O.C.U.S. Simply, this means Following One Course of action Until Successful. This takes time and effort – and, as we talked about last week, strength of character.

For many entrepreneurs, it takes years to master a business sector or asset class. It takes the dedication of studying hard, building your financial education, cultivating relationships, and learning from mistakes. And during those years, you’re looking at many long days, putting in lots of hours for little-to-no pay.

The difference between wannabe entrepreneurs and successful ones = F.O.C.U.S.

At the end of the day, the difference between a successful entrepreneur and a wannabe entrepreneur is F.O.C.U.S. Many wannabe entrepreneurs are looking to get rich quick. So, when one avenue doesn’t pan out, they move onto the next. The problem is they are never successful because they never put in the time and effort required to be so.

Rich Dad has never been about getting rich quick.

We’ve always been about a lifelong journey of financial education.

No one is born an entrepreneur. You become an entrepreneur over many years of learning, hard work, and F.O.C.U.S.

 

Written by: Robert “Rich Dad” Kiyosaki

Essential Qualities of an Entrepreneur: Strength of Character

A couple weeks ago, I wrote about something hopeful I see in America, the rise of young people interested in entrepreneurship (“There’s Hope Yet”). More than ever, the upcoming generation wants to start businesses and pursue their passions by starting companies that will not only take care of them and their family, but also benefit society as a whole. I applaud this.

I recently released my newest book, The Midas Touch: Why Some Entrepreneurs Get Rich and Others Don’t, with my good friend, Donald Trump. This is a book on entrepreneurship for entrepreneurs—something both Donald and I are extremely passionate about.

The reason Donald and I wrote this book is because we’ve learned the hard way that there are five, essential qualities entrepreneurs need to have in order to succeed. These qualities aren’t a guarantee for success, but not having them is a guarantee for failure. And we want you to succeed.

So, over the next few weeks, I’ll briefly share some thoughts on each quality. For more on each quality, I encourage you to purchase a copy of Midas Touch.

Strength of Character

As a young man, I started a successful Velcro wallet business. This was in the early 1980’s and MTV was just starting to take off. My partners and I had the foresight to take advantage of the wave of rock bands coming out of MTV, and we licensed band names and logos to place on our wallets.

For a while, business boomed. We had thousands of distributors around the world shipping our wallets for us, and we had millions in sales. The problem is that we didn’t really know what we were doing. As a result, many of our sales partners were 120 or more days late on paying us or had skipped out entirely. Because of this, we couldn’t pay our vendors, didn’t have the materials to continue production, and were in danger of not paying our employees and our taxes. We were in a cash crunch.

I’ll never forget sitting down for lunch with my rich dad to go over my financials for the company. Looking over the financial state of my company he said to me, “Your company has financial cancer. You’ve mismanaged a company that could have been successful. You need to look at reality and admit you’re incompetent and that your business is a failure.”

It was a hard word to hear. Up till that point, we tried to hold on, thinking the next big break would come. But it never did, and things were going from bad to worse.

After that conversation, I went back to my partners, and we did the right thing. We liquidated our inventory, paid our employees what was due to them, and set aside enough money to pay our taxes. The company was finished, but at least we weren’t crooks.

That was my first major failure as an entrepreneur. But it wasn’t my last. And if there’s anything I’ve learned after 30+ years as an entrepreneur, it’s that you will fail. The question is not whether you’ll fall; it’s how many times will you stand up?

The #1 essential quality of an entrepreneur is Strength of Character.

In order to succeed, you must first have integrity to do the right thing, and second, have the fortitude to continue moving forward even in the face of failure. Those who lack strength of character quit in the face of failure. Those who have strength of character get stronger in the face of failure by learning and adapting for the next opportunity.

How strong is your character?

I leave you with one of my favorite commercials of all-time.

Written By: Robert Kiyosaki

What happened to our money, to our country?!

By: Joshua Gayman

The reason Occupy Wall Street is happening right now is because there is a huge movement of young people who want to reclaim this country from corporate interests. These protesters feel that our political system has been hijacked by Wall Street and their corporations. Not only that, but they feel that our elected officials now serve the interests of the wealthy upper 1%, instead of “the 99 percent.”

I’m gonna write..Dang it!!! I’m gonna write…

It’s not that I can’t do, but that I can reach more people online than I can on the street. Also, I can capture attention. Why protest when I can speak more clearly through my mac sitting in my bedroom. I don’t oppose the Wall Street crashers. They are frustrated. They feel that the system has hijacked the way of life their parents had and that they planed to continue, and they are right.

The solution is that we need to reclaim our own money. If America acts now, we still have the financial and political power globally to reclaim our position. China will fight us hard, but we really need not compete directly. We don’t have to buy Chinese. If we open back up the factories we can put millions back to work and produce value back into our society. My God, can you imagine what stuff we would have cooking right now if everyone was working hard to better society? We are geniuses. I don’t really know why, but for some reason us Americans kick ass. In all actuality, I don’t think we have anything that any people don’t have. It’s just the timing and in my honest to God opinion, it’s God’s plan for this time.

So how did we really get where we are now? The world has turned upside down in the past 3 years!!

Well..Life happens. The only thing constant in this world aside from God’s love is change. Because of this thing called time, everything constantly evolves.

So what happened?

1700’s – USA is founded. We say F U to Britain because we do not want to use their currency and pay their taxes anymore. We draft a constitution that we will never let another entity print our currency and we will never have an income tax. We kick their butt and start our own country on free market using gold to back our currency. As an interesting sidenote..The South made their own currency during the Civil War, but with no gold backing it inflated to zero value..

We go from Wild West to Industrial Revolution. Life is changing rapidly with new mechanics. Lots of production is created, in fact, it is exponentially created because of leverage and tools.

Let’s face it..The media is about as honest with us as a politician. So when you think about it, how do you really know what you learned in school was even truth? I know I hear you already, “Oh here we go, another conspiracy article..” NO – Listen to this: John D. Rockefeller founded the US Board of Education in 1903. What did  that guy want with the school system? And since he did buy it..Why didn’t he add education on money into the school system? Why do we still have a school system that is hundreds of years old and was created to manufacture military? Now here is my point, we have no idea if the things we read in our history books are true. History is not math, gramar, or science. History is one of the biggest tools used for manipulation and deception.

Moving on…

10 years later, John D Rockefeller, along with other ultra rich men such as JP Morgan, and Paul Warburg, founded a company and called it the Federal Reserve. This company would issue currency to countries. The trade off that they could offer to the Congress was that if they printed the money, they could give it to the government. Scandals in the Congress are nothing new, and the Federal Reserve Act passed.

Time for an income tax!!

The income tax was supposed to be to fund WWI, but we still pay it today, 100 years later…

20’s…HUGE recession, but it was removed from Rockefeller’s history curriculum in our education system that he hijacked.

GREAT DEPRESSION: Debt from WWI is too much to pay. we need more currency. The government confiscates gold and then raises the dollar-associated value to it by over 50%, hijacking over 50% of the real money in circulation and jeopardizing our whole system.

WWII – America wins. Bretton Woods Act is passed, making the United States’ currency known as the Dollar, the Reserve Currency of the World. Oil is now traded in dollars, making it so that other countries must exchange their currency for dollars and then purchase oil. This causes the value of the dollar to increase drastically and therefore makes it easier for the United States to get credit from foreign investors who are eager to invest in the luxurious American economy. After all, their debt is backed by the good faith of their tax payers.. Remember too, the Congress can now go the Federal Reserve whenever they want, increase their “debt ceiling,” and borrow more money.

America rocks like rock stars for 27 years, get involved in some turmoil overseas, increased the debt more. Then Nixon said let’s have a REALLY big money supply, since everyone in the world treats our dollar like gold! He totally cuts the link between the Dollar and gold. Expanding the money supply to infinity.

A few years later, the “Employee Retirement Income Security Act” is passed, making it so that the tax payers are responsibly for their own retirement, and the burden is lifted from corporations. Birth is given to the IRA and 401K. This makes it so that retirement money flows to Wall Street and they can operate the money as a ponzi scheme, with money from new investors paying out the old people as they retire. *Another sidenote:  Social Security(Which was enacted during the great depression), also operates as a ponzi scheme, with the money flowing into the system from young workers’ paychecks and out to the retired older folks. The money retirees paid into the system has been spent.

For nearly 40 years, we lived out of our minds!!! There were recessions and expansions, but the reality is that no matter what, we could always get more money because we had a credit card with no credit limit. The credit card company was the rest of the world buying our debt, and the Federal Reserve company selling it.

Our economy boomed and we just kept continuing to kick ass. We got fat, lazy, and greedy, but we stayed smart. We powered through at the front of the line with our advances in technology, especially with computers and the internet. We created several huge bubbles with the stock market, precious metals, dot com, and real estate, but we never thought about the larger bubble that was emerging around all of the other bubbles. The credit balance that we had…The biggest bubble of all, debt!

In all reality each bubble helped us. Because off of each bubble, we could sell more debt, increasing our limit. The last one we benefited from was real estate. When we all could buy a house or re-finance one and get a rediculous amount of money for, with nothing down but a signature. How bitchin is that!? You could make $30,000 a year, live in a $300,000 house, drive a $30,000 car and have mad toys. All you had to do was refinance your house when you needed more money to cover your bills.

Then it popped. It popped because people could not afford the minimum debt payments on their mortgage payments anymore. Even with interest only loans and low interest short term adjustable loans, the mimimum monthly debt was just too much. The world quickly realized that the actual real estate was never truly worth what we sold the debt for. Values plummeted, but so did families losing their homes.

The government tried to keep the bubble going(and still is) by lowering interest rates, again and again and again. The Federal Reserve is happy to do so because it preserves the system of debt. If we stop selling our debt, they cannot continue to gain power over us for our indebtedness. Also, with all of the other countries attached to our debt system, known as the dollar, it keeps it easier for them to have a leash on the entire planet.

With mortgage payments stopping, lending stopped. Now, even with super low interest rates, the people are simply not allowed to take on anymore debt, unless they still have some collateral left that they are willing to put up, and most don’t..

With a country that’s whole currency system operating on debt, not getting any more loans, the economy dried up.

2007 – The banks failed because nobody could afford their loans. They sold a product that was risky, and they lost. The collateral from the loans was not sufficient to cover the exposure they had. Congress decided that if the banks failed, lending would stop, people could run to the banks to withdraw their money, and the economy would die, so they took on more debt from the federal reserve, pinning the tax on the US taxpayers back still(but now getting exponentially larger) and marched on with the debt system, even tho it was by all means bankrupt. They gave it to the banks, “to lend to the people.”

The banks didn’t loan shit to the people. The rest of the world gets mad(particularly China), because we are now exponentially increasing our money supply, and thus devaluing our debt to them.

With no buyers left outside of our country to buy our debt, and no assets to pledge them, the company knows as the Federal Reserve decides that they will just buy our debt themselves. This keeps the cash flowing into the United States, and stays off a collapse for the short term. The money supply keeps exponentially increasing, as prices rise on exports to combat the artificial expansion of our money supply.This is what is known as “quantitative easing.”

Meanwhile, people keeping losing their houses, their jobs, their businesses. Everyone keeps waiting for life to go back to normal. But it doesn’t happen…

The stock market goes up and down, but it doesn’t have any effect on anyone. The people that have money seem to keep getting bigger. But everyone you know is broke and jobless. People hear what the banks did with the money that they were given that was supposed to be for lending. They hear about the bonuses to all of the CEO’s that took their house.

Student loans never stop, but everyone is starting to figure out that the debt created by going to school is huge and they aren’t making nearly enough to make it manageable, if they are making anything at all.

Let’s face it…The debt system is broken. We still have some HUGE values that we contribute to the world. I like all of our professional sports, Google, Aaple, Nike, I could name many many more. But, we don’t have anything left to pledge as collateral to keep receiving debt to live on. We already pledged it up….

Present Day:

We go to Wall Street. We protest about the greed and corruption. We don’t go the the corporation the Federal Reserve who created the system, instead we go to the investors on Wall Street who’s job is to keep money flowing into the market to satisfy the system and pay our people’s retirement’s through pensions. Without Wall Street, many retirees would lose their retirement. Retirees like teachers, firemen, and police officers.

We need to take back over our systems. It’s sad to say, our currency is falling to zero like a slowly bleeding cow. And there is nothing anyone can do to stop the bleeding. We try to stop it with band aids such as expanding the money. But expanding the money without expanding the demand for the debt can’t create real value. So the dollar will die.

Value is coming back. Value is king. If you have a trade, great. If you don’t, learn one. What do you love? How can you do that so as to benefit society? If we can get back to creating real value, they’ll keep buying our debt. But we should not let Congress give away our value to the Federal Reserve. We can sell our debt directly if we are going to sell it at all.

What will happen next?

I don’t know.

I suspect that to preserve the system of debt, the central banks will create a globally currency. The world will buy into it because they won’t have a choice. The debt bubble in Europe popped too. Asia is next. The Chinese have been devaluing their currency to try and combat the inflation of the Dollar. The global currency will be digital, as in all actuality the Dollar is now digital itself. I don’t know which part of the world will receive the biggest inflow of the global currency, but I suspect that it will be the gographic location which produces the most value. Competition is inevitable.

No matter what, we aren’t here for a long time, we’re here for a good time…

Peace and love,

1.

From Tom Wheelwright: The Power of Systems in your wealth strategy

I’m constantly asked how to use leverage in different ways in a wealth strategy – and I’m glad people are asking because leverage plays a huge role in every successful wealth strategy.

Leverage is simply doing more with less.

Here are 3 of my favorite forms of leverage.

#1: Systems
I think systems are one of the most important and powerful features of a wealth strategy.

Systems are simply the process or procedures to complete specific tasks. Systems provide the detail of the who, what, when, where and how something will be done.

Think about a franchise. One of the greatest values a franchise offers is its systems. The systems provide all the details about how to market, sell, fulfill and everything else involved in operating that franchise. A franchisee simply has to follow the systems.

Let’s say you invest in rental real estate. You should have systems for:

– Identifying the property to buy
– Purchasing / financing the property
– Renting the property
– Maintaining the property
– Reviewing the performance of the property

Systems don’t have to be complicated. They just need to document what needs to be done in a clear manner. Systems can be as simple as a checklist.

If you are just starting your wealth strategy, you may wonder why you need systems if you are doing everything.

Here’s 2 reasons why you need systems:

Reason #1
Your systems are the place to document the specific details of what needs to be done. They are also the place to document your best practices – your trade secrets. As you learn better ways to do things, document that in your systems.

Your systems enable you to leverage your time by making you more efficient while still getting the results you desire.

Reason #2
Many people start off doing everything themselves, but they usually have a goal to grow their wealth and hire others do the work. If you want to do this successfully, systems are imperative. Systems communicate your specific expectations without you having to be there.

Many people have wealth strategies that never reach their full potential because they are not able to give up control.

With systems, you don’t have to give up control. You’re giving up the specific tasks, but you are still in control. You control the systems.

When your systems are created, used and monitored properly, they will tell you when things are working and when they aren’t working. This allows you to focus your attention where it is most needed – this is a huge form of leverage in a wealth strategy.

#2: Your Wealth Team
Systems definitely take time to create. You don’t have do it all yourself though. This is where your wealth team comes in to play.

One of the best examples of leverage in a wealth strategy, and also one of my favorites, is a wealth team.

A wealth team is a group of advisors, coaches, mentors, employees, vendors and other contacts who assist you in building your wealth.

With a wealth team, you can leverage your time by hiring advisors, coaches, mentors, employees and/or vendors. But the leverage doesn’t stop there. This is just the beginning. You can also leverage your wealth team’s contacts, their resources, their knowledge – the list goes on and on.

Use your wealth team to help you create your systems. Leverage their resources and expertise to add value to your systems.

Once you’ve created your systems, share them with your team members so they can be part of the systems and contribute to the success of your wealth strategy.

#3: Software
Software is a wonderful form of leverage. Software allows us to do more with less every day.

Software can be an integral part of effective systems. When used properly, software can streamline many tasks while providing better information and results.

Software can be the driving force behind the systems. It can notify the who about the what, when, where and how. And, it can provide real time reports about how the systems are working. These reports are what help you stay in control.

How do you know what software to use?
Leverage your team’s knowledge – ask them what software you should be using. And, if you truly want to leverage your software with your systems, have a team member who is committed to integrating the two.

Using Leverage in Your Wealth Strategy
Think about how you use these 3 forms of leverage in your wealth strategy and identify ways that you can leverage them even more.

Focus on your wealth!

Tom Wheelwright
Founder & CEO

Obama’s Deficit Reduction Plan Does Not Make Investing Sense

By: Joshua Gamen

Tom Wheelwright is an outstanding CPA, real estate professional, and businessman. In fact, I have shared several of his tax posts on this blog. I discovered Tom when I read one of his books from Rich Dad’s series(Robert Kiyosaki, Rich Dad Poor Dad). According to Tom, the tax code of nearly every developed country is philosophically the same. He says that tho various laws and codes may differ, the motive behind them is identical.

It is absoluely true that the purpose of the tax code is to motivate people to do what the government wants them to do. If you really want to understand taxes,  study why it is structured the way that it is

The reason that real estate has such amazing tax benefits is that the government needs investors to build and maintain affordable housing for the public. I recall Obama talking in his “State of the Union” address that it is not fair for business people who have attorneys and accountants to find and take advantage of “tax loopholes.” The problem with this perspective is that it does not take into consideration that the “loopholes” are there to encourage business spending and expansion, which is another thing government wants.

“President Obama’s plan to reduce the budget deficit shows a fundamental misunderstanding of how the tax code motivates people and the philosophy behind the tax code, not just in America but also in every other developed Countrty.” -Robert “Rich Dad” Kiyosaki

Obama’s deficit reduction plan to the budget includes raising taxes on the “rich” and closing tax “loopholes.” The simple economic problem with this is that many people who make $250,000 or more per year are the people who run small businesses and rely on tax cuts to stay in business and provide jobs. These “loopholes” of which Obama speaks of were created to motivate investors and business owners to do things for the economy that the government needs them to do, like spending on real estate and business development.

It makes zero common sense to penalize the people who produce goods, build businesses, and provide jobs by giving them higher taxes in the name of budget deficit reduction. All this will do is incentivize them to cut payroll, which means no jobs!

The effets will be massive if the proposed tax increases de-incentivize investors and businesses from production. The increased government revenue from the taxes would actually result in less production from our country(GDP).

Lower taxes on the lower and middle class sounds awesome! But the reality is that these are not the people who produce financially for our country!  The limited spending savings in their taxes would not make up for the lost business and investing activities of the rich which the economy depends on, the activities that create jobs and housing.

REAL deficit reduction will not come until the government gets serious about our unfunded liabilities such as Medicare and Social Security. There are currently no substantive proposals to address these coming financial time bombs. Look, I get it, we don’t want to cut medicare and social security, but the reality is that we have no money to pay for them.  It’s just math.

Any talk about reducing the budget but not talking about the unfunded liabilities that are government has is like putting a band aid on a wound that requires stitches. True financial healing won’t come until we suck it up and go through the painful process of true economic surgery. The problem is, it’s not good for votes to call it like it really is…

The 12 Steps of Selling a Car – Dealership Special!

From May 2007 through April 2008 I worked in the car biz as a sales manager, a “closer.” I observed a lot of interesting things while managing a crew of sales people at the largest Chevrolet dealership in Phoenix, AZ. Three of the main things I learned from working for that job: 1. Working for someone else blows. 2. Selling for yourself is much easier and pays better than managing salespeople 3. The 12 steps to selling a car and gaining referrals(This is somewhat a joke, somewhat…)

I wrote this on a whiteboard in a sales meeting I was doing one time at the dearlership as a joke to my salespeople, I was describing how my top salesperson did what he did, and why he was so good at getting referrals from his clients. It’s actually sick but the process really did work well for him for some reason, very well. I actually wrote this post almost 2 years ago. I came across it tonight while checking out the first blog I ever started(in which I only made 4 posts) –
(http://www.9to5erso.blogspot.com)

Friday, January 9, 2009
HOW TO SELL CARS.
1. FORCE CUSTOMER INTO BUILDING.

2. SHOW CAR ON COMPUTER.

3. DO NOT LET CUSTOMER DEMO/DRIVE CAR.

4. WRITE UP THE DEAL.

5. CRY TO SALES MANAGER.

6. SHOW CUSTOMER THAT YOU ARE LOSING MONEY ON THE CAR DEAL BY
INCREASING COSTS IN THE SHOP TO THE VEHICLE IN THE BACK SCREENS OF THE SYSTEM AND PRINTING THE PAGE TO SHOW THE CUSTOMER.

7. CLOSE DEAL BY TELLING THEM YOU WILL GET THEM HOOKED UP(DETAIL, FLOOR MATS, KEYFOB, WHATEVER THE HELL THEY WANT HAH YOU YOU WON’T BE DOING THIS.)

8. TAKE CUSTOMER THROUGH FINANCE OFFICE.

9. SET THE APPT FOR WHATEVER YOU PROMISED THEM WHEN YOU CLOSED THE DEAL FOR YOUR NEXT DAY OFF.

10. WALK THEM TO THE CAR BUT QUICKLY ACT RUSHED LIKE YOU HAVE YOUR NEXT DEAL WAITING AND GET THEM OFF THE LOT BEFORE THE NOTICE OR ASK FOR ANYTHING.

11. NEVER ANSWER CUSTOMERS CALLS.

12. SELL ALL THEIR FAMILY AND FRIENDS CARS.