Creating Cash Flow
Hi:
Heather and I are in Africa for a few more weeks still. In Rwanda, we saw solar-powered building projects, orphanages and a lot of hope in a country that was nearly wiped out 13 years ago when 1 million people were massacred in 3 months. We traveled here with a group of Maui Masterminders, dedicated to tackling the challenges in this growing nation. I'll have more stories when I'm back from the US.
Meanwhile, I asked my partner Diane Kennedy to write this week's wealth-building tips. We should have our new website up any day now. For now, when you click through on the links below you'll be taken to Diane's Tax Loopholes.com site. If you've never registered before, you'll be asked for your email address to view the articles. There is no charge for this. Although Diane's site does offer a $9.97/month membership for more detailed content (including access to the TaxLoopholes archives), a large portion of the current content is always available for free, by signing up as "Loopholes Lounge" member. If you have any problems reading the files or getting registered, please drop us a note to amy@mauimillionaires.com, and Amy will be glad to help you.
From Diane:
David and I spent a day in San Diego at the Creating Cash Flow going through over 50 strategies to create cash flow. These strategies fell into two different categories:
• Offense
• Defense
The Cash Flow Offense means strategies that get you more cash each month. If you have a business, this could be using a new strategy to collect on your accounts receivable (amounts customers owe you), changing your billing so you get paid upfront for services, or provide more value to receive more income. If you have real estate, this could mean strategies to fill up a vacancy, convert a rental to a rent to own to get better cash flow or improve the value of your property to raise rents. No matter what you're doing right now for income, there is one skill that will ALWAYS get you more cash - good negotiating techniques.
That's one of the subjects that we're covering in this week's wealth tips: strategies that will make you a better negotiator!
The other two strategies are Cash Flow Defensive moves. Face it, the single biggest expense most Americans face today is the amount of tax they pay. I'll admit that I'm biased here, but I think this is the single most impactful change you can make. If you can pay less tax, the difference goes directly in your pocket. You don't need to worry about paying taxes on it.
In this week's wealth tips, we'll talk about a strategy for business owners and real estate investors, using increased depreciation. Depreciation is the phantom expense that the IRS allows you take. When it comes to real estate, this is especially powerful because you might have a property that goes up in value (appreciation) but then the IRS comes along and says that they think it will actually go down in value (depreciation) and lets you take a deduction for it. Now is when it gets fun. The loophole strategies allow you to time when and how much you take in depreciation to get the most bang for your buck.
Depreciation is the second item we discuss in greater detail when you click through on the links below.
The third strategy this week has to do with the other big expense for Americans. In some cases, it might even be bigger than taxes. That's the amount of interest we pay. But, we're not talking about interest that makes you money. For example, if you buy a property that gives you a return of 10% and it costs you 8% in financing costs, then you have arbitrage. You make money off of the money you've borrowed. This is good debt.
There is another type of interest. That's the type of debt and interest that we're talking about reducing, and eventually eliminating, Compound Debt™. This is the debt that keeps growing and growing and is most often found with credit cards. The single biggest problem that gets people into the bad debt cycle is not understanding the Language of Money™, one of the five key languages to Financial Fluency™.
When you click on the links below, you'll be taken to the Tax Loopholes website. For each of these items, you'll find some valuable strategies and tips that you can use to increase you cash flow either on the offense or the defense. You'll also see a special offer that I want to take a second to explain. Each of these topics have a full special report on the subject. These are part of the Maui Mastermind Online/First Class Lounge. Along with 2-3 Special Reports each month, you'll also receive online workshops every few days (in audio or video format) on a range of wealth-building, tax-reducing topics. Maui Mastermind Online/First Class Lounge is a membership based site that is available for less than $10/month.
And, even better, your first 30 day trial membership is always FREE! When you sign up for Maui Mastermind Online/First Class Lounge today, you'll be able to read the complete Special Reports on these three topics. And, you can always cancel anytime, with no further obligation. But I hope you take some time to check out all of the other online workshops and material that are available as part of your full membership. Take your 30 days to discover the information we have.
For more information on strategies to improve your cash flow, click through on these topics:
• Depreciation for Smart Real Estate Investors
• Advanced Negotiating Secrets with David Finkel
• Breaking Out of the Level One Financial Trap
Something to Think About …
I have a 16 year old son, David. One time, for fun, my husband Richard and I did a calculation on how much he would be worth if we started buying a regular single family home each year and putting it in a trust for him. We'd use the least amount of down possible, use our best negotiation skills to get the best deal possible, and then rent it out for enough to cover the expenses. Other than that, we'd leave it alone. Based on the 20 year average for appreciation in our area, David will be worth $1 million by the time he's 21. And, we just started doing this when he was 14 years old. Of course, the key right now is to make sure it's locked up really tightly because I'm not sure a 16 year old will make the best financial decisions. But the other thing I learned from that is it doesn't take a big change to make a big change. Creating more cash flow, consistently over time, even if it's just a little bit at a time, can make a huge difference in time.
Thanks for reading everyone. We hope the ideas this week can help you get on the path to financial freedom and personal fulfillment.
Best regards,
David Finkel and Diane Kennedy
P.S. Each month we feature new Special Reports as part of the Maui Mastermind Online/First Class Lounge. If you're already a member, make sure you stop by to get your reports. They're jam-packed with strategies that can put more money in your pocket!
Heather and I are in Africa for a few more weeks still. In Rwanda, we saw solar-powered building projects, orphanages and a lot of hope in a country that was nearly wiped out 13 years ago when 1 million people were massacred in 3 months. We traveled here with a group of Maui Masterminders, dedicated to tackling the challenges in this growing nation. I'll have more stories when I'm back from the US.
Meanwhile, I asked my partner Diane Kennedy to write this week's wealth-building tips. We should have our new website up any day now. For now, when you click through on the links below you'll be taken to Diane's Tax Loopholes.com site. If you've never registered before, you'll be asked for your email address to view the articles. There is no charge for this. Although Diane's site does offer a $9.97/month membership for more detailed content (including access to the TaxLoopholes archives), a large portion of the current content is always available for free, by signing up as "Loopholes Lounge" member. If you have any problems reading the files or getting registered, please drop us a note to amy@mauimillionaires.com, and Amy will be glad to help you.
From Diane:
David and I spent a day in San Diego at the Creating Cash Flow going through over 50 strategies to create cash flow. These strategies fell into two different categories:
• Offense
• Defense
The Cash Flow Offense means strategies that get you more cash each month. If you have a business, this could be using a new strategy to collect on your accounts receivable (amounts customers owe you), changing your billing so you get paid upfront for services, or provide more value to receive more income. If you have real estate, this could mean strategies to fill up a vacancy, convert a rental to a rent to own to get better cash flow or improve the value of your property to raise rents. No matter what you're doing right now for income, there is one skill that will ALWAYS get you more cash - good negotiating techniques.
That's one of the subjects that we're covering in this week's wealth tips: strategies that will make you a better negotiator!
The other two strategies are Cash Flow Defensive moves. Face it, the single biggest expense most Americans face today is the amount of tax they pay. I'll admit that I'm biased here, but I think this is the single most impactful change you can make. If you can pay less tax, the difference goes directly in your pocket. You don't need to worry about paying taxes on it.
In this week's wealth tips, we'll talk about a strategy for business owners and real estate investors, using increased depreciation. Depreciation is the phantom expense that the IRS allows you take. When it comes to real estate, this is especially powerful because you might have a property that goes up in value (appreciation) but then the IRS comes along and says that they think it will actually go down in value (depreciation) and lets you take a deduction for it. Now is when it gets fun. The loophole strategies allow you to time when and how much you take in depreciation to get the most bang for your buck.
Depreciation is the second item we discuss in greater detail when you click through on the links below.
The third strategy this week has to do with the other big expense for Americans. In some cases, it might even be bigger than taxes. That's the amount of interest we pay. But, we're not talking about interest that makes you money. For example, if you buy a property that gives you a return of 10% and it costs you 8% in financing costs, then you have arbitrage. You make money off of the money you've borrowed. This is good debt.
There is another type of interest. That's the type of debt and interest that we're talking about reducing, and eventually eliminating, Compound Debt™. This is the debt that keeps growing and growing and is most often found with credit cards. The single biggest problem that gets people into the bad debt cycle is not understanding the Language of Money™, one of the five key languages to Financial Fluency™.
When you click on the links below, you'll be taken to the Tax Loopholes website. For each of these items, you'll find some valuable strategies and tips that you can use to increase you cash flow either on the offense or the defense. You'll also see a special offer that I want to take a second to explain. Each of these topics have a full special report on the subject. These are part of the Maui Mastermind Online/First Class Lounge. Along with 2-3 Special Reports each month, you'll also receive online workshops every few days (in audio or video format) on a range of wealth-building, tax-reducing topics. Maui Mastermind Online/First Class Lounge is a membership based site that is available for less than $10/month.
And, even better, your first 30 day trial membership is always FREE! When you sign up for Maui Mastermind Online/First Class Lounge today, you'll be able to read the complete Special Reports on these three topics. And, you can always cancel anytime, with no further obligation. But I hope you take some time to check out all of the other online workshops and material that are available as part of your full membership. Take your 30 days to discover the information we have.
For more information on strategies to improve your cash flow, click through on these topics:
• Depreciation for Smart Real Estate Investors
• Advanced Negotiating Secrets with David Finkel
• Breaking Out of the Level One Financial Trap
Something to Think About …
I have a 16 year old son, David. One time, for fun, my husband Richard and I did a calculation on how much he would be worth if we started buying a regular single family home each year and putting it in a trust for him. We'd use the least amount of down possible, use our best negotiation skills to get the best deal possible, and then rent it out for enough to cover the expenses. Other than that, we'd leave it alone. Based on the 20 year average for appreciation in our area, David will be worth $1 million by the time he's 21. And, we just started doing this when he was 14 years old. Of course, the key right now is to make sure it's locked up really tightly because I'm not sure a 16 year old will make the best financial decisions. But the other thing I learned from that is it doesn't take a big change to make a big change. Creating more cash flow, consistently over time, even if it's just a little bit at a time, can make a huge difference in time.
Thanks for reading everyone. We hope the ideas this week can help you get on the path to financial freedom and personal fulfillment.
Best regards,
David Finkel and Diane Kennedy
P.S. Each month we feature new Special Reports as part of the Maui Mastermind Online/First Class Lounge. If you're already a member, make sure you stop by to get your reports. They're jam-packed with strategies that can put more money in your pocket!
posted by David Finkel at 12:19 PM
0 Comments:
Post a Comment
<< Home