Wealth Secrets of Millionaires: Become Wealthy By Not Repaying Your Debt


This may seem a difficult scenario from which to create wealth, but my hundreds of successful clients prove that getting rid of debt and building wealth is doable. Gain awareness of your psychology, your finances,and a willingness to let go of old habits that no longer serve you,and build weath now.

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Wealth. Does that sound like a foreign word to you? If you’re saddled with loads of consumer debt the way so many Americans are, it is probably a very unfamiliar word. Commercial and consumer debts are the greatest barriers to wealth. And when you’re suffocated by thousands of dollars of debt, it may seem impossible to get out.

There’s good news! It’s not impossible to eliminate your debt and move toward wealth. Most people and small businesses simply don’t have a system for paying off their debt, and as a result they perpetuate bad habits and remain stuck in it. By using the proper debt management system, you can get out of debt quicker than you probably imagined with minimal change to your existing lifestyle.

To top it off, there is a system you can use that will allow you to simultaneously create and feed the Wealth Cycle, a cycle of wealth millionaires use to consistently and exponentially build their wealth. In other words, you can simultaneously become wealthy and repay your debt.

Skeptical? I bet you are. But, you’ll be surprised at how easy this is.

So what’s the best way to abolish consumer debt? Many financial advisors will tell you to scrimp, save and cut back on absolutely everything that makes life fun. They’ll tell you to create a very tight budget and then pay off your debt before you can even think about making investments of any type. Sounds a lot like a diet, one that will cause you to starve yourself and your children, depriving them of wealth.

So what does work?

To tackle consumer debt, Loral’s five-step debt strategy includes the following steps (explained in considerable detail in her book, The Millionaire Maker):

  1. Create a debt elimination box
  2. Calculate a factoring number
  3. Make a priority payoff box
  4. Use a jump start allocation
  5. Make your debt payments

By using this system, your debt payments start to build as you pay of your creditors, all of whom have been listed in order of priority. Your capacity to pay off your debt accelerates quicker and it does require you to shave down unnecessary expenses, but not cut out everything you love. In short, it’s realistic – and mighty effective. You simply have to commit to it.

But wait, there’s more to it!

Earlier I mentioned that you can pay off your debt and at the same time actively build your wealth. Remember that Wealth Cycle mentioned earlier? This is where it comes in.

The Wealth Cycle used by millionaires consists of 12 steps:

  1. Gap Analysis
  2. Financial Baseline
  3. Freedom Day
  4. Debt Management
  5. Entities
  6. Cash Machine
  7. Wealth Account
  8. Forecasting
  9. Assets
  10. Leadership
  11. Teamwork
  12. Conditioning

It’s okay if you don’t know what each step means right now. The main thing to understand is that the key to success in using the Wealth Cycle?is knowing which steps to take, and in what order.

Everyone’s financial situation will require its own order of sequencing. A wealth mentor can help you determine what’s right for you. For some people, the first step is to develop the proper legal entities for their business and investments so as to maximize tax strategies. For others it may mean first
reallocating assets so you can bring in increased monthly income that enables you to start investing. This will in turn bring in passive income which will allow you to pay off your debt quicker.

Here’s an example of when entity structuring might be used first:

Let’s say you have a graphic design business but it’s not incorporated. This means your debt includes a lot of expenses — cell phone, office supplies, postage, etc — that you paid for out of your personal account. If you make your design business an entity, let’s say a Subchapter S Corporation, then the portion of your debt that includes those items can now be transferred over as business expenses. Now you can write off that portion of your debt against your income, giving you more money at the end of the year!

The interesting thing about the Wealth Cycle is, as stated above, that you only focus on debt management after you develop a Cash Machine, the proper Entities, and engage in forecasting. Building wealth from a position of great debt takes courage, discipline, and positive energy. I realize this may seem a difficult scenario from which to create wealth, but my hundreds of successful clients prove that getting out of debt and building wealth is very doable. What it takes is a commitment to gaining awareness of your psychology, your finances, and a willingness to let go of old habits that no longer serve you.

Do You Have Financial Phobia?


More and more people are suffering from a fear of personal finance, which can have a devastating effect on their lives. What is financial phobia, and what causes it?

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With an ever-increasing level of personal debt being reported, along with record numbers of bankruptcies and insolvencies, it’s no surprise to anyone that money is becoming a big problem for thousands if not millions of people.

Most of us would equate ‘money problems’ with ‘debt problems’, and indeed servicing high levels of debt is a major cause of worry and stress for those of us who’ve perhaps borrowed too heavily in the past.

There is another kind of money trouble that doesn’t receive quite as much publicity. It’s called Financial Phobia, and is a real clinical condition that causes untold problems for its victims.

Recent research has suggested that up to 20% of adults suffer from full-blown financial phobia, with nearly half of the population showing some signs of a milder version of the condition.

Sufferers find it extremely difficult to keep on top of their finances, as the prospect of doing simple things like opening bills causes them feelings of anxiety, nausea, and even – in the worst cases – full panic attacks. They will dislike checking their bank balances, will put off paying bills, and in extreme cases will avoid opening mail altogether and throw it away rather than deal with the contents.

So what causes this condition? One of the main triggers is a sense of finances being out of control, sometimes through debt, but also through having a bad experience with finance such as losing money in a bad investment, or of following bad advice. Victims of mis-selling of inappropriate products can lose trust in banks and by extension the whole realm of finance.

The irony is that by avoiding paying attention to their financial situation, sufferers will tend to make matters worse as they can’t pick up on problems early on. Missed payments, for example, can go from being a minor issue to a cause of legal action if they are ignored rather than tackled.

As their financial situation deteriorates, the sense of being out of control increases, leading to a vicious circle where other problems including full depression can arise. So is there a way out?

As with all genuine phobias, counselling may be required if the problem has got out of hand, along with professional financial help from debt advisors which is often available for free from charities.

However, people in the early stages of the condition can help stop the situation deteriorating by starting to get back on top of their finances, fighting their urges to ignore the problem, and starting to tackle any underlying causes such as debt.

Cut Your Utility Bill


Well, we’re all reeling from our utility bills. So, what can be done to cut energy costs?

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Well, we’re all reeling from our utility bills. So, what can be done to cut energy costs?

Obviously, the best way to cut your utility bill is to go with a non-utility company source of energy. Solar power can be used to warm your house, while geothermal can be used to cool and heat the home. While these are great choices, there are a few simple steps you can take to cut that monstrous utility bill.

Vent Covers ?In most homes, there are rooms that rarely get used. A very simple and very cheap way to cut your heating costs is to isolate those rooms from the rest of your home. To do this, you should close the vents in the room. The vents, however, rarely close well. To make the strategy effective, you should buy vent covers and place them over the vents. The covers are a form of plastic and keep heat from coming out of the vents. Next, close the door to the room in question and leave it. By using this strategy, you can effectively make your home smaller by excluding the square footage that has to be heated. The smaller the area, the small the amount of money to heat the home.

Windows ?Windows are the single biggest energy wasters in your home. Your windows must seal tightly. If they don’t, heat will escape out of them causing your heater to fire up over and over. If you make sure your window fit tightly into the frame when closed, you can significant cut the utility bill. It sounds like a small thing, but it really ads up.

Programmable Thermostat ?Heating your home accounts for fifty percent of your utility bill. While a warm home is necessary for basic living in the winter, the home doesn’t need to be heated all of the time. If there are periods during the day where nobody is home because of work or school, a programmable thermostat can be used to slash your heating costs. Simply program the thermostat to turn off during the relevant time and turn back on before anyone gets home. Cutting four to eight hours off of your heating needs each day will add up quickly on your utility bill.

If your utility bills are completely out of control, there is something fundamentally wrong with your home. You need to go ahead and get an Energy Audit. An auditor will come out and inspect your home. They can then identify the problem, what should be done and provide other tips to slash your bill. Depending on how bad your situation is, an energy audit can cut your utility bill by 50 percent or more.

Power costs are high and expected to continue to increase for the foreseeable future. Take steps to cut your utility bill now and you’ll reap the benefits for years.

Check Your Bank Statements Every Month, If You Don’t You May Be Losing Money In Unexpected Ways.


It is important to watch over your own finances by looking at your bank statements. I have always checked my bank statements but maybe not quite as carefully as I should have!!


Awhile back I got the dreaded letter from the bank saying you are overdrawn. I couldn’t believe it, I wondered what the heck did I do?

Then I opened it up and I was overdrawn by over a thousand dollars and I was real concerned.

I called the bank and they told me the $3000 dollar check that I had written was insufficient. Well I did not write a check for that amount but they assured me I did and told me where to.

I couldn’t believe I could do something so foolish but I called the company that I had written the check to and they said yep, that was what I wrote it for, and I was overpaid on my account.

Then we had to start the process of me getting the money back that I had overpaid, in the meantime I needed to do a quick transfer or I would have more insufficient checks.

After I got the check covered and started the return process of getting my money back I got to thinking I couldn’t have done anything that dumb.

So I called the bank and asked them if they were sure I had wrote it for that amount and she assured me they check those kinds of things, I still didn’t believe her so I went down there and said I wanted a copy of the check.

Low and behold I HADN’T been stupid and wrote a 300 dollar check for 3000. The company I wrote it to had encoded it wrong and the bank didn’t catch it.

So after apologies from the bank and their assurance they would fix things right up for me I called the other company back and asked them if they were sure I had made the mistake. She also assured me they always check these kinds of things. Then I said then how come I am holding the check and it is obviously written for only 300.00. She didn’t have much to say then and they assured me they would fix things right up.

In talking to her she said she just assumed the fault was mine because even if they had made the mistake one of our banks would have caught it, yeah right.

So while most of you would notice a 2700 difference like I sure did, we may not notice those pennies and nickels if we don’t check every month.

Because the only one looking after your account carefully will be you!!

Energy Tips To Help Your Pocketbook And America


According to the Department of Energy, household energy costs have increased a whopping 12 percent from 2004.

Energy Tips To Help Your Pocketbook And America

According to the Department of Energy, household energy costs have increased a whopping 12 percent from 2004. Even more startling is the price of natural gas, which rose by 23 percent.

The good news is that there are many actions Americans can take to lower their energy bills, and at the same time help the nation become more energy independent.

Keep Your Cool This Summer

• Use a microwave oven instead of a conventional oven.

• Use a power strip to control your electricity use. A large number of electrical products-especially home electronics-can’t be switched off completely without being unplugged. These products draw power 24 hours a day. Plugging them into a power strip to shut them off will save you money.

• Lower the thermostat on your hot water heater to 115?and take showers instead of baths.

• Wash only full loads of dishes and laundry.

Landscape For Efficiency

• The shelter from three trees, properly planted around a house, can cut annual heating/cooling costs up to $250.

• Grow vines on trellises to shade windows, the side of a house or AC units.

AC, Appliances And Lighting

• Open windows, when conditions permit, and use fans instead of air-conditioning. Use a fan to maximize and spread the cooled air from air conditioner units.

• Use a programmable thermostat with the AC to adjust the unit at night or when no one is home.

• Keep lamps and TVs away from the thermostat. Heat from appliances and lamps could cause the air conditioner to run longer.

Shade The Windows

• Install white shades, drapes or blinds to reflect heat. Close curtains on southwest-facing windows during the day. Sunny windows can make an air conditioner work three times harder.

• Replace single- and double-paned windows with Energy Star-labeled windows to save energy and money for years to come. Install them before December 31, 2007, and qualify for a tax credit.


• Caulking and weather stripping will help keep out hot outside air, thus keeping indoor air cool. If you see holes in ducts, hire a professional to repair them.

• Add insulation around AC ducts in attics and crawl spaces.

• Consider investing in insulation for the whole house.

Whenever possible, purchase products with the Energy Star label. The label means you are investing in energy efficiency, value, comfort and high performance.

Homeowners can save an estimated 30 percent (about $450) a year on their home energy bill by using Energy Star-qualified products.

Consumer Confidence In Banking Takes A Hit


One industry professional stated that consumer confidence in banking and finance was already fairly low, and added that the recent turmoil with Northern Rock has contributed to this lack of confidence.

Consumer Confidence In Banking Takes A Hit, homeowner loan

A recent survey has shown that consumers’ confidence in banks has taken a real hit, with one of the major causes of this decreasing confidence thought to be the recent situation with Northern Rock. According to the results of the survey close to 25% of Brits state that they do not trust lenders, and less than 50% thought that high street banks could be trusted. The turmoil and chaos that erupted after Northern Rock was found to have taken a loan from the Bank of England, fuelling rumors of a near collapse and resulting in many of the bank’s 1.5 million savers withdrawing billions of pounds worth of savings.

As a result of this situation the Bank of England has stepped up assurance over the guarantee of savings of Northern Rock customers, as well as the savings of customers with other banks that fall into a similar situation. However, it seems that these assurances have done nothing for consumer confidence in banking, with over fifty percent stating that they no longer trust high street banks.

The survey revealed that of the 2484 people interviewed only 46% now trust high street banks. Building societies fared a little better, with 48% expressing confidence in building societies. Online banking has also taken a knock, with experts stating that reduced access to online bank accounts by Northern Rock customers also affecting this area of banking. Only 25% of consumers now trust online banking according to the survey results.

One industry professional stated that consumer confidence in banking and finance was already fairly low, and added that the recent turmoil with Northern Rock has contributed to this lack of confidence. It is not just the banking industry that has taken a knock, however, according to professionals. Lenders across the whole financial sector have been affected by lower levels of consumer confidence. It is thought that this could be as the result of problems throughout the whole of the financial sector, which has stemmed from the credit crunch sparked in the sub-prime sector in the Unites States, which has resulted in global repercussions.

The Benefits Of Saving Money On A Regular Basis


Over the past few years, I have been saving money each month, not for any particular reason like for example to buy a house, but just in case something big went wrong. It is in a way a form of self-insurance. In this article I write about the benefits of doing this and about my own personal experiences, i.e how hard or easy it has been saving in this way.

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Over the past few years, I have been saving money each month, not for any particular reason like for example to buy a house, but just in case something big went wrong. It is in a way a form of self-insurance. In this article I write about the benefits of doing this and about my own personal experiences, i.e how hard or easy it has been saving in this way.

Maybe I am being paranoid but I always seemed to have far less money than what my friends had. Four years ago a group of us went to Spain for a two-week holiday. I will never forget the moment when one of my friends asked how much money each of us were taking on the holiday. We all answered one by one and to my horror not only did I have the least amount but I had around two hundred pounds less than the next lowest person. It was not because I was being tight, it was because I did not have anymore. It had actually been a real struggle to save up this much.

When I arrived back from this holiday I decided that I needed to change my attitude on financial matters. I read a few books and spoke to a number of people about the best way for me to move forward. I did not want to have to struggle next year if there is to be another holiday for example.

I believed the answer was to start saving an amount every month which would leave my account via direct debit. I was the type of person who would basically spend whatever I had or earned. If it was in the bank therefore I would spend it. It was to leave my account via direct debit I would have no way of course to spend it.

I set up one of these savings policies and started it a modest ?0 a month. I am very pleased to say that it did not exactly have a major negative impact on my social life. The policy itself was in some way linked to the stock market and this itself was quite exciting, sad I know. After a year I received a statement through the post and I was quite happy to see that I was actually worth something for a change. I then decided to increase the amount that I was going to save to ?0 a month.

In life you never really know when something is going to go wrong, for example your car breaking down, the washing machine packing up or the need for some improvements to your house. By saving in the way that I know do makes these issues far less stressful to deal with as I have the funds readily available to remedy the situation.

At times of course I have enough money saved to splash a bit on say a holiday or a new car.

I would strongly advise other people to commence saving on a regular basis as it has certainly given me a piece of mind.

A Brief Guide When Shopping For Personal Loans


Personal loans are available from many different companies and lenders for consumers today whether you have good or bad credit.

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Sometimes you need extra money for unexpected expenses like car repairs, unexpected bills, health expenses, school expenses, or a myriad of other reasons. Where do you go to get money for these unplanned expenses? Personal loans are available from many different companies and lenders for consumers today whether you have good or bad credit.

Your first place to try to get a personal loan is from a bank or credit union. Many times, they can offer you a loan based on your credit record. Personal loans from a bank or credit union usually do not have collateral attached to them and they are loans based on your name and credit record. Banks and credit unions are a great place to go for a personal loan if you have comparatively good credit.

Another place that you can get a personal loan is from a personal loan company. There are many of these places that will give you a loan. They usually need you to list some sort of collateral, but if you have a job and a consistent home, then they will normally approve you. This is a good option if you cannot get a loan at a bank or credit union but you need to be a smart consumer and ask questions before signing any loan papers. You need to know the interest rate, the length of the loan, and the monthly or weekly payment amount. Make sure that you can meet the requirements of the loan or you will end up in a worsened financial situation.

There are other options available if the above two choice do not work out. You can take items from your home to a pawnshop to get a loan. This will be a higher interest rate, but if you do not have any other options, this is a good choice. A car title loan is an option, but you need to keep in mind that you will lose your car if you do not make timely payments. A payday loan company is also an option but you need to be sure that you understand the terms of the loan. You need to understand the terms of any loan that you take out to make sure that you can make the payments and pay the loan off. Some of these options are a last resort, but if you need the money for a necessity, it may be your only choice. Just be sure that you go into the loan process knowledgeable about the details of the loan.

There are times in your life that you will need extra money for unexpected or unplanned expenses. It is always best to plan ahead and have a savings account for these expenses, but sometimes it is just not possible. If you do not have any other options, then you may have to take out a loan to cover these expenses. Getting a personal loan can be stressful and difficult at times, but if you do your research and know what you are getting into, then you are sure to be satisfied with the result!