Minimizing Expenses. Managing cash-flow is a very important aspect of personal financial success....
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Transcript of Minimizing Expenses. Managing cash-flow is a very important aspect of personal financial success....
Minimizing Expenses
Managing cash-flow is a very important aspect of personal financial success. Obviously, the fewer expenses a person has provides them more discretionary income for Eliminating Debt and Investing for their future Financial Freedom.
Why use Credit?Credit was meant to be used for major purchases in life…not small stuff
DEBT The first place to begin to minimize
expenses is in Debt. You should immediately reduce all cost, and eventually terminate ALL DEBT. This will save you hundreds of thousands of dollars over a course of your lifetime. It is estimated that the average household could easily spend over $1 million dollars in just interest on debt.
HOME MORTGAGE
Avoid ARM loans, Options, etc. Get fixed-rate Mortgages Improve Credit Scores Negotiate Interest Rates Make periodic principal-only
payments Consolidate when necessary
RENT
THIS IS A NO-NO!!
In very rare cases should you rent
AUTO & TRANSPORTATION
Purchase 4-6 cylinder vehicles to reduce gasoline cost over time
Prolong BRAND NEW Vehicles until your Assets are complete
Increase Credit Scores Negotiate cost and interest rates Never trade-in, Sell instead Make down payments Make periodic principal-only
payments
AUTO INSURANCE
Your Auto Insurance is dictated by your driving record, dwelling location and your credit score.
Avoid Speeding Improve Credit Scores Ask for a rate re-evaluation
Universal Credit Cards
Major Bank Universal Credit Cards carry the best interest rates.
Get rate comparison via the internet
Never make just the minimum payment
Pay off ASAP
Department Store Cards
These cards carry higher interest rates and reflect poorly on your credit scores.
Use a universal card instead
Transfer balances to a lower universal card and close account
ALWAYS AVOID THESE FEES:
Overdraft Fees Late Fees
Over-limit Fees
Finance Companies
Higher interest rates Reflects negatively on credit scores Never make minimum payment Transfer balances to universal cards Consider replacing with HELOC Pay off ASAP
Furniture & Appliances
Avoid purchasing on credit Save and pay in full Shop for second hand or reduced
cost Prolong expensive furniture until
Assets are complete Avoid doodads Don’t try to impress people
Clothing & Apparel
Don’t get caught up on name brands Buy off-season Wait for sales, ask for discounts Never charge clothing, remember
this is not a major purchase Recycle through Yard Sales and
Consignment Shops Avoid unplanned shopping sprees
Food & Eating Out
Use your discount card, clip coupons
Reduce to once or twice weekly
Pack lunches Drink water Do not over eat Write off
Travel Use your Member
Discount Travel Agent perks
Travel off season Purchase from
yourself Get a commission Write it off as
business travel
Home Phone, Internet, & Cell Compare to VOIP Assess minutes Search the
internet for ISP, as low as $10 per month
Write off Write off Write off
Education Hire children
between the ages of 7-17 yrs
Write off as business deduction
Save child wages for college tuition
Help child maintain exceptional grades, GPA
Seek Academic and other scholarships
Health Care Cost
PREVENT SICKNESS AND REDUCE HEALTH CARE COSTS BY: All natural nutrition and vitamin supplements Purchase from yourself, get
commission and write it off, 100% Get regular exercise & proper rest Healthy eating plan (never diet)
Life & Health Insurance
Health Insurance
Increase your deductible and invest the difference Read carefully the terms and conditions Don’t forget about Disability Insurance Many choices are available…do your due diligence
Life Insurance
Properly assess the amount of insurance you need Is my job insurance enough? What are Riders and can they be beneficial? Buy Term and invest the difference
TAKE AN EVALUATION!!
MINIMIZE BUSINESS EXPENSES
Document every tax-related Business expense
Convert many Personal expenses to Business expenses
Go electronic, avoid paper Use land-line in place of cell phone Know your tax deductions…all 422
Don’t forget to use your iCON of Success membership
lifestyle discounts for all qualified purchases!!!
MEMBERSHIP PRIVILEGES
SWEET SUCCESS!!!