Information Resources

How To Be a Millionaire On Minimum Wage

“Robert Reich, once observed ‘most minimum wage workers aren’t poor.’ He is right.” – Johny Isakson, U.S Senator (Robert Reich is former U.S department of Labor Secretary)

Minimum wage earners keep complaining about their salary. They say they cannot retire rich. Most of them just go through their work and retire relying only on their small SSS pension and the little retirement that their company will be giving them.

For most minimum wage earners, becoming a millionaire when they retire is quite an impossible dream. They contend that they can only be a millionaire if they receive a hefty sum of retirement money from their company.

Is it really possible to achieve millionaire status by your own efforts alone ? (Humanly speaking) Let us consider this actually scenario.

In the Philippines, Central Visayas Region, the current minimum wage is P 241.00. Multiply it by 26 days of work you get P 6,266.00.

Let’s just say that you are 30 years old and you faithfully saved that P 266.00 per month and spent the rest of the P 6,000.00, that would amount to P 3,192.00 per year

Do the math. If you put that P 3,192.00 in an investment vehicle that would give you 10 % interest per month in interest (compounded), do you know how much your money would become in 30 years, that would be P 1,052,001.00. If you started this kind of savings program when you were 30 years old you will retire a millionaire at 60 years old by your own savings program alone, add to that the retirement benefits from your company, your monthly pension from the SSS and your PAGIBIG “savings.”

What if you decided to add another P 500.00 in your monthly investment and invest P 766.00 instead? This would amount to P 9,192.00 per year and at the end of 30 years it would amount to a whopping amount of P 3,029,447.00 (At 10 % interest per year compounded)

Perhaps later on you would increase your savings to P 1,766.00 a month if you receive a salary increase. If you do that even on the 10th year after you start saving only P 266.00 a month, you will retire with P 4,472,777.00.

The growth of your money is possible because of what we know in the world of finance as the Rule of 72.

Albert Einstein’s greatest discovery was not the theory of relativity, it was the Rule of 72. (Although some people say that the rule existed long before he was born, most would agree however that he has popularized it)

What has the Rule of 72 have to do with investing and growing your money ?

Basically knowledge of the Rule of 72 is the basic building block of learning that each budding investor should have.

Simply stated the Rule of 72 helps you determine the following:

1.) What interest rate you should avail of in order for your money to double quickly.
2.) How many years does it take for your money to double.

In a nutshell the Rule of 72 is stated as follows:

72 divided by interest rate return = No. of years it takes for your money to double.

So, if you put P 100,000.00 in a bank account, it will take 72 years for your money to become P 200,000.00 since the bank only offers a 1 % percent interest rate. (72 divided 1 = 72)

Let’s say you get a little wise and you put your P 100,000.00 in a time deposit account it will take 18 years in order for your money to become P 200,000.00 (72 divided by 4 = 18)

Basically the higher the interest rate the less number of years your money will it take for your money to double.

So if you put your P 100,000.00 in an instrument that would give you a 12 % interest rate it will only take 6 years for your money to double (72 divided by 12 = 6)

However take note that the Rule of 72 is more accurate with lower interest, the higher the interest rate rises the more inaccurate it becomes. (An example of this is that if you earn have P 100.00 an invest it in an instrument at 72 % interest rate per year according to the Rule of 72 your money will become P 200.00 in 1 year. However this is not entirely accurate since you will need a 100 % interest rate in order for it to become P 200.00 in 1 year time)

Interested in how many years would it take for your money to TRIPLE and what should be the interest rate that you should avail of? then you should use the Rule of 115. It works basically the same way as the Rule of 72, just substitute 72 with 115.

Earning the minimum wage ? No problem with the Rule of 72, You could be a millionaire!

Author Bio
Zigfred Diaz is a Registered financial & Real estate broker. He is also a practicing lawyer & a law professor. Recently he has involved himself with internet marketing. If you would like to know more about investments, how to handle your money, take charge of your financial future and earn extra income visit his blog at www.moneysmartpinoy.blogspot.com

Article Source: http://www.ArticleGeek.com 

Avoiding Common Business Loan Mistakes

Surveys show that 94.7% of small business owners feel their only lending resources are local banks or personal credit cards. This common sense advice will help you avoid these common business loan mistakes, regardless of your personal credit history… and avoid pledging your personal property as collateral.

First of all, getting approved for a commercial loan is definitely easier than getting personal loans… regardless of your personal credit scores. Additionally, getting the right types of corporate credit is absolutely critical: if you want to protect your personal assets, minimize the risk of a personal lawsuit affecting your business, and to your ability to weather the economic changes that happen overnight.

All business owners must be much more proactive about developing relationships with the right types of lending institutions. You usually want to start your application process with out-of-state, national lenders… not your local or regional banking institutions. National lenders typically won’t require a personal guarantee or your social security number.

Follow this simple roadmap to obtain a small business startup loan, a business debt consolidation loan, a bad credit business loan, or a government business loan… although I strongly recommend that you find a commercial loan expert who can help you through the process of building a strong corporate credit rating.

Finding a competent business loan expert will give you a head start on your competition & also let you focus on running your day-to-day activities… instead of dealing with the hassles of establishing a strong business credit rating. An excellent business credit score can help your company’s image, overnight. And, finding a small business loan expert isn’t that difficult. You just need to know where to look.

Now… let’s get started… before you start applying for any business loans!

1. How is your business structured? Is it a sole proprietorship, C-corporation, S-Corporation, Limited-Liability Corporation (LLC), Partnership, or Trust?

2. How long has your business been recognized by your State & Local government?

3. Has your company ever had derogatory information reported against it to either of the two (2) most popular business credit reporting agencies, Dun & Bradstreet or Experian?

4. Are your commercial permits, licenses and registrations current?

5. Does your business have a physical address, or are you trying to use a U.S. Post Office Box instead?

6. Is your business telephone number recognized by directory assistance?

7. Are your incoming telephone calls professionally answered in your business name?

8. Have you established a business checking account?

9. Have you registered & asked for an Employer Identification Number (also known as an EIN) from the IRS?

If your answer to the first question was a sole proprietorship, partnership or trust; I urge you to re-establish your company as a corporation or LLC. I’m not going to provide you with legal advice, but many CPAs and attorneys highly recommend
LLCs (Limited Liability Corporations) as a way of protecting your personal assets & estate… in the event of any lawsuits being filed against your company.

As a sole proprietor, your personal assets are at direct risk of seizure or forfeiture when faced with most types of legal action. Additionally, if you are applying for business loans in a corporation’s name… most lending institutions will not require you to provide any personal guarantee!

A corporation can still face difficulties applying for business credit, if it has been in business less than two (2) years or had previous credit problems reported against it. Here are some ways to fix these problems.

– Purchasing a “shelf corporation” or “aged corporation” that’s been in good standing with your State government (for longer than 2 years) can drastically improve your chances for small business loan approval.

– You can attempt to repair your business credit rating by writing dispute letters to Experian or Dun & Bradstreet, which isn’t always possible.

– Some corporate credit experts will help you find, select & purchase an established “shelf” or “aged” corporation, some of which already have strong credit ratings established… saving you alot of hassles!

I cannot stress this enough… you MUST have a physical address (not a PO Box) if you want to establish a solid business credit rating. The same thing is said for telephone numbers & the way incoming phone calls are handled. Would you lend
money to a company that does not appear to have a physical address or documented telephone number?

And, don’t forget to always keep your commercial permits, licenses & registrations current… and always keep copies of these documents in case a potential lender asks for this information.

Business checking accounts are a must. Again, this proves stability to your potential lenders. Here are a couple of tips for you, in case you’ve had any checking accounts closed by a financial institution. Pay off the outstanding balance (if any) that’s being reported by the bank, or open a checking account at a bank or credit union that doesn’t use the ChexSystems credit reporting system. Most credit unions don’t use ChexSystems, and you can always find a list of banking institutions in your area that don’t use ChexSystems… by simply doing a search on Google, Yahoo or MSN.

Small business credit ratings are tracked using your business name, business address and employer identification number (EIN). You can apply for & receive an EIN at the IRS’s website (irs.gov). You can also call the IRS, but be prepared for long waits.

Then you’ll want to obtain a D-U-N-S number from Dun & Bradstreet, the largest business credit reporting agency. You can apply for this without any fees at Dun & Bradstreet’s website (dnb.com), and you’ll usually receive this number within
thirty (30) days. Do not apply for this number until you’ve prepared your self thoroughly, because any information you give to them… goes into your credit file… permanently.

After you’ve obtained your D-U-N-S number, you’re probably ready to start establishing some vendor credit. Vendor credit is where many business owners start establishing business credit ratings. Simply go to staples.com, officemax.com or officedepot.com to get started. Then, you’ll also need to fax your business telephone bill & the credit application to them… on your business letterhead (which you can create using your favorite word processing software if you don’t have expensive stationery). They usually don’t require any personal guarantees (if you’ve followed the outline above), and you’ll usually receive a starting credit line of $750.

This is critical & I repeat… critical! Always pay your invoices before the grace periods begin… especially on unsecured credit cards or vendor credit lines. Dun & Bradstreet will lower your credit score for every day a creditor reports your bill as unpaid while you’re within your grace period. Whereas, personal credit scores are not lowered unless you are 30+ days past your due date.

Dun & Bradstreet reports what’s known as a Paydex score (your corporate credit score), and a score of 80 is very good… with 100 being the highest score you can achieve. Your Paydex score is issued once you’ve established a known
vendor/credit relationship with at least five (5) creditors.

There are shortcuts that will help you get much more than $750 alot faster. When using a business credit expert, most small business owners (even startups) can be approved for vendor credit lines of $25,000-$50,000 and open credit lines of
$50,000, $250,000, $500,000 or more… in as little as 45-60 days… by using their knowledge of the application process & “shelf” corporations.

Now, it’s your choice. Are you going to go against the grain & try to establish business credit on your own (which could prove costly to your business health, growth & survival)? Or, will you choose to utilize a corporate credit expert… allowing you to remain focused on your daily business needs?

Most business owners make the mistake of trying to do this on their own… usually trying to find grants, investor “angel” money, or falling back onto the “personal credit card sword”. Don’t be a casualty like the rest. Learn more about how you can use the same tools that informed, educated millionaires have been using for decades.

Author Bio
Lee Kendrick has been featured by several national magazines as a credit expert, finance professional & public speaker.

Register for his newsletter at http://leekendrick.net/credit-expert/ & discover how you can be approved for $250,000 or more in as little as 45-60 days regardless of your personal credit.

Article Source: http://www.ArticleGeek.com – Free Website Content

 Keys to starting an online affiliate business

There are a number of things to look for when starting your own online affiliate business. But, before I get into the specifics of what to search for, the one aspect that an individual must possess in order to be a successful Internet marketer is PERSISTENCE. With out this quality you might as well stop reading right now. Like many successful entrepreneurs, persistence is one of the main qualities that allow them to be successful. Once you acquire this characteristic there is no stopping you.

Now, let me get into the specifics for all the ADD people out there like my self before I lose you.

Keyword Research

First, one of the main aspects of being a productive affiliate marketer is niche market research. You must find an unexploited niche market that has limited advertising competition. The number of advertisers in a certain market is key to being profitable with your product, the fewer advertisers the better. One of the best tools to use to find these unexploited niche markets is Google Adwords. If you have a google account you can sign up for adwords for free in your account information.

This tool allows you to research for keywords that have a descent average search volume and also lists the average number of advertisers for each keyword. This is crucial to finding the right market to promote with your marketing skills. Without this important market research you will be wasting your time. I do not know about you but my time is definitely precious to me. I cannot say it enough but RESEARCH, RESEARCH, RESEARCH is critical to being profitable in this business.

Affiliate Programs

Next, once you find that unexploited niche market, yep you guessed it, more research. Now you have to find the affiliate programs that pertain to that particular market. For example, lets say you want to promote garden tools, you will have to find companies on the Internet that manufacture or sell these products and make sure they have affiliate programs for you to sign up with. Once you find these companies make sure to read up on their affiliate programs. Some of the things to look out for are the percentage of commission you will receive with their affiliate program. If the costs of products are expensive then the percentage should range from five to fifteen percent, if the products are cheap you will be looking for a percentage higher than fifteen percent, like twenty to fifty percent.

Other stuff to look for when applying for affiliate programs is how they pay you and how often they pay you. Usually most programs send you checks once your commissions have exceeded a certain amount like over fifty dollars, only so they will not be sending checks out for five dollars or something ridiculous like that. Some of the best affiliate programs out there are Clickbank and LinkShare. These programs carry over thousands of different products that are just waiting for someone to promote them.

Generating Traffic

The last part of the process is generating traffic for your new affiliate product. There are several different methods you can use all at the same time to maximize your full potential.

You can write blogs about you product. Promoting the benefits of your product and using your affiliate link to monetize that blog. Blogger.com is free and simple to use for anybody, and I do mean anybody. Article marketing is another free and easy way to generate traffic to your affiliate site. Myspace is another great way to promote your business and products by talking to your friends online about what you are doing.
Participating in forums is one more option you can use to promote your products and affiliate links.

These are just a few ways to generate traffic for your affiliate links; there are many more options out there.

Author Bio
J. Villarreal is an effective entrepreneur in finance and marketing arenas. If you would like more informative tips on Internet businesses, please visit viljos.thebestbizreview.com Or affiliatebusinessinternetmarketing.blogspot.com

Article Source: http://www.ArticleGeek.com 

 Getting the Credit You Deserve?

Have you ever wondered why so many businesses fail within 1-2 years… or even after 5 years in business?

To many business owners, this question is scarier than finding a burglar standing over your bed at night. So, here’s some common sense advice that can save your business, regardless of how long you’ve been in business.

First of all, building a solid business credit rating is possible regardless of your personal credit scores. Obtaining the right types of corporate credit is vital to: the protection of your personal assets, the risks associated with personal lawsuits affecting your business, and your business’ ability to weather economic changes that seem to occur overnight.

All business owners must make it a weekly priority toward developing relationships with the right types of lending institutions. You usually want to start your application process with out-of-state, national (or international) lenders… not your local or regional banking institutions; because these larger lenders typically won’t require a personal guarantee or your social security number.

However, there are many steps you’ll need to take before you start applying for any type of business credit. Ultimately, it’s in your best interest to find a competent professional that can help you navigate through the murky underworld of building a strong corporate credit rating… giving you a head start on your competition & also letting you focus on running your business’ day-to-day activities.

An excellent business credit score can help your company’s image, overnight. You need to be able to answer some very basic questions, before you apply for any business credit.

1. Is your business strauctured as a sole proprietorship, C-corporation, S-Corporation, Limited-Liability Corporation (LLC), Partnership, or Trust?

2. How long has your business been recognized by your State & Local government?

3. Has this company ever had any derogatory information provided to the most popular business credit reporting agencies, Dun & Bradstreet or Experian?

4. Does your company have the proper permits, licenses and registrations necessary to conduct business in your jurisdiction?

5. Does your business have a physical address?

6. Does your business have a landline telephone number that’s recognized by directory assistance?

7. Are your incoming telephone calls professionally answered in your business name, or is it answered as if incoming calls are personal conversations?

8. Does your business have a business checking account?

9. Does your business have an Employer Identification Number (also known as an EIN)?

If your answer to the first question was a sole proprietorship, partnership or trust; I urge you to re-establish your company as a corporation or LLC. I’m not going to provide you with legal advice, but many CPAs and attorneys highly recommend LLCs (Limited Liability Corporations) as a way of protecting your personal assets & estate… in the event of any lawsuits being filed against your company. As a sole proprietor, your personal assets are at direct risk of seizure or forfeiture when faced with most types of legal action. Additionally, most lending institutions will not require you to provide any personal guarantee when applying for credit in the name of an LLC.

A corporation can still face difficulties applying for business credit, if its been in business less than 2 years or if its had previous credit problems reported against it… although its not impossible to overcome. Here are some common fixes. You can purchase a “shelf” or “aged” corporation that’s been recognized by your State government for longer than 2 years. You can attempt to repair your business credit rating by writing dispute letters to Experian or Dun & Bradstreet, which isn’t always possible. A few corporate credit experts will sell you “shelf” or “aged” corporations, some of which already have strong credit ratings established in each entity’s name… saving you alot of hassles.

I cannot stress this enough… you MUST have a physical address (not a PO Box) if you want to establish a solid business credit rating. The same thing is said for telephone numbers & the way incoming phone calls are handled. You don’t have to act as if your company is a Fortune 500 company. You just need to put yourself in the lender’s shoes for a moment & ask yourself, “Would I lend money to a company that I can’t find a physical address for?” or “Would I lend money to a company that answers their mobile phone with your favorite musician’s answer tone & is answered in a non-professional manner?”. I hope your answer was a resounding “NO!”. If not, can I borrow $1,000,000? You can always find me wherever my mobile phone is at the moment. (Get my point?) And, don’t forget to get the proper paperwork to go into business & keep these documents current.

Moving on, business checking accounts are a must. Again, this proves stability to your potential lenders. Here are some possible solutions, if you’ve had checking accounts closed in the past. Pay off the outstanding balance (if any) that’s being reported by the bank, or open a checking account at a bank or credit union that doesn’t use the ChexSystems credit reporting system. Most credit unions don’t use ChexSystems, and you can always find a list of banking institutions in your area that don’t use ChexSystems… by simply doing a search on Google, Yahoo or MSN.

Corporate credit ratings are tracked using your business name, business address and employer identification number (EIN). It takes less than five (5) minutes to apply for an EIN at http://irs.gov which is the IRS’ website.

Next, you’ll want to obtain a D-U-N-S number from Dun & Bradstreet, the largest business credit reporting agency. You can apply for this without any fees at http://dnb.com which is the Dun & Bradstreet website, and you’ll usually receive this number within thirty (30) days. Do not apply for this number until you’ve prepared your self thoroughly, because any information you give to them… goes into your credit file… permanently.

After you’ve obtained your D-U-N-S number, you’re probably ready to start establishing some vendor credit. Vendor credit is where many business owners start establishing business credit ratings. Simply go to http://staples.com, http://officemax.com or http://officedepot.com to get started. Then, you’ll also need to fax your business telephone bill & the credit application to them… on your business letterhead (which you can create using your favorite word processing software). They usually don’t require any personal guarantees (if you’ve followed the outline above), and you’ll usually receive a starting credit line of $750.

Be sure to always pay your invoices before the grace periods begin. This is critical, especially on unsecured credit cards. Dun & Bradstreet issues what’s known as a Paydex score (your corporate credit score), and a score of 80 is very good… with 100 being the highest score you can achieve. Your Paydex score is issued once you’ve established a known vendor/credit relationship with at least five (5) creditors… and it reflects negatively on your credit score if you pay a bill after you’ve entered in the grace period & even worse if you pay after the due date.

Again, there are shortcuts that will help you get much more than $750 alot faster. I’ve seen hundreds of people start with vendor credit equaling $25,000-$50,000 and open credit lines of $50,000 up to $1,000,000… in as little as 45-90 days… by using a corporate credit expert’s knowledge of the application process & “shelf” corporations. In fact, the best corporate credit experts will usually already have “shelf” corporations for sale… with pre-established credit ratings & lines of credit.

In summary, I’ve given you most of the tools & information you need to obtain corporate credit lines. Are you going to let a “cash crunch” put you out of business? Are you going to try to establish a business credit rating yourself & build your credit slowly? Or, will you utilize the services of a knowledgeable corporate credit expert to establish your credit rating & secure large credit lines… overnight? The choice is yours.

Author Bio
Lee Kendrick has been featured on the cover of numerous magazines as a highly respected credit expert, finance professional, and experienced internet marketer. Register for his infamous newsletter at http://leekendrick.net/credit-expert to discover how easy it is to get business lines of credit equal to $250,000 or more… in as little as 45 days… regardless of credit.

Article Source: http://www.ArticleGeek.com 

 How To Get Out of Credit Card Debt

“Today, there are three kinds of people: the have’s, the have-not’s, and the have-not-paid-for-what-they-haves. ~Earl Wilson”

Credit cards are truly one of the mankind’s greatest inventions. Unfortunately, it has also become one of the mankind’s greatest curses.

Most credit card companies in the Philippines charge 3.5 % interest rate per month. That is about 42 % per annum. If you do the math, your present outstanding balances will double every 2 years. If you owe your credit card company P 10,000.00, in 2 years time it will become about P 20,000.00.

The best thing that you could do right now is to pay all your credit card debt immediately. That is if you have the money to do so. But what if you owe your credit card company P 100,000.00 or even P 200,000.00 what should you do? What if you have multiple credit card debts? The following are probably the best steps that you could take in order to rid yourself of this credit card debt mess.

1.) Get a loan with a lower interest rate – Some lending institutions and even banks offer an interest rate of 0.99 to 1.5 % interest per month. This is much lower than what the credit card companies charge. If you can secure a loan with a lower interest rate, especially a diminishing one (Hard to get by these days, by the way, if you don’t understand the difference between diminishing rates and straight rates or fixed rates this will be discussed in another post) use the loan to pay off your credit card debt, and resolve to never ever again use your credit card except if you can pay it within 30 days. That way you won’t charge the monthly interest. By borrowing at a lower interest rate you will minimize your losses due to interest. If you can borrow from somebody at 0 % interest (A rich old uncle perhaps), that would be so much better. If you have several credit card debts, borrow enough to pay all of your credit card debts. This way you can focus on paying only one debt and one interest rate. In financial planning, this is better known as “debt consolidation. “

2.) Secure a balance transfer – Most credit card companies have a wonderful feature called “Balance transfer.” When you transfer your balance from other credit cards they will only give you .99 percent interest per month. This is already a steal deal. The balance transfer is payable in certain terms like 12, 24 or 36 months. So let’s say you owe your PS BANK Master Card P 100,000.00. If you have another credit card with let’s say CITIBANK and your credit limit with CITIBANK is also P 100,000.00, you could transfer your balance from PSBANK to CITIBANK. Instead of 3.5 % interest per month, Citibank will only charge you 0.99 % per month (About 12 % per annum). What Citibank will do is that they will add the monthly interest and then divide that by the term that you wish to avail of. For example of you wish to pay off your debt within a year the computation would be: interest times principle + principle divided by 12. So that would be 12 % x P 100,000.00 + 100,000.00 / 12 = 9,333,33. You will only have to pay P 9,333.33 per month. If you say that you will just pay P 9,333.33 per month at 3.5 % per month anyway that is based on “diminishing interest” (This means that your interest goes down if your principal goes down)as opposed to paying a “fixed interest” you will still end up with P 14,822 in debt at the end of the year. If you pay a fixed interest of P 9,333.33 at the end of the year you will end up with zero credit card debt. (I would love to post the table I made, but unfortunately, I cannot do it here so just email me if you are interested)

But if you pay only the “minimum” per month, what will happen to your credit card debt? You will see that at the end of 12 months you still owe your credit card company P 92,585.00. (This will be discussed in a different post) That is why it is not wise to pay only the “minimum.”

There are several things to remember about “balance transfer”:

1.) The balance transfer is subject to approval by your credit card company.
2.) The maximum amount you can avail of for balance transfer is your credit limit. Let’s say you have P 100,000.00 and you used up P 50,000.00 more or less you can balance transfer about P 50,000.00. However take note, this is not guaranteed. This is still subject to approval by your credit card company.
3.) Make sure you pay the fixed monthly installment. In our illustration above, pay the P 9,333.33 religiously, otherwise, it will be made subject to the 3.5 % monthly interest. Don’t be tempted to pay only the “minimum” since you will be charged with 3.5 % interest over and above the 0.99 % interest. (This is double jeopardy !)
4.) It is advisable not to use your card when you are using it for balance transfer in order to avoid confusion and to make sure that you can make a priority to pay the installment for balance transfer instead of paying other credit card debts.
5.) Resort to balance transfer only when you cannot avail of the first option. The first option (Get a loan with a lower interest rate) is still the best.

Author Bio
Zigfred Diaz is a Registered financial & Real estate broker. He is also a practicing lawyer & a law professor. Recently he has involved himself with internet marketing. If you would like to know more about investments, how to handle your money, take charge of your financial future and earn extra income visit his blog at www.moneysmartpinoy.blogspot.com

Article Source: http://www.ArticleGeek.com