Do you believe the Republicans when they tell you that the National Debt has grown drastically due to inflation? This surprising chart shows how the Republicans and Democrats have performed in money management and affected the National Debt.

The usual politics of presidential elections are all about the Republicans and Democrats fighting for our votes by blaming the other party for all the bad things, like the growing National Debt that is bankrupting our country. There are only a few candidates this time who are telling it like it is, and who have real solutions like the Fair Tax to offer in the money management area to get the debt down and get us some tax relief. My vote is going to Ron Paul because his strategy aligns with the money management system used by my money management software that helps business owners get out of debt and create wealth. This system can work for our government too.

This chart, based on data from the Bureau of Public Debt up to September 29, 2006, the last day of fiscal 2006, is a graphic illustration of how the actions of our current president is bankrupting America (while cutting every program they can get away with) and passing their debts to your children and grandchildren, and their children and grandchildren.

See this incredible graph here: http://i13.tinypic.com/8a15hlj.gif

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Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide

© 2008 Sandra S. Simmons. All Rights Reserved.

Worried about the possibility of The Great Depression happening again? Are you trying to figure out how to protect yourself in an economic crisis? Here are some things you can do.

The first thing you need to understand is what the word ‘economics’ means in terms of thinking about your personal or company finances, and how you can use what it means to your financial advantage.

Forget what the media says about ‘economics’ when they report on the gyrations of the stock market, product shortages and demand increases, price increases, banking industry mortgage defaults and unemployment statistics. Those are ‘economic representatives’ that guage an area that is bigger than you can personally control.

What you do have control over is your own business and household economics. The definition of economics I am using is the original one; meaning ‘the art or science of managing a household or business.’ And those are things that you, as an individual, can control.

Managing a business or household is an art. It requires specific skills and abilities, like putting in organization so things run better. There is a science of managing a household or business, especially in the area involving money. Here is what you can do to guarantee that the economics of your household or business are strong and unshakable, despite the fact the general economy may be on the slippery slide to disaster.

1 – Use CASH Not Credit

Each time you buy something using lines of credit or credit cards because you don’t have the money to pay for it, you are promising your future income to the the credit card company. Those future earnings will undoubtedly be needed to pay your regular household or business operating expenses. That’s when you end up in economic slavery known as the credit trap.

The only exception is buying property that increases in value, like buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. Using your money to make more money is smart money management.

Tip: Be sure you negotiate a big discount when you pay with cash. When the rest of the world is on the downhill run to economic disaster and credit is difficult to obtain, the guy who has the cash is king. In addition, figure out how to purchase items wholesale instead of paying retail prices to keep even more of your hard-earned money.

2 – Don’t Spend More Than You Earn

Learn from your grandparents who earned little, but managed to live well. Reduce expenses to a rate that is less than your income. The most direct route to financial disaster is spending more than you make. You can keep a good quality of life while reducing optional spending. This can be accomplished by acts such as buying used equipment rather than new, and eating less often in restaurants. Don’t buy something because you only want it, but don’t really need it. It’s just a plain good money management practice.

3 – Money Must Be MADE Before It Gets Spent

If there is some future large purchase you need to make, begin by setting aside small amounts of cash in a savings account for that purchase and keep that up until you can pay for it with cash.

On a household level, if your child will be entering college in 10 years, then figure out what the tuition costs will be and work out how much moneyyou have to set aside every week to have the full amount just before they graduate from high school. Plus turn in applications for each student financial aid package, scholarship and student grant you can locate.

On a company level, if you will need to purchase or upgrade a equipment for your office , then figure out what the costs will be and work out how much moneyyou have to set aside every week to have the full amount the month you will need to make that purchase. Plus look for each place you can locate to get the best deal possible.

4 – Put Away Some Cash for Emergencies and Living Expenses

You will sleep much better at night with the financial security of knowing you have money stashed away in a savings plan for emergencies like needing to repair the car or an office machine, having to have some unexpected dental work or experiencing a big drop in income. When you have a cash cushion you can get your hands on immediately, then magically, you don’t even worry about money, and your focus returns to living life and enjoying it, and earning money suddenly gets easier.

The only thing you have to be afraid of in a great depression is not having some cash reserves tucked away in a savings plan you can immediately get your hands on.

It might interest you to know that the Great Depression in our recent past created more millionaires in the U.S. than at any other time in history. Want to know how that happened? In that time, the economy bottomed out, the stock market dropped like a rock, inflation drove prices sky-high, the unemployment rate shot up like a rocket as companys shut down, and people who lost their jobs also lost their homes.

Those who had cash stashed away were able to purchase houses, land and whole businesses for pennies on the dollar. They became overnight millionaires because they had enough cash to weather the storm called The Great Depression.

Out of every bit of income that comes in the door, immediately set aside 10% and stash it in an interest bearing account that you have designated for your cash cushion. Perhaps you’ll have to cut expenses AND work an extra job to build your cushion of cash. No, no moaning about how you can’t, JUST DO IT! As the weeks and months roll by you’ll find you are sleeping better and are walking through life with a lot more confidence knowing you are on your way to financial freedom and have protected yourself from The Great Depression looming on the horizon.

 
A word of caution here – Be careful to protect your cash. There are many banks that are in trouble, and while some have failed, many are on the government’s “likely to fail” list. How safe is your bank? You owe it to yourself to find out.

While your bank probably won’t reveal their rating if you ask, you can find out for yourself how safe you bank is by signing up to get my FREE Bank Ratings Report right here.

Why is controlling the flow of your money so important? It is the energy and life blood of a household or business. It is vital to channel some of it through the income producingareas first to keep it running smoothly, and also to save some of it for future survival. Everything runs better when adequatecash is available. Our Money Management Software guides you towards making the best possible decisions of how to use your money to reach your financial goals.

Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide

© 2008 Sandra S. Simmons. All Rights Reserved.

Ever gotten that feeling of anger and despair when you thought of working out a budget? Then the odds are good you’ve never looked up the word in a good dictionary to find out what this word really means, and thought about how you can use that to your business’s financial advantage.

Want some really good News? Running your business on a budget does not entail cutting back on the quality of the things you buy or denying your company anything it needs to operate. What it does mean, is that you have to figure out how to make enough money to afford the items your company has to have and to keep your spending within the limits of your income.

There’s more good news! The most valuable asset you have is you and your staff, and your income earning potential. If you want more money to spend, then figure out ways you and your staff can be more productive to bring in more money.

Another definition you need know is this: a BUDGET is the amount of money required for the business to operate, and to attain its financial goals.

Let’s consider the first part of the definition; how much is needed for you and your company to run. Add up all the money you spent in the past year to see how much money went out the door including what you put on credit cards plus interest. Divide the total by 52 weeks, and multiply it by 1.136. The result is what your weekly budget is. That is the amount of income your business has to bring in just to function plus barely keep up with increases in the cost of doing business. That doesn’t include paying compund interest on credit card debt.

More than likely, you have financial goals you also want your company to attain; That’s the second part of the definition. Reaching those goals must get added to your budget as well.

Here is an example: a company owner wants to purchase new office furniture 6 months from now that costs $2,000. They divide the cost of the furniture by the 26 weeks they have before the target purchase date and learn they have to set aside $76.92 every week to have the cash for the furniture. This gets added to the budget, meaning the additional amount of income they have to put into the bank every week.

Most importantly, if you, the company owner, want to attain the goal of financial freedom – working because you WANT TO instead of because you HAVE TO — then the most important part of the budget needs to be the wealth building cash you set aside in a savings plan and never touch.

Figure out how much money you would have to have in savings to live without working. Divide that dollar amount by the number of weeks until the time you would like to be financially free. Figure out how to make that much more income each week, and your budget is on the correct path to achieving financial freedom.

How badly do you want to be a millionaire in 20 years? Figure out a way to increase the company’s income enough to stash away $961.54 a week in savings for the next 1,040 weeks and you have made it to being a millionaire! The additional interest earnings on top of that will be a a nice add on perk that more than keeps up with the rise in the cost of living every year.

Today, with computers in every organization proper budgeting is accomplished much more efficiently than ever before by using Money Management Software, such as shown in this video. This software can work as a companion to your accounting software for really easy day-to-day operation.

Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide

© 2008 Sandra S. Simmons. All Rights Reserved.

Do you need some debt relief? You are not alone. Here are 5 tips on reducing debt that you can do right now.

1 – Knock Off Using Credit

The place to start is by locking away the credit cards and figuring out how to cut expenses back to function within your income. Figure out ways to increase your income and instead,use only cash. This is the single most effective action you can take.

2 – Never Commit to Spending More Than Your Company’s Income

When you pay for an item with credit because you don’t have the cash, you are committing your business’ future income to pay the credit company. That’s the recipe for economic slavery. Evaluate whether or not the item will increase the company’s production of income. If the item will increase the business’ production of income, work out how to set aside the cash to pay for it over a short time period instead of whipping out the credit card. Find ways to increase the company’s income and use it to pay both current expenses and pay off credit debt.

3 – Pay More Than The Minimum Payment That’s Required

An effective way to reduce the debt every week is to take 10% to 15% off the top of the company’s income and use it to pay down the debt. Set a goal to pay at least 3 to 5 times the minimum required payment on each credit card and line of credit. Set aside some of the payment money every week before the statements arrive in the mail. It is less difficult to set aside a smaller amount over 4 weeks than to try to come up with a big chunk in one week.

Your debt reduction program should also include the strategy of paying more on the highest interest rate card. Another strategy is paying off the lowest balance cards as fast as possible. This will free up more cash to pay against the higher interest rate cards.

4 – Never Pay Late or Spend Over Your Limit

Never sabotage your debt reduction program by getting hit with $25 to $39 over-the-limit or late fees plus the interest on those fees. Plus, if you pay over 30 days late, your credit record carries that big black mark against you for 7 years – a whopper of a penalty.

Recently a Vice President of a U.S. bank appearing on the news stated that over 24 Billion dollars was paid in interest, late fees and over-limit fees last year on credit cards. I hope you don’t think the credit company minds too much if you go over your spending limit or mail your payment late. They collected billions because of it.

5 – Find Ways To Cut Expenses

A requirement of a debt reduction program is more cash as fast as possible to pay the debt off. Examine where your business’ income is going and reduce all unnecessary expenses that do not contribute to making more money. Before you spend, work out how much money each and every purchase is going to return to your company.

TIP: Continue promoting your your company and its products to everyone – this is one area you don’t want to stop spending on. Just make sure you are getting a handsome financial return on the promotional investment.

Correctly managing the money in a business to make sure it survives takes more than a program to reduce debt, but this is a great place to start. There are other steps in my money management software program that can be taken to increase the business’ income, pay bills on time, have savings for emergencies, increase profitability and pay yourself a bigger paycheck. Who doesn’t want that, right?

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and private individuals manage their income to eliminate debt. Claim your FREE Debt Reduction Solutions Guide

© 2007 Sandra S. Simmons. All Rights Reserved.