Will Obama-nomics and the Obama economic plan work? That remains to be seen. However, with the new Obama administration and the financial “experts” telling us it may be years before we see an economic recovery, most of us don’t have time to wait for the politicians to get their act together. We, as a nation, need to take the economy into our own hands and speed up the recovery as quickly as possible.

But how do we do that, exactly? With figures in the trillions of dollars, it would seem impossible for any individual to have much of an effect on our current economic crisis.

“The answer is correct money management and the correct handling of our finances,” says money management expert Sandra Simmons. “We got ourselves into this situation because we, as a nation, have violated many of the basic principles of sound financial management. No matter what the government does, in the end, all of us need to change the way we handle money and credit in order to truly get the economy back on track.”

In particular, Simmons takes aim at America’s over-indulgent love affair with credit. Credit, she says, is an all-too-seductive trap that has lured an entire nation to shipwreck upon hidden fiscal shoals. Almost everyone, from the largest of companies to the individual consumer fell into the credit trap and began living a false lifestyle that was way above its means. This false economic condition was a ticking time bomb just waiting for the right set of circumstances to explode.

“At any given point-in-time, we are all in a certain financial condition,” explains Simmons. “And it is easy to fool yourself into thinking that you are in a better condition than you are actually in. The basis for this false financial condition is usually an over-reliance on credit to supplement your income. Too much credit and too much debt inevitably leads to a financial crash.”

Although Simmons has been writing and lecturing on the dangers of credit and debt for years, the recent U.S. Economic crisis has brought the point home with historical force. Financial pundits and politicians may complain that this “Economic Tsunami” was unforeseen, but Simmons disagrees.

“If you analyze the histories of economic bubbles, you will find at their root violations of sound money management principles. Whether it’s herd mentality or some other phenomena, group-think drives people to take actions they intuitively know to be unsound and overly risky,” she says. “But the terrible truth is that people know when they’ve extended themselves too far and national confidence begins to wane.”

Confidence, says Simmons, is the single most important hallmark of any strong economy. The question becomes how confident can anyone be when they know that they owe their lifestyle and economic standing to a economic foundation based on credit. Like any structure built on an unstable base, it’s only a matter of time till it comes tumbling down.

“Conversely, an economy with little debt, operating on very little credit and strong reserves is an economy in very good shape and one that is very stable and hard to disrupt,” states Simmons. “The kind of money management system that I am talking about is actually the kind of system that is very old-school and traditional. That is a tried and true system. It works and it’s the road to financial freedom and wealth.”

According to Simmons, this is the real way to build the economy from the ground up. The goal should be to get every American applying the tried and true money management policies to their own lives and this would serve to create an extremely strong economic base on which to build an unshakable economy.

Simmons’s plan to grow the economy from the ground up would include:

1.Start using cash instead of credit.

“We have to break the cycle of using our credit cards for every financial transaction,” says Simmons. “Instead, use cash or your ATM card. If you can’t afford it, don’t buy it. Instead, save up for it if it is something you really want.”

Getting away from the instant gratification mindset that we have all become used to may go contrary to popular culture but it is the way to dig ourselves out of this economic mess.

“As a nation, it is not difficult to see the immediate effect it would have if we all stopped using credit cards and started using cash,” she says. “Many would argue against this, especially with the holiday season approaching. But we have to get off our credit addiction at some time, and now is as god a time as any to get into the right spending habits.”

2.Pay down your debts

Another unacceptable money management habit is carrying a large debt load.

“Somewhere along the line, it became acceptable to carry a large amount of debt,” notes Simmons. “Maybe this comes from Madison Avenue advertising campaigns, but this is completely wrong-headed. The goal should be to be completely debt-free. It doesn’t do to pay the minimum amount owed on debt. Additional money should be applied to debts to pay them off quickly.”

Debt, it could be stated, is at the root of all financial evil. Debt, by its very definition, carries with it, risk. That risk of course, is financial failure.

“I think the lessons of the Great Depression faded so far into the past that most of us forgot what could happen when you allow debt to accumulate,” Simmons observes. “The risk-taking by some of the largest financial institutions and our own government would have been unimaginable a generation ago. We can all get out of debt, but it does take a certain amount of planning and discipline. “

3.Build Reserves.

The road to wealth begins with putting money aside little by little into reserve accounts that are not touched except for emergencies.

“Unfortunately, the very concept of saving has gone completely out the window,” Simmons says. “Saving money is just not a popular concept anymore and is possibly viewed as old fashioned by some. As a result, the U.S. Ranks far down the list of countries whose workers and business owners regularly put money aside in savings, and this makes us very vulnerable when we can no longer work or when a crisis occurs in our lives.”

In fact, if anything, the messages in typical advertising and commercials is spend, spend, spend. If there are any suggestions in society about putting money aside, it certainly gets lost.

“In truth I think we’ve lost touch as a society with what it takes to build wealth and gain financial freedom,” says Simmons.”The fact of the matter is that anyone can become wealthy if they apply the right money management principles. It’s really not how much you make. It’s what you do with your money that counts.”

And Simmons has the client list to prove it. Despite the devastating economic storm, Simmons’ clients have weathered it rather well because they have applied her principles and were prepared.

Simmons is anxious to spread the word and is currently touring the U.S. giving seminars on the secrets of wealth building and financial freedom. Her next seminar is scheduled for the weekend of December 13th in the Tampa, Florida area.

If anyone thinks that we cannot change our collective financial habits for the better, Simmons cites one very prominent example.

“Just look at what we did with the gas prices,” she says. “The so-called experts said it couldn’t be done, but America, through our combined efforts, changed our habits and dramatically lowered the prices. It can be the same with the economy if we change our money management habits from the ground up. “

While the media is spinning story after story about the Presidential Campaigns, and Obama and McCain are chanting “Change, Change, Change,” I am asking “How, How, How are you going to do that?”

First, and most obvious, there is no power vested in the power of the President to enact law. That power is fully invested in the power of the Congress according to our Constitution. Let me repeat that. The Constitution does not empower the President to make law.

Executive Orders issued by the President that bind the entire nation are illicit because, as noted above, “All legislative powers” are possessed by Congress. An Executive Order that binds only the employees of the federal government (such as granting a holiday) is proper because the President should be considered to be the holder of power much like that possessed by the CEO of a company. But the entire nation is not in the employ of the President.

What power does the elected President have? The President does have a role in lawmaking with his possession of a veto. He can veto a measure approved by Congress (which can be overturned by a two-thirds vote in each house of Congress), or simply allow it to become law by doing nothing within 10 days, “Sundays excepted.”

Both candidates are saying they are going to cut income taxes, balance the budget deficit, straighten out the US economy, stop the wasteful spending, rehabilitate the Social Security system or provide affordable healthcare and health insurance to every citizen but, what they aren’t telling us is how they are going to get Congress to do that.

Second, it is an obvious mistake to think that cutting taxes will fix the government’s economy and allow the budget deficit to get handled. Any ordinary individual knows that in order to pay off debt, more income is needed. If enough income were made in the first place, of course, there would be no need to take on debt. Debt is simply a function of spending money you don’t have.

Since the government produces no income of their own and they just take it from us taxpayers, then if they take less income from us, they will have to borrow more money to fund all of their projects and that means a BIGGER budget deficit.

Smart money management requires working both ends; consistently raising gross income while cutting unnecessary spending to live within your budget. In all the years I have been around, I have never seen the US government demonstrate their ability to do this simple money management survival action.

What is the price of attaining financial freedom? It really is very simple. Make a ton of money, spend less than you make, don’t contract for any debt you cannot immediately pay with cash, and set money aside for the future survival of the organization.

Wednesday, September 17th, is Constitution Day – a day specifically designated by an act of Congress when Americans are supposed to honor the remarkable document that created our system of government. The date was chosen because the Constitution was approved at the original Constitutional Convention on September 17, 1787. How well do you know your Constitution? How well do Mr. Obama and Mr. McCain know our Constitution? Perhaps we should ask them about this by insisting they tell us HOW they intend to make all of these new changes which require new laws be passed.

Today, Wednesday, September 17th, is Constitution Day – a day specifically designated by an act of Congress when Americans are supposed to honor the remarkable document that created our system of government.

The date was chosen because the Constitution was approved at the original Constitutional Convention on September 17, 1787. The act that created Constitution Day mandates that all publicly funded educational institutions provide educational programming on the history of the American Constitution on that day.

Let’s see how well the schools have done their job. Ask a recent high school or college graduate to take the following brief quiz. I would be interested to hear how many of the 25 questions he or she answers correctly. And be sure to take the quiz yourself, too. Even if you score 100%, it’s good to be reminded of some of the fundamental principles that our country was founded on.

1. Has the Constitution always guided our country?

1. No. Originally the nation functioned under the Continental Congress and the Articles of Confederation. Eleven years after the Declaration of Independence, the Constitution was written, agreed to, and sent to the states for ratification. When ratified by nine states (as the document itself prescribed), the Constitution was declared to be the new governmental system. That occurred on September 13, 1788. The new government was ordered to be convened on March 4, 1789.

2. What are the three branches of government named in the Constitution?

2. Legislative, Executive and Judicial.

3. Does the Constitution allow the Supreme Court to make law?

3. No. The very first sentence in the Constitution states: “All legislative powers herein granted shall be vested in a Congress of the United States….” Any Supreme Court decision is the law of the case that binds only the plaintiff and the defendant. The meaning of the word “all” has not been changed.

4. Does the Constitution empower the President to make law?

4. No. Executive Orders issued by the President that bind the entire nation are illicit because, as noted above, “All legislative powers” are possessed by Congress. An Executive Order that binds only the employees of the federal government (such as granting a holiday) is proper because the President should be considered to be the holder of power much like that possessed by the CEO of a company. But the entire nation is not in the employ of the President. The President does have a role in lawmaking with his possession of a veto. He can veto a measure approved by Congress (which can be overturned by a two-thirds vote in each house of Congress), or simply allow it to become law by doing nothing within 10 days, “Sundays excepted.”

5. Does the Constitution give the federal government any power in the field of education?

5. No. The Constitution contains no mention of any power “herein granted” in the field of education.

6. Where in the Constitution is there authorization to dispense foreign aid?

6. No such authorization appears in the Constitution.

7. Does the Constitution mandate a minimum age for a Senator?

7. Yes. To be a senator, one must be 30 years of age. He must also be nine years a citizen of the United States and an inhabitant of the state he will serve as a senator.

8. What are the Constitutional requirements for a person to be President?

8. A President must be a natural-born citizen (not an immigrant who became a citizen), must be 35 years of age, and must have lived in the United States at least 14 years.

9. Did the Constitution give the federal government power to create a bank?

9. No. Congress was granted power to “coin money,” meaning it was to have power to create a mint where precious metal could be stamped into coinage of fixed size, weight and purity. There is no constitutional authority for the federal government to have created the Federal Reserve.

10. Can the provisions of a treaty supersede the Constitution?

10. Absolutely not. Thomas Jefferson responded to those who consider treaty-making power to be “boundless” by stating, “If it is, then we have no Constitution.”

11. Does the Constitution allow a President to take the nation into war?

11. It does not. The sole power to declare the nation at war is possessed by Congress. Congress last used this power at the beginning of World War II when war was declared on Japan after the attack on Pearl Harbor. (Germany declared war on the U.S. the next day.) A congressional vote to authorize the President to enforce UN Security Council resolutions should never be considered a substitute for a declaration of war.

12. Can you name any of the four crimes mentioned in the Constitution?

12. The four crimes mentioned are: Treason, bribery, piracy and counterfeiting.

13. Should the Bill of Rights be considered part of the original Constitution?

13. Many do hold that view because if the promise to add a Bill of Rights had not been made during the ratification process, some states would not have ratified the Constitution.

14. According to the Constitution, how can a President and other national officers be removed from office?

14. The President and other high officers of the federal government can be impeached by a majority in the House and tried by the Senate. Impeachment does not constitute removal; it should be considered the equivalent of an indictment that must be followed by a trial. Two-thirds of the senators “present” must approve removal at the subsequent trial to effect removal.

15. What authority does the Constitution give to the Vice President?

15. The Vice President stands ready to take the office of President if a president shall die or become incapacitated (as defined in the 25th Amendment). He is also the President of the Senate and has the power to break a tie vote should one occur.

16. How many amendments have been added to the Constitution?

16. There are 27. The first ten (the Bill of Rights) can be considered part of the original Constitution. Amendment 18 was repealed by Amendment 21. This means that, in 220 years, only 15 other amendments have been added. The process was deliberately made difficult to keep anything dangerous or silly from being added to the Constitution in the heat of passion.

17. How is an amendment added to the Constitution?

17. Congress can propose an amendment when two-thirds of both houses of Congress vote to do so. Any proposed amendment must then be ratified by the legislature or a convention in three-quarters of the states. Amendments can also be proposed by a federal constitutional convention called by two-thirds of the states. Any amendment arising from a constitutional convention must also be ratified by the legislature or a convention in three-quarters of the states.

18. Does the Constitution say anything about illegal immigration?

18. Not directly. But Article IV, Section 4 assigns to the federal government the duty “to protect each of them [the states] from invasion.” It does not specify that the invasion must be military. When 20 million enter our nation illegally, it is an invasion that should be repelled by the federal government.

19. What is the process mentioned in the Constitution for adding new states to the union?

19. By a majority vote in each House of Congress, a new state can be added to the union. This was done twice in 1958 to welcome Alaska and Hawaii as the 49th and 50th states.

20. Is the term of a President limited by the Constitution?

20. Yes. In 1951, Amendment 22 was added to the Constitution to limit any president to two terms. The only president who served longer than two terms was Franklin Delano Roosevelt, who held office during a fourth four-year term. He died in April 1945 shortly after beginning his 13th year in office.

21. Which part of the federal government holds “the power of the purse”?

21. The House of Representatives. Article I, Section 7 states: “All bills for raising revenue shall originate in the House of Representatives….” If a majority in the House (218 of its 435 members) refuses to originate a bill to raise revenue for any particular purpose, no funds can be raised for that purpose.

22. Does the Constitution provide a method for expelling a member of Congress?

22. Two-thirds of each house has the authority to expel any of its members for cause even though the member has been elected by voters.

23. What does the Constitution say about financing an army and a navy?

23. Congress can raise an army but “no appropriation of money” to fund it shall be for longer than two years. And Congress can provide for a navy without that same restriction regarding funding. Why? The men who wrote the Constitution feared the possibility that a standing army housed within the nation might arise and seek to take power. But they did not fear that a navy would try to do so, because a navy and its weaponry did not reside within the nation, only at sea or at coastal seaports.

24. How many times is the word “democracy” mentioned in the Constitution?

24. The word “democracy” does not appear in the Constitution. Our nation is a Constitutional Republic, not a Democracy. The Founders feared Democracy (unrestricted rule by majority) and favored a Republic (rule of law where the law limits the government). James Madison wrote: “…. Democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths.”

25. Does the Bill of Rights grant the people free speech, freedom of the press, the right to possess a weapon, etc?

25. No. The Declaration of Independence, which provides the philosophical base of our nation, states very clearly that our rights are granted to us by our “Creator.” The various rights noted in the Bill of Rights were not granted by government. The purpose of the Bill of Rights is to prevent the federal government from suspending any of those God-given rights, including the right to possess a weapon. Those who claim “Second Amendment rights,” for instance, make a big mistake with such a statement. If the right is granted by the Second Amendment, meaning by government, it can be taken away by government. If the right is granted by God, only He can take it away.

It wasn’t as easy as you thought it would be, was it? I wonder how well the President and the members of the Congress would score on this quiz, both Democrats and Republicans alike.

What would this country be like if the Constitution were fully and honestly enforced today? Would the US Economy be suffering from the current meltdown, or would the US be at war? Would better money management principles be in use when spending our income tax dollars? I hope some day we’ll come a lot closer to finding out than we are today.

RECOMMENDED READING: This recommendation is not meant to imply you are a dummy. This book just avoids getting overwhelmed by the difficult, scholarly academic language that tends to put you to sleep, or into a tailspin, or diving into a dictionary every 3 seconds.

Constitution For Dummies

U.S. Constitution For Dummies

Money Management Solutions: Dental Practice Case Study
Financial and money management expert Sandra Simmons describes how she was able to assist a dentist to handle debt and put him on the road to wealth and financial freedom.

Financial Difficulty: How do I fix my declining profitability and rising debt?

A dental practice I worked with was actually doing well, but expenses were out pacing income on a business level as well as the personal level for the practice owner. With almost $3 million per year in revenues and $1.5 million in debt the practice was just keeping its nose above water.

The challenge was to raise revenue, cut expenses and pay down debt at a rapid pace, while reducing the practice owner’s personal tax liability from 40% to a lower level.

Money Management Strategy #1: Cutting Expenses

The first action was to create a budget in the Money Management Solutions program to find out what it was costing to run the practice on a weekly basis, and where expenses could be cut.

Once an evaluation was done, the big culprit in rising costs turned out to be the dental supplies. There was no formal ordering procedure, and staff were shopping the catalogs and ordering whatever they wanted. To get this under control, a two-pronged plan was developed.

The first action was to institute new ordering policy. A self-carbon internal requisition form was designed for staff to request supplies be ordered. All requisitions are routed to the owner’s wife for review against on-hand inventory and other requests. The carbon copy is sent back to the staff member requesting the supplies with a notation of whether the request has been approved, approved with modifications, or disapproved. Ordering is now handled by one person rather than everyone ordering.

Second, a complete inventory of supplies was ordered, and excess inventory found tucked away in drawers and cabinets was scheduled to be returned for credit. This alone saved a substantial amount of cash.

Money Management Strategy #2: Raising Revenue

An income planning drill was done to identify areas of the practice that were non-viable, discover what services were profitable and easy to deliver, and discuss what new products or services could be added to raise income profitably.

The dental supplies were examined again to find out if the suppliers had raised their prices. Several vendors had increased prices and the retails needed to be adjusted in the dental practice.

Next, to address the 8 – 12% annual increase in the cost of doing business, the services were reviewed to see where prices could be raised without causing undue upset with patients. It was found that prices had not been raised on some items for over a year. Several services were raised immediately and yet were still competitive in the market. Lost income from keeping retail prices stable is a common mistake business owners make. Every consumer knows that the cost of living and doing business goes up each year. They are rarely surprised by price increases.

The Doctor/Owner was scheduled to get trained on a modern procedure that he had been wanting to learn for quite some time. The new procedure was determined to be “where dentistry is headed in the future” so the modest training cost could quickly be recovered within a very short time after introducing the new service in the practice.

The staff bonus system was based on revenues that were too low for the practice to be viable. The bonus system was revamped with a new, higher “break even” target set to qualify for bonuses. In addition, a bonus game was added whereby all staff and their spouses could play to win a group trip of their choice.

The promotional activities were evaluated to determine whether they were producing a good return on investment and where costs could be cut while improving response. Changes that were made included adding a monthly email newsletter to all patients. Here is what the practice reported after the first newsletter went out. “I had to send you our first e-mail newsletter. We already have gotten responses!”

Money Management Strategy #3: Reducing Debt & Implementing Long-Term Savings

Using the Money Management Solutions software, the weekly allocation of income included percentages to reduce debt, pay regular expenses on time, promote the practice and set-aside funds for a long-term retirement savings plan.

The increase in income from cost cutting measures, promotional activities and weekly income planning was immediate and profitability was on the rise. A mere 3 weeks after implementing the Money Management Solutions program, here is what the practice owner had to say, “Thanks for ALL the tips. We are putting things in place and already seeing results!”

Money Management Strategy #4: Setting the Course for the Future

In a few short weeks the practice was turning around and headed in the right direction. The regular weekly planning using the Money Management Solutions software maintained tight controls and the practice owner could clearly see that this was painlessly helping the practice stay on course toward a bright financial future.

The key to the success of the plan was the practice owner’s decision to fully embrace the Money Management Solutions program and keep the discipline in. Once that decision was made, the rest was simple.

Statistical graphs are being charted weekly and the decrease in debt and increase in cash reserves are a validation that the plan is working. Continuation of the actions taken to keep a tight control on costs, raise income and pay off debt is handled in less than an hour each week using the Money Management Solutions software, and the practice owner spends the rest of the week with his attention on treating his patients. He is sleeping well at night, no longer worries about money and is having fun in his practice again.

My estimate of how long it will take until the practice is free of the $1.5 million debt…14 months, provided the Money Management Solutions program discipline is kept in and used as intended.

You can speed things up considerably by using the tips in Dr. Brian’s new book Breaking The Profit Barrier – The Healthcare Practitioner’s Guide so check out the book!

If you would like a money management consultation regarding your dental practice or business contact Sandra Simmons at 727-448-1011 or email her at info@moneymgmtsolutions.com .