Managing Personal Finances Like a Business

We all have a duty of creating value in our lives, financially and otherwise, and when managing personal finances is our business to make thrive or drive to ruin. Not only is managing our personal finances our business, but the secret is to treat our personal finance decisions as a business, the business of ourselves.
Ancient cultural wisdom has passed on this secret of personal finance for countless generations yet many forget its lessons.

Life can be looked at in a way that will make managing your money and your finances easy with this understanding. From birth to passing, you are in business for yourself, the business of you. How you choose to run your business is up to you, but the principles of a successful business will lead to a successful life, both financially with your money and emotionally, let me explain.

A successful business is all about service to your fellow human beings, and providing value to their lives. If you seek to provide as much value to as many human beings in your life, you are sure to be a success, and customers and wealth will flock to your door. So how does this apply to managing personal finances successfully you might ask?

When managing personal finances like a business, it is with the understanding that you are in business for yourself. Your personal finance business is of the utmost importance, and management will lead to additional opportunities and much success in life. Make sure that treat your personal finance business with the importance they deserve as proper managing of said finances will have ramifications that reverberate through all the aspects of your life.

When managing personal finances it is important to search for opportunities to be of greater service and value in the relationships you build. But also to do so with an eye towards avoiding decisions that would lead to bankrupting the business of your finances. Managing your personal finances will give you additional opportunities to help and build wealth for the people around you. It is your duty to grow your personal finance opportunities with sound decision making and investments to grow your ability to help.

A business is always looking for opportunity to expand and to grow, and this principle should be applied towards managing your personal finances as well. Seek greater income opportunities by becoming more integral at your job, or with another company. Develop relationships with the people you meet and discover how your skills can help them. Keep a keen eye towards the growth of your finances. And managing your personal finance business also means watching for opportunities to cut costs or expenses that are unnecessary.

Invest in yourself to develop greater skill sets, position yourself for your future. My point, is managing personal finances like a business is about seizing control of your destiny, both with your finances and your life. Imitate the great business leaders from and attack your future with vigor and enthusiasm. Managing your finances in this way, with boldness, and a belief in their importance can have astounding results. Lead your money with boldness, and like an army your personal finances are sure to follow

Seller Financing – 8 Types of Seller Financing

Seller financing is extremely powerful because the buyer and the seller have control over all the terms of the transaction. That means that there are virtually unlimited applications for seller financing. However, all of the options for seller financing fall into just a 2 major categories: financing after the closing and financing before the closing.

The following 4 types of financing occur after the closing:

1. Free and Clear Financing – When a seller owns a property “free and clear” there are no liens or encumbrances on the property. In this situation the seller and the buyer are free to make any terms they want to in order to make a deal successful.

2. Equity Only Financing – This type of financing means that the seller only finances their equity in a property. The buyer is responsible for getting new financing to pay-off all of the seller’s encumbrances and liens. The seller is then free to finance the equity in the property.

3.Wrap Financing – This is also known as “subject to” or “blanket” financing. In this situation the buyer takes the property “subject to” the existing mortgage. The buyer is responsible for making mortgage payments to the seller and the seller is responsible for making mortgage payments to the original lender.

4.Combo Seller Financing – This type of financing is a combination of the financing options #2 & #3. The buyer can “wrap” the underlying mortgage and finance the seller’s equity.

The next 4 types of seller financing occur before the closing:

5.Purchase Option – Any time the buyer gives money to the seller (option payment) for the right to purchase the property at a given price (option price) and within a given timeframe (option period) the buyer has a “purchase option”. This is a form of seller financing because the seller still is responsible for the property and any payments until the buyer purchases the property (exercises their option to purchase) or the option expires.

6.Extended Closing – An extended closing is similar to a purchase option except that the extended closing is done with a Real Estate Purchase Contract (REPC). In the extended close the closing deadline is extended or put into the future significantly further than a typical real estate purchase.

7.Open-ended Closing -The open-ended close is also done with the REPC except the closing deadline is tied to a future event (such as the completion of an addition or remodel). The closing only occurs after the future event has occurred or has been completed.

8.Seller Partnerships – In this situation the seller may sell the property or may retain ownership. In either case, the seller contributes the property (and possibly some capital) as their contribution. The buyer would contribute the work and knowledge (and possibly some capital) to create or enhance the property value. The property would then be refinanced by the buyer or sold to a third party. The seller would get his equity and capital contribution plus an agreed partnership split of the additional profits on the transaction.

The great thing about these 8 types of seller financing is that every option can be used to benefit both the buyer and the seller. Using these seller financing options a seller can actually get a buyer to come in and improve their property, do all the fix-up and repair work at the buyer’s expense, and the buyer is excited about doing the work! I’ll explain how this can be in my next article…

Khayyam Jones is a real estate investor and Realtor in the State of Utah. He specializes in distressed property investments including fixer-uppers, foreclosure/short sales, and small infill development

Financing Your New Look

So you’re considering having some cosmetic surgery done, but your insurance won’t cover it and you don’t have the money to pay for it up front. Believe it or not, there is a way to finance that tummy tuck or eye lift.

What to Consider:

The Cost

Cosmetic surgery is expensive. Procedures cost anywhere from $500-$25,000 depending on the type of procedure being performed. Financing your surgery will only add more to that cost due to interest rates.

As with any type of financing, your interest rate will vary based on your credit history, selected loan term and the loan amount. Available loan terms may include 12, 24, 36 and 48 months or a revolving credit line depending on your credit background. Keep in mind: If it sounds too good to be true, it probably is. Be skeptical of financing companies offering 1% rates, because there is usually a hidden cost behind these offers.

Also keep in mind that you may need to come up with a down payment in order to finance your surgery. Down payment requirements are determined based on your credit history and your health care providers requirements, if any. If you have average or above average credit, you may not be required to put any money down.

As with any type of financing, whether it be a car, a home, or even cosmetic surgery, you should take into account what your current financial situation looks like and determine whether or not you can afford a regular monthly payment for the next 24, 36, 48 or 60 months.

If you have not already done so, figure out your monthly income subtracted by your bills, don’t forget to include miscellaneous items such as groceries, toiletries, gas, household products, pet food, etc. After you have created a monthly budget, you can now determine whether or not you can afford another $100-$200 monthly payment.

The Procedure

Before you begin to get all excited about the prospect of financing your new look, it’s important to understand why you want to have this kind of procedure done. Make sure your expectations are realistic and that you are doing this because you believe there are no other options. Consider both the pros and cons of cosmetic surgery and weigh your other options.

A good rule of thumb for financing cosmetic surgery is to finance only major surgical procedures. If you’re considering Botox, for instance, the prices are reasonable enough, but if you’re financing the injection(s), it will cost you more than it’s worth.

You should also keep in mind that most types of cosmetic surgery need to be maintained on a regular basis, and fighting the aging process completely is futile.

Finding a Surgeon

Although a cosmetic financing company can refer you to a surgeon, it’s best to find one before you contact a financing company. Dr. Steve Fallek, a cosmetic and reconstructive plastic surgeon in New York and Englewood, NJ suggests that a financing company is not going to be able to give you the best plastic surgeon.

You want to go to a board-certified cosmetic surgeon who is reputable, honest and who hopefully you’ve gotten the name from someone who has had plastic surgery from that person. Fallek says patients should ask their surgeon to recommend a finance company.

Financing Companies

Before you chose a financing company, make sure they are reputable. They should have a good track record in financing health care procedures and should work with a network of doctors.

If you have found a surgeon to do your procedure, you may also ask if he/she has financing available. The terms of the financing should be clearly outlined in writing before you apply for any financing, and you should never pay a broker fee.

Most surgeons use the same financing companies, so don’t waste your time looking for surgeons who may have lower rates. Seeing different surgeons takes up time and money.

You may also want to consider using your credit card if the interest rate is lower. Some people also borrow from family or even take out a home equity loan.

The Decision is Made

If you have now decided that you can afford to finance your cosmetic surgery, research your procedure online to find out the benefits and risks. You may also want to discuss your surgery options with your primary physician who may also provide you with a list of surgeons and payment options