41 Money Management Tips I’ve Learned
Posted by Marty Dickinson on Mar 15, 2011
When I started helping people with their websites and Internet marketing strategy back in 1996, I immediately started getting occasional emails from designers and programmers wanting to know how I could possibly charge more than $10/hour for my services.
A few years later when I formed the official company, HereNextYear, Inc., I’d get a few emails a month asking, “How can you possibly be in business doing this Internet stuff as long as you have been?”
I still get those questions occasionally, but it’s interesting that more and more people are emailing me now with money management and investing related questions these days.
“Marty, do you suggest I get a ROTH IRA?”
“Marty, did you start your business with a bank loan? If so, how did you get one?”
“Marty, should I get one credit card for my business and keep increasing my limit or get more cards?”
ACK!!!! I am no certified financial planner!
Want to know a secret? I’m much better at answering questions about “selling” than I am about money.
I love to make money online, and love to share what I’ve learned with people about Internet marketing (Checkout my Web Marketing Book discussion page on facebook and click the “Like” button and then post any Internet marketing question on my wall and I will reply) but admittedly, I can’t say I’m the best money manager after I get it.
As my business has grown over the past 15 years, half of me has become more interested in becoming a better money manager and the other half has been forced into improving my money management skills.
Managing money and investing it are two things I rely on other people to help me make the right decisions. And, as you’ll see in one of the points below, is that “wealthy families ALWAYS have someone they trust to help them make financial decisions.”
So, I have three objectives for this blog post where I will:
1. Give you a slew of one-liners that I’ve learned about credit, getting business funding, and even investing in my kid’s and grandkid’s futures.
2. Introduce you to three people I completely and whole-heartedly trust with giving me suggestions about money and what to do with it.
3. Provide you with resources for you to consider that are offered by each of the three guys I’m introducing to you.
Please don’t take these points as some kind of promise that you’re going to make a million bucks next year because of it. This post isn’t about that. I’m no certified financial planner. I’m not offering you any advice that is so specific that you can go “do it” and make or lose money as a result.
I’m not trying to lure you into my financial practice either…because, haa, I don’t have one! Have I said it enough yet that I’m noooo financial planner???
Each of the people I’m introducing to you…well, yes, they each offer specific resources for you to consider and I’m going to give you links to those resources. But, I’m giving you those resources because you need to include them in your business and life plan. Simple as that.
One of those things where you should just “do it” and thank me later….
Let’s get started…
I’d like to introduce you to Darrell Hornbacher.
He started a company called Midas Financial more than 5 years ago and he’s known by literally everyone in my circle as the go-to guy for advice on credit and business funding.
He asked me a few years ago to be on his team to create a national conference to educate people about business funding + marketing.
It was so successful, we did two that year!
When the subject of credit or business loans comes up when I’m talking with a client, I practically demand they call Darrell immediately if they don’t already know about him.
A Few Money Management Tips I’ve Learned from Darrell Over the Years
Money Management Topic I: CREDIT
1. High credit card balances negatively affect credit scores more than anything. I’ve even heard of people taking on part-time jobs just to pay off their credit cards because they know how important it is to get those babies paid off!
2. Be careful of home equity lines of credit as they can destroy your credit score.
3. Paying off old “delinquent” debt actually hurts your credit score.
4. Having too much revolving debt is bad for your credit even if you pay all your bills on time.
5. Pulling your own credit report does NOT hurt your score.
6. If you have bad credit, you simply have to get someone to help you re-build your credit and improve your credit with absolute strategy and timing. Feel free to call Darrell and ask him about the credit re-building process and tell him Marty sent you. Or, you can go right to the tool that Darrell sends all his clients to Credit Builders
This resource, by the way, has helped 25,000 clients repair their credit. They have NEVER (and never is a big word) had a Better Business Bureau complaint. It’s also the ONLY credit repair company to have an A rating with the BBB! There’s even a “no-risk” promise.
So, sure, if you give their program a whirl, I’m going to get a little commission from it. But don’t let that deter your action. I’m simply referring a tool to you that was referred to me. And, that’s just smart networking.
7. Closing old unused accounts will hurt your credit score because it takes away from your history. In fact, you could get 5 points knocked off your score because your history is gone.
8. Making only minimum payments can hurt your score.
9. Delayed payments could impact your ability to get more credit, not because you’re a delinquent payer, but because you have a reputation for waiting until the last minute to pay.
10. Every time someone pulls your credit report (like a dealership if you’re buying a car), your credit score reduces by 3 points. But, if you have multiple credit inquiries within a 10-business-day period, you’ll only lose 3-5 points ONCE to cover all the reports made during that time frame. So, if you’re going to shop around for a car, be sure to do it with a 10-day period!
What should you do now that you know what Darrell has taught me about credit? I suggest you start improving your own credit with the credit building system he recommends to his own clients.
Note that if you do sign-up for this particular credit building program, I’m going to get a little cut from it. Let me know if you do sign-up and I’ll buy you a cup of coffee and a muffin! But, it’s something I have to let you know about…but there’s more!
Once you have improved credit, then and only then can you start thinking about business funding. So, here are…
Ten More Crucial Money Management Tips for Getting Business Funding
Money Management Topic II: CREDIT
11. Applying for numerous credit cards over an extended period of time is a big no no to your credit score. You can get multiple credit cards…there’s just a method to it so that your credit doesn’t suffer in the process. This is the ONLY website we trust where Darrell and I send our clients to get business credit cards.
12. The loan business IS coming back. Loan makers ARE opening up. All politics aside, the stimulus bill is actually working, so this IS a good time to get a loan.
13. “Well prepared” consumers are going to get more money in their loan attempts, not just the well qualified business owners.
14. Unsecured lines of credit have come back in the past two months, but they’re not giving as much money as they did before. And, they’re now checking business credit scores where this was not nearly as common practice as before.
15. Business credit, in the near future, will be as important as your personal credit. So, be careful what you use those company credit cards for and how fast you pay them off.
16. People are being denied business loans because they don’t even have a “business credit score” because they’re running their business using personal credit credit cards.
Just a side note here: You can get a $150K loan without producing a business plan, without using your social security number, all under your EIN number. This process was invented by Donald Trump and is why his credit has stayed stellar through all the bankruptcies…because of his business credit. This is the same method I used to get $105K available for my business in about 3 weeks.
17. Choose your business wisely and think ahead to the days when you will be seeking credit and loans. Many lenders have a diverse reaction to different types of businesses.
18. Business money is available to all types of business in many different fashions beyond the traditional “bank loan” you’ve always heard about. You just have to be introduced to the right person that can help you identify which funding type is right for you.
19. The worst way to attempt to get a loan is to go into a bank by yourself without a professional at your side to represent your interests and talk the talk of the lender.
So, Darrell’s thing, obviously, is to help you get the money you need for your business so that you can have the proper resources to grow your business.
What happens when you have the money from your business growth?
I have to admit that I’ve never been much of a fan of IRA’s or the 401(k) plan. After watching so many horror stories over the past two years of people having to cash-in, or their planned retirement values have reduced by 75% or even more on some CNN reports, I’m even more skeptical.
But, let’s get beyond the discussion of what you would expect to hear from a financial planner…because, remember? I’m NOT a certified financial planner! So, I’m not going to give you any financial strategy advice here. I’n not going to tell you what stocks to pick or what company to invest in.
But, I am going to introduce you to Jim Lorigo.
Jim Lorigo is the only person I’ve ever met that is certified in every state of the U.S. to sell annuities.
That means a couple of things. He didn’t start in this business just yesterday. And, he has one serious devotion to the industry if he went through the brain damage to get certified in every state!
Anyway, Jim has two main missions in life. One is to help me keep more of my money instead of paying it all in taxes. The second is to help me pass on what I don’t spend to my family…and that should be tax free too.
So, for the next few moments, clear your mind of everything you might have heard about long-term money.
Money Management Tips I’ve Learned from Jim
Money Management Topic III: INVESTING
20. There’s a myth behind annuities where most people think they are risky and can lose money. Since annuities are a contract between you and some insurance company out there, well, I guess there could be risk if you go with an insurance company that has a low or bad rating. But if you know the right people (like Jim) who know the right annuities that are with the right insurance companies, it’s the RISK that goes out the window and not your cash.
21. There are several different types of annuities to consider and it makes a big difference whether you pick the right one or not.
22. I knew annuities are tax deferred but what I didn’t realize until recently is that there are ways to pass that money onto your family…tax free!
23. IRA’s are taxable but, like annuities, there are strategies that allow tax free money to be passed on to your family.
24. I’ve always known about the ROTH IRA but what I didn’t realize until I dug deeper was that ALL gains are tax free with the ROTH.
25. CD’s are still a viable option afterall, but only in situations where you are satisfied with low returns.
26. It’s actually pretty easy to find the highest CD rate. All you have to do is go to BankRate.com
27. You must learn how to protect your assets because we live in a country that is SUE Happy!
28. The average person needs $70,000 each YEAR to handle their long term care costs. Again, that’s AVERAGE. Do you have a spare $100,000 or 2 lying around in case something happens? I think we all need to be thinking bigger as to how much money we really need to make today and over the next few years.
29. Whatever age we are now, we should all be planning for a “lifetime income.” Annuities are the only product that can guarantee a lifetime income.
30. Building a completely “tax free” wealth is not only possible, but lots of people are doing it right now by learning how the wealthy pass on money to their families…tax free.
31. The most important tip of wealthy families I’ve learned is that they all have professionals to guide them in financial planning.
32. I shouldn’t just be thinking of leaving money for my kids but leaving money specifically for my grand children’s education by setting aside assets that I do NOT need for income.
33. Probate is best described as a legal process that takes place after someone dies.This court supervised legal process includes determining the validity of your will, gathering of your assets, paying your debts and taxes. From what I hear, probate is a long and time sucking process. Apparently there are steps you can take to reduce or even totally eliminate probate…depending on your specific situation of course. Now, I don’t need to know what those steps are today, but I know the person to go to when I do need them. Do you have that someone in your hip pocket?
34. A living trust is a legal entity that is able to own property and other assets. The trust is a legal agreement defining how assets are going to be managed and distributed. Spend the time now to get living trusts for your parents and you and your significant others because things get a lot more difficult after a person dies.
35. I’m a ways away from being 62, but I thought once someone turns that age, they immediately sign-up to get Social Security checks. I’ve learned there are a whole slew of conditions for when to start getting your Social Security. Again, know the right person to go to when it’s time to ask the questions.
Jim Lorigo is the guy to ask.
I suggest you go to LeaveMoreLegacy.com where you can sign-up to get a free mini-book that gives a better overview of his methods. And, in the event that you pick up the phone to call him for a consult, know in advance that by law I cannot receive any commission from any services sales he makes.
And, that brings me to my third introduction. The man’s name is Ned Snead. He’s 82 and lives in Texas. He told me last week that he was once considered one of the best computer programmers in the region…and that was before we all had computers on our desks!
Ned is a fascinating person. He’s currently a partner of a $40MM/year business. He sits on the board of a major railroad. He’s an inventor, a father, a grandfather, a writer, occasional speaker, and even started a Foundation. He’s just one of those guys we can all aspire to be like and live like.
You just really need to know Ned.
I asked Ned to give me…
…A Few Choice Money Management Tips from his e-book called
Prosperity-21, currently selling through Amazon’s Kindle Store on Amazon for Kindle.
Money Management Topic IV: MONEY FOR LIFE
Here were his responses:
36. If you start with a hundred of Uncle Sam’s dollars, you could lose $99.75 in four
hours at a slot machine; lose $89.50 in a month on the lottery; lose $50.00 in 12 years just to inflation.
Meaning: By not planning and allowing inflation to take its toll, you are gambling just the same as you would be in Vegas.
37. Spend less each month than you collect. Then, invest your savings where you can get it back any time you ask, where it pays more interest than inflation, where it is not affected by government’s silly policies.
Meaning: Don’t let your investment strategy be at the mercy of things you can’t control.
38. Many of the things we own actually end up owning us.
Meaning: If you overspend, you are always at the mercy of the man who is collecting on the bills.
39. You can buy a car just by signing your name, but to fill it with gas you need a working credit card, or as a last resort, some of Uncle Sam’s printed money.
Meaning: A fancy sports car is of little value to you if you don’t have the cash flow to keep it
running. Well, I guess car collectors might take issue with that statement. But, you get the idea.
40. Learn to do two things that pay well and cannot be done better or cheaper overseas.
Meaning: You will always be in high demand if you have unique skills. Continue to educate yourself.
41. A new baby can cost $200,000 in twenty years.
Meaning: Maybe we should sell our kids! Naa, just kidding. Maybe just think it through before deciding on that “new addition.”
For more great insights from someone who has truly seen it all, and lives the lifestyle we hope to have when we’re in our 80′s and beyond, checkout Ned’s book on Amazon’s Kindle Store called Prosperity-21.
Note, I do not get a commission from Amazon by recommending this book…since they stopped paying their Colorado Associates in mid-2010 (Still carrying a grudge over that one).
Money Management Tips Summary….
I’ve just introduced you to three of the most influential money masters in my circle of business. To re-cap,
If your credit needs some work, go to Credit Builders.
If you need business credit cards, go to Biz Credit Card Store.
If you want to pass on the money you have to family after you’re gone, go here:
LeaveMoreLegacy.com
And, for just $5, go checkout Prosperity-21.
What one liner money tips and facts can you add to this discussion?
Problems Sending Email?
Posted by Marty Dickinson on Mar 8, 2011
I’m pretty sure the most complex function on the Internet is the process of sending email. It seems like such a simple thing. But, if you’re experiencing problems sending email, you know first-hand how all of a sudden this seemingly easy function can become extremely difficult to handle. I’m no email expert, but I’ve certainly had my share of problems sending email. And, that’s where the problem always seems to be…in the “sending” of the email rather than the receiving side of things.
If you’ve proven emails you send are not getting to their recipient, try these 3 steps to make sure your bases are covered.
1. Setup reverse DNS on the IP your domain name runs off of. Don’t worry, I don’t have much of a clue what this means either. Just call your hosting company and have them check on if this has been done.
2. Set the SPF record. On my server, I would login to my WHM account to change the setting.
3. Make sure you’re not on any blacklists by performing a quick (and free) blacklist search.
Free Online Blacklist Checker
Posted by Marty Dickinson on Mar 4, 2011
With spam, spoofing, and “sporting” (where your opt-in list ‘subscribers’ re’port’ you as a spammer by clicking a spam link either intentionally or non-intentionally), getting your IP address and/or your domain name blacklisted is easier than ever to achieve these days.
And, no, getting on email blacklists is definitely not something you want to have happen! But, if one day you find that your email system is in tact just fine and suddenly no one is receiving your emails, you have to start asking questions as to why you’re having problems sending email. One of the first questions you can eliminate before contacting your email hosting company is to check your IP address and/or domain name with various blacklists.
Today, I discovered today a free online blacklist checker tool as shown in the picture. I’ve blackened out private data, but you can see where the verification happens once I type in a domain name or IP address.
Until now, checking checking for blacklist status has always been kind of a pain. I suppose these kinds of tools have been out there for a while, but no one seems to be really promoting them in my circle.
Today, I discovered today a free online blacklist checker tool as shown in the picture. I’ve blackened out private data, but you can see where the verification happens once I type in a domain name or IP address.
Let me know how it works for ya.
Anyone willing to share their blacklist story here and tell us what you did about the problem?
