Happy New Year's Eve! Well, it's almost time to turn those calendars again, so I thought it fitting to take a look back first. This is the time to reflect on our lives to be thankful for the blessings we received, and to look at what changes we can do to make our lives better.
One of the definitions of the word reflection is the production of an image by, as if by a mirror. A mirror, what a fitting place to start. When is the last time you really looked at yourself in the mirror? Do you like what you see? Are you proud of your accomplishments? Are you satisfied with your life? Do you find yourself surrounded by loved ones and many friends?
If any of those answers are not exactly what you are happy with, the place to start is with the reflection in the mirror. What can you do to make a difference in your life, or in the lives around you that you care for? Tomorrow is a new year, a new beginning. Change starts with you, no one else.
I've heard this quote several times from Mike Ditka, hall of fame coach of the Chicago Bears. "The past is history, tomorrow's a mystery, today is a gift, that's why they call it the present." Today is the day to start changing.
As water reflects a face,
so a man's heart reflects the man. Proverbs 27:19 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, December 31, 2007
Saturday, December 29, 2007
Final Report Card
Every Saturday, I've been summarizing what has gone on in the financial markets, primarily with the health of the US dollar and its correlations to other markets. Well, it has been happening just as I have laid out in my Sat. report cards. This will be the last report card for 2007, so it will be the benchmark for 2008.
Last week I mentioned that the moves of the Federal Reserve and 5 other world central banks took extraordinary steps to prop up the strength of the US dollar. But I also wondered how long the affects would last. It looks like it is not going to last too long. This week (even a short week at that due to the holidays), the US dollar index fell from 77.62 down to 76.10, a significant drop. This means that the value of the dollar fell when compared to the other major world currencies. Consequently, gold and silver both shot up in value to $839.50 per ounce and $14.81 per ounce respectively. The increase for gold was 3.4% and for silver was 3.2% in a short trading week.
In January, I expect this trend to continue and even pick up speed. Since putting 114 billion available to banks in loans has not encouraged spending, the value of the dollar will continue to plummet. This will spur on inflation. Double digit inflation for 2008 will almost be assured. The Fed will continue to reduce interest rates, but it will likely slow things down just temporarily as it has since Sept. Gold and silver and other precious metals will continue to climb in value as I mentioned on my Dec. 1st post. The target price I set for gold is $1250 and silver is $24.50 per ounce within 6 months. Those even may be low considering the perfect economic storm that is developing.
The wildcard that remains is what will happen to the price of oil. If oil continues to go up significantly in early 2008, that will accelerate things considerably. If oil inches up, it will be more gradual. The other major developments that can strengthen the economic storm will be events like the US invasion of Iran and the replacement of the US dollar with the Amero. However, I do not expect these events to happen until 2009.
Time will tell. Be prepared.
These things happened to them as examples and were written down as warnings for us, on whom the fulfillment of the ages has come. So, if you think you are standing firm, be careful that you don't fall! No temptation has seized you except what is common to man. And God is faithful; he will not let you be tempted beyond what you can bear. But when you are tempted, he will also provide a way out so that you can stand up under it. I Corinthians 10:11-13 (NIV)
In the coming weeks, I will focus on setting goals and how your credit score affects you. Stay tuned ...
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Last week I mentioned that the moves of the Federal Reserve and 5 other world central banks took extraordinary steps to prop up the strength of the US dollar. But I also wondered how long the affects would last. It looks like it is not going to last too long. This week (even a short week at that due to the holidays), the US dollar index fell from 77.62 down to 76.10, a significant drop. This means that the value of the dollar fell when compared to the other major world currencies. Consequently, gold and silver both shot up in value to $839.50 per ounce and $14.81 per ounce respectively. The increase for gold was 3.4% and for silver was 3.2% in a short trading week.
In January, I expect this trend to continue and even pick up speed. Since putting 114 billion available to banks in loans has not encouraged spending, the value of the dollar will continue to plummet. This will spur on inflation. Double digit inflation for 2008 will almost be assured. The Fed will continue to reduce interest rates, but it will likely slow things down just temporarily as it has since Sept. Gold and silver and other precious metals will continue to climb in value as I mentioned on my Dec. 1st post. The target price I set for gold is $1250 and silver is $24.50 per ounce within 6 months. Those even may be low considering the perfect economic storm that is developing.
The wildcard that remains is what will happen to the price of oil. If oil continues to go up significantly in early 2008, that will accelerate things considerably. If oil inches up, it will be more gradual. The other major developments that can strengthen the economic storm will be events like the US invasion of Iran and the replacement of the US dollar with the Amero. However, I do not expect these events to happen until 2009.
Time will tell. Be prepared.
These things happened to them as examples and were written down as warnings for us, on whom the fulfillment of the ages has come. So, if you think you are standing firm, be careful that you don't fall! No temptation has seized you except what is common to man. And God is faithful; he will not let you be tempted beyond what you can bear. But when you are tempted, he will also provide a way out so that you can stand up under it. I Corinthians 10:11-13 (NIV)
In the coming weeks, I will focus on setting goals and how your credit score affects you. Stay tuned ...
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, December 28, 2007
Seek First to Understand
This week, I've been discussing relationships as we visit with family and friends over the holidays. Understanding what constitutes a deposit or withdrawal in an emotional bank account is only the beginning. But how does one do that?
The key to understanding an individual is empathetic listening. This is so much more than hearing the words coming out of his or her mouth. First of all, as much as 90% of communication is non-verbal such as pitch, volume, tone, body language, and environment. Tone for example can be used for expressing emphasis, contrast, or emotion of the person speaking. Pitch and volume can definitely be used to show sincerity and emphasis. Body language and facial expressions speak volumes about the general meaning and context of the message.
This is why women seem to be better at empathetic listening than men. Women pay much more attention to the non verbal part of communication. Men are usually very straightforward and simple when it comes to communication. They tend to focus on the words for the meaning.
The key is to be able to understand from the other person's perspective, or "putting yourself in the other person's shoes". Once you understand how the other person perceives (sees) things, you will have the context on how to understand her message, and ultimately her needs. Once the needs of both parties are known, there can be cooperation to work together so that both sets of needs are met creating a win/win situation. When this is done, the bond of the relationship grows immensely stronger.
Showing that you care about the other person, how she thinks, what's important to her, is so very important to new relationships as it is to lifelong partners. When you do this first, to seek the understanding of the other person, the chances are greatly improved that the other person will respond in kind. Seek first to understand, then to be understood. That is what makes or breaks empathetic listening.
My mouth will speak words of wisdom;
the utterance from my heart will give understanding. Psalms 49:3 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
The key to understanding an individual is empathetic listening. This is so much more than hearing the words coming out of his or her mouth. First of all, as much as 90% of communication is non-verbal such as pitch, volume, tone, body language, and environment. Tone for example can be used for expressing emphasis, contrast, or emotion of the person speaking. Pitch and volume can definitely be used to show sincerity and emphasis. Body language and facial expressions speak volumes about the general meaning and context of the message.
This is why women seem to be better at empathetic listening than men. Women pay much more attention to the non verbal part of communication. Men are usually very straightforward and simple when it comes to communication. They tend to focus on the words for the meaning.
The key is to be able to understand from the other person's perspective, or "putting yourself in the other person's shoes". Once you understand how the other person perceives (sees) things, you will have the context on how to understand her message, and ultimately her needs. Once the needs of both parties are known, there can be cooperation to work together so that both sets of needs are met creating a win/win situation. When this is done, the bond of the relationship grows immensely stronger.
Showing that you care about the other person, how she thinks, what's important to her, is so very important to new relationships as it is to lifelong partners. When you do this first, to seek the understanding of the other person, the chances are greatly improved that the other person will respond in kind. Seek first to understand, then to be understood. That is what makes or breaks empathetic listening.
My mouth will speak words of wisdom;
the utterance from my heart will give understanding. Psalms 49:3 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Thursday, December 27, 2007
Making Deposits
Yesterday, I discussed an analogy of an emotional bank account to describe relationships. Instead of money, an emotional bank account measures the level of trust you have with another person.
Building or repairing relationships take time; there are no quick fixes. Genuine deposits have to be made on a regular basis. There are six major types of deposits.
Understanding the individual is really the key to all of the other deposits. You cannot know what constitutes a deposit with another person until you understand him or her. What you might perceive as a deposit might be considered a withdrawal by the other person because it does not meet the needs or touch his or her interests. It has to be as important to the other person as the other person is to you. For example, what do you think of a Christmas gift you receive that you don't like? You're not going to be very thankful to the person who gave it. Conversely, if it is the perfect gift, you care so much more for that person because he or she was so thoughtful.
The little kindnesses and courtesies are the 2nd type of deposits. Small slights, little forms of disrespect, and inconsiderate actions make large withdrawals. In relationships, the big and important things are the little things. The old taunting "sticks and stones ..." is one of the biggest lies ever told.
Keeping a commitment or promise is a major deposit; consequently, breaking one a major withdrawal. People tend to build their hopes and dreams around promised. Once betrayed, your future commitments will not mean much. Remember the story of the boy who cried "Wolf!" once too often.
Clarifying expectations is sometimes very necessary because conclusions and actions are based on expectations. If they are not clear, misunderstandings arise causing hurt feelings, disappointment, and withdrawals of trust. Beware of implicit or assumed expectations that are not expressed. "You didn't tell me" is a recipe for a major withdrawal. This is especially important with new relationships. First impressions tend to remain in our minds a long time.
Personal integrity generates trust. Lack of integrity can erode and undermine all other efforts to create high trust because the person then appears to be phony. Double standards also fall into this category. That person probably has ulterior motives that will serve his own interest without a genuine gain for you creating a lose/win situation. A person showing integrity walks his talk. One way to manifest integrity is to be loyal with those who are not present. In doing so, we build trust with those who are present. Integrity also means to avoid any communication that is deceptive. In this way, integrity goes beyond honesty.
There are always times when we have to make withdrawals from our emotional bank account. When this happens, we should sincerely apologize. Sincere words can even turn the withdrawal into a deposit. "I was wrong" and "I'm sorry". However, if this occurs too frequently, our apologies will not be interpreted as sincere and will count as a withdrawal. People will forgive honest mistakes, mistakes of judgment; but they are unlikely to forgive mistakes of the heart, the ill intention, or the hostile motive.
Maintaining a high emotional bank account with everyone you interact with on a regular basis will help you become a more effective person; whether you are a parent, child, manager, employee, teacher, or student. It will facilitate meaningful relationships and allow them to grow. Effective communication will be easy, allowing your needs and the needs of others to be understood, enabling cooperation to exist. Your needs will be met along with the other person's creating a win/win situation. This can be applied with one on one or as part of the interdependent actions of a whole organization. Thus, the whole is greater than the sum of its parts. Success is now shared by all.
A man who has riches without understanding
is like the beasts that perish. Psalms 49:20 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Building or repairing relationships take time; there are no quick fixes. Genuine deposits have to be made on a regular basis. There are six major types of deposits.
Understanding the individual is really the key to all of the other deposits. You cannot know what constitutes a deposit with another person until you understand him or her. What you might perceive as a deposit might be considered a withdrawal by the other person because it does not meet the needs or touch his or her interests. It has to be as important to the other person as the other person is to you. For example, what do you think of a Christmas gift you receive that you don't like? You're not going to be very thankful to the person who gave it. Conversely, if it is the perfect gift, you care so much more for that person because he or she was so thoughtful.
The little kindnesses and courtesies are the 2nd type of deposits. Small slights, little forms of disrespect, and inconsiderate actions make large withdrawals. In relationships, the big and important things are the little things. The old taunting "sticks and stones ..." is one of the biggest lies ever told.
Keeping a commitment or promise is a major deposit; consequently, breaking one a major withdrawal. People tend to build their hopes and dreams around promised. Once betrayed, your future commitments will not mean much. Remember the story of the boy who cried "Wolf!" once too often.
Clarifying expectations is sometimes very necessary because conclusions and actions are based on expectations. If they are not clear, misunderstandings arise causing hurt feelings, disappointment, and withdrawals of trust. Beware of implicit or assumed expectations that are not expressed. "You didn't tell me" is a recipe for a major withdrawal. This is especially important with new relationships. First impressions tend to remain in our minds a long time.
Personal integrity generates trust. Lack of integrity can erode and undermine all other efforts to create high trust because the person then appears to be phony. Double standards also fall into this category. That person probably has ulterior motives that will serve his own interest without a genuine gain for you creating a lose/win situation. A person showing integrity walks his talk. One way to manifest integrity is to be loyal with those who are not present. In doing so, we build trust with those who are present. Integrity also means to avoid any communication that is deceptive. In this way, integrity goes beyond honesty.
There are always times when we have to make withdrawals from our emotional bank account. When this happens, we should sincerely apologize. Sincere words can even turn the withdrawal into a deposit. "I was wrong" and "I'm sorry". However, if this occurs too frequently, our apologies will not be interpreted as sincere and will count as a withdrawal. People will forgive honest mistakes, mistakes of judgment; but they are unlikely to forgive mistakes of the heart, the ill intention, or the hostile motive.
Maintaining a high emotional bank account with everyone you interact with on a regular basis will help you become a more effective person; whether you are a parent, child, manager, employee, teacher, or student. It will facilitate meaningful relationships and allow them to grow. Effective communication will be easy, allowing your needs and the needs of others to be understood, enabling cooperation to exist. Your needs will be met along with the other person's creating a win/win situation. This can be applied with one on one or as part of the interdependent actions of a whole organization. Thus, the whole is greater than the sum of its parts. Success is now shared by all.
A man who has riches without understanding
is like the beasts that perish. Psalms 49:20 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Wednesday, December 26, 2007
Emotional Bank Account
Since the holidays are a time for spending with family and friends, I thought it appropriate to discuss personal relationships. One of the best analogies about the workings of a relationship is from Stephen R. Covey in his book 7 Habits of Highly Effective People. He compares a relationship to a emotional bank account. Except the emotional bank account measures the amount of trust we have in another person instead of money. Deposits can be made through acts of kindness, courtesy, honesty, integrity, and keeping commitments. Withdrawals are made through acts of disrespect, discourtesy, ignoring the other person, cutting the other person off when speaking, not listening to what the other person is saying, betraying trust, threatening or manipulating the other person.
It's easy to see how this could apply to relationships. If you have a large balance with someone because of repeated deposits over time, they will readily trust you. Even if you do something that would constitute a withdrawal from the emotional bank account, that would be easily overlooked and temporary in nature. You have plenty of emotional money in the account. On the other hand, if you have zero in your emotional bank account, or worse, a negative balance, you would be treated with little patience or even very harshly when encountering the other person. The communication will be marked by tension, uncertainty, posturing, backstabbing, and intended double meanings; because you have zero level of trust with the other person.
Relationships that have constant or frequent interaction require continuing deposits to remain satisfying and productive. Some people think along the lines of the axiom "what have you done for me lately?" If continuing deposits are not made, the relationship will deteriorate to one of accommodation, where both parties simply are tolerant of one another. If deposits still are made, it may deteriorate further to one of hostility, resentment, and defensiveness. The next step downward would be a relationship of open warfare.
So what deposits have you made with the people that you care about?
The man of integrity walks securely,
but he who takes crooked paths will be found out. Proverbs 10:9 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email. DeltaInspire@panama-vo.com
It's easy to see how this could apply to relationships. If you have a large balance with someone because of repeated deposits over time, they will readily trust you. Even if you do something that would constitute a withdrawal from the emotional bank account, that would be easily overlooked and temporary in nature. You have plenty of emotional money in the account. On the other hand, if you have zero in your emotional bank account, or worse, a negative balance, you would be treated with little patience or even very harshly when encountering the other person. The communication will be marked by tension, uncertainty, posturing, backstabbing, and intended double meanings; because you have zero level of trust with the other person.
Relationships that have constant or frequent interaction require continuing deposits to remain satisfying and productive. Some people think along the lines of the axiom "what have you done for me lately?" If continuing deposits are not made, the relationship will deteriorate to one of accommodation, where both parties simply are tolerant of one another. If deposits still are made, it may deteriorate further to one of hostility, resentment, and defensiveness. The next step downward would be a relationship of open warfare.
So what deposits have you made with the people that you care about?
The man of integrity walks securely,
but he who takes crooked paths will be found out. Proverbs 10:9 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email. DeltaInspire@panama-vo.com
Tuesday, December 25, 2007
A Strange Birthday Celebration - Part II
(A True Story of Christmas)
by J. E. Greenlee
Continued from yesterday ...
The great day of celebrating his birth finally arrived, and some of his people did come bringing gifts and thanking him for his goodness to them. But to his dismay, most of the citizens never came to his house at all on this day of celebration. And the gifts brought to the king by those few who came were very meager when compared with the gifts they had given to themselves.
For the most part, the people said they had been so busy with all the celebrations and personal plans that they had forgotten about the king. Several said they had thought of him, but really could not work it into their schedules or budgets to come to see him or bring a gift. A few were known to be quite put out when it was suggested that going to the king's house or remembering him with a gift was important.
Those people who did come to his house and who brought their loving gifts were were welcomed and blessed by the king. He told them again of his great love for each of them. And each received from the king a priceless gift. But when they had gone and he was alone again, the king fell to thinking of the vast numbers of his people who had forgotten and forsaken him. How could they have forgotten? Had he not loved them all? How could so many of his beloved people who had found the time and money for shopping and feasting and partying and decorating and all sorts of celebrations – how could they possibly be so thoughtless, so ungrateful or selfish? Did they not know that he, too, had feelings? Was not the purpose of the birthday celebration originally planned to honor him?
When the king was alone, pondering these questions, he felt the tears well up in his eyes. And in his loneliness, he wept. One thought brought some hope and consolation. Even though they had forgotten him, he had not forgotten them.
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 3:16 (KJV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
by J. E. Greenlee
Continued from yesterday ...
The great day of celebrating his birth finally arrived, and some of his people did come bringing gifts and thanking him for his goodness to them. But to his dismay, most of the citizens never came to his house at all on this day of celebration. And the gifts brought to the king by those few who came were very meager when compared with the gifts they had given to themselves.
For the most part, the people said they had been so busy with all the celebrations and personal plans that they had forgotten about the king. Several said they had thought of him, but really could not work it into their schedules or budgets to come to see him or bring a gift. A few were known to be quite put out when it was suggested that going to the king's house or remembering him with a gift was important.
Those people who did come to his house and who brought their loving gifts were were welcomed and blessed by the king. He told them again of his great love for each of them. And each received from the king a priceless gift. But when they had gone and he was alone again, the king fell to thinking of the vast numbers of his people who had forgotten and forsaken him. How could they have forgotten? Had he not loved them all? How could so many of his beloved people who had found the time and money for shopping and feasting and partying and decorating and all sorts of celebrations – how could they possibly be so thoughtless, so ungrateful or selfish? Did they not know that he, too, had feelings? Was not the purpose of the birthday celebration originally planned to honor him?
When the king was alone, pondering these questions, he felt the tears well up in his eyes. And in his loneliness, he wept. One thought brought some hope and consolation. Even though they had forgotten him, he had not forgotten them.
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 3:16 (KJV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, December 24, 2007
A Strange Birthday Celebration
(A True Story of Christmas)
by J. E. Greenlee
Come back tomorrow for the rest of the story ...
by J. E. Greenlee
If the following story were not true, it would surely be unbelievable. It is true, however, as you yourself will agree when you read it.
There once was a great king. His love for his people knew no limits. Although the kingdom was very large, the king knew every person by name. Everything the people of the kingdom had was a gift freely given by the loving king. So, to show their love and appreciation to the king for all he had done for them, the people decided to have a great celebration to honor his birthday. Everyone agreed it was a marvelous idea. Preparations for the celebrations were very elaborate. No expense was spared by the people. They adorned their homes with lights, decorations, and expensive ornaments. There were parties, dinners, and celebrations throughout the kingdom.
All the people brought gifts for their friends and family. Many of the gifts which the people gave each other were quite expensive, involving considerable indebtedness. In fact, the people spent more on the birthday celebration then they spent at any other time of the year.
Many who were not citizens of the kingdom, and who did not even know the king, joined in the celebration. Their celebration of the king's birth was marked by excessive drinking. Since they did not know the king, they invented a good-natured, fat fellow in a red suit. He laughed a lot, but never really said anything. But that didn't matter because they were too busy celebrating to listen anyhow.
The day set for the birthday celebration drew near. The gifts which people had brought for each other were piled high. The decorations were beautiful. Huge amounts of food were prepared in all the homes and banquet halls. The king watched eagerly during the preparation. A number of people mentioned him and spoke of what a great king he was. The king waited each day expecting at any time to hear from the people about his role in the celebration. Weeks in advance, he prepared his house to receive the many people who would be coming with their presents for him.
Come back tomorrow for the rest of the story ...
Saturday, December 22, 2007
Propping Up the Dollar
Last week on Dec. 13th, 5 major central banks allocated 114 billion to increase liquidity for the global economy due to the US sub-prime mortgage debacle. This would make it more easy for banks to obtain loans and prevent some from closing due to the bad mortgage loans. Since they did not have loan payments coming in, their reserve requirements were in danger and ultimately getting close to foreclosure themselves.
This real estate problem was causing major concerns around the world about the health of the US economy. This was weakening the dollar against all the major currencies. The Fed was more concerned with the dollar than the mortgage industry. But since they are interconnected, they had to do something and spin the news to look like they are doing something constructive. So far, the measures seem to be working in terms of propping up the beaten US dollar. The US dollar index closed at 77.62, up from 77.39 last week. It made significant gains on the major currencies in the world this week, but time will tell on how long it lasts.
The Federal Reserve and the other central banks had to do something. The interest rate reductions in from September through December were not doing much to stem the slide of the dollar. Furthermore, more and more nations around the world were declaring that they would not use US dollars to purchase oil. China and other nations who hold trillions in US government securities were threatening to dump them to retain whatever value they have left. No one likes it when your assets keep losing value. These are significant items leading to the "handwriting on the wall".
Make no mistake, the demise of the US dollar is planned, but the timing is a little off. The Amero is not properly positioned yet to replace the US dollar, or to be politically and economically accepted yet. Measures had to be taken to slow down the pace. How soon will the smokescreen clear?
Gold and silver prices continue to rise, despite the recent retracement. Gold closed at $811.70 per ounce and silver closed at $14.34 per ounce. This continues to verify that investors seek the stability of precious metals during times of economic instability. Read my post of Dec. 1st to see the projections of what gold and silver are very likely to go to in the next six months.
Despite the plans of the elite and the powerful, let us remember who really is in control.
Your wealth and your treasures I will give as plunder, without charge,
because of all your sins throughout your country. Jeremiah 15:13 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
This real estate problem was causing major concerns around the world about the health of the US economy. This was weakening the dollar against all the major currencies. The Fed was more concerned with the dollar than the mortgage industry. But since they are interconnected, they had to do something and spin the news to look like they are doing something constructive. So far, the measures seem to be working in terms of propping up the beaten US dollar. The US dollar index closed at 77.62, up from 77.39 last week. It made significant gains on the major currencies in the world this week, but time will tell on how long it lasts.
The Federal Reserve and the other central banks had to do something. The interest rate reductions in from September through December were not doing much to stem the slide of the dollar. Furthermore, more and more nations around the world were declaring that they would not use US dollars to purchase oil. China and other nations who hold trillions in US government securities were threatening to dump them to retain whatever value they have left. No one likes it when your assets keep losing value. These are significant items leading to the "handwriting on the wall".
Make no mistake, the demise of the US dollar is planned, but the timing is a little off. The Amero is not properly positioned yet to replace the US dollar, or to be politically and economically accepted yet. Measures had to be taken to slow down the pace. How soon will the smokescreen clear?
Gold and silver prices continue to rise, despite the recent retracement. Gold closed at $811.70 per ounce and silver closed at $14.34 per ounce. This continues to verify that investors seek the stability of precious metals during times of economic instability. Read my post of Dec. 1st to see the projections of what gold and silver are very likely to go to in the next six months.
Despite the plans of the elite and the powerful, let us remember who really is in control.
Your wealth and your treasures I will give as plunder, without charge,
because of all your sins throughout your country. Jeremiah 15:13 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, December 21, 2007
Before It's Too Late
This week I've been discussing techniques for improving efficient use of our time. Well, since we are coming up to the holidays next week, I thought I would pass along a kind reminder.
Time is a very precious commodity that we only have so much of. We never really know when our time will be up. Do we show how much we care about the important people in our lives, or are we consumed with our daily activities and tasks? Do we show how much we care about the special people in our lives by spending time with them?
The holidays are a perfect time to remind us of the truly important things in our lives. We celebrate the birth of our Savior next Tuesday. Christmas cards and holiday greeting letters are not enough to convey the importance of the people we care most about. Make sure they understand that by spending your time with them.
No one on his deathbed ever said that he should have spent more time at the office.
There is a time for everything,
and a season for every activity under heaven:
Time is a very precious commodity that we only have so much of. We never really know when our time will be up. Do we show how much we care about the important people in our lives, or are we consumed with our daily activities and tasks? Do we show how much we care about the special people in our lives by spending time with them?
The holidays are a perfect time to remind us of the truly important things in our lives. We celebrate the birth of our Savior next Tuesday. Christmas cards and holiday greeting letters are not enough to convey the importance of the people we care most about. Make sure they understand that by spending your time with them.
No one on his deathbed ever said that he should have spent more time at the office.
There is a time for everything,
and a season for every activity under heaven:
a time to be born and a time to die,
a time to plant and a time to uproot,
a time to kill and a time to heal,
a time to tear down and a time to build,
a time to weep and a time to laugh,
a time to mourn and a time to dance,
I know that there is nothing better for men than to be happy and do good while they live. That everyone may eat and drink, and find satisfaction in all his toil—this is the gift of God. I know that everything God does will endure forever; nothing can be added to it and nothing taken from it. God does it so that men will revere him. Ecclesiastes 3:1-4, 12-14 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Thursday, December 20, 2007
Scheduling
This week, I've discussed areas of time management. The 6 most important things can help you prioritize activities. The 4 time quadrants can help organize and qualify where tasks fit. Now is the time to apply those to your schedule.
Many people find it helpful to block out their schedule and devote that time to one particular task or activity. This helps eliminate interruptions and helps focus you. A daily or weekly planner is ideal for this type of scheduling.
Many times there are tasks that can not be completed in one day. Block scheduling can still work for this by slotting a set period each day for the project to be worked on. So whether the project is a long range goal, medium range, or short term; you can still devote a set period of time each day or week to work on it.
Having flexibility in your schedule can work for you or against you. Depending on how focused you can be, you may be tempted to procrastinate when you have flexibility. That is when block scheduling can really work for you. On the other side, having flexibility in your schedule can keep you sane when things don't follow your schedule.
Balance in life is always a good thing.
May he give you the desire of your heart
and make all your plans succeed. Psalms 20:4 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Many people find it helpful to block out their schedule and devote that time to one particular task or activity. This helps eliminate interruptions and helps focus you. A daily or weekly planner is ideal for this type of scheduling.
Many times there are tasks that can not be completed in one day. Block scheduling can still work for this by slotting a set period each day for the project to be worked on. So whether the project is a long range goal, medium range, or short term; you can still devote a set period of time each day or week to work on it.
Having flexibility in your schedule can work for you or against you. Depending on how focused you can be, you may be tempted to procrastinate when you have flexibility. That is when block scheduling can really work for you. On the other side, having flexibility in your schedule can keep you sane when things don't follow your schedule.
Balance in life is always a good thing.
May he give you the desire of your heart
and make all your plans succeed. Psalms 20:4 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Wednesday, December 19, 2007
The 4 Quadrants
When it comes to making effective use of our time, some have trouble identifying where activities of our daily lives fit. There are not many people out there nowadays that have abundant time available. For the rest of us, the following exercise may be useful.
This method is called the 4 quadrants of time management. Take out a piece of paper and draw a huge plus sign from edge to edge in the middle of the paper. This will divide the paper into 4 equal portions. From left to right, top to bottom, label each quadrant I, II, III, IV. Quadrant I should be labeled "Most Important", quadrant II "Most Urgent", quadrant III, "Less Important", quadrant IV "Less Urgent".
Now consider all the tasks you have to do on a daily, weekly, or monthly basis. Some activities occur daily, others are infrequent. It may even help to have a separate sheet for each time period. Begin slotting each activity you do regularly in the appropriate quadrant. Most important things are absolutely necessary that they be completed. Most urgent things are frequent interruptions like answering the phone or attending to a screaming child.
If you are slotting too many things in quadrant I or II, you have a problem with prioritizing activities. Everything can not be done right away or be done at once. When everything is a priority, nothing really is, because they can't all be done simultaneously. The four quadrants should have nearly the same number of activities in each quadrant. Obviously, you should spend the bulk of your time in quadrant I and II. If some easier tasks are in III and IV and you do them, you won't likely have enough time to get quadrant I tasks completed.
Here is another thought about quadrant II "Most Urgent". Think about the consequences of not doing some of those interruptions. What will happen if you don't answer the phone for 30 minutes? Do you not have voice mail? Maybe the call can be returned later after you complete a quadrant I task. Maybe you can have an older sibling watch the baby for a while.
The point is that the sooner you get your time under your control rather than being manipulated by it, the saner life will be. Your financial matters are the same. The sooner you get your budget in line with your expenses, the less stress life will be.
A sluggard does not plow in season;
so at harvest time he looks but finds nothing. Proverbs 20:4 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
This method is called the 4 quadrants of time management. Take out a piece of paper and draw a huge plus sign from edge to edge in the middle of the paper. This will divide the paper into 4 equal portions. From left to right, top to bottom, label each quadrant I, II, III, IV. Quadrant I should be labeled "Most Important", quadrant II "Most Urgent", quadrant III, "Less Important", quadrant IV "Less Urgent".
Now consider all the tasks you have to do on a daily, weekly, or monthly basis. Some activities occur daily, others are infrequent. It may even help to have a separate sheet for each time period. Begin slotting each activity you do regularly in the appropriate quadrant. Most important things are absolutely necessary that they be completed. Most urgent things are frequent interruptions like answering the phone or attending to a screaming child.
If you are slotting too many things in quadrant I or II, you have a problem with prioritizing activities. Everything can not be done right away or be done at once. When everything is a priority, nothing really is, because they can't all be done simultaneously. The four quadrants should have nearly the same number of activities in each quadrant. Obviously, you should spend the bulk of your time in quadrant I and II. If some easier tasks are in III and IV and you do them, you won't likely have enough time to get quadrant I tasks completed.
Here is another thought about quadrant II "Most Urgent". Think about the consequences of not doing some of those interruptions. What will happen if you don't answer the phone for 30 minutes? Do you not have voice mail? Maybe the call can be returned later after you complete a quadrant I task. Maybe you can have an older sibling watch the baby for a while.
The point is that the sooner you get your time under your control rather than being manipulated by it, the saner life will be. Your financial matters are the same. The sooner you get your budget in line with your expenses, the less stress life will be.
A sluggard does not plow in season;
so at harvest time he looks but finds nothing. Proverbs 20:4 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Tuesday, December 18, 2007
6 Most Important Things
This hectic and busiest week of the year, the focus is on using our time more effectively. I will share with you the most effective idea on time management, and for that matter, on achieving success. It is the 6 most important things.
It works like this. 10 minutes before you go to bed each night, think of the 6 most important things that you need to do the next day and write them down. Prioritize them with 1 being the most important down to 6. Overnight, your subconscious will begin to work on them for you. It won't do them, but you will be more focused to work on them immediately. Start with your number 1. Work on this until it is completed. Then, go on to number 2, etc. Do not jump or skip down to something easier. You prioritized them for a reason.
At the end of the day, you will have gotten more done than you probably ever have before. You may not have completed everything, but you can do the same process over again. If items 5 and 6 did not get done, they can be your 1 and 2 for tomorrow. Plus, you always have the opportunity to re-prioritize every night. Life changes. You can too, one day at a time.
If you do this for a week, it will likely be the most productive week ever for you. That will motivate you to continue doing the process. Each week will get better and better for you. After one month, you won't believe how much you've accomplished in a short period of time.
As with everything, you must do this consistently. In a previous post I talk about how to form good habits. They must be done every day. Not all things on your list need to be work items, but they can be fun things as well. Sunday is always a good time to reflect on the past week and reward yourself for your accomplishments. By saving your list each day and reviewing them on Sunday, it serves as a good progress report and will help with future priority setting.
Just remember to put the proper things in perspective. There will be more time saving techniques this week. Stay tuned ...
There is a time for everything, and a season for every activity under heaven:
a time to weep and a time to laugh,
a time to mourn and a time to dance,
a time to scatter stones and a time to gather them,
a time to embrace and a time to refrain,
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
It works like this. 10 minutes before you go to bed each night, think of the 6 most important things that you need to do the next day and write them down. Prioritize them with 1 being the most important down to 6. Overnight, your subconscious will begin to work on them for you. It won't do them, but you will be more focused to work on them immediately. Start with your number 1. Work on this until it is completed. Then, go on to number 2, etc. Do not jump or skip down to something easier. You prioritized them for a reason.
At the end of the day, you will have gotten more done than you probably ever have before. You may not have completed everything, but you can do the same process over again. If items 5 and 6 did not get done, they can be your 1 and 2 for tomorrow. Plus, you always have the opportunity to re-prioritize every night. Life changes. You can too, one day at a time.
If you do this for a week, it will likely be the most productive week ever for you. That will motivate you to continue doing the process. Each week will get better and better for you. After one month, you won't believe how much you've accomplished in a short period of time.
As with everything, you must do this consistently. In a previous post I talk about how to form good habits. They must be done every day. Not all things on your list need to be work items, but they can be fun things as well. Sunday is always a good time to reflect on the past week and reward yourself for your accomplishments. By saving your list each day and reviewing them on Sunday, it serves as a good progress report and will help with future priority setting.
Just remember to put the proper things in perspective. There will be more time saving techniques this week. Stay tuned ...
There is a time for everything, and a season for every activity under heaven:
a time to weep and a time to laugh,
a time to mourn and a time to dance,
a time to scatter stones and a time to gather them,
a time to embrace and a time to refrain,
a time to search and a time to give up,
a time to keep and a time to throw away,
a time to tear and a time to mend,
a time to be silent and a time to speak, Ecclesiastes 3:1, 4-7 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, December 17, 2007
Time
It is now just eight days before Christmas. Most of us are busy with holiday preparations, house cleaning, last minute gift shopping, etc. This week is one of the busiest of year because of all the extra stuff that has to get done before the holidays.
So I thought it very appropriate that I bring up a few thoughts about time and how it relates to the meaning of life. First of all, time is the one commodity that everyone is given equally. Everyone, regardless of position, age, lineage, healthy or ill; is given 24 hours each day. If you don't make effective use of it today, you will still be given 24 more hours tomorrow. However, it is one commodity that once gone, you can never get it back. So use it wisely.
How we use our time is very important. Many people are stressed in their lives because of all the things they have to do and there's not enough time to do it. Here are some questions that you can reflect on why you might be stressed.
Many wealthy people will tell you that time is money. So if you're not using your time properly, you will likely have trouble with your finances. There will be more on this throughout the week. Stay tuned ...
He has made everything beautiful in its time. He has also set eternity in the hearts of men; yet they cannot fathom what God has done from beginning to end. I know that there is nothing better for men than to be happy and do good while they live. That everyone may eat and drink, and find satisfaction in all his toil—this is the gift of God. Ecclesiastes 3:11-13 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
So I thought it very appropriate that I bring up a few thoughts about time and how it relates to the meaning of life. First of all, time is the one commodity that everyone is given equally. Everyone, regardless of position, age, lineage, healthy or ill; is given 24 hours each day. If you don't make effective use of it today, you will still be given 24 more hours tomorrow. However, it is one commodity that once gone, you can never get it back. So use it wisely.
How we use our time is very important. Many people are stressed in their lives because of all the things they have to do and there's not enough time to do it. Here are some questions that you can reflect on why you might be stressed.
- Do you take on too much activities and work?
- Do you have trouble delegating tasks to others?
- Do you make effective use of your time?
- Do you identify the activities that really make a difference?
- Do you know how to prioritize the difference of what is important and what is urgent?
- Do you let interruptions slow your progress on getting your tasks done?
- Do you procrastinate on tasks you don't like to do?
- Do you waste time because you are not organized?
- Do you invest your time when appropriate for future use?
- Do you not use alarms or alerts to keep you on schedule?
- Do you not use tools that can increase your efficiency?
Many wealthy people will tell you that time is money. So if you're not using your time properly, you will likely have trouble with your finances. There will be more on this throughout the week. Stay tuned ...
He has made everything beautiful in its time. He has also set eternity in the hearts of men; yet they cannot fathom what God has done from beginning to end. I know that there is nothing better for men than to be happy and do good while they live. That everyone may eat and drink, and find satisfaction in all his toil—this is the gift of God. Ecclesiastes 3:11-13 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Saturday, December 15, 2007
Temporary Relief
This past week I've been discussing the inter-relationships among a number of key indicators that drive the world economy. With the price of oil at near record highs and the fallout of the sub-prime mortgage crisis, the global economy was at an edge and was in danger of going into hyperinflation followed by depression. Thousands had lost their homes to defaults, and many banks were on the verge of bankruptcy due to the reduced cash flow from the defaults.
On Thursday Dec. 13th, the 5 major central banks from around the world (the Federal Reserve, the Bank of England, the European Central Bank, the Swiss National Bank, and the Bank of Canada), pooled $114 billion to prop up the global economy by injecting cash into the money markets. On Monday, the Fed will auction off $20 billion in loans and accept a wide range of collateral to spur on the economy. The Bank of England will auction off 11.35 billion pounds on Tuesday. "The banks hope that the new term auction facility at favourable rates will boost liquidity, ultimately benefiting their economies by making it easier for businesses and consumers to borrow money to invest and spend on goods and services."
This measure was announced a day after a further quarter of a percentage point cut in the federal funds rate by the Fed failed to ease concerns about the credit crisis and its potential impact on the global economy. What this all means is that the huge sums of money increasing liquidity into bank vaults is a last ditch effort to get the economy moving before it rolls right off the cliff.
This had a positive impact on the strength of the US dollar in the foreign exchange currency markets. The US dollar gained almost 4 cents against the Great British Pound, and more than 2 cents against the Euro and the Swiss franc. The US dollar index closed at 77.39, its strongest close in 6 weeks.
These measures will likely work for a brief period, but time will tell on how long it keeps the economy moving and the smaller banks open. Gold and silver fell in value this week, but just slightly. Gold closed at $793.10 per ounce and silver closed at $13.81 per ounce.
My personal take on this latest move is that the imminent collapse of the US economy was happening faster than expected. Drastic measures never taken before had to be implemented because some elements of the plan were not fully in place.
But when Pharaoh saw that there was relief, he hardened his heart and did not listen to them, just as the LORD had said. Exodus 8:15 (NASB)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
On Thursday Dec. 13th, the 5 major central banks from around the world (the Federal Reserve, the Bank of England, the European Central Bank, the Swiss National Bank, and the Bank of Canada), pooled $114 billion to prop up the global economy by injecting cash into the money markets. On Monday, the Fed will auction off $20 billion in loans and accept a wide range of collateral to spur on the economy. The Bank of England will auction off 11.35 billion pounds on Tuesday. "The banks hope that the new term auction facility at favourable rates will boost liquidity, ultimately benefiting their economies by making it easier for businesses and consumers to borrow money to invest and spend on goods and services."
This measure was announced a day after a further quarter of a percentage point cut in the federal funds rate by the Fed failed to ease concerns about the credit crisis and its potential impact on the global economy. What this all means is that the huge sums of money increasing liquidity into bank vaults is a last ditch effort to get the economy moving before it rolls right off the cliff.
This had a positive impact on the strength of the US dollar in the foreign exchange currency markets. The US dollar gained almost 4 cents against the Great British Pound, and more than 2 cents against the Euro and the Swiss franc. The US dollar index closed at 77.39, its strongest close in 6 weeks.
These measures will likely work for a brief period, but time will tell on how long it keeps the economy moving and the smaller banks open. Gold and silver fell in value this week, but just slightly. Gold closed at $793.10 per ounce and silver closed at $13.81 per ounce.
My personal take on this latest move is that the imminent collapse of the US economy was happening faster than expected. Drastic measures never taken before had to be implemented because some elements of the plan were not fully in place.
But when Pharaoh saw that there was relief, he hardened his heart and did not listen to them, just as the LORD had said. Exodus 8:15 (NASB)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, December 14, 2007
The Big Picture
To continue from yesterday, I discussed the impact of the Federal Reserve lowering interest rates on various markets. When rates are raised, the opposite occurs. That is how much power our central bank has on our economy. Now, imagine the same impact on a global level. The World Bank and the IMF (International Monetary Fund) perform the same functions as central banks for the world. They set rates of exchange and oversee balance of payments of 185 member nations around the world.
The Federal Reserve is not actually part of the federal government. It is a private corporation reporting to the World Bank. By the way, so is the IRS. Both entities act as pseudo-government agencies for stability reasons. It gives peace of mind (or fear depending on the person) to citizens knowing that our capitalistic society is "governed". (Title 31 of the Federal Register lists all government agencies of the US Treasury department, the Internal Revenue Service and the Federal Reserve Corporation are not listed. They are also not listed on the Parallel Table of Authority which are governing bodies to each title under the Code of Federal Regulations.)
So when the flow of money is controlled globally and nationally, it has a direct correlation to how businesses and consumers respond. The price of oil and interest rates are just some of the key variables that they use to dramatically influence the state of the world. Their ultimate goal is to have a world government and complete control over all financial matters. If we ever get to a cashless society, they would control who could buy or sell anything. Naturally, credit card companies would love this idea. Controlling the rates of exchange and money supply is not enough for them. Absolute power corrupts absolutely.
Do you ever wonder why basic financial concepts are not taught in elementary and secondary schools much, if at all? Even at the collegiate level, you will not get much of the information presented here. The media including the financial networks, newspapers, magazines, etc. present volumes of financial data, but do people really understand the impact of those reports? It's like a 1000 piece jigsaw puzzle that you are shown individual pieces. Does one or two pieces give you a picture of how everything fits together?
If people do not understand money, they can be easily controlled in how it is used. Is this the society that you want?
Then the Pharisees went out and laid plans to trap him in his words. They sent their disciples to him along with the Herodians. "Teacher," they said, "we know you are a man of integrity and that you teach the way of God in accordance with the truth. You aren't swayed by men, because you pay no attention to who they are. Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not?"
The Federal Reserve is not actually part of the federal government. It is a private corporation reporting to the World Bank. By the way, so is the IRS. Both entities act as pseudo-government agencies for stability reasons. It gives peace of mind (or fear depending on the person) to citizens knowing that our capitalistic society is "governed". (Title 31 of the Federal Register lists all government agencies of the US Treasury department, the Internal Revenue Service and the Federal Reserve Corporation are not listed. They are also not listed on the Parallel Table of Authority which are governing bodies to each title under the Code of Federal Regulations.)
So when the flow of money is controlled globally and nationally, it has a direct correlation to how businesses and consumers respond. The price of oil and interest rates are just some of the key variables that they use to dramatically influence the state of the world. Their ultimate goal is to have a world government and complete control over all financial matters. If we ever get to a cashless society, they would control who could buy or sell anything. Naturally, credit card companies would love this idea. Controlling the rates of exchange and money supply is not enough for them. Absolute power corrupts absolutely.
Do you ever wonder why basic financial concepts are not taught in elementary and secondary schools much, if at all? Even at the collegiate level, you will not get much of the information presented here. The media including the financial networks, newspapers, magazines, etc. present volumes of financial data, but do people really understand the impact of those reports? It's like a 1000 piece jigsaw puzzle that you are shown individual pieces. Does one or two pieces give you a picture of how everything fits together?
If people do not understand money, they can be easily controlled in how it is used. Is this the society that you want?
Then the Pharisees went out and laid plans to trap him in his words. They sent their disciples to him along with the Herodians. "Teacher," they said, "we know you are a man of integrity and that you teach the way of God in accordance with the truth. You aren't swayed by men, because you pay no attention to who they are. Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not?"
But Jesus, knowing their evil intent, said, "You hypocrites, why are you trying to trap me? Show me the coin used for paying the tax." They brought him a denarius, and he asked them, "Whose portrait is this? And whose inscription?"
"Caesar's," they replied.
Then he said to them, "Give to Caesar what is Caesar's, and to God what is God's." Matthew 22:15-21 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Thursday, December 13, 2007
Completing the circle
This week, I've been focusing on showing the relationships of financial markets and their indicators. Today and tomorrow, I will complete the circle and show how they interact and influence each other.
Probably the biggest influence of all markets outside of the price of oil is interest rates. I've already mentioned in previous posts that the Federal Reserve controls the money supply by adjusting the federal funds rate. When they lower interest rates, it sets off a chain reaction that affects many different markets. First of all, companies are more apt to borrow money from banks to drive their businesses. This money increases their spending for advertising and other expenses. Consumers in turn will buy more goods and services when rates are low. They are quick to enjoy for the moment and worry about paying later.
When interest rates are lowered, government bond prices go up and the yield goes down with the interest rate. When bond yields are lower, conservative investors will look for higher returns, usually with stocks. The more money put in the stock market, obviously the stock market indexes rise, such as the Dow Jones and the S&P 500.
In foreign currency exchange markets or forex, when interest rates are lowered, foreign investors are less likely to pour money in the US economy. They are less likely to buy US goods and services, US government securities, and US dollars; so the value of the dollar goes down and the currency weakens. This also affects international trade because it will take more US dollars to buy foreign goods and services. As these products become more expensive, foreign trade pours in to the US to make more profit. This widens the trade imbalance with other countries because more and more products are coming into the US and fewer products are exported.
In real estate, as interest rates are lowered, prices will go up because credit is more easily obtained. More houses will be sold and banks will do new mortgages on the houses sold. The more money banks lend out, the more credit becomes available as the loans are paid back as discussed in previous posts.
Agricultural commodities are also affected by interest rates, but not as much. As interest rates are lowered, and the economy speeds up by the increased spending, consumers will spend more on food as well. Futures contracts for cattle and pork bellies will go up because the price of meat goes up. Milk, sugar, coffee, orange juice, etc. will all go up as well. As consumer prices go up, the rate of inflation also goes up as discussed in previous posts.
Are you beginning to see the enormous impact the Federal Reserve has on our daily lives? Banks and companies are steered by its direction, which in turn affects all of us. Even the government's money supply is influenced by how many US government securities are sold. Furthermore, all government spending money is obtained through loans from the Federal Reserve and gets added to the national debt. It is so enormous, we can not even pay the interest on the loan. Thus we have mortgaged our working capital and lives through taxable income for generations to come to the Federal Reserve.
This will be continued tomorrow. Stay tuned ...
He who increases his wealth by exorbitant interest
amasses it for another, who will be kind to the poor. Proverbs 8:28 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Probably the biggest influence of all markets outside of the price of oil is interest rates. I've already mentioned in previous posts that the Federal Reserve controls the money supply by adjusting the federal funds rate. When they lower interest rates, it sets off a chain reaction that affects many different markets. First of all, companies are more apt to borrow money from banks to drive their businesses. This money increases their spending for advertising and other expenses. Consumers in turn will buy more goods and services when rates are low. They are quick to enjoy for the moment and worry about paying later.
When interest rates are lowered, government bond prices go up and the yield goes down with the interest rate. When bond yields are lower, conservative investors will look for higher returns, usually with stocks. The more money put in the stock market, obviously the stock market indexes rise, such as the Dow Jones and the S&P 500.
In foreign currency exchange markets or forex, when interest rates are lowered, foreign investors are less likely to pour money in the US economy. They are less likely to buy US goods and services, US government securities, and US dollars; so the value of the dollar goes down and the currency weakens. This also affects international trade because it will take more US dollars to buy foreign goods and services. As these products become more expensive, foreign trade pours in to the US to make more profit. This widens the trade imbalance with other countries because more and more products are coming into the US and fewer products are exported.
In real estate, as interest rates are lowered, prices will go up because credit is more easily obtained. More houses will be sold and banks will do new mortgages on the houses sold. The more money banks lend out, the more credit becomes available as the loans are paid back as discussed in previous posts.
Agricultural commodities are also affected by interest rates, but not as much. As interest rates are lowered, and the economy speeds up by the increased spending, consumers will spend more on food as well. Futures contracts for cattle and pork bellies will go up because the price of meat goes up. Milk, sugar, coffee, orange juice, etc. will all go up as well. As consumer prices go up, the rate of inflation also goes up as discussed in previous posts.
Are you beginning to see the enormous impact the Federal Reserve has on our daily lives? Banks and companies are steered by its direction, which in turn affects all of us. Even the government's money supply is influenced by how many US government securities are sold. Furthermore, all government spending money is obtained through loans from the Federal Reserve and gets added to the national debt. It is so enormous, we can not even pay the interest on the loan. Thus we have mortgaged our working capital and lives through taxable income for generations to come to the Federal Reserve.
This will be continued tomorrow. Stay tuned ...
He who increases his wealth by exorbitant interest
amasses it for another, who will be kind to the poor. Proverbs 8:28 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Wednesday, December 12, 2007
Commodities versus Stocks versus Real Estate
Yesterday, I described the difference between equity investments and debt instruments. Today, I will break down three main types of equity investments. First of all, commodities are products that are in demand, but they are supplied by many sources without qualitative differentiation across the market. In other words, they are the same quality throughout the market, so price is determined by the market as a whole. For example, there are standards in what makes a barrel of light sweet crude oil. Regardless of where it comes from or the company that delivers it for refining, the price will be uniform across the world on any given day or time.
There are many types of commodities. They are natural resources such as oil, natural gas, coal, and iron ore. There are agricultural products such as cotton, sugar, coffee beans, soy beans, rice, wheat, corn, and oranges. There are livestock such as pork bellies, cattle, and hogs. There are precious metals such as gold, silver, platinum, copper, palladium, and aluminum. There are also foreign currencies such as the US dollar, Canadian dollar, Australian dollar, Euro, Swiss franc, Great British pound, and Japanese yen. All are traded on a daily basis from commodity exchanges in world financial districts.
Most commodities are traded in futures contracts. This means that the underlying instrument or product is bought or sold at a certain date in the future at a specified price. A futures contract carries the obligation to buy or sell at a specified price and date, which differs from options contracts where it gives the right to buy or sell at a specified price and a set time frame. The spot price is the given price quoted on the market for immediate settlement of payment and delivery. Spot settlement is usually one or two business days from the trade date.
Since commodities will fluctuate with the market on a daily basis, investments can be risky if the market moves against you. So it is always important to identify the trend. Stocks are also similar in the way that they fluctuate daily with the market. Most people are familiar with stocks, or shares of ownership of a company. Because of the volatility of the markets, both are risky investments unless you have extensive trading experience in the given market.
With real estate, the market fluctuates far less. Mortgage rates and interest rates are the key variables that determine fluctuations. This is why many investors prefer real estate to commodities or stocks. They are much more conservative investments. However, as you get more conservative, the returns are usually lower as well.
So again, the question is - what type of investor do you want to be? What experience do you have in the particular market? Are the returns you get going to help you meet your financial goals?
There will be more correlations among the relationships of asset classes. Stay tuned ...
Hear this, you who trample the needy, to do away with the humble of the land, saying,
"When will the new moon be over,
So that we may sell grain,
And the sabbath, that we may open the wheat market,
To make the bushel smaller and the shekel bigger,
And to cheat with dishonest scales,
So as to buy the helpless for money
And the needy for a pair of sandals,
And that we may sell the refuse of the wheat?"
The LORD has sworn by the pride of Jacob,
"Indeed, I will never forget any of their deeds." Amos 8:4-7 (NASB)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
There are many types of commodities. They are natural resources such as oil, natural gas, coal, and iron ore. There are agricultural products such as cotton, sugar, coffee beans, soy beans, rice, wheat, corn, and oranges. There are livestock such as pork bellies, cattle, and hogs. There are precious metals such as gold, silver, platinum, copper, palladium, and aluminum. There are also foreign currencies such as the US dollar, Canadian dollar, Australian dollar, Euro, Swiss franc, Great British pound, and Japanese yen. All are traded on a daily basis from commodity exchanges in world financial districts.
Most commodities are traded in futures contracts. This means that the underlying instrument or product is bought or sold at a certain date in the future at a specified price. A futures contract carries the obligation to buy or sell at a specified price and date, which differs from options contracts where it gives the right to buy or sell at a specified price and a set time frame. The spot price is the given price quoted on the market for immediate settlement of payment and delivery. Spot settlement is usually one or two business days from the trade date.
Since commodities will fluctuate with the market on a daily basis, investments can be risky if the market moves against you. So it is always important to identify the trend. Stocks are also similar in the way that they fluctuate daily with the market. Most people are familiar with stocks, or shares of ownership of a company. Because of the volatility of the markets, both are risky investments unless you have extensive trading experience in the given market.
With real estate, the market fluctuates far less. Mortgage rates and interest rates are the key variables that determine fluctuations. This is why many investors prefer real estate to commodities or stocks. They are much more conservative investments. However, as you get more conservative, the returns are usually lower as well.
So again, the question is - what type of investor do you want to be? What experience do you have in the particular market? Are the returns you get going to help you meet your financial goals?
There will be more correlations among the relationships of asset classes. Stay tuned ...
Hear this, you who trample the needy, to do away with the humble of the land, saying,
"When will the new moon be over,
So that we may sell grain,
And the sabbath, that we may open the wheat market,
To make the bushel smaller and the shekel bigger,
And to cheat with dishonest scales,
So as to buy the helpless for money
And the needy for a pair of sandals,
And that we may sell the refuse of the wheat?"
The LORD has sworn by the pride of Jacob,
"Indeed, I will never forget any of their deeds." Amos 8:4-7 (NASB)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Tuesday, December 11, 2007
Equity versus Debt
When discussing asset classes, it's important to understand the nature of the investment vehicle. There are two main types of this. Equity implies ownership or at least a share of ownership. This can be stock or shares of ownership in a company. It can be a deed in real estate. It can be a certificate of authenticity in the case of art or valuable coins. With all types of equity investments, you are looking for the investment to appreciate, or grow in value. Since you are an owner or have a share of ownership, you usually have some degree of control in making the value grow or being able to sell it when you think the value is declining.
The other main type is debt instruments. This can be a bond that is issued by a government or corporation. It can be a mortgage on a piece of property or a loan. With debt instruments, you are exchanging cash or something else of value for an asset managed by someone else. They have the control on whether the value of the asset will grow. In exchange for the control, they will usually pay you interest or a declared dividend.
So the question is - do you want control of your investments or are you willing to turn control over to someone else? Do you have the knowledge or insight to determine when to keep your investment or to convert it to another asset class if the value is likely to go down? If not, you will likely be more attracted to debt instruments.
Debt instruments, in addition to having less control, usually also have lower returns. The higher returns usually go with the higher risks. If you are the management of a company issuing a corporate bond, you have to make the company successful to be able to pay off the interest on the bond. You have the greater risk to make it happen and to deal with the unknown variables, therefore you also reap the benefits of success. You keep the excess profits and pay the interest of the bond to the bondholders.
Wealth creation revolves around having things that grow in value when you own and control them. If you don't have a lot of wealth, you will always give up control and possible value to someone else. What type do you want?
Do not be a man who strikes hands in pledge or puts up security for debts;
if you lack the means to pay, your very bed will be snatched from under you. Proverbs 22:26-27 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
The other main type is debt instruments. This can be a bond that is issued by a government or corporation. It can be a mortgage on a piece of property or a loan. With debt instruments, you are exchanging cash or something else of value for an asset managed by someone else. They have the control on whether the value of the asset will grow. In exchange for the control, they will usually pay you interest or a declared dividend.
So the question is - do you want control of your investments or are you willing to turn control over to someone else? Do you have the knowledge or insight to determine when to keep your investment or to convert it to another asset class if the value is likely to go down? If not, you will likely be more attracted to debt instruments.
Debt instruments, in addition to having less control, usually also have lower returns. The higher returns usually go with the higher risks. If you are the management of a company issuing a corporate bond, you have to make the company successful to be able to pay off the interest on the bond. You have the greater risk to make it happen and to deal with the unknown variables, therefore you also reap the benefits of success. You keep the excess profits and pay the interest of the bond to the bondholders.
Wealth creation revolves around having things that grow in value when you own and control them. If you don't have a lot of wealth, you will always give up control and possible value to someone else. What type do you want?
Do not be a man who strikes hands in pledge or puts up security for debts;
if you lack the means to pay, your very bed will be snatched from under you. Proverbs 22:26-27 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, December 10, 2007
Connecting the Dots
This week, we will focus on tying together many of the main economic factors. When one factor changes, many times it will have an affect on others. Once you begin to see the relationships, you can have a very good indication of what will happen.
The first thing you have to understand is that oil is the currency of the world. Every 1st world country is heavily influenced by the price of oil because of its dependency on oil for energy, transportation, and manufacturing. How long could you or anyone you know last without filling up your car with gas? Most people's income are tied to gas because they need to travel to get to their job. Many of the products we use on a daily basis are produced by oil. All plastics are oil derivatives. When the price of oil goes up, everything else will as well. Inflation has always been linked directly to the price of oil.
After oil, the asset classes really begin to vary. Another mainstay has always been real estate, because it stays in one place. The cardinal rule of real estate has always been location, location, location. The price of real estate will always been determined by what attractions or aversions the property is located near. As proximity to the location increases, the price decreases. Ease of access such as roads, ports, rail lines, and airports are also key elements to the price of the real estate.
The other asset classes range from precious metals like gold and silver; to other natural resources such as crops, livestock, coal, and water; equity investment vehicles such as stocks; debt instruments such as bonds, mortgages, and loans; collectibles such as art, fine wine, and antique automobiles; and liquid instruments such as currency, checking, and money market accounts.
The key thing to remember that as one asset classes increases, other classes will either follow suit because they are linked, or act conversely because of the inverse relationship. A few will act independently, but those are the exception and are not common asset classes.
For example, I have been pointing out in recent posts that the US dollar has been plummeting in value for many reasons. This is driving up the price of gold and silver because the currency is losing value. Precious metals have always been a safe haven during times of economic instability.
We will focus more on these relationships this week. Stay tuned ...
All King Solomon's goblets were gold, and all the household articles in the Palace of the Forest of Lebanon were pure gold. Nothing was made of silver, because silver was considered of little value in Solomon's days. I Kings 10:21
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
The first thing you have to understand is that oil is the currency of the world. Every 1st world country is heavily influenced by the price of oil because of its dependency on oil for energy, transportation, and manufacturing. How long could you or anyone you know last without filling up your car with gas? Most people's income are tied to gas because they need to travel to get to their job. Many of the products we use on a daily basis are produced by oil. All plastics are oil derivatives. When the price of oil goes up, everything else will as well. Inflation has always been linked directly to the price of oil.
After oil, the asset classes really begin to vary. Another mainstay has always been real estate, because it stays in one place. The cardinal rule of real estate has always been location, location, location. The price of real estate will always been determined by what attractions or aversions the property is located near. As proximity to the location increases, the price decreases. Ease of access such as roads, ports, rail lines, and airports are also key elements to the price of the real estate.
The other asset classes range from precious metals like gold and silver; to other natural resources such as crops, livestock, coal, and water; equity investment vehicles such as stocks; debt instruments such as bonds, mortgages, and loans; collectibles such as art, fine wine, and antique automobiles; and liquid instruments such as currency, checking, and money market accounts.
The key thing to remember that as one asset classes increases, other classes will either follow suit because they are linked, or act conversely because of the inverse relationship. A few will act independently, but those are the exception and are not common asset classes.
For example, I have been pointing out in recent posts that the US dollar has been plummeting in value for many reasons. This is driving up the price of gold and silver because the currency is losing value. Precious metals have always been a safe haven during times of economic instability.
We will focus more on these relationships this week. Stay tuned ...
All King Solomon's goblets were gold, and all the household articles in the Palace of the Forest of Lebanon were pure gold. Nothing was made of silver, because silver was considered of little value in Solomon's days. I Kings 10:21
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Saturday, December 8, 2007
The W
Last Saturday, I pointed out a development with the prices of silver and gold. Those prices were at the bottom of the second bottom of the letter W. This meant that the prices would start going up from that point. This week, that prediction is proving to be true. Last Saturday, gold was $783.50 and silver was $14.23 per ounce. Today, gold is $794.40 per ounce and silver is $14.34 per ounce. The ride up the last wing of the W is beginning. This ride will likely last about 6 months.
Markets typically follow patterns. This is because that markets are made up of many traders. Traders study charts and recognize these patterns. They then act accordingly and repeat the pattern as they see it developing. When enough traders act and money is moved, it becomes its own self-fulfilling prophecy. That is why trading is both a science and an art. The science is looking at all the charts and data, and understanding what it all means. The art is recognizing the pattern as it is happening and act on it.
On other financial news, the US dollar index has come back up to 76.27. That means that the value of the dollar is gotten a little stronger against the other world currencies. The all time low was 74.50. Oil has retreated slightly to $88.28 off its high of over $98 per barrel. Did you ever notice that the price of gas at the pump goes up almost immediately when oil prices go up? However, when the price of oil goes down, the price at the pump is slow to react. Interesting. Someone is making a lot of money on those slow fluctuations.
All of us who are mature should take such a view of things. And if on some point you think differently, that too God will make clear to you. Only let us live up to what we have already attained. Join with others in following my example, brothers, and take note of those who live according to the pattern we gave you. Philippians 3:15-17 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Markets typically follow patterns. This is because that markets are made up of many traders. Traders study charts and recognize these patterns. They then act accordingly and repeat the pattern as they see it developing. When enough traders act and money is moved, it becomes its own self-fulfilling prophecy. That is why trading is both a science and an art. The science is looking at all the charts and data, and understanding what it all means. The art is recognizing the pattern as it is happening and act on it.
On other financial news, the US dollar index has come back up to 76.27. That means that the value of the dollar is gotten a little stronger against the other world currencies. The all time low was 74.50. Oil has retreated slightly to $88.28 off its high of over $98 per barrel. Did you ever notice that the price of gas at the pump goes up almost immediately when oil prices go up? However, when the price of oil goes down, the price at the pump is slow to react. Interesting. Someone is making a lot of money on those slow fluctuations.
All of us who are mature should take such a view of things. And if on some point you think differently, that too God will make clear to you. Only let us live up to what we have already attained. Join with others in following my example, brothers, and take note of those who live according to the pattern we gave you. Philippians 3:15-17 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, December 7, 2007
Finding Help
Many times you may need assistance in setting up a financial plan. Finding the right kind of help is critical. As with most things, a little research goes a long way.
Below are some questions to ask yourself.
Below are some questions to ask the professional.
The plans of the diligent lead to profit
as surely as haste leads to poverty. Proverbs 21:5
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Below are some questions to ask yourself.
- Does this professional have many years of experience?
- Does this professional have products that suit your plan?
- Does this professional get paid on commissions or by flat fee?
- Does this professional have proper licenses in your state?
- Is this professional licensed to handle stocks, bonds, mutual funds, annuities, insurance, stock options, pre-ipo stocks, forex, commodities, real estate, private placement, mortgages, and pensions?
- Does this professional have corporate experience in addition to personal finances?
- Does this professional have any international investing experience?
- Does this professional have any real estate investing experience?
- Is the professional interested more in helping me or making a commission?
Below are some questions to ask the professional.
- Do you have experience on how these plans are affected by taxes?
- How much money do you have under management?
- How often do you offer a review of the plan?
- How are the risk selection criteria determined?
- What are the assets of the investment backed by?
- What are the management fees of the investment?
- What is the track record of the investment - 1,3,5,10 years?
- What industry sectors are the investments invested in?
- Is there a guarantee of principal?
- What are the companies environmental record?
- Are there pending investigations or lawsuits with the companies or their officers?
The plans of the diligent lead to profit
as surely as haste leads to poverty. Proverbs 21:5
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Thursday, December 6, 2007
Making a Plan
Yesterday, I mentioned an article where 3 couples followed a plan and were able to retire from their jobs in their 30's. How did they do that? There were some helpful hints in the article, but it was the culmination of a lot of different things that were acted on. In short, they had a plan and they followed it.
If you have never set up a financial plan, it can be daunting. Whether that plan is for retirement, setting up a business, a budget, setting up a college fund, paying the monthly bills, or financing a multi-million dollar buyout plan. You may have heard, 'if you don't have a plan, you plan to fail'.
The first thing to do is to identify what you are trying to do. You have to have a goal, an objective, a destination in mind. Otherwise, how do you know whether you are accomplishing what you set out to do? Some people think everything is OK because they are 'making it'. What does that mean? That they are not in default on their mortgage?
The next thing is that you have to find the appropriate tool for the job. It could require that you enlist some help from a professional or find a book that outlines the solutions. Depending on the task, the tools and plans can be very different. Think about it. Not every job around the house can be fixed with a hammer. The more complex plans are just a number of simple plans strung together. They are just stepping stones to your ultimate goal.
Once you have formulated the plan, you have to start implementing it. Not tomorrow, not next week, not next month, now! Procrastination will ultimately lead you to having nothing at the age of 60 with nothing to fall back on. Do you want to be dependent on your kids or other relatives when you get old? The sooner you start, the sooner you can get to your destination. Starting is usually the hardest part. It takes more energy to start moving than it does to keep moving. Once you are moving, you can begin tracking the progress and that can motivate you to keep going.
With any plan, there will be obstacles and unexpected problems. When this happens, you will have to go back to the plan and adjust it. Sometimes, you may have to get help with how to deal with the problem or with making corrections to the plan. Don't be afraid to ask for help. It is your future at risk.
One helpful hint is that you can give yourself rewards at key accomplishments along the way for motivation. These should not be extravagant. Don't let the rewards set you back. Some people are motivated by working toward a prise. Others are motivated by avoiding pain. Pain versus pleasure. Choose what works best for you.
The elements are the same all the time. Goals, plans, tools, tracking progress, adjustments, and finally accomplishments. The variables are you. Choose your destination.
Folly delights a man who lacks judgment, but a man of understanding keeps a straight course.
Plans fail for lack of counsel, but with many advisers they succeed. Proverbs 15:21-22 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
If you have never set up a financial plan, it can be daunting. Whether that plan is for retirement, setting up a business, a budget, setting up a college fund, paying the monthly bills, or financing a multi-million dollar buyout plan. You may have heard, 'if you don't have a plan, you plan to fail'.
The first thing to do is to identify what you are trying to do. You have to have a goal, an objective, a destination in mind. Otherwise, how do you know whether you are accomplishing what you set out to do? Some people think everything is OK because they are 'making it'. What does that mean? That they are not in default on their mortgage?
The next thing is that you have to find the appropriate tool for the job. It could require that you enlist some help from a professional or find a book that outlines the solutions. Depending on the task, the tools and plans can be very different. Think about it. Not every job around the house can be fixed with a hammer. The more complex plans are just a number of simple plans strung together. They are just stepping stones to your ultimate goal.
Once you have formulated the plan, you have to start implementing it. Not tomorrow, not next week, not next month, now! Procrastination will ultimately lead you to having nothing at the age of 60 with nothing to fall back on. Do you want to be dependent on your kids or other relatives when you get old? The sooner you start, the sooner you can get to your destination. Starting is usually the hardest part. It takes more energy to start moving than it does to keep moving. Once you are moving, you can begin tracking the progress and that can motivate you to keep going.
With any plan, there will be obstacles and unexpected problems. When this happens, you will have to go back to the plan and adjust it. Sometimes, you may have to get help with how to deal with the problem or with making corrections to the plan. Don't be afraid to ask for help. It is your future at risk.
One helpful hint is that you can give yourself rewards at key accomplishments along the way for motivation. These should not be extravagant. Don't let the rewards set you back. Some people are motivated by working toward a prise. Others are motivated by avoiding pain. Pain versus pleasure. Choose what works best for you.
The elements are the same all the time. Goals, plans, tools, tracking progress, adjustments, and finally accomplishments. The variables are you. Choose your destination.
Folly delights a man who lacks judgment, but a man of understanding keeps a straight course.
Plans fail for lack of counsel, but with many advisers they succeed. Proverbs 15:21-22 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Wednesday, December 5, 2007
Choices
Today I read an interesting article from Yahoo! Finance by Judy Martel about several couples who retired in their 30s. It is something I can relate to because I too retired from the corporate world at 38. There were common traits among all of them. They all said 'work hard, spend little, save a lot, and spend wisely'. Some of their additional tips are listed below.
• Set spending and investment priorities now for the future
• Stay 100 percent out of debt, except for a mortgage
• Invest in stocks through index and mutual funds
• Use the compounding effect of time by investing early
• Seek a partner with the same financial values
I think all of these are important, but the last one I think is imperative. We all make choices on a daily basis for the things we want, need, or feel obligated to. How well do those choices line up with the priorities that we set for our lives? If they are not in alignment, there will be problems.
These couples all made a choice that they wanted to be free from the working world. Sometimes people around them didn't understand or were jealous. Take a look at the excerpt below.
The Kaderlis say that when they first retired, people treated them like they were on an extended vacation and would soon return to work. "Some thought we were committing social and financial suicide, and others projected that we were selfish or lazy since we opted out of the mandatory working world. This included family members, friends and even strangers. Our choice of early retirement was too far out of the box for them."
Despite the obstacles or people around you that don't understand, these couples made their choice and worked their plan. They now have the time freedom, financial freedom, and the lifestyle to do whatever they want daily. They all used sound financial principles that have been around for centuries to achieve their goals.
The means and the resources are out there. The choice is yours.
In the house of the wise are stores of choice food and oil,
but a foolish man devours all he has.
He who pursues righteousness and love
finds life, prosperity and honor. Proverbs 21:20-21 (NIV)
Information is not knowledge without action
Knowledge creates choices
Choices allow us to change our lives
Delta Inspire
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
• Set spending and investment priorities now for the future
• Stay 100 percent out of debt, except for a mortgage
• Invest in stocks through index and mutual funds
• Use the compounding effect of time by investing early
• Seek a partner with the same financial values
I think all of these are important, but the last one I think is imperative. We all make choices on a daily basis for the things we want, need, or feel obligated to. How well do those choices line up with the priorities that we set for our lives? If they are not in alignment, there will be problems.
These couples all made a choice that they wanted to be free from the working world. Sometimes people around them didn't understand or were jealous. Take a look at the excerpt below.
The Kaderlis say that when they first retired, people treated them like they were on an extended vacation and would soon return to work. "Some thought we were committing social and financial suicide, and others projected that we were selfish or lazy since we opted out of the mandatory working world. This included family members, friends and even strangers. Our choice of early retirement was too far out of the box for them."
Despite the obstacles or people around you that don't understand, these couples made their choice and worked their plan. They now have the time freedom, financial freedom, and the lifestyle to do whatever they want daily. They all used sound financial principles that have been around for centuries to achieve their goals.
The means and the resources are out there. The choice is yours.
In the house of the wise are stores of choice food and oil,
but a foolish man devours all he has.
He who pursues righteousness and love
finds life, prosperity and honor. Proverbs 21:20-21 (NIV)
Information is not knowledge without action
Knowledge creates choices
Choices allow us to change our lives
Delta Inspire
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Tuesday, December 4, 2007
Follow the Leader to Your Own Path
Yesterday, I talked about persistence is a key to success. The only time persistence works against you is when you are spinning your wheels and going nowhere. Or, you may have heard of the analogy of a hamster on the exercise wheel - again going nowhere. Or, you may have heard the informal definition of insanity - keep doing the same thing over and over and expecting different results.
Results, that is another key word. In order to achieve success, it would be wise to learn from others who are successful. In MLMs, there are usually people around that are willing to help you become successful that are already successful. Sometimes, they may have a financial interest in helping you, but not necessarily always. But if someone wants to help you, and they have experiences you don't, why wouldn't you accept their help? Conversely, if someone else is telling you that your new business won't work, and they have no personal experience and are not successful themselves; why would you listen to them?
Part of due diligence and making good decisions are discerning between facts and opinions. Results are facts. Opinions are so plentiful and are so subjective, that it depends on the reliability of the source to determine if they have any value. Many times they don't. Never listen to someone that is more screwed up than you are!
I will share a word analogy that I find very helpful. Imagine you are in a mine field with dead bodies littered around you. Then, you see a set of footprints. Do you follow the footprints that lead ahead out of the mine field, or do you set off on your own? Follow success. It leads somewhere. Conversely, a person who is heading nowhere can not direct you where you want to go.
Once you see the paths of success and follow them, then you can have choices of what is best for you. As you attain some degree of success, you will get introduced to others that have success. You can then determine if you have something else to learn from them, or choose a different path. The wheel only had to be invented once. Improvements on the wheel never stop.
Thomas Edison is widely known as the inventor of the incandescent light bulb. However, this is not true. Edison improved on other inventor designs to make it commercially viable. There were even litigation contention with his patent and William Sawyer's work. Also, Joseph Swan's British patent was filed a year before Edison's. To avoid a legal battle, the two formed a joint company to market the light bulb in Britain.
The point is that success in a journey, not a destination. That journey begins with a single step followed by another and another. Only when it is clear that you need to start your own path, that is the time to do it. Until then, follow the footsteps!
Direct my footsteps according to your word;
let no sin rule over me. Psalms 119:133 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Results, that is another key word. In order to achieve success, it would be wise to learn from others who are successful. In MLMs, there are usually people around that are willing to help you become successful that are already successful. Sometimes, they may have a financial interest in helping you, but not necessarily always. But if someone wants to help you, and they have experiences you don't, why wouldn't you accept their help? Conversely, if someone else is telling you that your new business won't work, and they have no personal experience and are not successful themselves; why would you listen to them?
Part of due diligence and making good decisions are discerning between facts and opinions. Results are facts. Opinions are so plentiful and are so subjective, that it depends on the reliability of the source to determine if they have any value. Many times they don't. Never listen to someone that is more screwed up than you are!
I will share a word analogy that I find very helpful. Imagine you are in a mine field with dead bodies littered around you. Then, you see a set of footprints. Do you follow the footprints that lead ahead out of the mine field, or do you set off on your own? Follow success. It leads somewhere. Conversely, a person who is heading nowhere can not direct you where you want to go.
Once you see the paths of success and follow them, then you can have choices of what is best for you. As you attain some degree of success, you will get introduced to others that have success. You can then determine if you have something else to learn from them, or choose a different path. The wheel only had to be invented once. Improvements on the wheel never stop.
Thomas Edison is widely known as the inventor of the incandescent light bulb. However, this is not true. Edison improved on other inventor designs to make it commercially viable. There were even litigation contention with his patent and William Sawyer's work. Also, Joseph Swan's British patent was filed a year before Edison's. To avoid a legal battle, the two formed a joint company to market the light bulb in Britain.
The point is that success in a journey, not a destination. That journey begins with a single step followed by another and another. Only when it is clear that you need to start your own path, that is the time to do it. Until then, follow the footsteps!
Direct my footsteps according to your word;
let no sin rule over me. Psalms 119:133 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, December 3, 2007
Two Important Words
Last week, I talked about controlling spending and increasing your income. Both activities will improve financial matters, and over time can really make a difference. So why don't more people learn about this, try things, and focus their time and energy into making positive steps?
Many times they don't know how. Other times they don't want to put the effort into it. Past experiences didn't work, so why will another attempt be more successful. Fear and other self-imposed limitations are also common. There are several posts I did back in October that deal with these.
The bottom line (pun intended) is that everyone goes through these feelings. The difference is that successful people start with two important words. The first word is think. Is this overly simplistic? No. You would be surprised how most people think that their learning days are over after they graduate from high school or college. They then get a job and have someone tell them what to do and how to do it. From that point on, their ability to think diminishes because they are not actively exercising their brain on a daily basis. Someone else is always doing it for them.
When you have your own business, you can not rely on someone else to do it. It is yours, and only yours. A part-time business can help prepare you for independent thinking again. By following their system, you can learn about how businesses are run. You can find out what works and what doesn't for you. Whether the first business works, or the second, or the third; every time you will learn from the experiences. Sooner or later, you will be successful; as long as you don't give up and quit. Many do not succeed the first time out. Failure is part of success. If you are not willing to fail, you will never be successful. You will always learn more from your failures than you will ever learn from your successes.
The second important word it do. Another very simple word. Again, many never succeed because they never try. They don't get off the ground. They never put any of their thoughts to action. The second part of action is to consistently work at it. Again, it may not work out the first, second, third, fourth time, etc. But persistence is always rewarded. I love the Yoda quote from Star Wars: The Empire Strikes Back - "Do or do not, there is no try". The point is that you cannot be stopped by any obstacles, delays, limitations, etc. If your determination is there, you will not be stopped. Only you can stop you. That is when you give up and not try anymore.
To those who by persistence in doing good seek glory, honor and immortality, he will give eternal life. Romans 2:7 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Many times they don't know how. Other times they don't want to put the effort into it. Past experiences didn't work, so why will another attempt be more successful. Fear and other self-imposed limitations are also common. There are several posts I did back in October that deal with these.
The bottom line (pun intended) is that everyone goes through these feelings. The difference is that successful people start with two important words. The first word is think. Is this overly simplistic? No. You would be surprised how most people think that their learning days are over after they graduate from high school or college. They then get a job and have someone tell them what to do and how to do it. From that point on, their ability to think diminishes because they are not actively exercising their brain on a daily basis. Someone else is always doing it for them.
When you have your own business, you can not rely on someone else to do it. It is yours, and only yours. A part-time business can help prepare you for independent thinking again. By following their system, you can learn about how businesses are run. You can find out what works and what doesn't for you. Whether the first business works, or the second, or the third; every time you will learn from the experiences. Sooner or later, you will be successful; as long as you don't give up and quit. Many do not succeed the first time out. Failure is part of success. If you are not willing to fail, you will never be successful. You will always learn more from your failures than you will ever learn from your successes.
The second important word it do. Another very simple word. Again, many never succeed because they never try. They don't get off the ground. They never put any of their thoughts to action. The second part of action is to consistently work at it. Again, it may not work out the first, second, third, fourth time, etc. But persistence is always rewarded. I love the Yoda quote from Star Wars: The Empire Strikes Back - "Do or do not, there is no try". The point is that you cannot be stopped by any obstacles, delays, limitations, etc. If your determination is there, you will not be stopped. Only you can stop you. That is when you give up and not try anymore.
To those who by persistence in doing good seek glory, honor and immortality, he will give eternal life. Romans 2:7 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Saturday, December 1, 2007
Silver and Gold
Even though we are entering the holiday season, I'm not referring to the Burl Ive's song. A couple weeks ago, I mentioned that the gold and silver markets started a retracement, or change in market direction for a period of time. This is setting up to be a classic market pattern.For any technical traders, this is called a double bottom. If you're not a trader, think of the letter W, with the two bottom points of the letter. In Elliott Wave Theory terminology, we are near the end of a simple wave 2c prior to the beginning of a long wave 3 going up. Elliott Wave also projects the market price targets. Based on the beginning of wave 1 around Aug. 20 at $660 per ounce, gold will very likely go up to a minimum of $960 from its point now in the coming months. The upper target is $1250 per ounce. This wave 3 will likely happen over the next six months.
Silver is in a comparable position. See the chart below. The Elliott Wave target prices for silver on the low end is $18.00 per ounce and the upper target is around $24.50. Again, there is a very strong likelihood that this will happen over the next 6 months.As you can see, all charts were copied from www.kitco.com, an excellent resource in researching all precious metals.
The market will likely be driven on a fundamental basis by poor holiday sales. Consumers are getting jittery about the overall state of the economy. They will spend less than previous years and will bring retailers' profits down. That, coupled with a sagging stock market, and eroding value of the US dollar as mentioned in previous posts, will trigger many investors to start or continue moving their assets into more stable and profitable positions with gold and silver, or other more profitable assets. Gold and silver have always been investor safe havens during periods of economic instability.
Just so you can get a bigger picture of what gold and silver have been doing over bigger time periods, I'm attaching the 6 month and 5 year charts below.
Blessed is the man who finds wisdom, the man who gains understanding, for she is more profitable than silver and yields better returns than gold. Proverbs 3:13-14 (NIV)
Wisdom is also knowing the timing of market cycles. Next week there will be more information on the value of businesses and other resources readily available that most people do not think about. Stay tuned ...
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, November 30, 2007
Tax Incentives
Yesterday, I talked about having a part-time business. Not only can you provide a substantial income with a business, but you can also significantly reduce your income taxes. Now, I am not a tax professional, but I have been using business expenses deductions on my personal income tax return for almost 20 years.
First of all, the business must be in your name. If it is a separate entity or company, these deductions would apply to the corporate tax return. Many purchases and services paid for can be a business expense deduction. This means you can reduce your taxable income before the tax tables are applied. As a person filing a return, you taxes are largely based on your income. Most of your expenses have to come out of your own pocket after you earn the money.
All of this is filed on a Schedule C - Profit or Loss From Business IRS form. Here are just some of the expenses you can deduct - advertising, car or truck expenses, depreciation, insurance, professional and legal services, office expense, supplies, rent or lease of equipment, licenses, utilities, business travel, business meals, other miscellaneous expenses, and even allowances for the use of your home as an office. All of these legitimate expenses (be sure to follow the IRS rules for proper application) can reduce your business taxable income and ultimately your personal taxable income. Best of all, you get to use these goods and services while operating your business.
Keep in mind that this is not an excuse to go out and buy all the neat gadgets out there, for you are still getting only a 15-35% deduction (based on your tax bracket) for every dollar you spend.
Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also because of conscience. This is also why you pay taxes, for the authorities are God's servants, who give their full time to governing. Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Romans 13:5-7 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
First of all, the business must be in your name. If it is a separate entity or company, these deductions would apply to the corporate tax return. Many purchases and services paid for can be a business expense deduction. This means you can reduce your taxable income before the tax tables are applied. As a person filing a return, you taxes are largely based on your income. Most of your expenses have to come out of your own pocket after you earn the money.
All of this is filed on a Schedule C - Profit or Loss From Business IRS form. Here are just some of the expenses you can deduct - advertising, car or truck expenses, depreciation, insurance, professional and legal services, office expense, supplies, rent or lease of equipment, licenses, utilities, business travel, business meals, other miscellaneous expenses, and even allowances for the use of your home as an office. All of these legitimate expenses (be sure to follow the IRS rules for proper application) can reduce your business taxable income and ultimately your personal taxable income. Best of all, you get to use these goods and services while operating your business.
Keep in mind that this is not an excuse to go out and buy all the neat gadgets out there, for you are still getting only a 15-35% deduction (based on your tax bracket) for every dollar you spend.
Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also because of conscience. This is also why you pay taxes, for the authorities are God's servants, who give their full time to governing. Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Romans 13:5-7 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Thursday, November 29, 2007
Part-Time Business
Yesterday, I discussed ways to increase your income through a part-time business. Most of the discussion was why those businesses don't yield a lot of income. Today, we will get into how the opposite can be true.
Part of the problem with MLM companies is that they forget about the true purposes and natures of a business. Those are to make money and turn a profit. To do this, you must have customers that want your product or service and you find a way to make it available to them. This is where marketing comes in. A successful business not only gets customers, but focuses on retaining customers to ensure longevity. Most MLMs have a horrible retention, or holding onto existing customers and getting repeat business. This is why many MLMs don't last beyond a few years. The really successful ones get their customers to tell others about their business. Word of mouth advertising is still the most effective.
Well, I already hit on one of the main keys - providing something the consumer wants. MLM companies promote their business through part-time distributors that have no idea how to identify what people want. When they don't connect with their potential customers, they give up and quit the business. In order to understand what others want, you first have to listen intently. How many people actually do this in our "me first" society?
Rather than unloading verbally all over someone about an opportunity, you must find a want or need that you can fulfill. Then when you are providing a solution to their desire or problem, they want to become a customer. If they get attached to the product or service emotionally, they will want to become a distributor. Now, you have multiple people combining their time and energy working toward the same thing. This is called leverage. The more leverage you have, the more and faster your income comes in. Each person is not working for you, but for him or herself. But you working together have common resources, support, and goals. This is very important when you hit obstacles or challenges.
Now, wouldn't it be great if people actually came to you and told you that they want your product or service? This is only possible if they know you can provide their solution. This can be done so many ways, but many involve a significant expense. Some do not. When the business is starting, look for low cost means such as a website or conference call number or results of satisfied customers. You can use these over and over again. If you don't leverage your time as well, your business will not grow very fast and will not likely survive.
The key points are to focus on others and leverage your resources. The successful MLM companies teach their distributors how to do this from day 1. Think of the things that you want. Is it likely that others will want those same things? Like time freedom, financial security, friends, travel opportunities, health, great lifestyle, etc. Effective marketing focuses on providing the things people want to the company or people that can provide them. Then, they come to you!
Another advantage of having a part-time business, you can begin learning about all the tax incentives businesses have that people do not. I will get more into this tomorrow.
Make it your ambition to lead a quiet life, to mind your own business and to work with your hands, just as we told you, so that your daily life may win the respect of outsiders and so that you will not be dependent on anybody. I Thessalonians 4:11-12
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Part of the problem with MLM companies is that they forget about the true purposes and natures of a business. Those are to make money and turn a profit. To do this, you must have customers that want your product or service and you find a way to make it available to them. This is where marketing comes in. A successful business not only gets customers, but focuses on retaining customers to ensure longevity. Most MLMs have a horrible retention, or holding onto existing customers and getting repeat business. This is why many MLMs don't last beyond a few years. The really successful ones get their customers to tell others about their business. Word of mouth advertising is still the most effective.
Well, I already hit on one of the main keys - providing something the consumer wants. MLM companies promote their business through part-time distributors that have no idea how to identify what people want. When they don't connect with their potential customers, they give up and quit the business. In order to understand what others want, you first have to listen intently. How many people actually do this in our "me first" society?
Rather than unloading verbally all over someone about an opportunity, you must find a want or need that you can fulfill. Then when you are providing a solution to their desire or problem, they want to become a customer. If they get attached to the product or service emotionally, they will want to become a distributor. Now, you have multiple people combining their time and energy working toward the same thing. This is called leverage. The more leverage you have, the more and faster your income comes in. Each person is not working for you, but for him or herself. But you working together have common resources, support, and goals. This is very important when you hit obstacles or challenges.
Now, wouldn't it be great if people actually came to you and told you that they want your product or service? This is only possible if they know you can provide their solution. This can be done so many ways, but many involve a significant expense. Some do not. When the business is starting, look for low cost means such as a website or conference call number or results of satisfied customers. You can use these over and over again. If you don't leverage your time as well, your business will not grow very fast and will not likely survive.
The key points are to focus on others and leverage your resources. The successful MLM companies teach their distributors how to do this from day 1. Think of the things that you want. Is it likely that others will want those same things? Like time freedom, financial security, friends, travel opportunities, health, great lifestyle, etc. Effective marketing focuses on providing the things people want to the company or people that can provide them. Then, they come to you!
Another advantage of having a part-time business, you can begin learning about all the tax incentives businesses have that people do not. I will get more into this tomorrow.
Make it your ambition to lead a quiet life, to mind your own business and to work with your hands, just as we told you, so that your daily life may win the respect of outsiders and so that you will not be dependent on anybody. I Thessalonians 4:11-12
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Wednesday, November 28, 2007
The Other Side of the Equation
The last couple days I have mentioned budgets and emergency funds. These are ways to control spending. However, that will only get you part of the way to financial freedom. And, it will only deal with the immediate present, not the longer term future.
Ultimately, you will have to look at ways to increase your income. This can be done countless ways, but all of them take time and especially effort. Most people are only familiar with one form of income, their job and the paycheck that comes with it. It regular and it's consistent, which is why most think it is secure. However, in uncertain times and frequent corporate layoffs, this can be very stressful and not secure at all.
Probably the most popular way people increase their income is with a part-time job. This can raise your income, but you are sacrificing most of your available time for usually a low wage. This will not make a big difference in the long term. A better avenue might be a part-time business. There are hundreds or even thousands of these available. They are known as MLM (multi-level marketing) or network marketing opportunities.
They primarily have a bad reputation for a variety of reasons. Most don't make any money in MLM and quit after buying hundreds or thousands of dollars of products that they won't or don't use. This is the "buy a lot and let in rot" scenario. They'll buy books, CDs, and tapes of how successful people built their businesses. The big problem with this is two fold. One, they are not you, and have different talents, work ethics, contacts, and other resources than you. Two, many of them make more money on the books, CDs, and tapes than on the real MLM business.
Many people also do not have experience selling or marketing items. They don't want to pester their family and friends about the latest "opportunity". Some do this and enter the NFL club (No Friends or family Left). Their friends cringe when they see you coming because there will be another pitch about something.
Many other MLMs are not legitimate businesses, but illegal Ponzi schemes. This is when participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell. This is illegal in most countries.
Well, tomorrow I will get into the secrets about how legitimate MLMs can make you a lot of money and how you can do it without pestering your friends.
Let no one deceive you with empty words, for because of such things God's wrath comes on those who are disobedient. Therefore do not be partners with them. Ephesians 5:6-7 (NIV)
If you have any comments or questions, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
Ultimately, you will have to look at ways to increase your income. This can be done countless ways, but all of them take time and especially effort. Most people are only familiar with one form of income, their job and the paycheck that comes with it. It regular and it's consistent, which is why most think it is secure. However, in uncertain times and frequent corporate layoffs, this can be very stressful and not secure at all.
Probably the most popular way people increase their income is with a part-time job. This can raise your income, but you are sacrificing most of your available time for usually a low wage. This will not make a big difference in the long term. A better avenue might be a part-time business. There are hundreds or even thousands of these available. They are known as MLM (multi-level marketing) or network marketing opportunities.
They primarily have a bad reputation for a variety of reasons. Most don't make any money in MLM and quit after buying hundreds or thousands of dollars of products that they won't or don't use. This is the "buy a lot and let in rot" scenario. They'll buy books, CDs, and tapes of how successful people built their businesses. The big problem with this is two fold. One, they are not you, and have different talents, work ethics, contacts, and other resources than you. Two, many of them make more money on the books, CDs, and tapes than on the real MLM business.
Many people also do not have experience selling or marketing items. They don't want to pester their family and friends about the latest "opportunity". Some do this and enter the NFL club (No Friends or family Left). Their friends cringe when they see you coming because there will be another pitch about something.
Many other MLMs are not legitimate businesses, but illegal Ponzi schemes. This is when participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell. This is illegal in most countries.
Well, tomorrow I will get into the secrets about how legitimate MLMs can make you a lot of money and how you can do it without pestering your friends.
Let no one deceive you with empty words, for because of such things God's wrath comes on those who are disobedient. Therefore do not be partners with them. Ephesians 5:6-7 (NIV)
If you have any comments or questions, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
Tuesday, November 27, 2007
Emergency Fund
Yesterday, I mentioned that an emergency fund can deal with unexpected expenses. But I did not explain it. An emergency fund is money set aside for an emergency. It can be at a bank, or a shoe box in your closet. Every month you set aside some amount, $25, $50, $100, etc, in this fund for unexpected circumstances. The key is to not take any money out unless it is truly an emergency. As the money builds up, don't be tempted to dip into it. This should be a scheduled item of your budget.
The ideal is to build up the emergency fund to 3 to 6 months worth of income. If you are contributing a small amount every month, this will take some time. Once it is built up and you didn't have any emergencies, you can take a portion and turn it into a new car fund or something similar. Don't be tempted to just spend it after all the time it took to build it up. This fund can really save you when unexpected occurrences such as car repairs, medical emergencies, hospital bills, etc.
The more you stick to your budget and emergency fund, the more money you will have available for the really important things in your life - your beliefs, your family, your home, vacations, etc. The simplest advice I can give with spending money is this priority list - 1-God, 2-family, 3-everything else. If you follow this, you will not have financial problems. This is even stated from the Bible reference below. A tithe is 10% of your income.
"Will a man rob God? Yet you rob me.
But you ask, 'How do we rob you?'
In tithes and offerings. You are under a curse—the whole nation of you—because you are robbing me. Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it. I will prevent pests from devouring your crops, and the vines in your fields will not cast their fruit," says the LORD Almighty. "Then all the nations will call you blessed, for yours will be a delightful land," says the LORD Almighty. Malachi 3:8-12 (NIV)
If you have questions or comments, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
The ideal is to build up the emergency fund to 3 to 6 months worth of income. If you are contributing a small amount every month, this will take some time. Once it is built up and you didn't have any emergencies, you can take a portion and turn it into a new car fund or something similar. Don't be tempted to just spend it after all the time it took to build it up. This fund can really save you when unexpected occurrences such as car repairs, medical emergencies, hospital bills, etc.
The more you stick to your budget and emergency fund, the more money you will have available for the really important things in your life - your beliefs, your family, your home, vacations, etc. The simplest advice I can give with spending money is this priority list - 1-God, 2-family, 3-everything else. If you follow this, you will not have financial problems. This is even stated from the Bible reference below. A tithe is 10% of your income.
"Will a man rob God? Yet you rob me.
But you ask, 'How do we rob you?'
In tithes and offerings. You are under a curse—the whole nation of you—because you are robbing me. Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it. I will prevent pests from devouring your crops, and the vines in your fields will not cast their fruit," says the LORD Almighty. "Then all the nations will call you blessed, for yours will be a delightful land," says the LORD Almighty. Malachi 3:8-12 (NIV)
If you have questions or comments, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
Monday, November 26, 2007
Budget
Last week I mentioned I would focus on solutions. The first place that people start to look for answers financially is usually the budget. The budget is a list of all planned expenses and revenues. The idea is to spend less than what comes in. Sounds simple, but life is not usually that simple.
One reason why a budget can be very effective is that it gets people to understand where the money is going. Many do not know where all their money goes. They know how much comes in from their paychecks, but the expenses continually go out day after day. At the end of the month, more went out that what came in. So, they use credit cards to purchase items, and have to pay in the future with an interest being charged after 30 days. This can be an effective tool to handle unexpected expenses; but after the interest starts, it gets very expensive. Many credit cards will charge 18% or more. Even the low introductory rates of 3.9% or similar, go up to 18-22% after 6 months usually. Always be sure to read the fine print on credit card applications.
Once people do track where their money goes, they can usually identify items purchased that they could probably do without. Unfortunately, the money has been spent and the bills have to be paid. Resourceful people can take lessons from the budget and their expense report to learn new habits and to limit the quick impulse purchases, such as a gourmet cup of coffee or candy bar. Once you curtail these impulse buys, more money is left for bills or savings.
As I mentioned, good habits can be formed like bad habits. If you repeat a good choice repetitively, it can become a habit. This is where the concept of opportunity costs comes in. Opportunity cost is the value of something given up by making a decision. In other words, if I purchase this now, I can not buy something else later on. If you intuitively apply this every time you make a purchase, you will make better purchases and spend less. You will be more aware of what you are spending and the value of other things you may have to give up because of this purchase.
Controlling your expenses is only a first step. Also, it will only deal with the immediate present. A budget will not give you much foresight in what is needed for the future. An emergency fund can help deal with unexpected expenses; but again, it will not cover significant changes in the future. Too often medical bills or layoffs or car repairs, etc. creep in on people unexpectedly that can not be handled by budgets or emergency funds.
When the expenses are cut as much as possible, you have to look at increasing revenue to solve the problem. We will discuss this more this week.
I referred to this before, but it bears repeating. Check out the parable of the minas in Luke 19.
And he called ten of his slaves, and gave them ten [a]minas and said to them, 'Do business with this until I come back.' Luke 19:13 (NASB) [a - a mina is equal to about 100 days wages]
If you have any comments or questions, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
One reason why a budget can be very effective is that it gets people to understand where the money is going. Many do not know where all their money goes. They know how much comes in from their paychecks, but the expenses continually go out day after day. At the end of the month, more went out that what came in. So, they use credit cards to purchase items, and have to pay in the future with an interest being charged after 30 days. This can be an effective tool to handle unexpected expenses; but after the interest starts, it gets very expensive. Many credit cards will charge 18% or more. Even the low introductory rates of 3.9% or similar, go up to 18-22% after 6 months usually. Always be sure to read the fine print on credit card applications.
Once people do track where their money goes, they can usually identify items purchased that they could probably do without. Unfortunately, the money has been spent and the bills have to be paid. Resourceful people can take lessons from the budget and their expense report to learn new habits and to limit the quick impulse purchases, such as a gourmet cup of coffee or candy bar. Once you curtail these impulse buys, more money is left for bills or savings.
As I mentioned, good habits can be formed like bad habits. If you repeat a good choice repetitively, it can become a habit. This is where the concept of opportunity costs comes in. Opportunity cost is the value of something given up by making a decision. In other words, if I purchase this now, I can not buy something else later on. If you intuitively apply this every time you make a purchase, you will make better purchases and spend less. You will be more aware of what you are spending and the value of other things you may have to give up because of this purchase.
Controlling your expenses is only a first step. Also, it will only deal with the immediate present. A budget will not give you much foresight in what is needed for the future. An emergency fund can help deal with unexpected expenses; but again, it will not cover significant changes in the future. Too often medical bills or layoffs or car repairs, etc. creep in on people unexpectedly that can not be handled by budgets or emergency funds.
When the expenses are cut as much as possible, you have to look at increasing revenue to solve the problem. We will discuss this more this week.
I referred to this before, but it bears repeating. Check out the parable of the minas in Luke 19.
And he called ten of his slaves, and gave them ten [a]minas and said to them, 'Do business with this until I come back.' Luke 19:13 (NASB) [a - a mina is equal to about 100 days wages]
If you have any comments or questions, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com
Saturday, November 24, 2007
Family Time
Holidays are the usual time when families get together. It is the time to reflect back on the good times and the bad. But you always try to forget about the bad. Many times it is even comical to get "home" and see a sibling or parent that you haven't seen for a while and immediately pick up on the old habits or traits he or she has.
Habits are there for a reason. They are formed out of continued practice, over and over again. It is something that we are comfortable with, so we repeat it. Habit is defined as an acquired pattern of behavior that often occurs automatically. We repeat it so often that it happens without our thinking about it.
Good habits can be formed just like bad habits. If you repeat something often enough, it becomes a habit. You may have heard the saying "It takes 21 days to form a habit". Regardless of how long it takes, the repetition is the key.
This can also be applied to how we acquire and manage our money. I think this is part of the problem with most people and their dealings with money. They are not taught good financial habits in school, and many times not at home either; so they fall into credit card traps and the like. We are also so used to inflation being low or moderate, that when a change does occur in the economy, we don't notice it. We have been conditioned to ignore it because it has never been an issue for about 30 years.
For the last several weeks, I've been warning about future economic changes that will likely affect us all. Next week, I will focus more on solutions and actions that can be taken to lessen the impact and protect yourselves.
then if anyone hears the trumpet but does not take warning and the sword comes and takes his life, his blood will be on his own head. Since he heard the sound of the trumpet but did not take warning, his blood will be on his own head. If he had taken warning, he would have saved himself. Ezekiel 33:4-5 (NIV)
If you have any questions or comments, you can email me at the address below.
Email: DeltaInspire@panama-vo.com
Habits are there for a reason. They are formed out of continued practice, over and over again. It is something that we are comfortable with, so we repeat it. Habit is defined as an acquired pattern of behavior that often occurs automatically. We repeat it so often that it happens without our thinking about it.
Good habits can be formed just like bad habits. If you repeat something often enough, it becomes a habit. You may have heard the saying "It takes 21 days to form a habit". Regardless of how long it takes, the repetition is the key.
This can also be applied to how we acquire and manage our money. I think this is part of the problem with most people and their dealings with money. They are not taught good financial habits in school, and many times not at home either; so they fall into credit card traps and the like. We are also so used to inflation being low or moderate, that when a change does occur in the economy, we don't notice it. We have been conditioned to ignore it because it has never been an issue for about 30 years.
For the last several weeks, I've been warning about future economic changes that will likely affect us all. Next week, I will focus more on solutions and actions that can be taken to lessen the impact and protect yourselves.
then if anyone hears the trumpet but does not take warning and the sword comes and takes his life, his blood will be on his own head. Since he heard the sound of the trumpet but did not take warning, his blood will be on his own head. If he had taken warning, he would have saved himself. Ezekiel 33:4-5 (NIV)
If you have any questions or comments, you can email me at the address below.
Email: DeltaInspire@panama-vo.com
Friday, November 23, 2007
Black Friday
In the US, the day after Thanksgiving is known as Black Friday. This is the day usually that retailers finally get into the black, or start turning a profit for the year. It is one of the busiest shopping days of the year because of the huge incentives and discounts offered by stores to attract customers.
A couple weeks ago, I mentioned that this could play a critical role in the stability of the dollar. The dollar has continued to erode in value over the last couple months to record or at least multi decade lows against other world currencies such as the Euro, the Great British Pound, the Swiss Franc, the Japanese Yen, the Canadian and Australian dollars, etc. If the retail numbers at the beginning of the holiday shopping season are weak because of the uncertain economic times, this could send the dollar over the edge and plummet further.
If this happens, the Federal Reserve will likely to continue to lower interest rates to encourage further spending and keep the economy moving. This will escalate inflation, as mentioned earlier this week. If the downward spiral continues, at a pre-arranged time, the government will announce that they will replace the US dollar with a new currency, called the Amero, or the North American currency. This currency would be a common currency for the three major countries in North America, the US, Canada, and Mexico. The currency will be labeled as a solution to the currency woes and further enhance the trading among the three countries. What really has changed though? Do we have trading problems now with Mexico and Canada? No.
With using a different piece of paper to exchange goods and services, does this change the economics of families not able to pay their bills? Does this get people out of debt? Does this reduce the cost of their medications? Does this pay off their mortgages faster? Sadly no. Nothing will really have changed except the sovereignity of the US will be diminished. The supremacy of the US nation as a superpower will be displaced by a North American Union and the United Nations. This all leads to a world government, their ultimate goal.
Is this what we as citizens want? Do we care? Time will tell. Times, they are a changing, as the saying goes. Are we even noticing?
The quiet words of the wise are more to be heeded than the shouts of a ruler of fools. Ecclesiastes 9:17
A couple weeks ago, I mentioned that this could play a critical role in the stability of the dollar. The dollar has continued to erode in value over the last couple months to record or at least multi decade lows against other world currencies such as the Euro, the Great British Pound, the Swiss Franc, the Japanese Yen, the Canadian and Australian dollars, etc. If the retail numbers at the beginning of the holiday shopping season are weak because of the uncertain economic times, this could send the dollar over the edge and plummet further.
If this happens, the Federal Reserve will likely to continue to lower interest rates to encourage further spending and keep the economy moving. This will escalate inflation, as mentioned earlier this week. If the downward spiral continues, at a pre-arranged time, the government will announce that they will replace the US dollar with a new currency, called the Amero, or the North American currency. This currency would be a common currency for the three major countries in North America, the US, Canada, and Mexico. The currency will be labeled as a solution to the currency woes and further enhance the trading among the three countries. What really has changed though? Do we have trading problems now with Mexico and Canada? No.
With using a different piece of paper to exchange goods and services, does this change the economics of families not able to pay their bills? Does this get people out of debt? Does this reduce the cost of their medications? Does this pay off their mortgages faster? Sadly no. Nothing will really have changed except the sovereignity of the US will be diminished. The supremacy of the US nation as a superpower will be displaced by a North American Union and the United Nations. This all leads to a world government, their ultimate goal.
Is this what we as citizens want? Do we care? Time will tell. Times, they are a changing, as the saying goes. Are we even noticing?
The quiet words of the wise are more to be heeded than the shouts of a ruler of fools. Ecclesiastes 9:17
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